Shared Services Centre
Objectives
The Shared Services Centre provides information and communication technology (ICT), procurement, publishing and records services, as well as tactical and transactional human resource and finance services, to Government departments and agencies.
The Shared Services Centre consolidates these core administrative functions to achieve economies of scale, standardised and streamlined processes and an overall reduction in costs.  This enables agencies to better 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.
2008-09 Priorities  
Strategic and operational issues to be pursued in 2008‑09 include:
•	refining human resources and finance services based on customer feedback and ongoing assessment of the processes implemented since the creation of the Shared Services Centre in 2007;
•	supporting Treasury in the implementation of a single consolidated instance of the Oracle Government Financials system;
•	establishing strategies to rationalise and manage the government software application portfolio, in close consultation with agencies;
•	implementing strategies to attract and retain skilled staff, as well as providing support for Whole of Government attraction and retention initiatives;
•	facilitating strategic information management and ICT strategic planning across government;
•	streamlining goods and services procurement processes and to streamline the prequalification scheme for construction suppliers; and
•	implementing an enhanced range of Whole of Government contracts and related common use arrangements.
Business and Corporate Strategies
The Shared Services Centre will implement a range of business and corporate strategies that include:
•	continued refining of shared service activities, through benchmarking and use of performance measures; 
•	building Shared Services’ capabilities through effective leadership, staff retention and recruitment policies, and personal and professional development practices; 
•	implementing a Shared Services’ risk management framework incorporating the updating of business unit risk management plans; 
•	reviewing and updating Service Level Agreements with agencies;
•	using financial practices which satisfy the requirements of the Financial Management ACT 1996, including the associated Accounting Policy Papers modelled on the requirements of Accounting Standards, and which fairly present the Shared Services financial performance, financial position and cashflow results for planning and reporting purposes; and
•	operating as a customer service orientated entity subject to the requirements of government policy and legislation. 
Estimated Employment Level 
2007‑08 Budget			2007‑08
Est. Outcome	2008‑09
Budget	
846		Staffing (FTE) 	780	837	

Output Classes
	Total Cost1	Government Payment for Outputs	
	2007‑08
Est. Outcome
$’000 	2008‑09
Budget
$’000	2007‑08
Est. Outcome
$’000	2008‑09
Budget
$’000	
Output Class 1: InTACT	103,747	113,571	1,745	4,149	
Output 1.1: InTACT	103,747	113,571	1,745	4,149	
Note:
1.	Total cost includes depreciation and amortisation of $14.883 million in 2007-08 and $15.206 million in 2008-09.
Output Description
InTACT is a shared ICT service organisation providing a complete range of ICT services to the Government, including infrastructure, applications support and development, ICT policy and ICT project services as well as records and publishing services.
InTACT will provide:
•	services to government agencies as outlined in InTACT’s catalogue of services and affirmed through various service level and support agreements;
•	management of the government data and communications network;
•	assistance to agencies on IT security;
•	management of the Whole of Government communications network; 
•	business systems support;
•	general service and help desk functions;
•	in-house print and electronic publishing; and
•	a full range of record management, mail room and courier activities to the majority of government departments.

Output Classes cont.
	Total Cost1	Government Payment for Outputs	
	2007‑08
Est. Outcome
$’000 	2008‑09
Budget
$’000	2007‑08
Est. Outcome
$’000	2008‑09
Budget
$’000	
Output Class 2:
Procurement Support Services	11,975	12,868	1,363	1,443	
Output 2.1: 
Procurement Support Services	11,975	12,868	1,363	1,443	
Note:
1.	Total cost includes depreciation and amortisation of $0.1 million in 2007-08 and $0.063 million in 2008-09.
Output Description
Procurement Support Services undertakes procurement activities on behalf of government departments and agencies for infrastructure, capital works, goods and services.  It advises the Government on procurement and related construction industry policy, is responsible for the development and implementation of the Government’s procurement policy, administers a range of pre-qualification schemes, and establishes and manages Whole of Government contracts.
Procurement Support Services will provide:
•	procurement and associated risk management services to agencies, including delivering capital works projects on behalf of agencies;
•	the buyers and sellers information service;
•	the Government contracts register;
•	supplier pre-qualification arrangements; and
•	the secretariat to Government Procurement Board.

