Aboriginal Housing Office 

Financial report
 for the year ended 30 June 2007	

	
		Consolidated	Parent	
						
		2007	2006	2007	2006	
	Notes	$'000	$'000	$'000	$'000	
Revenue						
Rental income			24,726			22,111			24,726			22,111		
Interest	2(a)		1,750			1,398			1,750			1,398		
Grants and contributions	2(b)		60,677			67,342			60,677			67,342		
Sundry income	2(c)		18,613			8,734			18,613			8,734		
Total Revenue			105,766			99,585			105,766			99,585		
Gain / (loss) on disposal	3		(1,923)			(1,682)			(1,923)			(1,682)		
Other gains / (losses)	4		(1,040)			(444)			(1,040)			(444)		
Expenses						
Employee related 	5(a)		6,755			6,416			6,755			6,415		
Other operating expenses	5(b)		2,559			2,461			2,559			2,462		
Depreciation and amortisation	5(c)		5,575			5,501			5,575			5,501		
Housing program ‑ other expenses	6		29,663			39,397			29,663			39,397		
Property expenses ‑ rental program	5(d)		20,911			19,434			20,911			19,434		
Total Expenses			65,463			73,209			65,463			73,209		
SURPLUS FOR THE YEAR			37,340			24,250			37,340			24,250		

The accompanying notes form part of these financial statements.	

		Consolidated	Parent	
						
		2007	2006	2007	2006	
	Notes	$'000	$'000	$'000	$'000	
Net increase / (decrease) in property, plant and equipment asset revaluation reserve			27,608			(33,081)			27,608			(33,081)				
TOTAL INCOME AND EXPENSE RECOGNISED DIRECTLY IN EQUITY			27,608			(33,081)			27,608			(33,081)				
Surplus for the year			37,340			24,250			37,340			24,250				
TOTAL INCOME AND EXPENSE RECOGNISED FOR THE YEAR	14		64,948			(8,831)			64,948			(8,831)				

The accompanying notes form part of these financial statements.	

		Consolidated	Parent	
						
		             2007	            2006	             2007	             2006	
	Notes	             $'000	            $'000	             $'000	             $'000	
ASSETS						
Current Assets						
Cash and cash equivalents	7		43,196			35,836			43,196			35,836		
Receivables	8		1,241			1,643			723			1,405		
Assets held for sale			-			123			-			123		
Other	11		931			650			-			-		
Total Current Assets			45,368			38,252			43,919			37,364		
Non‑Current Assets						
Property, plant and equipment						
   Land and Buildings	9		879,074			817,087			879,074			817,087		
   Plant and Equipment	9		1,617			1,919			1,617			1,919		
   Capital Work in Progress	9		9,162			12,968			9,162			12,968		
Total Property, plant and equipment	9		889,853			831,974			889,853			831,974		
Intangible assets	10		476			332			476			332		
Other	11		-			60			-			60		
Total Non‑Current Assets			890,329			832,366			890,329			832,366		
Total Assets			935,697			870,618			934,248			869,730		
Current Liabilities						
Payables	12		12,231			17,731			13,718			20,088		
Provisions	13		1,641			1,745			-			-		
Total Current Liabilities			13,872			19,476			13,718			20,088		
Non‑Current Liabilities						
Provisions	13		1,445			1,650			150			150		
Payables			43			60			43			60		
Total Non‑Current Liabilities			1,488			1,710			193			210		
Total Liabilities			15,360			21,186			13,911			20,298		
Net Assets			920,337			849,432			920,337			849,432		
EQUITY						
Reserves	14		376,050			342,485			376,050			342,485		
Accumulated funds	14		544,287			506,947			544,287			506,947		
Total Equity			920,337			849,432			920,337			849,432		

The accompanying notes form part of these financial statements.	

		Consolidated	Parent	
						
		2007	2006	2007	2006	
	Notes	$'000	$'000	$'000	$'000	
CASH FLOWS FROM OPERATING ACTIVITIES								
Receipts								
Rental program			25,171			22,426			25,171			22,426				
Interest			1,750			1,398			1,750			1,398				
Sundry income			364			57			364			57				
Total Receipts			27,285			23,881			27,285			23,881				
Payments								
Rental program			(20,911)			(20,124)			(20,911)			(20,124)				
Employee related and other expenses			(7,949)			(6,366)			(7,949)			(6,366)				
Housing program			(37,401)			(42,038)			(37,401)			(42,038)				
Total Payments			(66,261)			(68,528)			(66,261)			(68,528)				
Cash Flows From Government								
Government grants			60,677			69,671			60,677			69,671				
Net Cash Flows From Government			60,677			69,671			60,677			69,671				
NET CASH FLOWS FROM OPERATING ACTIVITIES	17		21,701			25,024			21,701			25,024				
CASH FLOWS FROM INVESTING ACTIVITIES								
Proceeds from sale of Land and Buildings			637			3,057			637			3,057				
Purchases of Land and Buildings, Plant and Equipment and Infrastructure Systems			(14,978)			(24,666)			(14,978)			(24,666)				
NET CASH FLOWS FROM INVESTING ACTIVITIES			(14,341)			(21,609)			(14,341)			(21,609)				
NET INCREASE IN CASH			7,360			3,415			7,360			3,415				
Opening cash and cash equivalents			35,836			32,421			35,836			32,421				
CLOSING CASH AND CASH EQUIVALENTS	7		43,196			35,836			43,196			35,836				

The accompanying notes form part of these financial statements.	

1	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	
(a)	Statement of Principal Activity / Reporting Entity	
	
The Aboriginal Housing Office (the Office) is a statutory authority established in 1998 pursuant to the Aboriginal Housing Act 1998. The Office plans and administers the policies, programs and asset base for Aboriginal Housing in New South Wales.  This includes resource allocation, sector wide policy, strategic planning and monitoring outcomes and performance in the Aboriginal housing sector.	
	
The Office, as a reporting entity, comprises all the entities under its control, including the Aboriginal Housing Office Group of Staff (the Group). The staff of the Office were transferred to the Group with effect from 1 July 2004. All employee provisions are now held within the Group and are shown in the consolidated section of these statements.	
	
