ACTEW CORPORATION 
Objectives
ACTEW Corporation aims to prudently manage public assets to provide sustainable water and sewerage services in the ACT region and to maximise the return on its investments in water, sewerage, energy and communication assets.
2006-07 Priorities
Strategic and operational issues to be pursued in 2006‑07 include:
•	optimising the quantity of water transferred via the Cotter Googong Bulk Transfer Scheme;
•	developing water supply concepts based on the extraction of water from the Murrumbidgee River, as an additional water source;
•	reviewing, monitoring and reporting on water supply planning assumptions, including undertaking additional technical analysis on further water storage options;
•	continuing to implement Think Water, Act Water measures to reduce per capita consumption of mains water by 12 per cent by 2013 and 25 per cent by 2023;
•	contributing to a satisfactory outcome for the Murray Darling Basin water cap for the ACT;
•	seeking to achieve an integrated regional approach to ACT/NSW cross-border water supply and management;
•	liaising with the Environmental Protection Authority regarding the monitoring of the newly introduced environmental flow levels;
•	monitoring and managing implications of the AGL/Alinta demerger to ensure a satisfactory outcome for our shareholders and customers;
•	exploring opportunities to maximise the efficiency of the existing wastewater system and continuing to implement sustainable water recycling schemes in existing areas and new developments;
•	seeking to achieve appropriate catchment management governance and management arrangements in the Cotter, Googong and Murrumbidgee River catchment areas;
•	continuing the urgent rehabilitation of the Lower Cotter Catchment to improve water quality in the reservoir; and
•	continuing to contribute to the community by supporting organisations, events and initiatives that benefit the Territory.

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	 - 	 - 	 - 	 - 	 - 	
						
2006-07 Budget Policy Adjustments						
						
Commonwealth SPP - Assistance for Water and Sewerage	 - 	9,444	9,624	9,808	10,014	
						
2006-07 Budget	 - 	9,444	9,624	9,808	10,014	

ACTEW Corporation	
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	9,444	#	9,624	9,808	10,014		
123,491		User Charges - Non ACT Government	131,144	157,059	20	172,463	180,579	188,946		
28,679		User Charges - ACT Government	29,078	22,744	-22	24,732	26,052	27,219		
1,508		Interest	2,058	2,015	-2	936	836	1,025		
17,776		Other Revenue	8,389	7,865	-6	9,584	10,227	12,587		
171,454		Total Revenue	170,669	199,127	17	217,339	227,502	239,791		
		Gains								
0		Total Gains	0	0	-	0	0	0		
171,454		Total Income	170,669	202,622	19	217,339	227,502	239,791		
		Expenses								
2,654		Employee Expenses	2,910	3,093	6	3,215	3,340	3,470		
162		Superannuation Expenses	256	279	9	290	302	315		
3,997		Supplies and Services	3,897	5,417	39	6,022	5,324	5,314		
23,318		Depreciation and Amortisation	22,110	23,102	4	24,186	25,490	26,793		
24,214		Borrowing Costs	24,214	24,873	3	24,522	25,813	28,119		
77,285		Cost of Goods Sold	82,810	102,640	24	100,537	102,389	105,318		
0		Other Expenses	0	3,242	#	6,724	6,973	7,231		
131,630		Total Ordinary Expenses	136,197	162,646	19	165,496	169,631	176,560		
45,707		Share of Operating Result from Joint Venture accounted for using the Equity Method	49,785	49,098	-1	50,289	53,611	55,520		
85,531		Operating Result From Ordinary Activities	84,257	85,579	2	102,132	111,482	118,751		
28,225		Income Tax Equivalent	31,029	28,242	-9	33,704	36,789	39,188		
57,306		Operating Result	53,228	57,337	8	68,428	74,693	79,563		

