DEPARTMENT of Treasury
Objectives
The Department of Treasury (Treasury) provides strategic financial and economic policy advice to the Government with the aim of promoting the Territory’s financial position and economic management.
Treasury plays a leading role in promoting accountability and transparency in the delivery of services to the community.  This is achieved through sound financial policies, management practices and analysis.
2008-09 Priorities
Strategic and operational issues to be pursued in 2008‑09 include:
•	assisting the Government to maintain the Territory’s AAA credit rating through sound and sustainable economic and financial management;
•	managing the ACT’s input into the Commonwealth Grants Commission’s (CGC) reporting on State Revenue Sharing Relativities 2009 and updating the CGC’s 2010 Methodology Review;
•	implementing Whole of Government reporting changes required by the harmonisation of Generally Accepted Accounting Principles (GAAP) and Government Finance Statistics (GFS), which will be reported on for the first time from 30 June 2009;
•	coordinating the preparation of the Government’s budget and reporting on financial outcomes;
•	presenting a pre-election budget update at least 30 days before the polling day;
•	continuing to improve the Territory’s financial management framework;
•	finalising the Government’s revised Asset Management Framework and establishing a rolling program to develop/review agency Strategic Asset Management Plans;
•	implementing the Government’s policy agenda with respect to compulsory third party insurance, and its other insurance related initiatives;
•	implementing the Government's policy priorities related to the Affordable Housing Action Plan; 
•	upgrading the Territory’s revenue collection computer system;
•	undertaking specific reviews of government programs to advise if resources are efficiently and effectively allocated; 
•	representing the ACT in the development of the Council of Australian Governments (COAG) reform agenda and implementing the Territory’s commitments to national competition policy;
•	strengthening the Territory’s Regulatory Impact Statement processes consistent with the COAG agreement; and
•	finalising a review of the investment strategy with respect to funds held in the Territory Banking Account and Superannuation Provision Account and implementing any changes.
Business and Corporate Strategies
Treasury will assist the Government to implement financially and economically sustainable policies and programs.
In accordance with its business, risk management and human resource plans, Treasury will:
•	identify the most effective and efficient use of available resources through analysing programs and expenditure proposals;
•	strengthen collaborative relationships with Government departments, external organisations and other agencies through negotiation, consultation, best practice governance arrangements and effective service delivery; and
•	build Treasury’s capabilities through effective leadership, staff retention, recruitment policies, and personal and professional development practices.
Estimated Employment Levels
2007-08
Budget			2007‑08
Est.  Outcome	2008‑09
Budget	
181		Staffing (FTE)1	176	184	
Note:
1.	Excludes the Superannuation Provision Account.

Strategic Indicators
Strategic Indicator 1
Achieving a budget operating surplus
The Government’s objective is to achieve an operating surplus: temporary deficits must only occur if they are offset by surpluses at other times.  An ongoing element of the Government’s strategy in the 2008‑09 Budget is to maintain a surplus net operating balance without the traditional reliance on land sales revenue.
Detailed information for this indicator is included in Budget Paper No. 3.

Strategic Indicator 2
Maintaining a AAA credit rating
Standard and Poor’s assess the Territory’s credit rating each year.  The Territory currently has the highest possible credit rating - a AAA credit rating.  
Treasury assists the Government to maintain this credit rating through the provision of sound policy advice.

Strategic Indicator 3
Maintain net financial liabilities within the range of AAA rated jurisdictions
Net financial liabilities are a broad measure of general government sector liabilities, including net debt and superannuation liabilities.  The ACT has a strong balance sheet, and the Government’s objective is to maintain this position relative to AAA rated jurisdictions.
Detailed information for this indicator is included in Budget Paper No. 3.

Output Classes
	Total Cost1	Government Payment for Outputs	
	2007‑08
Est. Outcome
$’000	2008‑09
Budget
$’000	2007‑08
Est. Outcome
$’000	2008‑09
Budget
$’000	
Output Class 1: 
Financial and Economic Management	43,800	53,609	40,636	49,623	
Output 1.1: Economic Management	5,295	5,561	5,098	5,424	
Note:
1.	Total cost includes depreciation and amortisation of $0.2 million in 2007‑08 and $1.775 million in 2008‑09.
Output Description
This output covers a range of services including: economic policy advice, regulatory reform advice, analysis of major projects, intergovernmental financial relations, insurance policy advice, gambling and racing policy advice and oversight of the Territory’s investments and debt.
The key outputs to be delivered in 2008‑09 include:
•	monitoring and advising on the state of the ACT economy;
•	coordinating ACT Government involvement with the CGC comprising:
–	an annual submission to the CGC update of State Revenue Sharing Relativities; and
–	submissions, representations and participation in the CGC's major review of methodology underpinning the general revenue sharing relativities to apply from 2010‑11 onwards.
•	overseeing the implementation of the COAG regulatory reform program; 
•	implementing reforms to ACT compulsory third party scheme and policy review of other statutory classes of insurance; and
•	implementation of a group insurance initiative for non-profit organisations in collaboration with Volunteering ACT.

