VICROADS ANNUAL REPORT

KEEPING VICTORIANS CONNECTED

2011 – 2012 Table of contents

1 Letter to the Minister 2 Chief Executive’s foreword

3 About VicRoads 5 Part one: Report on operations 6 Connection 12 Safety 17 Integration and sustainability 25 Service

29 Part two: Organisational capability and culture 35 Part three: Corporate governance and structure 40 Part four: Mandatory disclosures

46 Part five: Financial management 53 Part six: Financial statements 103 Disclosure index

The Hon Terry Mulder MP Minister for Roads Level 16 121 Exhibition Street VIC 3000

Dear Minister VicRoads 2011–12 Annual Report I have much pleasure in submitting to you, for your presentation to Parliament, the annual report of the Roads Corporation (VicRoads) for the period 1 July 2011 to 30 June 2012. Yours sincerely

Gary Liddle Chief Executive 17 September 2012

VicRoads Annual Report 2011-2012 1

Chief Executive’s foreword

It’s been another busy year for VicRoads Much of what we achieve at VicRoads is the result of working with others. Road safety is a key example of where we’ve continued our focus on what can be achieved in partnership with government delivering Victorians a sustainable road agencies, local communities and other stakeholders. system that is safe, efficient, reliable and In 2011, achieved its lowest ever road toll with integrated with the rest of the transport 287 fatalities, one fewer than in 2010. system. During the year, we also achieved some significant milestones in upgrading the road network including completing: One of the highlights for me in 2011–12 was the release of VicRoads Strategic Directions 2012–2014. • the Anglesea Road link (section 4A) for the This was a team effort with VicRoads’ Corporate Geelong Ring Road Management Group preparing an initial draft which • the duplication of the Bass Highway between was then improved through feedback from business King Road and Woolmer Road area managers and staff focus groups. • the Kings Road interchange at Taylors Lakes on In the Strategic Directions and more generally over the Calder Freeway • the past year, I have been particularly emphasising a new bridge over Moonee Ponds Creek on the three things - making customers the focus of our M80 Upgrade • business, contributing to an integrated transport the Kororoit Creek Road duplication in Altona system and creating a culture of innovation. Some • the Pound Road upgrade in Dandenong South. examples of these in 2011–12 are outlined below. Another key piece of work in 2011–12 has involved • In our registration and licensing business there planning for our future in terms of reviewing our has been a continued focus on improving structure, functions and processes. Changes will start capability and making our processes more being implemented in the second half of 2012. I efficient. The opening of the new contact centre appreciate the support that our people have shown in Ballarat was a major achievement and securing during this time. funding to build a new registration and licensing As always, I want to thank our staff and stakeholders system was also a significant milestone. across government, business and the community who • Floods in regional Victoria had a big impact on have worked together during 2011–12 to help keep the road network and affected many Victorians. Victorians connected. Our people once again rose to the challenge and got roads up and running, helping people to get I have no doubt that during 2012–13 our people will their lives back on track. The new Road Closures generate new opportunities and come up with new and Traffic Alerts web application particularly ideas about how we can continue to deliver great helped our customers to see what roads were service to our customers. closed and find detour information. • Our people have been working in partnership with others across government to contribute to the development of a metropolitan planning

strategy and a Victorian freight and logistics plan, both of which will be launched in 2013 and Gary Liddle provide key inputs to VicRoads’ integrated Chief Executive planning. • VicRoads is coordinating the P-Drivers Project which is one of the largest and most complex scientific research studies into driver education in the world. At 30 June 2012, we had 8,670 participants involved in the trial.

VicRoads Annual Report 2011-2012 2

About VicRoads

VicRoads is a Victorian statutory • providing registration, licensing and accreditation authority that was established under the services for the transport system • developing and implementing effective Transport Act 1983 and continued under environmental policies, strategies and the Transport Integration Act 2010. Its management systems annual expenditure is over $2 billion. It is • providing technical, project management, consultancy and information services relating to subject to the general direction and the transport system control of the Minister for Roads. • providing and disseminating information to Victorians about the road system. Purpose Powers VicRoads’ purpose is to support economic prosperity and liveability by shaping the development and use of VicRoads’ powers are outlined in sections 88 and 89 Victoria’s road system as an integral part of the overall of the Transport Integration Act 2010. In general, transport system. VicRoads has the power to act as necessary or convenient to achieve its object and functions. VicRoads also has powers under a number of other Object acts and their associated regulations including: VicRoads’ primary object is outlined in section 86 of • Accident Towing Services Act 2007 the Transport Integration Act 2010 and includes: • EastLink Project Act 2004 • Melbourne City Link Act 1995 • working with others to ensure that the road • Road Management Act 2004 system operates as part of an integrated transport • Road Safety Act 1986. system that seeks to meet the needs of all transport system users • managing the road system in a way that supports Government priorities a sustainable Victoria by encouraging sustainable transport modes and seeking to improve the VicRoads develops strategies and actions in the environmental performance and minimise context of Government strategies and priorities. adverse environmental impacts from the road Strategies that will particularly impact on VicRoads system include: • contributing to social wellbeing by providing • : access to opportunities and supporting liveable Metropolitan planning strategy This will outline communities urban planning directions to ensure that the valued aspects of Melbourne are protected while • promoting economic prosperity through efficient allowing for future needs. The strategy will and reliable movement of persons and goods contribute to the overall vision for the State, • working with others to reduce deaths and injuries including links with regional Victoria. arising from road crashes. • Victorian freight and logistics plan: This will set out the preferred long-term principal freight Functions network to maximise the contribution of freight and logistics to the productivity and liveability of VicRoads’ functions are outlined in section 87 of the Victoria. Transport Integration Act 2010 and include: • Road safety strategy and action plan: These identify strategies and actions to further reduce • planning for the road system as part of an road deaths and serious injuries. integrated transport system • Victorian families statement: This is an approach • constructing and maintaining roads and roadsides to engaging with families about what is needed to • operating the road system by managing access improve the quality of family life. and controlling use • leading the development and implementation of Reducing red-tape for business and making strategic and operational policies and plans to regulations that are efficient, effective and transparent improve the safety of the road system for all users are also Government priorities. VicRoads administers a wide range of regulation and contributes to regulatory review and reform across Victoria and Australia.

VicRoads Annual Report 2011-2012 3

At a national level, VicRoads is contributing to reform initiatives for heavy vehicles that have been agreed by the Council of Australian Governments. The reforms aim to improve national road freight productivity and safety, reduce costs for freight operators and find better ways to fund and price infrastructure that supports efficient freight movement. In delivering the Government’s transport priorities, VicRoads’ staff work in partnership with federal, state and local government agencies, businesses and their associations and communities. By working together we enhance Victoria’s liveability and opportunities for growth and prosperity.

VicRoads’ strategic directions VicRoads develops three-year strategic directions that describe the vision, purpose and objectives of our organisation and what we need to focus on over a three-year period to achieve them. Initiatives to support the strategic directions are considered during VicRoads’ annual business planning process and are reflected in VicRoads’ annual corporate plan. Over the past three years, VicRoads’ programs and projects have been developed and delivered against VicRoads Strategic Directions 2010-2012 which focuses on: • providing reliable access and minimising congestion • improving road safety • making the transport system more sustainable • improving asset management • collecting, managing and using information to better support decision-making • improving customer service and community engagement • developing organisation capability and culture. VicRoads’ projects and programs for 2012–13 and beyond will be developed to contribute to VicRoads Strategic Directions 2012–2014 which was released in June 2012.

VicRoads Annual Report 2011-2012 4

PART ONE :

Report on operations

VicRoads Annual Report 2011-2012 5

Connection

VicRoads builds, operates and maintains Dingley Arterial the arterial road system to help people Springvale Road to Perry Road, Keysborough access social and economic A 3.5 kilometre divided road link is under construction, directly connecting to the Dandenong opportunities. Bypass, as the next stage in the 19 kilometre Dingley route between Moorabbin and Dandenong. This $74.6 This chapter focuses on construction and million project is funded by the Victorian Government maintenance activities throughout Victoria and and is scheduled to open in early 2013. initiatives to help keep traffic moving in metropolitan areas. Programs that focus specifically on VicRoads’ Geelong Ring Road contribution to a more sustainable transport system Anglesea Road connection (Section 4A) are in the ‘Integration and sustainability’ chapter. A 2.5 kilometre extension of the Ring Road, including an overpass of the at Waurn Ponds, opened in December 2011. This $125 million project Road system development was jointly funded by the Victorian and Australian Governments. VicRoads develops the road system to meet the challenges of changing transport demands and Geelong Ring Road responds to growth by planning and delivering Princes Highway connection (Section 4B) accessible and effective road links. These connect Victorians to friends and social activities and aim to A 5 kilometre freeway connection is under support business with efficient connections between construction from west of Anglesea Road to the the source of their goods and markets. Princes Highway at Waurn Ponds. This $110 million project is jointly funded by the Victorian and Australian Governments and is scheduled to open in 2013. Freeways and highways Goulburn Valley Highway Significant construction works completed or Nagambie Bypass progressed on Victorian freeways and highways during 2011–12 to improve safety, reduce congestion The next stage in the progressive upgrading of the and enhance road freight efficiency are outlined Goulburn Valley Highway includes constructing a 13.4 below. kilometre freeway bypass to the east of Nagambie and duplication of the highway for 3.5 kilometres to the Bass Highway north of the town. Highway duplication works were Lang Lang to Anderson duplication completed in November 2011. This $188 million The Bass Highway is being progressively upgraded project is jointly funded by the Victorian and Australian between Lang Lang and Anderson. The section from Governments, with the freeway bypass scheduled to King Road to Woolmer Road was completed in open in late 2012. November 2011. The final stage is well underway with M80 Ring Road Upgrade highway duplication works continuing for 2.2 kilometres between Woolmer Road and Coast Works continued along 23 kilometres of the 38 Road.Construction of a new link road is also taking kilometre freeway route between Laverton North and shape to divert Melbourne-Phillip Island traffic away Greensborough. In addition to road and bridge works from the Anderson roundabout. This $131.4 million to provide at least three lanes in each direction, the project is funded by the Victorian Government and is project includes improvements to key interchanges scheduled for completion in early 2013. and an electronic freeway management system. Sections under construction are between the Calder Calder Freeway Freeway and Sydney Road; Western Highway and Kings Road interchange, Taylors Lakes Sunshine Avenue; and Edgars Road and Plenty Road. As the next stage of safety improvements between They will be progressively opened in stages during Keilor and Diggers Rest, Kings Road was extended and 2013 and 2014. directly connected to the Calder Freeway via a new A major milestone was achieved in mid-2012 with interchange. The $62 million project opened in traffic switched on to the new bridge over Moonee January 2012 and was jointly funded by the Victorian Ponds Creek. The Victorian and Australian and Australian Governments. Some project savings Governments have committed $1.2 billion for current were redirected to complete safety improvement works on this $2.25 billion project. works at the nearby Sunshine Avenue freeway entry.

VicRoads Annual Report 2011-2012 6

Princes Highway (East) • Princes Highway duplication, Winchelsea to Colac Traralgon to Sale duplication • Western Freeway Bacchus Marsh Link • Construction is underway for highway improvements upgrade, South between Wurruk and Sale as the next stage to upgrade Freeway to south of Cranbourne-Frankston Road. the 43 kilometre highway route to Sale. Roadworks on this 4 kilometre section are scheduled for completion Metropolitan roads in early 2013. Planning is continuing for future sections between Traralgon East and Kilmany with Victoria’s metropolitan arterial roads are important $175 million currently committed by the Victorian and connections that require ongoing improvements to Australian Governments for these works, scheduled maintain accessibility and reliability. In 2011–12, for completion in 2016. VicRoads completed the following improvements: • Princes Highway (West) Kororoit Creek Road duplication between Grieve Waurn Ponds to Winchelsea duplication Parade and Millers Road including an overpass of the rail line at Altona This is the next stage in the progressive upgrade of the • Pound Road upgrade at Hampton Park, between Princes Highway as a four lane divided road to Colac. the and the South Construction is underway from where the Geelong Gippsland Highway Ring Road (Section 4B) will connect to the Princes • Princes Highway East intersection Highway at Waurn Ponds, and continuing for 23 reconfiguration, Cardinia Road, Pakenham. kilometres to Winchelsea. This $220 million project is jointly funded by the Victorian and Australian In addition to the freeway and highway projects Governments. It is scheduled for completion in 2014. mentioned previously, metropolitan road projects that were progressed in 2011–12 included: Sale to Longford flood protection • Clyde Road duplication at Berwick, between High Street and Kangan Drive Work to reduce the risk of the highway closing due to • Hallam Road upgrade at Hampton Park, between floods is progressing well. Two new bridges are Pound Road and Ormond Road designed to cater for a 1 in 100 year flood and the • Plenty Road duplication at South Morang new road sections for a 1 in 20 year flood event. This between Gordons Road and Riverdale Boulevard $57 million project is funded by the Victorian • Government. It is scheduled for completion in 2013. Palmers Road rail overpass at Williams Landing. Western Highway Regional arterial roads Ballarat to Stawell duplication The construction and development of regional arterial The next stage in the progressive upgrading of the roads supports the liveability of regional communities highway as a four lane divided road for 110 kilometres and provides access to jobs and services. Rural arterial through to Stawell is underway. Construction is road improvements help to create better links occurring on three work fronts covering 34 kilometres between regional centres and boost economic activity between Ballarat and Beaufort, with all works on this in regional Victoria. During 2011–12, VicRoads section scheduled for completion in 2014. Planning is completed the following road projects: continuing for future stages between Beaufort and Stawell with $505 million currently committed by the • Breakwater Road new bridge and road Victorian and Australian Governments. realignment – east of Barwon Heads Road to Tucker Street, Belmont Planning future road upgrades • Geelong-Bacchus Marsh Road widening, Lara In addition to the above works, VicRoads continued to • Ironbark Road carriageway duplication, Barnard plan future road upgrades to meet changing demands Street to Don Street, Bendigo including: • Murray Valley Highway overtaking lanes, Darbyshire Hill • Dingley Bypass, to Westall Road • Princes Highway West shoulder sealing, Heywood • Kilmore-Wallan Bypass to the South Australia Border • • Princes Highway West overtaking lanes, West of • Melbourne Airport Link to Outer Metropolitan Terang Ring Reservation (including Bulla Bypass) • Western Highway overtaking lanes between Nhill • New Murray River bridge crossings at Echuca, and Kaniva as part of the Western Highway Swan Hill and Yarrawonga upgrade, Stawell to South Australia border.

VicRoads Annual Report 2011-2012 7

Road system operation • Main Road East / Main Road West, St Albans • Burke Road, Glen Iris As Victoria’s population grows and the demand for • Murrumbeena Road, Murrumbeena. travel increases, some level of road congestion is In 2011–12, VicRoads undertook detailed planning and inevitable. Congestion minimisation measures help to development work for Mitcham Road, Rooks Road improve the liveability of a city, efficiency of the and Springvale Road. The Government has allocated delivery of goods and services and ultimately improve $350 million in the 2012–13 State Budget to connectivity of people using the arterial road network commence construction at these three level across the State. crossings, for completion by late 2014.

Congestion improvements Improving freight efficiency During 2011–12, VicRoads delivered a range of The previous section included some of the road projects aimed at reducing congestion and ensuring improvement projects that will contribute to the smoother traffic flows at critical locations on the efficient movement of freight. Other initiatives that are metropolitan arterial and freeway road system contributing to freight efficiency include: including: • National Heavy Vehicle Regulation: VicRoads is • / Golden Way new intersection working with the National Transport Commission, signals, Bulleen the Commonwealth, and all other states and • Eastfield Road /Morinda Road, new intersection territories to implement a body of national heavy signals, Ringwood East vehicle law and a national heavy vehicle regulator • Middleborough Road traffic signal improvements, that will be based in Queensland. The objective of Blackburn this reform is to improve national road freight • Stud Road / Coleman Road intersection productivity and safety and reduce costs by improvements, Wantirna. removing inconsistent regulatory arrangements In June 2011 the final section of the $1.39 billion M1 between jurisdictions. Upgrade project was delivered with a fifth lane • Heavy Vehicle Charging and Investment Reform provided each way on the , resulting Project (HVCIR): VicRoads is also contributing to in increased capacity for more than 1,000 extra the implementation of the Council of Australian vehicles to cross the bridge during peak times. Shortly Governments’ HVCIR to consider alternative after opening these extra lanes, traffic flow improved models of heavy vehicle charging and investment. from 36 km/h to 76 km/h in the morning peak, and The objective is to promote a more efficient, from 44 km/h to 73 km/h in the afternoon peak. productive and sustainable provision and use of freight infrastructure. It is a national project, All freeway and bridge works are now complete along funded by Australian, state, territory and local the 75 kilometre M1 corridor between Werribee and governments. VicRoads’ Chief Executive is the Narre Warren. With travel patterns returning to normal Chair of the HVCIR Board. after 12 months of operation, a full evaluation of the • Improving heavy vehicle access: Work continues M1 upgrade is underway to confirm the traffic, safety, to address the growing freight task by providing and economic benefits achieved by the project. greater access for safer and more productive Level crossing removals heavy vehicles. Typically these vehicles are larger and/or heavier and are equipped with better The Metro Level Crossing Blitz initiative aims to technology to mitigate road safety risks and remove level crossings in the metropolitan area to reduce impacts on infrastructure. Activities in improve traffic flow and reduce travel times. As part of 2011–12 included: this initiative, the Victorian Government has identified - evaluating the trial of next generation high the following priority sites: productivity freight vehicles and • Mitcham Road, Mitcham commencing the development of options for • Rooks Road, Mitcham future access arrangements - • Springvale Road, Springvale approving an increased network for road • , Bayswater trains around Mildura/Swan Hill - • Scoresby Road, Bayswater approving new routes for B-doubles - providing permits for heavy vehicles under • North Road, Ormond Performance-Based Standards. • Blackburn Road, Blackburn

VicRoads Annual Report 2011-2012 8

Ongoing activities Work plans to address the risk on these high priority roads are being developed across the State and VicRoads continued to deliver a range of day to day treatments have been completed on a significant activities that contribute to efficient, safe and reliable number of sites. Treatments include roadside burns travel for road users including: with the CFA, removing dangerous trees and grass mowing. • periodically reviewing and optimising the operation of traffic signals and other Intelligent Transport Systems(ITS) Managing wind farm impacts • operating a Traffic Management Centre that To help achieve the Australian Government’s performs day to day functions and maintains a renewable energy target, a number of wind farms coordinated response and information exchange have been constructed in regional Victoria and more on road network operations are planned. Wind farm construction requires many • assessing requests for arterial road traffic truck trips which often involve the transport of heavy management associated with planned and special materials. This has damaged roads in a number of events and undertaking surveillance to ensure areas, particularly south western Victoria. compliance with permit conditions • providing an incident response service to respond In 2011–12, VicRoads developed guidelines for to incidents and emergency management on assessing wind energy projects and associated traffic freeways and arterial roads management plans to help reduce their impact on • providing traveller information to ensure the arterial roads. The guidelines include a method for public is provided with accurate and timely obtaining contributions from developers, while also information about on road incidents and hazards, specifying their obligations when accessing their roadworks and emergency road closures. In projects from the arterial road network. The guidelines 2011–12, traveller information systems such as are helping VicRoads to form collaborative variable message signs were completed for the relationships with wind farm developers. They give all Geelong Ring Road at Corio and the Great Ocean parties a clear understanding of the information Road at Lorne. In addition, 13 variable message required for developing traffic management plans, and signs were also installed at strategic locations an early indication of developers’ possible financial within the Melbourne metropolitan area. obligations in relation to damage to the arterial road network.

Road system maintenance Regular maintenance Maintenance activities aim to minimise transport In 2011–12, VicRoads maintained around 53,000 lane operating costs, improve road safety and ensure the kilometres of arterial roads and more than 3,150 community receives maximum benefit from bridges. Activities included: investment in road infrastructure. • inspections, day-to-day repairs, resurfacing and road marking, snow clearing, rehabilitation and Bushfire risk assessment patching The Victorian Bushfire Royal Commission • maintenance of all bridge structures and repairs recommended that VicRoads implement a systematic • maintenance of more than 80,000 hectares of statewide program of bushfire risk assessment for all road reserves, including day-to-day tasks such as arterial roads under its management. fire management, grass cutting, litter collection, maintenance of toilet blocks, weed and In response to this, VicRoads has revised and released vegetation management, as well as 13 the Fire Management Code of Practice and Road geotechnical hazard projects to prevent land slips Bushfire Risk Assessment Guidelines and tools. on the arterial road network VicRoads has completed the process of identifying • maintenance of road services including on-road high risk roads. Site investigations have been electrical assets, more than 3,400 sets of traffic completed in some parts of the State and are in signals, street lighting, and electrical and other progress in others. These are occurring in partnership signage. with local councils, the Department of Sustainability and Environment and the Country Fire Authority (CFA).

VicRoads Annual Report 2011-2012 9

VicRoads monitors all urban freeways and nearly a Key performance indicators quarter of Melbourne’s metropolitan arterial road In 2011–12, VicRoads achieved the targeted number network to determine the amount of travel, travel of local road projects and bridge projects. delay and travel time variability. Travel delay in the AM peak in 2011–12 was 0.83 min/km which is consistent VicRoads did not meet the target in relation to arterial with an increase of approximately one per cent per road improvement projects. Four projects originally year since 2001–02. expected to be completed in 2011–12 will now be completed in 2012–13 while two projects planned for In the PM peak, travel delay was 0.71 min/km which is completion in 2012–13 were completed in 2011–12 slightly below an increase of approximately two per ahead of schedule. cent per year since 2001–02. These results were achieved despite an increasing trend in road travel of VicRoads met the targets/limits in relation to road and 1.5 per cent per year, measured by vehicle kilometres bridge maintenance, with the exception of distressed travelled on the monitored network. pavement. VicRoads undertook additional pavement treatments in 2011–12 to help manage the increasing Despite an increase in 2011–12, the trends over the percentage of distressed pavement contributed to by last 10 years suggest that variability has been higher rainfall in 2011–12. decreasing in the morning peak and has remained relatively stable in the afternoon peak.

Table 1. Number of road and bridge projects completed

2009–10 2010–11 2011–12

Target/ Target/ Target/ Actual Actual Actual limit limit limit Number of arterial road 13 11 7 10 14 12 improvement projects completed Number of local road projects 10 15 18 12 3 11 completed Number of bridge strengthening and replacement projects 13 13 25 27 26 27 completed

Table 2. Travel delay and variability of travel time Monitored arterial metropolitan roads and freeways

2009–10 2010–11 2011–12

Travel delay (metropolitan) am peak 0.81 0.72 0.83 (min/km) pm peak 0.71 0.74 0.71 Variability of travel time (metropolitan) am peak 17.2 20.4 21.0 (% difference in travel times due to delay/ pm peak 19.3 19.2 % extra time required to arrive on time) 17.8

VicRoads Annual Report 2011-2012 10

Table 3. Road and bridge maintenance

2009–10 2010–11 2011–12 Target/ Target/ Target/ Actual Actual Actual limit limit limit Road pavement maintained 52,871 52,871 52,871 52,871 53,263 53,263 (lane kilometres) Number of bridges maintained 3,091 3,140 3,133 3,133 3,158 3,158 Pavement treatments, including resurfacing and strengthening 11,157 10,952 12,207 12,253 12,200 12,701 (’000 square metres) 1 Distressed pavement (% of total length) Regional N/A N/A N/A N/A 6.6 7.5 Metropolitan N/A N/A N/A N/A 7.1 8.0 Structures with Level 4 defects (%) Regional 3.2 3.0 3.2 3.1 3.2 3.1 Metropolitan 1.2 1.0 1.2 1.0 1.2 1.1

1. Distressed pavement is a new performance indicator. This measure replaces the smooth travel performance measure (reported in previous years) which was found to be an inadequate indicator of the condition of the network.

VicRoads Annual Report 2011-2012 11

Safety

VicRoads works in partnership with the Safer roads Transport Accident Commission (TAC), Under the Safe System approach, roads and roadsides Victoria Police, the Department of are designed and maintained to reduce the risk of Justice, local communities and other crashes occurring and to lessen the severity of injury if key stakeholders to deliver road safety a crash does occur. benefits to the community. The Transport Accident Commission (TAC) is funding the Safer Road Infrastructure Program (SRIP) which Victoria is committed to the National Road Safety aims to reduce the incidence and severity of run-off- Strategy that was launched in May 2011 by the road and intersection crashes on arterial roads. At 30 Australian Transport Council. It is based on Safe June 2012, projects totaling $515 million under stage System principles and has a guiding vision that no three of SRIP were approved, with 571 projects person should be killed or seriously injured on completed. Australia's roads. The target for reducing road trauma VicRoads also delivers other infrastructure projects is at least 30 per cent. Victoria’s road safety strategy funded by the Motorcycle Safety Levy’s Blackspot and action plan are aligned with the national strategy. Program and the Australian Government’s Nation Both strategies place human tolerance to injury at the Building Blackspot Program. core of safe road system design. A Safe System Table 1 shows the expenditure and number of projects supports alert and safe driving behaviour, but completed under these road safety infrastructure recognises that crashes will still occur and that the programs in 2011–12. impact energy must be managed to prevent serious injuries and fatalities. VicRoads management of a Safe System focuses on: • improving the safety of Victoria’s roads and roadsides • increasing the safety of vehicles on Victoria’s roads • improving the safe behaviour of Victorian road users.

