Housing ACT
Objectives
Housing ACT’s principal objective is to provide the people of Canberra with safe, affordable and appropriate social housing that supports the needs of clients in a sustainable environment.  Housing ACT is a business unit of the Department of Disability, Housing and Community Services.
Housing ACT is responsible for:
•	assessing the eligibility and the needs of clients;
•	allocating properties to eligible applicants and community organisations in a way that ensures long-term housing solutions;
•	supporting tenancies through effective tenancy management;
•	managing public housing assets, including the provision of appropriate and timely maintenance, and a portfolio that best meets the existing and emerging needs of clients;
•	supporting the community housing sector; and
•	providing information that is clear, relevant and offers choices to applicants and tenants.
2005‑06 Highlights
Strategic and operational issues to be pursued in 2005‑06 include:
•	continuing to improve service delivery with more sustainable tenancies by better aligning resources to focus on tenant needs and ensuring that tenants are able to access community and other support services;
•	implementing the public housing asset management strategy and focusing on continuing to rejuvenate or replace public housing to better meet tenant needs;
•	implementing the Government’s response to the tenant participation report ‘Raising our Voice’; and 
•	implementing the strategies in the bilateral Agreement with the Commonwealth under the Commonwealth-State Housing Agreement.

Output Class

	Total Cost
	Government Payment for Outputs	
	2004-05
Est. Outcome
$’000	2005-06
Budget
$’000	2004-05
Est. Outcome
$’000	2005-06
Budget
$’000	
Output Class 1
Social Housing Services	110  668	117  692	30  242	32  418	
1.1:  Social Housing Services	110  668	117  692	30  242	32  418	
Output Description
Provision and management of public housing tenancies and properties, and provision of support and resources to community housing providers.

Strategic Indicators
Strategic Indicator 1
Provision of housing to people experiencing homelessness
 	2002-03	2003-04	2004-05	2005-06	2006-07	
	Actual	Actual	Estimate	Budget	Estimate	
	%	%	%	%	%	
The Percentage of Tenants Allocated from Early Allocation Category 1	91%	91%	92%	95%	95%	

Strategic Indicator 2 
The provision of housing enables tenants the opportunity to be part of a community
 	2002-03	2003-04	2004-05	2005-06	2006-07	
	Actual	Actual	Estimate	Budget	Estimate	
	%	%	%	%	%	
Tenant Satisfaction						
Results from the local and national social housing survey	72%	69%	70%	70%	70%	

Accountability Indicators
	2004‑05
Targets	2004-05
Est. Outcome	2005-06
Targets	
Output 1.1  Social Housing Services	
a.	Priority Allocations	N/A	N/A	90%	
Percentage of public housing allocations to priority applicants – the percentage of priority applicants housed is comprised of new applicants who are either on the EAC11 or EAC22 priority application category and Category X3.
b.	Number of properties managed:				
–	Public housing properties	11  530	11  565	11  179	
–	Community housing properties	N/A	N/A	288	
For the purposes of this output, a property is defined as a unit of accommodation to which a tenancy agreement can be made (Australian Institute of Health and Welfare definition).  A tenancy unit is a way of counting the maximum number of distinct rentable units such as a house, townhouse, duplex, flat or boarding house.
c.	Percentage of public housing tenants receiving rebates	87%	86%	87%	
Eligible tenants are entitled to a rebate of rent such that the rent payable is no more than 25% of assessable household income.  Tenants not in receipt of a rebate pay market rent.  The indicator records the number of tenants in receipt of a rebate compared to the total number of tenants.
d.	Annual number of client service visits conducted	10  640	10  650	10  640	
The number of current clients visited during the financial year is the combined total of 90 day and annual client service visits undertaken.
e.	Overall satisfaction of tenants with the provision of public housing 	 >60%	60%	>60%	
Tenant satisfaction is measured bi-annually through the National Social Housing Survey (NSHS) and in the odd years through an internal survey.
f.	Average cost per dwelling of public housing	N/A	N/A	$9  739	
This is the total cost of public housing excluding the direct grants to community service providers and to the community-housing sector, divided by the stock number.
g.	Percentage of community housing tenants receiving rebates	92%	92%	92%	
Eligible tenants are entitled to a rebate of rent such that the rent payable is no more than 25% of assessable household income.  Tenants not eligible for a rebate pay market rent.  The indicator records the number of tenants in receipt of a rebate compared to the total number of tenants.
h.	Overall satisfaction of tenants with the provision of community housing	N/A	N/A	77%	
Tenant satisfaction is measured bi-annually through the National Community Housing Survey.
1.	EAC 1 - Early Allocation Category 1 is assigned to those applicants in urgent need of housing such as those who are homeless, moving between various forms of temporary accommodation, those in extreme housing crisis or at risk of imminent homelessness including people escaping domestic violence, facing eviction or exiting supported accommodation.
2.	EAC 2 - Early Allocation Category 2 is assigned to those applicants for whom private rental accommodation is not a suitable or accessible long term option, such as those facing barriers to private rental accommodation either through extreme affordability problems or with multiple and complex needs, including those with disabilities or severe medical problems.
3.	Category X - is assigned to applicants in special housing need arising directly from a state of emergency declared by the Chief Minister, such as occurred at the time of the January 2003 bushfire.
				
