Shared Services Centre
Objectives 
The Shared Services Centre provides information and communication technology (ICT), procurement, publishing and records services, as well as tactical and transactional human resource and finance services to ACT Government departments and agencies.
The Shared Services Centre consolidates these core administrative functions to achieve economies of scale, standardised and streamlined processes, and an overall reduction in costs.  This enables agencies to better focus on their core business of providing services to the community.
The Shared Services Centre will achieve its objectives by working closely with its clients to identify appropriate services, agree on service standards, and agree on mechanisms for delivery that are efficient and cost effective.
2007‑08 Priorities  
Strategic and operational issues to be pursued in 2007‑08 include:
•	fine-tuning human resources and finance services based on customer feedback and assessment of the processes implemented in 2006‑07;
•	supporting Treasury in the implementation of a single consolidated instance of the Oracle Government Financials system;
•	continuing to achieve savings of $20 million across finance, ICT, human resources and procurement services;
•	launching a redesigned buyers and sellers information service (basis) website to facilitate community and business access online to ACT government procurement and contracts;
•	working with agencies to establish strategies for the rationalisation and management of the government software application portfolio;
•	developing strategies to attract and retain skilled staff;
•	establishing new contracts for major ICT supplier services;
•	facilitating strategic Information Management and ICT strategic planning across government; and
•	implementing an enhanced range of Whole of Government contracts and related common use arrangements.

Business and Corporate Strategies
The Shared Services Centre will continue to implement a range of business and corporate strategies.  These include:
•	re-aligning and refining shared service activities, supported by appropriate change management and business planning strategies, to support the Shared Services Centre’s objectives and priorities; 
•	building Shared Services’ capabilities through effective leadership, staff retention and recruitment policies, and personal and professional development practices; 
•	implementing a Shared Services’ risk management framework incorporating the updating of business unit risk management plans; 
•	reviewing and updating Service Level Agreements (SLAs) with agencies utilising Shared Services; 
•	using financial practices which satisfy the requirements of the Financial Management Act 1996, including the associate Accounting Policy Papers modelled on the requirements of Accounting Standards, and which fairly present the financial position and operational and cashflow results for planning and reporting purposes; and
•	operating as a customer service orientated entity subject to the requirements of government policy and legislation. 
Estimated Employment Level 
	2006‑07
Est.  Outcome	2007‑08
Budget	
Staffing (FTE)1	738	846	
Note:
1.	Once permanent staff transfers are complete and recruitment finalised, FTEs are expected to increase to 846 representing a full staffing level for Shared Services Centre. 

Output Classes
	Total Cost1	Government Payment for Outputs	
	2006‑07
Est. Outcome
$’000 	2007‑08
Budget
$’000	2006‑07
Est. Outcome
$’000	2007‑08
Budget
$’000	
Output Class 1: InTACT					
Output 1.1: InTACT	96,115	106,173	5,580	1,745	
Note:
1.	Total cost includes depreciation and amortisation of $17.121 million in 2006‑07 and $18.470 million in 2007–08.
Output Description
InTACT is a shared ICT service organisation providing a complete range of ICT services to the Government, including infrastructure, applications support and development, ICT policy and ICT project services as well as records and publishing services.
InTACT will provide:
•	services to Government agencies as outlined in InTACT’s catalogue of services and affirmed through various service level and support agreements;
•	management of the government data and communications network;
•	assistance to agencies on IT security;
•	management of the Whole of Government communications network; 
•	business systems support;
•	general service and help desk functions;
•	in-house print and electronic publishing; and
•	a full range of record management, mail room and courier activities to the majority of Government departments.

