Professional Documents
Culture Documents
ANNUAL REPORT
Purpose Objectives
Housing NSW is In its planning and work, Housing NSW’s objectives are to:
1. maintain a strong and fair public housing system
helping to build a for people most in need
stronger community 2. support a robust and diverse community housing
by providing system
We make a difference
We are committed to making a sustainable difference to social
outcomes. We are committed to achieving this with fairness and
integrity. We aim to make our actions socially, economically and
environmentally sustainable.
We help
We are committed to helping people in need. We try to
understand and respond compassionately to our clients’
circumstances. We empower people to make informed
decisions.
We work together
We are committed to treating everyone with respect – each other,
our clients, our partners and the broader community. We work as
a team, while remembering that we are individually accountable.
We work towards finding practical and affordable solutions.
Dear Minister
I am pleased to submit the Annual Report for Housing NSW for the year ending
30 June 2007 for presentation to Parliament.
This report and the accompanying financial statements fulfil the requirements of
the Public Finance and Audit Act 1983, the Annual Reports (Statutory Bodies) Act
1984, the Annual Reports (Departments) Act 1985, associated regulations and
the Housing Act 2001.
Due to an unforseen delay in finalising the audit of the Home Purchase Assistance
Fund, the statements of which are included in this Annual Report, a three-week
delay was incurred in finalising the report.
Had Housing NSW been aware of the impact of this delay at an earlier stage,
a formal request for an extension of time would have been submitted.
Following the report’s tabling in Parliament, it will be made available on the
Housing NSW website – www.housing.nsw.gov.au.
Yours sincerely
Mike Allen
Director-General
The past year has been a busy and more than $66 million was allocated
exciting year for me in my first full for community regeneration for 18
year as Director-General. As a human housing estates in six priority locations
services organisation, the NSW across NSW, including Dubbo.
Department of Housing (Housing Under a whole-of-Dubbo community
NSW) is here to serve the people of regeneration strategy, we will be
NSW by providing homes for people creating a better social environment,
in the most need in our community. supporting public housing tenants
During 2006/07, I have been and reducing antisocial behaviour. We
committed to ensuring that we have commenced rehousing tenants
deliver on the NSW State Plan and redeveloping parts of the Gordon
through particular programs and Estate to better meet the needs of
initiatives. The implementation of the tenants. A series of first-home buyer
Reshaping Public Housing reform evenings provided information to
agenda has been a focus for us with the local community and this was
the introduction in October 2006 of followed on 27 June with the first
fixed-term leases for new tenants, auction of four properties on the
followed by actual water-use charges. Gordon Estate all sold to first-home
By June 2007, 60,000 tenants were buyers. This is a great achievement
paying for their water usage and more in making available more affordable
than 70,000 homes were fitted with housing for the people of NSW.
Mike Allen water-saving devices. These steps Other major redevelopments that
Director-General shall see tenants continuing to be are continuing apace include the
Housing NSW environmentally responsible in their Bonnyrigg Living Communities Project
water usage. and the Minto Renewal Project.
We are meeting commitments Bonnyrigg Partnerships was selected
under the State Plan to deliver more as the private partner for the project
homes to older people. Over the and it is the first example of a public-
year, we began a major program of private partnership of its kind for social
redevelopment of housing for older housing in NSW. The Minto Renewal
people, with the construction of new Project will entail a complete rebuild
developments across the state, such of this estate with a greater balance of
as the building of an 18-unit complex public and private housing. Physical
in Gorokan, which won the Hunter works on the site commenced in
Special Purpose Housing Category May 2007 with Landcom, our private
in the 2006 Housing Industry partners and Campbelltown
Australia Award. For the first time, City Council.
we contacted over 9,000 elderly We now have major programs in
tenants to check on their welfare place to help the most vulnerable in
and wellbeing. our community and to engage our
We have also taken a new direction tenants and the wider community in
in the delivery of social housing a number of our projects. Many more
in Dubbo with the redevelopment projects detailed in the pages of this
of the Gordon Estate. Through report demonstrate our commitment
Building Stronger Communities, to implementing the NSW State Plan.
> Investment in new supply provided > Provided 100 scholarships and
883 new units, bringing the social 30 achievement awards for young
housing portfolio to over 146,000 people in social housing.
dwellings. > Government’s release of future
> Around 339,000 people were directions in community housing
housed, of which 262,000 live through the Planning for the
in public housing and 77,000 in Future: Community Housing, a
community housing (including Five-year Strategy for Growth
crisis accommodation). and Sustainability which will
> 57,000 assistances were provided see a doubling of homes in the
to over 33,000 households in community housing sector.
the private rental market through > Release in April 2007 of the
Rentstart, Tenancy Guarantees and Housing and Human Services
Special Assistance Subsidies. Accord, which establishes a
> Fixed-term leases of two, five and framework for cross-agency
10 years were introduced. housing and support agreements.
> By 30 June, some 60,000 tenants > Selected Bonnyrigg Partnerships
had commenced to pay for their as the private-sector partner
actual water usage and 70,000 in December 2006 to plan and
homes were fitted with water- undertake the redevelopment
saving devices, resulting in saving of the Bonnyrigg Living
the equivalent of 1,500 Olympic- Communities Project.
size pools. > Properties were auctioned and sold
> A $49.8 million Affordable Housing in June 2007 under the Building
Innovations Fund was established Stronger Communities Dubbo
and the Shoalhaven Community project for the redevelopment
Housing Scheme and Community of the Gordon Estate.
Housing Limited were preferred
applicants for the first $3.4 million
debt equity project.
> Committed $66 million for the
regeneration of six priority locations
covering 18 housing estates
across NSW.
Rental Assistance
The provision of financial assistance to
low-income households renting in the
private sector.
Household type
Public housing subsidised* tenants Community housing tenants
Group 1%
Housing register applicants Rental assistance recipients
(Rentstart and Special Assistance Subsidies)
Single 39%
Single 42%
Single parent 31%
Single parent 30%
Couple 9%
Couple 6%
Couple parent 11%
Couple parent 10%
Extended family with children 3%
Extended family with children 5%
Families with adult members only 6%
Families with adult members only 3%
Group 1%
Group 4%
Income source
Public housing subsidised* tenants Housing register applicants
Wages 5% Wages 4%
Other 4% Other 1%
Age of household head
Public housing subsidised* tenants * Rents for low-income tenants are generally subsidised. Tenants are charged market rent
but receive a rebate from Housing NSW so that the amount they pay is no more than
25% of their income.
18-24 years 2%
10 Housing NSW Annual Report 2006/07
Financial Summary
Housing NSW funds its operations The increase of $70 million in other Further to the above financial
through rental income, funding expenses in 2007/08 mainly relates summary, an additional $537.8
under the Commonwealth State to additional interest and financing million of capital funding was
Housing Agreement (CSHA), other expenses of $7 million; $22 million in spent in 2006/07.
Commonwealth/State government unspent funds carried forward from Commonwealth State Housing
funds, borrowings and interest 2006/07 for various projects/initiatives Agreement activities described in
income. under new products and services this publication are funded by the
The decrease of $48 million in other initiatives; $8 million expenses for Australian Government and the NSW
revenue for 2007/08 mainly relates affordable housing initiatives from the Government.
to one-off funding received in 2006/07 $30 million received from the Rental
from the Rental Bond Board ($30 Bond Board in 2006/07; $7 million
million) and a gain on disposal of increase in loss on disposal from
assets held for resale ($13 million) in non-current assets; and $26 million
2006/07. increase in other gains/loss mainly
due to AEIFRS adjustments.
The increase of $45 million in repairs
and maintenance in 2007/08 relates
to the proposed implementation of the
Maintenance Reform Program across
the state.
130 90 35
120
80
30
110
100 70
25
90
60
80
20
50
70
60
40
15
50
54.3
30
40
22.0
10
30 20
20 5
10
10
0 0
0
2002/03
2003/04
2004/05
2005/06
2006/07
2005/06
2002/03
2003/04
2004/05
2005/06
2006/07
2002/03
2003/04
2004/05
2006/07
225
6000
1.0
200
5000 175
0.8
150
4000
0.6 125
3000
100
54.3
0.4
75
2000
50
0.2
1000
25
0.0 0 0
2002/03
2003/04
2004/05
2005/06
2006/07
2002/03
2003/04
2004/05
2005/06
2006/07
2002/03
2003/04
2004/05
2005/06
2006/07
Responsive Planned
Relationship between the The Housing Act 2001 is administered corporation) has no appointed
Minister for Housing, Housing by the Minister for Housing (‘the members, and the Director-General
Minister’). of Housing NSW manages its affairs.
NSW and the NSW Land and
Housing Corporation The Housing Act 2001 continued Housing NSW and the Corporation
the corporate existence of the NSW act in a complementary manner to
Land and Housing Corporation (‘the achieve a unified administration of the
Corporation’) as a body corporate Housing Act 2001. Housing NSW is
representing the Crown. This is a a Division of the Government Service
continuation of the body of the same and employs all staff used by the
name constituted under the now Corporation. The Corporation holds
repealed Housing Act 1985 and the land, buildings and other assets within
Home Purchase Assistance Authority. the housing portfolio and is the entity
The Corporation (being a statutory through which all transactions occur.
A/Director
Ministerial &
Executive Services
Donna Lantavos
Oversees Directorate that Oversees Directorate that leads, Oversees Directorate that manages
investigates fraud allegations, advises and reports against and provides strategic advice and
hears appeals from tenants, organisational performance, strategic consultancy on staff establishment,
provides services and advice planning and monitoring of housing human resources, learning and staff
on procurement and contracts, indicators and affordability. development, occupational health
insurance and legal advice. – Housing Strategy
and safety.
– Business Assurance – Housing Policy & Partnerships – IT Strategy & Chief Information Office
– Legal Services Branch – Corporate Finance & Planning – People & Organisational
– Strategic Procurement Performance
– Risk & Insurance –
Project Management
& Change
– Housing Appeals Committee
– Businesslink Relationship
– Business Continuity Planning
Director-General
Mike Allen
Oversees Office responsible for Oversees Directorate responsible Oversees the Directorate
leading strategy and operations for undertaking projects with high- responsible for delivering services
for the community housing impact improvements for social to tenants and applicants,
sector and managing relationship housing, including major public- including public housing policy
with providers and resourcing private partnerships. development, managing Housing
agencies. – PPP Projects
NSW’s total portfolio, project
– Service Development
management and housing stock
– Bonnyrigg Living development, maintenance of
– Community Housing Strategy Communities Project assets, and development of
– Business Performance – Minto Renewal Project environmentally sustainable
– Performance Management solutions.
– Housing Services (Central Sydney,
Greater Western Sydney, Northern
NSW, Southern & Western NSW)
– Housing Contact Centre
– Resitech
– Major Projects
– Client Services Strategy
– Asset Performance
– Maintenance Reform Program
– Service Programs
The remaining 5,000 properties in the > developing best-practice guidelines Keeping in Touch with the
Sydney water catchment areas will be in developing and supporting Over 60s
completed in the first half of 2007/08. seniors’ communities in social We continued to make regular contact
In the coming year, we plan similar housing, which allows older people with tenants, aged over 60 years,
partnerships to install water-saving to stay at home with greater security and Aboriginal and Torres Strait
devices in Housing NSW homes in > identifying pensioner housing stock Islander tenants, aged over 45. Where
other areas of NSW. for redevelopment or acquisition there has been no established or
> commencing a major refurbishment documented contact in a six-month
Diverse Housing Needs
of Blandville Court by installing lifts period, telephone contact with tenants
New Directions in Social and a community room and is made by the Housing Contact
Housing for Older People > allocating $170,000 to trial a new Centre. Where contact by telephone is
The New Directions in Social Housing grants program, ‘Connecting Older unable to be established, the client’s
for Older People, announced in Tenants’, an innovative way to details are referred to the local client
April 2006, is stage one of the NSW promote neighbourliness within service team to establish contact. The
Government’s plan for increasing the social housing communities. Housing Contact Centre contacted
supply of affordable housing. It is a 9,000 tenants with whom there had
In March 2007, the Premier been no established contact in the
commitment to taking a lead role in
announced $4 million to fund the Care previous six months.
meeting the housing needs of older
Call program. Daily telephone calls will
people in NSW. The key priorities for Housing for People with a
be made to frail, elderly public housing
the next five years include:
tenants, who live alone, to reduce Disability
> investing $420 million to increase their isolation, improve their wellbeing Housing NSW helps people with a
pensioner housing stock by 2,800 and connect them to support disability through a range of social
homes and a further $75 million services. The Care Call program is housing assistance programs. In
to refurbish and modify existing expected to commence in 2008. addition, we participate in whole-
properties of-government initiatives that assist
New Directions in Social Housing
> developing designated older for Older People will provide more social housing tenants with a disability
people’s precincts in major responsive and flexible housing to live full lives in the community.
redevelopments that can meet the needs of older Housing that works for people with
> issuing best-practice design people well into the future. Other a disability is about much more than
guidelines models for reducing social isolation bricks and mortar. Housing should
will be reviewed and partnerships be affordable, designed to suit
> developing older people’s
will continue to be developed under individual needs, well located, allow
complexes
the Housing and Human Services people to interact, and be linked to
> encouraging people in public support services. Housing NSW is
Accord to ensure that older people
housing to keep an eye out for older also committed to consulting and
in social housing receive the services
neighbours involving people with a disability in the
they need.
> establishing partnerships with other planning and delivery of services, and
government and non-government For more information on the
providing information that is friendly
agencies and achievements of the Capital Supply
and accessible.
Program, see Objective 1, p. 21.
> supporting older people to be
leaders in their own communities.
During 2006/07, we undertook a
number of projects, including:
> developing a policy for senior
Public housing will now be provided to
communities where older people in
public housing can live near other
people on low incomes who need support
older people services to help them live independently
18 Housing NSW Annual Report 2006/07
Disability Modifications Program Other programs Residents celebrate
We continued to modify housing Through the whole-of-government Riverwood’s 30th
for people with mobility related strategy Stronger Together: A New anniversary
disabilities. Modifications include Direction for Disability Services
In October 2006, past and present
hand-rails and ramps for physical Strategy and the NSW State Plan, we
residents of Riverwood came
access and may include minor are committed to working with other together to celebrate 30 years of
alterations to kitchens and doorways government and non-government the Lincoln and Jefferson high-rise
to ensure homes meet the functional agencies and tenants to ensure towers.
needs of people with a disability. that people with a disability receive
Residents first moved into the
In 2006/07, Housing NSW spent the most suitable housing. Housing Riverwood Estate in October 1976,
$7.88 million modifying 3,500 NSW’s Disability Action Plan has and some of them still live there.
dwellings (see Figure 1.1). identified strategies to: Helen, a tenant representative
> improve information about housing for the Estate, said this milestone
Figure 1.1 celebrates relationships, community
products and services for people
Disability modification program expenditure spirit, friendship and memories.
($’000) with a disability
She received a certificate of
9,000
> promote tenant participation commemoration from the Member
activities in partnership with and for for Heathcote, Paul McLeay, as did
people with a disability and several other tenants.
8,000
> support partnerships for people with “The residents of Riverwood have
a disability under the NSW Housing
7,000
and Human Services Accord.
always been willing to help each
other out, whether to organise a
6,000 Consultation with tenants with a
disability and key stakeholders is a
Christmas party for children or
5,000 major component of implementing to volunteer at the Community
and monitoring the Disability Action Centre,” Helen said.
4,000 Plan, ensuring that housing assistance
provided by Housing NSW works for The Director-General, Mike Allen,
who used to be Riverwood’s
3,000 people with a disability.
General Manager, also attended
Housing for People with Mental the celebrations. He paid tribute
2,000
to tenants and staff from the local
Illness office, saying their combined efforts
1,000 We assist people with mental health had brought a sense of pride and
issues to sustain tenancies through belonging to the area.
0 commitments under the Joint
The Riverwood community is a
Guarantee of Service (JGOS) and
2002/03
2003/04
2004/05
2005/06
2006/07
110,000
Public Housing
Public housing is directly managed
100,000 by Housing NSW and comprises 86
percent of the NSW social housing
system. As at 30 June 2007, there
90,000 were 126,325 public housing
properties. During 2006/07, 8,870
2002/03
2003/04
2004/05
2005/06
2006/07
Community housing
Construction 0 10 11 21
Conversion 1 0 88 89 90
70
2 00 2 /03
2 00 3 /04
2 00 4 /0 5
2 00 5 /0 6
2 00 6 /0 7
Asset Management This year was the first implementation Although rollout of the MRP was
Framework year of an accelerated capital scheduled for November 2006, this
supply program, aimed at was deferred in order to strengthen
Housing NSW’s long-term asset
realigning public housing as part contract provisions on contractor
planning involves building or acquiring
of Reshaping Public Housing. performance and quality management
12,000 homes over the next 10 years
Long-term realignment targets and to ensure maximum savings will
using the proceeds from sales or
formed the basis for Housing NSW’s be achieved.
demolition of old, outdated houses
2006/07 capital works programs
as well as continuing capital funding Property Upgrading and
and budgets through to 2017/18.
from the NSW and Commonwealth Planned Maintenance
We commenced refurbishment and
governments. This is a 10-year The Accelerated Improvement
conversion of existing dwellings as
rolling program which takes into Program was introduced to
well as replacement through new
account a range of factors, including reduce the maintenance backlog
construction and purchase.
movements in the property market, by improving properties in poor
demographic changes to Housing Long-term asset planning was
condition. Since 2001/02, over
NSW’s clients and their needs, and extended to include community
46,500 properties have been
financial considerations. In the lead housing. This will facilitate future
improved at a cost of $581.5 million,
up to the March 2007 election, the growth of the community housing
including $76.3 million spent on
NSW Government reinforced its sector. Success of Housing NSW’s
improving 8,424 properties during
commitment to: long-term asset planning continues
2006/07.
to depend on procuring new housing
> renew the public housing property During the year, we spent
stock that is appropriate to the needs
portfolio over a 10-year period $64.5 million on other planned
of current and future clients.