Budgeted Financial Results
Section 31 of the Financial Management Act 1996 (FMA), provides that Chief Executives are responsible for the achievement of financial results.  For the purpose of Section 31 of the FMA key budgeted results are specified in the Budget Papers to improve accountability.  An outcome of the increased accountability will be the requirement for Chief Executives to explain material variances from specified budgeted results.
In accordance with section 31 of the FMA, the following are the key budget results for Housing ACT: 
•	Operating Result ($19.686m loss) – this target focuses on the financial performance for the year and measures the performance of resource utilisation, and in particular the success in managing revenues from User Charges – Non-government (rents) and major operational and administrative expenditure items. 
•	Current Ratio1 (1.69 to 1) – the current ratio indicates short-term solvency through the ability to fund short-term liabilities from the conversion of short-term assets to cash.  It is important in the assessment of the ability to fund ongoing operations and payment of creditors, future employee entitlements and repay interest-bearing liabilities as they fall due.
•	Total Assets ($3,188m) – indicates the scale of the asset base underlying public housing.  The portfolio of public housing properties is principally the means by which housing assistance is provided.
•	Total Liabilities ($128.5m) – indicates the size of the obligations that Housing ACT has to meet in future, and is largely comprised of interest bearing liabilities from the Commonwealth ($114.782m).  As debt decreases, there is a corresponding decrease in the related interest payments.
1	Total current assets / Total current liabilities

Changes to Appropriation
Changes to Appropriation - Departmental						
 	2004-05	2005-06	2006-07	2007-08	2008-09	
Government Payment for Outputs	Est. Outc.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2004-05 Budget	  29  913	  30  178	  30  445	  30  725	  30  725	
						
2005-06 Budget Policy Adjustments						
Energy and Water Efficiency Measures	    0	    420	    0	    0	    0	
General Savings	    0	-708	-896	-896	-896	
General Rates Supplementation	    0	    940	    940	    940	    940	
2005-06 Budget Technical Adjustments						
Commonwealth Funding - CSHA Grants	-201	    0	    0	    0	    0	
Revised Indexation Parameters	    0	    0	    23	    47	    342	
Termination of Social Housing Subsidy Program	    0	-245	-245	-245	-245	
Transfer of Community Linkages to Department of Disability, Housing and Community Services	    0	-550	-564	-571	-578	
						
2005-06 Budget	  29  712	  30  035	  29  703	  30  000	  30  288	

Changes to Appropriation - Departmental						
 	2004-05	2005-06	2006-07	2007-08	2008-09	
Capital Injections	Est. Outc.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2004-05 Budget	  5  000	  5  000	  5  000	  5  000	  5  000	
						
2005-06 Budget Policy Adjustments						
Energy and Water Efficiency Measures	    0	    580	    0	    0	    0	
						