Output Classes cont.
	Total Cost1	Government Payment for Outputs2	
	2007‑08
Est. Outcome
$’000 	2008‑09
Budget
$’000	2007‑08
Est. Outcome
$’000	2008‑09
Budget
$’000	
Output Class 3:
Human Resources Services	18,922	21,339	1,244	39	
Output 3.1:  
Human Resources Services	18,922	21,339	1,244	39	
Notes:
1.	Total cost includes depreciation and amortisation of $0.309 million in 2007-08 and $2.272 million in 2008-09.
2.	The reduced GPO funding in 2008-09 is due to the removal of one-off subsidy funding received following the establishment of Human Resources Services.
Output Description
Human Resources Services provides tactical and transactional human resource services to departments and agencies.  
Human Resources Services will provide:
•	payroll and personnel services, including tax payments and salary packaging;
•	recruitment services;
•	advice and technical support on health and safety management;
•	support in the management of employee relations processes;
•	injury management services for small agencies;
•	coordination and facilitation of ACT Public Service-wide training and development;
•	statutory and human resources management reporting; and
•	organisational position and data management.

Output Classes cont.
	Total Cost1	Government Payment for Outputs2	
	2007‑08
Est. Outcome
$’000 	2008‑09
Budget
$’000	2007‑08
Est. Outcome
$’000	2008‑09
Budget
$’000	
Output Class 4: Finance Services	12,773	12,716	1,053	35	
Output 4.1: Finance Services2	12,773	12,716	1,053	35	
Notes:
1.	Total cost includes depreciation and amortisation of $0.294 million in 2007-08 and $0.502 million in 2008-09.
2.	The reduced GPO funding in 2008-09 is due to the removal of one-off subsidy funding received following the establishment of Finance Services.
Output Description 
Finance Services provides tactical and transactional finance services to departments and agencies.  
Finance Services will provide:
•	accounts payable and some accounts receivable functions;
•	general ledgers;
•	a fixed assets register;
•	the development and maintenance of the Oracle Government Financials system;
•	cash flow management and bank reconciliations;
•	tax payments, including returns and advice; and
•	financial reporting services.

Accountability Indicators

	2007-08
Targets	2007-08
Est. Outcome	2008-09
Targets	
Output Class 1: InTACT	
Output 1.1: InTACT	
				
a.	Costs compared to peer organisations’ costs, as benchmarked by an independent organisation1,2	Within 5%	Within 5%	Within 5%	
b.	E-mail availability across government during core business hours3	98%	98%	98%	
c.	Service requests made via the Service Desk are resolved within Service Level Agreements timeframes4	85%	88%	85%	
d.	Average time taken for telephone service requests to be answered by a Service Desk officer	25 seconds	15 seconds	20 seconds	
				
Notes:
1.	This measure was previously reported as ‘Costs within peer organisations’ costs, as benchmarked by an independent organisation’ in the 2007-08 Budget papers.  The name has been changed to better reflect the actual output being measured.
2.	The independent benchmarking of InTACT services is undertaken annually.
3.	Established by determining up-time of each core component of the network across core business hours (Monday to Friday 7.30am to 6pm).
4.	Established by determining how quickly requests made to InTACT Service Desk are resolved in comparison to agreed Service Level Agreement timeframes.  

	2007-08
Targets	2007-08
Est. Outcome	2008-09
Targets	
Output Class 2: Procurement Support Services	
Output 2.1: Procurement Support Services 	
				
a.	Proportion of Government funded annual Capital Works program supported with project procurement services1	95%	90%	90%	
b.	Quality Management Systems Compliance with ISO9001:2000-number of  Category 1 non‑conformance findings2	<2	<2	<2	
c.	Increase in the number of Whole of Government contracts and related panel arrangements available for agency procurement3	25%	60%	25%	
				
Notes:
1.	This measure covers the proportion of the Government funded annual capital works program supported with project director services by ACT Procurement Solutions.  Whilst individual projects may be completed during the year, the total proportion is measured annually.
2.	This measure covers compliance with the ACT Procurement Solutions’ Business Management System (BMS) which describes the processes that are undertaken to ensure that quality services are provided, utilising the principles of ISO9001:2000.
3.	This measures reports the increase in the number of Whole of Government contracts and related arrangements in place as at 30 June each year. Note that the result estimated for 2007‑08 was achieved on a base of 14 Whole of Government contracts.  As the base increases, the proportion of new arrangements achievable diminishes.

