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.
2009-10 Priorities
Strategic and operational issues to be pursued in 2009-10 include:
•	actively managing deferred assistance provided to borrowers; and
•	continuing to review and monitor loans in arrears.

Estimated Employment Level
2008-09
Budget			2008-09
Est. Outcome	2009-10
Budget	
2		  Staffing  (FTE)	2	2	

Output Classes
	Total Cost	
	2008-09
Est. Outcome
 $’000	2009-10
Budget
$’000	
Output Class 1:  Home Loan Portfolio	4,563	4,464	
Output 1.1:  Home Loan Portfolio	4,563	4,464	
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 2009-10 the Home Loan Portfolio will:
•	manage between 230 (2008-09 estimated outcome) and 195 (projection to 30 June 2010) loans; and
•	comply with the Commonwealth Government’s loan repayment schedule.

Accountability Indicators
	2008-09
Target	2008-09
Est. Outcome	2009-10
Target	
1.1:  Home Loan Portfolio	
				
a.	Administration cost per home loan managed1	$1,700	$1,530	$1,845	
Note:
1.	The estimated outcome in 2008-09 reflects the higher number of outstanding loans estimated to remain within the portfolio (230 loans) compared to the 2008-09 Budget target (215 loans).  The higher cost per loan in 2009-10 is the result of relatively fixed administration costs applied to a lower number of outstanding loans (predicted to be 195 loans) by 30 June 2010.

Home Loan Portfolio
Operating Statement
  2008-09			  2008-09	   2009-10		  2010-11	  2011-12	  2012-13		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
8,347		Interest	15,619	4,365	-72	4,277	4,176	4,072		
0		Other Revenue	600	0	-100	0	0	0		
8,347		Total Revenue	16,219	4,365	-73	4,277	4,176	4,072		
		Gains								
0		Total Gains	0	0	-	0	0	0		
8,347		Total Income	16,219	4,365	-73	4,277	4,176	4,072		
		Expenses								
143		Employee Expenses	130	133	2	138	143	150		
19		Superannuation Expenses	17	17	-	18	18	18		
205		Supplies and Services	205	208	1	215	219	226		
4,211		Borrowing Costs	4,211	4,106	-2	3,997	3,883	3,764		
4,578		Total Ordinary Expenses	4,563	4,464	-2	4,368	4,263	4,158		
3,769		Operating Result	11,656	-99	-101	-91	-87	-86		

Home Loan Portfolio
Balance Sheet
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/09			as at 30/6/09	as at 30/6/10	   Var	as at 30/6/11	as at 30/6/12	as at 30/6/13		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
16,821		Cash and Cash Equivalents	16,604	16,726	1	16,540	16,557	16,518		
958		Receivables	1,561	534	-66	459	404	361		
17,779		Total Current Assets	18,165	17,260	-5	16,999	16,961	16,879		
		Non Current Assets								
3,325		Receivables	2,613	1,896	-27	1,295	789	363		
97,446		Investments	104,118	103,224	-1	101,470	99,286	96,950		
100,771		Total Non Current Assets	106,731	105,120	-2	102,765	100,075	97,313		
118,550		TOTAL ASSETS	124,896	122,380	-2	119,764	117,036	114,192		
		Current Liabilities								
17		Payables	17	17	-	18	18	19		
2,424		Interest Bearing Liabilities	2,424	2,533	4	2,647	2,766	2,891		
158		Employee Benefits	97	104	7	112	118	125		
2,599		Total Current Liabilities	2,538	2,654	5	2,777	2,902	3,035		
		Non Current Liabilities								
88,825		Interest Bearing Liabilities	88,825	86,292	-3	83,644	80,878	77,987		
88,825		Total Non Current Liabilities	88,825	86,292	-3	83,644	80,878	77,987		
91,424		TOTAL LIABILITIES	91,363	88,946	-3	86,421	83,780	81,022		
27,126		NET ASSETS	33,533	33,434	..	33,343	33,256	33,170		
		REPRESENTED BY FUNDS EMPLOYED								
27,126		Accumulated Funds	33,533	33,434	..	33,343	33,256	33,170		
27,126		TOTAL FUNDS EMPLOYED	33,533	33,434	..	33,343	33,256	33,170		