2005-06 Budget	  5  000	  5  580	  5  000	  5  000	  5  000	

2005-06 Works Program
Departmental
 	Estimated	Estimated	2005-06	2006-07	2007-08	Expected 	
	Total	Expenditure	Estimated	Financing	Financing	Completion 	
	Cost	Pre 2005-06	Outcome			Date  	
 	$’000	$’000	$’000	$’000	$’000	 	
							
New Capital Works							
 	 	 	 	 	 	 	
New Construction Works							
Energy and water efficiency initiatives	1  000	-	1  000	-	-	Jun 2006	
							
Total New Construction Works	1  000	-	1  000	-	-	 	
							
Total Capital Works	1  000	-	1  000	-	-	 	

Commonwealth Grants
The major Commonwealth payment for which Housing ACT has responsibility is:
Name of Grant	Activities Funded by Grant	2005-06
Estimate
$’000	
Commonwealth-State Housing Agreement – Block Grants	Public housing assistance initiatives, new rental stock and supplementation of public housing operations	18  785	

Total
		
18  785	

Housing ACT	
Operating Statement	
  2004-05			  2004-05	   2005-06		  2006-07	  2007-08	  2008-09		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
31  913		Government Payment for Outputs	30  242	32  418	7	29  703	30  000	30  288		
59  550		User Charges - Non ACT Government	60  865	61  921	2	62  965	63  992	65  002		
100		User Charges - ACT Government	90	104	16	107	109	112		
1  500		Interest	1  940	1  054	-46	1  107	1  161	1  120		
5  509		Other Revenue	2  295	2  509	9	2  509	2  509	2  509		
98  572		Total Revenue	95  432	98  006	3	96  391	97  771	99  031		
-		Gains	-	-	-	-	-	-		
0		Total Gains	0	0	-	0	0	0		
98  572		Total Income	95  432	98  006	3	96  391	97  771	99  031		
		Expenses								
16  557		Employee Expenses	15  705	16  672	6	17  718	18  258	18  814		
2  259		Superannuation Expenses	2  125	2  366	11	2  333	2  404	2  478		
63  781		Supplies and Services	63  170	66  929	6	67  689	69  705	71  783		
14  441		Depreciation and Amortisation	12  525	13  025	4	13  846	14  143	14  521		
5  554		Borrowing Costs	5  554	5  361	-3	5  165	4  966	4  761		
10  882		Grants and Purchased Services	7  650	8  815	15	2  175	2  228	2  317		
4  490		Other Expenses	3  939	4  524	15	3  849	3  853	3  862		
117  964		Total Ordinary Expenses	110  668	117  692	6	112  775	115  557	118  536		
0		Share of Operating Result from Joint Venture accounted for using the Equity Method	0	0	-	0	4  305	6  695		
-19  392		Operating Result	-15  236	-19  686	-29	-16  384	-13  481	-12  810		

