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.
2010-11 Priorities
Strategic and operational issues to be pursued in 2010‑11 include:
•	assisting the Government to maintain the Territory’s AAA credit rating through sound and sustainable economic and financial management;
•	continuing expenditure reviews to advise the Government on options to achieve the savings adjustment required to return the Budget to surplus by 2013‑14;
•	undertaking post implementation program/initiative evaluations through the Expenditure Review and Evaluation Committee to provide advice to the Budget Committee of Cabinet on whether the desired objectives are being met and options to improve the efficiency and effectiveness of the existing public expenditure;
•	providing regular updates to the Budget Committee of Cabinet on the Territory’s finances;
•	analysing and advising on the impact on the Territory of Australia’s Future Tax System review;
•	coordinating the Government’s budget and reporting on financial outcomes;
•	completing the codification of Change of Use project;
•	continuing to improve the Territory’s financial management framework;
•	continuing to monitor and provide regular advice to the Government on the progress of its capital program, including regular reports to the Budget Committee of Cabinet;
•	implementing the Seamless National Economy National Partnership; 
•	strengthening the Territory's Regulatory Impact Statement processes in harmony with the Council of Australian Governments agreement;
•	assisting the Government on gaming machine caps and allocations;
•	implementing reforms to funding arrangements for ACT racing clubs; and
•	continuing reforms of the ACT compulsory third party scheme.

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 Level	
2008‑09
Actual Outcome		2009-10
Budget	2009-10
Est. Outcome	2010-11
Budget	
1742	Staffing  (FTE)1	185	1732	185	
Notes:
1.	Excludes the Superannuation Provision Account.
2.	These figures do not include contractors.  The decrease of 12 FTEs in the 2009-10 estimated outcome from the original budget is due to temporary vacancies that existed as at April 2010.

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.
The Government introduced a Budget Plan in the 2009‑10 Budget to outline a path to returning the Budget to surplus by 2015‑16.
The General Government Sector is in deficit across the budget and forward estimates.  
The Government remains committed to restoring the Budget to surplus.  
The Budget Plan has been reset in the 2010‑11 Budget, and now targets a return to surplus by 2013‑14, two years earlier than projected.  The Budget incorporates savings in order to progress this task.  The Plan has also been updated to take account of changes in the economy, revenue growth and new policy initiatives.
Detailed information for this indicator, and the longer term plan to restore the budget to surplus, is included in Budget Paper 3 — Budget Overview.

Strategic Indicators cont.
Strategic Indicator 2
Maintaining a AAA Credit Rating
Standard & Poor’s assesses 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 continues to have a strong balance sheet, and remains below the weighted average level for all AAA rated jurisdictions.
The ratio for the 2010‑11 Budget remains comparable to the 2009‑10 Budget ratio.
The ratios appearing in the below table for all other jurisdictions are based on their Mid Year Reviews.
Detailed information for this indicator is included in Budget Paper 3 - Budget Overview.

Strategic Indicators cont.
Strategic Indicator 4
To be Among the Top 4 Jurisdictions in Taxation Revenue Forecasting Accuracy
Treasury assists the Government in achieving better policy and planning outcomes through forecasting economic and fiscal variables, including taxation revenue, that provide the basis for resource allocation in the annual budget process.  
Actual taxation revenue will rarely precisely agree with the revenue forecast in a Budget due to factors outside the Government’s control.  There are, however, boundaries of acceptable variance.  This strategic indicator is designed to identify if the forecast variance is within a reasonable limit of expectation or whether an improvement in the statistical models and the process of producing these forecasts is required.
The Territory’s forecasting performance is evaluated in comparison to other jurisdictions based on the Mean Percentage Error (MPE) of the most recent five years forecasts for General Government Sector taxation revenue1.  A rolling average of five years forecast errors is used to minimise the influence of events at the national and international level that can have a dissimilar impact on jurisdictions due to their different economic structures and different sources of revenue.  
The objective is for the Territory to be among the top four jurisdictions in taxation revenue forecasting accuracy. 

 MPE 	ACT Ranking	NSW	VIC	QLD	SA	WA	TAS	ACT	NT	
		%	%	%	%	%	%	%	%	
2001-02 to 2005-06 	3rd	2.3	4.6	10.0	7.2	13.8	12.2	5.9	*	
2002-03 to 2006-07 	4th	3.3	5.6	11.5	7.9	16.5	11.7	9.1	*	
2003-04 to 2007-08 	4th	2.4	6.3	9.3	7.6	17.8	10.3	8.3	12.8	
2004-05 to 2008-09	4th	0.5	3.8	3.3	4.4	11.5	4.6	4.2	12.3	
Notes:
1.	Forecasts for General Government Sector taxation revenue are based on Australian Bureau of Statistics publications.
*     Forecast variance information for the Northern Territory is not available.

Output Classes
	Total Cost1	Government Payment for Outputs	
	2009‑10
Est. Outcome
$’000	2010‑11
Budget
$’000	2009‑10
Est. Outcome
$’000	2010‑11
Budget
$’000	
Output Class 1: 
Financial and Economic Management	41,077	55,315	37,131	49,741	
Output 1.1:  Economic Management	5,623	8,065	5,525	7,814	
Note:
1.	Total cost includes depreciation and amortisation of $1.567 million in 2009‑10 and $2.367 million in 2010-11.
Output Description
This output covers a range of services including:  economic policy advice, regulatory reform advice, analysis of major projects, federal 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 2010‑11 include:
•	monitoring and advising on the state of the ACT economy;
•	coordinating ACT Government involvement with the Commonwealth Grants Commission (CGC); 
•	overseeing the implementation of the COAG regulatory reform program;
•	consolidating reforms to the ACT compulsory third party insurance scheme with the aim of facilitating the entry of additional insurers into the market;
•	managing changes to the funding of the ACT racing industry; and
•	implementing changes to gaming machine allocations.

