3.	2004‑05 ESTIMATED OUTCOME
This chapter provides information on the estimated outcome for 2004‑05.  Projected 2004‑05 financial statements have been provided for the general government sector, public trading enterprises and for the whole of the Territory.
General Government Sector
The estimated operating result for the General Government Sector (GGS) for 2004‑05 is a surplus of $52.2m.  This represents a $50m improvement compared to the original 2004‑05 budgeted operating surplus of $2.2m.
Table 3.1
2004‑05 Estimated Outcome
 	2004‑05	2004‑05	Variation	
	Original	Estimated			
	Budget	Outcome			
 	$m	$m	$m	%	
					
Revenue	2 592.0	2 720.3	 128.3	5.0%	
Expenses	2 589.7	2 667.8	 78.2	3.0%	
					
Operating Result from Ordinary Activities	 2.3	 52.5	 50.2	                #	
					
Extraordinary Expense	 0.1	 0.4	 0.2	243.1%	
					
Operating Result	 2.2	 52.2	 50.0	#	
 	 	 	 	 	
Note: Tables may not add due to rounding
Movement in the Estimated Outcome
In November 2004, the Government forecast an operating result of $20.9m in the Pre‑Election Update and September Quarterly Management Report.  The paper provided an update to the General Government Sector operating result which included positive revisions to Commonwealth Grants revenue (GST Grants), offset by expenditure associated with child protection (as per the amendment to the 2004‑2005 Appropriation Bill), enterprise bargaining agreements and the roll‑over from 2003‑04 of expenditure relating to the Commercialisation Investment Fund.  
In February 2005, the Government released the Budget Mid‑Year Review.  The paper provided revised estimated outcome for the general government sector of $47.6m.
A summary of the movements between the 2004‑05 budget as originally published and the 2004‑05 estimated outcome is presented in Table 3.2.

Table 3.2
Movement in the 2004‑05 Outcome
 	 	2004‑05
$m	
GGS Operating Result - 2004‑05 Budget Papers	7.9	
			
(a)	Commitment to Child Protection	-5.7	
			
GGS Operating Result - 2004‑05 Budget Papers	2.2	
			
(b)	Wage Negotiations	-6.4	
(c)	Net Commonwealth Grants – GST Revenue	24.9	
(d)	Superannuation Investments	2.6	
(e)	Superannuation – Actuarial Review Reserve	2.3	
(f)	Taxes, Fees and Fines	4.0	
(g)	Interest Revenue	2.9	
(h)	Commercialisation Investment Fund	-10.0	
	Other	-1.5	
Impact	18.6	
			
GGS Operating Result – Pre-Election Update and September Quarterly Report	20.9	
			
(d)	Superannuation Investments	58.0	
(i)	Land Revenue	7.0	
(i)	Land Revenue – Audit Adjustment	17.9	
(c)	Net Commonwealth Grants – GST Revenue	-1.9	
(c)	Net Commonwealth Grants – National Competition Payments	1.2	
(f)	Taxes, Fees and Fines	-3.6	
(g)	Interest Revenue	2.6	
(j)	Appropriation Act 2004-2005 (No.2)	-25.4	
(e)	Superannuation – Liabilities	-15.8	
(k)	Public Trading Enterprise Dividends	-4.4	
(l)	Insurance	-6.5	
	Other	-1.9	
Impact	26.7	
			
GGS Operating Result - Budget Mid-Year Review	47.6	
			
(i)	Land Revenue	-9.6	
(c)	Net Commonwealth Grants – GST Revenue	1.4	
(f)	Taxes, Fees and Fines	-5.2	
(k)	Dividends from Public Trading Enterprise Sector	0.8	
(l)	Insurance	-9.9	
(g)	Interest Revenue	-2.4	
(m)	Deferred Expenditure	17.2	
	Other	12.2	
Impact	4.6	
			
