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.
2009-10 Priorities
Strategic and operational issues to be pursued in 2009-10 include:
•	assisting the Government to maintain the Territory’s AAA credit rating through sound and sustainable economic and financial management;
•	undertaking a series of expenditure and evaluation reviews in order to advise Government on options to achieve the savings adjustment task for 2010-11 and the forward years in order to return the Budget to surplus by 2015-16;
•	managing the ACT’s input into the Commonwealth Grants Commission’s (CGC) 2010 Methodology Review;
•	refining the Budget process to facilitate strong community engagement on options to achieve the savings adjustment task for 2010-11 and the forward years in order to return the Budget to surplus by 2015-16;
•	providing regular updates to the Budget Committee of Cabinet on the Territory’s finances;
•	coordinating the preparation of the Government’s budget and reporting on financial outcomes;
•	reviewing the magnitude and timing of further capital injections to achieve the objective of fully funding the superannuation liability;
•	continuing to improve the Territory’s financial management framework;
•	strengthening advice to Government on the progress of its capital program, including regular reports to the Budget Committee of Cabinet;
•	completing the upgrade of the Territory’s revenue collection computer system;
•	implementing the Mortgage Relief Fund;
•	implementing the Territory’s commitments under the Council of Australian Governments (COAG) reform agenda, including the revised cash payment arrangements and the performance reporting system under the Inter-Governmental Agreement (IGA);
•	implementing the Seamless National Economy National Partnership; and
•	strengthening the Territory's Regulatory Impact Statement processes in harmony with the COAG agreement.
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
Budget			2008-09
Est. Outcome	2009-10
Budget	
184		  Staffing  (FTE)1	1732	185	
Notes:
1.	Excludes the Superannuation Provision Account.
2.	The decrease of 11 FTEs in the 2008-09 estimated outcome from the original budget is due to temporary vacancies that exist as at April 2009.

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 General Government Sector is in deficit for the Budget and Forward Estimates, however, it will return to surplus over the longer term.  The 2009-10 Budget provides a longer term plan to restore the Budget to surplus by 2015-16.
The 2009-10 Budget and Forward Estimates has moved into temporary deficit, largely through external factors impacting on the GGS revenue base.  The factors that have moved the budget into deficit are:
•	a significant loss of GST revenue due to the drop in the national GST pool as a result of the decline in consumer confidence and business activity nationally;
•	lower returns on investments due to the declines in financial markets;
•	lower interest earnings due to lower interest rates and cash balances; and
•	a softening in the property market locally.
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.  Despite a deterioration in the net financial liabilities to revenue ratio from 26 per cent (2008-09 Budget) to 62 per cent (2009-10 Budget), the ACT continues to have a strong balance sheet, and remains below the weighted average level for all AAA rated jurisdictions.
The deterioration of this ratio from the 2008-09 Budget is due to the significant reductions in the GGS financial assets (cash, superannuation related investments).
The ratios appearing in the below table for all other jurisdictions are based on their Mid Year Reviews.  It would be almost certain that the position of other jurisdictions would have also deteriorated (resulting in an increase in their ratios) since the time of these publications.
Detailed information for this indicator is included in Budget Paper 3 — Budget Overview.

Output Classes
	Total Cost1	Government Payment for Outputs	
	2008-09
Est. Outcome
$’000	2009-10
Budget
$’000	2008-09
Est. Outcome
$’000	2009-10
Budget
$’000	
Output Class 1: 
Financial and Economic Management	39,353	46,118	37,222	42,496	
Output 1.1:  Economic Management	5,374	5,879	5,250	5,776	
Note:
1.	Total cost includes depreciation and amortisation of $0.117 million in 2008-09 and $2.003 million in 2009-10.
Output Description
This output covers a range of services including:  economic policy advice, regulatory reform advice, analysis of major projects, intergovernmental 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 2009-10 include:
•	monitoring and advising on the state of the ACT economy;
•	coordinating ACT Government involvement with the CGC, including submissions, representations and participation in the CGC’s major review of the methodology underpinning the general revenue sharing relativities to apply from 2010-11 onwards;
•	overseeing the implementation of the COAG regulatory reform program; and
•	consolidating reforms to the ACT compulsory third party insurance scheme with the aim of facilitating the entry of additional insurers into the market.

	Total Cost	Government Payment for Outputs	
	2008-09
Est. Outcome
$’000	2009-10
Budget
$’000	2008-09
Est. Outcome
$’000	2009-10
Budget
$’000	
Output 1.2:  Financial Management	21,164	26,534	19,756	23,743	
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 2009-10 include:
•	the preparation and presentation of the Government’s annual budget 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	
	2008-09
Est. Outcome
$’000	2009-10
Budget
$’000	2008-09
Est. Outcome
$’000	2009-10
Budget
$’000	
Output 1.3:  Revenue Management	12,815	13,705	12,216	12,977	
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 2009-10 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 1,200 Home Buyer Concession Scheme transactions; and
•	processing around 2,700 First Home Owner Grant applications.