> build, acquire or redevelop 12,000 maintenance and special projects,
homes Maintenance Reform Program including painting, fencing, upgrading
In response to the NSW Government’s kitchens and bathrooms, new floor
> increase the proportion of one- and
commitment to address long-term coverings, and improving security
two-bedroom homes
maintenance backlogs and fire- and design on estates.
> invest $420 million in the safety work, Housing NSW has
construction of 2,800 homes for been developing reforms around Fire Safety Program
older people over the next five years the maintenance service delivery The Fire Safety Program was
and model. The Maintenance Reform developed in response to Housing
> invest $75 million in property Program (MRP) will enable us to have NSW’s Fire Risk Management
modifications over five years. a planned and systematic service Plan, which identified the need for
delivery model rather than the current improvement in a number of areas.
responsive model. The benefits During 2006/07, we continued the
will be greater efficiencies as well Fire Safety Program to multi-unit
as improvements in time taken for and attached accommodation, with
individual work and cost savings. 15,370 properties upgraded to meet
fire-safety standards at a cost of
A trial began in Sutherland, followed
$64.7 million. Improvements were
by 16 other pilots throughout NSW,
made to multi-unit buildings and
with work completed on 28,000
building common areas, including
properties. Initial results confirm that
stair halls, and installation of some
time and cost savings were made
sprinkler systems. Housing NSW also
by bundling and programming the
introduced new paint technologies to
work in a systematic and planned
assist in fire retardation.
approach.
2003/04
2004/05
2005/06
2006/07
Community Housing Assistance properties privately allows housing transfers are a key component of the
Program providers to respond to individual community housing growth strategy.
Through the Community Housing household needs. During 2006/07, 900 properties were
Assistance Program (CHAP), the In 2006/07, the total value of the transferred from public to community
Office of Community Housing CHLP was $47.9 million. This housing management. A further 96
funds the acquisition of new capital included $35.8 million to fund 5,647 properties were approved and await
properties, which are then allocated leasehold properties, an increase of final completion. By end June 2007,
to community housing providers. 95 properties on the previous year, over 1,380 properties had either been
At the beginning of the year, a new and a $9.5 million contribution to transferred or were in the very last
supply program worth $45 million their management costs. A further stages of transfer. We anticipate that
and consisting of 200 new properties $2.6 million subsidised 323 long-term the remaining 1,110 properties will be
had been planned and, as a result leasehold properties with an additional transferred by the end of 2007/08.
of a marginal increase of $1.3 million contribution of $426,000 towards their The tenant consultation process,
in its budget, was able to acquire 24 management costs. including individual and group
additional properties, achieving an In 2007/08, the Office of Community meetings, is being undertaken as part
overall figure of 224. Housing is committed to reforming of the information distribution and
Planning for the Future has set CHLP further. A funding model will be negotiation process.
a target for doubling the size of developed to guarantee that efficient Supporting a National
the sector over the next 10 years. and effective community housing Framework for Affordable
Therefore, the new supply program for providers are financially sustainable
Housing
2007/08 will be much larger than any into the future.
The Office of Community Housing
program undertaken previously by the
Stock Transfer Program is working with representatives from
Office of Community Housing.
Under the Commonwealth State the other states and territories and
Community Housing Leasing Housing Agreement 2003-2008, the Commonwealth Government to
Program Housing NSW can transfer up to develop a larger, more independent
The Community Housing Leasing 2,500 properties from public to and more effective not-for-profit
Program (CHLP) funds community community housing management housing sector. As part of this work,
housing providers to lease properties over the life of the agreement. Stock the Office of Community Housing
from the private sector, which can is chairing a national working group
then be sub-leased to households
with a housing need. CHLP also funds
a proportion of the management costs
of community housing organisations.
The Community Housing Leasing
Program enables Housing NSW to
introduce flexibility into the community
housing sector. With a subsidy
for leasing from Housing NSW,
community housing organisations are
able to offer social housing in areas
that would otherwise be unaffordable
if they had to purchase a property. By
leasing privately, community housing
providers can respond to short-to-
medium-term fluctuations in local
demand without committing long-
term resources. Being able to lease
Crisis Accommodation Program focusses priorities on pre-crisis and Housing and Accommodation
The Crisis Accommodation Program post-crisis support. In 2006/07, Support Initiative
(CAP) provides short- to medium-term Housing NSW, in collaboration The Housing and Accommodation
accommodation for people who are with the Department of Community Support Initiative (HASI) is a joint
homeless, at risk of homelessness Services and SAAP services, initiative involving NSW Health and
or are in other forms of crisis. CAP commenced planning to prevent non-government support bodies.
is delivered in conjunction with homelessness and to provide HASI provides integrated housing and
the Supported Accommodation appropriate support to homeless support services to clients with high
Assistance Program (SAAP), which people as part of this new SAAP mental health support needs.
is administered by the Department of agreement. Therefore, the CAP
program for 2007/08 will primarily In 2006/07, Housing NSW and NSW
Community Services.
focus on reconfiguring existing stock Health identified 127 units in 18 high-
At 30 June 2007, there were a total of demand locations across the state
in order to adapt to the changing
1,249 capital and 235 leasehold crisis for clients with high mental health
needs of clients and to respond to
accommodation properties managed support needs. The number of HASI
the changing requirements of the
by non-government organisations properties managed by community
Department of Community Services.
around NSW. Approximately 38,602 housing providers is 457 and the
people were assisted during the year. Port Jackson Supported number of clients assisted is over 750.
The value of the program in 2006/07 Housing Program In 2006/07, a further 50 units were
was $14.6 million, with $7.37 million The Port Jackson Supported Housing acquired with additional funding from
funding the 17 new units of crisis Program is a joint initiative between NSW Treasury.
accommodation. The remaining funds St George Community Housing, 21 HASI offers an integrated housing and
were spent on maintenance, including community based support providers, support service to help clients with
$2.6 million for responsive and cyclical and the Office of Community Housing. mental health needs to:
repairs and $209,399 for fire-safety The program provides tenancies to
members of the community who > have a better quality of life
upgrades. A further $1.53 million met
require ongoing support if they are to while successfully sustaining an
the management costs of providing
live independently in the community. independent tenancy and
crisis accommodation.
Groups being supported include older > integrate into the wider community.
In 2006/07, a variety of new supply
people with complex needs, people In November 2006, the initiative
initiatives were approved, including:
living with HIV/AIDS, young people received the NSW Premier’s Public
> 10 units for Aboriginal families and experiencing mental illness, people Sector Gold Award for Service
young people with a disability, and young people Delivery.
> 10 units for young people (including affected by homelessness.
(For more information on Housing and
young pre- or post-natal women) In 2006/07, an additional 57 units of Accommodation Support Initiative see
> 8 units for single parent families and accommodation were acquired for Objective 4, p. 49.)
> 2 units for women and women the Port Jackson project, bringing
with children escaping domestic the total to 183. Of these, 139 are
violence. tenanted and the remaining 44 are
being upgraded. The total target for
CAP is delivered in conjunction
the Port Jackson program is 211 units
with SAAP, administered by the
of accommodation, which is expected
Department of Community Services,
to be achieved in late 2007.
which provides staff and support
services to people living in crisis
accommodation properties. In
2005, a new SAAP agreement was
negotiated between the Department
of Community Services and the
Commonwealth Government, which
To continue its
success and
future expansion,
community housing
in NSW must be a
sustainable and
viable sector.
Housing NSW Annual Report 2006/07 37
03 Objective 3: Drive innovative solutions
to meet a range of housing needs
2003/04
2004/05
2005/06
2006/07
ceremonies were held throughout that Housing NSW will continue the
the state to ensure that all the programs in 2007.
Rental arrears
Advance rent
Temporary accommodation
Bond
Rentstart by Phone
Since 2005/06, Rentstart by Phone
has been delivered via the telephone
in the North Coast and in parts of
the New England area. This service
was also extended to the Hunter
late in 2006/07. Close to 6,600
Youth Achievement Awards finalists at the presentation ceremony with the Governor of
assistances were provided, including NSW, Marie Bashir, and the Minister for Housing, Matt Brown.
nearly 2,000 assistances of temporary
accommodation for homeless people.
In 2006/07, Rentstart by Phone was products. The range of products to During its trial in Coffs Harbour in
trialled through the Housing Contact assist people to access the private 2005/06, Tenancy Facilitation assisted
Centre for applicants from Sutherland rental market under the Private Rental 250 people (111 households) into
and Fairfield in metropolitan Sydney. Options Package includes: private rental. During early 2007/08,
During the three-month pilot, > Link Point all client service teams will be trained
326 applications were received. in Tenancy Facilitation before the
> Tenancy Facilitation
Applicants, using designated fax program is rolled out throughout
machines in some Housing NSW > Tenancy Guarantees NSW.
offices, faxed the completed > Private Rental Brokerage Service
application form to the Housing and Tenancy Guarantee
Contact Centre where the application A Tenancy Guarantee is a surety
> other related products under
was processed. of $1,000 (plus GST) for agents/
research and development.
landlords to offset against damage
By calling 1300 HOUSING (1300 468
Link Point or arrears to encourage them to
746), applicants were updated about
Link Point is a website with grant tenancies to people who
their application. The hours of service
information about the private rental might otherwise be denied access
are from 8.00 am to 6.00 pm Monday
market which can be accessed to the private rental market. It will
to Friday as well as 10.00 am to 3.00
through self-service computer assist people who have a poor or no
pm on Saturdays. Once the pilot
terminals in some Housing tenancy history or suffer discrimination
is evaluated and depending on the
NSW offices. A trial of Link Point because of age, race, disability, family
results, it is anticipated that the service
commenced in four locations during composition, sexual orientation or
will be rolled out throughout NSW.
2006/07. Link Point provides: gender. By being helped into private
Special Assistance Subsidy rental, clients will be able to build a
> a guide to private rental
This program provides rental tenancy history. A Tenancy Guarantee
assistance to eligible clients with a > information on how to search and can be issued for the period of the
disability or people living with HIV/ apply for properties fixed-term lease, to a maximum of 12
AIDS to assist them to live in the > information on tenants’ rights and months, in addition to the rental bond.
private rental market. During 2006/07, responsibilities and The Office of Community Housing
1,315 subsidies were provided at a > private rental assistance available conducted a trial through six
cost of $8.82 million. Of these, 865 from Housing NSW and other community housing organisations
were for people with a mental and agencies. from July 2003 to June 2006 and,
physical disability ($5.08 million), and In 2007/08, Link Point trials will following its success, in July 2006,
450 were for people living with HIV/ be evaluated and offered in other an additional four community housing
AIDS ($3.74 million). Housing NSW offices, as well as on organisations delivered Tenancy
(For more information on assistance the Housing NSW website. Guarantees. In addition, clients of the
to people with disabilities see Private Rental Brokerage Service were
Objective 1, p. 18.) Tenancy Facilitation able to access the program.
Tenancy Facilitation helps clients
Private Rental Options Package In 2007/08, 750 tenancy guarantees
to find and apply for housing in the
will be provided by Housing NSW
Over the past year, we reviewed private rental market, including help to:
client service teams throughout NSW.
the existing private rental products
> complete documentation and Community housing organisations will
and services that Housing NSW
applications also provide an additional 750 tenancy
offers to clients to assist them into
> search for properties guarantees each year. The outcomes
private rental and to support them
will be evaluated in 2008/09.
while in private rental. As a result > make appointments
of the review, we developed the > address listings on tenant
Private Rental Options Package as databases
a model for integrated assistance of
> present well to agents and
products and services which may be
offered as a package or as individual > understand their rights and
responsibilities as tenants.
local councils in the home purchase. The Service can be Property Developer John Nassif, Member
contacted through a freecall telephone for Drummoyne Angela D’Amore and the
property foreman at the launch of the
Sydney metropolitan service 1800 806 653 or by email at
advisory@housing.nsw.gov.au.
Local Government Housing Kit.
market assessment
studies.
In 2006/07, consultation with internal Joint Guarantee of Service New England Whole of Social
users, government agencies, the for People with Mental Health Housing System Project
Aboriginal sector and non-government
agencies led to the development of:
Problems and Disorders Under our Rural and Regional
The Joint Guarantee of Service Housing Access Strategy, this project
> a Client Information Sharing (JGOS) is a multi-agency and multi- coordinates public and community
Schedule to guide agencies on how sector initiative to coordinate the housing in the New England area to
information about clients or potential delivery of services to people living in streamline services for clients and
clients is collected, shared, used social housing, or seeking to access enhance access for people requiring
and disclosed social housing, who have mental housing assistance. During 2006/07,
> the Complex Housing Needs health problems and disorders and initiatives included:
Screening Tool to identify and who have ongoing support needs. > a memorandum of understanding
assess applicants who may have In 2006/07, a package of new web- signed with a number of agencies
difficulty sustaining a tenancy and based resource material was finalised, in Moree and Narrabri to ensure
> the Joint Assessment Framework promoting the JGOS. The resource an integrated response to assist
to enable Housing NSW to obtain package included: homeless people provided by
assessments of clients’ support > an Operations Manual on how Housing NSW and Supported
needs, clients’ ability to sustain a to make JGOS work for local Accommodation Assistance
tenancy and to make referrals for committees Program (SAAP) providers
support services. > improving access to the private
> templates for a local memorandum
The Accord will be monitored and of understanding, individual service rental market through Rent It Keep
evaluated in 2007/08 through a plans, forms and checklists It tenancy training
framework, which was developed > quick links to relevant websites > locating Housing NSW with
by the signatory agencies. The Homes North Community Housing
> a reference guide and
framework will determine the benefits Company in a single office in
of the Shared Access model and > a brochure for distribution among Gunnedah
whether the trials met their objectives. staff of partner agencies to explain
> consolidating partnerships and
the role of JGOS.
Housing NSW will continue to develop cooperation across the social
Shared Access projects for inclusion The JGOS formative evaluation was housing system, such as the
in the trials. In addition, the Shared completed and found that the JGOS combined planning forum involving
Access Schedule will be finalised is achieving its objective of helping Housing NSW, community housing
and endorsed by the agencies’ chief people secure and maintain a social providers and the Aboriginal
executives. Endorsement will also housing tenancy. The evaluation also Housing Office in Tamworth
be sought for the Client Information identified some areas for improvement > developing a shared access pilot
Sharing Schedule and for the Housing and redressing these deficiencies will in Tamworth in partnership with
and Mental Health Schedule. be a priority in 2007/08. Homes North Community Housing
Company.
Initiatives planned for 2007/08
include:
> continuing to develop and deliver
the pilot project for shared social
housing access in Tamworth
> enhancing local social housing
forums in each of the main towns in
New England and
> providing more culturally appropriate
access systems for Aboriginal
people.
> a number of initiatives developed > a specialist team, providing medical Since late 2005, 143 women were
under the plan provided much services, individual counselling and referred, seeking information and
needed information and support to therapeutic and group programs. support after a domestic violent
rough sleepers in the inner city. Since I-CHOSS began in early 2006, incident. A further 56 referrals were
The evaluation recommendations the outreach team has had 5,300 made for women wishing to remain
form the basis of many of the contacts with clients or potential in their own homes and 38 women
strategies and actions in the Inner City clients on the streets. I-CHOSS became case-managed clients of
Homelessness Action Plan – Phase provided active case management to the service.
Two. ICHAP Phase Two is a four- 226 outreach clients and 307 support
year plan, with initiatives in 2006/07 clients.
Tenancy Reform Initiatives
including: In 2006/07, we continued working
Staying Home Leaving on our Antisocial Behaviour Strategy,
> the Inner-City Homelessness Violence Pilot including reviewing and strengthening
Outreach and Support Service
The Staying Home Leaving Violence the Memorandum of Understanding
(I-CHOSS)
(SHLV) pilot helps prevent women and between Housing NSW and NSW
> homeless street counts children’s homelessness, by enabling Police and the expansion of safety
> a range of pilot projects that provide women who have experienced audits to all public housing estates.
long-term accommodation and domestic violence to remain safely Over the past year, a review of
support for homeless people and in their own homes without the the previous Memorandum of
> projects that support community violent partner. Understanding (MOU) with NSW
participation by homeless people. Police was completed. We will finalise
The SHLV pilot project is managed
the MOU with NSW Police and
by Housing NSW and is funded by
Inner-City Homelessness Outreach develop a communication strategy
the NSW Department of Community
and Support Service to staff.
Services. The pilot receives referrals
The Inner-City Homelessness from NSW Police, Women’s Domestic We commenced work on a package
Outreach and Support Service Violence Court Assistance Schemes of resources to support the use of
(I-CHOSS) provides outreach and and other women’s services within the safety audits in a consistent manner
support services to homeless people Eastern Sydney area. throughout NSW. A final resource
in the City of Sydney, enabling them to package is expected to be completed
access appropriate services and long- SHLV workers provide outreach
and distributed for use by client
term accommodation options. It is support and advocacy so that women
service staff by 2007/08.
funded by Housing NSW and the City have greater choices when leaving
of Sydney, supported by a brokerage violent relationships and are better In June 2007, we appointed 19 Senior
program funded by the Department of able to sustain housing, economic Client Service Officers (Antisocial
Community Services. security and support networks. The Behaviour) across NSW to work with
program includes risk assessment, Housing NSW client service staff,
I-CHOSS is delivered by a consortium safety planning and upgrading other agencies and tenant groups on
of Mission Australia and the security in the victim’s home, court issues relating to antisocial behaviour.
