Housing ACT
Objectives
Housing ACT’s principal objective is to provide people in housing stress and social and financial disadvantage with safe, affordable and appropriate housing that responds to their individual circumstances and needs.
Housing ACT undertakes its activities in accordance with its Strategic Focus 2006‑08, which is based around the following five strategic themes:
•	improving outcomes for our clients;
•	engaging and involving our clients;
•	building better community partnerships;
•	serving and contributing to good governance; and
•	performing as a best practice organisation.
Through focussing on these themes, Housing ACT aims to improve linkages between programs and ensure that the emphasis on clients remains its highest priority thereby reducing poverty and exclusion for the most vulnerable in the community.
2006‑07 Priorities
Strategic and operational issues to be pursued in 2006‑07 include:
•	continuing to improve service delivery by better aligning resources to focus on tenant needs, and ensuring that tenancies are sustainable and that tenants are able to access community and other support services;
•	continuing to implement the public housing asset management strategy by rejuvenating or replacing public housing to better meet tenant needs, including rebuilding public housing in rural areas and commencing joint ventures for the redevelopment of multi-unit properties;
•	continuing to implement the Government’s response to the Raising our Voice tenant participation program; 
•	implementing the new housing information system;
•	implementing strategies in the Bilateral Agreement with the Australian Government as part of the Commonwealth-State Housing Agreement; and
•	enhancing the integration of disability, children, youth and families, therapy, multi‑cultural and community services.

Business and Corporate Strategies
In accordance with the Strategic Focus 2006‑08, Housing ACT will direct resources and develop strategies towards reducing homelessness and exclusion for the Territory’s most vulnerable people and thereby help to build a stronger and more cohesive community.
The outcomes of the Minister’s 2006 Housing Summit and consequential changes to the priorities and policies of Housing ACT will be implemented.  Increased participation by tenants and the community in policy development and service delivery will be supported and strengthened.  Housing ACT will continue to focus on the outcomes of the tenant satisfaction surveys and develop a communications strategy to better inform tenants and the community about Housing ACT’s services.
Housing ACT will continue to focus on better integrating services with other parts of the government and the community sector to improve service delivery that meets the needs of our clients.  This will be supported by strengthening skills and professionalism, encouraging work life balance and staff retention.
Housing ACT, as part of the Department of Disability, Housing and Community Services has a comprehensive governance framework which identifies the strategic risks, and reporting and accountability requirements.  Housing ACT will also improve accountability and reporting mechanisms by implementing the agreed recommendations from the Auditor General’s Performance Audit of Public Housing.  Other activities to strengthen accountability and reporting include the implementation of a new housing information system.
Estimated Employment Level
	2005‑06
Est. Outcome1	2006‑07
Budget	
Staffing (Headcount)	210	200	
Note:
1.	Excludes staff engaged under short-term contracts from employment agencies.

Output Classes
	Total Cost1	Government Payment for Outputs	
	2005‑06
Est. Outcome
($’000)	2006‑07
Budget
($’000)	2005‑06
Est. Outcome
($’000)	2006‑07
Budget
($’000)	
Output Class 1					
Social Housing Services	109,957	104,672	32,141	22,384	
1.1 Social Housing Services	109,957	104,672	32,141	22,384	
Note:
1.	Total cost includes depreciation and amortisation of $11.838 million in 2005‑06 and $12.239 million in 2006‑07.

Output Description
Provision and management of public housing tenancies and properties, and provision of support and resources to community housing providers.

Strategic Indicators
Strategic Indicator 1: 
Provision of housing to people experiencing homelessness
This indicator demonstrates the increased targeting of housing assistance to those with high and complex needs to ensure that priority applicants such as those that are homeless or housed in temporary accommodation or are at risk of becoming homeless through escaping domestic violence, facing eviction or exiting supported accommodation, are housed within a reasonable timeframes 

Strategic Indicator 2: 
The provision of housing enables tenants the opportunity to be part of a community

A key to successful housing outcomes for those within social housing is that the housing enables tenants to integrate effectively into the broader community through being able to readily access education and employment opportunities and assists them become part of the community.  By reducing concentrations of disadvantage, poverty and exclusion with its associated social problems and thereby avoiding social isolation, social housing assists build a safe, healthy and cohesive community.  