Accountability Indicators
	2008-09
Targets	2008-09
Est. Outcome	2009-10
Targets	
Output Class 1:  Financial and Economic Management	
Output 1.1:  Economic Management	
				
a.	Briefings on the ACT Economy1	125	114	117	
b.	Submission to CGC Annual Update	1	1	1	
c.	Submissions to the CGC Major Review	2	2	2	
d.	Submission to credit rating agency	1	1	1	
				
Output 1.2:  Financial Management	
				
a.	Budget	1	1	1	
b.	Annual Financial Reports	1	1	1	
c.	Quarterly Reports	4	4	4	
d.	Pre-election Budget Update	1	1	n/a	
e.	Policy/Service Area Reviews	1	1	1	
				
Output 1.3:  Revenue Management	
				
a.	Debt Management - level of outstanding debt as a percentage of Treasury tax revenue	2%	2.9%	2.5%	
b.	Compliance revenue per inspector2	$360,000	$600,000	$360,000	
				
Notes:
1.	The estimated outcome for 2008-09 of 114 is lower than the target due to:
•	Treasury no longer releasing Real Estate Institute of Australia briefs;
•	Treasury no longer releasing Estimated Resident Population briefs; and
•	changes to the frequency of ABS releases of Retail Trade data.
The target for 2009-10 of 117 is higher than the estimated outcome for 2008-09 due to the ABS reinstating the monthly release of Retail Trade data.
2.	The 2008-09 estimated outcome is higher than the target due to Compliance focussing on unregistered companies for payment of payroll tax.

Changes to Appropriation
						
Changes to Appropriation - Departmental						
	2008-09	2009-10	2010-11	2011-12	2012-13	
Government Payment for Outputs	Est. Out.	Budget	Estimate	Estimate	Estimate	
	$'000	$'000	$'000	$'000	$'000	
						
2008-09 Budget	49,623	33,048	32,462	31,249	31,249	
						
FMA Section 16B Rollovers from 2007-08						
Restructure Fund	3,964	 - 	 - 	 - 	 - 	
Capital Improvements Program	1,731	 - 	 - 	 - 	 - 	
						
2009-10 Budget Policy Adjustment						
Efficiency Dividend	 - 	 - 	(325)	(312)	(318)	
						
2009-10 Budget Technical Adjustments						
Revised Indexation Parameters	 - 	70	62	74	634	
Revised Superannuation Contributions	(300)	(132)	(141)	(208)	(361)	
National Partnership - Standard Business Reporting Program	 - 	100	 - 	 - 	 - 	
National Partnership - Deliver a Seamless National Economy	 - 	130	1,480	 - 	 - 	
Rollover - Whole of Government - Asset Management and Capital Delivery Planning	(930)	 - 	480	450	 - 	
Rollover - Government Office Building - Project Advice	(800)	 - 	800	 - 	 - 	
Rollover - Whole of Government Capital Improvement Program	(3,160)	3,160	 - 	 - 	 - 	
Rollover - Administration of CTPI Levy	(120)	120	 - 	 - 	 - 	
Rollover - Restructure Fund	(6,000)	6,000	 - 	 - 	 - 	
Restructure Fund - Return to Budget	(2,536)	 - 	 - 	 - 	 - 	
Whole of Government - Capital Contingency Fund - Return to Budget	(4,000)	 - 	 - 	 - 	 - 	
Territory Revenue Systems Upgrade - Return to Budget	(250)	 - 	 - 	 - 	 - 	
						
2009-10 Budget	37,222	42,496	34,818	31,253	31,204	

						
Changes to Appropriation - Territorial						
	2008-09	2009-10	2010-11	2011-12	2012-13	
Payment for Expenses on Behalf of Territory	Est. Out.	Budget	Estimate	Estimate	Estimate	
	$'000	$'000	$'000	$'000	$'000	
						
2008-09 Budget	37,041	37,055	37,347	37,571	37,571	
						
2nd Appropriation						
First Home Owners Boost (FHOB)	13,202	6,891	1,254	 - 	 - 	
						
2009-10 Budget Policy Adjustment						
Revised Racing Development Fund	653	619	584	547	726	
						
2009-10 Budget Technical Adjustments						
Revised FHOB and FHO Grant	(2,197)	(1,135)	(769)	(607)	(607)	
GST Netting Adjustment	(5,044)	(9,958)	(10,042)	(10,054)	(10,054)	
						
2009-10 Budget	43,655	33,472	28,374	27,457	27,636	

Changes to Appropriation - Departmental
	2008-09	2009-10	2010-11	2011-12	2012-13	
Capital Injections	Est. Out.	Budget	Estimate	Estimate	Estimate	
	$'000	$'000	$'000	$'000	$'000	
						
2008-09 Budget	14,050	12,038	10,000	7,000	7,000	
						
FMA Section 16B Rollovers from 2007-08						
Rollover - Oracle Government Financials	1,523	 - 	 - 	 - 	 - 	
						