Output Classes cont.
	Total Cost1	Government Payment for Outputs	
	2006‑07
Est. Outcome
$’000 	2007‑08
Budget
$’000	2006‑07
Est. Outcome
$’000	2007‑08
Budget
$’000	
Output Class 2:
Procurement Support Services					
Output 2.1: 
Procurement Support Services	11,363	11,210	2,232	1,363	
Note:
1.	Total cost includes depreciation and amortisation of $0.040 million in 2006‑07 and $0.1 million in 2007–08.
Output Description
Procurement Solutions undertakes procurement activities on behalf of Government departments and agencies for infrastructure, capital works and goods and services.  It advises the Government on procurement and related construction industry policy; is responsible for the development and implementation of the Government’s procurement policy; administers a range of pre-qualification schemes; and establishes and manages Whole of Government contracts.
Procurement Support Services will provide:
•	procurement and associated risk management services to agencies, including delivering capital works projects on behalf of agencies;
•	the buyers and sellers information service (basis);
•	the Government contracts register;
•	supplier pre-qualification arrangements; and
•	the secretariat to Government Procurement Board.

Output Classes cont.
	Total Cost1	Government Payment for Outputs	
	2006‑07
Est. Outcome
$’000 	2007‑08
Budget
$’000	2006‑07
Est. Outcome
$’000	2007‑08
Budget
$’000	
Output Class 3:
Human Resources Services					
Output 3.1:  
Human Resources Services2	8,381	19,897  	1,590	1,244	
Note:
1.	Total cost includes depreciation and amortisation of $0.160 million in 2006‑07 and $0.4 million in 2007‑08.
2.	Human resources in ACT Government agencies were consolidated into the Shared Services Centre from 1 February 2007.  Therefore, the 2006‑07 figures represent the period from 1 February 2007 to 30 June 2007.  
Output Description
Includes the provision of tactical and transactional human resource services to departments and agencies.  Human Resources services will provide:
•	payroll and personnel services, including tax payments and salary packaging;
•	recruitment services;
•	advice and technical support on health and safety management;
•	support in the management of employee relations processes;
•	injury management services for small agencies;
•	coordination and facilitation of ACTPS-wide training and development;
•	statutory and management reporting; and
•	organisational position and data management.

Output Classes cont.
	Total Cost1	Government Payment for Outputs	
	2006‑07
Est. Outcome
$’000 	2007‑08
Budget
$’000	2006‑07
Est. Outcome
$’000	2007‑08
Budget
$’000	
Output Class 4: Finance Services					
Output 4.1: Finance Services2	6,275	13,911	1,380	1,053	
Note:
1.	Total cost includes depreciation and amortisation of $0.160 million in 2006‑07 and $0.4 million in 2007‑08.
2.	Finance services in ACT Government agencies were consolidated into the Shared Services Centre from 1 February 2007.  Therefore, the 2006‑07 figures represent the period from 1 February 2007 to 30 June 2007.  
Output Description 
Includes the provision of tactical and transactional finance services to departments and agencies.  Finance Services will provide:
•	accounts payable and some accounts receivable functions;
•	a general ledger;
•	a fixed assets register;
•	the development and maintenance of the Oracle Government Financials system for each agency;
•	cash flow management and bank reconciliations;
•	tax payments, including returns and advice; and
•	financial reporting services.

Accountability Indicators

	2006‑07
Targets	2006‑07
Est. Outcome	2007‑08
Targets	
Output Class 1: InTACT	
Output 1.1: InTACT	
				
a.	Costs within peer organisations’ costs, as benchmarked by an independent organisation1	Within 10%	Within 10%	Within 5%	
b.	E-mail availability across government during core business hours2	98%	98%	98%	
c.	Service requests made via the Service Desk are responded to within Service Level Agreements’ timeframes3	98%	90%	n/a	
d.	Service requests made via the Service Desk are resolved within Service Level Agreements’ timeframes4	80%	88%	85%	
e.	Average time taken for telephone service requests to be answered by a Service Desk officer5	n/a	n/a	25 seconds	
				
Note:
1.	The independent benchmarking of InTACT services is undertaken annually.
2.	Established by determining up-time of each core component of the network across core business hours (Monday to Friday 7.30am to 6pm).
3.	Replaced by measure e. 
4.	Established by determining how quickly requests made to InTACT Service Desk are resolved in comparison to agreed Service Level Agreement timeframes.  
5.	New measure. 

