Financial Report
Statement of Financial Position The Housing Choices Group has a substantial asset base of $609 million (2015: $551 million). Freehold properties and cash deposits represent the majority of Housing Choices’ assets. Independent valuations of land and buildings are undertaken at all sites at least once every three years. These independent valuations value each site on a standalone basis and attribute appropriate valuations to the various asset components such as land, buildings, plant and equipment. As at 30 June 2016, the Directors adopted the revaluation method of accounting for the valuation of property, plant and equipment. Housing Choices believes that the revaluation model better reflects the value of land and buildings and is more aligned to practices adopted by the community housing sector. An adjustment of $16 million was made at 30 June 2016 to increase the carrying amount of land and buildings to value. The adjustment is reflected in the increased value of the freehold property assets in the Statement of Financial Position and Other Comprehensive Income in the Statement of Profit or Loss and Other Comprehensive Income. Housing Choices holds $32 million in cash and short- term deposits, the majority of which is to be applied in accordance with various funding agreements. Housing Choices has total bank facilities of $65 million split between NAB and Westpac Banking Corporation. Interest rate hedge facilities are in place to protect the group against interest-rate fluctuations. Statement of Cash Flows The Housing Choices Group diligently manages its cash flows to ensure that it holds adequate cash on hand and on deposit to meet regular financial obligations and additional demands that may arise from time to time.
The 30 June 2016 Financial Report for the Housing Choices Group (Housing Choices Australia) is compiled from the Financial Statements for each of the following entities:
• • Housing Choices Australia Limited • • Housing Choices Tasmania Limited • • Singleton Equity Housing Limited • • Disability Housing Limited • • Common Ground Adelaide Limited • • Urban Choices Property Limited • • Inner City Social Housing Trust • • Ecumenical Housing Trust • • Disability Housing Trust
While the Financial Report for Housing Choices is not audited, the individual Financial Statements from which it has been extracted are audited by Ernst & Young, with the exception of Common Ground Adelaide Limited which is audited by PKF Kennedy. The Financial Report for Housing Choices provides an overview of the activities of all entities in the group. Further details relating to the activities of each entity can be obtained by contacting Housing Choices. Statement of Comprehensive Income Operating revenue is predominately rent revenue, which reflects Housing Choices’ core operating activity as a housing manager and developer of affordable housing. Management continues to identify and roll out innovative and sustainable property management techniques in order to address the broader challenge of managing a diverse residential property portfolio. The current year results include the gain to group net assets of $34 million arising from the combination with Common Ground Adelaide on 7 March 2016, as well as the surplus arising from that date. The results also include for the first time the surplus arising from the property management business of Urban Choices Property, which commenced operations on 1 April 2016.
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Building for the future
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