Contents Contents
Letter to the Minister 2 Letter to the Minister 2 Chaiman and Chief Executive’s Foreword 3 Chaiman and Chief Executive’s Foreword 3 About State Transit 4 About State Transit 4 Network Maps 7 Network Maps 7 Performance Highlights 10 Performance Highlights 10
Year In Review 14 Year In Review 14 Customer Service 16 Customer Service 16 Environment 26 Environment 26 Safety 28 Safety 28 People 34 People 34 Competitive Business 42 Competitive Business 42 Western Sydney Buses 48 Western Sydney Buses 48
Financial Statements 50 Financial Statements 50 State Transit Authority State Transit Authority of New South Wales 52 of New South Wales 52 State Transit Authority Division 102 State Transit Western Sydney Buses Division 123 Authority Division 102 Western Sydney Buses Division 123 Appendices 144
Appendices 144 Index 179
Index 179 Annual Report 2008/09
State Transit Authority of New South Wales - Annual Report 2008/09 1 Letter to the Minister Chairman and Chief Executive’s Foreword
The Hon. David Campbell MP In 2008/09 State Transit continued to build for the future with major investments and planning designed to cater for Contents Minister for Transport increasing patronage and an expanding bus fleet. Minister for the Illawarra Letter to the Minister 2 Level 35 Our focus throughout the year centred on a number of projects that, when complete, will provide the foundations needed to support future growth across the business. Chaiman and Chief Governor Macquarie Tower 1 Farrer Place Executive’s Foreword 3 Work continued on the redevelopment of Leichhardt and Brookvale depots, with these state-of-the-art facilities nearing SYDNEY NSW 2000 About State Transit 4 completion. Network Maps 7 This major investment in infrastructure has created modern, purpose-built facilities for staff and additional bus parking Performance Highlights 10 31 October 2009 to cater for fleet growth. The new depots also provide greater operational and cost efficiencies and significant environmental benefits.
Further investment in infrastructure will also be made in the 2009/10 financial year to refurbish the Tempe Depot site for use Year In Review 14 Dear Mr Campbell as a fully operational depot. Customer Service 16 In March 2009, State Transit announced a new Metrobus network for Sydney following the successful trial of the first Environment 26 Metrobus service – Route 10 operating between Leichhardt and Kingsford. The new network will cater for future patronage Safety 28 On behalf of the State Transit Authority of NSW, it is our pleasure to present to you the Annual Report for the year ended growth by providing approximately 300,000 additional passenger spaces each week on Sydney’s busiest corridors. 30 June 2009. People 34 The first of the four additional Metrobus routes will begin service in October 2009, providing a high-capacity, high-frequency Competitive Business 42 This report has been prepared in accordance with the Annual Reports (Statutory Bodies) Act 1984 and the Public Finance service between Gore Hill and Mascot, via the City. and Audit Act 1983. The financial statements have been audited by the NSW Audit Office and the Auditor-General’s report Western Sydney Buses 48 is included. State Transit continued its program of network reviews throughout the year, ensuring services benefit all communities by reflecting the changing face of residential areas and business districts and meeting passenger demand. We wish to thank you for your support and we look forward to continuing to grow the business and improve our services Financial Statements 50 to offer an attractive and efficient public transport service for the people of New South Wales. New and improved networks were implemented in Newcastle and Sydney’s Eastern Suburbs (Region 9), following extensive State Transit Authority community consultation. Work also progressed on reviews of bus services in the Northern Beaches and Lower North Shore of New South Wales 52 area (Region 8), the North Western Suburbs (Region 7) and the Inner West and Southern Suburbs (Region 6). State Transit Yours sincerely These network reviews aim to improve the efficiency and reliability of services across the network and ensure services reflect Authority Division 102 passenger demand by operating where they are needed. Western Sydney In State Transit’s largest PrePay conversion to date, the Sydney CBD became cashless between 7am and 7pm weekdays, Buses Division 123 to help speed up boarding times and reduce overall travel times along major corridors.
State Transit will continue the rollout of its PrePay campaign in 2009/10 targeting transport interchanges and major corridors. Appendices 144 Barrie Unsworth Peter Rowley As we put another successful year behind us, we look forward to a busy and challenging year ahead. With the redevelopment Chairman Chief Executive of Leichhardt and Brookvale depots due for completion, the reopening of Tempe Depot, the rollout of three network reviews Index 179 and the launch of four new Metrobus routes, we’re in for exciting year in 2009/10.
Barrie Unsworth Peter Rowley Chairman Chief Executive
2 State Transit Authority of New South Wales - Annual Report 2008/09 3 AboutAbout StateState TransitTransit
Contents Boasting the biggest bus fleet in Bus Fleet Australia and also one of the most At 30 June 2009, State Transit’s bus fleet totalled 2,065 buses: Letter to the Minister 2 modern, State Transit manages one • 1,368 buses are air-conditioned (66% of fleet) Chaiman and Chief of the largest bus operations of Executive’s Foreword 3 • 1,205 buses are low-floor design (58% of fleet) About State Transit 4 anywhere in the world. • 1,107 buses are wheelchair-accessible (54% of fleet)
Network Maps 7 • 704 buses are Euro 3 compliant (CNG or Euro 3 diesel) Performance Highlights 10 Operating three businesses: Sydney (34% of the fleet) Buses, Newcastle Buses and Ferries • 312 buses are Euro 4/5 compliant (CNG or Euro 5 diesel) Year In Review 14 and Western Sydney Buses (15% of the fleet) Customer Service 16 (the Liverpool-Parramatta T-way), • 94 buses are high-capacity articulated buses (5% of Environment 26 State Transit carries around the fleet). Safety 28 207 million passengers every year. People 34 Patronage • State Transit carried 207.851 million passengers in Competitive Business 42 2008/09. Western Sydney Buses 48 • Every working day, State Transit operates more than 15,000 services carrying more than 600,000 passengers Financial Statements 50 to their destinations. State Transit Authority of New South Wales 52 Turnover State Transit • $587.1 million in 2008/09 Authority Division 102 Western Sydney Buses Division 123 Employees • Over 5,000 employees
Appendices 144 Routes • Sydney Buses operates approximately 300 routes in the Index 179 Sydney metropolitan area, extending to Parramatta in the west.
• Newcastle Buses operates 26 routes over a large part of the cities of Newcastle and Lake Macquarie. Newcastle Ferries operates a service across Newcastle Harbour to Stockton.
• Every year the Sydney Buses fleet travels around 84 million kilometres, the Newcastle Buses fleet travels around eight million kilometres and the Newcastle Ferries fleet travels around 24,000 kilometres.
4 State Transit Authority of New South Wales - Annual Report 2008/09 5 About State Transit Network Maps
Bus Fleet • Around 107,600 timetabled services are operated every Sydney Service Area Contents week, 99,000 by Sydney Buses, 7,000 services by At 30 June 2009, State Transit’s bus fleet totalled 2,065 buses: Newcastle Buses and 1,600 services by Western Letter to the Minister 2 • 1,368 buses are air-conditioned (66% of fleet) Sydney Buses. Chaiman and Chief Palm Beach • 1,205 buses are low-floor design (58% of fleet) • Sydney Buses operates 5,400 school services a week on Executive’s Foreword 3 708 bus routes. Newcastle Buses operates 1,400 school About State Transit 4 • 1,107 buses are wheelchair-accessible (54% of fleet) services a week on 149 bus routes.
Network Maps 7 • 704 buses are Euro 3 compliant (CNG or Euro 3 diesel) Performance Highlights 10 (34% of the fleet) Safety • 312 buses are Euro 4/5 compliant (CNG or Euro 5 diesel) The highest priority is placed on safety and security. All buses are fitted with state-of-the-art digital CCTV systems, Year In Review 14 (15% of the fleet) driver protection screens and shatter proof film for windows. Mona Vale Customer Service 16 • 94 buses are high-capacity articulated buses (5% of Buses also feature door safety systems and special school bus warning systems. All buses are in radio contact with Environment 26 the fleet). the State Transit Radio Control Room in Sydney’s Traffic Safety 28 Management Centre and Newcastle’s Radio Control Room. Narrabeen People 34 Patronage Frenchs • State Transit carried 207.851 million passengers in Competitive Business 42 Forest 2008/09. Passenger Information Western Sydney Buses 48 • Individual timetables for every bus service are available Macquarie NORTHERN • Every working day, State Transit operates more than Epping from TransitShops at central points in the Sydney CBD, Park REGION 15,000 services carrying more than 600,000 passengers selected ticket agents and at www.131500.com.au Carlingford Financial Statements 50 to their destinations. or by accessing the 131500 mobile service. Handy WESTERN Manly route information is also available at bus stops and REGION State Transit Authority Chatswood of New South Wales 52 ferry wharves. Turnover Parramatta North State Transit • $587.1 million in 2008/09 • Check out our website www.sta.nsw.gov.au which is Authority Division 102 linked to: Sydney Auburn Watsons Bay Western Sydney www.sydneybuses.info Homebush Employees www.newcastlebuses.info Bay Drummoyne Buses Division 123 Sydney • Over 5,000 employees Strathfield Appendices 144 Tourism Services Routes The Tourism Services arm of State Transit manages the SOUTHERN Bondi sales and marketing of the Sydney and Bondi Explorer EASTERN • Sydney Buses operates approximately 300 routes in the REGION Index 179 hop-on hop-off bus services as well as the SydneyPass Sydney metropolitan area, extending to Parramatta in REGION Coogee the west. combined (Explorer, regular bus, train, ferry, AirportLink) transport product. Kingsgrove • Newcastle Buses operates 26 routes over a large part Maroubra SydneyPass and Explorer are premium priced transport of the cities of Newcastle and Lake Macquarie. Newcastle Rockdale Ferries operates a service across Newcastle Harbour sightseeing tickets specially designed to provide easy access to Stockton. to key tourist precincts and attractions in Sydney. Both Hurstville products are promoted within international and domestic Sans Souci La Perouse • Every year the Sydney Buses fleet travels around 84 million markets and are deemed important to the positioning of the kilometres, the Newcastle Buses fleet travels around eight Sydney Buses brand overseas, playing a vital part in Sydney’s million kilometres and the Newcastle Ferries fleet travels tourism transport infrastructure. around 24,000 kilometres.
6 State Transit Authority of New South Wales - Annual Report 2008/09 7 Network Maps
Contents Newcastle Service Area Liverpool-Parramatta T-way Route Map
Letter to the Minister 2 Chaiman and Chief Executive’s Foreword 3 Finlayson About State Transit 4 Coleman Network Maps 7 Mayfield Pitt Performance Highlights 10 Mays Hill Parramatta Wallsend Centenary
Year In Review 14 Lambton Stockton Sherwood Customer Service 16 Gipps Broadmeadow Smithfield Canal Environment 26 Glendale Newcastle Hassall Cooper Safety 28 Warren Woodpark Victoria People 34 Wetherill Kotara Competitive Business 42 Elizabeth Horsley Western Sydney Buses 48 Prairiewood Charlestown Financial Statements 50 State Transit Authority Warners Bay Orphan School of New South Wales 52
State Transit St Johns Authority Division 102
Western Sydney Clear Paddock Buses Division 123 Bonnyrigg Valentine Redhead Appendices 144 Brown
Index 179 Green Valley Belmont Busby
Cartwright
Hinchinbrook Memorial Macquarie Liverpool
Miller Ash Maxwells Brickmakers
Swansea
8 State Transit Authority of New South Wales - Annual Report 2008/09 9 Performance Highlights
Contents Brookvale Depot Redevelopment Cashless CBD for Sydney In 2008/09, State Transit continued to expand its PrePay campaign to improve the reliability of bus services across the Letter to the Minister 2 Work on the new Brookvale Depot network. Chaiman and Chief continued during 2008/09, with the Executive’s Foreword 3 first stage of the upgrade completed In State Transit’s largest PrePay conversion to date, the Sydney CBD became cashless between 7am and 7pm on About State Transit 4 in June 2009. This has provided a new weekdays, to help speed up boarding times and reduce Network Maps 7 two-storey administration building for overall travel times along major corridors. Performance Highlights 10 staff, including training, staff amenities and recreation space. Year In Review 14 Customer Service 16 The second stage of the upgrade, Environment 26 due for completion by the end of Safety 28 2009, involves the demolition of the People 34 existing administration building, to Competitive Business 42 Western Sydney Buses 48 provide more room for bus movements inside the depot, as well as parking
Financial Statements 50 and storage. State Transit Authority of New South Wales 52 New Metrobus Network State Transit Leichhardt Depot Redevelopment A new Metrobus network was announced for Sydney Authority Division 102 following the successful trial of the first Metrobus service - Route 10 operating between Leichhardt and Kingsford. Western Sydney The redevelopment of Leichhardt Buses Division 123 Depot continued throughout Four additional routes will join Route 10 and will be rolled out by the end of 2010. These include: 2008/09 and is due for completion Appendices 144 in September 2009. • Route 20 running between Gore Hill and Mascot; • Route 30 running between Mosman and Enmore; Index 179 The redevelopment of the depot • Route 40 running between Chatswood and Bondi will make way for Australia’s largest Junction; and environmentally-friendly bus fleet, • Route 50 running between Drummoyne and Randwick. supporting more than 200 buses and resulting in an additional 96 bus parking spaces.
10 State Transit Authority of New South Wales - Annual Report 2008/09 11 Performance Highlights
Contents
Letter to the Minister 2 Chaiman and Chief Executive’s Foreword 3 About State Transit 4 Network Maps 7 Performance Highlights 10
Year In Review 14 Customer Service 16 Environment 26 Safety 28 People 34 Competitive Business 42 Western Sydney Buses 48
Financial Statements 50 State Transit Authority of New South Wales 52 Free CBD Shuttle Improved Networks for Newcastle and the New Buses for the State Transit fleet Additional Trips To Meet Peak Growth State Transit Authority Division 102 A free Shuttle service was launched in Sydney’s CBD on 2 Eastern Suburbs In 2008/09, 210 new buses were delivered to the State In March 2009, Sydney Buses added an additional 390 December 2008. Transit fleet. weekly trips on top of regular timetabled services to cater Western Sydney In 2008/09, State Transit implemented new and improved bus networks in Newcastle and the Eastern Suburbs for the expected demand during the busy March period. Buses Division 123 Since its introduction, State Transit has been operating the These buses include 63 Volvo Euro 5 and 142 Mercedes following extensive community consultation. service as a charter under a contract with NSW Transport and compressed natural gas buses, delivered as part of the This increase in services provided an additional 21,000 Infrastructure. A new network for the Northern Beaches and Lower North Government’s $250 million investment in new buses. passenger spaces along Sydney’s busiest corridors. Appendices 144 Shore was also announced and will be implemented on The Shuttle operates in both directions between Circular Also delivered to the fleet were five new high-capacity buses 2 August 2009. Quay and Central Railway Station, along George and to operate as part of the Route 10 Metrobus trial. World Youth Day Index 179 Elizabeth streets. The new networks will help improve efficiency and reliability To cater for World Youth Day celebrations between 15 July The delivery of these new buses and subsequent retirement of services and will ensure that levels of demand are met. and 20 July 2008, State Transit operated more then 16,500 of older buses has reduced the average age of State Transit’s additional services. bus fleet to 11.64 years, below the statutory requirement of 12 years. Road closures and special event clearways in the CBD and Eastern Suburbs resulted in significant diversions for services that required extensive planning by State Transit.
12 State Transit Authority of New South Wales - Annual Report 2008/09 13 Contents
Letter to the Minister 2 Chaiman and Chief Executive’s Foreword 3 About State Transit 4 Network Maps 7 Performance Highlights 10
Year In Review 14 Customer Service 16 Environment 26 Safety 28 People 34 Competitive Business 42 Western Sydney Buses 48
Financial Statements 50 State Transit Authority of New South Wales 52 State Transit Authority Division 102 Western Sydney Buses Division 123
Appendices 144
Index 179 Year in Review Review of Operations
14 State Transit Authority of New South Wales - Annual Report 2008/09 15 Customer Service
Contents Key Objectives Performance Good customer service is central to delivering what the community expects of our bus services. Letter to the Minister 2 • To serve our customers in Chaiman and Chief a friendly manner In order to deliver good customer service, State Transit Executive’s Foreword 3 employees need to have expertise in areas of interpersonal skills, cultural awareness, communication, conflict resolution, About State Transit 4 service awareness and negotiation. Network Maps 7 State Transit, as a Registered Training Organisation, is Performance Highlights 10 Key Benefit committed to ensuring that it appropriately identifies, trains and assesses all staff in line with its service standards for • Delivering a positive customer reliability, convenience, efficiency, customer service, comfort, Year In Review 14 experience security and safety. Customer Service 16 Environment 26 Safety 28 People 34 Key Performance Indicators Competitive Business 42 Western Sydney Buses 48 • Increased customer satisfaction
Financial Statements 50 • Increased community advocates/ State Transit Authority supporters of New South Wales 52 State Transit • Increased patronage PrePay Authority Division 102 In 2008/09, State Transit continued to expand its PrePay campaign to improve the reliability of bus services across Western Sydney the network. Buses Division 123 In State Transit’s largest PrePay conversion to date, the Sydney CBD became cashless between 7am and 7pm on Appendices 144 weekdays, to help reduce boarding times and overall travel times along major corridors.
Index 179 The CBD conversion was rolled out in four stages:
• 2 March – bus stops at Carrington, York and Clarence streets at Wynyard;
• 6 April – bus stops along the George Street corridor, from the railway overpass at Circular Quay in the north to Railway Square (including Lee Street) in the south and the QVB precinct including York, Druitt and Clarence streets;
• 11 May – bus stops at Circular Quay and along Pitt and Castlereagh streets; and
• 22 June – bus stops along Elizabeth, Phillip and Macquarie streets, and bus stops at Museum and Central railway stations (including Eddy Avenue).
16 State Transit Authority of New South Wales - Annual Report 2008/09 17 Customer Service
Contents A major number of bus zones and interchanges were also Metrobus Network Announced Following converted to PrePay-only during the year: Successful Trial Letter to the Minister 2 • Cambridge Street at Epping Station from 7am to 7pm A new Metrobus network was announced for Sydney on weekdays; following the successful trial of the first Metrobus service - Chaiman and Chief Route 10 operating between Leichhardt and Kingsford. Executive’s Foreword 3 • Spofforth Street near Military Road, Cremorne Junction About State Transit 4 from 7am to 10am on weekdays; Four additional routes will join Route 10 and will be rolled out by the end of 2010. These include: Network Maps 7 • Military Road near Cabramatta Road, Cremorne Junction Performance Highlights 10 from 7am to 10am on weekdays; and • Route 20 running between Gore Hill and Mascot; • Military Road near Wycombe Road, Neutral Bay Junction • Route 30 running between Mosman and Enmore; from 7am to 10am on weekdays. Year In Review 14 • Route 40 running between Chatswood and Bondi Customer Service 16 PrePay tickets are now used for 78% of all core passenger Junction; and trips which is resulting in faster boarding times, less delays Environment 26 and cheaper tickets for bus passengers. • Route 50 running between Drummoyne and Randwick. Safety 28 In response to demand, Route 10 will also be extended to People 34 operate to Maroubra Junction. Competitive Business 42 Expanding The Ticket Reseller Network Since its introduction on 12 October 2008, Route 10 has Western Sydney Buses 48 been overwhelmingly successful with patronage on the As the continued rollout service increasing by more than 40% since the first month Free CBD Shuttle of PrePay service corridors of operation. A free Shuttle service was launched in Sydney’s CBD on across State Transit’s service Financial Statements 50 2 December 2008. area gains momentum, the To date, more than 1.1 million people have chosen to travel State Transit Authority size of the ticket reseller on the metro-style service, which provides a high-frequency of New South Wales 52 Since its introduction, State Transit has been operating network continues to link connecting the inner west with the eastern suburbs via the service as a charter under a contract with NSW Transport State Transit expand. There are now the city. and Infrastructure. Authority Division 102 981 authorised State Operating along the busy Parramatta Road and Anzac Western Sydney Transit ticket resellers The free CBD Shuttle has been hugely popular with more Parade corridors, the Route 10 service operates every 10 Buses Division 123 across metropolitan Sydney, than 580,000 people travelling on the service since its including 156 in the Sydney minutes during the peak, every 15 minutes during the off- introduction - an average of more than 19,000 passengers CBD. This represents a net peak and every 20 minutes on weekends. each week. Appendices 144 increase of 12% or 105 new ticket resellers over As the service is in addition to regular timetabled services, The Shuttle operates in both directions between Circular the past 12 months. Metrobus provides additional capacity for passengers. Quay and Central Railway Station, along George and Index 179 Elizabeth streets. A further growth in the number of ticket resellers of Thirteen bright red buses operate Route 10 - five of which 10% -15% is forecast for the year 2009/10. This growth is are high-capacity articulated buses and the remaining eight The highly visible green Shuttle buses run at a 10-minute Additional Services expected to meet the increase in demand for prepaid tickets new Mercedes compressed natural gas buses. frequency between 9.30am and 3.30pm weekdays, finishing In March 2009, Sydney Buses added an additional 390 weekly at 9pm on Thursdays. Weekend services run between trips on top of regular timetabled services to cater for the due to the planned expansion of PrePay services during the All red buses servicing the route feature improved passenger 9.30am and 6pm. expected demand during the busy March period. 2009/10 year. information with on board next stop displays and audio Sales to ticket resellers in 2008/09 exceeded $169 million, an announcements. With more than 32 bus stops around the CBD Shuttle route, This increase in services provided an additional 21,000 the service is easily accessible with most people in the City passenger spaces along Sydney’s busiest corridors. increase of 15% on the 2007/08 turnover of $147 million. The expanded Metrobus network is a major investment no more than two blocks away from the free service. in improving Sydney’s public transport, providing almost a Over the past two-and-a-half years Sydney Buses has quarter of a million extra passenger spaces every week for Passengers can use the free service to connect with other increased its services by nearly 2000 weekly trips. This passengers travelling from some of Sydney’s most densely public transport in and out of the city, with the Shuttle equates to more than 100,000 additional passengers on populated suburbs. passing all six city railway stations, bus services to the board buses each week. northern suburbs, northern beaches, eastern suburbs, inner west, inner south, Pyrmont and the Hills district and ferry services at Circular Quay.
18 State Transit Authority of New South Wales - Annual Report 2008/09 19 Customer Service
Bus Fleet Timetabled wheelchair bus services now operate on all main Passenger Information Wynyard and Queen Victoria Building – for face-to-face Contents corridors and cross-regional routes. Many of these services assistance from State Transit staff. In 2008/09, 210 new buses were delivered to the State Information is available through a number of channels provide links to accessible CityRail stations, increasing Transit fleet. to cater to a wide range of people. Letter to the Minister 2 opportunities for multi-modal travel. A full list of wheelchair Each store carries a full range of timetables and maps, and can support customers with ticketing and journey planning Chaiman and Chief These buses include 63 Volvo Euro 5 and 142 Mercedes accessible services can be found by visiting Bus stop signage and information www.sydneybuses.info information. Executive’s Foreword 3 compressed natural gas buses, delivered as part of the Stop specific timetables are available at many bus stops with Government’s $250 million investment in new buses. About State Transit 4 additional information on display at major stops, and along Email alerts several major corridors. There are now over 3,000 subscribers to the email Network Maps 7 Also delivered to the fleet were five new high-capacity Bus Refurbishment buses to operate as part of the Route 10 Metrobus trial. State Transit bus tenders generally require a 20-year alerts service. Performance Highlights 10 Improved bus stop signage and information continues These buses, each featuring different seating configurations, minimum design life with a 15-year warranty. Manufacturers to be rolled out across the Sydney Buses and Newcastle Email alerts allows customers to subscribe to receive email include: supply buses to State Transit on that basis. Manufacturers do Buses and Ferries networks. notifications of enhancements to services, altered terminal not stipulate maximum kilometres for the vehicle. Year In Review 14 arrangements or planned temporary diversions, particularly • two Euro 5 Volvo articulated buses; Additional stops in the Sydney CBD along George, for major events. Customer Service 16 State Transit refurbishes buses midlife at around 14-17 years Castlereagh and Elizabeth streets are being upgraded with • a Euro 4 Scania 14.5 metre bus; of age, which is well within the minimum design life. State Environment 26 new signage and enhanced service information. The email alerts have continued to play an important role in Transit therefore operates buses up to 25 years old. • a Euro 4 Scania articulated bus; and communicating timetable changes and network reviews. Safety 28 Printed timetables All buses are regularly assessed by qualified State Transit People 34 • a Euro 4 Scania low-floor articulated bus. Printed timetable booklets are available from TransitShops, or Transport Info and Roads and Traffic Authority personnel to confirm they from selected ticket resellers. PDF versions of each timetable Transport Info is part of the Integrated Transport Information Competitive Business 42 State Transit’s operating contracts with NSW Transport and are roadworthy. and route map can be downloaded from the Sydney Buses Service. It provides information to customers to plan their Infrastructure issued under the Passenger Transport Act 1990 Western Sydney Buses 48 and Newcastle Buses and Ferries websites. trip using buses, trains and ferries in the greater Sydney require an average fleet age of no more than 12 years. During the year, buses undergoing refurbishment targeted area bounded by Newcastle, the Blue Mountains and Scania vehicles. In an effort to standardise the appearance of all customer Wollongong. Services include trip planning, timetables, Financial Statements 50 The delivery of these new buses and subsequent retirement information, a revised timetable format for all Sydney Buses news and special events. of older buses has reduced the average age of State Transit’s and Newcastle Buses and Ferries public timetable booklets State Transit Authority Patronage bus fleet to 11.64 years. was introduced in late 2008. of New South Wales 52 Total patronage for State Transit in 2008/09 was 207.851 Transport Info includes web-based information (which is available by visiting www.131500.com.au), mobile website State Transit State Transit continues its program to purchase only million trips, an increase of 0.7% on the previous Each timetable now includes standardised pictogram logos, information (available on mobile telephones by visiting Authority Division 102 wheelchair-accessible buses, which now total 1,107 (54% of financial year. which are used on maps to show connection information for mobile.131500.com.au), or by telephoning 131500. the fleet). At the end of June 2009, accessible trips were on bus, train, ferry, monorail and light rail services. Western Sydney more than 403 timetabled services across the State Transit Sydney Buses’ patronage was 192.804 million trips, up Websites Buses Division 123 network. This places State Transit ahead of Commonwealth 1.492 million trips (0.8%) on the previous year. Newcastle The new format reinforces a consistent appearance of Disability Standards for Accessible Public Transport targets. Buses and Ferries patronage remained constant with customer information, and is similar to the style used The Sydney Buses and Newcastle Buses and Ferries websites 12.425 million trips. successfully on wayfinding, bus stop, special event and offer comprehensive information for customers using State Appendices 144 All new buses acquired by State Transit feature: interchange signage. Transit services, such as route information and timetables, Patronage on the Liverpool-Parramatta T-way continued to ticketing options, and service and timetable alterations. • kneeling suspension for level entry and a flat no-step floor show strong growth, increasing by 4% to 2.622 million trips. TransitShops Index 179 to make it easier for the elderly and less mobile; More than 4.4 million people visited the websites in Customers can visit one of four Sydney city-based The Metropolitan Bus System Contracts signed by State 2008/09, an increase of 13% compared to the previous TransitShops – located at Railway Square, Circular Quay, • an extended wheelchair ramp and accommodation for two Transit on 1 July 2005 provides incentives for State Transit financial year. Over 5.6 million downloads of timetables were wheelchairs; to generate patronage growth on its services. recorded, a huge 375% increase on the previous period. • additional priority seating for less mobile passengers; In 2008/09, State Transit achieved an incentive payment of $2.392 million for the amount by which actual farebox Improvements were made to • high visibility handrails; revenue exceeded benchmark expectations. the appearance and content of • increased interior lighting; both websites, with enhanced levels of information and better • improved destination signs; and navigation introduced to most sections of each site. • air-conditioning.
20 State Transit Authority of New South Wales - Annual Report 2008/09 21 Customer Service
On Board Passenger Information Display System Improving Travel Times State Transit is working to further reduce the number of Contents collisions with other vehicles and fixed objects. Bus routes With the commencement of the Route 10 Metrobus service State Transit continues to work with a number of agencies, have now been assessed to identify areas that are difficult to between Kingsford and Leichhardt via the Sydney CBD, including the Roads and Traffic Authority (RTA), NSW Letter to the Minister 2 operate buses along, and work will be prioritised to ensure a new on board Passenger Information Display system (PID) Transport and Infrastructure and local councils, to improve the service continues in more difficult areas. Chaiman and Chief was introduced on all buses operating the services. travel times in the CBD and along arterial corridors. Executive’s Foreword 3 To help remove obstacles that hinder our service delivery, Electronic signs and digitised audio announcements Within the CBD, a number of changes have been introduced About State Transit 4 the RTA has included in its programming, the relocation of broadcast details of bus stops along the route, including along Park, William, George and Elizabeth streets to offset 19 electric light poles away from the kerb along Spit and Network Maps 7 connecting transport details and local attractions. The PID the congestion buses often encounter. These changes involve system is controlled by satellite and is updated automatically. Military roads. Performance Highlights 10 the extension of bus lanes and their hours of operation. Customer feedback on the system has been positive, and To further help clear the peak hour congestion around has been well received by new customers unfamiliar with the transport interchanges and along arterial corridors, all bus Public Transport Information and Year In Review 14 Metrobus service. stops in the CBD are now cashless between 7am and 7pm Priority System Customer Service 16 on weekdays. This initiative has proven to reduce boarding State Transit is working with the RTA to develop the Public It is anticipated that the PID system will be featured on other times, and in turn, improve the on time reliability of Transport Information and Priority System, which will Environment 26 Metrobus routes as they are introduced. bus services. improve the reliability of public transport. Safety 28 People 34 Transport Info A number of bus priority projects are currently being The system, which uses GPS technology, gathers information implemented or planned including further work along from each bus about its location and how it is progressing Competitive Business 42 Of the total calls answered by the Transport Info, 20.7% Epping, Victoria, Spit and Military roads. along the route. If the bus is running late, the system can Western Sydney Buses 48 related to State Transit operated services (18.9% Sydney provide priority through traffic lights to help keep bus Buses, 1.5% Newcastle Buses and Ferries and 0.3% Western The section of bus lane provided along Epping Road services to timetable. Sydney Buses). The remainder (79.3%) of calls were for between Mowbray and Longueville roads (around 3.5km in Financial Statements 50 RailCorp, Sydney Ferries or private bus information. length) typifies the commitment to ensure public transport Rollout of the system will benefit passengers and bus is a viable alternative to the car, with travel times being very operators by helping to provide: State Transit Authority State Transit calls related to next service, timetable or reliable in this section of road. of New South Wales 52 trip planning information (72%), fares (8%) and general • Quicker trips that are more closely aligned throughout State Transit information and customer service (20%). Proposals for improving travel times along Victoria Road the timetable; Authority Division 102 include the introduction of an AM bus lane and the introduction of a PM inbound clearway through Drummoyne • Real time data regarding bus locations which can be useful Western Sydney Passenger Feedback shopping area. These changes, in turn, should improve the in resolving and responding to emergency and ‘in service’ Buses Division 123 The top five complaint issues for our customers were 1) late reliability of travel times similar to those achieved through problems and situations; and buses; 2) staff being rude/unhelpful; 3) buses failing to stop; the Epping Road corridor. • Historical data in regards to running times which will assist 4) early buses; and 5) bad driving. Appendices 144 In the East, traffic congestion along Bondi Road continues State Transit in reviewing and producing accurate running to be a source of concern, particularly during the times and suitable timetables. Service Delivery summer months. Index 179 It is expected that all State Transit buses will be fitted with Traffic congestion can be experienced in most areas of The RTA introduced a weekend clearway trial along Bondi PTIPS by the end of 2009. State Transit’s operating environment and presents a major Road that operated between December and February challenge in providing reliable bus services. on Saturdays, Sundays and public holidays. The trial was successful, clearly improving travel times and bus Service Network In 2008/09, Sydney Buses recorded an improvement in reliability. The continuance of this clearway is currently being State Transit designs its bus routes and timetables so they are reliability with 96% of services departing on time and 99.4% considered. simple to understand, frequent, direct, reliable and accessible of timetabled services operating across the network over to the majority of the community. the year. A number of letters have been forwarded to local councils seeking adjustments to our operating environment. Many of Service change proposals are based on regional research and Newcastle Buses continued its excellent record of reliability the issues have been agreed to and discussions will continue analysis of internal and external data including transport with 97.9% of services departing on time and 99.9% of to ensure adequate bus infrastructure and safe areas for bus data, demographic data, ticket data, market research, services operating over the year. operators and customers are provided. local and regional land use planning strategies and service performance data.
22 State Transit Authority of New South Wales - Annual Report 2008/09 23 Customer Service
Consultation with a range of stakeholders and the • better coordination of services with education hubs These submissions played an important part in the final Special Events Contents community is a key element of State Transit’s service such as the University of Newcastle and TAFE facilities in revisions to the plans with five of the nine proposed changes State Transit, on behalf of NSW Transport and Infrastructure, development strategy. Considerable care is taken to ensure Belmont, Glendale and Newcastle; withdrawn and three others amended. does the scheduling for the regional route network for Letter to the Minister 2 the final structure reflects the needs and wishes of the sporting events at Sydney Olympic Park. This includes the greatest number of passengers and residents. • improved connectivity between major hubs such as John One of the key benefits of the review was the simplification Chaiman and Chief Hunter Hospital, Charlestown Square, Glendale and of stopping patterns for Express and Limited-stops services. Royal Easter Show, Rugby Union, Rugby League State of Executive’s Foreword 3 Westfield Kotara; This simplification has resulted in a reduction of Northern Origin and Grand Final and Sydney Swans fixtures. About State Transit 4 Beaches stopping patterns from more than 25 to 10, making Integrated Network Reviews State Transit also provides the contracted services operating • a direct link from Mayfield to the John Hunter Hospital; it simpler for the community to know which bus stops their Network Maps 7 As part of the NSW Transport and Infrastructure program via Route 4 - Maroubra to Sydney Olympic Park - and services stop at with almost all Express and Limited-stops of bus reform and in accordance with the Metropolitan and • a more direct service from Swansea, Belmont and Route 1a - Warriewood to Sydney Olympic Park. Performance Highlights 10 services now operating via the same route outbound as they Outer Metropolitan Bus System Contracts, State Transit is Charlestown to Newcastle; required to review its regional networks to ensure services use to travel into the City. best reflect the needs of the travelling public. • a new service along Hannell Street, Maryville and World Youth Day Year In Review 14 Other benefits of the new network include: Honeysuckle Drive, Newcastle West; and State Transit played a major role in the successful In 2008/09, State Transit implemented new and improved Customer Service 16 • a new link to Manly Hospital and North Head for Dee Why, transportation of participants in World Youth Day bus networks in Newcastle and the Eastern Suburbs • additional services on weekends. Environment 26 Brookvale and Balgowlah residents on an extended celebrations between 15 and 20 July 2008. following extensive community consultation. A number Improved Network for the Eastern Suburbs Route 135; Safety 28 of other network reviews are currently underway or in the More than 16,500 additional services operated during the People 34 planning stages. These include: On 26 April 2009, the new network for the Eastern Suburbs • a new off-peak service, Route 153, which will link local period, providing capacity for more than 825,000 additional was introduced following extensive community consultation. retirement villages in the Cromer, Narraweena and passengers on Sydney Buses. Competitive Business 42 • Northern Beaches and Lower North Shore – during 2008 Wheeler Heights areas with Warringah Mall; Western Sydney Buses 48 the community responded to an invitation to comment More than 3,200 responses were received, forming an Road closures and special event clearways in the CBD and which assisted in developing the new network to be important component of the refinement of the Eastern • the introduction of fulltime, consistent and faster city Eastern Suburbs resulted in significant diversions for services implemented on 2 August 2009; Suburbs network. services for Cromer residents via Pittwater Road on and required extensive planning from State Transit. Financial Statements 50 extended Routes 178, 179 and a new express Route E78; • North Western Region – a proposal was put forward to the Changes were made to eight of the 79 routes in the east, To help people get to where they needed to go, more than State Transit Authority community with submissions closing on Friday 30 January. resulting in a boost in bus services. • additional trips between Dee Why and Manly on Pittwater 800 signs and 60 wayfinding staff were positioned around of New South Wales 52 The new network will be implemented 11 October 2009; Road, at 10-minute intervals; the CBD and Eastern Suburbs. These adjustments to the network in Sydney’s east will help State Transit and improve efficiency and reliability of services and will ensure Authority Division 102 • additional services • Inner West and Southern Suburbs – extensive research that levels of demand are met. on Military Road on Western Sydney is currently being undertaken regarding possible route weekends; and Buses Division 123 options with community consultation planned from Some of the improvements include: 6 September 2009. • increased access to • increased services running from the City to Sans Souci; buses at the park ‘n’ ride Appendices 144 Improved Newcastle Network • improved east-west bus links through the rapidly facility at Pittwater Park, On 30 November 2008, the new Newcastle network was developing Green Square/Victoria Park area connecting to Warriewood. introduced to provide more direct routes. the university and hospitals in Randwick; and Index 179 The new network will be Extensive community consultation helped to determine the • increased bus services from Kingsford to the City. implemented on 2 August final route structure, which included more than 1,700 formal 2009, delivering more submissions from local residents, councils, shopping centres Improved Network for the Northern Beaches and reliable journey times, and educational and health institutions. Lower North Shore increased access to buses In August 2008, State Transit put forward a proposal to the and 185 additional trips to The upgrade to the Newcastle Buses network offers a community, asking for feedback regarding changes to bus the weekly timetable during number of benefits including: routes in the Northern Beaches and Lower North Shore area. the AM and PM peaks.
