InTACT
Objectives
InTACT’s objective is to supply, manage and maintain the Government’s Information and Communications Technology (ICT) infrastructure on a cost effective and efficient basis.
InTACT is responsible for ICT equipment infrastructure services, together with a common operating environment on all network servers and desktop equipment.
2005 – 06 Highlights
Strategic and operational initiatives to be pursued in 2005‑06 include:
•	continuing to focus on refining core business activities to improve service delivery, particularly through the adoption of best practice processes consistent with the Information Technology Infrastructure Library (ITIL);
•	expanding and enhancing InTACT’s Catalogue of Services;
•	refining InTACT’s costing and pricing models to ensure equitable and transparent cost recovery from clients for InTACT services;
•	continuing to enhance IT security across the Government in a cost effective and business focused manner;
•	completing the rollout of a private fibre network;
•	bringing payroll services for all Government staff in-house at a considerable saving;
•	developing a new Standard Operating Environment for use across all Government desktop and laptop computers;
•	implementing a new Service Desk tool to improve services, better manage workflow and integrate change management practices; and
•	planning for the dispersion of the data centre environment to enhance business and disaster recovery capability.

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  INTACT	  74  139	  74  750	  3  955	  2  341	
Output 1.1  InTACT	  74  139	  74  750	  3  955	  2  341	
Output Description
To provide and maintain IT infrastructure and communications for the ACT Public Service.  
InTACT will provide for:
•	services to approximately 56 individual government agencies as outlined in InTACT’s catalogue of services and affirmed through various Service Level and, Support Agreements;
•	management of the government data network;
•	around the clock on-call support on a fee-for-service basis;
•	assistance to agencies on IT security;
•	management of the whole of government communications network; and
•	general service / help desk functions.
Accountability Indicators
	2004‑05
Targets	2004‑05
Est. Outcome	2005‑06
Target	
1.1 InTACT	
a.	Costs within peer organisations’ costs, as benchmarked by an independent organisation.	n/a	Within 10%	Within 10%	
b.	E-mail availability across government during core business hours.1	n/a	98%	98%	
c.	Service requests made via the Service Desk are responded to within Service Level Agreements timeframes. 	n/a	98%	98%	
d.	Service requests made via the Service Desk are resolved within Service Level Agreements timeframes. 	n/a	80%	80%	

1 Established by determining up-time of each core component of the network across core business hours (Monday to Friday 7.30am to 6pm). 

Budgeted Financial Results
Section 31 of the Financial Management Act 1996 (FMA) advises that Chief Executives are responsible for 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 budgeted results for InTACT in 2005‑06:
•	Operating Result ($4.983m deficit) – this measure focuses on the financial performance of InTACT, and will measure InTACT’s success in managing expenditure levels within government funding and own-source revenue limitations;
•	Current Ratio (1.7 to 1) – the current ratio is an indication of the ability to fund short term liabilities from short term assets.  The measure indicates InTACT’s ability to fund liabilities falling due in the next financial year;
•	Account Receivable turnover (32 days) – this measure focuses on the average number of days required to collect outstanding debt;
•	Total Assets ($71.739m) – this measure focuses on InTACT’s ability to manage its assets base, which mainly consists of plant and equipment used in the provision of IT and communications across the government service; and
•	Total Liabilities ($22.230m) – this measure focuses on maintaining prudent levels of liabilities as required by Section 11 of the FMA.  The majority of InTACT’s liabilities are finance leases.

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	  3  955	  2  341	  1  224	  1  266	  1  266	
						
2005-06 Budget Technical Adjustments						
Revised Indexation Parameters	    0	    0	    0	    0	    23	
						
2005-06 Budget 	  3  955	  2  341	  1  224	  1  266	  1  289	

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	  10  365	  4  328	  3  000	  3  000	  3  000	
						
2005-06 Budget Policy Adjustments						
Extension of Private Data Network (PDN) to Hume	    0	  1  530	    0	    0	    0	
Data Centre Refurbishment	    0	  1  782	  1  193	    0	    0	
2005-06 Budget Technical Adjustments						
Return of Unrequired Capital Injection	    0	-2  000	-2  000	-2  000	-2  000	
						
