Shared Services Centre
Objectives
The Shared Services Centre will provide Information and Communication Technology (ICT), Procurement, Publishing and Records Management services, as well as tactical and transactional Human Resource and Finance services to all ACT Government departments and agencies from 1 February 2007.
The centre will consolidate these traditional back office functions to achieve economies of scale, standardised and streamlined processes and an overall reduction in costs.  This will also allow agencies to focus on their core business of providing services to the community
The Shared Services Centre will achieve its objectives by working closely with its clients to identify appropriate services, agree on service standards, and agree on mechanisms for delivery that are efficient and cost effective.
An initiative will be implemented to allow for the redesign of shared services business processes, as well as investing in communication and change management to facilitate the establishment of the Shared Services Centre.
2006-07 Priorities 
Strategic and operational issues to be pursued in 2006‑07 include:
•	mapping and redesigning key tactical and transactional human resource and financial service processes;
•	designing the Shared Services organisation based on these processes; 
•	sourcing and fitting out accommodation for the Shared Services Centre;
•	transferring staff from corporate service functions within agencies into the Shared Services Centre; and
•	launching the Shared Services Centre on 1 February 2007.
Business and Corporate Strategies
The Shared Services Centre will develop comprehensive governance, risk management, and regular reporting and accountability frameworks.  The Shared Services Centre’s practices shall satisfy the requirements of the Financial Management Act 1996 and Accounting Standards.

Estimated Employment Level 
	2005‑06
Est. Outcome	2006‑07
Budget	
			
Staffing (Headcount) 1	303	919	
Note:
1.	2005‑06 represents InTACT permanent staff only.  The increase in 2006‑07 reflects the transfer to the Shared Services Centre of information technology, procurement, human resources and finance staff from ACT Government agencies.  Contractors are not included.

Output Classes
	Total Cost1	Government Payment for Outputs	
	2005‑06
Est. Outcome
$’000 	2006‑07
Budget
$’000	2005‑06
Est. Outcome
$’000	2006‑07
Budget
$’000	
Output Class 1: InTACT	 83,800	  103,070	  2,580	  7,589	
Output 1.1: InTACT	  83,800	  103,070	 2,580	  7,589	
Note:
1.	Total cost includes depreciation and amortisation of $17.594 million in 2005‑06 and $18.210 million in 2006‑07.
Output Description
InTACT is a shared ICT service organisation providing a complete range of ICT services to the ACT Government, including infrastructure, applications support and development, ICT policy and ICT project services.
InTACT will provide for:
•	services to approximately 56 individual government agencies as outlined in InTACT’s catalogue of services and affirmed through various Service Level and Support Agreements;
•	management of the government data network;
•	24 hour support, on a fee-for-service basis;
•	assistance to agencies on IT security;
•	management of the whole of government communications network; 
•	business systems support; and
•	general service and help desk functions.

Output Classes cont.
	Total Cost1	Government Payment for Outputs	
	2005‑06
Est. Outcome
$’000 	2006‑07
Budget
$’000	2005‑06
Est. Outcome
$’000	2006‑07
Budget
$’000	
Output Class 2:
Procurement Support Services	n/a	10,229	n/a	2,206	
Output 2.1: 
Procurement Support Services2,3	   n/a	  10,229	   n/a	  2,206	
Notes:
1.	Total cost includes depreciation of $0.040 million in 2006‑07.
2.	This output was previously reported as Procurement Support Services in the Department of Treasury in the 2005‑06 Budget Papers.
3.	Procurement services in ACT Government agencies will be consolidated into the Shared Services Centre from 1 July 2006.    
Output Description
Includes procurement policy; buyers and sellers information services (basis), including on‑line procurement services; business opportunities, supplier notification of tenders and contracts, support to ACT Government purchasing officers; and the implementation of construction industry reforms, including pre-qualification of suppliers and the provision of risk management services to ACT Government agencies.  
Procurement Support Services will provide for:
•	whole of government procurement support services;
•	the buyers and sellers information service (basis);
•	contracts register;
•	e-Tendering;
•	supplier pre-qualification arrangements;
•	notifying 2,000 business opportunities to local suppliers; and 
•	commencement of 400 client requested projects. 