Haymarket Foundation. The I-CHOSS support, liaison with police and other These officers are also able to assist
service model consists of: services, referrals to legal advice and Housing NSW staff to terminate a
> an outreach team, providing counselling, and casework to address tenancy where a tenant is consistently
services to clients who are financial and other issues. engaging in antisocial behaviour.
homeless in the inner city, with a
focus on ‘rough sleepers’
> a support team, providing
services to clients referred by the
outreach team who are ready
to receive ongoing support and
accommodation and
working groups, and the funding of has been established in each of the structures will involve groups of
local initiatives such as the Learning, six priority locations, comprising a residents in local priority setting and
Training and Employment Project, a Community Regeneration Manager, decision making. Leadership and
children’s resilience program and a a Learning and Employment capacity-building initiatives will be
youth drug and alcohol CD. Coordinator and a Community delivered in these locations to support
Over the coming year, the focus will Development Worker. Some of the the participation of residents.
be on: initial programs and activities have
included: Building Stronger Communities
> supporting and developing Dubbo
community services > community workshops, open days
The Dubbo Building Stronger
and information sessions
> supporting tenants during the Communities initiative was announced
rehousing process > family fun days, outings for older in May 2006 and began before the
people, youth programs, community other priority locations. The initiative
> demolition of the next stage of
morning teas and lunches and to exit the West Dubbo Gordon Estate
around 120 properties
> TAFE computer courses, under a whole-of-Dubbo community
> the completion of stage one civil
employment expos and information regeneration strategy will create a
works, including road works, park,
sessions with local employers. better social environment, support
subdivision and the first sale of
A Regeneration Partnership Plan public housing tenants and reduce
approximately 100 land and house
is underway for each location, with antisocial behaviour. All properties on
packages in 2008
priorities for capital projects being the estate will be sold and the area
> construction of the first 11 public redeveloped. Housing NSW will build
identified as part of this process.
housing homes in stage one and or buy properties in other parts of
Community working groups are also
> working closely with Campbelltown being established to provide advice Dubbo to better meet client needs.
Council and Landcom to enhance on local planning activities. We are rehousing all tenants living
and develop the community and on the estate. During the first 12
Housing NSW will use a monitoring
physical development at Minto. months, 46 tenants were rehoused
and evaluation framework to
Building Stronger Communities measure the benefits from the from the central area of the estate and
investment and regeneration effort. 76 properties were demolished. The
The Building Stronger Communities
This will then inform planning and changes were well received by the
2007-2010 initiative, announced by
delivery of services, programs and Dubbo community and Housing NSW
the Premier in January 2007, commits
projects across other social housing continues to work closely with the
$66 million for the community
neighbourhoods. community to ensure people are well
regeneration of six priority locations,
informed of the rehousing plan.
covering 18 housing estates across Over the four years, we expect:
NSW. Estates are located in Mt Druitt, Construction has commenced on
> better urban environments four housing redevelopments for
Claymore and Macquarie Fields in
Sydney; Killarney Vale/Bateau Bay/ > appropriate services in places seniors in other parts of Dubbo and
Tumbi Umbi on the Central Coast; where they are needed 27 properties have been purchased to
and Dubbo and Bathurst/Orange in > better social environments for rehouse tenants from the estate.
Western NSW. priority locations and Home buyers evenings were held in
Through partnerships with local > jobs, skills and higher levels of February and June 2007 to provide
councils, communities, non- employment for priority locations. information to tenants and the general
government organisations and other public, interested in purchasing a
Regeneration hubs, established in
agencies, these areas are being built home. Four properties were auctioned
each location, will be central places
into stronger communities where and sold in June 2007.
where people can meet to run
people can live in safety, have access programs, projects and activities Housing NSW is working in
to important services as well as to build up their communities. partnership with other government
education, training and employment New neighbourhood management agencies in Dubbo to develop
opportunities. A regeneration team
Training and Employment > helped establish a Job Club and a WorkiT
for Tenants Volunteer Program Housing NSW established the
We are committed to linking tenants > provided a Small Business WorkiT Program to help unemployed
to work experience and training Development course, with 23 local people living in social housing to
opportunities that offer genuine residents being linked with business access training and employment
pathways to employment. Over the mentors to do lawns and grounds opportunities. The program has
years, a range of programs has been cleaning, hair braiding, catering and undertaken a number of initiatives.
developed and operate in and on air-conditioning Wesley Institute, a registered
public housing estates. > supported the local Employment training organisation, is the WorkiT
Taskforce to run information organisation for the Illawarra Area,
WorkVentures Connect sessions from Welfare to Work arranging training courses in lawns
This partnership between Housing Reform by Centrelink and a mini and grounds maintenance, aged care,
NSW and WorkVentures Australia employment expo. child services, information technology,
gives social housing tenants access business administration, disability
to computers, email and the Internet As a result of these efforts:
services and hospitality, with 124
as well as providing training programs. > 10 residents were employed social housing tenants provided with
WorkVentures Connect Centres > 1,600 residents accessed training under the program.
are located on five public housing computers through the Centre
estates, including Woolloomooloo, Wesley Institute used its links with Job
> 173 people completed courses Network Providers and other agencies
Waterloo, Claymore, Macquarie
at the Centre to broker employment opportunities
Fields and a new enterprise centre
in Airds. The development of > 23 residents developed their for 41 social housing tenants in lawns
WorkVentures Connect is in response own businesses and grounds maintenance work,
to communities needing access to > 334 participants attended administrative support, full-time aged
information technology, primarily to 58 different training/employment care, casual construction work, part-
improve their chances of obtaining initiatives. time security work and part-time
employment. Approximately 2,000 engineering work.
Connect IT
residents have used the Connect In the South East area, $20,000
WorkVentures Connect IT computer
Centres computers since early 2006, was used for an employment
reuse project is a partnership
with around 60 percent being 24 project on the East Nowra estate,
with Westpac, Microsoft and
years old or under. in collaboration with Wesley Uniting
other corporate organisations
The Connect Centres play an and government agencies to turn Employment and Shoalhaven
important role in providing residents the components of superseded Community Housing with 18 people
with the tools to communicate computer equipment into useful being employed.
and participate in their community, home computers at affordable rates Cranebrook Technology Centre
acquire knowledge and increase for disadvantaged people, schools Cranebrook Metropolitan Technology
their self-confidence and gain access and other not-for-profit organisations. Centre provides access to high-
to education and employment It is also intended to create career speed computers and colour printing
opportunities. pathways for unemployed young facilities to residents in Cranebrook.
people to gain skills in warehousing In 2006/07, over 700 residents used
Airds Enterprise Centre
and information technology, and the centre, including 20 participants
The Airds Enterprise Centre supports
to make a positive impact on our for the introduction to computers,
social housing residents towards
environment. 24 people in the Café Operations
gaining financial independence.
During 2006/07, the Centre: Tenants are informed of affordable and Course, 16 people at the Women in
competitive offers through the Your Successful Education Program,
> established a community garden 310 children in programs targeting
Home tenant newsletter. In 2006/07,
> established a monthly community 648 computers were purchased by pre-school children, and 80 children
market at the local shopping mall social housing tenants. in school holiday programs.
> planned for community technology to carry out lawns and grounds, Within two weeks of attending the
centres in Orange and Bathurst. cleaning and maintenance work on information session, Clinton had
its properties. One of the conditions been offered a job. He is now doing
A Learning, Employment and the afternoon shift at the abattoir
is that the successful service provider
Economic Development plan will be and he rides the eight kilometres
undertakes to directly employ tenants.
developed for each location to identify to work with his friend, who also
During 2006/07, 14 community
actions and priorities over the next got a job as a result of going to
contracts, valued at $2.2 million, were the information session. Sureway
four years. These will be implemented
awarded, employing 48 tenants. Employment assisted with the
through local partnerships and
purchase of the bikes for Clinton
cooperation, including with residents, Landscaping Traineeship
and his friend.
government agencies, employment Housing NSW in partnership with
and training providers, councils, local Spectrum Employment Services
businesses and non-government continued a landscaping traineeship in
organisations. Greater Western Sydney to build skills
Learning and Employment in horticulture and link participants
Coordinators are establishing to jobs and ongoing training. The
working groups to provide advice initiative has an annual budget of
on local planning activities. New $1 million.
In 2006/07, Spectrum Employment Tenant Participation activity and physical amenity in their
Services delivered another 12-month Initiatives neighbourhoods.
Horticultural Certificate III Traineeship In 2006/07, we invested $697,000
course for 20 social housing residents Tenant Participation Service
to fund 10 projects across the state.
in Greater Western Sydney. Trainees Provision Model
These included activities, such as
work in two teams of 10 trainees each During 2006/07, new tenant developing newsletters, workshops,
across Western Sydney and South participation models for the Riverina- community events, sport and
Western Sydney. Murray and Western areas were recreational working groups.
Achievements in 2006/07 included: developed to engage and support
social housing tenants. The new HCAP also supported and developed
> landscaping 200 properties in models are inclusive, community projects, such as No Interest Loan
Bidwill, Cranebrook, Toongabbie, focussed and practical within a Scheme, accredited TAFE courses,
Macquarie Fields and Airds and regional and rural environment. The internet cafes and community
improving reserves in Mt Druitt previous tenant participation structure leadership program. A number
> landscaping the outdoor area for was not conducive to the geographic of tenant groups are supported,
Gumnut Cottage at Claymore distribution and diversity of tenants. including action groups, working
Therefore, the new models that parties committees in order to
> assisting with the development of
have now been developed are more improve social cohesion within
the Oasis Community Garden at
inclusive, responsive and community communities.
Toongabbie and the community
garden at Tallawood Community focussed as well as being easier to Tenant Representation and
Centre in Rosemeadow and implement and sustain. Services
> landscaping the outdoor garden The models in the Riverina-Murray Seven Regional Tenant Resource
area of the Technology Centre at and Western areas will involve special Services (RTRS) and the development
Cranebrook. needs population groups. Activities of two new services in the Riverina
will engage tenants individually and Western areas of the state
Through the Landscaping Traineeship
or collectively to take account of were funded in 2006/07 to provide
initiative, social housing residents
the rights and needs of Aboriginal advisory and support services
access training and employment
people, people with disabilities, to tenants at a total cost of over
opportunities. The initiative enables
people with mental health support $1.2 million. In addition in 2006/07,
residents to improve their employment
requirements and young people. The five public tenants’ councils and
prospects by gaining skills in fence
implementation of the new models two other consultative structures
installation, bricklaying and customer
across Riverina-Murray and Western were funded across NSW at a
service. A survey conducted found
areas will be the key priority for cost of $45,320. These tenants’
that 80 percent of participants
2007/08. representational structures have
secured permanent employment
in related fields following their broad membership and provide
Communities Participating tenants with the opportunity to have
landscaping work.
in Community Decisions issues and needs represented to
Through the Housing Communities social housing providers in their local
and regional area.
Landscaping Assistance Program
Housing NSW provides grants to local The Central Sydney North Regional
Traineeship government and non-government
agencies to deliver the Housing
Tenant Resource Service devised a
training calendar for 2007, offering
initiative, social Communities Assistance Program free training and skill development
housing residents (HCAP) across NSW. The program opportunities for social housing
facilitates tenant participation tenants. The Central Sydney South
access training and decreases social isolation by
enabling social housing tenants
Regional Tenant Resource Service
has established a new Area Tenant
and employment to make decisions about social Council in the Inner West Area. The
opportunities.
Western Sydney Regional Public
Staff indicated that they enjoy the In addition, work is progressing on Some of the projects/initiatives where
flexibility of online learning as they can building commitment and visibility the ARG has provided feedback
complete short segments at a time in the organisation through existing include:
rather than the whole course. Over reporting and inclusion of targets in > prevention of racism in the
time, this will become an established performance agreements. workplace policy
approach to delivering learning within (For more information on staffing > the revision of communication
Housing NSW. trends and diversity, see Appendices material produced to support
Staffing Trends 5 and 6, pp. 75-77.) Housing NSW’s Reshaping Public
Our employment of equal employment Aboriginal Mentoring Program Housing reforms
opportunity target groups was > cultural awareness training and
Now in its second year of operation,
consistent with previous years, with
the Aboriginal Mentoring Program is > the Aboriginal Policy Framework
both women and Aboriginal people
designed to support Aboriginal staff Project.
being well represented and exceeding
manage their careers. The program The ARG organised and coordinated
benchmark targets. However,
has had significant success to date. the annual Aboriginal Staff Gathering
distribution across salary levels
A further three Aboriginal staff became that saw around 55 staff members
remains an issue. Representation of
mentors, which is a testament to come together to discuss strategies
staff with a disability and culturally
the recognition of the benefits of the to improve outcomes for clients
and linguistically diverse (CALD) was
program by the Aboriginal community. and staff. These strategies included
below the benchmark target.
The program will continue in 2007/08. improving Aboriginal service delivery
Support for existing strategies was
Aboriginal Reference Group in the context of Reshaping Public
maintained in 2006/07 including:
Housing reforms, employment
Our Aboriginal Reference Group (ARG)
> the Aboriginal and Torres Strait initiatives, and ideas to assist
promotes improvements to client
Islander buddy program Aboriginal clients if appealing
service delivery for Aboriginal and
> the Aboriginal Reference Group decisions through the Housing
Torres Strait Islander people and acts
Appeals Committee. The ARG
> the Aboriginal Mentoring Program as a key advisory group in developing
also supported NAIDOC Week
> the annual Aboriginal and Torres workforce strategies. The ARG
by becoming actively involved in
Strait Islander Gathering and has been instrumental in providing
the corporate public relations and
feedback to various areas of Housing
> a formal exit interview process. promotional initiatives.
NSW on aspects of work that target
or affect Aboriginal staff and/or clients.
Management Reforms savings project that will run through Housing NSW properties. The report
2007/08 to pursue further savings acknowledged that Housing NSW
Governance strategies. had worked closely with the ICAC
Our governance arrangements are throughout the investigation, and
regularly reviewed to ensure that Business Assurance
had ‘devoted considerable effort to
robust management and decision- The Business Assurance Unit works examining the scope for improvement
making processes are in place. to prevent and investigate instances in its policies and procedures’. The
A Code of Governance Practices of fraud, corruption and misconduct, ICAC made four recommendations
was endorsed by the Executive and to provide reassurance to the for improvements to corruption
in July 2005. During April 2007, a Executive on governance through an prevention strategies, all of which
review of the structure of Strategy internal audit program. Housing NSW were implemented in 2006/07.
and Governance meetings was has a number of mechanisms through
undertaken. Minor adjustments to the which staff, clients and members of We reviewed and updated the Code
arrangements were made to support the public can report instances of of Conduct and Ethics in 2006/07
the role of the Executive Team as the suspected corruption or misconduct. and also published a Statement of
primary, strategic, decision-making Business Ethics, which sets out the
In 2006/07, Business Assurance ethical standards Housing NSW
forum for collegial leadership of investigated 361 allegations received
Housing NSW under the direction of adheres to in its dealings with private-
from all sources. A total of seven sector business partners.
the Director-General. audits were completed in 2006/07,
with findings presented to the Risk In April 2007, we conducted a
Procurement Savings
Management and Audit Committee. review of the Corruption Prevention
Significant procurement savings and Ethics Committee (CPEC) to
have been achieved in 2006/07. Internal audit program development
is based on current risk assessments provide advice to the Director-
Fees for external consultants have General on effectiveness of corruption
been reduced by almost half, from in Housing NSW and is regularly
reviewed. prevention strategies and the role
$1.8 million in 2005/06 to $0.9 million of the Committee. The review found
in 2006/07. Motor vehicle expenses In August 2006, the Independent that, while the CPEC had made a
have also been reduced and, in Commission Against Corruption valuable contribution to strengthening
2006/07, were $0.5 million less than (ICAC) released a report of an Housing NSW’s corruption resistance,
2005/06. The Strategic Procurement investigation, which found that an ex- the most effective way forward
Unit will continue to drive initiatives employee of Housing NSW and two was to amalgamate the functions
to reduce expenditure on key items real estate agents had engaged in of the CPEC with those of the Risk
and has established a procurement corrupt conduct in the sale of some Management and Audit Committee.