Accountability Indicators cont.

	2007-08
Targets	2007-08
Est. Outcome	2008-09
Targets	
Output Class 3: Human Resources Services	
Output 3.1: Human Resources Services	

a.	Service requests made via the Integrated Customer Service (ICS) system are resolved within 5 working days	80%	80%	80%	
b.	Data for Annual Reports and the Workforce Profile are supplied to the Chief Minister's Department in accordance with the agreed timeframe	100%	100%	100%	
c.	Performance Standards in Recruitment Services for permanent and temporary vacancies service specifications achieved1	n/a	n/a	90%	

Note:
1.	New measure.  Represents the overall average of performance standards in recruitment service specifications being achieved.

	2007-08
Targets	2007-08
Est. Outcome	2008-09
Targets	
Output Class 4: Finance Services	
Output 4.1: Finance Services	

a.	Business Activity Statements completed in accordance with ATO deadline	90%	90%	90%	
b.	Fringe Benefits Tax Return submitted to the ATO within 7 working days of agencies supplying all required information	90%	90%	90%	
c.	Monthly financial information available for use by agencies by 6th working day of the month	90%	90%	90%	
d.	Annual financial statements completed and sent to agencies by  9th working day of July	90%	90%	90%	

Changes to Appropriation
Changes to Appropriation						
 	2007-08	2008-09	2009-10	2010-11	2011-12	
Government Payment for Outputs	Est. Out.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2007-08 Budget	5,405	3,228	3,304	3,368	3,368	
						
2008-09 Budget Policy Adjustments 					
Whole of Government Desktop Upgrade 	 - 	1,536	1,536	1,536	1,536	
Strengthening Agencies ICT Project Outcomes	 - 	227	275	359	359	
Addressing the ICT Skills Shortages	 - 	669	669	669	669	
						
2008-09 Budget Technical Adjustments						
Revised Indexation Parameters	 - 	6	7	7	63	
						
2008-09 Budget	5,405	5,666	5,791	5,939	5,995	

						

Changes to Appropriation						
 	2007-08	2008-09	2009-10	2010-11	2011-12	
Capital Injections	Est. Out.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2007-08 Budget	3,101	1,000	1,000	1,000	1,000	
						
FMA Section 16B Rollovers from 2006‑07						
Data Communication Centres	203	 - 	 - 	 - 	 - 	
Fitout of Shared Services	606	 - 	 - 	 - 	 - 	
						
2008-09 Budget Policy Adjustments 						
Routine Replacement of Obsolete Critical Network Hardware	 - 	1,600	 - 	 - 	 - 	
Procurement Solutions Systems Redevelopment	 - 	600	 - 	 - 	 - 	
Record Services Mitchell Accommodation - Refurbishment 	 - 	3,237	 - 	 - 	 - 	
						
2008-09 Budget	3,910	6,437	1,000	1,000	1,000	

2008‑09 Capital Works Program 
Departmental
 	Estimated	Estimated	2008‑09	2009‑10	2010-11	Expected	
	Total	Expenditure	Financing	Financing	Financing	Completion	
	Cost	Pre 2008‑09				Date	
 	$’000	$’000	$’000	$’000	$’000	 	
							
New Capital Works							
Record Services Mitchell Accommodation - Refurbishment 	3,237	-	3,237	-	-	Jun 2009	
							