GGS Operating Result - 2004‑05 Estimated Outcome	52.2	
GGS – General Government Sector
Note: Figures may not add due to rounding
Factors Influencing the 2004‑05 Estimated Outcome
(a)	Commitment to Child Protection
The Appropriation Bill 2004‑2005 was amended after presentation of the bill to provide additional funding to the Office for Children, Youth and Family Support, for the implementation and delivery of improvements to child protection services recommended within The Territory as Parent – Review of the Safety of Children in Care in the ACT and of ACT Child Protection Management (Vardon Report).
(b)	Wage Negotiations
The adjustments include the impact of finalised wage negotiations above original estimates provided for in the 2004‑05 Budget.  The adjustments include upward revisions for negotiations relating to Teachers, Nurses, Clerical, Firefighters and Bus Drivers. 
(c)	Net Commonwealth Grants Revenue
The increase in the Commonwealth grants revenue reflects the impact of increased Goods and Services Tax (GST) revenue of $24.4m and National Competition Payments of $1.2m.  
The increase in GST revenue represents the net impact of revised revenue pool estimates; the introduction of deferral compensation payments following the Commonwealth Government’s decision to allow small businesses to lodge GST Business Activity Statements annually, rather than quarterly; and revised population estimates.
(d)	Superannuation Investment Returns
The 2004‑05 estimated outcome for the Territory’s return on superannuation investments is a net increase of $60.6m.  The breakdown of this return is in the table below.  The improvement in investment returns on superannuation assets reflects both the impact of improved investment returns in 2003‑04, and the subsequent larger balance of investment funds invested; and the strong 2004‑05 year‑to‑date returns on domestic equity held within the SPA.  

Table 3.3
Superannuation Investment Returns
 	 	2004‑05	 	2004‑05	 	 	 	
 		Budget	 	Estimated
Outcome	 	Variance	 	
 	 	$m	 	$m	 	$m	 	
 	 	 	 	 	 	 	 	
 	Investment Increments - revenue	 61.4	 	 121.9	 	 60.4	 	
 	Dividends and Interest	 17.4	 	 17.5	 	 0.2	 	
 	Fees	 3.0	 	 3.0	 	 0.0	 	
 		 	 	 	 	 	 	
 	Total	 75.8	 	 136.4	 	 60.6	 	

(e)	Superannuation Actuarial Review and Reserve
This adjustment reflects both the impact of a change in the superannuation policy regarding the treatment of actuarial gains and losses and an increase in superannuation expenses following the annual actuarial review of employee superannuation liabilities completed in December 2004.
The Government has provided an explanation for the change in accounting policy within the September Quarterly Management Report and the Budget Mid‑Year Review.  The increase in superannuation expenses reflects an increase in emerging costs (benefits paid by ComSuper) following ComSuper’s identification of additional pension recipients, for which the ACT is liable.
(f)	Taxes, Fees and Fines
The reduction in taxation revenue from the 2004‑05 Budget to the 2004‑05 estimated outcome is attributable to a reduction in:
•	conveyancing duties of $16m due to a lower estimate of residential property transactions and a strong take‑up of the Home Buyer Concession Scheme.
This decrease was offset by higher than expected:
•	payroll tax of $7.7m; 
•	duty on the transfer of shares and marketable securities of $3.2m; and
•	general rates of $1.6m.
(g)	Interest Revenue
The adjustment reflects an increase in Territory unencumbered cash balances at the end of 2003‑04 and revised Territory unencumbered cash balances in 2004‑05.
(h)	Commercialisation Investment Fund
This represents expenditure on the Commercialisation Investment Fund which was deferred from 2003‑04 to 2004‑05.  Appropriation was provided for in Appropriation Act 2003‑2004 (No.3) to establish an ACT focused venture capital fund.  
(i)	Land Revenue
The adjustment to land revenue reflects both a reduction in net land revenue for 2004‑05 of $2.6m and the flow‑on effect of an adjustment made during the audit of the 2003‑04 financial statements of $17.9m.  While the revenue from the $17.9m adjustment is accrued in 2004‑05 it relates to activity that occurred in 2003‑04.
(j)	Appropriation Act 2004-2005 (No.2)
The appropriation provided funding for a number of Election Commitments commencing in 2004‑05, for a number of Enterprise Bargaining Agreements which were finalised after the delivery of the 2004‑05 Budget, to address specific recommendations resulting from the Vardon Report, for recent amendments to the Asbestos law reform and funding for ACTION to address benchmark targets.
(k)	 Dividends from the Public Trading Enterprise Sector
The decrease in dividends in the 2004‑05 estimated outcome is mainly due to decreased dividends from ACTEW of $5.985m offset by increased dividends from ACTTAB of $2.431m.  The reduction in dividend from ACTEW largely reflects a decrease in water sales, as a result of water restrictions, and gifted assets, offset by lower tax expense, higher joint venture income and sewerage revenue.
(l)	Insurance 
The impact of insurance reflects both an increase in insurance expense for medical malpractice and public liability claims and lower then previously anticipated bushfire reinsurance payments, offset by a reduction in the recovery of public liability claims relating to the January 2003 bushfire.
(m)	 Deferred Expenditure
This adjustment represents the deferral of budgeted expenditure from 2004‑05 to 2005‑06.  This includes deferred expenditure from the restructure fund of $3m and ACT Health deferred grants relating to the Sub Acute Service and Canberra Medical School.