Output Classes cont.
	Total Cost1	Government Payment for Outputs	
	2005‑06
Est. Outcome
$’000 	2006‑07
Budget
$’000	2005‑06
Est. Outcome
$’000	2006‑07
Budget
$’000	
Output Class 3:
Human Resources Services	n/a	8,418	n/a	1,503	
Output 3.1:  
Human Resources Services2	    n/a	  8,418	   n/a	  1,503	
Notes:
1.	Total cost includes depreciation of $0.160 million in 2006‑07.
2.	Human resources in ACT Government agencies will be consolidated into the Shared Services Centre from 1 February 2007.  Therefore, the 2006‑07 figures represent the period from 1 February 2007 to 30 June 2007.  
Output Description
Includes the provision of all tactical and transactional human resource services to departments and agencies.  Human Resources will provide for:
•	payroll, including tax payments and salary packaging;
•	recruitment, selection and appointment;
•	policy and guidance on performance management;
•	reporting, advice and guidance on workers’ compensation;
•	statutory and management reporting; and
•	organisational data management.

Output Classes cont.
	Total Cost1	Government Payment for Outputs	
	2005‑06
Est. Outcome
$’000 	2006‑07
Budget
$’000	2005‑06
Est. Outcome
$’000	2006‑07
Budget
$’000	
Output Class 4: Finance Services	n/a	9,826	n/a	1,794	
Output 4.1: Finance Services2	    n/a	  9,826	   n/a	  1,794	
Notes:
1.	Total cost includes depreciation of $0.168 million in 2006‑07.
2.	Finance services in ACT Government agencies will be consolidated into the Shared Services Centre from 1 February 2007.  Therefore, the 2006‑07 figures represent the period from 1 February 2007 to 30 June 2007.  
Output Description 
Includes the provision of all tactical and transactional finance services to departments and agencies.  Finance Services will provide for:
•	accounts payable and accounts receivable functions;
•	general ledger;
•	cash flow management and bank reconciliations;
•	tax payments including returns and advice;
•	statutory and management reporting;
•	financial management;
•	records management; and
•	publishing services.
  
Accountability Indicators
	2005‑06
Targets	2005‑06
Est. Outcome	2006‑07
Target	
Output Class 1: InTACT	
Output 1.1: InTACT	
				
a.	Costs within peer organisations’ costs, as benchmarked by an independent organisation	Within 10%	Within 10%	Within 10%	
				
b.	E-mail availability across government during core business hours1	98%	98%	98%	
				
c.	Service requests made via the Service Desk are responded to within Service Level Agreements timeframes 	98%	80%	98%	
				
d.	Service requests made via the Service Desk are resolved within Service Level Agreements timeframes 	80%	76%	80%	
				
Note:
1.	Established by determining up-time of each core component of the network across core business hours (Monday to Friday 7.30am to 6pm). 

	2005‑06
Targets	2005‑06
Est. Outcome	2006‑07
Target	
Output Class 2: Procurement Support Services	
Output 2.1: Procurement Support Services1	
				
a.	Proportion of Government funded annual Capital Works program supported with project procurement services	60%	62%	80%	
				
b.	Quality Management Systems Compliance with ISO9001: 2000 – number of Category 1 non-conformance findings	< 2	< 2	< 2	
				
Note:
1.	This output and associated accountability indicators were previously reported under Procurement Support Services in the Department of Treasury in the 2005‑06 Budget papers.  The 2005‑06 targets and estimated outcome are identified for comparative purposes only.