• less circuitous routes and duplication of routes, with more More than 3,300 submissions were received, with a large direct services to reduce travel times; number of these submissions focusing on nine proposed • improved timetabling with better spacing of services on changes to the network. key corridors;
24 State Transit Authority of New South Wales - Annual Report 2008/09 25 Environment
Contents National Greenhouse and Leichhardt Depot Redevelopment Energy Report Following the completion of the environmental remediation of the Leichhardt Depot site, construction is currently Letter to the Minister 2 underway for the redevelopment of the depot, making way Chaiman and Chief State Transit has registered under for one of Australia’s largest environmentally-friendly Executive’s Foreword 3 the National Greenhouse and bus fleets. About State Transit 4 Energy Act, 2007, as a Corporate The upgrade will allow the depot to support a fleet Network Maps 7 entity required to report its annual of up to 200 buses, the vast majority of which will be Performance Highlights 10 environmentally-friendly, low-emission, gas-powered buses greenhouse emissions, for the period with the balance being environmentally-friendly diesel buses.
2008/09, and onwards, to the Federal Key features of the depot upgrade include: Year In Review 14 Department of Climate Change. State Customer Service 16 • compressed natural gas and clean diesel buses; Transit is currently preparing its first Environment 26 report to be entered onto the Federal • improved services for passengers in the Inner West; Safety 28 • a safer working environment for staff; People 34 Department of Climate Change • the protection of heritage buildings; Competitive Business 42 OSCAR database. Western Sydney Buses 48 • water recycling facilities for use on site; • a purpose built maintenance facility and workshop; Financial Statements 50 • new regional administrative offices; and State Transit Authority of New South Wales 52 • underground car parking. State Transit Authority Division 102 Leichhardt Tram Depot Lands Voluntary Improving Bus Fleet Emission Standards Western Sydney Remediation Agreement With the progressive deliveries of the new Volvo Euro 5 Buses Division 123 diesel and Mercedes compressed natural gas buses, as part Following the successful audited remediation of vested of the $250 million investment in 505 new environmentally- lands, being Lot 11 (Area B) of the former Leichhardt Tram friendly buses, State Transit’s overall fleet emissions standards Appendices 144 Depot, south of the existing Leichhardt Depot, the Voluntary profile is steadily improving as these new low-emission buses Remediation Agreement with the NSW Department of displace older Euro 2 diesel buses. Climate Change, has been completed and lifted. The lands Index 179 are now deemed suitable for industrial/commercial land use, in conjunction with a documented Environmental RTA Clean Fleet Program Management Plan. State Transit’s bus fleet was accredited as an RTA Clean Fleet Program member in 2008, following an independent audit Environmental Protection Plans for of its maintenance practices and standards. Membership implies a fleet maintenance program that complies with Underground Storage Tanks RTA standards for fault identification and repair, scheduled In accordance with Protection of the Environment Operations vehicle maintenance, vehicle emissions and fuel quality. (Underground Petroleum Storage Systems) Regulation, 2008, Ongoing membership requires an independent external audit Environmental Protection Plans have been developed and every two years. issued for all depots. These plans are to be maintained by the depot managers as the nominated persons responsible for onsite fuel storage and delivery systems.
26 State Transit Authority of New South Wales - Annual Report 2008/09 27 Safety
Contents Key Objectives Performance There has been a consistent improvement on State Transit’s key performance indicators over the past 12 months in all Letter to the Minister 2 State Transit’s ultimate goal is areas, except passenger falls, which have remained stable. Chaiman and Chief that there are no injuries to staff, State Transit will continue to drive continuous improvement Executive’s Foreword 3 passengers or the public, at depots, in the performance of all areas relating to safety. State Transit About State Transit 4 strives to achieve the highest possible safety standards to in offices, on buses or as a result of ensure the safety of all people involved in or affected by Network Maps 7 State Transit operations or activities. its operations. Performance Highlights 10 Lost Time Injury Frequency Rate (LTIFR) Year In Review 14 State Transit’s LTIFR reduced by 26.8% in 2008/09, Customer Service 16 continuing a downward trend over the past five years. Key Benefit Since 2004/05, State Transit has reduced its LTIFR by 41.5%. Environment 26 Safety 28 A safe and healthy workplace Lost Time Injury Frequency Rate People 34 for all. Competitive Business 42 Western Sydney Buses 48
Financial Statements 50 Key Performance Indicators State Transit Authority • Reduced staff incidents of New South Wales 52 State Transit • Reduced customer Incidents Authority Division 102 Western Sydney • Increased safety culture Buses Division 123 Employee Assaults In 2008/09, the number of employee assaults reduced Appendices 144 by 19.8% from 177 in 2007/08 to 142. Since 2004/05, employee assaults have reduced by 37.4%.
Index 179 Employee Assaults
28 State Transit Authority of New South Wales - Annual Report 2008/09 29 Safety
Contents Customer Incidents Positive Performance Indicators Safety Initiatives practices for tasks with safety risks. State Transit’s increased focus on customer safety has State Transit will be introducing positive indicator targets in “Putting People First” The new SMS will be implemented across the entire business resulted in a 4.5% reduction in overall customer incidents in 2009/10 to assist in measuring our proactive safety activities Letter to the Minister 2 Over the past 12 months State Transit has promoted the core throughout 2009/10. Implementation will bring the system 2008/09. This continues the downward trend over the past such as: safety belief of “Putting People First”, which provides the to life and require the support and commitment of all staff to Chaiman and Chief five years with customer incidents reducing by 26.4% since foundation to ensure that safety is given the number one ensure its success. • Number of hazards reported; Executive’s Foreword 3 2004/05. priority and consideration when undertaking our activities About State Transit 4 and operations. This core belief is supported by core safety To ensure the successful implementation of the SMS at State Customer Incidents • Number of OHS Committee Meetings; values, which include: Transit, employees will receive widespread support through Network Maps 7 • Number of Workplace Inspections; and training, workshops, coaching and regular communication. Performance Highlights 10 • the demands of job are never too great to jeopardise Ongoing consultation with employees and review of the • Number of Corrective Actions completed on time. safety; system will be made to ensure our safety performance across the business is always improving. Year In Review 14 • safety is our top priority; Drug and Alcohol Testing Fit for Work, Fit for Life Program Customer Service 16 • safety must be included when making decisions; and With the development of State Transit’s SMS, the Fit for Environment 26 Alcohol Drugs • safety involves all of us. Work, Fit for Life Program has been incorporated into our Safety 28 Health Monitoring Program. Number of Tests 1295 666 Safety Management System People 34 This program is proactive and preventative and aims to 18 State Transit is developing a new Safety Management Number of Positives 0 maintain or improve the general wellbeing of employees and Competitive Business 42 (Includes 1 refusal) System (SMS) designed to create a safer workplace for all includes activities such as biological monitoring, workplace State Transit employees and all other people affected by our Western Sydney Buses 48 monitoring, health assessments, drug and alcohol, fatigue State Transit is committed to a strict drug and alcohol policy, operations and activities. which involves random, reasonable cause and incident drug management and health promotion. At Fault Accident Rate (per 100,000km) Financial Statements 50 and alcohol testing. The SMS will be used to manage State Transit’s at fault accident rate per 100,000km reduced health and safety at State Transit State Transit Authority by 2.16% during 2008/09. This follows a downward trend Employees who return positive tests are subject to and will provide a base from where of New South Wales 52 over the last four years with State Transit’s at fault accident disciplinary proceedings including suspension with a first and we implement our health and safety State Transit rate reducing by 12.5% since 2005/06. final warning or immediate dismissal. Counselling and/or policy initiatives and achieve our Authority Division 102 rehabilitation is also offered. strategic safety objectives. At Fault Accident Rate (per 100,000 km) Western Sydney The new SMS structure was Buses Division 123 Workers Compensation approved and finalised in In 2008/09, the number of Workers Compensation September 2008 following State claims reduced by 11, despite a slight increase in full-time Transit engaging in extensive Appendices 144 equivalent staff numbers. Total claim numbers are expected consultation with internal and to fall further, coinciding with the introduction of State external stakeholders. Following this Transit’s Safety Management System (SMS), which was consultation, 24 SMS procedures Index 179 launched on 29 June 2009. were developed which describe what must be done in order for State Transit’s commitment to early intervention strategies, State Transit to work safely and the provision of suitable duties and astute claims meet its regulatory requirements management has contributed to a significant decline in the and ensure a safe workplace for all. cost of closed claims. In 2008/09 the cost of closed claims reduced by 31.3% compared to 2007/08. The next stage of the SMS program includes the development and Despite positive movements in claim numbers and costs, implementation of Operational the actuarial estimate for outstanding claims liability has Standards and Safe Work increased by $4.522 million due to a fall in bond rates and Procedures, which focus on State changes in claims experience. Transit’s top safety risk priorities and provide guidelines on minimum standards for managing key areas of risk and outlining safe work
30 State Transit Authority of New South Wales - Annual Report 2008/09 31 Safety
Contents Resources Road to Success Safety Leadership Committee The Road to Success Safety Forum brings together State Transit’s management and representatives, safety The Safety Leadership Committee was established to provide Letter to the Minister 2 professionals and OHS committee members to discuss safety guidance and leadership for the new SMS. The Safety performance and our plans to build on our safety culture. Chaiman and Chief Leadership Committee comprises of Senior Executives who Executive’s Foreword 3 meet monthly to review and approve the strategic planning, Kahi Puru, from the WorkCover NSW Paralympian Speaker About State Transit 4 resource allocation and policy and procedure review for the Program, highlighted the importance of safety at work with new SMS. Network Maps 7 his personal safety message, whilst key internal speakers informed staff of State Transit’s past and future safety Performance Highlights 10 Safety Division performance and initiatives. An interactive panel discussion In 2008/09, a new Safety Division was established, to drive between management and employees enabled open debate and support the development and implementation of the on critical safety issues. Year In Review 14 SMS. Position descriptions were developed for three types of Customer Service 16 new positions, requiring safety qualifications: Poster Competition The State Transit ‘Putting People First’ poster competition, Environment 26 • Safety Managers (to lead the planning, implementation, open to all State Transit employees and their family measurement, and review of the SMS); Safety 28 Communication members, was a resounding success and saw many People 34 • Safety Professionals (to provide the expert advice, OHS Committees wonderful posters depicting State Transit’s core belief of “Putting People First”. Entries have been displayed around Competitive Business 42 assistance and support for Business Units, including State Transit’s OHS Committees are recognised as playing an Depots); and important role in ensuring a safe workplace for everyone. the organisation to remind employees of the importance, Western Sydney Buses 48 OHS Committees provide the forum for employees to assist and our commitment, to safety. • Safety Advisors (to assist in SMS implementation and State Transit to make more informed decisions by sharing hands-on support). Key Areas of Focus ideas and making recommendations regarding health and Financial Statements 50 Operational Standards for key hazard areas will be This structure will promote a consistent and proactive safety issues. State Transit Authority developed in consultation with employees and management approach to safety across the organisation, with the flexibility of New South Wales 52 Introduced in 2009, OHS Committee members have now representatives. These include: to focus specific resources to an area, project or issue as been allocated time to perform their OHS role which includes State Transit required. Recruitment for the new positions commenced in duties such as conducting and preparing for OHS Committee • workplace violence and bullying; Authority Division 102 July 2009. Meetings, completing workplace inspections, assisting with • manual handling; Western Sydney Safety Training risk assessments, reviewing safe work instructions, and Buses Division 123 following up safety issues. • slips, trips and falls; In 2009 a major project commenced to support the new SMS. This project will determine safety competencies for all State Transit conducted its first bi-annual OHS Committee • physical work environment; Appendices 144 positions in State Transit, and introduce structured needs Chairperson Meeting in 2009. These meetings are analysis, planning and training programs at all levels. This designed to facilitate discussion between OHS Committee • collision prevention; comprehensive process aims to address gaps in training Chairpersons and senior management about safety in order Index 179 competency and build the overall safety capability of to provide organisation wide consultation, solution sharing • plant and equipment; the organisation. and learning on safety matters. Attendees conducted risk • shift work and fatigue management; assessments to determine the top 10 hazard priorities at State Transit. The hazards identified will be addressed in the • personal protective equipment; Operational Standards to be developed within the SMS. • hazardous substances and dangerous goods; and
• working at heights.
32 State Transit Authority of New South Wales - Annual Report 2008/09 33 People
Contents Key Objectives Performance Learning and Development Letter to the Minister 2 • To inspire, develop and support each other. In 2008/09 the Learning and Development team Chaiman and Chief implemented a needs-based, outcomes-focused approach Executive’s Foreword 3 to training and development. About State Transit 4 The Strategic Plan and the analysis of State Transit’s needs, Network Maps 7 drive all learning activities. Continuous improvement is Performance Highlights 10 Key Benefit achieved through formal review of programs and outcomes. • Developing productive and The past year has seen some significant development Year In Review 14 projects to support State Transit’s four pillars - Customer motivated staff. Service, People, Competitive Business and Safety. Customer Service 16 Environment 26 Safety 28 People 34 Key Performance Indicators Competitive Business 42 Western Sydney Buses 48 • Improved staff retention
Financial Statements 50 • Improved staff job satisfaction State Transit Authority • Improved staff learning of New South Wales 52 State Transit • Improved willingness to make Authority Division 102 tough decisions Western Sydney Buses Division 123 Bus Operator Training State Transit aims for excellence in training its bus operators. Appendices 144 Its comprehensive Driver Training Program includes: • a nationally accredited traineeship program for all new bus operators; Index 179 • an annual two-day Skills Development Program for experienced bus operators; and
• tailored, specific one-on-one training and assessment for identified training needs.
Traineeships To ensure that bus operators have benchmarked competency levels to national industry standard, all new bus operators achieve a Certificate III in Transport and Logistics (Road Transport) through a two-year traineeship program.
34 State Transit Authority of New South Wales - Annual Report 2008/09 35 People
State Transit also offers longer-term bus operators the Leadership Development Programs State Transit currently oversees the following qualifications: Contents opportunity to become qualified through the Existing Worker State Transit’s Leadership Development Strategy provided Traineeship Program. • Certificate III in Transport and Distribution (Road development options for all levels of managers and leaders. Letter to the Minister 2 Transport); The new Certificate III in Transport and Logistics Program was The keystone of the strategy was the Leading Cultural Chaiman and Chief developed with extensive consultation and implemented in Change Program, led by the Executive Committee, which • Certificate III in Transport and Logistics (Road Transport); Executive’s Foreword 3 November 2008. This industry-leading program emphasises aimed to foster and develop constructive leadership • Certificate IV in Frontline Management; and About State Transit 4 ‘real-time’ workplace training, reducing off-the-job rostering. behaviours at all levels, to support business and customer It has an enhanced focus on safety ensuring that key skills service outcomes. Network Maps 7 • Ten units from the Certificate IV in Training and are learned and competency is assessed at multiple points Another key focus was the Supervisor Development Assessment. Performance Highlights 10 throughout the program. Program. Fifty-seven operational supervisors attended the In 2008/09 State Transit put in place a comprehensive new Supervisor Essentials course, comprising four days of Year In Review 14 feedback process to ensure the quality and continuous workshops and workplace application tasks. improvement of the Traineeship Program. Customer Service 16 On completion of the Supervisor Essentials course, Environment 26 Achievements in 2008/09 included: supervisors are eligible to apply for the Certificate IV in Apprenticeships Frontline Management Program. This program commenced Apprenticeships are an essential element of State Transit’s Safety 28 • 799 bus operators successfully achieving their Certificate in June 2009 with 10 participants. maintenance operations. In 2008/09 State Transit recruited People 34 III. This is a 60% increase in completions from 2007/08; 20 heavy vehicle mechanic and body-building apprentices. In 2008/09 a further 34 managers completed State Transit’s Competitive Business 42 Recruitment of apprentices continued to reflect the diverse • 109 existing bus operators engaged in a recognition Management Development Program, bringing the total State Transit workforce, including women and mature- Western Sydney Buses 48 process for the Certificate III qualification. This represents a number of participants in this program to 70. aged apprentices. 12% increase from 2007/08; In addition to on-the-job training and TAFE, industry Financial Statements 50 • 635 new bus operators were enrolled into the Certificate Graduate Programs outplacements provide a valuable supplement to apprentice III program. This represents a 24% increase in enrolments To support State Transit’s succession planning strategy, the State Transit Authority training. Several State Transit apprentices gained industry State Transit achieved many milestones during the last from 2007/08; and Graduate Program has increased its graduate intake by of New South Wales 52 experience and training at external businesses specialising in 12 months including: 300% since 2004. areas such as repair and overhaul of air brakes, transmission State Transit • 865 bus operators are currently enrolled in the Certificate repair and rebuilding, bus, coach and truck body • full compliance to the AQTF2007 Standards for RTO Authority Division 102 III program. This is a 7% increase in participation from New recruits spend two years gaining valuable on-the-job refurbishment, and overhaul and repair of injector pumps. Operation; 2007/08. experience through a variety of rotational work placements Western Sydney designed to provide exposure to challenging projects with the Buses Division 123 Six apprentices gained permanent employment with State • implementation of a continuous improvement focus for all Bus Operator Skills Development Program support of State Transit management and work colleagues. Transit as Engineering Repair Tradespersons, bringing RTO operations; and established knowledge and understanding of our customers The Bus Operator Skills Development Program is an industry- The range of the specialist programs has increased from three Appendices 144 and business objectives. • the development of a Quality system, including a full leading program aimed at maintaining and updating the skills to 13 different programs, recognising that the graduates are compliment of RTO related procedures, work instructions and knowledge of experienced bus operators. The program, seen as a valuable addition to all parts of the business. and forms. now in its second round, is facilitated by experienced and Bus Maintenance and Engineering Training Index 179 During this two-year program, each graduate has access to expert bus operators, and includes sessions by subject matter To help support State Transit’s extensive fleet replacement experts on road rules and driving skills, OHS, equity and a wide range of training courses, job rotations and industry Operations Traineeship exchange programs. Each graduate is mentored and given program, comprehensive training was delivered to bus diversity, customer service and personal safety. The State Transit Operations Traineeship Program was formal feedback on their performance throughout the maintenance and engineering staff. This training also launched in 2008/09 to provide a pool of trained people to To improve driving skills, State Transit uses a state-of-the-art program. They also attend a series of professional workshops allowed State Transit to meet the requirements of the Motor take up an array of operational roles and support the depot computer-based driver diagnosis and assessment system, to help build their skills in change management and business Vehicle Repair Act, Occupational Health and Safety Act and restructure that came into effect in November 2008. which is aligned to international and RTA competency performance. Regulations and the Passenger Transport Regulation. standards. The VIGIL Vanguard system monitors and visually Eleven trainees have been allocated to depots across all At the end of this program, many past graduates have records the bus operator’s traffic decisions and positioning, regions to undertake a series of structured placement gained work in State Transit in senior officer and frontline Registered Training Organisation acceleration, braking and cornering activity whilst driving. rotations in key operational positions. Relevant on-the- management positions including Depot Manager, Duty The State Transit Authority of NSW is accredited as a Bus operators receive a comprehensive debrief and analysis job training and support is provided, with trainees also Manager and Staff Supervisor. Since 2004, 84% of Registered Training Organisation (RTO) by the NSW of their driving, and are supported with further training undertaking formal study with TAFE to complete a Certificate graduates have chosen to stay with State Transit to further Vocational Education and Accreditation Board to deliver where required. IV in Frontline Management qualification. their careers. nationally recognised training and qualifications, as part of the National Training Framework.
36 State Transit Authority of New South Wales - Annual Report 2008/09 37 People
Operational Training extensive equity and diversity awareness training and Retreat Spaces In other areas, State Transit has achieved success with Contents communication strategies. women representing 49% of corporate staff, 24% of the top Comprehensive training has been delivered to all State Transit demonstrates its commitment to ensuring four salary bands (excluding the Senior Executive Service) and operational staff under the new Depot Operations Support employees from culturally diverse backgrounds can meet Letter to the Minister 2 17% of the Senior Executive Service. Structure Review. Equity and Diversity Training their religious obligations whilst at work. With 10 established Chaiman and Chief retreat spaces across the organisation, employees can Annual Women’s Conference Executive’s Foreword 3 Each Corridor Supervisor, Staff Supervisor, Duty Manager and Equity and Diversity Training continued to be a key initiative utilise these spaces for religious, spiritual or contemplative Duty Officer has taken part in training to support them in for State Transit. The Annual Women’s Conference was held in August 2008 About State Transit 4 purposes. their new roles. where 100 women attended from various parts of the Network Maps 7 Emphasis was placed on training employees in employment organisation. The theme of the conference was ‘Supporting Technical training included both on and off-the-job activities and customer service equity and diversity issues. This Careers for Women in State Transit’ and focused on Performance Highlights 10 Sydney Gay and Lesbian Mardi Gras and assessment of competence by experienced operations ensures our employees have a high level of awareness and recruitment, learning and development, mentoring and To celebrate the diversity of our employees and customers, staff. A number of other development activities were compliance with anti-discrimination legislation and the communication. State Transit participated in the Sydney Gay and Lesbian conducted which aimed to improve communication and Metropolitan and Outer Metropolitan Bus System Contracts. Year In Review 14 Mardi Gras in March 2009. Approximately 90 employees customer focus, business leadership, safety management and Spokeswomen Program During the 2008/09 financial year, a total of 195 Equity and their friends marched in the parade under the banner Customer Service 16 effective implementation of policy and procedures. The Spokeswomen Program, a targeted program which and Diversity Training sessions were conducted and ‘A diverse workforce moving a diverse community’. provides career development and networking opportunities Environment 26 attended by 2,257 employees. Training sessions were held In all, 171 people have taken part in this development for women bus operators, continued during 2008/09. at Strawberry Hills (Head Office) and a number of depots, State Transit’s entry featured a new low-emission, Safety 28 program. A strategy has been put in place to deliver a The spokeswomen meet bi-monthly and represent 13 bus including Brookvale, Hamilton, Kingsgrove and Ryde. Equity environmentally-friendly bus that was decorated by People 34 similar level of training to any new entrants into these depots. During the year, spokeswomen played an active part and Diversity training has been integrated into various employees in the Mardi Gras theme “Nations United” and operational positions. in co-ordinating International Women’s Day and Harmony Day Competitive Business 42 mainstream training programs. named “The Rainbow Bus”. celebrations at depots, and assisted in preparing State Transit’s Western Sydney Buses 48 Improving the Quality of our Trainers entry into the 2009 Sydney Gay and Lesbian Mardi Gras. Women In 2008/09 a range of measures were put in place to Grievance Management Strategic Plan for Women Representation of Women in State Transit Financial Statements 50 ensure the quality of trainers and assessors at State Transit. Through our Grievance Resolution Policy and Procedures, State Transit’s Strategic Plan for Women – ‘Attracting, employee grievances are resolved at the local level in the first State Transit, as part of the transport industry, has many State Transit Authority All Bus Operator Trainers have taken part in professional Developing and Retaining Women 2009-2013’ - is planned instance. When this is not achieved, or if the grievance is occupations that are non-traditional for women and are of New South Wales 52 development activities, including upgrading their for release at the next Women’s Conference in October 2009. qualifications in line with the new Certificate IV in Training of a serious nature, matters can be referred to the Workforce predominantly 24/7 shift work positions. Bus operators make State Transit and Assessment. Change, Culture and Equity Unit for management of up 78% of our entire workforce, and women represent The Plan includes relevant NSW Government initiatives Authority Division 102 the grievance. 9% of all bus operators. At State Transit, women also outlined in its publication ‘Making the Public Sector Work Structured training plans are in place for all new trainers, Western Sydney work in depots as Depot Managers, Duty Managers, Shed Better for Women 2008-2012’, and initiatives that have been who are given quality training and feedback throughout the The Grievance Resolution Policy and Procedures were Buses Division 123 Drivers, Schedulers, Rosterers, Heavy Vehicle Maintenance developed through extensive consultation with women in process of becoming qualified. developed in 2005 and have resulted in a downward trend Tradespersons and Apprentices. State Transit, many who work in non-traditional occupations of matters being referred onto the Unit. The two key factors for women. that have resulted in the downward trend are the increased Currently, women represent 11% of State Transit’s total Appendices 144 Workforce Change, Culture and Equality awareness of employee responsibilities through training and workforce. The NSW Government’s benchmark for women The Workforce Change, Culture and Equity Unit provides an increased emphasis on grievances being resolved at the in non-traditional occupations is 17%. Index 179 leadership, expert advice and targeted programs. In particular, local level. The procedures are currently under review for it drives the planning and implementation of the Equity and reissue in 2009. Diversity Program. The Unit is responsible for the effective management of internal complaints and the development and implementation of Equity and Diversity Training. Communication Employees are able to contact the Workforce Change, Culture and Equity Unit via email, telephone, fax and a Respect at Work Program 24/7 telephone answering service to obtain information The Respect at Work Program aims to ensure that employees and advice on State Transit’s human resource policies and are valued, respected and the workplace is free from all procedures. To assist managers, employees and local union forms of unlawful discrimination, harassment and bullying. delegates, the Unit attends depots on a regular basis to It also ensures respect for the social and cultural discuss issues and to provide advice and assistance as backgrounds of all employees and customers. required. During 2008/09, the Unit made 117 visits to depots. Key messages are also communicated through State The key elements of the program include the equity and Transit’s internal newspaper, The Transit Times, posters and diversity policy and procedures, grievance management, through our electronic CHATS systems at depots.
38 State Transit Authority of New South Wales - Annual Report 2008/09 39 People
Aboriginal and Torres Strait Islander The new process resulted from extensive research into The program includes cyclical 12-month performance Staff Recognition Scheme Contents selection tools used by other transport companies in agreements discussed and agreed between Senior Officers Employment The Recognition Program for State Transit employees Australia and overseas and a review of research into the and their manager. It also includes formal progress reviews commenced in 2005, to celebrate success and achievement, Letter to the Minister 2 The representation of Aboriginal and Torres Strait Islander people-attributes linked to customer service and safe driving. at six months and 12 months, with salary/increment results and to support State Transit’s business directions. people in State Transit remained at 0.9% despite targeted linked to assessment outcomes. Chaiman and Chief recruitment through the NSW Government’s Cadetship The new selection methods include: The program is based on three ‘tiers’ of recognition: Executive’s Foreword 3 Program for Aboriginal and Torres Strait Islander people and An evaluation of the program commenced in June 2009, to • two surveys: About State Transit 4 State Transit’s Graduate and Apprenticeship programs. monitor and improve program effectiveness. It is anticipated 1. An annual organisation-wide program, culminating in that this program will support a performance culture that is Network Maps 7 o The Inventory of Driving Related Personality Traits; and a formal annual awards function; State Transit’s key strategies for increasing the representation focused to achieve business goals and priorities. Performance Highlights 10 of Aboriginal and Torres Strait Islander people involve o The Bus Operator Selection Survey; and 2. Regular regional/depot and divisional activities increased stakeholder consultation and the targeting of conducted on a quarterly or monthly basis; and positions in all entry level recruitment programs which • an interview. Depot Operational Supervision and Year In Review 14 includes bus operators, graduates, apprentices, operational Support Review 3. Day-to-day praise and feedback in the workplace Customer Service 16 trainees and cleaners. The two surveys to be used were validated in a research to employees from managers and supervisors. project conducted by State Transit in 2008. This research From July 2008 to June 2009, the Depot Operational Environment 26 project involved 100 bus operators who were asked to Supervision and Support Review was implemented. The The Annual Awards function was held on Monday, purposes of this review related to: 24 November 2008 at Level 41, Governor Macquarie Tower. Safety 28 Reasonable Adjustment Policy complete a number of selection surveys. The results of the The Reasonable Adjustment Policy assists in responding to surveys were compared to at-fault accidents and customer This function recognised the outstanding contributions of People 34 • Customer service – to improve management, co-ordination five work teams and 45 individuals. individual adjustment needs of current and future employees complaints and correlations were established between some and delivery of day-to-day services to meet Bus System Competitive Business 42 of the survey scales and job performance. who have a disability or acquire a disability. Contract requirements; Waverley Depot was awarded most improved depot of the Western Sydney Buses 48 Development of the policy commenced during 2009 with the The new selection process will allow for a broader number of year, and the Randwick Maintenance Workshop won the • Safety – to support the safety program, by providing most improved maintenance workshop award. review of current procedures, and consultation with internal job related criteria to be assessed and hopefully, provide an an improved supervision framework that promotes safe- and external stakeholders. improved rate of successful job matching and retention. Financial Statements 50 driving and incident management; A new award, the Eco-Driving Challenge Award was introduced. In line with State Transit’s aim to achieve a State Transit Authority State Transit is a member of The Australian Employers’ • People – to bolster the supervision, communication, carbon neutral status by 2020, State Transit ran a ‘smooth of New South Wales 52 Network on Disability and participated in the Reasonable Enterprise Agreements and Awards feedback and support for bus operators; and Adjustment Working Group that has representation from operator’ competition to encourage all bus operators to State Transit During 2008/09, wage negotiations for a number of the private and public sectors as well as not for profit • Competitive Business – to make better use of our resources drive smoothly and save fuel. This award was won by Authority Division 102 employee groups within State Transit were commenced or Waverley Depot. organisations. concluded, including: and increase flexibility in front-line support roles. Western Sydney Please see Item 39 in the appendices for a full list of 2008 Buses Division 123 • Senior and Salaried Officers; The review involved significant job redesign affecting Bus Operator Recruitment around 150 depot-based positions and was steered by Annual Award recipients. Sydney Depots • Trades staff within the Maintenance Division; a Joint Consultative Committee Appendices 144 involving management and There were 645 new bus operators appointed to Sydney • Bus Operators and related classifications; and union representatives. depots in 2008/09. As a result, the total number of bus • Western Sydney Buses. Index 179 operators increased by 180. The establishment (the optimum Implementation planning number of bus operators required for Sydney depots) included extensive staff All wage negotiations were conducted under the NSW increased by 38. At the end of June 2009 staffing across briefings and communication. Government 2007 Wages Policy, which provides for a 2.5% Sydney depots was at full establishment. Following staff redeployments cost of living adjustment, with an increase above the 2.5% and appointments, effective in Newcastle Depots cost of living adjustment to be funded through employee- November 2008, a structured related cost savings. There were 17 new bus operators employed in Newcastle training strategy commenced, in 2008/09. The establishment remained constant during and compulsory Phase 1 the year. At the end of June 2009, staffing across Newcastle Performance Agreements for Senior segments of the training depots was at full establishment Officers program were completed by June 2009. Further training will In order to strengthen performance management, career be provided during 2009/10. New Recruitment Process for Bus Operators enhancement and professional development, State Transit’s A new selection process for bus operators was implemented Performance Agreements Program for Senior Officers from June 2009. commenced in March 2008.
40 State Transit Authority of New South Wales - Annual Report 2008/09 41 Competitive Business
Contents Purpose Performance
Letter to the Minister 2 • To build our competitiveness Financial Review 2008/09 Chaiman and Chief as a business State Transit achieved a net profit of $12.2 million in the Executive’s Foreword 3 2008/09 financial year. A change in accounting policy • To win the Bus System Contracts during the year resulted in the recognition of the net About State Transit 4 superannuation actuarial losses directly in equity (refer to the Network Maps 7 when they are offered for renewal statement of recognised income and expense). Performance Highlights 10 Total revenue grew by $18.7 million (3.3%) from the previous year to $587.2 million. This growth can be attributed to higher operational revenue received from the Outer/ Year In Review 14 Key Benefit Metropolitan Bus System Contracts (O/MBSC) of Customer Service 16 $18.1 million, which comprises:
Environment 26 • Cleary demonstrating improved • an increase in fixed payments of $1.2 million; Safety 28 ‘value for money’ • an Increase in patronage benchmark payments of People 34 $1.4 million; Competitive Business 42 • an increase in service kilometre payments of $10.3 million; Western Sydney Buses 48 and Key Performance Indicators • an increase in new bus interest payments of $4.2 million. Financial Statements 50 • Increasing profitability Non-O/MBSC operational revenue fell by $2.7 million. State Transit Authority The main cause was a reduction in bus charter activities. of New South Wales 52 • Increasing investment to meet State Transit Total expenditure increased by $31.2 million (5.7%) from the Authority Division 102 our future obligations previous year to $575.0 million and may be attributable to two main factors: labour and fleet running expenses. Western Sydney • Maximising asset utilisation Buses Division 123 The increase in labour costs was due to a 4% increase in pay rates for bus operators and the hiring of additional bus operators. Appendices 144 An accelerated maintenance program to accommodate the increasing bus fleet numbers was the main reason behind Index 179 the 4.3% increase in fleet running expenses.
Capital Expenditure State Transit’s capital expenditure in 2008/09 increased by $63 million (78.8%) to $142.9 million. Of this expenditure, $104.8 million was spent on the acquisition of new buses and chassis; $5.1 million spent on the purchase of CCTV cameras; and $36.5 million spent on the redevelopment of Brookvale, Ryde and Leichhardt depots.