In the process of preparing the consolidated financial statements, all inter‑entity transactions and balances have been eliminated.	
	
The Office is a not‑for‑profit entity (as profit is not its principal objective) and it has no cash generating units. The reporting entity is consolidated as part of the NSW Total State Sector Accounts.	
	
The consolidated financial report for the year ended 30 June 2007 has been authorised for issue by the Chairman on behalf of the Board on 18 October 2007.	
(b)	Basis of Preparation	
	
The Office's financial statements are a general purpose financial report which has been prepared in accordance with:	
	
•		
applicable Australian Accounting Standards (which include Australian equivalents to International Financial Reporting Standard (AEIFRS)); and	
	•		the requirements of the Public Finance and Audit Act 1983 and Regulation 2005	
	
Property, plant and equipment, and assets (or disposal groups) held for sale are measured at fair value. Other financial statement items are prepared in accordance with the historical cost convention.	
	
Judgements, key assumptions and estimations that management has made are disclosed in the relevant notes to the financial statements.	
	
All amounts are rounded to the nearest one thousand dollars and are expressed in Australian currency.	
(c)	Statement of Compliance	
	
The consolidated financial statements and notes comply with Australian Accounting Standards, which include AEIFRS.	
(d)	Income Recognition	
	
Income is measured at the fair value of the consideration or contribution received or receivable. Additional comments regarding the accounting policies for the recognition of income are discussed below.	
	
(i)	
Grants and Contributions from Other Bodies	

Grants and contributions from other bodies (including donations) are generally recognised as income when the Office obtains control over the assets.  Control over contributions is normally obtained upon the receipt of cash.	
	
(ii)	
Rental Revenue	

The Office recognises rental revenue in accordance with AASB 117.	
	
(iii)	
Rendering of Services	

Revenue is recognised when the service is provided or by reference to the stage of completion (based on labour hours incurred to date).	

(iv)	
Investment Income	

Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement.   	
(e)	Employee Benefits and other provisions	
	
(i)	
Salaries and Wages, Annual Leave, Sick Leave and On‑Costs	

Liabilities for salaries and wages (including non‑monetary benefits), annual leave and paid sick leave that fall due wholly within 12 months of the reporting date are recognised and measured in respect of employees' services up to the reporting date at undiscounted amounts based on the amounts expected to be paid when the liabilities are settled.	

Long‑term annual leave that is not expected to be taken within twelve months is measured at present value in accordance with AASB 119 Employee Benefits.	

Unused non‑vesting sick leave does not give rise to a liability as it is not considered probable that sick leave taken in the future will be greater than the benefits accrued in the future.	

The outstanding amounts of payroll tax, workers' compensation insurance premiums and fringe benefits tax, which are consequential to employment, are recognised as liabilities and expenses where the employee benefits to which they relate have been recognised.	
	
(ii)	
Long Service Leave and Superannuation	

The Group's liabilities for long service leave and superannuation are not assumed by the Crown Entity.  The Group contributes to the Non Budget Sector Treasury Managed Long Service Pool Fund.	

Long service leave is measured at present value in accordance with AASB 119 Employee Benefits. This is based on the application of certain factors (specified in NSWTC 07/04) to employees with 5 or more years of service, using current rates of pay. These factors were determined based on an actuarial review to approximate present value.	

The superannuation expense for the financial year is determined by using the formulae specified in the Treasurer's Directions.  The expense for certain superannuation schemes (i.e. Basic Benefit and First State Super) is calculated as a percentage of the employees' salary.  For other superannuation schemes (i.e. State Superannuation Scheme and State Authorities Superannuation Scheme), the expense is calculated as a multiple of the employees' superannuation contributions.	
	
(iii)	
Other Provisions	

Other provisions exist when the Office has a present legal or constructive obligation as a result of a past event, and it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.	
(f)	Insurance	
	
The Treasury Managed Fund (TMF) through Allianz provides coverage for most government agencies' business operations.  TMF covers the Office for the Board, head office and regional operations, but it does not insure risks relating to the Office's property portfolio.	
	
The Office self insures its property portfolio for fire damage, vehicle impact, and tempest less than $200,000.  Based on past experience, and from research undertaken, this remains more economical than buying insurance.  Funds continue to be set aside for self insurance purposes.  In 2006‑07, expenditure on fire restoration amounted to $671,111.	
	
Insurance arrangements for full public liability and catastrophe at an excess level of $200,000 for the property portfolio will be maintained through the Department of Housing, as part of their insurance arrangement. $300 million is allocated in 2006‑07.	

(g)	Accounting for the Goods and Services Tax (GST)	
	
Revenues, expenses and assets are recognised net of GST, except where:	
	
•		
the amount of GST incurred by the Office as a purchaser that is not recoverable from the Australian Taxation Office is recognised as part of the cost of acquisition of an asset or as part of an item of expense;	
	•		receivables and payables are stated with the amount of GST included; and	
	•		the cash flow statement shows the receipts and payments at the gross amount (inclusive of GST).	
(h)	Capitalisation Thresholds	
	
Property, plant and equipment and intangible assets costing $5,000 and above individually (or forming part of a network costing more than $5,000) are capitalised.	
(i)	Revaluation of Property, Plant and Equipment	
	
Physical non‑current assets are valued in accordance with the Valuation of Physical Non‑Current Assets at Fair Value” Policy and Guidelines Paper (TPP 07‑1).  This policy adopts fair value in accordance with AASB 116 Property, Plant and Equipment.	
	
Property, plant and equipment is measured on an existing use basis, where there are no feasible alternative uses in the existing natural, legal, financial and socio‑political environment. However, in the limited circumstances where there are feasible alternative uses, assets are valued at their highest and best use.	
	
Fair value of property, plant and equipment is determined based on the best available market evidence, including current market selling prices for the same or similar assets. Where there is no available market evidence, the asset’s fair value is measured at its market buying price, the best indicator of which is depreciated replacement cost.	
	