Accountability Indicators cont.
	2005‑06
Targets	2005‑06
Est. Outcome	2006‑07
Target	
Output Class 3: Human Resources Services	
Output 3.1: Human Resources Services1	
				
a.	Level of satisfaction by Departmental Chief Executives with management of the shared services implementation2	n/a	n/a	80%	
				
Note:
1.	Additional indicators will be developed as part of the Shared Services Centre establishment during 2006‑07.
2.	New measure.

	2005‑06
Targets	2005‑06
Est. Outcome	2006‑07
Target	
Output Class 4: Finance Services	
Output 4.1: Finance Services1	
				
a.	Level of satisfaction by Departmental Chief Executives with management of the shared services implementation2	n/a	n/a	80%	
				
Note:
1.	Additional indicators will be developed as part of the Shared Services Centre establishment during 2006‑07.
2.	New measure.

 Changes to Appropriation
Changes to Appropriation - Departmental						
 	2005‑06	2006‑07	2007-08	2008-09	2009-10	
Government Payment for Outputs	Est. Outc.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2005‑06 Budget	2,341	1,224	1,266	1,289	1,289	
						
2006‑07 Budget Policy Adjustments						
Technology Costs	 - 	1,200	1,200	 - 	 - 	
Change Management	 - 	1,000	500	 - 	 - 	
Reducing General Procurement	 - 	(385)	(790)	(810)	(829)	
Reducing Motor Vehicle Expenses	 - 	(40)	(70)	(82)	(83)	
Rationalising Boards and Committees	 - 	(35)	(70)	(70)	(70)	
Rationalising Accommodation	 - 	(47)	(76)	(76)	(76)	
Consolidating Information Technology Services	239	3,210	218	225	233	
Consolidating Human Resource and Finance Functions	 - 	1,197	1,524	(297)	(367)	
Consolidating Procurement Services	 - 	1,997	1,509	1,616	1,716	
Transfer of Records Management from DTMS	 - 	257	623	624	627	
Transfer of Publications from DTMS	 - 	214	527	513	522	
2006‑07 Budget Technical Adjustments						
Revised Indexation Parameters	 - 	 - 	 - 	 - 	23	
Increased Notional Superannuation Contribution Rates	 - 	3,300	4,353	4,303	4,350	
						
	2,580	13,092	10,714	7,235	7,335	

Changes to Appropriation - Departmental						
 	2005‑06	2006‑07	2007-08	2008-09	2009-10	
Capital Injections	Est. Outc.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2005‑06 Budget	5,640	2,193	1,000	1,000	1,000	
						
2006‑07 Budget Policy Adjustments						
Accommodation Consolidation	 - 	5,000	 - 	 - 	 - 	
2006‑07 Budget Technical Adjustments						
Rollover - Capital Works	(3,032)	3,032	 - 	 - 	 - 	
						
2006‑07 Budget	2,608	10,225	1,000	1,000	1,000	

2006‑07 Capital Works Program
Departmental
 	Estimated	Estimated	2006‑07	2007-08	2008-09	Expected	
	Total	Expenditure	Financing	Financing	Financing	Completion	
	Cost	Pre 2006‑07				Date	
 	$’000	$’000	$’000	$’000	$’000	 	
							
New Capital Works							
Fit out of Shared Services	5,000	-	5,000	-	-	Jun 2008	
							
Total New Capital Works	5,000	-	5, 000	-	-		
 						 	
Works in Progress							
							
Private Data Network Extension to Hume	1,530	30	1,500	-	-	Dec 2006	
Data Communications Centres 	2,975	250	2,725	-	-	Jun 2007	
Sustainable Infrastructure1	2,315	1,915	400	-	-	Jun 2007	

Total Works in Progress	6,820	2,195	4,625	-	-		
							
Total Departmental Capital Works	11,820	2,195	9,625	-	-		
Note:
1.	Project was initially treated as capital, however the treatment has been changed to correctly reflect these payments as operating expenses.  Matching GPO of $0.4 million, rather than capital injection, has been recognised in 2006‑07.