	Total Cost	Government Payment for Outputs	
	2009‑10
Est. Outcome
$’000	2010‑11
Budget
$’000	2009‑10
Est. Outcome
$’000	2010‑11
Budget
$’000	
Output 1.2:  Financial Management	22,023	32,601	18,493	28,695	
Output Description
Provision of analysis, monitoring and reporting on the financial performance of agencies and the Territory’s Budget, to assist the Government to achieve its policy objectives.
The key outputs to be delivered in 2010‑11 include:
•	the preparation and presentation of the Government’s annual budget, budget review and annual financial statements;
•	quarterly whole of government consolidated management reports;
•	reporting to external agencies including the Australian Loan Council, the Australian Bureau of Statistics and the CGC;
•	reviews of government programs and functions; and
•	advice on the structure and operation of Government Business Enterprises.
Output Classes cont.

	Total Cost	Government Payment for Outputs	
	2009‑10
Est. Outcome
$’000	2010‑11
Budget
$’000	2009‑10
Est. Outcome
$’000	2010‑11
Budget
$’000	
Output 1.3:  Revenue Management	13,431	14,649	13,113	13,232	
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 2010‑11 include:
•	collecting taxation revenue in line with budget estimates;
•	providing high quality and timely advice to assist taxpayers meet their obligations;
•	processing objections to assessments and decisions, in accordance with timeframes published on the ACT Revenue Office website;
•	processing around 1,800 Home Buyer Concession Scheme transactions; and
•	processing around 2,500 First Home Owner Grant applications.

Accountability Indicators
	2009-10
Targets	2009-10
Est. Outcome	2010-11
Targets	
Output Class 1:  Financial and Economic Management	
Output 1.1:  Economic Management	
a.	Briefings on the ACT Economy	117	117	117	
b.	Submission to CGC Annual Update	1	1	1	
c.	Submissions to the CGC Major Review1	2	2	n/a	
d.	Submission to credit rating agency2	1	1	1	
Notes:
1.	The CGC major review was completed in 2009-10 with the final report issued in February 2010.  The CGC is not expected to conduct a major review in 2010-11.
2.	The credit rating agency submission is a day long meeting with the agency, which includes a presentation.

	2009-10
Targets	2009-10
Est. Outcome	2010-11
Targets	
Output 1.2:  Financial Management	
a.	Budget	1	1	n/a	
b.	Budget presented in accordance with legislative timeframes1	n/a	n/a	1	
c.	Budget Review presented in accordance with legislative timeframes2	n/a	n/a	1	
d.	Annual Financial Reports	1	1	n/a	
e.	Annual Financial Statements for the Territory provided in accordance with legislative timeframes3	n/a	n/a	1	
f.	Quarterly Reports	4	4	n/a	
g.	Quarterly Consolidated Financial Statements presented in accordance with legislative timeframes4	n/a	n/a	4	
h.	Policy/ Service Area Reviews	1	1	1	
Notes:
1.	The Territory Budget presented to the Legislative Assembly in accordance with the timing prescribed in section 5 of the Financial Management Act. 
2.	The Budget Review for the Territory presented to the Legislative Assembly in accordance with the timing prescribed in section 20A of the Financial Management Act.  
3.	The Annual Financial Statements for the Territory to be provided to the Auditor-General in accordance with the timing prescribed in section 24 of the Financial Management Act.  
4.	The Quarterly Consolidated Financial Statements to be presented to the Legislative Assembly in accordance with the timing prescribed in section 26 of the Financial Management Act.  

	2009-10
Targets	2009-10
Est. Outcome	2010-11
Targets	
Output 1.3:  Revenue Management	
a.	Debt Management - level of overdue debt as a percentage of Treasury tax revenue1	2.5%	2.6%	2.5%	
b.	Compliance revenue per inspector	$360,000	$360,000	$360,000	
Note:
1.	The wording of the indicator has changed from ‘level of outstanding debt’ for 2009-10 to ‘level of overdue debt’ for 2010‑11.   The change is aimed at clarifying the measure and does not reflect a change in the existing methodology.  The indicator measures the level of overdue collectable debt as a percentage of forecast Treasury tax revenue.  Excludes matters subject to objection and appeals, under liquidation and agreements made by the ACT Government in respect of pending waivers.

Changes to Appropriation
Changes to Appropriation - Departmental						
 	2009-10	2010-11	2011-12	2012-13	2013-14	
Government Payment for Outputs	Est. Out.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2009-10 Budget	42,496	34,818	31,253	31,204	31,204	
						
FMA Section 16B Rollovers from 2008-09						
Oracle Government Financials	96 	- 	- 	- 	- 	
						
Technical Adjustment						
Act of Grace Payment	25 	- 	- 	- 	- 	
						
2010-11 Budget Policy Adjustments						
Support for Accelerated Land Development	- 	3,000 	3,000 	1,000 	1,000 	
ACT Government Office Project - Procurement
 Planning and Documentation	- 	3,100 	- 	- 	- 	
Revised Wage Parameters	- 	226 	392 	397 	402 	
Efficiency Dividend	- 	- 	(312)	(477)	(652)	
						
