TransAdelaide Annual Report 2007-08
2007 -08 TransAdelaide Annual Report 2007-08
Office Address Adelaide Railway Station North Terrace ADELAIDE SA 5000
Postal Address GPO Box 2351 ADELAIDE SA 5001
ABN 64 260 242 307
Phone 08 8218 2200
Facsimile 08 8218 2206
Website www.transadelaide.com.au
ISSN 1441-421X TransAdelaide Annual Report 2007-08
Letter of Transmittal
30 September 2008
The Hon. Patrick Conlon MP Minister for Transport Parliament House North Terrace ADELAIDE SA 5000
Dear Minister
On behalf of the Board and Management of TransAdelaide, I am pleased to present the TransAdelaide Annual Report for the year ended 30 June 2008.
The report documents the achievements and activities of TransAdelaide over the past twelve months and on behalf of TransAdelaide staff, I commend the report for presentation to Parliament.
The Annual Report complies with the requirements of the Public Corporations Act 1993 (SA), the TransAdelaide (Corporate Structure) Act 1998 (SA), the Public Sector Management Act 1995 (SA) and the Department of Premier and Cabinet Reporting Requirements.
Yours sincerely
Bob Stobbe CHIEF EXECUTIVE OFFICER
TransAdelaide Annual Report 2007-08
TABLE OF CONTENTS
TransAdelaide’s Vision ______1 Year in Review______2 Trams ______3 Trains ______3 Our Corporate Values ______5 Our Role: Adelaide’s Rail System______6 About TransAdelaide ______6 Providing Our Services ______7 Special Event Services and Promotions______8 Improving Our Service: Customer Satisfaction ______8 Communications ______9 Maintaining and Developing Rolling Stock, Infrastructure and Systems ______10 Rolling stock - trains ______10 Rolling stock - trams ______10 Maintenance______10 Centralised Train Control ______11 Stations and Stops ______11 Track and Signlas______11 Our People ______13 Learning and Development ______13 Occupational Health, Safety and Injury Management ______14 Injury Management and Prevention______15 Industrial Relations and Workplace Agreements ______15 Equity and Diversity in Employment ______15 Employee Statistics ______16 Our Commitment ______19 Rail Safety (Safety in the Public Sector 2007-2010) ______19 Multi-Agency Emergency Exercise ‘Jumbo 08’ ______20 National Rail Safety Awareness Week 23-29 July 2007 ______20 TransAdelaide Annual Report 2007-08
Education Programs ______20 Security ______20 The Environment ______21 Groundwater Remediation ______23 Promoting Independence – Disability Action Plan ______23 Responding to Our Community ______25 Corporate Governance ______26 TransAdelaide’s Board of Directors ______26 Strategic and Business Planning, Monitoring and Accountability ______29 Meetings of Directors ______29 Board Member Remuneration ______30 Board Member Benefits ______30 Risk Management ______30 Internal Control and Assurance______30 External Audit ______30 Contract & Procurement Management ______30 Consultancies ______31 Statutory Information______32 Freedom of Information Act – Information Statement ______32 Structure and Function of TransAdelaide ______32 Arrangements for Public Participation______32 Contact Arrangements ______32 Documents held by TransAdelaide available at www.transadelaide.com.au ___ 32 Whistleblower Legislation______32 Privacy Legislation ______33 Ethical Standards and Performance ______33 Fraud ______33 Third Party Claims______33 Overseas Travel ______33 Financial Report ______34 Directors’ Report ______34 Principal Activities ______34 Review of Operating Result______34 Significant Changes in the Economic Entity______34 Ministerial Control and Direction ______34 Payment of Accounts______35 Board Member’s Benefits______35 Board Member’s Interests in Contracts ______35 Indemnities and Insurance ______35 Contractual Arrangements ______35 New Contracts ______35 Continuation of Existing Contracts ______36 Income Statement______37 Balance Sheet ______39 Statement of Changes in Equity ______41 TransAdelaide Annual Report 2007-08
Cash Flow Statement ______42 Notes Index ______44 Certification of the Financial Report ______89 Independent Auditor’s Report______90
TransAdelaide Annual Report 2007-08
TransAdelaide’s Vision
We will continue to develop a customer focussed, integrated transport system providing frequent, rapid, reliable and safe services across greater Adelaide.
TransAdelaide will be a dynamic contributor to the State’s economic, social and environmental prosperity through increasing rail patronage to achieve South Australia’s Strategic Plan target (T3.6): to increase public transport to 10 percent of weekday passenger vehicle kilometres by 2018.
Page 1 TransAdelaide Annual Report 2007-08
Year in Review
I would first of all like to express my thanks to TransAdelaide’s management and staff for their effort and dedication over the past financial year. It has been a very eventful year with exciting progress but also one that provided many challenges.
There have been major developments for the tram and train networks. Two major developments over the past year have been the opening of the tram extension from Victoria Square to North Terrace adjacent to the University of South Australia’s City West Campus and the opening of the Oaklands Interchange on the Noarlunga Central line. The tramline extension was an immediate success with a significant surge in patronage. The free shuttle service has been popular giving workers, shoppers and tourists a convenient hop-on-hop-off light rail service through the city centre connecting North Terrace, Rundle Mall, the Central Market and Gouger Street from early morning to late at night seven days a week. Linking the tram to the Railway Station and providing connections to every bus that uses or crosses King William Street has added to the convenience and attractiveness of using Adelaide's public transport system.
The new $6.8m Oaklands Interchange reflects the importance of this location as a public transport hub with a bus interchange, 120 metre long platforms, and modern facilities including CCTV, gated pedestrian crossings and connectivity to surrounding destinations of Westfield Marion.
The previous year’s announcement of the re-location of the Adelaide Rail Car Depot to enable the establishment of a new hospital and the Rail Revitalisation Project to concrete re-sleeper the Belair and Noarlunga lines have been further enhanced by the recent State Budget announcement of the largest single investment ever by a State Government in Adelaide’s public transport network. The concrete re-sleepering project has been extended to the entire network. All but the Belair line will be electrified; this year’s tramline extension will be further expanded to the Entertainment Centre, West Lakes, Port Adelaide and Semaphore. New trams, electric trains and hybrids will be purchased and the refurbishment program for the 3000 series railcars is being accelerated.
$2 billion will be invested over the next decade to deliver initiatives to transform TransAdelaide’s network into a vibrant state-of-the-art system providing faster, cleaner, more frequent and efficient services for commuters.
There were significant changes in personnel starting with the resignation of General Manager, Bill Watson. I thank Bill for his contribution to TransAdelaide. Bill was an excellent General Manager and a valued colleague who laid a lot of the groundwork that will see TransAdelaide move forward through, what will continue to be challenging, but very exciting times.
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There were also a number of Board changes. Libby Kosmala and Frances Magill reached the end of their board appointments and were replaced by Rod Hook, Margaret Starrs and John Hearsch in February. I thank Libby and Frances for their vital contributions and welcome Rod, Margaret and John who have brought a wealth of project and rail industry experience to the table. I look forward to working with TransAdelaide’s newly appointed General Manager, Bob Stobbe who is due to start in September 2008. I would also particularly like to thank Executive Manager Planning and Development, Randall Barry who has been Acting General Manager since February. Randall has done a remarkable job. He did not simply assume a caretaking role but provided inspirational leadership during a challenging period as complex planning commenced for many vital projects.
Trams
The tram network once again showed an increase in patronage for the 12 month period. The new tramline extension proved very popular, with the free shuttle service carrying significantly more passengers than the free bee-line bus service it replaced.
We recognise the fantastic success and popularity of the extension and the effect this had on system capacity. The acquisition of additional trams outlined as part of the recent State Budget’s $2 billion public transport program will greatly boost capacity particularly during morning and evening peak periods.
Trains
The train system recorded a 0.3 percent decline in patronage over the past year. While peak periods had increased demand, interpeak period patronage declined. On-time running continues to be a challenge due to speed restrictions imposed on stretches of track. I am very pleased to report this situation is being addressed by major, transformational investments announced in the 2008-09 State Budget as well as an increased maintenance effort on existing tracks.
The April introduction of a new timetable on the Gawler line was generally well received by commuters. The timetable introduced what is referred to as a ‘skip – stop’ pattern in which all services stop at designated major stations with minor stations receiving regular, but less frequent services. It is much simpler and provides many service and operating advantages over what had been operating previously. There were some concerns from people travelling to some stations in the counter-peak direction; however, adjustments were made where possible and services continue to be monitored for further adjustments.
This past year saw the recommissioning of the remaining four refurbished 2000 series railcars bringing a welcome addition to the train fleet. Other noteworthy maintenance work has been the initiation of a window replacement
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project for the 3000/3100 series railcars. The state of these train windows had been a concern and one we have been keen to address. The window replacement project is expected to be completed by the end of 2008 and is the first element of a $37m project to refurbish the 70 3000/3100 series railcars.
Safety and Customer Service
Public and employee safety continues to be a primary focus. We want the pursuit of an excellent safety record to not just be a response to the requirements of the Rail Safety and Occupational Health and Safety Acts but to permeate all of our activities and be at the core of our corporate culture. Such a culture will encourage employees to be proactive and committed to the safety and security of our passengers as well as other members of staff. Such an attitude will manifest itself in other ways, most notably customer service which is another area in which we continue to improve.
The Future
The demand for public transport rail services will continue to rise as economic and environmental conditions make commuting by rail even more attractive. Recognition of rail’s vital role as the spine of our integrated public transport system promises an exciting future for TransAdelaide which will, in turn, greatly benefit the South Australian community. Upgrading of track, rail electrification, tramline extensions and investment in new trains, trams and hybrids will assist to provide a modern, clean and efficient rail network.
Investment has not only been committed to infrastructure. We are also investing in our people with even greater emphasis on staff training and development.
Conclusion
We remain committed to realising our vision to develop
‘A customer focussed integrated transport system that provides frequent, rapid, reliable and safe services across greater Adelaide’.
I would like to thank all of those in TransAdelaide who, as a team, have made their contribution to our successes over the past year. The future is very bright yet there are many challenges along the way. Major rail infrastructure development is inherently disruptive, but by remaining focussed and with the work of many good people we will continue to provide transport services for our community as we build a rail network of which all South Australians can be proud.
Virginia Hickey Chair
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Our Corporate Values
• Safety and security for the public and our people;
• Building a successful organisation with foundations of trust and respect for the individual;
• Customer service of the highest order;
• Financial responsibility supported by good governance and ethical conduct;
• Awareness of our responsibilities to the community;
• Encouraging innovation and creativity;
• Sustainability by caring for the environment.
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Our Role: Adelaide’s Rail System
TransAdelaide’s rail network is the spine of Adelaide’s integrated public transport system. It connects people from Gawler and beyond in the north, from Noarlunga and beyond in the south, from Belair in the hills, from Outer Harbor and Glenelg. These rail lines all radiate from Adelaide’s Central Business District and are fed by bus services from surrounding suburbs.
This past year has seen the light rail network extended with the new tramline now running through the city, past the Adelaide Railway Station to City West adjacent to the University of South Australia. The extension has proven to be very popular with commuters and traders alike given it connects the precincts of North Terrace, Rundle Mall, the Central Market and Gouger Street. Most importantly it links the tram network with the train system as well as providing connections with every bus service that crosses or travels along King William Street.
Public Transport has a vital role in the life of any city. It is vital to the way a city functions. It connects: providing the link from peoples’ homes to their work, education, sport and recreation. Public transport gives people access to all that their city offers.
TransAdelaide’s train and tram services provide affordable transport for thousands of commuters in a time of rising fuel costs. The benefits are not restricted to cost savings for individuals. TransAdelaide’s rail systems are also far more energy efficient than private motor vehicles and therefore are environmentally smart. By reducing the numbers of private vehicles that would otherwise be on the road our rail system puts a brake on the growing congestion of our urban roads.
TransAdelaide is entering a very exciting, yet challenging phase of redevelopment, expansion and upgrading to meet the challenges of the 21 st Century.
About TransAdelaide TransAdelaide has been in its present form since corporatisation by the State Government via the TransAdelaide (Corporate Structure) Act 1998 and the awarding of contracts for the operating of Metroticket Bus Services to private operators in 2000. TransAdelaide has an interest in one bus service via a contract for routes in the Adelaide Hills region. These services are provided under a joint venture arrangement between TransAdelaide and Australian Transport Enterprises Pty Ltd through a jointly owned company, TransitPlus Pty Ltd.
As a statutory authority, TransAdelaide reports to the Minister for Transport, Hon. Patrick Conlon MP and provides its services under a contract with the Department for Transport, Energy and Infrastructure’s Public Transport Division. This contract operates on a key performance indicator basis with rigorous service requirements that attract financial penalties when not met. The relationship between TransAdelaide and the Department has evolved following the transfer of TransAdelaide’s assets to the Minister on 1 January 2008 and their integration into the Department. TransAdelaide’s role as the operator of rail services remains whilst the Department is now responsible for asset planning, improvement, replacement and reporting. TransAdelaide’s status as an accredited rail operator continues under the Rail Safety Act 2007.
TransAdelaide has an important role to play in achieving several targets from South Australia’s Strategic Plan. The primary target is within Objective 3: Attaining
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Sustainability. Specifically it is to contribute to the achievement of T3.6 which is to increase the use of public transport to 10% of metropolitan weekday passenger vehicle kilometres by 2018. But TransAdelaide’s contribution to achievement of South Australia’s Strategic Plan objectives range far wider than this as we have significant impact on achieving many other goals set out in the Plan. TransAdelaide makes a real contribution to the quality of life for the people of Adelaide and its surrounds.
Providing Our Services
TransAdelaide operates 99 railcars and 16 trams on 140 route kilometres of track to provide transport services to a growing number of South Australians.
Over 14 million passenger trips were recorded for the 2007-08 year representing an increase in patronage of 1.22 percent over the previous year. Once again this was made up of a significant rise in tram patronage of 8.7 percent compensating for another small decline in the number of train passengers of 0.3 percent. The modest decline in overall train patronage has largely been driven by reduced interpeak period numbers.
The new timetable introduced on the Gawler line at the end of April was generally well received although some people, in particular those travelling in the counter peak direction were initially concerned with a reduction in services to enable those in the high volume peak direction to be increased. Some adjustments have been made to minimise inconvenience and this continues to be monitored. The new timetable has increased service frequency which is also much more regular, and the average trip duration has been reduced to benefit the majority of people. It also made allowance for the Mawson Interchange and changing commuting patterns brought about by development along the line. When track upgrades are complete and speed restrictions lifted, timetable operation will be further improved. New timetables will eventually be adopted across the entire network as re-railing of lines is completed.