Total Departmental Capital Works	3,237	-	3,237	-	-		

Shared Services Centre	
Operating Statement	
  2007-08			  2007-08	   2008-09		  2009-10	  2010-11	  2011-12		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
5,405		Government Payment for Outputs	5,405	5,666	5	5,791	5,939	5,995		
407		User Charges - Non ACT Government	407	443	9	457	468	487		
137,143		User Charges - ACT Government	135,232	144,976	7	148,358	150,635	153,505		
0		Interest	0	18	#	18	18	18		
235		Other Revenue	635	651	3	654	658	668		
143,190		Total Revenue	141,679	151,754	7	155,278	157,718	160,673		
		Gains								
0		Total Gains	0	0	-	0	0	0		
143,190		Total Income	141,679	151,754	7	155,278	157,718	160,673		
		Expenses								
62,328		Employee Expenses	56,142	65,489	17	66,575	67,348	68,034		
11,332		Superannuation Expenses	9,032	10,803	20	10,771	10,663	10,576		
57,520		Supplies and Services	65,955	66,025	..	67,460	68,980	70,522		
19,370		Depreciation and Amortisation	15,586	18,043	16	18,441	16,870	16,628		
641		Borrowing Costs	702	134	-81	34	0	0		
151,191		Total Ordinary Expenses	147,417	160,494	9	163,281	163,861	165,760		
-8,001		Operating Result	-5,738	-8,740	-52	-8,003	-6,143	-5,087		

Shared Services Centre	
Balance Sheet	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/08			as at 30/6/08	as at 30/6/09	   Var	as at 30/6/10	as at 30/6/11	as at 30/6/12		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
23,671		Cash and Cash Equivalents	53,461	51,666	-3	51,313	48,453	46,179		
19,920		Receivables	24,347	24,436	..	24,523	24,610	24,697		
36		Inventories	33	33	-	33	33	33		
687		Other	656	726	11	796	866	936		
44,314		Total Current Assets	78,497	76,861	-2	76,665	73,962	71,845		
		Non Current Assets								
40,237		Property, Plant and Equipment	35,540	39,753	12	35,636	34,557	33,720		
0		Intangibles	0	2,111	#	420	300	180		
659		Other	547	547	-	547	547	547		
40,896		Total Non Current Assets	36,087	42,411	18	36,603	35,404	34,447		
85,210		TOTAL ASSETS	114,584	119,272	4	113,268	109,366	106,292		
		Current Liabilities								
32,376		Payables	25,381	29,750	17	30,091	30,432	30,773		
1,556		Finance Leases	2,264	497	-78	0	0	0		
14,503		Employee Benefits	16,160	17,620	9	18,978	20,336	21,694		
3,648		Other	27,527	27,707	1	27,887	28,067	28,247		
52,083		Total Current Liabilities	71,332	75,574	6	76,956	78,835	80,714		
		Non Current Liabilities								
0		Finance Leases	497	0	-100	0	0	0		
708		Employee Benefits	1,042	1,210	16	1,213	1,216	1,219		
708		Total Non Current Liabilities	1,539	1,210	-21	1,213	1,216	1,219		
52,791		TOTAL LIABILITIES	72,871	76,784	5	78,169	80,051	81,933		
32,419		NET ASSETS	41,713	42,488	2	35,099	29,315	24,359		
		REPRESENTED BY FUNDS EMPLOYED								
32,419		Accumulated Funds	38,604	39,379	2	31,990	26,206	21,250		
0		Reserves	3,109	3,109	-	3,109	3,109	3,109		
32,419		TOTAL FUNDS EMPLOYED	41,713	42,488	2	35,099	29,315	24,359		