2010-11 Budget Technical Adjustments						
Revised Indexation Parameters	- 	5 	6 	6 	556 	
Racing Industry Funding Review	- 	40 	- 	- 	- 	
Restructure Fund	- 	- 	3,500 	1,000 	1,000 	
National Partnership - Standard Business Reporting
 Program	86 	- 	- 	- 	- 	
National Partnership - A Seamless National Economy	- 	580 	2,775 	1,040 	935 	
Transfer - Government Office Building 
(Project Advice) to the Department of Land and
 Property Services	(600)	- 	- 	- 	- 	
Rollover - Administration of CTPI Levy	(140)	140 	- 	- 	- 	
Rollover - Whole of Government - Capital
 Improvements Program	(431)	431 	- 	- 	- 	
Rollover - Government Office Building 
(Project Advice)	(100)	100 	- 	- 	- 	
Rollover - Whole of Government - Asset
 Management and Capital Delivery Planning	(1,159)	1,159 	- 	- 	- 	
Rollover - Restructure Fund	(3,000)	3,000 	- 	- 	- 	
Rollover - Government Financial Systems	(142)	142 	- 	- 	- 	
Revised Funding Profile - Restructure Fund	- 	3,000 	716 	- 	- 	
						
2010-11 Budget	37,131	49,741	41,330	34,170	34,445	

Changes to Appropriation cont.
Changes to Appropriation - Territorial						
	2009-10	2010-11	2011-12	2012-13	2013-14	
Payment for Expenses on Behalf of Territory	Est. Out.	Budget	Estimate	Estimate	Estimate	
	$'000	$'000	$'000	$'000	$'000	
						
2009-10 Budget	33,472	28,374	27,457	27,636	27,636	
						
Technical Adjustments						
National Partnership - First Home Owners Boost	14,048 	- 	- 	- 	- 	
Treasurer's Advance - First Home Owners Boost and First Home Owner Grant	2,500 	- 	- 	- 	- 	
						
2010-11 Budget Technical Adjustment						
Revised First Home Owner Grant	- 	(747)	(967)	(1,046)	(1,056)	
Revised First Home Owners Boost	- 	(276)	93 	- 	- 	
Racing Development Funding Adjustment	- 	371 	(1,474)	(1,459)	(1,262)	
						
2010-11 Budget	50,020	27,722	25,109	25,131	25,318	

Changes to Appropriation - Departmental						
 	2009-10	2010-11	2011-12	2012-13	2013-14	
Capital Injections	Est. Out.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2009-10 Budget	12,094	10,300	7,300	300	300	
						
FMA Section 16B Rollovers from 2008-09						
Oracle Government Financials	92 	- 	- 	- 	- 	
						
2010-11 Budget Technical Adjustment						
National Partnership - Standard Business Reporting	527 	- 	- 	- 	- 	
Cessation - Mortgage Relief Fund	- 	- 	- 	- 	(300)	
						
2010-11 Budget	12,713	10,300	7,300	300	 - 	

Changes to Appropriation - Territorial						
 	2009-10	2010-11	2011-12	2012-13	2013-14	
Capital Injections	Est. Out.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2009-10 Budget	21,000	21,600	22,300	22,300	22,300	
						
FMA Section 16B Rollovers from 2008-09						
Rollover - Land Rent Scheme	10,169 	- 	- 	- 	- 	
						
2010-11 Budget Technical Adjustment						
Revised Funding Profile - Land Rent Scheme	- 	10,000 	- 	- 	- 	
						
2010-11 Budget	31,169 	31,600 	22,300 	22,300 	22,300 	

Department of Treasury
Operating Statement
  2009-10			  2009-10	   2010-11		  2011-12	    2012-13	  2013-14		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		Income								
		Revenue								
42,496		Government Payment for Outputs	37,131	49,741	34	41,330	34,170	34,445		
10		User Charges - ACT Government	10	10	-	10	10	10		
893		Interest	1,064	1,710	61	2,093	2,250	2,250		
500		Resources Received Free of Charge	1,150	1,150	-	1,150	1,150	1,150		
43,899		Total Revenue	39,355	52,611	34	44,583	37,580	37,855		
		Gains								
0		Total Gains	0	0	-	0	0	0		
43,899		Total Income	39,355	52,611	34	44,583	37,580	37,855		
		Expenses								
15,474		Employee Expenses	15,653	15,912	2	15,996	16,040	16,110		
2,672		Superannuation Expenses	2,678	2,734	2	2,712	2,593	2,626		
13,442		Supplies and Services	11,887	19,271	62	13,048	12,917	13,188		
2,003		Depreciation and Amortisation	1,567	2,367	51	2,372	927	124		
894		Borrowing Costs	1,065	1,710	61	2,093	2,250	2,250		
11,633		Grants and Purchased Services	8,202	13,321	62	10,828	3,881	3,782		
0		Other Expenses	25	0	-100	0	0	0		
46,118		Total Ordinary Expenses	41,077	55,315	35	47,049	38,608	38,080		
-2,219		Operating Result	-1,722	-2,704	-57	-2,466	-1,028	-225		
-2,219		Total Comprehensive Income	-1,722	-2,704	-57	-2,466	-1,028	-225		

