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.
2010‑11 Priorities
Strategic and operational issues to be pursued in 2010‑11 include:
•	actively managing deferred assistance provided to borrowers; and
•	continuing to review and monitor loans in arrears.
Estimated Employment Level
2008‑09
Actual Outcome		2009-10
Budget
	2009-10
Est. Outcome	2010-11
Budget
	
2	Staffing (FTE) 	2	2	2	

Output Classes
	Total Cost	
	2009‑10
Est. Outcome
 $’000	2010‑11
Budget
$’000	
Output Class 1: 
Home Loan Portfolio	4,470	4,344	
Output 1.1:  Home Loan Portfolio	4,470	4,344	
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 2010‑11 the Home Loan Portfolio will:
•	manage between 175 (2009‑10 estimated outcome) and 135 (projection to 30 June 2011) loans; and
•	comply with the Commonwealth Government’s loan repayment schedule.
Accountability Indicators
	2009‑10
Target	2009‑10
Est. Outcome	2010‑11
Target	
1.1: Home Loan Portfolio	
a.	Administration cost per home loan managed1	$1,845	$2,080	$2,570	
Note:
1.	The 2009-10 estimated outcome reflects the lower number of outstanding loans estimated to remain within the portfolio (175 loans) compared to the 2009‑10 Budget target (195 loans).  The higher cost per loan in 2010‑11 is the result of relatively fixed administration costs applied to a lower number of outstanding loans (predicted to be 135 loans) by 30 June 2011.

Home Loan Portfolio
Operating Statement
  2009-10			  2009-10	   2010-11		  2011-12	    2012-13	  2013-14		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		Income								
		Revenue								
4,365		Interest	6,349	5,124	-19	5,042	4,954	4,867		
0		Other Revenue	1,500	0	-100	0	0	0		
4,365		Total Revenue	7,849	5,124	-35	5,042	4,954	4,867		
		Gains								
0		Total Gains	0	0	-	0	0	0		
4,365		Total Income	7,849	5,124	-35	5,042	4,954	4,867		
		Expenses								
133		Employee Expenses	132	139	5	144	151	155		
17		Superannuation Expenses	17	17	-	19	19	19		
208		Supplies and Services	215	191	-11	225	199	235		
4,106		Borrowing Costs	4,106	3,997	-3	3,883	3,764	3,640		
4,464		Total Ordinary Expenses	4,470	4,344	-3	4,271	4,133	4,049		
-99		Operating Result	3,379	780	-77	771	821	818		
-99		Total Comprehensive Income	3,379	780	-77	771	821	818		

Home Loan Portfolio
Balance Sheet
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/10			as at 30/6/10	as at 30/6/11	   Var	as at 30/6/12	as at 30/6/13	as at 30/6/14		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
16,726		Cash and Cash Equivalents	16,534	16,546	..	16,527	16,571	16,490		
534		Receivables	784	610	-22	548	501	464		
17,260		Total Current Assets	17,318	17,156	-1	17,075	17,072	16,954		
		Non Current Assets								
1,896		Receivables	2,777	2,219	-20	1,753	1,359	1,028		
103,224		Investments	102,656	101,626	-1	100,306	98,762	97,145		
105,120		Total Non Current Assets	105,433	103,845	-2	102,059	100,121	98,173		
122,380		TOTAL ASSETS	122,751	121,001	-1	119,134	117,193	115,127		
		Current Liabilities								
17		Payables	18	16	-11	19	17	20		
2,533		Interest Bearing Liabilities	2,533	2,647	5	2,766	2,891	3,021		
104		Employee Benefits	93	99	6	105	111	115		
2,654		Total Current Liabilities	2,644	2,762	4	2,890	3,019	3,156		
		Non Current Liabilities								
86,292		Interest Bearing Liabilities	86,292	83,644	-3	80,878	77,987	74,966		
86,292		Total Non Current Liabilities	86,292	83,644	-3	80,878	77,987	74,966		
88,946		TOTAL LIABILITIES	88,936	86,406	-3	83,768	81,006	78,122		
33,434		NET ASSETS	33,815	34,595	2	35,366	36,187	37,005		
		REPRESENTED BY FUNDS EMPLOYED								
33,434		Accumulated Funds	33,815	34,595	2	35,366	36,187	37,005		
33,434		TOTAL FUNDS EMPLOYED	33,815	34,595	2	35,366	36,187	37,005		