	Total Cost	Government Payment for Outputs	
	2007‑08
Est. Outcome
$’000	2008‑09
Budget
$’000	2007‑08
Est. Outcome
$’000	2008‑09
Budget
$’000	
Output 1.2: Financial Management	26,314	35,139	23,848	31,690	
Output Description
Provision of analysis, monitoring and reporting on the financial performance of agencies to assist the Government to achieve its policy objectives.
The key outputs to be delivered in 2008‑09 include:
•	the preparation and presentation of the Government’s annual budget and annual financial statements;
•	preparing a pre-election budget update and providing it to the Parliamentary Counsel for notification at least 30 days before the polling day;
•	quarterly Whole of Government consolidated management reports;
•	finalising the Government’s revised Asset Management Framework and establishing a rolling program to develop/review agency Strategic Asset Management Plans;
•	reporting to external agencies including the Australian Loan Council, the Australian Bureau of Statistics and the CGC;
•	implementing Whole of Government reporting changes required by the harmonisation of Generally Accepted Accounting Principles (GAAP) and Government Finance Statistics (GFS), which will be reported on for the first time 30 June 2009;
•	reviews of government programs and functions; and
•	advice on the structure and operation of Government Business Enterprises.

	Total Cost	Government Payment for Outputs	
	2007‑08
Est. Outcome
$’000	2008‑09
Budget
$’000	2007‑08
Est. Outcome
$’000	2008‑09
Budget
$’000	
Output 1.3: Revenue Management	12,191	12,909	11,690	12,509	
Output Description
This output provides for the administration of the ACT Government’s taxation revenue.  It also includes the provision of policy advice on taxation matters.
The key outputs to be delivered in 2008‑09 include:
•	collecting an estimated $950 million in taxation revenue;
•	providing high quality and timely advice to assist taxpayers meet their obligations; 
•	processing 260 objections and reviews of decision (comprising 150 objections relating to unimproved land value and 110 other objections and reviews);
•	processing 1,200 Home Buyer Concession Scheme transactions; and
•	processing 2,700 First Home Owner Grant applications.

Accountability Indicators
	2007‑08
Targets	2007‑08
Est. Outcome	2008‑09
Targets	
1.1: Economic Management	
a.	Briefings on the ACT Economy	127	125	125	
b.	Submission to CGC Annual Update	1	1	1	
c.	Submissions to the CGC Major Review	3	3	2	
d.	Submission to credit rating agency	1	1	1	
				
1.2: Financial Management	
a.	Budget	1	1	1	
b.	Annual Financial Reports	1	1	1	
c.	Quarterly Reports	4	4	4	
d.	Pre-election Budget Update1	n/a	n/a	1	
e.	Policy/Service Area Reviews	1	1	1	
	
1.3: Revenue Management	
a.	Debt Management - level of outstanding debt as a percentage of Treasury tax revenue	2%	2.1%	2%	
b.	Compliance revenue per inspector2	$340,000	$650,000	$360,000	
				
Notes:
1.	New measure.
2.	There were large payroll tax assessments issued in July 2007 and November 2007 which increased the amount of revenue resulting from compliance activity.  These were one off transactions and similar transactions are not expected to continue into 2008‑09.

Changes to Appropriation
Changes to Appropriation - Departmental						
 	2007-08	2008-09	2009-10	2010-11	2011-12	
Government Payment for Outputs	Est. Out.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2007-08 Budget	 49,205	 33,073	 28,796	 29,351	 29,351	
						
FMA Section 16B Rollovers from 2006-07						
Restructure Fund	1,288	 - 	 - 	 - 	 - 	
Oracle Government Financials	67	 - 	 - 	 - 	 - 	
						
2nd Appropriation						
Equine Influenza Assistance Package	150	 - 	 - 	 - 	 - 	
						
2008-09 Budget Policy Adjustments 						
Council of Australian Government Additional Resourcing	 - 	138	143	 - 	 - 	
Government Office Building - Project Advice	 - 	800	800	350	350	
National Tax Equivalent Regime Compliance Review	 - 	55	 - 	 - 	 - 	
Administration of Compulsory Third Party Insurance Scheme	 - 	120	123	126	129	
Administration of Pensioner Duty Exemption Initiative	 - 	120	125	130	 - 	
Territory Revenue Systems Upgrade	 - 	250	250	250	250	
Affordable Housing Action Plan - Land Rent Scheme System Upgrade	 - 	10	10	10	10	
Whole of Government - Capital Contingency Fund	 - 	4,000	 - 	 - 	 - 	
Whole of Government - Capital Improvement Program	 - 	3,000	 - 	 - 	 - 	
Whole of Government - Asset Management and Capital Delivery Planning	 - 	2,000	1,500	1,000	500	
						
