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Annual Report Hearing Brief 1 ANNUAL REPORT HEARING BRIEF Housing & Suburban Development ISSUE: Total Operating Costs 2017-18 Talking points: • The total operating costs amounted to $192 million in 2017-18, some $4 million higher than 2016-17 mainly due to: o Higher depreciation expenses ($5.5 million) impacted by the Public Housing Renewal Program. o Higher Supplies and Services ($3.6 million) as a result of indexation on goods and services including higher property rates, water costs and repair and maintenance. o Higher Grants and Purchased Services ($1.0 million) due to impact of the Equal Remuneration Order, indexation, and additional funding to strengthen homelessness services. o Higher employee costs, including superannuation ($0.9 million) mainly through expected wage increases under the Enterprise Agreement currently under negotiation. • This is partially offset by lower Other Expenses ($6.7 million) mainly due to lower demolition and transfer expenses and lower Interest Expense ($0.2 million) in accordance with the repayment schedule for the Commonwealth loans. Key Information 2017 2018 $'000 $'000 Employees 24,559 25,313 Superannuation Expenses 3,383 3,491 Admin Expenses 12,949 11,980 Repairs and Maintenance 40,316 41,383 Rates Expense 31,494 34,617 Other Operational Expenses 2,461 2,431 Insurance Premium 2,344 2,780 Total Depreciation and Amortisation 32,535 38,009 Borrowing Costs 3,045 2,831 Grants and Purchased Services 20,926 21,971 Other Expenses 13,827 7,128 187,839 191,934 Cleared as complete and accurate: 22/10/2018 Cleared by: Executive Director Ext: Contact Officer Name: Catherine Loft Ext:74592 Lead Directorate: Community Services TRIM Ref: 2 2013-14 2014-15 2015-16 2016-17 2017-18 Improvement in employment outcomes 61% 64% 88% 128% 55% Strategic Indicator 3 Improvement in employment in outcomes as a result of support Original Target Actual Result Variance 2017-18 2017-18 % Improvement in employment outcomes 62% 55% -11% Original Target Actual Result Variance Improvement in employment outcomes as a result of 2016-17 2016-17 % support Improvement in employment outcomes 89% 128% 44% 140% Original Target Actual Result Variance 120% 2015-16 2015-16 % 100% Improvement in employment outcomes 62% 88% 42% 80% 60% Original Target Actual Result Variance 40% 2014-15 2014-15 % 20% Improvement in employment outcomes 62% 64% 3% 0% 2013-14 2014-15 2015-16 2016-17 2017-18 Original Target Actual Result Variance 2013-14 2013-14 % Improvement in employment outcomes Improvement in employment outcomes 62% 61% -2% 3 ANNUAL REPORT HEARING BRIEF Housing & Suburban Development ISSUE: Strategic Indicators Talking points: • The strategic indicator results for Housing ACT show strong achievements for the community by assisting those most in need to affordable and secure housing, facilitating positive employment outcomes for people who have experienced homelessness, and building a sense of community belonging among Canberra’s most disadvantaged households. • Strategic Indicator 1 shows that public housing is highly targeted: all of those housed within three months were in greatest need. Households in greatest need are those that are homeless, in inappropriate housing such as living in very overcrowded conditions, or in housing that is adversely affecting their health or whose safety is at risk including people experiencing domestic violence. • Of the households that were in greatest need and allocated within three months, one in five were households experiencing domestic violence. • Data for Strategic Indicator 2 is gathered from a national survey undertaken in 2018, taking a random sample of housing tenants. Tenants are asked whether or not they experience various benefits through living in public housing. Around four out of every five tenants report that public housing assists them to participate in the community. • Against Strategic Indicator 3, Canberra’s homelessness services show a high level of success in achieving positive employment outcomes for people who are homelessness or at risk of homelessness. Of those clients who needed assistance with employment or training (165), the number who were employed at the start of assistance compared to the number who were employed at the end of assistance, shows a 55% increase (against a target of a 62% increase). • The below target result for Strategic Indicator 3 reflects fluctuation over time in the relatively small number of clients needing assistance in this domain and moving from unemployment to employment. There were more clients employed after support in 2016-17 than in 2015-16 (45 compared to 41), but because the indicator measures change in clients Cleared as complete and accurate: 26/10/2018 Cleared by: Executive Director Ext: Contact Officer Name: Deb Foulcher Ext: 53884 Lead