Summary of Revenue and Expenses
The following graph compares the original budget to the estimated outcome for 2004‑05 for major revenue and expense items.
Figure 3.2 
Revenue and Expenses

Table 3.4
General Government Sector 
2004‑05 Forecast Operating Statement
	  2004‑05	  2004‑05	
	   Budget	Est.Outcome	
	   $'000	   $'000	
Income			
Revenue			
Taxes Fees and Fines	840  174	835  417	
User Charges - Non ACT Government	180  184	200  800	
User Charges - ACT Government	17  002	12  550	
Grants from the Commonwealth	1  067  193	1  103  222	
Interest	74  359	78  138	
Dividend Revenue	96  721	93  149	
Other Revenue	314  729	396  035	
Total Revenue	2  590  362	2  719  311	
Gains			
Total Gains	0	0	
Total Income	2  590  362	2  719  311	
Expenses			
Employee Expenses	889  587	935  516	
Superannuation Expenses	271  600	286  067	
Supplies and Services	584  625	578  358	
Depreciation and Amortisation	162  489	164  007	
Borrowing Costs	45  574	46  820	
Cost of Goods Sold	38  256	27  518	
Grants and Purchased Services	460  801	486  907	
Other Expenses	95  807	112  187	
Transfer Expenses	40  932	30  375	
Total Ordinary Expenses	2  589  671	2  667  755	
Share of Operating Result from Joint Venture accounted for using the Equity Method	1  600	968	
Operating Result From Ordinary Activities	2  291	52  524	
Extraordinary Expense	102	350	
Operating Result	2  189	52  174	

Table 3.5
General Government Sector
2004‑05 Forecast Balance Sheet
	2004‑05	    Budget	Est. Outcome	
	Audited Opening	as at 30/6/05	as at 30/6/05	
	Balance			
	    $'000	   $'000	   $'000	
Current Assets				
Cash	63  987	56  520	76  909	
Receivables	193  308	181  678	212  636	
Investments	813  932	569  604	637  857	
Inventories	34  949	79  679	39  412	
Capital Works in Progress	3  110	0	44	
Other	23  948	12  514	44  205	
Total Current Assets	1  133  234	899  995	1  011  063	
Non Current Assets				
Receivables	374  856	406  661	362  427	
Investments	1  448  243	1  501  280	1  666  338	
Inventories	16  326	127  975	72  304	
Property, Plant and Equipment	5  787  934	6  000  894	5  861  037	
Intangibles	19  853	19  019	26  556	
Capital Works in Progress	67  040	136  181	101  753	
Other	60  852	14  976	37  588	
Total Non Current Assets	7  775  104	8  206  986	8  128  003	
TOTAL ASSETS	8  908  338	9  106  981	9  139  066	
Current Liabilities				
Payables	141  851	118  043	129  395	
Interest Bearing Liabilities	66  847	21  559	37  453	
Finance Leases	33  824	38  165	44  137	
Employee Benefits	178  446	161  007	186  150	
Other Provisions	1  495	983	6  772	
Other	32  476	56  935	27  374	
Total Current Liabilities	454  939	396  692	431  281	
Non Current Liabilities				
Payables	122  797	102  433	109  986	
Interest Bearing Liabilities	645  513	656  472	663  437	
Finance Leases	48  755	49  917	70  013	
Employee Benefits	2  160  027	2  242  458	2  565  992	
Other Provisions	12  119	3  900	6  851	
Other	253	115	121	
Total Non Current Liabilities	2  989  464	3  055  295	3  416  400	
TOTAL LIABILITIES	3  444  403	3  451  987	3  847  681	
NET ASSETS	5  463  934	5  654  994	5  291  384	
REPRESENTED BY FUNDS EMPLOYED				
Accumulated Funds	4  749  480	4  867  096	4  617  852	
Reserves	714  454	787  896	673  532	
TOTAL FUNDS EMPLOYED	5  463  934	5  654  994	5  291  384	