Table 1. Road safety infrastructure programs

2011–12 2011–12

Expenditure ($m) No. of projects completed Safer Road Infrastructure Program 94.3 83 Australian Government’s Nation Building Program 11.7 61 Black Spot Program Motorcycle Black Spot Program 3.6 9 (funded by TAC’s Motorcycle Safety Levy) TTotalTototTotalalal 1109.609.6109.6 115353153

VicRoads Annual Report 2011-2012 12

Some of the projects that VicRoads delivered in • Intelligent Speed Assist (ISA) trial: The ISA trial 2011–12 included: developed and tested a speed monitoring device to help recidivist drivers who speed, modify their • Centreline barriers: In 2011, VicRoads began a speeding behaviour. Seventy-seven drivers trial of centreline wire rope barriers along a 2.3 participated in the trial to test the devices. A kilometre section of the South Gippsland further 535 drivers were involved in the trial of a Highway, near Koo Wee Rup. The barriers classroom based program. An evaluation report is separate traffic travelling in opposite directions currently being prepared. and aim to reduce the occurrence and severity of • Trial fatigue alert technology with heavy vehicle head-on and right-hand run-off road crashes. A industry: Heavy vehicle drivers are over post treatment evaluation indicated that the represented in fatigue related crashes. VicRoads is centre-line wire rope barriers appear to improve working with the heavy vehicle industry to safety as a result of reduced vehicle speeds and develop and trial fatigue alert technology installed reduced potential for head-on crashes. in heavy vehicles. This technology allows heavy • Princes Highway East Safety Route Project: This vehicle drivers to monitor their fatigue crash risk $36 million TAC funded project provides an and take appropriate interventions and actions. innovative route based approach to deliver road safety benefits along a 430 kilometre stretch of the Princes Highway East between Bunyip and the Safer road users New South Wales border. This stretch of road has the highest number of casualty crashes compared Encouraging the consistent and predictable behaviour with other Victorian highways with a similar of road users by ensuring they are well informed, transport role. Work commenced in 2011 and is educated and acting within the rules of the system is due to be completed in 2013. critical to road safety. Licensing, education, road rules, • Speed limit review: The 2011 Victorian Speed enforcement and sanctions all contribute to this. Limit Review investigated opportunities to simplify speed limits on the road network, provide more Young driver programs consistency in the application of the Speed Zoning Guidelines and assist motorists to better Initiatives to improve young driver safety during recognise and comply with speed limits. After 2011–12 included: considering more than 600 submissions and • results of the investigations, VicRoads will Leaner Driver Mentor Program (L2P): Through implement actions from the review. TAC funding, VicRoads has supported 55 registered local government and community based organisations across Victoria to provide Safer vehicles supervised on-road driving experience to learner drivers who have difficulty accessing a car and/or Safer vehicles lessen the likelihood of a crash, simplify supervising driver. Participants are now the driving task and protect occupants and vulnerable collectively accruing over 10,000 driving hours users in the event of a crash. Increasingly, vehicles will per quarter, and L2P is on track to engage 1,800 communicate with roads and other vehicles to young people in supervised driving practice. automatically engage systems that protect road users • P Drivers project: The P Drivers Project is one of when the risk of a crash increases. During 2011–12, the largest and most complex scientific research initiatives to improve vehicle safety included: studies in the area of driver education in the world. Managed by VicRoads, this collaborative • Electronic Stability Control (ESC): ESC is an project is funded by VicRoads, the Transport active safety feature that helps prevent crashes by Accident Commission, Transport for NSW, stabilising vehicles when they begin to skid. On 1 Australian Department of Infrastructure and January 2011, Victoria became the first Transport, Royal Automobile Club Victoria, NRMA jurisdiction in Australia to mandate ESC. For Insurance and the Federal Chamber of passenger vehicles manufactured after 31 Automotive Industries. The research trial was December 2010, it is a condition of first launched in October 2011. By the end of June registration that ESC is fitted. At 30 June 2012, 2012, there were 8,670 participants in the trial, of 270 vehicle models have been certified as ESC a targeted total of 28,000 participants. compliant. In 2011–12, 86 per cent of new vehicles sold in Victoria were fitted with ESC as standard, compared with 76 per cent in 2010–11.

VicRoads Annual Report 2011-2012 13

Early childhood road safety education • Road User or Abuser bicycle campaign: A six- week social media campaign using Facebook was VicRoads works in collaboration with partners to launched in February 2012. It provided a forum provide a range of road safety education resources for bike riders and drivers to come together to and programs to prepare children and young people discuss their concerns about sharing Victoria's to become safe and independent road and transport roads. The campaign addressed key topics each users. Initiatives in 2011–12 included: week, including relationships between riders and drivers, rules and tips, visibility, rider and driver • delivering 531 ThingleToodle education sessions points of view, confessions and conciliation. reaching over 10,000 children throughout • Victoria Look for bike riders sticker pack: In June 2012, VicRoads launched a sticker pack to encourage • providing road safety education professional drivers and passengers to look for bike riders development for 240 early childhood educators before opening car doors. The new sticker pack • delivering 35 child restraint education sessions for includes an information card holding a set of four culturally and linguistically diverse communities. transparent stickers and a bumper sticker. Drivers were encouraged to place the stickers Motorcycle and bicycle safety somewhere in their car to act as a reminder for themselves and passengers to look for bike riders Initiatives to improve motorcycle and bicycle safety before opening car doors. Safety advice for bike during 2011–12 included the following: riders and drivers about the dangers of car doors • VicRide: VicRide is a trial on-road coaching is printed on the information card. program aimed at improving the safety of inexperienced motorcyclists. The trial involves Older drivers taking a four hour on-road coached ride with two other recently licensed riders and an experienced In September 2011, new resources for older drivers motorcycling coach who will give riders feedback and for family and friends were launched by VicRoads on their riding style. Riders will be required to and Victoria Police. The older driver resource contains discuss their riding in three telephone interviews. information on driving skills, legal obligations and Around 2,400 riders will be involved in the trial licensing, medical conditions, medicines, health, and at 30 June 2012, 2,086 riders had been planning for change and staying mobile. recruited to participate. A resource for family and friends who are concerned • Research into emergency response to about an older or impaired driver addresses age, motorcyclists involved in crashes: VicRoads led medical conditions and medicines, warning signs for research into motorcycle crashes and medical deteriorating driving skills, assisting older drivers to treatments as well as factors that influence continue driving where appropriate and planning response times to these crashes. The research alternative transport. Also included are people’s legal found that half of the crashes leading to obligations and how to report drivers to VicRoads motorcyclist serious injury occur in regional areas Medical Review. and that these crashes were associated with longer response times and overall longer time to receive medical care. It was also found that there Legislation may be benefits in motorcyclists being Major legislative activities undertaken in 2011–12 are encouraged to undergo first aid training as well as listed below. improvements in communication technology systems, particularly in rural areas. • Accident Towing Services Act: The Accident • Evaluation of the Community Policing and Towing Services (Amendment) Act 2011 was Education Project: This was a joint initiative passed, implementing the recommendations of between VicRoads and Victoria Police with the the Essential Services Commission review of aim to reduce the likelihood of motorcycle accident towing services. crashes through a combination of enforcement • Australian Road Rules 9th Amendment Package: and education countermeasures. The evaluation The Australian Road Rules 9th Amendment found changes in motorcyclist and driver Package is nationally approved and commenced behaviour in relation to speed and use of hand in Victoria on 30 June 2012. Changes included a held devices and an increase in riders wearing full new offence for drivers blocking crossings, body protection over the term of the project. clarification of the rules for drivers at tram stops and heavy vehicle safety measures. • Drinking and driving: A law was introduced making it illegal to drink alcohol when driving.

VicRoads Annual Report 2011-2012 14

• Hoon laws: Hoon laws increased the impoundment period from two to 30 days and Key performance indicators new offences were added to the range of As shown in Figure 1, in 2011 Victoria recorded its offences which attract an impoundment penalty. lowest road toll since records began in 1952 with 287 • National heavy vehicle legislation: VicRoads has fatalities, one fewer than in 2010. Of the 287 fatalities, been managing and analysing the impact to 158 occurred in country Victoria, five fewer than in the Victoria of the future transition to the national previous year and 129 occurred in metropolitan heavy vehicle legislation. VicRoads will continue Melbourne, four more than the previous year. to work towards implementing these significant changes. Since 2008 when the current ten year Victorian road • Road Safety Act Review: The Road Safety Act safety strategy began, road deaths have fallen from Review project team completed a number of 332 to 287. This represents a six per cent reduction working party reports in consultation with key against the three year average from 2008–2010. stakeholders across government. Victoria recorded the lowest number of fatal crashes on record. In 2011, 259 fatal crashes occurred, one Compliance and enforcement activities fewer than in 2010. Victoria’s 5.10 deaths per 100,000 head of population was significantly lower than the for heavy vehicles average of 5.91 for the rest of Australia. Internationally, Compliance and enforcement activities are key to Victoria ranks in the top ten OECD countries. The ensuring the safety of all road users and the safe United Kingdom has the lowest fatality rate of 3.1 management of heavy vehicles on the road network. deaths per 100,000 head of population. VicRoads aims to improve heavy vehicle road safety As shown in Figure 2, the total number of serious and protect roads and bridges from damage by injuries for 2011 was 5,146, 44 more than 2010. Of ensuring that heavy vehicles comply with heavy these, 1,819 occurred in country Victoria (1,692 in vehicle regulations. This is done through a range of 2010) and 3,327 in the Melbourne metropolitan area activities including education sessions, industry liaison, (3,410 in 2010). The total number of serious injuries facilitating operator accreditation in mass represents an 18 per cent reduction against the three management and vehicle maintenance management, year average 2008–2010. and is complemented by enforcement.

Table 2 shows the number of prosecutions handled by VicRoads and the number of infringement notices issued to overweight and over dimensional vehicles over the past five financial years.

Table 2. VicRoads’ prosecutions and infringement notices

2007–08 2008–09 2009–10 2010–11 2011–12 Prosecutions Heard 449 709 367 806 216 Proven 448 708 363 494 214 Dismissed 1 1 4 312 1 2 Infringement Notices Overweight vehicle 947 726 1,155 901 687 Over-dimensional vehicle 1,478 822 1,669 886 763

1. 308 prosecutions relate to one business being prosecuted for numerous offences committed over a period of time.

VicRoads Annual Report 2011-2012 15

Figure 1. Victoria's annual fatalities

500 Total 444 450 Metropolitan 397 Regional 400 343 346 337 350 330 332 303 290 288 287 300

250

200

150

100

50

0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Figure 2. Victoria's serious injuries

9,000 Total 7,913 Metropolitan 8,000 7,341 Regional 7,000 6,274

6,000 5,102 5,146 5,000

4,000

3,000

2,000

1,000

0 2007 2008 2009 2010 2011

VicRoads Annual Report 2011-2012 16

Integration and sustainability

VicRoads works across government Regional growth plans to help deliver an integrated and sustainable transport system which VicRoads is working with the Department of Planning and Community Development, local government and is vital to the liveability and prosperity other agencies in the development of eight regional of Victoria. growth plans. Regional growth plans will provide broad direction for land use and development across This chapter focuses on initiatives that support the regional Victoria. The regional growth plans are VicRoads Sustainability and Climate Change Strategy expected to be completed mid 2013 and will: including: • identify important economic, environmental, • planning activities that contribute to an integrated social and cultural resources to be preserved, and sustainable transport system maintained or developed • • improving sustainable transport options such as provide direction for accommodating growth public transport, walking and cycling and change • • making decisions that take account of the consider the infrastructure needed to support transport system’s impact on greenhouse growth or change. emissions, noise, biodiversity, cultural heritage and water quality. Planning for Melbourne’s growth areas VicRoads is working on a range of planning projects Integrated transport planning that will contribute to a more sustainable and integrated approach to land use and the overall VicRoads delivered a range of projects and provided transport network. In 2011–12, VicRoads worked with input to planning by other agencies to contribute to government agencies and local government to plan an effective and sustainable transport system that for new communities in Melbourne's western, supports community and business needs. northern and south-eastern growth areas. This included the following projects: Metropolitan planning strategy • Growth Corridor Plans: Released in June 2012, these help guide the strategic management of The Department of Planning and Community Melbourne’s four metropolitan growth corridors. Development is leading the development of a The plans will provide for housing, jobs, transport, metropolitan planning strategy to manage town centres, open space and key infrastructure Melbourne’s growth and change, including links with across our city’s newest metropolitan suburbs. regional Victoria. • Precinct Structure Plans (PSPs): PSPs guide the The strategy will outline the Government’s priorities creation of new homes and employment for a based on ten principles including integration of land growing population. PSPs provide more detail use, optimising existing and future infrastructure and about the delivery of new roads, schools, sporting service provision. Along with other stakeholders, facilities, parks and health, education, leisure and VicRoads is assisting with the development of the community services. At June 2012, 32 PSPs had Strategy which will be launched in 2013. been completed, four are at Planning Scheme Amendment stage, seven are under preparation Victorian freight and logistics plan and six are at the pre-planning stage. VicRoads is working with the Department of Transport and other agencies to develop a Victorian freight and Sustainable transport options logistics plan which is expected to be completed in early 2013. The plan will focus on: VicRoads continued to deliver sustainable transport initiatives that meet the needs of Victoria’s growing • capacity assessment population and support long term planning of the • efficiency and productivity of freight movements transport system. These include walking, cycling, and • integrating land use and freight planning sustainable transport solutions that are • long term options for the decentralisation of environmentally responsible and help reduce freight movements to key outer industrial areas. greenhouse gas emissions.

VicRoads Annual Report 2011-2012 17

Think Tram • Heatherton Road off-road bicycle path, Power Road to Trail, Dandenong VicRoads’ Think Tram program includes a range of North operational, engineering and behavioural initiatives to • Swanston Street on-road bicycle lanes, Barwon improve tram travel times, reliability and safety along Terrace South Geelong to Eastern Beach Road the busiest parts of Melbourne's tram network. Geelong. In 2011–12, VicRoads developed and delivered a range of tram priority projects in partnership with Public Pedestrian program Transport Victoria, Yarra Trams and local councils. Some of the highlights include: VicRoads’ pedestrian crossing program focuses on providing safe facilities for pedestrians to cross busy • tram priority treatments and level access stops on roads to access shopping centres, activity centres, Swanston Street, between Franklin Street and schools and bus and tram stops. In 2011–12, VicRoads Grattan Street provided new pedestrian crossings at 19 locations in • development and implementation of easy access Melbourne and regional Victoria at a cost of $3.9 tram stops on Macarthur Street, East Melbourne million. The projects included: • full tram signal priority trial on the Nicholson • McIvor Highway pedestrian signals, Murphy Street section of route 96 Street, Bendigo • working with Public Transport Victoria and Yarra • Esplanade pedestrian signals, Mount Martha Trams to address accessibility issues on • Melbourne's tram network. Bailey Street pedestrian signals, Timboon. As part of VicRoads’ pedestrian access program, Bus priority approximately $1.1 million was invested to upgrade facilities to assist people with impaired mobility to VicRoads works with Public Transport Victoria to access the road system and public transport services. deliver the SmartBus program. This includes the The funding was used to upgrade 44 sites with audio- upgrade of bus stop facilities to allow easier access for tactile pedestrian push buttons and textured tiles to people with a disability and the construction of bus provide safer walking surfaces. priority treatments. In 2011–12, VicRoads delivered the following bus infrastructure activities: • priority treatments and bus stop upgrades on Sustainability and climate Route 901 and the Doncaster Area Rapid Transit change (DART) SmartBus services • priority treatments on Route 902 SmartBus The way we plan, manage and develop our road services network and its use has a significant impact on the • priority treatments on Cheltenham Road at environment. Greenhouse emissions, noise, Fiveways Boulevard and Perry Road, Keysborough biodiversity, cultural heritage and water quality are all • bus lane on Millers Road, Altona North. affected by decisions that are made about the transport system. Bicycle program Greenhouse gas emissions and In 2011–12, VicRoads completed 18 bicycle projects at sustainability a cost of $7.8 million. These were a mixture of new on-road and off-road bicycle lanes and paths, safety In 2011–12, VicRoads continued to implement new upgrades and new crossings to help cyclists cross tools and technology to establish benchmarks for busy roads. sustainability and encourage innovative practices in the design, construction and operation of the Projects were delivered in inner Melbourne, outer network. Some of these initiatives are outlined below. suburbs and in cities and towns in regional Victoria. Highlights of the bicycle program included: • INVEST: VicRoads implemented the INVEST sustainability rating tool, which is the first and • Pyrenees Highway on-road bicycle lanes, only tool available specifically for road projects in Castlemaine Australia. The Western Highway-Anthonys Cutting • The Esplanade off-road bicycle path, Grandview realignment was the first VicRoads’ project to be Grove to Cuttriss St, Inverloch awarded a sustainability rating using INVEST. • Balwyn Road on-road bicycle lanes, Canterbury

VicRoads Annual Report 2011-2012 18

Out of a possible five stars, the project received a • commencing a trial to determine the effect of two star rating for the use of recycled materials in adding sound absorbent tops to existing noise the road construction, improving road safety barriers in order to improve noise reduction through reducing steep grades and tight curves, • using video detection to identify exceptionally and the sensitive treatment of indigenous cultural noisy trucks, resulting in truck owners being heritage sites. The INVEST assessment was required to present their vehicles for checking endorsed by an international panel of transport at an Environment Protection Authority noise representatives. Going forward, all new VicRoads’ testing station. major road projects will implement INVEST from the planning phase to incorporate sustainability Biodiversity values initiatives throughout design and construction. • Carbon Gauge: A standard methodology for VicRoads manages around 80,000 hectares of land calculating the whole of life greenhouse gas within roadside reserves across Victoria which contain emissions of road projects was developed and important biodiversity, aesthetic, social and cultural included in a user friendly tool named Carbon heritage values. When undertaking road construction Gauge. It is now available across Australia and and maintenance activities, VicRoads follows a three New Zealand. With increasing use of this tool, it is step approach to avoid, minimise and offset the expected that greenhouse benchmarks will be impacts on biodiversity. Activities in 2011–12 included: established for all road projects. • • Sustainable Procurement Guidelines: These will developing a self paced e-learning module on assist staff to avoid unnecessary consumption biodiversity to enhance understanding of through managing demand and selecting threatened flora and fauna that are present in products and services which have lower our roadsides • environmental impacts across their lifecycle. In undertaking roadside fuel reduction and support of the guidelines, an industry forum was environmental burns along Ballan Road, held in May 2012 to outline proposed changes to Wyndham Vale which is expected to significantly design and construct contracts including the improve the health and regeneration of the Plains ability to value sustainable materials and Grasslands whilst helping to meet the Shire of technologies as part of tender award. Melton’s fire prevention targets • • LED retrofit program: A statewide LED (Light undertaking surveys of the protected Brush Tailed Emitting Diode) retrofit program has replaced 925 Phascogale in Eltham Yarra Glen Road, Watsons incandescent traffic signal installations with LED Creek to obtain a greater understanding of the lanterns and replaced 140 traffic signal controllers species, its home range and how habitat on arterial roads. The program also involves fragmentation via a road impacts on its VicRoads working with councils across Victoria to movement and breeding activities. jointly upgrade almost 100 traffic signal sites to LED on local roads. The program commenced in Cultural heritage 2010 and will be completed in August 2013. • Solar energy: A 90 megawatt capacity solar panel Cultural heritage sites are important reminders of our array was installed adjacent to the M80 Ring past. Protecting both Indigenous and non-Indigenous Road. Combined with the solar panel array on the cultural heritage sites is important to the community’s Tullamarine Calder Interchange and over five sense of identity, connection and historical hundred small scale solar installations, this has significance. VicRoads works with specialist increased the total renewable energy generation consultants, regulatory authorities and interest groups capacity to 150 megawatt hours of electricity per to manage and protect Victoria’s cultural heritage year. This is anticipated to save over 180 tonnes during road construction and maintenance. Key of greenhouse gas emissions per year. activities in 2011–12 included: • consulting with Registered Aboriginal Parties Traffic noise (RAPs) and Aboriginal Affairs Victoria (AAV) to develop and implement 20 cultural heritage In 2011–12, VicRoads continued to work toward management plans for VicRoads’ projects reducing the impact of road traffic noise on the including the Palmers Road extension at Williams community. Efforts to address traffic noise included: Landing, the Stud Road duplication and the • installing and upgrading of 8.5 kilometres of noise Foxhow Road realignment barriers along major freeways including the M80 Ring Road and Geelong Ring Road, at a cost of $22.8 million

VicRoads Annual Report 2011-2012 19

• signing area based agreements with Yorta Yorta The increase in air pollution incidents is related to Nation Aboriginal Corporation, Dja Dja Wurrung non-compliance with dust monitoring requirements Clans Aboriginal Corporation and Martang Pty Ltd and does not necessarily equate to adverse which provide frameworks for how VicRoads environmental impacts. proactively engages with our Indigenous Initiatives in 2011–12 to reduce the risk of incidents stakeholders across all aspects of VicRoads’ and promote environmental management best service delivery practice and compliance included: • developing internal Cultural Heritage Interpretation Guidelines to assist in the • continuing to undertake internal and independent consistent development and implementation of external environmental audits to assess interpretive projects on Victorian roadsides and compliance against legislation as well as rest areas that seek to interpret both Indigenous reviewing the adequacy and effectiveness of and non-Indigenous cultural heritage environmental control measures on site • installing VicRoads’ first ‘Welcome to Country’ • updating the VicRoads Environmental signs as part of the Western Highway - Anthonys Management Guidelines to provide more Cutting Realignment project near Bacchus Marsh. appropriate guidance to those working on site Undertaken in consultation with the Wurundjeri • amending our contract specifications to reflect Tribe Land Compensation and Cultural Heritage environmental management best practice and Council, these signs promote Victoria’s new legislative requirements. Indigenous heritage and feature Indigenous motifs and a welcome message from the local Office-based environmental indicators traditional owners. Victorian Government Departments, EPA Victoria and Key performance indicators Sustainability Victoria are required to report under the Financial Reporting Direction (FRD) 24C – Reporting Environmental sustainability indicators of Office-Based Environmental Impacts by Government Departments. VicRoads voluntarily The environmental sustainability performance reports on aspects of office-based environmental indicators outlined in Table 1 measure VicRoads’ performance defined in FRD 24C as shown in Table 3. progress against commitments under the In the past year, considerable effort has been Sustainability and Climate Change Strategy 2010– deployed to review VicRoads’ data collection and 2015. Overall, VicRoads’ performance has improved in calculation methodologies in order to report a more 2011–12. However, there was a reduction in non- accurate and complete set of data against the FRD potable water used for road construction projects 24C indicators. For example, in 2011–12 vehicle fleet which was due to a contractor using a higher amount data has been segregated into categories that more of potable water on the M80 Ring Road upgrade. accurately reflect the nature of VicRoads’ operations which is consistent with an organisational focus to Environmental incidents improve the energy efficiency of the vehicle fleet. Table 2 details environmental incidents by incident VicRoads’ performance has improved in 2011–12 level and type. Most of the incidents were associated across the majority of indicators particularly within the with the management of flora and fauna and erosion paper usage and transportation categories. Further and sediment control resulting in water pollution. improvements in paper usage are anticipated due to the following initiatives: Flora and fauna incidents were predominantly associated with regional maintenance and minor • limiting paper options purchased from our improvement activities impacting upon the root zone stationary provider to those that meet minimum of trees, slashing native grasses or working outside the environmental standards including a minimum of designated permitted area. 50 per cent recycled content, sustainable forestry certified and Australian made. This will be Water pollution incidents were either due to partially effective in 2012–13 and beyond effective sediment controls or inappropriate site • extending the rollout of secure print in a number dewatering activities. Approximately one third of the of business areas across the organisation aimed at incidents reported could not have been prevented as reducing printing, paper use and waste disposal. climatic conditions exceeded the expected capabilities of erosion and sediment controls.