The bus acquisition and replacement program will ensure the average fleet age continues to go down in order to meet
42 State Transit Authority of New South Wales - Annual Report 2008/09 43 Competitive Business
Contents the requirements of State Transit’s operating contracts with NSW Transport and Infrastructure makes monthly payments Information Technology Infrastructure State Transit uses AS/NZS 4360:2004 Risk Management to NSW Transport and Infrastructure issued under the Passenger to State Transit representing fixed costs, depreciation change State Transit recognises the value in investing in Information improve decision-making and to minimise the impact of any Transport Act 1990. These contracts require an average fleet payment, fuel cost payment, service payment, patronage Technology Infrastructure and electronic service delivery event that may affect operational activities, its reputation, Letter to the Minister 2 age of not more than 12 years by 2009/10. State Transit’s benchmark, patronage change and new fleet periodic management systems including: compliance with its regulators or the safety and security of Chaiman and Chief average fleet age was 11.64 years as of 30 June 2009. payments. its employees, passengers or other road users. State Transit Executive’s Foreword 3 • a significant investment in refreshing aged Information takes a ‘top down approach’ to risk management. Managers State Transit’s net payment received from the NSW One of the major milestones under the contracts and Technology Infrastructure to provide improved are responsible for identifying and managing risks within About State Transit 4 Government, including those under the O/MBSC, increased bus operator accreditation is the need for an audit to be performance of business critical applications such as their areas of control. by $12 million (4.7%) from the previous year to $284.9 undertaken by an external NSW Transport and Infrastructure Network Maps 7 fleet maintenance, service planning and scheduling million. This increase was mainly due to the escalation approved auditor. This was successfully completed in and rostering; State Transit has appointed a designated Risk Manager Performance Highlights 10 of contract O/MBSC payments and increasing new bus September 2008, for the four Sydney contract region to integrate all risk programs and activities across various payments. accreditations and for Western Sydney Buses. • improving the security, integrity, confidentiality and business units into a single Enterprise Risk Management availability of our information; and Framework. An executive Governance and Risk Committee Year In Review 14 has been set up with a view to oversee the implementation Customer Service 16 Financial Debt Position Information Technology Management • alignment with Information Technology industry best and operation of that framework. State Transit’s financial debt increased to $179.1 million. Electronic Service Delivery practice frameworks around service delivery, enterprise Environment 26 architecture and project management. Service delivery is paramount to State Transit’s success. The higher debt was necessary to accelerate the acquisition In its pursuit of improved business processes, State Transit State Transit recognises that services are provided in an Safety 28 of new buses and depot redevelopment. continues to realise the many opportunities that are available Information Security environment that may be affected by many factors outside People 34 from electronic business systems, including: In 2008/09, a program was initiated to review and improve its control. State Transit has a Crisis Management Plan for Competitive Business 42 Equity • improved analysis and processing tools for passenger and State Transit’s Information Security Management System effective management of serious incidents. To facilitate the Western Sydney Buses 48 State Transit’s net worth decreased by $23.2 million vehicle travelling and location information, that provide (ISMS) capabilities, and to align with ISO 27001. provision of services during recovery from unplanned adverse reports to enhance the review and on-going improvement events, State Transit has a series of Business Continuity Plans. (8.4%) from the previous year to $253.6 million. The The ISMS has delivered the mechanisms for the operation of of bus services; negative change was due to the impact of recognising the an improved ISMS through documentation and working with Financial Statements 50 superannuation actuarial losses. • better management of the maintenance of our bus fleet, key staff to implement more effective practices. The next Emergency Response Plans State Transit Authority through a more efficient method for monitoring the status phase of the program will implement the new ISMS with In 2008/09 State Transit published revised Emergency of New South Wales 52 Bus System Contracts of buses (booked up for work or available for service) a view to achieve certification under ISO 27001. Management and Crisis Management Plans to ensure that State Transit State Transit provided its services for the fourth year under within a depot, by replacing the manual paper-based with critical incidents are managed effectively. State Transit also Authority Division 102 the new Outer/Metropolitan Bus System Contracts issued by an electronic system; and ISO 9001:2008 Certification has a series of Business Continuity Plans to facilitate timely recovery from incidents, ensuring minimal disruption Western Sydney NSW Transport and Infrastructure. • a cost effective alternative to replace the Dataspeed The continuous improvement of State Transit’s Quality Buses Division 123 to services. State Transit has four contracts for the Sydney region system that has provided an improvement to the issuance Program during 2008/09 has ensured that State Transit covering Regions 6,7,8 and 9. These seven-year contracts of yearly and quarterly passes in Ticketing Services. remains a Quality Endorsed Company. The independent A new position titled Security Coordinator was created auditor, SAI Global, carried out its re-certification audits during 2008/09 to coordinate security related issues within Appendices 144 commenced on 1 July 2005. State Transit also has one Outer Metropolitan Bus System Contract for the operation of in compliance with the ISO 9001:2008 standard and State Transit. The creation of this position will further Newcastle Buses in Newcastle. This contract commenced recommended that State Transit maintain its quality enhance State Transit’s position with regards to ISO ongoing certification. Index 179 on 1 July 2006, also for a period of seven years. compliance and accreditation. State Transit is enhancing its Business Management System To test the business knowledge of the Emergency to prepare for integration of the Safety Management Management, Crisis Management and Business Continuity System. This additional functionality will provide safe, plans and its response to escalating incidents, State Transit standardised work practices for all staff. New technology has developed a framework of depot, regional and corporate will be introduced to allow bus operators, mechanics and desktop exercises including: cleaners to access this system from State Transit’s Internet cafés at depots. • engaging more closely with Local Emergency Management Committees to further refine its response to the Sydney Emergency Plan; Risk Management • continued engagement with other agencies at a State, State Transit recognises risk is inherent in its business and Command and Operational level in desktop exercises to that efficient and effective management of risk provides test agency response to an emergency incident; greater certainty and is central to achieving business objectives.
44 State Transit Authority of New South Wales - Annual Report 2008/09 45 Competitive Business
• further contributions to Crime Prevention Partnerships in insurance brokerage and claims management services for all Bus Depot Strategy Investigations have focused on the refurbishment of the Contents the Eastern Beaches Local Area Command and a combined assets. The program provides cover for damage to general site for use as a fully operational depot to house the new State Transit’s Bus Depot Strategy for 2008/09 assessed Kings Cross, City Central and Surry Hills Local Area property, personal injury, consequential loss, motor accidents, Metrobus fleet. future depot capacity, taking in to account additional Letter to the Minister 2 Command Crime Prevention Partnership; and professional risks, marine hull and liability. State Transit’s patronage, the replacement of the fleet with longer buses insurance program has maintained competitive premiums as Western Region Greenfield Site Chaiman and Chief and future fleet growth. • engaging at the local level at the Manly Davidson Local a result of quotations from the insurance market based on Growth in Western Sydney has led to the need to establish a Executive’s Foreword 3 Area Command by providing additional public transport the Authority’s risk profile. To ensure State Transit can continue to cater for fleet greenfield site to house a new depot in the Western Region. About State Transit 4 for the late night exit surge due to closure of hotels. replacement and patronage growth, strategies were The Compulsory Third Party Insurance for the bus fleet of A number of possible sites have been identified for Network Maps 7 identified to increase capacity, with a number of projects more than 2,000 buses is provided by Zurich Australian consideration. underway or nearing completion by the end of the 2008/09 Performance Highlights 10 Insurance Insurance Pty Ltd in accordance with legislation regulated financial year. State Transit’s mature insurance program provided financial by the Motor Accident Authority, with rating 6c for State Randwick Depot protection for the organisation during the year. Based on a Transit buses. Leichhardt Depot Redevelopment In March 2009, Randwick Depot’s staff car park was relocated Year In Review 14 to a new site adjacent to the depot. This move provided public tender in 2008, State Transit issued a new contract for The redevelopment of Leichhardt Depot continued through- improved secure undercover parking facilities for staff and Customer Service 16 out 2008/09 and is due for completion in September 2009. allowed for an additional 12 buses to be parked on the site. Environment 26 The redevelopment of the depot will make way for one Safety 28 of Australia’s largest environmentally-friendly bus fleets, Revenue Protection Unit People 34 supporting more than 200 buses and resulting in an additional 96 bus parking spaces. In 2008/09 State Transit stepped up the level of revenue Competitive Business 42 enforcement activities across its bus network, particularly Western Sydney Buses 48 Brookvale Depot Redevelopment targeting PrePay-only routes and early morning and late Work on the new Brookvale Depot continued during night services. 2008/09, with the first stage of the upgrade completed Financial Statements 50 in June 2009. This has provided a new two-storey Revenue Protection Officers checked more than 956,000 passengers, a 14% increase on the previous year. This State Transit Authority administration building for staff, including training, staff amenities and recreation space. increase led to a 45% rise in the number of fines issued from of New South Wales 52 9,220 in 2007/08 to 13,383 in 2008/09. State Transit The second stage of the upgrade, due for completion by Authority Division 102 the end of 2009, involves the demolition of the existing Whilst a significant increase was recorded in the number of passengers checked and the number of fines issued, the Western Sydney administration building, to provide more room for bus movements inside the depot, as well as parking and storage. percentage of passengers caught fare evading increased only Buses Division 123 marginally from 1.1% to 1.4% in 2008/09. This indicates a The depot upgrade will provide increased capacity for up to successful restriction of fare evasion in 2008/09 by Revenue Protection Officers. Appendices 144 47 additional buses. Ryde Depot Redevelopment Additional measures aimed at reducing fare evasion include: Index 179 During 2008/09, work continued on the redevelopment • attendance by Revenue Protection Officers at universities of Ryde Depot. and colleges during admission periods, to better inform Construction work already complete includes the new students of the correct tickets and passes to use on State Regional Office, new meal and locker facilities, new Transit services; administrative offices and new staff car parking facilities. • attendance by Revenue Protection Officers at schools The full depot redevelopment is expected to be complete to educate students about tickets, passes and the NSW by mid 2010. Transport and Infrastructure code of conduct, aimed at reducing anti-social behaviour, vandalism and fare evasion Tempe Depot Site on buses by school students; and State Transit continued investigations into the use of the • joint operations between Revenue Protection Officers and old Tempe Depot site to cater for the future expansion of police officers targeting antisocial behaviour including the fleet. drinking alcohol on buses, swearing, offensive behaviour, vandalism and graffiti.
46 State Transit Authority of New South Wales - Annual Report 2008/09 47 WesternWestern SydneySydney BusesBuses
Contents Objective Performance The 2008/09 financial year recorded a 3.8% increase in patronage on the Liverpool-Parramatta T-way with Letter to the Minister 2 T-way services in Western Sydney 2.6 million passengers travelling on T-way services. Chaiman and Chief provide: Executive’s Foreword 3 Since the Liverpool-Parramatta T-way began operations on 16 February 2003, more than 12.7 million passengers About State Transit 4 • High-speed services between have used the service. Steady patronage growth has been Network Maps 7 Liverpool and Parramatta, the recorded with patronage increasing from 10,000 passengers Performance Highlights 10 fastest growing CBD in Australia. per week to more than 55,000. To accommodate growing demand, a new timetable was • Ninety-five percent dedicated bus introduced in June 2009, adding eight new bus services to Year In Review 14 roadway with traffic light priority. the timetable and offering commuters greater convenience, Customer Service 16 flexibility and reliability when they travel. These eight extra Environment 26 • A low floor, air-conditioned, fully services are on top of four additional services added in May 2008. Safety 28 accessible bus fleet with next People 34 The new timetable has also resulted in substantial internal station announcements. efficiencies within the Western Sydney Buses cost structure. Competitive Business 42 Western Sydney Buses 48 • Real time information to T-way services are provided from 4.28am to 1.05am on weekdays, operating at a 2-6 minute frequency during peak passengers delivered via electronic periods. On weekends and public holidays, services are Financial Statements 50 displays at T-way stations. provided from 5.18am to 1.03am, operating at a 20-minute frequency. Services operate for an extra hour on Friday and State Transit Authority Saturday evenings. of New South Wales 52 State Transit Targets The popularity of the Liverpool-Parramatta T-way continues Authority Division 102 to grow with more passengers joining these services each week. Western Sydney • Compliance with all contract Buses Division 123 targets set by NSW Transport and This is a ringing endorsement for the bus-only T-way with more and more families and commuters across Western Infrastructure Transitway group. Sydney jumping on board every day. Appendices 144 Western Sydney Buses is a subsidiary corporation of the State Transit Authority of NSW. One hundred percent of shares Index 179 are held by State Transit and the sole director is the Chief Executive, Mr Peter Rowley.
Liverpool-Parramatta T-way Monthly Patronage - Year on Year
48 State Transit Authority of New South Wales - Annual Report 2008/09 49 Contents
Letter to the Minister 2 Chaiman and Chief Executive’s Foreword 3 About State Transit 4 Network Maps 7 Performance Highlights 10
Year In Review 14 Customer Service 16 Environment 26 Safety 28 People 34 Competitive Business 42 Western Sydney Buses 48
Financial Statements 50 State Transit Authority of New South Wales 52 State Transit Authority Division 102 Western Sydney Buses Division 123
Appendices 144
Index 179 Annual Financial Statements for the year ended 30 June 2009
50 State Transit Authority of New South Wales - Annual Report 2008/09 51 Contents
Independent Auditor’s Report 54 Notes to and forming part of the financial statements 1. Summary of significant accounting Income statement 56 policies 60 2. Income and expenses 70 Balance sheet 57 3. Income tax 73 Contents 4. Cash and cash equivalents 74 Statement of recognised income 5. Trade and other receivables 75 and expense 58 Letter to the Minister 2 6. Inventories 76 Chaiman and Chief 7. Non-current assets held for sale 76 Executive’s Foreword 3 Cash flow statement 59 8. Other assets 76 About State Transit 4 9. Property, plant and equipment 77 Network Maps 7 10. Losses on disposal of assets 80 Performance Highlights 10 11. Intangibles 80 12. Deferred tax assets 80 Year In Review 14 13. Trade and other payables 81 Customer Service 16 14. Financial liabilities 81 Environment 26 15. Provisions 82 Safety 28 16. Deferred tax liabilities 89 People 34 17. Other liabilities 89 Competitive Business 42 18. Commitments 90 Western Sydney Buses 48 19. Western Sydney Buses 91 20. Financial instruments 93 Financial Statements 50 21. Related parties 99 State Transit Authority 22. Contingent liabilities 99 of New South Wales 52 23. Equity 100 State Transit Authority Division 102 24. Events after the balance sheet date 100 Western Sydney Buses Division 123 Statement by members of the Board 101 Appendices 144
Index 179 Financial Statements State Transit Authority of New South Wales
52 State Transit Authority of New South Wales - Annual Report 2008/09 53 Customer Service Annual Financial Statements State Transit Authority of New South Wales
Contents Independent Auditor’s Report for the year ended 30 June 2009 Letter to the Minister 2 Chaiman and Chief Executive’s Foreword 3 About State Transit 4 Network Maps 7 Performance Highlights 10
Year In Review 14 Customer Service 16 Environment 26 Safety 28 People 34 Competitive Business 42 Western Sydney Buses 48
Financial Statements 50 State Transit Authority of New South Wales 52 State Transit Authority Division 102 Western Sydney Buses Division 123
Appendices 144
Index 179
54 State Transit Authority of New South Wales - Annual Report 2008/09 55 Customer Service Annual Financial Statements State Transit Authority of New South Wales
Start of Audited Financial Statements
Contents Income Statement Balance Sheet for the year ended 30 June 2009 as at 30 June 2009 Letter to the Minister 2 Economic Economic Economic Economic Parent entity Parent entity Parent entity Parent entity Chaiman and Chief 2009 2009 2008 2008 2009 2009 2008 2008 Executive’s Foreword 3 Notes $’000 $’000 $’000 $’000 Notes $’000 $’000 $’000 $’000 About State Transit 4 Income Current Assets Network Maps 7 Cash and cash equivalents 4(b) 7,493 7,493 2,693 2,693 Operational revenue 2(a,b) 546,069 546,069 537,647 537,647 Performance Highlights 10 Trade and other receivables 5 27,824 27,824 17,926 17,926 Other income 2(c) 41,109 41,109 30,872 30,872 Inventories 6 9,079 9,079 9,583 9,583 Total income 587,178 587,178 568,519 568,519 Non-current assets held for sale 7 296 296 116 116 Year In Review 14 Other 8 764 764 717 1,020 Customer Service 16 Expenses Total current assets 45,456 45,456 31,035 31,338 Environment 26 Fleet running expenses 2(d) 93,793 93,793 89,916 89,916 Safety 28 Employee benefits 2(e) - 341,942 - 318,446 Non-Current Assets People 34 Personnel services 2(f) 415,235 - 365,237 - Receivables 5 193,134 193,134 93,599 93,599 Finance costs 2(g) 8,551 8,551 5,652 5,652 Competitive Business 42 Property, plant and equipment 9 462,495 462,495 464,864 464,864 General operating expenses 2(h) 102,576 130,687 105,195 129,770 Intangibles 11 1,013 1,013 1,738 1,738 Western Sydney Buses 48 Total expenses 620,155 574,973 566,000 543,784 Deferred tax assets 12 69,682 69,682 61,425 61,425 Gross profit from continuing activities before income tax (32,977) 12,205 2,519 24,735 Total non-current assets 726,324 726,324 621,626 621,626 Financial Statements 50 Income tax expense 3 - - - - Total assets 771,780 771,780 652,661 652,964 State Transit Authority Net profit from continuing activities (32,977) 12,205 2,519 24,735 of New South Wales 52 Net profit attributable to owners (32,977) 12,205 2,519 24,735 Current Liabilities State Transit The above statement should be read in conjunction with the accompanying notes. Trade and other payables 13 124,570 49,874 126,723 53,497 Authority Division 102 Financial liabilities 14 22,142 22,142 16,868 16,868 Western Sydney Provisions 15 1,274 75,970 2,704 76,233 Buses Division 123 Other 17 6,029 6,029 5,943 5,943 Total current liabilities 154,015 154,015 152,238 152,541 Appendices 144 Non-Current Liabilities Trade and other payables 13 135,904 - 89,517 - Index 179 Financial liabilities 14 156,933 156,933 61,093 61,093 Provisions 15 228 136,132 355 89,872 Deferred tax liabilities 16 71,104 71,104 72,637 72,637 Total non-current liabilities 364,169 364,169 223,602 223,602 Total liabilities 518,184 518,184 375,840 376,143
Net assets 253,596 253,596 276,821 276,821
Equity Reserves 23 125,302 125,302 126,986 126,986 Accumulated funds 23 128,294 128,294 149,835 149,835 Total equity 253,596 253,596 276,821 276,821
The above statement should be read in conjunction 56 State Transit Authority of New South Wales - Annual Report 2008/09 57 with the accompanying notes. Customer Service Annual Financial Statements State Transit Authority of New South Wales
Contents Statement of Recognised Income and Expense Cash Flow Statement for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 Economic Economic Economic Economic Parent entity Parent entity Parent entity Parent entity Chaiman and Chief 2009 2009 2008 2008 2009 2009 2008 2008 Executive’s Foreword 3 Notes $’000 $’000 $’000 $’000 Inflows Inflows Inflows Inflows About State Transit 4 Increase in revaluation of property, plant and equipment 23 262 262 - - (Outflows) (Outflows) (Outflows) (Outflows) Notes $’000 $’000 $’000 $’000 Network Maps 7 Income tax on revaluation of property, plant and equipment 23 (79) (79) - - Cash flows from operating activities Performance Highlights 10 Actuarial gains/(losses) on defined benefit plans 23 - (45,182) - (22,216) Receipts from customers 554,872 554,872 552,268 552,268 Income tax on superannuation actuarial gains/(losses) 23 - 13,555 - 6,665 Reimbursements from NSW Government 1,646 1,646 1,580 1,580 Net income/(expenses) recognised directly in equity 183 (31,444) - (15,551) Year In Review 14 Other income 50,253 50,253 37,970 37,970 Net profit from continuing activities (32,977) 12,205 2,519 24,735 Customer Service 16 Interest received 11,466 11,466 7,317 7,317 Total recognised income and expenses for the year (32,794) (19,239) 2,519 9,184 Payments to suppliers (571,969) (224,257) (536,454) (216,918) Environment 26 Payments to employees - (347,712) - (319,536) Safety 28 Effect of change in accounting policy Interest and other finance costs (6,869) (6,869) (5,879) (5,879) People 34 Profit for the period as reported in 2008 2,519 Net cash provided by (used in) operating activities 4(a) 39,399 39,399 56,802 56,802 Competitive Business 42 Change in policy - actuarial loss recognised directly in retained earnings 22,216
Restated profit for the period 24,735 Western Sydney Buses 48 Cash flows from investing activities The above statement should be read in conjunction with the accompanying notes. Purchases of property, plant and equipment (142,868) (142,868) (79,893) (79,893) Financial Statements 50 Proceeds from sale of property, plant and equipment 408 408 278 278 State Transit Authority Net cash provided by (used in) investing activities (142,460) (142,460) (79,615) (79,615) of New South Wales 52 State Transit Cash flows from financing activities Authority Division 102 Proceeds from/(repayment of) borrowings 100,900 100,900 1,999 1,999 Western Sydney Proceeds from finance leases 6,961 6,961 3,953 3,953 Buses Division 123 Net cash provided by (used in) financing activities 107,861 107,861 5,952 5,952
Net increase/(decrease) in cash and cash equivalents 4,800 4,800 (16,861) (16,861) Appendices 144 Cash and cash equivalents at the beginning of the year 2,693 2,693 19,554 19,554 Cash and cash equivalents at the end of the year 4(b) 7,493 7,493 2,693 2,693 Index 179 The above statement should be read in conjunction with the accompanying notes.
58 State Transit Authority of New South Wales - Annual Report 2008/09 59 Customer Service Annual Financial Statements State Transit Authority of New South Wales
Contents Notes to and forming part of the financial statements Notes to and forming part of the financial statements for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 Chaiman and Chief 1. Summary Of Significant Accounting Policies 1. Summary Of Significant Accounting Policies (Continued) Executive’s Foreword 3 (a) Reporting entity (d) Basis of consolidation About State Transit 4 The State Transit Authority of New South Wales (”Authority”) was established by section 20 of the Transport The consolidated financial statements of the economic entity comprise the Authority and its controlled entities. Controlled Administration Act 1988. It is domiciled in New South Wales, Australia. The Authority is owned by the State of entities include special purpose entities where the Authority has control over their financial and operating policies. Network Maps 7 New South Wales. Performance Highlights 10 The financial statements include the information and results of each controlled entity from the date on which the Western Sydney Buses (“WSB”) was incorporated on 12 July 2002 under the Transport Administration Act 1988 Authority obtains control and until such time as the Authority ceases to control the entity. as a fully owned public subsidiary corporation of the Authority. It provides bus transport services in the Western In preparing the consolidated financial statements, the effects of all transactions between entities of the economic entity Year In Review 14 Sydney region. have been eliminated. Customer Service 16 State Transit Authority Division (“STA Division”) and Western Sydney Buses Division (“WSB Division”), being special The financial statements of controlled entities have been prepared for the same reporting period as the parent entity, Environment 26 purpose entities, are Divisions of the NSW Government Service which commenced operations on 17 March 2006 pursuant to Part 2 of Schedule 1 to the Public Sector Employment and Management Act 2002. They assumed using consistent accounting policies. Safety 28 responsibility for the employees and employee-related liabilities of the former employers, the Authority and WSB, For clarity of presentation, on some pages where the notes of the parent entity and the economic entity are the same, respectively. Their operations are controlled by the Authority. The assumed liabilities were recognised on 17 March 2006 People 34 only the notes of the economic entity are reported. together with offsetting receivables representing the related funding due from the Authority and WSB. Competitive Business 42 (e) Change in accounting policy Western Sydney Buses 48 The economic entity comprises the Authority, WSB, STA Division and WSB Division. In accordance with NSW Treasury policy TC 09/01 Accounting for Superannuation, the Authority has changed its policy In complying with the NSW Treasury’s accounting policy for distinguishing for-profit from not-for-profit entities, the on the recognition of superannuation actuarial gains and losses. Such actuarial gains and losses are now recognised Financial Statements 50 Authority has self-assessed its objectives and activities and determined that it is a for-profit public entity from 1 July 2005. outside of profit or loss in the ‘statement of recognised income and expense’. Previously, actuarial gains and losses were recognised through profit or loss. State Transit Authority The Authority’s principal activities are the provision of bus services in metropolitan Sydney and bus and ferry services in of New South Wales 52 Newcastle. The change in policy has been adopted on the basis that recognition outside profit or loss provides reliable and more State Transit relevant information as it better reflects the nature of actuarial gains and losses. This is because actuarial gains/losses are The financial report was authorised for issue by the Board on 19 October 2009. The report will not be amended and re-measurements, based on assumptions that do not necessarily reflect the ultimate cost of providing superannuation. Authority Division 102 reissued as it has been audited. Western Sydney The change in accounting policy increases the net profit/(loss) from continuing operations from ($32.977M) to Buses Division 123 (b) Statement of compliance $12.205M (2008: from $2.519M to $24.735M) by excluding from profit the superannuation actuarial loss line item The financial statements of the Authority, including the notes, comply with Australian Accounting Standards and (2009:$45.182M, 2008:$22.216M), along with the associated and offsetting income tax revenue of (2009: $13.555M, Interpretations, which include the Australian Equivalents to International Financial Reporting Standards (”AEIFRS”). 2008: $6.665M). This decreases the employee benefit expense of the economic entity by $45.182M (2008: $22.216M). Appendices 144 This item is now recognised in ‘statement of recognised income and expense’ rather than the ‘income statement’. The Authority has assessed the Australian Accounting Standards that have recently been issued or amended but are not yet effective or applied. It has been determined that these new accounting standards will have no material impact on the The aforesaid changes do not affect the Parent as it receives the personnel services. Index 179 financial statements in the period of initial application. (f) Revenue recognition (c) Basis of preparation Revenue is recognised when the Authority has transferred to the buyer the significant risks and rewards of ownership of The financial statements have been prepared as a general purpose financial report in accordance with the requirements of the assets or when services are provided. It must also be probable that the economic benefits will flow to the Authority the Public Finance and Audit Act 1983, the Public Finance and Audit Regulation 2005, Australian Accounting Standards, and that any costs incurred, or amount of revenue gained in respect of the transaction can be measured reliably. Revenue Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and applicable is measured at the fair value of the consideration received or receivable. The following specific measurement criteria Treasurer’s Directions and Treasury Circulars. Where there are inconsistencies between the requirements, the legislative also apply: provision prevailed. (i) Operational revenue The financial statements have been prepared on an accrual accounting basis using historical costs except for certain non- Operational revenue is recognised as revenue when it can be reliably measured, based on passengers travelled or current assets, which are recorded at fair value. For some classes of non-current assets, the fair value is the historical cost. services provided. Refer note 2(i) for more details. Other classes use market value or depreciated replacement cost.
The financial statements have been prepared on a going concern basis which assumes that repayment of debts will be met as and when they fall due, without any intention or necessity to liquidate assets or otherwise winding up the operations.
60 State Transit Authority of New South Wales - Annual Report 2008/09 61 Customer Service Annual Financial Statements State Transit Authority of New South Wales
Contents Notes to and forming part of the financial statements Notes to and forming part of the financial statements for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 Chaiman and Chief 1. Summary Of Significant Accounting Policies (Continued) 1. Summary Of Significant Accounting Policies (Continued) Executive’s Foreword 3 (f) Revenue recognition (continued) (i) Inventories About State Transit 4 (ii) Government grants Inventories are stated at the lower of the weighted average cost or net realisable value. Grants are recognised as revenues when the Authority obtains control over the assets. Usually control is obtained Network Maps 7 (j) Non-current assets held for sale upon the receipt of cash. Unspent grants are accounted for as liabilities if there is an in-substance contractual Performance Highlights 10 obligation to refund the unspent amounts. These assets are recognised at the lower of carrying amounts and fair values less costs to sell and are not depreciated or amortised while they are classified as held for sale. (iii) Investment income (k) Property, plant and equipment Year In Review 14 Interest income is recognised on a time proportion basis using the effective interest method. Customer Service 16 The following policies apply to property, plant and equipment: Operating lease income derived from commercial properties is recognised on a straight-line basis over the lease term. Environment 26 (i) Basis of valuation Safety 28 (g) Cash and cash equivalents The Authority has applied AASB 116 Property, Plant and Equipment in accordance with NSW Treasury Policy and Cash and cash equivalents are carried at principal amount and are subject to an insignificant risk of changes in value. Guidelines which require that non-current assets be measured at fair value. People 34 They include cash-on-hand, in the bank and investment in NSW Treasury Corporation’s Hour-Glass Cash facility. Competitive Business 42 The fair value of an asset is determined having regard to existing use and highest and best use on the basis of current Investment in the Hour-Glass Cash facility is represented by a number of units of a managed investment pool, which market selling prices for the same or similar assets. Where market selling price is not available, the asset’s fair value Western Sydney Buses 48 are redeemable at short notice. The value of the investment can decrease as well as increase depending upon market is valued at depreciated replacement cost. Depreciated replacement cost is determined by reference to the most conditions. The value that best represents the maximum credit risk exposure is the net fair value. appropriate modern, depreciated equivalent replacement asset that provides similar economic benefits.
Financial Statements 50 Bank Overdrafts are shown within borrowings in current liabilities in the balance sheet. Each non-current physical asset is revalued at least every five years to ensure that the carrying amount of each asset State Transit Authority in the class does not differ materially from its fair value at reporting date. Non-specialised assets with short useful of New South Wales 52 (h) Receivables lives are measured at depreciated historical cost, as a surrogate for fair value. When revaluing non-current physical Receivables are recognised initially at fair value and subsequently measured at amortised cost less a provision for assets, the gross amount and the related accumulated depreciation are separately restated. State Transit impairment. Prepayments represent amounts paid in advance for services where the benefit will be realised in Authority Division 102 a subsequent period. Where an asset’s carrying amount is increased as a result of a revaluation, the increase is credited directly to the asset Western Sydney revaluation reserve. However, the increase is recognised in the income statement to the extent that it reverses a Buses Division 123 In relation to trade receivables, the Authority minimises concentrations of credit risk by undertaking transactions with a revaluation decrease of the same asset previously recognised in the income statement. large number of customers. The majority of customers are concentrated in New South Wales in the newsagency business. Where an asset’s carrying amount is decreased as a result of a revaluation, the decrease is recognised in the income Appendices 144 All prospective trade debtors are assessed for credit risks in granting appropriate credit limits. In general, the settlement statement. However, the decrease is debited directly to the asset revaluation reserve to the extent of any credit term is set at no more than 21 days. balance existing in the asset revaluations reserve in respect of that asset.
The collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are Where an asset that has previously been revalued is disposed, any balance remaining in the asset revaluation reserve Index 179 written off as bad debts. in respect of that asset is transferred to accumulated funds.
62 State Transit Authority of New South Wales - Annual Report 2008/09 63 Customer Service Annual Financial Statements State Transit Authority of New South Wales
Contents Notes to and forming part of the financial statements Notes to and forming part of the financial statements for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 1. Summary Of Significant Accounting Policies (Continued) 1. Summary Of Significant Accounting Policies (Continued) Chaiman and Chief Executive’s Foreword 3 (k) Property, plant and equipment (continued) (k) Property, plant and equipment (continued) About State Transit 4 (ii) Depreciation/Amortisation (vi) Repairs & maintenance Network Maps 7 Property, plant and equipment and intangibles, excluding freehold land and work-in-progress, are depreciated/ The costs of routine maintenance and repairs are charged as expenses as incurred, except where they relate to the Performance Highlights 10 amortised over their estimated useful lives as follows: replacement of a component of an asset that increases the service potential of the asset, in which case the costs are capitalised and depreciated in accordance with note 1(k)(ii). Asset class Useful life Method (vii) Disposal policy Year In Review 14 Freehold buildings and wharves 40 years Straight line The gain or loss arising on disposal or retirement of an item of property, plant and equipment is determined Customer Service 16 Plant and equipment 3 to 20 years Straight line as the difference between the sale proceeds and the carrying amount of the asset and is recognised in the Environment 26 income statement. Intangibles 2 to 3 years Straight line Safety 28 (l) Intangibles Buses 15 to 20 years In line with the pattern of consumption of economic benefits People 34 Intangible assets, comprising computer software, which have finite lives, are recognised at cost and are amortised as Competitive Business 42 Ferries 35 years Straight line amortisation of intangible assets expense, on a straight-line basis over the period during which the benefits are expected to arise. Western Sydney Buses 48 The assets’ residual values, useful lives, amortisation and depreciation methods are reviewed, and adjusted if (m) Impairment appropriate, at the end of each reporting period. Where some buses operate for a period exceeding 20 years, their The carrying values of assets are reviewed annually for impairment where objective evidence, or changes in Financial Statements 50 depreciation rates are adjusted accordingly. circumstances, indicate the carrying values may not be recoverable or the assets previously impaired may be reversible. State Transit Authority (iii) Capitalisation policy If any such indication exists and where the carrying values exceed the estimated recoverable amounts, the impaired assets of New South Wales 52 Property, plant and equipment are recorded at the cost of acquisition. Cost is determined as the fair value of the would be written down to their recoverable amounts. Where the recoverable amounts exceed the values of the impaired State Transit assets given up at the date of acquisition plus costs incidental to the acquisition. Property, plant and equipment assets, a reversal is made to the extent of the previous write downs. Authority Division 102 costing $5,000 or more individually is capitalised. An impairment loss is recognised immediately in the income statement unless the relevant asset is carried at a revalued Western Sydney (iv) Work-in-progress Buses Division 123 amount in which case the impairment loss is treated as a revaluation decrease. Costs relating to property, plant and equipment, including buses, under construction are shown in the financial statements as capital work-in-progress and are not depreciated. (n) Payables Liabilities for trade creditors are recognised initially at fair value and subsequently measured at amortised cost using the Appendices 144 (v) Leasehold improvements effective interest rate method. The cost of leasehold improvements is amortised over the unexpired period of the lease or the estimated useful life of Index 179 the improvement, whichever is the shorter.
64 State Transit Authority of New South Wales - Annual Report 2008/09 65 Customer Service Annual Financial Statements State Transit Authority of New South Wales
Contents Notes to and forming part of the financial statements Notes to and forming part of the financial statements for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 1. Summary Of Significant Accounting Policies (Continued) 1. Summary Of Significant Accounting Policies (Continued) Chaiman and Chief Executive’s Foreword 3 (o) Financial liabilities (q) Employee benefits About State Transit 4 Borrowings are recognised initially at fair value. After initial recognition, borrowings are measured at amortised cost using (iii) Superannuation Network Maps 7 the effective interest rate method. The employees’ retirement benefits liability in respect of three defined benefit superannuation funds is recognised in full. The liability for employees’ retirement benefits is based on an actuarial assessment (refer note 15(b)). Actuarial Performance Highlights 10 Gains and losses are recognised in the income statement when the liabilities are derecognised or through the gains and losses are recognised outside of profit or loss in the ‘Statement of recognised income and expense’ in the amortisation process. year in which they occur. Year In Review 14 (p) Provisions The superannuation expense on defined benefit plans is recognised in income statement which is made up of current Customer Service 16 Provisions are recognised when the Authority has a present legal, equitable or constructive obligation to make a future service cost and interest cost less the expected return on fund assets. sacrifice of economic benefits to other entities as a result of past transactions or events and a reliable estimate of Environment 26 the amount of the obligation can be made. Contributions to the defined contribution plans are expenses when incurred. Safety 28 (q) Employee benefits (r) Reserves People 34 (i) Salaries and wages, sick leave and on-costs The asset revaluation reserve comprises revaluation increments/decrements recognised upon the revaluation of non- Competitive Business 42 Liability for salaries and wages is recognised and measured as the amount unpaid at the reporting date at current current physical assets. Upon disposal or retirement, any remaining revaluation increment of the asset at the time of Western Sydney Buses 48 pay rates in respect of employees’ service up to that date. disposal is transferred to accumulated funds.
