Queensland Government
Department of Housing and Public Works

During the period 1 July 2008 to 26 March 2009, the department's statutory financial management obligations were met including preparation of a comprehensive set of financial statements which reflect the financial performance of the department. A full set of these financial statements is provided at the end of this report.

Supporting the department's goals and initiatives by broadening existing, and identifying new funding opportunities; further maximising financial returns and ensuring value for Government investment; and continuing to minimise operating costs

In November 2008, the Council of Australian Governments agreed to the establishment of the National Affordable Housing Agreement (NAHA) which came into effect on 1 January 2009. The NAHA provides a framework for governments to work together to improve housing affordability, reduce homelessness, and reduce Indigenous housing disadvantage.

Funding through the NAHA replaces funding previously provided through the Commonwealth State Housing Agreement and the Supported Accommodation Assistance Program Agreement. Under the NAHA, $6.2 billion over five years has been allocated nationally from 2008-09 with Queensland receiving a total of $1.21 billion in Federal funding over five years, including $1.04 billion to the former Department of Housing.

The department commenced implementing three national partnership agreements which, in unison, support the National Affordable Housing Agreement:

  • under the Social Housing National Partnership Agreement, where Queensland will expend a total of $80.1 million in Federal funding over two years
  • through the Homelessness National Partnership Agreement, where Queensland will spend a total of $135.1 million in Federal funding over five years, including $35.7 million over five years for A Place to Call Home
  • under the Remote Indigenous Housing National Partnership Agreement, where Queensland will expend a total of $1.16 billion in Federal funding over 10 years.

In addition, on 3 February 2009, the Federal Government announced the $42 billion Nation Building and Jobs Plan under the Economic Stimulus Package in response to the global economic downturn. This plan includes $1.28 billion in Federal funding for Queensland (the Housing Stimulus Package) for the construction of approximately 4,000 social housing dwellings, and the repair and maintenance of a substantial number of existing assets delivered through a National Partnership Agreement.

Ensuring value for Government investment was enhanced through ongoing application of sound asset management strategies including utilisation of property condition data to inform maintenance and upgrade programs to extend the useful life of the social housing portfolio.

The Governance Board of Management oversaw the management of departmental resources through an effective financial management framework which included the rigorous annual resource allocation process and monthly examination of the department's financial performance.

Overview

A review of the department's outputs was undertaken in 2007-08 to better align the output structure and the strategic direction of the department, with the revised output structure effective from 1 July 2008. The department delivered its five outputs within the overall limits of available revenue sources including record housing assistance expenditure through the provision of capital works, grants and maintenance. At the same time, the department continued to maintain its strong net asset position, as detailed below.

Balance sheet
2006-07
2007-08
2008-09 *
Total assets ('000)
$11,824,813
$13,951,157
$14,125,130
Total liabilities ('000)
$496,368
$495,999
$517,485
Net assets ('000)
$11,328,445
$13,455,158
$13,607,646
Capital expenditure ('000)
$373,415
$368,505
$281,880
Percentage of liabilities to assets
4%
4%
4%
Growth in net assets ('000)
$990,083
$2,126,713
$152,488
* As at 26 March 2009.

Income

The department's main income sources comprised:

  • rental revenue from the department's property portfolio
  • funding from the Queensland Government
  • funding from the Federal Government.

Expenses

The major costs to deliver each output included supplies and services (such as maintenance on housing stock and rates paid to local governments), providing grants for housing assistance and employee expenses.

Income statement
1 July 2006 to
30 June 2007
1 July 2007 to
30 June 2008
1 July 2008 to
26 March 2009
Income ('000)
$670,140
$676,282
$562,565
Expenses ('000)
$588,401
$626,309
$541,491

Sources and applications of funds

The extent of the department's sources of funds and application of funds are detailed on the following charts:

How each dollar was raised and spent