Annual Report 2012-13 TABLE OF CONTENTS

3 LETTER TO THE MINISTER 32 PART TWO: DEVELOPING ORGANISATIONAL CAPABILITY 4 CHIEF EXECUTIVE’S MESSAGE AND CULTURE

6 ABOUT VICROADS 40 PART THREE: CORPORATE GOVERNANCE AND 8 PART ONE: REPORT STRUCTURE ON OPERATIONS Operate and maintain the road 48 PART FOUR: MANDATORY system to help our customers DISCLOSURES travel easily and reliably 60 PART FIVE: FINANCIAL Develop the road system to improve connections between MANAGEMENT places that are important to our customers 66 PART SIX: FINANCIAL STATEMENTS Improve road safety Make the road system more 117 DISCLOSURE INDEX environmentally sustainable

2 ANNUAL REPORT 3 2012-13 Gary Liddle Chief Executive Mulder MP The Hon Terry Roads Minister for 16 Level 121 Exhibition Street MELBOURNE VIC 3000 Dear Minister Annual Report 2012-13 VicRoads your in submitting to you, for I have much pleasure the of to Parliament, the annual report presentation (VicRoads) the period Corporation for Roads 1 July 2012 to 30 June 2013. sincerely Yours LETTER THE MINISTER TO CHIEF EXECUTIVE'S MESSAGE

I have been immensely proud of our achievements over the past year as we continued to focus on delivering a road system that is efficient, reliable, sustainable and integrated with the rest of the transport system. One of the highlights for me in 2012-13, was the celebration of our Centenary. Whilst we have gone through several transitions over the last century, taking a moment to pause and look back at our legacy of achievement in the development of Victoria’s prosperity and renowned liveability reminded me how far we have come as a State over that period of time. Our Strategic Directions 2012-14 provided us with the framework to understand where we should focus our initiatives to best serve the people of Victoria. It assisted us in determining a new organisational structure and to take a more holistic approach to the overall transport system. Beyond the restructure, we continued to operate our business as usual and I am proud of the progress we As I reflect back on 2012-13, have made against achieving our strategic priorities. I appreciate that this has been Some of our achievements in 2012-13 include: †† Being recognised by industry for innovations one of the most challenging related to road maintenance including leadership years in the history of VicRoads. in consistently achieving new retro reflectivity standards aimed at making road lines more We have faced a period of visible at night, improving road safety and significant change and undertaken providing support to national research involving significant steps in implementing a trial of more environmentally friendly materials for road sealing. the plan for our future. It will assist †† Undertaking a post completion evaluation of the us to become a highly agile and M1 Upgrade confirming a number of benefits including: a significant reduction in the number adaptive organisation that puts of crashes, travel time improvement of up to 10 the customer at the centre of minutes, an increase in traffic volumes, reduced delays and freight growth between 2 to 4 per cent everything we do and enables us per annum. to meet the challenges ahead. †† Continuing to maintain and deliver significant improvement to the road network. VicRoads delivered 100 per cent of its metropolitan operations program and 93 per cent of its regional operations program. A number of key outer suburban road projects such as the Dingley Arterial (Perry Road to Springvale Road) and duplication of Plenty Road at South Morang were completed. VicRoads also delivered a number of Nation Building projects that included the Anglesea Road to Princes Highway West section of the Geelong Ring Road and the Goulburn Valley Highway, Nagambie Bypass.

4 ANNUAL REPORT 5 2012-13 Gary Liddle Chief Executive I want to sincerely thank our staff and stakeholders and stakeholders staff thank our I want to sincerely the community government, industry and across 2012-13 to help together during who have worked road sustainable efficient and us deliver a more our to especially commend transport system. I want themselves to dedicate continued who have staff system, world class quality road a to providing vehicles and licensing of including the registration our organisation drivers, during a time where of a significant transformation. has gone through a great VicRoads makes what are Their efforts to work. place to implement change through As we continue I have into 2013-14 Our Future Plan for VicRoads’ we will be better equipped to address no doubt that our efforts we will face, challenges that the key proactive in efficient and integrated, will be more the community the transport needs of to responding delivering of the forefront and our people will be at to our customers. service a great Working closely with the Department of Transport, Transport, closely with the Department of Working and central Infrastructure Planning and Local and coordination agencies in the preparation budget submissions. and federal state 2013-14 of the Speed Zoning also updated VicRoads with More Guidelines and developed ‘Moving vehicle policy freight the high productivity Less’, our allows longer vehicles to access that network. freeway Transitioning to our new structure, with a strong with a strong to our new structure, Transitioning across approach emphasis on the collaborative our internal business functions. This collaboration has also extended to our external stakeholders our planning activities with other parts of where outcomes. on integrated focused government are Having INVEST, VicRoads’ sustainability rating sustainability rating VicRoads’ Having INVEST, for the 2012 Banksia as a finalist tool recognised through and innovation leadership for Awards sustainability principles in designing integrating and building infrastructure. in drive test Seeing significant improvements times appointment wait times, customer waiting in the average speed Centres, in Customer Service to answer a customer call in the Contact Centre matters. medical review and in the back-log of Undertaking trials of a number of environmentally environmentally a number of Undertaking trials of lights sustainable technologies such as LED street will significantly barriers that and solar powered electricity consumption. reduce Supporting the National Heavy Vehicle Regulator Regulator Heavy Vehicle Supporting the National in January 2013 limited operations to commence Accreditation Heavy Vehicle National the providing Based and Performance Scheme (NHVAS) recognises VicRoads (PBS) services. Standards and reform this national of the importance full heavy to support it commencing continues in 2013. functions later vehicle regulatory Collaborating with our road safety partners partners safety with our road Collaborating Commission, Victoria Accident (the Transport and other Justice) and Department of Police for directions to develop future stakeholders Strategy Safety in Victoria. The Road safety road to and supporting Action Plan which seeks and serious injuries by at fatalities reduce over the next ten years, least 30 per cent 2013. was launched in March † † † † † † † † † † † † † † ABOUT VICROADS

VicRoads is a Victorian statutory Functions authority that was established VicRoads’ functions are outlined in section 87 of under the Transport Act 1983 and the Transport Integration Act 2010, which includes: continued under the Transport †† planning for the road system as part of an Integration Act 2010. With an integrated transport system †† constructing and maintaining roads and roadsides annual expenditure of more than †† operating the road system by managing access $1.8 billion, it is subject to the and controlling use general direction and control †† leading the development and implementation of strategic and operational policies as well as of the Minister for Roads plans to improve the safety of the road system for all users †† providing registration, licensing and accreditation Purpose services for the transport system VicRoads’ purpose is to support economic †† developing and implementing effective prosperity and liveability by shaping the environmental policies, strategies and development and use of Victoria’s road system management systems as an integral part of the overall transport system. †† providing technical, project management, consultancy and information services relating Objectives to the transport system VicRoads’ primary objectives are outlined in †† providing and disseminating information section 86 of the Transport Integration Act 2010, to Victorians about the road system. which includes:

†† working with others to ensure that the road Powers system operates as part of an integrated transport VicRoads’ powers are outlined in sections 88 and system that seeks to meet the needs of all 89 of the Transport Integration Act 2010. In general, transport system users VicRoads has the power to act as necessary or †† managing the road system in a way that convenient to achieve its object and functions. supports a sustainable Victoria, by encouraging VicRoads also has powers under a number of other sustainable transport modes, and seeking to acts and their associated regulations including: improve the environmental performance while †† Accident Towing Services Act 2007 minimising adverse environmental impacts from the road system †† EastLink Project Act 2004 †† Melbourne CityLink Act 1995 †† contributing to social wellbeing by providing access to opportunities and supporting liveable †† Road Management Act 2004 communities †† Road Safety Act 1986. †† promoting economic prosperity through efficient and reliable movement of persons and goods †† working with others to reduce deaths and injuries arising from road crashes.

6 ANNUAL REPORT 7 2012-13 system to help and maintain the road operate our customers travel easily and reliably system to improve develop the road important are that between places connections to our customers safety road improve environmentally system more road the make sustainable. † † † † † † † † VicRoads’ strategic directions strategic VicRoads’ directions strategic three-year develops VicRoads describe the vision, purpose and objectives that we need and identifies what our organisation of period to achieve a three-year on over to focus directions to support the strategic them. Initiatives annual business VicRoads’ during considered are in our annual which is reflected planning process, plan. corporate have been and projects programs VicRoads’ against the VicRoads developed and delivered Our main 2012-2014. Directions Strategic to: objectives are Reducing red-tape for business and making business for red-tape Reducing effective and efficient, are that regulations also government priorities. are transparent these of administers a wide-range VicRoads to regulatory and contributes regulations and reforms. reviews priorities, In delivering the Government’s transport federal, state work in partnership with staff VicRoads’ their and local government agencies, businesses, By working together and communities. associations Victoria’s liveability and enhance we enhance and prosperity. growth opportunities for Victoria’s Developed by Victorian Government policy: The Sustainable Victorian Government policy: Services and the Better Government Initiative the reforming are Taskforce Implementation that services public sector and aim to provide all Victorians. work best for National transport investment: The Nation Building The Nation transport investment: National a number Victoria for funding to provides Program across projects improvement infrastructure of the Victorian transport system on a funding share in projects delivers major road VicRoads basis. Victoria under this program. National transport reforms: At a national level, At a national transport reforms: National for initiatives to reform is contributing VicRoads by the have been agreed heavy vehicles that The reforms Australian Governments. Council of productivity freight road national aim to improve and operators freight for costs reduce and safety, infrastructure find better ways to fund and price freight movement. supports efficient that Metropolitan Planning Strategy and Planning Strategy Metropolitan manage growth plans: To growth regional transport needs in Melbourne and associated centres. and regional Cycling into the Future 2013-2023: Future the into Cycling have been Six directions Challenge: Cycling of developed to build Victoria’s understanding trips Victorian cyclists cycling and the kind of these trips and increasing with the aim of take, bike people to considering more encouraging riding as an option. Road Safety Strategy 2013-2022: Strategy Road Safety The Victorian Government has a strong economic economic has a strong The Victorian Government the based on strengthening and fiscal strategy growth, productivity improving finances, State’s delivery service to improve spending targeting and investing in high quality infrastructure. the Transport VicRoads, of partners safety the road and the Commission, Victoria Police Accident sets a target strategy The Justice. Department of and serious injuries by more fatalities to reduce than 30 per cent. † † † † † † † † † † † † † † Government priorities Government have and priorities that Government strategies include: VicRoads particular impact on PART ONE: REPORT ON OPERATIONS 01

This section provides information about VicRoads’ performance against VicRoads Strategic Directions PART ONE REPORT ON OPERATIONS ANNUAL REPORT 9 2012-13 VicRoads is committed to providing a road system a road to providing is committed VicRoads customers to travel easily and allows our that emphasis on understanding placed have We reliably. and their expectations, our customers’ needs travel and encourage space road to better allocate supports an efficient transport behaviour that to: system. Our priorities in 2012-13 have been road space and manage Better allocate it efficiently and reliably vital to our social and economic are Victoria’s roads our state. as the liveability of as well prosperity to transport on roads space adequate Allocating deliver services, people, move goods efficiently, and support utilities, host shopping precincts trade-offs activities requires interact with community objectives. and balancing of beyond the point where Our cities have grown traffic with coordinated roads of the simple provision the many users adequately. signals can serve all of assigns clear this, SmartRoads to In response at road users priority to different operational with consultation in day, of the times different has approach This award-winning communities. - been acknowledged by the Victorian Auditor Congestion. Managing Traffic General’s report have and site proposals project than 350 More approach using the SmartRoads been evaluated upgrades, freeway including rail grade separations, tram and duplication, major developments, road upgrades and pedestrian and bicycle bus route projects. improvement the SmartRoads of implementation The continued travel of will mean changes in the nature approach cycling and public users – with walking, road for important as increasingly transport being considered transport modes. making this task easier; New technologies are of the day, times different adjusting speed limits at adjusting parking times and managing lane use earlier and improved It also provides on freeways. and via the web. to travellers on the road advice

Objective: easily and reliably our customers travel Operate and maintain Operate the road system to help the road Encourage changes to travel behaviour Maintain assets to service levels that that support an efficient transport system meet customer needs An integrated transport system supports practical VicRoads’ maintenance activities aim to minimise choices in travel modes to suit the travel needs transport costs, improve road safety and ensure that of individuals and companies. VicRoads has an we can secure maximum benefit for our community important role to support road based transport from road system investments. including trams, buses, cycling and walking. Weather conditions in the last two years have Our planning policies are geared to encourage caused increases in potholes and degradation of non-motorised methods of travelling as they are pavements, beyond the levels experienced during the most environmentally sustainable, support the prolonged drought. The response has been liveability, and are the least expensive to use and to prioritise resources to address critical safety maintain. maintenance, ensuring safe and reliable travel. In December 2012, the Government released the new Cycling Strategy 2012-2013. Objectives of the Improve emergency response and recovery Strategy include, reducing safety risks, encouraging VicRoads plays a vital role in the response to, and more people to take up cycling and better targeted recovery from, large scale emergencies. A key investments in the bicycle network. A number of aspect of this is the provision of information cycling infrastructure projects commenced in on road closures and conditions via the web 2012-13 as part of major road projects. These and out on the road system. include the Dingley Bypass and upgrades to Stud Roadside management includes bushfire prevention Road, Bayswater, High Street Road in Wantirna measures, with VicRoads working alongside other South and the Narre Warren - Cranbourne Road agencies and emergency services to support in Narre Warren. effective responses for protecting life and property. The Traffic Monitor publication provides information on the performance of the network each year. Passenger vehicle occupancy is a particular challenge to manage, as car occupancy has been decreasing. For more information visit vicroads.vic.gov.au Since 2001 Victoria’s road network has enabled a 15 per cent increase in the vehicle kilometres travelled (VKT) in support of a 17 per cent increase in population and a 32 per cent increase in the Gross State Product (GSP).

10 PART ONE REPORT ON OPERATIONS ANNUAL REPORT 11 2012-13 2011-12 2010-11 21,300 20,200 118,300 124,100 AM PEAK PM PEAK 2009-10 Bus Tram Vehicles 1,628,500 1,691,600 2008-09 Off Peak

Bus Tram Vehicles

The travel time variability in the morning peak The travel time variability in the morning in variability. has shown a slight overall decrease peak during the afternoon/evening Variability relatively peak is while off slightly, is increasing unchanged. vehicles in Victoria and registered The number of travelled in Melbourne the total vehicle kilometres during this same period. have increased 2006-07 2007-08 PM Peak

2005-06 AM Peak

PM Peak AM Peak 2001-02 2002-03 2003-04 2004-05 0 200 600 400 800

2,000 1,600 1,400 1,800 1,200 1,000 0.0% (x1000) Travelled Kilometres People 5.0% 15.0% 20.0% 10.0% 25.0% 30.0% Person throughput measure reflects how efficiently reflects measure throughput Person people system supports movement of the road area. the inner Melbourne metropolitan through Fig 2. Person throughput in Melbourne inner area The last year saw increases in average traffic delay in average traffic The last year saw increases This the state. and travel time variability across people number of with an increasing correlates have been holding travel using our network. We however we recognise constant, times relatively work to be done to achieve our is more there that system. the road improving objective of Fig 1. Travel time variability Fig 1. Travel Key Performance Indicators Key reflect indicators performance four The following of performance the operational some aspects of in role network and VicRoad’s the arterial road supporting this. Table 1. Percentage of distressed pavement

TARGET 2012-13 ACTUAL 2012-13

Metropolitan 7.2% 7.6% Regional 8.2% 7.4%

This measure reflects the percentage of the road network exhibiting cracked and/or ‘distressed’ pavement (a potential for potholes).

Table 2. Freeway incident response

YEAR TOTAL NUMBER OF ATTENDANCE PERFORMANCE CLEARANCE PERFORMANCE INCIDENTS ATTENDED NUMBER OF INCIDENTS NUMBER OF INCIDENTS BY THE INCIDENT ATTENDED WITHIN CLEARED WITHIN RESPONSE SERVICE 15 MINUTES – TARGET 80% 15 MINUTES – TARGET 50%

2009 5846 73.6% 56.8% 2010 8374 72.6% 51.9% 2011 9072 71.3% 47.8% 2012 8249 70.9% 46.6%

Since 2009, the numbers of freeway incidents VicRoads responds to has increased significantly with related traffic growth and some delay. Over that period, incident attendance and clearance rates have dropped just below targets.

12 PART ONE REPORT ON OPERATIONS ANNUAL REPORT 2012-13 13 Melbourne Bike Share scheme Melbourne Bike scheme is an initiative Share The Melbourne Bike transport in the modes of alternative to promote and both cost inner city and support the use of system road for Victorian transport efficient energy MP, Mulder the Hon. Terry 2013, users. In March month free a three announced Roads, Minister for greater helmet trial which is expected to encourage the scheme. of uptake Bicycle and pedestrian upgrades Bicycle and pedestrian to improve 39 projects delivered VicRoads across access pedestrian and bicycle network. the road Easy Access tram stops Bridge Road Easy Access two pairs of Construction works of Street between Church Stops (EAS) on Bridge Road These 2013. in March was completed and Punt Road tram passengers, for accessibility works will improve to the tram the kerb from access level by providing carrying capability door whilst maintaining the traffic the road. of 96 Corridor Development Route Tram Development aims to improve 96 Corridor Route the tram network. Planning for and reliability access on improvements a range of is underway for between Victoria Parade, Carlton Nicholson Street will East Brunswick. Improvements and Blyth Street, intersections, upgrade of key include tram priority at tram stops. or removing tram stops and relocating Our ‘Moving More with Less’ policy was launched Less’ with More Our ‘Moving longer High This new policy allows for in April 2013. (HPFV’s) to use more Vehicles Freight Productivity network to transport goods to the road of costs freight reducing with the aim of consumers, on Victorian trucks and lowering the number of HPFV’s are 30 metre Under the policy, roads. Freeway, on the Monash allowed to operate and the West CityLink, EastLink, the Ring Road Victoria, HPFV’s up to In regional Freeway. Gate able to transport goods in length are metres 36.5 Gate Melbourne via the West of the Port from to Geelong; the Highway West to Princes Freeway the Calder Freeway to Ballarat; Freeway Western and to Wodonga; to Bendigo; the Hume Freeway Hastings. of Highway to the Port the Westernport have been imposed measures safety Accompanying users. all road of safety the continued to ensure Broader access for High Productivity Broader access for High Productivity Vehicles Freight VicRoads completed a trial, allowing motorcycles a trial, allowing motorcycles completed VicRoads to use the southbound bus lane and motor-scooters bicycles using bus of A review on Hoddle Street. which is currently lanes has also been undertaken, of these studies will be The findings under review. a policy on other development of used to inform transport using bus lanes. modes of Trials and investigations into motorcycle and investigations Trials bus lanes use of and bike The first section of the M80 managed motorway The first section was and Calder Freeway Road between Sydney is now Planning work in 2012-13. completed underway to extend the Monash managed Road. motorway to Warrigal Intelligent transport systems and managed Intelligent transport systems and motorways on M1 and M80 Highlights the the year in operating Some highlights of network include: VicRoads explores new ways to minimise Hazard management works whole of life asset maintenance costs VicRoads delivered works to prevent landslides In 2012-13, VicRoads instigated and supported a on the arterial road network. Remedial works were number of innovations in the maintenance industry performed in response to natural disasters in the through our commercial business Sprayline Road Otway Ranges, South Gippsland and the Great Services (SRS) including: Alpine Road. VicRoads also installed a remote monitoring system at the Victorian Comprehensive †† new retro reflectivity standards aimed at making Cancer Centre after ground movements were road lines more visible at night to improve road observed during road construction. safety, which received a commendation from the Road Marking Industry Association of Australia There are also a range of ongoing programs for our leadership. and activities which are fundamental to operating the road system properly. These include: †† a trial of a more environmentally friendly binder additive for road sealing called ‘Talex’ (tall pitch †† pavement maintenance oil from paper making process), which received a †† structural maintenance and rehabilitation commendation from the ARRB Group for support †† roadside maintenance provided to Austroads national research. †† electrical maintenance (street lighting, traffic †† trials of several premium cold mix products for signals and intelligent transport systems) pavement pothole repairs across a number of locations. Results indicate that they are more cost †† registration and licensing services effective than traditional repairs over the longer †† traffic management services, providing term, as most trial repairs have remained in good information to customers that helps them make condition for 12 months, whereas traditional informed travel decisions, as well as monitoring treatments required rework within 2 to 3 months. the traffic flow to respond to hazards and †† trialling the use of new data recording systems minimise disruption to road users. to help VicRoads develop its Asset Maintenance Management System.

14 PART ONE REPORT ON OPERATIONS ANNUAL REPORT 2012-13 15 Upgrade roads to tackle congestion tackle roads to Upgrade some to grow, continues As Victoria’s population is inevitable. While much congestion road level of congestion involves to manage our effort of also we operate, how existing roads improving capacity. to increase to upgrade roads continue include significant projects Congestion reducing Ring upgrades to the Monash (M1) and Western the and initial planning for (M80) freeways Road managed maximise capacity, Link. To East-West being included as part motorway technologies are any major developments. of the road system to support Upgrade freight productivity heavy involved in the national is heavily VicRoads productivity which aim to improve vehicle reforms The Heavy Vehicle within the heavy vehicle industry. Building is a Nation program and Productivity Safety for and productivity safety to improve program Australia. The across heavy vehicle operations policy, with Less Government’s Moving More the efficiency launched in April 2013 will improve a network of movement by providing freight of metropolitan and highways across selected freeways Solutions Victoria. Transport Melbourne and regional that initiative freight is the Government’s regional to reduce projects suite of a targeted provides key transport flows in bottlenecks and improve in collaboration It was developed areas. regional with local government and industry. In order to meet the challenges of future transport transport future to meet the challenges of In order and population demand with both an increasing system is used, variability in how our road greater road and effective accessible we need to plan for with other agencies such works links. VicRoads Public Transport Authority, Areas as the Growth infrastructure Victoria to prepare Victoria, and Places suburbs and the needs plans which support growing new businesses in new developments. of Plan effective transport solutions for Plan effective transport solutions future residential and commercial developments in metropolitan Melbourne and regional Victoria VicRoads plays a crucial role in shaping the a crucial role plays VicRoads and society the Victorian economy of future allows system that a road developing through with each businesses and people to connect way. other in a reliable Our priorities in 2012-13 have been to: Objective: system to Develop the road connections between improve important are places that to our customers Key Performance Indicators

Fig 1. Average delay

0.90

0.80

0.70

0.60 min/km

0.50

0.40

0.30 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

AM Peak PM Peak Off Peak

Average traffic delay has increased during morning Overall, average delay in travel time across the road peak, afternoon/evening peak and off peak periods system has increased across all travel time periods. over the last decade. The rate of increase differs for the three time periods, with the fastest rate of increase during the afternoon peak period.

Fig 2. Freight density

800

600

400

Tonnes/lane/hour 200

0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Freeways Arterials

The last year saw an increase in the density of freight on freeways and a decline on arterials, indicating that industry is electing to reduce use of arterials to move freight. There has been relative consistency in freight network delay, though it should be noted that there was a reduction in freight movement at the time of the global economic downturn.

16 PART ONE REPORT ON OPERATIONS ANNUAL REPORT 17 2012-13

0.72 0.35 0.49 0.58 2011-12 All Day FINANCIAL YEAR 0.47 0.35 0.58 0.64 2010-11 FINANCIAL YEAR 2011-12 Financial Year O Peak

0.71 0.48 0.56 0.34 2009-10 2010-11 Financial Year 2010-11 Financial Year FINANCIAL YEAR PM Peak Peak PM 2009-10 Financial Year 2009-10 Financial Year TIME OF DAY All Day PM Peak PM Peak Off AM Peak AM Peak AM Delay - DLY Delay - DLY (min/km) 0.00 0.30 0.80 0.60 0.20 0.50 0.40 0.70 0.10 The average freight delay results show that whilst show that delay results The average freight the day, delay across in freight is variation there the financial across consistent relatively it remains in total This is despite the increase years reported. travelled in Melbourne. vehicle kilometres Fig 3. Freight delay Freight Fig 3. Table 1. Freight delay 1. Freight Table Highlights Planning and construction of the Dingley Corridor The following highlights reflect our commitment The 3.5 kilometre Springvale Road to Perry Road to providing better development of the road system. section of the Dingley Corridor was opened to traffic in December 2012. This new link is now Development of the Government’s carrying about 30,000 vehicles per day, reducing Metropolitan Planning Strategy and congestion along nearby arterial roads, particularly Regional Growth Plans the sections of Cheltenham Road, Perry Road and The Department of Transport Planning and Local Springvale Road. Infrastructure is leading the development of a Planning activities for the next section of the Dingley Metropolitan Planning Strategy (MPS) to manage Corridor are well under way. It will be 6.4 kilometres Melbourne’s growth and change, including links in length between Warrigal Road Oakleigh South with regional Victoria. and Westall Road, Springvale. Construction works This will outline urban planning directions to ensure on this section are scheduled to commence in 2014. that the valued aspects of Melbourne are protected This section will link the previously constructed while allowing for future needs. sections of the Dingley Corridor and improve connections between the Dandenong Activity Throughout 2012-13 VicRoads participated in an Area and Moorabbin. Inter-Departmental Committee overseeing the development of the MPS. VicRoads was part of Planning and preconstruction work on a team from across the transport portfolio that shaped the transport elements of the MPS. Ballarat West Link Road Planning and preconstruction work for Ballarat Delivery of the Outer Suburban West Link Road is under way and will support Road Program employment creation in the Ballarat community. Construction for this 4.2 kilometre section VicRoads delivered construction works for a number is scheduled to be completed by the end of of outer suburban road projects, including: November 2014. It will involve a single carriageway †† Dingley Arterial between Perry Road to Springvale with two traffic lanes, a roundabout, single span Road overpass of the Ballarat-Ararat railway and major †† Palmers Road rail overpass at Williams Landing culverts at Winter Swamp. †† Plenty Road duplication at South Morang Melbourne Airport Link to the Outer †† duplication works on Clyde Road at Berwick Metropolitan Ring Transport Corridor (OMR) and Hallam Road and Bulla Bypass †† Hampton Park upgrade works, which commenced in 2012-13, remain in progress. Planning for the Bulla Bypass and Melbourne Airport Link (linking the Tullamarine Freeway with Construction works are progressing to upgrade the Outer Metropolitan Ring) is well under way. The Hallam Road as part of the Hallam Road Bulla Bypass will link the Sunbury growth areas to Carriageway Duplication – Pound Road to Ormond Melbourne’s north and Melbourne’s Airport business Road. This will deliver a fully divided road for 2.5 precinct. Melbourne Airport Link will join the kilometres between Pound Road and Ormond Road northern industrial areas to the south. in Hampton Park. The project is expected to be completed in 2014.