2009-10 Budget Policy Adjustment						
Mortgage Relief Fund	 - 	300	300	300	300	
						
2009-10 Budget Technical Adjustments						
National Partnership - Standard Business Reporting Project	 - 	270	 - 	 - 	 - 	
Rollover - Territory Revenue Systems Upgrade	(200)	200	 - 	 - 	 - 	
Finalise Macquarie Bank Fleet Financing Facility	 - 	(714)	 - 	 - 	 - 	
Cessation - Community Housing Canberra Loan Facility	 - 	 - 	 - 	 - 	(7,000)	
						
2009-10 Budget	15,373	12,094	10,300	7,300	300	

						
						
Changes to Appropriation - Territorial						
	2008-09	2009-10	2010-11	2011-12	2012-13	
Capital Injections	Est. Out.	Budget	Estimate	Estimate	Estimate	
	$'000	$'000	$'000	$'000	$'000	
						
2008-09 Budget	20,400	21,000	21,600	22,300	22,300	

2009-10 Budget	20,400	21,000	21,600	22,300	22,300	

Department of Treasury
Operating Statement
  2008-09			  2008-09	   2009-10		  2010-11	    2011-12	  2012-13		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		Income								
		Revenue								
49,623		Government Payment for Outputs	37,222	42,496	14	34,818	31,253	31,204		
0		User Charges - ACT Government	920	10	-99	10	10	10		
1,439		Interest	733	893	22	1,170	1,432	1,170		
500		Resources Received Free of Charge	500	500	-	500	500	500		
51,562		Total Revenue	39,375	43,899	11	36,498	33,195	32,884		
		Gains								
0		Total Gains	0	0	-	0	0	0		
51,562		Total Income	39,375	43,899	11	36,498	33,195	32,884		
		Expenses								
15,078		Employee Expenses	15,275	15,474	1	15,602	15,695	15,879		
2,802		Superannuation Expenses	2,502	2,672	7	2,702	2,656	2,536		
13,509		Supplies and Services	11,721	13,442	15	13,735	12,593	12,476		
1,775		Depreciation and Amortisation	117	2,003	#	2,174	2,105	124		
1,446		Borrowing Costs	740	894	21	1,170	1,432	1,170		
18,999		Grants and Purchased Services	8,998	11,633	29	3,310	846	856		
53,609		Total Ordinary Expenses	39,353	46,118	17	38,693	35,327	33,041		
-2,047		Operating Result	22	-2,219	#	-2,195	-2,132	-157		

Department of Treasury
Balance Sheet
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/09			as at 30/6/09	as at 30/6/10	   Var	as at 30/6/11	as at 30/6/12	as at 30/6/13		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
527		Cash and Cash Equivalents	2,246	1,754	-22	1,867	1,980	2,093		
388		Receivables	261	321	23	381	441	501		
28		Other	12	12	-	12	12	12		
943		Total Current Assets	2,519	2,087	-17	2,260	2,433	2,606		
		Non Current Assets								
25,000		Receivables	25,000	33,240	33	43,420	50,540	50,600		
21		Property, Plant and Equipment	140	98	-30	76	54	34		
3,940		Intangibles	4,734	4,339	-8	2,187	104	0		
0		Capital Works in Progress	713	0	-100	0	0	0		
28,961		Total Non Current Assets	30,587	37,677	23	45,683	50,698	50,634		
29,904		TOTAL ASSETS	33,106	39,764	20	47,943	53,131	53,240		
		Current Liabilities								
1,386		Payables	937	988	5	1,039	1,090	1,141		
3		Finance Leases	55	35	-36	35	35	35		
4,468		Employee Benefits	4,473	4,549	2	4,632	4,721	4,816		
5,857		Total Current Liabilities	5,465	5,572	2	5,706	5,846	5,992		
		Non Current Liabilities								
25,000		Interest Bearing Liabilities	25,000	33,000	32	43,000	50,000	50,000		
17		Finance Leases	0	0	-	0	0	0		
261		Employee Benefits	240	240	-	240	240	240		
25,278		Total Non Current Liabilities	25,240	33,240	32	43,240	50,240	50,240		
31,135		TOTAL LIABILITIES	30,705	38,812	26	48,946	56,086	56,232		
-1,231		NET ASSETS	2,401	952	-60	-1,003	-2,955	-2,992		
		REPRESENTED BY FUNDS EMPLOYED								
-1,231		Accumulated Funds	2,401	952	-60	-1,003	-2,955	-2,992		
-1,231		TOTAL FUNDS EMPLOYED	2,401	952	-60	-1,003	-2,955	-2,992		