Table 3.6
General Government Sector
2004‑05 Forecast Statement of Changes in Equity
	2004‑05	    Budget	Est. Outcome	
	Audited Opening	as at 30/6/05	as at 30/6/05	
	Balance			
	    $'000	   $'000	   $'000	
Opening Balance	5  198  744	5  717  871	5  463  934	
Accumulated Funds				
Net Effect of Change in Accounting Policy	-252	0	-215  777	
Operating Result for the Period	70  455	2  189	52  174	
Reserves				
Increase/(Decrease) in asset revaluation reserve	193  212	0	-1  149	
Increase/(Decrease) in other reserves	-2  183	-65  068	-39  772	
Transfer to/from Reserves	4  013	0	40  921	
Total Income And Expense For The Period	265  245	-62  879	-163  603	
Transactions Involving Equity Holders Affecting Accumulated Funds				
Capital Injections	0	0	-8  945	
Inc/Dec in Net Assets due to Admin Restructure	-55	0	0	
Closing Balance	5  463  934	5  654  994	5  291  384	

Table 3.7
General Government Sector
2004‑05 Forecast Cash Flow Statement
	  2004‑05	  2004‑05	
	   Budget	Est.Outcome	
	   $'000	   $'000	
CASH FLOWS FROM OPERATING ACTIVITIES			
Receipts			
Taxes, Fees and Fines	840  536	835  281	
User Charges	195  429	217  239	
Interest Received	73  366	77  006	
Grants Received from the Commonwealth	1  076  218	1  114  575	
Other Revenue	381  787	410  755	
Operating Receipts	2  567  336	2  654  856	
Payments			
Related to Employees	947  485	1  020  664	
Related to Supplies and Services	575  124	572  086	
Borrowing Costs	45  297	46  549	
Grants and Purchased Services	465  841	493  985	
Other	342  399	373  160	
Payments to PTE Agencies for Outputs	29  987	29  845	
Extraordinary Payments	102	350	
Operating Payments	2  406  235	2  536  639	
NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	161  101	118  217	
CASH FLOWS FROM INVESTING ACTIVITIES			
Receipts			
Proceeds from Sale of Property, Plant & Equipment	4  639	1  030	
Proceeds from Sale/Maturities of Investments	16  833	6  955	
Repayment of Advance	6  160	5  767	
Repayment of Home Loan Principal	2  852	2  454	
Dividends	77  647	75  272	
Investing Receipts	108  131	91  478	
Payments			
Purchase of Property, Plant and Equipment	292  798	210  341	
Purchase of Land and Intangibles	6  427	6  637	
Purchase of Investments	110  389	117  761	
Advances Issued to Government Agencies	24  768	24  768	
Capital Payments to Government Agencies	8  945	8  945	
Investing Payments	443  327	368  452	
NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES	-335  196	-276  974	
CASH FLOWS FROM FINANCING ACTIVITIES			
Receipts			
Borrowings Received	16  383	36  686	
Finance Lease	29  920	0	
Financing Receipts	46  303	36  686	
Payments			
Repayment of Borrowings	2  620	18  704	
Repayment of Finance Lease	46  431	16  890	
Repayment of Investments to Agencies (CFU only)	12  605	23  812	
Financing Payments	61  656	59  406	
NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES	-15  353	-22  720	
NET INCREASE/(DECREASE) IN CASH HELD	-189  448	-181  477	
CASH AT BEGINNING OF REPORTING PERIOD	788  438	860  439	
CASH AT THE END OF THE REPORTING PERIOD	598  990	678  962	

Note: 	Cash on the cash flow statement may not equal cash at bank on the balance sheet due to several agencies reporting cash as investments on the Balance Sheet.

Reconciliation of Cash:

Cash	   76 909
Plus Liquid Investments	 602 053
Cash at the end of the reporting period	 678 962

Public Trading Enterprise Sector
The consolidated public trading enterprise sector result after tax for 2004‑05 is expected to be a surplus of $47.5m.  This is a 21.8% reduction from the original budget outcome of $60.7m.
Table 3.8
2004‑05 Estimated Outcome
 	2004‑05	2004‑05	Variation	
	Original	Estimated			
	Budget	Outcome			
 	$m	$m	$m	%	
					
Revenue	 450.4	 435.6	- 14.8	-3.3%	
Expenses	 375.9	 375.5	- 0.4	..	
					