The outstanding amounts of payroll tax, workers’ compensation and fringe benefits tax, which are consequential (s) Insurance Financial Statements 50 to employment, are recognised as liabilities and expenses where employee entitlements to which they relate have Appropriate insurances are purchased to cover material liability, physical damage, business interruption, and other State Transit Authority been recognised. exposures arising out of normal business operations. The Authority is a licensed self-insurer for workers’ compensation of New South Wales 52 claims under the New South Wales Workers Compensation Act. Broker advice is maintained to ensure a proactive (ii) Annual leave and long service leave response to changes in the operating environment. State Transit Provision has been made for benefits accruing to employees in relation to annual leave and long service leave Authority Division 102 estimated to be payable to employees on the basis of statutory and contractual requirements. Provisions are made for future costs associated with liability claims occurring in the financial year. These provisions are assessed at their present value by independent actuaries. Recoveries due under insurance arrangements are treated Western Sydney Annual leave entitlements, that are recognised as current liabilities, are measured at their nominal amounts based as receivables. Buses Division 123 on remuneration rates expected to be paid when the entitlements are settled. Long service leave obligations that are not expected to be settled within twelve months are assessed at present value by independent actuaries. The Appendices 144 unconditional component of the long service leave entitlements, for those employees currently employed for nine or more years at the reporting date, are classified as current liabilities.
Index 179
66 State Transit Authority of New South Wales - Annual Report 2008/09 67 Customer Service Annual Financial Statements State Transit Authority of New South Wales
Contents Notes to and forming part of the financial statements Notes to and forming part of the financial statements for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 1. Summary Of Significant Accounting Policies (Continued) 1. Summary Of Significant Accounting Policies (Continued) Chaiman and Chief Executive’s Foreword 3 (t) Income tax (v) Finance costs About State Transit 4 The Authority is subject to the National Tax Equivalent Regime under which it is required to pay taxation equivalent to Borrowing costs are expensed in the period in which they are incurred. Network Maps 7 the NSW Government. (w) Finance leases Performance Highlights 10 Tax-effect accounting is applied using the balance sheet method. The income tax expense, or benefit, for the period is the Where the Authority, as the lessor, transfers substantially all the risks and rewards of the buses to another entity, the tax payable on the current period’s taxable profit adjusted by changes in deferred tax assets and liabilities attributable to leased assets are recognised as current and non-current receivables at amounts equal to the net investment in the leases. amounts recognised as assets or liabilities and any unused tax losses. Year In Review 14 The lease receipt is recognised in two components, one as a reduction of the lease receivable and the other as finance Customer Service 16 Deferred tax assets and liabilities are recognised for temporary differences between the assets and liabilities for income. The finance income is calculated according to the interest rate implicit in the leases. accounting purposes and the tax bases of those assets and liabilities. Environment 26 (x) Segment reporting A deferred tax asset is recognised for the carry forward of unused tax losses to the extent that it is probable that future Safety 28 The Authority is not required to prepare segment information as it is considered the Authority has one geographical taxable profit will be available against which the unused tax losses can be utilised. People 34 and business segment. The geographical segment compromises the Sydney metropolitan and Newcastle locations. Income taxes relating to items recognised directly in equity are recognised in equity, not in the income statement. The business segment is principally the provision of bus services. All general administrative and head-office expenses are Competitive Business 42 incurred on behalf of the operating segment. Accordingly, disclosing segment information would not provide additional Western Sydney Buses 48 Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the relevant information. asset is realised or the liability is settled, based on tax laws that have been enacted, or substantively enacted, at the reporting date. (y) Comparatives Financial Statements 50 Comparative figures are, where appropriate, reclassified to give a meaningful comparison with the current year. The parent and its wholly owned/controlled entities elected to enter into tax consolidation effective 1 July 2002, with State Transit Authority the Authority as the head entity of the tax-consolidated group. (z) Rounding of New South Wales 52 All amounts shown in the financial reports are expressed to the nearest thousand dollars, unless otherwise specified. The tax expense/benefit, deferred tax liabilities and deferred tax assets arising from temporary differences of the State Transit Authority Division 102 members of the tax-consolidated group are recognised in the financial statements of the head entity, using the ‘single taxpayer’ approach. Western Sydney Buses Division 123 Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the tax group intends to settle its current tax and liabilities on a net basis.
Appendices 144 (u) Accounting for Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except: Index 179 - The amount of GST incurred that is not recoverable from the Australian Taxation Office is recognised as part of the cost of acquisition of an asset or as part of an item of expense.
- Receivables and payables are stated with the amount of GST included.
The net amount of GST recoverable from or payable to the Australian Taxation Office is included in the balance sheet as an asset or liability.
Cash flows are reported in the cash flow statement on a gross basis. The GST components of cash flows arising from investing and financing activities are classified as operating cash flows.
68 State Transit Authority of New South Wales - Annual Report 2008/09 69 Customer Service Annual Financial Statements State Transit Authority of New South Wales
Contents Notes to and forming part of the financial statements Notes to and forming part of the financial statements for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 Chaiman and Chief 2. Income and Expenses Economic Economic 2. Income and Expenses (Continued) Economic Economic Executive’s Foreword 3 Parent entity Parent entity Parent entity Parent entity 2009 2009 2008 2008 2009 2009 2008 2008 About State Transit 4 Notes $’000 $’000 $’000 $’000 Notes $’000 $’000 $’000 $’000 Network Maps 7 (a) Operational revenue 2(i) 544,347 544,347 535,978 535,978 (d) Fleet running expenses Performance Highlights 10 (b) Reimbursements from NSW Government: Fuel, spare parts and other inventory consumed 69,746 69,746 68,101 68,101 - free travel by school students 2(j)(i) 437 437 436 436 Inventory write-down 39 39 4 4 - concessional travel 2(j)(i) 283 283 256 256 Equipment maintenance 6,720 6,720 6,218 6,218 Year In Review 14 - community service obligations 2(j)(ii) 1,002 1,002 977 977 Other 17,288 17,288 15,593 15,593 Customer Service 16 Total operational income 546,069 546,069 537,647 537,647 Total fleet running expenses 93,793 93,793 89,916 89,916 Environment 26 Safety 28 (c) Other income (e) Employee benefits People 34 Salaries and wages - 282,459 - 264,601 Interest 2(k) 10,553 10,553 7,145 7,145 Competitive Business 42 Annual leave - 26,287 - 24,267 Other (includes rents, fines, advertising, Long service leave - 8,618 - 7,354 Western Sydney Buses 48 training and management fees) 30,556 30,556 23,727 23,727 Retirement benefits - defined benefits income 15(b)(iv) - 6,897 - 6,387 Total other income 41,109 41,109 30,872 30,872 Retirement benefits - defined contributions - 17,681 - 15,837 Total income 587,178 587,178 568,519 568,519 Financial Statements 50 Total employee benefits - 341,942 - 318,446 State Transit Authority of New South Wales 52 (f) Personnel services State Transit Services from STA Division & WSB Division 415,235 - 365,237 - Authority Division 102 Total personnel services 415,235 - 365,237 - Western Sydney Buses Division 123 (g) Finance costs Interest 8,551 8,551 5,652 5,652 Appendices 144 Total finance costs 8,551 8,551 5,652 5,652
Index 179 (h) General operating expenses Workers’ compensation - 10,392 - 7,016 Payroll tax - 17,447 - 17,180 Insurances 15,005 15,005 14,296 14,296 Depreciation 9(d) 32,132 32,132 32,157 32,157 Amortisation of intangible assets 11 989 989 827 827 Losses on disposal of assets 10 801 801 256 256 Minimum lease payments 2,748 2,748 3,192 3,192 Consultancy/professional services 2,428 2,428 4,079 4,079 Impairment (87) (87) (118) (118) Other 48,560 48,832 50,506 50,885 Total general operating expenses 102,576 130,687 105,195 129,770 Total expenses 620,155 574,973 566,000 543,784
70 State Transit Authority of New South Wales - Annual Report 2008/09 71 Customer Service Annual Financial Statements State Transit Authority of New South Wales
Contents Notes to and forming part of the financial statements Notes to and forming part of the financial statements for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 Chaiman and Chief 2. Income and Expenses (Continued) 3. Income Tax Economic Economic Executive’s Foreword 3 (i) Operational revenue consists of revenue derived from fares, charters, tourist services and from the operations of the Parent entity Parent entity Metropolitan Bus System Contracts and an Outer Metropolitan Bus System Contract. 2009 2009 2008 2008 About State Transit 4 $’000 $’000 $’000 $’000 Network Maps 7 (j) (i) Free & concessional travel (a) Income tax expense Performance Highlights 10 Free and concessional travel is provided by Western Sydney Buses and Newcastle Ferries to a range of community Current tax expense/(benefit) 5,157 5,157 7,226 7,226 groups. The extent to which these groups are entitled to free and concessional travel is determined by Government Deferred tax expense/(benefit) (5,157) (5,157) (7,226) (7,226) policy. Reimbursement by Government is provided for free school travel on the basis of percentage of the number of Total income tax expense/(benefit) - - - - Year In Review 14 passes on issue in the current year. Pensioners pay an all-day concession ticket price of $2.50 and the Government pays the balance of the full fare for all estimated travel consumed. Other free and concessional travel is reimbursed Customer Service 16 on the basis of the Government paying the balance between the full fare applicable for each journey and the fare (b) Reconciliation between tax expense and accounting profit Environment 26 paid by the passenger. Prima facie tax on operating profit at 30% (2008: 30%) (9,893) 3,662 756 7,421 Safety 28 (ii) Community service obligations (CSO) Tax effect of expenses that are not deductible in determining taxable income 9,057 (4,498) (145) (6,810) People 34 Reimbursements were received from the NSW Government in accordance with the NSW Government’s social policy Partial recognition of tax losses 836 836 (611) (611) Competitive Business 42 programs designed to promote the accessibility and availability of public transport services. CSO payments comprise pricing CSO and service level CSO in respect of the Newcastle ferry services. Income tax attributable to tax profit - - - - Western Sydney Buses 48
Service level CSO – Represents payments by the NSW Government to recover the industry benchmark operating cost of ferry services in Newcastle. 4. Cash and Cash Equivalents Financial Statements 50 Economic Economic (a) Reconciliation of operating results after tax State Transit Authority Parent entity Parent entity to net cash from operating activities of New South Wales 52 2009 2009 2008 2008 Net profit after income tax (32,977) 12,205 2,519 24,735 State Transit $’000 $’000 $’000 $’000 Authority Division 102 (k) Interest income Non-cash adjustments to reconcile net operating result Western Sydney Hour-Glass Cash facility (distribution income) 59 59 867 867 to net cash from operating activities Buses Division 123 Other Interest 10,494 10,494 6,278 6,278 Amortisation of intangible assets 989 989 827 827 Total interest income 10,553 10,553 7,145 7,145 Depreciation 32,132 32,132 32,157 32,157 Appendices 144 Net loss on disposal of non-current assets 801 801 256 256 (l) Audit fees Revaluation expense - - - - Other non-cash items 1,162 1,162 1,365 1,365 Index 179 Payable to the Audit Office of NSW for the audit of financial reports 194 224 199 229 Total audit fees 194 224 199 229 Changes in assets and liabilities (Increase)/decrease in receivables (76) (76) 1,569 1,569 (m) Board members’ remuneration (Increase)/decrease in inventory 462 462 (1,367) (1,367) The amount of remuneration, including superannuation contributions, received or due and receivable by the non- (Increase)/decrease in Goods and Services Tax 401 401 (762) (762) executive members of the State Transit Authority Board for services in respect of all entities was $115,845 (Increase)/decrease in other assets (4,584) (4,584) 1,130 1,130 (2008: $126,677). There were no other benefits paid to the members of the Board. Increase/(decrease) in payables 38,038 (4,988) 21,907 2,033 Increase/(decrease) in employee benefits - (2,156) - (2,342) Increase/(decrease) in revenue received in advance 86 86 (4,337) (4,337) Increase/(decrease) in other provisions 2,965 2,965 1,538 1,538 Net cash flows from operating activities 39,399 39,399 56,802 56,802
72 State Transit Authority of New South Wales - Annual Report 2008/09 73 Customer Service Annual Financial Statements State Transit Authority of New South Wales
Contents Notes to and forming part of the financial statements Notes to and forming part of the financial statements for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 Chaiman and Chief Economic entity Economic entity Executive’s Foreword 3 2009 2008 2009 2008 $’000 $’000 $’000 $’000 About State Transit 4 4. Cash and Cash Equivalents (continued) 5. Receivables Network Maps 7 (b) Reconciliation of cash and cash equivalents Current Performance Highlights 10 For the purpose of the cash flow statement, cash includes cash-on-hand, in the bank and short-term deposits. Trade debtors 6,062 5,892 Allowance for impairment - (8) Cash at the end of the year, as shown in the cash flow statement, is reconciled to the related items in the balance sheet Year In Review 14 as follows: Total trade debtors 6,062 5,884 Customer Service 16 Sundry debtors 5,311 5,337 Cash and cash equivalents 7,493 2,693 Environment 26 Allowance for impairment (2,098) (2,177) Total cash and cash equivalents 7,493 2,693 Safety 28 Total sundry debtors 3,213 3,160 Goods and services tax 1,403 1,805 People 34 (c) Financing facility available Finance leases 9,761 4,533 Competitive Business 42 Facility used at balance date - 2,500 Prepayments 7,381 2,544 Western Sydney Buses 48 Facility unused at balance date 45,000 42,500 Futures Receivables 4 - Short-term standby credit facility 45,000 45,000 Total other debtors 18,549 8,882 Financial Statements 50 The short-term standby credit facility is to meet daily cash flow requirements that may arise from time to time. This facility is Total current receivables 27,824 17,926 State Transit Authority subject to annual renewal and its continuation is now at the discretion of NSW Treasurer, in consultation with the Authority. of New South Wales 52 Non-current State Transit Finance leases 193,134 93,599 Authority Division 102 Total non-current receivables 193,134 93,599
Western Sydney Finance leases as the lessor Buses Division 123 Receipts for new buses acquired under the Metropolitan Bus System Contracts from 1 July 2005, and the Outer Metropolitan Bus System Contract from 1 July 2006, are recognised as finance lease receipts from NSW Transport and Infrastructure for Appendices 144 terms of 15 years.
Index 179
74 State Transit Authority of New South Wales - Annual Report 2008/09 75 Customer Service Annual Financial Statements State Transit Authority of New South Wales
Contents Notes to and forming part of the financial statements Notes to and forming part of the financial statements for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 Chaiman and Chief Economic entity 9. Property, Plant and Equipment Executive’s Foreword 3 2009 2008 (a) Carrying amounts of each class of property, plant and equipment at the beginning and at the end $’000 $’000 of the reporting period are set out below: About State Transit 4 5. Receivables (continued) Network Maps 7 Economic entity 2009 2008 Gross investment in the leases Performance Highlights 10 Not later than one year 22,636 11,310 Class of Capital value Accumulated Fair value Capital value Accumulated Fair value property, plant depreciation/ depreciation/ Later than one year and not later than five years 90,544 45,242 and equipment remediation remediation Year In Review 14 Later than five years 191,995 96,161 $’000 $’000 $’000 $’000 $’000 $’000 Customer Service 16 Total gross investment 305,175 152,713 Land 126,382 (30) 126,352 126,382 (510) 125,872 Environment 26 Present value of minimum lease receipts Buildings 119,750 (66,313) 53,437 120,340 (63,889) 56,451 Safety 28 Not later than one year 9,761 4,533 People 34 Later than one year and not later than five years 46,034 21,660 Wharves 670 (204) 466 670 (186) 484 Competitive Business 42 Later than five years 147,100 71,939 Plant and 77,631 (51,338) 26,293 76,132 (48,104) 28,028 Western Sydney Buses 48 Total present value of minimum lease receipts 202,895 98,132 equipment
Motor vehicles 1,219 (753) 466 964 (619) 345 Reconciliation (other than buses) Financial Statements 50 Total gross investment 305,175 152,713 Buses 648,346 (475,369) 172,977 723,014 (526,931) 196,083 State Transit Authority Unearned finance income (102,280) (54,581) of New South Wales 52 Total present value of minimum lease receipts 202,895 98,132 Ferries 5,887 (4,146) 1,741 5,000 (3,412) 1,588 State Transit Work-in-progress 80,763 - 80,763 56,013 - 56,013 Authority Division 102 6. Inventories Total 1,060,648 (598,153) 462,495 1,108,515 (643,651) 464,864 Western Sydney Mechanical and electrical spares 6,422 6,705 Buses Division 123 Distillate 1,312 1,571 Valuations Tyres and tubes 273 245 (b) Property, plant and equipment were revalued in accordance with the basis of valuation set out in note 1(k)(i). Appendices 144 Other 1,072 1,062 Total inventories 9,079 9,583 (c) The following non-current assets were independently valued by registered valuers: Index 179 Class of assets Basis of valuation Date of valuation Registered valuers 7. Non-Current Assets Held For Sale Buses Market-based 30 June 2006 Rodney Hyman Asset Services Buses 296 96 Land - 20 Ferries Depreciated replacement cost 30 June 2009 Rodney Hyman Asset Services Total non-current assets held for sale 296 116 Freehold commercial Market-based 30 June 2007 Aon Valuation Services The buses and land held for sale are surplus to requirements. They are to be disposed by way of auctions and trade sales. land and buildings Operating land and Market-based, Depreciated 30 June 2007 Aon Valuation Services buildings replacement cost 8. Other Assets Wharves Depreciated replacement cost 30 June 2007 Aon Valuation Services Current
Retirement benefits 15(b)(i) - 303 Other 764 717 Total current other assets 764 1,020
76 State Transit Authority of New South Wales - Annual Report 2008/09 77 Customer Service Annual Financial Statements State Transit Authority of New South Wales
Contents Notes to and forming part of the financial statements Notes to and forming part of the financial statements for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 Chaiman and Chief 9. Property, Plant and Equipment (continued) 9. Property, Plant and Equipment (continued) Executive’s Foreword 3 (d) Reconciliation of carrying amounts of each class of property, plant and equipment at the beginning and at (d) Reconciliation of carrying amounts of each class of property, plant and equipment at the beginning and at the end of the reporting period are set out below: the end of the reporting period are set out below: (continued) About State Transit 4 Network Maps 7 Economic entity 2009 Economic entity 2008 Performance Highlights 10 Class of property, Opening Disposals/ Additions Other Held for Revalu- Deprec- Closing Class of property, Opening Disposals/ Additions Other Held for Revalu- Deprec- Closing plant and balance transfers sale ation iation balance plant and balance transfers sale ation iation balance equipment equipment Year In Review 14 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Customer Service 16 Freehold operating land 122,240 ------122,240 Freehold operating land 122,240 ------122,240 Environment 26 Freehold commercial 3,632 - - 480 - - - 4,112 Freehold commercial 612 - - 3,020 - - - 3,632 Safety 28 land land People 34 Total land 125,872 - - 480 - - - 126,352 Total land 122,852 - - 3,020 - - - 125,872 Competitive Business 42 Buildings 56,451 - 783 (700) - - (3,097) 53,437 Buildings 56,099 (18) 3,451 - - - (3,081) 56,451 Western Sydney Buses 48 Wharves 484 - - - - - (18) 466 Wharves 503 - - - - - (19) 484 Plant and equipment 28,028 (8) 4,948 (173) - - (6,502) 26,293 Plant and equipment 10,910 (944) 22,889 1 - - (4,828) 28,028 Financial Statements 50 Motor vehicles 345 - 257 - - - (136) 466 Motor vehicles 342 - 86 - - - (83) 345 State Transit Authority of New South Wales 52 Owned buses 196,083 (254) - (382) (200) - (22,270) 172,977 Owned buses 220,361 (275) - - 34 - (24,037) 196,083 State Transit Owned ferries 1,588 - - - - 262 (109) 1,741 Owned ferries 1,697 - - - - - (109) 1,588 Authority Division 102 Work-in-progress 56,013 (127,618) 152,368 - - - - 80,763 Work-in-progress 24,953 (55,978) 87,038 - - - - 56,013 Western Sydney Buses Division 123 Total 464,864 (127,880) 158,356 (775) (200) 262 (32,132) 462,495 Total 437,717 (57,215) 113,464 3,021 34 - (32,157) 464,864
Appendices 144 (e) The historical costs of each revalued class of property, plant and equipment at the beginning and at the end of the reporting period are set out below:
Index 179 Economic entity 2009 2008 Class of Capital value Accumulated Carrying Capital value Accumulated Carrying property, plant depreciation/ amount depreciation/ amount and equipment remediation remediation $’000 $’000 $’000 $’000 $’000 $’000 Land 24,816 (30) 24,786 24,816 (510) 24,306 Buildings 60,639 (25,886) 34,753 59,873 (24,282) 35,591 Wharves 180 (55) 125 180 (50) 130 Buses 475,910 (315,826) 160,084 491,671 (310,918) 180,753 Ferries 2,400 (1,692) 708 2,400 (1,639) 761 Total 563,945 (343,489) 220,456 578,940 (337,399) 241,541
78 State Transit Authority of New South Wales - Annual Report 2008/09 79 Customer Service Annual Financial Statements State Transit Authority of New South Wales
Contents Notes to and forming part of the financial statements Notes to and forming part of the financial statements for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 Chaiman and Chief Economic entity Economic Economic Executive’s Foreword 3 2009 2008 Parent entity Parent entity $’000 $’000 2009 2009 2008 2008 About State Transit 4 $’000 $’000 $’000 $’000 10. Losses On Disposal Of Assets Network Maps 7 Proceeds from disposal 408 278 13. Trade and Other Payables Performance Highlights 10 Carrying amount of assets disposed (1,209) (534) Current Total losses on disposal of assets (801) (256) Trade creditors 14,829 14,829 11,682 11,682 Year In Review 14 Payables - STA & WSB Divisions 84,769 - 86,931 - Customer Service 16 Other creditors and accruals 21,766 21,673 26,587 26,549 11. Intangibles Environment 26 Accrued salaries, wages and on-costs - 10,166 - 13,743 Economic entity Capital value Disposals Additions Opening Amortisation Carrying Accrued interest payable 3,206 3,206 1,523 1,523 Safety 28 2009 Accumulated amount Total trade and other payables 124,570 49,874 126,723 53,497 People 34 amortisation
Competitive Business 42 $’000 $’000 $’000 $’000 $’000 $’000 Non-current Western Sydney Buses 48 Software 3,923 - 264 (2,185) (989) 1,013 Payables - STA & WSB Divisions 135,904 - 89,517 - Total non-current payables 135,904 - 89,517 - Total 3,923 - 264 (2,185) (989) 1,013
Financial Statements 50 State Transit Authority 14. Financial Liabilities Economic entity Capital value Disposals Additions Opening Amortisation Carrying of New South Wales 52 Current 2008 Accumulated amount State Transit amortisation Borrowings secured by NSW Government guarantee 22,142 22,142 16,868 16,868 Authority Division 102 Total current interest-bearing liabilities 22,142 22,142 16,868 16,868 $’000 $’000 $’000 $’000 $’000 $’000 Western Sydney Buses Division 123 Software 2,333 - 1,590 (1,358) (827) 1,738 Non-current Total 2,333 - 1,590 (1,358) (827) 1,738 Borrowings secured by NSW Government guarantee 156,933 156,933 61,093 61,093 Total non-current interest-bearing liabilities 156,933 156,933 61,093 61,093 Appendices 144
Economic Economic (a) Payable Parent entity Parent entity Index 179 Not later than 1 year 22,142 22,142 16,868 16,868 2009 2009 2008 2008 $’000 $’000 $’000 $’000 Later than 1 year and not later than 5 years 79,017 79,017 28,906 28,906 Later than 5 years 77,916 77,916 32,187 32,187 12. Deferred Tax Assets Total interest-bearing liabilities 179,075 179,075 77,961 77,961 Provision for employee benefits 54,336 54,336 41,428 41,428 Provision for insurances 7,804 7,804 8,091 8,091 Tax losses 4,943 4,943 10,099 10,099 Other 2,599 2,599 1,807 1,807 Total deferred tax assets 69,682 69,682 61,425 61,425
80 State Transit Authority of New South Wales - Annual Report 2008/09 81 Customer Service Annual Financial Statements State Transit Authority of New South Wales
Contents Notes to and forming part of the financial statements Notes to and forming part of the financial statements for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 Chaiman and Chief Economic Economic 15. Provisions (continued) Executive’s Foreword 3 Parent entity Parent entity (b) Retirement benefits 2009 2009 2008 2008 The defined benefit schemes relating to employees of the Economic entity are as follows: About State Transit 4 Notes $’000 $’000 $’000 $’000 Network Maps 7 (a) SASS State Authorities Superannuation Scheme 15. Provisions (b) SANCS State Authorities Non-Contributory Superannuation Scheme Performance Highlights 10 Current Employee benefits - 69,732 - 68,927 (c) SSS State Superannuation Scheme Year In Review 14 Workers’ compensation 15(a) - 4,964 - 4,602 These schemes are part of the pooled fund, the trustee of which is SAS Trustee Corporation (Trustee). The funds actuary, Customer Service 16 Others 15(a) 1,274 1,274 2,704 2,704 Mercer Human Resource Consulting Pty Ltd, appointed by the Trustee, has calculated the financial liability. At least Total current provisions 1,274 75,970 2,704 76,233 a component of the final benefit is derived from a multiple of a member’s salary and years of membership. Environment 26 All of the above schemes were closed to new employees since 1992. Safety 28 Non-current People 34 Employee benefits - 5,136 - 5,094 All the funds are invested by the Trustee at arm’s length through independent fund managers. Competitive Business 42 Retirement benefits 15(b)(i) - 106,255 - 64,073 The economic assumptions that have been used in the calculation are: Workers’ compensation 15(a) - 24,513 - 20,350 Western Sydney Buses 48 2009 2008 Others 15(a) 228 228 355 355 % pa % pa Total non-current provisions 228 136,132 355 89,872 Financial Statements 50 Discount rate 5.59 6.6 Expected return on fund assets as at 30 June 8.13 8.3 State Transit Authority (a) Movements in each class of provisions during the year, other than employee benefits, are set out below: of New South Wales 52 Expected rate of salary increases 3.5 3.5 Workers’ Expected rate of increase in consumer price index 2.5 2.5 State Transit Economic entity - 2009 comp CTP Others Authority Division 102 Carrying amount at the beginning of the year 24,952 180 2,879 The expected return on assets assumption is determined by weighting the expected long-term return for each asset Western Sydney Additions/(reduction) to provisions recognised, class by the target allocation of assets to each class. The returns used for each class are net of investment tax and Buses Division 123 including increases/(decreases) to existing provisions 9,664 1,227 investment fees. Amounts used during the year (5,142) (180) (2,604) The Projected Unit Credit (PUC) valuation method was used to determine the present value of the defined benefit Appendices 144 Carrying amount at the end of the year 29,474 - 1,502 obligations and the related current service costs. This method sees each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation. Current 4,964 - 1,274 Index 179 (i) Reconciliation of the assets and liabilities recognised in the balance sheet: Non-current 24,513 - 228 29,477 - 1,502 SASS SANCS SSS Total Economic entity $’000 $’000 $’000 $’000
Workers’ As at 30 June 2009 Economic entity - 2008 comp CTP Others Gross liability 258,237 26,140 12,469 296,846 Carrying amount at the beginning of the year 23,803 - 2,671 Reserve balance (172,788) (8,614) (9,189) (190,591) Additions to provisions recognised 6,900 180 2,272 Total unfunded liability 85,449 17,526 3,280 106,255 Amounts used during the year (5,751) - (2,064) Carrying amount at the end of the year 24,952 180 2,879 Economic entity As at 30 June 2008 Current 4,602 180 2,524 Gross liability 264,153 25,324 11,743 301,220 Non-current 20,350 - 355 Reserve balance (213,432) (11,971) (12,046) (237,449) 24,952 180 2,879 Total unfunded liability 50,721 13,353 (303) 63,771
82 State Transit Authority of New South Wales - Annual Report 2008/09 83 Customer Service Annual Financial Statements State Transit Authority of New South Wales
Contents Notes to and forming part of the financial statements Notes to and forming part of the financial statements for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 15. Provisions (continued) 15. Provisions (continued) Chaiman and Chief Executive’s Foreword 3 (b) Retirement benefits (continued) (b) Retirement benefits (continued) About State Transit 4 (ii) Reconciliation of the present value of the defined benefit obligation: (iii) Reconciliation of the fair value of fund assets: SASS SANCS SSS Total SASS SANCS SSS Total Network Maps 7 Economic entity $’000 $’000 $’000 $’000 Economic entity $’000 $’000 $’000 $’000 Performance Highlights 10 As at 30 June 2009 As at 30 June 2009 Present value of partly funded defined benefit Fair value of fund assets at beginning of the year 213,432 11,971 12,046 237,449 Year In Review 14 obligations at beginning of the year 264,153 25,324 11,743 301,220 Expected return on fund assets 16,616 897 966 18,479 Current service cost 5,228 1,272 110 6,610 Customer Service 16 Actuarial gains/(losses) (38,600) (2,085) (2,491) (43,176) Interest cost 16,463 1,550 753 18,766 Employer contributions 7,961 1,443 192 9,596 Environment 26 Contributions by fund participants 3,493 - 123 3,616 Contributions by fund participants 3,493 - 123 3,616 Safety 28 Actuarial (gains)/losses (986) 1,606 1,387 2,007 Benefits paid (30,114) (3,612) (1,647) (35,373) People 34 Benefits paid (30,114) (3,612) (1,647) (35,373) Fair value of fund assets at end of the year 172,788 8,614 9,189 190,591 Competitive Business 42 Present value of partly funded defined benefit Western Sydney Buses 48 obligations at end of the year 258,237 26,140 12,469 296,846 Economic entity As at 30 June 2008 Economic entity Financial Statements 50 Fair value of fund assets at beginning of the year 245,528 14,118 12,315 271,961 As at 30 June 2008 Expected return on fund assets 18,003 1,062 956 20,021 State Transit Authority Present value of partly funded defined benefit Actuarial gains/(losses) (33,084) (1,909) (1,521) (36,514) of New South Wales 52 obligations at beginning of the year 281,088 25,115 10,887 317,090 Employer contributions 8,280 1,514 169 9,963 State Transit Current service cost 5,656 1,339 82 7,077 Contributions by fund participants 3,576 - 92 3,668 Authority Division 102 Interest cost 17,136 1,512 683 19,331 Benefits paid (28,871) (2,814) 35 (31,650) Western Sydney Contributions by fund participants 3,576 - 92 3,668 Fair value of fund assets at end of the year 213,432 11,971 12,046 237,449 Buses Division 123 Actuarial (gains)/losses (14,432) 172 (36) (14,296) Benefits paid (28,871) (2,814) 35 (31,650) (iv) Defined benefits fund expense/(income) for the year: Appendices 144 Present value of partly funded defined benefit obligations at end of the year 264,153 25,324 11,743 301,220 SASS SANCS SSS Total Economic entity $’000 $’000 $’000 $’000 Index 179 Ending 30 June 2009 Current service cost 5,228 1,272 110 6,610 Interest cost 16,463 1,550 753 18,766 Expected return on fund assets (16,616) (897) (966) (18,479) Total included in retirement benefits expense 5,075 1,925 (103) 6,897
Economic entity Ending 30 June 2008 Current service cost 5,656 1,339 82 7,077 Interest cost 17,136 1,512 683 19,331 Expected return on fund assets (18,003) (1,062) (956) (20,021) Total included in retirement benefits expense 4,789 1,789 (191) 6,387
84 State Transit Authority of New South Wales - Annual Report 2008/09 85 Customer Service Annual Financial Statements State Transit Authority of New South Wales
Contents Notes to and forming part of the financial statements Notes to and forming part of the financial statements for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 15. Provisions (continued) 15. Provisions (continued) Chaiman and Chief Executive’s Foreword 3 (b) Retirement benefits (continued) (b) Retirement benefits (continued) About State Transit 4 (v) Amounts recognised in the Statement of Recognised Income and Expense (vii) Historical information: SASS SANCS SSS Total SASS SANCS SSS Total Network Maps 7 Economic entity $’000 $’000 $’000 $’000 Economic entity $’000 $’000 $’000 $’000 Performance Highlights 10 Ending 30 June 2009 As at 30 June 2009 Actuarial (gains)/losses 37,614 3,691 3,877 45,182 Present value of defined benefit obligation 258,237 26,140 12,469 296,846 Year In Review 14 Fair value of fund assets (172,788) (8,614) (9,189) (190,591) Customer Service 16 Economic entity Total unfunded liability 85,449 17,526 3,280 106,255 Ending 30 June 2008 Experience adjustments – fund liabilities (986) 1,606 1,387 2,007 Environment 26 Actuarial (gains)/losses 18,652 2,080 1,484 22,216 Experience adjustments – fund assets 38,600 2,085 2,491 43,176 Safety 28
People 34 The cumulative amount of actuarial losses/(gains) recognised in the ‘statement of recognised income Economic entity Competitive Business 42 and expense’ since 01 July 2004 is: As at 30 June 2008 Western Sydney Buses 48 SASS SANCS SSS Total Present value of defined benefit obligation 264,153 25,324 11,743 301,220 Economic entity $’000 $’000 $’000 $’000 Fair value of fund assets (213,432) (11,971) (12,046) (237,449) Financial Statements 50 Ending 30 June 2009 Total unfunded liability 50,721 13,353 (303) 63,771 Actuarial (gains)/losses 32,576 3,152 2,685 38,413 Experience adjustments – fund liabilities (14,432) 172 (36) (14,296) State Transit Authority of New South Wales 52 Experience adjustments – fund assets 33,084 1,909 1,521 36,514 State Transit (vi) Actual return on fund assets for the year ended: Authority Division 102 SASS SANCS SSS Total (viii) Expected employer contribution to be paid during the annual reporting period beginning after the Western Sydney Economic entity $’000 $’000 $’000 $’000 reporting date: Buses Division 123 30 June 2009 (20,862) (1,188) (1,192) (23,242) SASS SANCS SSS Total Economic entity $’000 $’000 $’000 $’000 As at 30 June 2009 7,680 1,446 196 9,322 Appendices 144 Economic entity 30 June 2008 (15,231) (847) (835) (16,913) Economic entity Index 179 As at 30 June 2008 7,867 1,514 150 9,531
(ix) The percentage invested in each asset class at the reporting date: 2009 2008 Economic entity % % Australian equities 32.1 31.6 Overseas equities 26.0 25.4 Australian fixed interest securities 6.2 7.4 Overseas fixed interest securities 4.7 7.5 Property 10.0 11.0 Cash 8.0 6.1 Other 13.0 11.0
86 State Transit Authority of New South Wales - Annual Report 2008/09 87 Customer Service Annual Financial Statements State Transit Authority of New South Wales
Contents Notes to and forming part of the financial statements Notes to and forming part of the financial statements for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 15. Provisions (continued) 15. Provisions (continued) Chaiman and Chief Executive’s Foreword 3 (b) Retirement benefits (continued) (b) Retirement benefits (continued) About State Transit 4 (x) A summary of the financial position of the fund calculated in accordance with AAS 25 Financial Reporting (xii) The economic assumptions adopted for the last actuarial review of the fund were: by Superannuation Plans as supplied by the Trustee: 2009 2008 Network Maps 7 Economic entity % pa % pa Performance Highlights 10 SASS SANCS SSS Total Weighted-average assumptions Economic entity $’000 $’000 $’000 $’000 Expected rate of return on fund assets backing current defined benefit liabilities 8.3 7.7 As at 30 June 2009 Year In Review 14 Expected rate of return on fund assets backing other liabilities 7.3 7.0 Accrued benefits 235,865 24,042 9,154 269,061 Customer Service 16 Expected salary increase rate 4.0 4.0 Net market value of the fund assets (172,788) (8,614) (9,189) (190,591) Expected rate of CPI increase 2.5 2.5 Environment 26 Net (surplus)/deficit 63,077 15,428 (35) 78,470
Safety 28 (xiii) If a surplus exists in the employer’s interest in the fund, the employer may be able to reduce the required People 34 Economic entity contribution rate, subject to the fund’s actuarial advice. Competitive Business 42 As at 30 June 2008 Where a deficiency exists, the employer is responsible for any difference between the employer’s share of the fund Western Sydney Buses 48 Accrued benefits 262,173 25,409 10,869 298,451 assets and the defined benefit obligations. Net market value of the fund assets (213,432) (11,971) (12,046) (237,449)
Net (surplus)/deficit 48,741 13,438 (1,177) 61,002 Financial Statements 50 Economic entity State Transit Authority SASS SANCS SSS 2009 2008 $’000 $’000 of New South Wales 52 Multiple of Multiple of State Transit member % member member 16. Deferred Tax Liabilities Authority Division 102 (xi) Recommended contribution rates for the year ending contributions salary contributions Assets held for sale - 15 30 June 2009 2.2 2.5 1.60 Western Sydney Retirement benefits - 91 Buses Division 123 30 June 2008 2.2 2.5 1.60 Depreciation and revaluations 71,104 72,531 Total deferred tax liabilities 71,104 72,637 At the last actuarial review, the Aggregate Funding method was used to determine the employer contribution Appendices 144 recommendations. The method adopted affects the timing of the cost to the employer.