Shared Services Centre	
Cash Flow Statement	
  2007-08			  2007-08	   2008-09		  2009-10	  2010-11	  2011-12		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
5,405		Cash from Government for Outputs	5,405	5,666	5	5,791	5,939	5,995		
138,390		User Charges	136,479	146,263	7	149,658	151,951	154,848		
0		Interest Received	0	18	#	18	18	18		
39,135		Other Revenue	313,614	331,210	6	349,966	367,400	380,948		
182,930		Operating Receipts	455,498	483,157	6	505,433	525,308	541,809		
		Payments								
73,182		Related to Employees	64,587	74,464	15	75,785	76,450	77,053		
57,648		Related to Supplies and Services	66,083	67,084	2	67,945	69,465	71,007		
641		Borrowing Costs	702	134	-81	34	0	0		
39,297		Other	313,376	330,754	6	349,505	369,050	382,592		
170,768		Operating Payments	444,748	472,436	6	493,269	514,965	530,652		
12,162		NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	10,750	10,721	..	12,164	10,343	11,157		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Receipts								
84,044		Proceeds from Sale of Property, Plant & Equipment	100	100	-	100	100	100		
84,044		Investing Receipts	100	100	-	100	100	100		
		Payments								
102,444		Purchase of Property, Plant and Equipment	14,084	17,186	22	12,734	13,662	13,662		
0		Purchase of Investments	1	0	-100	0	0	0		
102,444		Investing Payments	14,085	17,186	22	12,734	13,662	13,662		
-18,400		NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES	-13,985	-17,086	-22	-12,634	-13,562	-13,562		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Receipts								
3,101		Capital Injection from Government	3,910	6,437	65	1,000	1,000	1,000		
0		Receipt of Transferred Cash Balances	2,100	0	-100	0	0	0		
3,101		Financing Receipts	6,010	6,437	7	1,000	1,000	1,000		
		Payments								
0		Distributions to Government	1,817	100	-94	386	641	869		
6,775		Repayment of Finance Lease	6,000	1,767	-71	497	0	0		
6,775		Financing Payments	7,817	1,867	-76	883	641	869		
-3,674		NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES	-1,807	4,570	353	117	359	131		
-9,912		NET INCREASE/(DECREASE) IN CASH HELD	-5,042	-1,795	64	-353	-2,860	-2,274		
33,584		CASH AT BEGINNING OF REPORTING PERIOD	58,503	53,461	-9	51,666	51,313	48,453		
23,672		CASH AT THE END OF THE REPORTING PERIOD	53,461	51,666	-3	51,313	48,453	46,179		