Patronage for all rail lines is given in the table below:
Train Lines 2006 – 07 2007 - 08 Change Percentage Outer Harbor 2 513 389 2 477 196 -36 193 -1.4% Gawler 3 836 684 3 844 992 8 308 0.2% Belair 1 103 504 1 121 517 18 013 1.6% Noarlunga 4 164 363 4 138 297 -26 066 -0.6%
Tram patronage broke through 2.5 million over the past year with an 8.7 percent increase. The tramline extension from Victoria Square through to the University of South Australia’s City West campus proved to be an immediate success as shown by a corresponding spike in patronage from its opening on Monday 15 October. The free tram shuttle service is carrying 20 percent more passengers per day compared to the previous Bee-line bus service. It has proven to be very popular with commuters and traders alike by connecting the precincts of North Terrace, Rundle Mall, the Central Market and Gouger Street whilst linking the tram to the Railway Station as well as providing connections with every bus service that crosses or utilises King William Street. The extension is the first stage to integrate the light rail tram system into the wider metropolitan network.
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14 154 000 Trips Were Made on TransAdelaide’s Services during 2007/08
+ - 2003-04 2004-05 2005-06 2006-07 2007-08 % Train 11.19m 11.17m 11.71m 11.62m 11.582m -0.3 Tram 2.16m 2.1m 2.07m 2.36m 2.572m +8.7 TOTAL 13.35m 13.27m 13.78m 13.98m 14.154m +1.2
TransAdelaide’s performance is not simply judged on patronage figures. Our contract with the Public Transport Division of the Department for Transport, Energy and Infrastructure has very strict performance-based requirements.
This past financial year has seen both tram and train operations consistently achieve targets in ten of the twelve KPIs, however fare evasion levels and on time running have proven challenging. Train station enforcement “closures”, inspections at the Adelaide Railway Station and roving teams of Passenger Service Assistants and Inspectors are utilised to detect fare evaders. On time running is being addressed by a major investment in re-sleepering and an increased maintenance effort on existing tracks.
Special Event Services and Promotions TransAdelaide plays an important role providing transport for people to attend the many special events enjoyed by people in Adelaide. These special events include regulars such as the Christmas Pageant, Carols by Candlelight, Big Day Out Concert, Adelaide Festival and Fringe. There are also many, more ad hoc events such as cricket tests and one day matches as well as other sport and leisure events. Providing special event services essentially involves substituting weekday peak period service levels for otherwise quiet weekend schedules for the duration of the event.
More elaborate solutions are required for the Adelaide Show week, the Adelaide Cup and the City-Bay Fun Run which use the otherwise closed Showgrounds train station and Morphettville tram stop. The Adelaide Show shuttle service is particularly popular and catered for over 60,000 passengers travelling on trains that ran every 15 minutes. Thirty four additional tram trips were provided for the 2007 City-Bay Fun Run.
Providing special services at these times is seen as a great opportunity for TransAdelaide. The fact that people who use these special services are often not regular users of public transport means that we are able to demonstrate the benefits of our service.
Improving Our Service: Customer Satisfaction TransAdelaide continuously strives to improve its customer service. The training department focuses significant resources on customer relations training to enable front-line staff to professionally engage with people.
On-time running for both trams and trains was most important to our customers. This has been challenging over the past year. In the case of the train system this is largely
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due to having track under speed restrictions. The Rail Revitalisation Project to concrete re-sleeper the entire network will create some short term disruption as sections of track are upgraded but, on completion, the anticipated improvement to services will be significant. Tram on-time running has been impacted by the opening of the City West extension. This has been due to a combination of the time taken to travel through the Central Business District and additional time taken for large numbers of passengers to board and alight. Planned acquisition of new trams and subsequent new timetabling will return on-time running to pre extension levels.
Communications Communication with customers at station platforms are to be greatly improved following the successful testing of a ‘live/real-time’ digital audio system at Blackwood station. Funding has been made available to install the same system at all 84 suburban railway stations. This will enable high quality amplified messages to be broadcast to supplement the voice enunciators.
Reaching our customers with information regarding any planned changes in service, or advising of upcoming disruptions, is vital to enable people to make the necessary adjustments to the routines that enable them to go about their daily business. We follow a set procedure to ensure maximum reach within an affected line’s customer catchment area:
• Advertisements in the Advertiser and Messenger newspapers in affected areas; • Temporary timetables and passenger information leaflets distributed on services that will be affected; • Regular pre-announcements at affected stations; • Signage at all access points of affected stations; • Information displayed on Passenger Information Screens at Adelaide Railway Station; • Media releases to print and electronic media; • Notices hand delivered to businesses in the immediate area of affected stations.
The effectiveness of customer information is continually reviewed. New public information monitors have been installed at the Adelaide Railway Station to display service announcements with more to be installed at other locations during the coming year. In addition, we are continuing to roll out our Passenger Information monitors to suburban railway stations.
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Maintaining and Developing Rolling Stock, Infrastructure and Systems
TransAdelaide is a complex organisation with a highly skilled and committed team dedicated to the maintenance of our trains and trams and the maintenance and development of stations, track and the infrastructure required for the rail network. We have engineers from many disciplines with project managers and their teams of specialised trades people and workers as well as over 500 dedicated volunteers from the Adopt-a-Station program all making their contribution.
Rolling stock - trains Bombardier has commenced its third of the ten year maintenance contract for the train fleet. It has been a productive year with refurbishment completed on the final four (of six) previously retired 2000 series railcars. The recommissioning and return to service of these railcars brings the total train fleet to 99. The 2000/2100 series railcars have all been upgraded to comply with requirements of the Disability Discrimination Act (DDA) 1992. DDA compliance requires space for mobility aids such as wheelchairs, appropriate handrails, audible announcements to supplement visual displays and so on (see ‘Our Commitment’ pp 19).
A problem plaguing the 3000/3100 series railcars has been the poor condition of the windows. TransAdelaide has been well aware of this issue and the frustration caused to people by poor visibility from railcars. Historically, all railcars had glass windows that were unfortunately targeted by vandals, proving to be a significant danger to passengers. New safety glass was fitted and successfully trialled to eight 3000/3100 class railcars in late 2007. As a result, an accelerated window program for the remainder of the fleet will be completed by late 2008.
Work has also commenced on the major refurbishment program of the 3000/3100 railcar fleet which is planned to be completed over the next three years. The refurbishment is focussed on the appearance and amenity of the railcars and will not impinge on mechanical aspects and the future conversion to electric running. It will improve passenger safety, achieve DDA compliance and reduce station dwell times during peak services. The overall objective is to provide a safer, modern and refreshed environment for the passenger .
Rolling stock - trams All eleven Flexity trams are now in service following the commissioning of the final two this past year. The new fleet has been very well received. Due to the success of the tram line extension, additional rolling stock is being sought.
The five remaining H Class trams continue to be used when possible on weekends and public holidays in recognition of their heritage value and tourist appeal.
Maintenance Aside from programmed maintenance, several specialised activities were undertaken to improve passenger safety and TransAdelaide’s “on-time running” performance. The Maintenance group assisted with the Switch Bearer Replacement program in the Adelaide Yard and performed other track upgrades to reduce speed restrictions across the network, including:
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• Ballast replenishment and track tamping; • Re-sleepering and re-timbering; and • Re-gauging of switches.
Centralised Train Control The $ 9.7 million replacement of the Centralised Train Control (CTC) system was completed on 30 June, 2008. While the new system is functionally similar, it replaces obsolete hardware that was becoming increasingly difficult to source spare parts for in the event of failure. Performance results have been encouraging.
Stations and Stops The $6.8m Oaklands Interchange was officially opened on the Queens Birthday long weekend Monday 9 June 2008. It reflects the importance of this location as a public transport hub with a bus interchange, 120 metre long platforms, and modern facilities including Closed Circuit Television (CCTV), gated pedestrian crossings and connectivity to surrounding destinations of Westfield Marion. Oaklands, along with the Mawson Lakes Interchange, which opened last year, are the first railway stations to be opened over the past 30 years and are the precursors of a new era of development of South Australia’s rail system.
Station upgrades largely consisted of projects aimed at improving passenger accessibility and compliance with the Disability Discrimination Act (DDA). Refer to the ‘Our Commitment’ section for a full listing of all DDA projects completed. The heritage listed Belair station building was also restored after it was badly damaged by fire in 2003.
The Pedestrian Safety Program is ongoing, with further automated pedestrian gates installed at Woodville, Smithfield and the new Oaklands Interchange. The last of the gates will be installed at Parafield Station next financial year. The first ‘Caution More Than One Train Coming’ warning signs were installed at Emerson Station, with the remaining 18 locations to follow this financial year. The University of South Australia’s Behavioural Science Department has been involved in the project and is conducting a study to assess the signs’ effectiveness in improving pedestrian attentiveness.
Security is a continuing priority and TransAdelaide is committed to the safety of its passengers. Applied technology plays an important role in enhancing security and, as such, closed circuit television monitors were installed at Adelaide Railway Station, Noarlunga Centre and Salisbury Interchange. Similar upgrades were also made at the Train Control Centre, Glengowrie Tram Centre, and Belair and Port Stanvac train stabling yards.
Track and Signals The Glenelg tramline extension has been the most significant infrastructure project over this reporting period. Lead responsibility for the project has been held by the Department for Transport, Energy and Infrastructure’s Office for Major Projects and Infrastructure, however TransAdelaide provided extensive technical support. New overhead infrastructure, switches and signalling were required along the route as well as a new converter station at City West. As well, work began on the final stage of the re-railing project.
Other major track upgrades include the switch bearer replacement project within the Adelaide Rail Yards and the ongoing re-sleepering project aimed at replacing aged sleepers on the Gawler line. The upgrades have enabled several speed restrictions to be lifted which has improved “on-time running” performance.
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The Rail Revitalisation Project announced last year and extended to the entire network by the recent State Budget announcement is progressing well through the planning stages with work due to commence on the Belair line in 2009.
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Our People
TransAdelaide is a very diverse organisation. We have over six hundred and thirty staff throughout the organisation fulfilling roles ranging from management and administration, people who are highly skilled in very specialised technology applications, information systems, civil, signal and mechanical engineering. There are train drivers and tram operators, passenger service assistants and other customer service people along with engineers from a range of disciplines and people with the trade skills required for our construction and maintenance programs.
Recruitment and retention of the right people for TransAdelaide is critical to our success. A workplace planning pilot project focussing on Infrastructure Service employees has been conducted with the assistance of Locher HR consultants and its recommendations and action plan will be implemented as the model for all business units.
We are responding to the implications of an ageing workforce by focussing on succession planning as part of our business cycle. This features mentoring, extended placements in higher roles along with recruitment and retention strategies that have included extending the number of under/graduate placements in engineering and developing links with trade schools to provide school-based apprenticeships for engineering and other disciplines. To promote the range of roles that are available within TransAdelaide, we have increased our presence through presentations and attendance at recruitment fairs in schools and universities.
Learning and Development Developing our people to enable us to continuously improve our operations and meet the significant challenge of providing rail services into the twenty-first century remains a key priority.
The opening of a new Learning Centre for TransAdelaide in June 2008 reflects the importance placed on learning and development activities as pivotal in ensuring employees have the necessary skills and capability to deliver those improving services. The Centre, at our Mile End Depot is a purpose built, fully equipped modern training facility and an important expression of TransAdelaide’s investment and commitment to continual learning needed to develop high performing teams.
The review and improvement of our programs supports the maintenance of our status as a Registered Training Organisation (RTO) which is assessed under the Australian Quality Training Framework and established best practice guidelines. As such, TransAdelaide is able to issue qualifications accredited to the Australian Framework for Certificate I to IV in Transport and Distribution in Rail Operations, Administration and Infrastructure. A new transport training package from the Transport and Logistic Industry Skill Council has also been introduced this past year following the successful extension of our RTO registration.
Great effort is taken to ensure that our framework strategically links employees’ learning and development needs with present and future business requirements. As such, the content of each training program is developed with input from Business Unit Managers who have identified and continue to assess the core skills that are fundamental to us achieving our business objectives. The framework also offers advice on individual support programs such as coaching and mentoring, study assistance and personal development programs.
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Specialised training has been provided in areas of leadership and management skills. There has also been emphasis on continued development of a safety and service culture as well as improving consultation and communication within and between workgroups.
All learning and development records are now centrally managed following this year’s introduction of a system which is integrated with the Alesco Training System.
Great emphasis continues to be placed on safety. The final module of the Safety Science Program was delivered in 2007 to complete the course for all TransAdelaide’s managers, supervisors and safety representatives. Developed and delivered by Dr Matthew Thomas and his colleagues from the Human Factors and Safety Management Systems team at the University of South Australia, the Safety Science program has proven a valuable element of our safety culture development strategy.
Another very important safety initiative undertaken over the past year has been the development and running of in-house Rail Safety and Environmental Awareness training for contractors engaged in works within the rail corridor. Being in-house enables this training to be given on short notice. Providing this training will reduce inherent risk for contractors even though they are, and will continue to be accompanied by Track Protectors.
TransAdelaide is committed to South Australia’s Strategic Plan Target 2.11: Greater Safety at Work as well as Safety in the Public Sector 2007-2010. This is reflected by the resources devoted to developing an organisational safety culture, and the commitment to policy and procedures that ensure safe workplaces for our employees and contractors; supported by extensive training programs as outlined above.