Under the Aggregate Funding method, the employer contribution rate is determined so that sufficient assets will 17. Other Liabilities Index 179 be available to meet benefit payments to existing members, taking into account the current value of assets and Current future contributions. Revenue received in advance 6,029 5,943 Total current other liabilities 6,029 5,943
88 State Transit Authority of New South Wales - Annual Report 2008/09 89 Customer Service Annual Financial Statements State Transit Authority of New South Wales
Contents Notes to and forming part of the financial statements Notes to and forming part of the financial statements for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 Chaiman and Chief Economic entity 19. Western Sydney Buses Executive’s Foreword 3 2009 2008 Western Sydney Buses (“WSB”) was incorporated on 12 July 2002 under the Transport Administration Act 1988 as a public $’000 $’000 subsidiary corporation of the State Transit Authority. WSB commenced operation from February 2003. About State Transit 4 18. Commitments Network Maps 7 WSB operates bus services along the corridor known as the Liverpool-Parramatta Transitway. Its operations have been (a) Operating lease commitments incorporated into the Authority’s financial result. However, a separate account for WSB is maintained by the Authority, which Performance Highlights 10 Payable recognised loans advanced and repayments. The Authority also levies management fees. Not later than 1 year 679 724 WSB’s income statements are summarised as follows: Year In Review 14 Later than 1 year and not later than 5 years 1,583 1,113 2009 2008 Customer Service 16 Later than 5 years 2,834 247 $’000 $’000 Environment 26 Total operating lease commitments (including GST) 5,096 2,084 Revenue Safety 28 Operating leases exist in respect of office accommodation, motor vehicles, office equipment and wharves. Passenger revenue 5,146 4,818 Reimbursements for concessional travel 462 474 People 34 (b) Capital expenditure commitments* Other 12 5 Competitive Business 42 Payable Total revenue 5,620 5,297 Western Sydney Buses 48 Not later than 1 year 121,871 141,944
Later than 1 year and not later than 5 years 105,503 122,563 Expenses Total capital expenditure commitments (including GST) 227,374 264,507 Financial Statements 50 Wages, salaries and on-costs 3,478 3,312 * These capital expenditure commitments relate primarily to bus procurement contracts. State Transit Authority Fleet running expenses 1,569 1,612 of New South Wales 52 (c) Other expenditure commitments Other 2,006 1,920 State Transit Aggregate other expenditure for the acquisition of goods and services at balance date and not provided for: Total expenses 7,053 6,844 Gross loss from continuing activities (1,433) (1,547) Authority Division 102 Not later than 1 year 4,500 5,108
Western Sydney Total other expenditure commitments (including GST) 4,500 5,108 Buses Division 123 The commitment totals as shown above include Goods and Services Tax (GST) of $21.5M, which is recoverable from the Australian Taxation Office.
Appendices 144
Index 179
90 State Transit Authority of New South Wales - Annual Report 2008/09 91 Customer Service Annual Financial Statements State Transit Authority of New South Wales
Contents Notes to and forming part of the financial statements Notes to and forming part of the financial statements for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 Chaiman and Chief 19. Western Sydney Buses (continued) 20. Financial Instruments Executive’s Foreword 3 2009 2008 (a) Fair value WSB’s balance sheets are summarised as follows: $’000 $’000 About State Transit 4 The financial assets and financial liabilities disclosed in the balance sheet are at fair value, except as Current assets shown below: Network Maps 7 Cash and cash equivalents 20 41 2009 2008 Performance Highlights 10 Trade and other receivables 492 450 Economic entity $’000 $’000 Other 64 40 Financial assets Year In Review 14 Total current assets 576 531 Finance leases 202,800 98,470 Total 202,800 98,470 Customer Service 16 Non-current assets Environment 26 Other 11 38 Financial liabilities Safety 28 Total non-current assets 11 38 Financial liabilities 181,134 76,312 People 34 Total assets 1 587 569 Total 181,134 76,312 Competitive Business 42 Current liabilities The fair value of the finance leases was determined using the 10-year Commonwealth government bond rate at the Western Sydney Buses 48 Trade and other payables 809 1,020 reporting date. Borrowings from parent entity 13,927 12,344 The fair value of the financial liabilities was based on the market prices at the reporting date. Financial Statements 50 Provisions 341 258 State Transit Authority Total current liabilities 15,077 13,622 (b) Risk exposures of New South Wales 52 The risks to which the Authority was exposed by holding the financial instruments are summarised below: Non-current liabilities State Transit (i) Credit risk Authority Division 102 Provisions 86 72 Credit risk arises from the potential failure of counterparties to meet their obligations under the contract. The risk Total non-current liabilities 86 72 Western Sydney is mitigated by strict adherence to the Authority’s credit policy and ongoing assessment of potential default. Except Buses Division 123 Total liabilities 15,163 13,694 for the amounts previously impaired, it is not expected that any other material counterparties will fail to meet their Net assets (14,576) (13,125) obligations.
Appendices 144 The Authority’s exposure to credit risk is summarised below: 1 All property, plant and equipment is leased from the Authority under an operating lease. Economic 2009 Index 179 entity Class of Current or 30 days 60 days 90 days plus Maximum Impaired financial not yet due exposure asset $’000 $’000 $’000 $’000 $’000 $’000 Trade debtors 5,384 132 48 498 6,062 - Sundry 3,044 3 31 136 3,214 2,098 debtors Finance leases 202,895 - - - 202,895 - Total 211,323 135 79 634 212,171 2,098
92 State Transit Authority of New South Wales - Annual Report 2008/09 93 Customer Service Annual Financial Statements State Transit Authority of New South Wales
Contents Notes to and forming part of the financial statements Notes to and forming part of the financial statements for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 Chaiman and Chief 20. Financial Instruments (continued) 20. Financial Instruments (continued) Executive’s Foreword 3 (b) Risk exposures (continued) (b) Risk exposures (continued) About State Transit 4 (i) Credit risk (continued) (ii) Currency risk Currency risk arises where commitments are denominated in currencies other than the Authority’s functional currency. Network Maps 7 Economic 2008 entity Performance Highlights 10 Any currency risk is mitigated by the Authority’s policy of using forward exchange contracts to effectively cover for Class of Current or 30 days 60 days 90 days plus Maximum Impaired such commitments. The forward exchange contracts are only entered into when the timing and quantum of the financial not yet due exposure commitments are reasonably known. Year In Review 14 asset $’000 $’000 $’000 $’000 $’000 $’000 The counterparties to the forward exchange contracts are reputable, well-established, financial institutions and Customer Service 16 Trade debtors 4,908 434 49 493 5,884 8 accordingly it is anticipated that they will meet their obligations. Environment 26 Sundry 3,053 70 - 37 3,160 2,177 Where the buy fair value exceeds the sell fair value, the maximum amount to which the Authority would be Safety 28 debtors exposed in the unlikely event of the counterparty defaulting is represented by the difference between the buy and People 34 Finance leases 98,132 - - - 98,132 - sell fair values. Competitive Business 42 Total 106,093 504 49 530 107,176 2,185 The forward exchange contract obligations are summarised below: Western Sydney Buses 48 Fair value Fair value Face value No collateral or credit enhancements are held over these amounts. Objective factors considered when determining buy sell impairment would include the size, age of the amounts, the credit worthiness, ability and willingness of the debtors Economic entity - 2009 $’000 $’000 $’000 Financial Statements 50 to meet their obligations. Forward exchange contracts State Transit Authority of New South Wales 52 At the reporting date, in absence of any objective evidence of impairment, the Authority considered the financial Not later than 1 year 11,774 12,481 12,648 assets that were current or not yet due to be fully collectible as and when they fall due. Later than 1 year but not later than 5 years 10,479 11,090 11,705 State Transit Authority Division 102 Movements in the allowance for impairment during the year were: Total 22,253 23,571 24,353 Western Sydney 2009 2008 Buses Division 123 Economic entity $’000 $’000 Fair value Fair value Face value Opening balance 2,184 2,305 buy sell Amount written off - - Economic entity - 2008 $’000 $’000 $’000 Appendices 144 Amount recovered (86) (128) Forward exchange contracts Amount recognised - 7 Not later than 1 year 15,467 16,999 17,544 Index 179 Closing balance 2,098 2,184 Later than 1 year but not later than 5 years 18,334 19,947 22,966 Total 33,801 36,946 40,510
94 State Transit Authority of New South Wales - Annual Report 2008/09 95 Customer Service Annual Financial Statements State Transit Authority of New South Wales
Contents Notes to and forming part of the financial statements Notes to and forming part of the financial statements for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 Chaiman and Chief 20. Financial Instruments (continued) 20. Financial Instruments (continued) Executive’s Foreword 3 (b) Risk exposures (continued) (b) Risk exposures (continued) About State Transit 4 (iii) Interest rate risk (iii) Interest rate risk (continued) Interest rate risk occurs where the value of the financial liabilities fluctuates due to changes in interest rates. Floating Fixed interest rate maturing in Non- Weighted average Network Maps 7 interest 1 year Over 1 to More than interest effective interest rate Performance Highlights 10 The Authority’s interest rate risk policy seeks to minimise the effects of interest rate movements through active rate or less 5 years 5 years bearing Total Floating Fixed management of the exposures by converting between floating short-term and long-term fixed-interest loans. $’000 $’000 $’000 $’000 $’000 $’000 % % Economic entity 2008 Year In Review 14 Exposure to interest rate risk and the effective interest rates of financial assets and financial liabilities are Financial assets disclosed below: Customer Service 16 Cash and cash equivalents 707 - - - 1,986 2,693 6.82 N/A Environment 26 Floating Fixed interest rate maturing in Non- Weighted average Receivables - 2,728 21,660 71,939 13,392 109,719 N/A 7.27 Safety 28 interest 1 year Over 1 to More than interest effective interest rate Total financial assets 707 2,728 21,660 71,939 15,378 112,412 People 34 rate or less 5 years 5 years bearing Total Floating Fixed $’000 $’000 $’000 $’000 $’000 $’000 % % Competitive Business 42 Economic entity 2009 Financial liabilities Western Sydney Buses 48 Financial assets Trade creditors - - - - 39,754 39,754 N/A N/A Cash and cash Borrowings - 16,868 28,906 32,187 - 77,961 7.84 6.36 equivalents 5,689 - - - 1,804 7,493 5.35 N/A Total financial liabilities - 16,868 28,906 32,187 39,754 117,715 Financial Statements 50 Receivables - 9,761 46,034 147,100 16,660 219,555 N/A 6.71 State Transit Authority Total financial assets 5,689 9,761 46,034 147,100 18,464 227,048 of New South Wales 52 (iv) Liquidity risk
State Transit The risk arises where the Authority will encounter difficulty in meeting its financial liability obligations. Financial liabilities Authority Division 102 Trade creditors - - - - 39,708 39,708 N/A N/A The Authority mitigates liquidity risk through matching the maturity profiles of its assets with liabilities, converting Western Sydney Borrowings - 22,142 79,017 77,916 - 179,075 3.64 6.32 short-term to long-term loans, accessing a short-term standby credit facility, with capacity to secure higher borrowing Buses Division 123 limits and strict enforcement of its credit terms. Total financial liabilities - 22,142 79,017 77,916 39,708 218,783 A maturity analysis of the undiscounted financial liabilities is shown below: Appendices 144 2009 2008 Economic entity $’000 $’000 Index 179 Financial liabilities Not later than 1 year 71,661 60,950 Later than 1 year and not later than 5 years 103,159 39,958 Greater than 5 years 90,289 38,746 Total financial liabilities 265,109 139,654
96 State Transit Authority of New South Wales - Annual Report 2008/09 97 Customer Service Annual Financial Statements State Transit Authority of New South Wales
Contents Notes to and forming part of the financial statements Notes to and forming part of the financial statements for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 Chaiman and Chief 20. Financial Instruments (continued) 21. Related Parties Executive’s Foreword 3 (b) Risk exposures (continued) The Authority and its controlled entities engage in a variety of related party transactions in the ordinary course of business. These transactions are conducted on normal terms and conditions. About State Transit 4 (v) Sensitivity analysis The sensitivity of the market risk to which the Authority was exposed is summarised as follows: Network Maps 7 (a) Related party transactions and balances as at 30 June 2009:
Performance Highlights 10 The Authority STA Division WSB WSB Division Interest rate risk Interest rate risk $’000 $’000 $’000 $’000 -100 basis points +100 basis points Personnel service income/(expense) (415,235) 411,729 - 3,506 Year In Review 14 Carrying amount Profit/(loss) Profit/(loss) Economic entity - 2009 $’000 $’000 $’000 Management fees/(expense) 141 - (141) - Customer Service 16 Hour-Glass Receivables/(payables) - current (70,842) 84,416 (13,927) 353 Environment 26 Investment Facility 5,415 54 (54) Receivables/(payables) - non-current (135,904) 135,828 - 76 Safety 28 Short-term borrowings 22,142 9 (9) Operating lease income/(expense) 584 - (584) - People 34 Total increase/(decrease) 63 (63) Total (621,256) 631,973 (14,652) 3,935 Competitive Business 42 Interest rate risk Interest rate risk (b) Related party transactions and balances as at 30 June 2008: Western Sydney Buses 48 -100 basis points +100 basis points The Authority STA Division WSB WSB Division Carrying amount Profit/(loss) Profit/(loss) $’000 $’000 $’000 $’000 Economic entity - 2008 $’000 $’000 $’000 Financial Statements 50 Personnel service income/(expense) (365,237) 361,907 - 3,330 Hour-Glass State Transit Authority Management fees/(expense) 138 - (138) - Investment Facility 5 - - of New South Wales 52 Receivables/(payables) - current (74,587) 86,520 (12,344) 411 Short-term borrowings 14,800 9 (9) State Transit Receivables/(payables) - non-current (89,517) 89,483 - 34 Total increase/(decrease) 9 (9) Authority Division 102 Operating lease income/(expense) 546 - (546) - Western Sydney Total (528,657) 537,910 (13,028) 3,775
Buses Division 123 The unit price of the Hour-Glass facility is equal to the total fair value of the net assets held by the facility divided Economic Economic by the total number of units on issue for that facility. Unit prices are calculated and published daily. Parent entity Parent entity Appendices 144 2009 2009 2008 2008 The 100 basis points assumption for the facility is derived from historically-based volatility information calculated over $’000 $’000 $’000 $’000 a ten-year period, quoted at two standard deviations. It is considered that the 100 basis points assumption is also Index 179 applicable to the short-term loans. (c) Key management personnel compensation Short-term employee benefits 2,928 2,928 2,906 2,906 The change in the value of the facility at the reporting date is derived from multiplying the carrying amount by 100 Post-employment benefits 10 10 10 10 basis points in both directions. Other long-term benefits 89 89 - - The interest payable on the short-term borrowings at the reporting date is recalculated by adjusting the coupon rates Termination benefits 278 278 24 24 by 100 basis points in both directions. Total 3,306 3,306 2,940 2,940 The methods and assumptions used have not changed from the previous reporting period date.
22. Contingent Liabilities No significant contingent liabilities are anticipated, except for potential property and personal injury claims formerly managed by HIH Casualty & General Insurance Ltd.
98 State Transit Authority of New South Wales - Annual Report 2008/09 99 Customer Service Annual Financial Statements State Transit Authority of New South Wales
Contents Notes to and forming part of the financial statements Statement by Members of the Board for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 Pursuant to section 41(C)(1B) of the Public Finance and Audit Act 1983 and in accordance with a resolution of the members Chaiman and Chief 23. Equity Accumulated funds Reserves Total equity of the Board of the State Transit Authority of New South Wales, we declare that in our opinion: Executive’s Foreword 3 2009 2008 2009 2008 2009 2008 Economic entity $’000 $’000 $’000 $’000 $’000 $’000 About State Transit 4 1. The accompanying financial statements exhibit a true and fair view of the financial position and transactions of the State Balance at the beginning of the year 149,835 146,961 126,986 127,662 276,821 274,623 Transit Authority of New South Wales as at 30 June 2009; and Network Maps 7 Increment/(decrement) on revaluation Performance Highlights 10 of property, plant and equipment - - 262 - 262 - 2. The financial statements have been prepared in accordance with the provisions of the Australian Accounting Standards Net superannuation actuarial gains/(losses) (45,182) (22,216) - - (45,182) (22,216) and Interpretations, the Public Finance and Audit Act 1983, Public Finance and Audit Regulation 2005 and the Treasurer’s Directions. Year In Review 14 Asset revaluation reserve balance transferred to accumulated funds on disposal/transfer of assets 2,371 965 (2,668) (965) (297) - Further, at the date of this statement, we are not aware of any circumstances that would render the particulars included in Customer Service 16 Recognition of deferred tax assets (liabilities) 13,555 6,665 722 289 14,277 6,954 the financial statements to be misleading or inaccurate. Environment 26 Impact of tax liability on current year operations (4,490) (7,275) - - (4,490) (7,275) Signed in accordance with a resolution of the Board. Safety 28 Net profit for the year 12,205 24,735 - - 12,205 24,735 People 34 Balance at the end of the year 128,294 149,835 125,302 126,986 253,596 276,821 Competitive Business 42 Western Sydney Buses 48 24. Events After the Balance Sheet Date The Public Sector Employment and Management (Departmental Amalgamations) Order 2009 dated 27 July 2009 has established the Department of Transport and Infrastructure. This legislation may impact the State Transit Authority Division Barrie Unsworth Peter Rowley Financial Statements 50 and the Western Sydney Buses Division, where in the opinion of the Director General of the Department of Premier and Chairman Chief Executive Officer State Transit Authority Cabinet, staff involved in activities prescribed by the Order are removed as required from the relevant Division concerned and of New South Wales 52 added to the Department of Transport and Infrastructure at a future date. State Transit SYDNEY - 19 October 2009 Authority Division 102 End of Audited Financial Statements Western Sydney Buses Division 123
Appendices 144
Paul Dunn BCom, MBA, ACA Index 179 General Manager - Finance & Administrative Services Sydney
100 State Transit Authority of New South Wales - Annual Report 2008/09 101 Contents
Independent Auditor’s Report 104 Notes to and forming part of the financial statements 1. Summary of significant accounting Income statement 106 policies 110 2. Receivables 113 Balance sheet 107 3. Payables 113 Contents 4. Provisions 113 Statement of recognised 5. Retirement benefits 114 income and expense 108 Letter to the Minister 2 6. Equity 120 Chaiman and Chief 7. Events after the balance sheet date 120 Executive’s Foreword 3 Cash flow statement 109 About State Transit 4 Statement by the Division Head 121 Network Maps 7 Performance Highlights 10
Year In Review 14 Customer Service 16 Environment 26 Safety 28 People 34 Competitive Business 42 Western Sydney Buses 48
Financial Statements 50 State Transit Authority of New South Wales 52 State Transit Authority Division 102 Western Sydney Buses Division 123
Appendices 144
Index 179 Financial Statements State Transit Authority Division
102 State Transit Authority of New South Wales - Annual Report 2008/09 103 Customer Service Annual Financial Statements State Transit Authority Division
Contents Independent Auditor’s Report for the year ended 30 June 2009 Letter to the Minister 2 Chaiman and Chief Executive’s Foreword 3 About State Transit 4 Network Maps 7 Performance Highlights 10
Year In Review 14 Customer Service 16 Environment 26 Safety 28 People 34 Competitive Business 42 Western Sydney Buses 48
Financial Statements 50 State Transit Authority of New South Wales 52 State Transit Authority Division 102 Western Sydney Buses Division 123
Appendices 144
Index 179
104 State Transit Authority of New South Wales - Annual Report 2008/09 105 Customer Service Annual Financial Statements State Transit Authority Division
Start of Audited Financial Statements
Contents Income Statement Balance Sheet for the year ended 30 June 2009 as at 30 June 2009 Letter to the Minister 2 Chaiman and Chief 2009 2008 2009 2008 Executive’s Foreword 3 Notes $’000 $’000 Notes $’000 $’000 Income Current Assets About State Transit 4 Personnel services 411,729 361,907 Receivables 2 84,416 86,520 Network Maps 7 Others 30 30 Total current assets 84,416 86,520 Performance Highlights 10 Total income 411,759 361,937 Non-current Assets Year In Review 14 Expenses Receivables 2 135,828 89,483 Customer Service 16 Annual leave 26,061 24,106 Total non-current assets 135,828 89,483 Audit 30 30 Total assets 220,244 176,003 Environment 26 Fringe benefits tax 272 377 Safety 28 Long service leave 8,563 7,330 Current Liabilities People 34 Payroll tax 17,307 17,045 Payables 3 10,023 13,511 Competitive Business 42 Retirement benefits - defined benefits 5(b)(vii) 6,900 6,387 Provisions 4 74,393 73,009 Western Sydney Buses 48 Retirement benefits - defined contributions 17,472 15,650 Total current liabilities 84,416 86,520 Salaries and wages 279,643 261,913 Workers compensation 10,358 6,900 Non-current Liabilities Financial Statements 50 Total expenses 366,606 339,738 Provisions 4 135,828 89,483 State Transit Authority of New South Wales 52 Surplus/(deficit) from continuing activities before income tax 45,153 22,199 Total non-current liabilities 135,828 89,483 Total surplus/(deficit) attributable to owners 45,153 22,199 Total liabilities 220,244 176,003 State Transit
Authority Division 102 The above statement should be read in conjunction with the accompanying notes. Net assets - - Western Sydney Buses Division 123 Equity Accumulated funds - - Appendices 144 Total equity - -
The above statement should be read in conjunction with the accompanying notes. Index 179
106 State Transit Authority of New South Wales - Annual Report 2008/09 107 Customer Service Annual Financial Statements State Transit Authority Division
Contents Statement of Recognised Income and Expense Cash Flow Statement for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 2009 2008 Chaiman and Chief 2009 2008 $’000 $’000 Executive’s Foreword 3 $’000 $’000 Net profit from continuing activities 45,153 22,199 Net cash flows from operating activities - - About State Transit 4 Net superannuation actuarial gains/(losses) (45,153) (22,199) Net cash flows from investing activities - - Network Maps 7 Total recognised income and expenses for the year - - Net cash flows from financing activities - - Performance Highlights 10 Net increase/(decrease) in cash and cash equivalents - - The above statement should be read in conjunction with the accompanying notes. Cash and cash equivalents at the beginning of the year - - Year In Review 14 Cash and cash equivalents at the end of the year - -
Customer Service 16 The above statement should be read in conjunction with the accompanying notes. Environment 26 Safety 28 People 34 Competitive Business 42 Western Sydney Buses 48
Financial Statements 50 State Transit Authority of New South Wales 52 State Transit Authority Division 102 Western Sydney Buses Division 123
Appendices 144
Index 179
108 State Transit Authority of New South Wales - Annual Report 2008/09 109 Customer Service Annual Financial Statements State Transit Authority Division
Contents Notes to and forming part of the financial statements Notes to and forming part of the financial statements for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 Chaiman and Chief 1. Summary of Significant Accounting Policies 1. Summary of Significant Accounting Policies (continued) Executive’s Foreword 3 (a) Reporting entity (e) Receivables About State Transit 4 State Transit Authority Division (“STA Division”) is a Division of the NSW Government Service, established pursuant to Part A receivable is recognised when it is probable that the future cash inflows associated with it will be realised and it has a 2 of Schedule 1 to the Public Sector Employment and Management Act 2002. It is a not-for-profit entity as profit is not value that can be measured reliably. It is derecognised when the contractual or other rights to future cash flows from it Network Maps 7 its principal objective. It is consolidated as part of the NSW Total State Sector Accounts. It is domiciled in Australia and its expire or are transferred. Performance Highlights 10 principal office is at Level 1, 219-241 Cleveland Street, Strawberry Hills NSW 2010. A receivable is measured initially at fair value and subsequently at amortised cost using the effective interest rate method, STA Division’s objective is to provide personnel services to the State Transit Authority of New South Wales. less any allowance for impairment. A short-term receivable with no stated interest rate is measured at the original invoice Year In Review 14 amount where the effect of discounting is immaterial. An invoiced receivable is due for settlement within thirty days STA Division commenced operations on 17 March 2006 when it assumed responsibility for the employees and employee- of invoicing. Customer Service 16 related liabilities of the former employer, the State Transit Authority of New South Wales. The assumed liabilities were Environment 26 recognised on 17 March 2006 together with an offsetting receivable representing the related funding due from the If there is objective evidence at year end that a receivable may not be collectable, its carrying amount is reduced by means former employer. of an allowance for impairment and the resulting loss is recognised in the income statement. Receivables are monitored Safety 28 during the year and bad debts are written off against the allowance when they are determined to be irrecoverable. Any People 34 The financial report was authorised for issue by Mr Peter Rowley, Division Head, on 19 October 2009. The report will not other loss or gain arising when a receivable is derecognised is also recognised in the income statement. be amended and reissued as it has been audited. Competitive Business 42 (f) Payables (b) Basis of preparation Western Sydney Buses 48 Payables include accrued wages, salaries, and related on costs (such as payroll tax, fringe benefits tax and workers’ This is a general purpose financial report prepared in accordance with the requirements of Australian Accounting compensation insurance) where there is certainty as to the amount and timing of settlement. Standards and Interpretations, the Public Finance and Audit Act 1983, the Public Finance and Audit Regulation 2005, Financial Statements 50 and specific directions issued by the Treasurer. A payable is recognised when a present obligation arises under a contract or otherwise. It is derecognised when the obligation expires or is discharged, cancelled or substituted. State Transit Authority Generally, the historical cost basis of accounting has been adopted and the financial report does not take into account of New South Wales 52 changing money values or current valuations. However, certain provisions are measured at fair value. See note 1(g). A short-term payable with no stated interest rate is measured at historical cost if the effect of discounting is immaterial. State Transit Authority Division 102 The accrual basis of accounting has been adopted in the preparation of the financial report, except for cash flow (g) Employee benefit provisions and expenses information. Provisions are made for liabilities of uncertain amount or uncertain timing of settlement. Western Sydney Buses Division 123 Management’s judgements, key assumptions and estimates are disclosed in the relevant notes to the financial report. Employee benefit provisions represent expected amounts payable in the future in respect of unused entitlements accumulated as at the reporting date. Liabilities associated with, but that are not, employee benefits (such as payroll tax) The financial statements have been prepared on a going concern basis which assumes that repayment of debts will are recognised separately. Appendices 144 be met as and when they fall due, without any intention or necessity to liquidate assets or otherwise winding up the operations. Superannuation and leave liabilities are recognised as expenses and provisions when the obligations arise, which is usually through the rendering of service by employees. Index 179 All amounts are rounded to the nearest one thousand dollars and are expressed in Australian currency. Long-term annual leave (i.e. that is not expected to be taken within twelve months) is measured at present value using (c) Comparative information a discount rate equal to the market yield on government bonds. Comparative figures are, where appropriate, reclassified to give a meaningful comparison with the current year. Superannuation and long service leave provisions are actuarially assessed prior to each reporting date and are measured (d) Income at the present value of the estimated future payments. Income is measured at the fair value of the consideration received or receivable. Revenue from the rendering of personnel services is recognised when the service is provided and only to the extent that the associated recoverable expenses The unconditional component of the long service leave entitlements, for those employees currently employed for nine are recognised. or more years at the reporting date, are classified as current liabilities.
All other employee benefit liabilities (i.e. for benefits falling due wholly within twelve months after reporting date) are assessed by management and are measured at the undiscounted amount of the estimated future payments.
The amount recognised for defined superannuation provisions is the net total of the present value of the defined benefit obligation at the reporting date, minus the fair value at that date of any plan assets out of which the obligations are to be settled directly.
110 State Transit Authority of New South Wales - Annual Report 2008/09 111 Customer Service Annual Financial Statements State Transit Authority Division
Contents Notes to and forming part of the financial statements Notes to and forming part of the financial statements for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2
Chaiman and Chief 1. Summary of Significant Accounting Policies (continued) 2009 2008 Executive’s Foreword 3 (g) Employee benefit provisions and expenses (continued) Notes $’000 $’000 About State Transit 4 Actuarial gains and losses are recognised outside of profit or loss in the ‘Statement of Recognised Income and Expense’ 2. Receivables in the year in which they occur. Network Maps 7 Current Receivables from State Transit Authority 84,416 86,520 Performance Highlights 10 The actuarial assessment of defined superannuation provisions uses the Projected Unit Credit Method and reflects estimated future salary increases and the benefits set out in the terms of the plan. The liabilities are discounted using Total current receivables 84,416 86,520 the market yield on government bonds of similar maturity to those obligations. Actuarial assumptions are unbiased Year In Review 14 and mutually compatible and financial assumptions are based on market expectations for the period over which the Non-current obligations are to be settled. Customer Service 16 Receivables from State Transit Authority 135,828 89,179 Environment 26 Contributions to defined contribution superannuation plans are expensed when employees have rendered service Retirement benefits 5(b)(i) - 304 entitling them to the contributions. Safety 28 Total non-current receivables 135,828 89,483
People 34 (h) Accounting standards issued but not yet effective The Authority has assessed the new Australian Accounting Standards that have recently been issued or amended but are Competitive Business 42 3. Payables not yet effective or applied. It has been determined that these new accounting standards will have no material impact on Accrued salaries, wages and on-costs 10,023 13,511 Western Sydney Buses 48 the financial statements in the period of initial application. Total payables 10,023 13,511 (i) Change in accounting policy Financial Statements 50 In accordance with NSW Treasury policy TC 09/01 Accounting for Superannuation, the Division has changed its policy 4. Provisions State Transit Authority on the recognition of superannuation actuarial gains and losses. Such actuarial gains and losses are now recognised of New South Wales 52 outside of profit or loss in the ‘Statement of Recognised Income and Expense’. Previously, actuarial gains and losses were Current recognised through profit or loss. State Transit Employee benefits 69,430 68,408 Authority Division 102 The change in policy has been adopted on the basis that recognition outside profit or loss provides reliable and more Workers’ compensation 4,963 4,601 Western Sydney relevant information as it better reflects the nature of actuarial gains and losses. These actuarial gains/losses are Total current provisions 74,393 73,009 Buses Division 123 re-measurements, based on assumptions that do not necessarily reflect the ultimate cost of providing superannuation. Non-current The change in accounting policy increases the net profit/(loss) from continuing operations from nil to $45.153M Employee benefits 5,050 5,022 Appendices 144 (2008: from nil to $22.199M). Retirement benefits 5(b)(i) 106,268 64,111 Workers’ compensation 24,510 20,350 Index 179 Total non-current provisions 135,828 89,483
112 State Transit Authority of New South Wales - Annual Report 2008/09 113 Customer Service Annual Financial Statements State Transit Authority Division
Contents Notes to and forming part of the financial statements Notes to and forming part of the financial statements for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 Chaiman and Chief 5. Retirement Benefits 5. Retirement Benefits (continued) Executive’s Foreword 3 (a) The Pooled Fund holds in trust the investments of the closed NSW public sector superannuation schemes: (b) (ii) Reconciliation of the present value of the defined benefit obligation: SASS SANCS SSS Total About State Transit 4 (a) SASS State Authorities Superannuation Scheme $’000 $’000 $’000 $’000 Network Maps 7 (b) SANCS State Authorities Non-Contributory Superannuation Scheme As at 30 June 2009 Performance Highlights 10 Present value of partly funded defined benefit (c) SSS State Superannuation Scheme obligations at beginning of the year 264,033 25,306 11,743 301,082 Year In Review 14 These schemes are all defined benefit schemes – at least a component of the final benefit is derived from a multiple of Current service cost 5,224 1,271 110 6,605 member salary and years of membership. Interest cost 16,456 1,550 753 18,759 Customer Service 16 Contributions by fund participants 3,490 - 123 3,613 Environment 26 All the schemes are closed to new members. Actuarial (gains)/losses (984) 1,605 1,387 2,008 Safety 28 All fund assets are invested by the Trustee at arm’s length through independent fund managers. Benefits paid (30,111) (3,612) (1,647) (35,370)
People 34 Present value of partly funded defined benefit Competitive Business 42 (b) The principal actuarial assumptions that have been used in the calculation are: obligations at end of the year 258,108 26,120 12,469 296,697 Western Sydney Buses 48 2009 2008 % pa % pa Discount rate 5.59 6.55 As at 30 June 2008 Financial Statements 50 Expected return on fund assets as at 30 June 8.13 8.3 Present value of partly funded defined benefit obligations at beginning of the year 280,972 25,099 10,887 316,958 State Transit Authority Expected rate of salary increases 3.5 3.5 of New South Wales 52 Current service cost 5,651 1,338 82 7,071 Expected rate of increase in consumer price index 2.5 2.5 State Transit Interest cost 17,129 1,511 682 19,322 Authority Division 102 The Projected Unit Credit (PUC) valuation method was used to determine the present value of the defined benefit Contributions by fund participants 3,574 - 93 3,667 Western Sydney obligations and the related current service costs. This method sees each period of service as giving rise to an additional Actuarial (gains)/losses (14,426) 172 (36) (14,290) Buses Division 123 unit of benefit entitlement and measures each unit separately to build up the final obligation. Benefits paid (28,867) (2,814) 35 (31,646)
Present value of partly funded defined benefit obligations at end of the year 264,033 25,306 11,743 301,082 Appendices 144 (i) The assessed liability and funds held in reserve account with the Trustee are as follows: SASS SANCS SSS Total $’000 $’000 $’000 $’000 Index 179 As at 30 June 2009 Gross liability 258,108 26,120 12,469 296,697 Reserve balance (172,652) (8,587) (9,190) (190,429) Total unfunded liability 85,456 17,533 3,279 106,268
As at 30 June 2008 Gross liability 264,033 25,306 11,743 301,082 Reserve balance (213,286) (11,942) (12,047) (237,275) Total unfunded liability 50,747 13,364 (304) 63,807
114 State Transit Authority of New South Wales - Annual Report 2008/09 115 Customer Service Annual Financial Statements State Transit Authority Division
Contents Notes to and forming part of the financial statements Notes to and forming part of the financial statements for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 Chaiman and Chief 5. Retirement Benefits (continued) 5. Retirement Benefits (continued) Executive’s Foreword 3 (b) (iii) Reconciliation of the fair value of fund assets: (b) (iv) Reconciliation of the assets and liabilities recognised in the Balance Sheet: About State Transit 4 SASS SANCS SSS Total SASS SANCS SSS Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Network Maps 7 As at 30 June 2009 As at 30 June 2009 Performance Highlights 10 Fair value of fund assets at beginning of the year 213,286 11,942 12,047 237,275 Present value of partly funded defined benefit Expected return on fund assets 16,604 894 966 18,464 obligations at end of year 258,108 26,120 12,469 296,697 Year In Review 14 Actuarial gains/(losses) (38,576) (2,080) (2,491) (43,147) Fair value of fund assets at end of year (172,652) (8,587) (9,190) (190,429) Net liability/(asset) recognised in Balance Sheet Customer Service 16 Employer contributions 7,959 1,443 192 9,594 at end of year 85,456 17,533 3,279 106,268 Contributions by fund participants 3,490 - 123 3,613 Environment 26 Benefits paid (30,111) (3,612) (1,647) (35,370) Safety 28 As at 30 June 2008 Fair value of fund assets at end of the year 172,652 8,587 9,190 190,429 People 34 Present value of partly funded defined benefit obligations at end of year 264,033 25,306 11,743 301,082 Competitive Business 42 As at 30 June 2008 Fair value of fund assets at end of year (213,286) (11,942) (12,047) (237,275) Fair value of fund assets at beginning of the year 245,377 14,087 12,315 271,779 Western Sydney Buses 48 Net liability/(asset) recognised in Balance Sheet Expected return on fund assets 17,991 1,060 956 20,007 at end of year 50,747 13,364 (304) 63,807 Actuarial gains/(losses) (33,065) (1,904) (1,521) (36,490) Financial Statements 50 Employer contributions 8,276 1,513 168 9,957 (v) Historical information: State Transit Authority Contributions by fund participants 3,574 - 94 3,668 of New South Wales 52 SASS SANCS SSS Total Benefits paid (28,867) (2,814) 35 (31,646) $’000 $’000 $’000 $’000 State Transit Fair value of fund assets at end of the year 213,286 11,942 12,047 237,275 Authority Division 102 As at 30 June 2009 Present value of defined benefit obligation 258,108 26,120 12,467 296,695 Western Sydney Buses Division 123 Fair value of fund assets (172,653) (8,587) (9,189) (190,429) (Surplus)/deficit in fund 85,455 17,533 3,278 106,266 Experience adjustments – fund liabilities (984) 1,605 1,387 2,008 Appendices 144 Experience adjustments – fund assets 38,576 2,080 2,491 43,147
Index 179 As at 30 June 2008 Present value of defined benefit obligation 264,033 25,307 11,743 301,083 Fair value of fund assets (213,286) (11,942) (12,046) (237,274) Total unfunded liability 50,747 13,365 (303) 63,809 Experience adjustments – fund liabilities (14,426) 172 (36) (14,290) Experience adjustments – fund assets 33,065 1,904 1,521 36,490
(vi) Expected employer contribution to be paid during the annual reporting period beginning after the reporting date: SASS SANCS SSS Total $’000 $’000 $’000 $’000 As at 30 June 2009 7,679 1,446 196 9,321 As at 30 June 2008 7,862 1,513 150 9,525
116 State Transit Authority of New South Wales - Annual Report 2008/09 117 Customer Service Annual Financial Statements State Transit Authority Division
Contents Notes to and forming part of the financial statements Notes to and forming part of the financial statements for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 Chaiman and Chief 5. Retirement Benefits (continued) 5. Retirement Benefits (continued) Executive’s Foreword 3 (b) (vii) Defined benefits fund expense/(income) for the period: (b) (x) A summary of the financial position of the fund calculated in accordance with AAS 25 Financial Reporting by Superannuation Plans as supplied by the Trustee: About State Transit 4 SASS SANCS SSS Total $’000 $’000 $’000 $’000 SASS SANCS SSS Total Network Maps 7 Ending 30 June 2009 $’000 $’000 $’000 $’000 Performance Highlights 10 Current service cost 5,224 1,271 110 6,605 As at 30 June 2009 Interest cost 16,456 1,550 753 18,759 Accrued benefits 235,745 24,024 9,154 268,923 Year In Review 14 Expected return on fund assets (16,604) (894) (966) (18,464) Net market value of the fund assets (172,653) (8,587) (9,189) (190,429) Net (surplus)/deficit 63,092 15,437 (35) 78,494 Customer Service 16 Total included in retirement benefits expense 5,076 1,927 (103) 6,900
Environment 26 Ending 30 June 2008 Safety 28 Current service cost 5,651 1,338 82 7,071 As at 30 June 2008 People 34 Interest cost 17,129 1,511 683 19,323 Accrued benefits 262,054 25,392 10,869 298,315 Competitive Business 42 Expected return on fund assets (17,991) (1,060) (956) (20,007) Net market value of the fund assets (213,286) (11,942) (12,046) (237,274) Western Sydney Buses 48 Total included in retirement benefits expense 4,789 1,789 (191) 6,387 Net (surplus)/deficit 48,768 13,450 (1,177) 61,041
(viii) Amounts recognised in the Statement of Recognised Income and Expense (xi) Recommended contribution rates for the period ending Financial Statements 50 SASS SANCS SSS Total SASS SANCS SSS State Transit Authority Economic entity $’000 $’000 $’000 $’000 Multiple of Multiple of of New South Wales 52 Ending 30 June 2009 member % member member contributions salary contributions State Transit Actuarial (gains)/losses 37,592 3,684 3,877 45,153 Authority Division 102 30 June 2009 2.20 2.50 1.60
Western Sydney Economic entity 30 June 2008 2.20 2.50 1.60 Buses Division 123 Ending 30 June 2008 The method used to determine the employer contribution recommendations at the last actuarial review was the Actuarial (gains)/losses 18,639 2,076 1,484 22,199 Aggregate Funding method. The method adopted affects the timing of the cost to the employer. Appendices 144 The cumulative amount of actuarial losses/(gains) recognised in the ‘Statement of Recognised Income and Expense’ Under the Aggregate Funding method, the employer contribution rate is determined so that sufficient assets will be since 01 July 2004 is: available to meet benefit payments to existing members, taking into account the current value of assets and future Index 179 contributions. SASS SANCS SSS Total Economic entity $’000 $’000 $’000 $’000 (xii) The weighted-average economic assumptions adopted for the last actuarial review of the fund were: Ending 30 June 2009 42,254 3,524 3,003 48,781 2009 2008 % pa % pa (ix) Actual return on fund assets for the period ended: Expected rate of return on fund assets backing current defined benefit liabilities 8.3 7.7 SASS SANCS SSS Total Expected rate of return on fund assets backing other liabilities 7.3 7.0 $’000 $’000 $’000 $’000 Expected salary increase rate 4.0 4.0 30 June 2009 (20,848) (1,185) (1,192) (23,225) Expected rate of CPI increase 2.5 2.5 30 June 2008 (15,221) (845) (835) (16,901)
The expected return on assets assumption is determined by weighting the expected long-term return for each asset class by the target allocation of assets to each class. The returns used for each class are net of investment tax and investment fees.