Shared Services Centre	
Statement of Changes in Equity	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/08			as at 30/6/08	as at 30/6/09	   Var	as at 30/6/10	as at 30/6/11	as at 30/6/12		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
37,319		Opening Balance	42,628	41,713	-2	42,488	35,099	29,315		
		Accumulated Funds								
-8,001		Operating Result for the Period	-5,738	-8,740	-52	-8,003	-6,143	-5,087		
		Reserves								
0		Increase/(Decrease) in asset revaluation reserve	3,109	0	-100	0	0	0		
-8,001		Total Income And Expense For The Period	-2,629	-8,740	-232	-8,003	-6,143	-5,087		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
3,101		Capital Injections	3,910	6,437	65	1,000	1,000	1,000		
0		Capital (Distributions)	-1,817	-100	94	-386	-641	-869		
0		Inc/Dec in Net Assets due to Admin Restructure	-379	3,178	939	0	0	0		
32,419		Closing Balance	41,713	42,488	2	35,099	29,315	24,359		
Notes to the Budget Statements
Significant variations are as follows:
Operating Statement
•	government payment for outputs:  
–	the increase of $0.261 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is mainly due to:
•	an increase in funding for new initiatives in 2008‑09 including Whole of Government Desktop Upgrade ($1.536 million), Addressing the IT Skills Shortage ($0.669 million) and Strengthening Agencies ICT Project Outcomes ($0.227 million);
partially offset by:
•	the cessation of one-off supplementary funding received in 2007‑08 for consolidating Human Resource and Finance Services ($1.820 million); and
•	the cessation of change management funding received in 2007‑08 ($0.5 million) to assist with the establishment of the Shared Services Centre in 2006‑07. 
•	user charges - ACT Government:
–	the decrease of $1.911 million in the 2007‑08 estimated outcome from the original budget is mainly due to: 
•	reduced agency ICT expenditure and staff costs directly recovered from agencies ($3.066 million) due to the timing associated with the transfer of these staff and costs;
partially offset by:
•	an increase in capital works management fees due to larger than expected capital works program ($0.824 million); and
•	an increase in ICT Project management revenue due to higher than expected expenditure by agencies on ICT projects ($0.525 million).
–	the increase of $9.744 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is mainly due to:
•	the full year effect of cost recovery associated with the transfer of ICT business systems and staff to InTACT ($8.129 million);
•	an increase in User Charges in line with CPI ($4.057 million);
•	an increase in capital works management fees from an increasing capital works program ($0.8 million); and
•	an increase in voice service revenue ($0.885 million) due to increased consumption; 
partially offset by:
•	the elimination of internal trading costs between Shared Services Business Units ($4.571 million).
•	employee and superannuation expenses:
–	the decrease of $8.486 million in the 2007‑08 estimated outcome from the original budget is due to:
•	lower than expected staff numbers ($4.472 million); 
•	lower ICT agency staff due to timing associated with the transfer and recruitment of staff ($1.735 million); and
•	decreased superannuation contributions ($2.3 million).
–	the increase of $11.118 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is mainly due to:
•	Shared Services reaching full staffing levels in 2008-09, especially in the areas of HR services and ICT agency staff ($6.286 million); and
•	wage increases ($1.684 million).
•	supplies and services:
–	the increase of $8.435 million in the 2007‑08 estimated outcome from the original budget is mainly due to:
•	expected expenditure reductions being re-profiled to other expenditure categories ($5.971 million);
•	an increase in contractors costs due to difficulties in filling IT positions ($3.451 million); and
•	an increase in agency ICT project related expenditure due to higher than expected ICT projects ($0.525 million); 
partially offset by:
•	reduced business systems support costs ($1.331 million).
•	depreciation and amortisation: 
–	the decrease of $3.784 million in the 2007‑08 estimated outcome from the original budget is mainly due to the timing of asset purchases in 2007‑08 ($1.927 million), lower expenses as a result of extending the useful life of assets ($0.986 million), and the reduced cost of ICT equipment ($0.735 million); and
–	the increase of $2.457 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is mainly due to the transfer of the Human Resources Salary System (Chris21) asset from Chief Minister’s Department and its associated depreciation ($1.607 million), the full year affect of depreciation on the revaluation of Shared Services assets in January 2008 ($0.393 million) and part year depreciation on new 2008‑09 capital works ($0.320 million).
•	borrowing costs:  the decrease of $0.568 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is due to the decision to purchase ICT equipment outright rather than leasing. 
Balance Sheet
•	cash and cash equivalents:  the increase of $29.790 million in the 2007‑08 estimated outcome from the original budget is mainly due to the expectation that a significant amount of capital works payments from agencies will be received prior to the end of the financial year partially offset by the expectation that payables will be reduced in preparation for the single instance of Oracle commencing 1 July 2008.
•	receivables:  the increase of $4.427 million in the 2007‑08 estimated outcome from the original budget is due to the higher level of capital works than expected.
•	 property, plant and equipment:  
–	the decrease of $4.697 million in the 2007‑08 estimated outcome from the original budget is mainly due to lower than expected costs of ICT equipment and lower than forecast asset purchases as the useful life of certain assets have been extended; and
–	the increase of $4.213 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is due to new capital works.
•	intangibles:  the increase of $2.111 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is due to the transfer of the Human Resources Salary System (Chris21) asset from the Chief Minister’s Department ($1.571 million) and the Procurement Solutions Systems Redevelopment project ($0.540 million).
•	payables:  
–	the decrease of $6.995 million in 2007‑08 estimated outcome from the original budget is due to expectations that payables will be reduced in preparation for the single instance of Oracle commencing 1 July 2008; and
–	the increase of $4.369 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is due to returning to the normal level of payables following the one-off reduction of payables in preparation for the single instance of Oracle commencing July 2008.
•	current and non current finance leases:  
–	the increase of $1.205 million in the 2007‑08 estimated outcome from the original budget reflects a higher than anticipated level of finance leases held; and 
–	the decrease of $2.264 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is due to the decision to purchase ICT equipment outright rather than leasing.
•	current and non current employee benefits:  
–	the increase of $1.991 million in the 2007‑08 estimated outcome from the original budget is due to the wage increases and lower than expected leave taken by Shared Services employees during the first year of Shared Services operations; and
–	the increase of $1.628 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is mainly due to wage increases and the transfer of ICT staff and their entitlements from the Canberra Institute of Technology to InTACT. 
•	other current liabilities:  the increase of $23.879 million in the 2007‑08 estimated outcome from the original budget is due to the expectations that a significant amount of capital works payments will be received in advance prior to the end of the financial year.
Cash Flow Statement
The major variations within the Cash Flow Statement are explained in the Operating Statement section above.  Other significant variations relate to:
•	other revenue:  the increase of $274.479 million in the 2007‑08 estimated outcome from the original budget is mainly due to a change in the accounting treatment for capital works reimbursements received from agencies previously recorded against proceeds from sale of property, plant and equipment and a significant higher amount of capital works undertaken in 2007‑08.
•	other payments:  the increase of $274.079 million in the 2007‑08 estimated outcome from the original budget is mainly due to a change in the accounting treatment for capital works payments made on behalf of agencies previously recorded against purchase of property, plant and equipment and a significant higher amount of capital works undertaken in 2007‑08.
•	proceeds from sale of property, plant and equipment:   the decrease of $83.944 million in the 2007‑08 estimated outcome from the original budget is due to a change in the accounting treatment for capital works reimbursements received from agencies now treated as other revenue. 
•	purchase of property plant and equipment: 
–	the decrease of $88.360 million in the 2007‑08 estimated outcome from the original budget is due to a change in the accounting treatment for capital works payments made on behalf of agencies now treated as other payments; and
–	the increase of $3.102 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is due to one-off funding for 2008‑09 capital work initiatives, partially offset by completed 2007‑08 initiatives.
•	capital injection from government:  
–	the increase of $0.809 million in the 2007‑08 estimated outcome from the original budget represents the rollover of funds due to the timing in finalising the data communication centres ($0.203 million) and fit-out of Shared Services accommodation ($0.606 million); and
–	the increase of $2.527 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is due to one-off funding for 2008‑09 capital works initiatives, partially offset by completed 2007‑08 initiatives. 
•	receipt of transferred cash balances:  the increase of $2.1 million in the 2007‑08 estimated outcome from the original budget represents the one‑off transfer of salary packaging bank accounts to Shared Services from the Department of Education and Training.
•	distribution to government: 
–	the increase of $1.817 million in the 2007‑08 estimated outcome from the original budget represents the return of unspent superannuation; and
–	the decrease of $1.717 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is due to the Shared Services Centre expecting to reach full staffing levels in 2008‑09. 
•	repayment of finance leases:  the decrease of $0.775 million in the 2007‑08 estimated outcome from the original budget and the decrease of $4.233 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is due to the continuation of the policy to purchase assets rather than lease assets.
Statement of Changes in Equity
•	increase/(decrease) in asset revaluation reserve:  the increase of $3.109 million in the 2007‑08 estimated outcome from the original budget is due to asset revaluation undertaken in January 2008.  
•	increase/(decrease) in net assets due to admin restructure: 
–	the decrease of $0.379 million in the 2007‑08 estimated outcome from the original budget represents the one-off transfer of ICT staff and their entitlements from CIT to InTACT; and
–	the increase of $3.557 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is due to the one-off transfer of the Human Resources Salary System (Chris21) assets from the Chief Minister’s Department to Shared Services effective 1 July 2008.  