Occupational Health, Safety and Injury Management The following tables summarise TransAdelaide’s Occupational Health and Safety performance over the past reporting year:
Number of notifiable occurrences pursuant to OHS&W Regulations Division 6.6 2 Number of notifiable injuries pursuant to OHS&W Regulations Division 6.6 2 Number of notices served pursuant to OHS&W Act s35, s39 and s40 (default, 1 improvement and prohibition notices)
TransAdelaide Gross Workers Compensation 2006-07 Variation ($m) + % Change Expenditure 2007-08 ($m) ($m) (-) + (-) Income Maintenance 307 773 334 030 (26 257) (7.86) Lump Sum Settlements 184 442 654 069 (469 627) (71.8) Redemptions – s42 Lump Sum Settlements Permanent Disability – 173 893 171 837 2 056 1.2 s43 Medical/Hospital Costs 208 134 253 743 (45 549) (17.95) combined Other 24 652 255 951 (231 299) (90.37) Total Claims Expenditure 898 954 1 669 630 (770 676) (46.16)
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Meeting Safety Performance Targets Base: Performance: 12 months to end of June 2008 Final Target 2005-06 Number Notional Quarterly Variation Actual Number or % or % Target * + (-) 1 Workplace fatalities 0 0 0 0 0 2 New Workplace 153 110 138 (28) 122 Injury Claims 3 New Workplace Injury Claims 172.2 119.3 155 (35.7) 137.8 Frequency Rate 4 Lost Time Injury Frequency 85.6 57.5 77 (19.5) 68.4 Rate 5 New Psychological Injury 36 31 33 (2) 29 Claims 6 Rehabilitation and Return to
Work 6a Early Assessment within 2 79.61% 26.36% 80% (53.6%) 80% or more days 6b Early intervention within 5 95.83% 20% 80% (60%) 80% or more days 6c RTW within 5 business days 83% 82% 75% 7% 75% or more 7 Claim Determination 7a Claims determined in 10 78.5% 91.5% 75% 16.5% 75% or more business days 7b Claims determined after 3 7.4% 1.7% 3% 1.3% 3% or less months 8 Income Maintenance
Payments for Recent Injuries 2006/07 Injuries Below previous 2 _ 136 287 141 079 (4792) ($ at 24 months development) years average 2007/08 Injuries ($ at 12 months Below previous 2 - 123 927 84 007 39 920 development) years average Note: TransAdelaide has adopted the whole of government safety initiative Safety in the Public Sector (SIPS) 2007-2010 . The SIPS targets are incorporated into TransAdelaide’s Strategic Plan and are a key element of TransAdelaide’s safety improvement monitoring program. See ‘Our Commitment’ section p26. *Target figure provided in table is for 4 th Quarter 2007-08.
Injury Management and Prevention TransAdelaide is self-insured for the purposes of managing workers rehabilitation and compensation. To maintain self insured status TransAdelaide is required to demonstrate compliance with WorkCover Performance Standards that are due for the next periodic evaluation in 2009. We continue to develop improved procedures for supporting workers injured on the job. These procedures focus on early intervention and are supported by an education program provided to all our employees.
Industrial Relations and Workplace Agreements New workplace agreements are in place for employees from the Infrastructure and Train Operations groups whilst negotiations continue for Tram Operations and Salaried Officers. Disruptions to train services were experienced on three occasions for meetings (20 December 2007, 3 and 15 January 2008) of four hours duration each.
Equity and Diversity in Employment Human resource policies and procedures will be reviewed and revised on a continuing basis to address access, equity and diversity issues as part of our organisation-wide Disability Action Plan. TransAdelaide is an equal opportunity employer.
Page 15 TransAdelaide Annual Report 2007-08
Employee Statistics The following tables provide a comprehensive and detailed profile of TransAdelaide’s staff for the 2007-08 period:
Total Number of Employees Gender % Persons % FTEs Persons 639 Male 87.16 87.33 FTEs 635.6 Female 12.83 12.67
Number of Persons During the 07-08 Financial Year Separated from TransAdelaide 42 Recruited to TransAdelaide 117
Number of Persons at 30 June 2008 On leave without pay 1
Number of Employees By Salary Bracket Salary Bracket Male Female Total $0-$46,399 228 35 263 $46,400-$58,999 96 23 119 $59,000-$75,499 196 16 212 $75,500-$94,999 27 1 28 $95,000+ 15 2 17 TOTAL 562 77 639
Status of Employees in Current Position Short-term Long-term Other FTEs Ongoing Total Contract Contract (Casual) Male 525 9.6 16.5 4 555.08 Female 69.5 3 6 2 80.52 TOTAL 594.5 12.6 22.5 6 635.6 Short-term Long-term Other PERSONS Ongoing Total Contract Contract (Casual) Male 525 11 17 4 557 Female 71 3 6 2 82 TOTAL 596 14 23 6 639
Page 16 TransAdelaide Annual Report 2007-08
Executives by Gender, Classification and Status Ongoing Contract Contract Other (Casual) Total Tenured Untenured Classification Male Female Male Female Male Female Male Female Male Female GRPM 0 0 2 0 3 2 0 0 5 2 Total 0 0 2 0 3 2 0 0 5 2
Average Days Leave per Full Time Equivalent Employee Leave Type 2004-05 2005-06 2006-07 2007-08 Sick Leave 9.4 9.0 8.4 7.3 Family Carer’s Leave 0.3 0.4 0.4 0.4 Miscellaneous Special 0.4 0.4 0.2 0.1 Leave
Number of Employees by Age Bracket by Gender Age Bracket Male Female Total % of Total Workforce Benchmark* 15-19 3 1 4 0.63 6.7 20-24 19 4 23 3.60 10.5 25-29 17 9 26 4.07 10.2 30-34 23 9 32 5.01 9.9 35-39 60 6 66 10.33 11.2 40-44 93 8 101 15.81 11.9 45-49 111 17 128 20.03 12.3 50-54 106 10 116 18.15 11.3 55-59 76 8 84 13.15 8.6 60-64 49 4 53 8.29 5.0 65+ 5 1 6 0.94 2.4 TOTAL 562 77 639 100.0 100.0 * Source: Australian Bureau of Statistics Australian Demographic Statistics, Labour Force Status (ST LM8) by sex, age, state, marital staus – employed – total from Feb78 Supertable, South Australia at March 2007.
Aboriginal and/or Torres Strait Islander Employees Male Female Total % of TA Target* 0 0 0 0 2% * Target from South Australia’s Strategic Plan
Page 17 TransAdelaide Annual Report 2007-08
Cultural and Linguistic Diversity Male Female Total % TA % SA Community* # of employees born overseas 107 21 128 20.03 20% # of employees who speak language(s) other than English at 58 12 70 10.95 15.5% home * Benchmarks from ABS Publication Basic Community Profile (SA) Cat No. 2001.0
Number of Employees With Ongoing Disabilities Requiring Workplace Adaptation Male Female Total % TransAdelaide employees 12 4 16 2.5
Documented Review of Individual Performance Management Employees with: % of Total Workforce A review within the past 12 months 43 A review older than 12 months 57 No review 0
Leadership and Management Training Reporting % of Total Salary Training and Development Total Cost Expenditure Training and Development Expenditure $630 000 2.62% Total leadership and management $190 000 4.20% development expenditure
Page 18 TransAdelaide Annual Report 2007-08
Our Commitment
TransAdelaide is committed to providing a safe, reliable rail system for the people of greater Adelaide.
Rail Safety (Safety in the Public Sector 2007-2010) TransAdelaide is committed to providing a safe environment for our staff, passengers and the South Australian community in general. The implementation phase of our new on-line Risk Management System is complete and is proving to be a key element of our commitment to the South Australian Government’s ‘Safety in the Public Sector 2007-2010’ strategy.
It encapsulates our risk management processes, captures information and provides an accessible resource for managers and staff to identify and analyse risk, in all its forms, whilst adding to our knowledge database. It is a rigorous system which complies with Standards Australia and New Zealand Risk Management Standard AS/NZ 4360:2004.
TransAdelaide is moving forward with our nurturing and development of a safety and risk management culture. It is understood that risk management is a key business process and that sound and effective implementation of risk management is an important part of best practice at a corporate and strategic level. It is also an important means to improve our operational activities. It requires rigorous thinking, forward thinking and commitment to constant improvement.
Our Safety Science course, designed and delivered by the University of South Australia, has proven to be an overwhelming success with the final review session held in November. This formal review was to assess how the course is being translated into action in the workplace to foster our safety culture and performance. The participants, made up of 93 Occupational Health and Safety Representatives, union delegates, supervisors and managers to satisfactorily complete the program have been awarded certificates which also provide credit for one elective course towards the Graduate Certificate/Diploma/Masters of Human Factors and Safety Management Systems. The course will be the foundation of further leadership development across TransAdelaide. It has also been an integral component of our strategy to achieve a resilient safety culture and further demonstrates the importance given to satisfying the four key elements of the South Australian Government’s ‘Safety in the Public Sector 2007-2010’ strategy:
• Sustainable Commitment • Financial Accountability • Risk Management • Rigorous Evaluation
Stringent standards and requirements contained in the Rail Safety Act 2007 are rigorously administered by South Australia’s Rail Regulator. TransAdelaide provides and ensures the means for staff to make direct reports with complete confidentiality to the Rail Safety Regulator.
Page 19 TransAdelaide Annual Report 2007-08
Multi-Agency Emergency Exercise ‘Jumbo 08’ Held in May, Jumbo 08 has been recognised as a very worthwhile undertaking. The emergency scenario was a level crossing collision between a train with 40 passengers and a van with four. Participating organisations were the South Australia Police, the Metropolitan Fire Service (MFS), South Australia Ambulance Service, TransAdelaide and our security contractor Wilson Security with observers from the Country Fire Service and State Emergency Service. The exercise provided the opportunity to test hardware such as the MFS’s pneumatic bags used for lifting the lead railcar. More importantly, it provided the opportunity to not only practise the difficult task of evacuating injured people from the confined spaces of a railcar but also to observe and learn from the way each of the emergency services was able to cooperate.
Practising for disaster recovery and emergency situations is an essential element of risk management and one that TransAdelaide embraces as part of our commitment to doing all we can to provide safe public transport services.
National Rail Safety Awareness Week 23-29 July 2007 National Rail Safety Week in South Australia was launched on Sunday 22 July 2007 with the official opening of automatic pedestrian gates at Woodville station by Road Safety Minister Hon Carmel Zollo MLC. These gates were in addition to sets already operating at Salisbury and Hove and have been followed by gates at Smithfield and Oaklands as part of a five year crossings upgrade program. A television campaign ‘Don’t Play With Trains’ ran for the week with two graphic advertisements: one depicting the danger of a second train approaching from the opposite direction to one which has just passed, and the other being the danger of playing near train tracks. South Australia Police embraced the theme of the week by conducting Operation Rail Safe which had a state wide enforcement campaign which targeted high risk traffic level crossings. The media once again embraced this very important week by running stories that supported the overall awareness campaign.
Education Programs TransAdelaide has its own Rail Education Unit as a joint initiative between TransAdelaide and the South Australian Police dedicated to promoting safe and appropriate behaviour on trains and near railway lines. The Unit provides a specialised educational program targeted at primary school children in years Four to Seven. In 2007-08 eighty-four school excursions visited the Adelaide Railway Station whilst 2,400 students were visited at 29 schools along our rail corridors. To increase the reach of the program we are now working with the Department for Transport, Energy and Infrastructure’s Schools Education Section. This will lead to all primary schools, and in particular the 120 near the rail corridor being able to participate in the new, combined Road/Rail safety program when it is released in 2009.
Security The safety and security of our passengers, staff, facilities and infrastructure is of vital importance. The presence of Passenger Service Assistants (PSAs), Tram Operators and security guards from Wilson Security provides some assurance of security for passengers, however we greatly appreciate the services of South Australia Police (SAPOL) Transit Services Branch who patrol our trains and stations. Together,
Page 20 TransAdelaide Annual Report 2007-08
SAPOL, Wilson Security and our PSAs conduct special operations that are designed for fare evasion as well as providing a security presence. The positive response to having PSAs and Wilson Security personnel on all services departing Adelaide after 7.00pm assures this practise will be continued.
CCTV security upgrades were made over the past year at Adelaide Railway Station, at Noarlunga Centre and at the Salisbury Interchange. Similar upgrades were also made at the Train Control Centre at the Glengowrie tram depot as well as at the Belair and Port Stanvac train stabling yards. Camera coverage is proposed to be extended in railcars with live-to-driver cameras being installed as part of the refurbishment of the 3000 and 3100 series railcars.
Lighting plays an important role in security and our upgrade program continued over the past reporting year with work undertaken at several stations throughout the network. These included Elizabeth, Noarlunga Centre Interchange, Emerson, Clarence Park and Parafield Gardens.
TransAdelaide is an active partner in emergency security as laid out in the Intergovernmental Agreement of Surface Transport Security. We participate in several security committees and have developed strong relationships in security matters with the Department for Premier and Cabinet; Police Security Services Branch; State Protective Services Branch; South Australia’s Department for Transport, Energy and Infrastructure and the Federal Department of Transport and Regional Services.
The Environment TransAdelaide is committed to making a strong contribution to the quality of life enjoyed by all South Australians and is proud to provide the rail backbone of our integrated public transport system. We have a primary role in achieving South Australia’s Strategic Plan target T3.6: Use of Public Transport; increase the use of public transport to ten percent of metropolitan weekday passenger vehicle kilometres by 2018. Achieving this target will mean a significant reduction in Adelaide’s commuters’ reliance on the motor car that will reduce traffic congestion, and thereby add economic value through transport efficiencies. Such a shift to public transport will also reduce vehicle emissions and help to reduce South Australia’s ecological footprint. As a large organisation with over 600 employees and high energy usage we continue to strive to reduce our own direct environmental impact.
TransAdelaide is committed to the Greening of Government (GoGo) Action Plan and the National Framework for Energy Efficiency which includes preparation for National Greenhouse and Energy reporting. We have a 16 staff volunteer member Greenhouse Taskforce which is working on the implementation of the TransAdelaide Greenhouse Project Action Plan. Recycling and energy conservation is standard practise across all business units and the enthusiasm of the Taskforce supports the work undertaken by our Environmental Coordinator. The aim of the Taskforce is to not only meet all mandatory requirements on an organisational level, but to also help to develop an environmentally aware culture that will encourage all employees to apply wise practises in their private lives.
Page 21 TransAdelaide Annual Report 2007-08
ENERGY USE COMPARISON
Energy Use Expenditure GHG Emissions (Tonnes CO 2 (GJ) ($) equivalent) Base year 2000-01 Electricity 30 969 1 031 005 10 202 Diesel 287 237 5 917 274 22 433 Petrol 718 17 424 58 Total 318 924 6 965 703 32 693 Current year 2007-08 (+/- 2006-07) Electricity 35 318 1,216,386 9 811 (-393) (-5192) (-109) Diesel 334 680 10,972,383 23 409 (+9746) (+1,718,048) (+680) Petrol 6 875 286,747 689 (+388) (+64,755) (+243) Total 376 873 12,475,516 33 909 (+9 742) (+1,777,611) (+804) Target for 2010 297 532 N/A 29 576
Page 22 TransAdelaide Annual Report 2007-08
TransAdelaide does have a number of sites which contain asbestos. Fortunately the asbestos is stable in sheet (non-friable) form and poses no direct hazard. This asbestos sheeting is removed whenever practicable which generally means when maintenance or renovations are required at a location where it is present. Suitably qualified contractors are required when the area of sheeting exceeds 10 square metres .