118 State Transit Authority of New South Wales - Annual Report 2008/09 119 Customer Service Annual Financial Statements State Transit Authority Division
Contents Notes to and forming part of the financial statements Statement by the Division Head for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 Pursuant to section 41(C)(1B) of the Public Finance and Audit Act 1983, I declare that in my opinion: Chaiman and Chief 5. Retirement Benefits (continued) (b) (xiii) The percentage invested in each asset class at the balance sheet date: Executive’s Foreword 3 1. The accompanying financial statements exhibit a true and fair view of the financial position and transactions of the State About State Transit 4 2009 2008 Transit Authority Division as at 30 June 2009; and % pa % pa Network Maps 7 Australian equities 32.1 31.6 2. The financial statements have been prepared in accordance with the provisions of the Australian Accounting Standards and Interpretations, Public Finance and Audit Act 1983, Public Finance and Audit Regulation 2005 and the Treasurer’s Performance Highlights 10 Overseas equities 26.0 25.4 Directions. Australian fixed interest securities 6.2 7.4 Year In Review 14 Overseas fixed interest securities 4.7 7.5 Further, at the date of this statement, I am not aware of any circumstances which would render the particulars included in the financial statements to be misleading or inaccurate. Customer Service 16 Property 10.0 11 Cash 8.0 6.1 Environment 26 Other 13.0 11 Safety 28 People 34 (xiv) If a surplus exists in the employer’s interest in the fund, the employer may be able to take advantage of it in the Competitive Business 42 form of a reduction in the required contribution rate, depending on the advice of the fund’s actuary. Peter Rowley Western Sydney Buses 48 Where a deficiency exists, the employer is responsible for any difference between the employer’s share of the fund Division Head assets and the defined benefit obligation.
Financial Statements 50 SYDNEY - 19 October 2009 State Transit Authority 6. Equity of New South Wales 52 Accumulated funds State Transit 2009 2008 Authority Division 102 $’000 $’000 Western Sydney Balance at the beginning of the year - - Buses Division 123 Net superannuation actuarial gains/(losses) (45,153) (22,199) Net profit for the year 45,153 22,199 Appendices 144 Balance at the end of the year - -
Index 179 7. Events After The Balance Sheet Date The Public Sector Employment and Management (Departmental Amalgamations) Order 2009 dated 27 July 2009 has established the Department of Transport and Infrastructure. This legislation may impact the State Transit Authority Division, where in the opinion of the Director General of the Department of Premier and Cabinet, staff involved in activities prescribed by the Order are removed as required from the Division and added to the Department of Transport and Infrastructure at a future date.
End of Audited Financial Statements
120 State Transit Authority of New South Wales - Annual Report 2008/09 121 Contents
Independent Auditor’s Report 124 Notes to and forming part of the financial statements 1. Summary of significant accounting Income statement 126 policies 130 2. Receivables 134 Balance sheet 127 3. Payables 134 Contents 4. Provisions 134 Statement of recognised 5. Retirement benefits 135 income and expense 128 Letter to the Minister 2 6. Equity 142 Chaiman and Chief 7. Events after the balance sheet date 143 Executive’s Foreword 3 Cash flow statement 129 About State Transit 4 Statement by the Division Head 143 Network Maps 7 Performance Highlights 10
Year In Review 14 Customer Service 16 Environment 26 Safety 28 People 34 Competitive Business 42 Western Sydney Buses 48
Financial Statements 50 State Transit Authority of New South Wales 52 State Transit Authority Division 102 Western Sydney Buses Division 123
Appendices 144
Index 179 Financial Statements Western Sydney Buses Division
122 State Transit Authority of New South Wales - Annual Report 2008/09 123 Customer Service Annual Financial Statements Western Sydney Buses Division
Contents Independent Auditor’s Report for the year ended 30 June 2009 Letter to the Minister 2 Chaiman and Chief Executive’s Foreword 3 About State Transit 4 Network Maps 7 Performance Highlights 10
Year In Review 14 Customer Service 16 Environment 26 Safety 28 People 34 Competitive Business 42 Western Sydney Buses 48
Financial Statements 50 State Transit Authority of New South Wales 52 State Transit Authority Division 102 Western Sydney Buses Division 123
Appendices 144
Index 179
124 State Transit Authority of New South Wales - Annual Report 2008/09 125 Customer Service Annual Financial Statements Western Sydney Buses Division
Start of Audited Financial Statements
Contents Income Statement Balance Sheet for the year ended 30 June 2009 as at 30 June 2009 Letter to the Minister 2 Chaiman and Chief 2009 2008 2009 2008 Executive’s Foreword 3 Notes $’000 $’000 Notes $’000 $’000 Income Current Assets About State Transit 4 Personnel services 3,506 3,330 Receivables 2 353 411 Network Maps 7 Retirement benefits - defined benefits 5(b)(vii) - 1 Total current assets 353 411 Performance Highlights 10 Total income 3,506 3,331 Non-Current Assets Year In Review 14 Expenses Receivables 2 86 72 Customer Service 16 Annual leave 225 162 Total non-current assets 86 72 Fringe benefits tax (2) 1 Total assets 439 483 Environment 26 Long service leave 55 24 Safety 28 Payroll tax 141 135 Current Liabilities People 34 Retirement benefits - defined benefits 5(b)(vii) - - Payables 3 54 195 Competitive Business 42 Retirement benefits - defined contributions 207 188 Provisions 4 299 216 Western Sydney Buses 48 Salaries and wages 2,817 2,688 Total current liabilities 353 411 Workers compensation 34 116 Total expenses 3,477 3,314 Non-Current Liabilities Financial Statements 50 Surplus/(deficit) from continuing activities before income tax 29 17 Provisions 4 86 72 State Transit Authority of New South Wales 52 Total surplus/(deficit) attributable to owners 29 17 Total non-current liabilities 86 72 Total liabilities 439 483 State Transit The above statement should be read in conjunction with the accompanying notes. Authority Division 102 Net assets - - Western Sydney Buses Division 123 Equity Accumulated funds - - Appendices 144 Total equity - -
The above statement should be read in conjunction with the accompanying notes. Index 179
126 State Transit Authority of New South Wales - Annual Report 2008/09 127 Customer Service Annual Financial Statements Western Sydney Buses Division
Contents Statement of Recognised Income and Expense Cash Flow Statement for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 Chaiman and Chief 2009 2008 2009 2008 Executive’s Foreword 3 $’000 $’000 $’000 $’000 Net profit from continuing activities 29 17 Net cash flows from operating activities - - About State Transit 4 Net superannuation actuarial gains/(losses) (29) (17) Net cash flows from investing activities - - Network Maps 7 Total recognised income and expenses for the year - - Net cash flows from financing activities - - Performance Highlights 10 Net increase/(decrease) in cash and cash equivalents - - The above statement should be read in conjunction with the accompanying notes. Cash and cash equivalents at the beginning of the year - - Year In Review 14 Cash and cash equivalents at the end of the year - -
Customer Service 16 The above statement should be read in conjunction with the accompanying notes. Environment 26 Safety 28 People 34 Competitive Business 42 Western Sydney Buses 48
Financial Statements 50 State Transit Authority of New South Wales 52 State Transit Authority Division 102 Western Sydney Buses Division 123
Appendices 144
Index 179
128 State Transit Authority of New South Wales - Annual Report 2008/09 129 Customer Service Annual Financial Statements Western Sydney Buses Division
Contents Notes to and forming part of the financial statements Notes to and forming part of the financial statements for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 Chaiman and Chief 1. Summary of Significant Accounting Policies 1. Summary of Significant Accounting Policies (continued) Executive’s Foreword 3 (a) Reporting entity (c) Comparative information About State Transit 4 Western Sydney Buses Division (“WSB Division”) is a Division of the NSW Government Service, established pursuant to Comparative figures are, where appropriate, reclassified to give a meaningful comparison with the current year. Part 2 of Schedule 1 to the Public Sector Employment and Management Act 2002. It is a not-for-profit entity as profit Network Maps 7 is not its principal objective. It is consolidated as part of the NSW Total State Sector Accounts. It is domiciled in Australia (d) Income Performance Highlights 10 and its principal office is at Level 1, 219-241 Cleveland Street, Strawberry Hills NSW 2010. Income is measured at the fair value of the consideration received or receivable. Revenue from the rendering of personnel services is recognised when the service is provided and only to the extent that the associated recoverable expenses WSB Division’s objective is to provide personnel services to the State Transit Authority of New South Wales. are recognised. Year In Review 14 WSB Division commenced operations on 17 March 2006 when it assumed responsibility for the employees and employee- (e) Receivables Customer Service 16 related liabilities of the former employer, the State Transit Authority of New South Wales. The assumed liabilities were A receivable is recognised when it is probable that the future cash inflows associated with it will be realised and it has recognised on 17 March 2006 together with an offsetting receivable representing the related funding due from the Environment 26 a value that can be measured reliably. It is derecognised when the contractual or other rights to future cash flows from former employer. Safety 28 it expire or are transferred. The financial report was authorised for issue by Mr Peter Rowley, Division Head, on 19 October 2009. The report will not People 34 A receivable is measured initially at fair value and subsequently at amortised cost using the effective interest rate method, be amended and reissued as it has been audited. Competitive Business 42 less any allowance for impairment. A short-term receivable with no stated interest rate is measured at the original invoice (b) Basis of preparation amount where the effect of discounting is immaterial. An invoiced receivable is due for settlement within thirty days Western Sydney Buses 48 of invoicing. This is a general purpose financial report prepared in accordance with the requirements of Australian Accounting Standards and Interpretations, the Public Finance and Audit Act 1983, the Public Finance and Audit Regulation 2005, If there is objective evidence at year end that a receivable may not be collectable, its carrying amount is reduced by means Financial Statements 50 and specific directions issued by the Treasurer. of an allowance for impairment and the resulting loss is recognised in the income statement. Receivables are monitored during the year and bad debts are written off against the allowance when they are determined to be irrecoverable. State Transit Authority Generally, the historical cost basis of accounting has been adopted and the financial report does not take into account Any other loss or gain arising when a receivable is derecognised is also recognised in the income statement. of New South Wales 52 changing money values or current valuations. However, certain provisions are measured at fair value. See note 1(g). State Transit (f) Payables Authority Division 102 The accrual basis of accounting has been adopted in the preparation of the financial report, except for cash flow information. Payables include accrued wages, salaries, and related on costs (such as payroll tax, fringe benefits tax and workers’ Western Sydney compensation insurance) where there is certainty as to the amount and timing of settlement. Buses Division 123 Management’s judgements, key assumptions and estimates are disclosed in the relevant notes to the financial report. A payable is recognised when a present obligation arises under a contract or otherwise. It is derecognised when the The financial statements have been prepared on a going concern basis which assumes that repayment of debts will obligation expires or is discharged, cancelled or substituted. Appendices 144 be met as and when they fall due, without any intention or necessity to liquidate assets or otherwise winding up the operations. A short-term payable with no stated interest rate is measured at historical cost if the effect of discounting is immaterial.
Index 179 All amounts are rounded to the nearest one thousand dollars and are expressed in Australian currency.
130 State Transit Authority of New South Wales - Annual Report 2008/09 131 Customer Service Annual Financial Statements Western Sydney Buses Division
Contents Notes to and forming part of the financial statements Notes to and forming part of the financial statements for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 Chaiman and Chief 1. Summary of Significant Accounting Policies (continued) 1. Summary of Significant Accounting Policies (continued) Executive’s Foreword 3 (g) Employee benefit provisions and expenses (h) Accounting standards issued but not yet effective About State Transit 4 Provisions are made for liabilities of uncertain amount or uncertain timing of settlement. The Authority has assessed the new Australian Accounting Standards that have recently been issued or amended but are not yet effective or applied. It has been determined that these new accounting standards will have no material impact on Network Maps 7 Employee benefit provisions represent expected amounts payable in the future in respect of unused entitlements the financial statements in the period of initial application. Performance Highlights 10 accumulated as at the reporting date. Liabilities associated with, but that are not, employee benefits (such as payroll tax) are recognised separately. (i) Change in accounting policy In accordance with NSW Treasury policy TC 09/01 Accounting for Superannuation, the Division has changed its policy Superannuation and leave liabilities are recognised as expenses and provisions when the obligations arise, which is usually Year In Review 14 on the recognition of superannuation actuarial gains and losses. Such actuarial gains and losses are now recognised through the rendering of service by employees. Customer Service 16 outside of profit or loss in the ‘Statement of recognised income and expense’. Previously, actuarial gains and losses were Long-term annual leave (i.e. that is not expected to be taken within twelve months) is measured at present value using recognised through profit or loss. Environment 26 a discount rate equal to the market yield on government bonds. The change in policy has been adopted on the basis that recognition outside profit or loss provides reliable and more Safety 28 Superannuation and long service leave provisions are actuarially assessed prior to each reporting date and are measured relevant information as it better reflects the nature of actuarial gains and losses. These actuarial gains/losses are People 34 at the present value of the estimated future payments. re-measurements, based on assumptions that do not necessarily reflect the ultimate cost of providing superannuation. Competitive Business 42 The unconditional component of the long service leave entitlements is classified as a current liability. It relates to staff The change in accounting policy increases the net profit/(loss) from continuing operations from nil to $0.029M Western Sydney Buses 48 currently employed for nine or more years at the reporting date. (2008: from nil to $0.017M).
All other employee benefit liabilities (i.e. for benefits falling due wholly within twelve months after reporting date) are Financial Statements 50 assessed by management and are measured at the undiscounted amount of the estimated future payments. State Transit Authority The amount recognised for defined superannuation provisions is the net total of the present value of the defined benefit of New South Wales 52 obligation at the reporting date, minus the fair value at that date of any plan assets out of which the obligations are to be State Transit settled directly. Authority Division 102 Actuarial gains and losses are recognised outside of profit or loss in the ‘Statement of recognised income and expense’ Western Sydney in the year in which they occur. Buses Division 123 The actuarial assessment of defined superannuation provisions uses the Projected Unit Credit Method and reflects estimated future salary increases and the benefits set out in the terms of the plan. The liabilities are discounted using Appendices 144 the market yield on government bonds of similar maturity to those obligations. Actuarial assumptions are unbiased and mutually compatible and financial assumptions are based on market expectations for the period over which the obligations are to be settled. Index 179 Contributions to defined contribution superannuation plans are expensed when employees have rendered service entitling them to the contributions.
132 State Transit Authority of New South Wales - Annual Report 2008/09 133 Customer Service Annual Financial Statements Western Sydney Buses Division
Contents Notes to and forming part of the financial statements Notes to and forming part of the financial statements for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2
Chaiman and Chief 2009 2008 5. Retirement Benefits Executive’s Foreword 3 Notes $’000 $’000 (a) The Pooled Fund holds in trust the investments of the closed NSW public sector superannuation schemes: About State Transit 4 2. Receivables (a) SASS State Authorities Superannuation Scheme Network Maps 7 Current (b) SANCS State Authorities Non-Contributory Superannuation Scheme Receivables from State Transit Authority 353 411 Performance Highlights 10 Total current receivables 353 411 (c) SSS State Superannuation Scheme
Year In Review 14 These schemes are all defined benefit schemes – at least a component of the final benefit is derived from a multiple of Non-current member salary and years of membership. Customer Service 16 Receivables from State Transit Authority 76 34 Environment 26 Retirement benefits 5(b)(i) 10 38 All the schemes are closed to new members. Safety 28 Total non-current receivables 86 72 All fund assets are invested by the Trustee at arm’s length through independent fund managers. People 34 Competitive Business 42 3. Payables (b) The principal actuarial assumptions that have been used in the calculation are: Western Sydney Buses 48 Accrued salaries, wages and on-costs 54 195 2009 2008 Total payables 54 195 % pa % pa Discount rate 5.59 6.55 Financial Statements 50 Expected return on fund assets as at 30 June 8.13 8.30 4. Provisions State Transit Authority Expected rate of salary increases 3.50 3.50 of New South Wales 52 Current Expected rate of increase in consumer price index 2.50 2.50 State Transit Employee benefits 299 216 Authority Division 102 Total current provisions 299 216 The Projected Unit Credit (PUC) valuation method was used to determine the present value of the defined benefit Western Sydney obligations and the related current service costs. This method sees each period of service as giving rise to an additional Buses Division 123 Non-current unit of benefit entitlement and measures each unit separately to build up the final obligation.
Employee benefits 86 72 Appendices 144 Total non-current provisions 86 72 (i) The assessed liability and funds held in reserve account with the Trustee are as follows: SASS SANCS SSS Total $’000 $’000 $’000 $’000 Index 179 As at 30 June 2009 Gross liability 131 22 - 153 Reserve balance (136) (27) - (163) Total over funded liability (5) (5) - (10)
As at 30 June 2008 Gross liability 121 18 - 139 Reserve balance (147) (30) - (177) Total over funded liability (26) (12) - (38)
134 State Transit Authority of New South Wales - Annual Report 2008/09 135 Customer Service Annual Financial Statements Western Sydney Buses Division
Contents Notes to and forming part of the financial statements Notes to and forming part of the financial statements for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 Chaiman and Chief 5. Retirement Benefits (continued) 5. Retirement Benefits (continued) Executive’s Foreword 3 (b) (ii) Reconciliation of the present value of the defined benefit obligation: (b) (iii) Reconciliation of the fair value of fund assets: About State Transit 4 SASS SANCS SSS Total SASS SANCS SSS Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Network Maps 7 As at 30 June 2009 As at 30 June 2009 Performance Highlights 10 Present value of partly funded defined benefit Fair value of fund assets at beginning of the year 147 30 - 177 obligations at beginning of the year 121 18 - 139 Expected return on fund assets 12 2 - 14 Year In Review 14 Current service cost 4 1 - 5 Actuarial gains/(losses) (24) (5) - (29) Customer Service 16 Interest cost 8 1 - 9 Employer contributions 1 - - 1 Contributions by fund participants 3 - - 3 Contributions by fund participants 3 - - 3 Environment 26 Actuarial (gains)/losses (2) 2 - - Benefits paid (3) - - (3) Safety 28 Benefits paid (3) - - (3) Fair value of fund assets at end of the year 136 27 - 163 People 34 Present value of partly funded defined benefit Competitive Business 42 obligations at end of the year 131 22 - 153 As at 30 June 2008 Western Sydney Buses 48 Fair value of fund assets at beginning of the year 151 31 - 182 As at 30 June 2008 Expected return on fund assets 12 3 - 15 Present value of partly funded defined benefit Actuarial gains/(losses) (19) (4) - (23) Financial Statements 50 obligations at beginning of the year 116 16 - 132 Employer contributions 4 - - 4 State Transit Authority Current service cost 4 1 - 5 Contributions by fund participants 3 - - 3 of New South Wales 52 Interest cost 8 1 - 9 Benefits paid (4) - - (4) State Transit Contributions by fund participants 3 - - 3 Fair value of fund assets at end of the year 147 30 - 177 Authority Division 102 Actuarial (gains)/losses (6) - - (6) Western Sydney Benefits paid (4) - - (4) Buses Division 123 Present value of partly funded defined benefit obligations at end of the year 121 18 - 139 Appendices 144
Index 179
136 State Transit Authority of New South Wales - Annual Report 2008/09 137 Customer Service Annual Financial Statements Western Sydney Buses Division
Contents Notes to and forming part of the financial statements Notes to and forming part of the financial statements for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 Chaiman and Chief 5. Retirement Benefits (continued) 5. Retirement Benefits (continued) Executive’s Foreword 3 (b) (iv) Reconciliation of the assets and liabilities recognised in the balance sheet: (b) (vii) Defined benefits fund expense/(income) for the period: About State Transit 4 SASS SANCS SSS Total SASS SANCS SSS Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Network Maps 7 As at 30 June 2009 Ending 30 June 2009 Performance Highlights 10 Present value of partly funded defined benefit Current service cost 4 1 - 5 obligations at end of year 131 22 - 153 Interest cost 8 1 - 9 Year In Review 14 Fair value of fund assets at end of year (136) (27) - (163) Expected return on fund assets (12) (2) - (14) Net liability/(asset) recognised in balance sheet Customer Service 16 Total included in retirement benefits expense - - - - at end of year (5) (5) - (10)
Environment 26 Ending 30 June 2008 As at 30 June 2008 Safety 28 Current service cost 4 1 - 5 Present value of partly funded defined benefit People 34 Interest cost 8 1 - 9 obligations at end of year 121 18 - 139 Competitive Business 42 Expected return on fund assets (12) (3) - (15) Fair value of fund assets at end of year (147) (30) - (177) Total included in retirement benefits expense - (1) - (1) Western Sydney Buses 48 Net liability/(asset) recognised in balance sheet at end of year (26) (12) - (38) (viii) Amounts recognised in the Statement of Recognised Income and Expense Financial Statements 50 (v) Historical information: SASS SANCS SSS Total State Transit Authority Economic entity $’000 $’000 $’000 $’000 of New South Wales 52 SASS SANCS SSS Total $’000 $’000 $’000 $’000 Ending 30 June 2009 State Transit Actuarial (gains)/losses 22 7 - 29 Authority Division 102 As at 30 June 2009 Present value of defined benefit obligation 130 21 - 151 Western Sydney Economic entity Fair value of fund assets (136) (27) - (163) Buses Division 123 Ending 30 June 2008 (Surplus)/deficit in fund (5) (6) - (11) Actuarial (gains)/losses 13 4 - 17 Experience adjustments – fund liabilities (2) 2 - - Appendices 144 Experience adjustments – fund assets 24 5 - 29 The cumulative amount of actuarial losses/(gains) recognised in the ‘Statement of Recognised Income and Expense’
since 01 July 2004 is: Index 179 As at 30 June 2008 Present value of defined benefit obligation 120 17 - 137 SASS SANCS SSS Total Economic entity $’000 $’000 $’000 $’000 Fair value of fund assets (146) (29) - (175) Ending 30 June 2009 25 8 - 33 Total unfunded liability (26) (12) - (38) Experience adjustments – fund liabilities (6) - - (6) Experience adjustments – fund assets 19 5 - 24
(vi) Expected employer contribution to be paid during the annual reporting period beginning after the reporting date: SASS SANCS SSS Total $’000 $’000 $’000 $’000 As at 30 June 2009 1 - - 1 As at 30 June 2008 5 1 - 6
138 State Transit Authority of New South Wales - Annual Report 2008/09 139 Customer Service Annual Financial Statements Western Sydney Buses Division
Contents Notes to and forming part of the financial statements Notes to and forming part of the financial statements for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 Chaiman and Chief 5. Retirement Benefits (continued) 5. Retirement Benefits (continued) Executive’s Foreword 3 (b) (ix) Actual return on fund assets for the period: (b) (xii) The weighted-average economic assumptions adopted for the last actuarial review of the fund were: About State Transit 4 SASS SANCS SSS Total 2009 2008 $’000 $’000 $’000 $’000 % pa % pa Network Maps 7 Ended 30 June 2009 Expected rate of return on fund assets backing current defined benefit liabilities 8.3 7.7 Performance Highlights 10 Actual return on fund assets (14) (3) - (17) Expected rate of return on fund assets backing other liabilities 7.3 7.0 Expected salary increase rate 4.0 4.0 Year In Review 14 Ended 30 June 2008 Expected rate of CPI increase 2.5 2.5 Actual return on fund assets (10) (2) - (12) Customer Service 16 The expected return on assets assumption is determined by weighting the expected long-term return for each asset Environment 26 (x) A summary of the financial position of the fund calculated in accordance with AAS 25 Financial Reporting class by the target allocation of assets to each class. The returns used for each class are net of investment tax and Safety 28 by Superannuation Plans as supplied by the Trustee: investment fees. People 34 SASS SANCS SSS Total $’000 $’000 $’000 $’000 (xiii) The percentage invested in each asset class at the balance sheet date: Competitive Business 42 As at 30 June 2009 2009 2008 Western Sydney Buses 48 % pa % pa Accrued benefits 121 18 - 139 Australian equities 32.1 31.6 Net market value of the fund assets (136) (27) - (163) Overseas equities 26 25.4 Financial Statements 50 Net (surplus)/deficit (15) (9) - (24) Australian fixed interest securities 6.2 7.4 State Transit Authority Overseas fixed interest securities 4.7 7.5 of New South Wales 52 As at 30 June 2008 Property 10 11.0 State Transit Accrued benefits 119 17 - 136 Authority Division 102 Net market value of the fund assets (146) (29) - (175) Cash 8 6.1 Other 13 11.0 Western Sydney Net (surplus)/deficit (27) (12) - (39) Buses Division 123 (xi) Recommended contribution rates for the period ending (xiv) If a surplus exists in the employer’s interest in the fund, the employer may be able to take advantage of it in the SASS SANCS SSS form of a reduction in the required contribution rate, depending on the advice of the fund’s actuary. Appendices 144 Multiple of Multiple of Where a deficiency exists, the employer is responsible for any difference between the employer’s share of the fund member % member member assets and the defined benefit obligations. Index 179 contributions salary contributions 30 June 2009 0.50 0.00 - 30 June 2008 1.90 2.50 -
The method used to determine the employer contribution recommendations at the last actuarial review was the Aggregate Funding method. The method adopted affects the timing of the cost to the employer.
Under the Aggregate Funding method, the employer contribution rate is determined so that sufficient assets will be available to meet benefit payments to existing members, taking into account the current value of assets and future contributions.
140 State Transit Authority of New South Wales - Annual Report 2008/09 141 Customer Service Annual Financial Statements Western Sydney Buses Division
Contents Notes to and forming part of the financial statements Statement by the Division Head for the year ended 30 June 2009 for the year ended 30 June 2009 Letter to the Minister 2 Pursuant to section 41(C)(1B) of the Public Finance and Audit Act 1983, I declare that in my opinion: Chaiman and Chief 6. Equity Accumulated funds Executive’s Foreword 3 1. The accompanying financial statements exhibit a true and fair view of the financial position and transactions of the Western About State Transit 4 2009 2008 Sydney Buses Division as at 30 June 2009; and $’000 $’000 Network Maps 7 Balance at the beginning of the year - - 2. The financial statements have been prepared in accordance with the provisions of the Australian Accounting Standards and Interpretations, Public Finance and Audit Act 1983, Public Finance and Audit Regulation 2005 and the Treasurer’s Performance Highlights 10 Net superannuation actuarial gains/(losses) (29) (17) Directions. Net profit for the year 29 17 Year In Review 14 Balance at the end of the year - - Further, at the date of this statement, I am not aware of any circumstances which would render the particulars included in the financial statements to be misleading or inaccurate. Customer Service 16 Environment 26 7. Events After The Balance Sheet Date Safety 28 The Public Sector Employment and Management (Departmental Amalgamations) Order 2009 dated 27 July 2009 has established the Department of Transport and Infrastructure. This legislation may impact the Western Sydney Buses Division, People 34 where in the opinion of the Director General of the Department of Premier and Cabinet, staff involved in activities prescribed Competitive Business 42 by the Order are removed as required from the Division and added to the Department of Transport and Infrastructure at a future date. Peter Rowley Western Sydney Buses 48 Division Head
Financial Statements 50 State Transit Authority End of Audited Financial Statements of New South Wales 52 SYDNEY - 19 October 2009 State Transit Authority Division 102 Western Sydney Buses Division 123
Appendices 144
Index 179
142 State Transit Authority of New South Wales - Annual Report 2008/09 143 Contents
Statutory Information 14. Overseas Travel 154 31. Agreements with the 1. Summary of Land 146 15. Freedom of Information 155 Community Relations Commission 169 2. Capital Works 16. Consultancy and Expenditure 146 Professional Fees 157 32. Equal Employment Opportunity Target 3. Consolidated Income 17. Committees (internal Groups 169 and Expenditure and external) 157 Statements 147 33. Occupational Health, Contents 18. Environmental and Safety and Rehabilitation 170 WRAPP Report 158 34. Corruption Prevention Letter to the Minister 2 Organisational Items 19. NSW Sustainability and Ethics 170 Policy Targets 160 Chaiman and Chief 4. 2009 Executive Structure 148 35. Privacy Management 171 Executive’s Foreword 3 20. Heritage Management 161 5. State Transit Board 36. CES/SES Bands 171 About State Transit 4 Members 2008/09 149 21. Mobile Phones 161 37. Senior Executives’ Network Maps 7 6. Legislation 150 22. Credit Card Certification 161 Qualifications 172 Performance Highlights 10 38. SES Performance Review Commercial Items Operational Items and Remuneration 172 39. 2008 Annual Award Year In Review 14 7. Government Funding and 23. Service Changes in Social Program 151 Response to Community Recipients 174 Customer Service 16 Consultation 162 8. Implementation of 2008/09 Environment 26 Fares Determinations 151 24. Customer Response 162 Other Safety 28 9. Funds Granted to Non- 25. Guarantee of Service 163 40. List of Publications 175 People 34 Government Community 26. Disability Plans 163 41. Annual Report Organisations 153 Competitive Business 42 Publication Details 175 10. Liability Management Western Sydney Buses 48 42. Key Performance Performance 153 Human Resource Items Indicators 175 11. Investment Management 27. Human Resources 43. Contact Details 178 Financial Statements 50 Performance 153 Statistics 164 State Transit Authority 12. Performance in Paying 28. Equal Employment of New South Wales 52 Accounts 154 Opportunity 165 State Transit 13. Response to matters 29. Strategic Plan for Authority Division 102 raised by the Women 166 Western Sydney Auditor-General 154 30. Ethnic Affairs Priority Buses Division 123 Statement and Agreements 167
Appendices 144
Index 179 Appendices State Transit Authority of New South Wales
144 State Transit Authority of New South Wales - Annual Report 2008/09 145 Appendices Statutory Information
Contents 1. Summary of Land 3. Consolidated Income and Expenditure In accordance with Section 41B(1)(d) of the Public Finance and Audit Act 1983, stated below is a summary of the Authority’s Comparison between actual and budget for the year ended 30 June 2009 land holding as at 30 June 2009 according to actual use of the land. Letter to the Minister 2 2007-08 2008-09 2008-09 2008-09 2008-09 2009-10 Actual Actual Budget Variance Variance Budget Chaiman and Chief $’000 $’000 $’000 $’000 % $’000 Executive’s Foreword 3 Land Use Classification $’000 Income About State Transit 4 Bus depots 121,800 Operational revenue 537,647 546,069 561,175 (15,106) -2.69% 552, 754 Network Maps 7 Minor operational assets 439 Interest 7,145 10,553 11,394 (841) -7.38% 15,829 Performance Highlights 10 Commercial properties 4,143 Other revenue 23,727 30,556 26,136 4,420 16.91% 24,128 Total 126,382 Total income 568,519 587,178 598,705 (11,527) -1.93% 592,711 Year In Review 14 Expenditure Customer Service 16 Disposal of property Employee benefits 318,446 341,942 335,536 (6,406) -1.91% 350,147 Environment 26 During the year State Transit disposed of one commercial site at Newcastle for $0.140 million. The land represented a surplus to operational requirements. Depreciation and amortisation 32,984 33,121 34,465 1,344 3.90% 34,272 Safety 28 Fleet running expenses 89,916 93,793 104,575 10,782 10.31% 88,467 People 34 Any access to documents relating to the disposal can be obtained under the Freedom of Information Act. Borrowing costs 5,652 8,551 8,621 70 0.81% 15,113 Competitive Business 42 Other operating costs 96,786 97,566 95,234 (2,332) -2.45% 87,648 Western Sydney Buses 48 Total expenditure 543,784 574,973 578,431 3,458 0.60% 575,647 Profit/(loss) before tax 24,735 12,205 20,274 (8,069) -39.80% 17,064
Financial Statements 50 2. Capital Works Expenditure Financial performance comparison between actual 2007/08 and 2008/09 State Transit Authority Major Works Completion Date $’000 of New South Wales 52 Bus Replacement Program In 2008/09, State Transit’s total income grew by $18.7 million compared with the 2007/08 financial year. However, total expenditure increased by $31.2 million resulting in a $12.5 million reduction in gross profit to $12.2 million. State Transit 5 Metrobuses June 09 2,796 Authority Division 102 5 buses delivered The overall growth in income was mainly driven by a rise in Outer and Metropolitan Bus System Contract (O/MBSC) revenue, Western Sydney 250 Volvo Diesel Buses June 11 28,334 resulting from increased operational activity and higher finance lease income received due to accelerated bus acquisitions during the year. Buses Division 123 63 buses delivered 255 Mercedes CNG Buses June 11 59,017 Other revenue was lower than last year due to lower bus charter income due to the expiry of a major contract after Appendices 144 142 buses delivered two-and-a-half years. State Transit’s operating expenses rose in 2008/09 across the major classifications, with significant increases in employee benefits Index 179 and fleet running expenses. These fleet-running expenses included the maintenance, repair and refurbishment of the bus fleet. The employment of additional bus operators and general pay rises for all employees were the main contributors to the higher employee benefits for the year.