Operating Result from Ordinary Activities	 74.5	 60.1	- 14.4	-19.3%	
					
Income Tax Equivalent	 13.8	 12.6	- 1.2	-8.5%	
					
Operating Results	 60.7	 47.5	- 13.3	-21.8%	

Note: Tables may not add due to rounding
Factors Influencing the Operating Result
ACTEW Corporation Operating Result
ACTEW’s estimated operating result reduced by $6.8m reflecting a decrease in water sales, as a result of water restrictions, and gifted assets, offset by lower tax expense, higher joint venture income and sewerage revenue.  
Housing ACT
Housing ACT’s estimated operating result improved by $4.2m.  This reflected a $3.2m net deferral of grants to non‑government organisations for community housing and community service projects, and a decrease of $1.9m in depreciation expense following the re‑assessment of the useful lives of public housing properties.  
Other Factors
A change in the treatment of capital injections to the PTE sector has reduced the operating result of the sector by $8.9m.  The consolidated 2004‑05 Budget financial statements treated capital injections from the General Government Sector (GGS) as revenue of the PTE sector.  In calculating the estimated outcome for 2004‑05 capital injections were not reflected on the operating statement and thus directly affect the operating result of the sector.  This change is in accordance with the requirements outlined in Urgent Issues Group (UIG) 38 ‘Contributions by Owners Made to Wholly‑Owned Public Sector Entities’.

Table 3.9
Public Trading Enterprise Sector
2004‑05 Forecast Operating Statement
	  2004‑05	  2004‑05	
	   Budget	Est.Outcome	
	   $'000	   $'000	
Income			
Revenue			
Government Payment for Outputs	40  932	30  375	
User Charges - Non ACT Government	233  009	229  967	
User Charges - ACT Government	77  554	83  561	
Grants from the Commonwealth	18  733	18  691	
Interest	4  442	6  034	
Other Revenue	28  720	17  189	
Resources Received free of charge	50	50	
Total Revenue	403  440	385  867	
Gains			
Total Gains	0	0	
Total Income	403  440	385  867	
Expenses			
Employee Expenses	74  650	77  371	
Superannuation Expenses	9  350	9  664	
Supplies and Services	91  843	92  117	
Depreciation and Amortisation	43  654	41  001	
Borrowing Costs	29  803	29  837	
Cost of Goods Sold	71  903	72  907	
Grants and Purchased Services	10  882	7  650	
Other Expenses	25  063	26  365	
Transfer Expenses	18  733	18  591	
Total Ordinary Expenses	375  881	375  503	
Share of Operating Result from Joint Venture accounted for using the Equity Method	46  961	49  740	
Operating Result From Ordinary Activities	74  520	60  104	
Income Tax Equivalent	13  788	12  622	
Operating Result	60  732	47  482	
 
Table 3.10
Public Trading Enterprise Sector
2004‑05 Forecast Balance Sheet
	2004‑05	    Budget	Est. Outcome	
	Audited Opening	as at 30/6/05	as at 30/6/05	
	Balance			
	    $'000	   $'000	   $'000	
Current Assets				
Cash	23  773	14  665	17  753	
Receivables	42  441	56  759	30  877	
Investments	94  525	32  433	53  809	
Inventories	110	95	113	
Other	10  600	10  088	10  332	
Total Current Assets	171  449	114  040	112  884	
Non Current Assets				
Receivables	35  460	500	35  460	
Investments	366  171	348  558	351  925	
Property, Plant and Equipment	3  811  889	3  831  065	4  043  675	
Intangibles	996	709	600	
Capital Works in Progress	72  845	19  085	33  950	
Tax Assets	13  560	12  585	13  560	
Other	43  659	44  001	43  859	
Total Non Current Assets	4  344  580	4  256  503	4  523  029	
TOTAL ASSETS	4  516  029	4  370  543	4  635  913	
Current Liabilities				
Payables	48  329	26  197	39  877	
Interest Bearing Liabilities	12  664	15  945	19  618	
Finance Leases	1  087	599	731	
Employee Benefits	16  918	17  303	17  015	
Other Provisions	1  928	23  825	19  277	
Income Tax Payable	7  842	752	5  074	
Other	6  941	2  200	5  381	
Total Current Liabilities	95  709	86  821	106  973	
Non Current Liabilities				
Payables	903	841	903	
Interest Bearing Liabilities	461  804	467  471	465  868	
Finance Leases	2  104	1  505	2  203	
Employee Benefits	24  335	21  433	22  935	
Other Provisions	835	2  949	2  467	
Non Current Income Tax Payable	13  814	13  178	18  665	
Other	413	295	2  835	
Total Non Current Liabilities	504  208	507  672	515  876	
TOTAL LIABILITIES	599  917	594  493	622  849	
NET ASSETS	3  916  112	3  776  050	4  013  064	
REPRESENTED BY FUNDS EMPLOYED				
Accumulated Funds	1  891  971	1  870  870	1  877  249	
Reserves	2  024  141	1  905  180	2  135  815	
TOTAL FUNDS EMPLOYED	3  916  112	3  776  050	4  013  064	