Department of Treasury
Balance Sheet
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/10			as at 30/6/10	as at 30/6/11	   Var	as at 30/6/12	as at 30/6/13	as at 30/6/14		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
1,754		Cash and Cash Equivalents	1,704	1,617	-5	1,730	1,843	1,956		
321		Receivables	269	329	22	389	449	449		
12		Other	3	3	-	3	3	3		
2,087		Total Current Assets	1,976	1,949	-1	2,122	2,295	2,408		
		Non Current Assets								
33,240		Receivables	33,240	43,480	31	50,720	50,960	50,960		
98		Property, Plant and Equipment	454	432	-5	406	282	158		
4,339		Intangibles	3,984	3,149	-21	803	0	0		
0		Capital Works in Progress	1,510	0	-100	0	0	0		
37,677		Total Non Current Assets	39,188	47,061	20	51,929	51,242	51,118		
39,764		TOTAL ASSETS	41,164	49,010	19	54,051	53,537	53,526		
		Current Liabilities								
988		Payables	869	920	6	971	1,022	1,073		
35		Finance Leases	76	76	-	76	76	76		
4,549		Employee Benefits	5,295	5,490	4	5,646	5,809	5,972		
5,572		Total Current Liabilities	6,240	6,486	4	6,693	6,907	7,121		
		Non Current Liabilities								
33,000		Interest Bearing Liabilities	33,000	43,000	30	50,000	50,000	50,000		
0		Finance Leases	47	47	-	47	47	47		
240		Employee Benefits	313	317	1	317	317	317		
33,240		Total Non Current Liabilities	33,360	43,364	30	50,364	50,364	50,364		
38,812		TOTAL LIABILITIES	39,600	49,850	26	57,057	57,271	57,485		
952		NET ASSETS	1,564	-840	-154	-3,006	-3,734	-3,959		
		REPRESENTED BY FUNDS EMPLOYED								
952		Accumulated Funds	1,564	-840	-154	-3,006	-3,734	-3,959		
952		TOTAL FUNDS EMPLOYED	1,564	-840	-154	-3,006	-3,734	-3,959		

Department of Treasury
Cash Flow Statement
  2009-10			  2009-10	   2010-11		  2011-12	    2012-13	  2013-14		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
42,496		Cash from Government for Outputs	37,131	49,741	34	41,330	34,170	34,445		
10		User Charges	247	10	-96	10	10	10		
893		Interest Received	1,064	1,710	61	2,093	2,250	2,250		
1,068		Other Revenue	1,068	1,068	-	1,068	1,068	1,068		
44,467		Operating Receipts	39,510	52,529	33	44,501	37,498	37,773		
		Payments								
15,398		Related to Employees	15,520	15,713	1	15,840	15,877	15,947		
2,650		Related to Superannuation	2,656	2,712	2	2,690	2,571	2,604		
12,802		Related to Supplies and Services	10,750	17,981	67	11,758	11,627	11,898		
894		Borrowing Costs	1,065	1,710	61	2,093	2,250	2,250		
11,633		Grants and Purchased Services	8,202	13,321	62	10,828	3,881	3,782		
4,503		Other	4,528	1,179	-74	1,179	1,179	1,179		
47,880		Operating Payments	42,721	52,616	23	44,388	37,385	37,660		
-3,413		NET CASH INFLOW/ (OUTFLOW) FROM OPERATING ACTIVITIES	-3,211	-87	97	113	113	113		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Receipts								
0		Repayment of Home Loan Principal	0	60	#	120	180	240		
0		Investing Receipts	0	60	#	120	180	240		
		Payments								
270		Purchase of Property, Plant and Equipment and Capital Works	797	0	-100	0	0	0		
600		Purchase of Land and Intangibles	1,118	0	-100	0	0	0		
8,300		Other Payments	8,300	10,360	25	7,420	480	240		
9,170		Investing Payments	10,215	10,360	1	7,420	480	240		
-9,170		NET CASH INFLOW/ (OUTFLOW) FROM INVESTING ACTIVITIES	-10,215	-10,300	-1	-7,300	-300	0		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Receipts								
12,094		Capital Injection from Government	12,713	10,300	-19	7,300	300	0		
12,094		Financing Receipts	12,713	10,300	-19	7,300	300	0		
		Payments								
3		Repayment of Finance Lease	3	0	-100	0	0	0		
3		Financing Payments	3	0	-100	0	0	0		
12,091		NET CASH INFLOW/ (OUTFLOW) FROM FINANCING ACTIVITIES	12,710	10,300	-19	7,300	300	0		
-492		NET INCREASE/ (DECREASE) IN CASH HELD	-716	-87	88	113	113	113		
2,246		CASH AT BEGINNING OF REPORTING PERIOD	2,420	1,704	-30	1,617	1,730	1,843		
1,754		CASH AT THE END OF THE REPORTING PERIOD	1,704	1,617	-5	1,730	1,843	1,956		