Shared Services Centre	
Operating Statement	
  2005‑06			  2005‑06	   2006‑07		  2007-08	  2008-09	  2009-10		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
2,341		Government Payment for Outputs	2,580	13,092	407	10,714	7,235	7,335		
263		User Charges - Non ACT Government	263	321	22	407	443	457		
65,775		User Charges - ACT Government	74,703	111,730	50	134,332	137,242	140,138		
1,088		Interest	1,774	0	-100	0	0	0		
100		Other Revenue	100	155	55	235	239	242		
200		Resources Received free of charge	200	0	-100	0	0	0		
69,767		Total Revenue	79,620	125,298	57	145,688	145,159	148,172		
		Gains								
0		Total Gains	0	0	-	0	0	0		
69,767		Total Income	79,620	125,298	57	145,688	145,159	148,172		
		Expenses								
15,987		Employee Expenses	16,652	46,086	177	60,320	59,731	60,399		
1,850		Superannuation Expenses	2,828	10,378	267	13,547	13,428	13,596		
37,807		Supplies and Services	45,136	55,140	22	59,179	59,138	60,617		
17,619		Depreciation and Amortisation	17,594	18,578	6	19,080	19,034	19,034		
1,487		Borrowing Costs	1,590	961	-40	481	0	0		
0		Grants and Purchased Services	0	400	#	0	0	0		
74,750		Total Ordinary Expenses	83,800	131,543	57	152,607	151,331	153,646		
-4,983		Operating Result	-4,180	-6,245	-49	-6,919	-6,172	-5,474		

Shared Services Centre	
Balance Sheet	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/06			as at 30/6/06	as at 30/6/07	   Var	as at 30/6/08	as at 30/6/09	as at 30/6/10		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
137		Cash	730	1,815	149	2,017	2,335	2,853		
8,017		Receivables	7,102	11,651	64	11,510	11,599	11,686		
21,113		Investments	25,718	39,748	55	32,163	28,893	25,999		
45		Inventories	41	41	-	41	41	41		
400		Other	3,210	3,180	-1	3,250	3,320	3,390		
29,712		Total Current Assets	36,801	56,435	53	48,981	46,188	43,969		
		Non Current Assets								
42,015		Property, Plant and Equipment	31,099	43,375	39	42,855	38,281	36,377		
12		Other	21	21	-	21	21	21		
42,027		Total Non Current Assets	31,120	43,396	39	42,876	38,302	36,398		
71,739		TOTAL ASSETS	67,921	99,831	47	91,857	84,490	80,367		
		Current Liabilities								
7,642		Payables	7,034	16,458	134	16,931	17,280	17,601		
7,522		Finance Leases	4,580	2,557	-44	2,556	0	0		
1,737		Employee Benefits	3,020	7,966	164	7,972	7,980	7,988		
896		Other	2,858	22,965	704	22,965	22,965	22,965		
17,797		Total Current Liabilities	17,492	49,946	186	50,424	48,225	48,554		
		Non Current Liabilities								
3,067		Finance Leases	3,791	2,556	-33	0	0	0		
1,366		Employee Benefits	2,782	7,902	184	7,925	7,929	7,951		
4,433		Total Non Current Liabilities	6,573	10,458	59	7,925	7,929	7,951		
22,230		TOTAL LIABILITIES	24,065	60,404	151	58,349	56,154	56,505		
49,509		NET ASSETS	43,856	39,427	-10	33,508	28,336	23,862		
		REPRESENTED BY FUNDS EMPLOYED								
49,509		Accumulated Funds	43,856	39,427	-10	33,508	28,336	23,862		
49,509		TOTAL FUNDS EMPLOYED	43,856	39,427	-10	33,508	28,336	23,862		

