Department of Transport Annual Report 2010-11 Published by Department of Transport 121 Exhibition Street, Melbourne 3000 www.transport.vic.gov.au © State Government of Victoria 2011 This publication is copyright. No part may be reproduced by any process except in accordance with the Provisions of the Copyright Act 1968. Authorised by the Victorian Government, 121 Exhibition Street, Melbourne ISSN 1441-4805 Printed by Impact Digital, Unit 3-4, 306 Albert St, Brunswick VIC 3056 If you would like to receive this publication in an accessible format, such as large print or audio please telephone Public Affairs on 9655 6000. Printed on Impact 100 per cent Recycled paper. The Department of Transport and its agencies aim to provide a safe and reliable transport system that contributes to a prosperous, inclusive and environmentally responsible state. Contents
Transmittal letter i
Abbreviations 1
Secretary’s foreword 3
Department of Transport 4
Transport portfolios 5
Organisational structure 6
2010-11 Annual Financial Report Chief Finance Officer’s Statement 10
Victorian Railway Crossing Safety Steering Committee Annual Report 12
Financial Statements 16
Appendices 94 Transmittal letter
30 August 2011
The Hon. Terry Mulder MP Minister for Public Transport and Roads
The Hon. Dr Denis Napthine MP Minister for Ports
121 Exhibition Street Melbourne VIC 3000
Dear Ministers
Annual Report 2010-11 In accordance with provisions of the Financial Management Act 1994, I have pleasure in submitting for presentation to Parliament the Department of Transport’s Annual Report for the year ended 30 June 2011. Yours sincerely
Jim Betts Secretary Department of Transport
i Abbreviations
AAS Australian Accounting DDA Disability Discrimination Standards Act 1992 AASB Australian Accounting DMS Drawing Management Standards Board System ABS Australian Bureau of DOT Department of Transport Statistics DPCD Department of Planning and ALCAM Australian Level Crossing Community Development Assessment Model DSE Department of Sustainability ARC Australian Research Council and Environment ATC Australian Transport Council DTF Department of Treasury and Finance ATO Australian Taxation Office DWG designated working groups BB boom barriers EAP Employee Assistance BP4 Budget Paper No. 4 Statement of Finances Program 2009-10 EDI Evans Deakins Industries CAA Central Activity Areas FL flashing lights CAD Central Activities District FMA Financial Management Act CALD culturally and FOI Freedom of Information linguistically diverse FRD Finance Reporting Direction CFI Carbon Farming Initiative FTE full-time equivalent CML CityLink Melbourne Ltd GFS Government Finance CNPL Civic-Nexus Pty Ltd Statistics COAG Council of Australian GST Goods and Services Tax Governments HSRs Health and Safety CO2 –e tonnes of Carbon Representatives Dioxide equivalent IASB International Accounting CRRP COAG Road Reform Plan Standards Board CRS Cooperative Research Centre IFRS International Finance Reporting Standards DART Doncaster Area Rapid Transit IRPs Issue Resolution Procedures DCCEE Department of Climate Change and Energy Efficiency IT Information technology
1 Department of Transport Annual Report 2010-11 ITS Intelligent Transport System SDA Services and KDR Keolis Downer EDI Development Agreement km kilometer SSP Shared Service Provider LSL long service leave TCMS Train Control and Monitoring System MAV Municipal Association of Victoria TIML Transurban Infrastructure Management Limited MLC Member of the Legislative Council TOPS Train Operations Performance System MJ mega joule TSV Transport Safety Victoria MP Member of Parliament TTA Transport Ticketing Authority MTM Metro Trains Melbourne VCAT Victorian Civil and na not applicable Administrative Tribunal NAIDOC National Aboriginal Islander VICERS Vigilance Control and Event Day Observance Committee Recording System NPV net present value VicRoads Roads Corporation of Victoria OH&S Occupational Health VicTrack Victorian Rail Track and Safety Corporation PG pedestrian gate VIPP Victorian Industry PoHC Port of Hastings Corporation Participation Policy PoMC Port of Melbourne V/Line V/Line Passenger Corporation Corporation PPP Public Private Partnership VPS Victorian Public Service PRIDE Passenger Real-time VPTDA Victorian Public Transport Information Displace Development Authority Equipment VRCA Victorian Regional Channels RDR Reduced Disclosure Authority Requirements VRCSSC Victorian Railway Crossing RRLA Regional Rail Link Authority Safety Steering Committee RTW return to work SCSA Southern Cross Station Authority
2 Secretary’s foreword
I am pleased to present the Annual Financial Report for the Department of Transport (DOT) 2010-11.
This year’s annual report includes: »information on DOT’s structure and functions »audited financial statements »output and outcome measures showing how DOT has delivered against its 2010-11 State Budget allocations »statements of compliance with relevant legislation »legislation administered including: - Transport Integration Act 2010 - Major Transport Projects Facilitation Act 2009 - Road Management Act 2004 - Road Safety Act 1986 - Rail Management Act 1996 - Rail Safety Act 2006
I would like to thank the people of DOT who have worked hard throughout the year to help deliver a safe and reliable transport system that contributes to a prosperous, inclusive and environmentally-responsible State.
Jim Betts Secretary Department of Transport
3 Department of Transport Annual Report 2010-11 Department of Transport Transport portfolios
Ministerial Portfolios The Department of Transport supports two portfolios: »Minister for Public Transport and Roads, the Hon. Terry Mulder MP »Minister for Ports, the Hon. Dr Denis Napthine MP It also supports one Parliamentary Secretary: »Parliamentary Secretary for Transport, Mr Edward O’Donohue MLC
Public Transport and The Roads portfolio oversees the Ports portfolio Roads Portfolio development and integration of Victoria’s extensive road network. The Ports portfolio oversees the The Public Transport portfolio strategic planning and development The Roads portfolio includes: oversees Victoria’s extensive public of Victoria’s four major commercial transport system. » maintaining and enhancing Victoria’s ports. It also provides support to arterial road network a network of 14 local ports and The Public Transport enhances facilities and safety for » improving safety for all road users portfolio includes: recreational boating. » supporting Australia’s freight and » contract and lease arrangements Statutory authorities: for train, tram, route bus, school logistics industries »Port of Melbourne Corporation bus services and infrastructure » encouraging alternative transport (PoMC) » regulation of the taxi industry modes including walking and cycling. »Victorian Regional Channels » regulation of public transport safety Statutory authorities Authority (VRCA). » accessible transport services » Roads Corporation of Victoria 2 December 2010 – 30 June 2011 and facilities (VicRoads) » management of large and complex » Linking Melbourne Authority The Hon. Dr Denis Napthine MP transport infrastructure projects. Minister for Ports 2 December 2010 – 30 June 2011 As Minister for Ports, Dr Napthine Statutory authorities The Hon. Terry Mulder MP oversees the development and » Public Transport Ticketing Body Minister for Public Transport integration of Victoria’s world- (Transport Ticketing Authority – TTA) Minister for Roads class commercial ports to support statewide economic growth. He is » V/Line Passenger Corporation Portfolio responsibilities also responsible for ensuring effective (V/Line) integration between the ports and As Minister for Public Transport, » Victorian Rail Track Corporation the freight and logistics sector Mr Mulder oversees the effective (VicTrack). and has responsibility for Victoria’s delivery and management of Victoria’s 14 local Ports. public transport services. 2 December 2010 – 30 June 2011 As Minister for Roads, Mr Mulder oversees Victoria’s extensive roads Parliamentary Secretary for Transport network and road safety initiatives. Mr Edward O’Donohue MLC
The Minister for Public Transport and Roads is the Victorian representative on the Australian Transport Council (ATC), the peak body that 1 July 2010 – 2 December 2010 coordinates and integrates national Tim Pallas MP transport and road policy issues for Minister for Roads and Ports Commonwealth, State, Territory and New Zealand governments. The Hon. Martin Pakula MLC Minister for Public Transport
5 Department of Transport Annual Report 2010-11 Organisational structure
Overview Divisions Freight, Logistics and Marine Freight, Logistics and Marine Jim Betts, Secretary of the Business and Executive Services delivers the government’s policies Department of Transport (DOT), Business and Executive Services in commercial and local ports, reports to the Hon. Terry Mulder provides business services and maritime, freight and logistics MP, Minister for Public Transport corporate governance expertise sectors in partnership with agencies, and Minister for Roads, and the to support DOT and its Ministers. industry, the community and other Hon. Dr Denis Napthine MP, Minister Services include: risk management, levels of government. The division for Ports. procurement, corporate planning, plans and delivers infrastructure and Two Deputy Secretaries report directly business and executive services, implements regulations to improve to the Secretary and are responsible property advice and services, productivity and safety in the freight for overseeing the Strategic Planning information and document and logistics sector while encouraging and Programs areas of DOT. management, and DOT’s daily better use of Victoria’s freight operating needs. network and working to overcome The Director of Audit and Assurance, freight bottlenecks. It also has a key the Chair of the Regional Rail Link Community and Place role in developing strategies and Authority and the Chief Executive Community and Place was implementing policies for Victoria’s of VicRoads also report to the established to ensure DOT effectively ports and marine sectors. department’s Secretary. engages with and responds to the Intergovernmental Relations needs of communities. It brings together expertise in social Intergovernmental Relations policy, local transport, regional manages DOT’s relations with the services and stakeholder and Commonwealth Government, other community engagement. State and Territory governments and local government on national policy, DOT Legal regulatory and infrastructure planning DOT Legal provides a broad range and investment issues. of legal, policy, legislative, law Integrated Program Coordination enforcement, risk management and government services to DOT and the Integrated Program Coordination transport portfolio ministers. provides advice on portfolio– wide strategic planning, project Finance development, project delivery and Finance supports DOT’s internal and the review of project outcomes external financial management and and supports DOT’s end-to-end financial reporting responsibilities. business process. This includes budget management, People and Organisational financial operations and associated Development systems, taxation and financial management compliance. People and Organisational Development facilitates people’s development to reach their potential in the pursuit of delivering against DOT’s priorities, ensures people are treated fairly and with respect and enables them to be happy at work and with the work they do. The division does this through its business partnerships, in-house services and innovative people-management advice and programs that put people first.
6 Organisational structure (continued)
Policy and Communications Systems and Information Services Policy and Communications works Systems and Information Services on the development of transport leads the development of DOT’s strategy and policy, and has expertise information and communication in transport economics and spatial technology strategy, enterprise policy, travel demand modelling and architecture and governance analysis, and sustainable and active framework. The division guides transport policy. The division also information and communication delivers communications, graphic technology investment and helps design, web and new media services to maximise opportunities for to the portfolio. information, business process and technology use. Public Transport Transport Planning and Programs Public Transport plans and develops services and projects. It also manages Transport Planning and Programs the contractual and regulatory works within the portfolio and across relationships of Victoria’s train, tram, government to achieve whole-of- bus, taxi and hire care operations government integrated transport and to meet the government’s public land use planning and development transport objectives. The division across all transport modes: road, works closely with other parts of DOT, rail and marine. It provides strategic across government and with councils, advice and long-term plans for external stakeholders and community transport and land use in Victoria. groups to achieve this. It facilitates major transport and land use projects and strengthens Security and Emergency links between key transport and land Management use authorities. Security and Emergency Management is responsible for promoting and Transport Projects driving organisational preparedness Transport Projects is responsible for high-impact security risks and for infrastructure project delivery, emergencies within the critical rolling stock procurement and major infrastructure sectors of public commercial transactions for DOT. transport, including a role as control agency for marine pollution. The division leads strategic advice and input to national and State Government policy development and manages DOT’s Business Continuity Management program.
7 Department of Transport Annual Report 2010-11 Jim Betts partnerships. She has extensive Stephen McIntyre Secretary tertiary qualifications and a range of Deputy Secretary Programs experience at senior levels, in both Jim was appointed Secretary of the private and public sectors. Stephen McIntyre was appointed DOT in 2008. Prior to this, Jim served Deputy Secretary Programs in April as Director of Public Transport James Lavery 2011. Prior to DOT, Stephen worked overseeing Victorian train, tram, for Housing New South Wales in both Executive Director, DOT Legal bus and taxi operations. Jim has a policy and asset management roles. Bachelor of Arts from Oxford and a James was appointed to his current He has extensive experience in the management science degree from role 2008. He joined the Department NSW roads portfolio and also headed London University. He worked in of Infrastructure, DOT’s predecessor, up the transport strategy for the a number of roles for the British in 2004 as Commercial Counsel for Sydney 2000 Olympic Games. Stephen Government including Assistant the Public Transport Division. In 2005, has civil engineering, environmental Private Secretary to the Secretary he became General Manager of the studies and management of State for Transport and Policy division’s legal branch. James was qualifications. He is a member of Adviser in the Railways Directorate. a Senior Associate at Phillips Fox the Australian Institute of Company In Victoria, Jim has also worked as Lawyers before joining DOT. He has Directors, and until recently sat on Director, Transport Reform, in the a Bachelor of Laws (Honours) from the board of the NSW branch of the Department of Treasury and Finance Monash University and a Bachelor of Institute of Public Administration. (DTF), Assistant Director in the Arts from Melbourne University. Peter Watson Project Development and Commercial Hector McKenzie Division of DTF and Deputy Director Chairman, Regional Rail of Public Transport. Executive Director, Link Authority Public Transport Division Gillian Miles Peter Watson was appointed Chair Hector was appointed Director of the Regional Rail Link Authority Deputy Secretary Strategic of Public Transport in 2008. His (RLLA) in August 2010. Peter is Transport Planning extensive public sector transport responsible for the governance Gillian joined DOT in 2009. Prior to this, experience includes managing oversight of RRLA including she was Deputy Secretary, Community Victoria’s bus service contracts, performance in its delivering of the Development at the Department of managing part of the franchising Regional Rail Link project. Prior Planning and Community Development of the former Public Transport to DOT Peter served as Managing where she led the community Corporation, planning public Director and Chief Executive development portfolio with a focus transport for the Melbourne Officer of Transfield Service. Peter on addressing disadvantage, building 2006 Commonwealth Games is Chairman of Save the Children social cohesion and local decision and overseeing the commercial (Australia), Assetco and Industry making. She has a strong transport arrangements for Victoria’s rolling Funds Management Company, and is background, having worked at stock procurements. a member of the Australian Institute VicRoads as Executive Director of Gary Liddle of Company Directors, the Institute Regional Services where she managed of Engineers and a Fellow of the the road network and registration and Chief Executive, VicRoads Australian Academy of Technological licensing activities across Victoria for Gary was appointed Chief Executive of Sciences and Engineering. more than five years. VicRoads in 2007. He joined VicRoads’ predecessor, the Country Roads Robyn Clark Board, in 1971. He has held various Executive Director, People and positions in VicRoads including Organisational Development Deputy Chief Executive, Director Major Robyn joined DOT in 2008 after seven Projects, General Manager Road years in her own strategic human System Management and Project resources consulting business. Manager for the Eastern Freeway and Robyn’s passion for building a human the Ballarat Bypass. Gary is a board relations function which respects and member and chairman of Austroads, develops its people, has brought to the Australasian organisation of road fruition DOT’s people first, values- authorities. Gary has a Bachelor of based organisational agenda. Civil Engineering and a Graduate Robyn has led a human resources Diploma in Management. transformation through her influence on the DOT Executive Leadership Team and by strengthening business
8 Organisational structure (continued)
Department of Transport organisational structure as at 30 June 2011
The Hon. Mr Terry Mulder MP The Hon. Dr Denis Napthine MP Minister for Public Transport Minister for Ports Minister for Roads
Jim Betts Secretary Department of Transport
Alan Osborne Ian McCallum Len Gainsford Director Chief Investigator Director Transport Safety Transport Safety Audit & Assurance Victoria
Robyn Clark Gillian Miles James Lavery Peter Watson Hector McKenzie Gary Liddle Executive Director Stephen McIntyre Deputy Secretary Executive Director Chair Director Chief Executive People & Deputy Secretary Strategic Transport DOT Legal Regional Rail Link Public Transport VicRoads Organisational Programs Planning General Counsel Authority Development
Corey Hannett Chief Executive Officer Regional Rail Link Authority Vacant Finance Justin Bree Tony Pearce Damian Ferrie Brandon Mack Terry Garwood Executive Director Executive Robert Oliphant Murray Cullinan Michael Hopkins Corinne Cadilhac Executive Director Executive Director Executive Executive Director Executive Executive Director Executive Executive Director Executive Executive Director Executive Executive Director Director Executive Executive Director Executive Executive Director Executive Transport Projects Transport Lachlan McDonald Community & Place Chief Finance Officer Officer Chief Finance Chief Information Officer Officer Chief Information Policy & Communications Policy Freight Logistics & Marine Logistics Freight Systems & Information Services & Information Systems Intergovernmental Relations Intergovernmental Business & Executive Services & Executive Business Transport Planning & Programs Transport Coordination Programs Integrated Security & Emergency Management Security & Emergency
9 Department of Transport Annual Report 2010-11 2010-11 Annual Financial Report Chief Finance Officer’s Statement
The department’s 2010-11 net Note 2 of the financial statements result was a surplus of $70 million details DOT’s expenditure on outputs compared with $10 million in 2009-10. delivered. These outputs include Transport Safety and Security, Public DOT’s total operating expenses Transport Services, and Integrated in 2010-11 was $5.4 billion. The Transport Planning, Delivery majority of DOT’s expenditure was and Management. The operating for payments to transport services statement includes revenue received providers including $1.6 billion for rail by DOT as payments for outputs system operations and services, delivered. The delivery of DOT’s $1.2 billion for the government’s outputs is measured against agreed capital assets charge for rail output targets and the Treasurer infrastructure, $1.3 billion for road certifies revenue based on the and $0.9 billion for bus services. level of performance. In 2010-11, Payments for public transport DOT managed its outputs within its activities increased by 15 per cent available resources. compared with 2009-10, which reflects additional investment DOT capital expenditure for 2010-11 in public transport services and of approximately $1.6 billion included maintenance. In addition, the increase major projects such as Regional reflects the impact of the changed Rail Link, Metropolitan and Regional arrangements for fare revenue rolling stock, Westall Rail Upgrade, under the new Franchise Agreement Laverton Rail Upgrade, South Morang which commenced on 30 November Rail Extension, Smart Bus and 2009. Under the new Agreement, the Sunbury Electrification. In addition, department receives all fare revenue. payments were made to VicRoads for Under the previous Franchise road construction projects, including Agreement, fare revenue was received the Monash-Westgate Upgrade and directly by the rail operators. payments made to the Transport Ticketing Authority for the new myki system.
10 2010-11 Annual Financial Report Chief Finance Officer’s Statement (continued)
Rail assets created by DOT’s capital The financial statements presented All other agencies and corporations expenditure are transferred by way later in this report are prepared are separate reporting entities and of equity (see note 20) to VicTrack as in accordance with the Financial therefore prepare their own annual the entity responsible for reporting Management Act 1994 and applicable reports (including audited financial the State’s rail infrastructure Australian accounting standards. statements). network. Similarly, assets created In particular, they are presented by DOT’s funding of road programs in a revised format consistent with The table below shows the financial will be reflected in the accounts of AASB 1049 ‘Whole of Government results for the last six years in the VicRoads. As such these assets are and General Government Sector’. revised format. not included in the assets figure in The financial statements relate the table below. specifically to the operations of DOT and include the operations of the Director Public Transport, Director of Public Transport Safety Victoria, Chief Investigator Transport and Marine Safety Investigations, and the Regional Rail Link Authority.
InCome FRom 2011 2010 2009 2008 2007 2006 TRAnSACTIonS $m $m $m $m $m $m »Output appropriations 4,756.00 4,461.50 3,961.40 3,994.00 3,705.30 3,311.60 »Other revenue 760.4 527 296.5 335.9 305.3 305.1 Total income from 5,516.40 4,988.50 4,257.90 4,329.90 4,010.60 3,616.70 transactions Total expenses from -5,446.20 -4,956.70 -4,137.30 -4,087.40 -4,317.30 -3,366.40 transactions net result from transactions 70.2 31.8 120.6 242.5 -306.6 250.3 Total other economic flows 0 -21.7 -4.2 -37.1 -23.4 -17.9 included in net results net results 70.2 10.1 116.4 205.4 -330.1 232.4 Total assets 2,708.70 2,573.10 1,331.60 1,641.70 1,388.20 1,385.00 Total liabilities -1,513.20 -1,431.30 -781 -1,014.20 -989.2 -664.4 net assets 1,195.50 1,141.80 550.6 627.5 399 720.6 Victorian Railway Crossing Safety Steering Committee: Annual Report Victorian Railway Crossing Safety Steering Committee
The committee is chaired by DOT The Victorian Railway Crossing with representatives from VicTrack, Safety Steering Committee Victoria Police, VicRoads, V/Line and the Municipal Association of Victoria (VRCSSC) was established (MAV). Transport Safety Victoria (TSV) maintains ‘observer’ status on the in 2005 to advise and make steering committee. recommendations to the Minister VRCSSC develops and implements improvements to safety at level for Public Transport on the policy crossings, undertakes research to directions, management and help guide safety initiatives, and communicates safety messages standards for road and pedestrian and achievements. crossings in Victoria. The following four sub-groups work on behalf of the committee to manage Victoria’s annual level crossing upgrade program, commission research into road user behaviours, trial new technologies and promote rail safety awareness: »Railway Crossing Program Delivery Group »Railway Crossing Technical Group »Railway Safety Awareness Group »Railway Crossing Human Factors Group. Towards Zero Level Crossing Safety Action Plan 2009-11 »There were no road level crossing motor vehicle/train crash fatalities in Victoria during 2010-11. »There have been no road level crossing fatalities in Victoria in over 23 months and in regional Victoria for more than 39 months. »There were two pedestrian crossing accidental fatal level crossing collisions, at Frankston on 3 October 2010, and at Bentleigh on 10 February 2011. This is a 50 per cent reduction on the annual 10-year moving average for pedestrian crossing fatalities.
13 Department of Transport Annual Report 2010-11 State-wide Level Crossing Closure of crossings Railway Crossing Upgrade Program »One crossing was closed at Technical Group »15 road and one pedestrian Candlebark Lane in Beaufort level crossing upgrades to Investigation into level crossing »Two crossings were closed as active controls technology applications part of the reintroduction of »Four pedestrian level crossings passenger trains between Ballarat Dedicated Short Range DDA compliance upgrades. and Maryborough – not part of Communications Trial Project the VRCSSC annual funded »Research grant to investigate Ballarat – Maryborough Level upgrade program: Crossing Upgrades the application of new in-vehicle -Halls Road, Talbot collision warning technology to 22 level crossing upgrades improve railway crossing safety. were completed as part of the -Sing Track (Bushy Park Road), reintroduction of passenger trains Daisy Hill. »Funding through the Cooperative between Ballarat and Maryborough, Research Centre for Advanced which were not part of the VRCSSC Automotive Research (AutoCRC) annual funded upgrade program. with research being undertaken by La Trobe University and Queensland University of Technology.
Level Crossings Safety Upgrades 2010-11 – Commissioned by VicTrack
Location Level Crossing Control Upgrades – no Road Crossings Treatment Commissioned 1 Tylden – Woodend Rd, Woodend AAWS only 15/08/2010 2 Park La, Somerville FL to BB 03/10/2010 3 Bungower Rd, Somerville FL to BB 03/10/2010 4 Urquhart Cr, Bittern FL to BB 16/10/2010 5 Wheeler St, Shepparton FL to BB 28/10/2010 6 New Dookie Rd (Dookie – Shepparton Rd), Shepparton FL to BB 28/10/2010 7 Katamatite – Shepparton Rd, Congupna FL to BB 28/10/2010 8 Knight St (Andrew Fairley Av), Shepparton FL to BB 15/12/2010 9 HMAS Cerberus Main Entrance, Crib Point FL to BB 20/03/2011 10 Disney St, Crib Point FL to BB 20/03/2011 11 Yerabbin Rd, Buangor Passive to BB 30/03/2011 12 Hayes St, Shepparton FL to BB 07/04/2011 13 Bridgewater / Sebastian Road, Sebastian Passive to BB 22/06/2011 14 Sebastian Road (Main St), Sebastian Passive to BB 22/06/2011 15 Langi Ghiran Picnic Ground Rd, Dobie Passive to BB 29/06/2011
Location Level Crossing Control Upgrades – no Pedestrian Crossings Treatment Commissioned 1 UeoP ROSANNA, Rosanna Maze to PG 24/10/2010 2 HMAS Cerberus Main Entrance, Crib Point DDA Compliance 03/02/2011 3 Sinclair St, Colac DDA Compliance 30/06/2011 4 High Street, Shepparton (1) DDA Compliance 30/06/2011 5 High Street, Shepparton (2) DDA Compliance 30/06/2011
14 »The three-year $5m project Responses to external Railway Crossing Human includes developing a specialist simulator model. It also includes recommendations Factors Group a 100 motor vehicle field trial at Recommendations about the The Human Factors Group provides three level crossing sites. management of railway crossing support and advice to the Steering »The project is complimented by safety from external stakeholders Committee on how behavioural the Cooperative Research Centre are maintained by the VCRSSC in issues can influence safety at railway for Railway Engineering and a register of action and responses. level crossings. Technologies (RailCRC) Intelligent Most recommendations follow This year the Human Factors Group: Transport System (ITS) for Safer investigations into rail crossing Level Crossings project which is accidents by authorities like the State »Successfully coordinated an evaluating the effect on human Coroner Victoria, Office of the Chief Australian Research Council behaviour of this and other Investigator – Transport & Marine (ARC) Linkage Grant application promising safety technologies. Safety, and the Australian Transport for a project investigating the Safety Bureau. ‘application of contemporary » Axle Counter Technology systems-based methods to reduce Thales Axle Counter technology The State Coroner’s Office is trauma at rail level crossings’. has been type approved on the responsible for investigating deaths This seeks to model overall level V/Line network providing a more where the circumstances are sudden, crossing systems, including the reliable train detection system traumatic or unexplained, including human elements. Participants on seasonal or low volume lines. railway level crossing fatalities. The include Monash University Accident VRCSSC monitor the response to each » Affordable Level Crossing Research Centre, Department safety action from each agency and Technologies of Transport, V/Line, VicTrack, will not remove a recommendation A project through the RailCRC will VicRoads, Transport Accident from the VRCSSC Register until trial a number of affordable level Commission and University of all recommendations have been crossing warning devices at a site Southampton (United Kingdom). addressed to their satisfaction. in country Victoria in 2011-12. This »Provided input into the development is an industry-wide initiative and the The Coroner decided that in of level crossing standards where selection of the technologies to be conducting the Kerang inquest she human factors may be a component included in the trial has commenced. would look at four separate issues: or issue. » Yellow Box Marking »Medical response issues: inquest »Facilitated a project on statistical Metro Trains installed Yellow started 20 January 2011. reporting of level crossing Box Markings at a number of incidents, exploring alternative locations where queuing has »Truck design issues: scheduled to data presentations and collection been identified as a high risk. start 18 July 2011. methods which may further inform An assessment of these locations »Railway and road infrastructure VRCSSC and related groups found that only 50 per cent were issues: scheduled to start about trends. effective. A guideline for future 22 August 2011. installations is being developed to assist in effective site selection. »Human factor issues: scheduled to Safety Awareness Group start 22 August 2011. » Australian Level Crossing National Rail Safety Week ran from Assessment Model (ALCAM) The Trawalla inquest is scheduled to 23-29 August 2010 with a focus on ALCAM is a risk-based methodology start on 2 November 2011. level crossing safety. Two messages used to rank railway crossing ran on Melbourne radio stations upgrade priorities for the ongoing during the week and Victoria Police annual Rail Level Crossing Control conducted a state-wide level crossing Upgrade Program – based on accident safety blitz, with a significant increase risk likelihood, probability, and in the issuing of infringement notices. consequence. In 2010-11, the ongoing field survey of level and occupation As part of the Royal Melbourne Show, crossings in Victoria continued DOT distributed 50,000 ‘Don’t Risk on target and on budget, with It’ themed bookmarks, with level assessments now complete at 1657 crossing safety messages. level and 609 occupation crossings on 27 rail lines. During the year, VicTrack conducted consultation and training sessions with rail and road operators. A number of ALCAM workshops were held in regional Victoria and at DOT.
15 Department of Transport Annual Report 2010-11 Financial statements Contents
Accountable Officer’s and Chief Finance and Accounting Officer’s Declaration 17 Victorian Auditor-General’s Report 18 Comprehensive operating statement 20 Balance sheet 21 Statement of changes in equity 22 Cash flow statement 23 Notes to the financial statements 24
These financial statements for the year ended 30 June 2011 include the Department of Transport and these legal, administrative and statutory appointments: » The Director of Public Transport » The Director, Public Transport Safety Victoria (statutory appointment) » Chief Investigator, Transport and Marine Safety Investigations (statutory appointment) » Regional Rail Link Authority (administrative office)
The Department of Transport (DOT) is a government department of the State of Victoria.
A description of the nature of Department’s operations and its principal activities is included in the Report of Operations.
For queries in relation to our financial statements please call (03) 9655 6666, or visit our website www.transport.vic.gov.au. Accountable Officer’s and Chief Finance and Accounting Officer’s Declaration
Department of Transport
Accountable Officer’s and Chief Finance and Accounting Officer’s Declaration
We certify that the attached financial statements for the Department of Transport have been prepared in accordance with Standing Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions, Australian accounting standards and other mandatory professional reporting requirements. We further state that, in our opinion, the information set out in the comprehensive operating statement, balance sheet, statement of changes in equity, cash flow statement and notes to and forming part of the financial statements, presents fairly the financial transactions during the year ended 30 June 2011 and financial position of the Department of Transport as at 30 June 2011. We are not aware of any circumstance which would render any particulars included in the financial report to be misleading or inaccurate. We authorise the attached financial statements for issue on 16 August 2011.
Robert Oliphant Jim Betts Chief Finance and Accounting Officer Secretary Department of Transport Department of Transport 16 August 2011 16 August 2011 Melbourne Melbourne
17 Department of Transport Annual Report 2010-11 Victorian Auditor-General’s Report
18 Victorian Auditor-General’s Report (continued)
19 Department of Transport Annual Report 2010-11 Comprehensive operating statement for the financial year ended 30 June 2011
2011 2010 Note $’000 $’000
INCOME FrOM TraNsaCTIONs Output appropriations 4(a) 4,756,022 4,461,524 Special appropriations 4(b) 1,138 1,303 Sale of transport services 5(a) 577,532 383,963 Grants and other income transfers 5(b) 153,646 133,578 Interest 2,383 2,032 Fair value of assets and services received free of charge or for nominal consideration 544 343 Other income 5(c) 25,145 5,755 Total income from transactions 5,516,410 4,988,498
ExpENsEs FrOM TraNsaCTIONs Payments to service providers and transport agencies 6(a) (5,061,880) (4,592,193) Supplies and services 6(b) (174,372) (178,327) Employee expenses 6(c) (114,922) (108,219) Depreciation and amortisation 6(d) (33,779) (19,903) Interest expense (32,324) (32,119) Capital asset charge (28,556) (25,872) Fair value of assets and services provided free of charge 6(e) (417) (82) Total expenses from transactions (5,446,250) (4,956,715)
Net result from transactions (net operating balance) 70,160 31,783
OThEr ECONOMIC FlOws INCludEd IN NET rEsulT Net gains/(losses) on non-financial assets 7(a) (100) (21,438) Other gains/(losses) from other economic flows 7(b) 104 (221) Total other economic flows included in net result 4 (21,659)
Net result 70,164 10,124
OThEr ECONOMIC FlOws – OThEr NON-OwNEr ChaNgEs IN EquITy Changes in physical asset revaluation reserve 20(c) (5) 292,023 Total other economic flows – other non-owner changes in equity (5) 292,023 Comprehensive result 70,159 302,147
The above comprehensive operating statement should be read in conjunction with the accompanying notes.