	2006‑07
Targets	2006‑07
Est. Outcome	2007‑08
Targets	
Output Class 2: Procurement Support Services	
Output 2.1: Procurement Support Services 	
				
a.	Proportion of Government funded annual Capital Works program supported with project procurement services1	80%	90%	95%	
b.	Quality Management Systems Compliance with ISO9001:2000 - Number of  Category 1 non‑conformance findings2	<2	<2	<2	
c.	Increase in the number of Whole of Government contracts and related panel arrangements available for agency procurement3	n/a	n/a	25%	
				
Note:
1.	This measure covers the proportion of the Government funded annual capital works program supported with project director services by ACT Procurement Solutions.  Whilst individual projects may be completed during the year, the total proportion is measured annually.
2.	This measure covers compliance with the ACT Procurement Solutions’ Business Management System (BMS) which describes the processes that are undertaken to ensure that a quality services are provided, utilising the principles of ISO9001:2000.
3.	New measure. Number of Whole of Government contracts and related arrangements in place 30/6/07 compared to 30/6/08.

Accountability Indicators cont.

	2006‑07
Targets	2006‑07
Est. Outcome	2007‑08
Targets	
Output Class 3: Human Resources Services	
Output 3.1: Human Resources Services	
				
d.	Level of satisfaction by Departmental Chief Executives with management of the shared services implementation1	80%	98%	n/a	
e.	Service requests made via the Integrated Customer Service (ICS) system are resolved within five working days2	n/a	n/a	80%	
f.	Data for Annual Reports and the Workforce Profile are supplied to the Chief Minister's Department in accordance with the agreed timeframe2	n/a	n/a	100%	
				
Note:
1.	The measures in the 2006‑07 Budget only applied to the transition period. The measure is based on the percentage of satisfaction ratings of the Shared Services Implementation Steering Committee (SSISC) members for the implementation of the key deliverables of the Shared Services Transition project. Percentage of satisfaction was based on satisfied ratings as a percentage of all survey returns.
2.	New measure.

	2006‑07
Targets	2006‑07
Est. Outcome	2007‑08
Targets	
Output Class 4: Finance Services	
Output 4.1: Finance Services	
				
g.	Level of satisfaction by Departmental Chief Executives with management of the shared services implementation1	80%	98%	n/a	
h.	Business Activity Statements completed in accordance with Australian Taxation Office deadline2	n/a	n/a	90%	
i.	Fringe Benefits Tax Return submitted to the Australian Taxation Office within 7 working days of agencies supplying all required information2	n/a	n/a	90%	
j.	Monthly financial information available for use by agencies by 6th working day of the month2	n/a	n/a	90%	
k.	Annual financial statements completed and sent to agencies by 9th working day of July2	n/a	n/a	90%	
				
Note:
1.	The measures in the 2006‑07 Budget only applied to the transition period. The measure is based on the percentage of satisfaction ratings of the Shared Services Implementation Steering Committee (SSISC) members for the implementation of the key deliverables of the Shared Services Transition project. Percentage of satisfaction was based on satisfied ratings as a percentage of all survey returns.
2.	New measure.

Changes to Appropriation
Changes to Appropriation - Departmental						
 	2006-07	2007-08	2008-09	2009-10	2010-11	
Government Payment for Outputs	Est. Out.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2006-07 Budget	13,092	10,714	7,235	7,335	7,335	
						
2007-08 Budget Policy Adjustments 						
Wage Outcome	390	70	121	150	151	
						
2007-08 Budget Technical Adjustments						
Revised Indexation Parameters	 -	11	12	6	130	
Shared Services Centre SLA Adjustment	 -	(1,921)	(1,896)	(1,921)	(1,960)	
Transfer of Technology Costs to DT	(1,200)	(1,200)	 -	 -	 -	
Decreased Notional Superannuation Contribution Rates	(1,500)	(2,269)	(2,244)	(2,266)	(2,288)	
						
2007-08 Budget	10,782	5,405	3,228	3,304	3,368	

Changes to Appropriation - Departmental						
 	2006-07	2007-08	2008-09	2009-10	2010-11	
Capital Injections	Est. Out.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2006-07 Budget	10,225	1,000	1,000	1,000	1,000	
						