Department of Treasury
Statement of Changes in Equity
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/10			as at 30/6/10	as at 30/6/11	   Var	as at 30/6/12	as at 30/6/13	as at 30/6/14		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
		Opening Equity								
2,401		Opening Accumulated Funds	1,897	1,564	-18	-840	-3,006	-3,734		
2,401		Balance at the Start of the Reporting Period	1,897	1,564	-18	-840	-3,006	-3,734		
		Comprehensive Income								
-2,219		Operating Result for the Period	-1,722	-2,704	57	-2,466	-1,028	-225		
-2,219		Total Comprehensive Income	-1,722	-2,704	57	-2,466	-1,028	-225		
0		Total Movement in Reserves	0	0	-	0	0	0		
		Transactions Involving Owners Affecting Accumulated Funds								
4,094		Capital Injections	4,713	300	-94	300	300	0		
-3,324		Increase/(Decrease) in Net Assets due to Admin Restructure	-3,324	0	100	0	0	0		
770		Total Transactions Involving Owners Affecting Accumulated Funds	1,389	300	-78	300	300	0		
		Closing Equity								
952		Closing Accumulated Funds	1,564	-840	-154	-3,006	-3,734	-3,959		
952		Balance at the End of the Reporting Period	1,564	-840	-154	-3,006	-3,734	-3,959		
Notes to the Budget Statements
Significant variations are as follows:
Operating Statement
•	government payment for outputs: 
–	the decrease of $5.365 million in the 2009-10 estimated outcome from the original budget is mainly due to the rollover of funding for the Restructure Fund ($3 million), Whole of Government – Asset Management and Capital Delivery Planning initiative ($1.159 million), Capital Improvements Program ($0.431 million) and the transfer of funds for the Government Office Building – Project Advice initiative to the Department of Land and Property Services (LAPS) ($0.6 million); and
–	the increase of $12.610 million in the 2010-11 Budget from the 2009-10 estimated outcome is mainly due to new funding for the Support for Accelerated Land Development initiative ($3 million), revised funding profile for the Restructure Fund ($2.485 million), the Whole of Government – Asset Management and Capital Delivery Planning initiative ($2.283 million), ACT Government Office Project initiative ($4.238 million), Seamless National Economy NP ($1.930 million), indexation ($0.291 million) and revised wage parameters ($0.424 million) partially offset by decreased funding for the Capital Improvements Program ($2.298 million), the Standard Business Reporting Program NP ($0.186 million), the cessation of the Council of Australian Government Additional Resourcing initiative ($0.143 million) and the efficiency dividend ($0.325 million).
•	interest received:   
–	the increase of $0.171 million in the 2009‑10 estimated outcome from the original budget reflects an increase in interest rates during 2009-10; and
–	the increase of $0.646 million in the 2010-11 Budget from the 2009-10 estimated outcome reflects the further drawdown of the finance facility to Community Housing Canberra (CHC) and an increase in interest rates.
•	resources received free of charge:  the increase of $0.650 million in the 2009-10 estimated outcome from the original budget is to reflect actual legal expenditure trends in recent years.   
•	employee expenses:  
–	the increase of $0.179 million in the 2009-10 estimated outcome from the original budget is mainly due to revised wage parameters ($0.104 million) and the increased expenditure for the Standard Business Reporting Program NP ($0.086 million); and
–	the increase of $0.259 million in the 2010-11 Budget from the 2009-10 estimated outcome mainly reflects revised wage parameters ($0.342 million), partially offset by the cessation of the Council of Australian Government Additional Resourcing initiative in 2009-10 ($0.114 million).
•	supplies and services: 
–	the decrease of $1.555 million in the 2009-10 estimated outcome from the original budget is mainly due to the rollover of the Whole of Government – Asset Management and Capital Delivery Planning initiative ($1.159 million) and the transfer of funds for the Government Office Building – Project Advice initiative to LAPS ($0.6 million), partially offset by an increase in resources received free of charge to reflect actual expenditure trends in recent years ($0.650 million); and
–	the increase of $7.384 million in the 2010-11 Budget from the 2009-10 estimated outcome is mainly due to increased expenditure for the Whole of Government – Asset Management and Capital Delivery Planning initiative ($2.283 million), ACT Government Office Project initiative ($4.238 million), the Whole of Government Financial Systems ($0.394 million) and indexation ($0.291 million).
•	depreciation and amortisation:  the decrease of $0.436 million in the 2009-10 estimated outcome from the original budget and the increase of $0.8 million in the 2010-11 Budget from the 2009-10 estimated outcome mainly reflects delays associated with the Revenue IT System upgrades.
•	borrowing costs:   
–	the increase of $0.171 million in the 2009‑10 estimated outcome from the original budget reflects an increase in interest rates during 2009-10; and
–	the increase of $0.645 million in the 2010-11 Budget from the 2009-10 estimated outcome mainly reflects the further drawdown of the finance facility to CHC and increase in interest rates.
•	grants and purchased services:
–	the decrease of $3.431 million in the 2009-10 estimated outcome from the original budget reflects the impact of rollovers between financial years; and
–	the increase of $5.119 million in the 2010-11 Budget from the 2009-10 estimated outcome is mainly due to new expenditure for the Support for Accelerated Land Development initiative ($3 million) and increased expenditure for the Seamless National Economy NP ($1.930 million) and the Restructure Fund ($2.485 million), partially offset by decreased expenditure from the Capital Improvements Program ($2.298 million).
Balance Sheet
•	non current receivables:   the increase of $10.240 million in the 2010-11 Budget from the 2009-10 estimated outcome reflects the amount expected to be drawn under the finance facility for Community Housing Canberra ($10 million) and the net increase in loans expected to be provided under the Mortgage Relief Fund initiative ($0.240 million).
•	property, plant and equipment:   the increase of $0.356 million in the 2009-10 estimated outcome from the original budget is mainly due to the reassessment of leasehold improvements and leased plant and equipment following the 2008-09 audited outcome.
•	intangibles: 
–	the decrease of $0.355 million in the 2009-10 estimated outcome from the original budget is mainly due to the reassessment of intangibles following the 2008-09 audit outcome and the delays associated with the finalisation of the Revenue IT System upgrades; and
–	the decrease of $0.835 million in the 2010-11 Budget from the 2009-10 estimated outcome is mainly due to the amortisation associated with the upgrade of the Oracle Government Financials ($1.542 million) and the Revenue IT System upgrades ($0.804 million), partially offset by the increase due to the finalisation of the upgrade associated with the Standard Business Reporting Program NP ($1.510 million).  
•	capital works in progress:  the increase of $1.510 million in the 2009-10 estimated outcome from the original budget and the decrease of $1.510 million in the 2010‑11 Budget from the 2009-10 estimated outcome is due to delays with the finalisation of the system upgrade associated with the Standard Business Reporting Program NP and its move to intangibles. 
•	current employee benefits: 
–	the increase of $0.746 million in the 2009-10 estimated outcome from the original budget is mainly due to the reassessment of annual leave and long service leave liabilities following the 2008-09 audited outcome; and
–	the increase of $0.195 million in the 2010-11 Budget from the 2009-10 estimated outcome is mainly due to the reassessment of annual leave and long service leave liabilities and revised wage parameters.
•	non current interest bearing liabilities:   the increase of $10 million in the 2010-11 Budget from the 2009-10 estimated outcome reflects the additional amount drawndown for on‑passing to Community Housing Canberra under the finance facility.
Cash Flow Statement
Variances in the statement are explained in the notes above.
Statement of Changes in Equity
•	capital injections:  
–	the increase of $0.619 million in the 2009-10 estimated outcome from the original budget is due to increased funding for the Standard Business Reporting Program NP ($0.527 million) and rollover of funding from 2008‑09 for the Oracle Government Financials system upgrade ($0.092 million); and
–	the decrease of $4.413 million in the 2010-11 Budget from the 2009-10 estimated outcome is due to the one-off payout of the ACT Government Motor Vehicle facility with Macquarie Bank in 2009-10 ($3.324 million) and decreased funding for the system upgrades which were finalised in 2009-10 ($1.089 million). 
•	increase/(decrease) in net assets due to administrative restructure:  the increase of $3.324 million in the 2010-11 Budget from the 2009-10 estimated outcome is due to the one-off payout of the ACT Government Motor Vehicle facility with Macquarie Bank in 2009-10.