VicRoads Annual Report 2011-2012 20

Despite similar levels of travel by operational • implementing a video conferencing system at 16 passenger and executive vehicles, there was a 24 per VicRoads’ sites which provides metropolitan and cent and 18 per cent reduction in energy regional staff alternative means to attending consumption from these vehicles respectively. meetings without having to travel long distances Initiatives in 2011–12 to improve the sustainability of • introducing a software program, Green Travel, VicRoads’ transportation included: which tracks sustainable travel across the Kew, Camberwell and Hawthorn offices and rewards • revising the vehicle fleet policy to require all new staff members who achieve a sustainable and replacement passenger fleet vehicles to be transport target based on 4 cylinder or hybrid vehicles with • purchasing carbon offsets for domestic and specific approval required for a 6 cylinder vehicle international air travel undertaken in 2011–12. • implementing internal charging of the passenger and executive vehicle fleet based on greenhouse gas ratings, to promote more efficient vehicles across the fleet Table 1. Sustainability performance indicators 1

Unit 2009–10 2010–11 2011–12 General Progress on Sustainability and Climate Change % actions Not applicable 4 30 Strategy implementation completed Noise 2 Noise barriers installed Kilometres Not available 2.4 8.5 Expenditure on noise wall installation $ million Not available 4.8 22.8 Biodiversity Habitat hectares (Hha) removed No. of Hha Not available Not available 2 Habitat hectares purchased No. of Hha Not available Not available 52 Large old trees (LOTs) removed No. of LOTs Not available Not available 171 Large old trees purchased No. of LOTs Not available Not available 1,021 Fauna sensitive road design installations 3 Total no. 34 34 36 Cultural heritage Area-based agreements with Indigenous Total no. 1 3 5 stakeholders Registered Aboriginal Parties under the Aboriginal Heritage Act 2006 covered by % 11 33 55 area-based agreements Cultural heritage management plans approved No. 22 12 20 Heritage recognition and interpretation 4 Total no. 4 4 4 installations Non-potable water use

Non-potable water used for road construction 7 % 87 5 94 6 76 projects

Non-potable water used for regional projects 7 % 14 5 31 6 67 and maintenance

1. ‘Not available’ means that data has not been collected in previous years. 2. Approximately 51 per cent of the 2011–12 noise barriers installed involved replacing old and existing noise barriers. 3. In the 2010–11 Annual Report, 30 installations were reported for 2009–10 and 2010–11. These numbers have been adjusted based on improved data collection. 4. In previous years, the figure included two Indigenous naming initiatives. Due to data collection difficulties, Indigenous naming initiatives have not been included in 2011–12. 5. Annual non-potable water use is based on 50 per cent of road projects reporting. 6. Annual non-potable water use is derived from consumption data from July 2010 to March 2011. 7. Annual non-potable water use is derived from consumption data from April 2011 to March 2012. VicRoads Annual Report 2011-2012 21

Table 2. Environmental incidents

1 2009–10 2010–11 2011–12 Incident level

Level 1 (least severe) Not applicable 34 36

Level 2 Not applicable 32 39 Level 3 Not applicable 20 29 Level 4 Not applicable 1 0 Level 5 Not applicable 0 0 TTotalotalTotal 882282 887787 110404104 Incident type Water pollution 35 39 46 Flora and fauna 14 15 20 Soil contamination 28 28 32 Cultural heritage 1 4 5 Air pollution 2 1 9 Noise 2 0 0 TTotalotalTotal 882282 887787 111212112

1. Prior to 2010–11, a different incident classification system was used.

Table 3. Office based environmental indicators

1 Energy Unit 2009–10 2010–11 2011–12

E1 Total energy usage (including GreenPower) gigajoules 40,166 38,771 37,872

Greenhouse gas emissions associated with E2 tonnes 14,678 14,404 13,651 energy use CO2-e Percentage of electricity purchased as E3 % of total 18 25 0 GreenPower 2 consumption

E4 Units of office energy used per FTE megajoules / 12,433 12,295 12,315 FTE Units of office energy used per unit office E5 megajoules / 790 776 755 space 3 m2 4 Waste Unit 2009–10 2010–11 2011–12 Total units of waste disposed of to: Landfill Not available Not available 99,682 Ws1 kilograms Recycling Not available Not available 61,223 Compost Not available Not available 15,181 Units of office waste disposed of per FTE by: Landfill Not available Not available 36.2 Ws2 kilograms Recycling Not available Not available 22.2 Compost Not available Not available 5.5 % of total Ws3 Recycling rate Not available Not available 43 waste Greenhouse gas emissions associated with tonnes Ws4 Not available Not available 110 waste disposal CO2-e

VicRoads Annual Report 2011-2012 22

Paper Unit 2009–10 2010–11 2011–12 P1 Total units of A4 equivalent copy paper used reams 37,336 37,971 36,086 P2 Units of A4 equivalent copy paper used per FTE reams/FTE 12 13 11 Percentage of recycled content copy paper

purchased P3 0-50% recycled content % recycled 8.4 25.2 43.5 content 50-75% recycled content 78.4 70.5 42.8 75-100% recycled content 13.2 4.3 13.7 5 Water Unit 2009–10 2010–11 2011–12 W1 Total units of metered water consumption kilolitres Not available Not available 22,626 Units of metered water consumed in offices W2 litres/FTE Not available Not available 8,259 per FTE Units of metered water consumed in offices W3 litres/m2 Not available Not available 579 per units of office space 6 Transportation Unit 2009–10 2010–11 2011–12 Total energy consumption by vehicle category Operational passenger Not available 56,076 42,610 Executive Not available 7,013 5,796 T1 Hired gigajoules Not available 884 945 Commercial (e.g. utes, panel vans) Not available 18,535 23,035 Commercial machinery Not available 50,890 54,822 TTotal otalTotal Not available 133,398 127,208 Total travel associated with vehicles 7 Operational passenger Not available 15,986,161 13,195,947 T2 Executive kilometres Not available 1,492,399 1,495,983 Commercial Not available 1,954,389 3,405,001 TTotal otalTotal Not available 19,432,949 18,096,831 Total greenhouse gas emissions by vehicle

type Operational passenger Not available 4,058 3,080 Executive Not available 512 419 T3 tonnes Hired CO2-e Not available 65 69 Commercial Not available 1,383 1,720 Commercial machinery Not available 3,802 4,099 TTotal otalTotal Not available 9,820 9,387 Greenhouse gas emissions from vehicle fleet

per 1,000km 8 Operational passenger tonnes Not available 0.24 0.23 T4 CO -e Executive 2 Not available 0.27 0.28 /1,000km Commercial Not available 0.35 0.33 TTotal otalTotal Not available 0.26 0.25 T5 Total distance by air travel kilometres 2,693,348 2,881,905 1,942,411 Employees regularly (>75% of work attendance days) using public transport, cycling, walking % of total T6 Not available Not available Not available or car pooling to and from work or working employees from home by locality type 9

VicRoads Annual Report 2011-2012 23

Greenhouse gas emissions Unit 2009–10 2010–11 2011–12 Total greenhouse gas emissions associated G1 tonnes 14,678 14,404 13,651 with office energy use CO2-e Total greenhouse gas emissions from vehicle tonnes G2 Not available 9,820 9,387 fleet CO2-e Total greenhouse gas emissions from air G3 tonnes 857 914 448 travel CO2-e Total greenhouse gas emissions with waste tonnes G4 Not available Not available 110 disposal CO2-e

G5 Greenhouse gas emissions offsets purchased tonnes 0 0 448 CO2-e

1. Data includes approximately 94 per cent of VicRoads’ sites. 2. In 2009–10, VicRoads purchased an average of 13 per cent GreenPower and the Department of Sustainability and Environment (DSE) purchased 5 per cent, on VicRoads behalf. In 2010–11, VicRoads purchased an average of 12 per cent GreenPower and DSE purchased 13 per cent on VicRoads behalf. In previous reports, the additional DSE GreenPower was excluded. In 2011–12, the default GreenPower purchases across VicRoads electricity contracts have decreased to 0 per cent. In 2012–13, VicRoads will be establishing a policy for the purchase of GreenPower for offices. 3. Data includes approximately 84 per cent of VicRoads’ sites. It excludes major project offices and depots. 4. Data includes approximately 84 per cent of VicRoads’ sites. It excludes major project offices and depots. Data for 2009–10 and 2010–11 has not been reported due to a different method of data collection with results not directly comparable. 5. Data includes approximately 84 per cent of VicRoads’ sites. It excludes major project offices and depots. Data for 2009–10 and 2010–11 has not been reported due to errors in water metering. 6. Data for 2009–10 has not been reported due to a lack of fuel reports from one fuel card supplier. 7. Hired vehicles and commercial machinery do not report on the kilometres travelled. The significant increase in kilometres travelled by commercial vehicles was due to an increase in reporting by business areas. In addition, some of VicRoads’ commercial activities during 2011–12 occurred further afield. 8. Due to a proportion of the vehicle fleet not reporting the kilometres travelled, this indicator is calculated by using the greenhouse gas emissions from vehicles that only report accurate kilometres travelled. 9. A Travel Smart Survey was not conducted in 2009–10, 2010–11 or 2011–12.

VicRoads Annual Report 2011-2012 24

Service

In managing Victoria’s arterial road Computerised Licence Test system to help keep people and The upgrade of the Computerised Licence Test businesses connected, VicRoads has a system was completed in May 2012 and the system is diverse range of functions and interacts now in place at all VicRoads’ customer service centres. The new system has increased reliability and with a wide range of customers and improved administration capabilities, making the stakeholders. One of VicRoads’ key system more efficient for customers and staff. priorities is to understand and meet the changing needs of our customers. Personal Property Security Register VicRoads participated in the successful VicRoads aims to deliver our customers excellent implementation of the national Personal Property service by: Securities Register (PPSR) in January 2012. This register enables customers to find out if a vehicle is • improving access to our services encumbered (monies owing), written-off, stolen or • improving our processes and systems to deliver registered in another Australian state or territory efficient and cost-effective services before purchasing the vehicle. PPSR replaced all state- • engaging with communities and stakeholders to based registers including Victoria’s Vehicle Securities understand their needs and involve them in the Register. VicRoads worked with the Australian decisions that affect them. Government and other State Governments to Services delivered as part of the implementation of coordinate the transition to the new national system. new road infrastructure are highlighted in previous In conjunction with these national changes, VicRoads chapters. This chapter will focus on achievements in has introduced the online Vehicle Registration Enquiry registration and licensing services, information Service. This is a real time online vehicle information provision and stakeholder and community system that enables customers to perform a vehicle engagement. registration enquiry including vehicle registration status and confirmation of the registered operator. Office and system Special work vehicles improvements VicRoads has introduced a new approach for the conditional registration of special work vehicles, also Ballarat Contact Centre known as quad bikes and off-road utility vehicles. The common set of operating conditions was developed The new state-of-the-art VicRoads contact centre in to enable on the spot processing of applications by Ballarat was opened in January 2012. This has rural machinery dealers, as well as customers who increased capacity from 60 seats to 100 seats, which attend VicRoads’ customer service centres. Referral to has helped VicRoads to improve its customer service a central specialist group is no longer required. This by significantly improving call answering times. benefits both the community and VicRoads by reducing administrative burden and financial costs and Registration and licensing system providing an improved risk management approach. Funding to complete the registration and licensing system redevelopment (RandL) was secured in Map-based web application December 2011. Following this announcement, the In December 2011, VicRoads launched a new map- RandL Program Office was remobilised and work re- based web application called Road Closures and commenced to design the RandL System. Once Traffic Alerts, to communicate all unplanned road completed it will be a single, integrated system for all closures and traffic alerts (including emergency road registration and licensing transactions for VicRoads closures) to the general public. Over its first six and Transport Safety Victoria. months, the application exceeded expectations with Building of the new system has now begun. Once this well over 600,000 visits. During major flood events in is completed, testing of the system will begin before it March and June 2012, usage of the application was is later deployed across the state. often more than ten-times the daily average. Feedback from the public and emergency service agencies has been very positive.

VicRoads Annual Report 2011-2012 25

• Department of Transport leadership group Improving processes meetings: VicRoads’ Chief Executive attends monthly Portfolio Leadership Team meetings to Driver licence tests help ensure an integrated approach to planning and delivering Victoria’s transport system. Customer wait times to book in for driver licence tests • Australian Department of Infrastructure and have reduced after improvements were made to the Transport: VicRoads works with the Australian testing and booking process to increase capacity. In Department of Infrastructure and Transport to April 2012, the average wait time for a drive test came coordinate delivery of the Nation Building in below the four-week target for the first time since Program. This program comprises projects being the new Graduated Licensing System test was delivered in Victoria with Australian Government introduced in July 2008. funding to support interstate movements and nationally significant economic flows. Hail damaged vehicles • Regional Management Forums: VicRoads’ seven regional directors participate in Victorian The severe hailstorm event on Christmas Day 2011 Government Regional Management Forums caused damage to thousands of vehicles, many of comprising senior state government staff in each which were assessed and recorded as repairable region and chief executive officers from local write-offs on the Written-Off Vehicle Register. To municipalities. support those affected, the Minister for Roads granted • Municipal cluster visits: VicRoads has an annual an exemption from the normal inspection and repair program of official visits to municipalities where requirements for vehicles that sustained only cosmetic VicRoads’ senior executives meet with regional damage which did not compromise the safety systems clusters of municipalities to discuss strategic and structural integrity. This removed much of the issues and council priorities. financial burden and hassle that the normal • requirements would have imposed on those whose Municipal Association of Victoria meetings: vehicles were only cosmetically damaged. VicRoads’ Chief Executive and other senior managers meet regularly with the Municipal Association of Victoria to identify and address Filming on Victoria’s roads issues of concern to local government. Changes to the way VicRoads manages the ever- increasing demand for filming on Victoria's roads has Advisory councils resulted in streamlined processes for the film industry, with VicRoads playing its part in bringing additional In 2011–12, VicRoads convened and provided filming projects to Victoria. The first six months of the administrative support to the following advisory year saw a marked increase in the production of councils which provided strategic policy and program television commercials within Victoria. Television advice to VicRoads. They comprise key stakeholders commercials alone can bring into the Victorian from government, industry and the community. economy up to $40 million per year. • Victorian Bicycle Advisory Council • Victorian Road-Based Public Transport Advisory Council Community and stakeholder • Victorian Road Freight Advisory Council engagement • Motorcycle Advisory Group. To ensure quality, well informed decisions in relation Community liaison to the road system, VicRoads engages with a diverse range of stakeholders. Some of the mechanisms that VicRoads’ community and stakeholder engagement are used are outlined below. framework outlines how we build, maintain and enhance the important relationship between the Working across government organisation and its community and stakeholders. The framework guides staff on how to plan and then VicRoads works across a wide variety of inter-agency implement their engagement activities to ensure the and inter-departmental forums to help deliver an best outcome for all and to ensure a coordinated, integrated and sustainable transport system for the consistent approach. community. These include:

VicRoads Annual Report 2011-2012 26

Some examples of engagement activities in • REAAA: The Road Engineering Association of 2011–12 are outlined below. Asia and Australasia promotes the science and practice of road engineering and related • Flood recovery: Victoria experienced several professions in the Asia Pacific region. Gary Liddle, flood events in 2011–12 affecting large parts of VicRoads’ Chief Executive, is the Chair of the regional Victoria and having a significant impact Australian Chapter of the REAAA and a member of on our road network. VicRoads’ staff worked the REAAA Governing Council. tirelessly to help the community and other • World Road Association: The World Road stakeholders, both whilst the flood events were Association (WRA) is the oldest international happening and after the rain subsided, to assess, association concerned with road network manage and repair the road network. The new engineering, policy and management. A number Road Closures and Traffic Alerts web application of VicRoads’ executives are members of PIARC helped the community to see what roads were technical committees including Performance of closed and find detour information. Transport Administrations, Improved Mobility in • Victorian Community Road Safety Partnership Urban Areas, Freight Transport and National Road Program: There were 48 registered local and Safety Policies and Programs. statewide community road safety groups in 2011–12 comprising local government, RoadSafe Community Road Safety Councils and community International projects not-for-profit organisations. Of the 48 registered VicRoads’ International program provides groups, 38 groups received funding to deliver 96 opportunities for the development of valuable road safety programs. government to government linkages, and for the • Indigenous stakeholders: During 2011–12, professional development of VicRoads' staff. The VicRoads integrated guidance on engagement program provides opportunities to work with local and with our Indigenous stakeholders into our international partners to promote VicRoads' expertise corporate Community and Stakeholder across a range of areas. Engagement Guidelines, and assisted the Department of Transport with the development of In 2011–12, VicRoads' staff have been engaged in an Engaging Aboriginal Communities Practice projects in Vietnam, Cambodia, Indonesia, India and Note for the Victorian Transport portfolio. Mongolia. VicRoads also hosted a number of fact • RACV Energy Breakthrough: VicRoads sponsored finding visits and professional placements for the RACV Energy Breakthrough, an annual, four- government representatives from Indonesia, day event that celebrates a year’s work by Bangladesh and Cambodia. students who build human and hybrid-powered vehicles, pushcarts and energy efficient vehicles. United Nations Decade of Action for Students come to demonstrate their accomplishments, talk about their experiences Road Safety and test their vehicles in rigorous trials, including VicRoads supports the 2011–2020 United Nations a 24-hour endurance challenge. On the first day, Decade of Action for Road Safety programs through VicRoads’ team saw more than 1,000 students. its participation in road safety projects in developing This event demonstrates VicRoads’ commitment countries including Vietnam, Indonesia and India. to engaging with students and the community, VicRoads also encourages international participants to promoting innovation and achievement. attend its Road Safety Engineering workshops and receives international delegations interested in better National and international partnerships understanding Victoria's approach to road safety. VicRoads has also assisted in filling an Australian Red VicRoads is an active participant in a number of Cross volunteer position providing road safety advice national and international organisations concerned to the Cambodian National Road Safety Committee. with all aspects of road transport including: • Austroads: Austroads is the association of all VicRoads’seminar series Australasian Road Authorities that aims to contribute to improved transport related VicRoads shares the findings of current research and outcomes in Australia and New Zealand. development initiatives with employees and VicRoads’ staff are represented on the various task exchanges information with, stakeholders and other forces and working groups. Gary Liddle, VicRoads’ interested groups or individuals. VicRoads has Chief Executive, is the Chair of Austroads. partnered with the Australian chapter of the REAAA and in 2012, Engineers Australia, to present the Technical Seminar Series.

VicRoads Annual Report 2011-2012 27

The seminars promote VicRoads’ expertise across a • temporary disruptions caused by opening the range of areas, in particular technical and engineering new contact centre in Ballarat including expertise. The seminars also provide opportunities for transitioning 50 roles from the Kew contact the professional and personal development of staff. centre and training new staff • training staff to improve the qualitative aspects of Topics presented in 2011–12 with REAAA included: call handling which has impacted on the length of • market segmentation of public transport users time it takes to answer phone calls. • evaluation of cycling infrastructure Initiatives in 2011–12 to improve performance • Victorian speed limit review included: • innovative intersection concepts and designs. • streamlining the customer service centre management structure to provide clear role Key performance indicators accountabilities and a focus on frontline staff capability VicRoads’ annual customer satisfaction survey found • increasing call handling capacity through the that 89 per cent of customers were satisfied with opening of the new contact centre in Ballarat registration and licensing services, four per cent above • improving the call routing system to get calls to the target. the right agent the first time Despite this high level of overall satisfaction, VicRoads • forming a specialist Customer Resolution Team in did not meet its performance targets in relation to first the VicRoads Contact Centre to focus on rapid contact resolution, professional approach or efficient responses to email enquiries and complaints services. A number of factors contributed to this, • redesigning the registration renewal form to including: encourage customers to use self service options such as those available on VicRoads’ website. • increasing transactions in customer service centres, VicRoads Contact Centre and by email It is expected that the above initiatives, as well as further initiatives in 2012–13, will help to improve performance over the coming year.

Table 1. Customer service indicators

Target 2009–10 2010–11 2011–12 85% of customers satisfied with 91% 90% 89% registration and licensing services Overall satisfaction 85% of customers satisfied with 79% 73% 72% operation of Victoria's road network First contact resolution A minimum of 85% of customer 86% 70% 1 67% interactions completed the first time Staff meet a minimum of 85% of the Professional approach 81% 76% 69% required customer service standards 80% of customers served within 10 68% 69% 71% minutes 80% of telephone calls answered Efficient services 65% 49% 36% within 30 seconds 80% of email inquiries from the 84% 84% 71% website responded to within 7 days

1. The survey methodology changed in 2010–11, therefore the result is not comparable to previous years.

VicRoads Annual Report 2011-2012 28

PART TWO :

Organisational capability and culture

VicRoads Annual Report 2011-2012 29

VicRoads recognises that attracting and • ‘GAP year’ program: This offers full time employment for 12 months to VCE students who retaining the right people with the right have been accepted into engineering at university skills is vital to delivering Victorians safe and have decided to defer study, enabling work and efficient transport connections. experience to be gained in their chosen field. One ‘Gap Year’ student placement is currently Developing our capabilities, employed in regional Victoria. strengthening our culture and providing • Vacation employment program: Undergraduate our people with safe and healthy students are provided with an opportunity to workplaces are also key aspects of the experience paid work with VicRoads during university semester breaks. In 2011–12, 41 way we do business at VicRoads. students were employed across 18 business areas, two of whom were offered a place on VicRoads’ 2013 Graduate Program. Workforce planning • Secondary school work experience program: In 2011–12, 19 secondary school students Recruitment and retention participated in work experience at different work locations across Victoria. Changing demographic trends and continued strong • Industry Based Learning (IBL): This provides demand for skilled employees continue to influence opportunities for tertiary students requiring work VicRoads’ recruitment and retention strategies. experience as part of their degree. In 2011–12, Integrated recruitment and workforce planning two IBL engineering placements were supported. initiatives ensure a long term fit with VicRoads’ strategic directions. Staff surveys During 2011–12, VicRoads managed its recruitment in VicRoads conducts a number of surveys to inform its accordance with the freeze on external recruitment efforts in attraction and retention including: announced by the Victorian Government in December 2011. There were 475 appointments comprising 372 • surveying employees within their first six months internal and 103 external candidates demonstrating to establish how closely their expectations of strong internal career growth. working at VicRoads match their actual experience and understand how the recruitment VicRoads’ overall retention rate in 2011–12 was 89 per and induction processes can be improved cent compared with 90 per cent in 2010–11. • surveying employees leaving VicRoads, by an external provider, to discover why they are Graduate program leaving. VicRoads uses the results to inform and VicRoads’ Graduate Program remains a key element of provide feedback to business areas. our recruitment and retention strategy. VicRoads has a strong presence at all Victorian university campus Community partnerships career fairs, on national and international university career websites and at employment expositions. In VicRoads contributes to the following programs that 2011–12, VicRoads recruited 25 engineering and two support young people in their studies: business graduates from more than 1,700 applicants. • Skyline Education Foundation: supports VicRoads maintains strong graduate retention rates disadvantaged but talented students to participate compared with national road agencies and the private in VCE studies. During 2011–12, VicRoads sector. We have retained 90 per cent of our graduates supported two VCE students. • over the past three years and 83 per cent over the past DOXA Youth Foundation: assists talented young five years. people from disadvantaged backgrounds to complete university education. In 2011–12, VicRoads supported four university students. Working with students • Youth Employment Scheme: VicRoads also VicRoads positions itself to attract future employees supports the Victorian Government’s Youth at key points in career planning through a variety of Employment Scheme by placing early school methods including: leavers in part-funded 12 month development roles. Thirty-three participated in traineeships in 2011–12.

VicRoads Annual Report 2011-2012 30

Transition to retirement • Senior Leadership Program: This is an invitation only program aimed at identifying and building VicRoads is committed to supporting employees who the skills of potential executive talent. There are are approaching retirement to do so in a graduated 43 active members of the program and 45 active way, progressively reducing the intensity of their work alumni members. During 2011–12, participants commitments as they transition to retirement through attended events such as master-classes, available flexible options. This also provides VicRoads workshops, speaker series and breakfast and with an opportunity to retain valued mature age lunch briefings. They can also access formal employees while ensuring transfer of technical and coaching and one-to-one development via 360 tacit knowledge. VicRoads has been identified degree feedback. nationally as a ‘Corporate Champion’ in this area and • Middle Managers Program: This program is was a finalist in the Australian Human Resource operated in partnership with Mt Eliza business Institute (AHRI) award for age diversity. school. It provides intensive and challenging development for senior managers who are Indigenous employment responsible for complex and critical functions and workgroups throughout the organisation. Fifty- Indigenous employment is a key element of VicRoads’ two leaders completed this program in 2011–12. workforce diversity and is underpinned by VicRoads’ • Team Leader Program: This program is for Indigenous Employment Strategy. VicRoads’ experienced leaders in operational roles, targeting Indigenous employment target of one per cent is their development in becoming more aligned to targets in Karreeta Yirramboi Victorian operationally effective and influential. Best Aboriginal Public Sector Employment and Career practice learning methodology ensures Development Action Plan 2010–2015. A Karreeta participants experience both structured learning Yirramboi employer toolkit was launched in May 2012 and group coaching programs over seven by the State Services Authority. It contains a best months. Each program has a maximum of 22 practice case study of VicRoads’ corporate Indigenous participants and 82 leaders completed the Cultural Awareness Training. program in 2011–12. Indigenous staff currently comprise 0.5 per cent of the • New Leaders Program: This program aims to total work force, and enjoy a high retention rate. support new leaders in their first six months of Under the Victorian Government’s Youth Employment leadership. The program introduces participants Scheme, five Indigenous trainees started working with to the challenges and opportunities of leadership VicRoads during 2011–12. They are undertaking and provides them with coaching and self certificates in Business or Conservation and Land awareness exercises to enhance their ability to Management and are working in Geelong, Traralgon succeed. A total of 58 leaders participated in this and Benalla. program in 2011–12. • Foundational Leadership: There were 17 staff VicRoads helps improve the Year 12 completion rate interested in developing their understanding of for Indigenous students in Victoria through the leadership who completed a one-day program to VicRoads Indigenous Secondary School Scholarship learn about leadership concepts as part of their Program. Twenty-two new secondary school career development. scholarships were awarded at the start of 2012. Year 12 completions for former recipients now total 25. Technical capability One Indigenous Tertiary Scholarship was awarded for 2011–12 to a 2nd year engineering student at the VicRoads has a range of initiatives to support and University of Ballarat. Vacation employment at improve technical capability including the following: VicRoads is one of the eligibility criteria for this • Technical Capability Assessment Program: scholarship. provides VicRoads with vital information on the technical capability profile of over 2,500 employees. This information allows managers and Building capability employees to ensure that their technical development is targeting the current and future Leadership and management capability needs of the organisation. • Chartered Engineers Program: enables recently VicRoads aims to develop effective leaders and the graduated engineers or those with only a few following five programs offer a range of pathways: years of work experience to be awarded chartered status.