2008-09 Budget Technical Adjustments						
Rollover - Capital Improvement Program	(1,172)	1,172	 - 	 - 	 - 	
Rollover - Restructure Fund	(8,000)	5,000	1,500	1,500	500	
Revised Indexation Parameters	 - 	51	52	53	470	
Decreased Superannuation Contributions	(402)	(166)	(251)	(308)	(311)	
Forecast Underspend	(500)	 - 	 - 	 - 	 - 	
						
2008-09 Budget	 40,636	 49,623	 33,048	 32,462	 31,249	

						

Changes to Appropriation - Territorial						
 	2007-08	2008-09	2009-10	2010-11	2011-12	
Payment for Expenses on Behalf of Territory	Est. Out.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2007-08 Budget	35,800	36,062	36,050	36,308	36,308	
						
2008-09 Budget Technical Adjustments						
Revised First Home Owners Grant	1,500	1,500	1,500	1,500	1,500	
Revised GST Administration Costs	(366)	30	44	67	79	
Revised Racing Development Fund	13	222	234	245	457	
Correction of Prior Year Over Appropriation	(773)	(773)	(773)	(773)	(773)	
						
2008-09 Budget	36,174	37,041	37,055	37,347	37,571	

Changes to Appropriation - Departmental						
 	2007-08	2008-09	2009-10	2010-11	2011-12	
Capital Injections	Est. Out.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2007-08 Budget	31,821	23,000	17,038	10,000	10,000	
						
2008-09 Budget Policy Adjustments 						
Territory Revenue Systems Upgrade	 - 	200	 - 	 - 	 - 	
						
2008-09 Budget Technical Adjustments						
Rollover - Oracle Government Financials	(850)	850	 - 	 - 	 - 	
Community Housing Canberra (CHC) Loan Facility	 - 	5,000	(5,000)	 - 	(3,000)	
Fleet Financing Facility	(15,000)	(15,000)	 - 	 - 	 - 	
						
2008-09 Budget	15,971	14,050	12,038	10,000	7,000	

Changes to Appropriation - Territorial						
 	2007-08	2008-09	2009-10	2010-11	2011-12	
Capital Injections	Est. Out.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2007-08 Budget	 - 	 - 	 - 	 - 	 - 	
						
2008-09 Budget Policy Adjustments 						
Affordable Housing Action Plan - Land Rent Scheme	 - 	20,400	21,000	21,600	22,300	
						
2008-09 Budget	 - 	20,400	21,000	21,600	22,300	

Commonwealth Government Grants
The major Commonwealth Government grants for which Treasury has responsibility are:
Name of Grant	Activities Funded by Grant	2008‑09
Estimate
$'000	
Assistance for Water and Sewerage	Assistance in meeting the additional cost for water and sewerage arising from Canberra's role as the national capital.	9,817	
Financial Assistance Grants for Local Government	Financial assistance in relation to the operation of local governing bodies.	38,388	
ACT National Capital Influences	Compensation for the effect of national capital influences on the costs of providing municipal services.	24,411	
GST Revenue Grants	GST revenue provided to the ACT by the Australian Government.	907,400	
Total		980,016	

Department of Treasury	
Operating Statement	
  2007-08			  2007-08	   2008-09		  2009-10	  2010-11	  2011-12		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
49,205		Government Payment for Outputs	40,636	49,623	22	33,048	32,462	31,249		
926		Interest	156	1,439	822	2,256	2,956	3,618		
500		Resources Received free of charge	500	500	-	500	500	500		
50,631		Total Revenue	41,292	51,562	25	35,804	35,918	35,367		
		Gains								
0		Total Gains	0	0	-	0	0	0		
50,631		Total Income	41,292	51,562	25	35,804	35,918	35,367		
		Expenses								
14,110		Employee Expenses	14,160	15,078	6	15,368	15,463	15,550		
2,821		Superannuation Expenses	2,419	2,802	16	2,804	2,820	2,841		
10,319		Supplies and Services	9,886	13,509	37	13,044	12,342	12,014		
116		Depreciation and Amortisation	200	1,775	788	1,894	1,896	153		
459		Borrowing Costs	164	1,446	782	2,257	2,956	3,618		
22,834		Grants and Purchased Services	16,971	18,999	12	2,341	2,346	1,353		
50,659		Total Ordinary Expenses	43,800	53,609	22	37,708	37,823	35,529		
-28		Operating Result	-2,508	-2,047	18	-1,904	-1,905	-162		