All Housing NSW information provided in the appendices List of tables Page
includes information and statistics for the Office of Community A.1 Executive attendance at meetings 68
Housing, Home Purchase Assistance and Resitech, unless A.2 Risk Management and Audit Committee meetings 69
otherwise indicated. A.3 Corruption Prevention and Ethics Committee meetings 70
A.4 Representation on external committees 71
A.5 Senior Executive positions by gender and SES level 73
A.6 Overseas travel 75
Appendices Page
A.7 Staff numbers 75
1. Guarantee of Service 67 A.8 Number of employees by category 76
2. Code of Conduct and Ethics 68 A.9 Trends in the representation of EEO groups 76
3. Management and Structure 68 A.10 Trends in distribution of EEO groups 77
4. Executive Officers 73 A.11 Total incidents reported 77
5. Human Resources 75 A.12 Nature of injuries 78
6. Equal Employment Opportunity 76 A.13 Agency of injuries 78
7. Occupational Health and Safety 77 A.14 Injury management 79
8. Disability Plans 79 A.15 People with a disability accessing housing
9. Ethnic Affairs Priorities Statement 81 assistance programs in 2006/07 79
10. Housing Women 83 A.16 Electricity consumption 84
11. Government Waste and Energy Management Policy 84 A.17 Property disposal in 2006/07 84
12. Property Disposal 84 A.18 Community Housing Assistance Program –
13. Funds Granted to Non-government Community Groups 85 leasing subsidies 85
14. Research and Development 88 A.19 Crisis Accommodation Program – leasing subsidies 85
15. Consultants 88 A.20 Resourcing agencies grants 86
16. Consumer Response 88 A.21 Tenancy Guarantee grants 86
17. Payment of Accounts 90 A.22 Housing Communities Assistance Program grants 86
18. Risk Management and Insurance 91 A.23 Community Regeneration Program grants 86
19. Investment Performance 91 A.24 Tenant Participation grants 87
20. Liability Management Performance 91 A.25 Other grants 87
21. Credit Card Certification 92 A.26 Consultants paid in excess of $30,000 88
22. Freedom of Information 92 A.27 Multiple consultancies under $30,000 by subject area 88
23. Privacy Management Plan 95 A.28 Client feedback statistics 89
24. Legislation and Legal Changes 95 A.29 Client feedback breakdown 89
25. Publications 96 A.30 Results of first-tier appeals 89
26. Annual Report Production Cost 97 A.31 Second-tier appeals hearing results 90
27. Where to Find Us 98 A.32 Second-tier appeals final outcomes 90
A.33 Community housing appeals 2006/07 90
A.34 Total accounts paid on time each quarter 90
A.35 Ageing analysis of accounts payable balances 90
A.36 Insurance expenses 91
A.37 Comparison of Housing Reserve Fund investment
performance to TCorp 91
A.38 Debt performance 92
A.39 Classifications of Freedom of Information requests 92
A.40 Results of completed Freedom of Information requests 92
A.41 Ministerial certificates 93
A.42 Formal consultations 93
A.43 Amendments of personal records 93
A.44 Notation of personal records 93
A.45 Freedom of Information requests granted
in part or refused 93
A.46 Costs and fees of requests processed 94
A.47 Discounts allowed 94
A.48 Days to process completed
Freedom of Information requests 94
A.49 Processing time per Freedom of Information request 94
A.50 Reviews and appeals 94
A.51 Details of internal reviews results 94
A.52 Fees and charges per Freedom of
Information application 95
Customer Council
Early in 2006/07, the Customer Council was abolished and
planning commenced for the establishment of a new state-wide
tenant consultative structure. Housing NSW is consulting on and
finalising the role and logistics of establishing a new tenant state-
wide body.
(For more information on state-wide tenant consultative structures,
see Objective 4, p. 58.)
Community Housing Advisory Committee Table A.3 Corruption Prevention and Ethics Committee meetings
The Community Housing Advisory Committee was established Members Position Meetings attended
in 2001/02 as a state-level committee to provide advice on J Mant External Chair 2
community housing strategic issues and emerging policy matters
M Allen Director-General 2
for the community housing sector. It also provides advice on
the continuing reform of the administrative and resourcing K Roach Executive Director
Governance and Regulation
arrangements for the sector. The Committee provides expert
(until January 2007) 1
advice on broader strategic directions to complement the
C Dreis A/Executive Director
recommendations in the Legislative Council Standing Committee
Governance and Regulation
on Social Issues ‘Inquiry into Community Housing’ report. The (from January 2007) 1
committee met four times in 2006/07.
P Vevers Deputy Director-General
Members: Operations 1
Mr Vic Smith Independent Chair
Ms Maura Boland Executive Director, Office of Non-government Organisations New Products
Community Housing Reference Group
Professor William Randolph Community Housing Policy The Non-government Organisations New Products Reference
Mr Chris Jefferis ssociation to Resource
A Group was established in June 2002 to provide a forum for
Cooperative Housing consultation with peak housing groups on the development and
Ms Bobbie Townsend NSW Federation of Housing implementation of current and future new products. The reference
Associations group met three times in 2006/07.
Dr Vivienne Milligan Affordable Housing Members
Mr Brian Murnane Church Managed Housing Nada Nasser (Chair) Director, Product Strategy
and Development
Mr Graham Brooke Housing Development and Finance
Paula Rix Policy Officer, NSW Churches
Mr Lindsay Kelly Tenant representative Community Housing
Corruption Prevention and Ethics Committee Warren Gardiner Policy Officer, NSW Council of
Social Services
During 2006/07, the Corruption Prevention and Ethics Committee
continued to oversee Housing NSW’s corruption prevention Karine Shellshear Executive Officer, The Association to
program. The Committee reviewed reports on investigations data Resource Co-operative Housing
and trends, education and training and the status of components Chris Martin Policy Officer, Tenants Union of NSW
within the corruption prevention framework. This Committee also Robert Mowbray Policy Officer, Shelter NSW Co-op Ltd
monitored our relationship with the Independent Commission
Against Corruption (ICAC). Melanie Southwell Research Officer, NSW Federation of
Housing Associations
Upon its establishment in 2004, the independent Chair of the
Corruption Prevention and Ethics Committee stipulated that the Secretariat
Committee should be reviewed after two years of operation. That Kevin Gardner Principal Policy Analyst, Product Strategy
review was completed in early 2007, where it was found that while and Development
a valuable contribution had been made to strengthen Housing
NSW’s corruption resistance, the most effective way forward was
to amalgamate the functions of the Corruption Prevention and
Ethics Committee with those of the Risk Management and Audit
Committee. This was done in April 2007. Two meetings were held
in 2006/07.
6. Equal Employment Opportunities > broadening the access to Certificate IV qualifications for
As well as reporting annually to the Department of Premier and client service staff to build and fast track development in key
Cabinet, through the Office of Employment Equity and Diversity, competencies
Public Employment Office on the diversity of its workforce, Housing > compulsory induction program for all staff
NSW participates in a wider Human Resources Benchmarking > an annual Aboriginal and Torres Strait Islander gathering and
program to monitor its performance against other public sector
agencies. Our performance compares favourably in relation to > an effective Aboriginal Reference Group.
industry benchmarks and government targets.
Proposed Strategies
Representation of equal employment opportunity groups is Housing NSW will continue to support those strategies, which
reasonably distributed through the overall population, suggesting have been successful, particularly for Aboriginal and Torres
that access to relief opportunities and selection processes are Strait Islander employees. In addition, a number of strategies are
fair. However, female and Aboriginal and Torres Strait Islander proposed or are already underway for 2007/08, including:
staff continue to have a higher proportion employed at lower
salary levels. > collection of base data via survey on Aboriginal and Torres Strait
Islander employment strategies already in place
Employment of equal employment opportunity target groups is
consistent with previous years. Women and Aboriginal and Torres > broadening the access to Certificate IV qualifications for
Strait Islander people again were a higher proportion than the client service staff to build and fast track development in key
benchmarked targets. competencies
> targeting of tailored and blended learning solutions for specific
Achievements groups
A range of diversity strategies contributed to the organisation’s
> a compulsory induction program for all staff
success, including:
> a more focussed traineeship program with the option of targeting
> collection of base data via survey on Aboriginal and Torres Strait
Indigenous trainees and
Islander employment strategies
> an Aboriginal and Torres Strait Islander buddy program.
Table A.9 Trends in the representation of EEO groups
% Total staff
Group Benchmark or target 2003 2004 2005 2006 2007
Women 50* 59 60 61 61 62
Aboriginal and Torres Strait Islander people 2 3 3.7 5.2 7.4 7.0
People whose first language was not English 20 18 18 16 16 16
People with a disability 12 11 11 9 9 8
People with a disability requiring work-related adjustment 7** 3 2.9 2.4 2.1 1.9
* The target for 2003–06 was 61.
** The target for 2003–06 was 2.1.
7. Occupational Health and Safety > provision of voluntary influenza vaccinations for staff and
Improvements in occupational health and safety performance > development of new business processes and system
continued in 2006/07, including: functionality for the SAP Occupational Health and Safety
module to result in better reporting of hazards and incidents.
> implementation of a three-year (2005–08) Occupational Health
and Safety and Injury Management Strategy In 2007/08, we will:
> implementation of an Annual (2006/07) Occupational Health and > continue to improve occupational health and safety and injury
Safety and Injury Management Plan which has resulted in: management training
− further development, refinement and continued improvement > improve the monitoring and reporting of incidents and injuries
of the existing safety management system to line management
− occupational health and safety and injury management > continue to assign accountabilities and responsibilities for all
accountabilities and responsibilities being included in levels of management and include them in position descriptions,
performance agreements for senior executives performance agreements and reviews
− development of core key performance indicators (lag and lead) > design strategies and initiatives in response to outcomes of the
for occupational health and safety and injury management 2006 Survey on Awareness of Occupational Health and Safety
and regular assessment against those core key performance Rights and Responsibilities and
indicators > design the 2007 Survey on Awareness of Occupational Health
− development of a corporate Consultation and Communication and Safety Rights and Responsibilities for all staff.
Standard for occupational health and safety committees/
occupational health and safety representatives Incidents Reported
− development and dissemination of a Survey on Awareness of Since 2005, all hazards and incidents are reported by employees
Occupational Health and Safety Rights and Responsibilities to in the information technology system Employee Self Service (ESS)
all staff and and work is flowed directly to line managers for action, enabling
improved reporting and tracking. Incidents are required to be
− development and provision of occupational health and safety
reported, whether or not they resulted or are likely to result in a
information, instruction and training (e-learning) to all staff to
workers’ compensation claim.
enhance their understanding of their roles and responsibilities
under Housing NSW’s occupational health and safety and Of the total incidents reported in 2006/07, 48 percent related to
injury management systems and procedures client aggression. While the majority of incidents reported related
to verbal abuse or threats, six incidents (4.7 percent) in 2006/07,
> development of an Annual (2007/08) Occupational Health and
related to an attempted and/or physical assault of a staff member,
Safety and Injury Management Plan, which will be measured and
including spitting. None of these incidents were reported to have
reviewed against improvement targets in the Strategy
required first aid or medical attention.
> provision of Occupational Health and Safety Consultant
resource to support occupational health and safety and injury Table A.11 Total incidents reported
management initiatives Year Incidents
> development of Corporate Standards for Field Work, Outreach 2002/03 269
Centres and Client Conduct to minimise the risk of client 2003/04 364
initiated violence
2004/05 139
> development of control measures to minimise the risk of needle 2005/06 251*
stick injury and other sharps when staff are conducting field work
2006/07 268
> development and provision of e-learning sexual harassment
training for all staff * Please note the revised incident number for 2005/06. The number ‘102’
published in the 2005/06 Annual Report was incorrect. However, this was not
identified until after the report was published and distributed.
Injury Management
Housing NSW’s performance against the Working Together
targets are on course and strategies have been included in the
Annual Occupational Health and Safety and Injury Management
Improvement Plan for continual improvement of these outcomes.
Over the last year, we have been active in ensuring that all
our injury management services, provided in a shared service
agreement by NSW Businesslink, are consistent across NSW, by
streamlining work practices and having quarterly review meetings
with all Return to Work Coordinators. This has had a positive
impact on the management of our workers’ compensation claims.
The Workers’ Compensation Manager developed divisional reports
on monthly claim numbers and injury management activities
and offered training to help raise awareness of the importance
of proactive claims management across Housing NSW and to
produce better return to work outcomes.
We also tendered for a workers’ compensation insurer, recognising
an opportunity to secure higher-quality claims management from
its insurer. As a result of this tender, from 1 July 2007, a new
insurer (GIO) will manage our workers’ compensation claims.
Workers’ Compensation
Total number of claims 88
Total number of claims settled 54
Net* claims cost (as at 30 June 2007) $424,079
* Net claims cost is the capped claims cost which is used to calculate our
workers’ compensation insurance premium.
will enter into a service level agreement, with an overarching The Tenancy Guarantee Program is designed to assist people,
operating agreement between Housing NSW (Office of who could sustain a private rental market tenancy but who are
Community Housing) and Department of Ageing Disability and experiencing barriers to establishing a new tenancy. These barriers
Home (at the regional level) under the NSW Housing and Human include discrimination based on personal circumstances, no rental
Services Accord and tenancy history or a problem with their rental history.
> assistance to carers through the NSW Carers Action Plan In March 2006, the NSW Premier launched Better Together, the
2007‑2011. inter-agency strategy to guide government agencies in working
together to improve outcomes for people with a disability over the
The NSW Housing and Human Services Accord was introduced
next five years. A core objective is to expand the range of housing
as part of the Reshaping Public Housing reforms. The Accord
for people who require specialist accommodation. One of the
establishes the framework for cross-agency housing and support
strategies to achieve this is to trial ‘a shared equity accommodation
agreements, assisting social housing tenants who have a disability
model, in partnership with a non-profit organisation, where a
to receive the support services they require to maintain their caring
family sponsors housing for their relative with a disability as a
role, and therefore sustain their tenancies.
contribution to their continued support’. Housing NSW and the
(For more information on the Accord, see Objective 4, p. 49.) Department of Ageing, Disability and Home Care are exploring
The NSW Partnership Against Homelessness is a coordinated shared equity models that allow people with a disability to obtain
approach to homelessness that brings together a network of NSW long-term housing by utilising their own funds or contributions
government agencies, led by Housing NSW. Homeless people with from their family.
complex needs, including people with disabilities, have continued
to be a focus area of need and the Partnership provides housing
Staff Awareness
and support options for them. A training day was held for new and existing Tenancy Guarantee
issuing agencies in May 2006 to ensure that the program
(For more information on the Partnership Against Homelessness, continues to develop and deliver best practice. The Certificate
see Objective 4, p. 51.) IV in Social Housing is providing a greater focus on assessment
The Joint Guarantee of Service for People with Mental Health and support of clients with complex needs, including people with
Problems and Disorders continued through 2006/07 as a broad disabilities, and the role of Housing NSW in working with other
inclusive strategy to guide the coordinated delivery of services service providers who provide specialist support.
to people with mental health problems and disorders who have
ongoing support needs living in social housing. A series of Information about Services
information forums were held across the state during 2006 to The newsletter developed for the Joint Guarantee of Service for
progress the implementation of the expanded Joint Guarantee People with Mental Health Problems and Disorders continues
of Service. to provide information on recent developments around the
(For more information on Joint Guarantee of Service, introduction of new arrangements under the Guarantee.
see Objective 4, p. 50.) A Disability fact sheet is being developed to provide clear
The innovative Housing and Accommodation Support Initiative information about housing assistance programs that respond
maintained its highly successful provision of accommodation, to the needs of people with a disability.
linked to support for people with a range of levels of mental health Forward Plan
needs. During 2006/07, the Housing and Accommodation Support
Strategies planned for the following year are to:
Initiative continued to expand and achieved a range of positive
outcomes at both the service system and client levels. > continue to implement the Reshaping Public Housing reforms,
including the Housing and Human Services Accord’s shared
(For more information on Housing and Accommodation Support
access system. This action will continue the development of an
Initiative, see Objective 4, p. 49.)
assessment framework for access to social housing, identifying
Service Planning and Delivery the support needs of people with a disability earlier and ensuring
During 2006/07, Housing NSW continued to implement New support services are engaged with more effectively through this
Directions in Social Housing for Older People, including roll-out of assessment system
a five-year commitment to invest $75 million in modifications which > develop and implement Housing NSW’s Disability Action
will make life easier for older people. This includes installing lifts Plan 2007–10 in line with the NSW Government’s Disability
and adapting kitchens and bathrooms. Framework, the Better Together inter-agency strategy and the
The Office of Community Housing continued implementing the State Plan
Community Housing Disability Policy. Released in late 2003, the > roll out and implement the Disability Housing and Support
Policy aims to guide the provision of community housing services Initiative
to people with a disability who live in, or are applying to live in, > continue to lead a coordinated approach to homelessness
community housing in NSW. through the Partnership Against Homelessness and seek to
broaden the range of housing and support options for people
who are homeless through a range of cross-agency initiatives
> continue to implement priority actions under the New Directions
in Social Housing for Older People commitments
> Housing NSW has made substantial progress in providing > Housing NSW is a member of the NSW Government Immigration
cultural awareness training through staff development and Settlement Planning Committee, chaired by the Community
programs, including: Relations Commission. In this role, we provide advice and
– the Certificate IV in Social Housing qualifications. During information on housing issues to the Commission, which
2006/07, this program continued to include a module represents NSW on the State Committee for Immigration and
on Working effectively with culturally diverse clients and Multicultural Affairs and advises the Minister at the Ministerial
co‑workers and Council on Immigration and Multicultural Affairs.
– staff induction program, which commenced in August 2006 Funded Services
and includes a module on Cultural Diversity Awareness. A total
Community housing constitutes about 10 percent of social housing
of 165 people participated in this training during 2006/07.
in NSW and is provided through more than 400 not-for profit
> Housing NSW purchased 21 videos called Working with organisations.
Interpreters. This video is produced by Centrelink Multicultural
> Approximately one-third of the total housing funded by the Office
Services and is being used to improve effective communication
of Community Housing is occupied by clients from culturally
with interpreters.
and linguistically diverse backgrounds. During 2006/07, over
> A review of the Community Language Allowance Scheme was 10.3 percent (236 properties) of new allocations in community
completed in 2006/07 and recommendations from this review housing were made to culturally diverse households.
are now being finalised. In 2006/07, 80 staff members, with
> Under the Performance Based Registration System (PBRS),
proficiency in 27 different community languages, assisted clients
community housing providers are required to demonstrate
and fellow staff by providing language and interpretation support.
achievements under nine performance outcomes. Two
of the nine outcomes relate to fair treatment of clients
Communication
and responsiveness to need. These are issues which are
> Housing NSW maintains a strong commitment to providing free
directly relevant to cultural diversity, and other special needs
language services to clients with English language difficulties.
communities.