ACTEW Corporation	
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								
1,000		Cash	1,000	1,000	-	1,000	1,000	1,000		
20,600		Receivables	23,775	24,369	2	24,979	25,605	26,243		
7,631		Investments	32,924	17,460	-47	19,559	15,710	9,855		
7,473		Other	6,097	6,097	-	6,097	6,097	6,097		
36,704		Total Current Assets	63,796	48,926	-23	51,635	48,412	43,195		
		Non Current Assets								
355,731		Investments	358,778	364,328	2	379,557	388,143	393,674		
931,893		Property, Plant and Equipment	902,963	920,978	2	947,266	995,854	1,025,658		
10,305		Capital Works in Progress	35,305	35,305	-	35,305	35,305	35,305		
13,560		Tax Assets	28,325	28,325	-	28,325	28,325	28,325		
13,034		Other	12,894	12,894	-	12,894	12,894	12,894		
1,324,523		Total Non Current Assets	1,338,265	1,361,830	2	1,403,347	1,460,521	1,495,856		
1,361,227		TOTAL ASSETS	1,402,061	1,410,756	1	1,454,982	1,508,933	1,539,051		
		Current Liabilities								
17,854		Payables	16,976	17,401	3	17,836	18,282	18,739		
11,677		Interest Bearing Liabilities	11,250	12,317	9	13,603	14,954	13,540		
7,567		Employee Benefits	6,095	6,095	-	6,095	6,095	6,095		
12,861		Other Provisions	14,450	16,229	12	18,637	20,266	24,319		
0		Other	1,143	1,143	-	1,143	1,143	1,143		
49,959		Total Current Liabilities	49,914	53,185	7	57,314	60,740	63,836		
		Non Current Liabilities								
336,163		Interest Bearing Liabilities	361,902	359,585	-1	385,982	421,029	442,488		
12,976		Employee Benefits	13,089	13,089	-	13,089	13,089	13,089		
2,467		Other Provisions	2,461	2,461	-	2,461	2,461	2,461		
187,418		Non Current Income Tax Payable	180,537	194,278	8	208,979	224,458	230,022		
539,024		Total Non Current Liabilities	557,989	569,413	2	610,511	661,037	688,060		
588,983		TOTAL LIABILITIES	607,903	622,598	2	667,825	721,777	751,896		
772,244		NET ASSETS	794,158	788,158	-1	787,157	787,156	787,155		
		REPRESENTED BY FUNDS EMPLOYED								
758,872		Accumulated Funds	784,338	778,338	-1	777,337	777,336	777,335		
13,372		Reserves	9,820	9,820	-	9,820	9,820	9,820		
772,244		TOTAL FUNDS EMPLOYED	794,158	788,158	-1	787,157	787,156	787,155		

ACTEW Corporation	
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								
0		Cash from Government for Outputs	0	9,444	#	9,624	9,808	10,014		
153,397		User Charges	161,533	181,628	12	199,056	208,527	218,091		
1,508		Interest Received	2,058	2,015	-2	936	836	1,025		
42,500		Other Revenue	44,000	43,547	-1	35,060	45,025	49,989		
197,405		Operating Receipts	207,591	236,634	14	244,676	264,196	279,119		
		Payments								
2,991		Related to Employees	3,166	3,328	5	3,460	3,598	3,739		
4,060		Related to Supplies and Services	3,897	5,036	29	5,631	4,922	4,902		
24,214		Borrowing Costs	24,214	24,873	3	24,522	25,813	28,119		
90,865		Other	92,829	120,409	30	125,667	130,692	143,692		
122,130		Operating Payments	124,106	153,646	24	159,280	165,025	180,452		
75,275		NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	83,485	82,988	-1	85,396	99,171	98,667		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Receipts								
770		Proceeds from Sale/Maturities of Investments	21,334	770	-96	770	770	770		
770		Investing Receipts	21,334	770	-96	770	770	770		
		Payments								
24,090		Purchase of Property, Plant and Equipment	31,300	35,857	15	43,540	66,545	46,750		
24,090		Investing Payments	31,300	35,857	15	43,540	66,545	46,750		
-23,320		NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES	-9,966	-35,087	-252	-42,770	-65,775	-45,980		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Receipts								
0		Borrowings Received	25,000	10,000	-60	40,000	50,000	35,000		
0		Financing Receipts	25,000	10,000	-60	40,000	50,000	35,000		
		Payments								
63,722		Dividends to Government	68,303	62,115	-9	68,210	73,642	78,588		
10,250		Repayment of Borrowings	9,773	11,250	15	12,317	13,603	14,954		
73,972		Financing Payments	78,076	73,365	-6	80,527	87,245	93,542		
-73,972		NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES	-53,076	-63,365	-19	-40,527	-37,245	-58,542		
-22,017		NET INCREASE/(DECREASE) IN CASH HELD	20,443	-15,464	-176	2,099	-3,849	-5,855		
30,648		CASH AT BEGINNING OF REPORTING PERIOD	13,481	33,924	152	18,460	20,559	16,710		
8,631		CASH AT THE END OF THE REPORTING PERIOD	33,924	18,460	-46	20,559	16,710	10,855		