A significant increase in capital works spent during 2008/09 required additional borrowings, resulting in a rise in interest expense during the year.
146 State Transit Authority of New South Wales - Annual Report 2008/09 147 Appendices Organisational Items
Contents 4. 2008/09 Executive Structure (as of 30 June 2009) 5. State Transit Board Members 2008/09 Denis Fitzgerald The Hon Barrie Unsworth – Chairman Mr Fitzgerald was appointed to the Board in May 2007. Mr Fitzgerald is a senior teacher in the public education Peter Rowley Mr Unsworth was appointed as Chairman of the State Transit Letter to the Minister 2 system. Mr Fitzgerald has extensive experience in industrial Chief Executive Board in March 2004. Chaiman and Chief relations matters being previously the head of the NSW Executive’s Foreword 3 Mr Unsworth is the former Premier of NSW and Transport Teachers Federation and then holding a number of senior management positions in the union movement before About State Transit 4 Minister, Secretary of the Labor Council and Nominated Commissioner of the Public Transport Commission. He is returning to the teaching profession in recent years. Network Maps 7 a Director of Youth off the Streets Pty Ltd. In 2003/04 Mr Fitzgerald is a member of the Executive of NSW Teachers Performance Highlights 10 Mr Unsworth carried out a major review of bus services Federation. Mr Fitzgerald is a member of the Safety in NSW at the request of the then Minister for Transport Committee of the State Transit Board. CORPORATE SUPPORT Services. Mr Unsworth is a member of the Audit Committee Year In Review 14 of the State Transit Board. Peter Rowley - Chief Executive Customer Service 16 Operational and Corporate Human Resources Finance and Planning Safety Mr Rowley joined the Board as the Chief Executive in June Environment 26 Fleet Support Governance and Administrative Keith Todd 2008. Mr Rowley has worked at State Transit since 1976. Communication Mark McCarthy* Services Roger Wilson Angela Bateman Safety 28 Michael Reardon Mr Todd was appointed to the Board in March 2004. He is He was the business manager for the Olympics, with Lindsay Lee Paul Dunn responsibility for bus and ferry operations for this major People 34 the former Chairman of the Bus Industry Confederation and President of the Bus and Coach Association of NSW. He is event, and after that success he became a General Manager Competitive Business 42 Engineering Policy/ Board Secretariat Recruitment Finance, Budget MBSC Service Safety Policy/Systems also the former owner of Glenorie Bus Company. He is a before becoming a Regional General Manager in 2005. Systems Development Western Sydney Buses 48 Corporate Planning Learning and Insurance OH and S Director of Parkview Leasing Pty Ltd. Mr Todd has extensive Mr Rowley was appointed as Chief Executive and as a Bus Maintenance Development Network Analysis Policy/Systems Corporate Counsel IT experience in managing and operating bus companies. Director of the State Transit Board in June 2008. Policy/Systems Employee Relations Traffic Planning Drug and Internal Audit MIMS Mr Todd is the Chair of the Audit Committee of the State Fleet Acquisition/ Alochol Policy Financial Statements 50 Workforce Change, CBD Issues Transit Board. Warranties Quality Program Properties Culture and Equity Management Attendance At Board Meetings State Transit Authority Procurement Risk Management Ticketing Systems Human Resource In 2008/09 the Board met on 11 occasions and attendance of New South Wales 52 Environment Media, Marketing, Development Payroll Matt Thistlethwaite (July 2008 – September 2008) was as follows: State Transit Depot Communications Workers Contracts and During the term of his appointment to the Board, Mr Authority Division 102 Redevelopments Passenger Compensation Tenders Thistlethwaite was the Deputy Assistant Secretary of Unions Information Western Sydney NSW (formerly the Labor Council of NSW). Mr Thistlethwaite Name Meetings attended Buses Division 123 Customer Relations resigned from the Board in October 2008 upon his The Hon BJ Unsworth 11 appointment to the position of General Secretary of the Mr D Fitzgerald 11 NSW Branch of the Labor Party. Ms J McClelland 10 Appendices 144 Mr P Rowley 11 Adam Kerslake (from July 2009) Mr M Thistlethwaite (July – September 2008) 2 Index 179 SERVICE DELIVERY Mr Kerslake was appointed to the Board in July 2009. Mr K Todd 10 Mr Kerslake is the Deputy Assistant Secretary of Unions NSW.
Northern Region Southern Region Eastern Region Western Region Newcastle Buses and Ferries Mark Cruden Jamie Sinclair Martin Byatt Bruce Eldridge Jan McClelland David Witherdin Ms McClelland was appointed to the Board in March 2006. Ms McClelland is a management consultant (Managing Revenue Protection Radio Communications Special Events Director, Jan McClelland and Associates Pty Ltd). Ms McClelland was previously the Director General of the Department of Education and Training and the Managing Director of the NSW TAFE Commission. Ms McClelland is the Chair of Businesslink Pty Ltd and holds directorships on the Boards of the Waste Recycling and Processing Corporation and the Festival Development Corporation. Ms McClelland is * Acting General Manager the Chair of the Safety Committee of the State Transit Board.
148 State Transit Authority of New South Wales - Annual Report 2008/09 149 Appendices Appendices Organisational Items Commercial Items
Contents 5. State Transit Board Members 2008/09 6. Legislation 7. Government Funding and Social Program (continued) The State Transit Authority of NSW is constituted as an Government funding consisted of the following: operating body without policy or regulatory functions and is Letter to the Minister 2 Audit Committee not charged with the administration of legislation. However, Bus System Contracts The Board has an Audit Committee to support it in fulfilling Chaiman and Chief set out below is an overview of the legislation directly State Transit has entered into four separate Metropolitan Bus System Contracts (MBSC) and one Outer Metropolitan Bus its responsibilities under the Transport Administration Executive’s Foreword 3 relevant to The State Transit Authority of NSW during the System Contract (OMBSC) with NSW Transport and Infrastructure for the provision of bus services in Sydney and Newcastle. Act 1988. About State Transit 4 2008/09 financial year. The term of each contract is seven years with the MBSC commencing on 1 July 2005 and the OMBSC on 1 July 2006. The Audit Committee’s role set out in its Charter is to assure Network Maps 7 Transport Administration Act Other Government Payments the independence of the audit function, monitor corporate Performance Highlights 10 risk assessment and internal controls, review financial and The State Transit Authority of NSW is created as a Newcastle Ferry Services and Western Sydney Buses continued to receive payments from the Government for providing free other practices, review the quality and integrity of financial corporation by the Transport Administration Act 1988 and and concessional fares in 2008/09. reports and oversee the responsibilities of the Internal operates pursuant to that Act and the regulations made Concession reimbursements were also received from the Government in the categories of pensioner and senior citizens, Year In Review 14 Audit Manager. under the Act. school students, tertiary students, the unemployed, other welfare recipients and blind civilians. Customer Service 16 The Audit Committee met on five occasions in 2008/09. Regulations Additionally, Newcastle Ferries was deficit funded in 2008/09. Environment 26 The following regulations made under the Transport Committee members during 2008/09 were: Safety 28 Administration Act 1988 had direct application to the State Transit Authority of NSW and were in force during the year Mr K Todd (Chairman) People 34 under review: Competitive Business 42 The Hon BJ Unsworth • Transport Administration (Staff) Regulation 2005 8. Implementation of 2008/09 Fares Determinations Western Sydney Buses 48 Under section 18(4) of the Independent Pricing and Regulatory Tribunal Act, State Transit is required, where there has been • Transport Administration (General) Regulation 2005 Safety Committee a determination by the Independent Pricing and Regulatory Tribunal (IPART), to include in its Annual Report particulars of how any such determination has been implemented. Financial Statements 50 The Board has a Safety Committee to support it in fulfilling Orders State Transit Authority its objectives and meeting targets for both transport Section 85 of the Transport Administration Act 1988 provides A change in State Transit’s fare scale, effective from 4 January 2009, was made in accordance with the determination of IPART of New South Wales 52 operations safety and workplace safety. In 2008/09 the that the charges to be demanded by the State Transit made in December 2008. The fare change was made by order published in the Government Gazette No 2 of 2 January 2009. Safety Committee met on four occasions. Authority of NSW in respect of its bus or ferry services and/or State Transit any other purpose shall be as from time to time determined The following table summarises the determinations made by IPART in relation to Sydney bus and Newcastle bus and ferry Authority Division 102 Committee members during 2008/09 were: by order made by the State Transit Authority of NSW. fares and the fare changes implemented by State Transit. Western Sydney Ms J McClelland (Chair) Buses Division 123 See Item 8 – Implementation of 2008/09 Fares Determination for details of the Fares Orders. Mr D Fitzgerald Ticket IPART Determination Implementation Passenger Transport Act Appendices 144 Mr M Thistlethwaite The State Transit Authority of NSW, in common with other Bus/Rail/Ferry TravelPasses Bus/Rail/Ferry TravelPass fares will All changes to Bus/Rail/Ferry TravelPass operators of public passenger services in New South Wales, increase by $3.00 for adults and fares were within the Tribunal’s Index 179 is directly bound by the provisions of the Passenger Transport $1.50 for the concession. guidelines. Act 1990 and the relevant regulations made under the Act. DayTripper Ticket The price of the DayTripper ticket will The change to the price of the increase by $1.60 cents for adults and DayTripper ticket was within the $0.90 for the concession. Tribunal’s guidelines.
150 State Transit Authority of New South Wales - Annual Report 2008/09 151 Appendices Commercial Items
Contents 8. Implementation of 2008/09 Fares Determinations (continued) 8. Implementation of 2008/09 Fares Determinations (continued) Ticket IPART Determination Implementation Ticket IPART Determination Implementation Letter to the Minister 2 Chaiman and Chief Sydney single ride bus fares Price increases will apply to the All changes to single ride fares were BusTripper The price of the BusTripper ticket The change to the price of the Executive’s Foreword 3 following: within the Tribunal’s guidelines. will increase by $1.00 for adults and BusTripper ticket was within the $0.50 for the concession. Tribunal’s guidelines. About State Transit 4 Adult 1-2 Sections $0.10 Network Maps 7 Newcastle bus and ferry fares The prices of the adult and concession All changes to bus and ferry fares in Adult 3-5 Sections $0.20 1 hour, 4 hours and All Day tickets will Newcastle were within the Tribunal’s Performance Highlights 10 Adult 6-9 Sections $0.20 increase by between $0.20 and $0.50. guidelines.
Adult 10-15 Sections $0.20 The price of the TimeTen 1 hour ticket Year In Review 14 will increase by $1.40 cents for the Customer Service 16 Adult 16+ Sections $0.30 adult and by $0.70 for the concession.
Environment 26 Concession 1-2 Sections No increase The price of the Stockton Ferry single Safety 28 ride adult and concession tickets will Concession 3-5 Sections $0.10 increase by $0.20 for the adult and People 34 $0.10 for the concession. Competitive Business 42 Concession 6-9 Sections $0.10 School Term Pass The price of the School Term Pass will The change to the price of the School Western Sydney Buses 48 Concession 10-15 Sections $0.10 increase by $2.40 to $45.10. Term Pass was within the Tribunal’s Concession 16+ Sections $0.10 guidelines. Financial Statements 50 Sydney TravelTens Price increases will apply to the All changes to TravelTen fares were State Transit Authority following: within the Tribunal’s guidelines. of New South Wales 52 9. Funds Granted to Non-Government Community Organisations State Transit Adult 1-2 Sections $0.80 No Payment was made by State Transit to Non-Government community organisations for the year 2008/09. Authority Division 102 Adult 3-5 Sections $1.60 Western Sydney Buses Division 123 Adult 6-9 Sections $1.60 Adult 10-15 Sections $1.60 10. Liability Management Performance Appendices 144 Adult 16+ Sections $2.40 In the year ended 30 June 2009, the market value cost of funds of State Transit’s debt portfolio, which includes actual interest costs, accrued interest costs and the change in market capital value of the debt portfolio, was 10.37%, compared to the Concession 1-2 Sections $0.40 benchmark portfolio market cost of funds of 11.44%. Index 179 Concession 3-5 Sections $0.80
Concession 6-9 Sections $0.80 11. Investment Management Performance Concession 10-15 Sections $0.80 State Transit invests its surplus short-term funds in NSW Treasury Corporation’s Hour-Glass Cash Facility Trust. In the year Concession 16+ Sections $1.20 ended 30 June 2009, State Transit’s weighted average rate of return on the investment was 5.35% (net of fees and expenses). The NSW Treasury Corporation Hour-Glass Cash Facility Trust benchmark is the UBS Bank Bill Index and the TravelPass Tickets (two-mode) Adult bus and ferry TravelPasses will All changes to TravelPass fares were benchmark return was 5.48% with no adjustment for fees and expenses. increase by either $2.00 or $3.00. within the Tribunal’s guidelines.
Concession bus and ferry TravelPasses will rise by either $1.00 or $1.50.
152 State Transit Authority of New South Wales - Annual Report 2008/09 153 Appendices Commercial Items
Contents 12. Performance in Paying Accounts 15. Freedom of Information State Transit’s performance in paying trade creditor accounts during the year is set out below, in accordance with the During the 2008/09 financial year, State Transit received 35 applications for information under the Freedom of Information requirements of the Annual Reports (Statutory Bodies) Regulation 2005. Letter to the Minister 2 Act 1989.
Chaiman and Chief Quarter Amounts Paid on Time Total Amount Paid Executive’s Foreword 3 About State Transit 4 Target % Actual % $’000 $’000 Section A – FOI applications Personal Other Total New (including transferred in) 3 32 35 Network Maps 7 September 2008 85 94 140,142 149,515 Brought forward (incomplete from last year) 1 2 3 Performance Highlights 10 December 2008 85 86 108,800 125,993 Total to Process 4 34 38 March 2009 85 86 91,326 106,349 Year In Review 14 June 2009 85 90 101,100 112,961 Complete 4 25 29 Customer Service 16 Transferred Out 0 0 0 Environment 26 Withdrawn 0 0 0 Total Processed 4 25 29 Safety 28 Of the total number of invoices processed during the year, 89% were paid within the trading terms. There were no penalty interest payments made under clause 18 of the Public Finance and Audit Regulation 2005. Unfinished (carried forward) 0 9 9 People 34 Competitive Business 42 Quarter Section B – Result of FOI applications Western Sydney Buses 48 Aged Transactions by Quarter Total Amount Granted in full 4 10 14 Current 30-60 60-90+ $’000 Granted in part 0 9 9 Financial Statements 50 September 2008 30,847 4,422 235 35,504 Refused 0 6 6 State Transit Authority December 2008 27,716 3,731 1,059 32,506 Deferred 0 0 0 of New South Wales 52 Completed 4 25 29 March 2009 33,285 1,542 128 34,955 State Transit Authority Division 102 June 2009 28,430 4,441 245 33,116 Section C – Reason for not providing access Western Sydney S25(1) (a) – exempt 0 5 5 Buses Division 123 S28 (1) (b) – documents not held 0 10 10 Total 0 15 15 Appendices 144 13. Response to matters raised by the Auditor-General There were no significant issues in the 2008/09 outgoing Audit Report that required the Authority’s attention. Section D – Ministerial Certificates Nil Index 179 Section E – Formal Consultations Nil Section F – Amendment of Personal Records Nil Section G – Notation of Personal Records Nil 14. Overseas Travel During the year, one State Transit officer undertook the following overseas trips:
1. Mr Roger Wilson – General Manager Planning Date: 22 November 2008 - 28 November 2008 Destination: Brussels Purpose: To attend the International Bus Benchmarking/Steering Group Meeting and Bus Priority Workshop
2. Mr Roger Wilson – General Manager Planning Date: 27 June 2009 – 3 July 2009 Destination: New York Purpose: To attend the International Bus Benchmarking Annual General Meeting
154 State Transit Authority of New South Wales - Annual Report 2008/09 155 Appendices Commercial Items
Contents 15. Freedom of Information (continued) 16. Consultancy and Professional Fees Section H – Costs The following table is a summary of consultants and professional services fees incurred during the year. Expenditure of the nature of providing a high level specialist or professional advice to assist decision-making by management is classified Letter to the Minister 2 Assessed Costs Fees Received as consultancy fee. Generally it is the advisory nature of the work that differentiates a consultancy fee from other $67,700 $990 Chaiman and Chief professional services. Executive’s Foreword 3
About State Transit 4 Section I – Discount allowed on fee charged Personal Other 1. Consultancy Fees $’000 Network Maps 7 Financial Hardship pensioner/child 0 $30 (a) Where consultancy fees exceeded $30,000 Nil Performance Highlights 10 Financial hardship – non-profit organisation 0 0 (b) Where consultancy fees paid were less than $30,000 Nil Other – Personal Records $30 0 Year In Review 14 Total $30 $30 2. Professional Services 2,428 Customer Service 16 Environment 26 Section J – Days to process Elapsed Time Personal Other Safety 28 17. Committees (internal and external) 0 - 21 days 3 9 Internal Committees People 34 22 - 30 days 0 7 Audit Committee Competitive Business 42 31 - 45 days 0 6 The Audit Committee established by the Board operates to support it in fulfilling its responsibilities under the Transport Western Sydney Buses 48 46+ days 1 3 Administration Act 1988. Total 4 25 Safety Committee Financial Statements 50 The Safety Committee established by the Board oversees the safety program for workplace safety and operational safety for State Transit Authority Section K – Hours to process State Transit. of New South Wales 52 Processing Hours Personal Other Direct Reports Committee State Transit 0 – 10 hours 3 10 The Direct Reports Committee is the senior management committee for State Transit examining all policies and procedures Authority Division 102 11 – 21 hours 0 8 for the organisation. The Direct Reports Committee has five sub-committees examining performance in detail against State 21 – 40 hours 0 6 Western Sydney Transit’s priority areas: Safety Committee, Asset Management Committee, People Committee, Environment Committee Buses Division 123 40+ hours 1 1 and Quality Committee. The People Committee also oversees and directs the Ethical Affairs Priorities Statement strategies. Total 4 25 Direct Reports conducts a monthly business review of all operations in depots against the main principal Key Performance Indicators of the Corporate Plan. The Executive Committee arrangements were restructured early in August 2009, with a new Appendices 144 committee structure in place reflecting the strategic objectives of the organisation. Section L – Reviews and appeals Personal Other Index 179 0 1
156 State Transit Authority of New South Wales - Annual Report 2008/09 157 Appendices Commercial Items
18. Environmental and WRAPP Report storage is managed via Emergency Management Plans, Greenhouse Gas Emissions a response to in-service spills in the event of an accident or Contents Dangerous Goods Manifest, placarding, MSDSs, training and mechanical failure. Environmental Management Policy Transport emissions derived from fuel combustion, using specialised dangerous goods stores. National Greenhouse Accounts Factors, were calculated as A3 copies of State Transit’s Environmental Management Noise Letter to the Minister 2 follows: Policy signed by the Chief Executive were distributed to State Trade Waste Licenses Chaiman and Chief During 2008/09, 18 cases of depot noise related complaints Transit depots and workplaces for prominent display and All Sydney bus depots have one or more Trade Waste State Transit Service Tonnes CO2(e) were recorded via Transport Info, 131500. Depot based Executive’s Foreword 3 staff awareness. Agreement with Sydney Water for the discharge of Passenger and Service vehicles under 3.5 tonnes 480 noise from bus start ups, public announcement systems About State Transit 4 wastewaters to sewer, from bus, chassis wash, and service and garage radios are monitored and controlled via Executive Management Review Newcastle Ferries Scope 1 direct emissions 225 Network Maps 7 pit cleaning processes. All discharges are metered, sampled operational measures including noise surveys, standard The Environmental Direct Reports Committee has met and monitored according to Sydney Water’s agreement Diesel Bus Fleet Scope 1 tailpipe emissions 97,451 operating procedures, restricted hours of operation for Performance Highlights 10 on four occasions in 2008/09 to review Environmental and acceptance conditions. Newcastle Buses and Ferries has CNG Bus Fleet Scope 1 tailpipe emissions 37,032 noisy equipment, and staff education and awareness of the Management and address significant environmental issues similar trade waste agreements and acceptance conditions Total Transport Footprint 135,188 tonnes CO2(e) importance of minimising noise and potential nuisance to related to State Transit operations. with the Hunter Water Authority. nearby neighbours. Year In Review 14 Environmental Notices Customer Service 16 A series of new bus wash systems were installed at This total transport carbon footprint equates to No environmental penalty notices were received during State Transit depots including enhanced wastewater Environment 26 approximately 650 tonnes CO2(e) per million passenger trips. Contaminated and Remediated Lands 2008/09. filtration treatment systems at Kingsgrove and the new Burwood Bus Depot Safety 28 Leichhardt Depot. Scope 2 Greenhouse Gas Emissions for stationary sources, Environmental Incidents A health risk assessment and environmental management People 34 mainly in the form of electricity consumption by depots and A total of 20 environmental incidents for in-service operation Environmental Risks offsite facilities accounted for 9,467,742 kWhrs or 8426 plan has been developed for the ongoing management of Competitive Business 42 of the bus fleet were reported to the Environment Office, BP Australia, State Transit’s bulk diesel fuel contractor, tonnes of CO2 (e). Burwood contained and capped contamination, with the Western Sydney Buses 48 compared with the 24 reported in the previous financial year. conducted biennial fuel system compliance audits of all Voluntary Remediation Agreement with the Department State Transit bus depots, to ensure adequate controls were in State Transit’s total carbon footprint due to stationary and of Environment and Climate Change (DECC) nearing Incidents primarily related to spills or leaks resulting from place for safe bulk diesel fuel delivery and receiving of fuel. mobile sources equals 143,614 tonnes of CO2 (e). completion. Financial Statements 50 accidents or mechanical failure. All such environmental incidents were reviewed to ensure their appropriate Water Leichhardt Bus Depot State Transit Authority management by the responsible depot. The environmental State Transit bus depot operations consumed some 73,566kL Extensive investigation and remediation of lands for the new of New South Wales 52 Media Based Reporting – Air Quality and Emissions, incident report rate for 2008/09 is 0.1 incidents per million Water, Noise, Lands, Energy and Waste of potable water at an average of 35.6kL per bus per Leichhardt Depot Redevelopment were completed under State Transit passenger trips. a voluntary audit to make lands suitable for commercial Air Quality annum. This consumption per bus increased by 4.1% from Authority Division 102 the previous financial year’s consumption, in part due to land use and for the construction of the new depot. The Environmental Complaints Handling More than 63 clean diesel Euro 5 buses with SCR technology, new depot will support 200 clean, environmentally-friendly Western Sydney increased fleet size, bus washing requirements and water In the 2008/09 financial year, 229 public environmental and 142 new Mercedes compressed natural gas buses compressed natural gas and Euro 5 diesel buses. Buses Division 123 accounting procedures. complaints were referred to the 131500 number for Sydney were delivered in the 2008/09 financial year as part of the Buses operations, compared with 177 for the previous year. previously announced 505 new buses contract. New fleet State Transit bus washes conserve potable water by the Leichhardt Tram Depot Remediation acquisitions help to improve State Transit’s overall fleet use of up to 80% recycled waters, with a 20% freshwater Appendices 144 The rate of environmental complaints for Sydney Buses is 1.2 Remediation of lands known as Lot 11, south of the existing complaints per million passenger trips. The majority of these emissions profile and contribute to improved air quality in makeup to maintain clean bus wash waters. A number Leichhardt Depot have been successfully completed under public complaints related to noise or smoke from buses. the Sydney region through the displacement of older Euro 2 of depots have or are planning installation of rainwater a voluntary remediation agreement with the DECC. The bus emissions. Index 179 harvesting systems to displace potable water use in bus, Voluntary Remediation Agreement on these lands has Newcastle Buses received nine complaints, compared with chassis wash or bathroom facilities. been completed. 10 complaints for the previous year, with a rate of 0.7 State Transit achieved RTA Clean Fleet Program membership complaints per million passenger trips. Complaints are for its bus vehicle fleet in 2008/09. The clean fleet Stormwater recorded in categories of noise, smoke, spillage or littering program is an audited maintenance regime designed The prevention of stormwater pollution within depot from bus and depot noise pollution. Public environmental to maintain existing diesel vehicles at rated or optimal environments is managed by a combination of signage, complaints recorded on the 131500 number are referred to emission standards. This is achieved through stringent fault yard scrubbing, spill kits and spill response, bunding of spill the responsible depot for investigation and response. identification, scheduled maintenance, and diesel fuel quality risk structures, stormwater containment via Penstock or maintenance procedures. stormwater isolation valves and spill risk assessment and Dangerous Goods Licensing and Notification State Transit, with State Fleet, works to reduce total control of diesel fuel delivery and fuelling procedures. The majority of State Transit depots store notifiable greenhouse emissions from its passenger fleet by leasing quantities of dangerous goods, mainly diesel fuel storage For in-service prevention of spills our bus operators contact vehicles with improved environmental performance scores in excess of 100,000 litres, and therefore have notified the State Transit Radio Control Room for emergency and through the increasing use of E10 fuel. WorkCover of these and other dangerous goods related assistance from the Fire Brigade. State Transit’s fleet of stores held on the premises. The risks of dangerous goods customer service vehicles carry portable spill kits to enable
158 State Transit Authority of New South Wales - Annual Report 2008/09 159 Appendices Commercial Items
18. Environmental and WRAPP Report WRAPP Report Performance: In 2008/09 State Transit’s head office (located 20. Heritage Management Contents in Strawberry Hills) consumed 1,061,460kWhrs of electricity, (continued) In accordance with Government requirements, State Transit State Transit has a responsibility under Section 170 of the equating to 945 tonnes CO2(e). From 2007/08 this is a has reviewed and updated its WRAPP report for 2008/09. Heritage Act 1977 (NSW) to identify and manage items Letter to the Minister 2 Energy reduction in emissions of 28%. Current head office building of heritage in its ownership and control. These items are Electricity Consumption During the financial year, Transpacific Industries Group, State energy use must be further reduced by 43% to return to Chaiman and Chief predominately bus depots but also include former tram Transit’s total waste management contractor, collected the 2000 levels. Executive’s Foreword 3 Depot electricity consumption totalled 9,231,719 kWhrs. An depots and bus shelters. In 2009 work continued on the additional 236,023 kWhrs of electrical energy was consumed following quantities of waste for recycling: About State Transit 4 GreenPower revision of State Transit’s Heritage and Conservation Register by external facilities including interchanges, ferry termini and in compliance with the Heritage Office Guidelines and the Waste Oil 1,708 tonnes Target: Government agencies are required to purchase Network Maps 7 radio transmission tower. Heritage Act. Currently State Transit has no assets that are a minimum of 6% GreenPower. Waste Surfactants 80 tonnes State Heritage listed items, however several assets are listed Performance Highlights 10 Gas Consumption Performance: Each of State Transit’s bus depots purchases on various Local Government Environment Plans as items of Natural gas consumption for gas-operated appliances in Paper 2008 cubic metres 6% GreenPower. local heritage significance. Year In Review 14 State Transit depots was 2,471 Gigajoules or the equivalent Oil Filters 50,100 liters of oil filters of 686,435 kWhrs. Environmental Performance of Buildings Customer Service 16 crushed for scrap metal Target: Government owned or tenanted office buildings Environment 26 Diesel Fuel Consumption Fluorescent Tubes 1.6 tonnes over 1000m2 to: Some 36.1 million litres of diesel fuel was consumed by our 21. Mobile Phones Safety 28 diesel bus fleet of some 1,652 vehicles. Bus Batteries 47.5 tonnes • obtain a NABERS rating (National Australian Built Procedures for issuing mobile telephones to staff are outlined People 34 Environment Rating System) by 31 December 2008; in State Transit’s Telephone and Mobile Telephones Manual. Compressed Natural Gas Consumption Competitive Business 42 Steel > 80 tonnes The Chief Executive, General Managers and Depot Managers Approximately 17.63 million cubic metres of compressed • achieve and maintain a NABERS rating of 4.5 stars for are responsible for the issuing of mobile telephones as and Western Sydney Buses 48 natural gas was consumed by some 550 CNG vehicles Steel Drums > 300 items energy and water by 1 July 2011, where cost effective; and when a business need is demonstrated. In 2008/09 there in 2008/09. were 353 (309 in 2007/08) mobile telephones in use. • where new or refurbished, achieve and maintain 2011 Financial Statements 50 Fuel Systems targets from 18 months of the first occupancy, where State Transit Authority State Transit conducts annual underground diesel fuel 19. NSW Sustainability Policy Targets cost-effective. of New South Wales 52 storage integrity tests to determine that tanks are tight. In State Transit is required to meet targets prescribed in the (Note: further targets are to be set for ‘waste and indoor 22. Credit Card Certification State Transit addition Cathodic Protection Systems are surveyed annually NSW Government Sustainability Policy. environment’) This is to certify that Corporate Credit Cards are issued Authority Division 102 to ensure there is sufficient protective current to protect to State Transit’s staff for business purposes and used in those assets from corrosion. Five depots have impressed Water Consumption Performance: State Transit’s head office is located in the Western Sydney current Cathodic Protection Systems that are registered with accordance with the Credit Card Use Best Practice Guide, Target: State-wide target to reduce total potable water Australia Post headquarters at Strawberry Hills. This building Buses Division 123 the NSW Department of Energy and Water. The remainder (TPP05-01). consumption from 2005/06 levels by 15% by 2010/11. is rated at 4.5 stars under the AGBR scheme (the building are protected by Sacrificial Anode Systems. rating scheme that preceded NABERS). This is equivalent Certified by: Performance: To achieve this target State Transit must reduce to a 4.5 star NABERS energy rating, which meets the Appendices 144 Waste its annual water consumption by 3% (from the baseline ratings target for energy. A NABERS rating for new office Transpacific Industries Group commenced solid and liquid figure) per year. To date State Transit has achieved reductions accommodation within Leichhardt and Brookvale depots will waste collection services for all State Transit depots in Index 179 of 8.4%, falling just short of a 9% target by 2008/09. be sought within 12 months of their occupancy. September 2007, under a Total Waste Management contract. The contract provides for the collection and Building Energy Use Cleaner Government Fleet recycling of batteries, waste metal (ferrous and non Target: State-wide target to return greenhouse gas emissions Changes to the Cleaner Government Fleet program mean ferrous), oil filters, waste oil, cardboard and paper and the Peter Rowley from building energy use to 2000 levels (1.5 million tonnes) that targets set under the program are no longer applicable Chief Executive collection and disposal of oily water and waste coolant. by 2019/20, with interim targets of 1.74 million tonnes by to State Transit, however we are continuing to align with Additional waste collection services provided to State Transit 2010/11, 1.6 million tonnes by 2013/14 and 1.59 million the goals of the program. Since 2007/08 we have further by Transpacific Industries Group include fluorescent tube tonnes by 2016/17. reduced the fleet size of our support vehicles from 65 to recycling, turbo wash and parts washers liquid waste. 60 (8%) and have seen a 10% reduction in greenhouse To make an equivalent contribution to state-wide targets, gas emissions, from 533 tonnes CO2(e) in 2007/08 to 480 energy use by State Transit’s head office must return to 2000 tonnes CO2(e) in 2008/09. levels (then located in North Sydney) of 604,286 kWhrs or 538 tonnes CO2(e) by 2019/20.