Accountability Indicators

	2005‑06
Targets	2005‑06
Est. Outcome	2006‑07 
Targets	
Output Class 1: Social Housing Services	
Output 1.1: Social Housing Services	
				
a.	Priority Allocations	90%	95%	96%	
Percentage of public housing allocations to priority and highest need applicants – the percentage of priority applicants housed is comprised of new applicants who are either on the priority EAC11 or EAC22 application categories and Category X3.	
b.	Number of properties managed
- Public housing properties
- Community housing properties	
11,179
288	
11,577
285	
11,272
295	
For the purposes of this indicator a property is defined as a unit of accommodation to which a tenancy agreement can be made as defined by the Australian Institute of Health and Welfare.  A tenancy unit is a way of counting the maximum number of distinct rentable units such as a house, townhouse, duplex, flat or boarding house.	
c.	Percentage of public housing tenants receiving rebates4	87%	86%	87%	
Eligible tenants are entitled to a rebate of rent such that the rent payable is no more than 25% of assessable household income.  Tenants not in receipt of a rebate pay market rent.  The indicator records the number of tenants in receipt of a rebate compared to the total number of tenants.	
d.	Annual number of client service visits conducted	10,640	11,000	10,450	
The number of current clients visited during the financial year is the combined total of 90 day and annual client service visits undertaken.	
e.	Overall satisfaction of tenants with the provision of public housing4	> 60%	65%	 65%	
Tenant satisfaction is measured biennially through the National Social Housing Survey and in the odd years through an internal survey.	
f.	Average cost per dwelling of public housing5	$9,739	$8,783	$8,883	
Total cost of public housing (excluding the direct grants to community service providers and to the community-housing sector) divided by the stock number.	
g.	Percentage of community housing tenants receiving rebates4	92%	94%	92%	
Eligible tenants are entitled to a rebate of rent such that the rent payable is no more than 25% of assessable household income.  Tenants not eligible for a rebate pay market rent.  The indicator records the number of tenants in receipt of a rebate compared to the total number of tenants.	
h.	Overall satisfaction of tenants with the provision of community housing4	77% 	73%	77%	
Tenant satisfaction is measured biennially through the National Community Housing Survey.	

Accountability Indicators cont.

	2005‑06
Targets	2005‑06
Est. Outcome	2006‑07 
Targets	
Output 1.1: Social Housing Services cont.	
				
i.	Percentage of routine vacant properties re-let within 28 days6	n/a	n/a	85%	
Upon vacancy, properties that are available for re-letting after undertaking cleaning and/or minor repairs and maintenance are included in the routine vacancy turnaround times.	
j.	Percentage of properties undergoing refurbishment re-let within agreed program milestones6	n/a	n/a	90%	
Upon vacancy, those properties not available for re-letting before substantial works to repair and maintain or upgrade the property are undertaken are included on the refurbishment vacant path prior to re-letting.	
k.	Percentage of tenant accounts  $500 in arrears on repayment agreements6	n/a	n/a	90%	
Tenants with debts exceeding $500 are required to enter into agreements to repay the arrears within a reasonable time either prior to an Order to repay the debt has been made by the Residential Tenancies Tribunal or in conjunction with an Order.  To maintain the sustainability of the tenancy and not create household stress, policy guidelines provide that the repayment of arrears and the rent payments are not to exceed 30% of total income.	
		