VicRoads Annual Report 2011-2012 31

• Technical Training Program: addresses capability Women Leading Transport gaps within VicRoads, local government and consultants by providing technical knowledge In order to raise awareness of the challenges that and awareness of VicRoads’ latest standards, women face across the transport portfolio, a Women policies and technical information. Due to its Leading Transport Strategy has been co-developed by popularity, VicRoads’ Technical Consulting area a number of key industry-based organisations for the increased its course delivery from 46 courses in attraction, retention and advancement of women in 2010–11 to 67 courses in 2011–12. transport. • Centre of Excellence for Environmental Drawing from this strategy, VicRoads has developed Sustainability: addresses the development of an action plan which helps to optimise female talent skills and understanding of environmental and educate staff and managers about the importance sustainability within VicRoads. The Centre of of flexibility in the workforce. Excellence currently comprises 11 modules spanning eight aspects of environmental management. The modules are tailored to Diversity address specific environmental obligations and VicRoads has a culturally diverse workforce which responsibilities associated with the planning, continues to reflect the cultural diversity within the construction, operation and maintenance of our broader Victorian community. VicRoads is committed road network. The Centre of Excellence was to maintaining a supportive work environment free launched in May 2012 and the modules are from discrimination and harassment in all areas of delivered through a variety of means, from employment and the provision of services. classroom based attendance, to online training and self-paced learning. As well as training in relation to general diversity • Kerry Burke Scholarship: provides up to $25,000 issues, VicRoads also provides Indigenous Cultural to a VicRoads’ employee to undertake training or Awareness Training as a foundation of the successful conduct research into a technical field that will implementation of a broad range of Indigenous directly benefit VicRoads. Julie van Dort received initiatives across VicRoads. the 2012 scholarship. She will research, identify Nine training courses were held in 2011–12, in both and measure the total impacts (particularly the metropolitan and regional locations. The course seeks benefits) of the Road Safety Act 1986 to Victorian to increase employee understanding of and businesses and the community. engagement with activities within the VicRoads Indigenous Action Plan, and 2,900 staff have attended Strengthening our culture this training since 2006. The outcomes we achieve and how our customers Corporate Responsibility experience us depends on a high-performing culture. A number of cultural development projects have VicRoads produced its first Corporate Responsibility commenced to promote behaviours that are aligned report focusing on achievements in 2011. It is divided with key elements of VicRoads’ culture - innovation, into five sections relating to our community, customer service, accountability and teamwork. economy, customers, environment and workplace. The full report is available on VicRoads’ website www..vic.gov.au. Reward and recognition program Employee reward and recognition continues to be an CMG Listens essential component of VicRoads’ corporate culture. In 2011, revisions to the Extended Service Recognition In 2011, the program of Corporate Management Policy introduced a new element of recognition for Group (CMG) office visits was revised and employees reaching five years of service. reintroduced in 2012 as CMG Listens. In 2012, the Outstanding Performer Awards This annual program involves members of CMG commenced its second year. With two ceremonies visiting staff in business areas throughout the state, held to date, these awards recognise individuals and providing staff with a chance to engage with CMG teams that have gone above and beyond the regular members and discuss corporate issues, initiatives, and requirements of their role and demonstrated concerns. outstanding performance in an aspect of VicRoads’ culture. In 2011–12, 24 individuals and 13 teams were recognised for their outstanding efforts.

VicRoads Annual Report 2011-2012 32

Continuous training is also important to maintaining a Internal Communication Strategy strong safety culture for all employees. In 2011–12, the following OH&S training programs were delivered: In 2011–12, VicRoads developed its latest Internal Communication Strategy which focuses on building • employee safety awareness online training employee engagement and collaboration at VicRoads. • OH&S for managers and supervisors online It was developed by internal communication training practitioners across VicRoads and informed by staff • procurement management and contract research identifying four priority areas for management courses improvement in leadership, strategy, knowledge • worksite OH&S performance training sharing and change. The focus for action is with • drug and alcohol impairment training. leaders at all levels in partnership with communications staff and the internal communication The number of standard WorkCover claims reduced team. by 17 per cent in 2011–12 compared with 2010–11. VicRoads remains committed to achieving further reductions particularly through investigating the Safe and healthy workplaces OH&S practices of organisations with excellent records to see what we can learn from them. Providing safe workplaces

VicRoads’ OH&S policies and practices aim to ensure

that all staff remain safe and healthy at work. To build on this commitment, the OH&S Team provides training and expert advice to managers, team leaders and employees on all aspects of health and safety, well-being and injury management, both work and non-work related.

Table 1. VicRoads’ standard WorkCover performance

Source: CGU Workers Compensation (Vic) Ltd. Data as at 13 June 2012.

2007–08 2008–09 2009–10 2010–11 2011–12 No. of standard claims 29 38 34 52 43 No. of lost time claims 23 29 26 45 35 Average days lost 47 47 30 29 38 Average premium rate (%) 1 1.21 1.26 1.2 0.57 0.72 Fatality claims 1 0 0 0 0

1. The average premium rate is the premium amount paid as a percentage of remuneration.

VicRoads Annual Report 2011-2012 33

Annual workplace safety award Supporting health and wellbeing The VicRoads’ annual workplace safety award The key focus of VicRoads’ health and wellbeing recognises initiatives that improve or contribute to program is to encourage employees to adopt a workplace health and safety. The award is open to all healthier lifestyle to prevent illness and injury and non-executive employees and groups in VicRoads maximise their energy levels for work and personal life who have made a significant contribution to In 2011–12, health and wellbeing programs offered to improving health and safety within the workplace. employees included:

• WorkSafe Work Health checks: around 66 per Individual award winner cent of staff have completed a Work Health Zoltan Szasz Check • influenza vaccinations: around 435 vaccinations Metro North West Region were delivered across VicRoads’ offices Zoltan’s initiative to install a hinge system on joint use • men's health sessions: around 570 staff attended mast arms has led to improved safety in the across VicRoads’ offices maintenance of traffic signal lanterns. • pedometer challenge: around 800 staff participated His design allows the pole to be swung around in the • optimal direction so maintenance works can be mental health awareness sessions for managers • carried out more safely and efficiently. Sun Smart sessions • dedicated health and wellbeing intranet pages providing a variety of resources. Team award winners Staff and their family members are also supported Alan Beavis, Bob Dowd, Brett Gillespie with the following programs: Northern Region - Preconstruction Team • school holiday program providing subsidised child During the major floods in January 2011, major care for two weeks during each school holiday logistical issues were encountered when travelling in period in the Kew and Sunshine offices • flood affected areas, especially for VicRoads and employee and family member access to an emergency services staff. Employee Assistance program that provides free, confidential counselling to help address work and With a large number of roads closed causing major family related issues. safety issues for those needing to travel in those areas, the Preconstruction Team came up with an innovative solution by developing a mapping system to record closed roads, emergency access roads and open roads. The maps gave a clear indication of affected roads and provided for safe movement during the floods and for a number of months thereafter. They were provided to all key stakeholders including incident control centres, Victoria Police, Ambulance Victoria and other emergency services personnel.

VicRoads Annual Report 2011-2012 34

PART THREE :

Corporate governance and structure

VicRoads Annual Report 2011-2012 35

It assists the Chief Executive to fulfill his Statutory framework responsibilities for financial reporting, internal VicRoads is the registered business name of the Roads control, risk management and compliance with Corporation which was established in the Transport laws, regulations and ethics. Act 1983 and continued in the Transport Integration • Auditing: VicRoads outsources its internal audit Act 2010. The Governor in Council appoints the Chief function to PricewaterhouseCoopers. Internal Executive who is responsible for managing the audit assists management to control risks, functions of the Roads Corporation consistent with its monitor compliance with policies and procedures object in the Transport Integration Act. and improve the efficiency and effectiveness of internal control systems. The results of audits are reported to the Audit Committee and VicRoads’ Governance structure senior management. The Victorian Auditor- General’s Office inspects and audits the financial VicRoads’ Chief Executive is accountable to the position of VicRoads and reports annually on the Minister for Roads, reporting through the Secretary of outcome of the audit. the Department of Transport. VicRoads works closely • Risk management: VicRoads maintains a risk with the Department of Transport to ensure that its management system to systematically identify, policy development and planning activities reflect a manage and minimise risks that are inherent in its collaborative, portfolio-wide approach. VicRoads day-to-day business operations, the delivery of its provides regular reports to the Department of programs and projects and its management of the Transport on its finances, capital expenditure and road network. outputs and the Chief Executive attends monthly • Staff integrity: VicRoads complies with the Code Portfolio Leadership Team meetings. of Conduct for Victorian Public Sector Some of the key structures and processes that Employees. The code is explained to new staff in contribute to the effective governance of VicRoads the induction process and all new staff must are outlined below. complete an e-learning module on the code. All staff must also complete e-learning modules on • Corporate Management Group: It comprises the the Victorian Charter of Human Rights, equal Chief Executive, Chief Operating Officer, opportunity and information privacy. VicRoads Executive Director of each division and Directors has policies and procedures on its intranet which of Corporate Policy and Planning and Corporate address employment and conduct principles. Communications. It assists the Chief Executive to Topics include equal opportunity and anti- develop and monitor strategic directions and discrimination; merit based recruitment and business plans, provide effective leadership and selection; maintaining a harassment free work ensure sound management. environment; managing poor behaviour; gifts, • Project Review Committee: It comprises the benefits and hospitality; and responsible use of Chief Executive, Chief Operating Officer and the registration and licensing system. Executive Directors of Network and Asset Planning, Road Safety and Network Access, Major Projects, Regional Services, Technical and Corporate structure Information Services, Commercial and Legal and Corporate Services. It oversees the assessment of VicRoads’ divisions are shown on the organisation options in the planning and development of road chart on page 39. The functions of each division are projects and road improvement programs with an summarised below. estimated cost greater than $10 million; planning Gary Liddle, Chief Executive of VicRoads, was studies with an estimated cost greater than $3 appointed in March 2007 and oversees all functions million; and projects considered to involve and operations for VicRoads. His role also entails contentious matters. national representation in his participation as board • Information Management and Technology member and Chairman of Austroads and Chairman of (IM&T) Board: It comprises most Executive the Australian Chapter of the Road Engineering Directors and ensures the governance and Association of Asia and Australasia (REAAA). strategic alignment of investment decisions regarding VicRoads’ IM&T environment. Bruce Gidley, Chief Operating Officer, was appointed • Audit Committee: It comprises five independent to the role in February 2010. He leads VicRoads’ key members (Tony Darvall – Chair, Dennis Cavagna, operational areas of Major Projects, Regional Services Gregory Larsen, Carol Pagnon and Bob and Registration and Licensing Services, with a core McDonald) and one member from focus on customer service delivery and project VicRoads (Peter Mitchem). management.

VicRoads Annual Report 2011-2012 36

VicRoads’ divisions Registration and Licensing is responsible for: • delivering and managing registration and Network and Asset Planning develops policy licensing customer services recommendations, program strategies and an annual • administering the demerit points scheme and program of works to: medical review process • improve Victoria’s arterial road network to • managing major service contracts, agency manage congestion, promote sustainable services, confidentiality agreements and business transport modes and maintain accessibility for all client relationships Victorians • developing and managing registration and • maintain an expanding and diverse range of road licensing operational policies related assets • developing and delivering the VicRoads Customer Service and Channel Management Strategy. Robert Freemantle, Executive Director Network and Asset Planning, was appointed to the role in 2007. Jaida Nicholson, Executive Director Registration and Licensing, was appointed to the role in 2010.

Road Safety and Network Access develops policy recommendations, program strategies and an annual Technical and Information Services provides a range program of works to: of specialist technical, information and engineering services to VicRoads. Other client services include: • reduce road trauma • provide registration and licensing services to the • information system management and service Victorian community in an effective, efficient and delivery secure manner • management of IT-related change projects • manage regulatory reforms which facilitate on- • property and land acquisition management road freight productivity. • bitumen sealing, road maintenance and minor construction works David Shelton, Executive Director Road Safety and • technical consulting advice including road, Network Access, was appointed to the role in 2010. bridge, landscape and urban design, and geotechnical and pavement services Major Projects is responsible for: • undertaking overseas consulting work in the road transport sector • delivering major road projects • developing and managing VicRoads’ Custom • securing planning approvals for current and Plates business. future major projects • developing effective environmental policies and Peter Mitchem, Executive Director, Technical and strategies, and providing specialist advice on Information Services, was appointed to the role in environmental issues and associated 2007. management systems.

George Mavroyeni, Executive Director Major Projects, Corporate Services provides a range of services to was appointed to the role in 2010. support VicRoads’ business including: • developing and managing financial plans, Regional Services is responsible for: strategies, policies and systems • • delivering VicRoads’ annual program of work managing financial, budgeting, forecasting, through seven regional offices (with the treasury, reporting and payroll activities • exception of major projects and registration and coordinating VicRoads’ annual business planning licensing customer services) and corporate quality management • • delivering VicRoads’ tram and bus priority developing and maintaining VicRoads’ records programs management policies and procedures • • managing the real-time operation of the road managing authorisations and delegations • network including incident management, traffic coordinating risk management and business management centre and implementing network continuity planning activities operating plans. • auditing external providers of registration and licensing services. Steve Brown, Executive Director Regional Services, was appointed to the role in 2009. Mark Dale, Executive Director Corporate Services, was appointed to the role in 2007.

VicRoads Annual Report 2011-2012 37

Commercial and Legal is responsible for: • coordinating timely, accurate and objective correspondence and briefs • managing the commercial arrangements for the • identifying emerging trends and developments CityLink and EastLink toll roads that affect VicRoads’ capacity to serve Victorians • providing advice on various contractual and • coordinating the development of VicRoads’ procurement issues organisational strategies • developing and maintaining contract • ensuring that VicRoads continues to comply with management policies and procedures and Government frameworks relating to governance awarding of contracts • providing secretariat support for the Corporate • managing contract disputes and the Contractor Management Group, Project Review Committee Pre-qualification Scheme and Audit Committee. • providing legal services, including advisory, legislative and regulatory work, and responding to Aidan McGann, Director Corporate Policy and Freedom of Information requests and privacy Planning, was appointed to the role in 2008. issues.

John Rogan, Executive Director Commercial and Legal, was appointed to manage the commercial function in 2008 and assumed responsibility for the legal function in 2010. VicRoads’ Risk Management Attestation 2011 −12 People Services and Internal Communications is VicRoads has established risk management processes responsible for: that are consistent with the Risk Management • workforce planning Standard AS/NZ ISO 31000:2009. The organisation • training and organisation development engages its management and staff in the development and implementation of risk management controls and • managing employee relations strategies which are reflected in the risk management • coordinating effective internal corporate plans and treatment actions that are in place. communication, including managing VicRoads’ intranet The organisation’s strategic, program delivery and • managing occupational health and safety operational risk profile has been critically reviewed • undertaking investigations into allegations of within the last 12 months. Combined with its internal improper conduct. management control system, this enables management to reasonably understand and Judith Pettitt, Executive Director People Services and satisfactorily manage risk exposures and provides Internal Communications, was appointed to the role assurance that organisational goals and objectives are in 2007. being effectively and efficiently achieved within an appropriate framework of control and risk Corporate Communications is responsible for: management. • leading strategic communication and marketing VicRoads will continue to review and maintain its risk • media management management outcomes. Where risks are identified which may have an unacceptable impact on VicRoads, • driving innovative, consumer-focussed digital treatment actions will be developed for communications implementation within an appropriate timeframe. • managing VicRoads’ reputation, brand and sponsorships VicRoads’ Audit Committee’s role includes reviewing • web and online engagement. the operation of VicRoads’ risk management processes. The Committee has endorsed the Dionne Lew, Director Corporate Communications, statements made above. was appointed to the role in 2006.

Corporate Policy and Planning isisis responsible for: • assisting the Chief Executive to shape national Gary Liddle and local transport reforms that benefit Victorians Chief Executive • supporting effective liaison with the Minister’s Office and Department of Transport

VicRoads Annual Report 2011-2012 38

Organisation chart 30 June 2012

VicRoads Annual Report 2011-2012 39

PART FOUR :

Mandatory disclosures

VicRoads Annual Report 2011-2012 40

Responsiveness to community areas • worked with other Australian jurisdictions to develop the Australian Disability Parking Scheme VicRoads contributes to the promotion of improved and, with key stakeholders, including the outcomes for cultural diversity, women, young people Municipal Association of Victoria, and the and Indigenous affairs. Further information regarding departments of Transport and Human Services, VicRoads’ involvement for the following groups is identify options to improve Victoria’s disability outlined in the Annual Report as follows: parking arrangements in line with the new scheme. • Women (page 32) • Young children (page 14) • Indigenous affairs (pages 19-20, 27, 31). Freedom of information (FOI) In 2011–12, initiatives to support customers from FOI decisions culturally and linguistically diverse communities In 2011–12, VicRoads received 476 FOI requests. included: Decisions were made as follows: • providing five informational videos in five languages on VicRoads’ YouTube site to assist customers to understand how to complete Access granted in full 139 common registration and licensing transactions Access granted in part 210 • providing fact sheets on the new road rules in Access denied 25 eight languages and making them available on the road rules website In process 61 • providing the learner permit knowledge test in 13 Transferred to another agency 0 languages other than English and the marine Request withdrawn by applicant 10 licence knowledge test in four languages other than English No document exists/No document located 26 • providing learner permit and licence applicants Dealt with outside FOI 3 with interpreters upon request with more than Other/No response from applicant 2 16,000 interpreter assisted tests undertaken in 2011–12 TTotalotalTotal 447676476 • recognising 26 countries that have similar licence testing requirements for the purposes of gaining a VicRoads Officers Victorian driver licence • offering telephone services through VicRoads Principal Officer: Gary Liddle, Chief Executive Contact Centre in excess of 50 languages other How to access documents than English through the Translating and Interpreting Service National A request for access to documents under the Freedom of Information Act must: • delivering 35 child restraint education sessions to culturally and linguistically diverse communities. • be in writing • be accompanied by a $24.40 application fee (as Disability services at 1 July 2012 the application fee increased to $25.10) or evidence of hardship (for example, In 2011–12, VicRoads undertook the following copy of a social security card, evidence of activities that supported people with a disability: unemployment, or evidence of receipt of social security payments) • upgraded 44 sites with audio-tactile pedestrian • push buttons and textured tiles to provide safer provide such information as is reasonably walking surfaces, assisting people with impaired necessary to enable the documents to be mobility to access the road system and public identified. transport services Freedom of Information requests should be sent to: • ensured that new works undertaken by VicRoads affecting tram and bus stops and pedestrian Ms Franca Chick crossings result in Disability Discrimination Act Manager Freedom of Information and Information compliant facilities Privacy VicRoads Level 5, 60 Denmark Street KEW VIC AUSTRALIA 3101

VicRoads Annual Report 2011-2012 41

Published information 3. A statement of the material that has been prepared by the agency under this Part for Section 7 1(a) of the Freedom of Information Act publication or for inspection by members of the requires certain information to be published: public, and the places at which a person may inspect or obtain that material. 1. A statement setting out particulars of the organisation and functions of the agency, VicRoads publishes a range of information on its indicating, as far as practicable, the decision- website. For advice and access to the information making powers and other powers affecting contact Victoria Government Bookshop, members of the public that are involved in those telephone 1300 366 356 or email functions and particulars of any arrangement that bookshop.vic.gov.au. exists for consultation with, or representation by, bodies and persons outside the government 4. A statement listing the literature available by way administration in relation to the formulation of of subscription services or free mailing lists. policy in, or the administration of, the agency. This information is provided on VicRoads’ This information is located throughout this website. For advice on subscription services and document and in particular in the ‘About free mailing lists, contact the Victoria VicRoads’ section on pages 3 to 4 and ‘Corporate Government Bookshop, telephone 1300 366 356 Governance’ section on pages 35 to 39. or email bookshop.vic.gov.au.

2. A statement of the categories of documents that 5. A statement of the procedure to be followed by a are maintained in the possession of the agency. person when a request for access to a document is made to the agency. VicRoads maintains an extensive filing system based on the following categories: This information is provided on page 41. • commercial operations 6. A statement designating by name the officer or officers responsible within each agency for the • committees initial receipt of, and action upon, requests for • community and stakeholder relationships access to a document. • contract management • corporate governance This information is provided on page 41. • emergency management 7. A statement listing all boards, councils, • environmental management committees and other bodies constituted by two • equipment and plant or more persons, that are a part of, or that have • financial management been established for the purpose of advising the • government relations agency, and whose meetings are open to the • human resource management public, or the minutes of whose meetings are • information management and systems available for public inspection. • legal There are a number of councils, committees and • occupational health and safety groups that provide advice and stakeholder and • property and land management community input to VicRoads and/or the Minister • registration and licensing • for Roads. In 2011–12, these included the road asset maintenance Motorcycle Advisory Group, Victorian Road • road network improvement Freight Advisory Council, Victorian Bicycle • road safety management Advisory Council and the Victorian Road Based • statutory planning Public Transport Advisory Council. • strategic planning • technical information and services 8. If the agency maintains a library or reading room • traffic management. that is available for public use, a statement of that fact including details of the address and hours of opening of the library or reading room. VicRoads maintains a library that is available for public use by appointment. To make an appointment, contact Manager Library Services, telephone (03) 9854 2231 or email [email protected].

VicRoads Annual Report 2011-2012 42

The commitments by contractors under VIPP included Compliance with the Building Act 1993 an overall level of local content of 97 per cent of the total value of the contracts. Approximately 820 full VicRoads complies with the Minister for Finance time equivalent jobs were involved in these works. Of Guidelines on the Standards for Publicly Owned these jobs, over 200 were newly created. Buildings and the building and maintenance provisions of the Building Act 1993. The works also involved approximately 80 apprentices/traineeships of which over 30 were All new work and redevelopment of existing created as a direct result of the award of these properties is carried out in accordance with the contracts. Building Act 1993, relevant building regulations and other statutory requirements either under the Benefits to the Victorian economy in terms of direction of VicRoads or the management of the increases in skills and technology transfer include: Department of Treasury and Finance, Shared Service • Provider. training in specialist areas such as environmental management including emissions monitoring, VicRoads engages the Department of Treasury and traffic control, road and bridge construction and Finance, Shared Service Provider to ensure that the 48 the operation of major items of plant buildings under its management are compliant with • developing new systems and processes to ensure legislation and policy and are maintained in a safe and more efficient and safer work practices. serviceable condition. For all other buildings, VicRoads has internal mechanisms and programs in place which Contracts completed include routine and adhoc building inspections and During 2011–12, VicRoads completed 33 contracts annual maintenance programs based on various with a total value of $370.2 million to which the VIPP audits of: applied. There were eight metropolitan contracts valued at $109.8 million and 25 regional contracts • building standard and condition valued at $260.4 million. • hazardous materials, including asbestos • essential services The outcomes reported by contractors under VIPP • storm water and trade waste systems. included an overall level of local content of 95 per cent of the total value of the contracts and the Compliance with competitive creation of more than 200 full time equivalent jobs and 25 apprenticeships/traineeships. neutrality Benefits to the Victorian economy in terms of VicRoads’ commercial business activities comply with increases in skills and technology transfer included: the requirements of the policy statements Competitive Neutrality: A Statement of Victorian • training and skill enhancements, including in Government Policy, Victorian Government Timetable specialist areas such as road maintenance for the Review of Legislative Restrictions on management systems, slurry surfacing, dangerous Competition and any subsequent reforms. goods handling, and minimising the construction related carbon footprint • Implementation of the Victorian improved and safer construction techniques. Industry Participation Policy (VIPP) Disclosure of major contracts Contracts commenced Details of all VicRoads’ contracts are provided at During 2011–12, VicRoads commenced 53 contracts www.vicroads.vic.gov.au. These details include with a total value of $547.4 million to which the VIPP full disclosure of contracts valued at more than applied. There were 16 metropolitan contracts valued $10 million. at $285.1 million and 37 regional contracts valued at $262.3 million.

VicRoads Annual Report 2011-2012 43

Whistleblowers Protection Act 2001 Compliance with s22 of Road VicRoads’ report pursuant to section 104 of the Management Act 2004 Whistleblowers Protection Act is outlined in Table 1 VicRoads must publish in its annual report a summary below. VicRoads’ procedures for making disclosures of Ministerial Directions given under section 22 of the pursuant to the Whistleblowers Protection Act are Road Management Act 2004. available on VicRoads’ website. Table 3 shows Ministerial Directions that were in effect Consultancies during 2011–12. VicRoads was directed to perform the functions and exercise the powers of the coordinating There were three consultancies valued in excess of road authority and the responsible road authority for $10,000 as shown in Table 2 below. There was one specified sections of roads and periods of time. For consultancy with a value of less than $10,000. This further information about these Ministerial Directions, consultancy had a value of $2,500. refer to the VicRoads’ Register of Public Roads which is available on VicRoads’ website www.vicroads.vic.gov.au. Table 1. Disclosures under the Whistleblowers Protection Act 2001 2010–11 2011–12 Disclosures made to VicRoads during the year 0 0 Disclosures referred during the year by VicRoads to the Ombudsman for determinations as to 0 0 whether they are public interest disclosures Disclosed matters referred to VicRoads during the year by the Ombudsman 1 6 Disclosed matters referred during the year by VicRoads to the Ombudsman to investigate 0 0 Investigations of disclosed matters taken over by the Ombudsman from VicRoads during the 0 0 year Requests made under section 74 during the year to the Ombudsman to investigate disclosed 0 0 matters Matters that VicRoads has declined to investigate during the year 0 0 Disclosed matters referred to VicRoads by the Ombudsman currently under investigation 1 0 Disclosed matters that were substantiated on investigation 0 0 Recommendations of the Ombudsman under this Act that relate to VicRoads 0 2

Table 2. Consultancies

Total Expenditure Expenditure Consultant Project project fees 2010–11 2011–12 approved The Lonsdale Group Planning support for stage two of $923,000 $0 $738,360 VicRoads Transformation Deloitte Touche Tohmatsu Corporate system replacement $301,084 $0 $301,084 project Cap Gemini Information Management & $235,000 $0 $235,000 Technology Functional Review 2011–12 Deloitte Touche Tohmatsu VicRoads Kew site feasibility study $206,962 $66,264 $0

Table 3. Compliance with s22 of the Road Management Act 2004

Designated road project Minister Start date End date (location) Dingley Arterial (Springvale 17/09/2010 1/02/2013 Minister for Roads and Ports Road to Perry Road) Project

VicRoads Annual Report 2011-2012 44

Workforce data Employee numbers by year (headcount)

2011–12 2010–11 2009–10 2008–09 2007–08 2006–07 2,994 3,184 3,212 3,171 2,831 2,737

Employee numbers June 2011–June 2012

All employees Full time Part time Ongoing Fixed term Headcount Headcount Headcount FTE FTE 30 June 2012 2,994 2,666 328 2,852.2 19.8 30 June 2011 3,184 2,877 307 2,965.8 41.6

Employee numbers by gender, age and classification (class.)