Shared Services Centre	
Cash Flow Statement	
  2005‑06			  2005‑06	   2006‑07		  2007-08	  2008-09	  2009-10		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
2,341		Cash from Government for Outputs	2,580	13,092	407	10,714	7,235	7,335		
66,534		User Charges	75,462	196,699	161	219,523	222,473	225,382		
1,088		Interest Received	1,774	0	-100	0	0	0		
11,673		Other Revenue	12,939	33,470	159	33,196	33,380	33,771		
81,636		Operating Receipts	92,755	243,261	162	263,433	263,088	266,488		
		Payments								
17,819		Related to Employees	19,560	56,461	189	73,838	73,147	73,965		
37,844		Related to Supplies and Services	44,172	55,346	25	59,307	59,397	60,902		
1,487		Borrowing Costs	1,590	961	-40	481	0	0		
0		Grants and Purchased Services	0	400	#	0	0	0		
11,671		Other	12,937	117,558	809	117,302	117,480	117,866		
68,821		Operating Payments	78,259	230,726	195	250,928	250,024	252,733		
12,815		NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	14,496	12,535	-14	12,505	13,064	13,755		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Receipts								
100		Proceeds from Sale of Property, Plant & Equipment	100	100	-	100	100	100		
100		Investing Receipts	100	100	-	100	100	100		
		Payments								
10,140		Purchase of Property, Plant and Equipment	7,480	26,225	251	17,000	17,116	17,231		
10,140		Investing Payments	7,480	26,225	251	17,000	17,116	17,231		
-10,040		NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES	-7,380	-26,125	-254	-16,900	-17,016	-17,131		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Receipts								
5,640		Capital Injection from Government	2,608	10,225	292	1,000	1,000	1,000		
0		Receipt of Transferred Cash Balances	195	26,457	#	0	0	0		
5,640		Financing Receipts	2,803	36,682	#	1,000	1,000	1,000		
		Payments								
0		Distributions to Government	1,000	0	-100	0	0	0		
0		Repayment of Advance	1,000	0	-100	0	0	0		
11,924		Repayment of Finance Lease	11,924	7,977	-33	3,988	0	0		
11,924		Financing Payments	13,924	7,977	-43	3,988	0	0		
-6,284		NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES	-11,121	28,705	358	-2,988	1,000	1,000		
-3,509		NET INCREASE/(DECREASE) IN CASH HELD	-4,005	15,115	477	-7,383	-2,952	-2,376		
24,759		CASH AT BEGINNING OF REPORTING PERIOD	30,454	26,449	-13	41,564	34,181	31,229		
21,250		CASH AT THE END OF THE REPORTING PERIOD	26,449	41,564	57	34,181	31,229	28,853		