During 2006/07, our data indicated that:
> Twenty-five percent of tenant-managed housing cooperatives,
– over 5,000 hours of interpreter services were provided by
funded by the Office of Community Housing, target their housing
the Block Booking Interpreter Services. Clients were assisted
allocations specifically for clients of culturally and linguistically
free of charge in 12 community languages by interpreter
diverse backgrounds. In total, they manage approximately
sessions provided in 13 Housing NSW offices in the Sydney
115 properties across the greater Sydney metropolitan area.
metropolitan area and
– the Telephone Interpreting Services is extensively used by Forward Plan
clients and staff throughout Housing NSW. During 2006/07, To ensure that clients from culturally and linguistically diverse
over 4,000 transactions were made by the Parramatta backgrounds access housing assistance, our Ethnic Affairs and
Housing NSW office alone. The major languages used were Priorities Statement priorities for 2007/08 include:
Arabic, Vietnamese, Spanish, Russian and Cantonese/
> progressing and finalising the culturally and linguistically diverse
Mandarin.
(CALD) data collection project to be able to provide improved
> Housing NSW continued to communicate the implementation reporting data in 2008/09
of the Reshaping Public Housing reforms to diverse
> continuing to work with other NSW government agencies to
communities by:
coordinate planning and responses related to the Refugee and
– ensuring culturally and linguistically diverse communities were Special Humanitarian Programs
represented in ongoing consultation processes
> maintaining links with culturally diverse clients and communities
– translating information into 13 community languages, including to address client service and best practice issues
languages for new emerging communities and
> providing training on working with culturally and linguistically
– translating fact sheets, accessible through our website, and diverse communities to all client service teams in metropolitan
distributing to the wider community at relevant government Housing Services Divisions
and community forums.
> planning the development of a Housing NSW intranet page
> Housing NSW continued to participate in a number of forums on cultural diversity to facilitate staff access to information and
involving government and non-government agencies and resources about cultural diversity and
expanded its networks with community organisations and
> continuing to provide appropriate interpreter services to help
emerging communities. We are represented on the Humanitarian
clients with English language difficulties.
and Refugee Settlement Forum, chaired by the Department of
Immigration and Citizenship and the Refugee Support Network,
a network of government and non-government agencies.
11. Government Waste and Energy > under the community regeneration initiative, it was necessary
to break down the concentration of public housing in estates
Management Policy by integrating private housing with social housing and/or
Waste Reduction > public housing tenants applied to purchase the dwelling in which
The last data collection reporting period for Housing NSW was they were residing.
2006 (1 January to 31 December). The amount of copy and all Proceeds from the sale of properties were either used to support
other paper recycled increased from 8.56 tonnes reported in Housing NSW's operations or reinvested into public housing
the 2005 Plan to 73.68 tonnes as reported in the 2007 Plan. initiatives. There were no sales of $5 million or more in 2006/07
In addition, 225 toner cartridges were recycled through a pick‑up other than by tender or public auction. Access to documents
and reuse contract while 354.56 tonnes of packaging, glass relating to each disposal may be obtained under Freedom of
bottles and aluminium cans were recycled. Information guidelines.
Resource Recovery Table A.17 Property disposal in 2006/07
Paper, cardboard and toner cartridges are recycled. The Proceeds
decentralised nature of the processes for recycling has been (net of selling Cost
maintained. Our offices have separate collection points for cans, Number of expenses) of sales
bottles and plastics where there is space or there is access to properties $’000 $’000
these facilities. The Head Office building at Ashfield has facilities Land held for redevelopment 12 1,907 2,133
for recycling paper and cardboard. The contract specifications for Residential properties 691 139,879 155,245
construction and maintenance incorporate the requirements of the
Vacant land 73 16,092 12,398
Waste Avoidance and Resource Recovery Act 2001.
Commercial properties 1 33,400 20,116
Use of Recycled Materials Sub total 777 191,278 189,892
Desk stationery from recycled material is purchased as is recycled Transfers to Aboriginal
paper where the cost is competitive. The contract provisions for Housing Office –
printers include recycling toner cartridges. Procedures continue Residential properties 10 0 835
to be developed to improve the use of recycled materials in the Land 16 0 1,072
building and construction work managed by Housing NSW. During Total 803 191,278 191,799
the last Waste Avoidance and Resource Recovery reporting year
2006 (1 January to 31 December), approximately 14,999 reams Proceeds realised from property disposals reflect declining property
of recycled paper were purchased. values in 2006/07. The Corporation reports its property portfolio
on a fair value basis by applying the 31 December market selling
Energy Use
prices to the portfolio. The cost of most properties sold during
Housing NSW continues to report its energy usage in accordance the year represent relative market selling prices at 31 December
with the Government Energy Management Policy. Energy saving 2005. As a result, the sale of properties generated a gain of
results are available from the Department of Commerce and $1.386 million. In addition, the Corporation transferred properties
electricity providers in October each year. Electricity accounts were to the Aboriginal Housing Office for nil consideration. The cost of
reviewed and adjustments made to correctly assign them as office the transferred properties contributed $1.907 million to the total
and common areas. loss on property disposal, which amounted to $0.521 million
For 2006/07, our usage of Green Power was 618,304 kWh for in 2006/07.
office buildings and 548,864 kWh for common areas, which
represents 3.6 percent of the total consumption. We have been
progressively increasing the Green Power component through the
supply contracts to meet the target of 6 percent.
Table A.16 Electricity consumption
2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07
Office building (kWh) 7,665,595 6,918,817 7,697,930 7,510,029 8,352,341 5,009,734 12,825,024
Common area housing (kWh) 22,634,902 21,716,409 23,518,550 18,842,781 20,779,966 26,237,215 18,272,288
15. Consultants
The following table lists consultants engaged by Housing NSW and
paid in excess of $30,000 during the year 2006/07.
Table A.26 Consultants paid in excess of $30,000
Provider Cost Title of project Description of purpose Category
Deloitte Touche Tohmatsu $137,137 GST treatment within Housing NSW Advice on GST treatment of activities within Financial and Risk
Housing NSW Management Advice
Ernest & Young $94,815 Asset Quality System evaluation Review of quality assurance and inspection Financial and Risk
regime Management Advice
KPMG $88,000 Accounting treatment of Bonnyrigg Private Provide advice on the accounting treatment Financial and Risk
Public Partnership for the Bonnyrigg Private Public Partnership Management Advice
Judith Stubbs and Associates $77,178 Indigenous housing demand Research of factors affecting housing Strategy and Policy
demand and supply for Indigenous people Development
in parts of Southern and Western NSW
NSW Department of Commerce $75,000 Governance structure of the Major Projects Proposal for the governance arrangements Management
Directorate for the Major Projects Directorate services
Susan Johnston Consultancy $64,580 Joint Guarantee of Service formative Evaluate Joint Guarantee of Service Strategy and Policy
evaluation Development
PriceWaterhouseCoopers $51,728 GST apportionment and back claims Provide advice on GST treatment Financial and Risk
Management Advice
ARTD Pty Ltd $50,750 Tenant Participation Program review An evaluation of the Housing NSW’s Tenant Strategy and Policy
Participation Program components Development
Deloitte Touche Tohmatsu $49,500 GST treatment of appropriation payments Advice on the GST treatment of the Financial and Risk
appropriation payments between Housing Management Advice
NSW and NSW Businesslink
RPR Consultancy Pty Ltd $34,650 Review Inner City Homelessness Action Evaluate Phase 1 to determine strategies Strategy and Policy
Plan (ICHAP) Phase 1 and develop ICHAP for Phase 2 of the Inner City Homelessness Development
Phase 2 Action Plan
Deloitte Touche Tohmatsu $30,613 GST treatment of long-term, non-renewable To assess the potential GST treatment Financial and Risk
residential tenancy agreements Management Advice
Table A.29 Client feedback breakdown Table A.30 Results of first-tier appeals
Allocation appeals 24 0.09 82 0.18 Appeals declined (ie. original 1,250 53.65 1,176 50.00
Contractor 294 1.04 324 0.71 decision not overturned)
Emergency housing 132 0.47 449 0.98 Appeals upheld (ie. original decision 409 17.55 507 21.56
Fraud 163 0.58 247 0.54 overturned)
General inquiry 8955 31.72 15,626 34.03 Appeals upheld with additional 391 16.78 377 16.03
General housing 839 2.97 2810 6.12 information
Home purchase issues 72 0.26 155 0.34
Local office 842 2.98 2219 4.83 Appeals withdrawn/resolved 280 12.02 292 12.41
Mutual exchange 48 0.17 110 0.24 Total 2,330 100.00 2,352 100.00
Nuisance and annoyance 1028 3.64 1238 2.7
Other 275 0.97 26 0.06
Policy issue 16 0.06 37 0.08 Second-tier Appeals
Priority housing 216 0.77 465 1.01 The Housing Appeals Committee is committed to providing
Privacy 3 0.01 7 0.02 a high-quality independent appeals service for all NSW social
Recalls 3 0.01 8 0.02
housing clients. Applicants and tenants of public housing and
Rehousing 303 1.07 558 1.22
Antisocial behaviour 62 0.22 256 0.56 community housing can lodge an appeal with the Housing Appeals
Eligibility 10 0.04 534 1.16 Committee. In addition to hearing client appeals, the Housing
PFP 1 0.00 0 0.00 Appeals Committee also promotes accountable social housing
Survey 1398 4.95 2313 5.04 policies and procedures and transparent social decision making.
Tenancy 24 0.09 57 0.12
During 2006/07, the Housing Appeals Committee received a total
Tenancy appeals 13 0.05 28 0.06
Water 3493 12.37 2762 6.02 of 432 appeals, 15 of which were from the community sector.
Rent 2852 10.10 3689 8.03 During the same period, the Housing Appeals Committee listed
Rentstart 1387 4.91 4071 8.87 343 appeals for a hearing. Eighty-four appeals did not proceed to a
Repair charges 67 0.24 117 0.25 hearing due to a number of identified issues, including the need for
Request for maintenance 1603 5.68 2027 4.41 a first-tier appeal or the matter was outside of the Housing Appeals
Service provided 65 0.23 237 0.52 Committee’s jurisdiction. In addition, 13 appeals were withdrawn
Staff member 395 1.40 553 1.2
at the initial stage of the appeals process once scheduled for a
Subsidy 2759 9.77 2752 5.99
Succession of tenancy 60 0.21 81 0.18 hearing.
Upgrade work (AIP) 112 0.40 86 0.19 During 2006/07, the Housing Appeals Committee heard 343
Wait time 207 0.73 421 0.92 appeals, 329 from public housing and 14 from the community
Wait time for maintenance 363 1.29 675 1.47 housing sector.
Website 34 0.12 46 0.1
Vacant property 8 0.03 11 0.02 A breakdown of appeals heard by Divisions shows:
Vacating 102 0.36 177 0.39 > 157 from Central Sydney Housing Services Division
Over 45 (Aboriginal)* 0 0.00 4 0.01
Over 65* 0 0.00 504 1.1 > 111 from Greater Western Sydney Housing Services Division
Redevelopments* 0 0.00 47 0.1 > 27 from Northern NSW Housing Services Division
Statements* 0 0.00 107 0.23
> 34 from Southern & Western NSW Housing Services Division and
Total 28,228 100.00 45,916 100.00
> 14 from the community housing sector.
* New categories introduced in 2006/07
Table A.31 Second-tier appeals hearing results Community Housing External Appeals Systems
2004/05 2005/06 2006/07 The Community Housing External Appeals System supplements
Declined 246 239 185 the internal appeals system of community housing organisations by
HAC recommended at change in decision 196 109 141
providing community housing applicants and tenants with access
to a secondary or external appeals system through the Housing
Withdrawn/Resolved 29 6 13
Appeals Committee, similar to the system that is provided to
Approved by Housing NSW following public housing clients. This independent external appeals system
adjournment 0 25 0
offers clients the opportunity to have a decision that they believe is
Total 471 379 339 incorrect or unfair to be reviewed by an external and independent
panel. In 2006/07, 15 appeals were received, and 14 appeals
Table A.32 Second-tier appeals final outcomes proceeded to hearings.
2004/05 2005/06 2006/07
Table A.33 Community housing appeals 2006/07
Recommendations supported by
Housing NSW 186 102 117 2004/05 2005/06 2006/07
Recommendations not supported Declined appeals heard 3 7 4
by Housing NSW 10 5 5 Appeals heard and referred to 1 2 7
Resolved 0 0 20 housing provider
Total 196 109 142 Adjourned 4 1 4
Resolved/withdrawn 0 0 0
Total 8 10 15
Table A.35 Ageing analysis of accounts payable balances (at the end of each quarter)
Total Current Less than Between Between More than
Quarter within 30 days 30 and 60 days 60 and 90 days 90 days
due date overdue overdue overdue overdue
$ $ $ $ $ $
September quarter 15,074,051 14,754,443 7,128 0 2,511 309,969
December quarter 27,502,256 27,124,935 0 11,077 230 366,015
March quarter 12,825,696 12,511,416 0 19,160 0 295,121
June quarter 16,403,015 16,038,138 7,265 0 4,027 353,585
(a) Becton Bonnyrigg Equity Pty Limited (ACN 075 580 406) > Home Improvements Standards (02/07)
as trustee for the Becton Bonnyrigg Equity Trust, > Home Purchase Advisory Service (08/06)
(b) Bonnyrigg Development Pty Limited (ACN 122 647 483), > Housing for Aboriginal and Torres Strait Islander People (04/07)
(c) Bonnyrigg Partnerships Nominee Pty Limited > Inner City Homelessness Outreach and Support Services (07/06)
(ACN 123 052 362),
> Inner West Social Housing Q & A (01/07)
(d) WEST BP Pty Limited (ACN 122 967 186) as trustee for
> Interim Tenancies (12/06) (14 languages – English, Arabic,
the WEST BP Trust.
Bosnian, Chinese, Croatian, Dinka, Dari, Farsi, Korean, Russian,
(2) Exemption in relation to developer contracting with Serbian, Spanish, Turkish and Vietnamese)
unlicensed contractor
> Interpreter Services (11/06)
The New South Wales Land and Housing Corporation is
> Lease Review (06/07) (14 languages – English, Arabic, Bosnian,
exempt from the requirements of section 4 (4) of the Act, but
Chinese, Croatian, Dinka, Dari, Farsi, Korean, Russian, Serbian,
only to the extent that the Corporation contracts with a person
Spanish, Turkish and Vietnamese)
referred to in subclause (1) in respect of the housing project
known as the “Bonnyrigg Living Communities Project”. > Locational Needs Assessment (10/12)
> Moving from Public to Private Accommodation (06/07)
25. Publications > Mutual Exchange Program (12/06) (14 languages – English,
The following is a list of publications released in 2006/07. Arabic, Bosnian, Chinese, Croatian, Dinka, Dari, Farsi, Korean,
They are all available from the Housing NSW website Russian, Serbian, Spanish, Turkish and Vietnamese)
(www.housing.nsw.gov.au) or by request at any Housing NSW > Nuisance and Annoyance (01/07)
office. Dates in brackets indicate version released in 2006/07.
> Pay Television (10/06)
Corporate Publications > Paying for Water (03/07)
> NSW Housing Youth Achievement Awards flyer and > Priority Housing (12/06) (14 languages – English, Arabic,
poster (08/06) Bosnian, Chinese, Croatian, Dinka, Dari, Farsi, Korean, Russian,
> NSW Youth Housing Scholarships flyer and poster (08/06) Serbian, Spanish, Turkish and Vietnamese)
> Annual Report 2005/06 (12/06) > Problems with Harassment (01/07)
> Housing NSW Code of Conduct and Ethics (01/07) > Problems with Noise (01/07)
> NAIDOC Week 2007 Storytelling Competition poster (06/07) > Public Housing (12/06) (14 languages – English, Arabic, Bosnian,
> A New Direction in Affordable Housing for the Inner West (11/06) Chinese, Croatian, Dinka, Dari, Farsi, Korean, Russian, Serbian,
Spanish, Turkish and Vietnamese)
> A New Direction in Building Stronger Communities
brochure (04/07) > Relocating Tenants for Management Purposes
Redevelopment (03/07)
> A New Direction in Building Stronger Communities short
brochure (01/07) > What you need to know – Notice of Termination (03/07)
> NSW Housing and Human Services Accord between Housing > What happens after the Department asks you to move (03/07)
NSW and NSW Human Service Agencies (03/07) > When the Department asks you to move (03/07)
> 5th National Housing Conference 2008 brochure (06/07) > Remote Responsive Dwelling Service Program Q&A (05/07)
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Rent & Sales Report 76
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Rent & Sales Report 77
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Financial Statements
Contents
Independent Auditor’s Report 106
Adoption of Financial Statements 108
Statement by the Director-General 108
Operating Statement 109
Balance Sheet 110
Cash Flow Statement 111
Statement of Changes in Equity 112
Notes to and Forming Part of the
Financial Statements 113
1. The reporting entity 113
2. S
ummary of significant accounting policies 113
3. N
et rent and other tenant charges 120
4. Government grants 120
5. Interest income 121
6. Management fees income 121
7. Sundry income 122
8. Repairs and maintenance 122
9. Employee related expenses 122
10. Other operating expenses 123
11. Depreciation and amortisation 123
12. Grants expense 124
13. Finance costs 124
14. Disposal of assets 125
15. C urrent assets – cash and cash equivalents 126
16. Current assets – receivables 127
17. C urrent/Non-current assets – other financial assets 128
18. C urrent/Non-current assets – pre-payments 129
19. N on-current assets classified as held for sale 141
20. N on-current assets – property, plant and equipment 143
21. Intangible assets 147
22. Current liabilities – payables 147
23. C urrent/Non-current liabilities – borrowings 148
24. C urrent/Non-current liabilities – provisions 149
25. Other current/Non-current liabilities 150
26. Changes in equity 151
27. Commitments for expenditure 152
28. Deferred maintenance 152
29. Contingent liabilities 153
30. R econciliation of net cash from operating
activities to surplus (deficit) for the year 153
31. Prior period errors 153
32. N on-cash financing and investing activities 153
33. Financial instruments 154
Register of Land Held 158
The financial statements of the NSW Department of Housing (the Department) have been prepared in accordance with the statute
provisions of the Public Finance and Audit Act 1983, the Public Finance and Audit Regulation 2005 and the Treasurer’s Directions.
