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. 
2007‑08 Priorities
Strategic and operational issues to be pursued in 2007‑08 include:
•	continuing the review of all unsecured loans; and 
•	improving the reporting of insurance coverage for all home loans. 
Estimated Employment Level
	2006-07
Est.  Outcome	2007-08
Budget	
Staffing (FTE)	2	2	

Output Classes
	Total Cost	
	2006‑07
Est. Outcome
 $’000	2007‑08
Budget
$’000	
Output Class 1: Home Loan Portfolio	4,793	4,697	
Output 1.1: Home Loan Portfolio	4,793	4,697	
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 2007‑08, the Home Loan Portfolio will:
•	manage between 332 (2006‑07 estimated outcome) and 250 (projection at 30 June 2008) loans; and
•	comply with the Australian Government’s loan repayment schedule.

Accountability Indicators
	2006‑07
Target	2006‑07
Est. Outcome	2007‑08
Target	
1.1: Home Loan Portfolio	
				
a.	Administration cost per home loan managed1	$1,038	$1,162	$1,548	
Note
1.	The increase in the 2007‑08 target is a result of the reduction of outstanding loans while administrative expenditure remains static at 2006‑07 levels.

Home Loan Portfolio	
Operating Statement	
  2006-07			  2006-07	   2007-08		  2008-09	  2009-10	  2010-11		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
7,580		Interest	7,100	8,177	15	8,064	8,103	8,106		
7,580		Total Revenue	7,100	8,177	15	8,064	8,103	8,106		
		Gains								
0		Total Gains	0	0	-	0	0	0		
7,580		Total Income	7,100	8,177	15	8,064	8,103	8,106		
		Expenses								
138		Employee Expenses	139	143	3	147	148	152		
19		Superannuation Expenses	19	19	-	20	20	21		
222		Supplies and Services	229	224	-2	226	227	232		
4,406		Borrowing Costs	4,406	4,311	-2	4,211	4,106	3,997		
4,785		Total Ordinary Expenses	4,793	4,697	-2	4,604	4,501	4,402		
2,795		Operating Result	2,307	3,480	51	3,460	3,602	3,704		

Home Loan Portfolio	
Balance Sheet	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/07			as at 30/6/07	as at 30/6/08	   Var	as at 30/6/09	as at 30/6/10	as at 30/6/11		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
7,241		Cash and Cash Equivalents	16,375	17,206	5	17,620	18,160	19,802		
1,061		Receivables	858	851	-1	767	716	680		
8,302		Total Current Assets	17,233	18,057	5	18,387	18,876	20,482		
		Non Current Assets								
6,712		Receivables	3,565	2,494	-30	1,575	783	97		
105,701		Investments	97,283	94,498	-3	96,234	97,720	97,974		
112,413		Total Non Current Assets	100,848	96,992	-4	97,809	98,503	98,071		
120,715		TOTAL ASSETS	118,081	115,049	-3	116,196	117,379	118,553		
		Current Liabilities								
19		Payables	19	19	-	19	19	19		
2,220		Interest Bearing Liabilities	2,220	2,320	5	2,424	2,533	2,647		
27		Employee Benefits	88	96	9	103	108	112		
2,266		Total Current Liabilities	2,327	2,435	5	2,546	2,660	2,778		
		Non Current Liabilities								
93,569		Interest Bearing Liabilities	93,569	91,249	-2	88,825	86,292	83,644		
56		Employee Benefits	0	0	-	0	0	0		
93,625		Total Non Current Liabilities	93,569	91,249	-2	88,825	86,292	83,644		
95,891		TOTAL LIABILITIES	95,896	93,684	-2	91,371	88,952	86,422		
24,824		NET ASSETS	22,185	21,365	-4	24,825	28,427	32,131		
		REPRESENTED BY FUNDS EMPLOYED								
24,824		Accumulated Funds	22,185	21,365	-4	24,825	28,427	32,131		
24,824		TOTAL FUNDS EMPLOYED	22,185	21,365	-4	24,825	28,427	32,131		