20 Balance sheet as at 30 June 2011
2011 2010 Note $’000 $’000
assETs Financial assets Cash and deposits 18(a) 678,861 525,752 Receivables 8 579,228 620,014 Total financial assets 1,258,089 1,145,766
Non-financial assets Prepayments 4,435 2,764 Property, plant and equipment 9 1,411,630 1,391,904 Intangible assets 10 34,593 32,688 Total non-financial assets 1,450,658 1,427,356
Total assets 2,708,747 2,573,122
lIabIlITIEs Payables 11 826,897 779,113 Borrowings 12 400,930 385,116 Provisions 13 285,383 267,039 Total liabilities 1,513,210 1,431,268
Net assets 1,195,537 1,141,854
EquITy Contributed capital 20(a) 399,289 415,765 Accumulated surplus/(deficit) 20(b) 432,185 362,021 Physical asset revaluation surplus 20(c) 364,063 364,068 Net worth 1,195,537 1,141,854
Commitments for expenditure 15 Contingent assets 16 Contingent liabilities 16
The above balance sheet should be read in conjunction with the accompanying notes.
21 Department of Transport Annual Report 2010-11 Statement of changes in equity for the financial year ended 30 June 2011
physical asset Contributions accumulated revaluation by Owner surplus surplus Total
Note $'000 $’000 $'000 $’000 balance at 1 July 2009 126,633 351,882 72,060 550,575 Net result for the year 20(b) – 10,124 – 10,124 Other comprehensive income for the year 20(c) – – 292,023 292,023 Transfer to accumulated surplus 20(c) – 15 (15) – Capital appropriations 20(a) 1,357,086 – – 1,357,086 Capital contributions to agencies within the 20(a) (1,401,542) – – (1,401,542) Transport portfolio
Administrative restructure – 3(v) 333,588 – – 333,588 net assets received balance at 30 June 2010 415,765 362,021 364,068 1,141,854 Net result for the year 20(b) – 70,164 – 70,164 Other comprehensive income for the year 20(c) – – (5) (5) Transfer to accumulated surplus 20(c) – – – – Capital appropriations 20(a) 1,610,467 – – 1,610,467 Capital contributions to agencies within the 20(a) (1,641,174) – – (1,641,174) Transport portfolio
Administrative restructure – 3(i) & 3(ii) 14,231 – – 14,231 net assets received balance at 30 June 2011 399,289 432,185 364,063 1,195,537
The above statement of changes in equity should be read in conjunction with the accompanying notes.
22 Cash flow statement for the financial year ended 30 June 2011
2011 2010 Note $’000 $’000
Cash FlOws FrOM OpEraTINg aCTIvITIEs rECEIpTs Receipts from Victorian Government 4,757,161 4,382,409 Receipts from other entities 139,659 137,899 Sale of transport services 621,973 468,886 Goods and Services Tax recovered from the ATO 377,189 295,812 Interest received 2,383 2,032 Other receipts 19,952 7,236 Total receipts 5,918,317 5,294,274
payMENTs Payments to service providers and transport agencies (5,341,879) (4,669,738) Payments to suppliers and employees (292,522) (302,915) Goods and Services Tax paid to the ATO (50,087) (38,988) Interest paid (32,265) (21,770) Capital asset charge (28,556) (25,872) Total payments (5,745,309) (5,059,283)
Net cash flows from/(used in) operating activities 18(c) 173,008 234,991
Cash FlOws FrOM INvEsTINg aCTIvITIEs Payments for property, plant and equipment (32,922) (61,393) Payments for intangible assets (5,254) (8,232) Proceeds from sale of non-financial assets 992 685 Cash received from activity transferred in 3(v) – 5,714 Net cash flows from/(used in) investing activities (37,184) (63,226)
Cash FlOws FrOM FINaNCINg aCTIvITIEs Owner contributions by Victorian Government 1,598,789 1,333,195 Payments of capital contribution to VicTrack (1,236,551) (916,320) Payments of capital contribution to other entities (357,034) (448,418) Repayments of finance lease liabilities (922) (751) Proceeds from loans and advances from Victorian Government 153,912 135,239 Repayment of loans and advances from Victorian Government (140,909) (132,276) Net cash flows from/(used in) financing activities 17,285 (29,331)
Net increase/(decrease) in cash and cash equivalents 153,109 142,434 Cash and cash equivalents at the beginning of the financial year 525,752 383,318 Cash and cash equivalents at the end of the financial year 18 (a) 678,861 525,752 Non cash transactions 18 (b)
The above cash flow statement should be read in conjunction with the accompanying notes.
23 Department of Transport Annual Report 2010-11 Notes to the financial statements for the financial year ended 30 June 2011
NOTE pagE
1 Summary of significant accounting policies 25 2 Departmental (controlled) outputs 40 3 Restructuring of administrative arrangements 43 4 Summary of compliance with annual parliamentary and special appropriations 47 5 Income from transactions 48 6 Expenses from transactions 49 7 Other economic flows included in net result 51 8 Receivables 52 9 Property, plant and equipment 53 10 Intangible assets 57 11 Payables 58 12 Borrowings 59 13 Provisions 60 14 Financial instruments 63 15 Commitments for expenditure 71 16 Contingent assets and liabilities 74 17 Superannuation 75 18 Cash flow information 76 19 Leases 78 20 Equity 80 21 Administered (non-controlled) items 82 22 Annotated income agreements 87 23 Trust account balances 87 24 Responsible persons 88 25 Remuneration of executives 89 26 Remuneration of auditors 90 27 The Taxi Services Commission 90 28 Victorian Public Transport Development Authority 90 29 Glossary of terms 91
24 Note 1. Summary of significant accounting policies for the financial year ended 30 June 2011
The annual financial statements (b) Basis of accounting Exceptions to the historical cost represent the audited general concept include: purpose financial statements for preparation and » non current physical assets which, the department. measurement subsequent to acquisition, are To gain a better understanding of The accrual basis of accounting has measured at a revalued amount the terminology used in this report, been applied in the preparation of being their fair value at the date of a glossary of terms can be found in these financial statements whereby the revaluation less any subsequent Note 29. assets, liabilities, equity, income accumulated depreciation and and expenses are recognised in the subsequent impairment losses. (a) Statement of reporting period to which they relate, Revaluations are made with regardless of when cash is received sufficient regularity to ensure compliance or paid. that the carrying amounts do not materially differ from their fair value; These general purpose financial These financial statements are statements have been prepared presented in Australian dollars, the »the fair value of an asset other in accordance with the Financial functional and presentation currency than land is generally based on its Management Act 1994 (FMA) and of the department. depreciated replacement value; applicable Australian Accounting »certain liabilities that are Standards (AAS) which include In the application of AAS, judgements, interpretations, issued by the calculated with regard to actuarial estimates and assumptions are assessments; and Australian Accounting Standards required to be made about the Board (AASB). In particular, they are carrying values of assets and »available-for-sale investments presented in a manner consistent with liabilities that are not readily apparent which are measured at fair value the requirements of the AASB 1049 from other sources. The estimates with movements reflected in equity Whole of Government and General and associated assumptions are until the asset is derecognised. Government Sector Financial Reporting. based on professional judgements derived from historical experience The accounting policies set out Where appropriate, those AAS and various other factors that are below have been applied in preparing paragraphs applicable to not-for- believed to be reasonable under the the financial statements for the profit entities have been applied. circumstances. Actual results may year ended 30 June 2011 and the differ from these estimates. comparative information presented The annual financial statements were for the year ended 30 June 2010. authorised for issue by the Secretary The estimates and associated of the Department of Transport on assumptions are reviewed on 16 August 2011. an ongoing basis. Revisions to Accounting policies are selected accounting estimates are recognised and applied in a manner which in the period in which the estimate is ensures that the resulting financial revised and also future periods that information satisfies the concepts are affected by the revision. of relevance and reliability, thereby This report has been prepared in ensuring that the substance of the accordance with the historical cost underlying transactions or other convention. Historical cost is based events is reported. on the fair values of the consideration given in exchange for assets.
25 Department of Transport Annual Report 2010-11 (c) Reporting entity »The Chief Investigator, Transport (d) Basis of consolidation and Marine Safety Investigations The financial statements cover is a statutory office established on The consolidated financial the Department of Transport 1 August 2006 under part V of the statements exclude bodies within the (the department) as an individual Transport Act 1983. The principal department’s portfolio that are not reporting entity. The department is a objective and function of the office controlled by the department and government department of the State is to improve public transport and therefore are not consolidated. Bodies of Victoria, established pursuant to an marine safety by independently and activities that are administered order made by the Premier under the investigating public transport and (see explanation below under Administrative Arrangements Act 1983. marine safety matters and to report administered items) are also not Its principal address is 121 Exhibition the results of investigations to the controlled and not consolidated. Street, Melbourne VIC 3000. relevant ministers. Administered items The department is an administrative »Regional Rail Link Authority Certain resources are administered by agency acting on behalf of the Crown. (RRLA) is an administrative office established under section 11 of the department on behalf of the state. The financial statements include the Public Administrative Act 2004. While the department is accountable all the controlled activities of the RRLA was established to deliver the for the transactions involving Department of Transport. Regional Rail Link Project. administered items, it does not have the discretion to deploy the resources The following legal and statutory A description of the nature of the for its own benefit or the achievement appointments are included in the department’s operations and its of its objectives. Accordingly reporting entity: principal activities is included in transactions and balances relating to the report of operations on page these administered resources are not »The Director of Public Transport 6-7; which does not form part of the recognised as departmental income, (the Director) is a position financial statements. expenses, assets or liabilities within established by section 8 of the the body of the financial statements, Transport Act 1983 (‘the Act’). The Objectives and funding but are disclosed in note 21. Director’s powers and functions The government is committed are set out in section 9 of the Act Administered income include taxes, to providing a safe and reliable and include responsibility for the fees and fines and the proceeds from transport system that contributes general administration of the the sale of administered surplus land to a prosperous, inclusive and tram and train service contracts and buildings. Administered assets environmentally responsible state. provided by private operators under include government income earned The department is predominantly partnership arrangements. but not yet collected. Administered funded by accrual-based liabilities include government »Director, Public Transport Safety parliamentary appropriations for expenses incurred but yet to be paid. Victoria, was established by the provision of outputs. an amendment to section 9T Except as otherwise disclosed, of the Transport Act 1983 and Outputs of the department administered resources are accounted commenced operating on 1 August Information about the department’s for on an accrual basis using same 2006. The director has a range output activities, and the expenses, accounting policies adopted for of functions to enable regulation income, assets and liabilities which recognition of the departmental items of the public transport system. are reliably attributable to those in the financial statements. Both PTSV is responsible for the safety output activities, is set out in the controlled and administered items of accreditation of rail and bus output activities schedule (refer the department are consolidated into organisations throughout Victoria. Note 2). Information about expenses, the financial statements of the state. The director reports to the Minister income, assets and liabilities for Public Transport. administered by the department are Disclosures related to administered given in the schedule of administered items can be found in note 21. expenses and income and the schedule of administered assets and liabilities (refer Note 21).
26 Note 1. Summary of significant accounting policies for the financial year ended 30 June 2011 (continued)
(e) Scope and presentation Other economic flows are Statement of changes in equity changes arising from market re- of financial statements measurements. They may include The statement of changes in gains and losses from disposals, equity presents reconciliations of Comprehensive each non-owner and owner equity operating statement revaluations and impairments of non current physical and intangible opening balance at the beginning of Income and expenses in the assets; actuarial gains and losses the reporting period to the closing comprehensive operating statement arising from defined benefit balance at the end of the reporting are classified according to whether superannuation plans; fair value period. It also shows separately or not they arise from ‘transactions’ changes of financial instruments; changes due to amounts recognised or ‘other economic flows’. This and depletion of natural assets (non- in the comprehensive result and classification is consistent with the produced) from their use or removal. amounts recognised in other whole of government reporting format comprehensive income related to and is allowed under AASB 101 The net result is equivalent to profit or other non-owner changes in equity. Presentation of financial statements. loss derived in accordance with AASs. Rounding of Amounts Transactions and ‘other economic Balance sheet Amounts in the financial statements flows’ are defined by the Australian Assets and liabilities are presented (including the notes) have been system of government finance in liquidity order with assets rounded to the nearest thousand statistics: concepts, sources and aggregated into financial assets and dollars, unless otherwise stated. methods 2005 Cat.No. 5514.0 non-financial assets. Figures in the financial statements published by the Australian Bureau of may not equate due to rounding. Statistics (see Note 29). Current and non-current assets and liabilities (those expected to Transactions are those economic be recovered or settled beyond 12 flows that are considered to arise as months) are disclosed in the notes, a result of policy decisions, usually where relevant. interactions between two entities by mutual agreement. Transactions also Cash flow statements include flows within an entity, such as depreciation where the owner is Cash flows are classified according simultaneously acting as the owner to whether or not they arise from of the depreciating asset and as the operating activities, investing consumer of the service provided by activities, or financing activities. the asset. Taxation is regarded as This classification is consistent mutually agreed interactions between with requirements under AASB 107 the government and taxpayers. Statement of cash flows. Transactions can be in kind (for example assets provided/given free of charge or for nominal consideration) or where the final consideration is cash.
27 Department of Transport Annual Report 2010-11 (f) Income from Output appropriations Grants and other income transfers transactions Income from the outputs the department provides to government Grants from third parties (other Income is recognised to the extent is recognised when those outputs than contribution by owners) are that it is probable that the economic have been delivered and the relevant recognised as income in the reporting benefits will flow to the entity and the minister has certified delivery of those period in which the Department gains income can be reliably measured. outputs in accordance with specified control over the underlying assets. performance criteria. Appropriation income Fair value of assets and services Appropriated income becomes Special appropriations received free of charge or for nominal consideration controlled and is recognised by the Under section 213A(4) of the Department when it is appropriated Transport Act 1983, income related to Contributions of resources received from the Consolidated fund by the administrative costs associated with free of charge or for nominal Victorian Parliament and applied ticket infringements are recognised consideration are recognised at to the purposes defined under when the amount is appropriated for fair value when control is obtained the relevant appropriations act. that purpose is due and payable by over them, irrespective of whether Additionally, the department is the department. these contributions are subject to permitted under Section 29 of the restrictions or conditions over their use. Financial Management Act 1994 Interest Contributions in the form of services to have certain income annotated Interest includes interest received are only recognised when a fair value to the annual appropriation. The on deposits and other investments can be reliably determined and the income which forms part of a and the unwinding over time of services would have been purchased if Section 29 agreement is recognised the discount on financial assets. not received as a donation. by the department and the receipts Interest income is recognised using paid into the Consolidated Fund Other income the effective interest method which as an administered item. At the allocates the interest over the Other income includes rental income point of income recognition, relevant period. and other miscellaneous items which Section 29 provides for an equivalent are one-off items. amount to be added to the annual Sale of services appropriation. Examples of receipts which can form part of a Section 29 Income from the supply of services agreement are Commonwealth Income from the supply of services specific purpose grants which are is recognised by reference to the shown in Note 22. The Section 29 stage of completion of services Appropriation is shown in Note 4. being performed. The income is recognised when: Where applicable, amounts disclosed as income are net of returns, »the amount of income, stage allowances, duties and taxes. All of completion and transaction amounts of income over which the costs incurred can be reliably department does not have control measured; and are disclosed as administered income »it is probable that the economic in the schedule of administered benefits associated with income and expenses (see Note 21). the transaction will flow to Income is recognised for each of the department. the department’s major activities as follows: The department acknowledges the incidence of fare evasion, impacting fare box revenue in Note 5(a), by individuals who have a legal obligation to the department.
28 Note 1. Summary of significant accounting policies for the financial year ended 30 June 2011 (continued)
(g) Expenses from The Department of Treasury and Depreciation and amortisation Finance (DTF) in their Annual transactions Financial Statements, disclose on All infrastructure assets, buildings, plant and equipment and other non- Expenses are recognised as they are behalf of the State as the sponsoring employer, the net defined benefit cost current physical assets (excluding incurred and reported in the financial items under operating leases and, year to which they relate. related to the members of these plans as an administered liability. Refer to assets held-for-sale) that have a Employee expenses DTF’s Annual Financial Statements finite useful life are depreciated. for more detailed disclosures in Depreciation is generally calculated These expenses include all costs relation to these plans. on a straight-line basis, at rates that related to employment (other than allocate the asset’s value, less any superannuation which is accounted The amount recognised in the estimated residual value, over its for separately) including wages and comprehensive operating statement estimate useful life. salaries, fringe benefits tax, leave in respect of defined benefit entitlements, redundancy payments superannuation plans represents The estimated useful lives, residual and workcover premiums. the accrual of benefits during the values and depreciation methods are reporting period. Note 17 provides reviewed at the end of each annual Superannuation – further details. reporting period, and adjustments State superannuation made where appropriate. defined benefit plans The following are typical estimated The amount recognised in the useful lives for the different asset comprehensive operating statement classes for current and prior years. in relation to employer contributions for members of defined benefit superannuation plans is simply the employer contributions that are paid assET CaTEgOry ExpECTEd usEFul lIFE (yEars) or payable to these plans during the Buildings at fair value 22-80 reporting period. The level of these contributions will vary depending Infrastructure at fair value 20-185 upon the relevant rules of each plan, Plant and equipment at fair value and is based upon actuarial advice. Furniture and fittings 10 Computer equipment 3-4 Field plant and scientific equipment 10-30 Office machines and equipment 5 IT infrastructure 4 Leasehold improvements at fair value 5-15 Leased vehicles at fair value 3* Cultural assets at fair value 20-100
* Leased vehicles are depreciated on a straight line basis to their residual value (cost less estimated projected market value) over the period of the lease – 3 years.
29 Department of Transport Annual Report 2010-11 Land which is considered to have an Capital asset charge Contributions in the form of services indefinite life, are not depreciated. are only recognised when a fair value The capital asset charge is calculated Depreciation is not recognised in can be reliably determined and the on the budgeted carrying amount of respect of these assets because services would have been purchased applicable non financial physical assets. their service potential has not, in if not donated. any material sense, been consumed Other operating expenses during the reporting period. (h) Other economic flows Other operating expenses generally Intangible produced assets with represent the day to day running costs included in net result finite useful lives are amortised as incurred in normal operations. Other economic flows measure the an expense from transactions on a change in volume or value of assets systematic (typically straight-line) Payments to service providers and transport agencies or liabilities that do not result from basis over the asset’s useful life. transactions. These include: Amortisation begins when the asset is Payments to service providers and available for use, that is, when it is in transport agencies are recognised as Net gain/(loss) on the location and condition necessary an expense in the reporting period non-financial assets for it to be capable of operating in the in which they are paid or payable. manner intended by management. Net gain/(loss) on non-financial assets They include transactions such as and liabilities includes realised and grants, subsidies and other transfer The consumption of intangible non- unrealised gains and losses as follows: payments to other agencies, such produced assets with finite useful lives as VicRoads. is not classified as a transaction, but Revaluation gains/(losses) of non-current physical assets as amortisation and is included in the Supplies and services net result as an other economic flow. Refer to accounting policy Supplies and services expenses are provided in Note 1(l) – Property, plant Intangible assets with indefinite recognised as an expense in the and equipment. useful lives are not depreciated or reporting period in which they are amortised but are tested annually for incurred. The carrying amounts of any Disposal of non-financial assets impairment.(Refer Note 1(k)) inventories held for distribution are expensed when distributed. Any gain or loss on the sale of non Interest expense financial assets is recognised at the Bad and doubtful debts date that control of the asset is passed Interest expense is recognised as to the buyer and is determined after expenses in the period in which they Refer to Note 1(j) Impairment of deducting from the proceeds the are incurred. Refer to glossary of financial assets. carrying value of the asset at that time. terms in Note 29 for an explanation of interest expense items. Fair value of assets and services Amortisation of non-produced provided free of charge or for a intangible assets Grants and other transfers nominal consideration Refer to Note 1(g) Depreciation Grants and other transfers to third Contributions of resources provided and Amortisation. parties (other than contribution to free of charge or for nominal owners) are recognised as an expense consideration are recognised at their in the reporting period in which they fair value when the transferee obtains are paid or payable. They include control over them, irrespective of transactions such as grants for whether restrictions or conditions community and social benefits which are imposed over the use of the are disclosed within the supplies and contributions, unless received from services category. another government department or agency as a consequence of a restructuring of administrative arrangements. In the latter case, such a transfer will be recognised at its carrying value.
30 Note 1. Summary of significant accounting policies for the financial year ended 30 June 2011 (continued)
Impairment of non-financial assets It is deemed that, in the event of the Grants from Commonwealth loss of an asset, the future economic Government and other jurisdictions Intangible assets with indefinite useful benefits arising from the use of lives including those that are not yet the asset will be replaced unless a The department’s administered grants available for use are tested annually specific decision to the contrary has mainly comprise funds provided by for impairment and whenever there been made. The recoverable amount the Commonwealth to assist the is an indication that the asset may for most assets is measured at the State Government in meeting general be impaired. All other assets are higher of depreciated replacement or specific delivery obligations, assessed annually for indications of cost and fair value less costs to sell. primarily for the purpose of aiding in impairment, except for: Recoverable amount for assets held the financing of the operations of the recipient, capital purposes and/or for »assets arising from construction primarily to generate net cash inflows on passing to other recipients. The contracts (refer Note 1(k)) is measured at the higher of the present value of future cash flows department also receives grants for If there is an indication of impairment, expected to be obtained from the on passing from other jurisdictions. the assets concerned are tested as to asset and fair value less costs to sell. The Department does not have control whether their carrying value exceeds over these grants, and income is their possible recoverable amount. Other gains/(losses) from other not recognised in the department’s Where an asset’s carrying value economic flows financial statements. Administered exceeds its recoverable amount, the grants are disclosed in the schedule Other gains/(losses) from other difference is written off as an other of Administered Items in Note 21. economic flows include the gains or economic flow, except to the extent losses from: that the write down can be debited to (j) Financial Instruments an asset revaluation surplus amount » transfer of amounts from the applicable to that class of asset. reserves and/or accumulated surplus Financial instruments arise out of to net result due to disposal or contractual agreements that give rise If there is indication that there has derecognition or reclassification; and to a financial asset of one entity and a been a change in the estimate of an financial liability or equity instrument asset’s recoverable amount since the » the revaluation of the present value of of another entity. Due to the nature last impairment loss was recognised, the long service leave liability due to of the department’s activities, the carrying amount shall be changes in the bond interest rates. certain financial assets and financial increased to its recoverable amount. liabilities arise under statute rather This reversal of the impairment loss (i) Administered income than a contract. Such financial assets occurs only to the extent that the and financial liabilities do not meet asset’s carrying amount does not Fines and regulatory fees the definition of financial instruments exceed the carrying amount that The department collects fines in AASB 132 Financial Instruments: would have been determined, net of and fees on behalf of the Crown Presentation. For example, statutory depreciation or amortisation, if no and does not gain control over the receivable arising from taxes, fines impairment loss had been recognised assets arising from these items. and penalties do not meet the in prior years. Consequently no income is recognised definition of financial instruments as in the department’s financial they do not arise under contract. statements but disclosed as income Where relevant, for note disclosure in the schedule of administered items purposes, a distinction is made (refer Note 21). between those financial assets and financial liabilities that meet the definition of financial instruments in accordance with AASB 132 and those that do not.
The following refers to financial instruments unless otherwise stated.
31 Department of Transport Annual Report 2010-11 Categories of non-derivative (k) Financial assets Investments and other financial instruments financial assets Cash and deposits Loans and Receivables Investments are classified in the Cash and deposits, including cash following categories: Loans and receivables are financial equivalents, comprise cash on hand instrument assets with fixed and and cash at bank, deposits at call »financial assets at fair value determinable payments that are not and those highly liquid investments through profit and loss quoted on an active market. These with an original maturity of three »loans and receivables, and assets are initially recognised at fair months or less, which are held for value plus any directly attributable the purpose of meeting short term »available-for-sale financial assets transaction costs. Subsequent cash commitments rather than for The classification depends on the to initial measurement, loans investment purposes, and which purpose for which the investments and receivables are measured at are readily convertible to known were acquired. Management amortised cost using the effective amounts of cash and are subject to an determines the classification of its interest method, less any impairment. insignificant risk of changes in value. investments at initial recognition. Loans and receivables category Receivables includes cash and deposits Any interest earned on the (refer to Note 1(k)), term deposits Receivables consist of: financial asset is recognised in the with maturity greater than three comprehensive operating statement »Statutory receivables, which months, trade receivables, loans as a transaction. includes predominantly amounts and other receivables, but not owing from the Victorian statutory receivables. Impairment of financial assets Government and GST input tax credits recoverable; and The department assesses at the end Financial Liabilities at of each reporting period whether amortised cost »Contractual receivables, which there is objective evidence that a Financial instrument liabilities are includes mainly debtors in relation financial asset or group of financial initially recognised on the date they to goods and services and accrued assets is impaired. Objective evidence are originated. They are initially investment income. includes financial difficulties of the measured at fair value plus any debtor, default payments, debts which Receivables that are contractual are directly attributable transaction costs. are more than 60 days overdue, and classified as financial instruments. Subsequent to initial recognition, changes in debtor credit ratings. Statutory receivables are not these financial instruments are classified as financial instruments. Bad and doubtful debts for financial measured at amortised cost assets are assessed on a regular with any difference between the A provision for doubtful receivables basis. Those bad debts considered initial recognised amount and the is made when there is objective as written off by mutual consent are redemption value being recognised in evidence that the debts may not be classified as a transaction expense. profit and loss over the period of the collected and bad debts are written Bad debts not written off by mutual interest-bearing liability, using the off when identified (refer to Note 1(k) consent and the allowance for effective interest rate method. Impairment of financial assets). doubtful receivables are classified Financial instrument liabilities as ‘other economic flows’ in the net measured at amortised cost include result. The only bad and doubtful all payables, deposits held and debts are reported as administered advances received, and interest- in Note 21. bearing arrangements other than those designated at fair value profit or loss.
32 Note 1. Summary of significant accounting policies for the financial year ended 30 June 2011 (continued)
In assessing impairment of statutory The fair value of cultural assets Restrictive nature of cultural (non-contractual) financial assets and collection, heritage assets and and heritage assets, Crown land which are not financial instruments, other non-financial physical assets and infrastructure the department applies professional that the State intends to preserve judgement in assessing materiality because of their unique historical, Certain agencies hold cultural assets, and using estimates, averages cultural or environmental attributes, heritage assets, Crown land and and computational shortcuts measured at the replacement cost infrastructure, which are deemed in accordance with AASB 136 of the asset less, where applicable, worthy of preservation because of the Impairment of assets. accumulated depreciation (calculated social rather than financial benefits on the basis of such cost to reflect the they provide to the community. (l) Non-financial assets already consumed or expired future Consequently, there are certain economic benefits of the asset) and limitations and restrictions imposed Property, plant and equipment any accumulated impairment. These on their use and/or disposal. All non-financial physical assets policies and any legislative limitations Non-financial physical assets are measured initially at cost and and restrictions imposed on their constructed by the Department subsequently revalued at fair value use and/or disposal may impact their The cost of non-current physical less accumulated depreciation fair value. assets constructed by the Department and impairment. The fair value of infrastructure includes the cost of all materials used The initial cost for non-financial systems and plant, equipment and in construction, direct labour on the physical assets under a finance lease vehicles, is normally determined by project, and an appropriate proportion (refer to Note 1(n)) is measured at reference to the asset’s depreciated of variable and fixed overheads. amounts equal to the fair value of replacement cost. For plant, Revaluations of non-financial the leased asset or, if lower, the equipment and vehicles, existing physical assets present value of the minimum lease depreciated historical cost is generally a reasonable proxy for depreciated payments, each determined at the Non current financial assets are replacement cost because of the short inception of the lease. Where an measured at fair value in accordance lives of the assets concerned. asset is received for no or nominal with FRD 103D issued by the Minister consideration, the cost is the asset’s The cost of constructed non-financial for Finance. A full revaluation fair value at the date of acquisition. physical assets includes the cost of normally occurs every five years, based on the asset’s government Non-current physical assets such as all materials used in construction, direct labour on the project, and an purpose classification, but may Crown land, and heritage assets are occur more frequently if fair value measured at fair value with regard to appropriate proportion of variable and fixed overheads. assessments indicate material the property’s highest and best use changes in values. Independent after due consideration is made for Where an asset is received for no valuers are generally used to conduct any legal or constructive restrictions or nominal consideration, the cost is these scheduled revaluations. Certain imposed on the asset, public the asset’s fair value at the date infrastructure assets are revalued announcements or commitments of acquisition. using specialised advisors. Any made in relation to the intended use interim revaluations are determined of the asset. Theoretical opportunities For the accounting policy on in accordance with the requirements that may be available in relation to impairment of non-financial physical of the FRDs. the asset are not taken into account assets, refer to impairment of non- until it is virtually certain that the financial assets under Note 1(h). Revaluation increases or decreases restrictions will no longer apply. arise from differences between an Leasehold Improvements asset’s carrying value and fair value. The cost of a leasehold improvement is capitalised as an asset and depreciated over the remaining term of the lease or the estimated useful life of the improvements, whichever is the shorter.
33 Department of Transport Annual Report 2010-11 Net revaluation increases (where the Expenditure on research activities (m) Liabilities carrying amount of a class of assets is is recognised as an expense in the increased as a result of a revaluation) period in which it is incurred. Borrowings are recognised in ‘Other economic Borrowings are initially measured flows – other movements in equity’ An internally generated intangible asset at fair value, being the cost of the and accumulated in equity under the arising from development (or from interest bearing liabilities, net of revaluation surplus. However, the net the development phase of an internal transaction costs. (Refer to Note 1(n)). revaluation increase is recognised project) is recognised if, and only if, all of the following are demonstrated: in the net result to the extent that it Subsequent to initial recognition, reverses a net revaluation decrease in (a) the technical feasibility of borrowings are measured at respect of the same class of property, completing the intangible asset amortised cost with any difference plant and equipment previously so that it will be available for use between the initial recognised amount recognised as an expense (other or sale; and the redemption borrowing being economic flows) in the net result. recognised in the net result over the (b) an intention to complete the period of the borrowing using the Net revaluation decreases are intangible asset and use or sell it; effective interest method. recognised immediately as other economic flows in the net result, except (c) the ability to use or sell the Payables that the net revaluation decrease is intangible asset; recognised in ‘Other economic flows Payables consist of: – other movements in equity’ to the (d) the intangible asset will »Contractual payables, such as extent that a credit balance exists in generate probable future accounts payable, and unearned the asset revaluation surplus in respect economic benefits; income including deferred income of the same class of property, plant from concession arrangements. (e) the availability of adequate and equipment. The net revaluation Accounts payable represent technical, financial and other decrease recognised in ‘other economic liabilities for goods and services resources to complete the flows – other economic movements provided to the Department prior development and to use or sell the in equity’ reduces the amount to the end of the financial year that intangible asset; and accumulated in equity under the asset are unpaid, and arise when the revaluation surplus. (f) the ability to measure reliably Department becomes obliged to make future payments in respect Revaluation increases and decreases the expenditure attributable of the purchase of those goods and relating to individual assets within to the intangible asset during services; and a class of property, plant and its development. equipment, are offset against one »Statutory payables, such as goods Intangible assets are measured at another within that class but are not and services tax and fringe benefits cost less accumulated amortisation offset in respect of assets in different tax payables. classes. Any asset revaluation and impairment, and are amortised surplus is not normally transferred to on a straight line basis over their Contractual payables are classified accumulated funds on derecognition useful lives as follows: Capitalised as financial instruments and of the relevant asset. software development costs three – categorised as financial liabilities five years. at amortised cost (refer to Note Intangible assets 1(j)). Statutory payables are Other non-financial assets recognised and measured similarly Purchased intangible assets are initially to contractual payables, but are not measured at cost. Subsequently, Prepayments classified as financial instruments intangible assets with finite useful lives Other non-financial assets include and not included in the category are carried at cost less accumulated prepayments which represent of financial liabilities at amortised amortisation and accumulated payments in advance of receipt of cost, because they do not arise impairment losses. Costs incurred goods or services or that part of from a contract. subsequent to initial acquisition are expenditure made in one accounting capitalised when it is expected that period covering a term extending additional future economic benefits will beyond that period. flow to the Department.