ANNUAL ASBESTOS MANAGEMENT REPORT 2007-08 Category # Sites # Sites Category Description Interpretation Start of End of One or more items at Year Year these sites … Remove Should be removed 1 0 0 promptly Remove as soon as May need removal 2 37 32 practicable during maintenance works Use care during May need removal 3 N/A maintenance during maintenance works Monitor condition Has asbestos present. 4 N/A Inspect according to legislation and policy No asbestos All asbestos identified identified/identified as per OHS&W 5 N/A asbestos has been 4.2.10(1) has been removed removed Further information These sites not yet 6 N/A required categorised
Groundwater Remediation Monitoring and remediation works have continued at the Adelaide Rail Yards site adjacent to the Morphett Bridge since investigative drilling in September 2006 revealed the extent of historic contamination from fuel storage leakages. The project, utilising the services of Soil and Groundwater Consulting Pty Ltd will continue under oversight from the Environment Protection Authority.
Promoting Independence – Disability Action Plan Providing access and equity for customers is a key program for TransAdelaide and making our transport system available to people with a disability is a very important component of our customer service. The last several years have seen substantial modifications made to our infrastructure and vehicles. This work is ongoing and achievements over the past financial year are listed in the table below. Two committees, the internal Disability Discrimination Act (DDA) Committee (formerly Disability Action Plan Implementation Committee) and the external Disability Consultative Committee (see below), were formed in June 2007 and continue to guide
Page 23 TransAdelaide Annual Report 2007-08
our efforts. We thank our external committee members for their excellent contributions, especially in regards to updating both rolling stock and infrastructure and continuing and future feedback on our Disability Action Plan (2007 – 2009). The six key outcome areas in DAP provide input into the State Promoting Independence:
• Access to services • Information and communications is accessible and inclusive • Disability awareness and discrimination training of staff • Consultation and complaints processes • Compliance with the Disability Discrimination Act 1992 (DDA) and the Equal Opportunity Act 1984 • Employment and human resource practices.
The external committee comprises people with disabilities representing the disability sector and has essentially operated as a focus group and source of specialist consultation services.
Significant progress is expected to be made in addressing DDA requirements with station upgrades which are planned to coincide with line closures for the concrete re- sleepering project. Similarly the 3000/3100 series railcar refurbishment project will include DDA compliance work which includes providing mandatory amounts of designated space for people with mobility aids; intercom facilities from these areas to the driver; new digital passenger information systems that include audible announcements and additional handrails.
Disability Discrimination Act Projects Project Completed 2007-08 at: Work in Progress at: Painting voice All railway stations anunciators yellow and applying symbol for hearing loop Painting international All railway stations symbol for disability on platforms Ticket window counters Salisbury and ‘hi deaf’ phones Lighting trial Adelaide Lost property and Adelaide customer service counters and ‘hi deaf’ phone Access audits Adelaide, Elizabeth, Parafield, Blackwood, Coromandel Valley, Eden Hills, Gawler Central, Gawler, Smithfield, Salisbury, Victoria Square,
Page 24 TransAdelaide Annual Report 2007-08
Mawson Lakes and Oaklands (interim) stations. Disability Awareness All staff training Allocated space and Flexity Trams symbol Railcar upgrades to 2000/2100 class railcars comply with current milestones Seating upgrades Elizabeth, Gawler Central, Munno Para, Tamblin, Womma, Glanville, Ethelton, Midlunga, Seaton Park Two disability toilets Adelaide Ticket window counters Adelaide and ‘hi deaf’ phones Platform and maze way Elizabeth lighting Braille lift control panel Noarlunga Lighting platforms 1 and Noarlunga 2 Up platform and car park Parafield up Tactile Ground Surface Keswick, Salisbury and Indicators Smithfield Upgrading ramps Salisbury, Smithfield, Gawler and Gawler Central Fully compliant station Oaklands
Responding to Our Community Feedback is vital for us to maintain close links with our community and to stay in touch with their requirements. The monthly meetings of the Rail Customer Panel’s seven members continue to be a very important complement to passenger surveys. Members of the panel are interested commuters, representing a particular line, who have responded to vacancy notices to join this advisory group.
Although our staff endeavour to do their best, problems sometimes arise. Rail networks, being closed systems are very unforgiving and issues tend to cascade through the system with compounding impact. TransAdelaide prides itself on being proactive to reduce the impact of problems and to be responsive and transparent when dealing with legitimate customer concerns. Our Passenger Rail Information System (PARIS) provides a mechanism to log passenger concerns and provide timely responses. As such, PARIS also provides an excellent management tool that identifies issues that may require particular attention.
Page 25 TransAdelaide Annual Report 2007-08
Corporate Governance
A strong and effective Corporate Governance Framework is the foundation for the achievement of TransAdelaide’s strategic goals. It confirms our commitment to transparency and accountability with clear communication between the Minister for Transport, our Board of Directors and General Manager.
Our Corporate Governance Framework is based on the principles of ethical dealings with all stakeholders and the pursuit of continuous improvement. It is guided by the TransAdelaide (Corporate Structure) Act 1998; guidelines issued by the Department of Premier and Cabinet and the Department of Treasury and Finance’s Financial Management Framework.
TransAdelaide’s Board of Directors The Governor of South Australia appoints the Board of Directors in accordance with the TransAdelaide (Corporate Structure) Act 1998 which, amongst other things requires that:
It will consist of not more than six members: • one person will be a person nominated by the Minister after taking into account the recommendations of the United Trades and Labour Council; and
Page 26 TransAdelaide Annual Report 2007-08
• the remainder will be persons nominated by the Minister.
The Board is chaired by Ms Virginia Hickey. Profiles of the Board’s six directors are given below.
Directors are independent of the organisation and have been chosen on the basis of their skills and experience in matters that impact TransAdelaide’s operations and future development.
They have responsibility for setting TransAdelaide’s strategic direction, oversight of the organisation and its management, establishing performance goals for management and monitoring the attainment of these goals.
The board provides accountability to the Government of South Australia. The authority, responsibility and accountability for implementation of strategic plans cascades from the General Manager and the Executive Group with all employees expected to fulfil their roles to the best of their ability.
The Board is assisted by its Audit and Risk Committee. Comprising three Board Members, the Audit and Risk Committee assists the full board by monitoring the achievement of a high standard of corporate governance. It takes oversight responsibilities for financial accounting practices, financial management and reporting, risk management and internal controls, the internal and external audit function and compliance with laws and regulations.
The three members of this specialist committee, Kevin Benger (Chair of Committee), Virginia Hickey and Margaret Starrs, have been chosen for their particular expertise in finance, the law and transport policy.
Ms Frances Magill and Ms Libby Kosmala terms expired and three new board members were appointed. Ms Margaret Starrs, Mr Rod Hook and Mr John Hearsch.
Ms Virginia Hickey , the Chair of the Board, brings expertise in corporate governance and commercial law, as well as experience in transport. She is a corporate governance consultant, lawyer, and a director on a number of government and private sector boards including being a Councillor of the National Competition Council and on the board of Flinders Ports. Virginia is a member of the TransAdelaide Audit & Risk Committee and on the Board of TransAdelaide’s joint venture, TransitPlus.
Mr Kevin Benger is Chief Executive Officer of Community CPS Australia Ltd. Kevin brings financial and transport skills to the Board from both his current role and 30 years involvement with transport, including his role as former General Manager of TransAdelaide.
Kevin is Chair of the TransAdelaide Audit & Risk Committee and a member of the Board of Transitplus.
Page 27 TransAdelaide Annual Report 2007-08
Mr Roger Jowett is the National Transport Policy Advisor for the Rail, Tram and Bus Union. He was formerly National Secretary of the Rail Tram and Bus Union and was a member of the Australian Council of Trade Unions Executive. Roger has represented the Union on a number of Union / employer consultative committees at both State and National level.
Ms Margaret Starrs is the Principal of her own consulting firm MM Starrs Pty Ltd. She has provided advice on infrastructure evaluations of road, rail air and public transport improvements and the operations of suburban railways. From 1992 to 1996, Margaret was Deputy Chief Executive and Director Economic Policy for the National Road Transport Commission. She has held positions in the Department of Transport, South Australia (1983-85 and 1972 to 1981).
Mr John Hearsch is the Principal of his own consulting firm John Hearsch Consulting Pty Ltd. John was Group General Manager, Freight with Queensland Rail (1991 to 1998). He worked in Victorian Railways (VicRail) and V/Line between 1959 and 1990, becoming Chief General Manager, Transport Operations of the State Transport Authority of Victoria in 1983. This position was responsible for all operational, maintenance and engineering functions of the State’s freight and non-metropolitan rail passenger services.
Mr Rod Hook is the Deputy Chief Executive and Executive Director of the Office of Major Projects and Infrastructure, Department for Transport, Energy and Infrastructure. He is a member of the Board of the Land Management Corporation, a member of the Stormwater Management Authority and is Chief Executive and a member of the Government's Projects Coordination Board.
Page 28 TransAdelaide Annual Report 2007-08
Strategic and Business Planning, Monitoring and Accountability The Board, with the executive team and direction from the Minister and Government policy sets TransAdelaide’s strategic goals to maintain our position as a key player in providing Adelaide with an integrated passenger transport network.
The foundation of our corporate mission is the responsibility to contribute strongly to the achievement of South Australia’s Strategic Plan (SASP) target T3.6: Increase the use of public transport to 10% of weekday travel by 2018. A number of initiatives that contribute to patronage growth feature within our strategic, Rail Revitalisation Plan 2005-2010, thus aligning with our primary SASP target above. TransAdelaide also contributes to the achievement of many other SASP targets: • A majority of female Directors until February on the TransAdelaide Board, including our Chair, Virginia Hickey (SASP Targets T5.1 and T5.2); • Continued upgrading of systems and infrastructure is expected to impact achievement towards the public sector performance targets, T1.7, T1.8 and T1.9.
Meetings of Directors Board Meetings Audit & Risk Committee Number Number Eligible to Attended Eligible to Attended Attend Attend Ms Virginia 11 11 4 4 Hickey Mr Kevin Benger 11 11 4 4 Ms Frances 6 4 2 2 Magill Mrs Libby 6 6 Kosmala Mr Roger Jowett 11 11 Mr Rod Hook 5 4 Ms Margaret 5 5 2 2 Starrs Mr John Hearsch 5 4
Page 29 TransAdelaide Annual Report 2007-08
Board Member Remuneration Board remuneration is determined by the Commissioner of Public Employment. Final approval rests with the Governor following advice and approval from Cabinet.
Board Member Benefits No Board member has received or become entitled to receive, during or since the 2007-08 financial year, a personal benefit (other than a remuneration benefit included in the financial statements) because of a contract made with TransAdelaide by: • the Board member; • a firm or government department of which the Board member is a member; or • an entity in which the Board member has a substantial financial interest.
Risk Management TransAdelaide has an organisation-wide approach to risk management making it a fundamental element of TransAdelaide’s corporate culture. Risk is assessed and dealt with appropriately at all levels of the organisation. Our risk management policy reflects the South Australian Government Risk Management Policy Statement (spanning several SASP targets), relevant Treasurer’s Instructions and best practice.
Whilst risk management is a primary responsibility of the Board, it has given specific roles and responsibilities to the Risk and Audit Committee (above). The committee monitors the annual Risk Management Plan and regularly reviews the areas of highest risk.
TransAdelaide uses the AS/NZS 4360:2004 Risk Management framework to identify, analyse, evaluate and treat risks. It is an integral part of our daily activities. A major review of our risk management processes has been undertaken over the past twelve months. The review assessed the structure of the risk management plan; the criteria used to analyse risks; the software required to support risk management processes and risk reporting within the organisation. As a result, an enterprise-wide, strategic risk management system is presently being developed. The system will contain modules for operational-level risk management.
Internal Control and Assurance TransAdelaide replaced KPMG with Deloitte from 29 February 2008 as its internal auditor to assist the Board by reviewing compliance with established internal controls for effective risk identification and management. The internal auditors have direct access to the Audit and Risk Committee and when required meet independently of management. The Audit and Risk Committee approves the annual internal audit plan.
External Audit TransAdelaide’s external auditor is the Auditor-General’s Department. The scope of the audit program is determined by the Auditor-General to comply with the obligations as required by Section 31 of the Public Finance and Audit Act 1987 and sub section 32(4) of the Public Corporations Act 1993.
Contract & Procurement Management TransAdelaide is committed to a tender and procurement governance process that ensures open and fair competition with integrity and probity. Competitive tendering
Page 30 TransAdelaide Annual Report 2007-08
also ensures that we remain accountable and that we receive value for the expenditure of funds.
A number of tenders and contracts were issued throughout the year for stations and rail track upgrades, including re-sleepering, embankment repairs and upgrades, lighting and illuminated signage upgrades. A public Request for Tender was issued in March 2007 for the construction of the Oaklands Transport Interchange Project. All tenders are placed on the Government Tenders and Contracts website at www.tenders.sa.gov.au .
Consultancies
Consultancy expenditure 2007-08 Consultant Below $10 000 Cost 27 88 232 Total consultancies 88 232 < $10 000 Consultant $10 000 - $50 000 Cost Purpose Soil and Groundwater Consulting Environmental consulting 49 160 Sinclair Knight Merz Adelaide Station Land Strategy 10 450 United Group Infrastructure CTC Project 11 853 Interfleet 3000 series upgrade 13 412 Interfleet 3000 series upgrade 23 971 Deloitte Professional Services 32 980 Halcrow Revise 3000 class refurb specs 37 330 Soil and Groundwater Consulting Investigation and treatment Adelaide Railcar Depot 41 215 Hatch Associates Track Inspection standards and processes 42 957 Price Waterhouse Coopers Sustainable funding modelling 45 557 Total consultancies $10 000 - $50 000 308 885 Consultant Above $50 000 Cost Purpose Soil and Groundwater Consulting Investigation and treatment Adelaide Railcar Depot 96 500 Soil and Groundwater Consulting Investigation and treatment Adelaide Railcar Depot 177 550 Total Consultancies > $50 000 274 050 Total Consultants 759 399
Page 31 TransAdelaide Annual Report 2007-08
Statutory Information
Freedom of Information Act – Information Statement In accordance with section 9 of the Freedom of Information Act 1991 , the following represents TransAdelaide’s information statement as at 30 June 2007.