Department of Treasury
Cash Flow Statement
  2008-09			  2008-09	   2009-10		  2010-11	    2011-12	  2012-13		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
49,623		Cash from Government for Outputs	37,222	42,496	14	34,818	31,253	31,204		
0		User Charges	920	10	-99	10	10	10		
1,595		Interest Received	839	893	6	1,170	1,432	1,170		
1,070		Other Revenue	1,070	1,068	-	1,068	1,068	1,068		
52,288		Operating Receipts	40,051	44,467	11	37,066	33,763	33,452		
		Payments								
14,902		Related to Employees	15,099	15,398	2	15,519	15,606	15,784		
2,781		Related to Superannuation	2,481	2,650	7	2,680	2,634	2,514		
12,871		Related to Supplies and Services	11,083	12,802	16	13,095	11,953	11,836		
1,602		Borrowing Costs	846	894	6	1,170	1,432	1,170		
18,999		Grants and Purchased Services	8,998	11,633	29	3,310	846	856		
1,178		Other	1,178	4,503	282	1,179	1,179	1,179		
52,333		Operating Payments	39,685	47,880	21	36,953	33,650	33,339		
-45		NET CASH INFLOW/ (OUTFLOW) FROM OPERATING ACTIVITIES	366	-3,413	#	113	113	113		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Receipts								
0		Repayment of Home Loan Principal	0	0	-	60	120	180		
0		Investing Receipts	0	0	-	60	120	180		
		Payments								
0		Purchase of Property, Plant and Equipment and Capital Works	713	270	-62	0	0	0		
1,550		Purchase of Land and Intangibles	2,211	600	-73	0	0	0		
13,000		Other Payments	13,000	8,300	-36	10,300	7,300	300		
14,550		Investing Payments	15,924	9,170	-42	10,300	7,300	300		
-14,550		NET CASH INFLOW/ (OUTFLOW) FROM INVESTING ACTIVITIES	-15,924	-9,170	42	-10,240	-7,180	-120		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Receipts								
14,050		Capital Injection from Government	15,373	12,094	-21	10,300	7,300	300		
14,050		Financing Receipts	15,373	12,094	-21	10,300	7,300	300		
		Payments								
472		Distributions to Government	943	0	-100	60	120	180		
28		Repayment of Finance Lease	28	3	-89	0	0	0		
500		Financing Payments	971	3	-100	60	120	180		
13,550		NET CASH INFLOW/ (OUTFLOW) FROM FINANCING ACTIVITIES	14,402	12,091	-16	10,240	7,180	120		
-1,045		NET INCREASE/ (DECREASE) IN CASH HELD	-1,156	-492	57	113	113	113		
1,573		CASH AT BEGINNING OF REPORTING PERIOD	3,402	2,246	-34	1,754	1,867	1,980		
528		CASH AT THE END OF THE REPORTING PERIOD	2,246	1,754	-22	1,867	1,980	2,093		