ACTEW Corporation	
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		
772,244		Opening Balance	781,216	794,158	2	788,158	787,157	787,156		
		Accumulated Funds								
0		Net Effect of Change in Accounting Policy	3,552	0	-100	0	0	0		
57,306		Operating Result for the Period	53,228	57,337	8	68,428	74,693	79,563		
		Reserves								
0		Increase/(Decrease) in asset revaluation reserve	-3,552	0	100	0	0	0		
0		Transfer to/from Reserves	16,942	0	-100	0	0	0		
57,306		Total Income And Expense For The Period	70,170	57,337	-18	68,428	74,693	79,563		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
-57,306		Dividend Approved	-57,228	-63,337	-11	-69,429	-74,694	-79,564		
772,244		Closing Balance	794,158	788,158	-1	787,157	787,156	787,155		
Notes to Budget Statements
Significant variations are as follows:
Operating Statement
•	government payment for outputs:  the increase of $9.444 million in the 2006‑07 Budget from the 2005‑06 estimated outcome reflects the decision to directly appropriate the Commonwealth Specific Purpose Payment – Assistance for Water and Sewerage to ACTEW.  This item was previously included within user charges – ACT Government;  
•	user charges – non ACT Government:
–	the increases of $7.653 million in the 2005‑06 estimated outcome from the original budget is due to the introduction of the Permanent Water Conservation Measures (PWCM), which saw a reduction in the level of water restrictions.
–	the increase of $25.915 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to the PWCM, an increase in regulated water and sewerage prices, customer growth and an increase in the Water Abstraction Charge.
•	user charges - ACT Government: 
–	the increase of $0.399 million in the 2005‑06 estimated outcome from the original budget is due to higher water revenues.  
–	the decrease of $6.334 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is primarily due to the direct appropriation of the Commonwealth Specific Purpose Payment – Assistance for Water and Sewerage, partially offset by an increase in the Community Service Obligation (CSO) for water and sewerage services.
•	interest:  the increase of $0.550 million in the 2005‑06 estimated outcome from the original budget is due to higher than expected levels of cash and cash equivalents being held by ACTEW;
•	other revenue:  the decrease of $9.387 million in the 2005‑06 estimated outcome from the original budget is due to a lower than anticipated level of gifted assets being transferred to ACTEW;
•	employee superannuation and expenses:  
–	the increase of $0.350 million in the 2005‑06 estimated outcome from the original budget is due to the impact of an external salary review and the creation of a new position.  
–	the increase of $0.206 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to a general salary increase.
•	supplies and services:  the increase of $1.520 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to an increase in the procurement of water planning services;
•	depreciation and amortisation:  
–	the decrease of $1.208 million in the 2005‑06 estimated outcome from the original budget is due to a lower level of gifted assets and general capital expenditure.  
–	the increase of $0.992 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to increased capital expenditure.
•	cost of goods sold:  
–	the increase of $5.525 million in the 2005‑06 estimated outcome from the original budget is primarily due to unbudgeted expenditure on Lower Cotter Catchment remediation works and an increase in the water abstraction charge expense due to higher water consumption.  
–	the increase of $19.830 million in 2006‑07 Budget from the 2005‑06 estimated outcome is due to higher costs associated with the Utilities Management Agreement, a further increase in Lower Cotter Catchment remediation costs, increased CSO payments and an increase in the Water Abstraction Charge.
•	other expenses:  the increase of $3.242 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to the introduction of the Utility Land Use Permit which applies from 1 January 2007;
•	share of operating result from joint venture:  the increase of $4.078 million in the 2005‑06 estimated outcome from the original budget is due to favourable price and volume variances in the ActewAGL Retail Partnership; and
•	income tax equivalent:  the increase of $2.804 million in the 2005‑06 estimated outcome from the original budget is due to revised tax liabilities, partially offset by lower forecast profits.  
Balance Sheet
•	current receivables:  the increase of $3.175 million in the 2005‑06 estimated outcome from the original budget reflects a higher level of water consumption during the period;
•	current and non-current investments:  the increase of $28.340 million in the 2005‑06 estimated outcome from the original budget is primarily due to new borrowings of $25 million scheduled for June 2006 to cover increased capital expenditure;
•	property, plant and equipment and capital works in progress:  
–	the decrease of $3.930 million in the 2005‑06 estimated outcome from the original budget is primarily due to lower than  anticipated gifted asset transfers from the Land Development Agency.  
–	the increase of $18.015 million in the 2006‑07 Budget from the 2005‑06 estimated outcome reflects anticipated additional capital expenditure on water supply infrastructure.
•	tax assets:  the increase of $14.765 million in the 2005‑06 estimated outcome from the original budget is due to the adoption of Australian Equivalent to International Financial Reporting Standards (AIFRS); and
•	current and non-current interest bearing liabilities:  the increase of $25.312 million in the 2005‑06 estimated outcome from the original budget is due to new borrowings of $25 million scheduled for June 2006 to cover increased capital expenditure.