34 Note 1. Summary of significant accounting policies for the financial year ended 30 June 2011 (continued)
Provisions Those liabilities that are not This non current LSL liability is expected to be settled within 12 measured at present value. Any Provisions are recognised when the months are recognised in the gain or loss following revaluation department has a present obligation, provision for employee benefits of the present value of non-current the future sacrifice of economic as current liabilities, measured LSL liability is recognised as a benefits is probable, and the amount of at present value of the amounts transaction, except to the extent the provision can be measured reliably. expected to be paid when the that a gain or loss arises due to The amount recognised as a liability is liabilities are settled using the changes in bond interest rates the best estimate of the consideration remuneration rate expected to for which it is then recognised as required to settle the present apply at the time of settlement. an other economic flow (refer to Note 1(h) Other economic flows obligation at the end of the reporting (ii) Long service leave period, taking into account the included in net result). risks and uncertainties surrounding Liability for long service leave (iii) Termination benefits the obligation. Where a provision (LSL) is recognised in the provision is measured using the cashflows for employee benefits. Termination benefits are payable estimated to settle the present when employment is terminated obligation, its carrying amount is the Unconditional LSL is disclosed before the normal retirement present value of those cashflows, in the notes to the financial date, or when an employee using a discount rate that reflects the statements as a current liability accepts voluntary redundancy time value of money and risks specific even where the Department does in exchange for these benefits. to the provision. not expect to settle the liability The Department recognises within 12 months because it will termination benefits when it is When some or all economic benefits not have the unconditional right demonstrably committed to either required to settle a provision are to defer the settlement of the terminating the employment of expected to be received from a third entitlement should an employee current employees according to party, the receivable is recognised take leave within 12 months. a detailed formal plan without as an asset if it is virtually certain possibility of withdrawal or The components of this current that recovery will be received and providing termination benefits LSL liability are measured at: the amount of receivable can be as a result of an offer made to measured reliably. »nominal value – component encourage voluntary redundancy. Employee benefits that the Department expects to Benefits falling due more than settle within 12 months; and 12 months after the end of the Provision is made for benefits reporting period are discounted to »present value – component that accruing to employees in respect of present value. wages and salaries, annual leave the Department does not expect and long service leave for services to settle within 12 months. (iv) Employee benefits on-costs rendered to the reporting date. Conditional LSL is disclosed in the Employee benefits on-costs (i) Wages and salaries, annual leave notes to the financial statements such as payroll tax, workers and sick leave as a non-current liability. There is compensation and superannuation an unconditional right to defer the are recognised separately from the Liabilities for wages and salaries, settlement of the entitlement until provision for employee benefits. annual leave and accumulating the employee has completed the sick leave are recognised in the requisite years of service. (n) Leases provision for employee benefits, classified as current liabilities. A lease is a right to use an asset for Those liabilities which are expected an agreed period of time in exchange to be settled within 12 months of for payment. the reporting period, are measured at their nominal values.
35 Department of Transport Annual Report 2010-11 Leases are classified at their inception (o) Equity Receivables and payables are stated as either operating or finance leases inclusive of the amount of GST based on the economic substance Contributions by owners receivable or payable. The net amount of the agreement so as to reflect of GST recoverable from, or payable Additions to net assets which have the risks and rewards incidental to to, the taxation authority is included been designated as contributions by ownership. Leases of property, plant with other receivables or payables in owners are recognised as contributed and equipment are classified as the balance sheet. capital. Other transfers that are in the finance infrastructure leases whenever nature of contributions or distributions the terms of the lease transfer Cash flows are presented on a have also been designated as substantially all the risks and rewards gross basis. The GST components contributions by owners. of ownership from the lessor to the of cash flows arising from investing or financing activities which are lessee. All other leases are classified Transfers of net assets arising recoverable from, or payable to the as operating leases. from administrative restructurings taxation authority, are presented as are treated as distributions to or Finance leases operating cash flow. contributions by owners. Department as lessee (p) Commitments (s) Events after the At the commencement of the lease reporting period term, finance leases are initially Commitments are disclosed at their recognised as assets and liabilities nominal value and inclusive of the Assets, liabilities, income or expenses at amounts equal to the fair value of goods and services tax (GST) payable. arise from past transactions or other the lease property or, if lower, the In addition, where it is considered past events. Where the transactions present value of the minimum lease appropriate and provides additional result from an agreement between payment, each determined at the relevant information to users, the net the department and other parties, inception of the lease. The lease asset present values of significant individual the transactions are only recognised is depreciated over the shorter of the projects are stated. when the agreement is irrevocable estimated useful life of the asset or at or before the end of the reporting the term of the lease. (q) Contingent assets and period. Adjustments are made to amounts recognised in the financial Minimum finance lease payments contingent liabilities statements for events which occur are apportioned between reduction after the reporting period and before of the outstanding lease liability, Contingent assets and contingent liabilities are not recognised in the the date the financial statements and periodic finance expense which are authorised for issue, where is calculated using the interest rate balance sheet, but are disclosed by way of a note and, if quantifiable, those events provide information implicit in the lease and charged about conditions which existed in the directly to the comprehensive are measured at nominal value. Contingent assets and liabilities are reporting period. Note disclosure operating statement. Contingent is made about events between the rentals associated with finance leases presented inclusive of GST receivable or payable respectively. end of the reporting period and the are recognised as an expense in the date the financial statements are period in which they are incurred. (r) Accounting for the authorised for issue where the events Operating leases relate to conditions which arose after Goods and Services the end of the reporting period and Department as lessee Tax (GST) which may have a material impact on the results of subsequent reporting Operating lease payments, including Income, expenses and assets are periods. (Refer Note 27). any contingent rentals, are recognised recognised net of the amount of as an expense in the comprehensive associated GST, unless the GST operating statement on a straight incurred is not recoverable from line basis over the lease term, except the taxation authority. In this case it where another systematic basis is recognised as part of the cost of is more representative of the time acquisition of the asset or as part of pattern of the benefits derived from the expense. the use of the leased asset. The leased asset is not recognised in the balance sheet.
36 Note 1. Summary of significant accounting policies for the financial year ended 30 June 2011 (continued)
(t) New accounting standards and interpretations
Certain new AASs have been published that are not mandatory for the 30 June 2011 reporting period. DTF assesses the impact of these new standards and advises the Department of their applicability and early adoption where applicable.
As at 30 June 2011, the following standards and interpretations (applicable to Departments) had been issued but were not mandatory for the financial year ending 30 June 2011. The Department has not early adopted these standards.
applicable for annual reporting periods Impact on departmental standard/Interpretation summary beginning or ending on financial statements
AASB 9 Financial instruments This standard simplifies Beginning 1 Jan 2013 Detail of impact is still requirements for the classification being assessed. and measurement of financial assets resulting from Phase 1 of the IASB’s project to replace IAS 39 Financial Instruments: Recognition and Measurement (AASB 139 Financial Instruments: Recognition and Measurement).
AASB 124 Related Party Government related entities Beginning 1 Jan 2011 Preliminary assessment Disclosures (Dec 2009) have been granted partial suggests the impact is exemption with certain insignificant. However, the disclosure requirements. department is still assessing the detailed impact and whether to early adopt.
AASB 1053 Application This standard establishes a Beginning 1 July 2013 The Victorian Government of Tiers of Australian differential financial reporting is currently considering Accounting Standards framework consisting of two the impacts of Reduced tiers of reporting requirements Disclosure Requirements for preparing general purpose (RDRs) for certain public financial statements. sector entities and has not decided if RDRs will be implemented to the Victorian Public Sector.
AASB 2009-11 Amendments This standard gives effect to Beginning 1 Jan 2013 Detail of impact is still to Australian Accounting consequential changes arising being assessed. Standards arising from AASB 9 from the issuance of AASB 9. [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 and 1038 and Interpretations 10 and 12]
AASB 2009-12 Amendments This standard amends AASB 8 Beginning 1 Jan 2011 The amendments only apply to Australian Accounting to require an entity to exercise to those entities to whom Standards [AASB 5, 8, 108, 110, judgement in assessing whether AASB 8 applies, which are 112, 119, 133, 137, 139, 1023 a government and entities known for-profit entities except and 1031 and Interpretations 2, to be under the control of that for-profit government 4, 16, 1039 and 1052] government are considered a departments. Detail of impact single customer for purposes is still being assessed. of certain operating segment disclosures. This standard also makes numerous editorial amendments to other AASs.
37 Department of Transport Annual Report 2010-11 applicable for annual reporting periods Impact on departmental standard/Interpretation summary beginning or ending on financial statements
AASB 2009-14 Amendments Amendments to Interpretation Beginning 1 Jan 2011 Expected to have no to Australian Interpretation – 14 arise from the issuance of significant impact. Prepayments of a Minimum prepayments of a minimum Funding Requirement [AASB funding requirement. Interpretation 14]
AASB 2010-2 Amendments This standard makes Beginning 1 July 2013 Does not affect financial to Australian Accounting amendments to many Australian measurement or Standards arising from Reduced Accounting Standards, including recognition, so is not Disclosure Requirements Interpretations, to introduce expected to have any reduced disclosure requirements to impact on financial result the pronouncements for application or position. May reduce by certain types of entities. some note disclosures in financial statements.
AASB 2010-4 Further This standard makes numerous Beginning 1 Jan 2011 No significant impact on the Amendments to Australian improvements designed to financial statements. Accounting Standards arising enhance the clarity of standards. from the Annual Improvements Project [AASB 1, AASB 7, AASB 101 & AASB 134 and Interpretation 13]
AASB 2010-5 Amendments This amendment contains Beginning 1 Jan 2011 No significant impact on the to Australian Accounting editorial corrections to a range of financial statements. Standards [AASB 1, 3, 4, 5, 101, Australian Accounting Standards 107, 112, 118, 119, 121, 132, 133, and Interpretations, which 134, 137, 139, 140, 1023 & 1038 includes amendments to reflect and Interpretations 112, 115, changes made to the text of IFRSs 127, 132 & 1042] by the IASB.
AASB 2010-6 Amendments This amendment adds and Beginning 1 July 2011 This may impact on to Australian Accounting changes disclosure requirements departments and public Standards – Disclosures on about the transfer of financial sector entities as it creates Transfers of Financial Assets assets. This includes the nature additional disclosure for [AASB 1 & AASB 7] and risk of the financial assets. transfers of financial assets. Detail of impact is still being assessed.
38 Note 1. Summary of significant accounting policies for the financial year ended 30 June 2011 (continued)
applicable for annual reporting periods Impact on departmental standard/Interpretation summary beginning or ending on financial statements
AASB 2010-7 Amendments These amendments are in relation Beginning 1 Jan 2013 This amendment may have to Australian Accounting to the introduction of AASB 9. an impact on departments Standards arising from AASB and public sector bodies 9 (December 2010) [AASB 1, 3, as AASB 9 is a new 4, 5, 7, 101, 102, 108, 112, 118, standard and it changes the 120, 121, 127, 128, 131, 132, requirements of numerous 136, 137, 139, 1023 & 1038 and standards. Detail of impact is Interpretations 2, 5, 10, 12, 19 still being assessed. & 127]
AASB 2011-2 Amendments The objective of this amendment Beginning 1 July 2013 The Victorian Government to Australian Accounting is to include some additional is currently considering Standards arising from the disclosure from the Trans-Tasman the impacts of Reduced Trans-Tasman Convergence Convergence Project and to reduce Disclosure Requirements Project – Reduced Disclosure disclosure requirements for (RDRs) and has not decided Requirements [AASB 101 & entities preparing general purpose if RDRs will be implemented AASB 1054] financial statements under to Victorian Public Sector. Australian Accounting Standards – Reduced Disclosure Requirements.
AASB 2011-3 Amendments This amends AASB 1049 to Beginning 1 July 2012 This amendment provides to Australian Accounting clarify the definition of the ABS clarification to users on the Standards – Orderly Adoption GFS Manual, and to facilitate version of the GFS Manual to of Changes to the ABS the adoption of changes to be used and what to disclose GFS Manual and Related the ABS GFS Manual and if the latest GFS Manual Amendments [AASB 1049] related disclosures. is not used. No impact on performance measurements will occur.
39 Department of Transport Annual Report 2010-11 Note 2. Departmental (controlled) outputs
A description of departmental outputs Dependable and accessible public These outputs support the performed during the year ended transport services will reduce department’s priorities to integrate 30 June 2011, and the objectives of reliance on private motor vehicles transport and land-use planning, these outputs, are summarised below. and reduce social exclusion caused support the Victorian economy by lack of transport options. These with an effective and resilient Output Groups outputs support the department’s transport system, and improve the priority of supporting the Victorian sustainability of Victorian transport. Transport Safety and Security economy with an effective and These department priorities make a These outputs will deliver initiatives resilient transport system, and make significant contribution to achieving and regulatory activities that will a significant contribution to achieving the government’s goals of growing improve safety on Victoria’s roads, the government’s goal of growing and and linking all of Victoria and the public transport and waterways. linking all of Victoria. efficient use of natural resources. These outputs also include activities Integrated Transport Planning, The government is committed aimed at maintaining the security Delivery and Management to providing a safe and reliable of critical transport infrastructure transport system that contributes These outputs deliver strategic policy and ensuring the preparedness to to a prosperous, inclusive and guidance to better integrate transport respond to emergencies involving environmentally responsible and land-use planning. Integrated this infrastructure. state. These outputs deliver a transport and land use planning combination of transport services and These outputs will make the identifies current and future access infrastructure that aim to improve transport system safer by reducing needs – for people to employment, the efficient movement of people the frequency, severity and cost of goods to markets and services and goods throughout Victoria. incidents and accidents. This supports to businesses – and ensures that They also encompass activities the department’s priority of ensuring land-use and transport development to better integrate transport and safety for all transport users, and are coordinated to best address land use planning, improve safety, makes a significant contribution to these needs. These outputs deliver increase reliability, cater for growth achieving the government’s goal of strategic transport infrastructure and support the development of building friendly, confident and improvements to increase the sustainable transport options. safe communities. capacity of the transport system and increase the efficiency of existing Public Transport Services transport infrastructure to improve Departmental Outcomes These outputs oversee the delivery of the movement of people, goods and 1. Improving transport network quality, sustainable and cost effective services throughout Victoria. These capacity and efficiency to passenger train, tram and bus outputs deliver projects to develop address current and future services to metropolitan Melbourne sustainable transport solutions, transport demand. and regional Victoria, in partnership including promoting sustainable with operators and in accordance with travel modes and increasing the use 2. Improving public transport contractual arrangements. These of public transport. An integrated and punctuality and reliability. outputs also include the provision sustainable transport system will of specialist transport services that sustain economic growth and support 3. Improving personal safety on the provide mobility for those unable to social inclusion and improved quality of transport network. use other forms of public transport. life, while conserving the environment for current and future generations. 4. Improving regional and rural transport infrastructure and services.
40 Note 2. Departmental (controlled) outputs (continued)
Schedule A – Controlled income and expenses for the financial year ended 30 June 2011
Integrated Transport Transport safety public Transport planning, delivery and security services and Management Total dOT 2011 2010 2011 2010 2011 2010 2011 2010 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
CONTINuINg OpEraTIONs
INCOME FrOM TraNsaCTIONs Output appropriations 143,639 158,500 3,125,001 2,782,465 1,487,382 1,520,559 4,756,022 4,461,524 Special – – 1,138 1,303 – – 1,138 1,303 appropriations Sale of services 5,594 2,994 571,938 380,969 – – 577,532 383,963 Grants and other 5 304 137,246 130,514 16,395 2,760 153,646 133,578 income transfers Interest – – 2,383 2,032 – – 2,383 2,032 Fair value of assets and services received free of charge 12 265 365 15 167 63 544 343 or for nominal consideration Other current income 297 312 24,394 5,036 454 407 25,145 5,755 Total income from 149,547 162,375 3,862,465 3,302,334 1,504,398 1,523,789 5,516,410 4,988,498 transactions
ExpENsEs FrOM TraNsaCTIONs Payments to service providers and (86,223) (106,239) (3,651,424) (3,167,391) (1,324,233) (1,318,563) (5,061,880) (4,592,193) transport agencies Supplies and services (29,937) (26,473) (92,081) (98,609) (52,354) (53,245) (174,372) (178,327) Employee expenses (28,874) (26,946) (44,146) (42,435) (41,902) (38,838) (114,922) (108,219) Depreciation and amortisation (3,765) (2,180) (25,461) (14,396) (4,553) (3,327) (33,779) (19,903)
Interest expense (67) (79) (63) (95) (32,194) (31,945) (32,324) (32,119)
Capital asset charge (669) (458) (24,778) (24,043) (3,109) (1,371) (28,556) (25,872)
Fair value of assets and services provided free of charge (9) (2) (274) (15) (134) (65) (416) (82) or for nominal consideration Total expenses from (149,544) (162,377) (3,838,227) (3,346,984) (1,458,479) (1,448,479) (5,446,250) (4,956,715) transactions Net result from transactions (net 3 (2) 24,238 (44,650) 45,919 76,435 70,160 31,783 operating balance)
41 Department of Transport Annual Report 2010-11 Schedule A – Controlled income and expenses for the financial year ended 30 June 2011 (continued)
Integrated Transport Transport safety public Transport planning, delivery and security services and Management Total dOT 2011 2010 2011 2010 2011 2010 2011 2010 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
OThEr ECONOMIC FlOws INCludEd IN NET rEsulT Net gains/(losses) on (33) (259) (93) (16,559) 26 (4,620) (100) (21,438) non-financial assets
Other gains/ (losses) from other 24 (50) 34 (76) 46 (95) 104 (221) economic flows
Total other economic flows (9) (309) (59) (16,635) 72 (4,715) 4 (21,659) included in net result Net result (6) (311) 24,179 (61,285) 45,991 71,720 70,164 10,124
OThEr ECONOMIC FlOws – OThEr NON-OwNEr ChaNgEs IN EquITy Changes in physical asset – 27 – 19,161 (5) 272,835 (5) 292,023 revaluation surplus Total other economic flows – – 27 – 19,161 (5) 272,835 (5) 292,023 other non-owner changes in equity
Comprehensive (6) (284) 24,179 (42,124) 45,986 344,555 70,159 302,147 result
Schedule B – Controlled assets and liabilities as at 30 June 2011
assETs Financial assets 59,802 46,159 655,286 605,263 543,001 494,344 1,258,089 1,145,766 Non-financial assets 23,455 23,672 1,208,681 1,214,199 218,522 189,485 1,450,658 1,427,356 Total assets 83,257 69,831 1,863,967 1,819,462 761,523 683,829 2,708,747 2,573,122
lIabIlITIEs Liabilities 18,832 20,610 1,100,744 1,147,980 393,634 262,678 1,513,210 1,431,268 Total liabilities 18,832 20,610 1,100,744 1,147,980 393,634 262,678 1,513,210 1,431,268 Net assets 64,425 49,221 763,223 671,482 367,889 421,151 1,195,537 1,141,854
42 Note 3. Restructuring of administrative arrangements
(i) Transfer of the portland Trawler wharf to dOT
On 1 July 2010, the Portland Trawler Wharf was transferred from the Department of Sustainability and Environment (DSE) to the Department of Transport. The transfer coincided with the transfer of responsibilities for Victorian local ports to the department, previously overseen by DSE.
As at 1 July 2010, the assets detailed below were transferred to DOT as contributed capital.
2011 Note $’000
assETs Infrastructure at fair value 9 11,751 Net assets transferred to dOT 11,751
(ii) Transfer of the ‘drawings Management system’ function from vicTrack to dOT
On 5 July 2010, the Drawing Management System (DMS) Function was transferred from VicTrack to the Department. Major responsibilities of the DMS function are managing over 350,000 technical drawings relating to infrastructure on behalf of the State and to ensure they are CAD compliant.
As at 5 July 2010, the assets detailed below were transferred to DOT as contributed capital.
2011 Note $’000
assETs Intangible assets (software) 10 2,480 Net assets transferred to dOT 2,480
43 Department of Transport Annual Report 2010-11 (iii) Transfer of Integrated Transport and land use planning function to dpCd
On 31 December 2010, the government transferred the Integrated Transport and Land Use Planning function from the Department of Transport to the Department of Planning and Community Development (DPCD).
2011 $’000
assETs Funds in State Administration Unit 112
lIabIlITIEs Annual Leave (20) Long Service Leave payable within 12 months (75) Long Service Leave payable after 12 months (17) Net assets transferred to dpCd –
(iv) Transfer of dOT’s pool vehicles to the shared services provider
The government issued an Administrative Order to restructure some of its activities in relation to the provision of shared services. This restructure resulted in the department relinquishing certain corporate service functions to the Shared Service Provider (SSP). The SSP provides facilities, accommodation, car pool management and library services across 11 government departments and four agencies (Victoria Police, VicRoads, Environmental Protection Authority and State Revenue Office). This transfer is a further stage of this original declaration and in this instance on 1 June 2011, the department transferred 19 motor vehicles (‘pool cars’) to the SSP.
2011 $’000
assETs Motor Vehicles 380
lIabIlITIEs Borrowings – Motor Vehicle under VicFleet Lease (386) Net liabilities transferred to ssp (6)
44 Note 3. Restructuring of administrative arrangements (continued)
(v) dissolution of southern Cross station authority on 31 July 2009
The Southern Cross Station Authority (SCSA) was wound up on 31 July 2009.
The responsibilities of SCSA were transferred between DOT, V/Line and MetLink. The assets and liabilities of the authority were transferred to DOT.
As at 31 July 2009, the assets and liabilities detailed below were transferred to DOT as contributed capital.
Transfer from the southern Cross station authority to the department of Transport
2010 Note $’000
assETs Cash and deposits 5,714 Debtors 1,573 Receivables 10,343 Land 9 132,280 Buildings 9 535,611 Infrastructure 9 19,289 Property, plant and equipment 9 479 Cultural asset 9 875 Assets under construction 9 7,997
lIabIlITIEs Creditors (11,232) Deposits repayable (12) Accrued expenses (1,619) Provision for annual leave – current (46) Provision for long service leave – current (9) Finance lease liability – non-current (367,577) Provision for long service leave – non-current (79) Net assets transferred to dOT 333,588
45 Department of Transport Annual Report 2010-11 (vi) Transfer from the department of Transport to the shared service provider
The government issued an Administrative Order to restructure some of its activities in relation to the provision of shared services. This restructure resulted in the department relinquishing certain corporate service functions to the Shared Service Provider (SSP). The SSP provides facilities, accommodation, car pool management and library services across 11 government departments and four agencies (Victoria Police, VicRoads, Environmental Protection Authority and State Revenue Office).
2010 $’000
assETs Funds in State Administration Unit 95
lIabIlITIEs Annual leave payable within 12 months (42) Long service leave payable after 12 months (53) Net assets transferred to ssp –
46 Note 4. Summary of compliance with annual parliamentary and special appropriations
(a) Summary of compliance with annual parliamentary appropriations
The following table discloses the details of the various annual parliamentary appropriations received by the Department for the year. In accordance with accrual output-based management procedures ‘Provision for outputs’ and ‘Additions to net assets’ are disclosed as ‘controlled’ activities of the Department. Administered transactions are those that are undertaken on behalf of the State over which the Department has no control or discretion.
appropriations provision for outputs additions to net assets 2011 2010 2011 2010 $’000 $’000 $’000 $’000
CONTrOllEd
apprOprIaTION aCT Annual Appropriation 4,271,219 3,884,742 1,334,917 1,852,602 Payments from advance from Treasurer 7,835 61,513 – 23,447
FINaNCIal MaNagEMENT aCT 1994 Section 29 Appropriation of Certain Receipts 333,686 581,430 266,399 30,190 Section 30 Transfer between Appropriations 8,142 18,770 (8,142) (18,770) Section 32 Unused Appropriations (from prior years) 239,371 176,590 432,518 133,035 Section 35 (Temporary Advances) – – 2,550 – Total parliamentary authority 4,860,253 4,723,045 2,028,242 2,020,504
appropriations applied 4,756,022 4,461,524 1,610,467 1,357,086
variance (i) 104,231 261,521 417,775 663,418
(i) The variance primarily relates to agreed changes in the scheduling of committed projects.
(b) Summary of compliance with special appropriations
authority purpose appropriations applied 2011 2010 $’000 $’000
OpEraTINg Section 213A (4) of the Transport Refund to public transport operators for administrative 1,138 1,303 (Compliance and Miscellaneous) Act 1983 costs associated with ticket infringements
47 Department of Transport Annual Report 2010-11 Note 5. Income from transactions
2011 2010 $’000 $’000
(a) salE OF sErvICEs Sale of transport services (i) 577,532 383,963 Total sale of services 577,532 383,963
(b) graNTs Specific purpose for on passing 134,569 129,998 Other specific purpose 19,077 3,580 Total grants 153,646 133,578
(C) OThEr INCOME Sales to other government agencies 1,535 1,387 Other income 23,610 4,368 Total other income 25,145 5,755
(i) From 30 November 2009 DOT receives the full farebox collection across all transport modes. Previously DOT was in receipt of only a portion of farebox revenue.
48 Note 6. Expenses from transactions
2011 2010 $’000 $’000
(a) payMENTs TO sErvICE prOvIdErs aNd TraNspOrT agENCIEs Rail system operation and related services (1,591,230) (1,347,876) Grants for capital asset charge (1,175,430) (1,060,877) Total rail services (2,766,660) (2,408,753) Road services (1,330,644) (1,311,056) Bus services (858,524) (754,803) Payments to other agencies (106,052) (117,582) Total payments to service providers and transport agencies (5,061,880) (4,592,193)
(b) supplIEs aNd sErvICEs Multi Purpose Taxi Program (49,128) (49,377) Grants for community and social benefits (38,449) (26,861) Administration and information technology (37,543) (22,229) Accommodation (16,045) (16,318) Insurance, legal and internal audit fees (6,099) (4,888) Other (27,108) (58,654) Total supplies and services (174,372) (178,327)
(C) EMplOyEE ExpENsEs Salaries and wages (82,428) (79,015) Annual leave and long services leave expense (13,363) (12,870) Superannuation (excluding salary sacrifice) (9,360) (8,294) Other on-costs (fringe benefits tax, payroll tax and work cover levy) (9,771) (8,040) Total employee expenses (114,922) (108,219)
49 Department of Transport Annual Report 2010-11 2011 2010 Note $’000 $’000
(d) dEprECIaTION aNd aMOrTIsaTION
Depreciation and amortisation of property, plant and equipment Buildings (12,134) (9,227) Infrastructure assets (9,157) (1,495) Plant and equipment (692) (589) Leasehold improvements (4,000) (6,120) Leased vehicles (930) (760) Cultural assets (523) (175) Total for property, plant and equipment 9 (27,436) (18,366)
Amortisation Intangible assets (6,343) (1,537) Total for intangibles 10 (6,343) (1,537) Total depreciation and amortisation (33,779) (19,903)
(E) FaIr valuE OF assETs aNd sErvICEs prOvIdEd FrEE OF ChargE
Assets and services provided free of charge Department of Treasury and Finance 3(iv), 9 (380) – Department of Planning and Community Development (37) – Transport Ticketing Authority 9 – (32) Department of Sustainability and Environment 9 – (30) Department of Human Services 9 – (20) Total assets provided free of charge or for nominal consideration (417) (82) Total fair value of assets and services provided free of charge or for nominal consideration (417) (82)
50 Note 7. Other economic flows included in net result
2011 2010 (a) Net gain/(loss) on non-financial assets Note $’000 $’000
grOss prOCEEds FrOM salE OF prOpErTy, plaNT aNd EquIpMENT Leased vehicles 992 684 Total proceeds 992 684
grOss dIspOsals OF prOpErTy, plaNT aNd EquIpMENT Land – (61) Buildings – (4) Infrastructure – (237) Plant and equipment (44) (165) Leasehold improvements – (48) Leased vehicles (979) (698) Previous project expenditure capitalised (58) (4,424) Total disposals of property, plant and equipment 9 (1,081) (5,637)
grOss dIspOsals OF INTaNgIblE assETs Software (11) – Total disposals of intangible assets 10 (11) –
rEvaluaTION wrITE-dOwNs Land – (151) Freehold buildings – (16,118) Infrastructure – (216) Total revaluation write-downs – (16,485) Total net gain/(loss) on non-financial assets (100) (21,438)
2011 2010 (b) Other gains/(losses) from other economic flows Note $’000 $’000
Net gain/(loss) arising from revaluation of long service leave liability (a) 104 (221) Total other gains/(losses) from other economic flows 104 (221)
(a) Revaluation gain/(loss) due to changes in bond rates.
51 Department of Transport Annual Report 2010-11 Note 8. Receivables
2011 2010 $’000 $’000
CurrENT rECEIvablEs
Contractual Sale of services 609 952 Other receivables (i) 41,500 28,425 42,109 29,377
Statutory Amounts owing from Victorian Government (ii) 467,510 539,440 GST input tax credit recoverable from the ATO 64,880 46,626 532,390 586,066
Total current receivables 574,499 615,443
NON-CurrENT rECEIvablEs
Statutory Amounts owing from Victorian Government (i) 4,729 4,571 Total non-current receivables 4,729 4,571
Total receivables 579,228 620,014
(i) The average credit period on sales of goods is 30 days. No interest is charged on receivables. (ii) The amounts recognised from Victorian Government represent funding for all commitments incurred through the appropriations and are drawn from the Consolidated Fund as the commitments fall due.
Nature and extent of risk arising from receivables Please refer to note 14(c) for the nature and extent of credit risk arising from contractual receivables.
Ageing analysis of receivables Please refer to note 14(b) for the ageing analysis of receivables.