18 PART ONE REPORT ON OPERATIONS ANNUAL REPORT 2012-13 19 Travel times on the eastern side times on times: Travel Travel with shown an improvement, the city have of by travel times reducing the AM peak inbound the city, the western side of On 33 per cent. peaks have in the AM and PM travel times inbound peak outbound times and PM cent 9 per increased The Monash Freeway by 5 per cent. have reduced Road and Heatherton Road between Toorak with improvement the greatest has experienced during both AM and directions in both decreases per - 35 peak times (up to 10 minute decreases PM faster). cent volumes have increased Network efficiency: Traffic per annum in both directions by up to 7 per cent the upgrade. Delays of the completion following in some areas, by up to 70 per cent have reduced between the west however they have increased during the M1 and city inbound direction end of than 25 per cent peaks by more the AM and PM respectively. and 43 per cent Increased commercial and industrial activity: per between 2 to 4 per cent has grown Freight the M1 Upgrade, of the completion annum since Travel forecasts. flow which is in line with freight by 20 per cent has also reduced time variation of completion following in the peak direction the upgrade. M1 Upgrade evaluation M1 Upgrade works on construction The M1 Upgrade involved Freeways and Westgate the Monash of 75 kilometres congestion, 2011 to improve between 2007 and mid works included bottlenecks. The and reduce safety as well as undertaking capacity improvements management freeway implementing electronic the corridor. along sections of systems (FMS) is conducted Completion Evaluation The Post the upgrade, of the completion a year following the expected benefits have whether and reports realised include: Benefits been realised. crashes per The average number of safety: Road since by 12 per cent year on the M1 has reduced has There was completed. upgrade construction in the number of decrease been a 19 per cent in the number of reduction and 12 per cent fatalities per vehicle serious crashes. The average crash rate by 23 per cent. has also reduced travelled kilometres Nation Building projects Princes Highway East duplication – Traralgon to Sale: The 4 kilometre section VicRoads delivered the following Nation between Wurruk and Sale was opened to traffic in Building projects in partnership with the June 2013. Construction for the section between Federal Government. Stammers Road and Minniedale Road, Traralgon East commenced in July 2013, with completion forecast Geelong Ring Road: Construction works on for late 2014. Geelong Ring Road section 4B, Anglesea Road to Princes Highway West was completed and Princes Highway West duplication: Waurn Ponds opened for traffic in February 2013. to Winchelsea and Winchelsea to Colac: Planning Goulburn Valley Highway, Nagambie Bypass: and preconstruction activities between Winchelsea The 17 kilometre Nagambie Bypass upgrade of and Colac have commenced. the Goulburn Valley Highway was opened to Western Highway duplication – traffic at the end of April 2013. This highway is a Ballarat to Stawell: The new carriageway for the vital transport route from the Goulburn Valley to 8 kilometre section (1A) from Ballarat to Burrumbeet Melbourne and also forms part of the national was opened on 31 January 2013. A 2.9 kilometre highway link between Melbourne and Brisbane. section (1C), east of Beaufort was completed in March 2013. Significant construction works were M80 Upgrade: Construction works on the M80 Ring undertaken on the 23 kilometre section (1B), from Road Upgrade are well underway. The 10.7 kilometre Burrumbeet to east of Beaufort and planning works section between the Calder Freeway and Sydney from Beaufort to Ararat (Section 2) and Ararat to Road was completed in May 2013. The Western Stawell continue. Highway to Sunshine Avenue component is expected to be completed by December 2013 Western Highway upgrade and Stawell and the Edgars Road to Plenty Road section is to South Australian border: The Western Highway forecast for completion by December 2014. is the principal road link for interstate travel between Victoria and South Australia. Current upgrade works are on schedule and due to be completed by June 2014.

20 PART ONE REPORT ON OPERATIONS ANNUAL REPORT 2012-13 21 As part of the Commonwealth the Area upgrades: As part of Rest Program, and Productivity Safety Heavy Vehicle Bentons Hill, Chiltern at areas upgrades to rest Hill have been completed. and Reef Park, Mokoan sites has on the two remaining Construction works next year’s program. from forward been brought and ongoing programs also a range of are There fundamental to maintaining activities which are road system. These include the an efficient Policy Freight the High Productivity development of Authority Areas and working with the Growth and and local governments to develop policies areas. guidelines to support growth Projects in the planning and construction stage in the planning and construction Projects include: arterial roads improving Rup Bypass Wee Rup Bypass: The Koo Wee Koo two lane arterial kilometre new 3.4 a will provide and the South Rup Road Wee Koo link between road Construction is expected to Gippsland Highway. completion 2013 and is scheduled for begin in late 2015. by the end of upgrade: Capacity Road Ballarat-Buninyong the Mt. Clear roundabout works at improvement northbound capacity ongoing, with are to Works now being realised. improvements will southbound traffic for widen the roundabout Planning year. in the next financial commence in the Olympic Avenue works and design for is ongoing, with – Damascus College area in early 2014. scheduled commencement Improvements to arterial Improvements roads Objective: Build safety into road design, road operations and vehicles with Improve Road Safety a focus on integrating these elements VicRoads is committed to ensuring all users on VicRoads implements major infrastructure Victoria’s roads arrive at their destination safely. programs to address high risk safety issues VicRoads has partnered with the Transport Accident across the road network. Commission, Victoria Police, the Department of Justice and other stakeholder groups to achieve In March 2013, the Government announced this vision. In 2012-13 the Victorian Government a $1 billion investment in safer roads as part announced the Road Safety Strategy 2013-22, which of Victoria’s new ten year Road Safety Strategy. aims to reduce fatalities and serious injuries by more The Transport Accident Commission funded than 30 per cent. Safer Road Infrastructure Program (SRIP) and National Blackspot Programs provide infrastructure Our priorities in 2012-13 have been to: treatments to sites across the road network Improve when and how people and vehicles to reduce the impact of crashes. are granted access to the road network VicRoads is also a leader in road safety engineering Using the road system is a privilege not a right. with a particular emphasis on building safety into the This is an important road safety message that design of our roads including speed limits, signage implies granting access to the road system comes and road condition. with certain responsibilities that are shared by all The Heavy Vehicle Safety and Productivity Program customers to ensure that everyone arrives at their is a Nation Building Program to improve safety destination safely. and productivity for heavy vehicle operations VicRoads manages a number of programs to across Australia. improve the community’s understanding of their responsibilities, with a particular emphasis on novice Assist people to take responsibility drivers and vulnerable road users. Our registration for making safe choices and licensing system continues to serve as an Taking responsibility for making safe choices important entry point, in permitting both vehicles is an ongoing commitment that all road users and people access to the road system, by ensuring must share. VicRoads manages specific programs that they maintain vehicle safety standards and around road user behaviour that aim to educate are equipped with the necessary driving skills. Our the population of the importance of making RandL program is a significant upgrade of the safe choices. The L2P and Keys Please Programs registration and licensing system, which will are youth targeted programs emphasising the help us support the growing demand for road importance of young people achieving a minimum system access. of 120 hours experience. The programs provide support for those people without access to driving instructors or supervisors, and education for young people in schools across the state.

22 PART ONE REPORT ON OPERATIONS ANNUAL REPORT 2012-13 23 2012 2011 2011 2010 2009 2009-10 2008 Serious casualty crashes per 10,000 licence holders Serious casualty crashes per 10,000 Year published by ANCAP Year

2008 2006 2007 3 stars or less 2000-04 4 stars 5 stars 2000 Before Before Serious casualty crashes per 10,000 registered vehicles registered Serious casualty crashes per 10,000

2001 2002 2003 2004 2005 0 0 2 4 6 8 25% 50% 75% 10 100% The number of five star safety vehicles among five star safety The number of the vehicles tested by the Australasian New Car Before (ANCAP) is increasing. Assessment Program they in 2000-04, none, however were 2000 there sale. By new vehicles for of per cent made up 14 new vehicles majority of they made up the 2009-10, shows that This measure 62 per cent. sale, at for than they safer sale today are vehicles available for 2000. before were Australasian New Car Assessment Program trends – vehicle models Fig 2. ANCAP Trends – Vehicle models – Vehicle Fig 2. ANCAP Trends The number of serious casualty crashes per 10,000 serious casualty crashes per 10,000 The number of held has licences vehicles and per 10,000 registered Strategy Safety The Road 2007. been declining since these numbers 2013-22 aims to further reduce all Victorians. for roads in safer resulting Key Performance Indicators Key 18-25 year old persons Fig 1. Crashes involving Table 1. Estimated crash reductions from Safer Road Infrastructure Programs

EVALUATION SAFER ROAD % CASUALTY CRASH % SERIOUS CASUALTY INFRASTRUCTURE PROGRAM REDUCTIONS CRASH REDUCTIONS 1 Safer Road Infrastructure Program 1 24% 31% 2 Safer Road Infrastructure Program 2 33% 44% 3 Safer Road Infrastructure Program 3 31% To be determined in 2013-14

A ‘serious casualty crash’ is a crash in which the A ‘casualty crash’ is a crash in which a road user most seriously injured road user was killed within received an injury of any severity (i.e. a fatal crash, 30 days due to the crash or transported/admitted serious injury crash or other injury crash). to hospital as a result of the crash (i.e. a fatal crash or a serious injury crash).

Fig 3. Metropolitan Speed Zone Surveys The 85th percentile of traffic speeds under different speed limits have decreased over time, although they remain above posted speed limits. With lower speed limits, the reduction trend is taking longer, whilst the 85th percentile speeds for the 80km/h zone is marginally above the limit.

90

85

80

75 Speed (km/hr

70

65

60

55

May May May May May May May May May May May May May May May May May Nov Nov Nov Nov Nov Nov Nov Nov Nov Nov Nov Nov Nov Nov Nov Nov Nov 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Year/Month

85th %ile in 80km/h sites 85th %ile in 70km/h sites 85th %ile in 60km/h sites

24 PART ONE REPORT ON OPERATIONS ANNUAL REPORT 2012-13 25

3.0 77% 205 36% 90% 2012-13 4.3 71% 233 36% 89% 2011-12 4.8 296 49% 69% 90% 2010-11 In addition to the above, the average time In addition to the above, a driver’s fitness case file where to action a medical from has been reduced to drive is being assessed, safety road which is a boost for 15 days to 72 hours Customers customer experience. and outcomes their overall customer with their satisfaction rated Customer Services by VicRoads provided experience an aggressive in 2012-13 against 90 per cent at Importantly the improvements target. 85 per cent under budget. delivered were fronts multiple across division is embarking and Licensing The Registration that program and innovation on a modernisation customers. it offers the services will further improve 1 TARGET TARGET Customer waiting for drive test appointment no Customer waiting for longer than 4 weeks The average speed to answer customer calls no The average speed to answer customer seconds longer than 240 85% of customers satisfied with registration registration with customers satisfied 85% of services and licensing 80% of customers served within 10 minutes 80% of 80% of telephone calls answered within telephone calls answered 80% of 30 seconds Overall Satisfaction Efficient services The 2012-13 actual is lower than target due to the call demand exceeding the VicRoads call centre capacity. The measure is The measure capacity. call centre the VicRoads due to the call demand exceeding The 2012-13 actual is lower than target being superseded in 2013-14 by the Average Speed of Answer, which reflects the average time taken to answer a call. the average time taken which reflects Answer, Speed of by the Average being superseded in 2013-14 1 Table 2. Customer service 2. Customer performance measures Table Customer service measures performance productivity in staff Significant improvement under in Customer Services service and quality of has division and Licensing Registration VicRoads service all key across in improvement resulted A drive test appointment is now delivery areas. weeks which within three on average provided five weeks two years ago. Customers is down from for now wait less than ten minutes on average being calls are and telephone service counter most minute target the four within answered the time. of Highlights Delivery of the young driver Graduated Licence System (GLS) Some highlights in improving road safety include: The continuation of Victoria’s Graduated Launch of the Road Safety Action Plan Licensing System in 2012-13 provided a structured introduction to driving. It helped new drivers to VicRoads worked with our road safety partners be safer by preparing them for solo driving through (the Transport Accident Commission, Victoria Police an extended learning period; testing learner and Department of Justice) and consulted widely readiness to drive independently; protecting with stakeholders to develop the future direction for probationary drivers from high risk situations; road safety in Victoria. In March 2013 the Victorian and motivating probationary drivers to drive more Government released Victoria’s Road Safety Strategy safely. Preliminary evaluation of the Graduated 2013-22 and Victoria’s Road Safety Action Plan Licensing System to date indicates a 23 per cent 2013-16. The Strategy sets a target to reduce reduction in young driver casualty crashes and fatalities and serious injuries by more than 30 31 per cent reduction in young driver fatal and per cent over the next ten years. The Action Plan serious injury crashes. outlines specific infrastructure, speed, road user behaviour and vehicle safety initiatives that will be implemented over the next four years in pursuit of Redevelopment of the VicRoads these targets. Registration and Licensing System (RandL) Following the re-mobilisation of the RandL project Consistent with an increased focus on serious injury in early 2012, work recommenced on in the Strategy, VicRoads made a submission to the RandL system business requirements validation the Parliamentary Road Safety Committee Inquiry and detailed design. Whilst this design work into Serious Injury. This submission provided input was progressing, the core RandL system build on potential ways to improve our understanding commenced. Consultation with key registration of the cost of serious injuries and approaches to as well as licensing internal and external reducing injury related road trauma. It also dealt with stakeholders continued throughout the detailed a commitment in the Strategy to establish a new design process. Change management and planning measure for the most severe injuries. for deployment RandL has commenced. Road Safety Act review Establishment of National Heavy The 2012-13 financial year marked the completion of the Road Safety Act review. Two Bills are currently Vehicle Regulator underway to implement the outcomes of the The new National Heavy Vehicle Regulator review. These are the Road Legislation Amendment commenced limited operations in January 2013 (Use and Disclosure of Information and Other providing National Heavy Vehicle Accreditation Matters) Bill 2013 (tabled in Parliament) and the Road Scheme (NHVAS) and Performance Based Standards Safety Amendment Bill. Output from the review is (PBS) services. In February 2013, a new heavy also informing the development of alcohol interlock vehicle national law and national regulations were legislation. developed and hosted in Queensland. In May 2013, the Standing Council on Transport Infrastructure Implementation of driver licensing (SCOTI) agreed that the National Heavy Vehicle initiatives identified in the Community Regulator would undertake all regulatory functions Sentencing Reform Package by 1 September 2013, subject to proclamation of enabling legislation by all states and territories. The Victorian Government’s Community Sentencing Victoria’s enabling legislation received Royal Assent Reform project aimed to replace the variety in June 2013. Extensive work to prepare for the of community sentencing orders with a single operational commencement of the National Heavy Community Correction Order, and to give courts Vehicle Regulator will continue into the 2013-14 wider sentencing powers. One of these court financial year. powers will be a new ability to impose driver licensing sanctions for non-driving offences. The driver licensing sanction reforms are contained in the Road Safety and Sentencing Acts Amendment Bill 2013, which was introduced to Parliament on 12 June 2013. Under the Bill, driving disqualifications for serious driving offences and the new driving bans for non-driving offences will be treated consistently. 26 PART ONE REPORT ON OPERATIONS ANNUAL REPORT 2012-13 27 P Drivers Project and most the largest is one of The P Drivers Project into studies undertaken research scientific complex seeks young driver behaviour change. The project promoting crashes through the number of to reduce P Drivers newly licensed driver behaviour for safe in New aged between 18-21 in Victoria and 17-22 newly licensed 22,694 A total of South Wales. to the the project for recruited P Drivers were the 2012-13 financial year. end of L2P – learner driver mentor program Accident Transport the funding from Through has supported 59 local Commission, VicRoads organisations based government and community on-road supervised Victoria to provide across who have to learner drivers driving experience a car and/or supervising driver. accessing difficulty over accruing now collectively Participants are and L2P has helped driving hours per quarter, 13,000 young people receive close to 1,800 that ensure supervised driving practice. Please Keys 10 Year Please is an in-school session for Keys and strategies information, students offering practical ideas about how to use the learner driver drivers. 550 Keys safer period to help them become students to 45,500 delivered Please sessions were in 440 schools during the 2012-13 financial year. Safe driving course for hoon offenders driving course Safe drivers and riders detected 20 February 2013, From traction or street high level speeding, loss of for their vehicles impounded have racing offences in court then convicted They are or immobilized. Driving Safe a VicRoads and must complete VicRoads have not done so before. if they Program to deliver this group has appointed six providers Victoria, with across behaviour change program participants per year expected. 2,500 Current initiatives to being delivered are programs A range of these in Victoria. Some of safety road improve listed below. are During 2012-13, the Victorian Speed Limit During 2012-13, significant public was launched following Review year the four (of 1 outcomes The Year consultation. including simplifying implemented, were program) by community nominated locations speed limits at and developing 40km/h Speed and stakeholders, pedestrians. for safety guidelines to improve Zone Implementation of the Speed Limit Review Review of the Speed Limit Implementation recommendations In 2012-13, VicRoads continued development and continued VicRoads In 2012-13, Infrastructure Road the Safer of implementation and intersection run-off-road to address Program 91 projects of crashes. The year saw the completion $76 million. In addition to this, of with expenditure million $13.3 valued at 32 new intersection projects $13.7 at valued road treatments and 10 new run off approved. million were Targeting run-off-road and intersection run-off-road Targeting Road crashes through the Safer Infrastructure Program and Blackspot Program The conditional registration review project has project review registration The conditional with vehicles examined the issues associated It has developed registration. subject to conditional will simplify that conditions set of a standardised adherence improve processes, registration current and improve by vehicle operators to conditions outcomes. safety and road enforcement Develop improved conditional registration Develop improved conditional registration arrangements for non-standard vehicles Access for High Productivity Freight Freight Access for High Productivity to support increased productivity Vehicles was launched policy with Less’ More The ‘Moving longer new policy allows for This during 2012-13. of use more to Vehicles Freight High Productivity to transport goods to consumers, network the road and lowering costs freight reducing with the aim of Longer trucks on Victorian roads. the number of sections of to high-quality vehicles have access some highways. Accompanying and freeways the imposed to ensure have been measures safety users. all road of safety continued Objective: Protect and enhance the natural Make the road system more environment and cultural heritage Protecting the biodiversity of Victoria’s native plants environmentally sustainable and animals is a high priority, as is finding ways to conserve our natural resources. Protecting places VicRoads takes its environmental responsibility of cultural importance through working with our seriously and is committed to ensuring it minimises Aboriginal and non-Aboriginal stakeholders also pollution and the impact on natural resources. continues to be a key priority. VicRoads understands that by making the road system more environmentally sustainable it will Some key activities include the development contribute to dealing with challenges such as of environmental mapping and integration with climate change, now and into the future. Our spatial information systems to support flora and priorities in 2012-13 have been to: fauna assessments. Other initiatives include the development Fauna Sensitive Road Design Manage the road system to help reduce Guidelines which aim to advise the design of Victoria’s carbon emission structures to promote fauna movement. The transport system has a large carbon footprint, so sustainability is a core consideration of all our Adapt the management of the road network activities – from constructing and operating roads, to a changing climate to the way we deliver our services. VicRoads has The increased frequency of extreme weather events, continued to plan, manage and develop the road such as severe flooding and intense bushfires, system to help reduce Victoria’s carbon emissions has impacted on Victoria’s road infrastructure. In and minimise the impact on the environment. response VicRoads has initiated as assessment of climate change impacts on assets, including the Initiatives in this space include trials of new lighting mapping of impacts such as sea level rise over the technologies and materials, installation of solar road network. Work has also begun on utilising powered barriers on the M80 and the development this information in developing a climate change of a renewable energy roadmap. Video conferencing adaptation plan. has increased both internally (at VicRoads sites) and externally to reduce the impact of travel as well as costs.

VicRoads continues its close working relationship with Aboriginal communities to deliver positive cultural heritage outcomes

28 PART ONE REPORT ON OPERATIONS ANNUAL REPORT 2012-13 29 VKT (billion kms) % change

Emissions (gigi) % change

emissions copared emissions copared

2 emissions to increase at a rate a rate at emissions to increase 2 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

2.00% 4.00% 6.00% 0.00% 8.00% -2.00% with increase in vehicle kilometres travelled with increase in vehicle (VKT) less than the rate of increase of vehicle kilometres kilometres vehicle of increase of less than the rate travelled (VKT). travel below or at has oscillated Emissions growth 2004. since growth The relationship between the change in emissions between the change in emissions The relationship travelled is comparable. and vehicle kilometres CO The aim is for Key Performance Indicators Key CO Fig 1. Increase in Table 1. Permitted vegetation removal versus vegetation offsets purchased

FINANCIAL VEGETATION TYPE PERMITTED VEGETATION RATIO YEAR VEGETATION OFFSETS PURCHASED REMOVED 2009-10 Habitat Hectares 2.90 10.24 1:3.5 Large Old Trees 78 136 1:1.7 2010-11 Habitat Hectares 17.99 15.62 1:0.9 Large Old Trees 254 452 1:1.8 2011-12 Habitat Hectares 2.32 52.40 1:22.5 Large Old Trees 171 1021 1:6.0 2012-13 Habitat Hectares 3.4 26.96 1:7.9 Large Old Trees 100 618 1:6.2

VicRoads ensures that it meets the 3-step approach under the Native Vegetation Management Framework which specifies that native vegetation impacts should firstly be avoided and then minimised. If clearing must occur, clearing must be offset. Our habitat hectare offsets purchased relative to what was removed substantially decreased from last financial year whereas the number of old tree offsets purchased, to those removed, has remained unchanged.

Table 2. Cultural heritage indicator

METRO METRO NORTHERN NORTH SOUTH WESTERN EASTERN SOUTH NORTH EASTERN WEST EAST WEST Baseline Pre 2012-13 5 7 2 4 3 3 0 2012-13 Net increase over the 0 3 0 0 1 1 0 base year Total signs, structures, 5 10 2 4 4 4 4 installations

Cultural heritage signs, installations or structures aim to interpret both Aboriginal and non-Aboriginal cultural heritage to reveal the meaning and significance of places in ways which are memorable and enriching. An increase in these initiatives across VicRoads aspires to increase the awareness of road users on the cultural significance of the land they are travelling through.