June 2012 June 2011 All employees Ongoing Fixed term All employees Ongoing Fixed term Headcount FTE FTE Headcount FTE FTE Gender Female 1,077 967.2 8.8 1,179 1,015.5 25.2 Male 1,917 1,885.0 11.0 2,005 1,950.3 16.4 TTotalotalTotal 22,994,9942,994 22,852.2,852.22,852.2 119.89.819.8 3,1843,1843,184 2,965.82,965.82,965.8 41.641.641.6 Age Under 25 121 114.4 3.0 163 150.8 6.0 25-34 719 687.9 3.0 813 734.4 12.6 35-44 652 599.1 8.0 708 636.4 11.9 45-54 819 786.5 4.8 819 783.3 8.1 55-64 598 584.3 1.0 598 582.9 3.0 Over 64 85 80.0 0.0 83 78.0 0.0 TTotalotalTotal 22,994,9942,994 22,852.2,852.22,852.2 119.89.819.8 3,1843,1843,184 2,965.82,965.82,965.8 41.641.641.6 Class. VRO1 24 19.7 2.0 30 24.8 1.0 VRO2 710 651.2 1.7 771 676.9 14.0 VRO3 727 705.7 3.6 776 737.7 6.6 VRO4 814 786.9 4.0 865 823.6 8.4 VRO5 461 438.9 5.5 473 445.1 7.6 VRO6 174 166.8 2.0 183 172.8 3.0 STS 18 17.0 1.0 13 12.0 1.0 Executives 66 66.0 0.0 73 73.0 0.0 TTotalotalTotal 22,994,9942,994 22,852.2,852.22,852.2 119.89.819.8 3,1843,1843,184 2,965.92,965.92,965.9 41.641.641.6

NNotes:otes:Notes:

• FTE means full time staff equivalent. • All figures reflect employment levels during the last full pay period of June of each year. • Ongoing employees means people engaged on an open ended contract of employment and executives engaged on a standard executive contract who were active in the last full pay period of June. • Excluded are those on leave without pay, external contractors/consultants and temporary staff employed by employment agencies.

VicRoads Annual Report 2011-2012 45

PART FIVE :

Financial management

VicRoads Annual Report 2011-2012 46

Table 1. Key financial results

220120122012 201120112011 $m change YEAR ENDED 30 JUNE $$mm$m $m$m$m inc/(dec)inc/(dec)inc/(dec)

FFINANCIALINANCIAL PERFORMANCE Income from transactions 2,013.3 1,709.2 304.1 Expenses from transactions 1,521.6 1,496.2 25.4 NET RESULT FROM TRANSACTIONS 491.7 213.0 278.7 Other economic flows included in net result 7.8 11.9 (4.1) NET RESULT 499.5 224.9 274.6

ExpensesExpenses from transactions Network and Asset Planning 1,232.3 1,161.5 70.8 Road Safety 100.4 121.3 (20.9) Registration and Licensing 146.5 144.8 1.7 Other services 42.4 68.6 (26.2) 1,521.6 1,496.2 25.4

CAPITALCAPITAL WORKS EXPENDITURE Infrastructure assets 873.6 976.8 (103.2) Other assets 44.9 68.7 (23.8) 918.5 1,045.5 (127.0)

TOTALTOTAL EXPENDITURE 2,440.1 2,541.7 (101.6)

IINCOMENCOME COLLECTED ON BEHALF OF THE VICTORIAN GOVERNMENT AND OTHER GOVERNMENT AGENCIES 3,458.1 3,283.3 174.8

IINCOMENCOME ADMINISTERED ON BEHALF OF THE VICTORIAN GOVERNMENT 27.9 27.4 0.5

220120122012 201120112011 $m change AS AT 30 JUNE $$mm$m $m$m$m inc/(dec)inc/(dec)inc/(dec)

FFINANCIALINANCIAL POSITION Total assets 45,136.6 42,393.6 2,743.0 Total liabilities 419.3 437.1 (17.8) NET ASSETS 44,717.3 41,956.5 2,760.8

LIABILITIESLIABILITIES ADMINISTERED ON BEHALF OF THE VICTORIAN GOVERNMENT Total liabilities 346.4 341.1 5.3

VicRoads Annual Report 2011-2012 47

Financial overview VicRoads total expenditure was $2.4 billion in 2011–12, $0.1 billion less than the previous year. This expenditure comprised $1.5 billion in expenses from transactions and $0.9 billion in capital works expenditure. The total expenditure for 2011–12 comprised $1.9 billion in delivering outputs and $0.5 billion relating to the expensing of assets recognised as outputs in previous years. The value of road infrastructure and other assets managed by VicRoads increased by $2.7 billion to $45.1 billion during 2011–12. Total liabilities decreased by $17.8 million to $419.3 million during the year. These movements in assets and liabilities resulted in a growth in net assets of $2.8 billion to $44.7 billion as at 30 June 2012.

Financial performance VicRoads recorded a net result surplus of $499.5 million in 2011–12 compared with a net surplus of $224.9 million in the previous year. The increase in surplus was due principally to increased funding provided through Victorian Government Appropriations and assets received free of charge. The 2011–12 net result surplus was achieved after recognising as revenue $836.5 million to fund capital works expenditure, $79.6 million to fund an increase in working capital, $11.80 million as assets received free of charge, and $7.0 million arising from asset register adjustments. These revenue items were partly offset by the expensing of assets which were funded by revenue from Governments Grants in previous years, via depreciation, disposal or divestment, totalling $541.6 million.

Funding sources VicRoads funding is derived from the Victorian Government annual budget, program funding from the Transport Accident Commission, revenue from regulatory fees and fee-for-service charges. Funding for operating outputs and capital works from all sources totalled $2.0 billion during 2011–12, a decrease of $41.1 million on the previous year. The Victorian Government receives funding for improvements to and maintenance of the National Land Transport Network under the Commonwealth Nation Building Program (National Land Transport) Act 2009 and the Commonwealth Interstate Road Transport Act 1985. This funding is forwarded to VicRoads as a grant to meet expenditure commitments. Victorian Government Grants of Australian Government funding to VicRoads in 2011–12 totalled $712.3 million, an increase of $228.1 million over the previous year. The increase in funding was principally a result of the increased funding provided for major construction projects including the M80 Ring Road upgrade, West Gate Bridge strengthening, and Geelong Ring Road section 4B. In 2011–12, VicRoads was provided with Victorian Government Grants comprising General Appropriations and Better Roads Victoria Trust Account funding totalling $892 million, a decrease of $288.3 million on the previous year. This decrease was principally due to a reduction in capital appropriations as related capital projects reach completion. The Victorian Government’s Better Roads Victoria Trust Account was established under the Business Franchise (Protection Products) Act 1979. The Act originally required a State levy on petrol and diesel fuel sales to be utilised to fund construction and maintenance of roads. Following the abolition of this levy in August 1997, the Victorian Government has continued to make equivalent payments to the Trust Account, together with an indexed $17 per motor vehicle registration applicable from 1 July 2003. The funding of projects from the Better Roads Victoria Trust Account contributes to Victoria’s economic development through reduced transport costs and increased efficiency of arterial roads. Two thirds of funding from the Trust Account is directed to metropolitan road projects and one third to rural road projects. Since the Better Roads Victoria Trust Account was established in 1993, 2,096 road infrastructure projects (comprising 463 projects in the metropolitan area and 1,633 in regional Victoria) valued at more than $5.3 billion have been approved. The Better Roads Victoria Trust Account provided funding for road construction and maintenance projects of $243.5 million in 2011–12, a decrease of $77.9 million on the previous year. This is primarily due to the completion of major road construction projects and acceleration of Australian Government funding for road construction projects ahead of State Government funding.

VicRoads Annual Report 2011-2012 48

From 1 July 2005, revenue raised from traffic cameras and on the spot speeding fines has also been paid into the Better Roads Victoria Trust Account and utilised to fund road construction and maintenance, road safety, and traffic and transport integration programs. VicRoads received traffic camera and speeding fine funding of $309.9 million during 2011–12. VicRoads generated revenue from regulatory fees, fee for service charges, and other revenue totalling $271.2 million in 2011–12, an increase of $30.2 million on the previous year. This is primarily as a result of insurance recovery for flood restoration works. The Transport Accident Commission provides funding for a range of road safety infrastructure projects and motorcycle safety initiatives. During 2011–12 this funding amounted to $101.8 million, a decrease of $11.1 million on the previous year.

Capital works expenditure VicRoads undertook asset construction works and acquisitions totalling $918.5 million during 2011–12, a decrease of $126.9 million over the previous year. Details of significant capital works projects undertaken during 2011–12 are outlined in the ‘Connection’ section of this report.

Cash flows During 2011–12 VicRoads utilised cash funds received from the Victorian Government, collections of revenue and proceeds from asset disposals totalling $2.1 billion to fund operating activities totalling $1.2 billion and capital works activities totalling $0.9 billion.

Financial position VicRoads non-financial assets increased by $2.7 billion to $44.7 billion during 2011–12. This increase resulted from an upward revaluation of infrastructure assets of $2.3 billion, and asset construction and acquisitions of $0.9 billion. These increases were partially offset by the depreciation of assets amounting to $0.5 billion. VicRoads financial assets increased by $58.5 million to $435.7 million during 2011–12 and total liabilities decreased by $17.8 million to $419.3 million during the year. VicRoads net assets increased by $2.8 billion to $44.7 billion as at 30 June 2012. This increase resulted principally from an upward revaluation of infrastructure assets of $2.3 billion and the net result for the year of $0.5 billion.

Income collected on behalf of the Victorian Government and other government agencies VicRoads administers the collection of certain fees, licences and duties on behalf of the Victorian Government, various State Government agencies, and the Australian Department of Infrastructure and Transport. These amounts are not recognised as VicRoads income but are paid to the Victorian Government’s Consolidated Fund or other government agencies. During 2011–12, collections on behalf of the Victorian Government and other government agencies totalled $3.5 billion compared with $3.3 billion the previous year.

Melbourne Citylink VicRoads manages the administration of revenue, expenditure, assets and liabilities arising from the Melbourne City Link Act 1995 on behalf of the Victorian Government. These items are not recognised as VicRoads revenue, expenditure, assets or liabilities. Details of the concession notes and related revenues are disclosed in Note 1(r)(ii) – ‘Melbourne City Link’ and Note 25 – ‘Transactions administered on behalf of the Victorian Government’.

VicRoads Annual Report 2011-2012 49

Table 2 Five year financial summary

220120122012 201120112011 201020102010 200920092009 200820082008 YEARYEAR ENDED 30 JUNE $$mm$m $m$m$m $m$m$m $m$m$m $m$m$m FFINANCIALINANCIAL PERFORMANCE Income from transactions 2,013.3 1,709.2 1,694.8 1,414.7 1,630.7 Expenses from transactions 1,521.6 1,496.2 1,420.3 1,381.2 1,312.6 NET RESULT FROM TRANSACTIONS 491.7 213.0 274.5 33.5 318.1 Other economic flows included in net result 7.8 11.9 (3.1) 0.7 (7.7) NET RESULT 499.5 224.9 271.4 34.2 310.4 Net change in asset revaluation reserve 2,282.5 (49.5) 3,472.7 - 2,567.4 COMPREHENSIVE RESULT 2,782.0 175.4 3,744.1 34.2 2,877.8 CCASHASH FLOWS Cash flows from operating activities 801.4 706.8 637.9 486.3 647.8 Cash flows used in investing activities (884.2) (1,023.2) (1,086.3) (924.1) (809.1) Cash flows from financing activities 82.0 318.0 448.4 422.0 178.4 NET INCREASE/(DECREASE) IN CASH HELD (0.8) 1.6 - (15.8) 17.1 CCAPITALAPITAL WORKS TOTAL EXPENDITURE 918.5 1,045.4 1,099.0 908.5 795.8

FFUNDINGUNDING SOURCES State Government funding derived from the Federal Government Construction 627.1 400.2 426.4 215.9 262.4 Asset maintenance and minor works 51.9 50.7 48.4 58.7 55.4 Federal Interstate Road Transport Scheme 21.6 19.7 16.3 13.4 14.5 National Blackspot program 11.7 13.6 44.5 11.4 10.2 TOTAL FEDERAL GOVERNMENT FUNDING 712.3 484.2 535.6 299.4 342.5

State Government Outputs appropriations 256.6 261.9 245.6 192.3 224.4 Contributed capital appropriations 82.0 307.7 433.9 439.5 182.4 Better Roads Victoria Trust Account 553.4 610.7 571.9 569.6 631.5 TOTAL STATE GOVERNMENT FUNDING 892.0 1,180.3 1,251.4 1,201.4 1,038.3

Transport Accident Commission program funding 101.8 112.9 104.6 126.7 100.1 VicRoads generated revenue 271.2 241.0 225.8 225.3 246.0

TOTAL FUNDING 1,977.3 2,018.4 2,117.4 1,852.8 1,726.9

IINCOMENCOME COLLECTED ON BEHALF OF THE VICTORIAN GOVERNMENT AND OTHEOTHERR GOVERNMENT AGENCIES Transport Accident Commission fees 1,705.9 1,628.9 1,559.7 1,466.7 1,408.0 Motor vehicle registration 994.7 912.9 853.6 801.9 759.6 Stamp Duty 581.2 576.0 568.8 512.5 568.5 Driver licences 67.9 52.5 34.9 34.1 29.4 Federal Interstate Road Transport Scheme registrations 42.6 41.9 33.1 27.4 30.7 Other 65.7 71.2 58.5 53.8 53.2 TOTAL INCOME 3,458.0 3,283.4 3,108.6 2,896.4 2,849.4

INCOMEINCOME ADMINISTERED ON BEHALF OF THE VICTORIAN GOVERNMENT 27.9 27.4 27.8 39.1 51.4 VicRoads Annual Report 2011-2012 50

Table 2 Five year financial summary (continued)

220120122012 201120112011 201020102010 200920092009 200820082008 AS AT 30 JUNE $$mm$m $m$m$m $m$m$m $m$m$m $m$m$m FFINANCIALINANCIAL POSITION Total assets 45,136.6 42,393.6 41,906.7 37,715.9 * 22,594.8 Total liabilities 419.3 437.1 422.2 373.3 388.2 NET ASSETS 44,717.3 41,956.5 41,484.5 37,342.6 22,206.6

Contributed capital 15,301.0 15,322.1 15,025.6 14,627.7 14,198.6 Asset revaluation reserve 13,300.2 11,017.7 11,067.1 7,594.5 7,594.5 Accumulated surplus/(deficit) 16,116.1 15,616.7 15,391.8 15,120.4 * 413.5 NET WORTH 44,717.3 41,956.5 41,484.5 37,342.6 22,206.6

ASSETSASSETS AND LIABILITIES ADMINISTERED ON BEHALF OF THE VICTORIAN GOVERNMENT Total assets 0.0 0.0 0.0 59.7 193.9 Total liabilities 346.4 341.2 336.9 331.2 325.0 NET ASSETS (346.4) (341.2) (336.9) (271.5) (131.1)

* Includes recognition of land under declared roads valued at $14.7 billion from 1 July 2008

Figure 1. Funding sources 2011–12 ($ million)

102 5% 271 Better Roads Victoria Trust 14% 553 28% Victorian Government

Federal Government

Regulatory and other revenue 712 339 Transport Accident 36% 17% Commission

VicRoads Annual Report 2011-2012 51

Figure 2. Operating output expenditure 2011–12 ($ million)

Asset management

42 147 3% 10% Infrastructure depreciation 100 6% 535 Network planning & 35% improvements

Road safety 208 14% Registration & licensing

Other services

490 32%

Figure 3. Composition of funding sources ($ million)

Includes Better Roads Victoria and Transport Accident Commission funding State Government 1600 Federal Government 1400 Other revenue

1200

1000

800

600

400

200

0 2007–08 2008–09 2009–10 2010–11 2011–12

VicRoads Annual Report 2011-2012 52

PART SIX :

Financial statements

VicRoads Annual Report 2011-2012 53

Comprehensive operating statement For the year ended 30 June 2012

201220122012 201120112011 NotesNotesNotes$’000 $’000 Continuing operations Income from transactions Victorian Government appropriations 1,522,273 1,355,129 Transport Accident Commission grants 101,788 112,921 Regulatory revenue 107,848 111,069 Other revenue 2 163,354 129,970 Assets received free of charge 118,000 105 Total income from transactions 2,013,2632,013,2632,013,263 1,709,1941,709,1941,709,194

Expenses from transactions Employee benefits 3 (250,808) (247,757) Supplies and services 3 (632,027) (651,217) Depreciation 3 (489,688) (473,758) Grants and other transfers (71,804) (61,434) Capital asset charge (49,800) (49,800) Assets transferred to other entities (27,513) (12,242) Total expenses from transactions (1,521,640) (1,496,208) NET RESULT FROM TRANSACTIONS (NET OPERATING BALANCE) 491,623491,623491,623 212,986212,986212,986 TOTAL CHANGES IN EQUITY OTHER THAN THOSE Other economic flows included in net result Net gain/(loss) on non-financial assets 4 16,576 11,563 Other gain/(loss) from other economic flows 4 (8,735) 338 Total other economic flows included in net result 7,8417,8417,841 11,90111,90111,901 NET RESULT 499,464499,464499,464 224,887224,887224,887

Other economic flows - Other non-owner changes in equity Changes in asset revaluation reserve 2,282,533 (49,470) Total other economic flows - Other non-owner changes in equity 2,282,5332,282,5332,282,533 (49,470)(49,470)(49,470) COMPREHENSIVE RESULT 2,781,9972,781,9972,781,997 175,417175,417175,417

The comprehensive operating statement should be read in conjunction with the accompanying notes

VicRoads Annual Report 2011-2012 54

Balance sheet AsAs at 30 June 2012

201220122012 201120112011 NotesNotesNotes$’000 $’000 AssetsAssetsAssets Financial assets Cash and cash equivalents 5 43,400 40,949 Receivables 6 392,325 336,255 Total financial assets 435,725 377,204

Non-financial assets Prepayments 7,646 4,556 Inventories 7 1,465 1,299 Properties held for sale 8 14,922 23,473 Buildings and leasehold improvements 9 51,194 51,034 Plant and equipment 10 23,964 18,918 Land 11 17,134,380 17,120,406 Infrastructure assets 12 27,440,297 24,766,649 Intangible assets 13 27,033 30,019 Total non-financial assets 44,700,901 42,016,354 TOTAL ASSETS 45,136,626 42,393,558

LiabilitiesLiabilitiesLiabilities Payables 14 224,914 252,373 Provisions 15 158,812 159,355 Prepaid revenue 35,587 25,384 TOTAL LIABILITIES 419,313 437,112 NET ASSETS 44,717,313 41,956,446

EquityEquityEquity Contributed capital 15,300,967 15,322,097 Asset revaluation reserve 13,300,220 11,017,687 Accumulated surplus 16,116,126 15,616,662 NET WORTH 44,717,313 41,956,446

Contingent liabilities and contingent assets 20 Commitments for expenditure 21 The balance sheet should be read in conjunction with the accompanying notes

VicRoads Annual Report 2011-2012 55

Statement of changes in equity ForFor the year ended 30 June 2012

Asset revaluation Accumulated Contributions surplussurplussurplus surplussurplussurplus by ownerby owner TotalTotalTotal 201220122012 201220122012 201220122012 201220122012 201220122012 $'000$'000$'000 $'000$'000$'000 $'000$'000$'000 $'000$'000$'000 Balance at 1 July 2011 11,017,687 15,616,662 15,322,097 41,956,446 Net result for the year - 499,464 - 499,464 Other comprehensive income for the year 2,282,533 - - 2,282,533 Book value of State assets sold and proceeds returned to the Victorian Government - - (407) (407) Capital appropriations - - 82,001 82,001 Assets transferred from other Victorian Government agencies - - 1,514 1,514 Assets transferred to other Victorian Government agencies - - (104,238) (104,238) Balance at 30 June 2012 13,300,220 16,116,126 15,300,967 44,717,313

Asset revaluation Accumulated Contributions surplus surplus by owner Total 201120112011 201120112011 201120112011 201120112011 201120112011 $'000$'000$'000 $'000$'000$'000 $'000$'000$'000 $'000$'000$'000 Balance at 1 July 2010 11,067,157 15,391,775 15,025,554 41,484,486 Net result for the year - 224,887 - 224,887 Other comprehensive income for the year (49,470) - - (49,470) Book value of State assets sold and proceeds returned to the Victorian Government - - (9,591) (9,591) Capital appropriations - - 307,734 307,734 Assets transferred to other Victorian Government agencies - - (1,600) (1,600) Balance at 30 June 2011 11,017,687 15,616,662 15,322,097 41,956,446

The statement of changes in equity should be read in conjunction with the accompanying notes

VicRoads Annual Report 2011-2012 56

Cash flow statement For the year ended 30 June 2012

201220122012 201120112011 NotesNotesNotes$$$’ $’’’000000000000 $$$’$’’’000000000000 Cash flows from operating activities ReceiptsReceiptsReceipts Receipts from government grants and appropriations 1,467,823 1,348,596 Receipts from other sources 384,109 356,774 Goods and Services Tax collected 37,602 40,677 Goods and Services Tax recovered from the Australian Taxation Office 120,415 120,968 Interest received 1,457 1,713 Total receipts 2,011,4062,011,4062,011,406 1,868,7281,868,7281,868,728

Payments Payments to suppliers and employees (930,400) (888,997) Payments of grants and other transfers (71,803) (61,434) Goods and Services Tax paid on purchases (158,016) (161,645) Payments of capital asset charge (49,800) (49,800) Total payments (1,210,019) (1,161,876)

NET CASH FLOWS FROM OPERATING ACTIVITIES 24 801,387801,387801,387 706,852706,852706,852

Cash flows from investing activities Payments for purchase of non-financial assets (891,031) (1,037,881) Proceeds from sale of non-financial assets 6,866 14,665 NET CASH FLOWS USED IN INVESTING ACTIVITIES (884,165)(884,165)(884,165) (1,023,216)

Cash flows from financing activities Proceeds from capital contributions by the Victorian Government 82,001 318,000 NET CASH FLOWS FROM FINANCING ACTIVITIES 82,00182,00182,001 318,000318,000318,000 NET INCREASE/ (DECREASE) IN CASH HELD (777)(777)(777) 1,6361,6361,636 Cash at the beginning of the financial year 4,465 2,829 CASH HELD AT THE END OF THE FINANCIAL YEAR 5 3,6883,6883,688 4,4654,4654,465

The cash flow statement should be read in conjunction with the accompanying notes

VicRoads Annual Report 2011-2012 57

Notes to the financial statements For the year ended 30 June 2012 NoNotete 1 SummarySummary of significant accounting policiespoliciespolicies (a)(a)(a) Statement of compliance The financial statements are general purpose financial statements which have been prepared on an accrual basis in accordance with the Financial Management Act 1994 and applicable Australian accounting standards and interpretations. The financial statements comply with relevant financial reporting directions issued by the Victorian Department of Treasury and Finance, and relevant standing directions authorised by the Minister for Finance. In particular, they are presented in a manner consistent with the requirements of AASB 1049 Whole of Government and General Government Sector Financial Reporting.

(b)(b)(b) Basis of preparation The financial statements have been prepared on a historical cost basis, except for the revaluation of certain non-financial assets and financial instruments. Cost is based on the fair values of the consideration given in exchange for assets. Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported. In the application of Accounting Standards, Financial Reporting Directions and Standing Directions, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstance, the results of which form the basis of making the judgements. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised in the period in which the estimate is revised if the revision effects only that period or in the period of the revision and future periods if the revision effects both current and future periods. The accounting policies disclosed in the notes have been applied in preparing the financial statements for the year ended 30 June 2012 and the comparative information presented for the year ended 30 June 2011.

(c)(c)(c) Scope and presentation of financial statements (i)(i)(i) Comprehensive operating statement Income and expenses in the comprehensive operating statement are classified according to whether or not they arise from ‘transactions’ or ‘other economic flows’. This classification is consistent with the whole of government reporting format and is allowed under AASB 101 Presentation of Financial Statements. ‘Transactions’ and ‘other economic flows’ are defined by the Australian System of Government Finance Statistics: Concepts, Sources and Methods 2005 and Amendments to Australian System of Government Finance Statistics, 2005. ‘Transactions’ are those economic flows that are considered to arise as a result of policy decisions, usually interactions between two entities by mutual agreement. Transactions also include flows within an entity, such as depreciation where the owner is simultaneously acting as the owner of the depreciating asset and as the consumer of the service provided by the asset. Transactions can be in kind or where the final consideration is cash. ‘Other economic flows’ are changes arising from market remeasurements. They include:

• gains and losses from disposals VicRoads Annual Report 2011-2012 58

• revaluations and impairments of non-financial physical and intangible assets • fair value changes of financial instruments. The net result is equivalent to profit or loss derived in accordance with Australian Accounting Standards.

(ii)(ii)(ii) Balance sheet Assets and liabilities are presented in liquidity order with assets aggregated into financial assets and non- financial assets. Current and non-current assets and liabilities (non current being those assets or liabilities expected to be recovered or settled later than 12 months from 30 June 2012) are disclosed in the notes, where relevant.

(iii)(iii)(iii) Cash flow statement Cash flows are classified according to whether or not they arise from operating, investing, or financing activities. This classification is consistent with requirements under AASB 107 Statement of Cash Flows.

(iv)(iv)(iv) Statement of changes in equity The statement of changes in equity presents reconciliations of non owner and owner changes in equity from opening balance at the beginning of the reporting period to the closing balance at the end of the reporting period. It also shows separately changes due to amounts recognised in the ‘Comprehensive result’ and amounts recognised in ‘Other economic flows – other movements in equity’ related to ‘Transactions with owner in its capacity as owner’.