InTACT	
Operating Statement	
  2007-08			  2007-08	   2008-09		  2009-10	  2010-11	  2011-12		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
1,745		Government Payment for Outputs	1,745	4,149	138	4,238	4,363	4,419		
407		User Charges - Non ACT Government	407	443	9	457	468	487		
96,685		User Charges - ACT Government	94,606	100,911	7	103,625	105,226	108,098		
235		Other Revenue	235	239	2	242	246	256		
99,072		Total Revenue	96,993	105,742	9	108,562	110,303	113,260		
		Gains								
0		Total Gains	0	0	-	0	0	0		
99,072		Total Income	96,993	105,742	9	108,562	110,303	113,260		
		Expenses								
32,696		Employee Expenses	27,128	32,742	21	33,398	33,829	34,517		
6,088		Superannuation Expenses	4,512	5,894	31	5,855	5,788	5,794		
48,278		Supplies and Services	56,522	59,595	5	60,799	62,001	63,543		
18,470		Depreciation and Amortisation	14,883	15,206	2	15,580	15,580	15,338		
641		Borrowing Costs	702	134	-81	34	0	0		
106,173		Total Ordinary Expenses	103,747	113,571	9	115,666	117,198	119,192		
-7,101		Operating Result	-6,754	-7,829	-16	-7,104	-6,895	-5,932		