Housing ACT	
Balance Sheet	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/05			as at 30/6/05	as at 30/6/06	   Var	as at 30/6/07	as at 30/6/08	as at 30/6/09		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
2  876		Cash	2  503	2  503	-	2  503	2  503	2  503		
2  589		Receivables	2  958	2  942	-1	2  812	2  682	2  552		
6  700		Investments	20  688	15  981	-23	31  825	39  506	21  937		
423		Other	194	194	-	194	194	194		
12  588		Total Current Assets	26  343	21  620	-18	37  334	44  885	27  186		
		Non Current Assets								
500		Receivables	500	500	-	500	500	500		
0		Investments	0	35  000	#	21  305	0	0		
2  797  701		Property, Plant and Equipment	3  029  008	3  120  882	3	3  251  129	3  403  619	3  564  487		
8  265		Capital Works in Progress	13  031	10  316	-21	9  472	9  919	8  847		
2  806  466		Total Non Current Assets	3  042  539	3  166  698	4	3  282  406	3  414  038	3  573  834		
2  819  054		TOTAL ASSETS	3  068  882	3  188  318	4	3  319  740	3  458  923	3  601  020		
		Current Liabilities								
6  628		Payables	4  099	4  100	..	4  046	3  992	3  938		
4  356		Interest Bearing Liabilities	4  356	4  437	2	4  549	4  706	4  834		
78		Finance Leases	78	78	-	78	78	78		
2  692		Employee Benefits	2  309	2  309	-	2  308	2  307	2  306		
1  911		Other	4  264	1  881	-56	4  281	1  881	1  881		
15  665		Total Current Liabilities	15  106	12  805	-15	15  262	12  964	13  037		
		Non Current Liabilities								
114  783		Interest Bearing Liabilities	114  783	110  345	-4	105  796	101  090	96  256		
322		Finance Leases	322	244	-24	166	88	10		
1  733		Employee Benefits	2  745	2  745	-	2  745	2  745	2  745		
0		Other	2  400	2  400	-	0	0	0		
116  838		Total Non Current Liabilities	120  250	115  734	-4	108  707	103  923	99  011		
132  503		TOTAL LIABILITIES	135  356	128  539	-5	123  969	116  887	112  048		
2  686  551		NET ASSETS	2  933  526	3  059  779	4	3  195  771	3  342  036	3  488  972		
		REPRESENTED BY FUNDS EMPLOYED								
800  284		Accumulated Funds	816  624	824  518	1	835  134	848  653	862  843		
1  886  267		Reserves	2  116  902	2  235  261	6	2  360  637	2  493  383	2  626  129		
2  686  551		TOTAL FUNDS EMPLOYED	2  933  526	3  059  779	4	3  195  771	3  342  036	3  488  972		

Housing ACT	
Cash Flow Statement	
  2004-05			  2004-05	   2005-06		  2006-07	  2007-08	  2008-09		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
29  913		Cash from Government for Outputs	29  712	30  035	1	29  703	30  000	30  288		
59  250		User Charges	60  555	61  625	2	62  662	63  691	64  704		
1  500		Interest Received	1  940	1  054	-46	1  107	1  161	1  120		
1  069		Other Revenue	1  549	1  869	21	1  929	1  929	1  929		
91  732		Operating Receipts	93  756	94  583	1	95  401	96  781	98  041		
		Payments								
18  816		Related to Employees	17  830	19  038	7	20  052	20  663	21  293		
63  908		Related to Supplies and Services	63  297	67  055	6	67  821	69  837	71  915		
5  554		Borrowing Costs	5  554	5  361	-3	5  165	4  966	4  761		
10  882		Grants and Purchased Services	7  650	8  815	15	2  175	2  228	2  317		
2  490		Other	3  030	3  034	..	3  039	3  043	3  052		
101  650		Operating Payments	97  361	103  303	6	98  252	100  737	103  338		
-9  918		NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	-3  605	-8  720	-142	-2  851	-3  956	-5  297		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Receipts								
64  765		Proceeds from Sale of Property, Plant & Equipment	37  342	47  119	26	42  794	43  720	44  594		
64  765		Investing Receipts	37  342	47  119	26	42  794	43  720	44  594		
		Payments								
68  078		Purchase of Property, Plant and Equipment	53  665	44  274	-17	38  317	40  104	35  815		
68  078		Investing Payments	53  665	44  274	-17	38  317	40  104	35  815		
-3  313		NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES	-16  323	2  845	117	4  477	3  616	8  779		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Receipts								
5  000		Capital Injection from Government	5  000	5  580	12	5  000	5  000	5  000		
30		Borrowings Received	30	45	50	60	60	60		
5  030		Financing Receipts	5  030	5  625	12	5  060	5  060	5  060		
		Payments								
4  436		Repayment of Borrowings	4  346	4  457	3	4  537	4  649	4  806		
4  436		Financing Payments	4  346	4  457	3	4  537	4  649	4  806		

Housing ACT	
Cash Flow Statement	
  2004-05			  2004-05	   2005-06		  2006-07	  2007-08	  2008-09		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
594		NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES	684	1  168	71	523	411	254		
-12  637		NET INCREASE/(DECREASE) IN CASH HELD	-19  244	-4  707	76	2  149	71	3  736		
22  213		CASH AT BEGINNING OF REPORTING PERIOD	42  435	23  191	-45	18  484	20  633	20  704		
9  576		CASH AT THE END OF THE REPORTING PERIOD	23  191	18  484	-20	20  633	20  704	24  440		