2005-06 Budget 	  10  365	  5  640	  2  193	  1  000	  1  000	

2005‑06 Capital Works Program
Departmental
							
 	Estimated	Estimated	2005‑06	2006-07	2007-08	Expected 	
	Total	Expenditure	Financing	Financing	Financing	Completion 	
	Cost	Pre 2005‑06				Date  	
 	$’000	$’000	$’000	$’000	$’000	 	
							
New Capital Works							
 	 	 	 	 	 	 	
New Construction Works							
Data Communications Centres 	2  975	0	1  782	1  193	  0	Jun 2007	
Private Data Network Extension to Hume	1  530	0	1  530	  0	  0	Mar 2006	
							
Total New Construction Works	4  505	0	3  312	1  193	0	 	
							
Total New Departmental Capital Works	4  505	0	3  312	1  193	0	 	

InTACT	
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								
3  955		Government Payment for Outputs	3  955	2  341	-41	1  224	1  266	1  289		
1  263		User Charges - Non ACT Government	263	263	-	263	263	295		
59  435		User Charges - ACT Government	62  735	65  775	5	67  731	68  584	70  214		
1  088		Interest	1  088	1  088	-	1  129	1  216	1  311		
100		Other Revenue	100	100	-	100	100	100		
185		Resources Received free of charge	185	200	8	200	205	210		
66  026		Total Revenue	68  326	69  767	2	70  647	71  634	73  419		
		Gains								
0		Total Gains	0	0	-	0	0	0		
66  026		Total Income	68  326	69  767	2	70  647	71  634	73  419		
		Expenses								
12  743		Employee Expenses	12  198	15  987	31	16  168	16  350	16  526		
1  394		Superannuation Expenses	1  279	1  850	45	1  879	1  902	1  924		
38  372		Supplies and Services	40  432	37  807	-6	38  669	39  679	40  671		
18  957		Depreciation and Amortisation	18  957	17  619	-7	17  729	17  729	17  729		
1  573		Borrowing Costs	1  273	1  487	17	1  473	1  527	1  563		
73  039		Total Ordinary Expenses	74  139	74  750	1	75  918	77  187	78  413		
-7  013		Operating Result	-5  813	-4  983	14	-5  271	-5  553	-4  994		

InTACT	
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								
405		Cash	153	137	-10	114	14	61		
16  709		Receivables	8  078	8  017	-1	8  086	8  123	8  160		
14  521		Investments	24  606	21  113	-14	18  393	15  624	12  855		
19		Inventories	45	45	-	45	45	45		
838		Other	400	400	-	370	440	510		
32  492		Total Current Assets	33  282	29  712	-11	27  008	24  246	21  631		
		Non Current Assets								
43  330		Property, Plant and Equipment	38  329	42  015	10	41  144	38  924	37  116		
121		Other	12	12	-	12	12	12		
43  451		Total Non Current Assets	38  341	42  027	10	41  156	38  936	37  128		
75  943		TOTAL ASSETS	71  623	71  739	..	68  164	63  182	58  759		
		Current Liabilities								
8  678		Payables	7  542	7  642	1	7  842	8  142	8  442		
9  514		Finance Leases	7  888	7  522	-5	7  295	7  036	6  777		
1  696		Employee Benefits	1  719	1  737	1	1  740	1  743	1  746		
310		Other	896	896	-	896	896	896		
20  198		Total Current Liabilities	18  045	17  797	-1	17  773	17  817	17  861		
		Non Current Liabilities								
8  038		Finance Leases	3  460	3  067	-11	2  494	1  921	1  348		
1  152		Employee Benefits	1  266	1  366	8	1  466	1  566	1  666		
9  190		Total Non Current Liabilities	4  726	4  433	-6	3  960	3  487	3  014		
29  388		TOTAL LIABILITIES	22  771	22  230	-2	21  733	21  304	20  875		
46  555		NET ASSETS	48  852	49  509	1	46  431	41  878	37  884		
		REPRESENTED BY FUNDS EMPLOYED								
46  555		Accumulated Funds	48  852	49  509	1	46  431	41  878	37  884		
46  555		TOTAL FUNDS EMPLOYED	48  852	49  509	1	46  431	41  878	37  884		