Department of Treasury
Statement of Changes in Equity
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/09			as at 30/6/09	as at 30/6/10	   Var	as at 30/6/11	as at 30/6/12	as at 30/6/13		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
238		Opening Balance	949	2,401	153	952	-1,003	-2,955		
		Accumulated Funds								
-2,047		Operating Result for the Period	22	-2,219	#	-2,195	-2,132	-157		
		Reserves								
-2,047		Total Income And Expense For The Period	22	-2,219	#	-2,195	-2,132	-157		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
1,050		Capital Injections	2,373	4,094	73	300	300	300		
-472		Capital Distributions	-943	0	100	-60	-120	-180		
0		Inc/Dec in Net Assets due to Admin Restructure	0	-3,324	#	0	0	0		
-1,231		Closing Balance	2,401	952	-60	-1,003	-2,955	-2,992		
Notes to the Budget Statements
Significant variations are as follows:
Operating Statement
•	government payment for outputs:
•	the decrease of $12.401 million in the 2008-09 estimated outcome from the original budget is due to:
•	the rollover of funding for the Restructure Fund ($6 million), Capital Improvement Program ($3.160 million), Whole of Government — Asset Management and Capital Delivery Planning initiative ($0.930 million), Government Office Building — Project Advice initiative ($0.8 million) and the administration of the Compulsory Third Party (CTP) Insurance Scheme ($0.120 million);
•	decreased expenditure from the Restructure Fund ($2.536 million), Capital Contingency Fund ($4 million) and Territory Revenue System (TRS) upgrade ($0.250 million) due to funding not being required; and
•	decreased superannuation contributions ($0.3 million) due to a forecast under expenditure;
partially offset by:
•	the rollover of funding from 2007-08 for the Restructure Fund ($3.964 million) and for the Capital Improvements Fund ($1.731 million).
•	the increase of $5.274 million in the 2009-10 Budget from the 2008-09 estimated outcome is mainly due to:
•	increased expenditure for the Restructure Fund ($2.072 million), Capital Improvements Fund ($0.417 million), Whole of Government — Asset Management and Capital Delivery Planning initiative ($0.430 million) and the Land Rent Scheme administration ($0.1 million);
•	additional expenditure for Government Office Building — Project Advice initiative ($0.8 million), TRS upgrade ($0.250 million) and the administration of CTP Insurance Scheme ($0.240 million);
•	new funding for the grant expenditure against the Business Regulation and Competition — A Seamless National Economy National Partnership (NP) ($0.130 million);
•	new funding for the Standard Business Reporting Program NP ($0.1 million);
•	indexation ($0.317 million);
•	wage increases ($0.263 million); and
•	increased superannuation contributions ($0.130 million);
partially offset by:
•	one–off funding in 2008-09 for the National Tax Equivalent Regime compliance review ($0.055 million).
•	user charges — ACT Government:  the increase of $0.920 million in the 2008-09 estimated outcome from the original budget and the decrease of $0.910 million in the 2009-10 Budget from the 2008-09 estimated outcome mainly reflects the recovery of expenditure for the Standard Business Reporting Program directly from the Australian Tax Office in 2008-09 which ceases in 2009-10.
•	interest received:
•	the decrease of $0.706 million in the 2008-09 estimated outcome from the original budget reflects delays in the drawdown of the finance facility to Community Housing Canberra (CHC) and interest rate cuts during 2008-09; and
•	the increase of $0.160 million in the 2009-10 Budget from the 2008-09 estimated outcome reflects further draw down of the finance facility to CHC.
•	employee expenses:
•	the increase of $0.197 million in the 2008-09 estimated outcome from the original budget is mainly due to the expenditure for the Standard Business Reporting Program; and
•	the increase of $0.199 million in the 2009-10 Budget from the 2008-09 estimated outcome reflects the effect of wage increases ($0.263 million), additional funding for the Land Rent Scheme administration ($0.1 million), partially offset by decreased expenditure for the Standard Business Reporting Program ($0.097 million).
•	superannuation expenses:
•	the decrease of $0.3 million in the 2008-09 estimated outcome from the original budget is mainly due to decreased superannuation contributions to Government; and
•	the increase of $0.170 million in the 2009-10 Budget from the 2008-09 estimated outcome is mainly due to wage increases, partially offset by a decrease in notional superannuation rates.
•	supplies and services:
•	the decrease of $1.788 million in the 2008-09 estimated outcome from the original budget is mainly due to:
•	the rollover of expenditure for the Whole of Government — Asset Management and Capital Delivery Planning initiative ($0.930 million), Government Office Building — Project Advice initiative ($0.8 million) and the administration of CTP Insurance Scheme ($0.120 million) and decreased expenditure for the TRS upgrade ($0.250 million) due to a delay in the project;
partially offset by:
•	training expenses associated with the upgrade of the Oracle Financial System which cannot be capitalised ($0.262 million).
•	the increase of $1.721 million in the 2009-10 Budget from the 2008-09 estimated outcome is due to:
•	additional expenditure for the Government Office Building — Project Advice initiative ($0.8 million), TRS upgrade ($0.250 million), administration of CTP Insurance Scheme ($0.240 million), Whole of Government — Asset Management and Capital Delivery Planning initiative ($0.430 million), Whole of Government Financial Systems ($0.160 million) and increased expenses from indexation ($0.158 million);
partially offset by:
•	one-off training expenses in 2008-09 associated with the upgrade of the Oracle Financial System ($0.262 million) and one–off funding in 2008-09 for the National Tax Equivalent Regime compliance review ($0.055 million).
•	depreciation and amortisation:
•	the decrease of $1.658 million in the 2008-09 estimated outcome from the original budget mainly reflects delays associated with the finalisation of the upgrade of the Oracle Financial System; and
•	the increase of $1.886 million in the 2009-10 Budget from the 2008-09 estimated outcome mainly reflects depreciation associated with the upgrade of the Oracle Financial System.
•	borrowing costs:
•	the decrease of $0.706 million in the 2008-09 estimated outcome from the original budget reflects delays in the drawdown of the finance facility to CHC and interest rate reductions during 2008-09; and
•	and the increase of $0.154 million in the 2009-10 Budget from the 2008-09 estimated outcome reflects further draw down of the finance facility to CHC.
•	grants and purchased services:
•	the decrease of $10.001 million in the 2008-09 estimated outcome from the original budget is due to the rollover of funding for the Restructure Fund ($6 million) and for the Capital Improvements Fund ($3.160 million), decreased expenditure from the Restructure Fund ($2.536 million) and the Capital Contingency Fund ($4 million) due to the funding not being required, partially offset by the rollover of funding from 2007-08 for the Restructure Fund ($3.964 million) and for the Capital Improvements Fund ($1.731 million).
•	the increase of $2.635 million in the 2009-10 Budget from the 2008-09 estimated outcome is primarily due to increased expenditure from the Restructure Fund ($2.072 million) and the Capital Improvements Fund ($0.417 million) and expenditure against the Business Regulation and Competition — A Seamless National Economy National Partnership (NP) ($0.130 million).
Balance Sheet
•	cash and cash equivalents:
•	the increase of $1.719 million in the 2008-09 estimated outcome from the original budget is mainly due to the reassessment of cash at bank following the 2007-08 audited outcome ($1.830 million) and delay in the system upgrade expenditure associated with the Land Rent Scheme ($0.4 million), partially offset by an increase in unspent cash returned to the Government ($0.471 million).
•	the decrease of $0.492 million in the 2009-10 Budget from the 2008-09 estimated outcome is mainly due to expenditure on the Land Rent Scheme IT Upgrade ($0.4 million) and the Whole of Government Financial Systems ($0.2 million) from retained cash, partially offset by the decrease of budgeted cash distribution to Government ($0.167 million).
•	current receivables:  the decrease of $0.127 million in the 2008-09 estimated outcome from the original budget is mainly due to the reassessment of current receivables following the 2007-08 audited outcome.
•	non current receivables:  the increase of $8.240 million in the 2009-10 Budget from the 2008-09 estimated outcome reflects the amount expected to be drawn under the finance facility for CHC ($8 million) and loans expected to be provided under the new Mortgage Relief Fund initiative ($0.240 million).
•	intangibles:
•	the increase of $0.794 million in the 2008-09 estimated outcome from the original budget is mainly due to reduced accumulated depreciation resulting from delays with the finalisation of the upgrade of the Oracle Financial System ($1.597 million), partially offset by non-capitalisation of training expenses associated with the upgrade of the Oracle Financial System ($0.262 million) and delays with the TRS upgrade ($0.2 million) and the Land Rent Scheme IT upgrade ($0.4 million); and
•	the decrease of $0.395 million in the 2009-10 Budget from the 2008-09 estimated outcome is due to accumulated depreciation for the upgrade of the Oracle Financial System ($1.520 million), partially offset by the system upgrade associated with the Standard Business Reporting Program NP ($0.819 million), TRS upgrade ($0.140 million) and the Land Rent Scheme IT upgrade ($0.233 million).
•	capital works in progress:
•	the increase of $0.713 million in the 2008-09 estimated outcome from the original budget is due to the system upgrade associated with the Standard Business Reporting Program NP; and
•	the decrease of $0.713 million in the 2009-10 Budget from the 2008-09 estimated outcome is due to the finalisation of the system upgrade associated with the Standard Business Reporting Program NP and its move to intangible assets.
•	payables:  the decrease of $0.449 million in the 2008-09 estimated outcome from the original budget reflects the reassessment of payables following the 2007-08 audited outcome.
•	non current interest bearing liabilities:  the increase of $8 million in the 2009-10 Budget from the 2008-09 estimated outcome reflects the additional amount of drawdown under the finance facility for CHC.
Statement of Changes in Equity
•	capital injections:
•	the increase of $1.323 million in the 2008-09 estimated outcome from the original budget is due to the rollover of funding from 2007-08 for the Oracle Financial System ($1.523 million), partially offset by the rollover of funding from 2008-09 to 2009-10 for the TRS upgrade ($0.2 million); and
•	the increase of $1.721 million in the 2009-10 Budget from the 2008-09 estimated outcome is due to funding for the payout of the ACT Government Motor Vehicle facility with Macquarie Bank ($3.324 million), funding for the new Mortgage Relief Fund initiative ($0.3 million), rollover of funding from 2008-09 for the TRS upgrade ($0.2 million) and system upgrade associated with the Standard Business Reporting Program NP ($0.270 million), partially offset by the cessation of funding for the Oracle Financial System to achieve a single instance ($2.373 million).
•	capital distribution:
•	the increase of $0.471 million in the 2008-09 estimated outcome from the original budget and the decrease in the distribution of $0.943 million in 2009-10 Budget from the 2008-09 estimated outcome is due to the one-off distribution to the Government in 2008-09 of unspent cash from 2007-08.
•	increase/(decrease) in net assets due to administrative restructure:  the decrease of $3.324 million in the 2009-10 Budget from the 2008-09 estimated outcome is due to the payout of the ACT Government Motor Vehicle facility with Macquarie Bank.