Table 3.11
Public Trading Enterprise Sector
2004‑05 Forecast Statement of Changes in Equity
		2004‑05	    Budget	Est. Outcome	
	Audited Opening	as at 30/6/05	as at 30/6/05	
	Balance			
	    $'000	   $'000	   $'000	
Opening Balance	3  433  215	3  678  364	3  916  112	
Accumulated Funds				
Net Effect of Change in Accounting Policy	-29	0	0	
Operating Result for the Period	39  753	60  732	47  482	
Reserves				
Increase/(Decrease) in asset revaluation reserve	412  136	111  675	111  674	
Transfer to/from Reserves	31  753	22  000	22  000	
Total Income And Expense For The Period	483  613	194  407	181  156	
Transactions Involving Equity Holders Affecting Accumulated Funds				
Capital Injections	0	0	8  945	
Inc/Dec in Net Assets due to Admin Restructure	57	0	0	
Dividend Approved	-773	-96  721	-93  149	
Closing Balance	3  916  112	3  776  050	4  013  064	

Table 3.12
Public Trading Enterprise Sector
2004‑05 Forecast Cash Flow Statement
 	  2004‑05	  2004‑05	
	   Budget	Est.Outcome	
	   $'000	   $'000	
CASH FLOWS FROM OPERATING ACTIVITIES			
Receipts			
Cash from Government for Outputs	29  987	29  845	
User Charges	313  401	317  105	
Interest Received	4  442	6  040	
Grants Received from the Commonwealth	18  733	18  691	
Other Revenue	59  610	67  119	
Extraordinary Receipts	500	0	
Operating Receipts	426  673	438  800	
Payments			
Related to Employees	83  158	86  023	
Related to Supplies and Services	94  140	99  922	
Borrowing Costs	29  791	29  852	
Grants and Purchased Services	10  882	7  650	
Other	110  310	116  025	
Territory Receipts to Government	18  733	18  591	
Operating Payments	347  014	358  063	
NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	79  659	80  737	
CASH FLOWS FROM INVESTING ACTIVITIES			
Receipts			
Proceeds from Sale of Property, Plant & Equipment	65  465	37  860	
Proceeds from Sale/Maturities of Investments	13  569	42  124	
Investing Receipts	79  034	79  984	
Payments			
Purchase of Property, Plant and Equipment	121  616	126  807	
Purchase of Investments	258	1  309	
Investing Payments	121  874	128  116	
NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES	-42  840	-48  132	
CASH FLOWS FROM FINANCING ACTIVITIES			
Receipts			
Capital Injection from Government	8  945	8  945	
Borrowings Received	24  798	25  030	
Financing Receipts	33  743	33  975	
Payments			
Dividends to Government	77  647	75  272	
Repayment of Borrowings	14  712	14  437	
Repayment of Finance Lease	1  008	929	
Financing Payments	93  367	90  638	
NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES	-59  624	-56  663	
NET INCREASE/(DECREASE) IN CASH HELD	-22  805	-24  058	
CASH AT BEGINNING OF REPORTING PERIOD	60  311	71  460	
CASH AT THE END OF THE REPORTING PERIOD	37  506	47  402	
Note: 	Cash on the cash flow statement may not equal cash at bank on the balance sheet due to several agencies reporting cash as investments on the Balance Sheet.