Department of Treasury	
Balance Sheet	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/08			as at 30/6/08	as at 30/6/09	   Var	as at 30/6/10	as at 30/6/11	as at 30/6/12		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
7,330		Cash and Cash Equivalents	1,572	527	-66	468	414	360		
8,276		Receivables	544	388	-29	388	388	388		
710		Other	28	28	-	28	28	28		
16,316		Total Current Assets	2,144	943	-56	884	830	776		
		Non Current Assets								
18,985		Receivables	12,000	25,000	108	33,000	43,000	50,000		
1,500		Investments	0	0	-	0	0	0		
123		Property, Plant and Equipment	114	21	-82	1	1	1		
20		Intangibles	0	3,940	-	2,049	153	0		
4,992		Capital Works in Progress	4,137	0	-100	0	0	0		
25,620		Total Non Current Assets	16,251	28,961	78	35,050	43,154	50,001		
41,936		TOTAL ASSETS	18,395	29,904	63	35,934	43,984	50,777		
		Current Liabilities								
1,527		Payables	1,335	1,386	4	1,437	1,437	1,437		
457		Interest Bearing Liabilities	156	0	-100	0	0	0		
5		Finance Leases	29	3	-90	0	0	0		
4,483		Employee Benefits	4,300	4,468	4	4,538	4,609	4,680		
3,050		Other	0	0	-	0	51	102		
9,522		Total Current Liabilities	5,820	5,857	..	5,975	6,097	6,219		
		Non Current Liabilities								
12,000		Interest Bearing Liabilities	12,000	25,000	108	33,000	43,000	50,000		
22		Finance Leases	84	17	-80	0	0	0		
249		Employee Benefits	253	261	3	261	261	261		
12,271		Total Non Current Liabilities	12,337	25,278	105	33,261	43,261	50,261		
21,793		TOTAL LIABILITIES	18,157	31,135	71	39,236	49,358	56,480		
20,143		NET ASSETS	238	-1,231	-617	-3,302	-5,374	-5,703		
		REPRESENTED BY FUNDS EMPLOYED								
20,143		Accumulated Funds	238	-1,231	-617	-3,302	-5,374	-5,703		
20,143		TOTAL FUNDS EMPLOYED	238	-1,231	-617	-3,302	-5,374	-5,703		

Department of Treasury	
Cash Flow Statement	
  2007-08			  2007-08	   2008-09		  2009-10	  2010-11	  2011-12		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
49,205		Cash from Government for Outputs	40,636	49,623	22	33,048	32,462	31,249		
469		Interest Received	0	1,595	#	2,256	2,956	3,618		
1,098		Other Revenue	1,098	1,070	-3	1,068	1,068	1,068		
50,772		Operating Receipts	41,734	52,288	25	36,372	36,486	35,935		
		Payments								
16,708		Related to Employees	16,156	17,683	9	18,080	18,190	18,298		
9,683		Related to Supplies and Services	9,250	12,871	39	12,404	11,702	11,374		
2		Borrowing Costs	8	1,602	#	2,257	2,956	3,618		
22,834		Grants and Purchased Services	16,971	18,999	12	2,341	2,346	1,353		
15,174		Other	1,205	1,178	-2	5,217	1,179	1,179		
64,401		Operating Payments	43,590	52,333	20	40,299	36,373	35,822		
-13,629		NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	-1,856	-45	98	-3,927	113	113		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Payments								
750		Purchase of Property, Plant and Equipment	750	0	-100	0	0	0		
4,233		Purchase of Land and Intangibles	3,383	1,550	-54	0	0	0		
1,500		Purchase of Investments	0	0	-	0	0	0		
12,000		Issue of Loan	12,000	13,000	8	8,000	10,000	7,000		
18,483		Investing Payments	16,133	14,550	-10	8,000	10,000	7,000		
-18,483		NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES	-16,133	-14,550	10	-8,000	-10,000	-7,000		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Receipts								
31,821		Capital Injection from Government	15,971	14,050	-12	12,038	10,000	7,000		
31,821		Financing Receipts	15,971	14,050	-12	12,038	10,000	7,000		
		Payments								
912		Distributions to Government	1,500	472	-69	167	167	167		
9		Repayment of Finance Lease	28	28	-	3	0	0		
921		Financing Payments	1,528	500	-67	170	167	167		
30,900		NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES	14,443	13,550	-6	11,868	9,833	6,833		
-1,212		NET INCREASE/(DECREASE) IN CASH HELD	-3,546	-1,045	71	-59	-54	-54		
8,542		CASH AT BEGINNING OF REPORTING PERIOD	5,119	1,573	-69	528	469	415		
7,330		CASH AT THE END OF THE REPORTING PERIOD	1,573	528	-66	469	415	361		

