Performance management framework

Transcription

1 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. Specifically, the Authority contributes by providing housing through rental, home finance and land development activities for eligible Western Australians who may not otherwise be able to afford housing. Ellenbook The Authority also contributes through Government Regional Officers Housing, which provides government employees with suitable housing in regional areas. This supports the Government s commitment to delivering public services such as education, health and policing throughout the State. 24 Housing Authority

2 Government Goal Housing Authority Agency Level Outcome Service Efficiency Measures Results-Based Service Delivery Housing eligible Western Australians Rental Housing rental property Greater focus on achieving results in key service delivery areas for the benefit of all Western Australians Effectiveness Measures 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 current loan account lot developed property sold Operating cost per property 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 Figure 3: The Authority s outcomes, services and key performance indicators and relationship to government goals. Annual Report

3 Changes to outcome based management framework The Under Treasurer approved a change to the Authority s outcome based management framework in , amending Service 3: Land, to Service 3: Land and Housing Supply and creating a new Key Efficiency Indicator. This change ensures that housing for sale to the public is appropriately reflected 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. The Key Efficiency Indicator for the housing supply aspect of Service 3: Land and Housing Supply reported for the first time in , ( property sold). This indicator measures the Authority s operating cost efficiency in supplying housing for purchase by home buyers. Osprey key worker village 26 Housing Authority

4 Resource Agreement summary The following summary of performance information (financial and non-financial 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 Financial performance Table 1: Summary of financial performance for Indicator Target (1) Actual (2) Variation Explanation of significant variance $ 000 $ 000 $ 000 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 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 > 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 > Interest rates to borrowers were lower reflecting the declining interest rate environment. Annual Report

5 Table 1: Summary of financial performance for (continued) Indicator Target (1) Actual (2) Variation Explanation of significant variance $ 000 $ 000 $ 000 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 confidence > The majority of Public Housing Stock Redevelopment Strategy sales to occur in Offsetting this is the Total Cost of Services explanation identified (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 with most sales activity to occur in Notes: (1) The targets were derived from the Budget Papers (Volume 2, Part 10). (2) As specified in the Financial Statements (Housing Authority) contained in the Disclosures and Legal Compliance section of this report. 28 Housing Authority

6 Key Performance Indicators available for rent during the Table 2: Summary of non-financial performance (Key Performance Indicators) for Indicator Target (1) Actual (2) Explanation of significant 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 Effectiveness indicator 2: Waiting times for accommodation 139 weeks 158 weeks Fewer public housing properties becoming applicants housed (average) (3) 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 Officers Housing is responsive to the provision of housing to meet the needs of eligible Western Australian government employees 95% 97% Services and efficiency indicators Service 1 Rental Housing rental property $16,256 $14,750 A slowing of market conditions in South Hedland resulted in a reduction in expenditure for the refurbishment of former public housing properties for sale. Annual Report

7 Table 2: Summary of non-financial performance (Key Performance Indicators) for (continued) Indicator Target (1) Actual (2) Explanation of significant variance Service 2 Home loans 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) 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 was higher than anticipated due to higher than anticipated market demand. Service 4 Government Regional Officers Housing 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 difficult to lease stock from the market. Notes: (1) The targets were derived from the Budget Papers (Volume 2, Part 10). (2) As specified in the audited Key Performance Indicators 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 Key Performance Indicators in the Disclosures and Legal Compliance section of this report includes a new Key Efficiency Indicator for Service 3: Land and Housing Supply ( property sold). This indicator was approved by the Under Treasurer following the State Budget and was therefore not included in the Resource Agreement. As a result, the indicator is not reported in this section. (5) The lease function is operated on a cost neutral basis which is fully recouped from the Authority s client agencies. 30 Housing Authority