Department of Treasury
Statement of Income and Expenses on Behalf of the Territory
  2009-10			  2009-10	   2010-11		  2011-12	    2012-13	  2013-14		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		Income								
		Revenue								
33,472		Payment for Expenses on behalf of Territory	50,020	27,722	-45	25,109	25,131	25,318		
932,733		Taxes Fees and Fines	1,031,863	1,048,725	2	1,119,051	1,183,567	1,241,382		
1,629,741		Grants from the Commonwealth	1,667,937	1,601,288	-4	1,586,456	1,646,499	1,737,349		
21		Interest	21	21	-	21	21	21		
98,569		Dividend Revenue	148,154	121,062	-18	166,154	197,295	202,885		
818		Land Revenue	441	916	108	1,429	1,982	2,577		
8,814		Other Revenue	7,664	230	-97	230	230	230		
2,704,168		Total Revenue	2,906,100	2,799,964	-4	2,898,450	3,054,725	3,209,762		
		Gains								
0		Total Gains	0	0	-	0	0	0		
2,704,168		Total Income	2,906,100	2,799,964	-4	2,898,450	3,054,725	3,209,762		
		Expenses								
10,062		Supplies and Services	9,475	10,464	10	10,904	11,034	11,102		
33,240		Grants and Purchased Services	49,788	27,489	-45	24,876	24,898	25,085		
5,271		Other Expenses	17,002	1,731	-90	1,749	1,367	1,385		
2,655,595		Transfer Expenses	2,829,835	2,760,280	-2	2,860,921	3,017,426	3,172,190		
2,704,168		Total Ordinary Expenses	2,906,100	2,799,964	-4	2,898,450	3,054,725	3,209,762		
0		Operating Result	0	0	-	0	0	0		
0		Total Comprehensive Income	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 30/6/10			as at 30/6/10	as at 30/6/11	   Var	as at 30/6/12	as at 30/6/13	as at 30/6/14		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
16,991		Cash and Cash Equivalents	12,278	12,278	-	12,278	12,278	12,278		
84,956		Receivables	106,580	94,213	-12	99,793	104,361	109,636		
101,947		Total Current Assets	118,858	106,491	-10	112,071	116,639	121,914		
		Non Current Assets								
41,400		Property, Plant and Equipment	31,400	63,000	101	85,300	107,600	129,900		
41,400		Total Non Current Assets	31,400	63,000	101	85,300	107,600	129,900		
143,347		TOTAL ASSETS	150,258	169,491	13	197,371	224,239	251,814		
		Current Liabilities								
80,345		Payables	109,727	96,960	-12	102,140	106,708	111,983		
5,609		Other Provisions	5,245	5,645	8	6,045	6,045	6,045		
10,193		Other	3,886	3,886	-	3,886	3,886	3,886		
96,147		Total Current Liabilities	118,858	106,491	-10	112,071	116,639	121,914		
		Non Current Liabilities								
5,800		Payables	0	0	-	0	0	0		
5,800		Total Non Current Liabilities	0	0	-	0	0	0		
101,947		TOTAL LIABILITIES	118,858	106,491	-10	112,071	116,639	121,914		
41,400		NET ASSETS	31,400	63,000	101	85,300	107,600	129,900		
		REPRESENTED BY FUNDS EMPLOYED								
41,400		Accumulated Funds	31,400	63,000	101	85,300	107,600	129,900		
41,400		TOTAL FUNDS EMPLOYED	31,400	63,000	101	85,300	107,600	129,900		

