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 Government home buyer lending ceased in 1996.
The Portfolio’s objective is to administer the remaining home loans effectively and efficiently. 
2008‑09 Priorities
Strategic and operational issues to be pursued in 2008‑09 include:
•	continuing the review of all unsecured loans; and
•	administering the recommendations of the external review into the Home Loan Portfolio.
Estimated Employment Level
2007-08
Budget			2007-08
Est. Outcome	2008-09
Budget	
2		Staffing (FTE)	2	2	

Output Classes
	Total Cost	
	2007‑08
Est. Outcome
 $’000	2008‑09
Budget
$’000	
Output Class 1: Home Loan Portfolio	4,672	4,578	
Output 1.1: Home Loan Portfolio	4,672	4,578	
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 2008‑09, the Home Loan Portfolio will:
•	manage between 275 (2007‑08 estimated outcome) and 215 (projection to 30 June 2009) loans; and
•	comply with the Commonwealth Government’s loan repayment schedule.

Accountability Indicators
	2007‑08
Target	2007‑08
Est. Outcome	2008‑09
Target	
1.1: Home Loan Portfolio	
				
a.	Administration cost per home loan managed1	$1,548	$1,400	$1,700	
Note:
1.	The estimated outcome in 2007‑08 reflects the higher number of outstanding loans estimated to remain within the portfolio (275 loans) compared to the 2007‑08 Budget target (250 loans).  The higher cost per loan in 2008‑09 is the result of relatively fixed administration costs applied to a lower number of outstanding loans (predicted to be 215 loans) by 30 June 2009.

Home Loan Portfolio	
Operating Statement	
  2007-08			  2007-08	   2008-09		  2009-10	  2010-11	  2011-12		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
8,177		Interest	7,566	8,347	10	8,444	8,549	8,654		
0		Other Revenue	3,801	0	-100	0	0	0		
8,177		Total Revenue	11,367	8,347	-27	8,444	8,549	8,654		
		Gains								
0		Total Gains	0	0	-	0	0	0		
8,177		Total Income	11,367	8,347	-27	8,444	8,549	8,654		
		Expenses								
143		Employee Expenses	139	143	3	146	148	151		
19		Superannuation Expenses	19	19	-	20	20	20		
224		Supplies and Services	203	205	1	207	211	216		
4,311		Borrowing Costs	4,311	4,211	-2	4,106	3,997	3,883		
4,697		Total Ordinary Expenses	4,672	4,578	-2	4,479	4,376	4,270		
3,480		Operating Result	6,695	3,769	-44	3,965	4,173	4,384		

Home Loan Portfolio	
Balance Sheet	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/08			as at 30/6/08	as at 30/6/09	   Var	as at 30/6/10	as at 30/6/11	as at 30/6/12		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
17,206		Cash and Cash Equivalents	16,787	16,821	..	16,610	16,611	16,757		
851		Receivables	995	958	-4	887	836	800		
18,057		Total Current Assets	17,782	17,779	..	17,497	17,447	17,557		
		Non Current Assets								
2,494		Receivables	4,219	3,325	-21	2,563	1,909	1,346		
94,498		Investments	95,089	97,446	2	100,041	102,394	104,592		
96,992		Total Non Current Assets	99,308	100,771	1	102,604	104,303	105,938		
115,049		TOTAL ASSETS	117,090	118,550	1	120,101	121,750	123,495		
		Current Liabilities								
19		Payables	17	17	-	17	18	18		
2,320		Interest Bearing Liabilities	2,320	2,424	4	2,533	2,647	2,766		
96		Employee Benefits	147	158	7	168	177	185		
2,435		Total Current Liabilities	2,484	2,599	5	2,718	2,842	2,969		
		Non Current Liabilities								
91,249		Interest Bearing Liabilities	91,249	88,825	-3	86,292	83,644	80,878		
91,249		Total Non Current Liabilities	91,249	88,825	-3	86,292	83,644	80,878		
93,684		TOTAL LIABILITIES	93,733	91,424	-2	89,010	86,486	83,847		
21,365		NET ASSETS	23,357	27,126	16	31,091	35,264	39,648		
		REPRESENTED BY FUNDS EMPLOYED								
21,365		Accumulated Funds	23,357	27,126	16	31,091	35,264	39,648		
21,365		TOTAL FUNDS EMPLOYED	23,357	27,126	16	31,091	35,264	39,648		