52 Note 9. Property, plant and equipment
Classification by ‘Transportation and Communications’ purpose group – movements in carrying amounts. 2011 2010 $’000 $’000
Land at fair value At cost of acquisition 2,871 1,750 At valuation 2010 360,755 360,755 Total land 363,626 362,505
Buildings at fair value At valuation 2010 522,197 522,197 Less: accumulated depreciation (12,134) – Total buildings 510,063 522,197
Infrastructure at fair value At cost of acquisition 67 45 At carrying amount 12,014 263 At valuation 2010 157,110 157,110 Less: accumulated depreciation (9,170) (13) Total infrastructure 160,021 157,405
Plant and equipment at fair value At valuation 2010 5,556 5,629 Less: accumulated depreciation (4,258) (3,744) Total plant and equipment 1,298 1,885
Leasehold improvement at fair value At cost of acquisition 37,924 37,516 Less: accumulated depreciation (13,542) (9,543) Total buildings leasehold 24,382 27,973
53 Department of Transport Annual Report 2010-11 2011 2010 $’000 $’000
Leased vehicles at fair value At cost of acquisition 4,630 4,514 Less: accumulated depreciation (1,210) (1,303) Total leased vehicles 3,420 3,211
Cultural assets at fair value At valuation 2010 1,875 1,754 Less: accumulated depreciation (523) – Total cultural assets 1,352 1,754
Assets under construction at cost Infrastructure 347,468 314,974 Total property under construction 347,468 314,974 Net carrying amount of property, plant and equipment 1,411,630 1,391,904
54 Note 9. Property, plant and equipment (continued)
Classification by ‘Transportation and Communications’ purpose group – movements in carrying amounts
plant and leasehold leased Cultural assets under land buildings Infrastructure equipment improvement vehicles assets construction Total Note $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Carrying amount at 1 July 2009 77,664 2,403 9,682 1,416 33,066 3,388 – 255,813 383,432 Additions 1,749 – 71 521 1,013 1,283 – 56,088 60,725 Disposals/write offs 7(a) (61) (4) (237) (165) (48) (698) – (4,424) (5,637) Acquisitions through administrative restructures 3 (v) 132,280 535,611 19,289 479 – – 875 7,997 696,531 Relinquishments through administrative restructures 3(iv), 6(e) – – – – – – – – – Net revaluation increments/decrements 20(c) 151,024 9,613 130,048 414 – – 924 – 292,023 Revaluation write-downs 7(a) (151) (16,118) (216) – – – – – (16,485) Depreciation/amortisation expense 6(d) – (9,227) (1,495) (589) (6,120) (760) (175) – (18,366) Assets received as contributed capital – – – – – – – – – Assets provided as contributed capital – – – – – – – – – Asset received free of charge – – 263 – – 80 – – 343 Assets provided free of charge 6(e) – – – – – (82) – – (82) Transfers between classes – (81) – (191) 62 – 130 (500) (580) Carrying amount at 30 June 2010 362,505 522,197 157,405 1,885 27,973 3,211 1,754 314,974 1,391,904
Additions 1,126 – 22 149 409 2,462 – 34,088 38,256 Disposals/write offs 7(a) – – – (44) – (979) – (58) (1,081) Acquisitions through administrative restructures 3(i) – – 11,751 – – – – – 11,751 Relinquishments through administrative restructures 3(iv), 6(e) – – – – – (380) – – (380) Net revaluation increments/decrements 20(c) (5) – – – – – – – (5) Revaluation write-downs 7(a) – – – – – – – – – Depreciation/amortisation expense 6(d) – (12,134) (9,157) (692) (4,000) (930) (523) – (27,436) Assets received as contributed capital – – – – – – – – – Assets provided as contributed capital – – – – – – – (1,535) (1,535) Asset received free of charge – – – – – 36 121 – 157 Assets provided free of charge 6(e) – – – – – – – – – Transfers between classes – – – – – – – – – Carrying amount at 30 June 2011 363,626 510,063 160,021 1,298 24,382 3,420 1,352 347,468 1,411,630
55 Department of Transport Annual Report 2010-11 Classification by ‘Transportation and Communications’ purpose group – movements in carrying amounts
plant and leasehold leased Cultural assets under land buildings Infrastructure equipment improvement vehicles assets construction Total Note $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Carrying amount at 1 July 2009 77,664 2,403 9,682 1,416 33,066 3,388 – 255,813 383,432 Additions 1,749 – 71 521 1,013 1,283 – 56,088 60,725 Disposals/write offs 7(a) (61) (4) (237) (165) (48) (698) – (4,424) (5,637) Acquisitions through administrative restructures 3 (v) 132,280 535,611 19,289 479 – – 875 7,997 696,531 Relinquishments through administrative restructures 3(iv), 6(e) – – – – – – – – – Net revaluation increments/decrements 20(c) 151,024 9,613 130,048 414 – – 924 – 292,023 Revaluation write-downs 7(a) (151) (16,118) (216) – – – – – (16,485) Depreciation/amortisation expense 6(d) – (9,227) (1,495) (589) (6,120) (760) (175) – (18,366) Assets received as contributed capital – – – – – – – – – Assets provided as contributed capital – – – – – – – – – Asset received free of charge – – 263 – – 80 – – 343 Assets provided free of charge 6(e) – – – – – (82) – – (82) Transfers between classes – (81) – (191) 62 – 130 (500) (580) Carrying amount at 30 June 2010 362,505 522,197 157,405 1,885 27,973 3,211 1,754 314,974 1,391,904
Additions 1,126 – 22 149 409 2,462 – 34,088 38,256 Disposals/write offs 7(a) – – – (44) – (979) – (58) (1,081) Acquisitions through administrative restructures 3(i) – – 11,751 – – – – – 11,751 Relinquishments through administrative restructures 3(iv), 6(e) – – – – – (380) – – (380) Net revaluation increments/decrements 20(c) (5) – – – – – – – (5) Revaluation write-downs 7(a) – – – – – – – – – Depreciation/amortisation expense 6(d) – (12,134) (9,157) (692) (4,000) (930) (523) – (27,436) Assets received as contributed capital – – – – – – – – – Assets provided as contributed capital – – – – – – – (1,535) (1,535) Asset received free of charge – – – – – 36 121 – 157 Assets provided free of charge 6(e) – – – – – – – – – Transfers between classes – – – – – – – – – Carrying amount at 30 June 2011 363,626 510,063 160,021 1,298 24,382 3,420 1,352 347,468 1,411,630
56 Note 10. Intangible assets
CapITalIsEd sOFTwarE wOrk IN prOgrEss dEvElOpMENT (sOFTwarE) TOTal 2011 2010 2011 2010 2011 2010 Note $’000 $’000 $’000 $’000 $’000 $’000
Gross carrying amount Opening balance 46,766 28,347 11,924 21,349 58,690 49,696 Additions – 5,779 8,414 5,779 8,414 Disposal (11) – – – (11) – Transfers through 3(ii) 2,480 – – – 2,480 – administrative restructures Transfers between classes – 18,419 – (17,839) – 580 Closing balance 49,235 46,766 17,703 11,924 66,938 58,690
Accumulated amortisation and impairment Opening balance (26,002) (24,465) – – (26,002) (24,465) Amortisation expense 6(d) (6,343) (1,537) – – (6,343) (1,537) Closing balance (32,345) (26,002) – – (32,345) (26,002) Net book value at the 16,890 20,764 17,703 11,924 34,593 32,688 end of the financial year
57 Department of Transport Annual Report 2010-11 Note 11. Payables
2011 2010 $’000 $’000
CurrENT payablEs
Contractual Creditors and accruals (i) 431,871 458,403 Trust fund creditors and accruals 374,783 293,442 Unearned/prepaid income 15,393 22,843 822,047 774,688
Statutory Taxes payable 4,850 4,425
Total current payables 826,897 779,113
(i) The average credit period for creditors is 30 days, a period in which no interest is charged.
(a) Maturity analysis of payables Please refer to note 14(c) for the ageing analysis of contractual payables.
(b) Nature and extent of risk arising from payables Please refer to note 14(d) for interest rate contractual exposure.
58 Note 12. Borrowings
2011 2010 Note $’000 $’000
CurrENT bOrrOwINgs Motor vehicle lease liability (i) 19 1,541 1,349 Advance from Victorian Government to cover the net 15,739 11,055 GST payable by Department of Transport at 30 June (ii) Total current borrowings 17,280 12,404
NON-CurrENT bOrrOwINgs Motor vehicle lease liability (i) 19 1,921 1,910 Advance from Victorian Government for VicRoads 8,467 148 traffic signal retrofit program (ii)
Southern Cross Station Transport Interchange 19 373,262 370,654 Facility liability Total non-current borrowings 383,650 372,712 Total borrowings 400,930 385,116
(i) Secured by the assets leased. Finance leases are effectively secured as the rights to the leased assets revert to the lessor in the event of default. (ii) Advance from Victorian Government is non-interest bearing.
(a) Maturity analysis of borrowings Please refer to note 14(c) for the maturity analysis of borrowings.
(b) Nature and extent of risk arising from borrowings Please refer to note 14(c) for the nature and extent of risks arising from borrowings.
59 Department of Transport Annual Report 2010-11 Note 13. Provisions
2011 2010 Note $’000 $’000
CurrENT prOvIsIONs Employee benefits – annual leave (i) Unconditional and expected to settle within 12 months (ii) 5,038 4,494 Unconditional and expected to settle after 12 months (iii) 3,812 3,489 Employee benefits – long service leave (i) Unconditional and expected to settle within 12 months (ii) 2,319 2,207 Unconditional and expected to settle after 12 months (iii) 10,385 10,194 Employee benefits – bonus provision (i) 1,600 1,416 13(a) 23,154 21,800 Provisions related to employee benefit on-costs Unconditional and expected to settle within 12 months (ii) 1,179 1,086 Unconditional and expected to settle after 12 months (iii) 2,332 2,282 13(a) 3,511 3,368 Other provisions Provision for the employee entitlements of rail operators (iv) 427 2,396 Provision for fringe benefits tax 177 174 13(b) 604 2,570 Total current provisions 27,269 27,738
NON-CurrENT prOvIsIONs Employee benefits and related on-costs Employee benefits (v) 13(a) 4,105 3,963 Employee benefits on-costs 13(a) 624 607 4,729 4,570 Other provisions Provision for the employee entitlements of rail operators (iv) 13(b) 252,310 231,517 Provision for dismantling, removal and restoration 13(b) 1,075 1,075 of building leasehold Provision for public liability claims (vi) 13(b) – 2,139 253,385 234,731 Total non-current provisions 258,114 239,301 Total provisions 285,383 267,039
(i) Provisions for employee benefits consist of amounts for annual leave, long service leave and bonus payments accrued by employees, not including on-costs. (ii) The amounts disclosed are nominal amounts. (iii) The amounts disclosed are discounted to present values. (iv) The State provides a guarantee for the employee entitlements of the employees of the public transport operators. (v) The amounts disclosed represents long service leave entitlements for employees with less than seven years of continuous service discounted to present value. (vi) This provision was for all active claims of public liability on public transport infrastructure. This item is now recognised in the Department’s contingent liabilities (Note 16).
60 Note 13. Provisions (continued)
(a) Employee benefits and related on-costs
2011 2010 $’000 $’000
Current provisions for employee benefits Annual leave entitlements 8,850 7,983 Unconditional long service leave entitlements 12,704 12,401 Accrued performance incentive 1,600 1,416 Total current provisions for employee benefits 23,154 21,800
Non-current provisions for employee benefits Conditional long service leave entitlements 4,105 3,963 Total non-current provisions for employee benefits 4,105 3,963 Total employee benefits 27,259 25,763
On-costs Current on-costs 3,511 3,368 Non-current on-costs 624 607 Total on-costs 4,135 3,975 Total employee benefits provisions and related on-costs 31,394 29,738
61 Department of Transport Annual Report 2010-11 (b) Movement in provisions
rail Employee operators’ public dismantling, Fringe Employee bonus benefits employee liability removal and benefits benefits provision on-costs benefits claims restoration tax Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Opening balance at 24,347 1,416 3,975 233,913 2,139 1,075 174 267,039 1 July 2010
Additional provisions 1,498 184 188 20,330 – – 702 22,902 recognised Reductions arising from payments/other sacrifices of – – – (1,506) – – (699) (2,205) future economic benefits Reductions resulting from re-measurement or – – – – (2,139) –– (2,139) settlement without cost Unwinding of discount and effect of changes in the (89) – (13) –– –– (102) discount rate Reductions due to (97) – (15) –– –– (112) transfers out
Closing balance at 25,659 1,600 4,135 252,737 – 1,075 177 285,383 30 June 2011
Current 21,554 1,600 3,511 427 – – 177 27,269 Non-current 4,105 – 624 252,310 – 1,075 – 258,114 25,659 1,600 4,135 252,737 – 1,075 177 285,383
62 Note 14. Financial instruments
(a) Financial risk Details of the significant accounting The department’s main financial risks policies and methods adopted, include credit risk, liquidity risk, and management objectives including the criteria for recognition, interest rate risk. The Department and policies the basis of measurement, and the manages these financial risks in basis on which income and expenses accordance with its financial risk The department’s principal financial are recognised, with respect to each management policy. instruments comprise of: class of financial asset and financial »cash and term deposits liability above are disclosed in Note 1 to The department uses different methods the financial statements. to measure and manage the different »receivables (excluding statutory risks to which it is exposed. Primary receivables) The main purpose in holding financial responsibility for the identification and »payables (excluding statutory instruments is to prudentially manage management of financial risks rests payables the department’s financial risks within with the financial risk management the governments policy parameters. committee of the department. »borrowings.
Categorisation of financial instruments(i)
Contractual financial Contractual financial assets – loans liabilities at and receivables amortised cost Total 2011 Note $’000 $’000 $’000
Contractual financial assets Cash and funds held in trust 18(a) 678,861 – 678,861 Receivables Sale of services 8 609 – 609 Other receivables 8 41,500 – 41,500 Total contractual financial assets (ii) 720,970 – 720,970
Contractual financial liabilities Payables 11 Creditors and accruals – 431,871 431,871 Trust fund creditors and accruals – 374,783 374,783 Unearned/prepaid income – 15,393 15,393 Borrowings 12 Finance lease liability – motor vehicle – 3,462 3,462 Advance from Victorian Government to cover – 15,739 15,739 GST payable Advance from Victorian Government for – 8,467 8,467 VicRoads traffic signal retrofit program Finance lease liability – Southern Cross – 373,262 373,262 Station Transport Interchange Facility Total contractual financial liabilities(iii) – 1,222,977 1,222,977
(i) The amount disclosed represents the carrying amount for the reporting period. (ii) The amount of receivables disclosed excludes statutory receivables (i.e. amounts owing from Victorian Government and GST input tax credit recoverable). (iii) The amount of payables disclosed excludes statutory payables (i.e. GST output tax payable)
63 Department of Transport Annual Report 2010-11 Contractual financial Contractual financial assets – loans liabilities at and receivables amortised cost Total 2010 Note $’000 $’000 $’000
Contractual financial assets Cash and funds held in trust 18(a) 525,752 – 525,752 Receivables Sale of services 8 952 – 952 Other receivables 8 28,425 – 28,425 Total contractual financial assets (ii) 555,129 – 555,129
Contractual financial liabilities Payables 11 Creditors and accruals – 458,403 458,403 Trust fund creditors and accruals – 293,442 293,442 Unearned/prepaid income – 22,843 22,843 Borrowings 12 Finance lease liability – Motor Vehicle – 3,259 3,259 Advance from Victorian Government to cover – 11,055 11,055 GST payable
Advance from Victorian Government for – 148 148 VicRoads traffic signal retrofit program
Finance lease liability – Southern Cross – 370,654 370,654 Station Transport Interchange Facility
Total contractual financial liabilities (iii) – 1,159,804 1,159,804
(i) The amount disclosed represents the carrying amount for the reporting period. (ii) The amount of receivables disclosed excludes statutory receivables (i.e. amounts owing from Victorian Government and GST input tax credit recoverable). (iii) The amount of payables disclosed excludes statutory payables (i.e. GST output tax payable).
64 Note 14. Financial instruments (continued)
Net holding gain/(loss) on financial instruments by category
Total interest income/(expense) 2011 2010 $’000 $’000
Contractual financial assets Financial assets – loans and receivables 2,383 2,032 Total contractual financial assets 2,383 2,032
Contractual financial liabilities Financial liabilities at amortised cost (i) (32,324) (32,119) Total contractual financial liabilities (32,324) (32,119)
(i) Includes interest for Southern Cross Station Transport Interchange Facility.
(b) Credit risk exposures
Credit risk arises from the contractual financial assets of the department, which comprise cash and cash deposits, and non-statutory receivables. The department’s exposure to credit risk arises from the potential default of counter party on their contractual obligations resulting in financial loss to the department. Credit risk is measured at fair value and is monitored on a regular basis.
Credit risk associated with the department’s contractual financial assets is minimal because the main debtor is the Victorian Government. For debtors other than government, the department’s policy is to only deal with entities with high credit ratings, receivable amount from these debtors are immaterial.
In addition, the department does not engage in hedging for its contractual financial assets and mainly obtains financial assets that are of fixed interest rate except for cash assets, which are mainly cash at bank.
Provision of impairment for contractual financial assets is recognised when there is objective evidence that the department will not be able to collect a receivable. Objective evidence includes financial difficulties of the debtor, default payments, debts which are more than 60 days overdue, and changes in debtor credit ratings.
Except as otherwise detailed in the following table, the carrying amount of contractual financial assets recorded in the financial statements, net of any allowances for losses, represents the department’s maximum exposure to credit risk without taking account of the value of any collateral obtained.
65 Department of Transport Annual Report 2010-11 Credit quality of contractual financial assets that are neither past due nor impaired government agencies (aaa Other (aaa Other credit rating) credit rating) (not rated) Total 2011 $’000 $’000 $’000 $’000
Cash and funds held in trust 678,861 – – 678,861 Receivables Sale of services 609 – – 609 Other receivables 39,731 805 964 41,500 Total contractual financial assets 719,201 805 964 720,970
2010
Cash and funds held in trust 525,752 – – 525,752 Receivables Sale of services 952 – – 952 Other receivables 25,635 – 2,790 28,425 Total contractual financial assets 552,339 – 2,790 555,129
Contractual financial assets that are either past due or impaired There are no material financial assets which are individually determined to be impaired. Currently the department does not hold any collateral as security nor credit enhancements relating to any of its financial assets.
There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and they are stated at the carrying amounts as indicated. The following table discloses the ageing only of contractual financial assets that are past due but not impaired.
66 Note 14. Financial instruments (continued)
Ageing analysis of contractual financial assets(i)
Carrying Not past due and past due but not impaired Impaired amount not impaired less than 3 months financial 1 month 1-3 months -1 year 1-5 years assets 2011 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Contractual financial assets Cash and funds 678,861 678,861 – – – – – held in trust Receivables Sales of services 609 609 – – – – – Other 41,500 37,413 725 2,043 1,267 52 – receivables 720,970 716,883 725 2,043 1,267 52 –
2010
Contractual financial assets Cash and funds 525,752 525,752 – – – – – held in trust Receivables Sales of services 952 952 – – – – – Other 28,425 27,103 310 309 65 638 – receivables 555,129 553,807 310 309 65 638 –
(i) The carrying amounts disclosed here exclude statutory amounts (e.g. amount owing from Victorian Government and GST input tax credit recoverable).
67 Department of Transport Annual Report 2010-11 (c) Liquidity risk
Liquidity risk is the risk that the department would be unable to meet its financial obligations as and when they fall due. The department operates under the Government fair payments policy of settling financial obligations within 30 days and in the event of a dispute, making payments within 30 days from the date of resolution.
The department’s maximum exposure to liquidity risk is the carrying amount of financial liabilities as disclosed in the face of the balance sheet. The department continuously manages its liquidity risk through monitoring future cash flows.
The department’s exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of risk.
The following table discloses the contractual maturity analysis for the department’s contractual financial liabilities. Maturity analysis of contractual financial liabilities(i)
Maturity dates Carrying Nominal less than 1-3 3 months amount amount 1 month months -1 year 1-5 years 5+ years 2011 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Contractual financial liabilities Payables (ii) Creditors and accruals 431,871 431,872 431,660 179 32 – – Trust fund creditors and accruals 374,783 374,783 374,783 – – – – Unearned/prepaid income 15,393 15,393 15,393 – – – – Borrowings Finance lease liability – motor vehicle 3,462 3,757 236 225 1,260 2,036 – Advance from Victorian Government to 15,739 15,739 15,739 – – – – cover GST payable Advance from Victorian Government for 8,467 8,467 – – – 8,467 – VicRoads traffic signal retrofit program Finance lease liability – Southern Cross 373,262 979,527 – 7,500 22,780 128,883 820,364 Station Transport Interchange Facility 1,222,977 1,829,537 837,811 7,904 24,072 139,386 820,364
2010
Contractual financial liabilities Payables (ii) Creditors and accruals 458,403 458,403 458,270 90 43 – – Trust fund creditors and accruals 293,442 293,442 293,442 – – – – Unearned/prepaid income 22,843 22,843 22,843 – – – – Borrowings Finance lease liability – motor vehicle 3,259 3,537 313 177 1,035 2,013 – Advance from Victorian Government to 11,055 11,055 11,055 – – – – cover GST payable Advance from Victorian Government for 148 148 148 – – – – VicRoads traffic signal retrofit program Finance lease liability – Southern Cross 370,654 1,009,070 – 7,317 22,225 125,739 853,788 Station Transport Interchange Facility 1,159,804 1,798,498 786,071 7,584 23,303 127,752 853,788
(i) Maturity analysis is presented using the contractual undiscounted cash flows. (ii) The amount of payables disclosed excludes statutory payables (i.e. GST output tax payable).
68 Note 14. Financial instruments (continued)
(d) Market risk
The department’s exposures to market risk are primarily through interest rate risk. The department has no exposure to foreign currency risk. Objectives, policies and processes used to manage each of these risks are disclosed in the paragraphs below. Interest rate risk Fair value interest rate risk is the risk that the fair value of a financial instrument will fluctuate because of changes in market interest rates. The department does not hold any interest bearing financial instruments that are measured at fair value, therefore has nil exposure to fair value interest rate risk.
Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates.
The department has minimal exposure to cash flow interest rate risks through its cash and deposits, term deposits and bank overdrafts that are at floating rate.
The department manages this risk by mainly undertaking fixed rate or non-interest bearing financial instruments with relatively even maturity profiles, with only insignificant amounts of financial instruments at floating rate. Management has concluded for cash at bank and bank overdraft, as financial assets that can be left at floating rate without necessarily exposing the department to significant bad risk, management monitors movement in interest rates on a daily basis.
The carrying amounts of financial assets and financial liabilities that are exposed to interest rates are set out in the table below. Interest rate exposure of financial instruments
Interest rate exposure
weighted aver- Carrying Fixed variable Non-interest age effective amount interest rate interest rate bearing 2011 interest rate % $’000 $’000 $’000 $’000
Contractual financial assets Cash and cash deposits 4.77% 678,861 50,000 – 628,861 Receivable Sales of services 609 – – 609 Other receivables 41,500 – – 41,500 720,970 50,000 – 670,970
Contractual financial liabilities Payables Creditors and accruals 431,871 – – 431,872 Trust fund creditors and accruals 374,783 – – 374,783 Unearned/prepaid income 15,393 – – 15,393 Borrowings Finance lease liability – Motor Vehicle 6.83% 3,462 3,462 – – Advance from Victorian Government 15,739 – – 15,739 to cover GST payable Advance from Victorian Government for VicRoads traffic signal 8,467 – – 8,467 retrofit program Finance lease liability – Southern Cross Station Transport 8.65% 373,262 373,262 – – Interchange Facility 1,222,977 376,724 – 846,253
69 Department of Transport Annual Report 2010-11 Interest rate exposure
weighted aver- Carrying Fixed variable Non-interest age effective amount interest rate interest rate bearing 2010 interest rate % $’000 $’000 $’000 $’000
Contractual financial assets Cash and cash deposits 3.82% 525,752 50,000 – 475,752 Receivable Sales of services 952 – – 952 Other receivables 28,425 – – 28,425 555,129 50,000 – 505,129
Contractual financial liabilities Payables Creditors and accruals 458,403 – – 458,403 Trust fund creditors and accruals 293,442 – – 293,442 Unearned/prepaid income 22,843 – – 22,843 Borrowings Finance lease liability – Motor Vehicle 7.23% 3,259 3,259 – – Advance from Victorian Government to 11,055 – – 11,055 cover GST payable Advance from Victorian Government for 148 – – 148 VicRoads traffic signal retrofit program Finance lease liability – Southern Cross 8.65% 370,654 370,654 – – Station Transport Interchange Facility 1,159,804 373,913 – 785,891
Sensitivity disclosure analysis Taking into account past performance, future expectations and economic forecasts, the department believes there are no material movements ‘reasonably possible’ over the next 12 months: a parallel shift of +2.0 per cent and -2.0 per cent in market interest rates from year-end rates.
The impact on net operating result and equity for each category of financial instrument held by the department at year-end as presented to key management personnel, if the above movements were to occur, is immaterial for the 2010 and 2011 financial years. (e) Fair value of financial assets and liabilities
The department considers that the carrying amount of financial assets and financial liabilities recorded in the financial statements approximates their fair values.
(i) On-statement of balance sheet The net fair value of cash and cash equivalents and non-interest bearing monetary financial assets and financial liabilities of the department equals their carrying amounts.
(ii) Off-statement of balance sheet The department has potential financial assets and liabilities which may arise from certain contingencies disclosed in note 16. As explained in Note 16, contingent liabilities by definition are similar to a liability – the distinguishing feature being the uncertainty over the Government’s obligation.
70 Note 15. Commitments for expenditure
The following commitments have not been recognised as liabilities in the financial statements.
2011 2010 raIl sErvICE COMMITMENTs $’000 $’000
Payable: Not longer than one year 1,918,344 2,000,443 Longer than one year but not longer than five years 4,521,693 4,400,542 Longer than five years 1,911,509 2,466,260 rail commitments (inclusive of gsT) 8,351,546 8,867,245 Less: GST recoverable from the Australian Taxation Office (ATO) (759,231) (806,113) rail commitments (exclusive of gsT) 7,592,315 8,061,132
bus COMMITMENTs Non-discounted
Payable: Not longer than one year 949,355 911,601 Longer than one year but not longer than five years 2,978,284 3,078,156 Longer than five years 1,275,784 1,223,499 bus commitments (inclusive of gsT) 5,203,423 5,213,256 Less: GST recoverable from the Australian Taxation Office (ATO) (473,038) (473,932) bus commitments (exclusive of gsT) 4,730,385 4,739,324
CapITal ExpENdITurE COMMITMENTs
Payable: Not longer than one year 645,266 443,889 Longer than one year but not longer than five years 360,272 184,193 Longer than five years 13,265 – Capital expenditure commitments (inclusive of gsT) 1,018,803 628,082 Less: GST recoverable from the Australian Taxation Office (ATO) (92,618) (57,098) Capital expenditure commitments (exclusive of gsT) 926,185 570,984
71 Department of Transport Annual Report 2010-11 2011 2010 lEasE COMMITMENTs $’000 $’000
Minimum lease payments for non-cancellable leases payable: Within one year 16,891 18,573 Longer than one year but not longer than five years 72,532 69,790 Longer than five years 117,463 136,658 lease commitments (inclusive of gsT) 206,886 225,021 Less: GST recoverable from the Australian Taxation Office (ATO) (18,808) (20,456) lease commitments (exclusive of gsT) 188,078 204,565 Future minimum lease payments expected to be received in – – relation to non-cancellable sub-leases of operating leases
TOTal COMMITMENTs Total Commitments (inclusive of gsT) 14,780,658 14,933,604 Less: GST recoverable from the Australian Taxation Office (ATO) (1,343,695) (1,357,599) Total Commitments (exclusive of gsT) 13,436,963 13,576,005
Lease liabilities and non-cancellable operating lease commitments are disclosed in Note 19 to the financial statements
Rail and bus commitments The department has entered into a number of contracts with private operators to provide Victoria’s train, tram and bus services. Under the terms of these agreements, the department provides subsidies for transport services and capital commitments.
The partnership agreements with Connex and Yarra Trams ended on 29 November 2009. No provision of commitments has been made for these payments as they have either been fully paid or fully accounted for in the accruals.
In August 2009, the new Franchise Agreements with the new train and tram service operators (Metro Trains Melbourne – MTM) and Keolis Downer EDI – Yarra Trams (KDR) were signed. These contracts became effective from 30 November 2009. The initial franchise period for each of these agreements is eight years and is subject to a seven year extension conditional upon certain requirements being met.
A new Metlink Services Agreement has been signed. It has the same initial contract period as the new train and tram partnership agreements (i.e. eight years).
The partnership commitments with MTM and Yarra Trams (KDR) have therefore been calculated up to the end of the Initial Franchise Period with the exception of the rolling stock lease payments for which the Director is legally committed beyond the initial franchise period.
As per the franchise agreement the train and tram franchisees are entitled to a New Ticketing Revenue Guarantee Payment (in lieu of farebox revenue) which will continue to be paid until approximately a year after the last Metcard ticket is sold. The farebox revenue is currently being received in its entirety by the Department of Transport and will be distributed to franchisees from the date after the New Ticketing Guarantee Payment ceases to be paid.
72 Note 15. Commitments for expenditure (continued)
Metlink In addition, to the train and tram arrangements, an industry wide body, Metlink (responsible for providing and overseeing network-wide ticketing, marketing, information and complaints handling services) has been engaged. Metlink mainly subsumes the functions of the VicTrip and the Melbourne Passenger Growth Initiative. The farebox distribution function was transferred from Metlink to the Transport Ticketing Authority (TTA) on 1 July 2008. V/Line Passenger rail services V/Line Passenger rail services reverted to government control with a partnership arrangement established for the period from 1 October 2003 to 29 October 2006. The current franchise agreement has been further extended until 31 December 2012. To date no new V/Line Franchise Agreement has been signed.
V/Line Passenger commitments have been presented up until 31 December 2012 with the exception of rolling stock lease payments for which the Director is legally committed beyond 31 December 2012.
In addition to the above, payments are made by the department to the Transport Ticketing Authority (TTA) and VicTrack. The contract commitments to the TTA and Victrack have been calculated beyond 30 June 2011. Southern Cross Station Authority Legislation introduced into Parliament on 3 December 2008 provided for the abolition of the Southern Cross Station Authority (SCSA) and the transfer of its operative functions to the Secretary. The contract commitments to the SCSA, including the Public Private Partnership (PPP) arrangement, were novated to the Director of Public Transport and have been paid to Civic Nexus Pty Ltd from 31 July 2009. These commitments include operating and finance lease costs that extend until 30 June 2036. Capital expenditure commitments Capital expenditure commitments include contracts for capital projects relating to infrastructure and transport related projects separate and in addition to the commitments entered into through the partnership agreement. These commitments have been signed prior to 30 June 2011 and have established a legal and binding obligation on the Department to make future payments. Lease commitments Lease commitments include contracts for accommodation.
73 Department of Transport Annual Report 2010-11 Note 16. Contingent assets and liabilities
Contingent assets
Contingent assets arise from guarantees, indemnities and other forms of support provided to government departments and from legal disputes and other claims by government departments arising from a past event. Contingent assets by definition are similar to an asset with the distinguishing feature being the uncertainty over the department’s entitlement. The department has no contingent assets. Contingent liabilities
Contingent liabilities arise from guarantees, indemnities and other forms of support provided by the Government and from legal disputes and other claims against the Government arising from a past event. Contingent liabilities by definition are similar to a liability with the distinguishing feature being the uncertainty over the Government’s obligation. Unquantifiable contingent liabilities Public transport rail partnership agreements The Director of Public Transport (the Director), on behalf of the Crown, entered into partnership contractual arrangements with franchisees to operate metropolitan rail transport services in the State, operative from 30 November 2009 until 30 November 2017. The following summarises the major contingent liabilities arising from the arrangements. Contingent liabilities on early termination or expiry of partnership agreement Partnership assets To maintain continuity of services, at early termination or expiry of the franchise agreement, assets will revert to the Director or a successor. In the case of some assets, a reversion back to the Director would entail those assets being purchased. Unfunded Superannuation At the early termination or expiry of the contract, the Director will assume any unfunded superannuation amounts (apart from contributions the operator is required to pay over the contract term) to the extent that the State becomes the successor operator. Contingent liabilities arising from litigation The department is defending, on behalf of the State, a claim for damages relating to the development and management of an intermodal freight terminal in Gippsland in which the plaintiff is seeking damages of $40M. The information usually required by AASB 137 Provisions, Contingent Liabilities, and Contingent Assets is not disclosed on the grounds that it can be expected to prejudice seriously the outcome of the litigation. Contingent liabilities arising from property acquisition The state has compulsorily acquired a number of properties (residential and commercial) through the Land Acquisition and Compensation Act 1986 to facilitate delivery of the Regional Rail Link project. The Regional Rail Link Authority is anticipating future claims for compensation arising from the compulsory acquisition of these properties. Due to the uncertainty of the potential liability, particularly in relation to business disruption, it is not feasible to quantify these claims at this stage. Details and estimates of other contingent liabilities are as follows:
2011 2010 quaNTIFIablE CONTINgENT lIabIlITIEs $’000 $’000
Legal disputes 3,108 260 Personal injury 615 – 3,723 260
74 Note 17. Superannuation
Employees of the department are entitled to receive superannuation benefits and the department contributes to both defined benefit and defined contribution plans. The defined benefit plan(s) provides benefits based on years of service and final average salary.
The department does not recognise any defined benefit liability in respect of the plan(s) because the entity has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The Department of Treasury and Finance recognises and discloses the State’s defined benefit liabilities in its financial statements.
However, superannuation contributions paid or payable for the reporting period are included as part of employee benefits in the comprehensive operating statement of the Department.