30 PART ONE REPORT ON OPERATIONS ANNUAL REPORT 2012-13 31 Action on climate change Action on climate change on climate Assessment on the impacts of by VicRoads. has been initiated network the road change climate This includes mapping the projected over the impacts, such as potential sea level rise to utilise work have commenced We network. road change in developing a climate this information plan. and mitigation adaptation Sensitive of the new Fauna Implementation Design Guidelines Road Sensitive Road developed the Fauna VicRoads staff Design Guidelines which will assist VicRoads and maintaining in designing, constructing wildlife the movement of promote that structures in response are These guidelines roads. across and fauna concerns to ongoing stakeholder network. killed on the road low noise pavement trial Innovative a long term trial to assess commenced VicRoads This trial is the surfaces. low noise road a range of graded asphalt in the world to test open second noise even greater grinding to provide with surface than normal. reduction Investigate the potential use of recycled the potential Investigate emission material and/or low materials for road construction warm mix asphalt a trial of concluded VicRoads in Campbellfield. on the Old Hume Highway this trial and other warm mix asphalt of The results the technology should that trials have demonstrated A specification construction. road for be accepted has been developed which has allowed material for asphalt works. it to be adopted in VicRoads with Aboriginal stakeholders Working its close working relationship continues VicRoads to deliver positive with Aboriginal stakeholders to Country’ ‘Welcome cultural heritage outcomes. the traditional Aboriginal owners signs recognise two sites our land, which have been installed at of network. on the road Review of INVEST Review so INVEST, of and update a review initiated We planning sustainability principles can influence that options. project decisions and assessment of A methodology to assess the sustainability attributes A methodology to assess the sustainability attributes tender submissions was trialled. project road of Its intention is to enable the sustainability benefits and sustainable technologies materials proposed of value for while also providing to be evaluated, process. money within the procurement Trial the use of sustainability attributes the use of sustainability attributes Trial within tender documentation Solar powered barrier on the M80 barrier on a solar powered of Initial construction in the in Sunshine commenced the M80 Ring Road This will supply power into 2012-13 financial year. demand is high and the electricity grid when energy draws out VicRoads of the electricity that part offset lights. street night for the grid at of Renewable energy roadmap Renewable development effective This seeks to guide cost the road across technology energy renewable of renewable network, highlighting the value of cannot be that locations at electricity generation connected to the electricity grid. effectively cost LED street lighting trials electricity on LED lighting is that Initial indications 40 per by approximately is reduced consumption They have been installed in two locations; cent. an Downs and at in Keilor Sunshine Avenue the new Nagambie Bypass. intersection at VicRoads recognised for sustainability VicRoads for the 2012 as a finalist was recognised VicRoads – Harmonious Built Environment Awards ‘Banksia VicRoads’ INVEST, Manmade Landscape’ category. its for tool, was considered sustainability rating integrating through leadership and innovation building sustainability principles in designing and the future. of infrastructure Highlights the year in developing Some highlights of the following: the network include PART TWO: DEVELOPING ORGANISATIONAL CAPABILITY AND CULTURE 02 PART TWO DEVELOPING ORGANISATIONAL CAPABILITY AND CULTURE ANNUAL REPORT 2012-13 33 initiated business improvements to help bring business improvements initiated of about early change and meet our goals better aligned service, customer improved efficient as well as more systems and processes, delivery service and responsive for reporting lines and clarified accountabilities opportunities to share more and introduced staff and implement new ideas. clarified our directions and defined expectations expectations and defined clarified our directions and objectives to be achieved that structure established a new organisation systems and processes helps us align structures, efficiency achieving greater duplication, to reduce on strategies and focus structures governance organisational revised thinking, planning and policy to lead strategic development, risk management, development people and systems, financial and business of we that management. This helps ensure and in meeting to the highest standards operate and our community Government of expectations † † † † † † † and retention Recruitment reductions managed staff VicRoads In 2012-13, the Victorian as part of required were that which was Sustainable Government Initiative, 2011. Reductions on 15 December announced attrition, natural have been achieved through packages and redundancy voluntary departure the financial year. packages throughout have structure organisation Changes to VicRoads’ function. recruitment in a centralised resulted in opportunities to streamline This has resulted and investigate minimise bureaucracy processes, centralised technical solutions. The enhanced in successful solution has proved recruitment decisions to meet the placement managing staff with in accordance structure new organisation Enterprise Agreement. in the VicRoads obligations Plan for Our Future which steps so far, some important taken We’ve have: We change. for platform a strong provide † † †

everything we do provider, that puts our that provider, under the Plan for Our Workforce Planning Workforce customers at the core of of core the customers at VicRoads is transforming VicRoads is transforming and effective road service and effective into a more efficient efficient into a more Future Graduate program Staff surveys VicRoads’ Graduate Program remains a key VicRoads conducts a number of surveys to inform element of our workforce planning strategy. We its efforts in attraction and retention, including: have maintained a strong presence at all Victorian university campus career fairs, on national and †† surveying employees within their first six months international university career websites and at to establish how closely their expectations employment expositions. In 2012-13, VicRoads of working at VicRoads matches their actual recruited 5 engineering graduates from more experience, and understand how the recruitment than 1,900 applicants. and induction processes can be improved We have a strong cohort of existing graduates †† surveying employees leaving VicRoads, through rotating within our business areas, having maintained an online confidential survey to discover why strong graduate retention rates compared with they are leaving. Results are used to improve staff national road agencies and the private sector. Over management practices. the past three years 95 per cent of our graduates have stayed with VicRoads, with figures dropping Diversity to only 84 per cent over the past five years. VicRoads has a culturally diverse workforce, which continues to reflect the cultural diversity Working with students within the broader Victorian community. VicRoads is committed to maintaining a supportive work VicRoads positions itself to attract future employees environment, free from discrimination and at key points in career planning through a variety harassment in all areas of employment and of methods, including: the provision of services. †† ‘Gap year’ program: This offers full time We have recently been recognised by the Australia employment for twelve months to VCE students Human Resources Institute (AHRI) with a national who have been accepted into engineering at award for age diversity in the workplace, recognising university and have decided to defer study, programs catering for entry level employees to enabling work experience to be gained in those transitioning to retirement through flexible their chosen field working options, access to which is embedded †† Vacation employment program: Undergraduate in our enterprise agreement. students are provided with an opportunity to experience paid work with VicRoads during VicRoads has also been recognised as a Corporate university semester breaks. In 2012-13, five Champion by the Australian Industry Group (AIG) students were employed over the summer and the Department of Employment, Education & semester break Workplace Relations (DEEWR), for ageing workforce initiatives and programs. †† Secondary school work experience program: In 2012-13, a number of school students Our Schools Initiatives have been recognised participated in work experience at different through an award presented by the Hon. Simon work locations in offices across Victoria Crean for partnerships with secondary schools. VicRoads partners with school principals and †† Industry Based Learning (IBL): This provides opportunities for tertiary students requiring work teachers in delivering special programs, involving experience as part of their degree. In 2012-13, VicRoads graduates to assist students in making two IBL engineering placements were supported. the connection between subject choice and career options with the possibility of considering a university education.

34 PART TWO DEVELOPING ORGANISATIONAL CAPABILITY AND CULTURE ANNUAL REPORT 2012-13 35 is operated Leading the Business: This program in partnership with Mt Eliza Business School. and challenging development intensive It provides for responsible who are senior managers for and critical functions and workgroups complex leaders Twenty-one organisation. the throughout in 2012-13. this program completed experienced is for the Lead: This program Taking their targeting roles, leaders in operational operationally more development in becoming learning Best practice and influential. effective participants experience methodology ensures and coaching learning, group both structured over seven months. Each mentoring programs 22 participants, and has a maximum of program in 2012-13. the program 42 leaders completed aims to support new This program Stepping Up: leadership. The of leaders in their first six months participants to the challenges introduces program provides leadership, and and opportunities of exercises and self awareness them with coaching A total of their ability to succeed. to enhance in 2012-13. in this program 57 leaders participated developed their Leading Self: 69 staff a leadership, completing understanding of to learn about leadership one-day program development. their career as part of concepts, REaL (Road to Executive Leadership): This is to Executive REaL (Road identifying aimed at program an invitation-only talent. potential executive and building the skills of the program 72 active members of are There 2012-13, and 33 active alumni members. During events such as master- participants attended series and breakfast classes, workshops, speaker formal and lunch briefings. They can also access and one-to-one development, via 360 coaching feedback. degree † † † † † † † † † Building capability capability Leadership and management leaders, with aims to develop effective VicRoads of a range offering five programs the following pathways: † Indigenous employment element of is a key Indigenous employment diversity and is underpinned workforce VicRoads’ Strategy. Indigenous Employment by VicRoads’ one of target Indigenous employment VicRoads’ Yirramboi in Karreeta is aligned to targets per cent and Victorian Aboriginal Public Sector Employment Action Plan 2010–15. Development Career employer toolkit was launched Yirramboi A Karreeta and Authority, Services in May 2012 by the State VicRoads’ study of case a best practice contains Training. Awareness Indigenous Cultural corporate cent per 0.6 comprises currently Indigenous staff and enjoys a high retention the total work force, of Under the Victorian Government’s Youth rate. Indigenous trainees Employment Scheme, three undertaking during 2012–13, employed were and Conservation in Business, and certificates Geelong Land Management, working in Kew, and Traralgon. 12 completion the Year improve helps VicRoads the Indigenous students in Victoria through for rate School Scholarship Secondary Indigenous VicRoads to scholarship is provided A secondary Program. 10 to studying Years Indigenous students currently school scholarships were 12. Eight new secondary taking the current 2013, the start of at awarded of the inception Since to 26. recipients number of the secondary of 34 recipients in 2007, the program 12. Year scholarships have completed Technical capability †† Roads Academy program development: VicRoads has a range of initiatives to support and 190 self-paced learning modules have been improve technical capability, including the following: developed. These modules aim to address skills development and the understanding of technical †† Technical Capability Assessment Program and non-technical expertise required to support (TeCaP): Provides VicRoads with vital information effective business operations across all divisions. on the technical capability profile of over 2,500 †† Cadetship Accelerated Skills Development employees. This information allows managers Program: A trial of 20 modules from the Roads and employees to ensure that their technical Academy self paced learning were conducted development is targeting the current and future using the skill assessments to measure the needs of the organisation. The program also effectiveness of the modules. permits consolidated Workforce Capability Assessments to be made at the organisational, †† Kerry Burke Scholarship: This provides up to division, business area and work group levels. $25,000 to a VicRoads’ employee to undertake Skill stocktakes have been used to support Plan training or conduct research into a technical field for Our Future throughout this year. that will directly benefit VicRoads. Mathew Hall received the 2013 scholarship. His research will †† Chartered Engineers Program: Enables study efficient use and increase of arterial road recently graduated engineers or those with capacity to improve transport productivity. only a few years of work experience to be awarded chartered status. Julie Van Dort, Manager Portfolio Property, was the recipient of the scholarship in 2012 †† Technical Training Program (F2F): Addressing and it provided the opportunity to visit transport priority capability gaps within VicRoads, local agencies in the United Kingdom (UK) and the government and consultants by providing Netherlands as well as study regulation at the technical knowledge and awareness of London School of Economics and Political VicRoads’ latest standards, policies and technical Science (LSE). information. Due to its popularity, VicRoads’ Technical Consulting area increased its course This gave VicRoads an appreciation of the delivery from 46 courses in 2010-11 to 67 growing problems with congestion and funding courses 2011-12, and 91 courses in 2012-13. that the UK and Netherlands face in building and maintaining transport infrastructure, similar to †† Roads Academy: This is a program for the external recognition of capabilities. It involves Victoria’s. The key benefits for VicRoads from sourcing cost effective (neutral) funding from the this work were to better understand: Victorian and Australian Governments, aimed at †† the scale, speed and complexity of change is increasing the skill sets of existing employees. the biggest challenge for government Nineteen members of road services were awarded †† government can be more responsive to change Certificate III in Construction, 22 employees and achieve outcomes by removing, reducing received the Diploma of Project Management and managing risks and a further 20 staff are about to commence the Leader as Coach Program (Certificate IV in †† government can be more innovative by using Frontline Management). All programs are delivered a collective approach to decision making on-the-job with the application of industry †† achieving innovative outcomes and ‘adding competency standards and performance criteria. value’ requires partnerships with the community The approach also requires pre-mapping of †† VicRoads can maximise the value of the road program objectives and competency standards network by seeing the community as active with TeCaP capability inventories, to ensure asset holders, rather than as passive consumers. the best fit with strengthening VicRoads VicRoads is using these principles to reduce costs business capability. and create value in VicRoads property assets to achieve better outcomes for all Victorians.

36 PART TWO DEVELOPING ORGANISATIONAL CAPABILITY AND CULTURE ANNUAL REPORT 2012-13 37 Senior Leader Visits program involves Visits Leader Senior of annual program The visiting Team Leadership our Strategic members of the state, throughout in all business areas staff to engage with employees with a chance providing well as and local issues as and discuss corporate and continuous which may include safety initiatives ideas. improvement Queen’s Birthday Honours in Victorian Queen’s Birthday Public Service Medal and Policy Network – Director Wall Andrew to public service For outstanding Standards. the development network through Victoria’s road program. the SmartRoads of Antonietta Cavallo – Manager Driver Performance. in developing and For outstanding public service Scheme Licensing implementing the Graduated and young drivers. novice for in business Women cent constitutes 35 per staff female VicRoads’ however only 38 per cent its total workforce, of at VRO 4 level or above. This are this figure of in the lower classifications females of concentration females the number of of arises partly as a result and roles working in VRO 2 Customer Service in engineering females low numbers of relatively may women in VicRoads that recognised We roles. their experiences the ability to share benefit from women sharing senior VicRoads and hear from this, two From paths. insights into their career the half of held in the second workshops were in financial year to support women in VicRoads from development and support seeking appropriate This activity builds on their business areas. the as part of commenced work the portfolio in previous initiative Transport’ Leading ‘Women VicRoads on opportunities for years, concentrating supported in striving are staff female that to ensure to be their best. training and workshops have been conducted training and workshops have been conducted a framework of the application to facilitate sponsoring, leading to build capability around to refocus and adapting to change in order and effectiveness on team performance, culture. the desired and processes of development and initiation Our Future the Plan for workshops to ensure the all levels of aligned at objectives are understanding with consistent organisation, how they need to be embedded into of everyday operations. a change framework has been developed and a change framework consistent of the utilisation support for broad has been tools and templates methodology, established. † † † Employee reward and recognition continues to continues and recognition Employee reward corporate VicRoads’ of be an essential component the Extended Service to In 2011, revisions culture. a new element introduced Policy Recognition five years employees reaching for recognition of service. of Awards In 2012, the Outstanding Performer ceremonies With three year. its second commenced individuals recognise these awards held to date, and beyond the have gone above and teams that and demonstrated their role of requirements regular VicRoads’ in an aspect of outstanding performance In 2012-13, and business performance. culture for recognised 11 individuals and 8 teams were their outstanding efforts. Reward and recognition program Reward Strengthening our culture Strengthening our culture we achieve and how our customers The outcomes depends on a high-performing VicRoads experience cultural development projects of A number culture. behaviours that to promote have commenced – culture VicRoads’ of elements key aligned with are accountability customer service, innovation, and teamwork. † † Change capability programs Change capability † Safe and healthy workplaces VicRoads Strategic Leadership Team implemented important initiatives which demonstrate their commitment to health and safety. Health and safety Providing safe workplaces issues now appear first on the agenda for its regular VicRoads’ work health safety and welfare policies corporate meetings, and members of the Strategic and practices aim to ensure that all staff remain safe Leadership Team include health and safety as part of and healthy at work. To build on this commitment, the Senior Leader Visits program across all business the Work Health Safety and Welfare team provides areas of VicRoads. training and expert advice to managers, team leaders and employees on all aspects of health and safety, well-being and injury management, whether at work or not.

WorkCover performance

Table 1. VicRoads’ standard WorkCover performance

2008-09 2009-10 2010-11 2011-12 2012-13 No. of standard claims 38 35 52 47 33 No. of lost time claims 29 26 45 40 24 Fatality claims 0 0 0 0 0

Source – CGU Workers Compensation (Vic) Ltd. Data as at 5/7/2013.

38 PART TWO DEVELOPING ORGANISATIONAL CAPABILITY AND CULTURE ANNUAL REPORT 2012-13 39 12/13 11/12 school holiday programs, providing subsidised providing school holiday programs, each school two weeks during for child care and Sunshine offices holiday period in the Kew (EAP), providing Program Employee Assistance members family employees and their immediate counselling to help confidential to free, access issues. work and family related address influenza vaccinations influenza sessions mental health awareness in subsidised opportunities to participate health activities community health and sponsored awarded groups four wellbeing initiatives Health’ sessions ‘Activate fitness programs Improver’ ‘Biggest 16 work Health checks across Work WorkSafe locations. † † † † † † † † † Staff and their family members are also and their family members are Staff supported with: † † Supporting health and wellbeing Supporting health aims to and wellbeing program health VicRoads’ employees to adopt a healthier lifestyle, encourage and to maximise their or injury, illness to prevent of As part work and personal life. levels for energy health a dedicated maintains VicRoads the program, a variety and wellbeing intranet page which provides to employees. resources of health and wellbeing programs During 2012-13, to employees included: offered † † † † † † † 10/11 Standard claims Standard

09/10 08/09 0 10 30 20 60 50 40

45 completed identification of drug and alcohol of drug and alcohol identification 45 completed impairment training. 1,424 completed online safety awareness training awareness online safety completed 1,424 managers OH&S for 566 completed management procurement 120 completed (six courses) worksite OH&S performance completed 41 training No. of claims of No. † † † † † † † † † † The number of standard Workcover claims reduced claims reduced Workcover standard The number of with 2011-12. in 2012-13 compared by 30 per cent to achieving further committed remains VicRoads injuries and illness, work-related in reductions and targets setting stretch particularly through sound safety aimed at implementing initiatives safety a strong and behaviours through practices culture. employees number of the following In 2012-13, training and Welfare Health Safety Work completed programs: Fig 1. Standard WorkCover claim numbers July 2008 – June 2013 claim numbers July 2008 – June Fig 1. Standard WorkCover PART THREE: CORPORATE GOVERNANCE AND STRUCTURE 03 PART THREE CORPORATE GOVERNANCE AND STRUCTURE ANNUAL REPORT 2012-13 41 Comprises the Leadership Team: Strategic Chief Officer, Chief Financial Chief Executive, Executive Directors and the Officer Operating and Programs, and Planning, Policy Strategy of Enterprises, and Commercial Services Corporate the Chief and Business Development. It supports Corporation’s to deliver the Roads Executive Transport functions, as defined under the it sets and adapts Act. Specifically, Integration objectives and priorities, strategic vision, VicRoads’ complies the organisation while ensuring that in providing processes governance with robust leadership. effective Management Committee: Comprises the the Chief Financial Officer, Chief Operating Policy of Executive Directors and the Officer, Metropolitan Operations, Regional and Programs, and Licensing Registration Operations, Enterprises, and Business and Commercial Development. The Management Committee allocation, overseas development and resource the annual of and monitors the delivery progress the delivery It also monitors Program. VicRoads of VicRoads. and financial performance progress † † † † Governance structure Governance structure to the is accountable Chief Executive VicRoads’ Secretary the through reporting Roads, Minister for Planning and Transport, of the Department of closely with works VicRoads Infrastructure. Local Planning and Local Transport the Department of its policy development that to ensure Infrastructure collaborative, a and planning activities reflect provides VicRoads approach. portfolio-wide Transport to the Department of reports regular on its finances, Infrastructure Planning and Local and outputs, and the Chief capital expenditure Leadership monthly Portfolio attends Executive meetings. Team that and processes structures the key Some of of VicRoads governance to the effective contribute outlined below. are Corporation, which was which Corporation, Statutory framework Transport Integration Integration the Transport of the Roads Corporation the Roads Corporation of VicRoads is the registered registered VicRoads is the Act 2010. The Governor in Act 2010. Act 1983 and continued in Council appoints the Chief Council appoints the Chief for managing the functions for managing the functions Transport established in the Transport business name of the Roads the Roads of business name Executive who is responsible who is responsible Executive Transport Integration Act Integration the Transport consistent with its objective in consistent with its objective †† Project Review Committee: Comprises the †† VicRoads complies with the Code of Conduct for Executive Directors of Policy and Programs, Victorian Public Sector Employees. The code is Strategy and Planning, Regional Operations, explained to new staff in the induction process Metropolitan Operations and the Director, and all new staff must complete an e-learning Technical Services. It oversees VicRoads’ input module on the code. All staff must also complete to internal and external proposals, including e-learning modules on the Victorian Charter of the planning and development of road projects Human Rights, equal opportunity and information and road improvement programs with an privacy every two years. VicRoads has policies estimated cost greater than $10 million; planning and procedures on its intranet which address studies with an estimated cost greater than employment and conduct principles. Topics $3 million; and projects considered to involve include equal opportunity and anti-discrimination; contentious matters. merit-based recruitment and selection; †† Information Management and Technology maintaining a harassment-free work environment; Board: Comprises most Executive Directors and managing poor behaviour; gifts, benefits and ensures the governance and strategic alignment hospitality; and responsible use of the registration of investment decisions regarding VicRoads’ and licensing system. Information Management and Technology †† Risk Committee: Comprises the Chief Finance environment. The last meeting was held in Officer, the Chief Operating Officer, the General October 2012. Counsel, and the Executive General Managers of †† Information Access and Technology Committee: Information Management and Technology, People Comprises the Executive Directors of Corporate Services and Communications, and Stakeholder Services, Strategy and Planning and Policy and Engagement. It assists the Strategic Leadership Programs, Executive General Manager Information Team to identify and manage strategic risks, Management and Technology and external implementing and monitoring risk management representative Chris Gillies. It provides strategic processes and frameworks that anticipate leadership to the organisation in its use and and mitigate risks to VicRoads ability to meet management of information and investment and Government priorities, VicRoads objectives and management of information technology. The community expectations. Information Management and Technology Board †† VicRoads maintains a risk management system was replaced with the Information Access and to systematically identify, manage and minimise Technology Committee in late 2012. risks that are inherent in its day-to-day business †† People Services Committee: Comprises the operations, the delivery of its programs and Chief Operating Officer, the Chief Financial projects and its management of the road network. Officer, the Executive Directors of Corporate †† Audit Committee: Comprises five independent Services, Registration and Licensing, and Regional members (Tony Darvall – Chair, Murray Jones, Operations, and the Executive General Manager, Gregory Larsen, Carol Pagnon and Bob People Services. It reviews, monitors and supports McDonald) and one member from VicRoads corporate culture, ensures the wellbeing and (Peter Mitchem). It assists the Chief Executive ongoing capability of VicRoads’ people and the to fulfil his responsibilities for financial reporting, effectiveness of people related corporate services. internal control, risk management and compliance with laws, regulations and ethics. †† VicRoads outsources its internal audit function to PricewaterhouseCoopers. Internal audit assists management to control risks, monitor compliance with policies and procedures and improve the efficiency and effectiveness of internal control systems. The results of audits are reported to the Audit Committee and VicRoads’ senior management. The Victorian Auditor-General’s Office inspects and audits the financial position of VicRoads and reports annually on the outcome of the audit.

42 PART ONE REPORT ON OPERATIONS ANNUAL REPORT 2012-13 43 43

VicRoads Insurance Insurance VicRoads 2012-13 Attestation the VicRoads has complied Gary Liddle certify that I, Insurance. 4.5.5.1 with the Ministerial Direction Gary Liddle Chief Executive

Gary Liddle VicRoads’ Audit Committee has confirmed this VicRoads’ Audit Committee has confirmed assurance. VicRoads’ risk profile has been critically reviewed reviewed has been critically VicRoads’ risk profile of within the last 12 months. The effectiveness continue VicRoads’ risk management practices will and enhanced. to be reviewed I, Gary Liddle certify that VicRoads has risk Gary Liddle certify that I, place consistent in management processes ISO AS/NZ with the Risk Management Standard system is 31000:2009 and an internal control to understand, enables the executive in place that risk satisfactorily. manage and control VicRoads Risk Management Risk Management VicRoads 2012-13 Attestation Chief Executive Corporate structure Policy and Programs is responsible for: VicRoads has six divisions as shown on the †† the translation of the broad strategic directions organisation chart on page 47. The functions into priority based investment programs and of each division are summarised below. projects Gary Liddle, Chief Executive of VicRoads, was †† developing and implementing effective policies appointed in March 2007 and oversees all functions to improve the operation of the road network and and operations for VicRoads. His role also entails delivery of services national representation in his participation as †† facilitating consistency, capability development board member of Austroads and Chairman of and knowledge sharing in the design, construction the Australian Chapter of the Road Engineering and maintenance of road infrastructure Association of Asia and Australasia (REAAA). †† encouraging the use of sustainable transport modes in assisting customers to take responsibility VicRoads’ divisions for making choices in all aspects of using the road Strategy and Planning is responsible for: network. Robert Freemantle, Executive Director, Policy †† supporting the Strategic Leadership Team to and Programs, was appointed to the role in establish and realise the corporate vision and October 2012. strategic directions as well as adapt it in response to changes in our ‘operating environment’ Commercial Enterprises and Business Development is responsible for: †† identifying and coordinating the functional strategies (i.e. road safety, network & assets and †† identifying commercial and business opportunities environmental) required to achieve objectives which can be embedded across the organisation †† monitoring organisational achievement and †† seeking international business opportunities, performance against the objectives and strategies assessing their benefits, risks and commercial to inform strategic decision making viability for VicRoads †† anticipating, investigating and preparing advice †† providing specialist expertise to the Operations in response to emerging challenges and help set division and competing on the open market for the agenda for the Strategic Leadership Team asset improvement, surfacing and line marking †† establishing a corporate planning cycle that services on the arterial road network supports the organisation to prepare the policies, †† assessing all property holdings for commercial programs and projects necessary for developing use or disposal and operating in accordance with the vision and †† rationalising the property portfolio to ensure strategic direction efficient management and reducing costs †† leading development and implementation of associated with holding properties for future road initiatives, promoting innovation and strong construction customer focus. Fostering and maintaining strong †† providing end to end concept development, relationships with key stakeholders to understand design, manufacturing, marketing and sales for their perspectives and manage expectations at the custom plates business. a strategic level Peter Mitchem, Executive Director, Commercial †† shaping national reform opportunities and reflect Enterprises and Business Development was the future capability needs in the development appointed to the role in October 2012. of our people. David Shelton, Executive Director, Strategy and Corporate Services is responsible for providing core Planning and Road Safety Coordinator, was support functions to our business in order to ensure appointed to the role in October 2012. we effectively deliver for our customers. Jaida Nicholson, Executive Director, Corporate Services, was appointed to the role in October 2012.