Shared Services Centre	
Statement of Changes in Equity	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/06			as at 30/6/06	as at 30/6/07	   Var	as at 30/6/08	as at 30/6/09	as at 30/6/10		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
48,852		Opening Balance	48,886	43,856	-10	39,427	33,508	28,336		
		Accumulated Funds								
-4,983		Operating Result for the Period	-4,180	-6,245	-49	-6,919	-6,172	-5,474		
		Reserves								
-4,983		Total Income And Expense For The Period	-4,180	-6,245	-49	-6,919	-6,172	-5,474		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
5,640		Capital Injections	2,608	10,225	292	1,000	1,000	1,000		
0		Capital (Distributions)	-1,000	0	100	0	0	0		
0		Inc/Dec in Net Assets due to Admin Restructure	-2,458	-8,409	-242	0	0	0		
49,509		Closing Balance	43,856	39,427	-10	33,508	28,336	23,862		
Notes to the Budget Statements
Significant variations are as follows:
Operating Statement
•	government payment for outputs:  
–	the increase of $0.239 million in the 2005‑06 estimated outcome from the original budget is due to the transfer of ACT Information Management (ACTIM) functions from the Chief Minister’s Department as part of the ICT reforms announced during 2005‑06; and
–	the increase of $10.512 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is mainly due to:
•	the impact of the ICT reforms announced during 2005‑06 ($2.971 million); 
•	the impact of consolidating procurement services ($1.997 million), human resource and finance functions ($1.197 million), records management ($0.257 million) and publications ($0.214 million); 
•	the provision for technology ($1.2 million) and change management costs ($1 million)  associated with establishing the Shared Services Centre; and
•	increased notional superannuation contribution rates ($3.3 million); 
offset by
•	a reduction in general procurement ($0.385 million), rationalising boards and committees ($0.035 million), reduction in motor vehicle expenses ($0.040 million) and rationalising accommodation ($0.047 million); and
•	a reduction in funding for previous years initiatives’ ($1.117 million), including the Private Data Network.
•	user charges – ACT Government:
–	the increase of $8.928 million in the 2005‑06 estimated outcome from the original budget is due to the recovery of costs associated with the transfer of ICT business systems and staff from agencies (excluding DET and CIT) effective from 1 January 2006, in line with the ICT reforms announced during 2005‑06; and
–	the increase of $37.027 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to:
•	the full year effect of the recovery of costs associated with the transfer of ICT business systems and staff ($10.503 million); 
•	the recovery of costs related to the transfer of the DET and CIT business systems and staff from 1 July 2006 ($10.218 million);
•	the impact of consolidating procurement services ($8.338 million), human resource and finance functions ($12.282 million), records management ($1.223 million) and publications ($0.963 million); and
•	the inclusion of mobile phone billing ($1.164 million);
offset by
•	a reduction in charges to agencies for ICT services in line with expected savings ($9.726 million).
•	interest:
–	the increase of $0.686 million in the 2005‑06 estimated outcome from the original budget is due to higher investment balances due to the timing of receipts and payments in 2005‑06; and
–	the decrease of $1.774 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to the reduction in interest from investments as part of cash management reforms.  
•	employee and superannuation expenses:
–	the increase of $1.643 million in the 2005‑06 estimated outcome from the original budget is due to the transfer of ICT business system staff costs ($4.988 million) effective from 1 January 2006, partially offset by permanent staffing levels not reaching budgeted expectations ($3.345 million); and
–	the increase of $36.984 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to the expected increase in permanent staff following:
•	the full year effect of transferring ICT business system staff ($10.251 million);
•	impact of consolidating procurement services ($7.607 million), human resource and finance functions ($10.776 million), records management ($0.634 million) and publications ($0.255 million) staff and associated costs; 
•	increased notional superannuation contribution rates ($3.3 million); and
•	a projected increase in staffing levels associated with filling vacant positions ($3.345 million).
•	supplies and services:
–	the increase of $7.329 million in the 2005‑06 estimated outcome from the original budget is due to the transfer of ICT business system costs ($4.278 million), and increases in general administrative and contractor costs due to permanent staffing levels not reaching budgeted expectations ($4.051 million), offset by reduced costs associated with new software licensing and server maintenance arrangements ($1 million); and
–	the increase of $10.004 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is mainly due to: 
•	the full year effect of transferring ICT business system costs ($10.351 million);
•	the impact of consolidating procurement services ($1.973 million), human resource and finance functions ($2.703 million), records management ($0.994 million) and publications ($0.925 million) staff and associated costs; and
•	technology ($1.2 million) and change management ($1 million) costs associated with establishing the Shared Service Centre;
offset by
•	expected ICT savings as a result of the consolidation of functions ($7.164 million), reduced general procurement ($0.385 million), rationalising boards and committees ($0.035 million), reduction in motor vehicle expenses ($0.040 million) and rationalising accommodation ($0.047 million).
•	borrowing costs:  the decrease of $0.629 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to the decision to purchase ICT equipment outright rather than leasing. 
Balance Sheet
•	cash and investments:  
–	the increase of $5.198 million in the 2005‑06 estimated outcome from the original budget is due to a better than expected 2004‑05 audited outcome and the expectation that a significant amount of fourth quarter invoices to be issued in early June will be paid by 30 June 2006; and
–	the increase of $15.115 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to the transfer of Procurement Support Services cash balances from the Department of Treasury. 
•	receivables:  the increase of $4.549 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to the transfer of Procurement Support Services balances from the Department of Treasury. 
•	other current assets:  the increase of $2.810 million in the 2005‑06 estimated outcome from the original budget is due to the expected prepayment of the Microsoft Licence Fees in June 2006. 
•	
property, plant and equipment:
–	the decrease of $10.916 million in the 2005‑06 estimated outcome from the original budget is mainly due to the timing of significant asset purchases in 2005‑06 and the deferral of some capital works projects to 2006‑07, including the new Private Data Network to Hume and refurbishment of data centres; and
–	the increase of $12.276 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to the deferral of some capital works projects mentioned above, and new 2006‑07 capital works including the Shared Services Centre fit‑out ($5 million).
•	total liabilities:  
–	the increase of $1.835 million in the 2005‑06 estimated outcome from the original budget is mainly due to the transfer of ICT business system staff and their associated employee benefits; and 
–	the increase of $36.339 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to:
•	the transfer of employee benefits into the Shared Services Centre as a result of the consolidation of procurement, human resource, finance, records management and publication functions;
•	the transfer of DET and CIT ICT business system staff and their employee benefits; and 
•	the transfer of liabilities associated with Procurement Support Services’ management of capital projects.
Cash Flow Statement
The major variations within the Cash Flow statement in the 2005‑06 estimated outcome from the original budget and the 2006‑07 Budget are explained within the Operating Statement above.
Other significant variations relate to:
•	user charges:  the increase of $121.237 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to reasons previously identified and the inclusion of capital works receipts which flow through Procurement Support Services ($84.144 million).
•	other revenue:  the increase of $20.531 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is mainly due to the GST relating to increased user charges associated with the new Shared Services Centre. 
•	other payments:  the increase of $104.621 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is mainly due to the effect of the inclusion of capital works expenditure which flow through Procurement Support Services ($84.144 million) and the GST associated with the new Shared Services Centre.  
•	capital injection from Government: 
–	the decrease of $3.032 million in the 2005‑06 estimated outcome from the original budget is due to the deferral of the Private Data Network Extension to Hume and the refurbishment of data centres to 2006‑07; and
–	the increase of $7.617 million in the 2006‑07 Budget from the 2005‑06 estimated outcomes is mainly due the above mentioned deferrals ($3.032 million), and the Shared Services Centre fit-out ($5 million).
•	receipt of transferred cash balances:  the increase of $26.262m in the 2006‑07 Budget from the 2005‑06 estimated outcome is mainly due to the transfer of Procurement Support Services cash balances to the Shared Services Centre effective from 1 July 2006.  
Statement of Changes in Equity
•	Increase/(Decrease) in Net Assets due to Admin Restructure: 
–	the decrease of $2.458 million in the 2005‑06 estimated outcome from the original budget is mainly due to the transfer of ICT business system staff and their associated employee benefits; and 
–	the decrease of $5.951 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to the transfer of employee benefits into the Shared Services Centre as a result of the consolidation of procurement, human resources, finance, records management and publication functions, and the transfer of DET and CIT ICT business system staff’s employee benefits.