The name and details of the major employee superannuation funds and contributions (including salary sacrifice contributions) made by the department are as follows:
paid contribution for the year Contributions outstanding at year end 2011 2010 2011 2010 Fund $’000 $’000 $’000 $’000
dEFINEd bENEFIT plaNs (i) State Superannuation Fund – revised and new 2,331 1,259 – – Transport Superannuation Fund 384 230 – – Victorian Water Superannuation Fund 66 40 – – Total defined benefit plans 2,781 1,529 – –
dEFINEd CONTrIbuTION plaNs VicSuper 10,650 10,024 – – Various other 3,605 2,777 – – Total defined contribution plans 14,255 12,801 – – Total superannuation plans 17,036 14,330 – –
(i) The basis for determining the level of contributions is determined by the various actuaries of the defined benefit superannuation plans.
75 Department of Transport Annual Report 2010-11 Note 18. Cash flow information
(a) Reconciliation of cash and cash equivalents
2011 2010 $’000 $’000
Cash at bank and on hand (1,374) (2,552) Funds held in trust – cash 630,235 478,304 – short term deposit 50,000 50,000 balance as per cash flow statement 678,861 525,752
The above figures are reconciled to cash at the end of the financial year as shown in the cash flow statement.
Due to the State of Victoria’s investment policy and government funding arrangements, the department does not hold a large cash reserve in its bank accounts. Cash received by the department from the generation of income is generally paid into the State’s bank account, known as the public account. Similarly, any departmental expenditure, including those in the form of cheques drawn by the department for the payment of goods and services to its suppliers and creditors are made via the public account. The process is such that, the public account would remit to the department the cash required for the amount drawn on the cheques. This remittance by the public account occurs upon the presentation of the cheques by the department’s suppliers or creditors.
The above funding arrangements often result in departments having a notional shortfall in the cash at bank required for payment of unpresented cheques at the reporting date. At 30 June 2011, cash at bank included the amount of a notional shortfall for the payment of unpresented cheques of $3.230 million (2010 – $2.716 million).
76 Note 18. Cash flow information (continued)
(b) Non-cash financing and investing activities
2011 2010 Note $’000 $’000
Acquisition of property, plant and equipment by means of finance leases 9 2,462 1,283 Total non-cash financing and investing activities 2,462 1,283
Acquisition of property, plant and equipment by means of finance leases The acquisitions relate to motor vehicles purchases under finance leases.
(c) Reconciliation of net result
2011 2010 Note $’000 $’000
Net result for the reporting period 70,164 10,124
NON-Cash MOvEMENTs Loss on disposal of non-current assets 7(a) 100 4,953 Depreciation and amortisation of non-current assets 6(d) 33,779 19,903 Fair value of assets and services received free of (127) (261) charge or for nominal consideration Loss on revaluation of non-current assets 7(a) – 16,485
MOvEMENTs IN assETs aNd lIabIlITIEs (NET OF rEsTruCTurINg) (Decrease)/increase in receivables 25,011 (35,787) (Decrease)/increase in prepayments (1,600) 828 (Decrease)/increase in payables 27,337 201,138 Increase in provisions 18,344 17,608 Net cash flows from/(used in) operating activities 173,008 234,991
77 Department of Transport Annual Report 2010-11 Note 19. Leases
Leasing arrangements Finance lease liabilities payable The Southern Cross Station Authority (Authority) was abolished on 31 July 2009. All future lease commitments of the Authority immediately before its abolition were vested in the Secretary to the Department of Transport on behalf of the State. This includes the leasing arrangements with Civic-Nexus Pty Ltd (CNPL).
On 2 July 2002 the Authority and CNPL entered into Services and Development Agreement (SDA) for the redevelopment of Southern Cross Station (station). Under the SDA, CNPL had to design, construct and commission the station. Construction commenced in September 2002 and on 1 August 2006, CNPL was granted a 30-year lease over the station and will have an obligation to operate and maintain the station, at the end of the 30 year period, these rights and obligations transferred back to the State.
The agreement is deemed a finance lease because it effectively transfers the risks and benefits incidental to ownership of the leased asset to the State.
DOT will make quarterly payments over a 30-year operating period which commenced from 27 April 2005. These future payments are subject to abatement in accordance with the terms and conditions of the SDA. The quarterly payments will reimburse CNPL for the capital cost (including financing costs) of constructing the station. The Net Present Value (NPV) is calculated using a discount rate of 8.65 per cent per annum and an inflation rate of 2.5 per cent per annum or actual inflation, whichever is higher.
It is important to note that currently the actual cash payment to CNPL is less than the deemed Finance Lease Interest Expense. In this instance the finance lease liability will continue to increase to approximately $378 million at the last quarter of 2014 when the cash payment overtake the value of the finance lease interest. Due to these increases in debt there is no requirement to recognise a current liability in this note. Other finance lease liabilities payable The other finance lease entered into by the department relates to motor vehicles with lease terms of three years or 60,000 kilometres, whichever occurs first.
78 Note 19. Leases (continued)
Minimum future present value of minimum lease payments * future lease payments 2011 2010 2011 2010 Note $’000 $’000 $’000 $’000
FINaNCE lEasE lIabIlITIEs payablE Not longer than one year 30,280 29,542 – – Longer than one year and not longer than five years 128,883 125,739 – – Longer than five years 820,364 853,788 373,262 370,654
OThEr FINaNCE lEasE lIabIlITIEs payablE Not longer than one year 1,720 1,526 1,541 1,349 Longer than one year and not longer than five years 2,037 2,012 1,921 1,910 Minimum lease payments* 983,284 1,012,607 376,724 373,913 Less future finance charges (606,560) (638,694) – – present value of minimum lease payments 376,724 373,913 376,724 373,913
Included in the financial statements as: Current borrowings 12 1,541 1,349 Non-current borrowings 12 375,183 372,564 Total interest bearing liabilities 376,724 373,913
* Minimum future lease payments include the aggregate of all lease payments and any guaranteed residual.
79 Department of Transport Annual Report 2010-11 Note 20. Equity
2011 2010 Note $’000 $’000
(a) CONTrIbuTIONs by OwNErs Balance at beginning of financial year 415,765 126,633 Capital transactions with the State in its capacity as owner arising from: Capital appropriations 4 1,610,467 1,357,086 Capital contributions to agencies within the (1,641,174) (1,401,542) Transport portfolio* Capital contributed upon restructuring 3(i), 14,231 333,588 administrative arrangements (ii), (v) balance at end of financial year 399,289 415,765
(b) aCCuMulaTEd surplus/(dEFICIT) Balance at beginning of financial year 362,021 351,882 Transfers from physical asset revaluation surplus – 15 Total comprehensive result for the reporting period 70,164 10,124 balance at end of financial year 432,185 362,021
(C) physICal assET rEvaluaTION surplus (i) Balance at beginning of financial year 364,068 72,060 Revaluation increments/(decrements) Land revaluation surplus (5) 151,024 Building revaluation surplus – 9,613 Infrastructure asset revaluation surplus – 130,048 Plant and equipment revaluation surplus – 414 Cultural asset revaluation surplus – 924 Total revaluation increments/(decrements) (5) 292,023 Transfers to accumulated surplus/(deficit) – (15) for disposal of asset balance at end of financial year** 364,063 364,068
(i) The physical asset revaluation surplus arises due to the net increase in the land, building leasehold, plant and equipment, infrastructure and cultural assets.
80 Note 20. Equity (continued)
2011 2010 Note $’000 $’000
*CapITal CONTrIbuTIONs TO agENCIEs wIThIN ThE TraNspOrT pOrTFOlIO: VicTrack (rail services) 1,267,607 887,910 VicRoads (road services) 307,707 433,911 Transport Ticketing Authority 39,500 51,700 Linking Melbourne Authority 26,360 28,021 Total capital contributions to agencies 1,641,174 1,401,542 within the Transport portfolio
**balaNCE OF EaCh physICal assET rEvaluaTION surplus aT ThE ENd OF FINaNCIal yEar Land revaluation surplus 221,816 221,822 Building revaluation surplus 10,861 10,861 Infrastructure asset revaluation surplus 130,048 130,048 Plant and equipment revaluation surplus 414 413 Cultural asset revaluation surplus 924 924 Total physical asset revaluation surplus 364,063 364,068
81 Department of Transport Annual Report 2010-11 Note 21. Administered (non-controlled) items
(a) Administered transactions
In addition to the specific departmental operations which are included in the financial statements (balance sheet, comprehensive operating statement and cash flow statement), the department administers or manages other activities and resources on behalf of the State. The transactions relating to these State activities are reported as administered items in this note. Administered transactions give rise to income, expenses, assets and liabilities and are determined on an accrual basis. Administered income includes taxes, fees and fines and the proceeds from the sale of administered surplus land and buildings. Administered assets include government incomes earned but yet to be collected. Administered liabilities include government expenses incurred but yet to be paid. Both the controlled departmental financial statements and these administered items are consolidated into the financial statements of the State.
82 Note 21. Administered (non-controlled) items (continued)
Integrated planning, public safety and security public Transport services delivery & Management TOTal
2011 2010 2011 2010 2011 2010 2011 2010 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
adMINIsTErEd INCOME FrOM TraNsaCTIONs Vehicle registration fees 912,900 853,633 – – – – 912,900 853,633 Stamp duty on vehicles and transfers 576,059 568,885 – – – – 576,059 568,885 Driver licences 52,482 34,860 – – – – 52,482 34,860 Natural disaster funding – – – – 34,185 48,114 34,185 48,114 CityLink concession deed income (refer Note 21(b)) – – – – 27,366 27,850 27,366 27,850 Regulatory fees 23,143 22,410 – – – – 23,143 22,410 Transfer and permit fees 22,637 21,928 – – – – 22,637 21,928 Statutory fines 6 4 11,284 15,618 – – 11,290 15,622 Sale of goods and services 1,505 2,678 4 4 4 15 1,513 2,697 Other income 55,536 3,273 8,769 17,557 927 683 65,232 21,513 Total administered income from transactions 1,644,268 1,507,671 20,057 33,179 62,482 76,662 1,726,807 1,617,512
adMINIsTErEd ExpENsEs FrOM TraNsaCTIONs Payments into the Consolidated Fund (1,644,268) (1,507,671) (11,989) (17,665) (220) (62,493) (1,656,477) (1,587,829) Assets provided free of charge to the – – – – (120,423) – (120,423) – Australian Rail Track Corporation Natural disaster expenditure – – – – (34,185) (48,114) (34,185) (48,114) CityLink concession deed expense (refer Note 21(b)) – – – – (31,241) (30,776) (31,241) (30,776) Other expenses – – (10,569) (6,788) – – (10,569) (6,788) Total administered expenses from transactions (1,644,268) (1,507,671) (22,558) (24,453) (186,069) (141,383) (1,852,895) (1,673,507) Total administered comprehensive result – – (2,501) 8,726 (123,587) (64,721) (126,088) (55,995)
adMINIsTErEd FINaNCIal assETs Cash and receivables(i) – – 24,102 25,804 – 1,514 24,102 27,318 Funds held in trust – – 1,610 1,515 6,903 6,080 8,513 7,595 Total administered financial assets – – 25,712 27,319 6,903 7,594 32,615 34,913 Total administered assets – – 25,712 27,319 6,903 7,594 32,615 34,913
adMINIsTErEd lIabIlITIEs Creditors and payables – – 4,609 3,715 3,991 5,394 8,600 9,109 Deferred CityLink redevelopment income (refer note 21 (b)) – – – – 334,465 330,589 334,465 330,589 Total administered liabilities – – 4,609 3,715 338,456 335,983 343,065 339,698 Total administered net assets – – 21,103 23,604 (331,553) (328,389) (310,450) (304,785)
(i) Administered receivables in 2010-11 comprises of $43.425 million (2010: $48.647million) less $19.447 million (2010: $21.330M) provision for doubtful debts.
83 Department of Transport Annual Report 2010-11 Integrated planning, public safety and security public Transport services delivery & Management TOTal
2011 2010 2011 2010 2011 2010 2011 2010 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 adMINIsTErEd INCOME FrOM TraNsaCTIONs Vehicle registration fees 912,900 853,633 – – – – 912,900 853,633 Stamp duty on vehicles and transfers 576,059 568,885 – – – – 576,059 568,885 Driver licences 52,482 34,860 – – – – 52,482 34,860 Natural disaster funding – – – – 34,185 48,114 34,185 48,114 CityLink concession deed income (refer Note 21(b)) – – – – 27,366 27,850 27,366 27,850 Regulatory fees 23,143 22,410 – – – – 23,143 22,410 Transfer and permit fees 22,637 21,928 – – – – 22,637 21,928 Statutory fines 6 4 11,284 15,618 – – 11,290 15,622 Sale of goods and services 1,505 2,678 4 4 4 15 1,513 2,697 Other income 55,536 3,273 8,769 17,557 927 683 65,232 21,513 Total administered income from transactions 1,644,268 1,507,671 20,057 33,179 62,482 76,662 1,726,807 1,617,512 adMINIsTErEd ExpENsEs FrOM TraNsaCTIONs Payments into the Consolidated Fund (1,644,268) (1,507,671) (11,989) (17,665) (220) (62,493) (1,656,477) (1,587,829) Assets provided free of charge to the – – – – (120,423) – (120,423) – Australian Rail Track Corporation Natural disaster expenditure – – – – (34,185) (48,114) (34,185) (48,114) CityLink concession deed expense (refer Note 21(b)) – – – – (31,241) (30,776) (31,241) (30,776) Other expenses – – (10,569) (6,788) – – (10,569) (6,788) Total administered expenses from transactions (1,644,268) (1,507,671) (22,558) (24,453) (186,069) (141,383) (1,852,895) (1,673,507) Total administered comprehensive result – – (2,501) 8,726 (123,587) (64,721) (126,088) (55,995) adMINIsTErEd FINaNCIal assETs Cash and receivables(i) – – 24,102 25,804 – 1,514 24,102 27,318 Funds held in trust – – 1,610 1,515 6,903 6,080 8,513 7,595 Total administered financial assets – – 25,712 27,319 6,903 7,594 32,615 34,913 Total administered assets – – 25,712 27,319 6,903 7,594 32,615 34,913 adMINIsTErEd lIabIlITIEs Creditors and payables – – 4,609 3,715 3,991 5,394 8,600 9,109 Deferred CityLink redevelopment income (refer note 21 (b)) – – – – 334,465 330,589 334,465 330,589 Total administered liabilities – – 4,609 3,715 338,456 335,983 343,065 339,698 Total administered net assets – – 21,103 23,604 (331,553) (328,389) (310,450) (304,785)
(i) Administered receivables in 2010-11 comprises of $43.425 million (2010: $48.647million) less $19.447 million (2010: $21.330M) provision for doubtful debts.
84 Note 21. Administered (non-controlled) items (continued)
(b) CityLink Concession Deed
2011 2010 summary of Citylink Concession deed income, expenses, assets and liabilities: $’000 $’000
CityLink concession notes income Concession notes revenue 27,366 25,778 Revaluation increment – 2,072 Total Citylink concession notes income 27,366 27,850
CITylINk ExpENsE CityLink concession notes deferred revenue revaluation increment (31,241) (30,776) Total Citylink expense (31,241) (30,776) Net income (3,875) (2,926)
CITylINk lIabIlITIEs Present value of deferred CityLink revenue (i) 334,465 330,589 Total Citylink liabilities 334,465 330,589
Cash FlOws rElaTINg TO CONCEssION NOTEs Goods and services tax collected 9,560 9,560 Goods and services tax paid to the Australian Taxation Office (9,560) (9,560) Net cash flow – –
rECONCIlIaTION OF ThE prEsENT valuE OF CITylINk rECEIvablEs Present value at the beginning of the year – 59,722 Payments received – (61,794) Revaluation increment – 2,072 present value at the end of the year – –
rECONCIlIaTION OF ThE prEsENT valuE OF dEFErrEd CITylINk rEvENuE Present value at the beginning of the year 330,589 325,590 Concession notes revenue (27,365) (25,777) Revaluation increment 31,241 30,776 present value at the end of the year 334,465 330,589
(i) The present value of deferred City Link revenue is the value of the concession notes revenue due to be received by the Victorian Government in future periods in accordance with the Melbourne City Link Concession Deed. (refer following page)
85 Department of Transport Annual Report 2010-11 Note 21. Administered (non-controlled) items (continued)
CityLink Contingent Assets Revenue Sharing from the Monash City Link West Gate CityLink Compensable Upgrade (VicRoads) Enhancement Claims (VicRoads) On 25 July 2006, CityLink Melbourne The Melbourne City Link Concession Limited (CML), Transurban Deed contains compensable Infrastructure Management Ltd enhancement provisions that enable (TIML) and the State entered into the the State to claim 50 per cent of M1 Corridor Redevelopment Deed. additional revenue derived by CityLink Melbourne Limited (CML) as a result Under the terms of this deed: of certain events that particularly »The State agreed to upgrade the benefit CityLink, including changes to Monash and West Gate Freeways, the adjoining road network. while CML agreed to upgrade the Compensable enhancement claims Southern Link section of City Link. have previously been lodged in respect »The State will become entitled to of works for improving traffic flows 50 per cent of the additional City on the Westgate Freeway (between Link revenue created by the Monash Lorimer and Montague Streets), and City Link West Gate upgrade after in the vicinity of the intersection of CML recovers its construction and the Bulla Road and the Tullamarine additional operating costs relating Freeway. The claims were lodged on to works on the Southern Link. 20 May 2005 and 29 September 2006 respectively, and are still outstanding. »The method used to calculate the additional City Link revenue generated from the upgrade will be based on comparing actual City Link revenue with agreed trends. »The calculation of the additional City Link revenue will take place on 30 June 2014.
86 Note 22. Annotated income agreements
The following is a listing of Section 29 annotated income agreements approved by the Treasurer. 2011 2010 $’000 $’000
usEr ChargEs, Or salEs OF gOOds aNd sErvICEs Replacement of registration label charge – 721
COMMONwEalTh spECIFIC purpOsE payMENTs Nation building road project grants 312,229 564,391 Nation building rail project grants 266,399 30,190 Interstate road transport registration charges 19,725 16,318 National reciprocal transport concessions 1,732 – Total annotated income agreements 600,085 611,620
Note 23. Trust account balances
The following is a listing of trust account balances relating to trust accounts controlled and administered by the Department.
2011 2010 Cash and cash equivalents as at 30 June 2011 $’000 $’000
CONTrOllEd TrusTs Public Transport Fund 306,702 280,148 Better Roads Victoria Trust Account 344,347 227,253 Treasury Trust Fund 29,186 20,903 Total controlled trusts 680,235 528,304
adMINIsTErEd TrusTs Treasury Trust Fund 8,743 7,602 Public Service Commuter Club (230) (254) Victorian Natural Disasters Relief Account – 247 Total administered trusts 8,513 7,595 Total trust account balances 688,748 535,899
87 Department of Transport Annual Report 2010-11 Note 24. Responsible persons
In accordance with the Directions of the Minister for Finance under the Financial Management Act 1994, the following disclosures are made regarding responsible persons for the reporting period. Names
The persons who held the positions of Ministers and Accountable Officers in the Department are as follows:
Minister for Public Transport The Hon. Martin Pakula MLC 1 July 2010 to 2 December 2010 Minister for Roads and Ports The Hon. Tim Pallas MP 1 July 2010 to 2 December 2010 Minister for Roads and The Hon. Terry Mulder MP 2 December 2010 to 30 June 2011 Minister for Public Transport Minister for Ports The Hon. Dr Denis Napthine MP 2 December 2010 to 30 June 2011 Secretary, Department of Transport Mr Jim Betts 1 July 2010 to 30 June 2011
Remuneration
Total remuneration received or receivable by the Accountable Officer (excluding Acting Accountable Officers) in connection with the management of the Department during the reporting period was in the range: $380 000–$389 999 ($390 000–$399 999 in 2009-10).
Remuneration amounts relating to Ministers are reported in the financial statements of the Department of Premier and Cabinet. Other transactions
Other related transactions and loans requiring disclosure under the Directions of the Minister for Finance have been considered and there are no matters to report.
88 Note 25. Remuneration of executives
The numbers of executive officers, other than ministers and the accountable officer and their total remuneration during the reporting period are shown in the first two columns in the table below in their relevant income bands. The base remuneration of executive officers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, long service leave payments, redundancy payments and retirement benefits.
Several factors have affected total remuneration payable to executives over the year. A number of employment contracts were completed during the year and renegotiated and a number of executives received bonus payments during the year. These bonus payments depend on the terms of individual employment contracts.
Total remuneration base remuneration 2011 2010 2011 2010 Income band No. No. No. No. Less than $100,000 19 25 22 29 $100,000–109,999 1 – 1 – $110,000–119,999 – – 3 1 $120,000–129,999 3 3 – 3 $130,000–139,999 1 2 3 2 $140,000–149,999 3 1 2 4 $150,000–159,999 2 5 6 3 $160,000–169,999 8 4 5 4 $170,000–179,999 6 4 5 9 $180,000–189,999 2 8 8 2 $190,000–199,999 7 – 5 5 $200,000–209,999 4 6 3 – $210,000–219,999 3 3 – 3 $220,000–229,999 1 1 2 6 $230,000–239,999 – 3 – 1 $240,000–249,999 2 4 6 1 $250,000–259,999 4 2 2 1 $260,000–269,999 4 1 3 – $270,000–279,999 1 – 1 – $280,000–289,999 4 1 – 1 $290,000–299,999 – 1 1 – $300,000–309,999 – 1 1 1 $310,000–319,999 1 – – – $340,000–349,999 1 1 – – $350,000–359,999 2 – – – Total numbers 79 76 79 76 Total amount $12,967,393 $11,501,908 $11,561,267 $10,174,761
89 Department of Transport Annual Report 2010-11 Note 26. Remuneration of auditors
Audit fees paid or payable to the Victorian Auditor-General’s Office for audit of the Department’s financial statements: 2011 2010 $’000 $’000 Paid as at 30 June 127 194 Payable as at 30 June 152 81 Total remuneration of auditors 279 275
The Victorian Auditor-General’s Office has not provided the Department with any other paid services.
Note 27. The Taxi Services Commission
On 19 July 2011 the Taxi Services Commission came into operation.
The Commission is an independent statutory authority and will after 30 June 2012 table its own separate annual report in Parliament.
The Commission will undertake a comprehensive investigation into all aspects of the taxi and hire car industry and recommend a set of reforms to the government focused on achieving better outcomes for the travelling public.
The Victorian Taxi Inquiry has been running since 28 March 2011 and its costs to 30 June 2011 are reported by the department. From 19 July 2011 those costs will be reported by the Taxi Services Commission.
Following the conclusion of the Victorian Taxi Inquiry the Taxi Services Commission will take over the role of the industry regulator (currently the role of the Department) and will be provided with the powers and tools necessary to reform the taxi industry.
Note 28. Establishment of Victorian Public Transport Development Authority
Part of the Coalition Government’s 2010 election platform was the establishment of a new Public Transport Development Authority. It is expected the government will introduce legislation during the course of the 2011-12 financial year to give effect to this policy. The Authority will be established by such legislation and, accordingly, establishment is subject to passage by Parliament of the legislation. The government’s policy provides that Authority, once established, will be independent and will have a board. The Authority will be responsible for administration of the public transport system and, in particular, administration of contractual and other arrangements relating to metropolitan trains, trams and buses and regional trains and buses. It will be the primary liaison point for the metropolitan train and tram franchisees, Metro and Yarra Trams.
The Authority will assume the role of a number of current public transport entities and will table its own annual report in Parliament.
The Authority will contribute to the department’s Integrated and Sustainable Transport Development output.
90 Note 29. Glossary of terms
Actuarial gains or losses Commitments »a derivative that will or may on superannuation defined be settled other than by the benefit plans Commitments include those exchange of a fixed amount of operating, capital and other cash or another financial asset Actuarial gains or losses reflect outsourcing commitments arising for a fixed number of the entity’s movements in the superannuation from non-cancellable contractual own equity instruments. liability resulting from differences or statutory sources. between the assumptions used Financial instrument to calculate the superannuation Depreciation A financial instrument is any contract expense from transactions and Depreciation is an expense that actual experience. that gives rise to a financial asset of arises from the consumption through one entity and a financial liability or Amortisation wear or time of a produced physical equity instrument of another entity. or intangible asset. This expense Financial assets or liabilities that are Amortisation is the expense which is classified as a ‘transaction’ and not contractual (such as statutory results from the consumption, so reduces the ‘net result from receivables or payables that arise as extraction or use over time of a transaction.’ a result of statutory requirements non-produced physical or intangible Employee benefits expenses imposed by governments) are not asset. This expense is classified as financial instruments. an other economic flow. Employee benefits expenses include Financial liability Borrowings all costs related to employment including wages and salaries, leave A financial liability is any liability that is: Borrowings refers to interest bearing entitlements, redundancy payments liabilities mainly raised from public and superannuation contributions. (a) A contractual or statutory obligation: borrowings raised through the » to deliver cash or another Treasury Corporation of Victoria, Financial asset financial asset to another entity; finance leases and other interest A financial asset is any asset that is: or bearing arrangements. Borrowings also include non-interest bearing (a) cash; » to exchange financial assets or advances from government that is financial liabilities with another acquired for policy purposes. (b) an equity instrument of entity under conditions that are another entity; potentially unfavourable to the Comprehensive result entity; or (c) a contractual right or Total comprehensive result is the statutory right change in equity for the period (b) A contract that will or may be other than changes arising from » to receive cash or another settled in the entity’s own equity transactions with owners. It is the financial asset from another instruments and is: aggregate of net result and other entity; or »a non-derivative for which the non-owner changes in equity. » to exchange financial assets or entity is or may be obliged to deliver a variable number of the Capital Asset Charge financial liabilities with another entity under conditions that are entity’s own equity instruments; The capital asset charge represents potentially favourable to the or the opportunity cost of capital invested entity; or »a derivative that will or may in the non current physical assets be settled other than by the used in the provision of outputs. (d) a contract that will or may be exchange of a fixed amount settled in the entity’s own equity of cash or another financial instruments and is: asset for a fixed number of the »a non-derivative for which the entity’s own equity instruments. entity is or may be obliged to For this purpose the entity’s receive a variable number of the own equity instruments do not entity’s own equity instruments; include instruments that are or themselves contracts fro the future receipt or delivery of the entity’s own equity instruments.
91 Department of Transport Annual Report 2010-11 Note 29. Glossary of terms (continued)
Financial statements Grants for on-passing Net result Depending on the context of the All grants paid to one institutional Net result is a measure of financial sentence where the term ‘financial sector (e.g. a State general performance of the operations for statements’ is used, it may include government) to be passed on the period. It is the net result of only the main financial statements (i.e. to another institutional sector items of income, gains and expenses comprehensive operating statement, (for example local government (including losses) recognised for balance sheet, cash flow statements, or a private non-profit institution). the period, excluding those that and statement of changes in equity); are classified as ‘other non owner or it may also be used to replace Intangible assets changes in equity’. the old term ‘financial report’ under Intangible assets represent the revised AASB 101 (Sept 2007), Net result from transactions/net identifiable non-monetary assets operating balance which means it may include the main without physical substance. financial statements and the notes. Net result from transactions or Interest expense Grants and other transfers net operating balance is a key Costs incurred in connection with fiscal aggregate and is revenue Transactions in which one unit the borrowing of funds. Interest from transactions minus expenses provides goods, services, assets (or expenses include interest on bank from transactions. It is a summary extinguishes a liability) or labour overdrafts and short term and long- measure of the ongoing sustainability to another unit without receiving term borrowings, amortisation of of operations. It excludes gains and approximately equal value in return. discounts or premiums relating to losses resulting from changes in Grants can either be operating borrowings, interest component of price levels and other changes in the or capital in nature. While grants finance leases repayments, and the volume of assets. It is the component to governments may result in the increase in financial liabilities and of the change in net worth that is due provision of some goods or services non-employee provisions due to the to transactions and can be attributed to the transferor, they do not give unwinding of discounts to reflect the directly to government policies. the transferor a claim to receive passage of time. directly benefits of approximately Non-financial assets equal value. Receipt and sacrifice Interest income Non-financial assets are all assets of approximately equal value may Interest income includes unwinding that are not ‘financial assets’. occur, but only by coincidence. For over time of discounts on financial example, governments are not obliged Other economic flows assets and interest received on bank to provide commensurate benefits, term deposits and other investments. Other economic flows are changes in the form of goods or services, to in the volume or value of an asset particular taxpayers in return for their Net acquisition of non-financial or liability that do not result from taxes. For this reason, grants are assets (from transactions) transactions. It includes gains and referred to by the AASB as involuntary losses from disposals, revaluations and transfers and are termed non- Purchases (and other acquisitions) impairments of non-current physical reciprocal transfers. of non financial assets less sales (or disposals) of non financial assets and intangible assets; actuarial gains Grants can be paid as general less depreciation plus changes in and losses arising from defined benefit purpose grants which refer to grants inventories and other movements in superannuation plans; fair value that are not subject to conditions non financial assets. Includes only changes of financial instruments and regarding their use. Alternatively, those increases or decreases in agricultural assets; and depletion of they may be paid as specific purpose non financial assets resulting from natural assets (non-produced) from grants which are paid for a particular transactions and therefore excludes their use or removal. In simple terms, purpose and/or have conditions write offs, impairment write downs other economic flows are changes attached regarding their use. and revaluations. arising from market re-measurements.
92 Note 29. Glossary of terms (continued)
Payables Transactions Includes short-term and long-term Transactions are those economic trade debt and accounts payable, flows that are considered to arise as grants, taxes and interest payable. a result of policy decisions, usually an interaction between two entities Receivables by mutual agreement. They also Includes amounts owing from include flows within an entity such government through appropriation as depreciation where the owner is receivable, short and long-term credit simultaneously acting as the owner and accounts receivable, accrued of the depreciating asset and as the investment income, grants, taxes and consumer of the service provided by interest receivable. the asset. Taxation is regarded as mutually agreed interactions between Sales of goods and services the government and taxpayers. Transactions can be in kind Refers to income from the direct (e.g. assets provided/given free of provision of goods and services charge or for nominal consideration) and includes fees and charges for or where the final consideration is services rendered, sales of goods cash. In simple terms, transactions and services, fees from regulatory arise from the policy decisions of the services, work done as an agent for government. private enterprises. It also includes rental income under operating leases and on produced assets such as buildings and entertainment, but excludes rent income from the use of non-produced assets such as land. User charges includes sale of goods and services revenue. Supplies and services Supplies and services generally represent cost of goods sold and the day-to-day running costs, including maintenance costs, incurred in the normal operations of the Department.
93 Department of Transport Annual Report 2010-11
Appendices Contents
DOT People Profile ...... 95 DOT People ...... 98 DOT Portfolio Executives 30 June 2011 ...... 100 Diversity Reporting ...... 101 DOT Audit Committee ...... 102 Budget Portfolio Outcomes ...... 103 Output Performance Measures ...... 111 Transport Outcome Performance ...... 130 Better Roads Victoria Trust Account ...... 136 Environmental Performance Report ...... 137 Legislation (administered as at 30 June 2011) ...... 143 Whistleblowers Protection Act 2001 ...... 147 Freedom of Information Act 1982 ...... 147 Victorian Industry Participation Policy ...... 148 National Competition Policy Compliance ...... 149 Secretary’s Attestation of Risk Management ...... 150 Building Act Compliance ...... 150 Disclosure of Major Contracts Compliance ...... 150 Consultant Engagements ...... 151 Major Publications ...... 151 Other available information ...... 152 DOT contact information ...... 153 Disclosure Index ...... 154 DOT People Profile
People profile as at 30 June 2011
Ongoing Fixed term and casual Total Total Number Full-time Part-time FTE* Headcount FTE Headcount FTE* (headcount) June 2011 1123 1022 101 1089 114 106 1237 1195 June 2010 1163 1071 92 1131 117 110 1280 1241
June 2011 June 2010 Ongoing Fixed term Ongoing Fixed term and casual and casual Number FTE* FTE* Number FTE* FTE* (headcount) (headcount)
Gender Male 572 566 48 605 600 55 Female 551 523 58 558 531 55 Totals 1123 1089 106 1163 1131 110
Age Under 25 31 31 13 38 37 7 25-34 319 313 53 325 319 54 35-44 315 297 18 324 308 25 45-54 269 264 14 282 277 15 55-64 171 166 9 177 174 9 65 & Over 18 17 0 17 16 0 Totals 1123 1089 106 1163 1131 110
Classification VPS 1 3 3 1 3 3 0 VPS 2 49 47 21 55 53 10 VPS 3 217 212 22 255 247 18 VPS 4 219 211 22 211 206 36 VPS 5 258 248 21 256 248 17 VPS 6 276 267 16 280 271 19 STS 13 13 0 10 10 0 Executives 50 50 0 54 54 1 Other ** 38 38 2 39 39 9 Totals 1123 1089 106 1163 1131 110
Note: * FTE Numbers have been rounded to nearest whole number. This has caused a difference in FTE totals. ** Classification ‘Other’ includes Chauffers and Principal Scientists. During 2010-11 the Regional Rail Link Authority was established and a number of DOT people transitioned to that authority.
