Operating revenue is predominately rent revenue which reflects Housing Choices Australia’s core operating activity as a housing manager and developer of a ordable 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. Housing Choices Australia has a substantial asset base of $766 million (2019: $722 million). Freehold properties and cash deposits represent the majority of Housing Choices Australia assets. Independent valuations of land and buildings are undertaken at all sites at least once every three years. The 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. An adjustment of $30 million was made at 30 June 2020 to increase the carrying amount of land and buildings to value. The adjustment is reflected in 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 Australia diligently manages its cash flows to ensure that it holds adequate cash on hand and on deposit to meet the obligations of management arrangements with State governments, operational and financing obligations, investment in future projects, and additional demands that may arise from time to time. Housing Choices Australia holds $38 million in cash and short-term deposits. There are a number of development plans in place to use existing cash resources to provide new social and a ordable housing and for the redevelopment of the portfolio of Specialist Disability Housing. Other resources are required to meet the obligations under a range of management programs with State Governments. In Victoria as a result of the refinancing of debt facilities with NHFIC, the cash balance at the 30 June includes around $12 million available for future projects in Victoria. These development sites have been identified and projects will commence in the new financial year. In Tasmania, there are a number of projects that will be partly financed by NHFIC with new outcomes to be delivered in 2021 and 2022. In addition, there is cash on hand that will be used to meet the obligations under the Better Housing Futures Program for further asset developments and fund a capital upgrade program. At 30 June 2020 the Group has around $5 million of cash in South Australia available to meet the obligations for new developments and capital upgrades under the asset management plan of the ROSAS program with the South Australia Housing Authority. In the Specialist Disability Accommodation there is around $10 million of cash available to reconfigure the Specialist Housing Group, fund the redevelopment of the existing portfolio of assets and provide funding for further developments.
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Housing Choices Australia | Annual Report 2019-20
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