Pursuant to section 45F of the Public Finance and Audit Act 1983, it is recommended that:
> The financial statements for the year ended 30 June 2007 be adopted and the Director-General provide a statement to the effect that
in his opinion the accompanying financial statements have been prepared in accordance with the provisions of the Public Finance and
Audit Act 1983, the Public Finance and Audit Regulation 2005, applicable Australian Accounting Standards, Australian Accounting
Interpretations, Treasury Accounting Policy Statements and the Treasurer’s Directions, and that as at 23 October 2007, he is not aware of
any circumstances which would render any particulars included in the financial statements to be misleading or inaccurate.
M Haerewa
Chief Financial Officer
23 October 2007
Pursuant to section 45F of the Public Finance and Audit Act 1983, I, M Allen, Director-General, state that in my opinion:
1. The accompanying financial statements exhibit a true and fair view of the financial position of the NSW Department of Housing as at
30 June 2007 and transactions for the year then ended.
2. The statements have been prepared in accordance with the provisions of the Public Finance and Audit Act 1983, the Public Finance
and Audit Regulation 2005, applicable Australian Accounting Standards, Australian Accounting Interpretations, Treasury Accounting
Policy Statements and the Treasurer’s Directions.
As at 23 October 2007, I am not aware of any circumstances which would render any particulars included in the financial statements to be
misleading or inaccurate.
M Allen
Director-General
for and on behalf of
NSW Department of Housing
23 October 2007
Operating Statement
For the year ended 30 June 2007
2007 2006
Notes $’000 $’000
Income
Rent and other tenant charges 3 639 703 602 086
Government grants 4 528 123 495 680
Interest income 5 22 330 25 463
Management fees income 6 6 886 7 366
Sundry income 7 11 907 15 828
Gain on disposal of assets held for sale 14 (iv) 13 193 –
Expenses
Repairs and maintenance 8 224 336 234 822
Council rates 97 131 95 217
Water rates 63 251 61 480
Employee related expenses 9 189 599 169 668
Other operating expenses 10 104 635 105 838
Depreciation and amortisation 11 260 213 249 464
Grants expense 12 125 262 125 847
Finance costs 13 88 294 84 163
Impairment of receivables 16 (iv) 9 565 5 733
Loss on disposal 14 39 989 30 830
Balance Sheet
As at 30 June 2007
2007 2006
Notes $’000 $’000
ASSETS
Current Assets
Cash and cash equivalents 15 193 923 130 698
Receivables 16 20 185 20 298
Other financial assets 17 33 219 88 670
Prepayments 18 19 717 18 870
Non-current assets classified as held for sale 19 30 640 56 237
Total Current Assets 297 684 314 773
Non-Current Assets
Other financial assets 17 138 048 141 419
Property, plant and equipment 20 27 826 465 27 491 818
Intangible assets 21 11 438 5 207
Prepayments 18 14 721 19 341
Total Non-current Assets 27 990 672 27 657 785
TOTAL ASSETS 28 288 356 27 972 558
LIABILITIES
Current Liabilities
Payables 22 232 910 183 030
Borrowings 23 29 772 14 402
Provisions 24 62 717 53 549
Other 25 222 222
Total Current Liabilities 325 621 251 203
Non-Current Liabilities
Borrowings 23 905 261 952 794
Embedded derivatives on borrowings 2 p) 5 937 8 966
Provisions 24 8 638 9 946
Other 25 20 969 21 191
Total Non-current Liabilities 940 805 992 897
TOTAL LIABILITIES 1 266 426 1 244 100
NET ASSETS 27 021 930 26 728 458
EQUITY
Retained earnings 26 9 094 803 8 917 319
Asset revaluation reserve 26 17 927 127 17 811 139
TOTAL EQUITY 27 021 930 26 728 458
2007 2006
Notes $’000 $’000
Cash flows from Operating Activities
Receipts
Rent 634 300 596 703
Government grants – CSHA 491 172 481 884
Government grants – Other NSW Government Agencies 36 951 13 796
Interest received 23 240 26 269
Management fees 6 886 7 366
Other 25 622 33 713
Total receipts 1 218 171 1 159 731
Payments
Property and residential tenancy (409 464) (436 409)
Employee related (177 003) (157 500)
Administrative and working (68 276) (73 756)
Finance costs (54 922) (54 772)
Grants and subsidies (123 786) (99 850)
Other (15 410) (12 584)
Total payments (848 861) (834 871)
Net cash flows from Operating Activities 30 369 310 324 860
Payments
Purchase of property, plant and equipment (504 777) (359 122)
Purchase of investments held to maturity (7 883) (153 634)
Other – (4 160)
Total payments (512 660) (516 916)
Net cash flows from Investing Activities (237 432) (345 310)
CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR 15 193 923 130 698
2007 2006
Notes $’000 $’000
Total equity at beginning of financial year 26 728 458 27 147 643
Adjustment of prior year error
– upfront lease payment for 99-year leases AASB 117 – (21 628)
Adjustments on adoption of AASB 132 and 139
– Re-measurement of impairment of receivables – (1 654)
– Re-measurement of low interest borrowings – 432 592
– Re-measurement of other loans at fair value – (50 655)
Restated total equity at beginning of financial year 26 728 458 27 506 298
Note 1: The Reporting Entity Rental income received as upfront payments for leases with a term
exceeding 50 years is recognised on a straight-line basis over the
In accordance with AAS 29 Financial Reporting by Governments,
lease term in accordance with AASB 117 Leases. The unexpired
the NSW Department of Housing (the Department) as a reporting
portion of the lease is recognised as liability as per the accounting
entity comprises all the operating activities under its control,
standard and NSW Treasury Policy TPP06-3 Lessor Accounting
including those of the NSW Land and Housing Corporation (the
for Prepaid Long Term Leases of Land. The amounts of the upfront
Corporation). The Department and the Corporation are responsible
payments are disclosed in Note 25.
for implementing the housing assistance program in NSW and act
in a complementary manner to achieve a unified administration of The Office of Community Housing (OCH), a business unit of the
the Housing Act 2001. Department, is responsible for delivering the community housing
programs. The Department enters into lease agreements with
The Department is a not-for-profit entity as its principal objective is
accredited community housing providers, generally for a period of
to provide public housing to people with the greatest need and not
five years, at a nominal rent of $1. Ownership of leased dwellings
to generate profit. The Department’s financial report is consolidated
does not transfer to the lessees at the end of the lease terms.
as part of the NSW Total State Sector Accounts.
The lease contracts do not meet the definition of a finance lease.
This financial report for the year ended 30 June 2007 was Control remains with the Department.
authorised for issue by the Director-General of the Department
on 23 October 2007. (ii) Government grants
Government grants are recognised as income when the
Note 2: Summary of Significant Department gains control over the grants. Control is normally
obtained when cash is received. In accordance with Treasury
Accounting Policies mandate, the Department continues to apply the current version of
a) Basis of preparation AASB 1004.
The financial statements of the Department are a general purpose (iii) Interest income
financial report, which have been prepared in accordance with
Interest income is recognised as it accrues using the effective
applicable Australian Accounting Standards, Australian Accounting
interest method as set out in AASB 139 Financial Instruments:
Interpretations, the requirements of the Public Finance and Audit
Recognition and Measurement.
Act 1983 and Public Finance and Audit Regulation 2005. Where
there are inconsistencies between the accounting standards and (iv) Management fees and sundry income
legislative requirements, the legislative provisions have prevailed. Management fees and sundry income are recognised on
Judgments, key assumptions and estimations management an accrual basis in accordance with AASB 118 Revenue.
has made are disclosed in the relevant notes to the financial
statements. (v) Sale of properties
Except for certain assets and liabilities, which are measured Income from the sale of properties is recognised when the risks
at fair value as noted, the financial statements are prepared in and rewards associated with the ownership of property are passed
accordance with the historical cost convention. All amounts are to the purchaser, usually on settlement date.
rounded to the nearest one thousand dollars and are expressed in c) Employee benefits
Australian dollars. Unless otherwise noted, accounting policies are
Liabilities for salaries and wages (including non-monetary benefits),
consistent with those of the previous year.
annual leave and long-service leave as at reporting date are
b) Income recognition brought to account. On-costs, such as payroll tax, workers’
Income is measured at the fair value of the consideration compensation insurance premiums, employer’s contributions to
or contribution received or receivable. Additional comments superannuation and fringe benefits tax, which are consequential
regarding the accounting policies for the recognition of income are to employment, are recognised as liabilities when the employee
discussed below: benefits to which they relate are recognised. The Department
estimates its liability for employee benefits in accordance with
(i) Rent AASB 119 Employee Benefits and NSW Treasury Circular (NSWTC)
Rent is charged one week in advance and recognised as income 07/04 Accounting for Long Service Leave and Annual Leave.
on a straight-line basis.
The Department charges rent at current market rates, subject to
individual limitations. However, tenants are only required to pay
an amount equivalent to a pre-determined percentage of their
household income. Rent payable by tenants, including other tenant
related charges, is reported in the Operating Statement as Rent and
other tenant charges.
(iv) Depreciation and amortisation Operating lease payments are charged to the Operating Statement
in the periods in which they are incurred.
Property, plant and equipment, other than land are depreciated on
a straight-line basis. The estimated useful lives of the depreciable
assets are:
Asset class Estimated useful life
Note 2: Summary of Significant Each property in this particular portfolio is allocated an actuarial
index, which is based on annual property market values derived
Accounting Policies (continued) from the valuation of a random sample of properties. When the
o) Intangible assets actuarial index reaches pre‑determined levels, the properties are
earmarked for sale. As properties are sold, the Society is entitled
The Department recognises intangible assets only if it is probable
to a return of principal plus a share in capital profits. The Society’s
that future economic benefits will flow to the Department and the
share in capital profits is considered an embedded derivative,
cost of the asset can be measured reliably. Intangible assets are
which meets the relevant requirements of AASB 139 Financial
measured initially at cost. Where an asset is acquired at no or
Instruments: Recognition and Measurement and is therefore
nominal cost, the cost is its fair value as at acquisition date.
separated from the loan payable balance, recorded at fair value
All research costs are expensed. Development costs are only and disclosed separately in the Balance Sheet. Gains and losses
capitalised when certain criteria are met. arising from the valuation of embedded derivatives are recognised
Intangible assets are subsequently measured at fair value only in the Operating Statement.
if there is an active market. As there is no active market for the To assist in funding the payment of this liability to the Society
Department’s intangible assets, they are carried at cost less on maturity, the Department invests funds through a correlation
accumulated amortisation which represents fair value. The insurance arrangement (refer to Note 17). Under this arrangement,
Department’s intangible assets (currently only computer software) the Department has a charge over the funds invested. Investment
are amortised on a straight-line basis over a period of three years. proceeds are to be used to partly settle the Department’s liability to
The useful lives of intangible assets are assessed to be finite. the Society.
The Department is a not-for-profit entity. Assets cannot be impaired q) Rental Housing Assistance Fund
under AASB 136 Impairment of Assets unless selling costs are
The Rental Housing Assistance Fund (the Fund) was established
material. This is because for not-for-profit entities, AASB 136
by a trust deed dated 27 October 1993 and operates in the State
modifies the recoverable amount in such circumstances to be the
of NSW. It supports and administers the State’s rental housing
higher of fair value less costs to sell and depreciated replacement
programs in respect of the October 1993 Public Equity Partnership
costs.
arrangements.
p) Recognition of assets and liabilities – Public The Fund is considered to be an entity wholly controlled by the
Equity Partnership (PEP) Department. Accordingly, the net assets of the Fund are reflected
in the Department’s Balance Sheet as a non-current asset (refer to
In June 1991 and October 1993, the Department sold a total of
Note 17) and the transactions are not consolidated on the basis of
1,490 residential properties to the AMP Society (the Society) for
materiality.
$130 million (PEP1) and $69.169 million (PEP2) respectively. The
agreement between the Society and the Department provides r) Payables
for the continued occupancy by public tenants of the residential These amounts represent liabilities for goods and services
properties leased, maintained and managed by the Department provided to the Department. Payables are recognised initially at
and for which the Society pays management fees. fair value, usually based on the transaction cost or face value.
In accordance with the Department’s policy, public tenants are Subsequent measurement is at amortised cost using the effective
only required to pay an amount equivalent to a pre-determined interest method. Short-term payables with no stated interest rate
percentage of their household income. As the Society is entitled are measured at the original invoice amount where the effect of
to a guaranteed return, the Department pays the Society any discounting is immaterial.
shortfall between the guaranteed return and the rent collected from
tenants. The agreement further stipulates that when the properties s) Borrowings
are disposed of, the Society is entitled to a return of principal plus On initial recognition, borrowings including low interest loans
a share in capital profits. This arrangement is considered to be a are measured at fair value, net of transaction costs incurred
financing arrangement with an embedded derivative component, and, subsequently, at amortised cost using the effective interest
being the share in capital profits. method.
On initial recognition, the loan payable to the Society was
measured at the fair value of the consideration received and
subsequently, at amortised cost using the effective interest method
(refer to Note 23). The effective interest rate is the rate that exactly
discounts the estimated cash flows to nil at the end of the term of
the loan. Estimated cash flows comprise the guaranteed annual
return on tenanted properties and the return of principal relating to
properties disposed of during the term of the loan. The guaranteed
annual return is derived from financial models that apply minimum
and maximum CPI collars.
(i) Market rent and other tenant charges 1 286 326 1 246 062
Less: rental subsidies to tenants (non-cash) (668 056) (656 999)
Rent and other tenant charges 618 270 589 063
(ii) From December 2005, tenants of the Department commenced contributing towards water usage. This amount is included in Rental
Debtors (refer to Note 16).
2007 2006
$’000 $’000
Commonwealth Government funding
General assistance (base funding) 245 255 243 465
Aboriginal Rental Housing Program 18 451 18 235
Crisis accommodation 13 691 13 593
Community housing 22 092 21 936
Social Housing Subsidy Program 1 995 1 995
Tenant Connect Initiative 4 035 –
305 519 299 224
State Government funding
State matching 120 052 119 173
Aboriginal Communities Development Program 11 109 15 451
Other housing programs 96 265 97 326
227 426 231 950
Total appropriations to the Entity 532 945 531 174
The appropriations to the Entity were paid out as follows:
NSW Department of Housing (i) 491 172 481 884
Aboriginal Housing Office 41 773 48 890
Department of Planning – 400
532 945 531 174
a) During the year, an appropriation of $31.6 million (2006 – $34.1 million) was granted by the Entity to the Department, to fund the
provision of corporate services by NSW Businesslink Pty Ltd., which also include reimbursable expenditure and project costs incurred
in the provision of these services. The Department paid $27.4 million (2006 – $30.2 million) to NSW Businesslink Pty Ltd. (refer to Note
10). The difference between the appropriation received from the Entity and the amount paid to NSW Businesslink Pty Ltd. was applied
by the Department to the Planned Works Program.
b) This includes grants used to fund other housing programs associated with urban renewal development.
(i) These contributions were used mainly to support the affordable housing strategy.
(ii) In conjunction with the Australian Taxation Office (ATO), the Department reviewed rates used to apportion certain expenditure between
input taxed acquisitions and those that may be eligible for input tax credits, taking into account the activities undertaken by the
Department. The review covered a number of financial years and resulted in an increase in the apportionment percentage applicable to
acquisitions eligible for input tax credit. There is continuous review on apportionment.
(iii) In 1990, NSW Treasury granted the Department exemption from Treasurer’s Directions relating to the ‘treatment of stale cheques and
unclaimed money’. In particular, the Department is not required to remit unclaimed moneys to Treasury. These amounts are included in
Sundry Income.
(iv) 99-year lease income ($0.215 million) adjustment was made to 2006 audited balance for prior period error correction.
(i) As noted in Note 4(i)a), the Department paid $27.4 million (2006 – $30.2 million) to NSW Businesslink Pty Ltd for the provision of
corporate services, including reimbursable expenditure and project costs.
2007 2006
$’000 $’000
Current
Balance, 1 July – 36
AASB 139 Impairment testing adjustment – (36)
Balance under AEIFRS, 1 July – –
Debts written off – –
Allowance for impairment 21
Balance, 30 June 21 –
Non-current
Balance, 1 July – 98
AASB 139 Impairment testing adjustment – (98)
Balance under AEIFRS, 1 July – –
Debts written off – –
Balance, 30 June – –
Disclosures required under paragraph 120A of AASB 119 Employee Benefits are provided below:
(i) 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.
(ii) 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 benefits 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.