The Office revalues each class of property, plant and equipment at least every five years or with sufficient regularity to ensure that the carrying amount of each asset in the class does not differ materially from its fair value at reporting date.  The full revaluation was completed on 30 June 2007 and was based on an independent assessment.	
	
Non‑specialised assets with short useful lives are measured at depreciated historical cost, as a surrogate for fair value.	
	
When revaluing non‑current assets by reference to current prices for assets newer than those being revalued (adjusted to reflect the present condition of the assets), the gross amount and the related accumulated depreciation are separately restated.	
	
For other assets, any balances of accumulated depreciation at the revaluation date in respect of those assets are credited to the asset accounts to which they relate. The net asset accounts are then increased or decreased by the revaluation increments or decrements.	
	
Revaluation increments are credited directly to the asset revaluation reserve, except that, to the extent that an increment reverses a revaluation decrement in respect of that class of asset previously recognised as an expense in the income statement and the increment is recognised immediately as revenue in the income statement.	
	
Revaluation decrements are recognised immediately as expenses in the income statement, except that, to the extent that a credit balance exists in the asset revaluation reserve in respect of the same class of assets, they are debited directly to the asset revaluation reserve.	
	
As a not‑for‑profit entity, revaluation increments and decrements are offset against one another within a class of non‑current assets, but not otherwise.	
	
Where an asset that has previously been revalued is disposed of, any balance remaining in the asset revaluation reserve in respect of that asset is transferred to accumulated funds.

	
(j)	Impairment of Property, Plant and Equipment	
	
 As a not‑for‑profit entity with no cash generating units, the Office is effectively exempted from AASB 136 Impairment of Assets and impairment testing. This is because AASB 136 modifies the recoverable amount test to the higher of fair value less costs to sell and depreciated replacement cost. This means that, for an asset already measured at fair value, impairment can only arise if selling costs are material. Selling costs are regarded as not material.	
(k)	Depreciation of Property, Plant and Equipment	
	
Depreciation is provided for on a straight‑line basis for all depreciable assets so as to write off the depreciable amount of each asset as it is consumed over its useful life to the Office.  	
	
All material separately identifiable components of assets are depreciated over their shorter useful lives.	
	
Land is not a depreciable asset.    	
	
Depreciation Rates	
Years			
	Property				
	Building		50				

	Plant & Equipment				
	Office furniture and fittings		7				
	Computer equipment and software		4				
	Leasehold improvements ‑ depreciated over the period of the lease or its useful life whichever is shorter.  The current leasehold agreement provides a four month rent free period that will be fully amortised over the period of the lease.						

(l)	Restoration Cost	
	
The estimated cost of dismantling and removing an asset and restoring the site is included in the cost of an asset, to the extent it is recognised as a liability.	
(m)	Maintenance	
	
Day‑to‑day servicing costs or maintenance are charged as expenses as incurred, except where they relate to the replacement of a component of an asset, in which case the costs are capitalised and depreciated.	
(n)	Leased Assets	
	
A distinction is made between finance leases which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of the leased assets, and operating leases under which the lessor effectively retains all such risks and benefits.	
	
Operating lease payments are charged to the Income Statement in the periods in which they are incurred.	
(o)	Intangible Assets	
	
The Office recognises intangible assets only if it is probable that future economic benefits will flow to the Office and the cost of the asset can be measured reliably. Intangible assets are measured initially at cost. Where an asset is acquired at no or nominal cost, the cost is its fair value as at the date of acquisition.	
	
The useful lives of intangible assets are assessed to be finite.	
	
Intangible assets are subsequently measured at fair value only if there is an active market. As there is no active market for the Office’s intangible assets, the assets are carried at cost less any accumulated amortisation.	
	
The Office's intangible assets are amortised using the straight line method over a period of four years. 	
	
In general, intangible assets are tested for impairment where an indicator of impairment exists. However, as a not‑for‑profit entity with no cash generating units, the Office is effectively exempted from impairment testing, refer para 1(j).	

(p)	Receivables	
	
Short‑term receivables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial.	
(q)	Impairment of Financial Assets	
	
All financial assets, except those measured at fair value through profit and loss, are subject to an annual review for impairment. An allowance for impairment is established when there is objective evidence that the entity will not be able to collect all amounts due.	
	
For financial assets carried at amortised cost, the amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. The amount of the impairment loss is recognised in the Income Statement.	
	
When an available for sale financial asset is impaired, the amount of the cumulative loss is removed from equity and recognised in the Income Statement, based on the difference between the acquisition cost (net of any principal repayment and amortisation) and current fair value, less any impairment loss previously recognised in the Income Statement.	
	
Any reversals of impairment losses are reversed through the Income Statement, where there is objective evidence, except reversals of impairment losses on an investment in an equity instrument classified as “available for sale” must be made through the reserve. Reversals of impairment losses of financial assets carried at amortised cost cannot result in a carrying amount that exceeds what the carrying amount would have been had there not been an impairment loss.	
(r)	Assets Held For Sale	
	
The Office had certain non‑current assets (or disposal groups) classified as held for sale in 2005‑06, where their carrying amount will be recovered principally through a sale transaction, not through continuing use. Non‑current assets (or disposal groups) held for sale are recognised at the lower of carrying amount and fair value less costs to sell. These assets are not depreciated while they are classified as held for sale.    	
(s)	Payables 	
	
These amounts represent liabilities for goods and services provided to the Office and other amounts, including interest. Payables are recognised initially at fair value, usually based on the transaction cost or face value. Subsequent measurement is at amortised cost using the effective interest method. Short‑term payables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial.	
(t)	New Australian Accounting Standards Issued but not Effective	
	
At reporting date, a number of Australian Accounting Standards adopted by the Australian Accounting Standards Board have been issued but are not yet operative and have not been early adopted by the Office.  NSW Treasury mandate precludes early adoption of these accounting standards.	
	