Department of Treasury	
Statement of Changes in Equity	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/08			as at 30/6/08	as at 30/6/09	   Var	as at 30/6/10	as at 30/6/11	as at 30/6/12		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
1,262		Opening Balance	275	238	-13	-1,231	-3,302	-5,374		
		Accumulated Funds								
-28		Operating Result for the Period	-2,508	-2,047	18	-1,904	-1,905	-162		
		Reserves								
-28		Total Income And Expense For The Period	-2,508	-2,047	18	-1,904	-1,905	-162		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
19,821		Capital Injections	3,971	1,050	-74	4,038	0	0		
-912		Capital (Distributions)	-1,500	-472	69	-167	-167	-167		
0		Inc/Dec in Net Assets due to Admin Restructure	0	0	-	-4,038	0	0		
20,143		Closing Balance	238	-1,231	-617	-3,302	-5,374	-5,703		
Notes to the Budget Statements
Significant variations are as follows:
Operating Statement
•	government payment for outputs: 
–	the decrease of $8.569 million in the 2007‑08 estimated outcome from the original budget is mainly due to:
•	the rollover of funding for the Restructure Fund ($8 million) and rollover of the Capital Improvements Fund ($1.172 million);
•	decreased superannuation contributions ($0.402 million); and
•	decreased expenses ($0.5 million) resulting from staff vacancies and supplies and services underspend; 
partially offset by:
•	the rollover of funding via a section 16B instrument from 2006‑07 for the Restructure Fund ($1.288 million) and for the Oracle Financial System upgrade ($0.067 million); and
•	the 2007‑08 Budget Second Appropriation for equine influenza grants ($0.150 million).
–	the increase of $8.987 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is mainly due to:
•	new initiatives for 2008‑09 ($7.428 million);
•	indexation ($0.240 million);
•	wage increases ($0.547 million);
•	additional in funding for the Capital Improvements Program ($2.344 million); and
•	full expenditure in 2008-09 compared to underspend in 2007‑08 ($0.736 million);
partially offset by:
•	re-profiling of funding for the Restructure Fund ($2.288 million). 
•	interest received:  
–	the decrease of $0.770 million in the 2007‑08 estimated outcome from the original budget reflects delays with the new finance facility to Community Housing Canberra and non-requirement of the finance facility for the Government Fleet; and
–	the increase of $1.283 million in the 2008‑09 Budget from the 2007‑08 estimated outcome reflects the interest received for the new finance facility to Community Housing Canberra.
•	employee expenses:  the increase of $0.918 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is mainly due to the effect of wage increases ($0.437 million), full staff levels ($0.150 million) and increased employment of permanent staff rather than use of temporary contractors ($0.3 million).
•	superannuation expenses:  
–	the decrease of $0.402 million in the 2007‑08 estimated outcome from the original budget is mainly due to staff vacancies and staff turnover resulting in movement to funds attracting lower superannuation rates; and
–	the increase of $0.383 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is mainly due to wage increases and full staff levels, partially offset by a decrease due to staff turnover resulting in movement to funds attracting lower superannuation rates.
•	supplies and services: 
–	the decrease of $0.433 million in the 2007‑08 estimated outcome from the original budget is due to decreased administrative expenditure due to underspend ($0.350 million) and the rollover of expenditure for the Whole of Government Financial Systems into 2008‑09 ($0.150 million); and
–	the increase of $3.623 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is mainly due to:
•	increased expenses from indexation ($0.240 million); 
•	costs associated with new initiatives ($3.170 million); 
•	increase in Whole of Government Financial System expenses ($0.147 million); and
•	full expenditure in 2008‑09 compared to underspend in 2007‑08 ($0.350 million);
partially offset by:
•	the decreased use of temporary contractors ($0.3 million).
•	depreciation and amortisation:  the increase of $1.575 million in the 2008‑09 Budget from the 2007‑08 estimated outcome mainly reflects depreciation associated with the upgrade of the Oracle Financial System.
•	borrowing costs:  the decrease of $0.295 million in the 2007‑08 estimated outcome from the original budget and the increase of $1.282 million in the 2008‑09 Budget from the 2007‑08 estimated outcome reflects the delays associated with the new finance facility to Community Housing Canberra.
•	grants and purchased services:
–	the decrease of $5.863 million in the 2007‑08 estimated outcome from the original budget is primarily due to:
•	the rollover of Restructure Fund expenditure into future years ($8 million); and
•	the rollover of Capital Improvements Program expenditure into future years ($1.172 million);
partially offset by:
•	the rollover of funding via a section 16B instrument from 2006‑07 for the Restructure Fund ($1.288 million);
•	Restructure Fund expenses in 2007‑08 funded from cash unspent in 2006‑07 ($1.871 million); and 
•	the 2007‑08 Budget Second Appropriation for equine influenza grants ($0.150 million).
–	the increase of $2.028 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is largely related to the new capital contingency fund initiative ($4 million), increased funding for the Capital Improvements Program ($2.344 million), partially offset by a decrease in expenditure associated with the Restructure Fund ($4.159 million) and cessation of equine influenza grants in 2007‑08 ($0.150 million).
Balance Sheet
•	cash and cash equivalents:  
–	the decrease of $5.758 million in the 2007‑08 estimated outcome from the original budget is mainly due to:
•	the reassessment of cash at bank following the 2006‑07 audited outcome ($3.425 million);
•	expenditure of unspent cash from 2006‑07 for the Restructure Fund  ($1.871 million); and
•	return of additional excess cash to Government ($0.588 million);
partially offset by:
•	the rollover of Oracle Financial System’s unspent cash from 2006‑07 ($0.150 million).
–	the decrease of $1.045 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is due to expenditure on the Land Rent Scheme IT Upgrade ($0.5 million) and a cash distribution to Government ($0.472 million).
•	current and non current receivables:
–	the decrease of $14.717 million in the 2007‑08 estimated outcome from the original budget is mainly due to non-requirement of the finance facility for the Government Fleet ($13.969 million); and
–	the increase of $12.844 million in the 2008‑09 Budget from the 2007‑08 estimated outcome reflects the amount drawn under the finance facility for Community Housing Canberra.
•	other current assets:  the decrease of $0.682 million in the 2007‑08 estimated outcome from the original budget is due to reassessment of other current prepayments following the 2006‑07 audited outcome.
•	non current investments:  the decrease of $1.5 million in the 2007‑08 estimated outcome from the original budget reflects non-requirement of new finance facilities for the Government Fleet.
•	intangibles: the increase of $3.940 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is due to the upgrade of the Oracle Financial System ($3.214 million), the Land Rent Scheme IT upgrade ($0.5 million) and the TRS upgrade ($0.2 million).
•	capital works in progress:  
–	the decrease of $0.855 million in the 2007‑08 estimated outcome from the original budget is mainly due to rollover of expenditure relating to the upgrade of the Oracle Financial System to 2008‑09; and
–	the decrease of $4.137 million in the 2008‑09 Budget from the 2007‑08 estimated outcome reflects the completion of all capital works in progress.  
•	payables: the decrease of $0.192 million in the 2007‑08 estimated outcome from the original budget reflects the reassessment of payables following the 2006‑07 audited outcome. 
•	current interest bearing liabilities:  
–	the decrease of $0.301 million in the 2007‑08 estimated outcome from the original budget and the decrease of $0.156 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is due to delays with financing required for the finance facility for Community Housing Canberra in 2008‑09.
•	other current liabilities:  the decrease of $3.050 million in the 2007‑08 estimated outcome from the original budget reflects the reassessment of revenue received in advance following the 2006‑07 audited outcome.
•	non current interest bearing liabilities:  the increase of $13 million in the 2008‑09 Budget from the 2007‑08 estimated outcome reflects the amount drawn under the finance facility for Community Housing Canberra.
Statement of Changes in Equity
•	capital injections:  
–	the decrease of $15.850 million in the 2007‑08 estimated outcome from the original budget is due to the non-requirement of finance facility for the Government Fleet ($15 million) and the rollover of funding to update and re‑implement the Oracle Financial System to achieve a single instance ($0.850 million); and
–	the decrease of $2.921 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is due to the upgrade of the Oracle Financial System which occurred in 2007‑08 ($3.121 million), partially offset by the increase due to the Territory Revenue System upgrade initiative ($0.2 million). 
•	capital distribution:  
–	the decrease of $0.588 million in the 2007‑08 estimated outcome from the original budget is due to the return of surplus cash to Government during 2007‑08; and
–	the increase in the distribution of $1.028 million in 2008‑09 Budget from the 2007‑08 estimated outcome reflects improved cash management. 