Notes:
1.	EAC 1 - Early Allocation Category 1 is assigned to those applicants in urgent need of housing such as those who are homeless, moving between various forms of temporary accommodation, those in extreme housing crisis or at risk of imminent homelessness including people escaping domestic violence, facing eviction or exiting supported accommodation.
2.	EAC 2 - Early Allocation Category 2 is assigned to those applicants for whom private rental accommodation is not a suitable or an accessible long term option, such as those facing barriers to private rental accommodation either through extreme affordability problems or with multiple and complex needs, including those with disabilities or severe medical problems.
3.	Category X - is assigned to applicants in special housing need arising directly from a state of emergency declared by the Chief Minister, such as occurred at the time of the January 2003 bushfire.
4.	‘Public housing’ relates to housing provided by Housing ACT and ‘community housing’ relates to housing provided by community organisations.
5.	The estimated cost at 30 June 2006 for the average cost per dwelling of public housing is significantly lower than the original target due to the lower costs for repairs and maintenance, rates, insurance and other administration costs included in supplies and services and significantly lower depreciation and amortisation costs and lower employee costs from delays in recruitment.  These variances are more fully explained in the variance explanations under the Operating Statement.
6.	New measure.

Changes to Appropriation
Changes to Appropriation - Departmental						
 	2005-06	2006-07	2007-08	2008-09	2009-10	
Government Payment for Outputs	Est. Outc.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
2005-06 Budget	30,035	29,703	30,000	30,288	30,288	
						
2006-07 Budget Policy Adjustments						
Helping Younger People with Disabilities in Residential Aged Care Services	 - 	 - 	 - 	 - 	10	
Efficiency Savings	 - 	(7,324)	(7,365)	(7,403)	(7,450)	
						
2006-07 Budget Technical Adjustments						
Revised Indexation Parameters	 - 	 - 	 - 	 - 	294	
CSHA Funding 	(277)	 - 	 - 	 - 	 - 	
Community Sector Indexation	 - 	5	6	13	45	
						
2006-07 Budget1	29,758	22,384	22,641	22,898	23,187	

Changes to Appropriation - Departmental						
 	2005-06	2006-07	2007-08	2008-09	2009-10	
Capital Injections	Est. Outc.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
2005-06 Budget1	5,580	5,000	5,000	5,000	5,000	
						
2006-07 Budget Policy Adjustments						
Helping Younger People with Disabilities in Residential Aged Care Services	 - 	288	660	 - 	 - 	
Investment in Public Housing	 - 	4,000	4,000	4,000	 - 	
						
2006-07 Budget Technical Adjustments						
Transfer of Intensive Care and Treatment Facility from DDHCS	175	1,485	 - 	 - 	 - 	
Rollover - Capital Works 	(580)	580	 - 	 - 	 - 	
						
2006-07 Budget	5,175	11,353	9,660	9,000	5,000	
 	 	 	 	 	 	
Note:
1.	These amounts primarily represent funding under the Commonwealth State Housing Agreement, comprising the grants from the Australian Government and the ACT matching required under the Agreement.

2006‑07 Capital Works Program
Departmental
 	Estimated
Total
Cost
$’000 	Estimated Expenditure Pre 2006‑07
$’000	2006‑07
Financing

$’000	2007-08
Financing

$’000	2008-09
Financing

$’000	Expected Completion Date	
							
Works in Progress							
Energy and Water Efficiency Initiatives	1,000	420	580	-	-	Oct 2006	
Intensive Care and Treatment Facility (Long 	Gully)1	1,660	175	1,485	-	-	Jun 2007	
							
Total Works in Progress	2,660	595	2,065	-	-		
							
Total Capital Works	2,660	595	2,065			 	
Note:
1.	This project was previously reported in the Department of Disability, Housing and Community Services chapter.

Commonwealth Grants
The major Commonwealth payments for which Housing ACT has responsibility are:
Name of Grant	Activities Funded by Grant	2006‑07
Estimate
$’000	
Commonwealth-State Housing Agreement, Block Grants	Public housing assistance initiatives, new rental stock and supplementation of public housing operations	18,962	
Young People with Disabilities	Contribution to reduce the number of younger people with disabilities living in residential aged care facilities	144	