44 PART THREE CORPORATE GOVERNANCE AND STRUCTURE ANNUAL REPORT 2012-13 45 managing business operations including facilities, managing business operations and supply fleet management, purchasing reporting, delivering internal and external financial management budget management and forecast banking and cash flow VicRoads’ management of specialised managing business planning, providing to policy interpretation to clients relating advice and financial management conducted monitoring, audit and compliance external audit internally and managed through providers Risk and the organisation’s management of program Assurance and operational including strategic legal services privacy and managing FOI and information advice management and contract procurement contract and including specifications services documentation. payroll services including processing and including processing services payroll records, time and attendance reporting, and the management calculations termination contracts officer executive of policies and developing financial accounting management and a financial procedures framework in line with the Financial Management Act and applicable Australian Accounting Standards including services financial processing debtor receivable, payable, accounts accounts transactions, card management, purchasing and physical asset depreciation asset valuation, stocktakes † † † † † † † † † † † is responsible for: Finance and Risk is responsible Mark Dale, Chief Financial Officer, was appointed to Mark Dale, Chief Financial Officer, in October 2012. the role † † † † † † † † † † † providing ministerial and stakeholder engagement ministerial and stakeholder providing and advice communications strategic through a vast array taking advantage of media relations, and social media channels including traditional of media forms campaigns and brand developing marketing graphic and online management through communications. developing IM&T strategies to improve business business to improve developing IM&T strategies and security. and IM&T governance outcomes providing support services including the services support providing and provision devices infrastructure of provision key for services and support maintenance of business applications and managing delivering IM&T change projects assets IM&T VicRoads workplace relations, including compliance and including compliance relations, workplace enterprise agreements. workplace occupational health and safety health and safety occupational workplace and measures preventive including compliance, post-incident support services development and organisational promoting learning recruitment of our people through a variety a variety through our people of recruitment merit-based selection, channels including of indigenous and program, the graduate policy and human resource diversity programs development † † † † † † † † † Paul Matthews, Executive General Manager, General Manager, Executive Paul Matthews, Engagement, and Stakeholder Communications in June 2013. was appointed to the role Susan Sly, Executive General Manager, Information Information General Manager, Executive Susan Sly, was appointed to the Management and Technology in October 2012. role Engagement is and Stakeholder Communications for: responsible Judith Pettitt, Executive General Manager, People People General Manager, Executive Judith Pettitt, 2012. in October was appointed to the role Services, is Management and Technology Information for: responsible † † † † † † † † It is divided into three sub divisions, as follows: sub divisions, It is divided into three for: is responsible Services People † Operations brings together those parts of the Technical Services is responsible for: business that are interacting with our customers †† providing service support to delivery areas in maintaining and operating the road network on technical aspects of asset condition, and managing access to, and the use of, the project development and verification during road network. implementation Peter Todd was appointed as the Chief Operating †† maintaining technical standards and the technical Officer in May 2013. capability of the organisation The division is divided into a number of sub †† acquiring land reserved for new or upgraded road divisions: and bridge projects. Metropolitan and Rural Operations is Agnelo Duarte, Director Technical Services, was responsible for: appointed to the role in October 2012.

†† planning, developing, delivering and maintaining Registration and Licensing is responsible for: road, roadside and bridge infrastructure †† providing frontline services to our customers to †† monitoring the condition of the network, enable access to and use of the road network identifying gaps and deficiencies within the regulatory framework. †† heavy vehicle enforcement Peter Welling, Executive Director, Registration and †† planning, developing and delivering major Licensing, was appointed to the role in March 2013. transport-related infrastructure. Commercial Roads is responsible for: George Mavroyeni, Executive Director, was †† managing Victoria’s privately operated road appointed to the role in October 2012. contracts Operations Services is responsible for: †† undertaking the administration of relevant Public †† coordinating the delivery of asset and Private Partnerships (PPP) improvement works as defined by the Policy & †† the relationship with private road operators and, Programs division, including prioritising works to some extent, their financiers and contractors. within the specified program as well as monitoring Vanya Kumar, Director, Commercial Roads, was and reporting appointed to the role in August 2010. †† managing and coordinating the delivery of state- wide projects †† actively working with delivery areas to identify the best mechanisms for implementing improvements to processes and practices. Gerry George, Director Operation Services, was appointed to the role in October 2012.

46 ANNUAL REPORT 2012-13 4747

as at September 2013 September as at Director Director R&L Services Director Project Hwy Projects Western Director Project South East Projects Glen Madeira Director Customer Services Barbara Flett Michael McCarthy Charlie Broadhurst Richard Bell Liew Patricia Director Regional North West Metro Adam Macguire Director Regional South East Metro Andrew Williams Director Project Projects Metro Boyd Trevor Director M80 Upgrade Santis De Frank Director Project Eastern Projects Dean Zabrieszach Director Operations Road Chris McNally Director & Standards R&L Practice William Tieppo Director Regional South Western Nevett Ewen Director Regional Western Mal Kersting Director Regional Northern Bryan Sherritt Director Regional North Eastern Sebastian Motta Director Regional Eastern Hedley Tony Director Project Geelong Ring Rd Director Director Services Regulatory

Chart Organisational VicRoads

DIRECTOR DIRECTOR GERRY GEORGE GERRY SERVICES OPERATION BROWN STEVE EXECUTIVE DIRECTOR REGIONAL OPERATIONS DUARTE AGNELO DIRECTOR TECHNICAL SERVICES VACANT DIRECTOR ROADS COMMERCIAL GEORGE GEORGE MAVROYENI EXECUTIVE DIRECTOR METROPOLITAN OPERATIONS WELLING PETER EXECUTIVE DIRECTOR & REGISTRATION LICENSING PETER PETER TODD CHIEF OPERATING OFFICER

Director Strategy Environmental Director Director & Business Services Finance Statewide Director Director Network Programs Executive GM Executive Management & Technology Information Director Director Services Sprayline Road Director Director Use Policy & Road Vehicle Director Business Development Adrian Tofful Vacant Mitchell Wayne Baker Rodd Liz Davenport Bill Darvidis Vacant Vince Punaro Judith Pettitt Susan Sly Paul Matthews Julian Lyngcoln Anita Curnow Helen Murphy James Holgate Andrew Wall Aidan McGann Executive GM Executive Services People Director Risk & Assurance Director Director Management Accounting Director Strategy Safety Road General Counsel Director & Planning Network Strategy Director Strategy Corporate Director Director Accounting Corporate Executive GM Executive & Stakeholder Communications Engagement Director Director & Standards Network Policy

EXECUTIVE DIRECTOR & PROGRAMS POLICY JOHN CUNNINGHAM MARK DALE JAIDA NICHOLSON JAIDA EXECUTIVE DIRECTOR SERVICES CORPORATE ROBERT ROBERT FREEMANTLE DAVID SHELTON DAVID EXECUTIVE DIRECTOR COMMERCIAL ENTERPRISES & BUSINESS DEVELOPMENT EXECUT DIRECTOR DIRECTOR EXECUT & PLANNING STRATEGY SAFETY ROAD COORDINATOR CHIEF FINANCIAL OFFICER

Chief Executive Gary Liddle PART FOUR: MANDATORY DISCLOSURES 04 PART FOUR MANDATORY DISCLOSURES ANNUAL REPORT 2012-13 49 providing three fact sheets on common fact sheets on common three providing transactions in and licensing registration important and useful 16 languages, to provide to CALD customers on common information identity, of transactions – these explain evidence a car and buying and registering of the process steps to get a Victorian driver’s licence learner permit knowledge test the providing in 13 languages, other than English test) licence permit (computer learner providing with interpreters (drive test) applicants and licence 18,500 with approximately upon request, assisted tests undertaken interpreter have similar driver that 27 countries recognising the purpose for and testing standards licence gaining a Victorian driver licence of through services telephone interpreting offering 100 of excess in Contact Centre, VicRoads the languages other than English, through National Service and Interpreting Translating Service. and Translating and Victorian Interpreter women (page 37) young people (page 34) (page 35). indigenous affairs Rules’ Road ‘Common eight providing videos in five languages on informational channel site, to assist YouTube VicRoads’ familiar and motorists in becoming rules road with common comfortable † † † † † † † † † In 2012-13, initiatives to support customers initiatives In 2012-13, and linguistically diverse (CALD) culturally from included: communities † † † † † A more comprehensive outline of VicRoads’ VicRoads’ outline of comprehensive A more is outlined groups the following involvement for the Annual Report: of in Part Two † † † †

Indigenous affairs young people and to the promotion of of to the promotion community areas community VicRoads contributes VicRoads contributes Responsiveness to Responsiveness improved outcomes for outcomes improved cultural diversity, women, cultural diversity, Disability services Freedom of information (FOI) In 2012-13, VicRoads undertook the following FOI decisions activities that supported people with a disability: In 2012-13, VicRoads received 474 FOI requests. †† upgraded 43 sites with audio-tactile pedestrian Decisions were made as follows: push buttons and tactile ground surface indicators (providing safer walking surfaces), to assist people Table 1. with impaired mobility to access the road system and public transport services Access granted in full 154 †† ensured that new works undertaken by VicRoads affecting tram or bus stops and pedestrian Access granted in part 203 crossings result in Disability Discrimination Act Access denied 20 compliant facilities In process 64 †† worked with other Australian jurisdictions and key stakeholders, including the Municipal Association Transferred to another agency 2 of Victoria, and the Departments of Transport, Request withdrawn by applicant 2 Planning and Local Infrastructure, and Human No document exists/No document located 23 Services, to identify options to implement the new Australian Disability Parking Scheme. Dealt with outside FOI 1 Other/No response from applicant 5 Compliance with the Carers Recognition Act 2012 TOTAL 474 VicRoads policies support carers to balance work and their role of carer. Carers leave is specifically VicRoads Officers included in our Enterprise Agreement as are a Principal Officer: number of flexible working conditions to support Gary Liddle, Chief Executive those staff with carers responsibilities. Managers are encouraged to support staff in accessing these How to access documents flexible working policies where possible which may include such arrangements as scheduling regular A request for access to documents under the meetings at a time a carer can attend. Freedom of Information Act must: Clause 76 of our Enterprise Agreement is devoted †† be in writing to the management of carers leave and the policy †† be accompanied by a $25.70 application fee or regarding the right to request flexible work is evidence of hardship (for example, copy of a available on our intranet. social security card, evidence of unemployment, or evidence of receipt of social security payments) †† provide such information as is reasonably necessary to enable the documents to be identified. Freedom of Information requests should be sent to: Ms Franca Chick Manager Freedom of Information and Information Privacy VicRoads Level 5, 60 Denmark Street KEW VIC 3101

50 PART FOUR MANDATORY DISCLOSURES ANNUAL REPORT 2012-13 51 that is available for public use, a statement of that that of public use, a statement is available for that and hours of the address fact including details of room. the library or reading opening of prepared by the agency under this Part for by the agency under this Part for prepared by members of inspection for or publication which a person at the public, and the places material. that may inspect or obtain mailing lists. free or subscription services of to a access for a person when a request document is made to the agency. for the responsible within each agency officers for and action upon, requests of, initial receipt to a document. access committees and other bodies constituted by and other bodies constituted committees or that a part of, are persons, that two or more advising the purpose of have been established for open to and whose meetings are the agency, meetings whose the public, or the minutes of public inspection. available for are There are a number of councils, committees committees councils, a number of are There and stakeholder advice provide that and groups and/or the input to VicRoads and community these included the In 2012–13, Roads. Minister for Freight Victorian Road Advisory Group, Motorcycle Advisory Council, Victorian Bicycle Advisory Council Based Public Transport and the Victorian Road Advisory Council. room If the agency maintains a library or reading 8. is available that area maintains a reading VicRoads an make public use by appointment. To for Victorian Government appointment, contact 2231 telephone (03) 9854 Library Services, or email [email protected]. 3. A statement of the material that has been that the material of A statement 3. on its information a range of publishes VicRoads to the information and access website. For advice Victoria Government Bookshop, telephone contact 1300 366 356 or email [email protected]. available by way listing the literature A statement 4. website. on VicRoads’ is provided This information mailing and free on subscription services For advice the Victoria Government Bookshop,lists, contact telephone 1300 366 356 or email [email protected]. by followed to be the procedure of A statement 5. on page 50. is provided This information or the officer by name designating A statement 6. on page 50. is provided This information councils, listing all boards, A statement 7. strategic planning strategic and services technical information management. traffic property and land management property and licensing registration asset maintenance road network improvement road management safety road planning statutory government relations management human resource management and systems information legal health and safety occupational contract management contract governance corporate management emergency management environmental equipment and plant financial management commercial operations commercial committees relationships and stakeholder community organisation and functions of the agency. It must the agency. and functions of organisation as far as practicable, the decision-making indicate, of members powers and other powers affecting involved in those functions – the public who are exists for any arrangement that and particulars of bodies and by, with, or representation consultation persons outside the government administration policy in, or the of to the formulation in relation the agency. of, administration the agency. in the possession of maintained are † † † † † † † † † † † † † † † † † † † † † † † † † † † † † † † † † † † † † † † † † † † † † † VicRoads maintains an extensive filing system VicRoads categories: based on the following This information is located throughout this throughout is located This information VicRoads’ document and in particular in the ‘About Governance’ section on pages 6 to 7 and ‘Corporate to 47. section on pages 41 documents that of the categories of 2. A statement Published information Act Information of the Freedom Section 7 1(a) of to be published: information certain requires the setting out particulars of 1. A statement Compliance with the Building Act 1993 Implementation of the Victorian Industry VicRoads complies with the Minister for Finance Participation Policy (VIPP) Guidelines on the Standards for Publicly Owned Buildings and the building and maintenance Contracts commenced provisions of the Building Act 1993. During 2012-13, VicRoads commenced 42 contracts with a total value of $411.7 million to which the VIPP All new work and redevelopment of existing applied. There were 9 metropolitan contracts valued properties is carried out in accordance with the at $321.7 million and 33 regional contracts valued at Building Act 1993, relevant building regulations $90.0 million. and other statutory requirements either under the direction of VicRoads or the management of The commitments by contractors under VIPP the Department of Treasury and Finance, included an overall level of local content of Shared Service Provider. 97 per cent of the total value of the contracts. Approximately 840 full time equivalent jobs were VicRoads engages the Department of Treasury and involved in these works. Of these jobs, over 180 Finance, Shared Service Provider to ensure that the were newly created. The works also involved 47 buildings under its management are compliant approximately 60 apprentices/traineeships of which with legislation and policy and are maintained over 15 were created as a direct result of the award in a safe and serviceable condition. For all other of these contracts. buildings, VicRoads has internal mechanisms and programs in place which include routine and adhoc Benefits to the Victorian economy in terms of building inspections and annual maintenance increases in skills and technology transfer include: programs based on various audits of: †† training in specialist areas such as contract †† building standard and condition management, risk management and concrete mix design †† hazardous materials, including asbestos †† improved safe work practices. †† essential services †† storm water and trade waste systems. Contracts completed Compliance with competitive neutrality During 2012–13, VicRoads completed 48 contracts with a total value of $1,057.1 million to which the VicRoads’ commercial business activities comply VIPP applied. There were 16 metropolitan contracts with the requirements of the policy statements valued at $856.9 million and 32 regional contracts Competitive Neutrality: A Statement of Victorian valued at $200.2 million. Government Policy, Victorian Government Timetable for the Review of Legislative Restrictions The outcomes reported by contractors under VIPP on Competition and any subsequent reforms. included an overall level of local content of 97 per cent of the total value of the contracts and the creation of more than 100 full time equivalent jobs and 15 apprenticeships/traineeships. Benefits to the Victorian economy in terms of increases in skills and technology transfer included:

†† safer and more efficient construction techniques †† improved traffic management practices †† training of next generation construction managers and field staff.

52 PART FOUR MANDATORY DISCLOSURES ANNUAL REPORT 2012-13 53 1 1 1 1 5 3 2 0 0 0 0 1 2012-13 2012-13 2 6 0 0 0 0 0 0 0 2011-12 N/A 2011-12 Protected Disclosure Act 2012, Act 2012, Disclosure Pursuant to the Protected can either receive is not an entity that VicRoads Disclosures disclosures. or notify protected or detrimental action by conduct improper of made directly or its employees must be VicRoads Anti-corruption to the Independent Broad-based Commission Victoria (IBAC). making disclosures for procedures VicRoads’ Act 2012 Disclosure pursuant to the Protected website. VicRoads’ available on are Disclosed matters referred during the year by VicRoads to the Ombudsman to during the year by VicRoads referred Disclosed matters investigate VicRoads over by the Ombudsman from taken disclosed matters of Investigations during the year during the year has declined to investigate VicRoads that Matters by the Ombudsman currently to VicRoads referred Disclosed matters under investigation on investigation substantiated were that Disclosed matters relate the Ombudsman under the Act that of Recommendations to VicRoads Disclosures referred during the year by VicRoads to the Ombudsman for to the Ombudsman for during the year by VicRoads referred Disclosures disclosures public interest are as to whether they determinations during the year by the Ombudsman to VicRoads referred Disclosed matters Disclosures made to VicRoads during the year made to VicRoads Disclosures The number of disclosures made by an individual to VicRoads and to VicRoads made by an individual disclosures The number of 10 February – 30 June 2013 from notified to IBAC for assessment prior to VicRoads receiving advice from IBAC IBAC from advice receiving assessment prior to VicRoads for receive can is not an entity that VicRoads that confirming disclosures. or notify protected The matter listed in the table above was notified to IBAC listed in the table above was notified to IBAC The matter 1 Table 3. Disclosures under the former Whistleblowers Protection Act 2001 Disclosures 3. Table Table 2. Disclosures under the Protected Disclosure Act 2012 2. Disclosures Table 2013) (those made from 10 February VicRoads’ report pursuant to Section 104 of the pursuant to Section 104 of report VicRoads’ Act 2001 and Section Whistleblowers Protection the Act 2012 for Disclosure the Protected 69 of 1 July 2012 to 30 June 2013 is outlined in Year the tables below. Whistleblowers Protection the On 10 February 2013, Disclosure by the Protected Act 2001 was replaced Act 2012. Whistleblowers Protection Act 2001/ Protected Disclosure Act 2012 Disclosure of major contracts Disclosure of major provided are contracts all VicRoads’ Details of details include full These vicroads.vic.gov.au. at than more valued at contracts of disclosure $10 million. Advertising Expenditure There were two government advertising campaigns with total media buy in excess of $150,000. The details are listed in the table below.

Table 4.

NAME OF CAMPAIGN SUMMARY START/END ADVERTISING CREATIVE AND RESEARCH PRINT OTHER CAMPAIGN DATE (MEDIA) CAMPAIGN AND AND CAMPAIGN EXPENDITURE DEVELOPMENT EVALUATION COLLATERAL EXPENDITURE 2012-13 EXPENDITURE EXPENDITURE EXPENDITURE 2012-13 (EXCLUDING 2012-13 2012-13 2012-13 (EXCLUDING GST) (EXCLUDING (EXCLUDING (EXCLUDING GST) GST) GST) GST)

Outdoor To promote the existing $177,497.33 range of custom plates (+$37,650 in one integrated install) advertising strategy. Magazine The campaign $47,722.61 Custom objectives were to Dec 2012 – Radio Plates. Less raise brand awareness $115,000 $7,000 $0 $0 June 2013 $33,324.41 ordinary of the breadth of custom plates available, Online generate sales of all $52,792.80 custom plates and build awareness of vplates.com.au Total $348,987.15

This campaign aimed Radio to raise awareness $69,982 of major road layout Print $147,311 changes and educate drivers about what Online M80 they could expect Sep 2012 – $27,493 Driving the $82,494 $28,460 $0 $24,555 on the new M80 March 2013 Ring Road Ring Road. Changes were communicated through driver simulations and online journey planners. Total $244,786

54 PART FOUR MANDATORY DISCLOSURES ANNUAL REPORT 2012-13 55

$0 $0 $0 2012-13 EXPENDITURE $0$0 $20,000 $64,545 2011-12 EXPENDITURE FEES TOTAL TOTAL DESIGNATED ROAD PROJECT (LOCATION) PROJECT ROAD DESIGNATED $25,000 $93,000 $235,000 $235,000 $923,000 $738,360 PROJECT PROJECT APPROVED perform the functions and exercise the powers of the powers of and exercise the functions perform authority and the responsible road the coordinating roads and of specified sections authority for road about time. For further information periods of to including references these Ministerial Directions, Government published in the Victoria the notices Public of Register to the VicRoads’ refer Gazette, vicroads.vic.gov.au. which is available at Roads Dingley Arterial (Springvale Road to Perry Road) Project Road) to Perry Dingley Arterial (Springvale Road 1/02/2013 END DATE 17/09/2010 START DATE START Advisory services to VicRoads in to VicRoads Advisory services the model for the operating relation business custom plate Planning support for VicRoads Plan for Plan for VicRoads Planning support for program the Future Corporate system replacement project system replacement Corporate Management & Technology Information $301,084 2011-12 Review Functional $301,084 commercialisation Feasibility study for options within VicRoads Minister for Minister for and Ports Roads MINISTER Ernst & Young The Lonsdale The Lonsdale Group CONSULTANT PROJECT Deloitte Touche Deloitte Touche Tohmatsu Cap Gemini Ernst & Young Compliance with s22 of the Road Compliance with s22 of the Road Management Act 2004 Table 6. Table VicRoads must publish in its annual report a must publish in its annual report VicRoads given under Ministerial Directions summary of Act 2004. the Road Management Section 22 of in were that 6 shows Ministerial Directions Table to was directed VicRoads during 2012-13. effect Table 5. Table Consultancies Consultancies excess valued in two consultancies were There were There shown in the table below. as $10,000 of less than $10,000. with a value of no consultancies Workforce data Table 7. (a)

EMPLOYEE NUMBERS BY YEAR (HEAD COUNT)

2012-13 2011-12 2010-11 2009-10 2008-09 2007-08 2,622 2,994 3,184 3,212 3,171 2,831 Table 7. (b)

JUNE 2012 – JUNE 2013 ALL EMPLOYEES ONGOING FIXED TERM

NUMBER FULL TIME PART TIME FTE FTE (HEAD COUNT) (HEAD COUNT) (HEAD COUNT) 30 June 2013 2,622 2,340 282 2,510.7 9.0 30 June 2012 2,994 2,666 328 2,852.2 19.8 Table 7. (c)

EMPLOYEES BY GENDER, AGE & CLASSIFICATION JUNE 2013 JUNE 2012

ALL ONGOING FIXED ALL FIXED ONGOING EMPLOYEES TERM EMPLOYEES TERM NUMBER NUMBER (HEAD FTE FTE (HEAD FTE FTE COUNT) COUNT) GENDER Female 961 872.5 4.0 Female 1,077 967.2 8.8 Male 1,652 1,638.2 5.0 Male 1,917 1,885.0 11.0 TOTAL 2,613 2,510.7 9.0 TOTAL 2,994 2,852.2 19.8 AGE Under 25 64 62.8 1.0 Under 25 121 114.4 3.0 25-34 662 639.8 2.0 25-34 719 687.9 3.0 35-44 617 577.3 5.0 35-44 652 599.1 8.0 45-54 724 699.6 1.0 45-54 819 786.5 4.8 55-64 497 486.9 0.0 55-64 598 584.3 1.0 Over 64 49 44.3 0.0 65 & Over 85 80.0 TOTAL 2,613 2,510.7 9.0 TOTAL 2,994 2,852.2 19.8 CLASSIFICATION CLASSIFICATION VR01 12 11.0 1.0 VRO1 24 19.7 2.0 VR02 640 590.7 0.0 VRO2 710 651.2 1.7 VR03 650 636.7 0.0 VRO3 727 705.7 3.6 VR04 697 676.8 2.0 VRO4 814 786.9 4.0 VR05 380 366.9 4.0 VRO5 461 438.9 5.5 VR06 153 147.6 2.0 VRO6 174 166.8 2.0 STS 16 16.0 0.0 STS 18 17.0 1.0 Executives 65 65.0 0.0 Executives 66 66.0 0.0 TOTAL 2,613 2,510.7 9.0 TOTAL 2,994 2,852.2 19.8

Notes: All figures reflect employment levels as at 30 June of each year.

Ongoing employees means people engaged on an open ended contract of employment and executives engaged on a standard executive contract who were active in the last full pay period of June.

FTE means full-time staff equivalent.

Excluded are those on leave without pay, external contractors/consultants, temporary staff employed by employment agencies.