Superannuation position for AASB 119 purposes $’000 $’000 $’000 $’000
Accrued liability 53 109 14 373 262 464 329 946
Estimated reserve account balance (68 006) (21 524) (436 102) (525 632)
(14 897) (7 151) (173 638) (195 686)
Future service liability (Note 1) (13 061) (6 095) (11 539) (30 695)
Surplus in excess of recovery available from schemes 12 560 6 030 146 401 164 991
Net (asset)/liability to be recognised in balance sheet (2 337) (1 121) (27 237) (30 695)
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, paragraph 58). Under AASB 119, any pre-paid 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.
(vii) Expense recognised in income statement (AASB 119 – paragraphs 46 and 120 g))
SASS SANCS SSS TOTAL
2007 2007 2007 2007 2007
Components recognised in income statement $’000 $’000 $’000 $’000
Current service cost 2 069 768 1 932 4 769
Interest cost 2 715 768 15 403 18 886
Expected return on Fund assets (net of expenses) (4 464) (1 432) (28 715) (34 611)
Actuarial losses/(gains) recognised in year (2 422) (1 414) (45 340) (49 176)
Past service cost – – – –
Movement in adjustment for limitation on net asset 3 061 1 678 59 333 64 072
Curtailment or settlement (gain)/loss – – – –
Expense/(income) recognised 959 368 2 613 3 940
(viii) A
mounts recognised in the statement of recognised income and expense
(AASB 119 – paragraph 120A h))
SASS SANCS SSS
2007 2007 2007
2007 $’000 $’000 $’000
Actuarial (gains)/losses – – –
Adjustment for limit on net asset – – –
(ix) C
umulative amount recognised in the statement of recognised income and expense
(AASB 119 – paragraph 120A i))
SASS SANCS SSS
2007 2007 2007
2007 $’000 $’000 $’000
Cumulative amount of actuarial (gains)/losses – – –
Cumulative adjustment for limitation on net asset – – –
2007 2006
% %
Australian equities 33.6 37.4
Overseas equities 26.5 27.9
Australian fixed interest securities 6.8 9.9
Overseas fixed interest securities 6.4 6.8
Property 10.1 8.6
Cash 9.8 5.0
Other 6.8 4.4
(xi) 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.
(xii) Expected rate of return on assets (AASB 119 – 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
(xiii) Actual return on Fund assets (AASB 119 – Paragraph 120A m))
SASS SANCS SSS TOTAL
2007 2007 2007 2007
2007 $’000 $’000 $’000 $’000
Actual return on Fund assets 8 473 2 700 54 025 65 198
(xiv) V
aluation 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 June 2007 30 June 2006
Salary increase rate (excluding promotional increases) 4.0% pa to June 2008; 4.0% pa to June 2008; 3.5%
3.5% pa thereafter pa thereafter
Rate of CPI increase 2.5% pa 2.5% pa
Expected rate of return on assets backing current pension liabilities 7.6% 7.6%
Expected rate of return on assets backing other liabilities 7.6% 7.6%
Discount rate 6.4% pa 5.9% pa
Assumed mortality rates (in 2005/06) for SSS pensioners (separately for normal retirement/spouses and invalidity).
b) Contribution recommendations
Recommended contribution rates for 30 June 2007 and 30 June 2006 are:
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.
30 June 30 June
Weighted – average assumptions 2007 2006
Expected rate of return on Fund assets backing current pension liabilities 7.7% pa 7.7% pa
Expected rate of return on Fund assets backing other liabilities 7.0% pa 7.0% pa
Expected salary increase rate 4.0% pa 4.0% pa
Expected rate of CPI increase 2.5% pa 2.5% pa
(i) Residential properties classified as held for sale relate to properties held under the Public Equity Partnership Scheme. Under this
Scheme, properties are required to be sold when they meet pre-determined criteria. By the expiration of the schemes in 2011 and
2013, all of the relevant properties will be sold.
The residential properties classified under this category are expected to be sold in the following financial year through a number of
disposal options, including auctioning the properties.
(ii) In line with the Department’s strategy to rationalise its property holdings, the commercial property classified as held for sale was
disposed in 2006/07.
The Department’s property portfolio was revalued at 31 December 2006 by independent professional valuers and senior officers of the
Department, in accordance with the accounting policy detailed in Note 2 m)(ii).
Computer
Community Land held Lease- hardware,
purpose for re- hold office
Residential Commercial built develop- Vacant Work in improve- furniture & Motor
properties properties properties ment land progress ments equipment vehicle Total
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
2007
Net carrying amount
at start of year 27 069 843 39 384 42 660 116 872 68 092 134 496 3 749 4 741 11 981 27 491 818
Additions/capital
improvements 195 324 511 3 1 036 – 303 761 4 838 5 893 7 812 519 178
Transfers to
completed properties 245 320 – – – (245 320) – – – –
Reclassified as
assets held for sale
– Reclassified from
non-current assets
to assets held for
sale (Note 19) (16 728) – – – – – – – – (16 728)
– Reclassified from
assets held for
sale to non-current
assets (Note 19) 9 178 – – – – – – – – 9 178
Sales (142 631) – – (2 133) (12 399) – – – (5 621) (162 784)
Transfers to
Aboriginal Housing
Office (1 868) – – (38) – – – – – (1 906)
Transfers from
Aboriginal Housing
Office 354 – – – – – – – – 354
Transfers between
classes (114 485) – 48 949 17 974 – 47 562 – – – –
Demolitions
(Note 14(ii)) (24 073) – – – – – – – – (24 073)
Write-off (Note 14(iii)) (577) – – – – – – (5) – (582)
Revaluation
increment/
(decrement)
(Note 26) 188 277 5 563 71 618 6 526 (1 396) 112 – – – 270 700
Depreciation
expense (Note 11) (253 403) (439) (696) – – – (1 232) (1 278) (1 642) (258 690)
Net carrying
amount at end
of year 27 154 531 45 019 162 534 140 237 54 297 240 611 7 355 9 351 12 530 27 826 465
Computer
Community Land held Lease- hardware,
purpose for re- hold office
Residential Commercial built develop- Vacant Work in improve- furniture & Motor
properties properties properties ment land progress ments equipment vehicle Total
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
2006
Net carrying amount
at start of year 27 884 792 52 542 43 260 127 734 53 817 142 093 2 101 1 485 11 467 28 319 291
Additions/capital
improvements 167 265 808 – – – 171 279 2 629 4 406 8 811 355 198
Transfers to
completed
properties 216 667 – – – – (216 667) – – – –
Reclassified as
assets held for sale
(Note 19) (36 764) (20 370) – – – – – – – (57 134)
Sales (74 358) (2 725) – (7 121) (311) – – – (6 658) (91 173)
Transfers to
Aboriginal Housing
Office (1 736) – – – (3) – – – – (1 739)
Transfers from
Aboriginal Housing
Office 397 – – – – – – – – 397
Transfers between
classes (56 647) – – 13 611 (17) 43 053 – – – –
Demolitions
(Note 14(ii)) (16 456) – – – – – – – – (16 456)
Write-off
(Note 14(iii)) (3 174) – – (175) (1 453) (125) (91) – (5 018)
Revaluation
increment/
(decrement)
(Note 26) (767 494) 9 740 – (17 177) 16 059 (5 137) – – – (764 009)
Depreciation
expense (Note 11) (242 649) (611) (600) – – – (981) (1 059) (1 639) (247 539)
Net carrying
amount at end
of year 27 069 843 39 384 42 660 116 872 68 092 134 496 3 749 4 741 11 981 27 491 818
(i) The nominal values of borrowings are reconciled to the AEIFRS balance reported in the Balance Sheet as follows:
2007 2006
$’000 $’000
Nominal values of borrowings 1 396 629 1 432 687
Less: Re-measurement adjustment under AEIFRS (461 596) (465 491)
AEIFRS balance reported in Balance Sheet 935 033 967 196
Interest
Principal payable
30 June from 1 July 2007 2006
2007 2007 Total Total
$’000 $’000 $’000 $’000
Not later than one year 45 909 68 130 114 039 108 192
Later than one year but no later than five years 418 971 248 260 667 231 446 447
Later than five years 931 749 540 855 1 472 604 1 817 425
Total cash outflow 1 396 629 857 245 2 253 874 2 372 064
Interest payable was estimated on the basis of prevailing interest rates as at 30 June 2007. Furthermore, it was assumed the loans payable
to the NSW Treasury Corporation will be paid as and when they fall due.
(i) Upfront lease payments for leases exceeding 50 years are recognised on a straight-line basis over the lease term in accordance with
AASB 117 Leases and TPP06-3 Lessor Accounting for Prepaid Long Term Leases of Land. They are classified as operating leases
because titles for these assets do not pass at the end of the lease terms and the risks and rewards are not transferred. Adjustment of
99-year lease unearned income for prior years was treated as correction and reflected in the Statement of Changes in Equity (Note 26).
(i) AASB 132 and AASB 139 were applied from 1 July 2005. AEIFRS opening equity adjustments for the adoption of AASB 132 and 139
were due to :
a) Impairment testing – Under AASB 139, all financial assets except those measured at fair value through profit or loss are subject to
review for impairment. The standard required a specific impairment test, which needs to be supported by objective evidence that
the group of assets is impaired or uncollectible. This means that the Department can no longer raise a general provision for doubtful
debts. As a result, the allowance for impairment recognised under the previous AGAAP has increased.
b) Low interest loans – Under AASB 139, this type of loan must initially be recognised at fair value, and thereafter at amortised cost.
The fair value of a long-term loan that carries interest below the market is estimated as the present value of all future cash receipts,
discounted using the prevailing market rates of interest for a similar instrument with a similar credit rating. Previously these loans
were measured at nominal amount or face value.
(ii) Nature and purpose of reserve
The asset revaluation reserve is used to record increments and decrements on the revaluation of non-current assets. This is in
accordance with the Department’s policy on ‘Revaluation of Physical Non-current Assets’ as stated in Note 2 m)(ii). Asset revaluation
reserve relating to sold properties is realised and transferred to Retained Earnings during the year of sale.
a) On 23 December 2006, the Department executed the contracts for a Public Private Partnership (PPP) with Bonnyrigg Partners for the
redevelopment of the Bonnyrigg Housing Estate and for the provision of tenancy management, maintenance and other services. The
contract came into effect on 20 April 2007 with satisfaction of all conditions precedent. The contract is for a term of 30 years. Bonnyrigg
Partners are expected to commence provision of services from 20 October 2007 at which time service payments to Bonnyrigg Partners
are expected to commence. Redevelopment of the Estate is expected to be completed in 18 stages over approximately 12 years,
commencing in 2009. The total commitment for Bonnyrigg Project is estimated at $368 million.
b) Commitments in respect of Leases–Office rent and certain operating expenditure are classified as apportionable expenses for GST
purposes. In accordance with a private tax ruling issued by the Australian Taxation Office (ATO), a proportion of these expenses is
considered as not directly related to the Department’s input-taxed activities.
c) By applying the current apportionment percentage, input tax credits amounting to $1.512 million (2006 – $2.557 million) may be
claimed from the ATO when these particular commitments are paid in the future.
Input tax credits of $11.922 million (2006 – $4.363 million) and GST of $4.55 million (2006 – $9.049 million) paid on supplies, are included
in Other payments and Other receipts in the Cash Flow Statement.
– – – – – – 27 304 3 893
– – – – – 124 122 95 988
– – – – 5 768 2 839 193 923 130 698
– – – – 20 185 20 298 20 185 20 298
Government/ Public
semi- housing
government Banks tenants Other Total
$’000 $’000 $’000 $’000 $’000
2007
Cash 151 426 36 729 – 5 768 193 923
Receivables 8 259 – 6 942 4 984 20 185
Other financial assets 143 478 21 854 – 5 935 171 267
Total assets 303 163 58 583 6 942 16 687 385 375
2006
Cash 99 881 27 978 – 2 839 130 698
Receivables 10 552 – 6 232 3 514 20 298
Other financial assets 145 951 76 529 – 7 609 230 089
Total assets 256 384 104 507 6 232 13 962 381 085
c) Liquidity risk
The financial assets and liabilities of the Department are compliant with the Public Authorities (Financial Arrangements) Act 1987. The
Department relies on the expertise of the NSW Treasury Corporation for debt and investment management services and to transact the
majority of the financial assets and liabilities listed at 30 June 2007. As these products are readily tradeable in the market, the Department’s
financial assets and liabilities are considered highly liquid and do not expose the Department to liquidity risk.
d) Net fair value of financial assets and liabilities
The net fair values of Hour Glass and short-term investments are based on market values provided by the Treasury Corporation.
The net fair value of medium-term investments and loans payable are based on market values provided by the Treasury Corporation.
For other assets and other liabilities, the net fair value approximates their carrying value.
2007
$’000
Residential properties 16 603 197
Land for redevelopment 140 237
Vacant land 54 297
Commercial properties 18 705
Community purpose built properties 99 924
Assets held for sale
Residential properties 15 358
Commercial properties –
Total 16 931 718
Financial Statements
Accountants’ Statement
For the year ended 30 June 2007
Income Statement
For the year ended 30 June 2007
2007 2006
Notes $’000 $’000
Revenue
Interest income 3 7
Investment income 59 138
Distribution from PEP2 Property Sales 6 b) 530 1,392
Total revenue 592 1,537
Expenses
Rental subsidy 2 582 2 753
Trustee’s remuneration 1 1
Auditor’s remuneration 4 12 12
Accounting fees 8 8
Total expenses 2 603 2 774
Deficit for the year (2 011) (1 237)
Change in net assets attributable to beneficiaries 2 2 011 1 237
Net deficit for the year – –
Balance Sheet
As at 30 June 2007
2007 2006
Notes $’000 $’000
ASSETS
Current Assets
Cash 3 a) 13 109
Other financial assets 1 c) 333 2,306
Receivables 5 957 503
Total Current Assets 1 303 2 918
Total Assets 1 303 2 918
LIABILITIES
Current Liabilities
Accrued rental subsidy 1 262 1 403
Payables 18 16
Total Current Liabilities 1 280 1 419
Total Liabilities (excluding liabilities attributable to beneficiaries) 1 280 1 419
Net assets attributable to beneficiaries – Liability 2 23 1 499
Beneficiaries funds – Equity – –
Statement of Changes in
Recognised Income and Expenses
For the year ended 30 June 2007
2007 2006
Notes $’000 $’000
Total equity at beginning of financial year 2 1 499 2 736
Change in accounting policy as a result of AASB 132 and AASB 139 (1 499) –
Restated balance – 2 736
Net deficit for the year – (1 237)
Closing balance – 1 499
2007 2006
Notes $’000 $’000
f) Payables
Payables and accruals are recognised as amounts due to be paid
in future periods whether or not invoiced at balance date. These
amounts are unsecured and do not bear interest.
h) Comparative information
Where necessary comparatives have been reclassified and
repositioned for consistency with current year disclosures.
b) Classified as liability
Opening balance – –
Change in accounting policy as a result of AASB 132 and AASB 139 1 499 –
Change in net assets attributable to beneficiaries (1 476) –
Closing balance 23 –
c) Capital contributions
Balance at the beginning of the year 30 874 30 874
Current year capital contribution 535 –
Balance at the end of the year 31 409 30 874
Capital contribution of $535 000 was provided by NSW Land and Housing Corporation to meet the losses incurred by the Fund.
d) Accumulated losses
Balance at the beginning of the financial year (29 375) (28 138)
Deficit for the year (2 011) (1 237)
(31 386) (29 375)
Closing balance at the end of the financial year 23 1 499
b) Reconciliation of net result for the year to net cash used in operating activities
Deficit for the year (2 011) (1 237)
Changes in net assets and liabilities:
Decrease/(increase) in assets:
Receivables 81 1 100
(Decrease)/increase in liabilities:
Accrued rental subsidy (141) 22
Payables 2 2
Net cash used in operating activities (2 069) (113)
Note 5: Receivables
2007 2006
$’000 $’000
Profit share from NSW Housing No. 2 Pty Ltd 422 503
Capital contribution from NSW Land and Housing Corporation 535 –
957 503
Financial Assets
Cash – 13 – 13
Short-term investments 333 – – 333
Receivables 535 – 422 957
Total financial assets 868 13 422 1 303
Financial Assets
Cash – 109 – 109
Short-term investments 2 306 – – 2 306
Receivables – – 503 503
Total financial assets 2 306 109 503 2 918
c) Interest rate risk
Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. The Fund’s exposure
to interest rate risks and the effective interest rates of financial assets and liabilities as at 30 June are as follows.
2007 Weighted
Floating Non-Interest Average
Interest Rate Bearing Total Interest Rate
$’000 $’000 $’000 % p.a.
Financial Assets
Cash 13 – 13 4.00
Short-term investments – 333 333 6.41
Receivables – 957 957 –
Total financial assets 13 1 290 1 303 6.32
Financial Liabilities
Payables – 1 280 1 280 –
Total financial liabilities – 1 280 1 280 –
Financial Assets
Cash 109 – 109 3.75
Short-term investments – 2 306 2 306 5.69
Receivables – 503 503 –
Total financial assets 109 2 809 2 918 5.60
Financial Liabilities
Payables – 1 419 1 419 –
Total financial liabilities – 1 419 1 419 –
d) Carrying costs
The carrying cost of all financial assets and liabilities is the net fair
value unless otherwise stated.
Financial Statements
Accountants’ Statement
For the year ended 30 June 2007
We have prepared the financial statements of the Home Purchase Assistance Fund (‘Fund’) set out on
pages 3 to 17 for the financial year ended 30 June 2007 from the books and records of the Fund and other
information provided by the officers of Permanent Custodians Limited (‘Trustee’) and Trust Company Fiduciary
Services Limited (‘Guarantor’), formerly known as Permanent Trustee Company Limited and by the officers of
the NSW Land and Housing Corporation.