Department of Treasury	
Statement of Income and Expenses on Behalf of the Territory	
  2007-08			  2007-08	   2008-09		  2009-10	  2010-11	  2011-12		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
35,800		Payment for Expenses on behalf of Territory	36,174	37,041	2	37,055	37,347	37,571		
853,150		Taxes Fees and Fines	991,299	970,133	-2	1,006,282	1,047,323	1,094,566		
893,036		Grants from the Commonwealth	913,474	980,016	7	1,026,878	1,074,682	1,124,770		
21		Interest	21	21	-	21	21	21		
144,318		Dividend Revenue	226,135	141,299	-38	131,235	124,230	124,408		
7,499		Other Revenue	7,599	8,356	10	9,013	9,711	10,452		
1,933,824		Total Revenue	2,174,702	2,136,866	-2	2,210,484	2,293,314	2,391,788		
		Gains								
0		Total Gains	0	0	-	0	0	0		
1,933,824		Total Income	2,174,702	2,136,866	-2	2,210,484	2,293,314	2,391,788		
		Expenses								
10,051		Supplies and Services	9,685	10,158	5	9,970	10,055	10,067		
24,756		Grants and Purchased Services	26,287	26,663	1	26,865	27,072	27,284		
5,238		Other Expenses	5,238	5,254	..	5,271	5,289	5,307		
1,893,779		Transfer Expenses	2,133,492	2,094,791	-2	2,168,378	2,250,898	2,349,130		
1,933,824		Total Ordinary Expenses	2,174,702	2,136,866	-2	2,210,484	2,293,314	2,391,788		
0		Operating Result	0	0	-	0	0	0		