InTACT	
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								
3  955		Cash from Government for Outputs	3  955	2  341	-41	1  224	1  266	1  289		
61  184		User Charges	63  484	66  534	5	68  498	69  388	71  057		
1  088		Interest Received	1  088	1  088	-	1  129	1  216	1  311		
10  690		Other Revenue	11  099	11  673	5	11  643	11  745	12  033		
76  917		Operating Receipts	79  626	81  636	3	82  494	83  615	85  690		
		Payments								
13  618		Related to Employees	12  891	17  819	38	18  044	18  249	18  447		
38  413		Related to Supplies and Services	40  473	37  844	-6	38  714	39  725	40  719		
1  573		Borrowing Costs	1  273	1  487	17	1  473	1  527	1  563		
10  689		Other	11  098	11  671	5	11  641	11  742	12  030		
64  293		Operating Payments	65  735	68  821	5	69  872	71  243	72  759		
12  624		NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	13  891	12  815	-8	12  622	12  372	12  931		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Receipts								
100		Proceeds from Sale of Property, Plant & Equipment	100	100	-	100	100	100		
100		Investing Receipts	100	100	-	100	100	100		
		Payments								
14  644		Purchase of Property, Plant and Equipment	14  644	10  140	-31	5  693	4  500	4  616		
14  644		Investing Payments	14  644	10  140	-31	5  693	4  500	4  616		
-14  544		NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES	-14  544	-10  040	-31	-5  593	-4  400	-4  516		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Receipts								
10  365		Capital Injection from Government	10  365	5  640	-46	2  193	1  000	1  000		
10  365		Financing Receipts	10  365	5  640	-46	2  193	1  000	1  000		
		Payments								
11  881		Repayment of Finance Lease	11  881	11  924	..	11  965	11  841	12  137		
11  881		Financing Payments	11  881	11  924	..	11  965	11  841	12  137		
-1  516		NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES	-1  516	-6  284	-315	-9  772	-10  841	-11  137		
-3  436		NET INCREASE/(DECREASE) IN CASH HELD	-2  169	-3  509	-62	-2  743	-2  869	-2  722		
18  362		CASH AT BEGINNING OF REPORTING PERIOD	26  928	24  759	-8	21  250	18  507	15  638		
14  926		CASH AT THE END OF THE REPORTING PERIOD	24  759	21  250	-14	18  507	15  638	12  916		