Under the terms of our engagement we have not audited the accounting records or the attached financial
statements of the Fund. Accordingly, we express no opinion on whether the financial statements present a
true and fair view of the financial performance and financial position of the Fund. Neither the firm nor any
member or employee of the firm undertakes any responsibility for any omissions or errors contained in the
accounting records.
Statement by Trustee
In accordance with a resolution of the Trustee of the Home Purchase Assistance Fund, we declare on behalf of
the Trust that in our opinion:
1. The accompanying financial report exhibits a true and fair view of the financial position of the Home
Purchase Assistance Fund as at 30 June 2007 and transactions for the 12 months then ended.
2. The financial report has been prepared in accordance with the terms of the Trust Deed dated 14 February
1989, and with applicable Accounting Standards, other mandatory professional reporting requirements,
and the Public Finance and Audit Act 1983 and associated requirements of the Public Finance and Audit
Regulations 2005.
Further, we are not aware of any circumstances which would render any particulars included in the financial
report to be misleading or inaccurate.
Income Statements
For the year ended 30 June 2007
2007 2006
Notes $’000 $’000
Revenue
Interest from mortgage loans 79 121
Interest from investments - related parties 3 112 3 589
Interest from investments - non-related parties 23 046 22 294
Total interest revenue 26 237 26 004
Other revenue 10 7 8
Total revenue 26 244 26 012
Expenses
Interest on borrowings - related parties - 35
Payments for expenses of related trusts 2 3
Trustee’s remuneration 220 225
Auditor’s remuneration 11 31 27
Shortfall paid for defaulting mortgages 160 47
NSW Department of Housing operational funding 262 244
Other expenses 39 11
Total expenses 714 592
Balance Sheet
For the year ended 30 June 2007
2007 2006
Notes $’000 $’000
ASSETS
Current Assets
Cash and cash equivalents 3 45 300 30 097
Receivables 4 4 960 5 311
Other financial assets 5 199 533 110 103
Total Current Assets 249 793 145 511
Non-Current Assets
Receivables 6 370 1 040
Other financial assets 7 185 921 289 099
Total Non-current Assets 186 291 290 139
TOTAL ASSETS 436 084 435 650
LIABILITIES
Current Liabilities
Payables 8 247 162
Total Current Liabilities 247 162
Total Liabilities (excluding liabilities attributable to beneficiaries) 247 162
Net assets attributable to beneficiaries – Liability 2 b) 435 837 435 488
Beneficiaries funds – Equity 2 a) – –
Statement of Changes in
Recognised Income and Expenses
For the year ended 30 June 2007
2007 2006
Notes $’000 $’000
Total equity at beginning of financial year 2 a) – 441 711
Change in accounting policy as a result of AASB 132 and AASB 139 – (441 711)
Restated balance – –
Net surplus for the year – –
Closing balance – –
2007 2006
Notes $’000 $’000
Cash flows from Operating Activities
Interest received:
Loans receivable - non-related parties 81 121
Investments - related parties 3 113 3 590
Investments - non-related parties 25 037 26 005
Other non-related parties 26 24
Mortgage loans 591 782
Other income 10 9
Interest paid on borrowings - related parties – (35)
Payments for expenses of related trusts (2) (4)
Shortfall paid for government guarantee loans (160) (47)
Trustee’s remuneration (165) (223)
Auditor’s remuneration (30) (24)
NSW Department of Housing (262) (244)
Other expenses (33) (11)
Net cash provided by/(used in) operating activities 9 28 206 29 943
CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR 3 45 300 30 097
The Reporting Entity (ii) Fair Value through profit and loss
Home Purchase Assistance Fund (the Fund) is consolidated The Fund invests in Bank Bills and the TCorp Hour Glass cash
as a part of the NSW Total State Sector Accounts. The Fund facility. These are measured at fair value with interest revenue
was established by a Trust Deed dated 14 February 1989 and accrued as earned such that fair value is reflected at no less than
operates in the state of NSW for the purpose of supporting and the amount payable on demand (consistent with AASB139.49).
administering the state’s home purchase programs. This financial The FANMAC Bond is a non-tradable security whose receivables
report for the year ended 30 June 2007 has been authorised for are specific to the requirements of the Fund. It is measured at
issue by the Trustee. cost which represents fair value as this instrument does not have
a tradable market and was not purchased with a premium or
Note 1: Summary of Significant discount.
Accounting Policies e) Trust distributions
The beneficiary of the Fund is the Minister of the Crown of the
a) Basis of preparation State for the time being charged wth the administration of the
The financial report of the Trust is a general purpose financial Housing Act 2001. The special beneficiary is Permanent Trustee
report which has been prepared in accordance with: Company Limited as Trustee for all of the FANMAC Trusts and the
> applicable Australian Accounting Standards and Australian Shared Equity Schemes. The Trustee of the Fund is Permanent
Accounting Interpretations Custodians Limited.
> the requirements of the Public Finance and Audit Act 1983 Under the Trust Deed the beneficiary is entitled to all the income
> the provisions of the Trust Deed dated 14 February 1989 of the Fund on 30 June less amounts to which each special
beneficiary is entitled. Income distributions may be requested
> the provisions of the Public Finance and Audit Regulations 2005
by the beneficiary at its discretion. Any income retained by the
> any Financial Reporting Directions issued by the Treasurer Fund is to be treated as an interest free loan to the Fund from the
under section 9(2) n) of the Public Finance and Audit Act 1983 beneficiary. Trust distributions can be made from the surplus for
> where there are inconsistencies between the accounting the year.
standards and legislative requirements, the legislative provisions The Trustee, in accordance with paragraph 3.4 of the Trust Deed
have prevailed. shall distribute the remaining capital of the Trust Fund to the
The financial report has been prepared on the basis of historical beneficiary on the vesting date. The vesting date (paragraph 1.1)
cost, except for the revaluation of certain non-current assets and is defined as the first to occur of the following dates:
financial instruments. All amounts are rounded to the nearest a) the date of expiration of the period of 80 years from the date
thousand dollars and expressed in Australian currency and unless of commencement of the Trust, which is 14 February 1989
otherwise noted accounting policies are consistent with those of
b) the date upon which the Trust is terminated pursuant to the
the previous year.
terms of this deed, Statute or general law.
b) Income recognition – interest income f) Finance costs
> Interest revenue is recognised using the effective interest method
Distributions paid and payable from the Trust are recognised in
as set out in AASB 139 Financial Instruments: Recognition and
the income statement as finance costs and as a liability where not
Measurement.
paid. Distributions paid are included in cash flows from financing
c) Accounting for goods and services tax (GST) activities in the statement of cash flows.
Revenues, expenses and assets are recognised net of GST except g) Income tax
where GST is incurred by the Fund and it is not recoverable from
The surplus arising out of the Fund is fully distributed to the
the Australian Taxation Office (ATO), it is recognised as part of the
beneficiaries and accordingly no income tax is payable by the
expense to which it applies. Receivables and payables are stated
Fund.
with any applicable GST included in their value. The Fund can only
recover 75 percent of the GST. h) Payables
d) Financial instruments – Year ended Payables and accruals are recognised when the Fund becomes
obliged to make future payments resulting from the purchase of
30 June 2007 services (refer to note 16 g)).
(i) Held to maturity investments i) Receivables
> The Fund invests in bank issued bonds that are categorised Mortgage and other receivables are recognised as amounts
as Held to Maturity under AASB139 Financial Instruments: receivable at balance date using amortised cost method. All
Recognition and Measurement. Financial assets are initially receivables are reviewed on an ongoing basis and any debts
recognised at fair value plus transaction costs. Subsequent that are known to be uncollectable are written off. In addition, an
measurement is at amortised cost using the effective interest allowance for impairment is raised when there is some objective
method. evidence that the Fund will not be able to collect all amounts due.
b) Classified as liability
Opening balance 435 488 –
Change in accounting policy as a result of AASB 132 and AASB 139 – 441 711
Change in net assets attributable to beneficiaries 349 (6 223)
Closing balance at the end of the financial year 435 837 435 488
Note 8: Payables
2007 2006
$’000 $’000
Amount payable to special beneficiaries 152 129
Sundry payables 95 33
247 162
2007 2006
$’000 $’000
On the advice of the NSW Treasury the nominal loan liability as at 30 June was:
Current liability 9 445 9 056
Non-current liability 258 337 267 792
Balance at the end of the financial year 267 792 276 848
Weighted
Fixed Fixed Fixed average
Variable interest interest interest Non- effective
interest rate rate rate interest interest
rate <1 year 1-5 yrs > 5 yrs bearing Total rate
2007 $’m $’m $’m $’m $’m $’m % p.a.
Financial assets
Cash and cash equivalents 45.3 – – – – 45.3 6.36
Short-term investments – 199.5 – – – 199.5 5.96
Receivables:
Mortgages 1.0 – – – – 1.0 7.42
Other – – – – 4.4 4.4 –
Long-term securities 42.6 – 143.3 – – 185.9 5.95
88.9 199.5 143.3 – 4.4 436.1 6.38
Financial liabilities
Payables 0.1 0.1
0.1 0.1
Weighted
Fixed Fixed Fixed average
Variable interest interest interest Non- effective
interest rate rate rate interest interest
rate <1 year 1-5 yrs > 5 yrs bearing Total rate
2006 $’m $’m $’m $’m $’m $’m % p.a.
Financial assets
Cash and cash equivalents 30.1 – – – – 30.1 5.86
Short-term investments – 110.1 – – – 110.1 5.88
Receivables:
Mortgages 1.6 – – – – 1.6 6.67
Other – – – – 4.8 4.8 –
Long-term securities 50.8 – 238.3 – – 289.1 6.42
82.5 110.1 238.3 – 4.8 435.7 6.17
Financial liabilities
Payables 0.2 0.2
0.2 0.2
j) Carrying costs
The carrying costs of all financial assets and liabilities are
recorded at net recoverable amount as at reporting date
unless otherwise stated.
Financial Statements
Statement by Minister
For the year ended 30 June 2007
Operating Statement
For the year ended 30 June 2007
Expenses
Grants and subsidies – – –
Total Expenses 2 b) – – –
Revenue
Total Revenue 2 b) – – –
NET COST OF SERVICES – – –
Government contributions
Recurrent Appropriation (Net of Transfer Payments) 2 b) – – –
Total Government contributions – – –
SURPLUS/(DEFICIT) FOR THE YEAR – – –
Balance Sheet
As at 30 June 2007
ASSETS 2 d) – – –
TOTAL ASSETS – – –
LIABILITIES 2 d) – – –
TOTAL LIABILITIES – – –
NET ASSETS – – –
EQUITY – – –
Statement of Recognised
Income & Expenses
For the year ended 30 June 2007
Program Statement –
Expenses and Revenues
For the year ended 30 June 2007
Administered Expenses
Transfer Payments 532 945 531 174 – – 532 945 531 174
Total Administered Expenses 532 945 531 174 – – 532 945 531 174
Administered Revenues
Transfer receipts 532 945 531 174 – – 532 945 531 174
Total Administered Revenues 532 945 531 174 – – 532 945 531 174
Summary of Compliance
with Financial Directives
2007 2006
Recurrent Expenditure/ Capital Expenditure/ Recurrent Expenditure/ Capital Expenditure/
Appropriation Net Claim on appropriation Net Claim on Appropriation Net Claim on appropriation Net Claim on
Consolidated Consolidated Consolidated Consolidated
Fund Fund Fund Fund
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Original Budget
Appropriation/
Expenditure
Appropriation Act 540 408 528 910 – – 518 294 514 174 – –
Additional
Appropriations – – – – – – – –
S26 PF & AA
– Commonwealth
specific purpose
payments – – – – – – – –
540 408 528 910 – – 518 294 514 174 – –
Other Appropriations/
Expenditure
(S27 of the
Appropriation Act) 4 035 4 035
(S28 of the – – – – – – – –
Appropriation Act) – – 17 000 17 000 – –
4 035 4 035 – – 17 000 17 000 – –
Total Appropriations/
Expenditure/
Net Claim on
Consolidated Fund
(being transfer
payments) 544 443 532 945 – – 535 294 531 174 – –
Amounts drawn
down against
Appropriation (being
transfer receipts) 532 945 – 531 174 –
Liability to
Consolidated Fund – – – –
The Summary of Compliance is based on the assumption that Consolidated Fund monies are spent first
(except where otherwise identified or prescribed).
The accompanying Notes form an integral part of these accounts.
The recurrent appropriations drawn down by the Entity was provided by:
Commonwealth Government
Commonwealth State Housing Agreement
General Assistance (base funding) 245 255 243 465
Community housing 22 092 21 936
Aboriginal rental housing program 18 451 18 235
Crisis accommodation 13 691 13 593
Tenant Connect Initiative 4 035 0
303 524 297 229
Social Housing Subsidy Program 1 995 1 995
305 519 299,224
State Government
State matching 120 052 119 173
Other state funding 107 374 112 777
227 426 231 950
Total recurrent draw-down against appropriation 532 945 531 174
Note 6: Commitments
Nil. All amounts received from Government during the year were fully
transferred to eligible recipients for 2007 and 2006 (Notes 3 and 4).
Figures in bold denote the principal entry for the topic (where applicable).
A – leasing program 30 G
Abbreviations 103 – legislation 34 Gorokan 27
Aboriginal access strategy 31, 33 – My Place 83 Gordon Estate 23, 54-55
Aboriginal Advisory Boards 20 – Office of Community Housing 101 Governance 14-15, 64
Aboriginal and Torres Strait 18, 20, 33, 59, – planned maintenance program 36-37 Grants 85-87
Islander people 62, 63, 76, 77 – resourcing grants 35 Guarantee of Service 67
Aboriginal Housing Office 20, 21 – scholarship program 35
Aboriginal and Torres Strait Islander – stock transfer program 30 H
Mentoring Program 6, 62 Handypersons Program 57
Community Housing Advisory Committee 70
Aboriginal Reference Group 62 Headlease 22, 30
Community regeneration 53-55, 86
Administrative cost 13 Highlights 7, 16, 28, 38, 48,60
Complaints 89
Affordable housing 29-30, 44-45 HIV/AIDS (people living with) 31-32, 42
Connect IT 56
– community housing initiatives 44 Home ownership 45
Consultants 88
After-hours Temporary – Home Purchase Advisory Service 45, 101
Accommodation Line 39 Consumer response 88-90
Contact details 8, 98-102 Homelessness 39, 80
Airds Enterprise Centre 56
Corporate structure 14-15 – After-hours Temporary
Allocating clients 22 Accommodation Line 39
Annual report production costs 97 Corruption Prevention and
Ethics Committee 64, 70 – Crisis Accommodation Program 32
Antisocial behaviour 52 – Hunter Signpost Homelessness
Corruption prevention training 65
Appeals 89-90 Assessment and Referral Service 39
Cranebrook Technology Centre 56
Appendices (table of contents) 66 – Inner City Homelessness
Credit card certification 92 Action Plan - Phase Two 51-52
Asset and Liability
Management Committee 69 Crisis Accommodation Program 31-32, – Inner-city Homelessness Outreach
83, 85 and Support Service 52
Asset management 24-26
Cross-agency initiatives 83 – Partnership Against Homelessness 51, 83
Audit 64-65
Customer Council (Public Housing) 69 –W
arwick Farm Temporary
Australian Housing and
Urban Research Institute 46 Accommodation Project 39
D Housing and Accommodation
Awards 27, 37, 40-41, 63, 65
Design Out Maintenance 25 Support Initiative 6, 32, 49, 80
B Director-General’s overview 5 Housing Appeals Committee 62
Bonnyrigg Living Communities Project 53 Disability (people with a) 18, 19, 79 Housing Communities
Disability Modifications Program 19, 79 Assistance Program 58, 86
Broken Hill, social housing project 33
Disability Action Plan 19 Housing Contact Centre 43
Building Stronger
Communities 23, 54-55, 57 Dubbo 23, 54-55 Housing and Human
Services Accord 49-50, 80, 83
Business assurance 64
E Housing register 23
Business hours 98-102
E-learning 61 Housing women 83-84
C Energy Matters 59 Human resources 75-76
Capability framework 61 Energy use 84
I
Capital supply 11, 21-22, 30, 32 Ethnic Affairs Priorities Statement 81-82
Implementation and Review Group 72
Centre for Affordable Housing 44-45 Equal employment opportunity 76-77
Independent Commission
Certificate IV in Social Housing 61 Executive 14-15, 73-75
Against Corruption 64
Client debt 12 External committees 71
Industrial relations 75
Client feedback 88-89 Infrastructure upgrade 65
F
Clients 10 Inner City Homelessness
Female officers in SES positions 73
Code of Conduct and Ethics 64, 68 Action Plan - Phase Two 51-52
Fire Safety Program 24-25, 36
Committees 69-72 Inner-city Homelessness
Financial statements 104 Outreach and Support Service 52
Commonwealth State
Housing Agreement 59 – NSW Department of Housing 104 Inner West Strategy 23
Community greening 55 – Rental Housing Assistance Fund 159 Insurance 65, 91
Community contracts 57 – Home Purchase Assistance Fund 175 Investment performance 91
Community housing 28-37 – Payment to Other
Government Bodies 191 J
– accreditation 34
Financial summary 11 Joint Guarantee of Service
– appeals 90
Fixed-term leases 17 for People with Mental Illness 50, 80
– assistance program 30, 83, 85
Freedom of information 92-95
– fire safety program 36
Funds 9, 11, 59
– insurance scheme 36
Housing NSW Annual Report 2006/07 203
Index