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Vicroads Annual Report 2018–19

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Vicroads Annual Report 2018–19 Connecting our communities VicRoads Annual Report 2018–19 Acknowledgement of Country VicRoads acknowledges the traditional Aboriginal owners of country throughout Victoria and pays respect to them, their culture and their Elders, past, present and future. Published by: VicRoads 60 Denmark St, Kew Vic 3101 September 2019 Also published at vicroads.vic.gov.au © Copyright State of Victoria (VicRoads) 2019 You are free to re-use this work under a Creative Commons Attribution 4.0 licence, provided you credit the State of Victoria (VicRoads) as author, indicate if changes were made and comply with the other licence terms. The licence does not apply to any branding, including Government logos. International Standards Serial Number (ISSN): 1832-0732 VicRoads publication identification number 02926 Printed on ENVI 50/50 recycled paper Contents Chief Executive’s message …………………………………………………………………………………………………………5 Section 1: Year in review ……………………………………………………………………………………………………………6 Accountable officer’s declaration ……………………………………………………………………………………………………………… 6 Our Promise ………………………………………………………………………………………………………………………………………………… 6 Our Commitment ………………………………………………………………………………………………………………………………………… 6 Public sector values …………………………………………………………………………………………………………………………………… 9 Manner of establishment and responsible Minister………………………………………………………………………………… 10 Nature and range of services provided …………………………………………………………………………………………………… 10 Our functions …………………………………………………………………………………………………………………………………………… 10 Major changes in 2018–19 ……………………………………………………………………………………………………………………… 12 Performance reporting – Non-financial ………………………………………………………………………………… 13 Performance against output performance measures …………………………………………………………………………… 13 Regional Victoria ……………………………………………………………………………………………………………………………………… 13 Metro and suburban ……………………………………………………………………………………………………………………………………17 Customers ………………………………………………………………………………………………………………………………………………… 20 Road safety ………………………………………………………………………………………………………………………………………………… 23 Performance Reporting – Financial ……………………………………………………………………………………… 27 Key financial result …………………………………………………………………………………………………………………………………… 27 Financial overview …………………………………………………………………………………………………………………………………… 28 Financial performance ……………………………………………………………………………………………………………………………… 28 Funding sources ………………………………………………………………………………………………………………………………………… 28 Capital works expenditure ………………………………………………………………………………………………………………………… 29 Cash flows ………………………………………………………………………………………………………………………………………………… 29 Financial position ……………………………………………………………………………………………………………………………………… 29 Income collected on behalf of the Victorian Government and other Government agencies …………… 29 CityLink Income Administered on behalf of the Victorian Government ……………………………………………… 29 Five year financial summary ……………………………………………………………………………………………………………………… 30 Section 2: Governance and organisational structure ……………………………………………………………… 34 Senior Executives/officers (as at 30 June 2019) ……………………………………………………………………………………… 34 Organisational chart ………………………………………………………………………………………………………………………………… 36 Governance ……………………………………………………………………………………………………………………………………………… 38 Occupational health and safety ……………………………………………………………………………………………………………… 40 WorkCover ………………………………………………………………………………………………………………………………………………… 41 Section 3: Workforce data ……………………………………………………………………………………………………… 42 Public sector values and employment principles …………………………………………………………………………………… 42 Comparative workforce data …………………………………………………………………………………………………………………… 42 Workforce inclusion policy ……………………………………………………………………………………………………………………… 43 Remuneration of executives …………………………………………………………………………………………………………………… 45 2018–19 Annual Report 1 Section 4: Other disclosures …………………………………………………………………………………………………… 46 Local Jobs First – Victorian Industry Participation Policy (VIPP) …………………………………………………………… 46 Disclosure of government advertising expenditure ……………………………………………………………………………… 47 Consultancy expenditure ………………………………………………………………………………………………………………………… 48 Information and Communication Technology (ICT) expenditure ………………………………………………………… 48 Disclosure of major contracts ………………………………………………………………………………………………………………… 48 Application and operation of the Freedom of Information Act 1982 …………………………………………………… 48 Compliance with building and maintenance provisions of Building Act 1993 and audit of non-compliant claddings …………………………………………………………………………………………………… 49 Competitive Neutrality Policy …………………………………………………………………………………………………………………… 50 Application and operation of the Protected Disclosure Act 2012 ………………………………………………………… 50 Compliance with the Disability Act 2006………………………………………………………………………………………………… 50 Compliance with Section 22 of the Road Management