HOME LOAN PORTFOLIO
Purpose
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.
2011‑12 Priorities
Strategic and operational issues to be pursued in 2011‑12 include:
•	actively managing deferred assistance provided to borrowers;
•	continuing to review and monitor loans in arrears; and
•	replacing the current Home Loan Portfolio financial management system.
Estimated Employment Level
2009-10
Actual Outcome		2010-11
Budget
	2010-11
Est. Outcome	2011-12
Budget
	
2	Staffing (FTE) 	2	2	2	

Output Classes
	Total Cost	
	2010‑11
Est. Outcome
 $’000	2011‑12 
Budget
$’000	
Output Class 1: 
Home Loan Portfolio	4,320	4,243	
Output 1.1:  Home Loan Portfolio	4,320	4,243	
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 2011‑12 the Home Loan Portfolio will:
•	manage between 145 (2010‑11 estimated outcome) and 125 (projection to 30 June 2012) loans; and
•	comply with the Commonwealth Government’s loan repayment schedule.

Accountability Indicators
	2010‑11
Target	2010‑11
Est. Outcome	2011‑12
Target	
1.1:  Home Loan Portfolio	
a.	Administration cost per home loan managed1	$2,570	$2,230	$2,880	
Note:
1.	The 2010-11 estimated outcome reflects the higher number of outstanding loans estimated to remain within the portfolio (145 loans) compared to the 2010‑11 Budget target (135 loans).  The higher cost per loan in 2011-12 is the result of relatively fixed administration costs applied to a lower number of outstanding loans (predicted to be 125 loans) by 30 June 2012.

Home Loan Portfolio
Operating Statement
  2010-11			  2010-11	   2011-12		  2012-13	    2013-14	  2014-15		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		Income								
		Revenue								
5,124		Interest	6,159	5,914	-4	5,628	5,560	5,484		
0		Other Revenue	567	261	-54	217	181	151		
5,124		Total Revenue	6,726	6,175	-8	5,845	5,741	5,635		
		Gains								
0		Total Gains	0	0	-	0	0	0		
5,124		Total Income	6,726	6,175	-8	5,845	5,741	5,635		
		Expenses								
139		Employee Expenses	126	131	4	137	141	147		
17		Superannuation Expenses	30	30	-	31	32	32		
191		Supplies and Services	167	199	19	173	213	184		
3,997		Borrowing Costs	3,997	3,883	-3	3,764	3,640	3,509		
4,344		Total Ordinary Expenses	4,320	4,243	-2	4,105	4,026	3,872		
780		Operating Result	2,406	1,932	-20	1,740	1,715	1,763		
780		Total Comprehensive Income	2,406	1,932	-20	1,740	1,715	1,763		

Home Loan Portfolio
Balance Sheet
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/11			as at 30/6/11	as at 30/6/12	   Var	as at 30/6/13	as at 30/6/14	as at 30/6/15		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
16,546		Cash and Cash Equivalents	16,633	16,607	..	16,625	16,729	16,695		
610		Receivables	682	630	-8	581	554	530		
17,156		Total Current Assets	17,315	17,237	..	17,206	17,283	17,225		
		Non Current Assets								
2,219		Receivables	2,043	1,878	-8	1,740	1,624	1,527		
101,626		Investments	106,020	96,109	-9	95,255	94,127	93,028		
103,845		Total Non Current Assets	108,063	97,987	-9	96,995	95,751	94,555		
121,001		TOTAL ASSETS	125,378	115,224	-8	114,201	113,034	111,780		
		Current Liabilities								
16		Payables	14	17	21	14	17	15		
2,647		Interest Bearing Liabilities	2,647	2,766	4	2,891	3,021	3,157		
99		Employee Benefits	94	98	4	104	110	116		
2,762		Total Current Liabilities	2,755	2,881	5	3,009	3,148	3,288		
		Non Current Liabilities								
83,644		Interest Bearing Liabilities	83,644	80,878	-3	77,987	74,966	71,809		
83,644		Total Non Current Liabilities	83,644	80,878	-3	77,987	74,966	71,809		
86,406		TOTAL LIABILITIES	86,399	83,759	-3	80,996	78,114	75,097		
34,595		NET ASSETS	38,979	31,465	-19	33,205	34,920	36,683		
		REPRESENTED BY FUNDS EMPLOYED								
34,595		Accumulated Funds	38,979	31,465	-19	33,205	34,920	36,683		
34,595		TOTAL FUNDS EMPLOYED	38,979	31,465	-19	33,205	34,920	36,683		