2007-08 Budget Technical Adjustments						
Rollover - Data Communication Centres	(1,500)	1,500	 -	 -	 -	
Integrated Document Management System	 -	601	 -	 -	 -	
						
2007-08 Budget	8,725	3,101	1,000	1,000	1,000	

2007‑08 Capital Works Program 
Departmental
 	Estimated	Estimated	2007‑08	2008‑09	2009-10	Expected	
	Total	Expenditure	Financing	Financing	Financing	Completion	
	Cost	Pre 2007‑08				Date	
 	$’000	$’000	$’000	$’000	$’000	 	
							
Works in Progress							
							
Data Communications Centres	2,975	1,475	1,500	-	-	Dec 2007	
							
Total Works in Progress	2,975	1,475	1,500	-	-		
							
Total Departmental Capital Works	2,975	1,475	1,500	-	-		

Shared Services Centre	
Operating Statement	
  2006‑07			  2006‑07	   2007‑08		  2008‑09	  2009-10	  2010-11		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
13,092		Government Payment for Outputs	10,782	5,405	-50	3,228	3,304	3,368		
321		User Charges - Non ACT Government	321	407	27	443	457	468		
111,730		User Charges - ACT Government	103,806	137,143	32	141,128	144,512	146,790		
155		Other Revenue	155	235	52	239	242	246		
125,298		Total Revenue	115,064	143,190	24	145,038	148,515	150,872		
		Gains								
0		Total Gains	0	0	-	0	0	0		
125,298		Total Income	115,064	143,190	24	145,038	148,515	150,872		
		Expenses								
46,086		Employee Expenses	44,117	62,328	41	62,663	63,506	64,190		
10,378		Superannuation Expenses	8,598	11,332	32	11,427	11,672	11,811		
55,140		Supplies and Services	50,154	57,520	15	58,681	60,162	61,675		
18,578		Depreciation and Amortisation	17,481	19,370	11	19,484	19,484	19,484		
961		Borrowing Costs	1,384	641	-54	0	0	0		
400		Grants and Purchased Services	400	0	-100	0	0	0		
131,543		Total Ordinary Expenses	122,134	151,191	24	152,255	154,824	157,160		
-6,245		Operating Result	-7,070	-8,001	-13	-7,217	-6,309	-6,288		

Shared Services Centre	
Balance Sheet	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/07			as at 30/6/07	as at 30/6/08	   Var	as at 30/6/09	as at 30/6/10	as at 30/6/11		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
41,563		Cash and Cash Equivalents	33,583	23,671	-30	20,512	17,754	12,476		
11,651		Receivables	20,061	19,920	-1	20,009	20,096	20,183		
41		Inventories	36	36	-	36	36	36		
3,180		Other	617	687	11	757	827	897		
56,435		Total Current Assets	54,297	44,314	-18	41,314	38,713	33,592		
		Non Current Assets								
43,375		Property, Plant and Equipment	40,852	40,237	-2	40,213	37,859	38,046		
21		Other	659	659	-	659	659	659		
43,396		Total Non Current Assets	41,511	40,896	-1	40,872	38,518	38,705		
99,831		TOTAL ASSETS	95,808	85,210	-11	82,186	77,231	72,297		
		Current Liabilities								
16,458		Payables	31,882	32,376	2	36,745	37,086	37,427		
2,557		Finance Leases	4,036	1,556	-61	0	0	0		
7,966		Employee Benefits	14,190	14,503	2	14,735	14,765	14,795		
22,965		Other	3,669	3,648	-1	3,628	3,608	3,588		
49,946		Total Current Liabilities	53,777	52,083	-3	55,108	55,459	55,810		
		Non Current Liabilities								
2,556		Finance Leases	4,169	0	-100	0	0	0		
7,902		Employee Benefits	543	708	30	876	879	882		
10,458		Total Non Current Liabilities	4,712	708	-85	876	879	882		
60,404		TOTAL LIABILITIES	58,489	52,791	-10	55,984	56,338	56,692		
39,427		NET ASSETS	37,319	32,419	-13	26,202	20,893	15,605		
		REPRESENTED BY FUNDS EMPLOYED								
39,427		Accumulated Funds	37,319	32,419	-13	26,202	20,893	15,605		
39,427		TOTAL FUNDS EMPLOYED	37,319	32,419	-13	26,202	20,893	15,605		