Total
		
19,106	

Housing ACT	
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								
32,418		Government Payment for Outputs	32,141	22,384	-30	22,641	22,898	23,187		
61,921		User Charges - Non ACT Government	63,557	65,127	2	65,770	66,418	67,074		
104		User Charges - ACT Government	25	0	-100	0	0	0		
1,054		Interest	1,625	1,242	-24	1,299	1,263	1,212		
2,509		Other Revenue	3,983	6,063	52	2,509	2,509	2,509		
98,006		Total Revenue	101,331	94,816	-6	92,219	93,088	93,982		
		Gains								
0		Total Gains	0	0	-	0	0	0		
98,006		Total Income	101,331	94,816	-6	92,219	93,088	93,982		
		Expenses								
16,672		Employee Expenses	15,737	15,540	-1	15,612	16,076	16,454		
2,366		Superannuation Expenses	2,081	2,825	36	2,824	2,853	2,881		
66,929		Supplies and Services	62,446	61,063	-2	63,509	65,380	66,961		
13,025		Depreciation and Amortisation	11,838	12,239	3	13,042	14,233	15,028		
5,361		Borrowing Costs	5,361	5,165	-4	4,966	4,761	4,549		
8,815		Grants and Purchased Services	8,276	4,546	-45	1,234	1,330	1,464		
4,524		Other Expenses	4,218	3,294	-22	1,620	1,627	1,634		
117,692		Total Ordinary Expenses	109,957	104,672	-5	102,807	106,260	108,971		
0		Share of Operating Result from Joint Venture accounted for using the Equity Method	0	750	#	2,291	399	470		
-19,686		Operating Result	-8,626	-9,106	-6	-8,297	-12,773	-14,519		

Housing ACT	
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								
2,503		Cash	4,519	5,399	19	4,644	4,253	5,208		
2,942		Receivables	2,150	2,033	-5	1,912	1,787	1,658		
15,981		Investments	16,343	10,592	-35	10,513	11,199	10,535		
0		Assets Held for Sale	47,372	7,740	-84	8,048	8,370	8,706		
194		Other	189	189	-	189	189	189		
21,620		Total Current Assets	70,573	25,953	-63	25,306	25,798	26,296		
		Non Current Assets								
500		Receivables	500	500	-	500	500	500		
35,000		Investments	0	23,596	#	19,008	9,355	7,006		
3,120,882		Property, Plant and Equipment	3,072,316	3,309,563	8	3,552,042	3,809,874	4,088,362		
0		Intangibles	210	1,807	760	3,776	2,876	1,976		
10,316		Capital Works in Progress	16,185	15,174	-6	16,281	14,541	13,469		
3,166,698		Total Non Current Assets	3,089,211	3,350,640	8	3,591,607	3,837,146	4,111,313		
3,188,318		TOTAL ASSETS	3,159,784	3,376,593	7	3,616,913	3,862,944	4,137,609		
		Current Liabilities								
4,100		Payables	4,558	4,504	-1	4,540	4,560	4,560		
4,437		Interest Bearing Liabilities	4,437	4,549	3	4,706	4,834	4,834		
78		Finance Leases	80	80	-	80	80	8		
2,309		Employee Benefits	2,450	2,613	7	2,612	2,611	2,610		
1,881		Other	2,441	2,441	-	2,441	4,991	2,441		
12,805		Total Current Liabilities	13,966	14,187	2	14,379	17,076	14,453		
		Non Current Liabilities								
110,345		Interest Bearing Liabilities	110,344	105,795	-4	101,089	96,255	91,421		
244		Finance Leases	242	164	-32	86	8	0		
2,745		Employee Benefits	2,425	2,511	4	2,511	2,511	2,511		
2,400		Other	2,550	2,550	-	2,550	0	0		
115,734		Total Non Current Liabilities	115,561	111,020	-4	106,236	98,774	93,932		
128,539		TOTAL LIABILITIES	129,527	125,207	-3	120,615	115,850	108,385		
3,059,779		NET ASSETS	3,030,257	3,251,386	7	3,496,298	3,747,094	4,029,224		
		REPRESENTED BY FUNDS EMPLOYED								
824,518		Accumulated Funds	837,416	861,830	3	885,193	903,420	915,901		
2,235,261		Reserves	2,192,841	2,389,556	9	2,611,105	2,843,674	3,113,323		
3,059,779		TOTAL FUNDS EMPLOYED	3,030,257	3,251,386	7	3,496,298	3,747,094	4,029,224		