Home Loan Portfolio
Cash Flow Statement
  2008-09			  2008-09	   2009-10		  20010-11	  2011-12	  2012-13		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
8,281		Interest Received	15,357	5,303	-65	4,285	4,185	4,081		
8,281		Operating Receipts	15,357	5,303	-65	4,285	4,185	4,081		
		Payments								
141		Related to Employees	131	133	2	138	143	148		
9		Related to Superannuation	17	17	-	18	18	18	
	
205		Related to Supplies and Services	211	201	-5	205	214	221		
4,211		Borrowing Costs	4,211	4,106	-2	3,997	3,883	3,764		
4,566		Operating Payments	4,570	4,457	-2	4,358	4,258	4,151		
3,715		NET CASH INFLOW/ (OUTFLOW) FROM OPERATING ACTIVITIES	10,787	846	-92	-73	-73	-70		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Receipts								
0		Proceeds from Sale/Maturities of Investments	0	894	#	1,753	2,184	2,337		
996		Repayment of Home Loan Principal	977	806	-18	667	553	460		
996		Investing Receipts	977	1,700	74	2,420	2,737	2,797		
		Payments								
2,357		Purchase of Investments	6,744	0	-100	0	0	0		
2,357		Investing Payments	6,744	0	-100	0	0	0		
-1,361		NET CASH INFLOW/ (OUTFLOW) FROM INVESTING ACTIVITIES	-5,767	1,700	129	2,420	2,737	2,797		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Payments								
										
2,320		Repayment of Borrowings	2,320	2,424	4	2,533	2,647	2,766		
2,320		Financing Payments	2,320	2,424	4	2,533	2,647	2,766		
-2,320		NET CASH INFLOW/ (OUTFLOW) FROM FINANCING ACTIVITIES	-2,320	-2,424	-4	-2,533	-2,647	-2,766		
34		NET INCREASE (DECREASE) IN CASH HELD	2,700	122	-95	-186	17	-39		
16,787		CASH AT BEGINNING OF REPORTING PERIOD	13,904	16,604	19	16,726	16,540	16,557		
16,821		CASH AT THE END OF THE REPORTING PERIOD	16,604	16,726	1	16,540	16,557	16,518		

Home Loan Portfolio
Statement of Changes in Equity
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/09			as at 30/6/09	as at 30/6/10	   Var	as at 30/6/11	as at 30/6/12	as at 30/6/13		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
23,357		Opening Balance	21,877	33,533	53	33,434	33,343	33,256		
		Accumulated Funds								
3,769		Operating Result for the Period	11,656	-99	-101	-91	-87	-86		
		Reserves								
3,769		Total Income And Expense For The Period	11,656	-99	-101	-91	-87	-86		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
										
27,126		Closing Balance	33,533	33,434	..	33,343	33,256	33,170		
Notes to Budget Statements
Significant variations are as follows:
Operating Statement 
•	interest:
•	the increase of $7.272 million in the 2008-09 estimated outcome from the original budget reflects the increased market valuation of the fixed interest bond investments with the Territory Banking Account; and
•	the decrease of $11.254 million in the 2009-10 Budget from the 2008-09 estimated outcome is due to a large reduction in the forecast investment interest rates associated with the current global economic crisis;
•	other revenue:  the increase of $0.6 million in the 2008-09 estimated outcome from the original budget and the decrease of $0.6 million in the 2009-10 Budget from the 2008-09 estimated outcome is due to a downward revision to the provision for doubtful debts in 2008-09 as a result of a reduction in outstanding loans;
Balance Sheet
•	current and non-current receivables:  the decrease of $1.744 million in the 2009-10 Budget from the 2008-09 estimated outcome is due to a reduction in outstanding loans;
•	non-current investments:  the increase of $6.672 million in the 2008-09 estimated outcome from the original budget reflects higher than anticipated interest revenue in 2008-09; and
•	current and non-current interest bearing liabilities:  the decrease of $2.424 million in the 2009-10 Budget from the 2008-09 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 $0.171 million in the 2009-10 Budget from the 2008-09 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.