Reconciliation of Cash:

Cash	17 753
Plus Liquid Investments	29 649
Cash at the end of the reporting period	47 402

Total Territory
Operating Statement
The Territory operating surplus of $6.5m is a consolidation of the GGS surplus of $52.5m and the PTE surplus of $47.5m.  The difference is due to dividends that the PTE sector pays to the GGS, as these are eliminated from the whole of government result.  The Territory result is an improvement from the budgeted result of a $33.8m deficit.
Table 3.12
2004‑05 Estimated Outcome
 	2004‑05	2004‑05	Variation	
	Original	Estimated			
	Budget	Outcome			
 	$m	$m	$m	%	
					
Revenue	2 695.2	2 827.4	 132.1	4.9%	
Expenses	2 728.9	2 820.5	 91.6	3.4%	
					
Operating Result from Ordinary Activities	- 33.7	 6.9	 40.6	-120.3%	
					
Extraordinary Expense	 0.1	 0.4	 0.2	243.1%	
					
Operating Result	- 33.8	 6.5	 40.3	-119.3%	

Statement of Financial Position
Assets of the Territory are expected to total $13.340 billion by 30 June 2005.  This is an improvement on the audited opening position by $377.9m, and is a result of increased inventories and property, plant and equipment.  Liabilities of the Territory are expected to total $4.036 billion by 30 June 2005.  This is an increase of $453.5m, and is a result of increases in employee benefits and other provisions.  The net impact of these movements is a reduction in net assets of $76m to $9.304 billion for the Territory.

Table 3.13
Consolidated Total Territory
2004‑05 Forecast Operating Statement
	  2004‑05	  2004‑05	
	   Budget	Est.Outcome	
	   $'000	   $'000	
Income			
Revenue			
Taxes Fees and Fines	799  284	792  624	
User Charges - Non ACT Government	413  193	430  767	
Grants from the Commonwealth	1  067  193	1  103  322	
Interest	56  684	61  398	
Other Revenue	310  324	388  466	
Total Revenue	2  646  678	2  776  577	
Gains			
Total Gains	0	0	
Total Income	2  646  678	2  776  577	
Expenses			
Employee Expenses	959  855	1  008  254	
Superannuation Expenses	273  251	288  291	
Supplies and Services	655  531	652  010	
Depreciation and Amortisation	206  143	205  008	
Borrowing Costs	53  260	53  883	
Cost of Goods Sold	80  216	82  740	
Grants and Purchased Services	407  269	424  488	
Other Expenses	93  412	105  754	
Total Ordinary Expenses	2  728  937	2  820  428	
Share of Operating Result from Joint Venture accounted for using the Equity Method	48  561	50  708	
Operating Result From Ordinary Activities	-33  698	6  857	
Extraordinary Expense	102	350	
Operating Result	-33  800	6  507	

Table 3.14
Consolidated Total Territory
2004‑05 Forecast Balance Sheet
	2004‑05	    Budget	Est. Outcome	
	Audited Opening	as at 30/6/05	as at 30/6/05	
	Balance			
	    $'000	   $'000	   $'000	
Current Assets				
Cash	87  760	71  185	94  662	
Receivables	182  496	184  405	217  145	
Investments	861  957	593  142	668  978	
Inventories	35  059	79  774	39  525	
Capital Work in Progress	3  110	0	44	
Other	34  538	22  596	54  527	
Total Current Assets	1  204  920	951  102	1  074  881	
Non Current Assets				
Receivables	61  526	70  074	25  679	
Investments	1  814  394	1  849  818	2  018  243	
Inventories	16  326	127  975	72  304	
Property, Plant and Equipment	9  599  823	9  831  959	9  904  712	
Intangibles	20  849	19  728	27  156	
Capital Works in Progress	139  885	155  266	135  703	
Other	104  511	58  977	81  447	
Total Non Current Assets	11  757  314	12  113  797	12  265  244	
TOTAL ASSETS	12  962  234	13  064  899	13  340  125	
Current Liabilities				
Payables	165  135	124  872	147  790	
Interest Bearing Liabilities	29  059	17  020	23  604	
Finance Leases	34  911	38  764	44  868	
Employee Benefits	195  364	178  310	203  165	
Other Provisions	2  871	20  057	24  649	
Income Tax Payable	0	0	443	
Other	35  937	58  735	30  205	
Total Current Liabilities	463  277	437  758	474  724	
Non Current Liabilities				
Payables	77  561	82  309	91  692	
Interest Bearing Liabilities	792  507	791  216	795  843	
Finance Leases	50  859	51  422	72  216	
Employee Benefits	2  184  362	2  263  891	2  588  927	
Other Provisions	12  954	6  849	9  318	
Other	666	410	2  956	
Total Non Current Liabilities	3  118  909	3  196  097	3  560  952	
TOTAL LIABILITIES	3  582  186	3  633  855	4  035  676	
NET ASSETS	9  380  048	9  431  042	9  304  448	
REPRESENTED BY FUNDS EMPLOYED				
Accumulated Funds	6  641  449	6  737  966	6  495  101	
Reserves	2  738  598	2  693  076	2  809  347	
TOTAL FUNDS EMPLOYED	9  380  048	9  431  042	9  304  448	

