HOME LOAN PORTFOLIO
Objectives
The Home Loan Portfolio is responsible for the administration of home loans, which were granted by the Commissioner for ACT Housing to assist low‑income households in achieving home ownership.  All ACT home buyer lending ceased in 1996.
The Portfolio’s objective is to administer the remaining home loans effectively and efficiently. 
2006‑07 Priorities
Strategic and operational issues to be pursued in 2006‑07 include:
•	reviewing all unsecured loans; and 
•	enhancing reporting of insurance coverage for all home loans. 
Output Class 1 – Home Loan Portfolio
	Total Cost	
	2005‑06
Est. Outcome
 $’000	2006‑07
Budget
$’000	
Output Class 1: Home Loan Portfolio	4,877	4,785	
Output 1.1: Home Loan Portfolio	4,877	4,785	
Output Description
This output provides for the administration of the Home Loan Portfolio in line with the loan and deferment agreements between the Commissioner for ACT Housing and the borrowers.
In 2006‑07 the Home Loan Portfolio will:
•	manage between 453 (2005‑06 estimated outcome) and 366 (projection at 30 June 2007) loans; and
•	comply with the Australian Government’s loan repayment schedule.
Accountability Indicators
	2005‑06
Targets	2005‑06
Est. Outcome	2006‑07
Target	
1.1: Home Loan Portfolio	
a.	Increase in net assets for the financial year. 1	>$2.5m	>$5.0m	-	
b.	Administration cost per home loan managed.2	$816	$837	$1,038	
Note
1.	Measure discontinued.
2.	The increase in the 2006‑07 target is a result of the reduction of outstanding loans while administrative expenditure remains fixed at 2005‑06 levels.

Home Loan Portfolio	
Operating Statement	
  2005-06			  2005-06	   2006-07		  2007-08	  2008-09	  2009-10		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
7,683		Interest	7,289	7,580	4	7,602	7,633	7,659		
0		Other Revenue	3,100	0	-100	0	0	0		
7,683		Total Revenue	10,389	7,580	-27	7,602	7,633	7,659		
		Gains								
0		Total Gains	0	0	-	0	0	0		
7,683		Total Income	10,389	7,580	-27	7,602	7,633	7,659		
		Expenses								
137		Employee Expenses	134	138	3	141	145	149		
19		Superannuation Expenses	19	19	-	20	20	21		
245		Supplies and Services	226	222	-2	223	225	229		
4,498		Borrowing Costs	4,498	4,406	-2	4,311	4,211	4,106		
4,899		Total Ordinary Expenses	4,877	4,785	-2	4,695	4,601	4,505		
2,784		Operating Result	5,512	2,795	-49	2,907	3,032	3,154		

Home Loan Portfolio	
Balance Sheet	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/06			as at 30/6/06	as at 30/6/07	   Var	as at 30/6/08	as at 30/6/09	as at 30/6/10		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
522		Cash	712	741	4	863	588	916		
1,221		Receivables	1,175	1,061	-10	952	868	802		
6,500		Investments	6,500	6,500	-	6,500	6,500	6,500		
8,243		Total Current Assets	8,387	8,302	-1	8,315	7,956	8,218		
		Non Current Assets								
9,506		Receivables	8,175	6,712	-18	5,438	4,326	3,352		
97,023		Investments	103,478	105,701	2	107,653	109,840	111,287		
106,529		Total Non Current Assets	111,653	112,413	..	113,091	114,166	114,639		
114,772		TOTAL ASSETS	120,040	120,715	..	121,406	122,122	122,857		
		Current Liabilities								
21		Payables	19	19	-	19	19	19		
2,124		Interest Bearing Liabilities	2,124	2,220	5	2,320	2,424	2,533		
43		Employee Benefits	26	27	4	28	30	31		
2,188		Total Current Liabilities	2,169	2,266	4	2,367	2,473	2,583		
		Non Current Liabilities								
95,789		Interest Bearing Liabilities	95,789	93,569	-2	91,249	88,825	86,292		
54		Employee Benefits	53	56	6	59	61	65		
95,843		Total Non Current Liabilities	95,842	93,625	-2	91,308	88,886	86,357		
98,031		TOTAL LIABILITIES	98,011	95,891	-2	93,675	91,359	88,940		
16,741		NET ASSETS	22,029	24,824	13	27,731	30,763	33,917		
		REPRESENTED BY FUNDS EMPLOYED								
16,741		Accumulated Funds	22,029	24,824	13	27,731	30,763	33,917		
16,741		TOTAL FUNDS EMPLOYED	22,029	24,824	13	27,731	30,763	33,917		