The Office has reviewed the new accounting standards and at this stage does not anticipate any impact on the figures reported in this financial report.	
2	REVENUES	

	Consolidated	Parent	
	 	 	 	 	
	2007	2006	2007	2006	
	$'000	$'000	$'000	$'000	
(a)	Interest					
Interest		1,750			1,398			1,750			1,398		
		1,750			1,398			1,750			1,398		

	Consolidated	Parent	
			 	 	
	2007	2006	2007	2006	
	$'000	$'000	$'000	$'000	
(b)	Grants and contributions					
Commonwealth / State Housing Agreement (CSHA)		30,664			33,439			30,664			33,439		
Aboriginal Community Development Program (ACDP)		11,109			15,451			11,109			15,451		
Other Government Sector Grants		3,254			-			3,254			-		
Community Housing Infrastructure Program (CHIP)		13,250			13,312			13,250			13,312		
National Aboriginal Health Strategy (NAHS)		-			2,740			-			2,740		
Healthy Indigenous Housing Initiatives (HIHI)		2,400			2,400			2,400			2,400		
		60,677			67,342			60,677			67,342		

	Consolidated	Parent	
	 	 	 	 	
	2007	2006	2007	2006	
	$'000	$'000	$'000	$'000	
(c)	Sundry income					
Assets acquired free of liability		18,489			8,438			18,489			8,438		
Lease incentive		-			17			-			17		
Other		4			3			4			3		
Recoup of Program Fees		-			231			-			231		
Superannuation ‑ defined benefit plans		120			45			120			45		
		18,613			8,734			18,613			8,734		
3	GAIN / (LOSS) ON DISPOSAL	

	Consolidated	Parent	
	 	 	 	 	
	2007	2006	2007	2006	
	$'000	$'000	$'000	$'000	
					
Gain / (loss) on disposal of land and buildings							
Proceeds from disposal		637			3,057			637			3,057				
Written down value of assets disposed		(547)			(3,450)			(547)			(3,450)				
Net gain / (loss) on disposal of land and buildings		90			(393)			90			(393)				

	Consolidated	Parent	
	 	 	 	 	
	2007	2006	2007	2006	
	$'000	$'000	$'000	$'000	
					
Gain / (loss) on transfers / demolitions							
Written down value of assets demolished		(1,142)			(571)			(1,142)			(571)				
Written down value of assets transferred		(807)			(621)			(807)			(621)				
Written down value of assets retired		(64)			(97)			(64)			(97)				
Net gain / (loss) on transfers / demolitions / retirements		(2,013)			(1,289)			(2,013)			(1,289)				

Gain / (loss) on disposal 		(1,923)			(1,682)			(1,923)			(1,682)				

4	OTHER GAINS / (LOSSES)	

	Consolidated	Parent	
	 	 	 	 	
	2007	2006	2007	2006	
	$'000	$'000	$'000	$'000	
					
Impairment of receivables		(1,040)			(444)			(1,040)			(444)		
					
Other gains / (losses)		(1,040)			(444)			(1,040)			(444)		
5	EXPENSES	

	Consolidated	Parent	
	 	 	 	 	
	2007	2006	2007	2006	
	$'000	$'000	$'000	$'000	
(a)	Employee related expenses					
Salaries and wages (including recreation leave)		5,788			5,364			-			1		
Superannuation ‑ defined contribution plan		404			368			20			15		
Long service leave		208			252			-			-		
Workers compensation insurance		13			18			-			-		
Payroll and Fringe Benefits tax		342			408			13			9		
Job Assistance Scheme		-			6			-			-		
Employee Services Fees		-			-			6,722			6,390		
		6,755			6,416			6,755			6,415		

	Consolidated	Parent	
	 	 	 	 	
	2007	2006	2007	2006	
	$'000	$'000	$'000	$'000	
(b)	Other operating expenses					
General administration		125			341			125			341		
Auditor's remuneration ‑ audit or review of the financial   reports		82			54			82			54		
Internal Audit Fees		62			39			62			39		
CCSU Fees		508			407			508			407		
Board Members Fees		212			173			212			173		
Board Expenses		107			79			107			79		
Consultancy		131			75			131			75		
Contractors		197			33			197			33		
Insurance		22			17			22			17		
Advertising and promotions		10			15			10			15		
Minor equipment purchases		22			68			22			68		
Motor vehicle expenses		53			69			53			69		
Motor vehicle leasing costs		96			100			96			100		
Postage and freight		24			19			24			19		
Printing and stationery		69			83			69			84		
Accommodation		417			395			417			395		
Training (staff development)		10			3			10			3		
Travel		232			279			232			279		
Other expenses		11			25			11			25		
Data processing services		65			71			65			71		
Telephone		89			98			89			98		
Maintenance		15			18			15			18		
		2,559			2,461			2,559			2,462		

	Consolidated	Parent	
	 	 	 	 	
	2007	2006	2007	2006	
	$'000	$'000	$'000	$'000	
(c)	Depreciation and amortisation expenses					
Depreciation					
 Land and Buildings		5,047			5,064			5,047			5,064		
 Computer equipment		116			101			116			101		
 Plant and equipment		49			48			49			48		
 Furniture and fittings		10			16			10			16		
 Leasehold		160			156			160			156		
Total Depreciation		5,382			5,385			5,382			5,385		
Amortisation					
 Intangible Assets		193			116			193			116		
		5,575			5,501			5,575			5,501		

	Consolidated	Parent	
	 	 	 	 	
	2007	2006	2007	2006	
	$'000	$'000	$'000	$'000	
(d)	Property Expenses					
Rates (council, water)		7,470			6,288			7,470			6,288		
Repairs, insurance etc.		9,353			9,310			9,353			9,310		
Department of Housing(DOH) management fee		3,395			3,316			3,395			3,316		
Other expenses		693			520			693			520		
		20,911			19,434			20,911			19,434		

6	ABORIGINAL HOUSING PROGRAM	

The Aboriginal Housing Program (AHP) provides funds towards the acquisition, repair and upgrade of Aboriginal housing and the support of the Aboriginal housing sector.	

The Housing Aboriginal Communities Program (HACP) provides rental accommodation and housing related assistance for Aboriginal people in properties managed by Aboriginal community based housing organisations.	

The Office Acquisition Program provides rental housing for Aboriginal people in dwellings owned by the Office.  In addition to the properties transferred to the Office by the Department of Housing (DOH) in January 1999, the Office also acquires other properties under this program.  These properties form part of the Office's property portfolio (Note 9).	