Act 2004 ……………………………………………………… 51 Statement of availability of other information ………………………………………………………………………………………… 52 Compliance with DataVic Access policy ………………………………………………………………………………………………… 52 Attestation for compliance with Ministerial Standing Direction …………………………………………………………… 53 Section 5: Financial statements ……………………………………………………………………………………………… 54 How these financial statements are structured ……………………………………………………………………………………… 54 Comprehensive operating statement ……………………………………………………………………………………………………… 55 Balance sheet …………………………………………………………………………………………………………………………………………… 56 Cash flow statement ………………………………………………………………………………………………………………………………… 57 Statement of changes in equity ……………………………………………………………………………………………………………… 58 1. About these financial statements ………………………………………………………………………………………………………… 59 2. Operating Net Result …………………………………………………………………………………………………………………………… 60 3. Funding the delivery of our services …………………………………………………………………………………………………… 61 3.1 Summary of income from transactions that fund the delivery of our services ……………………………61 3.2 Sale of goods and services …………………………………………………………………………………………………………………… 62 3.3 Program contributions ………………………………………………………………………………………………………………………… 62 3.4 Other income ………………………………………………………………………………………………………………………………………… 63 4. The cost of delivering services …………………………………………………………………………………………………………… 64 4.1 Expenses incurred in the delivery of services …………………………………………………………………………………… 64 4.1.1 Employee benefits ……………………………………………………………………………………………………………………………… 64 4.1.2 Grant expenses ………………………………………………………………………………………………………………………………………67 4.1.3 Other operating expenses ………………………………………………………………………………………………………………… 68 5. Key assets available to support service delivery ………………………………………………………………………………… 69 5.1 Property, plant and equipment …………………………………………………………………………………………………………… 70 5.1.1 Buildings and leasehold improvement assets ……………………………………………………………………………………72 5.1.1.1 Carrying value of buildings and leasehold assets …………………………………………………………………………72 5.1.1.2 Reconciliation of movements in carrying value of buildings and leasehold assets ………………73 5.1.2 Plant and equipment ……………………………………………………………………………………………………………………………74 5.1.2.1 Carrying value of plant and equipment……………………………………………………………………………………………74 5.1.2.2 Reconciliation of movements in carrying value of plant and equipment …………………………………74 5.1.3 Land …………………………………………………………………………………………………………………………………………………………74 5.1.3.1 Carrying value of land …………………………………………………………………………………………………………………………74 5.1.3.2 Reconciliation of movements in carrying value of land ………………………………………………………………75 2 2018–19 Annual Report 5.1.4 Infrastructure assets ………………………………………………………………………………………………………………………………76 5.1.4.1 Carrying value of Infrastructure assets ……………………………………………………………………………………………76 5.1.4.2 Reconciliation of movements in carrying value of infrastructure assets …………………………………77 5.2 Intangible assets ………………………………………………………………………………………………………………………………………78 5.2.1 Carrying value of intangible assets ………………………………………………………………………………………………………79 5.2.2 Reconciliation of movements in carrying value of intangible assets ……………………………………………79 5.3 Depreciation and impairment ……………………………………………………………………………………………………………… 80 5.3.1 Depreciation and amortisation charge for the reporting period ………………………………………………… 80 5.3.2 Useful lives …………………………………………………………………………………………………………………………………………… 80 5.3.3 Impairment ………………………………………………………………………………………………………………………………………………81 6. Other assets and liabilities …………………………………………………………………………………………………………………… 82 6.1 Receivables ……………………………………………………………………………………………………………………………………………… 82 6.2 Non-financial physical assets classified as held for sale ………………………………………………………………… 83 6.3 Payables …………………………………………………………………………………………………………………………………………………… 84 6.3.1 Maturity analysis of contractual payables ……………………………………………………………………………………… 85 6.4 Unearned Income ………………………………………………………………………………………………………………………………… 86 6.5 Other provisions …………………………………………………………………………………………………………………………………… 86 6.5.1 Reconciliation of movements in other provisions ……………………………………………………………………………87 7. Financing our operations ……………………………………………………………………………………………………………………… 88 7.1 Borrowings ……………………………………………………………………………………………………………………………………………… 88 7.1.1 Maturity analysis of borrowings ………………………………………………………………………………………………………… 89 7.1.2 Interest expense …………………………………………………………………………………………………………………………………… 89 7.2 Leases ……………………………………………………………………………………………………………………………………………………… 89 7.2.1 Finance lease liabilities (Corporation as lessee) ……………………………………………………………………………… 90 7.2.2 Operating leases (Corporation as lessee) …………………………………………………………………………………………91 7.3 Cash flow information …………………………………………………………………………………………………………………………… 92 7.3.1 Cash balances ……………………………………………………………………………………………………………………………………… 92 7.3.2 Reconciliation of net result
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