Shared Services Centre	
Cash Flow Statement	
  2006‑07			  2006‑07	   2007‑08		  2008‑09	  2009-10	  2010-11		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
13,092		Cash from Government for Outputs	10,782	5,405	-50	3,228	3,304	3,368		
196,699		User Charges	104,831	138,390	32	142,415	145,812	148,106		
33,470		Other Revenue	35,788	39,135	9	38,789	39,293	39,926		
243,261		Operating Receipts	151,401	182,930	21	184,432	188,409	191,400		
		Payments								
56,461		Related to Employees	52,208	73,182	40	73,690	75,145	75,968		
55,346		Related to Supplies and Services	50,360	57,648	14	58,940	60,447	61,960		
961		Borrowing Costs	1,384	641	-54	0	0	0		
400		Grants and Purchased Services	400	0	-100	0	0	0		
117,558		Other	35,932	39,297	9	38,945	39,444	42,188		
230,726		Operating Payments	140,284	170,768	22	171,575	175,036	180,116		
12,535		NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	11,117	12,162	9	12,857	13,373	11,284		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Receipts								
100		Proceeds from Sale of Property, Plant & Equipment	84,044	84,044	-	84,044	84,044	84,044		
100		Investing Receipts	84,044	84,044	-	84,044	84,044	84,044		
		Payments								
26,225		Purchase of Property, Plant and Equipment	110,919	102,444	-8	101,060	101,175	101,606		
26,225		Investing Payments	110,919	102,444	-8	101,060	101,175	101,606		
-26,125		NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES	-26,875	-18,400	32	-17,016	-17,131	-17,562		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Receipts								
10,225		Capital Injection from Government	8,725	3,101	-64	1,000	1,000	1,000		
26,457		Receipt of Transferred Cash Balances	24,607	0	-100	0	0	0		
36,682		Financing Receipts	33,332	3,101	-91	1,000	1,000	1,000		
		Payments								
7,977		Repayment of Finance Lease	7,977	6,775	-15	0	0	0		
7,977		Financing Payments	7,977	6,775	-15	0	0	0		
28,705		NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES	25,355	-3,674	-114	1,000	1,000	1,000		
15,115		NET INCREASE/(DECREASE) IN CASH HELD	9,597	-9,912	-203	-3,159	-2,758	-5,278		
26,449		CASH AT BEGINNING OF REPORTING PERIOD	23,987	33,584	40	23,672	20,513	17,755		
41,564		CASH AT THE END OF THE REPORTING PERIOD	33,584	23,672	-30	20,513	17,755	12,477		