Housing ACT	
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								
30,035		Cash from Government for Outputs	29,758	22,384	-25	22,641	22,898	23,187		
61,625		User Charges	63,166	64,704	2	65,351	66,003	66,663		
1,054		Interest Received	1,625	1,242	-24	1,299	1,263	1,212		
1,869		Other Revenue	2,583	1,929	-25	1,929	1,929	1,929		
94,583		Operating Receipts	97,132	90,259	-7	91,220	92,093	92,991		
		Payments								
19,038		Related to Employees	17,818	17,949	1	18,437	18,930	19,336		
67,055		Related to Supplies and Services	62,572	61,195	-2	63,551	65,438	67,041		
5,361		Borrowing Costs	5,361	5,165	-4	4,966	4,761	4,549		
8,815		Grants and Purchased Services	8,276	4,546	-45	1,234	1,330	1,464		
3,034		Other	3,041	949	-69	810	817	824		
103,303		Operating Payments	97,068	89,804	-7	88,998	91,276	93,214		
-8,720		NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	64	455	611	2,222	817	-223		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Receipts								
47,119		Proceeds from Sale of Property, Plant & Equipment	39,068	34,881	-11	28,656	30,151	31,666		
47,119		Investing Receipts	39,068	34,881	-11	28,656	30,151	31,666		
		Payments								
44,274		Purchase of Property, Plant and Equipment	37,505	46,803	25	36,783	34,927	31,278		
0		Purchase of Land and Intangibles	0	280	#	0	0	0		
44,274		Investing Payments	37,505	47,083	26	36,783	34,927	31,278		
2,845		NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES	1,563	-12,202	-881	-8,127	-4,776	388		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Receipts								
5,580		Capital Injection from Government	5,175	11,353	119	9,660	9,000	5,000		
45		Borrowings Received	45	60	33	60	60	60		
5,625		Financing Receipts	5,220	11,413	119	9,720	9,060	5,060		
		Payments								
4,457		Repayment of Borrowings	4,457	4,537	2	4,649	4,806	4,934		
4,457		Financing Payments	4,457	4,537	2	4,649	4,806	4,934		
1,168		NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES	763	6,876	801	5,071	4,254	126		
-4,707		NET INCREASE/(DECREASE) IN CASH HELD	2,390	-4,871	-304	-834	295	291		
23,191		CASH AT BEGINNING OF REPORTING PERIOD	18,472	20,862	13	15,991	15,157	15,452		
18,484		CASH AT THE END OF THE REPORTING PERIOD	20,862	15,991	-23	15,157	15,452	15,743		