Department of Treasury
Budgeted Statement of Cash Flows on Behalf of the Territory
  2009-10			  2009-10	   2010-11		  2011-12	    2012-13	  2013-14		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
33,472		Cash from Government for EBT	50,020	27,722	-45	25,109	25,131	25,318		
904,460		Taxes, Fees and Fines	949,115	967,416	2	1,024,387	1,080,316	1,133,671		
370		User Charges	370	0	-100	0	0	0		
21		Interest Received	21	21	-	21	21	21		
1,629,371		Grants Received from the Commonwealth	1,667,567	1,601,388	-4	1,586,456	1,645,939	1,736,789		
17,223		Other Revenue	50,723	62,873	24	70,545	82,327	86,636		
101,451		Dividends	158,669	123,254	-22	165,500	193,936	198,858		
2,686,368		Operating Receipts	2,876,485	2,782,674	-3	2,872,018	3,027,670	3,181,293		
		Payments								
9,970		Related to Supplies and Services	9,475	10,464	10	10,904	11,034	11,102		
33,240		Grants and Purchased Services	49,788	27,489	-45	24,876	24,898	25,085		
580		Other	29,654	580	-98	580	580	580		
2,642,578		Territory Receipts to Government	2,872,429	2,744,141	-4	2,835,658	2,991,158	3,144,526		
2,686,368		Operating Payments	2,961,346	2,782,674	-6	2,872,018	3,027,670	3,181,293		
0		NET CASH INFLOW/ (OUTFLOW) FROM OPERATING ACTIVITIES	-84,861	0	100	0	0	0		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Payments								
21,000		Purchase of Property, Plant and Equipment and Capital Works	31,169	31,600	1	22,300	22,300	22,300		
21,000		Investing Payments	31,169	31,600	1	22,300	22,300	22,300		
-21,000		NET CASH INFLOW/ (OUTFLOW) FROM INVESTING ACTIVITIES	-31,169	-31,600	-1	-22,300	-22,300	-22,300		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Receipts								
21,000		Capital Injection from Government	31,169	31,600	1	22,300	22,300	22,300		
21,000		Financing Receipts	31,169	31,600	1	22,300	22,300	22,300		
21,000		NET CASH INFLOW/ (OUTFLOW) FROM FINANCING ACTIVITIES	31,169	31,600	1	22,300	22,300	22,300		
0		NET INCREASE/ (DECREASE) IN CASH HELD	-84,861	0	100	0	0	0		
16,991		CASH AT BEGINNING OF REPORTING PERIOD	97,139	12,278	-87	12,278	12,278	12,278		
16,991		CASH AT THE END OF THE REPORTING PERIOD	12,278	12,278	-	12,278	12,278	12,278		