Project management of the Aboriginal Housing Program for purchasing and construction activities are provided by Resitech, a division of DOH.	

	2007	2007	2006	2006	
Programs comprised of:	Employee related	Other expenses	Total
$'000	Employee related	Other expenses	Total
$'000	
Sector Support and Resourcing		715			390			1,105			1,030			461			1,491		
AHO Upgrade		115			4,144			4,259			142			5,167			5,309		
AHO ‑ Asset Management		102			1,047			1,149			87			712			799		
Healthy Indigenous Housing Initiatives (HIHI)		377			710			1,087			-			17			17		
Tenants Initiative		-			2			2			-			61			61		
Aboriginal Community Development Program (ACDP)		-			11,111			11,111			-			15,451			15,451		
Home Ownership		-			1			1			-			1,018			1,018		
Housing for Aboriginal Communities Program (HACP)		-			2,804			2,804			-			5,525			5,525		
Community Repairs and Maintenance		364			6,548			6,912			232			6,786			7,018		
Resourcing Community Organisation		194			2,906			3,100			268			4,199			4,467		
Total		1,867			29,663			31,530			1,759			39,397			41,156		

Refer Note 5 (a) for details of employee related expenses.	
7	CASH AND CASH EQUIVALENTS	

	Consolidated	Parent	
			 	 	
	2007	2006	2007	2006	
	$'000	$'000	$'000	$'000	
					
Cash at bank and on hand		43,190			35,830			43,190			35,830		
Deposits at call		6			6			6			6		
		43,196			35,836			43,196			35,836		
	
For the purposes of the Cash Flow Statement, cash and cash equivalents include cash at bank and cash on hand.	
	
Cash and cash equivalent assets recognised in the balance sheet are reconciled at the end of the financial year to the Cash Flow Statement as follows:	
					
Cash and cash equivalents (per Balance Sheet)		43,196			35,836			43,196			35,836		
Closing cash and cash equivalents (per Cash Flow Statement)		43,196			35,836			43,196			35,836		

8	CURRENT ASSETS – RECEIVABLES	

	Consolidated	Parent	
			 	 	
	2007	2006	2007	2006	
	$'000	$'000	$'000	$'000	
Current Receivables					
Employee services		518			238			-			-		
Rental Debtors		3,179			2,991			3,179			2,991		
Goods and Service Tax recoverable from ATO		462			647			462			647		
Sundry debtors		22			74			22			74		
Department of Housing		169			591			169			591		
		4,350			4,541			3,832			4,303		
Less: Allowance for impairment		3,109			2,898			3,109			2,898		
		1,241			1,643			723			1,405		
9	PROPERTY, PLANT AND EQUIPMENT	

	Land and Buildings	Plant and Equipment	 Capital Work in Progress	Total	
	$'000	$'000	 $'000	$'000	
At 1 July 2006					
Gross Carrying Amount		817,089			2,435			12,968			832,492		
Accumulated depreciation and impairment		(2)			(516)			-			(518)		
Net carrying amount		817,087			1,919			12,968			831,974		

At 30 June 2007					
Gross Carrying Amount		879,074			2,451			9,162			890,687		
Accumulated depreciation and impairment		-			(834)			-			(834)		
Net carrying amount		879,074			1,617			9,162			889,853		

Reconciliation	
A reconciliation of the carrying amount of each class of property, plant and equipment at the beginning and end of the current reporting period is set out below.		

	Land and Buildings	Plant and Equipment	 Capital Work in Progress	Total	
	$'000	$'000	 $'000	$'000	
Year ended 30 June 2007					
Net carrying amount at start of year		817,087			1,919			12,968			831,974		
Additions		-			36			13,610			13,646		
Disposals		(424)			(18)			-			(442)		
Depreciation expense		(5,047)			(335)			-			(5,382)		
Other movements		1		-		-		1	
Transfers to Department of Housing		(807)			-			-			(807)		
Transfers from Department of Housing		1,303			-			-		             1,303			
Transfers from communities (including ACDP)		17,186			-			-			17,186		
Transfers from work in progress		17,416			-			(17,416)			-		
Retired 		(64)			-			-			(64)		
Demolition		(1,142)			-			-			(1,142)		
Revaluation		33,565			-			-			33,565		
Write back on depreciation		-			15			-			15		
Net carrying amount at end of year		879,074			1,617			9,162			889,853		

10	INTANGIBLE ASSETS	
	Total	
	$'000	
At 1 July 2006		
Cost (gross carrying amount)		618		
Accumulated amortisation and impairment		(286)		
Net carrying amount		332		

At 30 June 2007		
Cost (gross carrying amount)		955		
Accumulated amortisation and impairment		(479)		
Net carrying amount		476		

Year ended 30 June 2007				
Net carrying amount at start of year		332				
Additions		337				
Amortisation 		(193)				
Net carrying amount at end of year		476				

11	CURRENT / NON ‑ CURRENT ASSETS ‑ OTHER	

	Consolidated	Parent	
			 	 	
	2007	2006	2007	2006	
	$'000	$'000	$'000	$'000	
Current 					
Long service leave pool contribution		931			650			-			-		
		931			650			-			-		

	Consolidated	Parent	
			 	 	
	2007	2006	2007	2006	
	$'000	$'000	$'000	$'000	
Non‑current 					
Lease incentive		-			60			-			60		
		-			60			-			60		
12	CURRENT LIABILITIES – PAYABLES	

	Consolidated	Parent	
			 	 	
	2007	2006	2007	2006	
	$'000	$'000	$'000	$'000	
					
Accrued salaries, wages and on‑costs		690			204			-			-		
Trade creditors		2,933			1,738			2,933			1,738		
Sundry creditors		213			25			213			25		
GST‑Payable to ATO		783			414			783			414		
Housing program creditors		7,612			15,350			7,612			15,350		
Payable for personnel services		-			-			2,177			2,561		
		12,231			17,731			13,718			20,088		