(d)(d)(d) Income from transactions Income from transactions is recognised to the extent that it is probable that the economic benefits will flow to the Corporation and the income can be reliably measured. The Corporation’s income is recognised as follows:

(i)(i)(i) Government appropriations Government appropriations are recognised when the related outputs have been delivered and expenditure is incurred.

(ii)(ii)(ii) Transport Accident Commission grants Transport Accident Commission grants are recognised when the related expenditure is incurred.

(iii)(iii)(iii) Regulatory revenue Regulatory, licence fees, fines and penalties payable to the Corporation in accordance with the Transport Integration Act 2010, the Road Safety Act 1986, the Chattel Securities Act 1987, the Road Management Act 2004 and related regulations are recognised when received by the Corporation.

(iv)(iv)(iv) Other revenue Revenue in respect of services or works provided by the Corporation is recognised at the time the service to which the revenue relates is provided or work is undertaken and the revenue is receivable. Rental revenue from the leasing of properties is recognised on a straight line basis over the term of the lease. Interest revenue is recognised on a time proportionate basis that takes into account the effective yield of the financial asset.

(e)(e)(e) Expenses from transactions (i)(i)(i) Employee benefits Employee benefits include salaries, wages, accrued leave entitlements, superannuation entitlements and payroll tax. These benefits are recognised as an expense in the reporting period in which they are incurred.

VicRoads Annual Report 2011-2012 59

The Corporation’s employees are covered for superannuation benefits as members of defined benefit and accumulation superannuation schemes. The Corporation makes contributions to defined benefit superannuation schemes based on a fixed percentage of current Corporation employee members’ annual salary as actuarially determined by the scheme. The Victorian Government’s Department of Treasury and Finance centrally recognises the defined benefit liability or surplus of the Corporation’s employees in such schemes. Contributions made by the Corporation to accumulation superannuation schemes are in accordance with the Commonwealth Superannuation Guarantee (Administration) Act 1992. Additional contributions are made by the Corporation when salary sacrifice arrangements are requested by employees. Contributions made by the Corporation to employee superannuation schemes are charged as an expense as the contributions are paid or become payable. Contributions made to employee superannuation schemes are detailed in Note 23 – ‘Superannuation Contributions’.

(ii)(ii)(ii) Supplies and services Supplies and services expenses are recognised as an expense in the reporting period in which they are incurred. The carrying amounts of any inventories held for distribution are expensed when distributed.

(iii)(iii)(iii) Depreciation Non-financial assets other than land, earthworks, earth mound barriers, inventories, water rights and properties held for resale are systematically depreciated in order to write-off the cost of these assets over their useful lives to the Corporation. Depreciable assets are depreciated from the date of acquisition or, in respect of constructed assets, from the time an asset is completed and held ready for use. These assets are depreciated using the straight-line method with due allowance for residual values. Estimated remaining useful lives of depreciable assets are reviewed on an annual basis to reflect wear and tear from physical use and technical and economic developments, and depreciation rates are adjusted accordingly. It has been determined by experts in infrastructure valuations that earthworks and earth mound barriers do not have a limited useful life to the Corporation, and therefore these assets are not depreciated. The expected useful lives of depreciable assets for the current and prior year are as follows: AAssetsset class UUsefulseful lifelifeUseful IInfrastructurenfrastructure assets Road pavement 60 years Sound barriers 20 and 50 years Bridges 90 years Traffic control systems 7 to 25 years BBuildingsuildingsBuildings Operational 40 years Improvements on land acquired for roads 40 years PPlantlant and equipment Computers and computer systems 4 to 10 years Plant and technical equipment 5 to 13 years Office machines and equipment 5 years Audio visual and photographic 4 to 5 years Furniture, fittings and fit outs 10 years Weighbridges 40 years IIntangiblentangible assets Software 3 to 14 years

Leasehold property improvements are depreciated over the unexpired period of leases or the useful lives of the improvements, whichever is the shorter. VicRoads Annual Report 2011-2012 60

(iv)(iv)(iv)(iv) Grants and other transfers Grants and other transfers to municipalities are recognised as an expense in the reporting period in which they are paid or payable.

(v)(v)(v) Capital asset charge A capital asset charge is imposed by the Victorian Government’s Department of Treasury and Finance which represents the opportunity cost, as determined by the Department, of capital invested in the non- current physical assets used in the provision of the Corporation’s services. The charge is calculated on the carrying amount of non-current physical assets other than infrastructure assets.

(f)(f)(f) Other economic flows included in net result Other economic flows measure the change in volume of value of assets or liabilities that do not result from transactions.

(i)(i)(i) Net gain/(loss) on nonnon----financialfinancial assets Net gain/(loss) on non-financial assets includes realised gains and losses from the disposals of surplus assets, assets received and transferred free of charge, asset register adjustments and impairment of physical assets. Any gain or loss from the disposal of surplus assets is recognised at the date that control of the asset is passed to the buyer and is determined after deducting from the proceeds the carrying value of the asset at that time. Assets provided free of charge are recognised at their fair value at the time of transfer from the Corporation. Assets received free of charge are recognised at their fair value at the time that the Corporation obtains control over the assets.

(ii)(ii)(ii) Other gains/(losses) from other economic flows Other gains/(losses) from other economic flows include the revaluation of the present value of the long service leave liability due to changes in the bond interest rates (refer to Note (l) Provisions (i) Employee benefits), and foreign currency translation differences (refer to Note 1(v) Foreign currency).

(g)(g)(g) Other economic flows --- Other nonOther non-non---ownerowner changes in equity Other non-owner changes in equity include changes in the asset revaluation reserve resulting from the revaluation of non-current physical assets including impairment losses (refer to Note 1 (j) Non-financial assets (v) Valuations).

(h)(h)(h) Cash and cash equivalent assets Cash assets include cash in bank and on hand. Cash equivalents include short term deposits with an original maturity of three months or less held with Treasury Corporation Victoria. The Corporation holds cash and cash equivalent collections on behalf of the Victorian Government and government agencies. The cash balances held by the Corporation on behalf of the Victorian Government and government agencies are not available for use by the Corporation. The Corporation also holds cash funds on behalf of other governments and public entities. The cash balances held by the Corporation are applied in accordance with the funding contracts.

(i)(i)(i) Receivables Receivables consist predominantly of revenue from governments and government agencies. This revenue will be realised when required to fund related expenditure commitments. Debtors are recognised as amounts receivable as they are due for settlement within 30 days from the date of recognition. The collectability of debtors is reviewed on an ongoing basis. Debts which are known to be uncollectable are written off and an allowance for doubtful debts is raised where there is objective evidence that the debts may not be collected.

VicRoads Annual Report 2011-2012 61

(j)(j)(j)(j) NonNonNon-Non---financialfinancial assets (i)(i)(i) Declared road network The Corporation is responsible in accordance with the Transport Integration Act 2010 for the development and management of Victoria’s declared road network. As the Corporation has control over the declared road network and accepts all risks associated with the network, the value of the network has been recognised in the ‘Balance sheet’.

(ii)(ii)(ii) Asset classifications Non-financial assets are classified in the following categories:

• Infrastructure assets which encompass Victoria’s declared road network and include road pavements, sound barriers, earthworks, bridges and traffic control systems. • Land assets which comprise land used for operations, land acquired for future public roads, land under declared roads and land in commercial use. • Buildings and leasehold improvements which comprise offices, residential properties, storage depots and patrol garages on freehold land, buildings on land acquired for future public roads, and leasehold buildings and improvements on Crown and leased land. • Plant and equipment which comprise office fit outs, furnishings and fittings, computers and other technical equipment. • Intangible assets which comprise purchased and developed computer software and water rights. • Inventories which comprise stockpiles of construction and maintenance materials, saleable items and consumable stores held for either distribution in the ordinary course of business operations or for sale. • Properties held for sale, which comprise properties identified as surplus to the Corporation’s requirements. These properties are in a state ready for sale, are being actively marketed for sale and the sale is expected to be completed within twelve months.

(iii)(iii)(iii) AcquAcquAcquisitionAcquisition of assets The cost method of accounting is used for all acquisitions of assets. Cost is measured as the fair value of the assets given up or liabilities undertaken at the date of acquisition, plus incidental costs directly attributable to the acquisition. Assets acquired at no cost, or for nominal consideration, are initially recognised at their fair value at the date of acquisition.

(iv)(iv)(iv) Constructed assets The cost of non-financial assets constructed by the Corporation includes the cost of all materials, direct labour and other costs directly attributable to the construction of the asset. (v)(v)(v) ValuationsValuationsValuations Subsequent to the initial recognition of assets, all classes of non-financial assets, other than prepayments and inventories are valued on a fair value basis in accordance with Financial Reporting Direction 103D – ‘Non-Current Physical Assets’. Fair value is determined as the market value, or in the absence of a market value, depreciated replacement cost. Infrastructure assets are valued based on the current replacement cost of equivalent assets that are capable of providing the same level of service as the existing assets and written-down to take account of expired service life. Land, other than land under declared roads, and buildings are valued based on amounts for which the assets could be exchanged between willing parties in an arms length transaction. The valuation is based on current prices in an active market for similar properties in the same location and condition and with regard to any known restrictions in use. Land acquired in relation to the construction of future public roads is measured initially at cost and subsequently at fair value.

VicRoads Annual Report 2011-2012 62

Land under declared roads acquired prior to 1 July 2008 is measured at fair value. Land under declared roads acquired on or after 1 July 2008 is measured initially at cost of acquisition and subsequently at fair value. The fair value of land under declared roads is based on average rateable value per hectare within each municipal site discounted to reflect the value prior to subdivision, the discount factors range from 15 per cent for rural land under freeways to 80 per cent for residential land under main roads. Plant and equipment is disclosed at fair value. Fair value is determined as the original acquisition costs less any accumulated depreciation and impairment losses. Intangible assets are valued on a cost basis. Cost is determined as the original acquisition cost less any accumulated amortisation and impairment losses. Works in progress are valued at construction cost. Inventories of stockpile materials, saleable items and consumable stores are valued on a cost basis. Cost is determined as the original acquisition cost. Properties held for sale are measured at the lower of carrying amount or fair value less costs to sell. The Corporation undertakes formal revaluations of the fair value of infrastructure, land and buildings assets every five years or where exceptionally material movements are considered to have occurred. During the intervening years, the carrying values of these assets are assessed annually to determine if their carrying values remain consistent with their fair value. Should the carrying value of these assets differ from their fair value to the extent that it is material, a managerial revaluation will be undertaken. Infrastructure assets were independently valued by external engineers as at 30 June 2010. A managerial revaluation of infrastructure assets, based on indexation, considering the present condition and reviewing the remaining useful lives was undertaken by the Corporation as at 30 June 2012 after the Corporation determined that a material movement in values had occurred since the last independent valuation. Land, buildings, leasehold improvements and assets in commercial use were independently valued by the Valuer-General Victoria as at 30 June 2010. For assets which are valued at their fair value, revaluation increments and decrements are accounted for as follows:

• Revaluation increments are credited directly to the asset revaluation reserve, except that, to the extent that an increment reverses a revaluation decrement in respect of that class of asset previously recognised as an expense, the increment is recognised immediately as revenue. • Revaluation decrements are recognised immediately as an expense except that, to the extent that a credit balance exists in the asset revaluation reserve applicable to the same class of assets, a decrement is debited directly to the asset revaluation reserve. • Revaluation increments and decrements are offset against one another within a class of non- current physical assets.

(vi)(vi)(vi) Impairment of assets All assets other than inventories and properties held for sale are assessed annually for any indications of impairment. Should there be an indication of impairment; the carrying value of an asset is tested to determine whether its carrying value exceeds its recoverable amount. The recoverable amount is measured as the higher of depreciated replacement cost and fair value less costs to sell. For assets where their carrying value exceeds their recoverable amount, the carrying value is reduced to the recoverable amount and the impairment loss is written off as an expense, except that, to the extent that a credit balance exists in the asset revaluation reserve applicable to the same class of assets, the impairment loss is debited directly to the asset revaluation reserve.

VicRoads Annual Report 2011-2012 63

(k)(k)(k)(k) Payables Creditors and accruals represent liabilities for goods and services provided to the Corporation prior to the end of the financial year and which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Terms and conditions of amounts payable to the Victorian Government, government agencies and other entities vary according to particular agreements.

(l)(l)(l) ProvisionsProvisionsProvisions (i)(i)(i) Employee benefits Provision has been made for the Corporation’s obligations for employee annual leave, long service leave, performance and other entitlements arising from services rendered by employees to balance date. Provision has not been made for non-vesting sick leave as the anticipated pattern of future sick leave taken indicates that accumulated non-vesting leave will not be utilised.

AnnualAnnual leave, performance and other entitlements Liabilities for annual leave, performance and other entitlements are expected to be settled within 12 months of the reporting period and are disclosed as a current liability and measured at their nominal values.

LongLong service leave The liability for unconditional long service leave is disclosed as a current liability on the basis that employees have the unconditional right to the entitlement within 12 months. The liability for conditional long service leave is disclosed as a non-current liability on the basis that the entitlement is conditional upon employees completing additional years of service. The liability for long service leave to be settled after 12 months has been calculated as the present value of estimated future cash payments to be made by the Corporation in respect of services provided by employees to balance date. In determining the liability, consideration has been given to estimated future salary levels, experience of employee departures and periods of service. Estimated future payments have been discounted using interest rates attached to Commonwealth Government guaranteed securities with terms to maturity that match, as closely as possible, the estimated future cash payments. Any gain or loss following revaluation of the present value of the long service leave liability arising due to changes in bond interest rates is recognised as a gain or loss from other economic flows included in the net result.

On-OOnn---costscostscostscosts Employee benefits on-costs (payroll tax, workers compensation and superannuation) are recognised separately from the provisions for employee benefits. Employee benefits on-costs liability expected to settle within 12 months is measured at nominal value and the liability expected to settle after 12 months is measured as the present value of estimated future cash payments to be made by the Corporation.

(ii)(ii)(ii) Contractor retentions and provisions Contractor retentions represent contractor payments withheld as securities by the Corporation and contractor provisions represent claims made by contractors, pursuant to contractual arrangements entered into by the Corporation.

(iii)(iii)(iii) Property acquisition liabilities In circumstances where the Corporation has issued a notice of compulsory acquisition or has taken possession of a property for the purpose of commencing roadworks and final settlement has not been achieved at balance date, the acquisition is recognised as a liability based, wherever practicable, on an independent valuation.

VicRoads Annual Report 2011-2012 64

(iv)(iv)(iv)(iv) Compensation payable to property owners In circumstances where the Corporation has caused financial loss to property owners due to overlays, developments or other works, the Corporation may compensate the property owner for any loss. Where agreement has not been reached at balance date, the compensation is recognised as a liability, based, wherever practicable, on an independent valuation. (m)(m)(m) LLLeasesLeaseseaseseases (i)(i)(i) Corporation as lessor Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. (ii)(ii)(ii) Corporation as lessee Operating lease payments are recognised as an expense on a straight-line basis over the term of the relevant lease.

(n)(n)(n) Contributed capital Appropriations from the Victorian Government for additions to net assets and other transfers that are in the nature of contributions have been designated as contributed capital. Proceeds from the sale of surplus operational properties which were originally funded by the Victorian Government, are paid into the Government’s Consolidated Fund. An amount equivalent to the book value of such properties is recognised as a reduction in contributed capital.

(o)(o)(o) Financial ininstrumentsstrumentsstrumentsstruments Financial instruments consist of cash assets, receivables and payables, and are valued on a fair value basis. Fair value is determined as follows:

• Fair value of financial instruments with standard terms and conditions, and traded in active liquid markets, is determined with reference to quoted market prices; • Fair value of other financial instruments is determined in accordance with generally accepted pricing models based on discounted cash flow analysis; and • Fair value of compensation payments recoverable is based on historic cost. The carrying amount of financial instruments excludes statutory amounts owed by or to the Corporation.

(p)(p)(p) Contingent assets and contingent liabilities Contingent assets and contingent liabilities are not recognised in the ‘Balance sheet’, but are disclosed by way of a note to the financial statements and if quantifiable, are measured at nominal value.

(q)(q)(q) Commitments Commitments for the construction of infrastructure assets, the acquisition of plant and equipment arising from non-cancellable contracts and non-cancellable lease contracts are not recognised in the ‘Balance sheet’, but are disclosed by way of a note to the financial statements and are measured at their nominal value.

(r)(r)(r) Transactions administered on behalf of the ViVictorianctorian Government (i)(i)(i) Income collections The Corporation administers the collection of certain fees, licences and duties on behalf of the Victorian Government in accordance with the Road Safety Act 1986, the Motor Vehicles Duties Act 2000, and on behalf of certain government agencies. These income collections are not recognised as the Corporation’s income. Expenses incurred in the collection of this income are recognised as the Corporation’s expense. Expenses are funded from Victorian Government grants and fees paid by the Transport Accident Commission which are recognised in the ‘Comprehensive operating statement’.

VicRoads Annual Report 2011-2012 65

Income collected, but not remitted to the Victorian Government and government agencies at balance date is recognised as an asset and a corresponding liability in the ‘Balance sheet’. Cash flows relating to the income collected are not recognised in the ‘Cash flow statement’. Transactions relating to the income collections are disclosed in Note 25 - ‘Transactions administered on behalf of the Victorian Government’ and Note 26 - ‘Collections on behalf of government agencies’.

(ii)(ii)(ii) Private provision of public infrastructure MelbourneMelbourne City Link The Corporation manages the statutory functions and powers of the State under the Melbourne City Link Act 1995. These functions and powers include the administration of the contractual arrangements, revenue and assets of the CityLink Project. In accordance with the Melbourne City Link Act 1995, (amongst others, the State, CityLink Melbourne Limited (CML)) entered into the Melbourne City Link Concession Deed with effect as at and from on 30 October 1995. Under the terms of the Concession Deed, CML is responsible for the construction, financing and operation of the City Link road network during the concession period that is currently expected to expire on 14 January 2034. The Concession Deed requires CML to pay to the State specified concession fees at specified intervals during the concession period. In accordance with the Concession Deed, CML has exercised an option to meet its obligations to pay concession fees by way of issuing concession notes. These notes are non- interest bearing promissory notes payable by CML at the end of the concession period or earlier in the event of CML achieving certain financial profitability levels and cash flows. The State, CML and Transurban Infrastructure Management Limited (TIML) entered into the M1 Corridor Deed of Assignment on 25 July 2006. Under the terms of the Deed of Assignment, all concession notes held by, and due to be (Deed of Assignment) issued to the State in accordance with the Concession Deed, have been assigned to TIML for a defined payment stream over a four year period ending 30 June 2010. The concession notes and related revenues are not recognised as the Corporation’s revenue, assets and liabilities. Details of the concession notes and related revenues are disclosed in Note 25 – ‘Transactions administered on behalf of the Victorian Government’. The value of concession notes due to be received by the State in accordance with the Concession Deed, has been disclosed at the present value of concession notes to be issued in future periods by CML. The present value of the concession notes has been calculated based on an interest rate implied in the estimated concession note redemption profile included in the Deed of Assignment. The present value of the concession notes is disclosed as deferred City Link revenue. The Concession Deed provides for CML to lease certain land and road infrastructure from the State during the concession period. At the end of this period, the assets are to be returned together with the transfer of the City Link road to the State. There is, currently, no authoritative accounting guidance applicable to the recognition and measurement of the State’s right to receive the City Link road from CML at the end of the concession period. In the absence of such guidance, there has been no change to the existing policy and the right has not been recognised as an administrative asset in the financial statements.

E astLinkastLinkastLink The Corporation manages the statutory functions and powers of the State under the EastLink Project Act 2004. These functions and powers include the management of agreements concerning the development, delivery and operation of the EastLink Project. The State and ConnectEast Pty Ltd (ConnectEast), amongst others, entered into the EastLink Concession Deed on 14 October 2004. Under the terms of the Concession Deed, ConnectEast is responsible for the construction, financing and operation of the EastLink Project. ConnectEast has a right to operate the EastLink road network for the duration of the concession period which is due to expire on 30 November 2043.

VicRoads Annual Report 2011-2012 66

The Concession Deed provides for ConnectEast to lease certain land from the State during the concession period. At the end of this period, the land is to be returned together with the transfer of the EastLink road network to the State. There is, currently, no authoritative accounting guidance applicable to the recognition and measurement of the State’s right to receive the EastLink road network from ConnectEast at the end of the service concession period. In the absence of such guidance, there has been no change to the existing policy and the right has not been recognised as an administrative asset in the financial statements.

(s)(s)(s) Goods and Services Tax Income, expenses and assets are recognised net of associated Goods and Services Tax, unless the tax incurred is not recoverable from the Australian Taxation Office. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense. The net amount of Goods and Services Tax recoverable from, or payable to, the Australian Taxation Office is included as part of receivables or payables in the ‘Balance sheet’. The Goods and Services Tax component of a receipt or payment is recognised on a gross basis in the ‘Cash Flow Statement’.

(t)(t)(t) Rounding of amounts All amounts disclosed in the financial statements have been rounded to the nearest thousand dollars, unless otherwise stated.

(u)(u)(u) FuncFuncFunctionalFunctional and presentation currency The functional currency of the Corporation is the Australian Dollar, which has also been identified as the presentation currency of the Corporation.

(v)(v)(v) Foreign currency All foreign currency transactions during the financial year are brought to account using the exchange rate in effect at the date of the transaction. Foreign monetary items existing at the end of the reporting period are translated at the closing rate at the date of the end of the reporting period.

(w)(w)(w) Comparatives Where necessary, comparatives have been reclassified and repositioned for consistency with current year disclosures.

(x)(x)(x) New Accounting SStandardstandards and interpretations As at 30 June 2012, the following new accounting standards and interpretations have been issued however, their adoption was not mandatory for the financial year ending 30 June 2012. The Corporation has not, and does not intend to adopt these standards early.

Standard/Standard/Standard/ SSummaryummarySummary Applicable for IImpactmpact on Corporation’s Interpretation annual reporting ffinancialinancial statements periods beginning ononon

AASB 9 Financial This Standard simplifies 1 Jan 2013 No impact on the instruments requirements for the Corporation’s reporting. classification 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).

VicRoads Annual Report 2011-2012 67

Standard/Standard/Standard/Standard/ SSummaryummarySummary Applicable for IImpactmpact on Corporation’s Interpretation annual reporting ffinancialinancial statements periods beginning ononon

AASB 13 Fair Value This Standard outlines the 1 Jan 2013 Increased disclosure may be Measurement requirements for measuring the required in the Corporation’s fair value of assets and liabilities financial statements and replaces the existing fair value definition and guidance in other AASs. AASB 13 includes a ‘fair value hierarchy’ which ranks the valuation technique inputs into three levels using unadjusted quoted prices in active markets for identical assets or liabilities; other observable inputs; and unobservable inputs.

AASB 1053 Application of This Standard establishes a 1 July 2013 The Victorian Government is Tiers of Australian differential financial reporting currently considering the Accounting Standards framework consisting of two tiers impacts of Reduced of reporting requirements for Disclosure Requirements preparing general purpose (RDRs) for certain public financial statements. sector entities and has not decided if RDRs will be implemented in the Victorian public sector.

AASB 2009-11 Amendments This Standard gives effect to 1 Jan 2013 No significant impact on the to Australian Accounting consequential changes arising Corporation’s reporting. Standards arising from AASB from the issuance of AASB 9. 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 2010-2 Amendments This Standard details 1 July 2013 The Victorian Government is to Australian Accounting amendments to many Australian currently considering the Standards arising from Accounting Standards, including impacts of Reduced Reduced Disclosure interpretations, to reduce Disclosure Requirements Requirements disclosure requirements relating (RDRs) for certain public to the pronouncements for sector entities and has not application by certain types of decided if RDRs will be entities. implemented in the Victorian public sector.

AASB 2010-7 Amendments This Standard details 1 Jan 2013 No significant impact on the to Australian Accounting amendments in relation to the Corporation’s reporting. Standards arising from AASB introduction of AASB 9. 9 (December 2010) [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and Interpretations 2, 5, 10, 12, 19 & 127]

VicRoads Annual Report 2011-2012 68

Standard/Standard/Standard/Standard/ SSummaryummarySummary Applicable for IImpactmpact on Corporation’s Interpretation annual reporting ffinancialinancial statements periods beginning ononon

AASB 2011-3 Amendments This Standard amends AASB 1049 1 July 2012 No impact on the to Australian Accounting to clarify the definition of the ABS Corporation’s reporting. Standards – Orderly GFS Manual, and to facilitate the Adoption of Changes to the adoption of changes to the ABS Australian Bureau of GFS Manual and related Statistics (ABS) Government disclosures. Financial Statistics (GFS) Manual and Related Amendments [AASB 1049]

AASB 2011-4 Amendments This Standard amends AASB 124 1 July 2013 No significant impact on the to Australian Accounting Related Party Disclosures by Corporation’s reporting. Standards to Remove removing the disclosure Individual Key Management requirements in AASB 124 in Personnel Disclosure relation to individual key Requirements management personnel. [AASB 124]

AASB 2011-7 Amendments This Standard outlines 1 Jan 2013 No impact on the to Australian Accounting consequential changes arising Corporation’s reporting. Standards arising from the from the issuance of the five Consolidation and Joint ‘new Standards’ to other Arrangements Standards Standards. [AASB 1, 2, 3, 5, 7, 9, 2009- 11, 101, 107, 112, 118, 121, 124, 132, 133, 136, 138, 139, 1023 & 1038 and Interpretations 5, 9, 16 & 17]

AASB 2011-8 Amendments This Standard details 1 Jan 2013 Disclosures for fair value to Australian Accounting consequential changes to a measurements using Standards arising from AASB range of Standards and unobservable inputs may 13 Interpretations arising from the increase disclosures for [AASB 1, 2, 3, 4, 5, 7, 9, issuance of AASB 13. In particular, assets measured using 2009-11, 2010-7, 101, 102, this Standard replaces the depreciated replacement 108, 110, 116, 117, 118, 119, existing definition and guidance cost. 120, 121, 128, 131, 132, 133, of fair value measurements in 134, 136, 138, 139, 140, 141, other Australian Accounting 1004, 1023 & 1038 and Standards and Interpretations. Interpretations 2, 4, 12, 13, 14, 17, 19, 131 & 132]

AASB 2011-9 Amendments This Standard details 1 July 2012 This amending Standard to Australian Accounting requirements for entities to could change the current Standards – Presentation of group items presented in other presentation of ‘Other Items of Other comprehensive income on the economic flows- other Comprehensive Income basis of whether they are movements in equity’ that will [AASB 1, 5, 7, 101, 112, 120, potentially reclassifiable to profit be grouped on the basis of 121, 132, 133, 134, 1039 & or loss subsequently whether they are potentially 1049] (reclassification adjustments). reclassifiable to profit or loss.