Department of Treasury
Statement of Changes in Equity on Behalf of the Territory
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/10			as at 30/6/10	as at 30/6/11	   Var	as at 30/6/12	as at 30/6/13	as at 30/6/14		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
		Opening Equity								
20,400		Opening Accumulated Funds	231	31,400	#	63,000	85,300	107,600		
20,400		Balance at the Start of the Reporting Period	231	31,400	#	63,000	85,300	107,600		
		Comprehensive Income								
0		Operating Result for the Period	0	0	-	0	0	0		
0		Total Comprehensive Income	0	0	-	0	0	0		
0		Total Movement in Reserves	0	0	-	0	0	0		
		Transactions Involving Owners Affecting Accumulated Funds								
21,000		Capital Injections	31,169	31,600	1	22,300	22,300	22,300		
21,000		Total Transactions Involving Owners Affecting Accumulated Funds	31,169	31,600	1	22,300	22,300	22,300		
		Closing Equity								
41,400		Closing Accumulated Funds	31,400	63,000	101	85,300	107,600	129,900		
41,400		Balance at the End of the Reporting Period	31,400	63,000	101	85,300	107,600	129,900		
Notes to the Budget Statements
Treasury’s Territorial financial statements include grants received from the Commonwealth under the new framework for Federal Financial Relations implemented by COAG on 1 January 2009.  The principal impact of the new framework is the amalgamation of many grant payments previously made to ACT Agencies, into one monthly payment from the Commonwealth Treasury to ACT Treasury’s Territorial Account.  A detailed explanation of the grants is provided in Budget Paper 3.
Treasury’s Territorial financial statements also include taxes, fees and fines collected on behalf of the Territory.  A detailed explanation of the movement in taxes, fees and fines is also provided in Budget Paper 3.
Significant variations are as follows:
Statement of Income and Expenses on Behalf of the Territory
•	payment for expenses on behalf of the Territory:
–	the increase of $16.548 million in the 2009-10 estimated outcome from the original budget is a result of increased funding for the Commonwealth Government’s First Home Owners Boost (FHOB), which was extended, and the First Home Owner Grant; and
–	the decrease of $22.298 million in the 2010-11 Budget from the 2009-10 estimated outcome is a result of decreased funding for the FHOB ($19.154 million) and the First Home Owners Grant ($3.688 million), partially offset by increased racing development funding ($0.543 million).
•	taxes, fees and fines:
–	the increase of $99.130 million in the 2009-10 estimated outcome from the original budget is consistent with a rebound in economic activity following the global financial crisis.  The higher estimated outcome is a result of higher‑than‑expected values and volumes of residential and commercial conveyance transactions.  There were also increased returns from payroll tax, general rates, land tax and general insurance.  Residual payments associated with commercial leases, a revenue line that was abolished on 1 July 2009, also added some additional revenue; and
–	the increase of $16.862 million in the 2010-11 Budget from the 2009-10 estimated outcome is a result of the expected growth of the payroll tax base ($18.447 million), increases in general rates ($9.316 million) and fire and emergency services levy ($1.623 million), increases in land tax ($9.776 million), increases in residential conveyance reflecting moderate increases in residential conveyance revenue ($8.350 million) and an increase in income tax equivalent revenue ($2.975 million).  This is partially offset by a decrease in commercial conveyance reflecting a reduced number of high value transactions in the commercial sector compared to the abnormally high level in 2009‑10 ($25.313 million), the abolition of duty on shares and marketable securities as this revenue line will be abolished on 1 July 2010 ($5 million), decreased revenue associated with tax waivers due to cessation of existing waiver agreements ($4.432 million) and the duty on leases which was abolished on 1 July 2009 ($3 million).
•	grants from the Commonwealth:
–	the increase of $38.196 million in the 2009‑10 estimated outcome from the original budget is mainly due to increased GST revenue ($16.3 million), increased Health Services NPPs ($12.956 million), increased First Home Owners Boost NPP ($14.048 million) and the new Better TAFE Facilities NPP ($3.174 million), partially offset by decreased Financial Assistance Grants ($10.563 million); and
–	the decrease of $66.649 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is mainly due to the decrease in GST revenue ($25.4 million), closing of the First Home Owners Boost Scheme NPP ($19.154 million) and the winding down of the Nation Building and Jobs Plan stimulus package ($85.681 million), partially offset by health services NPPs funding ($30.719 million).
•	dividend revenue:
–	the increase of $49.585 million in the 2009‑10 estimated outcome from the original budget is mainly due to the increase in dividends from ACTEW ($32.630 million) and Land Development Agency ($17.024 million); and 
–	the decrease of $27.092 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is due to lower dividend revenue from the Land Development Agency ($2.934 million) and ACTEW ($27.497 million), partially offset by an increased dividend from ACTTAB ($3.339 million).
•	land revenue:  
–	the decrease of $0.377 million in the 2009‑10 estimated outcome from the original budget reflects a smaller number of land rent properties than forecast due to the delay in individuals being able to receive financing in 2008-09; and
–	the increase of $0.475 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is due to rent received from an increased number of properties under the Land Rent Scheme.
•	other revenue:  
–	the decrease of $1.150 million in the 2009‑10 estimated outcome from the original budget is due to receiving less revenue from ACTTAB for the Racing Development Fund as a result of decreased turnover; and
–	the decrease of $7.434 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is due to the cessation of payments from ACTTAB relating to the Racing Development Fund.
•	supplies and services:  
–	the decrease of $0.587 million in the 2009‑10 estimated outcome from the original budget is due to a refinement of the ATO’s administrative costs; and  
–	the increase of $0.989 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is due to changes in GST administration expenses paid to the Commonwealth for compliance activity.
•	grants and purchased services:  
–	the increase of $16.548 million in the 2009‑10 estimated outcome from the original budget is a result of increased expenditure for the Commonwealth Government’s First Home Owners Boost (FHOB) which was extended and the First Home Owner Grant; and
–	the decrease of $22.299 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is due to decreased expenditure for the FHOB ($19.154 million) and the First Home Owners Grant ($3.688 million), partially offset by increased expenditure for racing development ($0.543 million).
•	other expenses:  
–	the increase of $11.731 million in the 2009‑10 estimated outcome from the original budget is a result of refunds for overpayments of Income Tax Equivalents by Government Business Enterprises relating to prior financial years ($10.839 million)  and an increase in waivers ($0.892 million); and
–	the decrease of $15.271 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is due to a number of one-off tax refunds paid in 2009‑10 ($10.839 million) and a decrease in waivers due to the cessation of existing waiver agreements ($4.432 million).
•	transfer expenses:  the increase of $174.240 million in the 2009‑10 estimated outcome from the original budget and the decrease of $69.555 million in the 2010‑11 Budget from the 2009‑10 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 decrease of $4.713 million in the 2009‑10 estimated outcome from the original budget is due to the timing of when cash is transferred to the Territory Banking Account.
•	current receivables:  the increase of $21.624 million in the 2009‑10 estimated outcome from the original budget and the decrease of $12.367 million in the 2010‑11 Budget from the 2009‑10 estimated outcome largely reflects changes to estimates at year end for dividends, income tax equivalents and tax accruals.
•	property, plant and equipment: 
–	the decrease of $10 million in the 2009‑10 estimated outcome from the original budget reflects a smaller number of land rent properties taken up by the public than forecast due to the delay in individuals being able to receive financing in 2008-09; and
–	the increase of $31.6 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is due to an expected increase in the number of land rent properties.
•	current payables:  the increase of $29.382 million in the 2009‑10 estimated outcome from the original budget and the decrease of $12.767 million in the 2010‑11 Budget from the 2009‑10 estimated outcome mainly relates to the accrued transfer of revenue to the Territory Banking Account.
•	current other provisions:  the decrease of $0.364 million in the 2009‑10 estimated outcome from the original budget  and the increase of $0.4 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is due to a reassessment of the provision for refund of taxes.
•	current other liabilities:  the decrease of $6.307 million in the 2009‑10 estimated outcome from the original budget is due to a reassessment of revenue received in advance following the 2008‑09 audited outcome.
•	non current payables:  the decrease of $5.8 million in the 2009‑10 estimated outcome from the original budget is due to the reclassification of the amount as a current payable.
Statement of Cash Flows on Behalf of the Territory
Variances in the statement are explained in the notes above.
Statement of Changes in Equity on Behalf of the Territory
•	capital injections:  the increase of $10.169 million in the 2009‑10 estimated outcome from the original budget is due to the rollover of funding for the Land Rent Scheme.