Shared Services Centre	
Statement of Changes in Equity	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/07			as at 30/6/07	as at 30/6/08	   Var	as at 30/6/09	as at 30/6/10	as at 30/6/11		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
43,856		Opening Balance	45,753	37,319	-18	32,419	26,202	20,893		
		Accumulated Funds								
-6,245		Operating Result for the Period	-7,070	-8,001	-13	-7,217	-6,309	-6,288		
		Reserves								
-6,245		Total Income And Expense For The Period	-7,070	-8,001	-13	-7,217	-6,309	-6,288		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
10,225		Capital Injections	8,725	3,101	-64	1,000	1,000	1,000		
-8,409		Inc/Dec in Net Assets due to Admin Restructure	-10,089	0	100	0	0	0		
39,427		Closing Balance	37,319	32,419	-13	26,202	20,893	15,605		
Notes to the Budget Statements
Significant variations are as follows:
Operating Statement
•	government payment for outputs:  
–	the decrease of $2.310 million in the 2006‑07 estimated outcome from the original budget is mainly due to:
•	the transfer of technology costs funding to ACT Treasury associated with the implementation of the one instance of Oracle project ($1.2 million); and
•	reduced superannuation expenditure ($1.5 million) due to the timing and mix of staff transferring from other government agencies in 2006‑07;
partially offset by:
•	an increase in funding for wage increases ($0.390 million).
–	the decrease of $5.377 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is mainly due to:
•	the removal of one-off funding received in 2006‑07 for consolidating information technology services ($3 million);
•	a Service Level Agreement (SLA) adjustment that devolves to agencies superannuation funding previously received by the Shared Services Centre ($1.921 million); and
•	decreased notional superannuation contribution rates ($2.269 million);
partially offset by:
•	the effect of 2006‑07 Budget savings ($0.910 million); and  
•	funding for previous years’ initiatives which do not continue into 2007‑08 ($0.903 million).
•	user charges – ACT Government:
–	the decrease of $7.924 million in the 2006‑07 estimated outcome from the original budget is mainly due to delays in the transfer of ICT business systems and staff which resulted in the Shared Services Centre not recovering full year costs from agencies; and 
–	the increase of $33.337 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is mainly due to the full year effect of the recovery of costs associated with the transfer of Department of Education and Training (DET) and Canberra Institute of Technology (CIT) ICT business systems and staff from 1 January 2007 to InTACT, and human resources and finance services staff from 1 February 2007. 
•	employee and superannuation expenses:
–	the decrease of $3.749 million in the 2006‑07 estimated outcome from the original budget is due to delays in the transfer of DET and CIT ICT staff and permanent staffing levels not reaching budgeted expectations; and  
–	the increase of $20.945 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is mainly due to:
•	the full year effect of transferring record services and publishing services staff ($1.275 million);
•	the full year effect of transferring DET and CIT ICT staff ($2.502 million);
•	the full year effect of transferring human resource and finance staff  ($14.742 million); and
•	wage increases ($1.110 million).
•	supplies and services:
–	the decrease of $4.986 million in the 2006‑07 estimated outcome from the original budget is mainly due to:
•	the transfer of technology costs to ACT Treasury associated with the implementation of the one instance of Oracle project ($1.2 million); and
•	reduced contractors costs ($4.071 million) associated with the timing of ICT business systems and staff transferring, and the lower than expected number of contracted staff transferring especially from DET and CIT.
–	the increase of $7.366 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is mainly due to: 
•	a projected increase in ICT business systems identified and included in InTACT’s SLA’s and the full year effect of transferring DET and CIT ICT business systems costs ($4.314 million);
•	the full year effect of transferring human resource and finance services costs ($3.680 million); and
•	the full year effect of transferring record services and publishing services costs ($2.908 million); 
partially offset by:
•	the impact of 2006‑07 Budget savings ($3.688 million).
•	depreciation and amortisation: 
–	the decrease of $1.097 million in the 2006‑07 estimated outcome from the original budget is mainly due to the time taken in finalising the Data Centre Refurbishments, the timing of asset purchases in 2006‑07, and the reduced cost of ICT equipment; and
–	the increase of $1.889 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is mainly due to the full year effect of depreciation on significant asset purchases including the Data Centre Refurbishments, Enterprise Server and Eclipse and Allara House fitouts.
•	borrowing costs:  
–	the increase of $0.423 million in the 2006‑07 estimated outcome from the original budget is mainly due to the timing associated with implementing the decision to purchase ICT equipment outright rather than leasing; and
–	the decrease of $0.743 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is due to the effect of the decision to purchase ICT equipment outright rather than leasing. 
•	grants and purchased services:  the decrease of $0.4 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is due to the completion of the sustainable infrastructure initiative and associated expenditure in 2006‑07. 
Balance Sheet
•	cash and cash equivalents:  
–	the decrease of $7.980 million in the 2006‑07 estimated outcome from the original budget is due to the expectation that fourth quarter invoices to be issued to clients in early June will not be paid by the end of the financial year; and
–	the decrease of $9.912 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is due to the purchase of significant Whole of Government ICT infrastructure assets from cash reserves including the Storage Area Network and the Enterprise Server, and the effect of implementing the policy of purchasing ICT assets rather than leasing.  
•	receivables:  the increase of $8.410 million in the 2006‑07 estimated outcome from the original budget is due to the expectation that a significant amount of fourth quarter invoices to be issued in early June will not be paid by the end of the financial year. 
•	other current and other non current assets:  the decrease of $1.925 million in the 2006‑07 estimated outcome from the original budget is mainly due to the expected payment of the Microsoft Licence Fees in June 2007. 
•	property, plant and equipment:  the decrease of $2.523 million in the 2006‑07 estimated outcome from the original budget is mainly due to a lower than expected cost of ICT equipment and the timing of significant asset purchases in 2006‑07, including the refurbishment of data centres.
•	payables:  the increase of $15.424 million in the 2006‑07 estimated outcome from the original budget is mainly due to a change in the accounting treatment for capital works payments received in advance which now flow through payables rather than as other current liabilities.
•	current and non current finance leases: 
–	the increase of $3.092 million in the 2006‑07 estimated outcome from the original budget is due to the effect of the timing of the decision to purchase ICT equipment outright rather than leasing; and
–	the decrease of $6.649 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is due to the decision to purchase ICT equipment outright rather than leasing.
•	employee benefits:  the change in allocation between current and non-current is due to a change in the accounting treatment for employee provisions.
•	other current liabilities:  the decrease of $19.296 million in the 2006‑07 estimated outcome from the original budget is due to a change in the accounting treatment for capital works payments received in advance which now flow through payables. 
Cash Flow Statement
The major variations within the Cash Flow statement are explained in the Operating Statement section above.
Other significant variations relate to:
•	user charges:  the decrease of $91.868 million in the 2006‑07 estimated outcome from the original budget is due to reasons previously identified and a change in accounting treatment for capital works receipts which now flow through proceeds from sale of property, plant and equipment.
•	other payments:  the decrease of $81.626 million in the 2006‑07 estimated outcome from the original budget is due to reasons previously identified and a change in the accounting treatment for capital works payments which now flow through purchase of property, plant and equipment.
•	receipt of transferred cash balances:  the decrease of $24.607 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is mainly due to the one-off transfer in 2006‑07 of Procurement Support Services cash balances to the Shared Services Centre on 1 July 2006.  
Statement of Changes in Equity
•	capital injections:
–	the decrease of $1.5 million in the 2006‑07 estimated outcome from the original budget is due to the rollover of funding for the Data Centre Refurbishment resulting from the strategy adopted to leverage refurbishment off other agencies capital work programs; and
–	the decrease of $5.624 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is due to the one-off funding received in 2006‑07 for the Eclipse and Allara House fitouts ($5 million), the Private Data Network extension to Hume ($1.5 million) and the Data Centre  Refurbishments ($1.225 million).  This has been partially offset by the rollover of the Data Centre Refurbishments due to the timing of construction ($1.5 million), and the provision of a capital injection for the Information Document Management System ($0.601 million).  
•	Increase/(Decrease) in Net Assets due to Admin Restructure: 
–	the increase of $1.680 million in the 2006‑07 estimated outcome from the original budget is mainly due to an audited outcome adjustment as a result of delays in the transfer of ICT staff to InTACT and their associated employee entitlements; and 
–	the decrease of $10.089 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is due to the one-off transfer in 2006‑07 of employee benefits into the Shared Services Centre as a result of the consolidation of procurement, human resources, finance, records management and publication functions, and the transfer of DET and CIT ICT staff’s employee benefits.