VicRoads Annual Report 2011-2012 69

Standard/Standard/Standard/Standard/ SSummaryummarySummary Applicable for IImpactmpact on Corporation’s Interpretation annual reporting ffinancialinancial statements periods beginning ononon

AASB 2011-10 Amendments This Standard details 1 Jan 2013 No impact on the to Australian Accounting consequential changes to a Corporation’s reporting. Standards arising from AASB range of other Australian 119 (September 2011) Accounting Standards and [AASB 1, AASB 8, AASB 101, Interpretaion arising from the AASB 124, AASB 134, AASB issuance of AASB 119 Employee 1049 & AASB 2011-8 and Benefits . Interpretation 14]

AASB 2011-11 Amendments This Standard details 1 July 2013 The Victorian Government is to AASB 119 (September amendments to AASB 119 currently considering the 2011) arising from Reduced Employee Benefits (September impacts of Reduced Disclosure Requirements 2011), to incorporate reduced Disclosure Requirements disclosure requirements into the (RDRs) and has not decided if Standard for entities applying Tier RDRs will be implemented in 2 requirements in preparing the Victorian public sector. general purpose financial statements.

2011-13 Amendments to This Standard aims to improve 1 July 2012 No impact on the Australian Accounting the AASB 1049 Whole of Corporation’s reporting. Standard – Improvements Government and General to AASB 1049 Government Sector Financial Reporting at the operational level. The main amendments clarify a number of requirements in AASB 1049, including amendments to allow disclosure of other measures of key fiscal aggregates as long as they are clearly distinguished from the key fiscal aggregates and do not detract from the the information required by AASB 1049.

2012-1 Amendments to This Standard details reduced 1 July 2013 No impact on the Australian Accounting disclosure requirements in a Corporation’s reporting. Standards - Fair Value number of Australian Accounting Measurement - Reduced Standards as a consequence of Disclosure Requirements the issuance of AASB 13 Fair [AASB 3, AASB 7, AASB 13, Value Measurement. AASB 140 & AASB 141]

VicRoads Annual Report 2011-2012 70

Note 2Note 2 Income from transactions

201220122012 201120112011 $$$’’’000000000 $$$’’’000000000

Other revenue External works 60,984 64,073 Transport Accident Commission premium collection commission 34,893 32,947 Victorian Government agency commission 4,828 4,114 Rental revenue 11,263 11,148 Recoveries 49,929 15,975 Interest 1,457 1,713 Total other revenue 163,354163,354163,354 129,970129,970129,970

Note 3Note 3 Expenses from transactions 201220122012 201120112011 $’000$’000$’000 $’000$’000$’000 Employee benefits Salaries and related on-costs 223,778 219,435 Leave entitlements 27,030 28,322 Total employee benefits 250,808250,808250,808 247,757247,757247,757

Supplies and services Payment to contractors 456,429 510,564 Management and operating 120,110 85,100 Plant hire 25,909 29,748 Bad and doubtful debts (108) (259) Services alterations 29,687 26,064 Total supplies and services 632,027632,027632,027 651,217651,217651,217

Depreciation Road pavements 366,536 362,009 Bridges 76,193 69,138 Traffic signal control systems 24,016 20,558 Plant and equipment 4,540 4,192 Intangible assets 7,481 7,979 Sound barriers 9,589 8,617 Buildings and leasehold improvements 1,333 1,265 Total depreciation 489,688489,688489,688 473,758473,758473,758

VicRoads Annual Report 2011-2012 71

Note 4Note 4 Other economic flows included in net result 201220122012 201120112011 $’000$’000$’000 $’000$’000$’000 Net gain/(loss) on non-financial assets Proceeds from disposal of surplus non-financial assets 34,028 14,620 Written-down value of disposed non-financial assets (24,066) (17,222) Assets register adjustments 7,005 14,516 Impairment of assets (391) (351) Total net gain on non-financial assets 16,57616,57616,576 11,56311,56311,563

Other gains/(losses) from other economic flows Gain/(loss) on revaluation of provision for employee benefits (8,731) 436 Loss on revaluation of foreign currency (4) (98) Total other gains/(losses) from other economic flows (8,735)(8,735)(8,735) 338338338 TOTAL OTHER ECONOMIC FLOWS INCLUDED IN NET RESULT 7,8417,8417,841 11,90111,90111,901

NoteNote 55Note CCashash and cash equivalents 201220122012 201120112011 $$$’$’’’000000 $$$’$’’’000000 Cash relating to operating activities Cash on hand 133 130 Cash at bank 3,555 4,335 Total cash relating to operating activities 3,6883,6883,688 4,4654,4654,465

CashCash and cash equivalent collections on behalf of the Victorian Government, government agencies and other entities Cash at bank 33,712 30,484 Fixed deposits 6,000 6,000 Total cash and cash equivalent collections on behalf of the Victorian Government, government agencies and other entities 39,71239,71239,712 36,48436,48436,484 TOTAL CASH AND CASH EQUIVALENTS 43,40043,40043,400 40,94940,94940,949

VicRoads Annual Report 2011-2012 72

Note 6Note 6 Receivables 201220122012 201120112011 $$$’$’’’000000 $$$’$’’’000000 Current receivables Contractual Debtors 16,790 27,724 Other receivables 17,296 18,965 Allowance for doubtful debts (538) (890) 33,54833,54833,548 45,79945,79945,799 StatutoryStatutoryStatutory Amounts owing from the Victorian Government 339,294 277,786 Goods and Services Tax input tax credit recoverable 11,894 12,497 351,188351,188351,188 290,283290,283290,283

Total current receivables 384,736384,736384,736 336,082336,082336,082 Non-current receivables Contractual Other receivables 7,427 - Property loans 162 173 Total non-current receivables 7,5897,5897,589 173173173 TOTAL RECEIVABLES 392,325392,325392,325 336,255336,255336,255

201220122012 201120112011 $$$’$’’’000000000000 $$$’$’’’000000000000 Movement in the allowance for doubtful debts Balance at beginning of the year (890) (1,430) Amounts written off during the year 244 281 Decrease in allowance recognised in profit or loss 108 259 Balance at the end of the year (538)(538)(538) (890)(890)(890)

Note 7Note 7 IInventoriesnventories 201220122012 201120112011 $$$’$’’’000000000000 $$$’$’’’000000000000 Current inventories Stockpile materials 1,009 964 Saleable items and consumable stores 456 335 TOTAL INVENTORIES 1,4651,4651,465 1,2991,2991,299

VicRoads Annual Report 2011-2012 73

Note 8Note 8 Properties held for sale 201220122012 201120112011 $$$’$’’’000000000000 $$$’$’’’000000000000 Carrying amount At independent valuation 14,922 23,473 TOTAL PROPERTIES HELD FOR SALE 14,922 23,473

201220122012 201120112011 $$$’$’’’000000000000 $$$’$’’’000000000000 Reconciliation Carrying amount at the beginning of the year 23,473 7,750 Transfers from land 12,968 22,854 Transfers from buildings 401 619 Disposals (21,920) (7,750) Carrying amount at the end of the year 14,922 23,473

VicRoads Annual Report 2011-2012 74

Note 9Note 9 Buildings and leasehold improvements 201220122012 201120112011 $’000$’000$’000 $’000$’000$’000 Carrying amount Buildings operational At independent valuation 10,784 10,964 Accumulated depreciation (539) (274) 10,24510,245 10,245 10,69010,69010,690 Buildings on land acquired for future public roads At independent valuation 20,548 18,979 At cost 2,077 1,980 Accumulated depreciation (1,072) (520) 21,55321,55321,553 20,43920,43920,439

Leasehold improvements At independent valuation 20,371 20,371 Accumulated depreciation (975) (466) 19,39619,39619,396 19,90519,90519,905 TOTAL BUILDINGS AND LEASEHOLD IMPROVEMENTS 51,19451,19451,194 51,03451,03451,034

Buildings Buildings on Leasehold TotalTotalTotal operational land acquired improvements for future public roadsroadsroads 201220122012 201220122012 201220122012 201220122012 $’000$’000$’000 $’000$’000$’000 $’000$’000$’000 $’000$’000$’000 Reconciliation Carrying amount at the beginning of the year 10,690 20,439 19,905 51,034 Acquisitions - 2,077 - 2,077 Book value of State assets sold and proceeds returned to the Victorian Government (182) - - (182) Transfers from/ (to) property held for sale 10 (411) - (401) Depreciation expense (273) (552) (509) (1,334) Carrying amount at the end of the year 10,245 21,553 19,396 51,194

Buildings Buildings on Leasehold TotalTotalTotal operational land acquired improvements for future public roadsroadsroads 201120112011 201120112011 201120112011 201120112011 $’000$’000$’000 $’000$’000$’000 $’000$’000$’000 $’000$’000$’000 Reconciliation Carrying amount at the beginning of the year 12,140 19,961 18,470 50,571 Acquisitions - 1,980 - 1,980 Disposals - (295) - (295) Assets transferred to Victorian Government agencies as contributed capital (1,161) - - (1,161) Buildings incorporated into declared roads - (41) - (41) Transfers to property held for sale (10) (609) - (619) Asset register adjustments - (37) 1,901 1,864 Depreciation expense (279) (520) (466) (1,265) Carrying amount at the end of the year 10,690 20,439 19,905 51,034

VicRoads Annual Report 2011-2012 75

Note 10Note 10 Plant and equipment

201220122012 201120112011 $$$’$’’’000000000000 $$$’$’’’000000000000 Carrying amount Computers and other technical equipment At fair value 23,879 23,780 Accumulated depreciation (12,220) (13,271) Accumulated impairment (1,339) (1,567) 10,320 8,942 Office furniture and fittings At fair value 33,749 28,139 Accumulated depreciation (20,105) (18,163) 13,644 9,976 TOTAL PLANT AND EQUIPMENT 23,964 18,918

201220122012 201120112011 $$$’$’’’000000000000 $$$’$’’’000000000000 Reconciliation Carrying amount at the beginning of the year 18,918 21,325 Acquisitions 10,046 2,614 Transfers to intangible assets - (417) Disposals (69) (61) Depreciation expense (4,540) (4,192) Impairment expense (391) (351) Carrying amount at the end of the year 23,964 18,918

VicRoads Annual Report 2011-2012 76

Note 11Note 11 LandLandLand

201220122012 201120112011 $’000$’000$’000$’000$’000$’000 Carrying amount Land for operations At independent valuation 26,386 26,561 26,38626,38626,386 26,56126,56126,561 Land acquired for future public roads At independent valuation 1,194,415 1,169,037 At cost 28,288 52,661 1,222,7031,222,7031,222,703 1,221,6981,221,6981,221,698 Land under declared roads At independent valuation 15,843,814 15,839,306 At fair value 14,021 5,385 15,857,835 15,844,691 Land in commercial use At independent valuation 27,456 27,456 27,45627,45627,456 27,45627,45627,456 TOTAL LAND 17,134,380 17,120,406

VicRoads Annual Report 2011-2012 77

Note 11Note 11 Land (continued)

Land for Land acquired Land under Land in TotalTotalTotal operations for future declared commercial public roads roadsroadsroads useuseuse 201220122012 201220122012 201220122012 201220122012 201220122012 $’000$’000$’000$’000$’000$’000 $’000$’000$’000 $’000$’000$’000 $’000$’000$’000 Reconciliation Carrying amount at the beginning of the year 26,561 1,221,698 15,844,691 27,456 17,120,406 Acquisitions - 28,288 - - 28,288 Assets transferred from other entities 4 4 Book value of State assets sold and proceeds returned to the Victorian Government (225) - - - (225) Asset register adjustments - (248) - - (248) Transfers from/(to) land under declared roads - (14,021) 14,021 - - Transfers from/(to) properties held for sale 50 (13,018) - - (12,968) Assets transferred to Victorian Government agencies as contributed capital - - (877) - (877) Carrying amount at the end of the 26,386 1,222,703 15,857,835 27,456 17,134,380 yearyearyear

Land for Land acquired Land under Land in TotalTotalTotal operations for future declared commercial public roads roadsroadsroads useuseuse 201120112011 201120112011 201120112011 201120112011 201120112011 $’000$’000$’000 $’000$’000$’000$’000$’000$’000 $’000$’000$’000 $’000$’000$’000 Reconciliation Carrying amount at the beginning of the year 35,473 1,201,308 15,839,306 27,456 17,103,543 Acquisitions - 52,661 - - 52,661 Assets given free of charge - (804) - - (804) Book value of State assets sold and proceeds returned to the Victorian Government (8,430) - - - (8,430) Disposals - (1,650) - - (1,650) Asset register adjustments (98) - - (98) Transfers from/(to) land under declared roads - (5,385) 5,385 - - Transfers to property held for sale (50) (22,804) - - (22,854) Assets transferred to Victorian Government agencies as contributed capital - (1,600) - - (1,600) Revaluation increment /(decrement) (432) 70 - - (362) Carrying amount at the end of the 26,561 1,221,698 15,844,691 27,456 17,120,406 yearyearyear

VicRoads Annual Report 2011-2012 78

Note 12Note 12 Infrastructure assets

201220122012201120112011 $$$’$’’’000000000000$$$’ $’’’000000000000 Carrying amount Road pavement At indexed valuation 23,569,375 - At independent valuation - 21,263,170 At cost 828,002 646,480 Accumulated depreciation (11,357,226) (9,892,184) Accumulated impairment (120,583) (46,096) 12,919,568 11,971,37011,971,37011,971,370 Earthworks At indexed valuation 7,073,398 - At independent valuation - 6,374,664 At cost 206,042 169,645 Accumulated impairment - (1,687) 7,279,4407,279,4407,279,440 6,542,6226,542,6226,542,622 Sound barriers At indexed valuation 280,338 - At independent valuation - 253,241 At cost 78,274 39,936 Accumulated depreciation (92,136) (73,755) 266,476266,476266,476 219,422219,422219,422 BridgesBridgesBridges At indexed valuation 6,569,827 - At independent valuation - 5,925,781 At cost 1,103,592 842,642 Accumulated depreciation (2,588,720) (2,259,616) Accumulated impairment (1,703) (1,325) 5,082,9965,082,9965,082,996 4,507,4824,507,4824,507,482 Traffic signal control systems At indexed valuation 627,271 - At independent valuation - 568,911 At cost 242,199 207,064 Accumulated depreciation (505,913) (438,631) 363,557363,557363,557 337,344337,344337,344 Work in progress At cost 1,528,260 1,188,409 1,528,2601,528,2601,528,260 1,188,4091,188,4091,188,409 TOTAL INFRASTRUCTURE ASSETS 27,440,297 24,766,649

VicRoads Annual Report 2011-2012 79

Note 12Note 12 Infrastructure assets (continued)

Road Earthworks Sound BridgesBridgesBridgesTraffic Work in TotalTotalTotal pavements barriersbarriersbarriers signal progressprogressprogress control systemssystemssystems 201220122012201220122012 201220122012 201220122012 201220122012 201220122012 201220122012 $’000$’000$’000$’000$’000$’000 $’000$’000$’000 $’000$’000$’000 $’000$’000$’000 $’000$’000$’000 $’000$’000$’000 Reconciliation Carrying amount at the beginning of the year 11,971,370 6,542,622 219,422 4,507,482 337,344 1,188,409 24,766,649 Assets transferred to other entities (16,687) (10,574) - (55) (197) - (27,513) Assets transferred from other entities 33,955 22,482 - 61,560 - - 117,997 Disposals - - - (723) (403) (951) (2,077) Depreciation expense (366,534) - (9,589) (76,193) (24,016) - (476,332) Construction expenditure - - - 6,763 2,405 864,466 873,634 Asset register adjustments 1,027 755 - 5,235 236 - 7,253 Capitalised work in progress 163,266 26,564 34,457 169,035 26,982 (420,304) - Assets transferred to Victorian Government agencies as contributed capital - - - - - (103,360) (103,360) Assets transferred from Victorian Government agencies as contributed capital - - - - 1,514 - 1,514 Impairment (74,487) 1,687 - (378) - - (73,178) Revaluation increment 1,207,658 695,904 22,186 410,270 19,692 - 2,355,710 Carrying amount at the end of the 12,919,568 7,279,4407,279,4407,279,440 266,476266,476266,476 5,082,9965,082,9965,082,996 363,557363,557363,557 1,528,2601,528,2601,528,260 27,440,297 yearyearyear

Road Earthworks Sound BridgesBridgesBridgesTraffic Work in TotalTotalTotal pavements barriersbarriersbarriers signal progressprogressprogress control systemssystemssystems 201120112011201120112011 201120112011 201120112011 201120112011 201120112011 201120112011 $’000$’000$’000$’000$’000$’000 $’000$’000$’000 $’000$’000$’000 $’000$’000$’000 $’000$’000$’000 $’000$’000$’000 Reconciliation Carrying amount at the beginning of the year 11,905,439 6,479,187 223,724 3,853,345 185,489 1,658,184 24,305,368 Assets transferred to other entities (8,111) (2,630) - (13) (685) - (11,439) Assets received free of charge - - - - 105 - 105 Disposals (765) (960) - (5,260) (449) (35) (7,469) Depreciation expense (362,009) - (8,617) (69,138) (20,558) - (460,322) Construction expenditure - - - - 3,115 973,649 976,764 Asset register adjustments 2,351 756 - 8,337 1,306 - 12,750 Capitalised work in progress 480,561 67,956 4,315 721,536 169,021 (1,443,389) - Impairment (46,096) (1,687) - (1,325) - - (49,108) Carrying amount at the end of the 11,971,37011,971,37011,971,370 6,542,6226,542,6226,542,622 219,422219,422219,422 4,507,4824,507,4824,507,482 337,344337,344337,344 1,188,4091,188,4091,188,409 24,766,649 yearyearyear

VicRoads Annual Report 2011-2012 80

Note 13Note 13 Intangible assets

201220122012 201120112011 $$$’$’’’000000000000 $$$’$’’’000000000000 Carrying amount SoftwareSoftwareSoftware At cost 84,022 79,527 Accumulated amortisation (57,868) (50,387) 26,154 29,140 Water rights At fair value 879 879 TOTAL INTANGIBLE ASSETS 27,033 30,019

201220122012 201120112011 $$$’$’’’000000000000 $$$’$’’’000000000000 Reconciliation Carrying amount at the beginning of the year 30,019 26,160 Acquisitions 4,495 11,421 Transfers from tangible assets - 417 Amortisation expense (7,481) (7,979) Carrying amount at the end of the year 27,03327,03327,033 30,01930,01930,019

Note 14Note 14 PayablesPayablesPayables

201220122012 201120112011 $$$’$’’’000000000000 $$$’$’’’000000000000 CurrentCurrentCurrent Contractual Creditors and accruals 184,860 222,090 Victorian Government, government agencies and other entities 24,642 19,150 209,502209,502209,502 241,240241,240241,240 StatutoryStatutoryStatutory Victorian Government, government agencies and other entities 15,412 11,133 15,41215,41215,412 11,13311,13311,133 Total current payables 224,914224,914224,914 252,373252,373252,373

Aggregate carrying amount of payables Current 224,914 252,373 TOTAL PAYABLES 224,914224,914224,914 252,373252,373252,373

VicRoads Annual Report 2011-2012 81

Note 15Note 15 ProvisionsProvisionsProvisions 201220122012 201120112011 $$$’$’’’000000000000 $$$’$’’’000000000000 CurrentCurrentCurrent Employee benefits annual leave Unconditional and expected to be settled within 12 months 18,904 18,415 Employee benefits long service leave Unconditional and expected to be settled within 12 months 5,428 4,908 Unconditional and expected to be settled after 12 months 51,955 44,527 Provisions related to employee benefit on-costs Unconditional and expected to be settled within 12 months 3,678 3,506 Unconditional and expected to be settled after 12 months 8,065 6,862 Performance and other entitlements 2,489 2,205 Contractor retentions and provisions 15,56915,56915,569 17,12417,12417,124 Property acquisition liabilities 37,13137,13137,131 45,72345,72345,723 Compensation payable to property owners 4,7614,7614,761 4,4664,4664,466 Total current provisions 147,980147,980147,980 147,735147,735147,735

Non-current Employee benefits long service leave 7,2187,2187,218 5,8575,8575,857 Provisions related to employee benefit on-costs 1,1201,1201,120 903903903 Contractor retentions and provisions 2,1492,1492,149 3,9763,9763,976 Property acquisition liabilities 345345345 878878878 Compensation payable to property owners --- 666 Total non-current provisions 10,83210,83210,832 11,62011,62011,620

Aggregate carrying amount of provisions Current 147,980 147,735 Non-current 10,832 11,620 TOTAL PROVISIONS 158,812158,812158,812 159,355159,355159,355

201220122012 201120112011 $$$’$’’’000000000000 $$$’$’’’000000000000 Employee benefits and related on-costs 98,857 87,183 Contractor retentions and provisions 17,718 21,100 Property acquisition liabilities 37,476 46,601 Compensation payable to property owners 4,761 4,472 TOTAL PROVISIONS 158,812158,812158,812 159,355159,355159,355

VicRoads Annual Report 2011-2012 82

Note 15Note 15 Provisions (continued)

Employee benefits and related on-costs 201220122012 201120112011 $$$’$’’’000000000000 $$$’$’’’000000000000 Current employee benefits Annual leave entitlements 18,904 18,415 Long service leave entitlements 57,383 49,435 Non-current employee benefits Long service leave entitlements 7,218 5,857 Total employee benefits 83,50583,50583,505 73,70773,70773,707 Current on-costs 11,743 10,368 Non-current on-costs 1,120 903 Performance and other entitlements 2,489 2,205 Total on-costs 15,35215,35215,352 13,47613,47613,476 TOTAL EMPLOYEE BENEFITS AND RELATED ON-COSTS 98,85798,85798,857 87,18387,18387,183

VicRoads Annual Report 2011-2012 83

Note 15Note 15 Provisions (continued)

EEmployeemployee Contractor Property Compensation TotalTotalTotal benefitsbenefitsbenefits retentions and acquisition payable to provisionsprovisionsprovisions provisionprovisionprovision property owners

201220122012201220122012 201220122012 201220122012 201220122012 $’000$’000$’000$’000$’000$’000 $’000$’000$’000 $’000$’000$’000 $’000$’000$’000 ReconciliationReconciliation Carrying amount at the beginning of the year 87,182 21,100 46,601 4,472 159,355 Additional provisions recognised 30,362 12,790 11,888 4,744 59,784 Payments or other sacrifices of economic (27,112) (16,739) (37,489) (4,455) (85,795) benefits Additions/(reductions) from re-measurement - 16,737 or settlement without cost (306) 567 16,476 Increases from economic flows 8,731 - - - 8,731 Carrying amount at the end of the year 98,85798,85798,857 17,71817,71817,718 37,47637,47637,476 4,7614,7614,761 158,812158,812158,812

Employee Contractor Property Compensation TotalTotalTotal benefitsbenefitsbenefits retentions and acquisition payable to provisionsprovisionsprovisions provisionprovisionprovision property owners 201120112011201120112011 201120112011 201120112011201120112011 $’000$’000$’000$’000$’000$’000 $’000$’000$’000 $’000$’000$’000 $’000$’000$’000 Reconciliation Carrying amount at the beginning of the year 82,582 29,472 38,528 9,245 159,827 Additional provisions recognised 28,786 17,572 30,852 4,472 81,682 Provision liability assumed from other government agencies 29 - - - 29 Payments or other sacrifices of economic benefits (24,417) (18,804) (23,524) (9,245) (75,990) Additions/reductions from re-measurement or settlement without cost 639 (7,140) 745 - (5,756) Decreases from economic flows (437) - - - (437) Carrying amount at the end of the year 87,18287,18287,182 21,10021,10021,100 46,60146,60146,601 4,4724,4724,472 159,355159,355159,355

VicRoads Annual Report 2011-2012 84

NNoteote 16Note 16 FinancialFinancial instruments

Categorisation of financial instruments 201220122012201120112011 NotesNotesNotes $'000 $'000 Financial assets Cash assets 5 3,688 4,465 Loans and receivables (at amortised cost) 6 41,137 45,972 44,82544,82544,825 50,43750,43750,437

Financial liabilities Payables 14 209,502209,502209,502 241,240241,240241,240

VicRoads Annual Report 2011-2012 85

NoteNootete 1616Note FiFinancialnancial instruments (continued(continued)

Credit riskCredit risk The credit risk relating to financial assets is the carrying amount of such assets, net of the allowance for doubtful debts. The Corporation does not have any significant credit risk exposure to any single counter party or any groups of counter parties having similar characteristics. The credit risk relating to cash assets is limited as the counter party is a bank with high credit-ratings assigned by international credit-rating agencies. Financial assets that are either past due or impaired The Corporation holds mortgages over property relating to interest free loans and encumbrances against properties relating to compensation payments recoverable but does not hold any collateral as security nor credit enhancements relating to any other financial assets. As at the reporting date, other than receivables, there is no evidence to indicate that any other financial assets were impaired. There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and these assets are stated at the carrying amounts as indicated.