InTACT	
Operating Statement	
  2005‑06			  2005‑06	   2006‑07		  2007-08	  2008-09	  2009-10		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
2,341		Government Payment for Outputs	2,580	7,589	194	4,107	2,885	2,924		
263		User Charges - Non ACT Government	263	263	-	263	295	302		
65,775		User Charges - ACT Government	74,703	88,924	19	90,265	92,390	94,651		
1,088		Interest	1,774	0	-100	0	0	0		
100		Other Revenue	100	100	-	100	100	100		
200		Resources Received free of charge	200	0	-100	0	0	0		
69,767		Total Revenue	79,620	96,876	22	94,735	95,670	97,977		
		Gains								
0		Total Gains	0	0	-	0	0	0		
69,767		Total Income	79,620	96,876	22	94,735	95,670	97,977		
		Expenses								
15,987		Employee Expenses	16,652	29,565	78	29,918	30,265	30,617		
1,850		Superannuation Expenses	2,828	6,656	135	6,743	6,830	6,920		
37,807		Supplies and Services	45,136	47,678	6	45,836	46,235	47,430		
17,619		Depreciation and Amortisation	17,594	18,210	4	18,130	18,084	18,084		
1,487		Borrowing Costs	1,590	961	-40	481	0	0		
74,750		Total Ordinary Expenses	83,800	103,070	23	101,108	101,414	103,051		
-4,983		Operating Result	-4,180	-6,194	-48	-6,373	-5,744	-5,074		