Directorate: Community Services TRIM Ref: 4 ANNUAL REPORT HEARING BRIEF employed before and after support, the indicator result is lower for 2016-17. • Housing ACT has redeveloped this indicator to improve its stability, clarity and relevance and in future years will report on the achievement of independent housing for clients of homelessness services. This will be measured as the proportion of all specialist homelessness services clients who achieve independent housing at the end of support. Key Information • The February 2018 Auditor-General’s Report on strategic and accountability indicators made recommendations regarding the ACT Government’s Performance and Accountability Framework (the Framework). • A specific recommendation for Housing ACT was that we address problems identified with Strategic Indicator 3 (employment outcomes for homeless people, see Attachment B). In particular, the indicator was assessed as not meeting the criteria of: o Representative – because the 2016-17 Budget in Brief did not specify employment outcomes of homeless people as a Government priority, o Clarity - because it was unclear if the indicator was measuring changes in employment outcomes or access to support services. o Sustainable - because it was unclear how this measure could be consistently measured overtime. • Housing ACT consequently proposed a new indicator Strategic Indicator 3: People who are homeless or at risk of homelessness are assisted to achieve independent housing. This indicator will be measured as the proportion of all specialist homelessness services clients (with a closed support period in the financial year) who achieve independent housing at the end of support. • The new indicator addresses the representativeness criteria because it is directly related to the purpose of homelessness services to reduce homelessness. It addresses the clarity of the indicator by providing more detailed information about the method of calculation in the indicator description. It addresses the sustainability criteria by drawing data from all clients who have exited ACT homelessness services in the year, thus producing more stable results over time due to the larger number of cases. Cleared as complete and accurate: 26/10/2018 Cleared by: Executive Director Ext: Contact Officer Name: Deb Foulcher Ext: 53884 Lead Directorate: Community Services TRIM Ref: 5 ANNUAL REPORT HEARING BRIEF Strategic Indicator One Percentage of allocations housed within 90 days that were in the greatest need Original Target Actual Result Variance 2017-18 2017-18 % Percentage of Tenants 99% 100% 1% Strategic Indicator Two Percentage of tenants indicating that public housing assists them participate in the community Original Target Actual Result Variance 2017-18 2017-18 % Percentage of Tenants 79% 79% 0% Strategic Indicator Three Improvement in employment outcomes as a result of support Original Target Actual Result Variance 2017-18 2017-18 % Improvement in employment outcomes 62% 55% -11% Cleared as complete and accurate: 26/10/2018 Cleared by: Executive Director Ext: Contact Officer Name: Deb Foulcher Ext: 53884 Lead Directorate: Community Services TRIM Ref: 6 ANNUAL REPORT HEARING BRIEF Housing & Suburban Development ISSUE: Accountability Indicators for the year ending 30 June 2018 (p.331) Talking points: • Total cost of $191,934 million was 6% below target. One of the main reasons for this was that the anticipated depreciation expenses for the disposal of Northbourne and Stuart Flats (under the Public Housing Renewal Program) occurred in 2018-19 rather than 2017-18. • Indicator (a) shows that Housing ACT continues to assist those in greatest need with 99% of new allocation of housing to applicants who were in the high need or priority category and 94% of public housing tenants are receiving a rental rebate. • Indicators (b) and (i) show the 30 June 2018 results for the total number of social housing properties (11,903) and occupancy rate for public housing dwellings (96%). Both are influenced by the progress of the Public Housing Renewal Program. At 30 June 2018, both Northbourne Flats and Stuart Flats were largely empty as residents were transferred out to their new homes. These large multiunit complexes were transferred to the Suburban Land Agency in the first quarter of 2018-19. • Indicator (f), the public housing tenant satisfaction measure for 2017-18 was lower than anticipated (73% against a target of 80%). The target for public housing tenant satisfaction had been set high relative to trend with expectation that the improved housing situation of tenants relocated through the Public Housing Renewal Program, and the improvement of services offered through the digitisation of services, would result in higher satisfaction. • Housing ACT is in the early stages
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