Structure and Function of TransAdelaide Detailed information on TransAdelaide’s structure and principal activity or function can be found within the Directors’ Report. As will be noted, the primary activity of TransAdelaide is the provision of regular passenger transport services incorporating rail operations and rail infrastructure services. These activities affect members of the public, primarily by providing access to regular passenger transport services throughout the Adelaide Metropolitan Area.
Arrangements for Public Participation TransAdelaide facilitates public participation in the development of services through a Rail Customer Panel that meets monthly to provide feedback and input to service design and delivery. TransAdelaide also has an ‘Adopt-a-Station’ program that provides avenues for community groups to participate in the maintenance and beautification of stations (infrastructure) and their environs.
Contact Arrangements Requests for access to TransAdelaide documents or requests to seek amendment of TransAdelaide’s records concerning the personal affairs of an individual should be directed in writing to:
The Freedom of Information Officer TransAdelaide GPO Box 2351 ADELAIDE SA 5001
Documents held by TransAdelaide Available at www.transadelaide.com.au
• Annual • ‘Year in • ‘Express’ • List of Reports Review’ newsletters Policies
Whistleblower Legislation TransAdelaide’s Executive Manager Corporate Services is responsible for the application of the Whistleblowers Protection Act within TransAdelaide to provide TransAdelaide’s employees, suppliers and members of the public with confidentiality regarding allegations of mal-administration, waste or illegal activities or corruption in the workplace.
Page 32 TransAdelaide Annual Report 2007-08
Privacy Legislation TransAdelaide is required to comply with the State Government’s ‘Information Privacy Principles Instruction’. These principles are applied throughout the organisation to provide appropriate levels of privacy protection to personal information.
Ethical Standards and Performance A Code of Conduct has been in place throughout the course of the year to ensure all business affairs are conducted legally, ethically and with the strict observance of the highest standards of integrity and propriety. This Code of Conduct applies to all executives, employees and contractors of TransAdelaide.
Fraud There were no instances of fraud detected within TransAdelaide or its joint venture, Transitplus, during the financial year.
Third Party Claims Rail related third party and public liability claims continue to be managed in-house by TransAdelaide. The number and value of claims remains at similar levels to last year. During the year risk assessments were conducted and risk mitigation strategies implemented to reduce the likelihood and severity of incidents.
Overseas Travel No. of employees Destinations Reason for travel Total cost Nil
Page 33 TransAdelaide Annual Report 2007-08
Financial Report
Directors’ Report The TransAdelaide Board has pleasure in presenting its report on the Financial Report of the economic entity for the financial year ended 30 June 2008.
Principal Activities TransAdelaide is a body corporate subject to the provisions of the Public Corporations Act 1993. The TransAdelaide (Corporate Structure) Act 1998 provides that TransAdelaide’s principal activity is to operate passenger transport services. This continued to be our primary focus throughout the year.
TransAdelaide’s five-year agreement for the provision of metropolitan rail services with the Public Transport Division (PTD) was renewed by the Government in 2005 taking the contract through until April 2010.
TransAdelaide is a joint shareholder in Transitplus Pty Ltd, a private company that provides passenger transport services in the Adelaide Hills region also under contract with the PTD.
Providing our passenger transport services within greater metropolitan Adelaide requires management of tram and train fleets as well as substantial infrastructure. The focus in 2007-08 has been on improving our services to provide our customers with reliable, regular and safe public transport through continual upgrading of our fleets and infrastructure. This also progresses us towards compliance with Disability Discrimination Act requirements and enhances general passenger comfort and safety.
Review of Operating Result The financial year ended 30 June 2008 has seen TransAdelaide record a net loss of $5.6m. This result reflects the difficult operating conditions experienced in 2008, with high fuel prices making a significant contribution to the loss figure.
Significant Changes in the Economic Entity There has been a significant change in the operations and structure of the economic entity this year. During 2007-08, the majority of TransAdelaide’s fixed assets were transferred to the Department of Transport, Energy & Infrastructure along with the capital budget allocated to carryover funding and capital funding allocations for future years.
Ministerial Control and Direction TransAdelaide did not receive any specific Ministerial Direction during 2007-08.
Page 34 TransAdelaide Annual Report 2007-08
Payment of Accounts Account Payment Performance
Percentage of Value in $A Percentage of Number of Particulars Accts paid of Accts Accts paid (by Accts Paid (by number) paid value) Paid by due date 16 144 97.87% $85 541 320 97.82% Paid late, within 30 285 1.74% $1 178 388 1.60% days of due date Paid more than 30 62 0.39% $329 722 0.58% days from due date
Board Member’s Benefits Neither during, nor since the financial year has any Board Member received or been entitled to receive a benefit, other than their disclosed remuneration as shown in note 13.
Board Member’s Interests in Contracts As at the date of this report, no Board Member had interests in contracts or proposed contracts with any part of the economic entity.
Indemnities and Insurance TransAdelaide pays an insurance premium in respect of insuring the Board members, the General Manager, all of its Executive Officers and employees of any related body corporate against a liability incurred as a Board Member, Secretary or Executive Officer to the extent permitted by the Passenger Transport Act 1994.
Contractual Arrangements
New Contracts TransAdelaide entered into one new contact exceeding $4 million for the provision of services undertaken by the Public Sector during 2007/08:
1. Construction of the Oaklands Transport Interchange. The contract was awarded to Bardavcol Pty Ltd on a 40 week term commencing 21 December 2007. The scope of the contract was: construction of a new public transport interchange at Oaklands Park, to replace the existing Oaklands railway station which was in poor condition; construct new side platforms to replace existing single island platform; install three new pedestrian crossings incorporating new auto gate technology;
Page 35 TransAdelaide Annual Report 2007-08
provide new car parking including new set down/pick up spaces; provide a network of access paths to maximise ease of access for pedestrians; new indented bus bays on Morphett Road, with new signalised pedestrian crossing to provide safe movements of passengers between bus and train services; and extensive landscaping.
At 30 June 2008 there has been no transfer of assets to Bardavcol Pty Ltd and there are no contingent and other liabilities that have not been reflected in the accounts.
Continuation of Existing Contracts The following contractual arrangements exceeding $4.0m entered into previously were continued during 2007/08:
1 Provision of railcar maintenance and related services. The contract was awarded to Bombardier Transportation Australia Pty Ltd on a ten-year term, commencing 11 June 2005. The scope of the contract is: to carry out planned preventative and corrective maintenance of railcars; to carry out unplanned preventative and corrective maintenance of railcars; the cleaning of railcars; and monitoring of railcar condition.
The contract’s objectives are to: provide a public transport service which achieves the highest standard of reliability, safety and comfort for our customers in a manner which is economical and cost-effective; provide the services in a manner which is designed to enhance the overall quality and performance of TransAdelaide’s rail operations; provide the services fully in compliance with the Rail Safety Act and required standards.
At 30 June 2008 there has been no transfer of assets to Bombardier Transportation Australia Pty Ltd and there are no contingent and other liabilities that have not been reflected in the accounts.
2 Upgrading of TransAdelaide’s existing Computerised Traffic Control (CTC) and Passenger Information (PI) systems.
The contract was awarded to Alstrom Australia Ltd and commenced on 14 March 2003, with a practical completion yet to be achieved. The scope of the contract is to upgrade the CTC and PI systems which have been in service since 1988.
The contract’s objectives are to: provide train passengers with a public transport service that achieves the highest standards of reliability and safety; eliminate the risk of the current network reaching technical obsolescence and diminishing the level of available equipment support; improve the efficiency, productivity and adaptability of the CTC and PI systems to better meet the current and future operational and business needs of TransAdelaide.
At 30 June 2008, there has been no transfer of assets to Alstom Australia Ltd and there are no contingent and other liabilities.
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Income Statement
Income Statement 30 June 2008
Note 2008 2007 Income $'000 $'000 Revenues from the provision of services 7 86,471 97,166 Appropriation from SA Government 8 2,063 2,669 Financial income 9 673 1,400 Net gain (loss) from the disposal of assets 10 265 376 Other revenues 11 24,412 11,473 Income from joint venture 26 961 942
Total Income 114,845 114,026
Expenses Employee benefits costs 12 49,970 42,450 Supplies and services 15 55,788 43,124 Depreciation and amortisation expense 16 12,204 19,806 Borrowing costs 17 2,513 5,411 Other expenses 18 27 1,621
Total Expenses 120,502 112,412
Net operating profit/(loss) before restructure/ asset transfer and associated write-offs (5,657) 1,614
Grant funding in advance write-off 34 9,045 - Debt Forgiven 30 67,134 - Transfer of non-current assets 10 (525,410) -
Net restructure/asset transfer & write-off 6 (449,231) -
(Loss)/Profit after restructure/asset transfer & write-offs and before tax equivalents (454,888) 1,614
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Income tax equivalent expense 19 - (484)
Net (loss)/profit after Income tax equivalents (454,888) 1,130
The net profit/(loss) after income tax equivalents is attributable to the SA Government as owner
The above statement should be read in conjunction with the accompanying notes
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Balance Sheet
Balance Sheet 30 June 2008
Note 2008 2007 Assets $'000 $'000 Current Assets Cash and cash equivalents 20 4,142 20,670 Receivables 21 8,768 2,393 Inventories 22 4,947 4,886
Total Current Assets 17,857 27,949
Non-Current Assets Property, plant and equipment 23 120,542 638,763 Investment property 24 - 10,322 Intangible assets 25 113 156 Investment accounted for using the equity method 26 200 200
Total Non-Current Assets 120,855 649,441
Total Assets 138,712 677,390
Liabilities Current Liabilities Payables 28 9,850 10,884 Short-term employee benefits 31 8,523 7,627 Short-term provisions 32 2,013 2,655 Other current liabilities 33 702 271
Total Current Liabilities 21,088 21,437
Non-Current Liabilities Long-term borrowings 30 - 75,205 Long-term employee benefits 31 11,230 11,094 Long-term provisions 32 10,883 10,520 Government grants 34 - 8,735
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Total Non-Current Liabilities 22,113 105,554
Total Liabilities 43,201 126,991
Net Assets 95,511 550,399
Equity Asset revaluation reserve 35 51,170 469,278 Retained earnings 44,341 81,121
Total Equity 95,511 550,399
The Total Equity is attributable to the SA Government as owner
Commitments for expenditure 36 Contingent assets and liabilities 37
The above statement should be read in conjunction with the accompanying notes
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Statement of Changes in Equity
Statement of Changes in Equity 30 June 2008
Asset Revaluation Retained Note Reserve Earnings Total $'000 $'000 $'000 Balance at 30 June 2006 474,510 78,753 553,263 Error correction - 1,302 1,302
Restated balance at 30 June 2006 474,510 80,055 554,565
Profit/(loss) after income tax equivalent for 2006-07 - 1,130 1,130
Total recognised income and expense for 2006-07 - 1,130 1,130 Transferred to retained profits amounts realised on disposal of assets 35 (5,232) 5,232 - Dividends to SA Government 8(b) - (5,296) (5,296)
Balance at 30 June 2007 469,278 81,121 550,399
Assets transferred during 2007-08 - (525,410) (525,410) Debt forgiven - 67,134 67,134 Grant funding in advance - written off - 9,045 9,045 Profit/(loss) after income tax equivalent for 2007-08 - (5,657) (5,657)
Total recognised income and expense for 2007-08 - (454,888) (454,888) Transferred to retained profits amounts realised on disposal of assets 35 (418,108) 418,108 -
Balance at 30 June 2008 51,170 44,341 95,511
All changes in equity are attributable to the SA Government as owner
The above statement should be read in conjunction with the accompanying notes
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Cash Flow Statement
Cash Flow Statement 30 June 2008
Note 2008 2007 Cash flows from Operating Activities $'000 $'000 Cash Inflows Receipts from the sale of goods and services 86,467 97,322 Interest received 798 1,383 Receipts from SA Government 2,793 5,454 Dividends received 1,035 999 GST input tax credits claimed 10,098 10,700 Other receipts 17,368 10,821
Cash generated from operations 118,559 126,679
Cash Outflows Employee benefit payments () (49,169) (42,489) Supplies and services (2) (54,747) (41,850) Interest paid () (2,955) (5,434) Income tax equivalents received/(paid) 210 (694) GST payments on purchases (6,274) (5,863) GST remitted to ATO (3,993) (8,303)
Cash used in operations (1) (116,928) (104,633)
Net cash provided by operating activities 38(b) 1,631 22,046
Cash flows from Investing Activities Cash Inflows Proceeds from sale of property, plant and equipment 63 34 Proceeds from sale of investments 903 1,588
Cash generated from investing activities 966 1,622
Cash Outflows Purchase of property, plant and equipment (11,012) (19,667) Purchase of intangibles () (42) (141)
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Cash used in investing activities (11,054) (19,808)
Net cash provided by (used in) investing activities (10,088) (18,186)
Cash flows from Financing Activities Cash Outflows Dividends paid - (5,296) Repayment of borrowings (8,071) -
Net cash used in financing activities (8,071) (5,296)
Net (decrease)/increase in cash and cash equivalents (16,528) (1,436) Cash and cash equivalents at the beginning of the financial year 20,670 22,106 Cash and cash equivalents at the end of the financial year 38(a) 4,142 20,670
The above statement should be read in conjunction with the accompanying notes
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Notes Index
30 June 2008
Note Objectives of TransAdelaide 1 Summary of Significant Accounting Policies 2 Financial Risk Management 3 Changes in Accounting Policies 4 Segment Information 5 Asset Transfer / Write-offs 6 Income Notes Revenues from the provision of services 7 Revenues from SA Government 8 Financial income 9 Net gain (loss) from the disposal of assets 10 Other revenues 11 Expense Notes Employee benefits cost 12 Supplies and services 15 Depreciation and amortisation expense 16 Borrowing Costs 17 Other expenses 18 Payments to SA Government 8 Income tax equivalent expense 19 Asset Notes Cash and cash equivalents 20 Receivables 21 Inventories 22 Property, plant and equipment 23 Investment property 24 Intangible assets 25 Investments accounted for using the equity method 26 Reconciliation of asset carrying amounts 27 Liabilities Notes Payables 28 Financial Instruments / Financial Risk Management 29 Borrowings & Debt Forgiven 30 Employee benefits 31 Provisions 32 Other liabilities 33
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Government Grants 34 Equity Notes Reserves 35 Other Notes Remuneration of employees and TVSP disclosure 12 Key management personnel 13 Related party disclosures 14 Commitments 36 Contingent assets and contingent liabilities 37 Reconciliation of cash and cash equivalents 38 After balance date events 39
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Note 1 - Objectives of TransAdelaide TransAdelaide was established as a Public Authority under the TransAdelaide (Corporate Structure) Act 1998 in January 1999. TransAdelaide is a body corporate subject to the provisions of the Public Corporations Act 1993 . The TransAdelaide (Corporate Structure) Act 1998 provides that TransAdelaide’s principal activity is to operate passenger transport services, an activity that continued to be the primary focus throughout the year.