Aging analysis of financial assets

Past due but not impaired Impaired Carrying Not due or Less than 1 3-12 financial amountamountamount impairedimpairedimpaired monthmonthmonth1-3 months monthsmonthsmonths 1-5 years1-5 years assetsassetsassets 201220122012201220122012 201220122012 201220122012 201220122012 201220122012 201220122012 $’000$’000$’000$’000$’000$’000 $’000$’000$’000 $’000$’000$’000 $’000$’000$’000 $’000$’000$’000 $’000$’000$’000 Receivables Debtors 16,738 12,112 1,878 1,749 398 601 538 Accrued revenue 17,296 17,296 - - - - - Compensation payments recoverable 7,427 7,427 - - - - - Operating lease receivables 53 53 - - - - - Interest free loans 162 162 - - - - - TotalTotalTotal 41,67641,67641,676 37,05037,05037,050 1,8781,8781,878 1,7491,7491,749 398398398 601601601 538538538

Past due but not impaired Impaired Carrying Not due or Less than 1 3-12 financial amountamountamount impairedimpairedimpaired monthmonthmonth1-3 months monthsmonthsmonths 1-5 years1-5 years assetsassetsassets 201120112011201120112011 201120112011 201120112011 201120112011 201120112011 201120112011 $’000$’000$’000$’000$’000$’000 $’000$’000$’000 $’000$’000$’000 $’000$’000$’000 $’000$’000$’000 $’000$’000$’000 Receivables Debtors 27,560 23,369 1,428 787 973 1,003 890 Accrued revenue 18,965 18,965 - - - - - Operating lease receivables 164 164 - - - - - Interest free loans 173 173 - - - - - TotalTotalTotal 46,86246,86246,862 42,67142,67142,671 1,4281,4281,428 787787787 973973973 1,0031,0031,003 890890890

VicRoads Annual Report 2011-2012 86

NoteNootete 1616Note FiFinancialFinanciananciaFinancial instruments (continued(continued)

Liquidity risk The Corporation operates under the Victorian Government fair payments policy of settling financial obligations within 30 days from the date of resolution. Liquidity risk is managed by monitoring future cash flows and planning to ensure adequate holding of cash assets to fund due and payable financial liabilities. The Corporation's exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of risk.

Maturity analysis of financial liabilities

Maturity dates Carrying Nominal Less than 1 amountamountamount amountamountamount monthmonthmonth1-3 months 3-12 months 1-5 years1-5 years 201220122012 201220122012 201220122012 201220122012 201220122012 201220122012 $’000$’000$’000$’000$’000$’000 $’000$’000$’000 $’000$’000$’000 $’000$’000$’000 $’000$’000$’000 PayablesPayablesPayables Amounts payable to other government agencies 24,642 24,642 24,642 - - - Creditors & accruals 184,860 184,860 184,729 86 44 1

Maturity dates Carrying Nominal Less than 1 amountamountamount amountamountamount monthmonthmonth1-3 months 3-12 months 1-5 years1-5 years 201120112011201120112011 201120112011 201120112011 201120112011 201120112011 $’000$’000$’000$’000$’000$’000 $’000$’000$’000 $’000$’000$’000 $’000$’000$’000 $’000$’000$’000 PayablesPayablesPayables Amounts payable to other government agencies 19,150 19,150 19,150 - - - Creditors & accruals 222,090 222,090 221,811 229 46 4

VicRoads Annual Report 2011-2012 87

Note 16Note 16 Financial instruments (continued)

Interest rate exposure

Weighted Interest rate exposure average Carrying effective amount Fixed interest Variable Non-interest interest rate rate interest rate bearing 220120122012 201220122012 201220122012 201220122012 201220122012 %%%$'000$'000$'000 $'000$'000$'000 $'000$'000$'000 $'000$'000$'000 Cash and cash equivalents Cash at bank 3.42 3,555 - 3,555 - Cash on hand - 133 - - 133 Receivables Debtors - 16,738 - - 16,738 Accrued revenue - 17,296 - - 17,296 Compensation payments recoverable - 7,427 - - 7,427 Operating lease receivables - 53 - - 53 Interest free loans - 162 - - 162 TotalTotalTotal 45,36445,36445,364 --- 3,5553,5553,555 41,80941,80941,809

PayablesPayablesPayables Creditors & accruals - 184,860 - - 184,860 Leased assets - - - - - Victorian Government and government agencies - 24,642 - - 24,642 TotalTotalTotal 209,502209,502209,502 ------209,502209,502209,502

Weighted Interest rate exposure average Carrying effective amount FFixedixed interest Variable Non-interest interest rate rate interest rate bearing 220110112011 201120112011 201120112011 201120112011 201120112011 %%%$'000$'000$'000 $'000$'000$'000 $'000$'000$'000 $'000$'000$'000 Cash and cash equivalents Cash at bank 4.65 4,335 - 4,335 - Cash on hand - 130 - - 130 Receivables Debtors - 27,560 - - 27,560 Accrued revenue - 18,965 - - 18,965 Operating lease receivables - 164 - - 164 Interest free loans - 173 - - 173 TotalTotalTotal 51,32751,32751,327 --- 4,3354,3354,335 46,99246,99246,992

PayablesPayablesPayables Creditors & accruals - 222,090 - - 222,090 Victorian Government and government agencies - 19,150 - - 19,150 TotalTotalTotal 241,240241,240241,240 ------241,240241,240241,240

VicRoads Annual Report 2011-2012 88

NoteNootete 1616Note FiFinancialnancialFinancial instruments (continued(continued)

Market risk The Corporation's exposure to market risks is primarily interest rate risk, with only minimal risk exposure to foreign currency. Objectives, policies and processes used to manage each of these risks are disclosed in the paragraphs below. Interest rate risk Exposure to interest rate risk is insignificant and may arise primarily through the Corporation's cash accounts. Minimisation of risk is achieved by the Corporation participating as a party to the Whole of Government banking contract which is administered by the Victorian Department of Treasury and Finance. The Corporation's exposure to interest rate risk is disclosed in the table below. Foreign currency risk The Corporation is exposed to minimal foreign currency risk relating to a foreign currency bank account. The Corporation manages its risk through continuous monitoring of movements in the relevant exchange rates and ensures availability of funds through rigorous cash flow planning and monitoring. Based on past and current assessment of economic outlook, it is deemed unnecessary for the Corporation to enter into any hedging arrangements to manage the risk. The Corporation's exposure to foreign currency risk is disclosed in the table below. Sensitivity disclosdisclosureure analysis Taking into account past performance, future expectations, economic forecasts and management's knowledge and experience of financial markets, the Corporation considers the following movements are 'reasonably possible' during the next 12 months: • a parallel shift of +2% and -2% in market interest rates (Australian Dollar) from year-end rates of 3.42% • proportional exchange rate movement of -5% (depreciation of the Australian Dollar) and +15% (appreciation of the Australian Dollar) against the foreign currency rate. The following table discloses the impact on net operating result and equity for each category of financial instrument held by the Corporation at year-end.

ForeignForeign exchange risk Interest rate risk -5%-5%-5% +15%+15%+15% -2%-2%-2% +2%+2%+2% CarryingCarrying Net Net Net Net amount resultresultresultEquityEquityEquity resultresultresultEquityEquityEquity resultresultresultEquityEquityEquity resultresultresultEquityEquityEquity 201220122012201220122012 201220122012 201220122012 201220122012 201220122012 201220122012 201220122012 201220122012 NNotesotesNotes $'000$'000$'000 $'000$'000$'000 $'000$'000$'000 $'000$'000$'000 $'000$'000$'000 $'000$'000$'000 $'000$'000$'000 $'000$'000$'000 $'000$'000$'000 FFinancialinancial assets Cash 5 3,688 9 9 (28) (28) (74) (74) 74 74 Receivables 6 41,137 ------Financial liabilities Payables 14 209,502 ------Total increase/(decrease) 9 9 (28) (28) (74) (74) 74 74

ForeignForeign exchange risk Interest rate risk -5%-5%-5% +15%+15%+15% -2%-2%-2% +2%+2%+2% CCarryingarrying NetNet Net Net Net amount resultresultresultEquityEquityEquity resultresultresultEquityEquityEquity resultresultresultEquityEquityEquity resultresultresultEquityEquityEquity 201120112011201120112011 201120112011 201120112011 201120112011 201120112011 201120112011 201120112011 201120112011 NotesNotesNotes $'000$'000$'000 $'000$'000$'000 $'000$'000$'000 $'000$'000$'000 $'000$'000$'000 $'000$'000$'000 $'000$'000$'000 $'000$'000$'000 $'000$'000$'000 FFinancialinancial assets Cash 5 4,465 7 7 (22) (22) (3) (3) 3 3 Receivables 6 45,972 ------Financial liabilities Payables 14 241,240 ------Total increase/(decrease) 7 7 (22) (22) (3) (3) 3 3

VicRoads Annual Report 2011-2012 89

Note 17Note 17 Responsible person's disclosure and remuneration

Responsible persons The names of persons who were responsible persons of the Corporation during the year are as follows:

Responsible Minister The Hon Terry Mulder, Minister for Roads - 1 July 2011 to 30 June 2012

Amounts relating to Ministers are reported in the financial statements of the Department of Premier and Cabinet

Accountable Officer Mr G Liddle, Chief Executive - 1 July 2011 to 30 June 2012

RRemunerationemuneration of Accountable Officer 201220122012 201120112011 Total remuneration received or receivable during the year by the Accountable Officer from the Corporation

$370,000 to $380,000 $330,000 to $340,000 Mr G Liddle

Total remuneration includes base remuneration, and bonus payments.

VicRoads Annual Report 2011-2012 90

NoteNootete 181818 ExecutiveExecutive remuneration

The number of executives (other than the Minister and the Accountable Officer) and their total remuneration received or receivable is detailed in the first two columns of the table below in relevant income bands. The base remuneration of executives is shown in the third and forth columns. Base remuneration includes salary, superannuation, and reportable fringe benefits. Lump sum performance bonus, leave entitlements and termination payments are excluded from the base remuneration. Total remuneration includes all benefits. The number of executives and the remuneration received or receivable during the reporting period is affected by the number and timing of executives retiring or resigning, the employment of replacement executives, and the payment of lump sum leave entitlements.

Remuneration Total Total BaseBaseBase BaseBaseBase 201220122012 201120112011 201220122012 201120112011

$100,000 - $109,999 - - 1 1 $110,000 - $119,999 - - 1 - $120,000 - $129,999 - 1 1 2 $130,000 - $139,999 1 1 1 3 $140,000 - $149,999 1 2 4 5 $150,000 - $159,999 3 8 3 8 $160,000 - $169,999 5 9 9 16 $170,000 - $179,999 8 10 21 16 $180,000 - $189,999 18 17 8 10 $190,000 - $199,999 8 6 3 3 $200,000 - $209,999 3 5 2 - $210,000 - $219,999 6 3 1 1 $220,000 - $229,999 - 1 - 2 $230,000 - $239,999 1 3 1 - $240,000 - $249,999 2 1 3 7 $250,000 - $259,999 - 1 4 - $260,000 - $269,999 3 4 - 1 $270,000 - $279,999 4 1 1 - $280,000 - $289,999 - 2 1 1 $300,000 - $309,999 2 1 - - Total number or executives 656565 767676 656565 767676 Total annualised employee equivalent 64.664.664.6 75.775.775.7 64.664.664.6 75.775.775.7 TOTALTOTALTOTAL $12,984,872 $14,665,533 $11,902,153 $13,487,935

Annual remuneration BaseBaseBase BaseBaseBase 201220122012 201120112011 Total number of executives with an annual base remuneration above $100,000 at the end of the year 656565 767676

VicRoads Annual Report 2011-2012 91

Note 19Note 19 Auditor’s remuneration

Remuneration paid or payable to the Victorian Auditor-General’s Office for audit of the Corporation’s financial statements

201220122012201120112011 $’000$’000$’000$’000$’000$’000 Paid as at 30 June 169 207 Due and payable 198 156 TTOTALOTAL AUDITOR'S REMUNERATION 367 363363363

Note 20Note 20 ContingentContingent assets and contingent liabilities

201220122012201120112011 $’000$’000$’000$’000$’000$’000 Contingent assets Recovery of legal expenses 6,000 6,000

Insurance claims pending for damage caused to 13,653 13,401 Corporation assets

Insurance claims include estimated insurance recoveries associated with completed restoration works to 30 June 2012. These restoration works are ongoing and further insurance claims will be made upon incurring related expenditure.

Total contingent assets 19,653 19,401

Contingent liabilities Contract claims against the Corporation for variations to contracts. In a number of cases, 5,081 2,951 the Corporation is contesting the associated claims. Legal claims brought against the Corporation by persons and entities who assert that they 162,820 196,914 are entitled to be compensated for a loss (includes property acquisition related claims). In a number of cases, the Corporation is contesting the associated claims.

Total contingent liabilities 167,901 199,865 NET CONTINGENT LIABILITIES 148,248 180,464180,464180,464

VicRoads Annual Report 2011-2012 92

Note 21Note 21 Commitments for expenditure

Capital expenditure commitments Commitments for the construction of infrastructure assets and the acquisition of plant and equipment contracted at balance date but not recognised as liabilities in the balance sheet are set out below.

201220122012 201120112011 $’000$’000$’000$’000$’000$’000 Within one year 663,675 749,019 Later than one year but not later than five years 327,399 461,257 Later than five years - 5,290 TOTAL CAPITAL EXPENDITURE COMMITMENTS EXCLUSIVE OF GST 991,074991,074991,074 1,215,5661,215,5661,215,566 GST Amount 99,107 121,557 TOTAL CAPITAL EXPENDITURE COMMITMENTS INCLUSIVE OF GST 1,090,1821,090,1821,090,182 1,337,1231,337,1231,337,123

Other expenditure commitments Other commitments for the acquisition of goods and services contracted at balance date but not recognised as liabilities in the balance sheet are set out below. 201220122012 201120112011 $’000$’000$’000$’000$’000$’000 Within one year 59,166 50,974 Later than one year but not later than five years 72,514 24,788 Later than five years - 830 TOTAL OTHER EXPENDITURE COMMITMENTS EXCLUSIVE OF GST 131,680131,680131,680 76,59276,59276,592 GST Amount 13,168 7,659 TOTAL OTHER COMMITMENTS INCLUSIVE OF GST 144,848144,848144,848 84,25184,25184,251

TOTAL EXPENDITURE COMMITMENTS INCLUSIVE OF GST 1,235,0291,235,0291,235,029 1,421,3741,421,3741,421,374

VicRoads Annual Report 2011-2012 93

Note 22Note 22 LLeaseseasesLeases

Corporation as lessee - Operating leases Operating leases relate primarily to operational properties with lease terms of between 3 and 47 years. The Corporation does not have an option to purchase the leased asset at the expiry of the lease period.

201220122012201120112011 $$$’$’’’000000000000$$$’ $’’’000000000000 Non-cancellable operating leases Not later than one year 17,752 18,434 Later than one year but not later than five years 36,391 23,394 Later than five years 56,084 53,436 TOTAL LEASE COMMITMENTS EXCLUSIVE OF GST 110,227110,227110,227 95,26495,26495,264 GST Amount 11,023 9,526 TOTAL LEASE COMMITMENTS INCLUSIVE OF GST 121,250121,250121,250 104,791104,791104,791

Corporation as lessor - Operating leases ??????????????????Operating leases relate primarily to properties acquired for roadworks with lease terms of between 1 and 35 years. The lessees do not have an option to purchase the leased assets at the expiry of the lease period.

201220122012201120112011 $$$’$’’’000000000000$$$’ $’’’000000000000 Non-cancellable operating lease receivables Not later than one year 7,696 4,632 Later than one year but not later than five years 23,888 7,782 Later than five years 74,244 4,430 TOTAL LEASE RECEIVABLES 105,828105,828105,828 16,84416,84416,844

VicRoads Annual Report 2011-2012 94

Note 23Note 23 SuperannuationSuperannuation contributions

Details of employee superannuation schemes and contributions made by the Corporation are set out below.

*Contributions *Contributions Contributions Contributions for the year for the year prepaidprepaidprepaid prepaidprepaidprepaid

201220122012 201120112011 201220122012 201120112011 $$$’$’’’000000000000 $$$’$’’’000000000000 $$$’$’’’000000000000 $$$’$’’’000000000000 Defined benefit plans Revised and new schemes 7,704 7,902 - (9) Transport Superannuation Scheme 3,055 2,903 - (2) Defined contribution plans VicSuper Scheme 17,734 17,016 - (66) Other 4,810 4,497 - (17) TOTALTOTALTOTAL 33,30333,30333,303 32,31832,31832,318 --- (94)(94)(94)

* Relates to contributions paid during the year. There were no contributions outstanding at 30 June 2012.

VicRoads Annual Report 2011-2012 95

Note 24Note 24 CCashash flow disclosures

ReconciliationReconciliation of net result for the period to net cash flows from operations

201220122012 201120112011 $’000$’000$’000$’000$’000$’000 Net result for the reporting period 499,464499,464499,464 224,887224,887224,887 Adjustments for non-cash revenue and expense items Non-cash movements Depreciation 489,688 473,758 Impairment of non-current assets 391 351 Assets given/(received) free of charge (90,487) 12,137 Net loss/(gain) on disposal of non-current assets (9,962) 2,560 Properties incorporated into roadworks - 41 Asset adjustments (7,005) (14,516)

Movements in assets and liabilities (Increase) decrease in receivables (59,646) (2,626) (Increase) decrease in prepayments (3,090) 3,179 Decrease (increase) in inventories (167) (107) Increase (decrease) in payables (27,459) 10,879 Increase (decrease) in provisions (543) (3,772) Increase (decrease) in prepaid revenue 10,203 81 Net cash flows from operating activities 801,387801,387801,387 706,852706,852706,852

VicRoads Annual Report 2011-2012 96

Note 25Note 25 Transactions administered on behalf of the Victorian Government

201220122012 201120112011 $’000$’000$’000 $’000$’000$’000 Administered income Collections on behalf of the Victorian Government Registration fees 994,722 912,900 Driver licences 67,935 52,482 Other fees and permits 42,399 37,669 Sale of operational property - 12,650 Total collections on behalf of the Victorian Government 1,105,056 1,015,701

City Link concession notes revenue Concession notes revenue 27,942 27,366 Total City Link concession notes revenue 27,942 27,366 TOTAL ADMINISTERED INCOME 1,132,998 1,043,067

Administered expense City Link concession notes deferred revenue revaluation increment 31,677 31,241 TOTAL ADMINISTERED EXPENSE 31,677 31,241

Administered liabilities Present value deferred City Link revenue 338,200 334,465 Unclaimed monies administered on behalf of the Victorian Government 8,205 6,705 TOTAL ADMINISTERED LIABILITIES 346,405346,405346,405 341,170341,170341,170

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 - ---

201220122012 201120112011 $$$’$’’’000000000000 $$$’$’’’000000000000 RReconciliationeconciliation of the present value of deferred City Link revenue Present value at beginning of the year 334,466 330,589 Concession notes revenue (27,942) (27,366) Deferred revenue revaluation increment 31,677 31,241 PPresentresent value at the end of the Year 338,201338,201338,201 334,466334,466334,466

VicRoads Annual Report 2011-2012 97

NoteNootete 252525 Transactions administered on behalf of the Victorian Government (continued)

City Link contingent assets

CityLink compensable enhancement claims The Melbourne City Link Concession Deed contains compensable enhancement provisions that enable the State to claim 50 per cent of additional revenue derived by CityLink Melbourne Limited (CML) as a result of certain events that particularly benefit CityLink, including changes to the adjoining road network. Compensable enhancement claims have previously been lodged in respect of works for improving traffic flows on the (between Lorimer and Montague Streets), and in the vicinity of the intersection of the Bulla Road and the . The claims were lodged on 20 May 2005 and 29 September 2006 respectively, and are still outstanding. Revenue sharing from the Monash City Link West Gate Upgrade On 25 July 2006, CityLink Melbourne Limited (CML), Transurban Infrastructure Management Ltd (TIML) and the Victorian Government entered into the M1 Corridor Redevelopment Deed. Under the terms of this deed: • The Victorian Government agreed to upgrade the Monash and West Gate Freeways, while CML agreed to upgrade the Southern Link section of City Link. • The Victorian Government will become entitled to 50 per cent of the additional City Link revenue created by the Monash City Link West Gate upgrade after CML recovers its construction and additional operating costs relating to works on the Southern Link. • 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.

VicRoads Annual Report 2011-2012 98

Note 26Note 26 Collections on behalf of government agencies

201220122012 201120112011 $$$’$’’’000000000000 $$$’$’’’000000000000

Collections on behalf of government agencies Transport Accident Charge and related stamp duty (Transport Accident Commission) 1,705,893 1,628,875 Stamp duty (State Revenue Office) 581,265 576,059 Motorboat registrations and licenses (Transport Safety Victoria) 23,349 20,840 Federal interstate registrations 42,553 41,872 TOTAL COLLECTIONS ON BEHALF OF GOVERNMENT AGENCIES 2,353,0602,353,0602,353,060 2,267,6462,267,6462,267,646

NoteNootete 272727 SuSubsequentbsequent event

In December 2011, the Victorian Government announced its intention to reduce the number of public servants in non-service delivery and back-office roles, with key frontline service delivery areas being exempted. The reduction in employees will be achieved through a combination of natural attrition, a freeze on recruitment, the lapsing of fixed term contracts and offering voluntary departure packages to encourage employees to end their employment on a voluntary basis. On 5 September 2012, the Corporation announced a process relating to voluntary departure packages for its employees. It is anticipated that the Corporation's voluntary departure process will be completed by 31 December 2013. The Corporation is not able to make a reliable estimate of the financial effect of the voluntary departure packages, as the number and classification of staff that will take up voluntary departure packages is not known. Accordingly the Corporation has not recognised expenditure or a termination benefits liability relating to the voluntary departure packages in the financial statements as the recognition criteria in AASB 119 Employee Benefits has not been met.

VicRoads Annual Report 2011-2012 99

VicRoads Annual Report 2011-2012 100

VicRoads Annual Report 2011-2012 101

VicRoads Annual Report 2011-2012 102

Disclosure index VicRoads’ annual report is prepared in accordance with relevant Victorian legislation, Financial Reporting Directions (FRDs) and standing directions (SD). This index identifies VicRoads’ compliance with statutory disclosure requirements in accordance with Financial Reporting Direction (FRD) 10. Page Charter and purpose FRD 22C Manner of establishment and the relevant Minister 36 FRD 22C Objectives, functions, powers and duties 3 FRD 22C Nature and range of services provided 37–38 Management and structure FRD 22C Organisational structure 39 Financial and other information FRD 10 Disclosure index 103 FRD 12A Disclosure of major contracts 43 FRD 22C Statement of workforce data 45 FRD 22C Application of employment and conduct principles 36 FRD 22C Summary of financial results for the year 46–52 FRD 22C Operational and budgetary objectives and performance against objectives 5–28 FRD 22C Significant changes in financial position during the year 49 FRD 22C Application and operation of the Freedom of Information Act 1982 41-42 FRD 22C Compliance with building and maintenance provisions of the Building Act 43 1993 FRD 22C Statement on compliance with competitive neutrality 43 FRD 22C Application and operation of the Whistleblowers Protections Act 2001 44 FRD 22C Details of consultancies over $10,000 44 FRD 22C Details of consultancies under $10,000 44 FRD 22C Statement on occupational health and safety 33-34 FRD 22C Summary of environmental performance 17-24 FRD 24C Reporting of Office-Based Environmental Data by Government Departments 22-24 FRD 25A Disclosure on the implementation of the Victorian Industry Participation 43 Policy FRD 29 Workforce data 45 SD 4.5.5 Risk management compliance attestation 38 SD 4.2 (g) General information requirements 2-4 Premier’s Whole of Government reporting on responsiveness to cultural diversity, 41 Circular women, young people and indigenous affairs 2006/01 Road Mgt Ministerial Directions given under section 22 of the Road Management Act 44 Act 2004 2004 Financial statements Financial statements required under Part 7 of the Financial Management Act 1994 SD4.2(a) Statement of changes in equity 56 SD4.2 (b) Comprehensive operating statement 54 SD 4.2 (b) Balance sheet 55 SD 4.2 (b) Statement of cash flows 57

VicRoads Annual Report 2011-2012 103

Other requirements under Standing Directions 4.2 SD4.2 (c) Compliance with Australian accounting standards and other authoritative 58 pronouncements SD 4.2 (c) Compliance with Ministerial Directions 58 SD 4.2 (d) Rounding of amounts 67 SD4.2 (c) Accountable officer’s declaration 100 Other disclosures in notes to the financial statements FRD 21B Responsible person and executive officer disclosures 90–91 FRD 102 Inventories 60–63, 73 FRD 103D Non-current physical assets 61–63, 75–80 FRD 104 Foreign currency 67 FRD 106 Impairment of assets 63 FRD 109 Intangible assets 81 FRD 110 Cash flow statements 57, 59 FRD118B Land under declared roads 62–63, 77 FRD 119 Contributions by owners 56, 59

VicRoads Annual Report 2011-2012 104

Published by: © Copyright State of Victoria 2012

Corporate Policy and Planning This publication is copyright. No part may be reproduced VicRoads any process except in accordance with the provisions of the Copyright Act 1968. 60 Denmark Street Kew Victoria 3101 International standards serial number (ISSN): 1832-0732 October 2012 VicRoads publication identification number: 02885 Also published at vicroads.vic.gov.au

Printed on Sun Offset, proudly made FSC certified by Sun Paper who also carry the ISO 14001 EMS accreditation. Made with elemental chlorine and acid free pulps. FSC Certified: Mixed Sources, ISO 14001 Environmental Management System. vicroads.vic.gov.au