Chair of the Finance and Audit Committee
With strong revenue growth in other income sources it has been a year of consolidation for Haven; Home, Safe.
Total Comprehensive Income for the year was $5,904,046. This is lower than last year’s result due to the net equity contribution from the North East Housing Services merger within the 2014-2015 financial year.
Despite capital grants remaining very low, a reflection of the current government funding environment, we experienced total income growth to more than $32 million (up from $26m last year).
There is growing demand for affordable housing across the state. But no new significant government announcements that would promote an increase in supply is disappointing. Regular capital funding and transfers of housing stock are required for HHS to maintain a development pipeline of affordable housing.
HHS remains open to working with the government for any asset transfer opportunities in the absence of regular capital funding. Upon transfer of public housing stock HHS would then manage, redevelop, and retain the properties for the long term.
In accordance with the Investment Property Accounting Standard we revalued our affordable housing property portfolio and the result has been an increase of $3.4m. Two adjustments to the carrying value of Investment Properties have been identified and adjustments are described in Note 1 of the accounts. Net assets as at 30 June 2016 exceed $229m.
The Housing Registrar has confirmed that HHS continues to meet all Performance Standards as required by the Housing Act. Our financial statements have been audited and we have complied with all requirements and covenants contained with our loan facility agreement.
I would like to thank Chief Financial Officer Paul Somerville, the Finance Team and NRAS Compliance Teams for their excellent work during the year. The development of our Financial Headroom Strategy and the further development of the NRAS compliance business are significant achievements. The Board has been kept well appraised about the financial performance of HHS as well as other matters of strategic financial importance.