Note 2 - Summary of Significant Accounting Policies a) Statement of compliance The financial report is a general purpose financial report. The accounts have been prepared in accordance with applicable Australian Accounting Standards and Treasurer’s Instructions and Accounting Policy Statements promulgated under the provision of the Public Finance and Audit Act 1987 (PFAA) . Australian Accounting Standards include Australian equivalents to International Financial Reporting Standards. Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective have not been adopted by TransAdelaide for the reporting period ending 30 June 2008. These are outlined in Note 4
The accounting policies set out below have been applied in preparing the financial report for the year ended 30 June 2008 and the comparative information presented for the year ended 30 June 2007. b) Basis of preparation The preparation of the financial report requires: - the use of certain accounting estimates and requires management to exercise its judgement in the process of applying TransAdelaide’s accounting policies. The areas involving high degrees of judgement or where assumptions and estimates are significant to the financial statements, these are outlined in the applicable notes; - accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events are reported; and - compliance with Accounting Policy Statements issued pursuant to section 41 of the Public Finance and Audit Act 1987, by authority of Treasurer’s Instruction 19 Financial Reporting. In the interest of public accountability and transparency the Accounting Policy Statements require the following note disclosures, that have been included in this financial report: a) revenues, expenses, financial assets and liabilities where the counterparty/transaction is with an entity within the SA Government as at reporting date, classified according to their nature. A threshold of $100,000 for separate identification of these items applies; b) expenses incurred as a result of engaging consultants;
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c) employee targeted voluntary separation package information; and d) employees whose normal remuneration is $100,000 or more (within $10,000 bandwidths) and the aggregate of remuneration paid or payable or otherwise made available, directly or indirectly by the entity to those employees. TransAdelaide’s Income Statement, Balance Sheet and Statement of Changes in Equity have been prepared on an accrual basis and are in accordance with historical cost convention, except for certain assets that were valued in accordance with the valuation policy applicable. The Cash Flow Statement has been prepared on a cash basis. The financial report has been prepared on a 12 month operating cycle and presented in Australian currency. c) Reporting Entity The financial report covers TransAdelaide as an individual reporting entity. TransAdelaide is a Public Authority pursuant to the TransAdelaide (Corporate Structure) Act 1998 d) Segment reporting TransAdelaide has not established any partnership or body corporate to carry out its principal business operations. However TransAdelaide has a 50% interest in Transitplus Pty Ltd, a joint venture entity established for the provision of bus services through the Adelaide Hills. Business operations are conducted in the one business and geographical segment e) Comparative Information The presentation and classification of items in the financial report are consistent with prior periods except where a specific Accounting Policy Statement or Australian Accounting Standard has required a change. Where presentation or classification of items in the financial report has been amended, comparative amounts have been reclassified unless reclassification is impracticable. The restated comparative amounts do not replace the original financial report for the preceding period. f) Rounding All amounts in the financial statements have been rounded to the nearest thousand dollars ($’000). g) Taxation In accordance with Treasurer’s Instruction 22 Tax Equivalent Payments , TransAdelaide is required to pay to the State Government an income tax equivalent. The income tax liability is based on the State Taxation Equivalent Regime, which applies the accounting profit method. This requires that the corporate income tax rate
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be applied to the net profit. The current income tax liability relates to the income tax outstanding for the current period.
TransAdelaide is liable for payroll tax, fringe benefits tax, goods and services tax (GST), emergency services levy, land tax equivalents and local government rate equivalents.
Income, expenses and assets are recognised net of the amount of GST except:
- when the GST incurred on a purchase of goods or services is not recoverable from the Australian Taxation Office, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item applicable; and
Receivable and payables, which are stated with the amount of GST included
The net amount of GST recoverable from, or payable to, the Australian Tax Office is included as part of receivables or payables in the Balance Sheet.
Cash flows are included in the Cash Flow Statement on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the Australian Tax Office is classified as part of the operating cash flows.
Unrecognised commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the Australian Tax Office. If GST is not payable to, or recoverable from, the Australian Tax Office, the commitments and contingencies are disclosed on a gross basis . h) Events after balance date
When an event occurs after 30 June but provides information about conditions that existed at 30 June, adjustments are made to amounts recognised in the financial statements.
Note disclosure is made about events between 30 June and the date the financial statements are authorised for issue where the events relate to a condition which arose after 30 June and which may have a material impact on the results of subsequent years.
No such events have occurred related to the year ended 30 June 2008. i) Income and Expenses
Income and expenses are recognised to the extent that it is probable that the flow of economic benefits to or from the entity will occur and can be reliably measured. Income and expenses have been classified according to their nature and have not been offset unless required or permitted by a specific accounting standard, or where offsetting reflects the substance of the transaction or other event. The notes accompanying the financial statements disclose income, expenses, financial assets and financial liabilities where the counterparty/transaction is with an entity
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within the SA Government as at the reporting date, classified according to their nature.
Transactions with SA Government entities below the threshold of $100,000 have been included with the non-government transactions, classified according to their nature.
Income
The following are specific recognition criteria:
Revenues from fees and charges and from the provision of services Revenues from fees and charges and the provision of services are derived from goods and services to the public and other SA government agencies. This revenue is recognised upon delivery of the service to the clients or by reference to the stage of completion.
The revenue is recognised when: - the amount of the revenue, stage of completion and transaction costs incurred can be reliably measured; and - it is probable that the economic benefits associated with the transaction will flow to the entity or authority
Services directly related to the provision of rail services are disclosed under Note 7. Other services provided on an ad hoc basis are disclosed as Other Income under Note 11.
Revenues from sales Revenues from sales are recognised when the significant risks and rewards of ownership are transferred to the purchaser.
Rental income Rental income arising on investment properties is accounted for on a straight line basis over the lease term.
Interest income Interest income includes interest received on bank term deposits, interest from investments, and other interest received. Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the financial asset.
Dividend revenue Dividend revenue is recognised when the right to received payment is established.
Revenues from the SA Government
Grants from the Government are recognised at their fair value where there is a reasonable assurance that the grant will be received and TransAdelaide will comply with all attached conditions.
Government grants relating to costs are deferred and recognised in the Income Statement over the period necessary to match them with the costs that they are intended to compensate. Government grants relating to the purchase of property, plant and equipment are recognised as deferred income and are credited to the Income Statement on a straight line basis over the expected lives of the related assets.
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Where money has been received in the form of a loan, TransAdelaide has recorded a loan receivable. Where money has been received in the form of an equity contribution, the Treasurer has acquired a financial interest in the net assets of TransAdelaide and the funding is recorded as contributed equity. Other contributions All contributions from non-government entities are recognised as income when TransAdelaide obtains control of the contribution or the right to receive the contribution and the income recognition criteria are met. Resources received/provided free of charge Resources received/provided free of charge are recorded as revenue/expenditure in the Income Statement at their fair value.
Disposal of non-current assets Income from the disposal of non-current assets is recognised when control of the asset has passed to the buyer and is determined by comparing proceeds with carrying amount. When revalued assets are sold, the revaluation increments are transferred to retained earnings.
Expenses The following are specific recognition criteria: Employee benefits Employee benefit expense includes all costs related to employment including wages and salaries and leave entitlements. These are recognised when incurred. Superannuation The amount charged to the Income Statement represents the contributions made by TransAdelaide to the superannuation plan in respect of current services of current TransAdelaide staff. The Department of Treasury and Finance centrally recognises the superannuation liability in the Whole of Government Financial Statements. Supplies and Services Supplies and services generally represent cost of goods sold and the day-to-day running costs, including maintenance costs, incurred in the normal operations of TransAdelaide. These items are recognised as an expense in the reporting period in which they are incurred. Maintenance Expenses TransAdelaide undertakes major cyclical maintenance on its infrastructure assets. All costs involved with the major cyclical maintenance are recorded as an expense unless they add to the service potential of the existing infrastructure asset. Borrowing costs All borrowing costs are recognised as an expense and include: • interest on short-term and long-term borrowings; • amortisation of discounts or premiums relating to borrowings;
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• amortisation of ancillary costs incurred in connection with the arrangement of borrowing; • finance lease charges; and • the increase in financial liabilities and provisions (not employee related) due to the unwinding of discounts to reflect the passage of time. Contributions All contributions paid by TransAdelaide have been unconditional i.e. no conditions attached. Resources provided free of charge Resources provided free of charge are recorded at their fair value in the expense line items to which they relate. Finance costs All finance costs are recognised as an expense . j) Current and Non-Current Classification Assets and liabilities are characterised as either current or non-current in nature. TransAdelaide has a clearly identifiable operating cycle of twelve months. Assets and liabilities that are sold, consumed or realised as part of the normal operating cycle even when they are not expected to be realised within twelve months after the reporting date have been classified as current assets or current liabilities. All other assets and liabilities are classified as non-current.
Where asset and liability line items combine amounts expected to be realised within twelve months and more than twelve months, TransAdelaide has separately disclosed the amounts expected to be recovered or settled after more than twelve months. k) Cash and Cash Equivalents Cash and cash equivalents in the Balance Sheet includes cash at bank and on hand and in other short-term, highly liquid investments with maturities of three months or less that are readily converted to cash and which are subject to insignificant risk of changes of value. For the purpose of the Cash Flow Statement, cash and cash equivalents consist of cash and cash equivalents as defined above. Cash is measured at nominal value. l) Receivables Receivables include amounts receivable from trade, prepayments and other accruals. Trade receivables arise in the normal course of selling goods and services to the public and other government agencies. Trade receivables are generally receivable within 30 days after the issue of an invoice or the goods/services have been provided under a contractual arrangement.
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Collectibility of trade receivables is reviewed on an ongoing basis. An allowance for doubtful debts is raised when there is objective evidence that TransAdelaide may not be able to collect the debt. Bad debts are written off when identified. m) Inventories Inventories include goods and other property held for sale in the ordinary course of business. It excludes depreciating assets. Inventories are measured at the lower of cost or their net realisable value. Cost is allocated in accordance with the weighted average cost method. Net realisable value is determined using the estimated sales proceeds less costs incurred in marketing, selling and distribution to customers. The amount of any inventory write-down to net realisable value/replacement cost or inventory losses are recognised as an expense in the period the write-down or loss occurred. Any write-down reversals are recognised as an expense reduction. Inventories include train, tram and infrastructure spare parts. n) Investment property Investment properties represent properties held to earn rentals or for capital appreciation or both. Investment properties are initially recognised at cost. Costs incurred subsequent to initial acquisition are capitalised when it is probable that future economic benefits in excess of the originally assessed performance of the asset will flow to TransAdelaide. Subsequent to initial recognition at cost, investment properties are revalued to fair value changes in the fair value recognised as income or expense in the period that they arise. The properties are not depreciated. Rental income arising from the leasing of investment properties is recognised in the Income Statement as part of other income, on a straight line basis over the lease term. o) Non-Current Asset Acquisition and Recognition Non-current assets are initially recorded at cost or at the value of any liabilities assumed, plus any incidental cost involved with the acquisition. Non-current assets are subsequently measured at fair value less accumulated depreciation. Where assets are acquired at no value, or minimal value, they are recorded at their fair value in the Balance Sheet. If, however, the assets are acquired at no or nominal value as part of a restructuring of administrative arrangements then the assets are recorded at the value recorded by the transferor prior to transfer. Where payment for an asset is deferred, TransAdelaide measures the obligation at the present value of the future outflow, discounted using the interest rate of a similar length borrowing. All non-current tangible assets with a value of $10,000 or above are capitalised.
Componentisation of complex assets is only performed when the complex asset’s fair value at the time of acquisition is greater than $5 million for infrastructure assets and $1 million for other assets.
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p) Revaluation of non-current assets All non-current tangible assets are valued at written down current cost (a proxy for fair value); and revaluation of non-current assets or group of assets is only performed when its fair value at the time of acquisition is greater than $1 million and the estimated useful life is greater than three years.
Every three years, TransAdelaide revalues its land and buildings. However, if at anytime management considers that the carrying amount of an asset materially differs from its fair value, then the asset will be revalued regardless of when the last valuation took place. Non-current tangible assets that are acquired between valuations are held at cost until the next valuation, where they are revalued to fair value.
Any revaluation increment is credited to the asset revaluation reserve, except to the extent that it reverses a revaluation decrement of the same asset class previously recognised in the Income Statement, in which case the increase is recognised in the Income Statement.
Any revaluation decrease is recognised in the Income Statement, except to the extent that it offsets a previous revaluation increase for the same asset class, in which case the decrease is debited directly to the asset revaluation reserve to the extent of the credit balance existing in revaluation reserve for that asset class.
TransAdelaide uses the gross method of revaluation where the gross asset value and the accumulated depreciation are both restated to the revalued amounts of the assets.
Upon disposal or derecognition, any revaluation reserve relating to the asset is transferred to retained earnings. q) Impairment All non-current tangible and intangible assets are tested for indication of impairment at each reporting date. If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their possible recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written off by a charge to the Income Statement except to the extent that the write-down can be debited to an asset revaluation reserve amount applicable to that class of asset. Refer to note disclosures on inventories, financial assets, investment properties and assets held for sale for further information in relation to these specific assets . r) Depreciation and Amortisation of Non-Current Assets All non-current assets, having a limited useful life, are systematically depreciated/amortised over their useful lives in a manner that reflects the consumption of their service potential. Amortisation is used in relation to intangible assets such as software, while depreciation is applied to tangible assets such as property, plant and equipment.
Assets’ residual values, useful lives and amortisation methods are reviewed and adjusted if appropriate, on an annual basis.
Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for prospectively by changing
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the time period, or method, as appropriate, which is a change in accounting estimate. The value of leasehold improvements is amortised over the estimated useful life of each improvement, or the unexpired period of the relevant lease, whichever is shorter.
Land and assets held for sale are not depreciated.
Depreciation/amortisation is calculated on a straight line basis over the estimated useful life of the following classes of assets as follows:
Class of Assets Depreciation Method Useful Life (Years)
Rollingstock
Railcars Straight Line 20 – 42
Tramcars Straight Line 10 – 87
Buildings Straight Line 10 – 100
Permanent Way Straight Line 20 – 242
Machinery, Plant & Equipment Straight Line 3 – 100
Intangibles Straight Line 3 s) Intangible Assets An intangible asset is an identifiable non-monetary asset without physical substance. Intangible assets are measured at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses. The useful lives of intangible assets are assessed to be either finite or indefinite. TransAdelaide only has intangible assets with finite lives. The amortisation period and the amortisation method for intangible assets is reviewed on an annual basis. The acquisition of, or internal development of software is capitalised only when the expenditure meets the definition criteria (identifiability, control and the existence of future economic benefits) and recognition criteria (probability of future economic benefits and reliable measurement and when the amount of expenditure is greater than or equal to $10,000). All research and development costs that do not meet the capitalisation criteria outlined in AASB 138 are expensed. Subsequent expenditure on intangible assets has not been capitalised. This is because TransAdelaide has been unable to attribute this expenditure to the intangible asset rather than to TransAdelaide as a whole.
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t) Payables Payables include creditors, accrued expenses and employment on-costs.
Creditors represent the amounts owing for goods and services received prior to the end of the reporting period that are unpaid at the end of the reporting period. Creditors include all unpaid invoices received relating to the normal operations of TransAdelaide.
Accrued expenses represent goods and services provided by other parties during the period that are unpaid at the end of the reporting period and where an invoice has not been received.
All payables are measured at their nominal amount and are normally settled within 30 days from the date of the invoice or date the invoice is first received .
Employment on-costs include superannuation contributions and payroll tax with respect to outstanding liabilities for salaries and wages, long service leave and annual leave.
TransAdelaide makes contributions to several State Government and externally managed superannuation schemes. These contributions are treated as an expense when they occur. There is no liability for payments to beneficiaries as they have been assumed by the respective superannuation schemes. The only liability outstanding at balance date relates to any contributions due but not yet paid. u) Employee Benefits These benefits accrue for employees as a result of services provided up to the reporting date that remain unpaid. Long-term employee benefits are measured at present value and short-term employee benefits are measured at nominal amounts.
Wages, salaries, annual leave and sick leave Liability for salaries and wages are measured as the amount unpaid at the reporting date at remuneration rates current at reporting date.
The annual leave liability is expected to be payable within twelve months and is measured at the undiscounted amount expected to be paid. In the unusual event where salary and wages and annual leave are payable later than 12 months, the liability will be measured at present value.
No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees is estimated to be less than the annual entitlement of sick leave.
Long service leave The liability for long service leave is recognised after an employee has completed 6.5 years of service . An actuarial assessment of Long Service Leave undertaken by the Department of Treasury and Finance based on a significant sample of employees throughout the South Australian public sector determined that the liability measured using the short-hand method was not materially different from the liability measured using the present value of expected future payments. This calculation is consistent
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with TransAdelaide’s experience of employee retention and leave taken.
Employee benefit on-costs Employee benefit on-costs (payroll tax, workcover, superannuation) are recognised separately under payables. v) Provisions
Provisions are recognised when the authority has a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
When the authority expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the Income Statement net of any reimbursement.
Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the balance sheet date. If the effect of the time value of money is material, provisions are discounted for the time value of money and the risks specific to the liability . w) Borrowings/Financial liabilities TransAdelaide measures financial liabilities including borrowings/debt at historical cost. x) Leases The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement. TransAdelaide has assessed whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset. TransAdelaide has entered into operating leases.
Operating Leases Operating leases are recognised as an expense in the Income Statement on a straight-line basis over the lease term. The straight-line basis is representative of the pattern of benefits derived from the leased assets.
Lease incentives All incentives for the agreement of new or renewed operating leases are recognised as an integral part of the net consideration agreed for the use of the leased asset. Incentives received to enter into operating leases are recognised as a liability.
The aggregate benefits of lease incentives received by the authority in respect of operating leases have been recorded as reduction of rental expense over the lease term, on a straight line basis.
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Lease incentives in the form of leasehold improvements are capitalised as an asset and depreciated over the remaining term of the lease or estimated useful life of the improvement, whichever is shorter. y) Unrecognised contractual commitments and contingent assets and liabilities Commitments include those operating, capital and outsourcing commitments arising from contractual or statutory sources and are disclosed at their nominal value.
Contingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by way of a note and, if quantifiable, are measured at nominal value.
Unrecognised contractual commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to the Australian Taxation Office. If GST is not payable to, or recoverable from the Australian Taxation Office, the commitments and contingencies are disclosed on a gross basis. z) Insurance TransAdelaide has arranged, through South Australian Government Financing Authority (SAICORP Division), to insure all major risks of TransAdelaide, excluding the Adelaide Railway Station Building, which is insured through Aon Services Pty Ltd (Aon).
The excess payable with Aon varies depending on the aspect of risk insured. There is a standard $1 million excess on all insurance cover with SAICORP. aa) Joint Venture In TransAdelaide’s financial statements the investment in joint venture entity is carried at the lower of cost or recoverable amount. TransAdelaide’s share of the joint venture entity’s net profit or loss is recognised in the Income Statement from the date joint control commenced. The economic entity’s investment in joint venture entity is based upon the equity method of accounting for investment in associates as per Australian Accounting Standard AASB 128, “Investments in Associates”.
Note 3 - Financial Risk Management TransAdelaide is exposed to a variety of financial risks, market risk (foreign exchange and price), credit risk and liquidity risk. Risk management is carried out by the Corporate Services unit and risk management policies and practices are in accordance with Australian Risk Management Standards and internal written policies approved by the Board. TransAdelaide has non-interest bearing assets (cash on hand and on call and receivables) and liabilities (payables) and interest bearing assets (held to maturity investments) and liabilities (borrowings from the SA Government).
Page 57 TransAdelaide Annual Report 2007-08
TransAdelaide’s exposure to foreign exchange risk and cash flow interest risk is minimal. TransAdelaide is exposed to price risk for changes in interest rates that relate to long- term debt obligations and investments classified either as available-for-sale or fair value. TransAdelaide has no significant concentration of credit risk. TransAdelaide has policies and procedures in place to ensure that transactions occur with customers with appropriate credit history.
Note 4 - Changes in Accounting Policies The Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective, have not been adopted by TransAdelaide for the reporting period ending 30 June 2008. TransAdelaide has assessed the impact of the new and amended standards and interpretations and considers there will be no impact on the accounting policies or the financial report of the authority.
Note 5 - Segment information TransAdelaide operations fully relate to the provision of public transport services in the Adelaide metropolitan area.
Note 6 - Restructure / Asset Transfer / Write-offs In November 2007, Cabinet approved the transfer of assets from TransAdelaide to the Minister for Transport. In December, 2007 the Governor, by proclamation with the advice and consent of the Executive Government under Schedule 4 clause 3 of the Passenger Transport Act 1994 , transferred real and personal property from TransAdelaide to the Minister for Transport effective, 1 January 2008. The transfer represents a significant restructure of TransAdelaide’s assets.
The written down value of assets transferred was $525.410 million. As no sale proceeds were assigned for the asset transfer, this resulted in a loss on transfer of non-current assets of $525.410 million. The loss on assets transfer above, Debt Forgiven and Capital Grant Funding write-back are all related to the asset transfer. Due to their materiality to TransAdelaide’s operations for the year 2007-08, they have been separately disclosed in the Income Statement and treated effectively (from an accounting disclosure viewpoint) as a significant restructure of TransAdelaide. Details are as follows:
($,000) Loss on Asset Transfer ( 525,410) (refer note 10) Debt Forgiven 67,134 (refer note 30) Capital Grant Funding write back 9,045 (refer note 34) Net Asset Transfer/Write-off ( 449,231)
From 1 January 2008, The Department of Transport, Energy and Infrastructure (DTEI) controls the majority of TransAdelaide’s non-current assets and TransAdelaide provides rail passenger services using these assets which are leased back from DTEI under two leases with ‘peppercorn lease’ rentals. Under the lease agreements TransAdelaide
Page 58 TransAdelaide Annual Report 2007-08
undertakes all maintenance associated with the provision of the service and is compensated under the service level agreement with DTEI.
Note 7 - Revenues from the provision of services
2008 2007 $'000 $'000 Services received by entities within SA Government 82,797 93,555 Services received by entities external to the SA Government 3,674 3,611
Total revenues from the provision of services 86,471 97,166
Note 8 - Revenues from/payments to SA Government
2008 2007 $'000 $'000 (a) Revenues from SA Government Included in Income Statement: Appropriations from Consolidated Account pursuant to the Appropriation Act 2,063 2,669
Included in Balance Sheet movements: Grants for capital expenditure 34 726 2,753
(b) Payments to SA Government Dividends paid - 5,296
Dividends paid and payable have been specifically determined and approved in consultation with the Treasurer and TransAdelaide’s Minister. No ordinary or special dividends were paid to the Department of Treasury and Finance for 2007-08
Note 9 - Financial income
2008 2007 $'000 $'000 Interest received/receivable from entities within SA Government 673 1,400
Total financial income 673 1,400
Page 59 TransAdelaide Annual Report 2007-08
Note 10 - Net gain (loss) from the disposal of assets
2008 2007 $'000 $'000 Rollingstock Proceeds from disposal - 8 Less net book value of assets transferred (74,542) - Less net book value of assets disposed (90) (95)
Net gain (loss) from disposal of rollingstock (74,632) (87)
Permanent way Proceeds from disposal - - Less net book value of assets transferred (175,741) - Less net book value of assets disposed (38) (86)
Net gain (loss) from disposal of permanent way (175,779) (86)
Land and buildings Proceeds from disposal 43 18 Less net book value of assets transferred (221,104) - Less net book value of assets disposed (36) (48)
Net gain (loss) from disposal of land and buildings (221,097) (30)
Other property, plant and equipment Proceeds from disposal 20 8 Less net book value of assets transferred (34,354) - Less net book value of assets disposed (296) (7)
Net gain (loss) from disposal of other property, plant and equipment (34,630) 1
Investment Properties Proceeds from disposal 903 1,588 Less net book value of assets transferred (10,121) - Less net book value of assets disposed (240) (1,010)
Net gain (loss) from disposal of investment properties (9,458) 578
Assets under construction Proceeds from disposal - -
Page 60 TransAdelaide Annual Report 2007-08
Less net book value of assets transferred (9,548) - Less net book value of assets disposed - -
Net gain (loss) from disposal of assets under construction (9,548) -
Total Assets Total proceeds from disposal 965 1,622 Less net book value of assets transferred (525,410) - Less total value of assets disposed (700) (1,246)
Total net gain (loss) from disposal of assets (525,145) 376
Total Assets disposals comprise:
Assets Disposed of in the ordinary course of business Total proceeds from disposal 965 1,622 Less total value of assets disposed (700) (1,246)
Net gain (loss) from disposal of assets 265 376
Assets transferred to the Minister for Transport/ Department of Transport, Energy and Infrastructure Total proceeds from transfer - - Less total value of assets transferred (525,410) -
Net gain (loss) from transfer of assets (525,410) -
Total net gain (loss) from disposal of assets (525,145) 376
Refer Note 6 for details of the transfer of assets.
Note 11 - Other revenues
2008 2007 $'000 $'000 Other revenues from entities external to the SA Government Property rental 3,183 4,250 Fair value adjustment to investment properties - 258 Other revenue 2,548 2,290
Page 61 TransAdelaide Annual Report 2007-08
5,731 6,798 Other revenues from entities within SA Government Other services provided to Department of Transport, Energy and Infrastructure (DTEI) 17,483 3,071 Property rental 783 930 Amortisation of capitalised funding grants 415 521 Write-off of capitalised grants when asset disposed - 153
18,681 4,675
Total other revenues 24,412 11,473
Future minimum payments receivable from non-cancellable operating leases of non- investment properties are: (i) within one year $881,000 (ii) between 2 and 5 years $128,000, and (iii) later than 5 years $51,000. Leases include advertising and display sites, mobile telephone transmitters and real estate with tenancies retained by TransAdelaide on transfer of assets to the Minister for Transport.
Note 12 - Employee benefits cost
2008 2007 $'000 $'000 Salaries and wages 36,675 31,260 Long Service Leave 1,433 1,393 Annual Leave 3,407 3,033 Block Book Off 585 564 Retiring and Death Gratuity 9 7 Employment on-costs - superannuation 3,985 3,526 Employment on-costs - payroll tax 2,741 1,796 Employment costs - other 933 733 Board fees 202 138
Total employee benefits costs 49,970 42,450
Targeted Voluntary Separation Packages (TVSPs) Total TVSP payments in 2008 amounted to $0 (2007: $0)
Remuneration of Employees
Total Remuneration for employees > $100,000 5,642 3,954
Page 62 TransAdelaide Annual Report 2007-08
The number of employees whose remuneration falls within the following remuneration bands were:
No. of No. of Remuneration Band $ Employees Employees 100,000 - 109,999 18 16 110,000 - 119,999 11 4 120,000 - 129,999 7 3 130,000 - 139,999 2 4 140,000 - 149,999 - 1 150,000 - 159,999 3 - 160,000 - 169,999 2 1 170,000 - 179,999 - 2 180,000 - 189,999 2 - 190,000 - 199,999 1 - 250,000 - 259,999 - 1
46 32
The table includes: - all employees who received remuneration of $100,000 or more during the year. Remuneration of employees reflects all costs of employment including salaries and wages, superannuation contributions, fringe benefits tax and any other salary sacrifice benefits
Note 13 - Key management personnel
(a) Board Members
The following persons held the position of board member during the financial year:
Ms V Hickey Mr K Benger Mr R Jowett Ms F Magill Retired 2 February 2008
Ms L Kosmala Retired 2 February 2008 Mr J Hearsch Appointed 3 February 2008 Mr R Hook Appointed 3 February 2008 Miss MM Starrs Appointed 3 February 2008
(b) Other key management personnel
The following persons also held authority and responsibility for planning, directing and controlling the activities of TransAdelaide, directly or indirectly during the financial year:
Page 63 TransAdelaide Annual Report 2007-08
Bill Watson Retired 08 February 2008 General Manager
Randall Barry Appointed 08 February 2008 Acting General Manager
Randall Barry Executive Manager - Planning & Development Suzanne Ridding Retired 30 May 2008 Executive Manager - Corporate Services Shaun Matters Appointed 15 June 2008 Executive Manager - Corporate Services Vi Nguyen Executive Manager - Infrastructure Fiona Kidd Executive Manager - Organisation Development
Philip Saunders Appointed 25 February 2008 Executive Manager - Planning & Development Valdis Evele Executive Manager - Rail Systems James Hall Executive Manager - Trams
(c) Key management personnel compensation
Key management personnel compensation for the years ended 30 June 2008 and 2007 is set out below:
The key management personnel are the board members and the senior management team (including the General Manager) who have responsibility for the strategic direction and management of TransAdelaide.