Home Loan Portfolio	
Cash Flow Statement	
  2006-07			  2006-07	   2007-08		  2008-09	  2009-10	  2010-11		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
7,556		Interest Received	7,915	8,087	2	8,075	8,100	8,105		
7,556		Operating Receipts	7,915	8,087	2	8,075	8,100	8,105		
		Payments								
153		Related to Employees	151	154	2	160	163	169		
223		Related to Supplies and Services	241	224	-7	226	228	232		
4,406		Borrowing Costs	4,406	4,311	-2	4,211	4,106	3,997		
0		Other	4	0	-100	0	0	0		
4,782		Operating Payments	4,802	4,689	-2	4,597	4,497	4,398		
2,774		NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	3,113	3,398	9	3,478	3,603	3,707		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Receipts								
0		Proceeds from Sale/Maturities of Investments	1,087	2,785	156	0	0	0		
1,602		Repayment of Home Loan Principal	1,380	1,168	-15	993	846	723		
1,602		Investing Receipts	2,467	3,953	60	993	846	723		
		Payments								
2,223		Purchase of Investments	0	0	-	1,737	1,485	254		
2,223		Investing Payments	0	0	-	1,737	1,485	254		
-621		NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES	2,467	3,953	60	-744	-639	469		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Payments								
0		Distributions to Government	0	4,300	#	0	0	0		
2,124		Repayment of Borrowings	2,124	2,220	5	2,320	2,424	2,534		
2,124		Financing Payments	2,124	6,520	207	2,320	2,424	2,534		
-2,124		NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES	-2,124	-6,520	207	-2,320	-2,424	-2,534		
29		NET INCREASE/(DECREASE) IN CASH HELD	3,456	831	-76	414	540	1,642		
7,212		CASH AT BEGINNING OF REPORTING PERIOD	12,919	16,375	27	17,206	17,620	18,160		
7,241		CASH AT THE END OF THE REPORTING PERIOD	16,375	17,206	5	17,620	18,160	19,802		

Home Loan Portfolio	
Statement of Changes in Equity	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/07			as at 30/6/07	as at 30/6/08	   Var	as at 30/6/09	as at 30/6/10	as at 30/6/11		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
22,029		Opening Balance	19,878	22,185	12	21,365	24,825	28,427		
		Accumulated Funds								
2,795		Operating Result for the Period	2,307	3,480	51	3,460	3,602	3,704		
		Reserves								
2,795		Total Income And Expense For The Period	2,307	3,480	51	3,460	3,602	3,704		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
0		Capital (Distributions)	0	-4,300	#	0	0	0		
24,824		Closing Balance	22,185	21,365	-4	24,825	28,427	32,131		
Notes to Budget Statements
Significant variations are as follows:
Operating Statement 
•	interest:
–	the decrease of $0.480 million in the 2006‑07 estimated outcome from the original budget is primarily due to a lower number of outstanding loans and a lower interest rate for investments relative to expectations of the 2006‑07 Budget; and
–	the increase of $1.077 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is due to a projected higher interest rate for investments. 
Balance Sheet
•	cash and investments:  the decrease of $1.954 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is due to the withdrawal of $4.3 million of equity, partially offset by increased cash associated with loan repayments and interest revenue.
•	current and non-current receivables:
–	the decrease of $3.350 million in the 2006‑07 estimated outcome from the original budget is due to higher loan discharges than expected in 2006‑07; and 
–	the decrease of $1.078 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is due to a reduction in outstanding loans and some expected early repayment of loans.
•	
current and non-current interest bearing liabilities:  the decrease of $2.220 million in the 2007-08 Budget from the 2006-07 estimated outcome represents the loan from the Australian Government, which is scheduled to be fully paid in 2040.
Cash Flow Statement
The major variances within the Cash Flow Statement are explained within the Operating Statement and Balance Sheet above.
Other significant variances are as follows:
•	repayment of home loan principal:
–	the decrease of $0.222 million in the 2006‑07 estimated outcome from the original budget reflects more deferred assistance than anticipated in 2005‑06; and
–	the decrease of $0.212 million in the 2007‑08 Budget from the 2006‑07 estimated outcome reflects the smaller balance of outstanding loans.
•	distributions to Government:  the distribution of $4.3 million in the 2007‑08 Budget is due to the withdrawal of equity to be invested in public housing.