160 State Transit Authority of New South Wales - Annual Report 2008/09 161 Appendices Operational Items
Contents 23. Service Changes In Response to Community Consultation 25. Guarantee of Service Service adjustments were made in all regions to realign resources to better meet changes in demand in peak and State Transit has renewed its commitment to raise performance standards on buses and ferries in Sydney and Newcastle to off-peak periods. meet the objectives and deliverables of the State Plan and the Outer/Metropolitan Bus System Contracts. Letter to the Minister 2 Chaiman and Chief As part of the NSW Transport and Infrastructure program of bus reform and in accordance with the Outer/Metropolitan State Transit’s commitment to customer service is supported by six main aims: Executive’s Foreword 3 Bus System Contracts, State Transit continued its review of its regional bus networks. • To ensure that the service delivered reflects the travel needs of customers; About State Transit 4 In 2008/09, State Transit implemented new and improved bus networks in Newcastle and Sydney’s Eastern Region following • To operate buses and ferries with excellent safety standards for the benefit of passengers, staff, the general public Network Maps 7 extensive community consultation. A number of other network reviews are currently underway or in the planning stages. These include: and their property; Performance Highlights 10 • Northern Beaches and Lower North Shore – during 2008 the community responded to an invitation to comment which • To provide bus and ferry services that meet high standards of frequency, timeliness, reliability and cleanliness; assisted in developing the new network to be implemented 2 August 2009. Year In Review 14 • To provide customers with complete, easily understood and up-to-date service information; • North Western Suburbs – proposal put forward to the community with submissions closing on Friday 30 January. The Customer Service 16 • To develop a good reputation for customer service through polite, courteous and helpful staff; and new network will be implemented 11 October 2009. Environment 26 • To make services more accessible for all passengers. • Inner West and Southern Suburbs – extensive research is currently being undertaken regarding possible route options Safety 28 with community consultation planned for September 2009. People 34 Please see the Customer Service chapter of this report for further information on State Transit’s Integrated Network Reviews. Competitive Business 42 26. Disability Plans Western Sydney Buses 48 State Transit maintains disability action plans for each of its bus service contracts with NSW Transport and Infrastructure and these also conform to the requirements of the NSW Disability Services Act 1993. State Transit is also implementing Financial Statements 50 24. Customer Response the requirements of the Disability Standards for Accessible Public Transport 2002 under the Commonwealth Disability Discrimination Act (DDA). Progress in this area includes: State Transit Authority Sydney Buses T-way Newcastle Buses and Total of New South Wales 52 Ferries • 12,875 timetabled wheelchair-accessible services on more than 403 routes across Sydney and Newcastle; State Transit Suggestion 627 9 56 692 • purchase of 172 new wheelchair-accessible buses during 2008/09 bringing the total number of accessible buses to 1,087 Authority Division 102 Query 738 6 93 837 (>53% of fleet); Western Sydney Buses Division 123 Compliment 1979 9 83 2071 • introduction of on board audio passenger information systems on the new Metrobus Route 10 services to assist people with vision disabilities; Bus Smart* 5044 0 0 5044 Appendices 144 • continuing a disability access audit of over 10,000 bus stops and zones in Sydney and Newcastle to inform local municipal Complaint 26668 209 2245 29122 councils of locations where upgrade work is required by them to meet the DDA disability access standards for infrastructure Total 35056 233 2477 37766 providers; and Index 179 • provision of disability awareness training to bus operators and other front line staff. * Calls categorised as ‘Bus Smart’ include encouraged community feedback as part of State Transit’s Integrated Network Reviews.
Main features of complaints were:
• service complaints, including late running, lack of accommodation in peak periods and early running;
• staff complaints, including poor driving, not stopping when signalled and rudeness; and
• ticket and fare evasion disputes.
162 State Transit Authority of New South Wales - Annual Report 2008/09 163 Appendices Human Resource Items
Contents 27. Human Resources Statistics 28. Equal Employment Opportunity The table below shows a comparison of State Transit’s staff head-count by classification (and full-time equivalent) over the Details of staff numbers by EEO group and income, as at June 2009 are set out below. five-year period from July 2004 to June 2009: Letter to the Minister 2 Level Total Respon- Men Women Aboriginal People People People People Chaiman and Chief Head-count 2004/05 2005/06 2006/07 2007/08 2008/09 $ Staff dents and Torres from racial, whose with a with a Executive’s Foreword 3 Operations 3,631 3,769 3,747 3,787 3,944 Strait ethnic, language disability disability Islanders ethno- first requiring About State Transit 4 Maintenance 360 366 367 379 384 religious spoken as work Network Maps 7 Administration 611 587 648 653 666 minority a child was related groups not English adjustment SES 13 13 14 14 12 Performance Highlights 10 <$36,677 15 15 15 1 Total 4,602 4,735 4,776 4,833 5,006 Full-time Equivalent 4,523 4,555 4,574 4,628 4,853 $36,677- 3,900 3,179 3,566 334 34 767 836 89 89 Year In Review 14 Casuals (included above) 82 69 54 66 116 $48,172 Customer Service 16 398 267 362 36 3 58 61 9 9 Note: The figures are converted to full-time equivalents for part-time staff, and represent the average staffing levels for the year (they do not include Environment 26 overtime hours). 348 223 261 87 60 49 5 5 Safety 28 102 66 79 23 9 5 6 6 People 34 112 85 79 33 1 13 17 4 4 Competitive Business 42 >110,160 36 21 29 7 4 1 Western Sydney Buses 48 (non SES) >$110,160 Financial Statements 50 (SES) State Transit Authority TOTAL 4,911 3,856 4,391 520 38 912 969 113 113 of New South Wales 52 Note: FTE includes all full-time equivalent workforce at 30 June 2009 (includes paid ordinary hours and overtime) State Transit Authority Division 102 Western Sydney Buses Division 123
Appendices 144
Index 179
164 State Transit Authority of New South Wales - Annual Report 2008/09 165 Appendices Human Resource Items
28. Equal Employment Opportunity (continued) 30. Ethnic Affairs Priority Statement and In 2008/09, State Transit communicated its PrePay message Contents to international travellers via web and press advertising in Percent of total staff by EEO group and income as at June 2009 are set out below Agreements Australian and International programs. Letter to the Minister 2 Planning and Evaluation Aboriginal People People People People Level Total Respon- Men Women The Corporate Plan is based on four key areas: safety, State Transit contributed information to the World Youth Chaiman and Chief $ Staff dents and Torres from racial, whose with a with a Day Pilgrim Transport Guide, which was printed in Spanish, Executive’s Foreword 3 Strait ethnic, language disability disability customer service, people and competitive business. The Ethnic Islanders ethno- first requiring Affairs Priorities Statement strategies have been integrated Italian, French and English. (Access and Equity) About State Transit 4 religious spoken as work into the people and customer service areas of the Corporate Network Maps 7 minority a child was related Plan with the key aim of developing equitable, inclusive and groups not English adjustment high performance services for all passengers and a service Staffing Performance Highlights 10 <$36,677 15 100% 100% 7% culture that is trained, resourced and managed to achieve Recruitment this target. (Leadership) $36,677- 3900 82% 91% 9% 1.1% 24% 26% 3% 2.8% During the 2008/09 financial year, State Transit continued Year In Review 14 $48,172 Program and Service Delivery to run a high profile advertising campaign to attract a wider Customer Service 16 $48,173- 398 67% 91% 9% 1.1% 22% 23% 3% 3.4% State Transit engages in consultation with ethnic section of the community to bus operator positions. $53,854 communities regarding the introduction of new or changed Environment 26 The advertising material aimed to broaden the perception bus services, using interpreters when required. In areas with $53,855- 348 64% 75% 25% 27% 22% 2% 2.2% of the type of people within the occupation by creating a Safety 28 a high level of ethnic diversity, brochures are produced in $68,147 sense of identity between prospective applicants and the People 34 the predominant languages of the area where the service job of a bus operator. This was achieved through a series of $68,148- 102 65% 77% 23% 14% 8% 9% 9.1% changes are to be implemented. Competitive Business 42 $88,127 advertisements highlighting different aspects of the job. In December 2008, State Transit proposed changes to the Western Sydney Buses 48 $88,128- 112 76% 71% 29% 1.2% 15% 20% 5% 4.7% The promotion targeted applicants from a range of ages and North Western Suburbs (Region 7) bus network as part $110,160 backgrounds. (Economic and Cultural Opportunities) of its Integrated Network Review. Brochures outlining >110,160 36 58% 81% 19% 19% 5% Financial Statements 50 the proposed changes and the community consultation Learning and Development (non SES) process were produced in English, with Chinese and State Transit Authority State Transit is a registered Training Organisation. Since the >$110,160 Korean translations available on the State Transit website. of New South Wales 52 implementation of the Traineeship Program in 2002, all new (SES) Advertisements detailing the implementation of these bus operators have been trained to the level of Certificate III State Transit changes were also produced, featuring Chinese and Korean TOTAL 4,911 79% 89% 11% 1.0% 24% 25% 3% 3% in Transport and Logistics (Road Transport). There are units Authority Division 102 translations. of competency in this program, which train and assess how Western Sydney Note: Subgroup as estimated percent of total staff at each level. FTE includes all full-time equivalent workforce at 30 June 2007 (includes paid ordinary hours State Transit communicated its PrePay message to ethnic to work effectively with customers from a culturally diverse Buses Division 123 and overtime) communities through advertisements in ethnic press. background. These units include: Advertisements regarding the CBD PrePay conversion were • Working effectively with others – modes, methods and placed in Chinese, Greek, Italian, Arabic and Vietnamese Appendices 144 forms of communication within the workplace; and newspapers. 29. Strategic Plan for Women • Working in a socially diverse environment - appreciating State Transit will continue to consult with ethnic communities Index 179 See report on Strategic Plan for Women initiatives in the People section of this report. and valuing social diversity in the workplace. in 2008/09 regarding changes to services, in particular during the implementation of the new North Western network All bus operators who have completed their traineeship have and during the community consultation period for service been trained in the above units. (Community Harmony) changes in the Inner West and Southern Suburbs (Region 6). (Access and Equity)
Tourism Service Information Brochures for State Transit tourism services are produced in English, Japanese, Chinese and Korean. State Transit pays to advertise its tourism services in major international tourism programs. State Transit will continue to promote and communicate key service messages in major international tourism programs during 2009/10.
166 State Transit Authority of New South Wales - Annual Report 2008/09 167 Appendices Human Resource Items
State Transit offers a number of additional training programs Greek, Indonesian, Italian, Japanese, Korean, Spanish and 31. Agreements with the Community Relations Commission Contents to provide staff with the skills to deal with customers of Vietnamese. The Trip Planner on this website also gives an There has been no requirement for an agreement specified by the Community Relations Commission. culturally diverse backgrounds and promote equality in the explanation of the facility in different languages. Letter to the Minister 2 workplace including: State Transit will continue to support the Transport Info Chaiman and Chief • Driver Skills Development Program website during 2009/10. (Access and Equity) Executive’s Foreword 3 Provides annual refresher training to existing bus operators 32. Equal Employment Opportunity (EEO) Target Groups About State Transit 4 to ensure that State Transit’s customer service standards Funded Services The number of employees falling within EEO reporting categories are: are consistently met for all passengers. A component State Transit supports the 131500 Transport Info and Your Network Maps 7 of the program focuses on service requirements for Say Line services, which are contracted out by NSW Transport EEO Target Group Benchmark or Target 2006 2007 2008 2009 Performance Highlights 10 customers of culturally diverse backgrounds and includes and Infrastructure. % % % % % a 45-minute game called ‘A question of diversity’. Women 50 10 11 11 11 (Community Harmony) The company that runs these services has many staff who Year In Review 14 speak multiple languages, including many of the Asian Aboriginal people and Torres Strait Islanders 2 0.8 0.9 1.0 1.0 Customer Service 16 • Management Development Program and Certificate languages and Spanish, to assist customers who are unable People whose language first spoken as a child IV in Frontline Management to discuss their issues or concerns in English. was not English 20 26 25 25 25 Environment 26 Provides management and maintenance supervisory staff State Transit will continue to support the 131500 Transport People with a disability 12 4 3 3 3 Safety 28 with the skills and knowledge in fostering diversity and promoting equality in the workplace and delivering State Info and Your Say Line services during 2009/10. (Access People with a disability requiring People 34 Transit’s services. (Community Harmony) and Equity) work-related adjustment 7 3.7 3.3 3.1 3.0 Competitive Business 42 • Literacy Learning and Numeracy Program State Transit is a client of the Department of Immigration Western Sydney Buses 48 Provides staff with the opportunity to upgrade their English and Multicultural Affairs, which runs the Translating and literacy and numeracy skills. The confidential training has Interpreting Services (TIS), 131450, for people who do been popular among staff, where English is their second not speak English and for English speakers needing to EEO Target Group Benchmark or Target 2006 2007 2008 2009 Financial Statements 50 language. (Access and Equity) communicate with them. TIS provides both telephone and % % % % % State Transit Authority on-site interpreters for non-English speakers. Through TIS, a Women 100 109 113 117 121 of New South Wales 52 • Certificate IV in Training and Assessment three-way conversation can be arranged with the call centre Aboriginal people and Torres Strait Islanders 100 98 96 93 91 Incorporates a full day of training on Inclusivity, specifically agent, the caller and the interpreter. These interpreting State Transit People whose language first spoken as a child focusing on training and assessing learners from different services are paid for by State Transit. State Transit will Authority Division 102 was not English 100 95 94 95 94 ethnic backgrounds. (Community Harmony) continue to seek translating and interpreting services from Western Sydney the Department of Immigration and Multicultural Affairs in People with a disability 100 103 105 106 105 Buses Division 123 State Transit will continue to provide these training 2009/10. (Access and Equity) People with a disability requiring opportunities to staff during 2009/10. work-related adjustment 100 103 105 106 105 Since 2006, interpreter services for the Your Say Line have Note 1: Excludes casual staff Appendices 144 A significant proportion (25%) of State Transit employees been made available through the above arrangement come from a non-English speaking background. As a result in the following languages: Arabic, Bosnian, Chinese, Note 2: A distribution index of 100 indicates that the centre of the distribution of the EEO Groups across salary levels is equivalent to other staff. Values less of the culturally and linguistically diverse background of staff, Croatian, French, German, Greek, Italian, Japanese, Korean, than 100 mean that the EEO groups tend to be more concentrated at lower salary levels than is the case for other staff. The more pronounced this tendency is, the lower the index will be. In some cases the index may be more than 100, indicating that the EEO group is less concentrated at lower salary levels. Index 179 the Learning and Development Unit has all training materials Macedonian, Polish, Serbian, Turkish and Vietnamese. and guides written in plain English. (Access and Equity) (Access and Equity) Retreat Spaces State Transit demonstrates its commitment to ensuring employees from culturally diverse backgrounds can meet their religious obligations whilst at work. With 10 established retreat spaces across the organisation, employees can utilise these spaces for religious, spiritual or contemplative purposes. (Community Harmony)
Communications The Transport Info website, www.131500.com.au jointly supported by State Transit, RailCorp and NSW Transport and Infrastructure, has an introductory section translated into 10 major languages. These are English, Arabic, Chinese,
168 State Transit Authority of New South Wales - Annual Report 2008/09 169 Appendices Human Resource Items
Contents 33. Occupational Health, Safety and Rehabilitation 35. Privacy Management Over the past 12 months, State Transit reduced its 12-month rolling Lost Time Injury Frequency Rate from 24.1 lost time In accordance with the Privacy and Personal Information Protection Act 1998, State Transit has implemented a Privacy claims per million hours worked to 17.4 (a reduction of 27.8%). Management Plan. Letter to the Minister 2 Chaiman and Chief State Transit also reduced the number of passenger incidents, with the level of incidents being maintained at an average of A copy of the Privacy Management Plan has been lodged with the Privacy Commissioner. Executive’s Foreword 3 less than one incident per day. The plan requires staff to keep personal information secure and ensures that the information is only used for the purposes About State Transit 4 During the year, State Transit developed a new Safety Management System and will implement this new system over the next for which it is collected. Network Maps 7 12 months. Aligned with the State Transit Strategic Plan, this major initiative will ensure State Transit continues to provide an improved and safe environment for all its stakeholders into the future. In accordance with the plan State Transit informs all individuals at the time of collecting personal information what the Performance Highlights 10 information is to be used for and to whom the personal information will pass.
State Transit will continue to maintain and improve its current collection and storage of personal information to ensure Year In Review 14 it continues to satisfy the guidelines provided in the Act. Customer Service 16 34. Corruption Prevention and Ethics Code of Conduct Environment 26 The Code of Conduct is printed in the Employee Handbook and is available on the Business Management System (BMS), Safety 28 which is accessible to all staff. The Employee Handbook is an authoritative source document relied on by both management 36. CES/SES Bands People 34 and employees alike. Band Number Number July 2008 June 2009 Competitive Business 42 The Code of Conduct sets the standard of behaviour expected from staff. Western Sydney Buses 48 Level 7 1 1 Protected Disclosures Level 5 1 1 Disclosures about corrupt conduct, maladministration or waste of public funds are protected under the Protected Disclosures Level 4 8 9 Financial Statements 50 Act 1994. Level 3 4 1 State Transit Authority Persons who report unethical behaviour that is conduct covered by this Act can seek protection under the Protected Level 2 2 0 of New South Wales 52 Disclosures Act 1994. Total 16 12 State Transit Authority Division 102 The subject matter of any allegation made as a Protected Disclosure is reported to the Audit Committee. Note: Figure for 2009 reflects a reduction of four SES positions as per Government requirements. Western Sydney Senior Executive Officers are trained in their roles and responsibilities in relation to Protected Disclosures. Buses Division 123 The Protected Disclosure Reporting System procedures are included in the Employee Handbook and are documented on the BMS. This is designed to ensure all staff are aware of the standards required in order to provide transparency and foster an Appendices 144 environment of disclosure. Ethics Index 179 State Transit is committed to conducting its business in a sound commercial and ethical manner having regard to NSW Government and State Transit policies.
State Transit aims to demonstrate and practice a professional and ethical approach to all its business activities. All State Transit staff are required to conduct their activities in accordance with State Transit’s Code of Conduct and observe a high standard of probity, ethical behaviour and integrity in their business dealings and comply with NSW Government and State Transit policies.
Fraud and Corruption Prevention State Transit is committed to ensuring that the risk and occurrence of fraud and corruption in the work environment is minimised/eliminated. This commitment is reflected in the standards of behaviour expected from all staff, as set out in the Code of Conduct.
170 State Transit Authority of New South Wales - Annual Report 2008/09 171 Appendices Human Resource Items
Contents 37. Senior Executives’ Qualifications Key achievements for 2008/09 include: Senior Executives at 30 June 2009 • Growth in patronage across the Sydney Buses network with additional services introduced to meet the strong growth in peak periods; Letter to the Minister 2 • Significant investment made in the redevelopment of depots at Leichhardt, Brookvale and Ryde, and a commitment Chaiman and Chief Name Position Qualification Executive’s Foreword 3 to future investment in the refurbishment of Tempe Depot in accordance with the depot strategy of building capacity for Angela Bateman General Manager Safety Grad Dip OHS Mgt, B App Sc (OT) the future. About State Transit 4 • The conversion of the Sydney CBD to PrePay on weekdays between 7am and 7pm, resulting in reduced boarding times and Network Maps 7 Martin Byatt General Manager Eastern Region CTM a reduction in overall travel times. Performance Highlights 10 Mark Cruden General Manager Northern Region CTM, Cert Urban Tpt Mgt, Cert Fitting and Machining • New networks implemented in Newcastle and Sydney’s Eastern Suburbs following extensive community consultation.
Year In Review 14 Paul Dunn General Manager Finance and Administrative Services MBA, Grad Dip App Fin, B Comm, ACA • Implementation of the Route 10 Metrobus service and the development of a Metrobus network with four additional routes joining Route 10. Customer Service 16 Bruce Eldridge General Manager Western Region MTM, CTM Environment 26 • Delivery of 210 low-floor, wheelchair-accessible, environmentally-friendly buses to the fleet, bringing State Transit’s average Lindsay Lee General Manager Corporate Governance BA (Hons) fleet age to below the statutory requirement of 12 years. Safety 28 and Communication People 34 • Establishment of a new Safety Division and the development of a new Safety Management System. Mark McCarthy A/General Manager Human Resources M Comm, Grad Dip ER, Dip Law, Grad Competitive Business 42 Dip Leg Practice, Adv Cert Personnel Mgt • Successful planning, development and implementation of bus services during World Youth Day. Western Sydney Buses 48 Michael Reardon General Manager Operational and Fleet Support CTM • Requirements successfully met for the four Metropolitan Bus System Contracts for Sydney Buses and the Outer Metropolitan Bus System Contract for Newcastle Buses. Peter Rowley Chief Executive MTM, CTM Financial Statements 50 • Security was maintained in the post-9/11 environment. State Transit Authority Jamie Sinclair General Manager Southern Region Adv Mgt Cert, Bus Mgt Cert, CTM • Significant patronage growth of 4% by Western Sydney Buses on the Liverpool-Parramatta T-way. of New South Wales 52 Roger Wilson General Manager Planning M Eng Sc, B Eng, CTM, MIE Aust State Transit • ISO 9001:2008 Quality Certification maintained for State Transit’s bus services. Authority Division 102 David Witherdin General Manager Newcastle Buses and Ferries B Eng (Civil) The Board of State Transit and the Minister for Transport have indicated that they are satisfied that the performance targets Western Sydney specified in Mr Rowley’s performance contracts have been achieved and exceeded. Buses Division 123
38. SES Performance Review and Remuneration SES Remuneration Appendices 144 Peter Rowley, Chief Executive, SES Level 7 State Transit had two executives in the report period whose remuneration equals or exceeds the minimum remuneration for Period in position Senior Executive Service, Level 5: Index 179 Chief Executive 1 July 2008 – 30 June 2009 I. Chief Executive: Peter Rowley Responsibilities Total Remuneration Package: $320,000 per annum The Chief Executive is responsible for delivering State Transit’s objectives: efficient, safe and reliable bus and ferry services; Performance Payment 2008/09: State Transit Policy specifies that no performance payments are made. sound financial performance; social responsibility; contributions to ecologically sustainable development and regional II. General Manager, Finance and Administrative Services: Paul Dunn development. The Chief Executive is responsible for developing and implementing State Transit’s strategies as detailed in its Total Remuneration Package: $239,285 per annum Corporate Plan to meet these objectives. Performance Payment 2008/09: State Transit Policy specifies that no performance payments are made. Achievements Mr Rowley managed State Transit effectively in 2008/09 maintaining Sydney and Newcastle Buses’ reputation as a reliable public transport provider:
• On-time running performance improved in 2008/09 to reach a network wide result of 96.1% with 99.5% of services operating across the network.
• Significant ongoing improvements in mechanical reliability.
172 State Transit Authority of New South Wales - Annual Report 2008/09 173 Appendices Appendices Human Resource Items Other
Contents 39. 2008 Annual Award Recipients 40. List of Publications The following work teams and individuals received a Recognition Award for their outstanding contributions to State Transit. In 2008/09 State Transit produced and distributed: These included awards presented to staff for contributions to State Transit’s four foundations of success: Safety, Customer Letter to the Minister 2 Service, People and Competitive Business. • 2007/08 Annual Report Chaiman and Chief • 2008/09 Corporate Plan Executive’s Foreword 3 Safety – Michelle Cini, Nicole Oxenbridge, Kristy Piggott, Demonstrating our Values – Jay Singaram About State Transit 4 Ellen Murray and Shayne Beaton • Bus timetables and region guides (various) Demonstrating our Values – Gerard Dunne Network Maps 7 Safety – Konstantinos Kaskoutas, Nicholas Vasiliadis and Demonstrating our Values – Sid Waters • Brochures and flyers, including a number of tourist products, new and special tickets, service changes, special events and Performance Highlights 10 Chris Papas safety material. Demonstrating our Values – Neville Newton Safety – Constandinos Foundas • The Transit Times (21 editions) Demonstrating our Values – Wayne Newton Year In Review 14 Safety – Tarn Bargon Demonstrating our Values – Len Creagh Customer Service 16 Safety – Andrew North Demonstrating our Values – Nick Sideroudakis Environment 26 Safety – Margaret Kaye 41. Annual Report Publication Details Demonstrating our Values – Glen McLuckie Safety 28 Customer Service – Renee Martin The State Transit Annual Report was produced in house and designed by Hot Mustard Design and Media. People 34 Demonstrating our Values – Roderick Primerano Customer Service – Dario Cargnelutti The Annual Report is designed as a website document (PDF) able to be printed if required by individual users. To access this Competitive Business 42 Demonstrating our Values – John Behringer Customer Service – Sally Hill Annual Report and previous years’ Annual Reports please go to www.sta.nsw.gov.au Western Sydney Buses 48 Demonstrating our Values – Mark Stevens Customer Service – Christine McDavitt Five hundred copies were also printed at a cost of $24.10 each. Demonstrating our Values – Glen Windell Customer Service – Graeme Stevenson The pages of the Annual Report are printed on 100% Australian made paper from sustainably managed forests. Financial Statements 50 Demonstrating our Values – Ettore Garbellini Customer Service – Agnes Gercsov State Transit Authority Traineeship Excellence – David Chandran of New South Wales 52 Customer Service – Wesley Peters Traineeship Excellence – Cheuk Pow State Transit Customer Service – George Bate Authority Division 102 Traineeship Excellence – Richard Wilson Customer Service – Kenneth Brown Western Sydney Traineeship Excellence – Hecham Bassiony Buses Division 123 Customer Service – Sithy Teav Traineeship Excellence – David Saotome Customer Service – Roy Melki Traineeship Excellence – Andrew Morris Appendices 144 Customer Service – Ronaldo Andres Apprenticeship Excellence – Rory Eunson-Cottle Demonstrating our Values – Jennifer Ruthven Apprenticeship Excellence – Adam Hu Index 179 Demonstrating our Values – Nyuk Kok Apprenticeship Excellence – Isis Joyce Demonstrating our Values – David Thomas Apprenticeship Excellence – Matthew Dawson Demonstrating our Values – Stan Griffey Chief Executive Special Award – Waverley Depot Demonstrating our Values – Pierre Savripene Management Team - Nick Lazarou, Selina Hatcher, James Demonstrating our Values – Louise Read Forsyth, Pepper Townsend, Ryan Piggott, Heather Ford and Bob Smart Demonstrating our Values – Nicole White Transport Minister’s Award for Excellence – All employees Demonstrating our Values – Customer Relations and contributing to World Youth Day 2008 Communications Team - Jacqui Ritchard, Eric Priestley, Christine Maher, Richard Robinson, Melina Rookes, Paul Depot Maintenance Workshop Award – Randwick Depot McCabe, Leslie Khair, Toni Longden and Sarah Young Depot Award – Waverley Depot Eco-Driving Challenge Award – Waverley Depot
174 State Transit Authority of New South Wales - Annual Report 2008/09 175 Appendices Other
Contents 42. Key Performance Indicators 2004/05 2005/06 2006/07 2007/08 2008/09 In 2008/09 Dollars Newcastle Buses and Ferries Total revenue (‘000) $36,303 $37,038 $47,757 $48,013 $48,232 Letter to the Minister 2 2004/05 2005/06 2006/07 2007/08 2008/09 Consolidated State Transit Patronage (‘000) 12,101 12,566 12,455 12,506 12,425 Chaiman and Chief Kilometres (‘000) 8,236 8,256 8,322 8,337 8,210 Executive’s Foreword 3 Total revenue (‘000) $547,028 $566,302 $568,899 $583,964 $582,326 Staff 392 381 371 351 346 About State Transit 4 Patronage (‘000) 200,274 200,568 201,733 206,340 207,851 Kilometres (‘000) 88,962 89,038 88,358 89,443 91,128 Total revenue per passenger $3.00 $2.95 $3.83 $3.84 $3.88 Network Maps 7 Staff 4,533 4,564 4,568 4,682 4,852 Total revenue per Km $4.41 $4.49 $5.74 $5.76 $5.87 Performance Highlights 10 Total revenue per passenger $2.73 $2.82 $2.82 $2.83 $2.80 Passengers per vehicle Km 1.5 1.5 1.5 1.5 1.5 Total revenue per Km $6.15 $6.36 $6.44 $6.53 $6.39 Passengers per employee 30,862 32,982 33,571 35,630 35,910 Year In Review 14 Passengers per vehicle Km 2.3 2.3 2.3 2.3 2.3 Vehicle Km per employee 21,005 21,669 22,431 23,752 23,728 Customer Service 16 Passengers per employee 44,181 43,946 44,162 44,071 42,838 Changeovers per 100,000 Kms - mechanical 12.26 8.93 9.01 11.39 10.13 Environment 26 Vehicle Km per employee 19,625 19,509 19,343 19,104 18,782 Fleet size - buses 1,943 1,927 1,978 2,027 2,065 - traffic 2.19 2.24 2.37 3.67 2.92 Safety 28 Fleet size - ferries 2 2 2 2 2 Average bus vehicle age 12.6 12.8 13.6 11.7 12.0 People 34 Bus service reliability (on time) 98% 98% 98% 99% 98% Competitive Business 42 Sydney Buses Fleet size - buses 181 177 171 178 166 Western Sydney Buses 48 Total revenue (‘000) $495,534 $520,147 $523,377 $528,907 $522,710 Fleet size - ferries 2 2 2 2 2 Patronage (‘000) 186,486 185,987 186,999 191,312 192,804 Western Sydney Buses Financial Statements 50 Kilometres (‘000) 78,993 79,117 78,290 79,277 81,033 Total revenue (‘000) $4,077 $4,536 $4,632 $5,458 $5,620 State Transit Authority Staff 3,854 3,820 3,920 4,039 4,209 Patronage (‘000) 1,687 2,015 2,279 2,522 2,622 of New South Wales 52 Total revenue per passenger $2.66 $2.80 $2.80 $2.76 $2.71 Kilometres (‘000) 1,733 1,665 1,746 1,829 1,885 State Transit Total revenue per Km $6.27 $6.57 $6.69 $6.67 $6.45 Authority Division 102 Passengers per vehicle Km 2.4 2.4 2.4 2.4 2.4 Staff 48 49 52 51 52 Total revenue per passenger $2.42 $2.25 $2.03 $2.16 $2.14 Western Sydney Passengers per employee 48,393 48,688 47,704 47,366 45,808 Buses Division 123 Vehicle Km per employee 20,498 20,711 19,972 19,628 19,252 Total revenue per Km $2.35 $2.72 $2.65 $2.98 $2.98 Changeovers per 100,000 Kms Passengers per vehicle Km 1.0 1.2 1.3 1.4 1.4 - mechanical 15.26 12.94 12.92 12.93 12.19 Passengers per employee 35,146 41,122 43,827 49,451 50,423 Appendices 144 - traffic 3.98 4.51 4.30 4.16 3.80 Vehicle Km per employee 36,098 33,980 33,577 35,863 36,250 Average bus vehicle age 12.8 12.7 12.6 13.2 11.7 Changeovers per 100,000 Kms Index 179 Bus service reliability (on time) 95% 95% 95% 96% 96% - mechanical 11.72 9.37 8.93 5.41 6.53 Fleet size - buses 1,745 1,733 1,790 1,832 1,879 - traffic 5.37 2.22 2.12 2.90 2.49 Average bus vehicle age 0.0 1.0 2.0 3.0 4.0 Fleet size - buses 17 17 17 17 20
176 State Transit Authority of New South Wales - Annual Report 2008/09 177 Customer Service Appendices Index Other
43. Contact Details A E Contents Hours of Service Sydney Buses Western Sydney Buses Aboriginal and Torres Strait Islander Employment 40 Electronic Service Delivery 44 8.30am to 5.00pm Brookvale Bonnyrigg Port Botany Letter to the Minister 2 Monday to Friday (02) 9941 5816 (02) 9610 7724 About State Transit 4 Emergency Response Plans 45 (02) 9582 7614 Additional Services 13, 19 Employees 5 Chaiman and Chief Burwood Annual Award Recipients 41, 174 Enterprise Agreements and Awards 40 Executive’s Foreword 3 Service Information (02) 9582 4444 Randwick Newcastle Buses (02) 9298 6714 Annual Report Publication Details 175 Environment 26-27 About State Transit 4 131500 and Ferries Kingsgrove 6.00am to 10.00pm daily Belmont Appendices 144 Environment and WRAPP Report 158-161 Network Maps 7 (02) 9582 3015 Ryde (02) 9941 6814 (02) 4945 0333 Apprenticeships 37 Equal Employment Opportunity 165-166, 169 Performance Highlights 10 Leichhardt Auditor-General 154 Equity 44 Head Office Waverley Hamilton (02) 9582 5915 Ethnic Affairs Priorities Statement and Agreements 167 Level 1, 219-241 (02) 9298 6623 (02) 4947 1600 Year In Review 14 Cleveland Street, Mona Vale B Executive Structure 148 Newcastle Ferry Services Customer Service 16 Strawberry Hills (02) 9997 1258 Willoughby Board Members 149-150 (02) 4974 1160 NSW 2010 (02) 9941 9214 Brookvale Depot Redevelopment 11, 47 F Environment 26 North Sydney Bus Depot Strategy 47 Fares Determination 151 Safety 28 Tel: (02) 9245 5777 (02) 9245 5260 Website Addresses Bus Operator Recruitment 40 Financial Review 43 People 34 www.sta.nsw.gov.au Bus Refurbishment 20 Financial Statements 50-143 Competitive Business 42 www.sydneybuses.info Bus System Contract 44 Fleet 5, 20 Western Sydney Buses 48 www.newcastlebuses.info Freedom of Information 155-156 C Financial Statements 50 Capital Expenditure 43 G CBD Shuttle 12, 19 Government Funding and Social Program 151 State Transit Authority of New South Wales 52 Chairman and Chief Executive’s Foreword 3 Graduate Programs 36 State Transit CES/SES bands 171 Guarantee of Service 163 Authority Division 102 Commercial Items 151-161 H Western Sydney Committees 157 Buses Division 123 Competitive Business 42-47 Heritage Management 161 Community Relations Commission 169 Human Resource Items 164-174 Consolidated Income and Expenditure Statements 147 Human Resource Statistics 164 Appendices 144 Contact Details 178 I Corruption Prevention and Ethics 170 Index 179 Independent Auditor’s Report 54-55, 104-105, 124-125 Credit Card Certification 161 Information Technology 44-45 Customer Response 162 Insurance 46 Customer Safety 29-30 Integrated Network Reviews 12,24-25, 167 Customer Service 16-25 Investment Management Performance 153 D ISO 9001:2008 Certification 45 Depot Operational Supervision and Support Review 41 K Disability Plans 163 Key Performance Indicators 176-177
178 State Transit Authority of New South Wales - Annual Report 2008/09 179 Index
Contents L R Legislation 6, 150 Recruitment 40 Letter to the Minister 2 Leichhardt Depot Redevelopment 11, 47 Response to Matters Raised by The Auditor-General 154 Letter to the Minister 2 Revenue Protection Unit 47 Chaiman and Chief Executive’s Foreword 3 Liability Management Performance 153 Risk Management 45 About State Transit 4 List of Publications 175 Routes 5 Liverpool-Parramatta T-way 9, 48-49, 122-143 Network Maps 7 S Performance Highlights 10 M Safety 6, 28-33 Metrobus 11, 18 Senior Executives’ Qualifications 172 Year In Review 14 Metropolitan Bus System Contract 44 Service Changes 162 Customer Service 16 Mobile Phones 161 Service Delivery 22 Environment 26 SES Performance Review and Remuneration 172 N Special Events 25 Safety 28 Network Maps 7-9 Staff Recognition Scheme 41 People 34 Network Reviews 12, 24-25 Statutory Information 146-147 Competitive Business 42 New Buses 13 Strategic Plan for Women 39, 166 Western Sydney Buses 48 Summary of Land 146 O Sustainability Policy Targets 160 Occupational Health, Safety and Rehabilitation 170 Financial Statements 50 Sydney Service Area 7 Operational Items 162-163 State Transit Authority Organisational Items 148-150 of New South Wales 52 T Outer Metropolitan Bus System Contract 44 State Transit Ticket Reseller Network 18 Authority Division 102 Overseas Travel 154 Tourism Services 6 Transport Info 21-22 Western Sydney P Buses Division 123 Turnover 5 Passenger Feedback 22 Passenger Information 6, 21-22 W Appendices 144 Patronage 5, 20 Western Sydney Buses 48-49, 122-143 People 34-41 Workers Compensation 30 Index 179 Performance Agreements 40 World Youth Day 13, 25 Performance Highlights 10 WRAPP Report 158-160 Performance in Paying Accounts 154 Women 39 PrePay 11, 17 Privacy Management 171 Public Transport Information and Priority System 23
State Transit Authority of NSW
180 Back cover photo - ‘Queens Wharf, Newcastle’ - Courtesy of Newcastle Tourism www.sydneybuses.info | www.newcastlebuses.info | www.131500.info