95 Department of Transport Annual Report 2010-11 Regional Rail Link Authority People Profile People profile as at 30 June 2011
Ongoing Fixed term and casual Total Total Number Full-time Part-time FTE* Headcount FTE Headcount FTE* (headcount) June 2011 41 40 1 41 44 44 85 84
June 2011 Ongoing Fixed term and casual Number FTE* FTE* (headcount)
Gender Male 28 28 21 Female 13 13 23 Totals 41 41 44
Age Under 25 3 3 3 25-34 15 15 23 35-44 11 11 7 45-54 10 10 7 55-64 2 2 4 65 & Over 0 0 0 Totals 41 41 44
Classification VPS 1 0 0 0 VPS 2 1 1 1 VPS 3 10 10 9 VPS 4 5 5 9 VPS 5 6 6 11 VPS 6 8 8 5 STS 1 1 0 Executives 5 5 0 Other ** 5 5 9 Totals 41 41 44
Note: * FTE Numbers have been rounded to nearest whole number. This has caused a difference in FTE Totals. ** Classification ‘Other’ includes Chauffers and Principal Scientists. During 2010-11 the Regional Rail Link Authority was established and a number of DOT people transitioned to that authority.
96 Number of executive officers classified into ongoing and special projects
All Ongoing Special projects Vacancies Total Class No Var. No Var. No Var. No Var. No Var. SEC 1 1 1 +0 EO-1 4 -1 3 1 +1 4 +1 EO-2 22 -1 20 -1 2 +2 2 +2 24 +3 EO-3 28 +2 26 -3 2 +1 10 +8 38 +6 Total 55 +0 50 -4 5 +4 12 +10 67 +10
Var. = Variation from previous year
Breakdown of executive officers into gender for ongoing and special projects
Continuing executives Special projects Male Female Vacancy* Male Female Vacancy Class No Var. No Var. No Var. No Var. No Var. No Var. Total SEC 1 1 EO-1 2 1 1 +1 4 EO-2 19 +1 1 -2 2 +2 2 +2 24 EO-3 13 -4 13 +1 8 +6 1 +1 1 2 +2 38 Total 35 -3 15 -1 10 +8 4 +4 1 +0 2 +2 67
Var. = Variation from previous year
Reconciliation of executives
2011 2010 Executives with total remuneration over $100,000 60 51 Add Vacancies 12 2 Executives employed with total remuneration below $100,000 19 25 Accountable officer 1 1 Inactive 0 0 Additional EO positions 0 0 Less Separations -8 -8 EO to VPS -2 -1 Temporary EOs (higher duties) -15 -11 Secondment out of DOT 0 -2 Machinery of Government changes 0 0 Total executive numbers at 30 June 2011 67 57
97 Department of Transport Annual Report 2010-11 DOT People
Learning and development Grievance reporting
DOT’s Learning and Development A new Respectful Behaviours policy strategy 2011 sets out the actions that was developed in 2011 which provides foster a learning culture to empower a framework for promoting respectful our leaders, managers and people to behaviour, identifying unacceptable build and develop their capability and behaviour and processes for enable DOT to become Australia’s addressing concerns, with an best performing public sector agency. emphasis on timely, local resolution. Key achievements include: Key achievements include: »design and development of DOT’s » delivery of 11 ‘It’s a Matter of two-year leadership program Respect’ information sessions in May and June 2011, which were attended » delivery of DOT’s leadership speaker by approximately 700 DOT people series attended by 1800 people. » resolution of nine grievances »establishment of DOT’s management development » identification and appointment strategy in July 2010 to continue to of a new employee assistance strengthen manager engagement program (EAP) provider and the and capability, resulting in 78 implementation of a contemporary EAP Program with increased per cent of DOT people having utilisation of the coaching streams: confidence in the decisions made Career Assist, Conflict Assist and by their manager Manager Assist. »the managing in DOT program was completed by 103 managers »DOT’s learning and development calendar provided over 59 programs to 1,564 people. »delivery of 65 corporate information sessions attended by approximately 700 people » establishment of the learning and development evaluation framework to support a strategic and coordinated approach to capability building.
98 DOT Occupational Health, The department’s performance against OHS management measures Safety and Wellbeing
DOT aims to do everything possible Measure KPI 2008-09 2009-10 2010-11 to prevent harm, achieve the highest standard of occupational health, safety Incidents No. of incidents n/a 30 63 and wellbeing and comply with all the relevant Occupational Health and Safety Rate per 100 FTE n/a 2.42 4.93 (OH&S) legislative requirements. Claim No. of standard claims 6 11 9
DOT has a well developed Rate per 100 FTE 0.503 0.886 0.704 Occupational Health and Safety Strategy 2010–2012 with the key No of lost time claims 1 4 0 achievements for 2010-2011: Rate per 100 FTE 0.503 0.886 0 »delivery of 14 Health and Wellbeing events which were No of claims exceeding 1 2 1 13 weeks attended by 932 people »establishment of the OHS Rate per 100 FTE 0.084 0.161 0.078 Consultative Committee which Fatalities 0 0 0 meets quarterly or as required Claims Costs Average cost per $12,507 $60,471 $4,458 »implementation of the Regional standardised claim Wellbeing Program Return to Percentage of claims with n/a 100% 100% »legal OHS governance work RTW plan >30 days assessment commenced by an external legal expert Management Evidence of policy n/a partially partially commitment statement, OHS objectives, completed completed »implementation of an early regular reporting to senior intervention program to provide management of OHS, and support to DOT people with OHS plans signed by CEO psychological health and/or mental or equivalent health issues. To date the program has supported 13 DOT people and Evidence of OHS criteria n/a completed completed their managers. in purchasing guidelines (including goods, services » DOT has experienced a significant and personnel) reduction in the average cost per standardised claim and no lost time Consultation Evidence of agreed n/a completed completed claims have been lodged. and structure of designated participation work groups (DWGs), health »84 per cent of people in the 2011 and safety representatives DOT People Survey agreed that the (HSRs) and issue resolution health and safety of people is given procedures (IRPs) a high priority in DOT. Compliance with agreed completed completed structure on DWGs, HSRs, and IRPs
Training Percentage of n/a n/a 100% HSRs trained: »Acceptance of role
Percentage of n/a n/a 2% managers trained
Note: Claims data sourced from WorkSafe Victoria July2011
99 Department of Transport Annual Report 2010-11 DOT Portfolio Executives 30 June 2011
Organisation name Reported Department 2010 2011 Change 2010 2011 2010 2011 F M T V F M T V F M T V Linking Melbourne Authority Yes Yes DOT DOT 2 5 7 2 6 8 0 1 1 Port of Hastings Corporation* Yes No DOT n/a 0 1 1 0 0 0 0 -1 -1 Port of Melbourne Corporation Yes Yes DOT DOT 4 24 28 4 23 27 0 -1 -1 Transport Ticketing Authority Yes Yes DOT DOT 3 3 6 3 3 6 0 0 0 V/Line Passenger Pty Ltd Yes Yes DOT DOT 5 20 25 6 20 26 1 0 1 VicRoads Yes Yes DOT DOT 15 55 70 16 57 73 1 2 3 Victorian Rail Track Yes Yes DOT DOT 2 8 10 6 10 16 4 2 6 Corporation Victorian Regional Channels Yes Yes DOT DOT 0 1 1 0 3 3 0 2 2 Authority Totals 31 117 148 37 122 159 6 5 11
Note: F – Female, M – Male, T – Total, V – Vacant. * This organisation no longer exists.
100 Diversity Reporting
DOT is committed to building and Aboriginal communities Youth maintaining a diverse workforce, which is reflective of the Victorian community » Development of an Aboriginal »DOT’s Engineering Vacation and enables DOT to effectively Employment Strategy and Aboriginal program this year attracted 98 represent the interests and needs Action Plan 2011 in line with whole- applications for 12 positions. of-government initiatives. of the entire community in decision »Management of the Victoriaworks making and planning for current and »DOT, the Department of Business Program supporting nine DOT future transport solutions. and Innovation and the Department trainees. of Justice hosted a NAIDOC week DOT launched its Diversity and Inclusion »Management of DOT’s Graduate event for more than 150 people Strategy in October 2010 which included Program with 12 VPS Graduates including Aboriginal community a range of diversity and inclusion and two DOT Engineering members, which was reported in programs and initiatives targeting: Graduates for 2011. the Koori Mail. »Establishment of monthly network »Participation in the Victoriaworks People with a disability engineering events that provide program with DOT supporting three skills development and information »Implementation of DOT’s Disability Aboriginal trainees. Action Plan. sharing opportunities. »Gay, lesbian, bisexual, transgender »Provision of career pathways for 33 and intersex (GLBTI) graduates with a disability through DOT’s Career Start program. Of »Development of an action plan those 33, some 23 have found by Pride in Transport, a GLBTI further employment as a result of community group for the transport their initial placement. portfolio. »Development of a Reasonable »Pride in Transport is the first group Adjustment policy in September in the VPS to join Pride in Diversity, 2010 to provide adjustments to the from which DOT will receive support working environment which may and resources. be required to enable people to participate fully in their workplace. Culturally and linguistically »Implementation of the Building diverse (CALD) Access Audit conducted in 2010. communities Women »In addition to extensive translations, DOT held the first of its language- » Launch of the Women Leading specific information sessions Transport strategy in November 2010. in October 2010 at its project information hub in Footscray, in » Conducted a gender pay equity audit Chinese and Vietnamese. confirming DOT pays equally at all levels other than Executive Officer »Expansion of the Career Pathways 3, where women are remunerated to Employment program for slightly lower than men. asylum seekers that includes a 16 week placement in an »81 per cent of DOT people believe Australian workplace. DOT is an equal opportunity employer as evidenced in the DOT » DOT continues to celebrate CALD People Survey 2011. events including Cultural Diversity Week and Refugee Week.
101 Department of Transport Annual Report 2010-11 DOT Audit Committee
The Audit Committee was established Consistent with the department’s to assist the Secretary in governance Audit Charter, the roles and and oversight responsibilities. responsibilities of the Audit Committee include: The Audit Committee provides independent, risk-based and objective »oversight of financial performance assurance and recommendations to and reporting the Secretary. »oversight of the internal auditor It is supported in this task by a »oversight of risk management secretariat, led by the Director Audit processes and Assurance, who reports to the »oversight of the compliance and Secretary, and also through an control environment. outsourced internal audit provider.
The appointment of an Audit Committee and the maintenance of an internal audit function is a requirement of DOT’s governance arrangements under the Financial Management Act 1994 and the Standing Directions of the Minister for Finance.
102 Budget Portfolio Outcomes
The Budget Portfolio Outcomes The following Budget Portfolio provide comparisons between the Outcomes statements are not actual financial statements of all subject to audit by the Victorian general government sector entities Auditor-General’s Office and are not within the Transport portfolio and prepared on the same basis as the the forecast financial information department’s financial statements as published in the Budget Papers No. 4 they include the consolidated financial Statement of Finances 2010-11 (BP4). information of the following entities: The Budget Portfolio Outcomes »Department of Transport comprise the comprehensive operating statements, balance sheets, »VicRoads cash flow statements, statement of »Linking Melbourne Authority. changes in equity and administered item statements.
The Budget Portfolio Outcomes have been prepared on a consolidated basis and include all general government sector entities within the Transport portfolio. Financial transactions and balances are classified into either controlled or administered categories consistent with the published statements in BP4.
103 Department of Transport Annual Report 2010-11 Comprehensive operating statement for the financial year ended 30 June 2011
2010-11 2010-11 Variation Notes Actual Published Budget ($ million) ($ million) (%)
NET RESuLT FROM CONTINuINg OPERATIONS Income from transactions Output appropriations 4,756.0 4,801.9 (1) Special appropriations 1.1 2.0 (43) Interest 4.3 1.4 207 Sales of goods and services 694.7 703.2 (1) Grants 308.8 231.2 34 1 Fair value of assets and services received free of charge or 0.8 – – for nominal consideration Other income 144.0 101.5 42 2 Total income from transactions 5,909.8 5,841.2 1
ExPENSES FROM TRANSACTIONS Employee benefits 394.3 383.7 3 Depreciation and amortisation 507.9 503.6 1 Interest expense 32.4 32.2 1 Grants and other transfers 1,854.1 1,770.1 5 Capital asset charge 78.4 78.4 – Other operating expenses 2,745.3 2,761.4 (1) Payments into consolidated fund – – – Total expenses from transactions 5,612.3 5,529.2 2
Net result from transactions (net operating balance) 297.4 312.0 (5)
104 Comprehensive operating statement for the financial year ended 30 June 2011 (continued)
2010-11 2010-11 Variation Notes Actual Published Budget ($ million) ($ million) (%)
OTHER ECONOMIC FLOwS INCLuDED IN NET RESuLT Net gain/(loss) on non-financial assets (9.5) – – Net gain/(loss) on financial instruments and statutory 0.3 (0.4) (160) receivables/payables Other gains/(losses) from other economic flows 0.5 – – Total other economic flows included in net result (8.7) (0.4) 1,911 Net result 288.7 311.6 (7)
OTHER ECONOMIC FLOwS – OTHER NON-OwNER CHANgES IN EquITy Changes in physical asset revaluation reserve (49.5) – – 3 Other 284.2 11.8 2,319 4 Total other economic flows – Other non owner changes 234.7 11.8 1,898 in equity Comprehensive result 523.4 323.3 62
Notes: 1. The 2010-11 actual figure reflects the acceleration of the Safer Roads Infrastructure Program and funding for natural disaster relief recovery. 2. The 2010-11 actual figure includes the refund from the Australian Taxation Office of GST payments on the Multi Purpose Taxi Program. 3. The 2010-11 actual figure includes the write down of VicRoads assets as a result of flood damage. 4. The 2010-11 actual figure reflects the dissolution of the Southern and Eastern Integrated Transport Authority and the subsequent creation of the Linking Melbourne Authority on 1 July 2010.
105 Department of Transport Annual Report 2010-11 Balance sheet as at 30 June 2011
2010-11 2010-11 Variation Notes Actual Published Budget ($ million) ($ million) (%)
ASSETS Financial assets Cash and deposits 671.6 559.4 20 Receivables 168.3 123.2 37 Other financial assets 498.0 571.0 (13) Total financial assets 1,337.9 1,253.6 7
Non-financial assets Inventories 24.8 8.9 179 Property, plant and equipment 43,502.1 43,597.7 – Intangible assets 34.6 32.7 6 Other 9.0 10.6 (15) Total non-financial assets 43,570.5 43,649.9 – Total assets 44,908.4 44,903.4 –
LIABILITIES Payables 845.8 762.7 11 Interest-bearing liabilities 377.1 377.0 – Provisions 413.7 402.1 3 Total liabilities 1,636.6 1,541.8 6 Net assets 43,271.8 43,361.6 –
EquITy Accumulated surplus/(deficit) 16,042.5 15,792.9 2 Reserves 11,381.7 11,431.2 – Contributed capital 15,847.6 16,137.5 (2) Total equity 43,271.8 43,361.6 –
106 Cash flow statement for the year ended 30 June 2011
2010-11 2010-11 Variation Notes Actual Published Budget ($ million) ($ million) (%)
CASH FLOwS FROM OPERATINg ACTIVITIES Receipts Receipts from Government 4,757.2 4,803.9 (1) Receipts from other entities 1,063.6 976.8 9 Goods and Services Tax recovered (20.7) – – from the ATO Interest received 4.3 1.4 207 Other receipts 51.6 58.8 (12) Total receipts 5,855.9 5,840.9 –
Payments Payments of grants and other transfers (1,860.9) (1,770.1) 5 Payments to suppliers and employees (2,963.9) (3,126.1) (5) Goods and Services Tax paid to the ATO 0.4 – – Capital asset charge (78.4) (78.4) – Interest and other costs of finance (32.4) (32.2) 1 Total payments (4,935.1) (5,006.7) (1) Net cash flows from /(used in) 920.8 834.2 10 operating activities
107 Department of Transport Annual Report 2010-11 Cash flow statement for the year ended 30 June 2011 (continued)
2010-11 2010-11 Variation Notes Actual Published Budget ($ million) ($ million) (%)
CASH FLOwS FROM INVESTINg ACTIVITIES Net investment 71.8 1.7 4,098 Payments for non-financial assets (1,170.4) (1,146.7) (2) Proceeds from sale of non- 15.6 12.0 30 financial assets Net cash flows from /(used in) (1,083.0) (1,133.0) (4) investing activities
CASH FLOwS FROM FINANCINg ACTIVITIES Owner contributions by State 303.9 322.0 (6) Government Repayment of finance leases 2.6 2.6 – Net borrowings 3.8 10.1 (62) Net cash flows from /(used in) 310.3 334.7 (7) financing activities Net increase (decrease) in cash 148.2 36.0 and cash equivalents Cash and cash equivalents at the 523.4 523.4 beginning of the financial year Cash and cash equivalents at the 671.6 559.4 end of the financial year
108 Statement of changes in equity as at 30 June 2011
Accumulated Contributions Other Asset Total Notes Surplus / by Owner Reserves Revaluation Equity (Deficit) Reserve ($ million) ($ million) ($ million) ($ million) ($ million)
ACTuAL RESuLT Closing balance 30 June 2010 (Actual) 15,469.6 15,827.3 – 11,431.2 42,728.1 Comprehensive result 288.7 – – 284.2 572.9 1 Transactions with owners in their – 20.4 – (49.5) (29.1) 2 capacity as owners Closing balance 30 June 2011 (Actual) 15,758.3 15,847.7 – 11,665.9 43,271.9
BuDgET RESuLT Closing balance 30 June 2010 (Actual) 15,469.6 15,827.3 – 11,431.2 42,728.1 Comprehensive result 311.5 – – 11.8 323.3 Transactions with owners in their – 310.3 – – 310.3 capacity as owners Closing balance 30 June 2011 (Budget) 15,781.1 16,137.6 – 11,443.0 43,361.7
Notes: 1. The 2010-11 actual figure reflects the dissolution of the Southern and Eastern Integrated Transport Authority and the subsequent creation of the Linking Melbourne Authority on 1 July 2010. 2. The reduction in the asset revaluation reserve reflects the write down of VicRoads assets as a result of flood damage
109 Department of Transport Annual Report 2010-11 Administered items statement as at 30 June 2011
2010-11 2010-11 Variation Notes Actual Published Budget ($ million) ($ million) (%)
ADMINISTERED INCOME Sales of goods and services 1.5 0.9 76 Grants 34.2 – – 1 Other income 1,691.1 1,628.5 4 Total administered income 1,726.8 1,629.4 6
ADMINISTERED ExPENSES Expenses on behalf of the State 151.7 31.2 385 2 Grants and other transfers 34.2 – – 1 Payments into the Consolidated Fund 1,656.5 1,602.0 3 Total administered expenses 1,842.3 1,633.2 13 Income less expenses (115.5) (3.9) 2,881 Other economic flows included in net result Net gain/(loss) on (10.6) – – non-financial assets Total other economic flows (10.6) – – included in net result Net result (126.1) (3.9) 3,153 Other economic flows – other non- owner changes in equity Other (361.5) (361.5) – Comprehensive result (487.6) (365.4) 33 Administered assets Cash and deposits (24.9) 7.6 (428) Receivables 57.5 27.1 113 Total administered assets 32.6 34.6 (6) Payables 343.1 343.3 – Total administered liabilities 343.1 343.3 – Net assets (310.5) (308.7) 1
EquITy Contributed capital 177.1 56.7 212 2 Accumulated surplus/(deficit) (487.6) (365.4) 33 Total equity (310.5) (308.7) 1
Notes: 1. The 2010-11 actual figure includes funding for natural disaster relief recovery. 2. The 2010-11 actual figure includes expensing of assets provided free to the Australian Rail Track Corporation.
110 Output Performance Measures
The following section provides details of the outputs provided to government during 2010-11, including performance measures and costs for each output as published in the 2010-11 State Budget Paper No. 3 Service Delivery.
Following a Machinery of Government administrative change, the land use planning function was moved from the Department of Transport to the Department of Planning and Community Development. The transfer was effective on 1 January 2011. As a result of the transfer, the performance measure ‘strategic integrated transport input into the development of new growth areas is provided within agreed timelines’ is reported in the 2010-11 Annual Report of the Department of Planning and Community Development.
Output costs for 2010-11 have been prepared on Australian equivalents to International Financial Reporting Standards basis.
Notes are provided to explain elements of measurements and major variations in performance against 2010-11 targets. Abbreviations used in tables na not applicable – zero or rounded to zero Transport safety and security
These outputs will deliver initiatives and regulatory activities that will improve safety on Victoria’s roads, public transport and waterways. These outputs also include activities aimed at maintaining the security of critical transport infrastructure and ensuring the preparedness to respond to emergencies involving this infrastructure.
These outputs will make the transport system safer by reducing the frequency, severity and cost of incidents and accidents. This supports the department’s priority of ensuring safety for all transport users, and makes a significant contribution to achieving the government’s goal of building friendly, confident and safe communities.
111 Department of Transport Annual Report 2010-11 Public transport safety and regulation This output provides programs and initiatives to achieve the highest standards of safety practicable for public transport services in Victoria. Activity in this output includes public transport infrastructure improvements, monitoring compliance with public transport operators’ safety management systems and implementing corrective actions. A safe public transport network is an important part of encouraging greater use, in turn reducing road congestion and transport emissions.
unit of 2010-11 2010-11 Measure Target Actual
quANTITy Annual bus safety mechanical inspections number 50 50 conducted Bus safety audits conducted in accordance with per cent 100 100 regulatory policy Public railway crossings upgraded number 20 20 Rail safety compliance audits/compliance inspections conducted in accordance with number 50 90 (1) legislative requirements
quALITy Bus safety improvement notices addressed within per cent 100 100 specified timeframes by accredited bus operators Rail safety improvement notices addressed within per cent 100 100 agreed timeframes by accredited rail operators
TIMELINESS Applications for bus safety accreditation per cent 100 100 processed on time Applications for rail accreditation processed per cent 100 100 on time
COST Total output cost $ million 29.2 30.4
1. The 2010-11 result reflects expanded audit and compliance activities undertaken during the year.
112 Road safety and regulation This output provides a road safety program that incorporates the ‘Safe System’ approach with initiatives to improve the safety of roads and roadsides, increase the safety of vehicles on Victoria’s roads and promote safer behaviour from Victoria’s road users. A well-designed road network, safer vehicles and safer road users will reduce road incidents and accidents.
unit of 2010-11 2010-11 Measure Target Actual
quANTITy Road safety projects/initiatives completed: »safe roads number 226 170 (2) »safe road users number 62 48 (3) »safe vehicles number 24 18 (4)
quALITy Projects completed within agreed scope per cent 100 100 and standards
TIMELINESS Programmed works completed within per cent 100 76 agreed timeframes
COST Total output cost $ million 119.7 102.6 (5)
2. The 2010-11 result reflects minor delays in a number of projects in this program. 3. The 2010-11 result primarily reflects reprioritisation of projects in this program. 4. The 2010-11 result reflects reprioritisation of projects during the year. 5. The 2010-11 result reflects the higher proportion of road safety projects being undertaken as capital works rather than operating activities.
113 Department of Transport Annual Report 2010-11 Vehicle and driver regulation This output provides vehicle registration and driver licensing that ensures vehicles meet minimum safety standards and drivers meet competency requirements. This output also administers, regulates and monitors taxis, hire cars, special purpose vehicles and tow trucks. A roadworthy vehicle fleet and safer road users will reduce road incidents and accidents.
unit of 2010-11 2010-11 Measure Target Actual
quANTITy Calls to the Victorian Taxi Directorate number (‘000) >150 119 (6) call centre Driver licences renewed number (`000) 560 531 New driver licences issued number (`000) 153 166 (7) New vehicle registrations issued number (`000) 500 519 Taxi and hire vehicle inspections number 14 500 32 738 (8) Taxi driver accreditation requests processed number >4 000 4 505 (9) Vehicle and driver information requests processed number (`000) 4 800 4 032 (10) Vehicle registrations renewed number (`000) 4 870 4 805 Vehicle registration transfers number (`000) 820 821
quALITy Currency of registration and licensing records per cent 99 99 Customer satisfaction index: taxi services score 66.0 65 Taxi and hire vehicle complaints assessed number 3 000 3 239 (11) Taxi and hire vehicles conform to quality per cent >80 85 standards User satisfaction with registration and licensing per cent >85 90
TIMELINESS Calls answered within 30 seconds in VicRoads per cent 80 49 (12) call centres Customers served within 10 minutes in per cent 80 69 (13) VicRoads licensing and registration offices Taxi and hire vehicle complaints investigated per cent >85 84 and closed within 45 days
COST Total output cost $ million 170.2 167.3
6. The 2010-11 result reflects improvements to call centre operations. 7. The 2010-11 target excluded motorcycle licences issued. The 2010-11 actual result includes motorcycle licences issued. 8. The 2010-11 result is due to the introduction of a range of issue specific inspections, in addition to the full vehicle inspections. The 2010-11 target was based only on the full vehicle inspections. 9. The 2010-11 outcome is higher than the 2010-11 target due to the flow-on effects of the release of 530 taxi licences. 10. The 2010-11 result reflects lower than expected registration search requests by both road toll operators ConnectEast and CityLink. 11. The 2010-11 result is due to increased customer complaints following the announcement of the Taxi Industry Inquiry. 12. The 2010-11 result reflects short term business systems issues experienced during the second half of the year. 13. The 2010-11 result reflects a marginal improvement on 2009-10 performance, even with significant growth of licence renewals at service centres. Further improvement in efficiency is expected at the Service Centres as information out of the recently installed Queue Management System is used to plan resource deployment more effectively.
114 Marine safety and regulation This output provides a program to administer the policy and regulatory framework for the safe and efficient operation of commercial and recreational vessels in Victoria. Activity in this output includes registration and licensing that ensures vessels meet safety standards and operators meet competency requirements as well as monitoring compliance through rigorous audits and inspections. Safer vessels and safer operators will reduce marine incidents and accidents.
unit of 2010-11 2010-11 Measure Target Actual
quANTITy Commercial registered training organisations per cent 100 100 and training providers audited Commercial vessels requesting annual survey per cent 100 99 are surveyed
Safety audits performed on commercial vessels per cent 15 12 (14)
Delivery of recreational boating safety and number 12 26 (15) education seminars
quALITy Designated waterways audited to assess per cent 15 12 (16) adequacy of vessel operating and zoning rules
COST Total output cost $ million 18.1 18.9
14. The 2010-11 result reflects reprioritisation of activities to include workshops aimed at improving industry and operator capability in risk based safety management. 15. The 2010-11 result is due to the increasing interest from recreational boating clubs in having customised safety seminars. 16. The 2010-11 result reflects the reduced ability to undertake waterway audits as a result of the Victorian floods.
115 Department of Transport Annual Report 2010-11 Transport and marine safety investigations This output provides independent safety investigations of public transport and marine incidents and accidents to determine causal factors and identify systemic issues. Reviewing, monitoring and acting on these factors and issues will result in safer transport infrastructure and improved transport user behaviour which will reduce incidents and accidents.
unit of 2010-11 2010-11 Measure Target Actual
quANTITy Proportion of accidents/incidents involving identified multiple safety per cent 100 100 system failures investigated
Proportion of notified accidents with passenger fatalities and serious per cent 100 100 passenger injuries investigated
TIMELINESS Accidents/incidents assessed within two days of notification to determine need for per cent 100 100 detailed investigation
Completion of investigations measured index 1 0.81 (17) against benchmark timeframes
COST Total output cost $ million 2.0 1.8 (18)
17. The 2010-11 result is due to a number of investigations requiring extensive research. 18. The 2010-11 investigation program required fewer resources than anticipated.
116 Transport security and emergency management This output provides services and strategic advice to ensure that there is adequate management of security risks to transport services and sufficient capacity and preparedness to respond to emergency situations within the transport sector. These services will ensure continuity of transport services and make the transport system safer for all Victorians.
unit of 2010-11 2010-11 Measure Target Actual
quANTITy Contribution to multi-agency exercise management and coordinate DOT portfolio number 3 4 (19) involvement
Leadership of, or contribution to, strategic security and emergency management number 50 85 (20) coordination sessions and workshops
Major infrastructure security and emergency management exercises coordinated by DOT number 1 1 consistent with the required standards
Minor infrastructure security and emergency management exercises coordinated by DOT number 3 6 (21) consistent with the required standards
quALITy Implementation plans developed for agreed recommendations in response to per cent 100 100 infrastructure security and/or emergency management reviews Reported marine pollution incidents responded to and resolved in accordance with the Victorian per cent 100 100 State Marine Pollution Response Plan Review of risk management plans of declared per cent 85 100 (22) essential services for terrorism Supervision of exercises to test declared essential services risk management plans per cent 100 100 for terrorism
TIMELINESS Marine pollution response action initiated per cent 100 100 within four hours of notification of an incident Provide advice to the portfolio Ministers on per cent 100 100 policy issues within required timeframes
COST Total output cost $ million 3.8 4.3 (23)
19. The 2010-11 result reflects a higher than anticipated number of external requests to participate in multi agency exercises. 20. The 2010-11 result reflects the response required to the Victorian floods. 21. The 2010-11 result is higher than target due to an increase in both the number and readiness of precincts to engage in infrastructure security and emergency management exercises. 22. All risk management plans of declared essential services for terrorism were reviewed. 23. The 2010-11 result reflects activities approved post 2010-11 State Budget.
117 Department of Transport Annual Report 2010-11 Public transport services
These outputs oversee the delivery of quality, sustainable and cost effective passenger train, tram and bus services to metropolitan Melbourne and regional Victoria, in partnership with operators and in accordance with contractual arrangements. These outputs also include the provision of specialist transport services that provide mobility for those unable to use other forms of public transport.
Dependable and accessible public transport services will reduce reliance on private motor vehicles and reduce social exclusion caused by lack of transport options. These outputs support the department’s priority of supporting the Victorian economy with an effective and resilient transport system, and make a significant contribution to achieving the government’s goal of growing and linking all of Victoria.