Housing ACT	
Statement of Changes in Equity	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/05			as at 30/6/05	as at 30/6/06	   Var	as at 30/6/07	as at 30/6/08	as at 30/6/09		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
2  567  268		Opening Balance	2  810  087	2  933  526	4	3  059  779	3  195  771	3  342  036		
		Accumulated Funds								
-19  392		Operating Result for the Period	-15  236	-19  686	-29	-16  384	-13  481	-12  810		
		Reserves								
111  675		Increase/(Decrease) in asset revaluation reserve	111  675	118  359	6	125  376	132  746	132  746		
22  000		Transfer to/from Reserves	22  000	22  000	-	22  000	22  000	22  000		
114  283		Total Income And Expense For The Period	118  439	120  673	2	130  992	141  265	141  936		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
5  000		Capital Injections	5  000	5  580	12	5  000	5  000	5  000		
2  686  551		Closing Balance	2  933  526	3  059  779	4	3  195  771	3  342  036	3  488  972		
Notes to the Budget Statements
Significant variations are as follows:
Operating Statement
•	government payment for outputs:  
–	the decrease of $1.671m in the 2004‑05 estimated outcome from the original budget is due to:
•	the rollover of funding for community housing projects delayed by the timing of planning approvals ($1.470m); and
•	the decreased funding under the Commonwealth-State Housing Agreement due to relative population movements between the states and territories ($0.201m).
–	the increase of $2.176m in the 2005‑06 Budget from the 2004‑05 estimated outcome is due to:
•	the rollover of funding for community housing projects into 2005‑06 ($2.383m);
•	increased funding under the Commonwealth-State Housing Agreement ($0.451m);
•	funding for the initiative to improve energy and water efficiency in public housing ($0.420m); and
•	supplementation to fund the increase in general rates as a result of changes to the rating arrangements effective from 2005‑06 ($0.940m).
offset by:
•	the transfer of funding for the Community Linkages Program to the Department of Disability, Housing and Community Services (Community Services) ($0.550m);
•	cessation of funding for the Social Housing Subsidy Program by the Commonwealth and the ACT matching amount ($0.245m); and
•	general savings ($0.708m).
•	user charges – non ACT Government:  the increase of $1.315m in the 2004‑05 estimated outcome from the original budget is a result of the re-assessment of market rents in September 2004.  The further increase of $1.056m in the 2005‑06 Budget from the 2004‑05 estimated outcome is due to the impact of the review of market rents in October 2005 and increasing tenant incomes, partly offset by increased rebates.
•	interest:  
–	the increase of $0.440m in the 2004‑05 estimated outcome from the original budget is due to higher than budgeted level of investments throughout the year as a result of the deferral of some community housing projects and higher interest rates; and
–	the decrease of $0.886m in the 2005‑06 Budget from the 2004‑05 estimated outcome is due to the expected decrease of investments during 2005‑06, as funds rolled over from prior years for projects are expended, expenditure to upgrade the business system Homenet occurs, and rebuilding the rural villages commences.
•	other revenue:  
–	the decrease of $3.214m in the 2004‑05 estimated outcome from the original budget is due to lower profit on sales as a result of reduced sales and the softening of the local market ($3.3m) and lower recoveries from tenants ($0.3m) relating to tenant responsible maintenance.  This is offset by the revenue recognised for the return of leased properties from the community housing sector ($0.386m); and
–	the increase of $0.214m in the 2005‑06 Budget from the 2004‑05 estimated outcome reflects higher profit on sales from a greater number of sales expected during 2005‑06.
•	employee and superannuation expenses:  
–	the decrease of $0.986m in the 2004‑05 estimated outcome from the original budget is due mainly to the deferral of recruitment and the review of leave provisioning; and
–	the increase of $1.208m in the 2005‑06 Budget from the 2004‑05 estimated outcome is due to the flow-on effects of wage increases, reduced staff vacancies and higher associated costs such as payroll tax and workers’ compensation premium.
•	supplies and services:  
–	the decrease of $0.611m in the 2004‑05 estimated outcome from the original budget largely reflects lower water charges due to the water restrictions imposed during 2004‑05; and
–	the increase of $3.759m in the 2005‑06 Budget from the 2004‑05 estimated outcome is mainly due to:
•	higher general rates charges ($0.940m);
•	higher water rates and consumption charges ($0.357m);
•	costs associated with improving energy and water efficiency in public housing ($0.420m);
•	higher motor vehicle expenses ($0.198m);
•	higher insurance costs ($0.2m); and
•	fees associated with arranging certificate of regulation for buildings being upgraded for fire safety ($0.3m).
offset by: 
•	general savings ($0.302m).
•	depreciation and amortisation:  the decrease of $1.916m in the 2004‑05 estimated outcome from the original budget is due to the re-assessment of the remaining useful lives for the multi-unit properties as part of the 2004 revaluation of the public housing portfolio.  The increase of $0.5m in the 2005‑06 Budget from the 2004‑05 estimated outcome arises from an anticipated increase in the value of the property portfolio from the annual revaluation of properties.
•	borrowing costs:  the decrease of $0.193m in the 2005‑06 Budget from the 2004‑05 estimated outcome is in line with the agreed Commonwealth loan repayment schedules.
•	grants and purchased services: 
–	the decrease of $3.232m the 2004‑05 estimated outcome from the original budget represents:
•	further rollover of grants from 2004‑05 to 2005‑06 ($6.692m) due to delays in community housing and community service projects involving non-government organisations.
offset by:
•	the flow-on effect of the 2003‑04 audited outcome that identified the rollover of grants expenditure into 2004‑05 ($3.038m); and
•	increased grants associated with community housing and community service projects during 2004‑05 ($0.422m).
–	the increase of $1.165m in the 2005‑06 Budget from the 2004‑05 estimated outcome is due to:
•	the above-mentioned rollover into 2005‑06 ($6.692m).
offset by:
•	the transfer of the Community Linkages Program funding to Community Services ($0.550m); and 
•	the effect of the one-off grants programs in 2004‑05 ($4.968m). 
•	other expenses:  
–	the decrease of $0.551m in the 2004‑05 estimated outcome from the original budget is due to: 
•	the decrease in the provision for doubtful debts and write‑off of bad debts ($0.4m), reflecting an improvement to the age profile of the debtors since the publication of the original budget; and
•	the decrease in other write‑off expenses such as property demolitions and expensing of work-in-progress ($0.487m).