InTACT	
Operating Statement	
  2006-07			  2006-07	   2007-08		  2008-09	  2009-10	  2010-11		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
7,589		Government Payment for Outputs	5,580	1,745	-69	1,714	1,754	1,795		
263		User Charges - Non ACT Government	321	407	27	443	457	468		
88,924		User Charges - ACT Government	83,081	96,685	16	99,691	102,405	104,006		
100		Other Revenue	155	235	52	239	242	246		
96,876		Total Revenue	89,137	99,072	11	102,087	104,858	106,515		
		Gains								
0		Total Gains	0	0	-	0	0	0		
96,876		Total Income	89,137	99,072	11	102,087	104,858	106,515		
		Expenses								
29,565		Employee Expenses	27,890	32,696	17	33,542	34,015	34,377		
6,656		Superannuation Expenses	5,142	6,088	18	6,268	6,409	6,488		
47,678		Supplies and Services	44,578	48,278	8	50,010	51,259	52,454		
18,210		Depreciation and Amortisation	17,121	18,470	8	18,584	18,584	18,584		
961		Borrowing Costs	1,384	641	-54	0	0	0		
103,070		Total Ordinary Expenses	96,115	106,173	10	108,404	110,267	111,903		
-6,194		Operating Result	-6,978	-7,101	-2	-6,317	-5,409	-5,388		