Procurement Support Services	
Operating Statement	
  2005‑06			  2005‑06	   2006‑07		  2007-08	  2008-09	  2009-10		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
0		Government Payment for Outputs	0	2,206	#	1,585	1,643	1,745		
0		User Charges - ACT Government	0	8,338	#	8,550	8,615	8,692		
0		Total Revenue	0	10,544	#	10,135	10,258	10,437		
		Gains								
0		Total Gains	0	0	-	0	0	0		
0		Total Income	0	10,544	#	10,135	10,258	10,437		
		Expenses								
0		Employee Expenses	0	6,353	#	6,447	6,542	6,606		
0		Superannuation Expenses	0	1,465	#	1,487	1,510	1,531		
0		Supplies and Services	0	1,971	#	1,821	1,824	1,916		
0		Depreciation and Amortisation	0	40	#	100	100	100		
0		Grants and Purchased Services	0	400	#	0	0	0		
0		Total Ordinary Expenses	0	10,229	#	9,855	9,976	10,153		
0		Operating Result	0	315	#	280	282	284		

Human Resources Services	
Operating Statement	
  2005‑06			  2005‑06	   2006‑07		  2007-08	  2008-09	  2009-10		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
0		Government Payment for Outputs	0	1,503	#	2,083	838	810		
0		User Charges - ACT Government	0	6,755	#	16,462	16,713	16,969		
0		Total Revenue	0	8,258	#	18,545	17,551	17,779		
		Gains								
0		Total Gains	0	0	-	0	0	0		
0		Total Income	0	8,258	#	18,545	17,551	17,779		
		Expenses								
0		Employee Expenses	0	5,187	#	12,187	11,616	11,741		
0		Superannuation Expenses	0	1,147	#	2,696	2,570	2,598		
0		Supplies and Services	0	1,924	#	3,662	3,365	3,440		
0		Depreciation and Amortisation	0	160	#	400	400	400		
0		Total Ordinary Expenses	0	8,418	#	18,945	17,951	18,179		
0		Operating Result	0	-160	#	-400	-400	-400		

Finance Services	
Operating Statement	
  2005‑06			  2005‑06	   2006‑07		  2007-08	  2008-09	  2009-10		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
0		Government Payment for Outputs	0	1,794	#	2,939	1,869	1,856		
0		User Charges - Non ACT Government	0	58	#	144	148	155		
0		User Charges - ACT Government	0	7,713	#	19,055	19,524	19,826		
0		Other Revenue	0	55	#	135	139	142		
0		Total Revenue	0	9,620	#	22,273	21,680	21,979		
		Gains								
0		Total Gains	0	0	-	0	0	0		
0		Total Income	0	9,620	#	22,273	21,680	21,979		
		Expenses								
0		Employee Expenses	0	4,981	#	11,768	11,308	11,435		
0		Superannuation Expenses	0	1,110	#	2,621	2,518	2,547		
0		Supplies and Services	0	3,567	#	7,860	7,714	7,831		
0		Depreciation and Amortisation	0	168	#	450	450	450		
0		Total Ordinary Expenses	0	9,826	#	22,699	21,990	22,263		
0		Operating Result	0	-206	#	-426	-310	-284