InTACT	
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		
43  203		Opening Balance	44  300	48  852	10	49  509	46  431	41  878		
		Accumulated Funds								
-7  013		Operating Result for the Period	-5  813	-4  983	14	-5  271	-5  553	-4  994		
		Reserves								
-7  013		Total Income And Expense For The Period	-5  813	-4  983	14	-5  271	-5  553	-4  994		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
10  365		Capital Injections	10  365	5  640	-46	2  193	1  000	1  000		
46  555		Closing Balance	48  852	49  509	1	46  431	41  878	37  884		
Notes to the Budget Statements
Significant variations are as follows:
Operating Statement
•	government payment for outputs:  the decrease of $1.614m in the 2005‑06 Budget from the 2004‑05 estimated outcome is mainly due to funding being provided in 2004‑05 to implement a new Private Data Network.
•	user charges – non ACT Government:  the decrease of $1m in the 2004‑05 estimated outcome from the original budget is due mainly to the removal of discontinued services and one-off revenue items not provided in 2004‑05 as originally expected.
•	user charges – ACT Government:
•	the increase of $3.3m in the 2004‑05 estimated outcome from the original budget is due to increased desktop environment support (DES) and asset rental revenue based on improved asset records, higher communication (voice and data) and Oracle licence recoveries through greater consumption and greater then expected project activity; and
•	the increase of $3.040m in the 2005‑06 Budget from the 2004‑05 estimated outcome reflects an increase in the number of assets being invoiced, increased project related activities and the recovery of staff transfers.
•	employee and superannuation expenses:
•	the decrease of $0.660m in the 2004‑05 estimated outcome from the original budget is due to permanent staffing levels not reaching budgeted expectations which was partially offset by the transfer of certain IT staff from agencies during 2004‑05; and
•	the increase of $4.360m in the 2005‑06 Budget from the 2004‑05 estimated outcome is due to the expected increase in permanent staff from 174 to 204.  The increase in staff is due to the full year effect of the proposed transfer of IT staff from certain agencies, as well as incorporating the provision of new services.  The 2005‑06 Budget also includes the full year effect of wage increases and the continuation of the policy to replace contractors with permanent personnel.
•	supplies and services:
•	the increase of $2.060m in the 2004‑05 estimated outcome from the original budget is due to an increase in costs associated with communications, lease extensions and project related activities, as well as increases in contractor costs due to permanent staffing levels not reaching budgeted expectations.  This is offset by reduced costs associated with new software licensing and server maintenance arrangements; and
•	the decrease of $2.625m in the 2005‑06 Budget from the 2004‑05 estimated outcome is due to the realisation of savings from the implementation of the new Private Data Network ($1.8m); savings for voice ($1.9m), mobiles ($0.4m) and internet ($0.2m) from new contracts and the devolution of mobile phone expenditure ($0.6m) to agencies in 2005‑06.  These decreases have been partially offset by an increase in communication costs associated with bringing the Canberra Hospital onto the Government contract, an increase in IT computing costs of $1.1m following additional data system monitoring software and additional Oracle Government Financials / Human Resource System Solution licensing.
•	depreciation and amortisation:  the decrease of $1.338m in the 2005‑06 Budget from the 2004‑05 estimated outcome is due to reduced depreciation on existing infrastructure assets partially offset by the full year depreciation on 2004‑05 asset purchases and business initiatives.
•	borrowing costs:  
•	the decrease of $0.3m in the 2004‑05 estimated outcome from the original budget reflects the decision not to lease-back certain assets during 2004‑05; and
•	the increase of $0.214m in the 2005‑06 Budget from the 2004‑05 estimated outcome is due to the continuation of normal leasing activity during 2005‑06.
Balance Sheet
•	receivables:  the decrease of $8.631m in the 2004‑05 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 be paid by the 30 June 2005.
•	current investments:  
•	the increase of $10.085m in the 2004‑05 estimated outcome from the original budget is due to a better than expected 2003‑04 audited outcome and the expectation that a significant amount of fourth quarter invoices to be issued in early June will be paid by 30 June 2005; and
•	the decrease of $3.493m in the 2005‑06 Budget from the 2004‑05 estimated outcome is due mainly to the use of funds for equipment and IT purchases.
•	other current assets:  the decrease of $0.438m in the 2004‑05 estimated outcome from the original budget is due to a reduction in prepayments associated with long‑term maintenance costs.
•	property, plant and equipment:
•	the decrease of $5.001m in the 2004‑05 estimated outcome from the original budget is mainly due to an over estimation of leasing activity in 2004‑05 and the delay in the commencement of some initiatives to 2005‑06; and
•	the increase of $3.686m in the 2005‑06 Budget from the 2004‑05 estimated outcome is due to the rollover of some initiatives from 2004‑05 to 2005‑06, and new 2005‑06 initiatives such as the planned extension of the new Private Data Network to Hume and refurbishment of data centres.
•	total liabilities:  the decrease of $6.617m in the 2004‑05 estimated outcome from the original budget is mainly due to a decrease in lease liability associated with the non-leaseback of assets ($6.204m).
Cash Flow Statement
•	purchase of property, plant and equipment:  the decrease of $4.504m in the 2005‑06 Budget from the 2004‑05 estimated outcome is due to reduced assets purchases following the commencement of a new lease facility from 1 September 2004. 
Statement of Changes in Equity
•	capital injections:  the decrease of $4.725m in the 2005‑06 Budget from the 2004‑05 estimated outcome represents decreased funding of $7.365m due to the finalisation of the new Private Data Network initiative in 2004‑05.  This has been partially offset by funding received for two new initiatives in 2005‑06: the refurbishment of data centres ($1.782m) and the extension of the Private Data Network to Hume ($1.530m).