56 PART FOUR MANDATORY DISCLOSURES ANNUAL REPORT 2012-13 57 continuing to utilise video conferencing facilities to utilise video conferencing continuing meetings. These to face face as a substitute for mainly used by the VicRoads facilities were the State across located offices regional staff and reward to track performance continuing travel goals using the achieving sustainable for Travel Green program, software eligible under are that offsets carbon purchasing for domestic Carbon Offset Standard the National in 2012-13. air travel undertaken and international limiting paper options purchased from from purchased limiting paper options meet minimum to provider, our stationary including a minimum of standards environmental sustainable forestry content, recycled 50 per cent has and Australian made. This initiative certified paper (0-50 per cent) content seen low recycled to 8 per per cent 41 approximately from reduce This small paper purchased. all office of cent paper is content low recycled of percentage is not currently which paper, mostly coloured option content available in a recycled fleet of to apply internal charging continuing gas ratings. vehicles based on the greenhouse efficient vehicles being more This has promoted passenger fleet the operational across purchased † † † † † † † † VicRoads has implemented a number of initiatives initiatives of has implemented a number VicRoads office-based our during the year to reduce to in relation impacts, particularly environmental These include: categories. paper and transportation † † Office based environmental impacts Office based environmental office- on aspects of voluntarily reports VicRoads in the defined performance based environmental Environmental Office-Based of Reporting FRD24C 8. in Table Impacts and shown an online implemented VicRoads Recently management system which data environmental the reporting and automate aims to streamline As such, the historical under FRD24C. data of when 1 has changed outlined in Table data and is a more annual reports to previous compared office-based VicRoads’ of representation complete in the that impacts. It is anticipated environmental tracking will also be utilised for the system future, performance. environmental operational VicRoads’ water and energy the office-based In 2012-13, on a total, per square have increased indicators basis equivalent (FTE) staff and full-time metre The year. to the previous when compared per FTE and water in energy significant increase restructure to the organisational can be attributed in the same in less staff which has resulted VicRoads forward, Going offices. number of with locations will be looking to align office structure. the new organisational Table 8. Office based environmental indicator

INDICATOR ENERGY UNIT 2010-11 2011-12 2012-13 E1 Total Energy Usage Gigajoules 45,248 43,765 44,766 (including GreenPower) E2 Greenhouse Gas Emissions Tonnes CO -e 11,454 13,067 13,696 associated with energy use1 2 E3 Percentage of electricity purchased as % of total 25 0 1 GreenPower2 consumption E4 Units of office energy used per FTE Megajoules / FTE 13,538 13,400 17,432 E5 Units of office energy used per unit Megajoules / m2 902 873 893 office space3 WASTE4 UNIT 2010-11 2011-12 2012-13 Ws1 Total units of waste disposed of to: Landfill N/A 101,887 100,449 Kilograms Recycling N/A 67,885 68,484 Compost N/A 16,177 18,522 Ws2 Units of office waste disposed of per FTE by: Landfill Kilograms / FTE N/A 31.2 39.1 Recycling N/A 20.8 26.7 Compost N/A 5.0 7.2 Ws3 Recycling rate % of total waste N/A 45 46 Ws4 Greenhouse Gas Emissions Tonnes CO -e N/A 116 115 associated with waste disposal 2 PAPER UNIT 2010-11 2011-12 2012-13 P1 Total units of A4 equivalent copy Reams 37,971 36,086 31,863 paper used P2 Units of A4 equivalent copy paper Reams / FTE 11.4 11.0 12.4 used per FTE P3 Percentage of recycled content of copy paper purchased:

0-50% recycled content % Recycled 8.4 40.8 7.5 content 50-75% recycled content 78.4 45.6 56.0

75-100% recycled content 13.2 13.6 36.5

WATER UNIT 2010-11 2011-12 2012-13 W1 Total units of metered water Kilolitres 22,103 25,765 27,410 consumption W2 Units of water consumed in offices Litres / FTE 6,613 7,889 10,674 per FTE W3 Units of metered water consumed in Litres / m2 441 514 547 offices per unit of office space3

58 PART FOUR MANDATORY DISCLOSURES ANNUAL REPORT 2012-13 59

115

560 2012-13

8 710 472 560 N/A N/A N/A N/AN/A 116 472 0.23 0.23 0.23 11,454 13,067 13,696 13,455 12,777 9,940 13,455 12,777 9,940 2010-11 2011-12 2012-13 2010-11 2011-12 2 2 2 2 2 2 2 three financial years. three purchased to cover the increase in greenhouse gas in greenhouse the increase to cover purchased methodology. in calculation a correction emissions from An additional 24 tonnes worth of carbon offsets were were carbon offsets tonnes worth of An additional 24 A Travel Smart Survey has not been conducted over the last Smart Survey has not been conducted A Travel incidents are defined as levels 4 and 5. defined as levels 4 and incidents are incidents have been level 4 environmental Two over the past 12 months. These incidents reported a potential site of of involved the disturbance andAboriginal cultural heritage significance result as a vegetation damage to significant native weed management activities. To roadside of again, occurring these incidents minimise the risk of environmental the projects’ has reviewed VicRoads to and on site controls management processes these heritage and of the ongoing protection ensure has also conducted values. VicRoads environmental environmental personnel regarding further training of and sensitivities. and heritage requirements 7 8 Environmental incidents indicators, performance key of Following a review incidents will be only significant environmental all incidents of a breakdown of in place reported by level and type. Significant environmental Tonnes COTonnes -e Tonnes COTonnes -e COTonnes -e Kilometres 2,881,905 1,942,411 2,282,072 COTonnes -e Kilometres 19,432,949 18,096,831 COTonnes 15,629,285 -e total % of employees Tonnes COTonnes -e /1,000km UNIT UNIT

7 5 6 attendance days) using public transport, days) using public attendance cycling, walking or car pooling to and from home by locality type work or working from type Total travel associated with vehicles travel associated Total vehicle fleet waste disposal purchased emission offsets gas Greenhouse CO Tonnes -e Total greenhouse gas emissions from gas emissions from greenhouse Total air travel Greenhouse gas emissions from vehicle fleet emissions from gas Greenhouse per 1,000km GREENHOUSE GAS EMISSIONS TRANSPORTATION associated with office energy use energy with office associated Total energy consumption by vehicles consumption energy Total Gigajoules 199,287 187,448 145,085 This indicator is reported based on a Fringe Benefits Tax year Benefits based on a Fringe is reported This indicator Data includes approximately 84 per cent of VicRoads’ sites. VicRoads’ of 84 per cent includes approximately Data In 2010-11, VicRoads purchased an average of 12 per cent 12 per cent an average of purchased In 2010-11, VicRoads Data includes approximately 90 per cent of VicRoads sites. VicRoads of 90 per cent includes approximately Data Kilometres travelled are reported based on a Fringe Benefits based on a Fringe reported travelled are Kilometres T6 work (>75% of Employees regularly T3 gas emissions by vehicle greenhouse Total T2 G2 gas emissions from greenhouse Total G4 gas emissions with greenhouse Total G5 G3 T4 T5 by air travel distance Total G1 gas emissions greenhouse Total T1 It excludes depots. It excludes GreenPower and the Department of Environment and Environment Department of and the GreenPower GreenPower 13 per cent Primary Industries (DEPI) purchased In 2011-12, the default GreenPower behalf. on VicRoads’ have been electricity contracts VicRoads across purchases to 0 per cent. decreased Tax year (April – March). Tax It excludes project offices and depots. 2010-11 data has not and depots. 2010-11 offices project It excludes collection of data method due to a different been reported comparable. not directly with results GreenPower was not subtracted from the calculation the calculation subtracted from was not GreenPower gas emissions used to determine the total greenhouse in line with the Whole of use. This year, energy from GreenPower Guidance, Victorian Government FRD 24C in lower total resulting the calculation, was subtracted from to last year’s gas emissions when compared greenhouse Annual Report. (April – March). Due to a proportion of the vehicle fleet not of Due to a proportion (April – March). is calculated travelled, this indicator the kilometres reporting only vehicles that gas emissions from by using greenhouse travelled. kilometres accurate report In last year’s Annual Report, electricity purchased as electricity purchased In last year’s Annual Report, 6 5 3 4 2 1 PART FIVE: FINANCIAL MANAGEMENT 05 PART FIVE FINANCIAL MANAGEMENT ANNUAL REPORT 2012-13 61 1.1 8.1 2.2 6.0 (7.4) (5.2) (0.3) 327.4 (31.5) (21.6) (41.8) (64.4) 243.6 (22.6) (22.6) (22.6) 236.2 (20.2) (486.1) (508.4) (485.8) inc/(Dec) inc/(Dec) $m change $m change 7.8 $m $m 27.9 99.7 36.8 44.9 2012 2012 491.7 419.3 152.8 918.5 873.6 346.4 499.5 1,521.6 1,521.6 3,458.1 1,232.3 2,013.3 2,440.1 44,717.3 45,136.6 7.5 5.9 $m $m 13.4 23.3 29.0 44.9 2013 2013 147.6 411.9 105.7 876.7 853.4 348.6 2,375.7 1,499.0 1,499.0 3,785.5 1,504.9 1,200.8 45,372.8 44,960.9 AS AT 30 JUNE AS AT FINANCIAL POSITION YEAR ENDED 30 JUNE FINANCIAL PERFORMANCE Total liabilities Total LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT THE VICTORIAN Total assets Total INCOME ADMINISTERED ON BEHALF INCOME GOVERNMENT OF THE VICTORIAN TOTAL EXPENDITURE TOTAL ON BEHALF OF THE VICTORIAN COLLECTED INCOME AGENCIES GOVERNMENT AND OTHER GOVERNMENT Other assets CAPITAL WORKS EXPENDITURE WORKS CAPITAL assets Infrastructure Network and Asset Planning Expenses from Transactions Income from Transactions from Income Financial Management Financial Management Financial Results 1. Key Table Total liabilities Total NET ASSETS Road Safety Road Expenses from Transactions Expenses from Registration and Licensing Registration Other Services NET RESULT FROM TRANSACTIONS NET RESULT Result Flows included in Net Other Economic NET RESULT Financial Overview The Victorian Government receives funding for improvements to and maintenance of the National VicRoads’ total expenditure was $2.4 billion in Land Transport Network under the Federal Nation 2012-13, $64.4 million less than the previous year. Building Program (National Land Transport) Act This expenditure comprised $1.5 billion in expenses 2009 and the Federal Interstate Road Transport Act from transactions and $0.9 billion in capital works 1985. This funding is forwarded to VicRoads as a expenditure. grant to meet expenditure commitments. The total expenditure for 2012-13 comprised Victorian Government grants of Federal funding $1.8 billion in delivering outputs and $0.6 billion to VicRoads in 2012-13 totalled $371.8 million, relating to the expensing of assets recognised a decrease of $340.5 million compared to the as outputs in previous years. previous year. The reduction in funding was The value of road infrastructure and other assets principally due to the completion of major managed by VicRoads increased by $0.2 billion construction projects including the Goulburn Valley to $45.4 billion during 2012-13, while total liabilities Highway – Nagambie Bypass and Geelong Ring decreased by $7.4 million to $411.9 million. These Road section 4B, and the timing of Federal funding movements in assets and liabilities resulted in a on joint Federal/State funded construction projects growth in net assets of $0.2 billion to $45.0 billion under the Nation Building Program. as at 30 June 2013. In 2012-13, VicRoads was provided with Victorian Government output and asset appropriation grants Financial Performance of $324.9 million, a decrease of $12.8 million on VicRoads recorded a net result surplus of $13.4 the previous year. million in 2012-13 compared with a net surplus of The Victorian Government’s Better Roads Victoria $499.5 million in the previous year. The decrease Trust Account was established under the Business in surplus was principally due to reduced funding Franchise (Protection Products) Act 1979. The Act received for capital expenditure, expenditure relating originally required a State levy on petrol and diesel to revenue recognised in previous years, a reduction fuel sales to be utilised to fund construction and in the value of assets received free of charge, maintenance of roads. Following the abolition of this and increased depreciation expense following levy in August 1997, the Victorian Government has the revaluation of assets as at 30 June 2012. The continued to make equivalent payments to the Trust reduced revenue funding for capital expenditure was Account, together with an indexed $17 per motor partly offset by a higher level of capital contributions vehicle registration applicable from 1 July 2003. by the State Government. The funding of projects from the Better Roads The 2012-13 net result surplus was achieved after Victoria Trust Account contributes to Victoria’s recognising as revenue $677.7 million to fund economic development through reduced transport capital works expenditure, $12.9 million as assets costs and increased efficiency of arterial roads. received free of charge, and $1.3 million arising Two thirds of funding from the Trust Account is from asset register adjustments. These revenue directed to metropolitan roads projects and one items were partly offset by the expensing of assets third to rural road projects. Since the Better Roads which were funded by revenue from Governments Victoria Trust Account was established in 1993, Grants in previous years, via depreciation, disposal or 2,101 road infrastructure projects (comprising 462 divestment, totalling $638.6 million, and a decrease projects in the metropolitan area and 1,639 in in working capital of $39.9 million. regional Victoria) valued at more than $5.3 billion have been approved. The Better Roads Victoria Trust Funding Sources Account provided funding for road construction and VicRoads’ funding is derived from the Victorian maintenance projects of $310.6 million in 2012-13, Government annual budget, program funding an increase of $67.2 million on the previous year. from the Transport Accident Commission, revenue This is primarily due to the timing of expenditure on from regulatory fees and fee-for-service charges. joint Federal/State funded projects. Funding for operating outputs and capital works from all sources totalled $1.7 billion during 2012-13, a decrease of $286.3 million on the previous year.

62 PART FIVE FINANCIAL MANAGEMENT ANNUAL REPORT 2012-13 63 VicRoads administers the collection of certain certain of the collection administers VicRoads the and duties on behalf of licences fees, Government Victorian Government, various State of agencies, and the Commonwealth Department These amounts and Transport. Infrastructure but are income VicRoads’ as not recognised are paid to the Victorian Government’s Consolidated or other government agencies. During Fund the Victorian on behalf of collections 2012-13, Government and other government agencies billion with $3.5 billion compared totalled $3.8 year. the previous Melbourne CityLink revenue, of manages the administration VicRoads assets and liabilities arising from expenditure, the Melbourne CityLink Act 1995 on behalf of not the Victorian Government. These items are expenditure, revenue, as VicRoads’ recognised assets or liabilities. notes and related the concession Details of 1(r)(ii) - ‘Private disclosed in Note are revenues and Note 25 - Public Infrastructure’ of Provision the on behalf of administered ‘Transactions Victorian Government’. Financial Position by non-financial assets increased VicRoads’ billion during 2012-13. billion to $45.0 $0.3 asset construction from resulted This increase by billion, partially offset $0.9 and acquisitions of billion. assets amounting to $0.5 of the depreciation million by $43.7 assets decreased financial VicRoads’ liabilities million during 2012-13 and total to $392.0 million during $411.9 million to $7.4 by decreased the year. net the above changes, VicRoads’ of As a result billion billion to $45.0 by $0.2 assets increased 30 June 2013. as at Income Collected on Behalf of the Victorian Government and other Government Agencies During 2012-13 VicRoads utilised cash funds During 2012-13 VicRoads the Victorian Government, from received from and proceeds revenue of collections billion to fund asset disposals totalling $1.9 billion and activities totalling $1.0 operating billion. capital works activities totalling $0.9 Cash Flows VicRoads undertook asset construction works asset construction undertook VicRoads million during and acquisitions totalling $876.7 million from $41.8 of a decrease 2012-13, significant capital Details of year. the previous during 2012-13 are undertaken works projects which refers outlined in the section in this report system to improve the road to the ‘Develop important are that between places connections to customers’ objective, see page 15. Capital Works Expenditure Capital Works From 1 July 2005, revenue raised from traffic traffic raised from revenue 1 July 2005, From spot speeding fines has also cameras and on the Trust Victoria Roads been paid into the Better and construction and utilised to fund road Account and transport traffic and safety, road maintenance, traffic received VicRoads programs. integration million of $343.4 camera and speeding fine funding during 2012-13. fees, regulatory from revenue generated VicRoads totalling and other revenue charges, service for fee million $14.6 of a decrease million in 2012-13, $257.5 due is primarily This decrease year. on the previous flood for recovery insurance to higher levels of works in 2011-12. restoration provides Commission Accident The Transport infrastructure safety road of a range funding for During initiatives. safety and motorcycle projects million, 2012-13 this funding amounted to $82.8 year. million on the previous $19.0 of a decrease Table 2. Five year financial summary 2013 2012 2011 2010 2009 YEAR ENDED 30 JUNE $m $m $m $m $m

FINANCIAL PERFORMANCE Income from transactions 1,504.9 2,013.3 1,709.2 1,694.8 1,414.7 Expenses from transactions 1,499.0 1,521.6 1,496.2 1,420.3 1,381.2 NET RESULT FROM TRANSACTIONS 5.9 491.7 213.0 274.5 33.5 Other Economic Flows Included in Net Result 7.5 7.8 11.9 (3.1) 0.7 NET RESULT 13.4 499.5 224.9 271.4 34.2 Net change in asset revaluation reserve (28.3) 2,282.5 (49.5) 3,472.7 - COMPREHENSIVE RESULT (14.9) 2,782.0 175.4 3,744.1 34.2

CASH FLOWS Cash flows from operating activities 640.3 801.4 706.9 637.9 486.3 Cash flows used in investing activities (836.7) (884.2) (1,023.2) (1,086.3) (924.1) Cash flows from financing activities 198.9 82.0 318.0 448.4 422.0 NET INCREASE/(DECREASE) IN CASH HELD 2.5 (0.8) 1.7 - (15.8)

CAPITAL WORKS TOTAL EXPENDITURE 876.7 918.5 1,045.4 1,099.0 908.5

FUNDING SOURCES State Government Funding derived from the Federal Government Construction 283.4 627.1 400.2 426.4 215.9 Asset Maintenance and minor works 49.9 51.0 50.7 48.4 58.7 Federal Interstate Road Transport Scheme 21.0 21.6 19.7 16.3 13.4 National Blackspot program 17.0 11.7 13.6 44.5 11.4 Other 0.5 0.9 2.0 1.0 0.0 TOTAL FEDERAL GOVERNMENT FUNDING 371.8 712.3 486.2 536.6 299.4

State Government Outputs appropriations 126.0 255.7 251.8 236.6 191.4 Contributed capital appropriations 198.9 82.0 307.7 433.9 439.5 Better Roads Victoria Trust Account 654.0 553.4 610.7 571.9 569.6 TOTAL STATE GOVERNMENT FUNDING 978.9 891.1 1,170.2 1,242.4 1,200.5 Transport Accident Commission Program Funding 82.8 101.8 112.9 104.6 126.7 VicRoads generated revenue 257.5 272.1 247.4 233.7 227.1 TOTAL FUNDING 1,691.0 1,977.3 2,016.7 2,117.3 1,853.7

INCOME COLLECTED ON BEHALF OF THE VICTORIAN GOVERNMENT AND OTHER GOVERNMENT AGENCIES Transport Accident Commission fees 1,797.1 1,705.9 1,628.9 1,559.7 1,466.7 Motor vehicle registration 1,160.9 994.7 912.9 853.6 801.9 Stamp Duty 633.7 581.2 576.0 568.8 512.5 Driver licences 78.1 67.9 52.5 34.9 34.1 Federal Interstate Road Transport Scheme registrations 42.8 42.6 41.9 33.1 27.4 Other 72.8 65.7 71.2 58.5 53.8 TOTAL INCOME 3,785.4 3,458.0 3,283.4 3,108.6 2,896.4

64 INCOME ADMINISTERED ON BEHALF OF THE VICTORIAN GOVERNMENT 29.0 27.9 27.4 27.8 39.1 PART FIVE FINANCIAL MANAGEMENT ANNUAL REPORT 2012-13 65 $m 59.7 331.2 2009 373.3 (271.5) 7,594.4 14,627.7 37,715.9 15,120.5 37,342.6 37,342.6 0.0 $m 2010 422.2 336.9 (336.9) 11,067.1 Asset Management Depreciation Infrastructure Network Planning and Improvements Road Safety and Licensing Registration Other Services 15,391.8 15,025.6 41,484.5 41,484.5 41,906.7 0.0 $m 2011 437.1 341.2 (341.2) State Government Funding # Government Funding State Federal Government Funding Other Revenue 32% 11,017.6

15,322.1 15,616.8 41,956.5 41,956.5 42,393.6 0.0 $m 3% 2012 419.3 346.4 (346.4) 36% 16,116.1 44,717.3 44,717.3 10% 15,301.0 45,136.6 13,300.2 2012-13 7% 0.0 $m 12% 2013 411.9 348.6 (348.6) 13,271.9 16,129.5 15,559.5 45,372.8 44,960.9 44,960.9 Graph 2. Operating output expenditure Graph 2. Operating 2012-13 ($ million) 2011-12 2010-11 Victorian Government Federal Government Regulatory and Other Revenue Accident Commission Transport Better Roads Victoria Trust 2009-10 39% 5% 19% 2008-09 15% 0 22% 200 600 400 800 Accumulated surplus Accumulated NET WORTH Asset revaluation reserve Asset revaluation Contributed capital NET ASSETS NET ASSETS Total liabilities Total Total liabilities Total AS AT 30 JUNE AS AT FINANCIAL POSITION ASSETS AND LIABILITIES ADMINISTERED ON BEHALF OF ASSETS AND LIABILITIES ADMINISTERED GOVERNMENT THE VICTORIAN assets Total Total assets Total 1,200 1,400 1,000 Figure 3. Composition of funding sources ($ million) Figure 3. Graph 1. Funding sources 2012-13 ($ million) sources 2012-13 ($ Graph 1. Funding #Includes funding from Better Roads Victoria Trust Account and Transport Accident Commission Account and Transport Better Roads Victoria Trust #Includes funding from PART SIX: FINANCIAL STATEMENTS 06 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013 ANNUAL REPORT 2012-13 67 2012 $’000 7,841 7,841 16,576 16,576 (8,735) (73,178) (27,513) 101,788 101,788 163,354 163,354 107,848 107,848 (71,804) 118,000 118,000 491,623 491,623 (49,800) 2,355,711 499,464 499,464 (632,027) 1,522,273 1,522,273 (489,688) (250,808) 2,781,997 2,781,997 2,013,263 2,013,263 2,282,533 (1,521,640) - 2013 2,916 2,916 $’000 4,579 4,579 7,495 7,495 5,916 5,916 12,873 12,873 13,411 13,411 82,778 82,778 (73,071) 150,052 150,052 (69,347) 106,566 106,566 (28,350) (14,939) (49,800) (28,350) (251,507) (509,931) (545,356) 1,152,659 1,152,659 1,504,928 1,504,928 (1,499,012) 3 3 3 2 4 4 NOTES Other economic flows included in net result Net gain/(loss) on non-financial assets Assets transferred to other entities Assets transferred from transactions expenses Total TRANSACTIONS FROM NET RESULT BALANCE) (NET OPERATING flows other economic Other gain/(loss) from economic flows included in net result other Total Other economic flows - Other comprehensive income to net result will not be reclassified Items that reserve gain to asset revaluation Revaluation Capital asset charge NET RESULT reserve Impairment loss to asset revaluation economic flows - other Total Other comprehensive income RESULT COMPREHENSIVE Total income from transactions Total Supplies and services Depreciation Grants and other transfers Other revenue Expenses from transactions Employee benefits Continuing operations Income from transactions Victorian Government grants grants Commission Accident Transport revenue Regulatory charge of free Assets received Comprehensive operating statement operating Comprehensive 30 June 2013 For the year ended The comprehensive operating statement should be read in conjunction with the in conjunction should be read statement operating The comprehensive notes to the financial statements. accompanying Balance sheet As at 30 June 2013

2013 2012 NOTES $’000 $’000 Assets Financial assets Cash and cash equivalents 5 45,296 43,400 Receivables 6 346,684 392,325 Total financial assets 391,980 435,725

Non-financial assets Prepayments 4,182 7,646 Inventories 7 1,397 1,465 Properties held for sale 8 16,211 14,922 Buildings and leasehold improvements 9 51,637 51,194 Plant and equipment 10 21,581 23,964 Land 11 17,108,158 17,134,380 Infrastructure assets 12 27,753,364 27,440,297 Intangible assets 13 24,325 27,033 Total non-financial assets 44,980,855 44,700,901 TOTAL ASSETS 45,372,835 45,136,626

Liabilities Payables 14 171,668 224,914 Provisions 15 207,447 158,812 Prepaid revenue 32,821 35,587 TOTAL LIABILITIES 411,936 419,313 NET ASSETS 44,960,899 44,717,313

Equity Contributed capital 15,559,492 15,300,967 Asset revaluation reserve 13,271,870 13,300,220 Accumulated surplus 16,129,537 16,116,126 NET WORTH 44,960,899 44,717,313

Contingent liabilities and contingent assets 20 Commitments for expenditure 21

The balance sheet should be read in conjunction with the accompanying notes to the financial statements.

