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Annual Report 2005-06 Delivering Results

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Annual Report 2005-06 Delivering Results Annual Report 2005-06 Delivering Results Highlights 2005-06 Contract awarded Rapid mobilisation Major milestone The contract was awarded Kamco mobilised its In June 2006 Kamco completed in July 2005 to Kamco to international and local staff documentation of the NTS implement and operate the and established its operations design and operational New Ticketing Solution (NTS) in Melbourne in a very requirements to form the over the next 12 years. short time. basis of solution development. Successful Continuing operator Service negotiations development support Transactional banking An end-to-end software Access agreements have services and initial network-wide prototype was successfully been completed to ensure all retail agency agreements were developed, representing a operators agree to facilitate successfully negotiated. critical element in reducing installation works according the project risk and ensuring to plan. the solution will work for all Victorians. Transport Ticketing Authority – Annual Report 2005-06 1 The Honourable Peter Batchelor MP Minister for Transport Level 26 80 Collins Street Melbourne Victoria 3000 The Honourable John Brumby MP Treasurer of Victoria 1 Treasury Place Melbourne Victoria 3001 Dear Ministers, Transport Ticketing Authority (TTA) 2005-06 Annual Report I have pleasure in submitting the Transport Ticketing Authority’s annual report for the year ended 30 June 2006, in accordance with the provisions of the State Owned Enterprises Act 1992 and the Financial Management Act 1994. Yours sincerely, Prof Michael Pryles Chairman Transport Ticketing Authority (Public Transport Ticketing Body) 23 August 2006 2 Transport Ticketing Authority – Annual Report 2005-06 Contents 1 Highlights 2005-06 4 Chairman’s report 5 CEO’s report 7 Report of operations 16 Financial overview 21 Accountable Officers’ and Chief Finance and Accounting Officer’s declaration 22 Auditor General’s report 24 Income statement 25 Balance sheet 26 Statement of recognised income and expense 27 Cash flow statement 28 Notes to and forming part of the financial statements Transport Ticketing Authority – Annual Report 2005-06 3 Chairman’s report Governing TTA The Board has consistently advocated that the real test of good governance is not just in formal compliance with rules and regulations, but in giving effect to those principles in practice. TTA strongly embraces the Victorian Public Sector values of impartiality, integrity, accountability and transparency inherent in the Code of Conduct. Although the Auditor General’s investigation is still continuing into an alleged breach of the NTS tender probity during 2004-05, the Board has full confidence in TTA’s employees and the rigour with which our Probity Auditor oversaw compliance with the strict probity protocols. Looking ahead It gives me great pleasure to report that for its third consecutive TTA’s work to date has largely been ‘behind the scenes’ and year, TTA continues its strong record of delivery and achievement. not visible to most Victorians. Over the coming year, Victorians will start to see the first evidence of the project roll out, as the Developing Victoria’s New Ticketing Solution NTS equipment is installed on vehicles, in stations and transport interchanges, and the simplicity of smartcards becomes On 12 July 2005, the contract to develop, implement and operate apparent. We look forward to the challenges of the next two the major components of the New Ticketing Solution (NTS) over years for the intensive installation and roll-out, and the staged the next 12 years was awarded to Keane Australia Micropayment program planned for transitioning Victoria’s ticketing to the NTS. Consortium Pty Ltd (Kamco). Critical to the success of this contract is the collaborative teamwork and productive partnership between On behalf of the Board, I wish to thank TTA’s management TTA and Kamco. I am pleased to report that, thanks to the and staff, led by our CEO, Mr Vivian Miners, for their diligence, exceptional effort and commitment from both organisations, enthusiasm and performance during the past year. We look the first three phases of the contract have been completed forward to another year of significant achievements! to TTA’s high standards. The focus of the NTS work during the year has been on the development and refinement of TTA’s solution requirements. TTA and Kamco have worked in consultation with Transport Operators to ensure the solution will meet their and the community’s needs. This collaboration culminated in the Michael Pryles Transport Operators formally confirming that the detailed Chairman solution will meet their requirements. In addition, Kamco demonstrated its prototype for the integrated technology underlying the NTS, re-confirming TTA’s industry-leading approach to delivering proven, interoperable technology within challenging timeframes. Managing Melbourne’s existing ticketing Meanwhile, performance of the existing OneLink ticketing system has continued to attain high levels, including throughout the Commonwealth Games period. During the transitional stage of the NTS, Metlink will continue with the day-to-day management of the existing system. At the same time TTA’s strategic and operational management role will increase as the new system is rolled-out. 4 Transport Ticketing Authority – Annual Report 2005-06 CEO’s report make; the system will automatically calculate the lowest appropriate fare. We believe this to be the first of its kind in the world. During the last year, TTA has developed plans to facilitate customers’ first encounters with the NTS. A mobile, interactive discovery centre and comprehensive customer information program have been developed and are set to be launched in the coming year. Smart for operators This is a project with significant technical challenges with a fundamental goal being customer acceptance. However, productive relationships with Public Transport Operators have been viewed as imperative throughout all stages of the project. Positive stakeholder collaboration and cooperation has helped TTA and the Government in making important design decisions such as assessing device types and customer design options. TTA’s third year has been another intensive one, with real I would like to acknowledge all of the Transport Operators for achievements and progress being made towards delivering their efforts and collaboration. a world-class ticketing solution for Victoria. TTA continues to work collaboratively with the Transport Operators Making good progress to ensure the NTS will address their requirements for improved Following the NTS contract award in July 2005, Kamco rapidly business information, amongst other things. established its offices, key resources and corporate operations in Melbourne, meeting the requirements of the NTS contract’s Smart for Government first phase – Mobilisation. International experience on similar While our prime focus is on delivering a public transport ticketing projects indicates that Kamco achieved a very fast and solution, flexibility is being built into the solution to ensure expansion comprehensive project mobilisation. is possible in the future. With technological and commercial interoperability at its centre, the NTS will provide a platform for The contract with Kamco is business outcome-based with future access and micro-payment usage beyond public transport. appropriate performance measures and Key Performance TTA’s emphasis on applying an ‘open standard’ at the heart Indicators. To ensure these are delivered, the second phase of Victoria’s transport solution will ensure its technological documented the solution requirements in exhaustive detail; interoperability with non-proprietary hardware and software, potential issues were identified but resolved early in the project enabling other potential applications to be developed to use this cycle to further increase the likelihood of an on-time solution smartcard and its infrastructure. It also allows development of rollout starting in 2007. flexible solutions for the next generation and beyond. In parallel, Kamco also delivered the third project milestone, Making it happen a prototype of the final solution demonstrating the ‘end-to-end’ The scale of our challenge over the next 18 to 24 months can be technology integration and capability to deliver Government’s summarised as: fare policy. This prototype forms the foundation for subsequent releases of the ‘system integration’ proving incremental delivery. • five million Victorians to inform and transition to NTS • 20,000 new devices to install This approach forms a significant element of TTA’s risk management regime by providing early visibility and progressive proof of • 8,300 transport operators’ staff to be trained in the usage successful delivery. This is a significant improvement over similar of the NTS. smartcard ticketing projects. To deliver this, TTA successfully implemented an organisational Smart for customers re-structure during June and July 2006. This restructure will The whole NTS project has the customer at the forefront of the position the organisation to deliver on these challenges over design. The NTS will be easy, simple to use, fast and will make the coming 12 months. public transport more accessible. I have pleasure in formally acknowledging the terrific teamwork A critical element of the customer value proposition is the ability and commitment from all TTA’s employees and contractors, to not have to worry about zones, products or complex fare and am confident the team will ensure that we
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