Procurement Support Services	
Operating Statement	
  2006-07			  2006-07	   2007-08		  2008-09	  2009-10	  2010-11		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
2,206		Government Payment for Outputs	2,232	1,363	-39	1,440	1,550	1,573		
8,338		User Charges - ACT Government	9,295	9,747	5	9,865	9,948	10,058		
10,544		Total Revenue	11,527	11,110	-4	11,305	11,498	11,631		
		Gains								
0		Total Gains	0	0	-	0	0	0		
10,544		Total Income	11,527	11,110	-4	11,305	11,498	11,631		
		Expenses								
6,353		Employee Expenses	7,033	7,545	7	7,702	7,780	7,851		
1,465		Superannuation Expenses	1,444	1,383	-4	1,414	1,434	1,448		
1,971		Supplies and Services	2,446	2,182	-11	2,189	2,284	2,332		
40		Depreciation and Amortisation	40	100	150	100	100	100		
400		Grants and Purchased Services	400	0	-100	0	0	0		
10,229		Total Ordinary Expenses	11,363	11,210	-1	11,405	11,598	11,731		
315		Operating Result	164	-100	-161	-100	-100	-100		

Human Resources Services	
Operating Statement	
  2006-07			  2006-07	   2007-08		  2008-09	  2009-10	  2010-11		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
1,503		Government Payment for Outputs	1,590	1,244	-22	39	0	0		
6,755		User Charges - ACT Government	6,679	18,253	173	18,764	19,101	19,342		
8,258		Total Revenue	8,269	19,497	136	18,803	19,101	19,342		
		Gains								
0		Total Gains	0	0	-	0	0	0		
8,258		Total Income	8,269	19,497	136	18,803	19,101	19,342		
		Expenses								
5,187		Employee Expenses	5,326	13,270	149	12,931	13,104	13,235		
1,147		Superannuation Expenses	1,149	2,382	107	2,324	2,374	2,398		
1,924		Supplies and Services	1,746	3,845	120	3,548	3,623	3,709		
160		Depreciation and Amortisation	160	400	150	400	400	400		
8,418		Total Ordinary Expenses	8,381	19,897	137	19,203	19,501	19,742		
-160		Operating Result	-112	-400	-257	-400	-400	-400		

Finance Services	
Operating Statement	
  2006-07			  2006-07	   2007-08		  2008-09	  2009-10	  2010-11		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
1,794		Government Payment for Outputs	1,380	1,053	-24	35	0	0		
58		User Charges - Non ACT Government	0	0	-	0	0	0		
7,713		User Charges - ACT Government	4,751	12,458	162	12,808	13,058	13,384		
55		Other Revenue	0	0	-	0	0	0		
9,620		Total Revenue	6,131	13,511	120	12,843	13,058	13,384		
		Gains								
0		Total Gains	0	0	-	0	0	0		
9,620		Total Income	6,131	13,511	120	12,843	13,058	13,384		
		Expenses								
4,981		Employee Expenses	3,868	8,817	128	8,488	8,607	8,727		
1,110		Superannuation Expenses	863	1,479	71	1,421	1,455	1,477		
3,567		Supplies and Services	1,384	3,215	132	2,934	2,996	3,180		
168		Depreciation and Amortisation	160	400	150	400	400	400		
9,826		Total Ordinary Expenses	6,275	13,911	122	13,243	13,458	13,784		
-206		Operating Result	-144	-400	-178	-400	-400	-400