118 Integrated metropolitan public transport services This output provides the delivery of quality, sustainable and cost effective passenger train, tram and bus services to metropolitan Melbourne through contractual arrangements with private operators. Dependable and accessible public transport services provide more travel options to Victorians so that they are less reliant on private motor vehicles, which contribute to reducing road congestion and transport emissions.
unit of 2010-11 2010-11 Measure Target Actual
quANTITy Passengers carried: »bus number (million) 105.5 106.1 »train number (million) 226.9 228.9 »tram number (million) 189.5 182.7 Payments made for: »bus services $ million 542 525 »train services $ million 821 836 »tram services $ million 357 354 Scheduled services delivered: »bus per cent 99.9 99.9 »train per cent 98.0 98.7 »tram per cent 98.0 99.2 Total kilometres scheduled: »bus km (million) 108.0 110.7 »train km (million) 19.3 20.3 »tram km (million) 23.3 23.6
quALITy Customer satisfaction index: »bus services score 77.0 74.2 »train services score 65.0 64.2 »tram services score 72.0 71.6 Rolling Stock Management Plan meets specifications in Franchise Agreements for: »train services per cent 100 100 »tram services per cent 100 100
TIMELINESS Service punctuality for: »bus services per cent 95 93.6 »train services per cent 88 85.9 »tram services per cent 77 81.4
COST Total output cost $ million 2822.8 2825.6
119 Department of Transport Annual Report 2010-11 Rural and regional public transport services This output provides the delivery of quality, sustainable and cost effective passenger train, coach and bus services to rural and regional Victoria through contractual arrangements with V/Line and private operators. Dependable and accessible public transport services provide more travel options to Victorians so that they are less reliant on private motor vehicles, which contribute to reducing road congestion and transport emissions.
unit of 2010-11 2010-11 Measure Target Actual
quANTITy Passengers carried: » regional bus services number (million) 13.5 14.8 »regional train and coach services number (million) 14.0 14.7 Payments made for: » regional bus services $ million 106 114 »regional train services $ million 302 316 Scheduled services delivered: » regional bus per cent 99.0 99.0 »regional train per cent 99.0 98.9 Total kilometres scheduled: » regional bus km (million) 18.9 21.9 (24) »regional train and coach km (million) 21.5 21.0
quALITy Customer satisfaction index: » regional coach services score 80.0 82.8 »regional train services score 80.0 77.0 Rolling Stock Management Plan meets specifications in the Franchise Agreement per cent 100 100 for: V/Line trains
TIMELINESS Service punctuality for: » regional bus services score 99 98.2 »regional train services score 92 84.4 (25)
COST Total output cost $ million 732.3 759.9
24. The 2010-11 result reflects bus service improvements in regional Victoria, particularly in the Geelong area. 25. The 2010-11 result is due to a combination of infrastructure and train faults, and congestion on the metropolitan train network.
120 Specialist transport services This output provides programs to improve accessibility to public transport for people with a disability, programs to provide specialist transport services for those unable to use other forms of public transport and provides the delivery of school bus services through contractual arrangements with private operators. Specialist public transport services increase the mobility of Victorians that are transport disadvantaged and reduce dependency on private motor vehicles. This contributes to improving social inclusion.
unit of 2010-11 2010-11 Measure Target Actual
quANTITy Disability Discrimination Act (DDA) compliance for public transport infrastructure: » level access tram stops built number 20 28 (26) » metropolitan train station upgrades number 2 2 »regional train station upgrades number 2 2 Multi Purpose Taxi Program taxi trips: » total members number (`000) 192 156.3 (27) »passenger only trips number (`000) 3 700 3 555 »with wheelchair trips number (`000) 735 739 Scheduled school bus per cent 99 98.8 services delivered Total kilometres scheduled: km (million) 33.4 33.6 school bus Transport access site treatments number 44 51 (28) completed by VicRoads
quALITy Transport treatments completed per cent 100 100 within agreed scope or standards
TIMELINESS Multi Purpose Taxi Program applications assessed and completed per cent 90 98 (29) within 10 working days
Programmed transport access works per cent 100 100 completed within agreed timeframes
Service punctuality for school per cent 99 98.6 bus service
COST Total output cost $ million 250.6 252.5
26. The 2010-11 result is due to better than expected project timelines. 27. The 2010-11 result is lower than target due to the removal of inactive members from the Multi Purpose Taxi Program database. 28. The 2010-11 result reflects the completion of some projects from 2009-10. 29. The higher 2010-11 result is due to improved business processes to administer the Multi Purpose Taxi Program.
121 Department of Transport Annual Report 2010-11 Integrated transport planning, delivery and management
These outputs deliver strategic policy guidance to better integrate transport and land use planning. Integrated transport and land use planning identifies current and future access needs – for people to employment, goods to markets and services to businesses – and ensures that land-use and transport development are coordinated to best address these needs. These outputs deliver strategic transport infrastructure improvements to increase the capacity of the transport system and increase the efficiency of existing transport infrastructure to improve the movement of people, goods and services throughout Victoria. These outputs deliver projects to develop sustainable transport solutions, including promoting sustainable travel modes and increasing the use of public transport. An integrated and sustainable transport system will sustain economic growth and support social inclusion and improved quality of life, while conserving the environment for current and future generations.
These outputs support the department’s priorities to integrate transport and land- use planning, support the Victorian economy with an effective and resilient transport system, and improve the sustainability of Victorian transport. These department priorities make a significant contribution to achieving the government’s goals of growing and linking all of Victoria and the efficient use of natural resources.
122 Integrated and sustainable transport development
This output provides projects and programs that improve the integration of transport and land-use planning to support the concentration of jobs and services closer to where people live, reducing the distance and time Victorians need to access them. This output also implements programs aimed at supporting more sustainable forms of transport. An integrated and sustainable transport system will help reduce reliance on private motor vehicles for transport needs, reduce road congestion and increase trips that are made on public transport, or by walking and cycling.
unit of 2010-11 2010-11 Measure Target Actual
quANTITy Carpooling program participants number 36 0 (30) Cycling projects completed number 13 17 (31) Local Area Access Program grant funding committed within agreed timelines per cent 100 100 Low Emission Vehicles program: Commercial fleets engaged number 65 13 (32) Pedestrian projects completed number 11 9 (33) Planning and coordination of transport infrastructure projects in Central Activity Districts number 6 6
quALITy Carpooling program progressed within agreed scope or standards per cent 100 0 (30) Local Area Access Program assessments, monitoring reports and payments per cent 100 100 undertaken according to grant agreements
TIMELINESS Local Area Access Program activities completed within agreed timelines per cent 100 100 Low Emission Vehicles Program: All Electric Vehicle Trial grant agreements completed date qtr 1 qtr 1 Policy advice including COAG National Reform Agenda provided to agreed timelines per cent 100 100 Projects in Central Activities Districts progressed to agreed plans and timeframes per cent 100 100 Public Bicycle Hire Scheme: all stations operational date qtr 1 qtr 2 (34)
COST Total output cost $ million 48.5 44.2
30. The carpooling program was under development and review in 2010-11. This performance measure has been discontinued and the carpooling program will not continue in 2011-12. 31. The 2010-11 result primarily reflects the completion of some projects from 2009-10. 32. The 2010-11 result reflects delays in being granted access to the commercial fleet program materials and changes to the organisation engaged to roll-out the program. 33. The 2010-11 result reflects delays, with the projects now expected to be completed in 2011-12. 34. All stations were operational in November 2010.
123 Department of Transport Annual Report 2010-11 Public transport infrastructure development This output provides capital initiatives that will increase the capacity and efficiency of the public transport network. Dependable and accessible public transport will provide more travel options to Victorians and reduce reliance on private motor vehicles. Victorians who shift their travel from private motor vehicles to public transport will contribute to reducing road congestion and transport emissions.
unit of 2010-11 2010-11 Measure Target Actual
quANTITy Dandenong Rail Corridor – Westall Station and Stabling upgrade per cent 100 90 (35) Laverton Rail upgrade per cent 100 100 Metro Train – procurement of new rolling stock per cent 55 65 Growth Area Stations – completion of design and construction work per cent 40 18 (36) Projects continuing: country rail services: Mildura number 1 1 Regional Rail Link per cent 12 6 (37) Regional Train – procurement of new VLocity train rolling stock per cent 60 60 Wodonga Rail Bypass per cent 100 100
quALITy myki customer satisfaction score (state-wide) score 7 7 (38) Projects progressed to agreed plans and timeframes per cent 100 60 (39)
35. The 2010-11 result is due to a delay in commissioning signalling works. All other works have been completed. 36. The 2010-11 result reflects the timing and awarding of the contract for Williams Landing station which required substantial scope change to include pedestrian ramps and the review of the timeframe for the construction of Caroline Springs station. 37. Project timelines are being revised due to cost pressures and re-profiling of Commonwealth funding. 38. The customer satisfaction score is out of a possible maximum of 10. Customer satisfaction was measured in September 2010. The planned measurement in the second half of 2010-11 was not undertaken due to the government’s review. 39. The 2010-11 result reflects the rescheduling of activities for projects detailed in this output.
124 Public transport infrastructure development (continued)
unit of 2010-11 2010-11 Measure Target Actual
TIMELINESS Dandenong Rail Corridor Stage 2 – Westall Rail Upgrade: »completion of stabling date qtr 3 qtr 3 »completing of third track date qtr 3 qtr 3 »commence construction – stabling date Development of new integrated public transport ticketing solution: »complete implementation of metropolitan live operations date qtr 2 n/a (40) » start regional rail and coach live operations date qtr 2 n/a (41) Doncaster Area Rapid Transit (DART): »construction works completed for bus stop upgrade works date qtr 2 n/a (42) » start operations date qtr 3 qtr 2 (43) »construction works completed for two on-road bus priority treatments date qtr 4 qtr 4 Major periodic maintenance works completed against plan: »country passenger rail network per cent 100 96 »metropolitan train network per cent 100 98 »tram network per cent 100 92 Maryborough Rail Services: services commence date qtr 1 qtr 1 Metrol Replacement: »existing reporting (TOPS) system replaced date qtr 3 n/a (44) »existing passenger information system (PRIDE) central computers replaced date qtr 2 qtr 2 »Train Control and Monitoring System (TCMS) in new main control site installed date qtr 3 qtr 3
40. The project has been rephased as a result of the government’s review. The government announced on 21 June 2011 that the Metcard system would continue until the end of 2012. Therefore the completion of myki implementation will not occur until this date. 41. The project has been rephased and rescoped as a result of the government’s review. The government announced on 21 June 2011 that V/Line intercity trains and long distance V/Line coach services will not be included in the myki roll-out until at least steady state operations are achieved in metropolitan Melbourne and major regional centres. The new ticketing system will be used on V/Line’s commuter belt to Geelong, Ballarat, Bendigo, Seymour and Traralgon. 42. The 2010-11 result is due to rescheduling of road works at sites. Works are expected to be completed in the second quarter of 2011-12. 43. The 2010-11 result is due to the early availability of buses. 44. The revised completion date is the fourth quarter of 2011-12, due to the change in software delivery method.
125 Department of Transport Annual Report 2010-11 unit of 2010-11 2010-11 Measure Target Actual Metropolitan Train Communications System replacement: »provisional system acceptance date qtr 3 n/a (45) »system infrastructure installed per cent 100 90 (46) Procurement of 50 new trams – contract awarded date qtr 1 qtr 1 Regional Rail Link: »commence land acquisition process date qtr 2 qtr 2 »tenders sought for first works package date qtr 2 qtr 1 SmartBus: Yellow Orbital Stage 2 – Ringwood to Melbourne Airport: »completion of bus stop upgrade works date qtr 2 n/a (47) »services commence date qtr 3 qtr 1 (48) »completion of on-road bus priority treatments date qtr 4 n/a (49) South Morang: »commence construction early works date qtr 1 qtr 1 »completion of design date qtr 2 qtr 2 »commence construction main works date qtr 3 qtr 2 Sunbury Electrification: commence early works date qtr 2 qtr 1 Vigilance Control and Event Recording System (VICERS): »commence installation on Siemens date qtr 4 n/a (50) »commence installation on Xtrapolis fleet date qtr 2 qtr 4 (51) »completion of commissioning on X’Trapolis fleet date qtr 4 n/a (52)
COST Total output cost $ million 143.1 107.6 (53)
45. The revised completion date is the first quarter of 2012-13, reflecting the additional time required for software development. 46. The revised completion date is the first quarter of 2011-12, due to some site difficulties. 47. The 2010-11 result is due to rescheduling of road works at sites. Works are expected to be completed the second quarter of 2011-12. 48. The 2010-11 result is due to the early availability of buses. 49. The 2010-11 result reflects the additional time required for the design process. This stage is expected to be completed the second quarter of 2011-12. 50. VICERS installation on Siemens trains is planned to commence the fourth quarter of 2011-12 after completion of VICERS installation on the 29 Hillside X’Trapolis trains. 51. The VICERS installation on the 29 X’Trapolis trains commenced the fourth quarter of 2010-11. 52. VICERS X’Trapolis fleet fit out commenced in the fourth quarter of 2010-11 and is expected to be completed the second quarter of 2012-13. The delay is due to the need to align the installation schedule with operational train fleet service requirements. 53. The 2010-11 result reflects the government’s review of myki and a reclassification of costs to the Integrated Metropolitan Public Transport Services and Rural and Regional Public Transport services outputs.
126 Road network improvements Enhance the performance of Victoria’s road network to improve access and efficiency by developing road transport links, lowering transport operating costs and upgrading the quality of roads with respect to safety, and delivering cost effective projects to reduce congestion and improve reliability and travel times for all road users including public transport and freight vehicles.
unit of 2010-11 2010-11 Measure Target Actual
quANTITy
Bridge strengthening and replacement projects completed:
»metropolitan number 3 6 (54) »regional number 22 21
Bus/tram route and other high occupancy vehicle improvements: number 16 21 (55)
Congestion projects completed number 2 14 (56) Local road projects completed: regional number 18 12 (57) Major road improvement projects completed: »metropolitan number 1 1 »regional number 1 0 (58) Other road improvement projects completed: »metropolitan number 1 3 (59) »regional number 4 6 (60)
quALITy Road projects completed within agreed scope and standards: »metropolitan per cent 98 98 »regional per cent 98 98
TIMELINESS Peninsula Link: major design and construction milestones reviewed and reported per cent 100 100 Programmed works completed within agreed timeframes: »metropolitan per cent 95 95 »regional per cent 95 87 WestLink: »preferred route identified date qtr 2 qtr 2 »investigations completed and planning documentation finalised date qtr 4 qtr 4 COST Total output cost $ million 733.2 725.0
54. The 2010-11 result primarily reflects the earlier than expected completion of some projects. 55. The 2010-11 result reflects the completion of some projects from 2009-10. 56. See note 55. 57. The 2010-11 result primarily reflects the delay of some projects due to adverse weather and other issues. 58. The 2010-11 result reflects delays. The project is now expected to be completed in 2011-12. 59. The 2010-11 result reflects the completion of a project from 2009-10 and earlier than expected completion of one project. 60. See note 55.
127 Department of Transport Annual Report 2010-11 Road asset management This output provides programs to maintain the quality of Victoria’s road network. This includes resurfacing damaged pavements, ensuring the integrity of bridges and maintaining roadsides. These activities improve the safety and reliability of the road network for all road users, including on road public transport and freight carriers.
unit of 2010-11 2010-11 Measure Target Actual
quANTITy Bridges maintained: »metropolitan number 898 898 »regional number 2 235 2 235 Pavement resurfaced: »metropolitan m2 (‘000) 1 959 2 062 »regional m2 (‘000) 10 248 10 190 Road network maintained: »metropolitan lane-km 11 391 11 391 »regional lane-km 41 480 41 480
quALITy Bridges that are acceptable for legal load vehicles: »metropolitan per cent 99.6 99.6 »regional per cent 99.5 99.6 Proportion of travel on smooth roads: »metropolitan per cent 91 91 »regional per cent 93 93
TIMELINESS Annual maintenance program completed within agreed timeframes: »metropolitan per cent 100 100 »regional per cent 100 100
COST Total output cost $ million 383.5 480.1 (61)
61. The 2010-11 result includes costs for the repair of flood damage
128 Freight, logistics, ports and marine development This output provides strategic freight infrastructure improvements, regulations and policy to improve the efficiency and safety of the freight and logistics sector, including road and rail based freight and Victoria’s ports and marine environment. This output delivers activities to concentrate freight activities into freight activity centres, reduce barriers to moving freight on rail and reduce the environmental and social impacts caused by the movement of freight. Increasing the concentration, efficiency and accessibility of the freight network will reduce freight movements on local roads, increase the amount of freight carried by rail and maintain the competitiveness of Victoria’s ports and industry.
unit of 2010-11 2010-11 Measure Target Actual
quANTITy Altona/Laverton Intermodal Terminal works per cent 50 40 (62) North East Rail Gauge Standardisation per cent 100 100 Number of accessible local ports number 14 14 Road-based freight accessibility and reliability number 1 0 (63) improvement projects completed
quALITy Road based freight accessibility and reliability projects completed within specified per cent 100 100 scope and standards
TIMELINESS Major periodic maintenance works completed: per cent 100 75 (64) country freight rail network Road-based freight accessibility and reliability per cent 100 0 (65) projects completed within agreed timeframes
COST Total output cost $ million 72.4 79.3
62. The 2010-11 result reflects changes to the timing of land acquisition and pipeline relocation activities. 63. The 2010-11 result reflects delays, with the project now expected to be complete in 2011-12. 64. The 2010-11 result reflects the need to reprioritise resources because of the flood damage rectification works following the January 2011 floods. The scheduled maintenance works are expected to be completed by August 2011. 65. Project delayed due to design issues.
129 Department of Transport Annual Report 2010-11 Transport Outcome Performance
The following section provides results The rationale for the inclusion against the outcome performance of the indicator in the outcome indicators for the five priorities in indicator set is provided. In some the DOT Plan: 2010 update. These cases, indicators are still under indicators are designed to show the development. The results included impact, or outcome, resulting from in this report represent the most the implementation of transport current available data. projects and initiatives and the delivery of budget outputs. They indicate the department’s progress in achieving its objectives for the transport system.
Priority 1: Integrate transport and land use planning
Outcome indicator Target Rationale Result Median trip length by mode Reduce Reducing median trip length indicates 2009-10: that better transport and land-use Bicycle: 3.0 km integration is enabling people to Bus: 7.5 km undertake shorter trips to meet their needs within the community Car driver: 5.4 km Car passenger: 4.3 km Train: 18.3 km Tram: 4.6 km Walk: 0.7 km
Proportion of trips starting or Increase Increasing proportion of trips ending in 2009-10: ending in Central Activities CAAs indicates that CAAs are meeting 2.9% Areas (CAAs) more of the needs of the community and the city is becoming more polycentric in nature
Mode share of trips starting or Increase share of Increasing mode share of sustainable 2009-10: ending in CAAs sustainable travel travel modes to CAAs indicates increased Sustainable (bicycle, modes accessibility and availability of alternative walking, public transport): travel options 19.1% Car (driver and passenger): 79.8% Other: 1.1%
130 Priority 2: Support the Victorian economy with an effective and resilient transport system
Outcome indicator Target Rationale Result Public transport services Rate of growth in A higher rate of growth in public 2009-10: per person services > growth transport services compared to the rate Services growth: 1.8% in population of growth in population indicates that the Population growth: 1.6% provision of public transport services is keeping up with population growth.
Rail capacity and utilisation Increase Increasing metropolitan rail capacity 12 months to May 2011: (morning peak) indicates that more passengers can be Capacity growth: 9.7% carried on metropolitan trains. The rate As at May 2011: of utilisation indicates the extent to which those services are full. Utilisation: 77.4%
Public transport Increase Increasing public transport patronage 2010-11: patronage growth indicates that more people are using Metropolitan patronage public transport and making more growth: 4.1% sustainable trips. Regional patronage growth: 6.9%
Public transport punctuality Increase Increasing public transport punctuality 2010-11: indicates improved quality of public Metropolitan train: 85.9% transport services. Tram (over route): 81.4% Tram (at destination): 71.3% Metropolitan bus: 93.6% Regional train: 84.4%
Public transport service Decrease Decreasing numbers of cancellations 2010-11: cancellations indicates improved quality of public Metropolitan train: 1.3% transport services. Tram: 0.8% Metropolitan bus: <0.1% Regional train: 1.1%
Public transport customer Stable or Increasing customer satisfaction 2010-11: satisfaction improving trend indicates improved quality of public Metropolitan train: 64.2 transport services. Tram: 71.6 Metropolitan bus: 74.2 Regional train: 77.0 Regional coach: 82.8 Taxi: 65.0
Service kilometres Metropolitan: The number of service kilometres Quarter ending March between public transport 6,700 km between public transport infrastructure 2011: infrastructure faults faults indicates the reliability of the Regional: Metropolitan: 16,839 km infrastructure. The greater the distance 13,000 km Regional: 3,130 km between faults, the more reliable is the infrastructure.
131 Department of Transport Annual Report 2010-11 Outcome indicator Target Rationale Result
Disabled access to public 55% compliance By 2012, Victoria is required to have Quarter ending March transport – Vehicles (trains, by 2012 55 per cent of its trains, trams and 2010: trams and buses) buses accessible to the disabled as Metropolitan train: 96% detailed in the Commonwealth Disability Tram: 24% Discrimination Act 2002. Metropolitan bus: 70% Regional train: 89% Regional bus: 50%
Disabled access to public 55% compliance By 2012, Victoria is required to have 55 Quarter ending March transport – Infrastructure (train by 2012 per cent of its train stations, tram stops 2010: stations, tram and bus stops) and bus stops accessible to the disabled Metropolitan train: 40% as detailed in the Commonwealth Tram: 17% Disability Discrimination Act 2002. Metropolitan bus: 40% Regional train: 44% Regional bus: 52%
Public transport costs as a Reduce Reducing public transport costs as a As at May 2011: 3.12% proportion of average weekly proportion of average weekly earnings earnings indicates that people can continue to or are increasingly able to access the economic and social opportunities by public transport.
Smooth travel on urban Metropolitan 90% Smooth travel on urban and regional 2010-11: and regional roads (IRI – < 4.2 IRI roads increases ride quality and reduces Metropolitan: 91% International Roughness Index) the cost of repair and maintenance Regional: 92% < < 4.2 IRI associated with unnecessary rough travel. 4.2 IRI Regional: 93% < 4.2 IRI
Road travel delay Rate of growth A lower rate of growth in travel delays 2010-11: in travel delays compared to the rate of growth in All day travel delay on the < growth in vehicle kilometres travelled indicates whole network: -0.8% vehicle kilometres that vehicular traffic is moving more Vehicle kilometres travelled efficiently on metropolitan freeways and travelled growth: 2.0% arterial roads.
Victorian ports interface costs Competitive port Competitive port interface costs indicate Jul-Dec 2010: interface costs that port operations are efficient and that Imports: $858 freight companies will be attracted to Exports: $840 operating through Victoria’s ports.
Efficiency of the freight Increase tonnes Increasing the tonnes carried per vehicle 2008-09: (1) vehicle fleet carried per indicates increased efficiency of the 4.19 tonnes vehicle freight vehicle fleet.
1. 2008-09 is the latest data available, sourced from the Victorian Transport Facts 2011, released in June 2011.
132 Priority 3: Ensure safety for all transport users
Outcome indicator Target Rationale Result Fatalities arising from 30% reduction Reducing fatalities arising from using Victoria’s 2010: road incidents from 2008-2017 transport network and services indicates improved 288 community safety, reduced trauma for many and better economic outcomes for the community.
Serious injuries arising 30% reduction Reducing serious injuries arising from using 2010: from road incidents from 2008-2017 Victoria’s transport network and services indicates 4,960 improved community safety, reduced trauma for many and better economic outcomes for the community.
Fatalities involving Reducing fatalities arising from using Victoria’s 2010: cyclists and transport network and services indicates improved Cyclist: 8 pedestrians arising community safety, reduced trauma for many and Pedestrian: 39 from road incidents better economic outcomes for the community.
Serious injuries Reducing serious injuries arising from using Victoria’s 2010: involving cyclists and transport network and services indicates improved Cyclist: 383 pedestrians arising community safety, reduced trauma for many and Pedestrian: 595 from road incidents better economic outcomes for the community.
Passenger fatalities on Reduce Reducing fatalities arising from using Victoria’s public 2010-11: public transport transport network and services indicates improved Metropolitan and regional community safety, reduced trauma for many and train: 0 better economic outcomes for the community. Tram: 0 Metropolitan and regional bus: 1
Passenger serious Reduce Reducing serious injuries arising from using 2010-11: injuries on public Victoria’s public transport network and services Metropolitan and regional transport indicates improved community safety, reduced train: 22 trauma for many and better economic outcomes for Tram: 11 the community. Metropolitan and regional bus: 28
Reported crime Rate of growth A lower rate of growth of reported crimes against the 2009-10: against the person in reported person on the public transport network compared Reported crimes growth: on the public crimes < to the rate of growth in metropolitan train patronage 3.4% transport network (1) growth in public indicates increased passenger safety. Public transport patronage transport growth: 1.6% patronage
Satisfaction with Increase Increasing satisfaction with personal safety on 2010-11: personal safety on public transport indicates that people feel safer Metropolitan train: 61.8 public transport on the network and reduces a barrier to using Tram: 70.5 public transport. Metropolitan bus: 75.3 Regional train: 76.6 Regional coach: 85.6 Taxi: 74.8
Fatalities and serious Reduce Reducing fatalities and serious injuries arising 2010-11: injuries arising from from using Victoria’s waterways indicates improved Fatalities: 6 marine incidents on community safety, reduced trauma for many and Serious injuries: 28 Victoria’s waterways better economic outcomes for the community.
1. Growth in reported crimes is influenced by increased reporting opportunity due to increased staffing and intelligence-based deployment of authorised officers to target trouble ‘hot spots’.
133 Department of Transport Annual Report 2010-11 Priority 4: Improve the sustainability of Victorian transport
Outcome indicator Target Rationale Result Percentage of personal 20% by 2020 Increasing the percentage of personal 2009-10: motorised trips in Melbourne motorised trips in Melbourne taken on 12.4% taken on public transport public transport indicates reduced reliance on cars and more sustainable travel.
Weekday private trips by mode Increase share Increasing the share of sustainable travel 2009-10: of sustainable modes for weekday private trips indicates Sustainable (bicycle, travel modes more sustainable travel. walking, public transport): 21.8% Car (driver and passenger): 77.6% Other: 0.6%
Bicycle path use in Increase Increasing bicycle path use provides an 2010: inner Melbourne indication of the growth of commuter 2.8% increase from 2009 cycling, leading to more sustainable travel.
Total volume of freight carried Increase Increasing the total volume of freight 2008-09: (1) by rail in Victoria carried by rail in Victoria indicates that 8.31 billion tonne- more freight is being carried off-road, kilometres saving truck journeys.
Fuel consumption per Reduce Reducing fuel consumption per vehicle 2008-09: (2) vehicle kilometre kilometre for petrol vehicles indicates a Petrol vehicles: 11.46 more fuel efficient car fleet. litres/100 km
Transport greenhouse emissions Reduce Reducing transport greenhouse 2008-09: (3) per vehicle kilometre emissions per vehicle kilometre indicates 384 g/km a more emission efficient fleet.
Car occupancy rate Increase Increasing car occupancy rate indicates 2009-10: that cars have more people in them per 1.20 trip, making them more efficient as a means of travel.
Use of renewable energy Increase Increasing the use of renewable energy 2008-09: (4) in transport in transport indicates a more sustainable Renewable energy use by transport system. road transport: 0.95% Renewable energy use by rail transport: 0.27%
1. 2008-09 is the latest data available, sourced from the Victorian Transport Facts 2011, released in June 2011. 2. See note 1. 3. See note 1. 4. See note 1.
134 Priority 5: Build a collaborative and effective organisation
Outcome indicator Target Rationale Result Turnover resulting from bullying Maintain at zero Maintaining zero turnover resulting from 2010-11: and harassment bullying and harassment indicates a Zero healthier DOT workplace
Staff rating the department a > 80% DOT people being satisfied with the 2010-11: great place to work department and their work is a leading 60% indicator of the health of the workplace
Proportion of people working in Increase Increasing the proportion of people 2010-11: a division other than their own working in a division other than their 3.67% own increases internal capability of DOT people and improves integration of DOT activities
Number and membership of Increase DOT communities of practice provide DOT 2010-11: communities of practice people with the opportunity to network, 5 communities of share ideas and knowledge and access practice with combined professional development opportunities membership of 400 people
Proportion of mentees mentored Increase DOT people gain a greater awareness 2010-11: from outside their division of DOT and build relationships across 85% divisions, particularly when mentored from outside their division
Proportion of people Increase Increasing cross-functional and cross- 2010-11: undertaking cross-functional or divisional work results in improved 79% cross-divisional work internal capability of DOT people and improves integration of DOT activities
Transport infrastructure projects 80% Delivering transport infrastructure 2010-11: delivered on time and budget(2) projects on time and budget indicates On time: 59% that the portfolio’s planning and delivery of infrastructure projects is sound On budget: 82%
2. Project completion has been impacted by unfavourable weather conditions, land acquisition delays and the change of Government in November 2010.
135 Department of Transport Annual Report 2010-11 Better Roads Victoria Trust Account
The Victorian Government’s Better Roads Victoria Trust was established in 1993 under the Business Franchise (Protection Products) Act 1979. The Act specifies that a state franchise levy on petrol and diesel fuel sales would be paid into the Better Roads Victoria Trust. Following the abolition of this levy in August 1997, the Victorian Government has continued to make equivalent payments to the Trust, together with $17 per motor vehicle registration applicable from 1 July 2003 and subsequent indexation. In addition, from 1 July 2005, all receipts collected from traffic cameras and on the spot speeding fines are channelled into the Better Roads Victoria Trust. Funds from the Better Roads Victoria Trust are used for the construction and maintenance of roads in accordance with the Road Management Act, road safety initiatives and traffic integration projects.
Actual $ million Opening cash balance 227.3
SOuRCE OF FuNDS BRV revenue 405.6 Traffic camera and on-the-spot fines revenue 289.3 Total funding available 922.2
APPLICATION OF FuNDS Road projects 288.6 Programs funded from traffic camera and on-the-spot fines revenue Traffic and transport integration management 65.8 Road safety management 41.7 Road system management 181.9 Total payments from trust 578.0 Closing cash balance (1) 344.3
1. The closing balance is fully committed to approved projects.
136 Environmental Performance Report
This environmental performance report has been prepared in accordance with the requirements set out in the ‘Financial Reporting Direction 24 (FRD 24C): Reporting of Office-based Environmental Impacts by Government Departments’. It relates to the department’s office-based activities only. It should be noted that comparatives are only provided where similar data was available for the previous year. Energy
DOT consumes energy for its office facilities located at 121 Exhibition Street, Melbourne and 80 Collins Street, Melbourne. The data below was obtained from energy retailer billing information and represents 100 per cent of sites and 100 per cent of FTE staff.
Indicator 2010-11 2009-10 Electricity green Power Electricity green Power Total energy usage segmented by primary source (MJ) 5,746,042 1,915,347 6,433,010 1,508,977 Greenhouse gas emissions associated with energy use, (1) 2,170 2,417 segmented by primary source (t CO2-e) Percentage of electricity purchased as Green Power (%) 25 (2) 19 Units of energy used per FTE (MJ per FTE) 4,493 (3) 1,498 5,192 1,216 Units of energy used per unit of office area (MJ per m2) (4) 159 53 181 42
Trend reporting:
Energy unit of measure 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 Use per square metre of office space mega joule 212 223 284 263 340 378.5
Explanatory Notes 1. Greenhouse gas emissions are based on the updated Department of Climate Change and Energy Efficiency (DCCEE) National Greenhouse Accounts Factors July 2011. 2. DOT purchased 20 per cent of Green Power and DSE 5 per cent, on DOT’s behalf. 3. Units of energy per FTE decreased by 6.5 per cent from 2009-10. 4. Area at 121 Exhibition Street was 23,643 m2, at 80 Collins Street it was 12,408 m2.
Actions undertaken: Target: »ensuring any new office fit-outs are »reduce DOT’s energy consumption energy efficient in 2010-11 (Target achieved, with a reduction of 4.5 per cent per square »continuing to encourage people to metre of office space) turn off their PCs after hours by running awareness campaigns and »purchase 25 per cent Green Power distributing staff bulletins by February 2010 (Target achieved). »continuing to investigate other energy saving options.
137 Department of Transport Annual Report 2010-11 Waste
The waste generated by processes in DOT is divided into three general classes – recycling, compost and landfill. DOT’s waste management program facilitates the easy segregation of waste materials for recycling, composting or landfill in DOT offices.
The data below is derived from an independent five day waste audit (30 May 2011 – 3 June 2011) conducted at two sites – 121 Exhibition Street and 80 Collins Street – accommodating 100 per cent of DOT staff, including contractors and others (1).