68 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013 ANNUAL REPORT 2012-13 69 - 2013 2012 1,514 1,514 (407) (430) 5,916 5,916 $’000 $’000 TOTAL TOTAL 60,021 60,021 82,001 82,001 491,623 491,623 198,934 198,934 (20,855) (104,238) 2,290,374 2,290,374 44,717,313 44,717,313 44,717,313 44,717,313 41,956,446 41,956,446 44,960,899 44,960,899 - - - - - 2013 2012 1,514 1,514 (407) (430) $’000 $’000 60,021 60,021 82,001 82,001 198,934 198,934 (104,238) 15,322,097 15,322,097 15,300,967 15,300,967 BY OWNER BY BY OWNER BY 15,559,492 15,559,492 15,300,967 15,300,967 CONTRIBUTIONS CONTRIBUTIONS CONTRIBUTIONS CONTRIBUTIONS ------2013 2012 7,841 7,841 7,495 7,495 5,916 5,916 $’000 $’000 491,623 491,623 SURPLUS SURPLUS 16,116,126 16,116,126 15,616,662 15,616,662 16,116,126 16,116,126 16,129,537 16,129,537 ACCUMULATED ACCUMULATED ACCUMULATED ACCUMULATED ------2013 2012 $’000 $’000 ASSET ASSET (28,350) SURPLUS SURPLUS 2,282,533 2,282,533 11,017,687 11,017,687 13,300,220 13,300,220 13,271,870 13,271,870 13,300,220 13,300,220 REVALUATION REVALUATION REVALUATION REVALUATION 2013 2012 Statement of changes in equity of changes Statement For the year ended 30 June 2013 For the year ended Book value of State assets sold and assets State Book value of the Victorian to returned proceeds Government Other comprehensive income for the year for income Other comprehensive Balance at 1 July 2012 1 July Balance at Capital appropriations Net result from Transactions for the Year for Transactions from Net result Assets transferred from other Victorian from Assets transferred Government agencies Assets transferred to other Victorian Assets transferred Government agencies Balance at 30 June 2013 Balance at Other comprehensive income for the year for income Other comprehensive Balance at 1 July 2011 Balance at Book value of State assets sold and State Book value of to the Victorian returned proceeds Government Net result from Transactions for the Year for Transactions from Net result Capital appropriations Assets transferred from other Victorian from Assets transferred Government agencies Assets transferred to other Victorian to other Victorian Assets transferred Government agencies Balance at 30 June 2012 Balance at The statement of changes in equity should be read in conjunction with in conjunction changes in equity should be read of The statement notes to the financial statements. the accompanying Cash flow statement For the year ended 30 June 2013

2013 2012 NOTES $’000 $’000 Cash flows from operating activities Receipts Receipts from government grants 1,195,757 1,467,823 Receipts from other sources 344,021 384,109 Goods and Services Tax collected 38,277 37,602 Goods and Services Tax recovered from the Australian Taxation Office 113,427 120,415 Interest received 1,387 1,457 Total receipts 1,692,869 2,011,406

Payments Payments to suppliers and employees (781,696) (930,400) Payments of grants and other transfers (69,347) (71,803) Goods and Services Tax paid on purchases (151,704) (158,016) Payments of capital asset charge (49,800) (49,800) Total payments (1,052,547) (1,210,019) NET CASH FLOWS FROM OPERATING ACTIVITIES 24 640,322 801,387

Cash flows from investing activities Payments for purchase of non-financial assets (859,875) (891,031) Proceeds from sale of non-financial assets 23,114 6,866 NET CASH FLOWS USED IN INVESTING ACTIVITIES (836,761) (884,165)

Cash flows from financing activities Proceeds from capital contributions by the Victorian Government 198,934 82,001 NET CASH FLOWS FROM FINANCING ACTIVITIES 198,934 82,001 NET INCREASE/ (DECREASE) IN CASH HELD 2,495 (777) Cash at the beginning of the financial year 3,688 4,465 CASH HELD AT THE END OF THE FINANCIAL YEAR 5 6,183 3,688

The cash flow statement should be read in conjunction with the accompanying notes to the financial statements.

70 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013 ANNUAL REPORT 71 2012-13

ding to whether or gains and losses from disposals gains and losses from non-financial and impairments of revaluations physical and intangible assets and financial instruments. fair value changes of † † † ‘Other economic flows’ are changes arising from from changes arising flows’ are economic ‘Other or loss derived is equivalent to profit The net result (ii) Balance sheet in liquidity order presented Assets and liabilities are and liabilities assets and non current Current (iii) Cash flow statement accor classified Cash flows are of changes in equity (iv) Statement changes in equity presents of The statement Scope and Presentation of Financial Statements of Financial Statements Scope and Presentation Statement (i) Comprehensive Operating operating comprehensive the and expenses in Income defined flows’ are economic and ‘other ‘Transactions’ are flows that those economic are ‘Transactions’ market remeasurements. They include: remeasurements. market into financial assets and with assets aggregated non-financial assets. investing, or financing operating, not they arise from consistent with is activities. This classification of Statement under AASB 107 requirements Cash Flows. non owner and owner changes in of reconciliations the the beginning of at opening balance equity from the end of at period to the closing balance reporting changes period. It also shows separately the reporting in the ‘Comprehensive due to amounts recognised economic in ‘Other and amounts recognised result’ to related income’ comprehensive flows – other with owner in its capacity as owner’. ‘Transactions statement are classified according to whether or not to whether or not classified according are statement economic ‘transactions’ or ‘other they arise from whole consistent with the is flows’. This classification is allowed under and format reporting government of Financial Statements. of AASB 101 Presentation Finance Government of by the Australian System and Methods 2005 and Sources Concepts, Statistics: Government of Amendments to Australian System 2005. Statistics, Finance policy decisions, of to arise as a result considered by mutual usually interactions between two entities also include flows within Transactions agreement. the owner where such as depreciation an entity, the is simultaneously acting as the owner of the service of asset and as the consumer depreciating or can be in kind asset. Transactions by the provided is cash. consideration the final where (non current being those assets or liabilities expected being those assets or liabilities expected (non current than 12 months) are or settled more to be recovered relevant. disclosed in the notes, where in accordance with Australian Accounting Standards. Standards. with Australian Accounting in accordance † † †

(c) ounting Standards, Financial ounting Standards, The accounting policies disclosed in the notes have The accounting Estimates and underlying assumptions are reviewed reviewed are and underlying assumptions Estimates In the application of Acc of In the application Accounting policies are selected and applied in a policies are Accounting Basis of Preparation on a have been prepared The financial statements Statement of Compliance of Statement general purpose financial are The financial statements been applied in preparing the financial statements the financial statements been applied in preparing the year ended 30 June 2013 and the comparative for the year ended for presented information 30 June 2012. on an ongoing basis. Revisions to estimates are are to estimates on an ongoing basis. Revisions is in the period in which the estimate recognised period or in the only that effects if the revision revised periods if the revision and future the revision period of periods. and future both current effects Reporting Directions, and Standing Directions, Directions, and Standing Directions, Reporting judgements, make to management is required carrying values and assumptions about estimates apparent not readily are assets and liabilities that of and associated The estimates other sources. from based on historical experience assumptions are believed to be are and various other factors that of the results under the circumstance, reasonable making the judgements. the basis of which form these estimates. from may differ Actual results manner which ensures that the resulting financial the resulting that manner which ensures and relevance of concepts the satisfies information the of the substance ensuring that thereby reliability, is reported. underlying transactions or other events historical cost basis, except for the revaluation of of the revaluation for basis, except historical cost non-financial assets and financial instruments. certain the consideration Cost is based on the fair values of assets. for given in exchange statements which have been prepared on an accrual on an accrual which have been prepared statements with the Financial Management basis in accordance Act 1994 and applicable Australian Accounting The financial and Interpretations. Standards Financial Reporting with relevant comply statements by the Victorian Department of issued Directions Standing Directions and relevant and Finance, Treasury In particular, Finance. authorised by the Minister for with the in a manner consistent presented they are Government 1049 Whole of AASB of requirements Reporting. and General Government Sector Financial

(b)

Summary Accounting Policies of Significant (a) For the Year Ended 30 June 2013 Ended For the Year Note 1 Notes to the Financial Notes to the Statements (v) Rounding of Amounts The Corporation makes contributions to defined All amounts disclosed in the financial statements have benefit superannuation schemes based on a fixed been rounded to the nearest thousand dollars, unless percentage of current Corporation employee otherwise stated. Figures in the statements may not members’ annual salary as actuarially determined by equate due to rounding. the scheme. The Victorian Government’s Department of Treasury and Finance centrally recognises the (d) Income from Transactions defined benefit liability or surplus of the Corporation’s Income from transactions is recognised to the extent employees in such schemes. that it is probable that the economic benefits will flow to the Corporation and the income can be reliably Contributions made by the Corporation to measured. The Corporation’s income is recognised accumulation superannuation schemes are in as follows: accordance with the Commonwealth Superannuation Guarantee (Administration) Act 1992. Additional (i) Government Grants contributions are made by the Corporation Government grants are recognised when the when salary sacrifice arrangements are requested related outputs have been delivered and by employees. expenditure is incurred. Contributions made by the Corporation to employee (ii) Transport Accident Commission Grants superannuation schemes are charged as an expense as the contributions are paid or become payable. Transport Accident Commission grants are recognised Contributions made to employee superannuation when the related expenditure is incurred. schemes are detailed in Note 23 - ‘Superannuation (iii) Regulatory Revenue Contributions’. Regulatory, licence fees, fines and penalties payable (ii) Supplies and Services to the Corporation in accordance with the Transport Supplies and Services expenses are recognised as Integration Act 2010, the Road Safety Act 1986, the an expense in the reporting period in which they are Chattel Securities Act 1987, the Road Management incurred. The carrying amounts of any inventories Act 2004 and related regulations are recognised when held for distribution are expensed when distributed. received by the Corporation. (iii) Depreciation (iv) Assets received free of charge Non-financial assets other than land, earthworks, Assets received free of charge are recognised at their earth mound barriers, inventories, water rights fair value at the time that the Corporation obtains and properties held for resale are systematically control over the assets. depreciated in order to write-off the cost of these (v) Other revenue assets over their useful lives to the Corporation. Revenue in respect of services or works provided by Depreciable assets are depreciated from the date the Corporation is recognised at the time the service of acquisition or, in respect of constructed assets, to which the revenue relates is provided or work is from the time an asset is completed and held ready undertaken and the revenue is receivable. for use. These assets are depreciated using the straight-line method with due allowance for residual Rental revenue from the leasing of properties is values. Estimated remaining useful lives of depreciable recognised on a straight line basis over the term assets are reviewed on an annual basis to reflect of the lease. wear and tear from physical use and technical and Interest revenue is recognised on a time proportionate economic developments, and depreciation rates basis that takes into account the effective yield of the are adjusted accordingly. financial asset. It has been determined by experts in infrastructure valuations that earthworks and earth mound barriers (e) Expenses From Transactions do not have a limited useful life to the Corporation, (i) Employee Benefits and therefore these assets are not depreciated. Employee benefits include salaries, wages,

accrued leave entitlements, termination benefits, superannuation entitlements and payroll tax. These benefits are recognised as an expense in the reporting period in which they are incurred. The Corporation’s employees are covered for superannuation benefits as members of defined benefit and accumulation superannuation schemes.

72 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013 ANNUAL REPORT 2012-13 73

5 years 10 years 40 years 40 years 40 years 60 years 90 years 4 to 5 years 5 to 13 years 3 to 14 years 3 to 14 7 to 25 years 4 to 10 years USEFUL LIFE 20 and 50 years Cash assets include cash in bank and on hand. Any gain or loss from the disposal of surplus assets surplus assets the disposal of Any gain or loss from (ii) Other Gains/(Losses) from Other Economic flows other economic Other gains/(losses) from Other Economic Flows - Other Comprehensive Other non-owner changes in equity include changes Cash and Cash Equivalent Assets is recognised at the date that control of the asset is of control that the date at is recognised deducting passed to the buyer and is determined after the asset at carrying value of the the proceeds from time. that Flows the value of the present of include the revaluation changes in the leave liability due to long service (i) to Note 1(k) Provisions (Refer rates bond interest translation currency foreign Employee Benefits), and Currency). to Note 1(u) Foreign (Refer differences Income the from resulting reserve in the asset revaluation physical assets including non-current of revaluation 1 (j) Non-Financial to Note impairment losses (Refer Assets (v) Valuations). Cash equivalents include short term deposits with months or less held with three of an original maturity Victoria. Corporation Treasury

(g) (h)

ge are recognised at their at recognised ge are (i) Net Gain/(Loss) on Non-Financial Assets (i) Net Gain/(Loss) on Non-Financial Net gain/(loss) on non-financial assets includes Assets provided free of char of free Assets provided Other Economic Flows Included in Net Result the change in flows measure Other economic (vi) Assets transferred to other entities Grants and other transfers to municipalities are to municipalities are Grants and other transfers (v) Capital Asset Charge is imposed by the Victorian A capital asset charge Leasehold property improvements are depreciated depreciated are improvements property Leasehold (iv) Grants and Other Transfers The expected useful lives of depreciable assets for the assets for depreciable lives of The expected useful realised gains and losses from the disposals of surplus the disposals of gains and losses from realised adjustments and impairment of assets, asset register physical assets. fair value at the time of transfer from the Corporation. from transfer the time of fair value at recognised as an expense in the reporting period as an expense in the reporting recognised paid or payable. in which they are Finance and Treasury Government’s Department of as determined cost, the opportunity which represents in the non- capital invested by the Department, of the of physical assets used in the provision current on is calculated The charge services. Corporation’s physical assets non-current the carrying amount of assets. other than infrastructure over the unexpired period of leases or the useful lives leases or the useful period of over the unexpired whichever is the shorter. the improvements, of current and prior year are as follows: and prior year are current volume of value of assets or liabilities that do not assets or liabilities that value of volume of transactions. from result

Intangible Assets Intangible Software Improvements on land acquired for roads for on land acquired Improvements equipment Plant and Technical machines and equipment Office Audio visual and photographic fittings and fit outs Furniture, Weighbridges Plant and Equipment systems Computers and computer Buildings Operational ASSET CLASS Infrastructure Assets pavement Road Sound barriers Bridges systems control Traffic

(f)

The Corporation holds cash and cash equivalent †† Properties held for sale, which comprise collections on behalf of the Victorian Government and properties identified as surplus to the Corporation’s Government agencies. The cash balances held by the requirements. These properties are in a state ready Corporation on behalf of the Victorian Government for sale, are being actively marketed for sale and and Government agencies are not available for use the sale is expected to be completed within by the Corporation. The Corporation also holds cash twelve months. funds on behalf of other Governments and public (iii) Acquisition of Assets entities. The cash balances held by the Corporation The cost method of accounting is used for all are applied in accordance with the funding contracts. acquisitions of assets. Cost is measured as the fair (i) Receivables value of the assets given up or liabilities undertaken Receivables consist predominantly of revenue at the date of acquisition, plus incidental costs from Governments and Government agencies. directly attributable to the acquisition. This revenue will be realised when required to Assets acquired at no cost, or for nominal fund related expenditure commitments. consideration, are initially recognised at their fair Debtors are recognised as amounts receivable as they value at the date of acquisition. are due for settlement within 30 days from the date of (iv) Constructed Assets recognition. The collectability of debtors is reviewed The cost of non-financial assets constructed by the on an ongoing basis. Debts which are known to Corporation includes the cost of all materials, direct be uncollectable are written off and an allowance labour and other costs directly attributable to the for doubtful debts is raised where there is objective construction of the asset. evidence that the debts may not be collected. (v) Valuations (j) Non-Financial Assets Subsequent to the initial recognition of assets, (i) Declared Road Network all classes of non-financial assets, other than The Corporation is responsible in accordance with the prepayments and inventories are valued on a fair value Transport Integration Act 2010 for the development basis in accordance with Financial Reporting Direction and management of Victoria’s declared road network. 103D – ‘Non-current Physical Assets’. Fair value is As the Corporation has control over the declared determined as the market value, or in the absence road network and accepts all risks associated with of a market value, depreciated replacement cost. the network, the value of the network has been recognised in the Balance Sheet. Infrastructure assets are valued based on the current replacement cost of equivalent assets that are capable (ii) Asset Classifications of providing the same level of service as the existing Non-financial assets are classified in the following assets and written-down to take account of expired categories: service life.

†† Infrastructure assets which encompass Victoria’s Land, other than land under declared roads, and declared road network and include road pavements, buildings are valued based on amounts for which the sound barriers, earthworks, bridges and traffic assets could be exchanged between willing parties in control systems an arms length transaction. The valuation is based on †† Land assets which comprise land used for current prices in an active market for similar properties operations, land acquired for future public in the same location and condition and with regard roads, land under declared roads and land to any known restrictions in use. in commercial use Land acquired in relation to the construction of †† Buildings and leasehold improvements which future public roads is measured initially at cost and comprise offices, residential properties, storage subsequently at fair value. depots and patrol garages on freehold land, Land under declared roads acquired prior to 1 July buildings on land acquired for future public roads, 2008 is measured at fair value. Land under declared and leasehold buildings and improvements on roads acquired on or after 1 July 2008 is measured Crown and leased land initially at cost of acquisition and subsequently at †† Plant and equipment which comprise office fit outs, fair value. furnishings and fittings, computers and other technical equipment The fair value of land under declared roads is based on average rateable value per hectare within each †† Intangible assets which comprise purchased and municipal site discounted to reflect the value prior to developed computer software and water rights subdivision, the discount factors range from 15% for †† Inventories which comprise stockpiles of rural land under freeways to 80% for residential land construction and maintenance materials, saleable under main roads. items and consumable stores held for either distribution in the ordinary course of business operations or for sale

74 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013 ANNUAL REPORT 2012-13 75 Terms and conditions of amounts payable to the amounts of and conditions Terms Provisions (i) Employee Benefits the Corporation’s been made for has Provision (vi) Impairment of Assets held inventories and properties All assets other than their exceeds their carrying value For assets where Payables goods liabilities for represent accruals and Creditors Victorian Government, Government agencies and Victorian Government, Government agencies to particular agreements. other entities vary according employee annual leave, long service for obligations and other entitlements arising leave, performance date. by employees to balance rendered services from non-vesting sick not been made for has Provision sick leave future of pattern leave as the anticipated non-vesting leave accumulated that indicates taken will not be utilised. for sale are assessed annually for any indications any indications assessed annually for sale are for of be an indication Should there impairment. of an asset is tested value of impairment; the carrying its its carrying value exceeds to determine whether amount is amount. The recoverable recoverable replacement depreciated as the higher of measured to sell. less costs and fair value cost to value is reduced amount, the carrying recoverable is amount and the impairment loss the recoverable extent to the that, as an expense, except written off exists in the asset revaluation balance a credit that the assets, to the same class of applicable reserve to the asset impairment loss is debited directly reserve. revaluation prior to the to the Corporation provided and services The unpaid. the financial year and which are end of within usually paid and are unsecured amounts are recognition. 30 days of

(l) (k) Annual leave, performance and other entitlements and other annual leave, performance Liabilities for expected to be settled within 12 months entitlements are disclosed as a current period and are the reporting of their nominal values. at liability and measured evaluations of of evaluations revaluation increments and decrements are offset offset are and decrements increments revaluation non-current against one another within a class of physical assets. revaluation decrements are recognised immediately immediately recognised are decrements revaluation a to the extent that that, as an expense except reserve exists in the asset revaluation balance credit a decrement assets, applicable to the same class of reserve to the asset revaluation is debited directly revaluation increments are credited directly to the directly credited are increments revaluation to the extent that, except reserve, asset revaluation decrement a revaluation reverses an increment that recognised asset previously class of that of in respect isas an expense, the increment recognised as revenue immediately † † † Land, buildings, leasehold improvements and assets Land, buildings, leasehold improvements their fair value, valued at For assets which are Infrastructure assets were independently valued by assets were Infrastructure The Corporation undertakes formal r formal undertakes The Corporation Works in progress are valued at construction cost. construction valued at are in progress Works and saleable items stockpile materials, Inventories of of the lower at measured sale are for held Properties Plant and equipment is disclosed at fair value. Fair fair value. Fair is disclosed at Plant and equipment in commercial use were independently valued by the use were in commercial 30 June 2010. Victoria as at Valuer-General are and decrements increments revaluation as follows: for accounted external engineers as at 30 June 2010. A managerial 30 June 2010. external engineers as at assets, based on infrastructure of revaluation condition present the considering indexation, useful lives was the remaining and reviewing 30 June 2012 as at by the Corporation undertaken a material that determined the Corporation after the last since movement in values had occurred independent valuation. carrying amount or fair value less costs to sell. carrying amount or fair value less costs land and buildings infrastructure, the fair value of material exceptionally assets every five years or where During to have occurred. considered movements are these of the intervening years, the carrying values annually to determine if their assessed assets are value. with their fair consistent carrying values remain from these assets differ Should the carrying value of it is material, their fair value to the extent that will be undertaken. a managerial revaluation consumable stores are valued on a cost basis. Cost is valued on a cost are stores consumable acquisition cost. determined as the original value is determined as the original acquisition costs as the original acquisition costs value is determined and impairment depreciation less any accumulated basis. on a cost valued are losses. Intangible assets less the original acquisition cost Cost is determined as losses. and impairment amortisation any accumulated † † †

Long service leave (iv) Compensation Payable to Property Owners The liability for unconditional long service leave In circumstances where the Corporation has caused is disclosed as a current liability on the basis that financial loss to property owners due to overlays, employees have the unconditional right to the developments or other works, the Corporation may entitlement within 12 months. compensate the property owner for any loss. Where agreement has not been reached at balance date, The liability for conditional long service leave is the compensation is recognised as a liability, based disclosed as a non current liability on the basis that wherever practicable, on an independent valuation. the entitlement is conditional upon employees completing additional years of service. (m) Leases The liability for long service leave to be settled after (i) Corporation as lessor 12 months has been calculated as the present value Rental income from operating leases is recognised on of estimated future cash payments to be made by a straight line basis over the term of the relevant lease. the Corporation in respect of services provided by employees to balance date. In determining the liability, (ii) Corporation as lessee consideration has been given to estimated future Operating lease payments are recognised as an salary levels, experience of employee departures and expense on a straight line basis over the term of the periods of service. Estimated future payments have relevant lease. been discounted using interest rates attached to (n) Contributed Capital Commonwealth Government guaranteed securities Appropriations from the Victorian Government for with terms to maturity that match, as closely as additions to net assets and other transfers that are in possible, the estimated future cash payments. the nature of contributions have been designated as Any gain or loss following revaluation of the present contributed capital. value of the long service leave liability arising due to Proceeds from the sale of surplus operational changes in bond interest rates is recognised as a gain properties which were originally funded by the or loss from other economic flows included in the Victorian Government, are paid into the Government’s net result. Consolidated Fund. An amount equivalent to the book On costs value of such properties is recognised as a reduction Employee benefits on-costs (payroll tax, workers in contributed capital. compensation and superannuation) are recognised (o) Financial Instruments separately from the provisions for employee Financial instruments consist of financial assets, benefits. receivables and payables, and are valued on a fair Employee benefits on-costs liability expected to value basis. Fair value is determined as follows: settle within 12 months is measured at nominal value †† fair value of financial instruments with standard and the liability expected to settle after 12 months is terms and conditions, and traded in active liquid measured as the present value of estimated future markets, is determined with reference to quoted cash payments to be made by the Corporation. market prices (ii) Contractor Retentions and Provisions †† fair value of other financial instruments is Contractor retentions represent contractor payments determined in accordance with generally withheld as securities by the Corporation and accepted pricing models based on discounted contractor provisions represent claims made by cash flow analysis contractors, pursuant to contractual arrangements †† fair value of compensation payments recoverable entered into by the Corporation. is based on historic cost. (iii) Property Acquisition Liabilities The carrying amount of financial instruments excludes In circumstances where the Corporation has statutory amounts owed by or to the Corporation. issued a notice of compulsory acquisition or has taken possession of a property for the purpose of (p) Contingent Assets and Contingent Liabilities commencing roadworks and final settlement has Contingent assets and contingent liabilities are not not been achieved at balance date, the acquisition is recognised in the Balance Sheet, but are disclosed recognised as a liability based, wherever practicable, by way of a note to the financial statements and if on an independent valuation. quantifiable, are measured at nominal value.

76 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013 ANNUAL REPORT 77 2012-13 e eceived eceived (ii) Private Provision of Public Infrastructure Provision (ii) Private Melbourne CityLink and functions manages the statutory The Corporation The State, CML and Transurban Infrastructur CML and Transurban The State, not are revenues notes and related The concession notes due to be r concession The value of The State and CityLink Melbourne Limited (CML) and The State CML to pay to the Deed requires The Concession Management Limited (TIML) into the M1 entered Assignment) Assignment (Deed of Corridor Deed of the Deed of Under the terms of on 25 July 2006. and due notes held by, Assignment, all concession with the in accordance to be issued to the State Deed, have been assigned to TIML for Concession four year period over a a defined payment stream ending 30 June 2010. assets and revenue, as the Corporation’s recognised notes and related the concession liabilities. Details of 25-‘Transactions disclosed in Note are revenues the Victorian Government’. on behalf of administered with the Concession in accordance by the State value of the present Deed, has been disclosed at periods by notes to be issued in future concession notes has the concession value of CML. The present implied in rate based on an interest been calculated profile note redemption concession the estimated The present Assignment. included in the Deed of notes is disclosed as the concession value of CityLink revenue. deferred powers of the State under the Melbourne CityLink State the powers of powers include the These functions and Act 1995. arrangements, the contractual of administration Project. the CityLink and assets of revenue Melbourne CityLink into the amongst others, entered the Under on 30 October 1995. Deed Concession Deed, CML is responsible the Concession terms of of financing and operation the construction, for network during the concession the CityLink road on expected to expire is currently period that January 2034. 14 at specified intervals fees concession specified State with the In accordance period. during the concession an option to Deed, CML has exercised Concession by way fees to pay concession meet its obligations non- notes. These notes are issuing concession of notes payable by CML promissory bearing interest period or earlier in the the concession the end of at financial profitability CML achieving certain event of levels and cash flows.

ertain frastructure frastructure Transactions relating to the income collections are are collections to the income relating Transactions Income collected, but not remitted to the Victorian remitted but not collected, Income The Corporation administers the collection of c of administers the collection The Corporation Transactions Administered on Behalf of the Administered on Behalf of Transactions (i) Income Collections Commitments in of the construction Commitments for disclosed in Note 25-‘Transactions administered on administered disclosed in Note 25-‘Transactions the Victorian Government’ and Note 26- behalf of Government agencies’. on behalf of ‘Collections Government and government agencies at balance balance at Government and government agencies as an asset and a corresponding recognised are date to relating Sheet. Cash flows liability in the Balance in the not recognised are collected the income Cash Flow Statement. fees, licences and duties on behalf of the Victorian and duties on behalf of licences fees, Act with the Road Safety Government in accordance and on Duties Act 2000, Vehicles the Motor 1986, agencies. These income government certain behalf of as the Corporation’s not recognised are collections of in the collection Expenses incurred income. as the Corporation’s recognised are this income Victorian funded from expense. Expenses are paid by the Transport Government Grants and fees in the recognised Commission which are Accident Statement’. Operating ‘Comprehensive Victorian Government assets, the acquisition of plant and equipment of assets, the acquisition and non- contracts non-cancellable arising from in the not recognised are contracts lease cancellable a note to by way of disclosed but are Sheet, Balance at their measured and are the financial statements nominal value.