Table 3.15
Consolidated Total Territory
2004‑05 Forecast Statement of Changes in Equity
	2004‑05	    Budget	Est. Outcome	
	Audited Opening	as at 30/6/05	as at 30/6/05	
	Balance			
	    $'000	   $'000	   $'000	
Opening Balance	8  631  960	9  396  235	9  380  048	
Accumulated Funds				
Net Effect of Change in Accounting Policy	-281	0	-215  777	
Operating Result for the Period	109  434	-33  800	6  507	
Reserves				
Increase/(Decrease) in asset revaluation reserve	605  351	111  675	110  525	
Increase/(Decrease) in other reserves	-2  183	-65  068	-39  772	
Transfer to/from Reserves	35  766	22  000	62  921	
Total Income And Expense For The Period	748  087	34  807	-75  596	
Transactions Involving Equity Holders Affecting Accumulated Funds				
Closing Balance	9  380  048	9  431  042	9  304  448	

Table 3.15
Consolidated Total Territory
2004‑05 Forecast Cash Flow Statement 
	  2004‑05	  2004‑05	
	   Budget	Est.Outcome	
	   $'000	   $'000	
CASH FLOWS FROM OPERATING ACTIVITIES			
Receipts			
Taxes, Fees and Fines	800  622	793  464	
User Charges	419  317	438  743	
Interest Received	55  692	60  268	
Grants Received from the Commonwealth	1  076  218	1  114  675	
Other Revenue	412  267	445  753	
Operating Receipts	2  764  116	2  852  903	
Payments			
Related to Employees	1  018  541	1  094  549	
Related to Supplies and Services	654  577	657  313	
Borrowing Costs	52  972	53  623	
Grants and Purchased Services	412  309	431  562	
Other	384  855	416  552	
Extraordinary Payments	102	350	
Operating Payments	2  523  356	2  653  949	
NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	240  760	198  954	
CASH FLOWS FROM INVESTING ACTIVITIES			
Receipts			
Proceeds from Sale of Property, Plant & Equipment	70  104	38  890	
Proceeds from Sale/Maturities of Investments	17  797	25  267	
Repayment of Home Loan Principal	2  852	2  454	
Investing Receipts	90  753	66  611	
Payments			
Purchase of Property, Plant and Equipment	414  414	337  148	
Purchase of Land and Intangibles	6  427	6  637	
Purchase of Investments	110  647	119  070	
Investing Payments	531  488	462  855	
NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES	-440  735	-396  244	
CASH FLOWS FROM FINANCING ACTIVITIES			
Receipts			
Borrowings Received	16  413	36  716	
Finance Lease	29  920	0	
Financing Receipts	46  333	36  716	
Payments			
Repayment of Borrowings	11  172	27  142	
Repayment of Finance Lease	47  439	17  819	
Financing Payments	58  611	44  961	
NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES	-12  278	-8  245	
NET INCREASE/(DECREASE) IN CASH HELD	-212  253	-205  535	
CASH AT BEGINNING OF REPORTING PERIOD	848  749	931  899	
CASH AT THE END OF THE REPORTING PERIOD	636  496	726  364	
Note: 	Cash on the cash flow statement may not equal cash at bank on the balance sheet due to several agencies reporting cash as investments on the Balance Sheet.

Reconciliation of Cash:

Cash	  94 662
Plus Liquid Investments	631 702
Cash at the end of the reporting period	726 364