Indicator 2010-11 Landfill Commingled recycling Compost Total units of waste disposed of by destination (kg per year) 18,087 79,627 15,167 Units of waste disposed of per FTE by destination (kg per FTE per year) (2) 9.81 43.22 (3) 8.23 Recycling rate (% of total waste) 84
(4) Greenhouse gas emissions associated with waste disposal (t CO2-e) 21.70 tonnes
Trend reporting:
waste unit of measure 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 Total recycled Kilograms 94,795 91,524 68,602 70,544 94,241 72,749
Explanatory Notes 1. This is the second time a complete five-day audit of all DOT staff (100 per cent FTEs, plus contractors and others) and sites has been conducted. 2. Calculations for FTE figures have been averaged across the two DOT sites; FTE has been defined by the independent waste audit report. 3. Units of waste recycled increased by approximately five kilograms per staff member. 4. Greenhouse gas emissions increased due to a change to the National Greenhouse Accounts Factors released by the DCCEE in July 2011. Under the former factor calculations, the figure would have been 18.09 tonnes.
Actions undertaken: Target: » waste awareness bulletins »generate less landfill waste (Target distributed to all staff not achieved, with an increase of 1.33 kilograms per staff member) »independent waste audit, including a contamination audit, undertaken »increase the units of waste recycled to identify further opportunities (Target achieved, with an increase to reduce waste to landfill and of five kilograms per staff member) promote recycling »increase the units of compost »mobile phone recycling program (Target not achieved with a with Mobilemuster in place decrease by 1.12 kilograms per staff member). »cork, battery and aluminium foil recycling program with Green Collect in place »secure CD recycling program with Recall in place.
138 Paper
The data below is collected through paper retailer billing information and represents 100 per cent of sites and 100 per cent of FTE staff.
Indicator 2010-11 2009-10 Total units of copy paper used (reams) (1) 23,669 22,223 Units of copy paper used per FTE (reams per FTE) 18.5 17.9 Percentage 76-100% recycled content A4 copy paper purchased (%) (2) 54 35 Percentage 51-75% recycled content A4 copy paper purchased (%) 0 0 Percentage 50% recycled content A4 copy paper purchased (%) 33 55 Percentage 0-49% recycled content A4 copy paper purchased (%) 0 0 Percentage A3 paper and coloured paper purchased (%) 13 10
Trend reporting:
Paper unit of measure 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 Use per FTE Reams 18.5 17.9 16.7 19.9 19.9 22.1 Total use Reams 23,669 22,223 22,028 21,493 20,544 24,676
Explanatory Notes 1. DOT has targeted paper consumption as an initiative for 2011-12, as well as auditing the number of printers being used. 2. Paper with greater than 76 per cent recycled content has increased by 42 per cent since 2008-09.
Actions undertaken: Target: » staff awareness campaigns relating »reduce paper consumption per to purchasing of higher recycled FTE (Target not achieved, paper content paper undertaken consumption increased by 0.6 reams per FTE). »monthly bulletin board messages tracking paper usage distributed to all staff »all paper chosen by Corporate Public Affairs for publications has environmental consideration (ISO 14001 or FSC certified) »printer default settings to print double-sided where printers have the capability.
139 Department of Transport Annual Report 2010-11 Water
The data below is based on water meter readings at DOT’s sites, covering 100 per cent of FTE staff.
121 Exhibition Street / 80 Collins Street Indicator 2010-11 2009-10 Potable water use – Tenancy Only (1) – (KL per FTE) 4.38 (2) 3.56 Potable water use – Tenancy Only – (KL per year) 5,604 (3) 4,433 Potable water use – Tenancy Only – (KL per m2) 0.15 0.12
Explanatory Notes » The Blackwater Treatment Plant at 121 Exhibition Street recycled 21,021 kilolitres for the year ending 30 June 2011. 1. The Potable water use – Tenancy Only at 121 Exhibition Street is based on metered water used in the showers, kitchens and tea points. At 80 Collins Street, metered water is measured using the showers, kitchens and toilets. The figures for both sites are combined and averaged. 2. In 2010-11 water consumption by FTE increased by 0.82 kilolitres due to the number of non FTE staff employed by DOT and the loss of water issue (see note 3). 3. Between July 2010 and June 2011, there was faulty thermostatic valve in the shower area on Level 8 at 80 Collins Street and a problem with the flusher on Level 12 at 80 Collins Street. Both issues resulted in the loss of approximately 450 kilolitres of water. 80 Collins Street management are monitoring the meters on a regular basis and report any anomalies as those above to ensure actions are taken to minimise loss of water.
Actions undertaken: Target: »water awareness bulletins »promote the conservation of water distributed to all staff. through awareness campaigns »reduce water consumption by FTE from the 2009-10 consumption level (Target not achieved).
140 Transport
DOT’s car fleet comprises 89 vehicles, excluding executive vehicles. Of these vehicles, 23 per cent are LPG-fuelled, 69 per cent are four cylinder petrol-fuelled and 8 per cent are six cylinder petrol-fuelled. The total fleet numbers are the same as in 2009-10, although the percentage of hybrid vehicles has increased to 31 per cent (1).
Indicator 2010-11 Vehicle data: unleaded Diesel LPg E10 (2) Total energy consumption by vehicles (MJ) 3,901,981 745,791 2,203,237 Nil Total vehicle travel associated with operations (km) 1,306,409 156,205 571,672 Nil
Total greenhouse gas emissions from vehicle fleet (t CO2-e) 282 56 144 Nil
Greenhouse gas emissions from vehicle fleet per 1,000km travelled (t CO2-e) 0.22 0.36 0.25 Nil
Air travel data: Total distance travelled by aeroplane (domestic and international) (km) 1,833,833 (3) Travel to work Survey: Percentage of employees regularly (>75% of work attendance days) using public transport, cycling, 82 (4) walking to and from work or working from home (%)
Trend reporting:
Transport unit of measure 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 Total fuel consumption MJ 6,851,009 8,018,926 8,844,968 9,135,105 10,261,000 12,519,000
(5) Total associated greenhouse t CO2-e 482 578 631 652 741 897 gas emissions
Explanatory Notes 1. The hybrid fleet component increased to 31 per cent from 18 per cent in 2009-10 and 4 per cent in 2008-09. 2. No E10 Fuel was purchased in 2010-11. 3. Figure obtained from reports supplied by Flight Centre Management. 4. Travel to Work survey conducted between 9 May 2011 and 20 May 2011. 5. Greenhouse gas emissions reduced by 46 per cent from 2005-06 to 2010-11.
Actions undertaken: Target: »incorporating more four cylinder, »further reduce vehicle greenhouse LPG and hybrid vehicles into the gas emissions (Target achieved DOT fleet with a 16 per cent reduction in greenhouse gas emissions). »promotion of public transport in lieu of departmental fleet vehicles for work travel.
141 Department of Transport Annual Report 2010-11 Greenhouse gas emissions
The greenhouse gas emissions (1) detailed below have been brought together from the previous sections to show DOT’s total greenhouse footprint. All areas, except for waste, recorded decreases in emissions (see explanatory note 2).
Indicator 2010-11 2009-10
Greenhouse gas emissions associated with energy use (t CO2-e) 2,170 2,417
Greenhouse gas emissions associated with vehicle fleet (t CO2-e) 482 578
Greenhouse gas emissions associated with air travel (t CO2-e) 482 518
(2) Greenhouse gas emissions associated with waste production (t CO2-e) 21.70 18.29
(3) Greenhouse gas emissions offsets purchased (t CO2-e) 0 0
Explanatory Notes » Decreases in all areas for greenhouse gas emissions except waste (decrease of 376 tonnes overall from 2009-10). 1. Greenhouse gas emissions are based on the DCCEE National Greenhouse Accounts Factors July 2011. 2. Greenhouse gas emissions associated with waste production increased due to a change to the National Greenhouse Accounts Factors released by the DCCEE in July 2011. (Under former factor calculations, the figure would have been 18.09 tonnes). 3. DSE purchased carbon offsets to cover the emissions of the Victorian Government’s passenger vehicle fleet between 2002 and 2008-09. This commitment is currently being evaluated to assess its effectiveness and to ensure it takes into account new proposals such as the Commonwealth Carbon Farming Initiative (CFI) and a national carbon price
Actions undertaken: Target: »refer to Energy, Transport and »refer to Energy, Transport and Waste sections. Waste sections.
Procurement
Actions undertaken: Target: »embedded environmental »purchase 100 per cent of A4 copy sustainability into DOT contracts paper with at least 50 per cent and procurement processes recycled-content (Target was achieved in 2010-11) »publicise the green section of the stationery catalogue for stationery »consider environmental factors purchases when purchasing furniture »further embed environmental sustainability into DOT contracts and procurement processes
142 Legislation (administered as at 30 June 2011)
As at 30 June Acts administered by Tourist and Heritage Railways the Minister for Public Act 2010 2011, the following Transport This Act promotes the long term legislation was viability of the tourist and heritage Border Railways Act 1922 railway sector and promotes an improvement in the operations of that administered by the This Act ratifies an agreement sector as part of an integrated and between the States of Victoria Minister for Public sustainable transport system. and NSW as to the construction, Transport, the maintenance and operation of Transport (Compliance and railway lines and the construction Miscellaneous) Act 1983 Minister for Roads and maintenance of bridges across »Part II Division 1, Subdivisions the Murray River. and the Minister 2 and 4 for Ports. Bus Safety Act 2009 »Part VI, Division 10 This Act provides for the safe »Part VII, Divisions 4, 4AA, 4A operation of bus services in Victoria. This Act is otherwise jointly Bus Services Act 1995 administered with the Minister for This Act implements a system of Roads and the Minister for Ports. service contracts for certain types This Act improves compliance, of bus services and provides for the enforcement and regulatory safety service standards that are to apply in and service standards to existing rail, the provision of those bus services taxi, bus, marine and port regulatory and other bus services. schemes across Victoria. The Act National Rail Corporation also provides for the licensing of (Victoria) Act 1991 commercial vehicles and for various offences, as well as enforcement This Act approves and gives effect powers relating to railway and to an agreement made between tram safety. the Commonwealth and the States of Victoria, New South Wales, Transport Integration Act 2010 Queensland, and Western Australia »Part 5, Division 1 relating to the establishment and operation of the National Rail »Part 6, Divisions 1 and 2 Corporation Limited. »Part 6, Division 4 in so far as it relates to Victoria Rail Track and V/ Rail Management Act 1996 Line Corporation The main purpose of this Act »Parts 1, 2, 3, 4, 7 and 8 and is to establish a regime for the Schedules 1, 2, 3, 4, 5 and 6 (these management of rail infrastructure provisions are jointly and severally in Victoria. administered with the Minister for Rail Safety Act 2006 Ports and the Minister for Roads). The main purpose of this Act is to This Act creates a new framework provide for safe rail operations in for the provision of an integrated Victoria, including the management and sustainable transport system and accreditation of rail infrastructure. in Victoria. Very Fast Train (Route Investigation) Act 1989 The purpose of this Act is to facilitate the investigation of a route for a very fast train linking Melbourne with other centres within or outside the state.
143 Department of Transport Annual Report 2010-11 Acts administered by the In so far as it relates to the land Melbourne City Link Act 1995 coloured green on Plans numbered Minister for Roads LEGL./08-002 and LEGL./08-003, This Act relates to the construction and operation of the Melbourne Accident Towing Services Act 2007 lodged in the Central Plan Office, except certain sections administered CityLink, and provides for the fixing, This Act aims to promote the safe, by the Assistant Treasurer, and charging and collection of tolls in efficient and timely provision of certain sections jointly administered relation to the use of vehicles in accident towing services through by the Minister for Environment toll zones. licensing the operation of tow trucks and Climate Change and the Road Management Act 2004 and the accreditation of tow truck Assistant Treasurer. drivers and operators and managers The Act establishes a statutory of accident towing services. (These powers are exercised jointly framework for the management of and severally with the Minister the road network, facilitating the Chattel Securities Act 1987 for Ports. This Act is otherwise coordination of various uses of road Part 3 administered by the Assistant reserves for roadways, pathways, Treasurer, the Attorney-General, the infrastructure, and similar purposes. (This Act is otherwise administered by Minister for Corrections, the Minister the Minister for Consumer Affairs.) for Environment and Climate Change Road Safety Act 1986 and the Minister for Health.) This Act provides for the registration This Act makes provision for security of motor vehicles, licensing of interests in motor vehicles, trailers, Local Government Act 1989 drivers, offences involving alcohol and vessels, including registration Clauses 4 and 9(3) of Schedule 11 or other drugs and other provisions of interests. Part 3 provides the and section 123, in so far as it relates regulating the operation and use of registration requirements for to the revocation of local laws made motor vehicles. security interests. pursuant to the powers conferred by »Part 6A is jointly administered with EastLink Project Act 2004 those clauses by reason of section 207 of the Act. the Minister for Crime Prevention. The Act provides for the facilitation Transport (Compliance and of the design, construction, operation, (This Act is otherwise administered Miscellaneous) Act 1983 maintenance and management of by the Minister for Local Government the EastLink Freeway as well as the and the Attorney-General.) This Act is severally administered collection and enforcement of tolls with the Minister for Ports and jointly relating to use of the freeway. This Act provides generally for administered with the Minister for matters to do with local government Public Transport, except: Land Act 1958 in Victoria. The provisions administered by the Minister for »Part II, Division 1, Subdivisions 2 Insofar as it relates to the exercise Roads and Ports relate to the and 4; Part VI, Division 10; and Part of power relating to the leases and revocation of local laws. VII, Divisions 4, 4aa and 4A (these licences under Subdivisions 1 and provisions are administered by the 2 of Division 9 of Part 1 in respect of Major Transport Projects Minister for Public Transport) the land described as Allotment Facilitation Act 2009 18 of Section 12, City of Port »Section 77A (this provision is jointly Melbourne, Parish of Melbourne. The purpose of this Act is to facilitate and severally administered by the South, being the land in Certified Plan the development of major transport Minister for Ports and the Minister No. 119746 lodged in the Central Plan projects. The Act establishes a for Roads) Office of DSE. one stop shop to consolidate and streamline environmental, planning »Part VI and Part VII, Division and heritage approvals for major 3 (these provisions are jointly transport projects which have been administered by the Minister for declared to be of State or regional Public Transport and the Minister economic, social or environmental for Roads) significance. The Act also provides »Section 84A and Part VIIA (these a suite of project delivery powers provisions are jointly administered for the development of major by the Minister for Ports and the transport projects. Minister for Public Transport).
144 Legislation (administered as at 30 June 2011) (continued)
This Act improves compliance, Land Act 1958 Marine Safety Act 2010 enforcement and regulatory safety and service standards to existing rail, Insofar as it relates to the exercise This Act provides for safe marine taxi, bus, marine and port regulatory of power relating to the leases and operations in Victoria. schemes across Victoria. The Act licences under Subdivisions 1 and 2 of Division 9 of Part 1 in respect of Marine Safety Legislation (Lake also provides for the licensing of Hume and Mulwala) Act 2001 commercial vehicles and for various the land described as Allotment 18 offences, as well as enforcement of Section 12, City of Port Melbourne, This Act rationalises the application powers relating to railway and Parish of Melbourne. South, being of the marine safety legislation of tram safety. the land in Certified Plan No. 119746 Victoria and New South Wales in lodged in the Central Plan Office Lake Hume and Lake Mulwala on Transport Integration Act 2010 of DSE. the Murray River border, which has been submerged by the creation of »Part 5, Division 2 In so far as it relates to the land those lakes. »Part 6, Division 3 coloured green on Plans numbered LEGL./08-002 and LEGL./08-003, »Part 6, Division 4 in so far as it Pollution of Waters by Oil and lodged in the Central Plan Office, Noxious Substances Act 1986 relates to Linking Melbourne except certain sections administered Authority by the Assistant Treasurer, and All sections except for sections 30 »Parts 1, 2, 3, 4, 7 and 8 and certain sections jointly administered and 47, which are jointly administered Schedules 1, 2, 3, 4, 5 and 6 by the Minister for Environment with the Minister for Environment and (these provisions are jointly and and Climate Change and the Climate Change, and sections 8, 9, severally administered with the Assistant Treasurer. 10, 11, 12, 13, 18, 19, 20, 21, 22, 23, Minister for Ports and the Minister 23B, 23D, 23E, 23G, 23J, 23K, 23L (These powers are exercised jointly for Public Transport). and 24E, which are administered by and severally with the Minister the Minister for Environment and This Act creates a new framework for Ports. This Act is otherwise Climate Change. for the provision of an integrated administered by the Assistant and sustainable transport system Treasurer, the Attorney-General, the This Act provides for the protection in Victoria. Minister for Corrections, the Minister of the sea and other waters for Environment and Climate Change from pollution by oil and other Acts administered by the and the Minister for Health.) noxious substances. Minister for Ports Marine Act 1988 Port Management Act 1995 Crown Land (Reserves) Act 1978 This Act establishes the Director of All sections and schedules except Marine Safety and provides for the sections 160, 171 and 173, which are Only insofar as it relates to the land objects, powers, and functions of the administered by the Treasurer, and shown as Crown Allotment 18, section Director. In particular, the Director sections 63AA-63J (inclusive), which 12, City of Port Melbourne, Parish regulates marine safety through the are administered by the Minister of Melbourne South, as shown on exercise of its powers and functions. for Finance. Original Plan No. 119746-A lodged in The Act also provides for registration This Act establishes the Port of the Central Plan Office – (LA/32/0012) of vessels, regulation of the operation Melbourne Corporation, Port of known as Station Pier. of vessels, offences involving alcohol, Hastings Corporation, and the prevention of pollution of state waters, (The remaining provisions are Victorian Regional Channels Authority. the adoption of certain international administered by the Minister for The Act also provides for charges conventions, enforcement of various Finance, WorkCover and the Transport and licensing for port use. Accident Commission, the Minister offences through the issue of marine for Major Projects, the Minister for infringement notices, and for Planning and the Minister for Sport, other matters. Recreation and Youth Affairs.)
145 Department of Transport Annual Report 2010-11 Transport (Compliance and Westernport (Crib Point Terminal) Miscellaneous) Act 1983 Act 1963 This Act is severally administered This Act assists the development and with the Minister for Roads and jointly operation of a petroleum terminal administered with the Minister for at Crib Point by providing for certain Public Transport, except: existing and new easements, and clarifying the status of existing » Part II, Division 1, Subdivisions 2 agreements relating to the pipeline and 4; Part VI, Division 10; and Part running from the terminal site VII, Divisions 4, 4aa and 4A (these to Dandenong. provisions are administered by the Minister for Public Transport) Acts passed during »Section 77A (this provision is jointly 2010-11 and severally administered by the Minister for Ports and the Minister Minister for Public Transport for Roads) » Tourist and Heritage Railways »Part VI and Part VII, Division Act 2010 3 (these provisions are jointly Assent 19 October 2010 administered by the Minister for Public Transport and the Minister Minister for Roads for Roads) See VicRoads Annual Report 2010-11 »Section 84A and Part VIIA (these Minister for Ports provisions are jointly administered by the Minister for Ports and the » Marine Safety Act 2010 Minister for Public Transport) Assent 28 September 2010 » Transport Legislation Amendment This Act improves compliance, (Ports Integration) Act 2010 enforcement and regulatory safety Assent 17 August 2010 and service standards to existing rail, taxi, bus, marine and port regulatory schemes across Victoria. The Act also provides for the licensing of commercial vehicles and for various offences, as well as enforcement powers relating to railway and tram safety. Transport Integration Act 2010 »Part 6, Divisions 3A and 3B »Part 6, Division 4 in so far as it relates to the Port of Melbourne Corporation and the Victorian Regional Channels Authority »Parts 1, 2, 3, 4, 7 and 8 and Schedules 1, 2, 3, 4, 5 and 6 (these provisions are jointly and severally administered with the Minister for Public Transport and the Minister for Roads).
This Act creates a new framework for the provision of an integrated and sustainable transport system in Victoria.
146 Whistleblowers Protection Act 2001
Report pursuant to section 104 of »the number and types of disclosed the Act for the year 1 July 2010 to matters taken over by the 30 June 2011: Ombudsman from DOT: Nil » DOT has publicly accessible »the number of requests by procedures for managing complainants to have their disclosures disclosed matters investigated by the Ombudsman due to their »the number and types of dissatisfaction with the way DOT disclosures made to DOT: Nil is investigating the matter (the »the number of disclosures referred circumstances are set out in by DOT to the Ombudsman to section 74 of the Act): Nil determine whether they are public »the number and types of disclosed interest disclosures: Nil matters that DOT declined to »the number and types of disclosed investigate: Nil. matters referred to DOT by the Ombudsman: Nil »the number and types of disclosed matters referred by DOT to the Ombudsman to investigate: Nil
Freedom of Information Act 1982
The Freedom of Information Act 1982 Access to documents (as defined in gives the public a right of access section 5 of the Act) may be obtained to documents held by government only through written request as departments. detailed in section 17 of the Freedom of Information Act 1982. Requests may For the period 2010-11, DOT received be submitted in writing, addressed to: 233 applications. Of these requests, 34 were from Members of Parliament, Freedom of Information Manager 79 from the media and the remainder Department of Transport were from the general public. During PO Box 2797 the reporting period, the department Melbourne VIC 3001 received six requests for internal Telephone: (03) 9655 6380 review, with four subsequently Email: [email protected] progressing to the appeal stage at the Victorian Civil and Administrative Alternatively, requests may be Tribunal (VCAT). A further two submitted online through Freedom requests were appealed to VCAT of Information Online, located at about disclosure of third parties www.foi.vic.gov.au personal information.
147 Department of Transport Annual Report 2010-11 Victorian Industry Participation Policy
In October 2003, the Victorian New Projects Completed Projects Parliament passed the Victorian Industry Participation Policy Act During 2010-11, DOT commenced 6 There were nine projects completed in 2003 which requires public bodies contracts to which the VIPP applied. this period to which the VIPP applied. and departments to report on the Their total value was $317,172,114. Their total value was $123,544,923. implementation of the Victorian The VIPP commitments by contractors The contractors under these contracts Industry Participation Policy (VIPP). under these contracts included: achieved the following: Departments and public bodies are required to apply VIPP in all tenders »an overall level of local content of »an overall level of local content of over $3 million in metropolitan approximately 93 per cent approximately 93.7 per cent Melbourne and $1 million in »137 full-time equivalent jobs »approximately 125 full time regional Victoria. equivalent jobs. »30 full-time equivalent apprenticeships/traineeships were In addition, the following benefits committed to. to the Victorian economy in terms of skills and technology transfer In addition, the following benefits were provided by contractors under to the Victorian economy in terms these contracts: of skills and technology transfer were provided by contractors under »value engineering used throughout these contracts: the project » staff training and skill development, »on-the-job training including on-the-job training »graduate program for engineers »contractor involvement with a involved in the project regional university in the delivery of »applications support, maintenance IT training to university students and integration knowledge to be »training of methods engineers in transferred to local staff production techniques, training »further develop industry operability of boiler makers and welders, by offering integration services and related heavy engineering following the pilot project production processes. »develop specialist port applications capability in Melbourne.
Data for one project was not available at the time of preparing this report.
148 National Competition Policy Compliance
National Reform Agenda Nation Building Program
Infrastructure Australia Through the Nation Building Program, the Victorian and Commonwealth In January 2008, the Commonwealth governments are jointly funding 25 Government announced the projects across the road, rail and establishment of Infrastructure intermodal sectors. Victoria continued Australia, under the Infrastructure the delivery of these projects in Australia Act 2008, to advise 2010-11 under the terms of governments on nationally significant the bilateral Memorandum economic infrastructure projects of Understanding with the in the telecommunications, energy, Commonwealth Government. water and transport sectors. National Transport Plan Infrastructure Australia has a mandate to conduct regular audits Victoria is supporting the national to determine the adequacy, capacity reform agenda of the Australian and condition of nationally significant Transport Council, the Standing infrastructure, as well as: Committee on Transport (SCOT) and the sub-committees of SCOT. »evaluating the business case for new infrastructure, when Gary Liddle, CEO VicRoads, leads commissioned to do so the Productivity and Efficiency work »reviewing and providing advice program, which includes the COAG on measures that would improve Road Reform Plan (CRRP). CRRP’s harmonization of policy and objective is to move the nation to a regulatory regimes that facilitate more effective and efficient system infrastructure development for pricing heavy vehicles. and investment Jim Betts, Secretary, Department »identifying barriers and of Transport, leads the Environment disincentives to investment in work program which includes nationally significant infrastructure. endorsing the National Strategy on Energy Efficiency Implementation During 2010-11, Victoria was proactive Plans. The National Strategy on in engaging with Infrastructure Energy Efficiency includes a number Australia in the development of of significant transport measures. strategies for the nation’s ports and freight networks including the National Ports Strategy and the National Land Freight Strategy. Submissions were lodged for both of these strategies calling on the Commonwealth to have regard to the freight and port priorities of the Victorian Government in setting the policy and reform agenda for nationally significant ports and freight infrastructure.
Through the Intergovernmental Relations Division of the department, Victoria will continue to work collaboratively with Infrastructure Australia as these national policies progress through the Council of Australian Governments in the second half of 2011 and into 2012.
149 Department of Transport Annual Report 2010-11 Secretary’s Attestation of Risk Management
In accordance with Ministerial “I, Jim Betts, certify that the Direction 5.4.4 under the Financial Department of Transport, as at 30 Management Act 2004 and the June 2011, has risk management Victorian Government Risk processes in place consistent Management Framework – and – with the Australian/New Zealand following a management review of Risk Management Standard ISO DOT’s risk management practices – 31000:2009 and an internal control the Secretary makes the system is in place that enables the following attestation executive to understand, manage and satisfactorily control risk exposures consistent with the assessed level of maturity. The DOT Audit Committee verifies this assurance and that the risk profile of the Department of Transport has been critically reviewed within the last 12 months.”
Building Act Compliance
Directions of the Minister for DOT complies with the building Finance require this Annual Report and maintenance provisions of the to include a statement on the extent Building Act 1993. of compliance with the building and maintenance provisions of the Building Act 1993, for publicly-owned buildings controlled by DOT.
Disclosure of Major Contracts Compliance
DOT has disclosed all contracts The disclosed contracts can be viewed greater than $10 million in value at www.contracts.vic.gov.au which it entered into in 2010-2011.
150 Consultant Engagements
No consultants were engaged in 2010-2011 where the cost of the engagement was $100,000 or greater. Details of consultancies under $100,000 In 2010-11, DOT engaged one consultancy (where the total fee payable to the consultant was less than $100,000) at a total approved project fee of $18,150 with expenditure of $0 during the financial year.
Major Publications
Transport Corporate » The Victorian Transport » Department of Transport Plan Report Card 2010 Annual Report 2009-2010 » Track record – issues 43,44,45,46
151 Department of Transport Annual Report 2010-11 Other available information
The Directions of the Minister for »details of changes in prices, fees, »a general statement on industrial Finance, pursuant to the Financial charges, rates and levies charged relations within DOT and details Management Act 1994 require a range by DOT of time lost through industrial of information to be prepared in accidents and disputes »details of major external reviews relation to the financial year. carried out on DOT »a list of major committees sponsored by DOT, the purpose This material is itemised below and, »details of major research and of each committee and the where not published in this report, development activities undertaken extent to which the purpose has is retained by the Accountable by DOT Officer and can be made available to been achieved. Ministers, Members of Parliament »details of overseas visits Requests for information should be and the public on request, subject undertaken by DOT, including a directed to: to the limitations of the Freedom of summary of the objectives and outcomes of each visit Information Act 1982. James Lavery »a statement that declarations of »details of major promotional, public Executive Director pecuniary interests have been duly relations and marketing activities DOT Legal completed by all relevant undertaken by DOT to develop Department of Transport DOT officers community awareness of DOT and Level 12, 121 Exhibition Street the services it provides Melbourne, Victoria, Australia 3000 »details of shares held by senior DOT officers as nominees or held »details of assessments and beneficially in a statutory authority measures undertaken to improve or subsidiary the occupational health and safety of DOT employees »details of publications produced by DOT and where the publications can be obtained
152 DOT contact information
Department of Transport 121 Exhibition Street Melbourne Victoria Australia 3000
Internet: www.transport.vic.gov.au
Telephone: (03) 9655 6666 International: +61 3 9655 6666
Facsimile: (03) 9095 4096 International: +61 9095 4096
Postal address PO Box 2797 Melbourne Victoria Australia 3001
153 Department of Transport Annual Report 2010-11 Disclosure Index Disclosure Index
The Annual Report of the Department of Transport is prepared in accordance with all relevant Victorian legislation and pronouncements. This index has been prepared to facilitate identification of the Department’s compliance with statutory disclosure requirements.
MINISTERIAL DIRECTIONS == Legislation Requirement Page reference
REPORT OF OPERATIONS – FRD guIDANCE
Charter and purpose FRD 22B Manner of establishment and the relevant Ministers 5, 88 FRD 22B Objectives, functions, powers and duties 7, 40 FRD 22B Nature and range of services provided 5-7
Management and structure FRD 22B Organisational structure 6-9
Financial and other information FRD 8B Budget portfolio outcomes 103-110 FRD 10 Disclosure index 155-156 FRD 12A Disclosure of major contracts 150 FRD 15B Executive officer disclosures 89, 95-97 FRD 22B, SD 4.2(k) Operational and budgetary objectives and performance against objectives 111-135 FRD 22B Employment and conduct principles 98-99 FRD 22B Occupational health and safety policy 99 FRD 22B Summary of the financial results for the year 10 FRD 22B Significant changes in financial position during the year 10 FRD 22B Major changes or factors affecting performance 10 FRD 22B Subsequent events 90 FRD 22B Application and operation of Freedom of Information Act 1982 147 FRD 22B Compliance with building and maintenance provisions of Building Act 1993 150 FRD 22B Statement of National Competition Policy 149 FRD 22B Application and operation of the Whistleblowers Protection Act 2001 147 FRD 22B Details of consultancies over $100,000 151 FRD 22B Details of consultancies under $100,000 151 FRD 22B Statement of availability of other information 152 FRD 24C Reporting of office-based environmental impacts 137-142 FRD 25 Victorian Industry Participation Policy disclosures 148 FDR 29 Workforce data disclosures 95-97 SD 4.5.5 Risk management compliance attestation 150 SD 4.2(g) General information requirements 151-152 SD 4.2(j) Sign-off requirements 17
155 Department of Transport Annual Report 2010-11 Legislation Requirement Page reference
FINANCIAL REPORT
Financial statements required under Part 7 of the FMA SD4.2(a) Statement of changes in equity 22 SD4.2(b) Operating statement 20 SD4.2(b) Balance sheet 21 SD4.2(b) Cash flow statement 23
Other requirements under Standing Directions 4.2 SD4.2(c) Compliance with Australian accounting standards and other authoritative pronouncements 25-39 SD4.2(c) Compliance with Ministerial Directions 25 SD4.2(d) Rounding of amounts 27 SD4.2(c) Accountable officer’s declaration 17 SD4.2(f) Compliance with Model Financial Report N/A
Other disclosures as required by FRD’s in notes to the financial statements FRD 9A Departmental disclosure of administered assets and liabilities 82-86 FRD 13 Disclosure of parliamentary appropriations 47 FRD 21A Responsible person and executive officer disclosures 88-89 FRD 103D Non-current physical assets 53-56 FRD 106 Impairment of assets 31, 32-33 FRD 109 Intangible assets 57 FRD 110 Cash flow statements 76-77 FRD 112A Defined benefit superannuation obligations 75 FRD 114A Financial instruments 63-70 FRD 119 Contributions by owners 36, 80-81
LEGISLATION
Freedom of Information Act 1982 147 Building Act 1993 150 Audit Act 1994 18-19 Financial Management Act 1994 25 Whistleblowers Protection Act 2001 147 Victorian Industry Participation Policy Act 2003 148
156 157 Department of Transport Annual Report 2010-11 www.transport.vic.gov.au