Department of Treasury	
Statement of Assets and Liabilities on Behalf of the Territory	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/08			as at 30/6/08	as at 30/6/09	   Var	as at 30/6/10	as at 30/6/11	as at 30/6/12		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
4,985		Cash and Cash Equivalents	6,559	6,559	-	6,559	6,559	6,559		
72,381		Receivables	147,534	111,391	-24	109,517	108,382	109,014		
77,366		Total Current Assets	154,093	117,950	-23	116,076	114,941	115,573		
		Non Current Assets								
0		Property, Plant and Equipment	0	20,400	#	41,400	63,000	85,300		
0		Total Non Current Assets	0	20,400	#	41,400	63,000	85,300		
77,366		TOTAL ASSETS	154,093	138,350	-10	157,476	177,941	200,873		
		Current Liabilities								
64,101		Payables	136,980	100,966	-26	99,221	98,215	98,976		
13,265		Other	11,313	11,184	-1	11,055	10,926	10,797		
77,366		Total Current Liabilities	148,293	112,150	-24	110,276	109,141	109,773		
		Non Current Liabilities								
0		Payables	5,800	5,800	-	5,800	5,800	5,800		
0		Total Non Current Liabilities	5,800	5,800	-	5,800	5,800	5,800		
77,366		TOTAL LIABILITIES	154,093	117,950	-23	116,076	114,941	115,573		
0		NET ASSETS	0	20,400	#	41,400	63,000	85,300		
		REPRESENTED BY FUNDS EMPLOYED								
0		Accumulated Funds	0	20,400	#	41,400	63,000	85,300		
0		TOTAL FUNDS EMPLOYED	0	20,400	#	41,400	63,000	85,300		

Department of Treasury	
Budgeted Statement of Cashflows on Behalf of the Territory	
  2007-08			  2007-08	   2008-09		  2009-10	  2010-11	  2011-12		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
35,800		Cash from Government for EBT	36,174	37,041	2	37,055	37,347	37,571		
818,886		Taxes, Fees and Fines	920,725	973,342	6	979,504	1,018,483	1,065,965		
9,176		User Charges	0	0	-	0	0	0		
21		Interest Received	21	21	-	21	21	21		
893,036		Grants Received from the Commonwealth	913,474	980,016	7	1,026,878	1,074,682	1,124,770		
14,583		Other Revenue	14,683	15,689	7	16,604	17,302	18,043		
145,409		Dividends	229,037	140,209	-39	131,123	125,423	123,655		
1,916,911		Operating Receipts	2,114,114	2,146,318	2	2,191,185	2,273,258	2,370,025		
		Payments								
10,051		Related to Supplies and Services	9,685	10,158	5	9,970	10,055	10,067		
24,756		Grants and Purchased Services	26,287	26,663	1	26,865	27,072	27,284		
580		Other	580	580	-	580	580	580		
1,881,506		Territory Receipts to Government	2,077,562	2,108,917	2	2,153,770	2,235,551	2,332,094		
1,916,893		Operating Payments	2,114,114	2,146,318	2	2,191,185	2,273,258	2,370,025		
18		NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	0	0	-	0	0	0		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Payments								
0		Purchase of Property, Plant and Equipment	0	20,400	#	21,000	21,600	22,300		
0		Investing Payments	0	20,400	#	21,000	21,600	22,300		
0		NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES	0	-20,400	#	-21,000	-21,600	-22,300		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Receipts								
0		Capital Injection from Government	0	20,400	#	21,000	21,600	22,300		
0		Financing Receipts	0	20,400	#	21,000	21,600	22,300		
0		NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES	0	20,400	#	21,000	21,600	22,300		
18		NET INCREASE/(DECREASE) IN CASH HELD	0	0	-	0	0	0		
4,967		CASH AT BEGINNING OF REPORTING PERIOD	6,559	6,559	-	6,559	6,559	6,559		
4,985		CASH AT THE END OF THE REPORTING PERIOD	6,559	6,559	-	6,559	6,559	6,559		