13	CURRENT / NON‑CURRENT LIABILITIES ‑ PROVISIONS	

	Consolidated	Parent	
			 	 	
	2007	2006	2007	2006	
	$'000	$'000	$'000	$'000	
Current 					
Employee benefits and related on‑costs					
Recreation leave		567			612			-			-		
Long service leave		3			324			-			-		
Payroll tax		140			148			-			-		
Fringe benefits tax		-			11			-			-		
Long service leave pool contribution		931			650			-			-		
		1,641			1,745			-			-		

	Consolidated	Parent	
			 	 	
	2007	2006	2007	2006	
	$'000	$'000	$'000	$'000	
Non‑current 					
Superannuation		1,215			1,449			-			-		
Long service leave and related oncosts		80			51			-			-		
Restoration costs		150			150			150			150		
		150			150			150			150		
		1,445			1,650			150			150		

Aggregate provisions for personnel services	

	Consolidated	Parent	
	2007	2006	2007	2006	
	$'000	$'000	$'000	$'000	
Provisions – current		1,641			1,745			-			-		
Provisions ‑ non‑current		1,295			1,500			-			-		
Accrued salaries, wages and on‑costs		690			204			-			-		
		3,626			3,449			-			-		

SUPERANNUATION FUNDS					
					
30 June 2007 superannuation position 					
Basis – AASB 119					

 	SASS	SANCS	SSS	TOTAL	
 	30-Jun-07	30-Jun-07	30-Jun-07	30-Jun-07	
Member Numbers	 	 	 	 	
	 				
Contributors	4	11	7	22	
Deferred benefits	0	0	0	0	
Pensioners	0	0	0	0	
Pensions fully commuted	0	0	0	0	
Superannuation Position for AASB 119 purposes	A$	A$	A$	A$	
					
Accrued liability	492,053	390,476	4,323,070	5,205,599	
 	 	 	 	 	
Estimated reserve account balance	(259,668)	(261,098)	(3,469,397)	(3,990,163)	
 	232,385	129,378	853,673	1,215,436	
					
Future Service Liability (Note 1)	(230,768)	(158,259)	(374,068)	(763,095)	
Surplus in excess of recovery available from schemes	0	0	0	0	
Net (asset)/liability to be recognised in balance sheet	232,385	129,378	853,673	1,215,436	
					
Note 1:					
The Future Service Liability (FSL) does not have to be recognised by an employer.  It is only used to determine if an asset ceiling limit should be imposed (AASB 119, para 58).  Under AASB 119, any prepaid superannuation asset recognised cannot exceed the total of any unrecognised past service cost and the present value of any economic benefits that may be available in the form of refunds from the plan or reductions in future contributions to the plan.  Where the “surplus in excess of recovery” is zero, no asset ceiling limit is imposed.	

Disclosure Items 30 June 2007					

Accounting policy {AASB 119 –  paragraph 120A(a) }					
					
Actuarial gains and losses are recognised immediately in profit and loss in the year in which they occur.			
					
Fund information {AASB 119 – paragraph 120A(b) }					
					
The Pooled Fund holds in trust the investments of the closed NSW public sector superannuation schemes:			
State Authorities Superannuation Scheme (SASS)					
State Superannuation Scheme (SSS)					
Police Superannuation Scheme (PSS)					
State Authorities Non-contributory Superannuation Scheme (SANCS).				
					
These schemes are all defined benefit schemes – at least a component of the final benefit is derived from a multiple of member salary and years of membership.		
					
All the Schemes are closed to new members.					
					
Reconciliation of the present value of the defined benefit obligation {AASB 119 – paragraph 120A(c)}		
					
	SASS	SANCS	SSS		
	Financial Year to 30 June 2007	Financial Year to 30 June 2007	Financial Year to 30 June 2007		
	A$	A$	A$		
Present value of partly funded defined benefit obligations at beginning of the year	421,558	322,624	3,378,399		
Current service cost	26,865	18,406	75,599		
Interest cost	24,914	18,472	201,188		
Contributions by fund participants	14,828	0	68,378		
Actuarial (gains)/losses	13,361	(7,310)	281,635		
Benefits paid	(9,474)	38,284	317,870		
Past service cost	0	0	0		
Curtailments	0	0	0		
Settlements	0	0	0		
Business Combinations	0	0	0		
Exchange rate changes	0	0	0		
Present value of partly funded defined benefit obligations at end of the year	492,053	390,476	4,323,070		
					
Reconciliation of the fair value of fund assets {AASB 119 – paragraph 120A(e)}		
					
	SASS	SANCS	SSS		
	Financial Year to 30 June 2007	Financial Year to 30 June 2007	Financial Year to 30 June 2007		
	A$	A$	A$		
Fair value of Fund assets at beginning of the year	192,748	171,642	2,308,923		
Expected return on fund assets	15,746	13,077	180,232		
Actuarial gains/(losses)	19,347	16,578	522,134		
Employer contributions	26,473	21,517	71,860		
Contributions by Fund participants	14,828	0	68,378		
Benefits paid	(9,474)	38,284	317,870		
Settlements	0	0	0		
Business combinations	0	0	0		
Exchange rate changes	0	0	0		
Fair value of Fund assets at end of the year	259,668	261,098	3,469,397		

					
Reconciliation of the assets and liabilities recognised in the balance sheet {AASB 119 – paragraphs 120A(d) and (f)}		
					
	SASS	SANCS	SSS		
	Financial Year to 30 June 2007	Financial Year to 30 June 2007	Financial Year to 30 June 2007		
	A$	A$	A$		
Present value of partly funded defined benefit obligations at end of year	492,053	390,476	4,323,070		
Fair value of fund assets at end of year	(259,668)	(261,098)	(3,469,397)		
Subtotal	232,385	129,378	853,673		
Unrecognised past service cost	0	0	0		
Unrecognised gain/(loss) 	0	0	0		
Adjustment for limitation on net asset	0	0	0		
Net Liability/(Asset) recognised in balance sheet at end of year	232,385	129,378	853,673		
					
Expense recognised in income statement {AASB 119 – paragraph 46 & 120A(g)}		
					
 	SASS	SANCS	SSS		
	Financial Year to 30 June 2007	Financial Year to 30 June 2007	Financial Year to 30 June 2007		
					