Home Loan Portfolio
Cash Flow Statement
  2009-10			  2009-10	   2010-11		  2011-12	    2012-13	  2013-14		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
5,303		Interest Received	7,072	5,226	-26	5,049	4,962	4,874		
5,303		Operating Receipts	7,072	5,226	-26	5,049	4,962	4,874		
		Payments								
133		Related to Employees	131	140	7	144	149	154		
17		Related to Superannuation	17	17	-	19	19	19		
201		Related to Supplies and Services	223	186	-17	217	199	229		
4,106		Borrowing Costs	4,106	3,997	-3	3,883	3,764	3,640		
4,457		Operating Payments	4,477	4,340	-3	4,263	4,131	4,042		
846		NET CASH INFLOW/ (OUTFLOW) FROM OPERATING ACTIVITIES	2,595	886	-66	786	831	832		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Receipts								
894		Proceeds from Sale/Maturities of Investments	0	1,029	#	1,320	1,545	1,617		
806		Repayment of Home Loan Principal	762	630	-17	522	434	361		
1,700		Investing Receipts	762	1,659	118	1,842	1,979	1,978		
		Payments								
0		Purchase of Investments	545	0	-100	0	0	0		
0		Investing Payments	545	0	-100	0	0	0		
1,700		NET CASH INFLOW/ (OUTFLOW) FROM INVESTING ACTIVITIES	217	1,659	665	1,842	1,979	1,978		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Payments								
2,424		Repayment of Borrowings	2,424	2,533	4	2,647	2,766	2,891		
2,424		Financing Payments	2,424	2,533	4	2,647	2,766	2,891		
-2,424		NET CASH INFLOW/ (OUTFLOW) FROM FINANCING ACTIVITIES	-2,424	-2,533	-4	-2,647	-2,766	-2,891		
122		NET INCREASE/ (DECREASE) IN CASH HELD	388	12	-97	-19	44	-81		
16,604		CASH AT BEGINNING OF REPORTING PERIOD	16,146	16,534	2	16,546	16,527	16,571		
16,726		CASH AT THE END OF THE REPORTING PERIOD	16,534	16,546	..	16,527	16,571	16,490		

Home Loan Portfolio
Statement of Changes in Equity
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/10			as at 30/6/10	as at 30/6/11	   Var	as at 30/6/12	as at 30/6/13	as at 30/6/14		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
		Opening Equity								
33,533		Opening Accumulated Funds	30,436	33,815	11	34,595	35,366	36,187		
33,533		Balance at the Start of the Reporting Period	30,436	33,815	11	34,595	35,366	36,187		
		Comprehensive Income								
-99		Operating Result for the Period	3,379	780	-77	771	821	818		
-99		Total Comprehensive Income	3,379	780	-77	771	821	818		
0		Total Movement in Reserves	0	0	-	0	0	0		
		Transactions Involving Owners Affecting Accumulated Funds								
		Closing Equity								
33,434		Closing Accumulated Funds	33,815	34,595	2	35,366	36,187	37,005		
33,434		Balance at the End of the Reporting Period	33,815	34,595	2	35,366	36,187	37,005		
Notes to Budget Statements
Significant variations are as follows:
Operating Statement 
•	interest:
–	the increase of $1.984 million in the 2009‑10 estimated outcome from the original budget reflects higher than budgeted interest rates; and
–	the decrease of $1.225 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is due to lower forecast interest rates for 2010‑11.
•	other revenue:  the increase of $1.5 million in the 2009‑10 estimated outcome from the original budget and the decrease of $1.5 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is due to a revision to the provision for doubtful debts in 2009‑10.
Balance Sheet
•	current and non current receivables:
–	the increase of $1.131 million in the 2009‑10 estimated outcome from the original budget is due to a revision to the provision for doubtful debts in 2009‑10, partially offset by reduced receivables arising from a reduction in outstanding loans; and
–	the decrease of $0.732 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is due to lower receivables from an anticipated reduction in outstanding loans.
•	non current investments:  the decrease of $1.030 million in the 2010‑11 Budget from the 2009‑10 estimated outcome reflects the use of investments to meet the loan commitments.
•	current and non current interest bearing liabilities:  the decrease of $2.534 million in the 2010‑11 Budget from the 2009‑10 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 $0.132 million in the 2010‑11 Budget from the 2009‑10 estimated outcome reflects a reduction in the number of outstanding loans.
Statement of Changes in Equity
Variances in the statement are explained in the notes above.