Procurement Support Services	
Operating Statement	
  2007-08			  2007-08	   2008-09		  2009-10	  2010-11	  2011-12		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
1,363		Government Payment for Outputs	1,363	1,443	6	1,553	1,576	1,576		
9,747		User Charges - ACT Government	10,571	11,688	11	11,771	11,881	11,881		
0		Interest	0	18	#	18	18	18		
11,110		Total Revenue	11,934	13,149	10	13,342	13,475	13,475		
		Gains								
0		Total Gains	0	0	-	0	0	0		
11,110		Total Income	11,934	13,149	10	13,342	13,475	13,475		
		Expenses								
7,545		Employee Expenses	7,975	9,281	16	9,392	9,494	9,494		
1,383		Superannuation Expenses	1,251	1,489	19	1,470	1,451	1,421		
2,182		Supplies and Services	2,649	2,035	-23	2,130	2,178	2,178		
100		Depreciation and Amortisation	100	63	-37	123	123	123		
11,210		Total Ordinary Expenses	11,975	12,868	7	13,115	13,246	13,216		
-100		Operating Result	-41	281	785	227	229	259		

Human Resources Services	
Operating Statement	
  2007-08			  2007-08	   2008-09		  2009-10	  2010-11	  2011-12		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
1,244		Government Payment for Outputs	1,244	39	-97	0	0	0		
18,253		User Charges - ACT Government	17,739	20,257	14	20,594	20,835	20,835		
0		Other Revenue	400	412	3	412	412	412		
19,497		Total Revenue	19,383	20,708	7	21,006	21,247	21,247		
		Gains								
0		Total Gains	0	0	-	0	0	0		
19,497		Total Income	19,383	20,708	7	21,006	21,247	21,247		
		Expenses								
13,270		Employee Expenses	12,410	14,073	13	14,259	14,385	14,385		
2,382		Superannuation Expenses	1,929	2,075	8	2,093	2,077	2,039		
3,845		Supplies and Services	4,274	2,919	-32	2,994	3,080	3,080		
400		Depreciation and Amortisation	309	2,272	635	2,236	665	665		
19,897		Total Ordinary Expenses	18,922	21,339	13	21,582	20,207	20,169		
-400		Operating Result	461	-631	-237	-576	1,040	1,078		

Finance Services	
Operating Statement	
  2007-08			  2007-08	   2008-09		  2009-10	  2010-11	  2011-12		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
1,053		Government Payment for Outputs	1,053	35	-97	0	0	0		
12,458		User Charges - ACT Government	12,316	12,120	-2	12,368	12,693	12,691		
13,511		Total Revenue	13,369	12,155	-9	12,368	12,693	12,691		
		Gains								
0		Total Gains	0	0	-	0	0	0		
13,511		Total Income	13,369	12,155	-9	12,368	12,693	12,691		
		Expenses								
8,817		Employee Expenses	8,629	9,393	9	9,526	9,640	9,638		
1,479		Superannuation Expenses	1,340	1,345	..	1,353	1,347	1,322		
3,215		Supplies and Services	2,510	1,476	-41	1,537	1,721	1,721		
400		Depreciation and Amortisation	294	502	71	502	502	502		
13,911		Total Ordinary Expenses	12,773	12,716	..	12,918	13,210	13,183		
-400		Operating Result	596	-561	-194	-550	-517	-492		
Notes to the Output Class Statements
Significant variations are as follows:
InTACT Total Expenses
•	the decrease of $2.426 million in the 2007‑08 estimated outcome from the original budget is mainly due to lower than forecast staffing levels, reduced superannuation contributions and lower depreciation, partially offset by higher than forecast contractor expenditure.
•	the increase of $9.824 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is mainly due to InTACT reaching full staffing levels in 2008‑09, an increase in staff numbers as a result of the introduction of succession planning and traineeship initiatives to ensure service sustainability ($1.936 million), wage increases, increase in contractor expenses associated with Government Desktop Upgrade and increase in CPI. 
Procurement Support Services Total Expenses
•	the increase of $0.893 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is mainly due to an increase in staff associated with a larger capital works program. 
Human Resources Services Total Expenses
•	the increase of $2.417 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is mainly due to Human Resource Services reaching full staffing levels in 2008‑09, wage increases and the transfer of the Human Resources Salary System (Chris21) asset from Chief Minister’s Department and its associated depreciation, partially offset partially by elimination of, and adjustments to, the allocation of internal trading costs between Shared Services Business units.
Finance Services Total Expenses
•	the decrease of $1.138 million in the 2007‑08 estimated outcome from the original budget is mainly due to lower than expected staff numbers and related costs.