Components Recognised in Income Statement	A$	A$	A$		
Current service cost	26,865	18,406	75,599		
Interest cost	24,914	18,472	201,188		
Expected return on Fund assets (net of expenses)	(15,746)	(13,077)	(180,232)		
Actuarial losses/(gains) recognised in year	(5,986)	(23,887)	(240,499)		
Past service cost	0	0	0		
Movement in adjustment for limitation on net asset	0	0	0		
Curtailment or settlement (gain)/loss	0	0	0		
Expense/(income) recognised 	30,048	(87)	(143,943)		

Amounts recognised in the statement of recognised income and expense {AASB 119 – paragraph 120A(h)}		
					
	SASS	SANCS	SSS		
	Financial Year to 30 June 2007	Financial Year to 30 June 2007	Financial Year to 30 June 2007		
	A$	A$	A$		
Actuarial (gains)/losses 	0	0	0		
Adjustment for limit on net asset	0	0	0		

					
Cumulative amount recognised in the statement of recognised income and expense {AASB 119 – paragraph 120A(i)}	
					
	SASS	SANCS	SSS		
	Financial Year to 30 June 2007	Financial Year to 30 June 2007	Financial Year to 30 June 2007		
	A$	A$	A$		
Cumulative amount of actuarial (gains)/losses	0	0	0		
Cumulative adjustment for limitation on net asset	0	0	0		
					
Fund assets {AASB 119 – paragraph 120A(j)}					
					
The percentage invested in each asset class at the balance sheet date:	
					
 	30-Jun-07				
Australian equities	33.6%				
Overseas equities	26.5%				
Australian fixed interest securities	6.8%				
Overseas fixed interest securities	6.4%				
Property	10.1%				
Cash	9.8%				
Other	6.8%				
					
Fair value of Fund assets {AASB 119 – paragraph 120A(k)}	
					
All Fund assets are invested by STC at arm’s length through independent fund managers.	
					
Expected rate of return on assets {AASB119 – paragraph 120A(l)}	
					
The expected return on assets assumption is determined by weighting the expected long-term return for each asset class by the target allocation of assets to each class.  The returns used for each class are net of investment tax and investment fees.		
					
Actual Return on Fund Assets {AASB 119 – paragraph 120A(m)}	
					
 	SASS	SANCS	SSS		
	Financial Year to 30 June 2007	Financial Year to 30 June 2007	Financial Year to 30 June 2007		
					
 	A$	A$	A$		
Actual return on Fund assets	30,304	29,655	381,162		

					
Valuation method and principal actuarial assumptions at the balance sheet date {AASB 119 – paragraph 120A(n)}		
a) Valuation Method					
The Projected Unit Credit (PUC) valuation method was used to determine the present value of the defined benefit obligations and the related current service costs. This method sees each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation.		
b) Economic Assumptions					
					
 	30-Jun-07				
Salary increase rate (excluding promotional increases)	4.0% pa to June 2008; 3.5% pa thereafter				
Rate of CPI Increase	2.5% pa				
Expected rate of return on assets backing current pension liabilities	7.6%				
Expected rate of return on assets backing other liabilities	7.6%				
Discount rate	6.4% pa				

c) Demographic Assumptions					
The demographic assumptions at 30 June 2007 are those used in the 2006 triennial actuarial valuation. A selection of the most financially significant assumptions is shown below:		
					
(i) SASS Contributors - the number of SASS contributors expected in any one year (out of 10,000 members), at the ages shown, to leave the fund as a result of death, disability, resignation, retirement and redundancy. Promotional salary increase rates are also shown.		

					
					
(ii) SSS Contributors - the number of SSS contributors expected in any one year (out of 10,000 members), at the ages shown, to leave the fund as a result of death, disability, resignation, retirement and preservation. Promotional salary increase rates are also shown.

					
					
(iii) SSS Commutation - the proportion of SSS members assumed to commute their pension to a lump sum in any one year.		

(iv) SSS Pensioner Mortality - assumed mortality rates (in 2006/2007) for SSS pensioners (separately for normal retirement/spouses and invalidity).		

(v) SSS Pensioner Mortality Improvements - per annum assumed rates of mortality improvement for SSS pensioners.		

					
					
Historical information {AASB119 – paragraph 120A(p)}	
					
	SASS	SANCS	SSS		
	Financial Year to 30 June 2007	Financial Year to 30 June 2007	Financial Year to 30 June 2007		
	A$	A$	A$		
Present value of defined benefit obligation	492,053	390,476	4,323,070		
Fair value of Fund assets	(259,668)	(261,098)	(3,469,397)		
(Surplus)/Deficit in Fund	232,385	129,378	853,673		
Experience adjustments – Fund liabilities 	13,361	(7,310)	281,635		
Experience adjustments – Fund assets	(19,347)	(16,578)	(522,134)		
					
Expected contributions {AASB119 – paragraph 120A(q)}	
					
	SASS	SANCS	SSS		
					
	A$	A$	A$		
Expected employer contributions	28,173	20,433	63,592		
					
Disclosures required under paragraph Aus121.1 and Aus121.2				
					
Aus121.1 Funding arrangements for employer contributions 					

(a)   Surplus/deficit					
					
The following is a summary of the 30 June 2007 financial position of the Fund calculated in accordance with AAS 25 “Financial Reporting by Superannuation Plans”:		
					
 	SASS	SANCS	SSS		
	30-Jun-07	30-Jun-07	30-Jun-07		
	A$	A$	A$		
Accrued benefits	488,151	386,985	3,972,297		
Net market value of Fund assets	(259,668)	(261,098)	(3,469,397)		
Net (surplus)/deficit	228,483	125,887	502,900		

					

					
(b)   Contribution recommendations					
					
Recommended contribution rates for the entity are: 					
					
 	SASS	SANCS	SSS		
					
 	multiple of member contributions	% member salary	multiple of member contributions		
	1.90	2.50	0.93		

(c)    Funding method					
					
The method used to determine the employer contribution recommendations at the last actuarial review was the Aggregate Funding method.  The method adopted affects the timing of the cost to the employer.		
					
