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Performance management
framework
We measure our performance against key performance
indicators and deliverables that are set out in our outcome based management framework.
Outcome based management
framework
The Authority enhances the quality of life and wellbeing of
Western Australians by satisfying the fundamental human need for shelter. In the wider context, affordable, available and appropriate housing contributes to positive social outcomes in health, education and employment.
Specifi cally, the Authority contributes by providing housing through rental, home fi nance and land development activities for eligible Western Australians who may not otherwise be able to afford housing. The Authority also contributes through Government Regional
Service
Government Goal Agency Level OutcomeHousing Authority MeasuresEfficiency
Effectiveness Measures
Results-Based Service Delivery
Greater focus on achieving results in key
service delivery areas for the benefit of all Western Australians
The extent to which the Housing Authority is responsive to the housing
needs of eligible Western Australians
Home Loans
Land and Housing Supply
Government Regional Officers’ Housing Waiting times for
accommodation – applicants housed
The extent to which the Government Regional
Officers’ Housing is responsive to the provision of housing to meet the needs of eligible
Western Australian Government employees
Housing eligible Western Australians
Operating cost per rental property
Operating cost per current loan account
Operating cost per lot developed
Operating cost per property sold
Operating cost per property Rental Housing
O sp rey k
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Changes to outcome based
management framework
The Under Treasurer approved a change to the Authority’s outcome based management framework in 2014-15, amending Service 3: Land, to Service 3: Land and Housing Supply and creating a new Key Effi ciency Indicator.
This change ensures that housing for sale to the public is appropriately refl ected within the Service structure. Service 3: Land and Housing Supply contributes to the Authority’s outcome by developing land for housing and providing housing for sale to the Western Australian housing market.
Resource Agreement summary
The following summary of performance information (fi nancial and non-fi nancial performance) is the subject of a Resource
Agreement signed by the Minister, the Housing Authority and Treasurer under Part 3, Division 5, of the Financial Management Act 2006.
Financial performance
Table 1: Summary of fi nancial performance for 2014-15
Indicator Target (1) $’000 Actual (2) $’000 Variation $’000
Explanation of signifi cant variance Total Cost of Services $1,728,063 $1,417,376 ($310,687) The variance comprises:
>Expenditure was deferred due to delays in negotiations with the Commonwealth for the 2014-2016 NPARIH capital works
>Reduction in cost of goods sold for the affordable housing program due to market conditions and deferment of Public Housing Stock Redevelopment Strategy sales to 2015-16
>Keystart’s interest expense was lower due to higher discharges than expected and lower approvals for the SharedStart shared equity program – this is offset by interest revenue
Table 1: Summary of fi nancial performance for 2014-15 (continued) Indicator Target (1) $’000 Actual (2) $’000 Variation $’000
Explanation of signifi cant variance
Net Cost of Services $102,308 $119,184 $16,876 The increase in the Net Cost of Services is mostly a result of: >Deferment of the NPARIH funding
>Economic downturn in the Pilbara has seen low sale rates due to decreased purchaser confi dence
>The majority of Public Housing Stock Redevelopment Strategy sales to occur in 2015-16
Offsetting this is the Total Cost of Services explanation identifi ed (above).
Total equity $13,536,010 $15,037,680 $1,501,670 Equity has gone up due to lower Net Cost of Services and an increase in the value of property assets.
Net increase (decrease) in cash held
$130,202 $91,266 ($38,936) The Public Housing Stock Redevelopment Strategy has contributed to the cash movement being lower than forecast. The majority of expenditure for this program occurred in 2014-15 with most sales activity to occur in 2015-16.
Notes:
(1) The targets were derived from the 2014-15 Budget Papers (Volume 2, Part 10).
Key Performance Indicators
Table 2: Summary of non-fi nancial performance (Key Performance Indicators) for 2014-15
Indicator Target (1) Actual (2) Explanation of signifi cant variance
Outcome and effectiveness indicators
Outcome – Housing eligible Western Australians Effectiveness indicator 1:
The extent to which the Housing Authority is responsive to the housing needs of eligible Western Australians
0.84 0.85
Effectiveness indicator 2:
Waiting times for accommodation – applicants housed (average) (3)
139 weeks 158 weeks Fewer public housing properties becoming available for rent during the year resulted in an increase in the wait time. The waiting times for applicants housed were also higher due to the Authority allocating housing to a larger percentage of applicants who had waited longer compared to the prior year. Effectiveness indicator 3:
The extent to which the Government Regional Offi cers’ Housing is responsive to the provision of housing to meet the needs of eligible Western Australian government employees
95% 97%
Services and effi ciency indicators Service 1 – Rental Housing Effi ciency indicator:
Table 2: Summary of non-fi nancial performance (Key Performance Indicators) for 2014-15 (continued)
Indicator Target (1) Actual (2) Explanation of signifi cant variance
Service 2 – Home loans Effi ciency indicator:
Operating cost per current loan account $1,576 $1,996 A reduction in Keystart’s approved borrowing limit meant the targeted levels of new lending were not achieved, resulting in a lower number of current loans compared to the Target.
Service 3 – Land and Housing Supply (4)
Effi ciency indicator:
Operating cost per lot developed $20,188 $17,268 This variance was primarily due to higher estimated movement in land inventory costs considered in the Target compared to the actual movements during the year, and an increase in production of lots through the Joint Venture program. The number of lots developed in 2014-15 was higher than anticipated due to higher than anticipated market demand. Service 4 – Government Regional Offi cers’ Housing
Effi ciency indicator:
Operating cost per property (5) $34,770 $30,771 This variance was primarily due to declining rents in the Pilbara market.
Savings were also made on maintenance costs and redirected into construction to provide additional properties in regional areas where it is diffi cult to lease stock from the market.
Notes:
(1) The targets were derived from the 2014-15 Budget Papers (Volume 2, Part 10).
(2) As specifi ed in the audited Key Performance Indicators 2014-15 contained in the Disclosures and Legal Compliance section of this report. (3) Calculated as the average waiting time in weeks for applicants housed.
(4) The 2014-15 Key Performance Indicators in the Disclosures and Legal Compliance section of this report includes a new Key Effi ciency Indicator for Service 3: Land and Housing Supply (Operating cost per property sold). This indicator was approved by the Under Treasurer following the 2014-15 State Budget and was therefore not included in the 2014-15 Resource Agreement. As a result, the indicator is not reported in this section.