Department of Treasury
Statement of Income and Expenses on Behalf of the Territory
  2008-09			  2008-09	   2009-10		  2010-11	    2011-12	  2012-13		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		Income								
		Revenue								
37,041		Payment for Expenses on behalf of Territory	43,655	33,472	-23	28,374	27,457	27,636		
970,133		Taxes Fees and Fines	881,802	932,733	6	992,960	1,076,928	1,148,374		
980,016		Grants from the Commonwealth	1,074,857	1,629,741	52	1,618,737	1,596,374	1,670,568		
21		Interest	21	21	-	21	21	21		
141,299		Dividend Revenue	118,262	98,569	-17	100,721	143,656	150,082		
363		Land Revenue	363	818	#	1,309	1,838	1,838		
7,993		Other Revenue	8,646	8,814	2	8,986	9,161	9,340		
2,136,866		Total Revenue	2,127,606	2,704,168	27	2,751,108	2,855,435	3,007,859		
		Gains								
0		Total Gains	0	0	-	0	0	0		
2,136,866		Total Income	2,127,606	2,704,168	27	2,751,108	2,855,435	3,007,859		
		Expenses								
10,158		Supplies and Services	10,172	10,062	-1	10,105	10,185	10,246		
26,663		Grants and Purchased Services	38,321	33,240	-13	28,141	27,224	27,403		
5,254		Other Expenses	5,254	5,271	-	5,289	5,307	5,307		
2,094,791		Transfer Expenses	2,073,859	2,655,595	28	2,707,573	2,812,719	2,964,903		
2,136,866		Total Ordinary Expenses	2,127,606	2,704,168	27	2,751,108	2,855,435	3,007,859		
0		Operating Result	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 30/6/09			as at 30/6/09	as at 30/6/10	   Var	as at 30/6/11	as at 30/6/12	as at 30/6/13		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
6,559		Cash and Cash Equivalents	16,991	16,991	-	16,991	16,991	16,991		
111,391		Receivables	86,497	84,956	-2	84,373	88,802	89,032		
117,950		Total Current Assets	103,488	101,947	-1	101,364	105,793	106,023		
		Non Current Assets								
20,400		Property, Plant and Equipment	20,400	41,400	#	63,000	85,300	107,600		
20,400		Total Non Current Assets	20,400	41,400	103	63,000	85,300	107,600		
138,350		TOTAL ASSETS	123,888	143,347	16	164,364	191,093	213,623		
		Current Liabilities								
100,966		Payables	81,757	80,345	-2	79,891	84,449	84,808		
5,726		Other Provisions	5,738	5,609	-2	5,480	5,351	5,222		
5,458		Other	10,193	10,193	-	10,193	10,193	10,193		
112,150		Total Current Liabilities	97,688	96,147	-2	95,564	99,993	100,223		
		Non Current Liabilities								
5,800		Payables	5,800	5,800	-	5,800	5,800	5,800		
5,800		Total Non Current Liabilities	5,800	5,800	-	5,800	5,800	5,800		
117,950		TOTAL LIABILITIES	103,488	101,947	-1	101,364	105,793	106,023		
20,400		NET ASSETS	20,400	41,400	103	63,000	85,300	107,600		
		REPRESENTED BY FUNDS EMPLOYED								
20,400		Accumulated Funds	20,400	41,400	103	63,000	85,300	107,600		
20,400		TOTAL FUNDS EMPLOYED	20,400	41,400	103	63,000	85,300	107,600		