Home Loan Portfolio	
Cash Flow Statement	
  2005-06			  2005-06	   2006-07		  2007-08	  2008-09	  2009-10		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
7,620		Interest Received	8,039	7,556	-6	7,600	7,630	7,658		
7,620		Operating Receipts	8,039	7,556	-6	7,600	7,630	7,658		
		Payments								
152		Related to Employees	150	153	2	157	161	165		
244		Related to Supplies and Services	221	223	1	223	225	230		
4,498		Borrowing Costs	4,498	4,406	-2	4,311	4,211	4,106		
4,894		Operating Payments	4,869	4,782	-2	4,691	4,597	4,501		
2,726		NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	3,170	2,774	-12	2,909	3,033	3,157		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Receipts								
2,117		Repayment of Home Loan Principal	1,860	1,602	-14	1,384	1,199	1,042		
2,117		Investing Receipts	1,860	1,602	-14	1,384	1,199	1,042		
		Payments								
3,084		Purchase of Investments	3,527	2,223	-37	1,951	2,187	1,447		
3,084		Investing Payments	3,527	2,223	-37	1,951	2,187	1,447		
-967		NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES	-1,667	-621	63	-567	-988	-405		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Payments								
2,033		Repayment of Borrowings	2,033	2,124	4	2,220	2,320	2,424		
2,033		Financing Payments	2,033	2,124	4	2,220	2,320	2,424		
-2,033		NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES	-2,033	-2,124	-4	-2,220	-2,320	-2,424		
-274		NET INCREASE/(DECREASE) IN CASH HELD	-530	29	105	122	-275	328		
7,296		CASH AT BEGINNING OF REPORTING PERIOD	7,742	7,212	-7	7,241	7,363	7,088		
7,022		CASH AT THE END OF THE REPORTING PERIOD	7,212	7,241	..	7,363	7,088	7,416		

Home Loan Portfolio	
Statement of Changes in Equity	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/06			as at 30/6/06	as at 30/6/07	   Var	as at 30/6/08	as at 30/6/09	as at 30/6/10		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
13,957		Opening Balance	16,517	22,029	33	24,824	27,731	30,763		
		Accumulated Funds								
2,784		Operating Result for the Period	5,512	2,795	-49	2,907	3,032	3,154		
		Reserves								
2,784		Total Income And Expense For The Period	5,512	2,795	-49	2,907	3,032	3,154		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
16,741		Closing Balance	22,029	24,824	13	27,731	30,763	33,917		
Notes to Budget Statements
Significant variations are as follows:
Operating Statement 
•	interest:
•	the decrease of $0.394 million in the 2005‑06 estimated outcome from the original budget is primarily due to the lower number of outstanding loans and the lower interest rate for investments relative to expectations of the 2005‑06 Budget; and
•	the increase of $0.291 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to a projected higher interest rate for investments, which offsets the continuing decline of home loan interest revenue. 
•	other revenue:  the unbudgeted other revenue of $3.1 million in the 2005‑06 estimated outcome is due to the downward revision of the provision for doubtful debts from $12.5 million to $9.4 million as a result of the overall reduction of outstanding loans.
Balance Sheet
•	current receivables:  the decrease of $0.114 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to a reduction in outstanding loans and some anticipated early discharge by borrowers.
•	non-current receivables:
•	the decrease of $1.331 million in the 2005‑06 estimated outcome from the original budget is due to higher discharges than expected in the last quarter of 2004‑05; and 
•	the decrease of $1.463 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to expected early repayment of loans.
•	non-current investments:  
•	the increase of $6.455 million in the 2005‑06 estimated outcome from the original budget is due to the higher discharge of outstanding loan amounts than expected in the last quarter of 2004‑05; and
•	the increase of $2.223 million in the 2006‑07 Budget from the 2005‑06 estimated outcome reflects interest revenue expected from long‑term investments.
•	current and non-current interest bearing liabilities:  this represents the loan from the Australian Government, which is scheduled to be fully paid in 2040.
Cash Flow Statement
The major variances within the Cash Flow Statement are explained within the Operating Statement and Balance Sheet above.
Other significant variances are as follows:
•	repayment of home loan principal:
•	the decrease of $0.257 million in the 2005‑06 estimated outcome from the original budget reflects more deferred assistance than anticipated in the last quarter of 2004‑05; and
•	the decrease of $0.258 million in the 2006‑07 Budget from the 2005‑06 estimated outcome reflects the smaller balance of outstanding loans.