offset by:
•	the recognition of expenses for properties transferred to the community-housing sector under a long-term lease in exchange for those properties returned to Housing ACT mentioned in other revenue above ($0.336m).
–	the increase of $0.585m in the 2005‑06 Budget from the 2004‑05 estimated outcome is mainly due to higher provisions for doubtful debts and the write-off of bad debts ($0.2m) with recovery from tenants expected to return to the normal level in 2005‑06 and higher costs for demolition of properties ($0.713m).  This is offset by the cessation of one-off costs associated with the transfer of properties to the community housing sector ($0.336m).
Balance Sheet
•	cash:  the decrease of $0.373m in the 2004‑05 estimated outcome from the original budget is due to the reduced need to hold sufficient cash on hand at year end to meet commitments and contingencies payable in 2005‑06.
•	receivables and other:  the increase of $0.140m in the 2004‑05 estimated outcome from the original budget reflects the increase in tenant rent arrears over the year.
•	current investments:  the increase of $13.988m in the 2004‑05 estimated outcome from the original budget is due to higher cash holdings retained to fund the rolled over grants expenditure and to meet capital program commitments.  The decrease of $4.707m in the 2005‑06 Budget from the 2004‑05 estimated outcome is due largely to major outlays associated with the grant payments rolled over from 2004‑05, the upgrade to the business system Homenet, and the redevelopment of rural villages during 2005‑06.
•	non current assets:  
–	the increase of $236.073m in the 2004‑05 estimated outcome from the original budget largely relates to increments in the value of the property portfolio arising from the asset revaluation since the 2004‑05 Budget; and
–	the increase of $124.159m in the 2005‑06 Budget from the 2004‑05 estimated outcome arises from the estimated increase in property values from the 2005 revaluation of the portfolio.
•	current liabilities:  
–	the decrease of $0.559m in the 2004‑05 estimated outcome from the original budget is due to a decrease in payables for year end accruals and a decrease in the provision for employee benefits as a result of the review of leave provisions, offset by the higher revenues received in advance for funding the community housing grants carried forward ($2.413m); and
–	the decrease of $2.301m in the 2005‑06 Budget from the 2004‑05 estimated outcome is a result of disbursing the rolled over grants.
Cash Flow Statement
•	proceeds from the sale of property, plant and equipment:  
–	the decrease of $27.423m in the 2004‑05 estimated outcome from the original budget is due to reduced property sales, including those to tenants, and the deferral of the sale of the former Burnie Court site; and
–	the increase of $9.777m in the 2005‑06 Budget from the 2004‑05 estimated outcome reflects an increase in the number and value of properties sold compared to 2004-05, with sales to tenants expected to increase towards more normal levels and the sale of the first part of Fraser Court scheduled for 2005‑06.
•	purchase of property, plant and equipment:  
–	the decrease of $14.413m in the 2004‑05 estimated outcome from the original budget is due to the reduced capital program following the reduction in sales proceeds; and
–	the decrease of $9.391m in the 2005‑06 Budget from the 2004‑05 estimated outcome is a result of aligning the scale of the capital program with the anticipated sales proceeds in 2005-06.
•	capital injection from Government:  the increase of $0.580m in the 2005‑06 Budget from the 2004‑05 estimated outcome is due to increased funding for improving energy and water efficiency in public housing.
•	repayment of borrowings:  the decrease of $0.090m in the 2004‑05 estimated outcome from the original budget and the increase of $0.111m in the 2005-06 Budget from the estimated outcome represent the alignment of the budgeted outlays with the agreed Commonwealth loan repayment schedules and variation bond loans activity.