(r) (q) The Concession Deed provides for CML to lease (s) Goods and Services Tax certain land and road infrastructure from the State Income, expenses and assets are recognised net during the concession period. At the end of this of associated Goods and Services Tax, unless the period, the assets are to be returned together with tax incurred is not recoverable from the Australian the transfer of the CityLink road to the State. There Taxation Office. In this case it is recognised as part is, currently, no authoritative accounting guidance of the cost of acquisition of the asset or as part of applicable to the recognition and measurement of the expense. The net amount of Goods and Services the State’s right to receive the CityLink road from CML Tax recoverable from, or payable to, the Australian at the end of the concession period. In the absence Taxation Office is included as part of receivables or of such guidance, there has been no change to the payables in the ‘Balance Sheet’. The Goods existing policy and the right has not been recognised and Services Tax component of a receipt or as an administrative asset in the financial statements. payment is recognised on a gross basis in the EastLink ‘Cash Flow Statement’. The Corporation manages the statutory functions (t) Functional and Presentation Currency and powers of the State under the EastLink Project The functional currency of the Corporation is the Act 2004. These functions and powers include Australian Dollar, which has also been identified as the management of agreements concerning the the presentation currency of the Corporation. development, delivery and operation of the EastLink Project. (u) Foreign Currency All foreign currency transactions during the financial The State and ConnectEast Pty Ltd (ConnectEast), year are brought to account using the exchange amongst others, entered into the EastLink rate in effect at the date of the transaction. Foreign Concession Deed on 14 October 2004. Under monetary items existing at the end of the reporting the terms of the Concession Deed, ConnectEast period are translated at the closing rate at the date is responsible for the construction, financing and of the end of the reporting period. operation of the EastLink Project. ConnectEast has a right to operate the EastLink road network for the (v) New Accounting Standards and Interpretations duration of the concession period which is due As at 30 June 2013, the following new accounting to expire on 30 November 2043. standards and interpretations have been issued The Concession Deed provides for ConnectEast however, their adoption was not mandatory for to lease certain land from the State during the the financial year ending 30 June 2013. The concession period. At the end of this period, the land Corporation has not, and does not intend to is to be returned together with the transfer of the adopt these standards early. EastLink road network to the State. There is, currently, no authoritative accounting guidance applicable to the recognition and measurement of the State’s right to receive the EastLink road network from ConnectEast at the end of the service concession period. In the absence of such guidance, there has been no change to the existing policy and the right has not been recognised as an administrative asset in the financial statements.

78 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013 ANNUAL REPORT 2012-13 79 IMPACT ON IMPACT CORPORATION’S CORPORATION’S FINANCIAL STATEMENTS No impact on the reporting. Corporation’s Increased disclosure disclosure Increased in the may be required financial Corporation’s statements. The Victorian Government considering is currently Reduced the impacts of Requirements Disclosure public certain (RDRs) for sector entities, and has not decided if RDRs will be implemented in the Victorian public sector.

APPLICABLE FOR ANNUAL REPORTING REPORTING ANNUAL PERIODS BEGINNING ON PERIODS BEGINNING 1 Jan 2015 1 Jan 2013 1 July 2013 SUMMARY This Standard simplifies simplifies This Standard the for requirements and classification financial of measurement Phase from assets resulting to project the IASB’s 1 of IAS 39 Financial replace Instruments: Recognition (AASB and Measurement 139 Financial Instruments: and Recognition Measurement). This Standard outlines the This Standard measuring for requirements assets and the fair value of the liabilities and replaces existing fair value definition in other and guidance Australian accounting AASB 13 includes standards. a ‘fair value hierarchy’ which ranks the valuation technique inputs into three levels using unadjusted in active quoted prices identical assets for markets or liabilities; other observable inputs; and unobservable inputs. This Standard establishes a This Standard reporting financial differential framework consisting reporting two tiers of of preparing for requirements general purpose financial statements. STANDARD/ INTERPRETATION AASB 9 Financial instruments AASB 13 Fair Value Value AASB 13 Fair Measurement AASB 1053 Application AASB 1053 Application Australian Tiers of of Standards Accounting Note 2 Income from transactions

2013 2012 $’000 $’000 Other revenue External works 56,249 60,984 Transport Accident Commission premium collection commission 36,228 34,893 Victorian Government agency commission 4,950 4,828 Rental revenue 13,473 11,263 Recoveries 37,765 49,929 Interest 1,387 1,457 Total other revenue 150,052 163,354

Note 3 Expenses from transactions

2013 2012 $’000 $’000 Employee benefits Salaries and related on-costs 208,236 223,453 Leave entitlements 26,758 27,030 Termination benefits 16,513 325 Total employee benefits 251,507 250,808

Supplies and services Payment to contractors 368,705 456,429 Management and operating 97,867 120,110 Plant hire 21,560 25,909 Bad and doubtful debts 206 (108) Services alterations 21,593 29,687 Total supplies and services 509,931 632,027

Depreciation Road pavements 407,528 366,536 Bridges 86,160 76,193 Traffic signal control systems 26,954 24,016 Plant and equipment 4,584 4,540 Intangible assets 5,325 7,481 Sound barriers 13,430 9,589 Buildings and leasehold improvements 1,375 1,333 Total depreciation 545,356 489,688

80 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013 ANNUAL REPORT 2012-13 81 (4) 133 2012 2012 (391) 3,555 3,688 $’000 $’000 7,005 7,841 6,000 33,712 (8,731) 39,712 16,576 34,028 (8,735) 43,400 (24,066) 13 136 2013 2013 (315) 1,297 $’000 $’000 7,495 6,047 2,916 6,183 2,903 4,579 4,500 23,114 34,613 39,113 45,296 (19,517) Net gain/(loss) on non-financial assets Net gain/(loss) on non-financial non-financial assets surplus disposal of from Proceeds IN NET RESULT INCLUDED FLOWS ECONOMIC OTHER TOTAL activities to operating Cash relating Cash on hand Written-down value of disposed non-financial assets disposed non-financial value of Written-down economic flows other from gains/(losses) other Total bank Cash at activities to operating relating cash Total Cash and cash equivalent collections on behalf of the Victorian Government, government agencies and other entities bank Cash at deposits Fixed Assets register adjustments Assets register flows Other gains/(losses) from other economic employee benefits for provision of Gain/(loss) on revaluation currency foreign of Gain/(loss) on revaluation and cash equivalent collections on behalf of the cash Total Victorian Government, government agencies and other entities CASH AND CASH EQUIVALENTS TOTAL Impairment of assets Impairment of net gain/(loss) on non-financial assets Total Cash and cash equivalents Note 5 Other economic flows included in net result Other economic Note 4 Note 6 Receivables

2013 2012 $’000 $’000 Current receivables Contractual Debtors 16,963 16,790 Other receivables 11,982 17,296 Allowance for doubtful debts (543) (538) 28,402 33,548 Statutory Amounts owing from the Victorian Government 296,404 339,294 Goods and Services Tax input tax credit recoverable 7,467 11,894 303,871 351,188 Total current receivables 332,273 384,736

Non-current receivables Contractual Other receivables 12,637 7,427 Loans to third parties 1,612 - Interest free loans 162 162 Total non-current receivables 14,411 7,589 TOTAL RECEIVABLES 346,684 392,325

2013 2012 $’000 $’000 Movement in the allowance for doubtful debts Balance at beginning of the year (538) (890) Amounts written off during the year 201 244 Decrease/(increase) in allowance recognised in the net result (206) 108 Balance at the end of the year (543) (538)

82 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013 ANNUAL REPORT 2012-13 83 401 456 2012 2012 2012 1,009 $’000 $’000 $’000 1,465 23,473 14,922 12,968 14,922 14,922 (21,920) (29) 305 2013 2013 2013 1,092 $’000 $’000 $’000 1,397 16,211 14,922 16,211 16,211 20,796 (19,478) Saleable items and consumable stores Saleable items and consumable INVENTORIES TOTAL Carrying the end of the year amount at Current inventories Stockpile materials Carrying amount At independent valuation HELD FOR SALE PROPERTIES TOTAL Reconciliation the year the beginning of Carrying amount at land from Transfers buildings from/(to) Transfers Disposals Properties held for sale Note 8 Note 7 Inventories Note 9 Buildings and leasehold improvements

2013 2012 $’000 $’000 Carrying amount Buildings operational At independent valuation 10,628 10,784 Accumulated depreciation (746) (539) 9,882 10,245 Buildings on land acquired for future public roads At independent valuation 22,327 20,548 At cost 2,209 2,077 Accumulated depreciation (1,668) (1,072) 22,868 21,553 Leasehold improvements At independent valuation 20,371 20,371 Accumulated depreciation (1,484) (975) 18,887 19,396 TOTAL BUILDINGS AND LEASEHOLD IMPROVEMENTS 51,637 51,194

84 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013 ANNUAL REPORT 2012-13 85 - 29 62 (156) (327) (401) 2013 2012 (182) 2,209 2,077 $’000 $’000 (1,374) 51,194 TOTAL TOTAL (1,334) 51,034 51,637 51,194 ------2013 2012 (509) (509) $’000 $’000 19,396 19,905 18,887 19,396 LEASEHOLD LEASEHOLD IMPROVEMENTS IMPROVEMENTS - - - - 29 (411) (327) (596) 2013 2012 (552) 2,209 $’000 2,077 $’000 21,553 21,553 20,439 ROADS ROADS 22,868 ON LAND ON LAND BUILDINGS BUILDINGS ACQUIRED FOR ACQUIRED ACQUIRED FOR ACQUIRED FUTURE PUBLIC FUTURE PUBLIC - - - - - 10 62 (269) 2013 2012 (156) (182) (273) $’000 $’000 9,882 10,245 10,690 10,245 BUILDINGS BUILDINGS OPERATIONAL OPERATIONAL Carrying the end of the year amount at Depreciation expense Depreciation Transfers from property held for sale held for property from Transfers Asset register adjustments Asset register Buildings incorporated into declared roads declared into Buildings incorporated Book value of State assets sold and proceeds sold and proceeds assets State Book value of Victorian Government to the returned Disposals Acquisitions Reconciliation the year the beginning of Carrying amount at Transfers from/(to) property held for sale held for property from/(to) Transfers expense Depreciation Carrying the end of the year amount at Reconciliation the year of the beginning Carrying amount at Acquisitions assets sold and proceeds State Book value of to the Victorian Government returned Note 9 improvements (continued) Buildings and leasehold Note 10 Plant and equipment

2013 2012 $’000 $’000 Carrying amount Computers and other technical equipment At fair value 22,910 23,879 Accumulated depreciation (12,396) (12,220) Accumulated impairment (1,437) (1,339) 9,077 10,320 Office furniture and fittings At fair value 34,754 33,749 Accumulated depreciation (22,250) (20,105) 12,504 13,644 TOTAL PLANT AND EQUIPMENT 21,581 23,964

2013 2012 $’000 $’000 Reconciliation Carrying amount at the beginning of the year 23,964 18,918 Acquisitions 2,525 10,046 Disposals (9) (69) Depreciation expense (4,584) (4,540) Impairment expense (315) (391) Carrying amount at the end of the year 21,581 23,964

86 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013 ANNUAL REPORT 2012-13 87 2012 $’000 14,021 26,386 27,456 26,386 27,456 28,288 1,194,415 1,222,703 15,843,814 15,857,835 17,134,380 2013 $’000 25,892 27,456 25,892 33,372 15,896 27,456 1,146,535 1,162,431 15,859,007 17,108,158 15,892,379 Carrying amount Land for operations At independent valuation Land acquired for future public roads At independent valuation At cost Land under declared roads At independent valuation At fair value Land in commercial use At independent valuation LAND TOTAL Note 11 Land Note 11 Land (continued)

LAND FOR LAND LAND UNDER LAND IN TOTAL OPERATIONS ACQUIRED FOR DECLARED COMMERCIAL FUTURE PUBLIC ROADS USE ROADS 2013 2013 2013 2013 2013 $’000 $’000 $’000 $’000 $’000 Reconciliation Carrying amount at the beginning of the year 26,386 1,222,703 15,857,835 27,456 17,134,380 Acquisitions - 15,896 - - 15,896 Assets transferred from/(to) other entities - (5,923) 1,172 - (4,751) Book value of State assets sold and proceeds (274) - - - (274) returned to the Victorian Government Asset register adjustments (220) (497) - - (717) Transfers from/(to) land under declared roads - (33,372) 33,372 - - Transfers to properties held for sale - (20,796) - - (20,796) Impairment loss to asset revaluation reserve - (15,580) - - (15,580) Carrying amount at the end of the year 25,892 1,162,431 15,892,379 27,456 17,108,158

LAND FOR LAND LAND UNDER LAND IN TOTAL OPERATIONS ACQUIRED FOR DECLARED COMMERCIAL FUTURE PUBLIC ROADS USE ROADS 2012 2012 2012 2012 2012 $’000 $’000 $’000 $’000 $’000 Reconciliation Carrying amount at the beginning of the year 26,561 1,221,698 15,844,691 27,456 17,120,406 Acquisitions - 28,288 - - 28,288 Assets transferred from other entities - 4 - - 4 Book value of State assets sold and proceeds (225) - - - (225) returned to the Victorian Government Asset register adjustments - (248) - - (248) Transfers from/(to) land under declared roads - (14,021) 14,021 - - Transfers from/(to) properties held for sale 50 (13,018) - - (12,968)

Assets transferred to Victorian Government - - (877) - (877) agencies as contributed capital Carrying amount at the end of the year 26,386 1,222,703 15,857,835 27,456 17,134,380

88 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013 ANNUAL REPORT 2012-13 89 2012 $’000 (1,703) 78,274 627,271 363,557 828,002 (92,136) 242,199 280,338 206,042 266,476 (505,913) (120,583) 1,103,592 7,073,398 1,528,260 6,569,827 7,279,440 1,528,260 5,082,996 23,569,375 (2,588,720) 12,919,568 27,440,297 (11,357,226) 2013 $’000 (3,292) 917,325 251,150 617,328 592,313 917,325 390,008 280,338 425,922 290,608 (131,764) (517,928) 1,281,817 (105,566) 1,553,502 6,571,602 7,046,454 7,638,767 5,446,275 (2,675,537) 23,535,387 27,753,364 12,935,067 (11,750,373) At cost depreciation Accumulated in progress Work At cost ASSETS INFRASTRUCTURE TOTAL Accumulated depreciation Accumulated signal control systems Traffic valuation At indexed Carrying amount pavement Road valuation At indexed At cost Sound barriers valuation At indexed At cost Bridges valuation At indexed At cost depreciation Accumulated impairment Accumulated At cost depreciation Accumulated Earthworks valuation At indexed Accumulated impairment Accumulated Note 12 Infrastructure assets Note 12 Infrastructure assets (continued)

ROAD EARTHWORKS SOUND BRIDGES TRAFFIC WORK IN TOTAL PAVEMENTS BARRIERS SIGNAL PROGRESS CONTROL SYSTEMS

2013 2013 2013 2013 2013 2013 2013 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Reconciliation Carrying amount at the 12,919,568 7,279,440 266,476 5,082,996 363,557 1,528,260 27,440,297 beginning of the year Assets transferred to other (34,275) (30,962) - (397) (222) - (65,856) entities Assets transferred from 6,870 3,540 - - - - 10,410 other entities Disposals - - - - (29) - (29) Depreciation expense (407,528) - (13,430) (86,160) (26,955) - (534,073) Construction expenditure - - - 252 4,622 848,538 853,412 Asset register adjustments 426 83 - 1,039 404 - 1,952 Capitalised work in 408,507 386,666 172,876 442,793 48,631 (1,459,473) - progress Assets transferred from Victorian Government 52,680 - - 7,341 - - 60,021 agencies as contributed capital Impairment loss to asset (11,181) - - (1,589) - - (12,770) revaluation reserve Carrying amount at the 12,935,067 7,638,767 425,922 5,446,275 390,008 917,325 27,753,364 end of the year

90 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013 ANNUAL REPORT 2012-13 91 - 2012 1,514 7,253 $’000 TOTAL (2,077) 117,997 (27,513) (73,178) 873,634 (103,360) (476,332) 2,355,710 24,766,649 27,440,297 ------(951) 2012 $’000 864,466 (103,360) WORK IN WORK 1,188,409 (420,304) 1,528,260 PROGRESS - - - 236 (197) 2012 1,514 (403) $’000 2,405 19,692 26,982 SIGNAL 337,344 (24,016) 363,557 TRAFFIC SYSTEMS CONTROL CONTROL - - (55) (723) 2012 5,235 (378) $’000 6,763 61,560 (76,193) 169,035 410,270 BRIDGES 4,507,482 5,082,996 ------2012 $’000 34,457 22,186 (9,589) SOUND 219,422 266,476 BARRIERS - - - - - 755 2012 1,687 $’000 22,482 26,564 (10,574) 695,904 6,542,622 7,279,440 EARTHWORKS - - - - 2012 1,027 $’000 ROAD 33,955 (74,487) (16,687) 163,266 (366,534) 1,207,658 11,971,370 11,971,370 12,919,568 PAVEMENTS

Revaluation increment Revaluation revaluation reserve revaluation Impairment loss to asset capital agencies as contributed agencies as contributed Victorian Government Assets transferred from from Assets transferred capital agencies as contributed agencies as contributed Victorian Government Assets transferred to Assets transferred progress Capitalised work in adjustments Asset register Asset register Construction expenditure Depreciation expense Depreciation Disposals other entities Assets transferred from from Assets transferred other entities Assets transferred to Assets transferred beginning of the year beginning of Carrying amount at the Carrying amount at Reconciliation end of the year Carrying the amount at Note 12 (continued) Infrastructure assets Note 13 Intangible assets

2013 2012 $’000 $’000 Carrying amount Software At cost 86,636 84,022 Accumulated amortisation (63,193) (57,868) 23,443 26,154 Water rights At fair value 882 879 TOTAL INTANGIBLE ASSETS 24,325 27,033

2013 2012 $’000 $’000 Reconciliation Carrying amount at the beginning of the year 27,033 30,019 Acquisitions 2,617 4,495 Amortisation expense (5,325) (7,481) Carrying amount at the end of the year 24,325 27,033

92 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013 ANNUAL REPORT 2012-13 93 2012 $’000 15,412 15,412 15,412 15,412 24,642 24,642 224,914 224,914 184,860 184,860 224,914 224,914 224,914 224,914 209,502 209,502 2013 $’000 16,796 16,796 22,932 22,932 16,796 16,796 171,668 171,668 131,940 131,940 171,668 171,668 171,668 171,668 154,872 154,872 Current Contractual and accruals Creditors PAYABLES TOTAL Victorian Government, government agencies and other entities Victorian Government, government agencies Statutory and other entities Victorian Government, government agencies current payables Total carryingAggregate amount of payables Current Note 14 Payables Note 15 Provisions

2013 2012 $’000 $’000 Current Employee benefits annual leave Unconditional and expected to be settled within 12 months 17,535 18,904 Employee benefits long service leave Unconditional and expected to be settled within 12 months 4,913 5,428 Unconditional and expected to be settled after 12 months 45,874 51,955 Provisions related to employee benefit on-costs Unconditional and expected to be settled within 12 months 3,640 3,678 Unconditional and expected to be settled after 12 months 7,662 8,065 Performance and other entitlements 3,674 2,489 Contractor retentions and provisions 18,146 15,569 Property acquisition liabilities 53,709 37,131 Compensation payable to property owners 41,148 4,761 Total current provisions 196,301 147,980

Non-current Employee benefits long service leave 6,758 7,218 Provisions related to employee benefit on-costs 1,129 1,120 Contractor retentions and provisions 2,695 2,149 Property acquisition liabilities 552 345 Compensation payable to property owners 12 - Total non-current provisions 11,146 10,832

Aggregate carrying amount of provisions Current 196,301 147,980 Non-current 11,146 10,832 TOTAL PROVISIONS 207,447 158,812

2013 2012 $’000 $’000 Employee benefits and related on-costs 91,185 98,857 Contractor retentions and provisions 20,841 17,718 Property acquisition liabilities 54,261 37,476 Compensation payable to property owners 41,160 4,761 TOTAL PROVISIONS 207,447 158,812

94 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013 ANNUAL REPORT 2012-13 95 2012 7,218 7,218 1,120 $’000 2,489 2,489 11,743 11,743 57,383 57,383 15,352 15,352 18,904 18,904 98,857 98,857 83,505 83,505 2013 1,129 3,674 3,674 $’000 6,758 6,758 17,535 17,535 11,302 11,302 50,787 50,787 91,185 16,105 16,105 75,080 75,080 Performance and other entitlements Performance on-costs Total ON-COSTS BENEFITS AND RELATED EMPLOYEE TOTAL Non-current employee benefits leave entitlements service Long employee benefits Total on-costs Current on-costs Non-current Employee benefits and related on-costs and related Employee benefits Note 15 Provisions (continued) Current employee benefits Annual leave entitlements leave entitlements service Long Note 15 Provisions (continued)

EMPLOYEE CONTRACTOR PROPERTY COMPENSATION TOTAL BENEFITS RETENTIONS ACQUISITION PAYABLE TO AND PROVISION PROPERTY PROVISIONS OWNERS 2013 2013 2013 2013 2013 $’000 $’000 $’000 $’000 $’000 Reconciliation Carrying amount at the beginning of 98,857 17,718 37,476 4,761 158,812 the year Additional provisions recognised 31,155 14,453 43,705 41,051 130,364 Payments or other sacrifices of (35,748) (7,885) (27,323) (4,652) (75,608) economic benefits Additions/(reductions) from re- (176) (3,445) 403 - (3,218) measurement or settlement without cost Decreases from economic flows (2,903) - - - (2,903) Carrying amount at the end of the year 91,185 20,841 54,261 41,160 207,447

EMPLOYEE CONTRACTOR PROPERTY COMPENSATION TOTAL BENEFITS RETENTIONS ACQUISITION PAYABLE TO AND PROVISION PROPERTY PROVISIONS OWNERS 2012 2012 2012 2012 2012 $’000 $’000 $’000 $’000 $’000 Reconciliation Carrying amount at the beginning 87,182 21,100 46,601 4,472 159,355 of the year Additional provisions recognised 30,362 12,790 11,888 4,744 59,784 Payments or other sacrifices (27,112) (16,739) (37,489) (4,455) (85,795) of economic benefits Additions/(reductions) from (306) 567 16,476 - 16,737 re-measurement or settlement without cost Increases from economic flows 8,731 - - - 8,731 Carrying amount at the end of the year 98,857 17,718 37,476 4,761 158,812

96 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013 ANNUAL REPORT 2012-13 97 2012 3,688 3,688 $’000 41,137 41,137 44,825 44,825 209,502 209,502 2013 6,183 6,183 $’000 42,814 42,814 48,997 48,997 154,872 154,872 5 6 14 NOTES Financial assets Cash assets cost) amortised (at and receivables Loans Categorisation of financial instruments Categorisation Note 16 Financial instruments Financial liabilities Payables Note 16 Financial assets that are either past due or impaired The Corporation holds mortgages over property relating Financial instruments (continued) to interest free loans and encumbrances against properties Credit risk relating to compensation payments recoverable but The credit risk relating to financial assets is the carrying does not hold any collateral as security nor credit amount of such assets, net of the allowance for enhancements relating to any other financial assets. doubtful debts. As at the reporting date, other than receivables, there is The Corporation does not have any significant credit risk no evidence to indicate that any other financial assets exposure to any single counter party or any groups of were impaired. counter parties having similar characteristics. The credit There are no financial assets that have had their terms risk relating to cash assets is limited as the counter party renegotiated so as to prevent them from being past due is a bank with high credit-ratings assigned by international or impaired, and these assets are stated at the carrying credit-rating agencies. amounts as indicated.