Department of Treasury
Budgeted Statement of Cash Flows on Behalf of the Territory
  2008-09			  2008-09	   2009-10		  2010-11	    2011-12	  2012-13		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
37,041		Cash from Government for EBT	43,655	33,472	-23	28,374	27,457	27,636		
973,342		Taxes, Fees and Fines	909,517	904,460	-1	963,568	1,044,529	1,120,175		
0		User Charges	0	370	-	0	0	0		
21		Interest Received	21	21	-	21	21	21		
980,016		Grants Received from the Commonwealth	1,074,862	1,629,371	52	1,618,737	1,596,374	1,670,008		
15,689		Other Revenue	16,342	17,223	5	17,886	18,590	18,769		
140,209		Dividends	123,570	101,451	-18	100,535	139,953	147,246		
2,146,318		Operating Receipts	2,167,967	2,686,368	24	2,729,121	2,826,924	2,983,855		
		Payments								
10,158		Related to Supplies and Services	10,158	9,970	-2	10,055	10,067	10,067		
26,663		Grants and Purchased Services	38,321	33,240	-13	28,141	27,224	27,403		
580		Other	580	580	-	580	580	580		
2,108,917		Territory Receipts to Government	2,118,908	2,642,578	25	2,690,345	2,789,053	2,945,805		
2,146,318		Operating Payments	2,167,967	2,686,368	24	2,729,121	2,826,924	2,983,855		
0		NET CASH INFLOW/ (OUTFLOW) FROM OPERATING ACTIVITIES	0	0	-	0	0	0		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Payments								
20,400		Purchase of Property, Plant and Equipment and Capital Works	20,400	21,000	3	21,600	22,300	22,300		
20,400		Investing Payments	20,400	21,000	3	21,600	22,300	22,300		
-20,400		NET CASH INFLOW/ (OUTFLOW) FROM INVESTING ACTIVITIES	-20,400	-21,000	3	-21,600	-22,300	-22,300		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Receipts								
20,400		Capital Injection from Government	20,400	21,000	3	21,600	22,300	22,300		
20,400		Financing Receipts	20,400	21,000	3	21,600	22,300	22,300		
20,400		NET CASH INFLOW/ (OUTFLOW) FROM FINANCING ACTIVITIES	20,400	21,000	3	21,600	22,300	22,300		
0		NET INCREASE/ (DECREASE) IN CASH HELD	0	0	-	0	0	0		
6,559		CASH AT BEGINNING OF REPORTING PERIOD	16,991	16,991	-	16,991	16,991	16,991		
6,559		CASH AT THE END OF THE REPORTING PERIOD	16,991	16,991	-	16,991	16,991	16,991		