Housing ACT	
Statement of Income and Expenses on Behalf of the Territory	
  2004-05			  2004-05	   2005-06		  2006-07	  2007-08	  2008-09		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
18  733		Grants from the Commonwealth	18  591	18  785	1	18  962	19  142	19  320		
18  733		Total Revenue	18  591	18  785	1	18  962	19  142	19  320		
		Gains								
0		Total Gains	0	0	-	0	0	0		
18  733		Total Income	18  591	18  785	1	18  962	19  142	19  320		
		Expenses								
18  733		Transfer Expenses	18  591	18  785	1	18  962	19  142	19  320		
18  733		Total Ordinary Expenses	18  591	18  785	1	18  962	19  142	19  320		
0		Operating Result	0	0	-	0	0	0		

Housing ACT	
Budgeted Statement of Cashflows on Behalf of the Territory	
  2004-05			  2004-05	   2005-06		  2006-07	  2007-08	  2008-09		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
18  733		Grants Received from the Commonwealth	18  591	18  785	1	18  962	19  142	19  320		
18  733		Operating Receipts	18  591	18  785	1	18  962	19  142	19  320		
		Payments								
18  733		Territory Receipts to Government	18  591	18  785	1	18  962	19  142	19  320		
18  733		Operating Payments	18  591	18  785	1	18  962	19  142	19  320		
0		NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	0	0	-	0	0	0		
0		NET INCREASE/(DECREASE) IN CASH HELD	0	0	-	0	0	0		
0		CASH AT THE END OF THE REPORTING PERIOD	0	0	-	0	0	0		

Notes to the Budget Statements
Significant variations are as follows:
Statement of Income and Expenses on Behalf of the Territory
•	grants from the Commonwealth:  
–	the decrease of $0.142m in the 2004‑05 estimated from the original budget is due to the adjustments for relative population movements between the states and territories under the Commonwealth-State Housing Agreement; and
–	the increase of $0.194m in the 2005‑06 Budget from the 2004‑05 estimated outcome reflects adjustments to the Commonwealth-State Housing Agreement funding for indexation ($0.317m), offset by the loss of funding for the Social Housing Subsidy Program ($0.123m).