Housing ACT	
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		
2,933,526		Opening Balance	2,894,372	3,030,257	5	3,251,386	3,496,298	3,747,094		
		Accumulated Funds								
-19,686		Operating Result for the Period	-8,626	-9,106	-6	-8,297	-12,773	-14,519		
		Reserves								
118,359		Increase/(Decrease) in asset revaluation reserve	117,259	196,715	68	221,549	232,569	269,649		
22,000		Transfer to/from Reserves	22,000	22,000	-	22,000	22,000	22,000		
120,673		Total Income And Expense For The Period	130,633	209,609	60	235,252	241,796	277,130		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
5,580		Capital Injections	5,175	11,353	119	9,660	9,000	5,000		
0		Inc/Dec in Net Assets due to Admin Restructure	77	167	117	0	0	0		
3,059,779		Closing Balance	3,030,257	3,251,386	7	3,496,298	3,747,094	4,029,224		
Notes to the Budget Statements
Significant variations are as follows: 
Operating Statement
•	government payment for outputs:
–	the decrease of $0.277 million in the 2005‑06 estimated outcome from the original budget is due to decreased funding under the Commonwealth State Housing Agreement as a result of relative population movements between the states and territories;
–	the decrease of $9.757 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to:
•	the removal of ACT Government funding in excess of matching requirements under the Commonwealth State Housing Agreement ($7.484 million);
•	one-off funding for community grants in 2005‑06 ($2.383 million); and
•	one-off funding in 2005‑06 for the initiative to improve energy and water efficiency of public housing ($0.420 million); 
offset by:
•	increased funding under the Commonwealth State Housing Agreement for indexation and per capita movements ($0.530 million).
•	
user charges – non ACT Government:
–	the increase of $1.636 million in the 2005‑06 estimated outcome from the original budget is due to additional rents received from Currong, and lower rebates; 
–	the increase of $1.570 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to the increase in market rents for 2006‑07 following the re‑assessment of market rents and the indexation of tenant pension and benefit incomes ($0.670 million) and the recovery of water consumption costs from public housing tenants ($0.9 million).
•	interest:
–	the increase of $0.571 million in the 2005‑06 estimated outcome from the original budget is due to higher investment balances held over the year as a result of savings in outlays on employees, supplies and services, grants and delayed property acquisitions;
–	the decrease of $0.383 million in 2006‑07 Budget from the 2005‑06 estimated outcome is due to the lower amount of funds available for investment over the year as projects proceed to finalisation and operations return to a more normal mode.
•	other revenue:
–	the increase of $1.474 million in the 2005‑06 estimated outcome from the original budget is due to higher profits on sales ($1.1 million) and higher insurance recoveries ($0.774 million) from a higher number of incidents than expected, offset by lower tenant responsible maintenance charges ($0.4 million).
–	the increase of $2.080 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to higher profits on sales, particularly from properties sold to the joint ventures ($2.454 million), offset by the return to more normal levels for insurance recoveries and tenant responsible maintenance recoveries ($0.374 million).
•	employee and superannuation expenses:
–	the decrease of $1.220 million in the 2005‑06 estimated outcome from the original budget is due to lower employee numbers from delays in recruitment, offset by higher workers’ compensation premium costs and higher training costs.
–	the increase of $0.547 million in 2006‑07 Budget from the 2005‑06 estimated outcome is due to:
•	staffing levels returning to budgeted levels and wage increases under the existing enterprise bargaining agreement ($1.526 million);
•	the transfer of staff from the Department of Disability, Housing and Community Services ($2.935 million);
•	increase in the training expenditure ($0.192 million);
•	increase in workers’ compensation premium ($0.036 million); and
•	increase in notional superannuation contribution rates ($0.955 million).
offset by:
•	savings and the cessation of payroll tax equivalent payments ($4.564 million); and 
•	the impact of consolidating human resources, finance, procurement and information technology services into the Shared Services Centre ($0.533 million).
•	supplies and services:
–	the decrease of $4.483 million in the 2005‑06 estimated outcome from the original budget is due to:
•	lower than budgeted repairs and maintenance expenditure ($3.616 million) following the implementation and delays in the achievement of full operating capacity by the new total facility manager that commenced in July 2005;
•	lower insurance costs ($0.172 million);
•	lower general rates ($0.296 million); and 
•	lower other administration costs ($0.399 million), partly as a result of the lower employee costs.
–	the decrease of $1.383 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to efficiency savings ($2.598 million) and ceasing outsourced organisational support services ($2.797 million), 
offset by:
–	the impact of consolidating information technology and procurement services in the Shared Services Centre ($0.602 million), increases in rates and other government charges ($2.784 million), higher insurance costs ($0.222 million) and higher administration costs ($0.404 million).
•	depreciation and amortisation:
–	the decrease of $1.187 million in the 2005‑06 estimated outcome from the original budget is due to the lower than expected increase in building values following the 2005‑06 revaluation of the public housing portfolio;
–	the increase of $0.401 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to the planned revaluation of properties in March 2007, slightly offset by lower property numbers.
•	borrowing costs:  the decrease of $0.196 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to the reduction in interest payments as loans decrease in line with the Commonwealth repayment schedules.
•	grants and purchased services:
–	the decrease of $0.539 million in the 2005‑06 estimated outcome from the original budget is due to the delays in the finalisation of some community housing projects, which will be completed in 2006‑07; and
–	the decrease of $3.730 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to the revision of funding arrangements to community housing providers in line with the report into the community housing funding review ($1.034 million) and the impact of one-off funding in 2005‑06 ($2.696 million).
•	other expenses:
–	the decrease of $0.306 million in the 2005‑06 estimated outcome from the original budget is due to:
•	lower demolition costs associated with the deferral of some redevelopments; offset by
•	higher bad and doubtful debts expense ($0.233 million) and the write‑off of costs for some development projects not proceeding as planned ($0.136 million).
–	the decrease of $0.924 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to:
•	the cessation of paying land tax equivalents ($2.130 million) and the contributions to the Ombudsman’s office and the construction training levy ($0.1 million); and
•	reduced costs for doubtful debts ($0.281 million) and property write off expenses ($0.250 million);
offset by: 
•	higher compensation costs for negotiating contract terminations to achieve savings ($0.148 million); 
•	higher property write-off and demolition costs ($1.584 million); and
•	the transfer of properties to Community Housing Canberra Limited ($0.105 million).
•	share of operating result from joint venture:  the increase of $0.750 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to the profits from the interests in the joint ventures for the refurbishment and/or redevelopment of several multi-unit sites.
Balance Sheet
•	cash and current investments: 
–	the increase of $2.378 million in the 2005‑06 estimated outcome from the original budget is due to the additional funds held as a result of the higher revenues and reduced expenditures discussed above;
–	the decrease of $4.871 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to the planned increase in expenditure on properties during the year.
•	assets held for sale: 
–	the increase of $47.372 million in the 2005‑06 estimated outcome from the original budget is due to the recognition of properties identified for sale transferred from property plant and equipment in compliance with the new Australian Equivalent International Financial Reporting Standards;
–	the decrease of $39.632 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to the reduction in assets identified as held for sale as properties are sold into the joint ventures during the year.
•	total liabilities:
–	the increase of $0.988 million in the 2005‑06 estimated outcome from the original budget is mainly due to a slight increase in payables and tenant income received in advance;
–	the decrease of $4.320 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is mainly due to the reduction in borrowings with the Commonwealth in accordance with the loan repayment schedule.