Department of Treasury
Statement of Changes in Equity on Behalf of the Territory
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/09			as at 30/6/09	as at 30/6/10	   Var	as at 30/6/11	as at 30/6/12	as at 30/6/13		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
0		Opening Balance	0	20,400	-	41,400	63,000	85,300		
		Accumulated Funds								
0		Operating Result for the Period	0	0	-	0	0	0		
		Reserves								
20,400		Capital Injections	20,400	21,000	3	21,600	22,300	22,300		
20,400		Closing Balance	20,400	41,400	#	63,000	85,300	107,600		
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 — Budget Overview.
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 — Budget Overview.
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 $6.614 million in the 2008-09 estimated outcome from the original budget is mainly a result of increased funding for the Commonwealth Government’s new First Home Owner Boost (FHOB) initiative that commenced during 2008-09 ($11.451 million), partially offset by decreased funding for the Goods and Services Tax (GST) administration expense.  As from 1 January 2009 this payment is now deducted by the Commonwealth from the Territory’s GST revenue ($5.044 million); and
•	the decrease of $10.183 million in the 2009-10 Budget from the 2008-09 estimated outcome is mainly a result of decreased funding for the FHOB initiative ($5.529 million) and decreased funding for the GST administration expense due to the full-year impact of the new payment arrangements ($5.102 million).
•	taxes, fees and fines:
•	the decrease of $88.331 million in the 2008-09 estimated outcome from the original budget reflects a reduction in the volume and value of transactions for residential and commercial conveyance, a reduced level of revenue from income tax equivalents and a decrease in general insurance revenue.  These decreases in revenue were slightly offset by increases in lease duty and shares and marketable securities; and
•	the increase of $50.931 million in the 2009-10 Budget from the 2008-09 estimated outcome is a result of the following factors:
•	the expected growth of the payroll tax base ($16.077 million);
•	increases in general rates ($10.519 million) and fire and emergency services levy ($1.365 million);
•	increases in land tax ($9.965 million);
•	increases in residential conveyance ($13.142 million);
•	increases in commercial conveyance ($11.262 million); and
•	an increase in income tax equivalent revenue ($4.118 million).
partially offset by:
•	a decrease in shares and marketable securities ($11 million); and
•	the abolition of duty on leases ($7.829 million).
•	grants from the Commonwealth:
•	the increase of $94.841 million in the 2008-09 estimated outcome from the original budget is mainly due to a partial impact of new grants received under the new framework for Federal Financial Relations implemented by COAG during 2008-09, partially offset by a decrease in the GST Revenue Grant ($55.6 million); and
•	the increase of $554.884 million in the 2009-10 Budget from the 2008-09 estimated outcome is mainly due to the full impact of new grants received under the new COAG framework implemented during 2008-09 and increases in the GST Revenue Grant ($36.6 million).
•	dividend revenue:
•	the decrease of $23.037 million in the 2008-09 estimated outcome from the original budget is mainly due to the decrease in dividends from ACTEW ($7.032 million), Land Development Agency ($15.226 million), ACTTAB ($0.577 million) and General Government Sector ($0.202 million); and
•	the decrease of $19.693 million in the 2009-10 Budget from the 2008-09 estimated outcome is due to lower dividend revenue from the Land Development Agency ($5.081 million), ACTEW ($14.306 million) and ACTTAB ($0.287 million).
•	land revenue:  the increase of $0.455 million in the 2009-10 Budget from the 2008-09 estimated outcome is due to rent received from an increased number of properties under the Land Rent Scheme.
•	other revenue:  the increase of $0.653 million in the 2008-09 estimated outcome from the original budget and the increase of $0.168 million in the 2009-10 Budget from the 2008-09 estimated outcome is due to increased payments from ACTTAB relating to the Racing Development Fund.
•	supplies and services:  the decrease of $0.110 million in the 2009-10 Budget from the 2008-09 estimated outcome is due to reduced GST administration expenses paid to the Commonwealth.
•	grants and purchased services:  the increase of $11.658 in the 2008-09 estimated outcome from the original budget and the decrease of $5.081 million in the 2009-10 Budget from the 2008-09 estimated outcome mainly reflects the Commonwealth Government’s First Home Owner’s Boost initiative that commenced during 2008-09.
•	transfer expenses:  the decrease of $20.932 million in the 2008-09 estimated outcome from the original budget and the increase of $581.736 million in the 2009-10 Budget from the 2008-09 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 increase of $10.432 million in the 2008-09 estimated outcome from the original budget is due to the timing of when cash is transferred to the Territory Banking Account.
•	current receivables:  the decrease of $24.894 million in the 2008-09 estimated outcome from the original budget and the decrease of $1.541 million in the 2009-10 Budget from the 2008-09 estimated outcome largely reflects changes to estimates at year end for dividends, income tax equivalents and tax accruals.
•	property, plant and equipment:  the increase of $21 million in the 2009-10 Budget from the 2008-09 estimated outcome is due to the increased land held under the Land Rent Scheme.
•	payables:  the decrease of $19.209 million in the 2008-09 estimated outcome from the original budget and the decrease of $1.412 million in the 2009-10 Budget from the 2008-09 estimated outcome relates to the accrued transfer of revenue to the Territory Banking Account.
•	other current provisions:  the decrease of $0.129 million in the 2009-10 Budget from the 2008-09 estimated outcome is due to a reassessment of the provision for refund of taxes.
•	other current liabilities:  the increase of $4.735 million in the 2008-09 estimated outcome from the original budget is due to a reassessment of revenue received in advance following the 2007-08 audited outcome.