Department of Treasury	
Statement of Changes in Equity on Behalf of the Territory	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/08			as at 30/6/08	as at 30/6/09	   Var	as at 30/6/10	as at 30/6/11	as at 30/6/12		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
0		Opening Balance	0	0	-	20,400	41,400	63,000		
		Accumulated Funds								
0		Operating Result for the Period	0	0	-	0	0	0		
		Reserves								
0		Capital Injections	0	20,400	#	21,000	21,600	22,300		
0		Closing Balance	0	20,400	#	41,400	63,000	85,300		
Notes to the Budget Statements
Treasury’s territorial financial statements include taxes, fees and fines collected on behalf of the Territory.  A detailed explanation of the movement in taxes, fees and fines is provided in Budget Paper 3-Revenue and Forward Estimates.  
Significant variations are as follows:
Statement of Income and Expenses on Behalf of the Territory
•	taxes, fees and fines:
–	the increase of $138.149 million in the 2007‑08 estimated outcome from the original budget reflects several large transactions for commercial conveyances and shares and marketable securities, as well as a greater volume of transactions and higher average values for residential conveyances.  Higher revenue from income tax equivalent also contributed to this increase; and
–	the decrease of $21.166 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is a result of the following factors: 
•	the decrease in income tax equivalent revenue ($33.578 million) which is mainly due to a number of one‑off significant land sales in 2007‑08 which are not expected to be experienced in 2008‑09; and
•	lower revenue forecast in 2008‑09, following high levels in 2007‑08 in commercial conveyances revenue ($15.237 million), transfer of shares and marketable securities ($14.091 million), and leases ($2.462 million); 
partially offset by: 
•	the expected growth of the payroll tax base ($11.619 million);
•	increases in general rates ($10.416 million) and fire and emergency services levy ($1.543 million); 
•	increases in land tax ($10.977 million);
•	increases in residential conveyance ($3.858 million); 
•	increases in the revenue from the energy industry levy ($1.862 million); 
•	increases in general insurances ($1.493 million); and
•	increases in transfers of motor vehicle registrations ($1.133 million).
•	grants from the Commonwealth:  
–	the increase of $20.438 million in the 2007‑08 estimated outcome from the original budget is due to increases in the GST Revenue Grant ($20.1 million) and the Finance Assistance to Local Government Functions Grant ($0.372 million); and
–	the increase of $66.542 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is due to increases in the GST Revenue Grant ($64.7 million), Finance Assistance to Local Government Functions Grant ($1.203 million) and the ACT National Capital Influences Grant ($0.455 million).
•	dividend revenue:  
–	the increase of $81.817 million in the 2007‑08 estimated outcome from the original budget is largely due to the increase in dividends from the Land Development Agency; and 
–	the decrease of $84.836 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is due to lower dividend revenue from the Land Development Agency ($91.841 million), partially offset by anticipated increases in dividend revenue from ACTEW ($5.404 million) and General Government Sector ($1.574 million).
•	transfer expenses:  the increase of $239.713 million in the 2007‑08 estimated outcome from the original budget and the decrease of $38.701 million in the 2008‑09 Budget from the 2007‑08 estimated outcome results from transferring revenue received for taxes, fees and fines, Commonwealth grants, and dividends to the Territory Banking Account.
Statement of Assets and Liabilities on Behalf of the Territory
•	cash and cash equivalents:  the increase of $1.574 million in the 2007‑08 estimated outcome from the original budget is due to reassessment of cash following the 2006‑07 audited outcome.
•	current receivables:  the increase of $75.153 million in the 2007‑08 estimated outcome from the original budget and the decrease of $36.143 million in the 2008‑09 Budget from the 2007‑08 estimated outcome largely reflects changes to estimates at year end for dividends, income tax equivalents and tax accruals.
•	property, plant and equipment:  the increase of $20.4 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is due to land held under the ‘Land for Rent Scheme’ which commences in 2008‑09.
•	payables:  the increase of $72.879 million in the 2007‑08 estimated outcome from the original budget and the decrease of $36.014 million in the 2008‑09 Budget from the 2007‑08 estimated outcome mainly relates to the accrued transfer of revenue to the Territory Banking Account.
•	other current liabilities:  the decrease of $1.952 million in the 2007‑08 estimated outcome from the original budget is due to a reassessment of the provision for refund of taxes.
•	non-current liabilities:  the increase of $5.8 million in the 2007‑08 estimated outcome from the original budget relates to a repayment of GST deferral compensation owed to the Commonwealth Government.