Statement of Changes in Equity
•	operating result:
–	the decrease in the operating loss of $11.060 million in the 2005‑06 estimated outcome from the original budget is due to the additional rental revenues and lower expenditures outlined in the explanation under the Operating Statement above.
–	the increase in the operating loss of $0.480 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to the impact of the lower revenues and lower expenditures outlined in the explanations under the Operating Statement above.

Housing ACT	
Statement of Income and Expenses on Behalf of the Territory	
  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								
18,785		Grants from the Commonwealth	18,589	19,106	3	19,472	19,320	19,518		
18,785		Total Revenue	18,589	19,106	3	19,472	19,320	19,518		
		Gains								
0		Total Gains	0	0	-	0	0	0		
18,785		Total Income	18,589	19,106	3	19,472	19,320	19,518		
		Expenses								
18,785		Transfer Expenses	18,589	19,106	3	19,472	19,320	19,518		
18,785		Total Ordinary Expenses	18,589	19,106	3	19,472	19,320	19,518		
0		Operating Result	0	0	-	0	0	0		

Housing ACT	
Budgeted Statement of Cashflows on Behalf of the Territory	
  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								
18,785		Grants Received from the Commonwealth	18,589	19,106	3	19,472	19,320	19,518		
18,785		Operating Receipts	18,589	19,106	3	19,472	19,320	19,518		
		Payments								
18,785		Territory Receipts to Government	18,589	19,106	3	19,472	19,320	19,518		
18,785		Operating Payments	18,589	19,106	3	19,472	19,320	19,518		
0		NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	0	0	-	0	0	0		
0		NET INCREASE/(DECREASE) IN CASH HELD	0	0	-	0	0	0		
0		CASH AT THE END OF THE REPORTING PERIOD	0	0	-	0	0	0		
Notes to the Budget Statements
Significant variations are as follows: 
Statement of Income and Expenses on Behalf of the Territory
•	grants from the Commonwealth:
–	the decrease of $0.196 million in the 2005‑06 estimated outcome from original budget is due to decreased funding under the Commonwealth State Housing Agreement as a result of relative population movements between the states; and
–	the increase of $0.373 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to indexation of the Commonwealth State Housing Agreement grants and additional funding for young people with disabilities.