Home Loan Portfolio	
Cash Flow Statement	
  2007-08			  2007-08	   2008-09		  2009-10	  2010-11	  2011-12		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
8,087		Interest Received	8,760	8,281	-5	8,435	8,541	8,643		
8,087		Operating Receipts	8,760	8,281	-5	8,435	8,541	8,643		
		Payments								
154		Related to Employees	146	150	3	156	159	162		
224		Related to Supplies and Services	226	205	-9	207	211	216		
4,311		Borrowing Costs	4,311	4,211	-2	4,106	3,997	3,883		
4,689		Operating Payments	4,683	4,566	-2	4,469	4,367	4,261		
3,398		NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	4,077	3,715	-9	3,966	4,174	4,382		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Receipts								
2,785		Proceeds from Sale/Maturities of Investments	2,067	0	-100	0	0	2		
1,168		Repayment of Home Loan Principal	1,181	996	-16	842	714	607		
3,953		Investing Receipts	3,248	996	-69	842	714	609		
		Payments								
0		Purchase of Investments	0	2,357	#	2,595	2,354	2,198		
0		Investing Payments	0	2,357	#	2,595	2,354	2,198		
3,953		NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES	3,248	-1,361	-142	-1,753	-1,640	-1,589		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Payments								
4,300		Distributions to Government	4,300	0	-100	0	0	0		
2,220		Repayment of Borrowings	2,220	2,320	5	2,424	2,533	2,647		
6,520		Financing Payments	6,520	2,320	-64	2,424	2,533	2,647		
-6,520		NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES	-6,520	-2,320	64	-2,424	-2,533	-2,647		
831		NET INCREASE/(DECREASE) IN CASH HELD	805	34	-96	-211	1	146		
16,375		CASH AT BEGINNING OF REPORTING PERIOD	15,982	16,787	5	16,821	16,610	16,611		
17,206		CASH AT THE END OF THE REPORTING PERIOD	16,787	16,821	..	16,610	16,611	16,757		

Home Loan Portfolio	
Statement of Changes in Equity	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/08			as at 30/6/08	as at 30/6/09	   Var	as at 30/6/10	as at 30/6/11	as at 30/6/12		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
22,185		Opening Balance	20,962	23,357	11	27,126	31,091	35,264		
		Accumulated Funds								
3,480		Operating Result for the Period	6,695	3,769	-44	3,965	4,173	4,384		
		Reserves								
3,480		Total Income And Expense For The Period	6,695	3,769	-44	3,965	4,173	4,384		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
-4,300		Capital (Distributions)	-4,300	0	-100	0	0	0		
21,365		Closing Balance	23,357	27,126	16	31,091	35,264	39,648		
Notes to Budget Statements
Significant variations are as follows:
Operating Statement 
•	interest:
–	the decrease of $0.611 million in the 2007‑08 estimated outcome from the original budget is due to lower interest revenues received during the year; and
–	the increase of $0.781 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is due to a higher interest rate projected for investments and a higher amount of invested funds.
•	other revenue:  the increase of $3.801 million in the 2007‑08 estimated outcome from the original budget and the decrease of $3.801 million in the 2008‑09 Budget from the estimated outcome is due to a downward revision to the provision for doubtful debts in 2007‑08 as a result of reduction in outstanding loans.
Balance Sheet
•	current and non-current receivables:
–	the increase of $1.869 million in the 2007‑08 estimated outcome from the original budget is due to the downward revision of $3.801 million in the provision for doubtful debts in the 2007‑08 estimated outcome, partially offset by higher than anticipated loan repayments flowing from the 2006‑07 audited result; and 
–	the decrease of $0.931 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is due to a reduction in outstanding loans and some expected early repayment of loans.
•	current and non-current interest bearing liabilities:  the decrease of $2.320 million in the 2008‑09 Budget from the 2007‑08 estimated outcome represents the reduction in loan principal owing to the Commonwealth Government, which is scheduled to be fully paid in 2040.
Cash Flow Statement
•	repayment of home loan principal:  the decrease of $0.185 million in the 2008‑09 Budget from the 2007‑08 estimated outcome reflects the smaller balance of outstanding loans.
•	distributions to Government:  the distribution of $4.3 million in 2007‑08 is due to the withdrawal of equity to be invested in public housing.
Statement of Changes in Equity
Variances in the statement are explained in the notes above.