Home Loan Portfolio
Cash Flow Statement
  2010-11			  2010-11	   2011-12		  2012-13	    2013-14	  2014-15		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
5,226		Interest Received	7,480	5,935	-21	5,652	5,564	5,490		
5,226		Operating Receipts	7,480	5,935	-21	5,652	5,564	5,490		
		Payments								
140		Related to Employees	126	131	4	136	141	146		
17		Related to Superannuation	27	25	-7	25	27	27		
186		Related to Supplies and Services	186	197	6	176	207	185		
3,997		Borrowing Costs	3,997	3,883	-3	3,764	3,640	3,509		
4,340		Operating Payments	4,336	4,236	-2	4,101	4,015	3,867		
886		NET CASH INFLOW/ (OUTFLOW) FROM OPERATING ACTIVITIES	3,144	1,699	-46	1,551	1,549	1,623		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Receipts								
1,029		Proceeds from Sale/Maturities of Investments	0	9,911	#	853	1,129	1,099		
630		Repayment of Home Loan Principal	552	457	-17	380	317	265		
1,659		Investing Receipts	552	10,368	#	1,233	1,446	1,364		
		Payments								
0		Purchase of Investments	2,228	0	-100	0	0	0		
0		Investing Payments	2,228	0	-100	0	0	0		
1,659		NET CASH INFLOW/ (OUTFLOW) FROM INVESTING ACTIVITIES	-1,676	10,368	719	1,233	1,446	1,364		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Payments								
0		Distributions to Government	0	9,446	#	0	0	0		
2,533		Repayment of Borrowings	2,533	2,647	5	2,766	2,891	3,021		
2,533		Financing Payments	2,533	12,093	377	2,766	2,891	3,021		
-2,533		NET CASH INFLOW/ (OUTFLOW) FROM FINANCING ACTIVITIES	-2,533	-12,093	-377	-2,766	-2,891	-3,021		
12		NET INCREASE/ (DECREASE) IN CASH HELD	-1,065	-26	98	18	104	-34		
16,534		CASH AT BEGINNING OF REPORTING PERIOD	17,698	16,633	-6	16,607	16,625	16,729		
16,546		CASH AT THE END OF THE REPORTING PERIOD	16,633	16,607	..	16,625	16,729	16,695		

Home Loan Portfolio
Statement of Changes in Equity
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/11			as at 30/6/11	as at 30/6/12		as at 30/6/13	as at 30/6/14	as at 30/6/15		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
		Opening Equity								
33,815		Opening Accumulated Funds	36,573	38,979	7	31,465	33,205	34,920		
33,815		Balance at the Start of the Reporting Period	36,573	38,979	7	31,465	33,205	34,920		
		Comprehensive Income								
780		Operating Result for the Period	2,406	1,932	-20	1,740	1,715	1,763		
780		Total Comprehensive Income	2,406	1,932	-20	1,740	1,715	1,763		
0		Total Movement In Reserves	0	0	-	0	0	0		
		Transactions Involving Owners Affecting Accumulated Funds								
0		Capital Distributions	0	-9,446	#	0	0	0		
0		Total Transactions Involving Owners Affecting Accumulated Funds	0	-9,446	#	0	0	0		
		Closing Equity								
34,595		Closing Accumulated Funds	38,979	31,465	-19	33,205	34,920	36,683		
34,595		Balance at the End of the Reporting Period	38,979	31,465	-19	33,205	34,920	36,683		

Notes to Budget Statements
Significant variations are as follows:
Operating Statement 
•	interest:
–	the increase of $1.035 million in the 2010‑11 estimated outcome from the original budget reflects higher than anticipated interest rates; and
–	the decrease of $0.245 million in the 2011‑12 Budget from the 2010‑11 estimated outcome is due to lower level of investment resulting from the return of surplus funds to the Territory in 2011‑12 and from the reduction in outstanding loans.
•	other revenue:
–	the increase of $0.567 million in the 2010‑11 estimated outcome from the original budget is due to a write-down of the provision for doubtful debts in 2010‑11; and
–	the decrease of $0.306 million in the 2011‑12 Budget from the 2010‑11 estimated outcome is due to a lower write-down of the provision for doubtful debts in 2011‑12.
•	
supplies and services:
–	the decrease of $0.024 million in the 2010‑11 estimated outcome from the original budget is due to lower than budgeted consultant expenses; and 
–	the increase of $0.032 million in the 2011‑12 Budget from the 2010‑11 estimated outcome is mainly due to costs associated with an external financial review of the Home Loan Portfolio.
Balance Sheet
•	current and non current receivables:
–	the decrease of $0.104 million in the 2010‑11 estimated outcome from the original budget is due to a reduction in outstanding loans; and
–	the decrease of $0.217 million in the 2011‑12 Budget from the 2010‑11 estimated outcome is due to an anticipated reduction in outstanding loans.
•	non current investments:
–	the increase of $4.394 million in the 2010‑11 estimated outcome from the original budget is mainly due to investment of surplus cash; and 
–	the decrease of $9.911 million in the 2011‑12 Budget from the 2010‑11 estimated outcome is due to the return of surplus funds to the Territory of $9.446 million in 2011‑12.
•	current and non current interest bearing liabilities:  the decrease of $2.647 million in the 2011‑12 Budget from the 2010‑11 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
Variances in the statement are explained in the notes above.
Statement of Changes in Equity
Variances in the statement are explained in the notes above.