Ageing analysis of financial assets

NOT IMPAIRED CARRYING DUE OR PAST DUE BUT NOT IMPAIRED FINANCIAL AMOUNT IMPAIRED ASSETS LESS THAN 1-3 3-12 1-5 YEARS 1 MONTH MONTHS MONTHS 2013 2013 2013 2013 2013 2013 2013 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Receivables Debtors 16,810 8,732 6,415 812 501 350 543 Accrued revenue 11,982 11,982 - - - - - Compensation payments 12,637 12,637 - - - - - recoverable Operating lease receivables 154 154 - - - - - Loans 1,612 1,612 - - - - - Interest free loans 162 162 - - - - - Total 43,357 35,279 6,415 812 501 350 543

NOT IMPAIRED CARRYING DUE OR PAST DUE BUT NOT IMPAIRED FINANCIAL AMOUNT IMPAIRED ASSETS LESS THAN 1-3 3-12 1-5 YEARS 1 MONTH MONTHS MONTHS 2012 2012 2012 2012 2012 2012 2012 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Receivables Debtors 16,738 12,112 1,878 1,749 398 601 538 Accrued revenue 17,296 17,296 - - - - - Compensation payments 7,427 7,427 - - - - - recoverable Operating lease receivables 53 53 - - - - - Interest free loans 162 162 - - - - - Total 41,676 37,050 1,878 1,749 398 601 538

98 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013 ANNUAL REPORT 2012-13 99 - - - 1 1-5 1-5 2013 2012 $’000 $’000 YEARS YEARS - - 44 852 3-12 3-12 2013 2012 $’000 $’000 MONTHS MONTHS - - 86 1-3 1-3 126 2013 2012 $’000 $’000 MATURITY DATES MATURITY MATURITY DATES MATURITY MONTHS MONTHS LESS 2013 2012 LESS $’000 $’000 24,642 24,642 22,932 22,932 THAN 1 THAN 1 184,729 184,729 MONTH MONTH 130,962 130,962 2013 2012 $’000 $’000 24,642 22,932 184,860 131,940 AMOUNT AMOUNT NOMINAL NOMINAL 2013 2012 $’000 $’000 24,642 22,932 184,860 131,940 AMOUNT AMOUNT CARRYING CARRYING CARRYING CARRYING Creditors Payables Amounts payable to other government agencies Creditors Payables Amounts payable to other government agencies Maturity analysis of financial liabilities Maturity Liquidity risk under the Victorian operates The Corporation settling financial policy of Government fair payments resolution. of the date 30 days from within obligations cash flows by monitoring future Liquidity risk is managed cash assets holding of adequate and planning to ensure financial liabilities. to fund due and payable to liquidity risk is deemed exposure The Corporation’s and current insignificant based on prior periods data risk. assessment of Note 16 (continued) Financial instruments Note 16

Financial instruments (continued) Interest rate exposure

INTEREST RATE EXPOSURE WEIGHTED CARRYING FIXED INTEREST VARIABLE NON-INTEREST AVERAGE AMOUNT RATE INTEREST RATE BEARING EFFECTIVE INTEREST RATE 2013 2013 2013 2013 2013 % $’000 $’000 $’000 $’000 Cash and cash equivalents Cash at bank 2.75 6,047 - 6,047 - Cash on hand - 136 - - 136 Receivables Debtors - 16,810 - - 16,810 Accrued revenue - 11,982 - - 11,982 Compensation payments - 12,637 - - 12,637 recoverable Operating lease - 154 - - 154 receivables Loans 3.00 1,612 1,612 - - Interest free loans - 162 - - 162 Total 49,540 1,612 6,047 41,881

Payables Creditors - 131,940 - - 131,940 Victorian Government and government - 22,932 - - 22,932 agencies Total 154,872 - - 154,872

100 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013 ANNUAL REPORT

2012-13 101 -

53 133 162 2012 7,427 $’000 17,057 17,296 17,296 16,738 16,738 41,809 184,860 209,502 BEARING NON-INTEREST NON-INTEREST ------2012 $’000 3,555 3,555 3,555 3,555 VARIABLE VARIABLE INTEREST RATE ------INTEREST RATE EXPOSURE INTEREST RATE 2012 RATE RATE $’000 FIXED INTEREST

53 133 162 2012 7,427 $’000 3,555 3,555 17,296 17,296 16,738 16,738 24,642 45,364 184,860 209,502 AMOUNT CARRYING CARRYING ------% 3.42 2012 AVERAGE AVERAGE EFFECTIVE EFFECTIVE WEIGHTED INTEREST RATE Cash and cash equivalents bank Cash at Cash on hand Receivables loans free Interest Total Debtors payments Compensation recoverable lease Operating receivables Accrued revenue Accrued Total Victorian Government and government agencies Payables Creditors & accruals Creditors Interest rate exposure Interest rate Note 16 (continued) Financial instruments Note 16 Based on past and current assessment of economic outlook, it is deemed unnecessary for the Corporation Financial instruments (continued) to enter into any hedging arrangements to manage the risk. The Corporation’s exposure to foreign currency risk Market risk is disclosed in the table below. The Corporation’s exposure to market risks are primarily interest rate risk, with only minimal risk exposure to Sensitivity disclosure analysis foreign currency. Taking into account past performance, future expectations, economic forecasts and management’s Objectives, policies and processes used to manage each knowledge and experience of financial markets, the of these risks are disclosed in the paragraph’s below. Corporation considers the following movements are Interest rate risk ‘reasonably possible’ during the next 12 months: Exposure to interest rate risk is insignificant and may ¥¥ a parallel shift of +2% and -2% in market interest rates arise primarily through the Corporation’s cash accounts. (Australian Dollar) from year-end rates of 2.75% Minimisation of risk is achieved by the Corporation participating as a party to the State Purchasing Contract ¥¥ proportional exchange rate movement of -5% which is administered by the Victorian Department of (depreciation of the Australian Dollar) and +15% Treasury and Finance. The Corporation’s exposure to (appreciation of the Australian Dollar) against the interest rate risk is disclosed in the table below. foreign currency rate. The following table discloses the impact on net operating Foreign currency risk result and equity for each category of financial instrument The Corporation is exposed to minimal foreign currency held by the Corporation at year-end. risk relating to a foreign currency bank accounts. The Corporation manages its risk through continuous monitoring of movements in the relevant exchange rates and ensures availability of funds through rigorous cash flow planning and monitoring.

FOREIGN EXCHANGE RISK INTEREST RATE RISK -5% +15% -2% +2% CARRYING NET EQUITY NET EQUITY NET EQUITY NET EQUITY AMOUNT RESULT RESULT RESULT RESULT 2013 2013 2013 2013 2013 2013 2013 2013 2013 NOTES $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Financial assets Cash 5 6,183 10 10 (30) (30) (124) (124) 124 124 Receivables 6 42,814 ------Financial liabilities Payables 14 154,872 ------Total increase/ 10 10 (30) (30) (124) (124) 124 124 (decrease)

FOREIGN EXCHANGE RISK INTEREST RATE RISK -5% +15% -2% +2% CARRYING NET EQUITY NET EQUITY NET EQUITY NET EQUITY AMOUNT RESULT RESULT RESULT RESULT 2012 2012 2012 2012 2012 2012 2012 2012 2012 NOTES $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Financial assets Cash 5 3,688 9 9 (28) (28) (74) (74) 74 74 Receivables 6 41,137 ------Financial liabilities Payables 14 209,502 ------Total increase/ 9 9 (28) (28) (74) (74) 74 74 (decrease) 102 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013 ANNUAL REPORT

2012-13 103 2012 $370,000 to $380,000 $370,000 2013 $350,000 to $360,000 $350,000 REMUNERATION OF ACCOUNTABLE OFFICER OF ACCOUNTABLE REMUNERATION Total remuneration received or receivable during the year or receivable received remuneration Total the Corporation from Officer by the Accountable Mr G Liddle Total remuneration includes base remuneration, and bonus payments. includes base remuneration, remuneration Total Responsible persons Responsible persons responsible persons who were The names of as follows: during the year are the Corporation of Minister Responsible - 1 July 2012 Roads Minister for Mulder, The Hon Terry to 30 June 2013 in the financial reported to Ministers are Amounts relating and Cabinet Premier of the Department of statements Accountable Officer - 1 July 2012 to 30 June 2013 Mr G Liddle, Chief Executive Note 17 and person’s disclosure Responsible remuneration Note 18 The number of executives and the remuneration received or receivable during the reporting period is affected by Executive remuneration and other personnel the number and timing of executives retiring or resigning, the employment of executives and the payment of lump The number of executives (other than the Minister and sum leave entitlements. the Accountable Officer) and their total remuneration received or receivable is detailed in the first two columns of the table below in relevant income bands. The base remuneration of executives is shown in the third and fourth columns. Base remuneration includes salary, superannuation, and reportable fringe benefits. Lump sum performance bonus, leave entitlements and termination payments are excluded from the base remuneration. Total remuneration includes all benefits.

EXECUTIVE REMUNERATION TOTAL TOTAL BASE BASE 2013 2012 2013 2012

$100,000 - $109,999 - - 1 1 $110,000 - $119,999 - - - 1 $120,000 - $129,999 - - - 1 $130,000 - $139,999 - 1 - 1 $140,000 - $149,999 - 1 1 4 $150,000 - $159,999 - 3 4 3 $160,000 - $169,999 4 5 3 9 $170,000 - $179,999 5 8 10 21 $180,000 - $189,999 7 18 18 8 $190,000 - $199,999 18 8 8 3 $200,000 - $209,999 8 3 1 2 $210,000 - $219,999 3 6 3 1 $220,000 - $229,999 2 - - - $230,000 - $239,999 2 1 1 1 $240,000 - $249,999 - 2 1 3 $250,000 - $259,999 1 - 3 4 $260,000 - $269,999 - 3 3 - $270,000 - $279,999 4 4 1 1 $280,000 - $289,999 2 - 1 1 $290,000 - $299,999 1 - - - $300,000 - $309,999 2 2 - - Total number of executives 59 65 59 65 Total annualised employee equivalent 58.7 64.6 58.7 64.6 TOTAL $12,401,250 $12,984,872 $11,412,529 $11,902,153

104 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013 ANNUAL REPORT

2012-13 105 - - - - - 1 1 1 1 1 1 1 2 2 2 2 15 2012 TOTAL TOTAL $2,992,601 ------1 1 1 1 2 2 2 10 2013 TOTAL TOTAL $1,800,901 OTHER PERSONNEL EXPENSE (EXCLUDING GST) (EXCLUDING PERSONNEL EXPENSE OTHER $100,000 - $109,999 $100,000 - $119,999 $110,000 $120,000 - $129,999 $120,000 $130,000 - $139,999 $130,000 $140,000 - $149,999 $140,000 - $169,999 $160,000 - $179,999 $170,000 $180,000 - $189,999 $180,000 $210,000 - $219,999 $210,000 - $249,999 $240,000 - $259,999 $250,000 - $279,999 $270,000 - $299,999 $290,000 - $309,999 $300,000 - $319,999 $310,000 $330,000 - $339,999 $330,000 TOTAL Total number of other personnel number Total The number of contractors charged with significant charged contractors The number of in the table is disclosed management responsibilities are These contractors expense bands. below in relevant directly or controlling, planning, directing for responsible the entity’s activities. or indirectly, Note 18 and other personnel remuneration Executive (continued) Note 19 Auditor’s remuneration

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

2013 2012 $’000 $’000 Paid as at 30 June 229 169 Due and payable 159 198 TOTAL AUDITOR’S REMUNERATION 388 367

Note 20 Contingent assets and contingent liabilities

2013 2012 $’000 $’000 Contingent assets Recovery of legal expenses 6,000 6,000 Insurance claims pending for damage caused to Corporation assets 18,280 13,653

Insurance claims include estimated insurance recoveries associated with completed restoration works to 30 June 2013. These restoration works are ongoing and further insurance claims will be made upon incurring related expenditure. Total contingent assets 24,280 19,653

Contingent liabilities Contract claims against the Corporation for variations to contracts. In a number of cases, the Corporation is contesting 8,683 5,081 the associated claims. Legal claims brought against the Corporation by persons and entities who assert that they are entitled to be compensated for a loss (includes property acquisition 133,517 162,820 related claims). In a number of cases, the Corporation is contesting the associated claims. Total contingent liabilities 142,200 167,901 NET CONTINGENT LIABILITIES 117,920 148,248

106 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013 ANNUAL REPORT

2012-13 107 - - 2012 2012 $’000 $’000 13,168 13,168 72,514 72,514 99,107 99,107 59,166 59,166 327,399 327,399 663,675 663,675 131,680 131,680 991,074 991,074 144,848 144,848 1,235,029 1,235,029 1,090,182 1,090,182 2013 2013 $’000 $’000 14,551 14,551 71,941 71,941 20,752 20,752 75,489 75,489 93,452 93,452 18,580 18,580 95,760 95,760 719,413 719,413 791,354 995,734 995,734 605,209 605,209 185,800 185,800 204,380 204,380 TOTAL EXPENDITURE COMMITMENTS INCLUSIVE OF GST INCLUSIVE EXPENDITURE COMMITMENTS TOTAL TOTAL OTHER COMMITMENTS INCLUSIVE OF GST INCLUSIVE COMMITMENTS OTHER TOTAL GST Amount TOTAL OTHER EXPENDITURE COMMITMENTS EXCLUSIVE OF GST EXCLUSIVE COMMITMENTS EXPENDITURE OTHER TOTAL Later than five years Later Later than one year but not later than five years than one year but not later Later Within one year Other expenditure commitments goods and services the acquisition of for Other commitments as liabilities in but not recognised date balance at contracted set out below. sheet are the balance TOTAL CAPITAL EXPENDITURE COMMITMENTS INCLUSIVE OF GST OF INCLUSIVE EXPENDITURE COMMITMENTS CAPITAL TOTAL GST Amount TOTAL CAPITAL EXPENDITURE COMMITMENTS EXCLUSIVE OF GST EXCLUSIVE EXPENDITURE COMMITMENTS CAPITAL TOTAL Later than five years Later Later than one year but not later than five years than one year but not later Later Within one year Capital expenditure commitments Capital expenditure assets infrastructure of the construction Commitments for at plant and equipment contracted of and the acquisition as liabilities in the balance but not recognised date balance set out below. sheet are Note 21 expenditure Commitments for Note 22 Leases

Corporation as lessee - Operating leases Operating leases relate primarily to operational properties with lease terms of between 1 and 44 years. The Corporation does not have an option to purchase the leased asset at the expiry of the lease period.

2013 2012 $’000 $’000 Non-cancellable operating leases Not later than one year 21,093 17,752 Later than one year but not later than five years 42,588 36,391 Later than five years 59,124 56,084 TOTAL LEASE COMMITMENTS EXCLUSIVE OF GST 122,805 110,227 GST Amount 12,281 11,023 TOTAL LEASE COMMITMENTS INCLUSIVE OF GST 135,086 121,250

Corporation as lessor - Operating leases Operating leases relate primarily to properties acquired for roadworks with lease terms of between 1 and 40 years. The lessees do not have an option to purchase the leased assets at the expiry of the lease period.

2013 2012 $’000 $’000 Non-cancellable operating lease receivables Not later than one year 8,293 7,696 Later than one year but not later than five years 22,989 23,888 Later than five years 67,773 74,244 TOTAL LEASE RECEIVABLES 99,055 105,828

108 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013 ANNUAL REPORT

2012-13 109 2012 7,704 7,704 $’000 4,810 4,810 3,055 3,055 17,734 17,734 33,303 33,303 THE YEAR *CONTRIBUTIONS FOR FOR *CONTRIBUTIONS 2013 4,727 4,727 6,461 6,461 $’000 2,826 2,826 14,545 14,545 28,559 28,559 THE YEAR *CONTRIBUTIONS FOR FOR *CONTRIBUTIONS TOTAL SUPERANUATION CONTRIBUTIONS SUPERANUATION TOTAL * Relates to contributions paid during the year. to contributions * Relates 30 June 2013 outstanding as at no contributions were There and 30 June 2012. Defined benefit schemes schemes and new Revised Scheme Superannuation Transport schemes Accumulation VicSuper Scheme Other Superannuation contributions Superannuation and contributions schemes superannuation employee Details of set out below. are made by the Corporation Note 23 Note 24 Cash flow disclosures

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

2013 2012 $’000 $’000 Net result for the reporting period 13,411 499,464 Adjustments for non-cash revenue and expense items Non-cash movements Depreciation 545,356 489,688 Impairment of non-current assets 315 391 Assets given/(received) free of charge 60,198 (90,487) Net loss/(gain) on disposal of non-current assets (3,597) (9,962) Properties incorporated into roadworks 327 - Asset adjustments (1,297) (7,005)

Movements in assets and liabilities (Increase) decrease in receivables 29,456 (59,646) (Increase) decrease in prepayments 3,464 (3,090) Decrease (increase) in inventories 68 (167) Increase (decrease) in payables (53,247) (27,459) Increase (decrease) in provisions 48,634 (543) Increase (decrease) in prepaid revenue (2,766) 10,203 Net cash flows from operating activities 640,322 801,387

110 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013 ANNUAL REPORT

2012-13 111 - 2012 2012 $’000 $’000 8,205 8,205 9,560 9,560 31,677 31,677 31,677 31,677 (9,560) 27,942 27,942 67,935 67,935 31,677 31,677 27,942 27,942 42,399 42,399 (27,942) 994,722 994,722 334,466 334,466 338,201 338,201 338,200 338,200 346,405 346,405 1,132,998 1,132,998 1,105,056 1,105,056 - 2013 2013 $’000 $’000 8,493 8,493 9,560 9,560 (9,560) 78,103 78,103 28,965 28,965 44,858 44,858 30,869 30,869 30,869 30,869 28,965 28,965 30,869 30,869 338,201 338,201 340,103 340,103 (28,965) 340,104 340,104 348,596 348,596 1,160,870 1,160,870 1,312,796 1,312,796 1,283,831 1,283,831 Present value at the end of the year Present value at Deferred revenue revaluation increment revaluation revenue Deferred Concession notes revenue Concession Reconciliation of the present value of deferred CityLink revenue Reconciliation the year beginning of value at Present NET CASH FLOW Goods and Services Tax paid to the Australian Taxation Office paid to the Australian Taxation Tax Goods and Services Cash flows relating to concession notes to concession Cash flows relating collected Tax Goods and Services TOTAL ADMINISTERED LIABILITIES TOTAL Unclaimed monies administered on behalf of the Victorian Government the on behalf of Unclaimed monies administered Administered liabilities CityLink revenue deferred value Present TOTAL ADMINISTERED EXPENSE TOTAL Administered expense increment revaluation revenue deferred notes CityLink concession TOTAL ADMINISTERED INCOME TOTAL Total CityLink concession notes revenue Total CityLink concession notes revenue notes revenue Concession Total collections on behalf of the Victorian Government Total Other fees and permits and Other fees Driver licences Administered income of the Victorian Government Collections on behalf fees Registration Note 25 on behalf of the administered Transactions Victorian Government Note 25 Revenue sharing from the Monash CityLink West Gate Upgrade Transactions administered on behalf On 25 July 2006, CityLink Melbourne Limited (CML), of the Victorian Government (continued) Transurban Infrastructure Management Ltd (TIML) CityLink contingent assets and the Victorian Government entered into the M1 Corridor Redevelopment Deed. CityLink compensable enhancement claims Under the terms of this deed: The Melbourne CityLink Concession Deed contains compensable enhancement provisions that enable the ¥¥ The Victorian Government agreed to upgrade the State to claim 50 per cent of additional revenue derived Monash and West Gate Freeways, while CML agreed by CityLink Melbourne Limited (CML) as a result of certain to upgrade the Southern Link section of CityLink events that particularly benefit CityLink, including changes ¥¥ The Victorian Government will become entitled to the adjoining road network. to 50 per cent of the additional CityLink revenue Compensable enhancement claims have previously created by the Monash CityLink West Gate been lodged in respect of works for improving traffic upgrade after CML recovers its construction flows on the West Gate Freeway (between Lorimer and and additional operating costs relating to works Montague Streets), and in the vicinity of the intersection on the Southern Link of the Bulla Road and the Tullamarine Freeway. The claims ¥¥ The method used to calculate the additional were lodged on 20 May 2005 and 29 September 2006 CityLink revenue generated from the upgrade respectively, and are still outstanding. will be based on comparing actual CityLink revenue with agreed trends

¥¥ The calculation of the additional CityLink revenue is scheduled to take place on 30 June 2014.

112 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013 ANNUAL REPORT

2012-13 113 2012 $’000 42,553 42,553 23,349 23,349 581,265 581,265 1,705,893 1,705,893 2,353,060 2,353,060 2013 $’000 27,973 27,973 42,769 42,769 633,839 633,839 1,797,119 1,797,119 2,501,699 2,501,699 TOTAL COLLECTIONS ON BEHALF OF GOVERNMENT AGENCIES ON BEHALF OF GOVERNMENT COLLECTIONS TOTAL Federal interstate registrations Federal interstate Motorboat registrations and licences (Transport Safety Victoria) Safety (Transport and licences registrations Motorboat Stamp duty (State Revenue Office) Revenue Stamp duty (State Collections on behalf of government agencies Collections on behalf Commission) Accident stamp duty (Transport and related Charge Accident Transport Note 26 of government agencies Collections on behalf 114 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013 ANNUAL REPORT

2012-13 115 116 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013 ANNUAL REPORT

2012-13 117 6 41 47 55 55 55 53 53 52 52 52 54 43 43 42 56 56 63 49 117 8-31 PAGE 28-31 50-51 41-46 57-59 38-39 60-65

Whole of Government reporting on responsiveness to cultural diversity, women, to cultural diversity, on responsiveness Government reporting Whole of young people and Indigenous affairs Act 2004 the Road Management given under section 22 of Ministerial Directions Statement on occupational health and safety health and safety on occupational Statement performance environmental Summary of data by government departments environmental office-based of Reporting Policy the Victorian Industry Participation of on the implementation Disclosure disclosure data Workforce attestation Risk management compliance Significant changes in financial position during the year Significant changes in financial position Act 1982 Information of the Freedom of and operation Application the Building Act 1993 of provisions with building and maintenance Compliance neutrality with competitive on compliance Statement Act 2012 and Whistleblowers Disclosure the Protected of and operation Application Act 2001 Protection Government campaign advertising data workforce of Statement principles and conduct employment of Application for the year results financial Summary of against objectives and budgetary objectives and performance Operational Disclosure index Disclosure $10,000 over consultancies Details of $10,000 under consultancies Details of Manner of establishment and the relevant Minister establishment and the relevant Manner of Objectives, functions, powers and duties provided services and range of Nature structure Organisational attestation compliance Insurance Disclosure of major contracts of Disclosure SD 4.5.5 SD 4.5.5.1 FRD 12A Road Mgt Road Act 2004 FRD 25A FRD 29 Premier’s Circular 2006/01 FRD 22D FRD 24C FRD 22D FRD 22D FRD 22D FRD 22D FRD 22D FRD 22D FRD 22D FRD 22D FRD 22D FRD 22D FRD 22C FRD 22D FRD 10 FRD 22C FINANCIAL AND OTHER INFORMATION FINANCIAL AND OTHER FRD 22D AND STRUCTURE MANAGEMENT FRD 22D FRD 22D CHARTER AND PURPOSE FRD 22D Disclosure index Disclosure accordance in is prepared Annual Report VicRoads’ and ministerial Victorian legislation with relevant This index identifies VicRoads’ directions. requirements disclosure with statutory compliance Direction with Financial Reporting in accordance (FRD) 10. FINANCIAL STATEMENTS PAGE FINANCIAL STATEMENTS REQUIRED UNDER PART 7 OF THE FINANCIAL MANAGEMENT ACT 1994 SD 4.2 (a) Statement of Changes in Equity 69 SD4.2 (b) Comprehensive Operating Statement 67 SD 4.2 (b) Balance Sheet 68 SD 4.2 (b) Statement of cash flows 70 OTHER REQUIREMENTS UNDER STANDING DIRECTIONS 4.2 Compliance with Australian accounting standards and other authoritative 71 SD 4.2 (c) pronouncements SD 4.2 (c) Compliance with Ministerial Directions 71 SD 4.2 (d) Rounding of amounts 72 SD 4.2 (c) Accountable officer’s declaration 114 OTHER DISCLOSURES IN NOTES TO THE FINANCIAL STATEMENTS FRD 21B Responsible persons and executive officers and other personnel 103-105 FRD 102 Inventories 72-75, 83 FRD 103D Non-current physical assets 84-91 FRD 104 Foreign currency 78 FRD 106 Impairment of assets 75 FRD 109 Intangible assets 68, 92 FRD 110 Cash flow statements 70, 71 FRD118B Land under Declared Roads 74-75, 87 FRD 119 Contributions by owners 69, 71 FRD 121 Infrastructure assets 72-75, 89-91 LEGISLATION Freedom of Information Act 1982 50-51 Building Act 1983 52 Audit Act 1994 60-72 Whistleblowers Protection Act 2001 53 Protected Disclosure Act 2012 53 Victorian Industry Participation Policy Act 2003 52 Financial Management Act 1994 71

118 Published by: © Copyright State of Victoria 2013 VicRoads 60 Denmark Street This publication is copyright. No part may be reporduced by Kew Victoria 3101 any process except in accordance with the provisions of the September 2013 Copyright Act 1968.

Also published at vicroads.vic.gov.au International standards serial number (ISSN): 1832-0732

VicRoads publication identification number: 02916

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