Page 2077 - Week 05 - Thursday, 6 May 2010

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(3) What assets do the costs referred to in part (2) refer to and what was the initial cost of the assets.

Ms Gallagher: I am advised that the answer to the member’s question is:

(1) ACT Health costs fall into two categories, ‘direct costs’ and ‘overheads’. Direct costs are those service delivery area’s that fit directly or partly into one of the output descriptions.

Overhead costs (corporate and business functions) are distributed across the seven outputs using three different methodologies. Both Information Technology and Business and Infrastructure Divisions have undertaken exercises to apportion their respective costs on estimated levels of service provided to the front line units. The balances of overheads are distributed based on the pro-rata of direct costs.

(2) The top ten individual depreciation costs for ACT Health are:

(3) ACT Health does not have initial cost records available for most of the items listed at (2) as they date back in most cases to the early 1970’s and have been renovated and upgraded on a number of occasions since. The amounts listed below are the most recent revaluation where initial cost is not available:

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