Under the Aggregate Funding method, the employer contribution rate is determined so that sufficient assets will be available to meet benefit payments to existing members, taking into account the current value of assets and future contributions. 		

(d)   Economic assumptions					
					
The economic assumptions adopted for the last actuarial review of the Fund were:			
					
Weighted-Average Assumptions	 			
Expected rate of return on Fund assets backing current pension liabilities	 	7.7% pa			
Expected rate of return on Fund assets backing other liabilities	 	7.0% pa			
Expected salary increase rate	 	4.0% pa			
Expected rate of CPI increase	 	2.5% pa			

Aus121.2 Nature of asset/liability					
If a surplus exists in the employer's interest in the Fund, the employer may be able to take advantage of it in the form of a reduction in the required contribution rate, depending on the advice of the Fund's actuary.		
					
Where a deficiency exists, the employer is responsible for any difference between the employer’s share of fund assets and the defined benefit obligation.			

14	CHANGES IN EQUITY	

	Accumulated Funds	Asset Revaluation Reserve	Total Equity	
	 	 	 	 	 	 	
	2007	2006	2007	2006	2007	2006	
	$'000	$'000	$'000	$'000	$'000	$'000	
							
Consolidated			 				
Balance at the beginning of the year		506,947			482,697			342,485			375,566			849,432			858,263		
Changes in equity ‑ other than transactions with owners as owners							
Surplus / (deficit) for the year		37,340			24,250			-			-			37,340			24,250		
Increment / (decrement) on revaluation of							
Land and buildings		-			-			33,565			(33,081)			33,565			(33,081)		
Total		37,340			24,250			33,565			(33,081)			70,905			(8,831)		
Balance at the end of the financial year		544,287			506,947			376,050			342,485			920,337			849,432		

	Accumulated Funds	Asset Revaluation Reserve	Total Equity	
	 	 	 	 	 	 	
	2007	2006	2007	2006	2007	2006	
	$'000	$'000	$'000	$'000	$'000	$'000	
							
Parent			 				
Balance at the beginning of the year		506,947			482,697			342,485			375,566			849,432			858,263		
Surplus / (deficit) for the year		37,340			24,250			-			-			37,340			24,250		
Increment / (decrement) on revaluation of							
Land and buildings		-			-			33,565			(33,081)			33,565			(33,081)		
Total		37,340			24,250			33,565			(33,081)			70,905			(8,831)		
Balance at the end of the financial year		544,287			506,947			376,050			342,485			920,337			849,432		
15	COMMITMENTS FOR EXPENDITURE	

	Consolidated	Parent	
	 	 	 	 	
	2007	2006	2007	2006	
	$'000	$'000	$'000	$'000	
					
(a)	Capital Commitments				
Aggregate capital expenditure for the acquisition of property plant and equipment contracted for at balance date and not provided for:	
					
Not later than one year		1,745			1,941			1,745			1,941		
Total (including GST)		1,745			1,941			1,745			1,941		
(b)	Other Expenditure Commitments				
Aggregate other expenditure for the acquisition of goods and services contracted for at balance date and not provided for:	
					
Not later than one year		577			777			577			777		
Total (including GST)		577			777			577			777		

(c)	Operating Lease Commitments				
					
Not later than one year		493			340			493			340		
Later than one year and not later than five years		475			994			475			994		
Total (including GST)		968			1,334			968			1,334		

Commitments above include input tax credits of approximately $48,400 that are expected to be recovered from the Australian Taxation Office (ATO) (2005‑06 $66,700).	
16	CONTINGENT LIABILITIES AND CONTINGENT ASSETS
The Office has no contingent liabilities or contingent assets to disclose.	
17	RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES TO SURPLUS 	

	Consolidated	Parent	
	 	 	 	 	
	2007	2006	2007	2006	
	$'000	$'000	$'000	$'000	

Net cash used on operating activities		21,701			25,024			21,701			25,024				
Sundry income non cash		18,489			8,438			18,489			8,438				
Depreciation and amortisation		(5,575)			(5,501)			(5,575)			(5,501)				
Allowance for impairment		(1,040)			(444)			(1,040)			(444)				
Decrease / (increase) in provisions and payables		5,992			1,714			6,553			1,714				
Increase / (decrease) in receivables and other		(181)			(3,176)			(742)			(3,176)				
Increase / (decrease) in other assets		(123)			(123)			(123)			(123)				
Net gain / (loss) on sale of plant and equipment		(1,923)			(1,682)			(1,923)			(1,682)				
Surplus 		37,340			24,250			37,340			24,250				
18	FINANCIAL INSTRUMENTS	

The Office's principal financial instruments are outlined below. These financial instruments arise directly from the Office's operations or are required to finance the Office's operations. The Office does not enter into or trade financial instruments for speculative purposes. The Office does not use financial derivatives.	

Cash	

Cash comprises cash on hand, bank balances in corporate Cheques Accounts with Westpac Banking Corporation and Corporate Transaction Account with Australia and New Zealand Banking Group Limited. Interest earned on daily bank balances at a regulated interest determined by the NSW Office of State Revenue.	

Receivables	

All trade debtors are recognised as amounts receivable at balance date. Collectability of trade debtors is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off.  An allowance for impairment is raised when there is objective evidence that the Office will not be able to collect all amounts due. The credit risk is the carrying amount (net of any allowance for impairment). No interest is earned on trade debtors. The carrying amount approximates net fair value.	

Payables	

The liabilities are recognised for amounts due to be paid in the future for goods or services received, whether or not invoiced. Amounts owing to suppliers (which are unsecured) are settled in accordance with the policy set out in Treasurer's Direction 219.01.  If trade terms are not specified, payment is made no later than the end of the month following the month in which an invoice or a statement is received. Treasurer's Direction 219.01 allows the Minister to award interest for late payment.  Nil interest was payable during the year (2005‑06 Nil).	

19	AFTER BALANCE DATE EVENTS	

There were no events subsequent to balance date which affect the financial report.	

End of audited financial statements