2008 2007 $'000 $'000 Short-term employee benefits 1,481 1,301
(d) Remuneration of board members
The number of board members whose remuneration received or receivable falls within the following bands:
No. of Board No. of Board Remuneration Band $ Members Members
$0 - $9,999 1 1 $10,000 - $19,999 3 - $20,000 - $29,999 2 3 $30,000 - $39,999 - 1 $40,000 - $49,999 - 1 $50,000 - $59,999 2 - 8 6
Page 64 TransAdelaide Annual Report 2007-08
The total remuneration received and receivable by those board members was $202,000 (2007 - $138,000) which includes fringe benefits and superannuation contributions.
Amounts paid to a superannuation plan for board members was $45,000 (2007 $44,000)
In accordance with the Department of the Premier and Cabinet Circular No. 016, government employees did not receive any remuneration for board duties during the financial year.
Unless otherwise disclosed, transactions between members are on conditions no more favourable than those that it is reasonable to expect the entity would have adopted if dealing with the related party at arm's length in the same circumstances
Remuneration of committee members
The following board members were also committee members on the TransAdelaide Audit and Risk Committee:
Ms V Hickey Mr K Benger Ms F Magill Retired 2 February 2008
Miss MM Starrs Appointed 3 February 2008
Remuneration received by board members of this committee is included in the previous table - Remuneration of board members
Board members Ms V Hickey and Mr K Benger were also on the board of Transit Plus Pty Ltd in which TransAdelaide has a 50% interest. Board fees relating to these positions are paid to the board members by TransAdelaide and are included in the remuneration above.
Note 14 - Related party disclosures
TransAdelaide has a 50% interest in a joint venture entity Transit Plus Pty Ltd. TransAdelaide received an annual management fee of $125,600 (2007 $126,000) and profit distributions from the joint venture entity of $835,000 (2007 $816,000).
Page 65 TransAdelaide Annual Report 2007-08
Note 15 - Supplies and services
2008 2007 $'000 $'000 Supplies and services provided by entities external to the SA Government
Security 2,072 1,489
Rollingstock maintenance 9,734 9,988
Rollingstock fuel & power 11,192 9,453
Other supplies and services 29,359 17,838
Total supplies and services - Non SA Government entities 52,357 38,768
Supplies and services provided by entities within SA Government
Accommodation and telecommunication 733 1,957 Information technology expenses 31 -
Audit fee 160 165
Legal costs 49 32
Accreditation fees 185 81
Contract Supplies & Maintenance 339 -
Vehicle leasing and fuel costs 1,066 527
Insurance 441 604
Security 416 409 Other supplies and services 11 581
Total supplies and services - SA Government entities 3,431 4,356
Total supplies and services 55,788 43,124
Page 66 TransAdelaide Annual Report 2007-08
Consultants
The number and dollar amount of consultancies paid / payable (included in supplies and services expense) that fell within the following bands:
2008 2007 No. $'000 No. $'000 Below $10,000 27 88 3 18 Between $10,000 and $50,000 10 309 1 14 Above $50,000 2 224 1 81 Total paid / payable to the consultants engaged 39 621 5 113 Auditor's Remuneration Audit fees paid / payable to the Auditor-General's Department 160 165
160 165
Other Services No other services were provided by the Auditor-General’s Department .
Note 16 - Depreciation and amortisation expense
2008 2007 $'000 $'000 Depreciation Rollingstock 6,200 8,125 Permanent way 3,792 7,578 Buildings 1,323 2,673 Other property, plant and equipment 804 1,332
12,119 19,708 Amortisation Intangible assets 85 98
85 98
Total depreciation and amortisation 12,204 19,806
Page 67 TransAdelaide Annual Report 2007-08
Note 17 - Borrowing Costs
2008 2007 $'000 $'000 Interest on borrowings 2,302 4,922 Treasury guarantee fee 211 489
Borrowing costs - SA Government 2,513 5,411
Total borrowing costs 2,513 5,411
Note 18 - Other expenses
2008 2007 $'000 $'000 Write down of inventories to net realisable value 27 37 Property, plant and equipment write offs - 1,584
Total other expenses 27 1,621
Note 19 - Income tax equivalent expense
2008 2007 $'000 $'000 Profit/(loss) before income tax expense (454,888) 1,614 Prima facie tax (if profit) thereon at 30% - (484)
Income tax equivalent expense - SA Government - (484)
Note 20 - Cash and cash equivalents
2008 2007 $'000 $'000 Cash at bank 4,105 20,634 Imprest account/cash on hand 37 36 4,142 20,670
Page 68 TransAdelaide Annual Report 2007-08
Interest rate risk
Cash on hand is non-interest bearing. Deposits at call and with Treasurer earn a floating interest rate, based on daily bank deposit rates. The carrying amount of cash and cash equivalents represents fair value.
Note 21 - Receivables
2008 2007 $'000 $'000 Current Gross accrued income 8,632 2,001 Less: Provision for doubtful debts (4) (4) Tax equivalent refund - 210 Prepayments 6 186 GST receivable 134 -
Total receivables 8,768 2,393
Receivables from SA Government entities Accrued income 2,354 537 DTEI capital works / service recharge 5,206 - Tax equivalent refund - 210 Prepayments 6 34
Total receivables from SA Government entities 7,566 781
Receivables from Non SA Government entities Accrued income 1,072 1,464 Less: Provision for doubtful debts (4) (4) Prepayments - 152 GST receivable 134 -
Total receivables from Non SA Government entities 1,202 1,612
Total receivables 8,768 2,393
The total receivable figure does not include 'non-current receivables' as TransAdelaide does not have any receivables that meet the definition of non-current. Any 'non-current receivables' would be disclosed in this note .
Page 69 TransAdelaide Annual Report 2007-08
Provision for doubtful debts
The provision for doubtful debts is recognised when there is objective evidence that a receivable is impaired. An allowance for impairment loss has been recognised in 'other expenses' in the Income Statement for specific debtors and debtors assessed on a collective basis for which such evidence exists.
Note 21 - Receivables (continued) 2008 2007 $'000 $'000 Movements in the provision for doubtful debts: Carrying amount at the beginning of the period 4 182 Amounts written off - (20) Reduction in provision for amounts recovered - (158) Carrying amount at the end of the period 4 4
Bad and doubtful debts
TransAdelaide has recognised a bad and doubtful debt expense of $0 (2007 $0) in the Income Statement.
Note 22 - Inventories
2008 2007 $'000 $'000 Stores inventories 4,947 4,886 Less: Provision for obsolescence - -
Net Stores Inventories 4,947 4,886
Note 23 - Property, plant and equipment
2008 2007 $'000 $'000 Rollingstock Railcars Spare parts and associated equipment at Fair Value - 5,184 Less: Accumulated depreciation - 2,182 Railcar equipment at Fair Value - 3,002
Railcars at Fair Value - 1,970
Page 70 TransAdelaide Annual Report 2007-08
At independent valuation 1 July 2004 204,195 402,500 Less: Accumulated depreciation 85,601 214,581 Railcars at Valuation 118,594 189,889
Total Railcars 118,594 192,891
Tramcars Spare parts at Fair Value - 79 Less: Accumulated depreciation - 33 Tramcar spares at fair value - 46
Tramcars at Fair Value - 243 At independent valuation 1 July 2004 - 17,375 Less: Accumulated depreciation - 14,632 Tramcars at valuation - 2,986
Total Tramcars - 3,032
Total Rollingstock 118,594 195,923
Land and Buildings Freehold Land: At Fair Value - 1,388 At independent valuation 1 July 2004 - 131,432 Total land - 132,820
Buildings: At Fair Value - 7,819 At Independent Valuation 1 July 2004 - 183,439 Less: Accumulated depreciation - 101,735 Total buildings - 89,523
Total land and buildings - 222,343
Permanent Way At Fair Value - 27,621 At Independent Valuation 1 July 2004 - 376,866 Less: Accumulated depreciation - 204,517 Total permanent way - 199,970
Page 71 TransAdelaide Annual Report 2007-08
Other Property, Plant and Equipment At Fair Value 2,465 19,722 Less: Accumulated depreciation 1,653 11,349 Total other property, plant & equipment 812 8,373
Assets Under Construction Rollingstock: - Railcars 375 1,857 Land and buildings - 4,885 Permanent way - 4,718 Other property, plant & equipment 761 694
Total assets under construction 1,136 12,154
Total property, plant & equipment 120,542 638,763
Carrying amounts of property, plant and equipment that would have been recognised if these assets were stated at Cost Rollingstock 75,233 91,383 Land and buildings - 70,578 Permanent way - 97,425 Other property, plant & equipment 2,189 8,613
Total property, plant & equipment at Cost 77,422 267,999
In accordance with South Australian State Treasurer's Accounting Policy Framework, TransAdelaide has assessed that assets recorded at cost reflect fair value where such assets have not been independently revalued The most recent independent valuation was undertaken by Valuations Chambers during 2004-05 financial year and included the major asset classes being trams, trains, land, buildings and permanent way. All major non-current assets are revalued every five years on an existing use, fair value basis in the financial statements at the revalued amounts. During the current financial year, the majority of the rail specific assets including land, buildings, plant, equipment and other tangible property owned by TransAdelaide were transferred to the Department of Transport, Energy and Infrastructure, refer Note 27 for details of assets transferred. There were no indications of impairment of property, plant and equipment, infrastructure and intangible assets at 30 June 2008
Page 72 TransAdelaide Annual Report 2007-08
Note 24 - Investment property
2008 2007 $'000 $'000 Opening balance at fair value 10,322 11,074 Less Disposals (240) (1,010) Less Transfer to the Minister for Transport / Department of Transport, Energy and Infrastructure (10,082) - Net gain (loss) from fair value adjustment - 258
Restated closing balance at fair value - 10,322
In November 2007, Cabinet approved the transfer of assets from TransAdelaide to the Minister for Transport. In December, 2007 the Governor, by proclamation with the advice and consent of the Executive Government under Schedule 4 clause 3 of the Passenger Transport Act 1994, transferred real and personal property from TransAdelaide to the Minister for Transport, as such all Investment properties held at 1 January 2008 were transferred to the Minister for Transport. A further revaluation was conducted of the disused railway corridor land located between Dry Creek and Pooraka resulting in an increment based on the Valuer General's valuation. One parcel of land in the corridor was sold prior to the asset transfer.
Valuation basis Investment properties are measured at fair value, being the amounts for which the properties could be exchanged between willing parties in an arms length transaction, based on current prices in an active market for similar property. A valuation was performed by Valuation Chambers in the 2004-05 financial year
Note 25 - Intangible assets
2008 2007 $'000 $'000 Computer Software Internally developed computer software 107 87 Less Accumulated amortisation (76) (49) Other computer software 1,110 1,185 Less: Accumulated amortisation (1,028) (1,067)
Total Intangible assets 113 156
Page 73 TransAdelaide Annual Report 2007-08
Note 26 - Investments accounted for using the equity method
2008 2007 $'000 $'000 Ownership Interest Joint Venture Transitplus Pty Ltd 50% 50% Investment in Related Entities Transitplus Pty Ltd 200 200
200 200 Principal Activities Transitplus Pty Ltd - Provision of bus services
Investment in Transitplus Pty Ltd Carrying amount at 1 July 200 200 Share of net profit 961 942 Less distributions received or receivable (961) (942)
Carrying amount at 30 June 200 200
In TransAdelaide's financial statements the investment in joint venture entity is carried at the lower of cost or recoverable amount. TransAdelaide's share of the joint venture entity's net profit or loss is recognised in the Income Statement from the date joint control commenced.
The economic entity's investment in joint venture entity is based upon the equity method of accounting for investment in associates as per AASB 128.
Page 74 TransAdelaide Annual Report 2007-08
Note 27 - Reconciliation of asset carrying amounts
Total Property, Investment Total Non- Rolling- Land & Permanent Other Assets Under Plant & Property Intangible current stock Buildings Way PP&E Construction Equipment Assets Assets Assets $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Carrying amount at beginning of year 195,923 222,343 199,970 8,373 12,154 638,763 10,322 156 649,241 Transfers ------Change in accounting policy ------Restated carrying amount at beginning of year 195,923 222,343 199,970 8,373 12,154 638,763 10,322 156 649,241 Additions - 1,280 - 838 9,037 11,155 - 42 11,197 WIP Write Offs - - - - (73) (73) - - (73) Disposals (90) (36) (38) (74) - (238) (240) - (478) Transfers to DTEI (74,542) (221,104) (175,741) (34,354) (9,548) (515,289) (10,121) - (525,410) Transfers 3,503 (1,160) (20,399) 27,055 (10,434) (1,435) 39 - (1,396) Change in accounting policy - - - (222) - (222) - - (222) Depreciation (6,200) (1,323) (3,792) (804) - (12,119) - (85) (12,204)
Carrying amount at end of year 118,594 - - 812 1,136 120,542 - 113 120,655
Page 75 TransAdelaide Annual Report 2007-08
Note 28 - Payables
2008 2007 $'000 $'000 Current: Creditors 4,478 4,640 Accrued expenses 3,228 4,588 Accrued employment on-costs 685 698 GST payable - 36
8,391 9,962 Expected to be paid more than 12 months after reporting date Employment on-costs 1,459 922
Total current payables 9,850 10,884
Payables to SA Government entities Creditors 261 544 Accrued expenses 599 831 Employment on-costs 2,144 1,620
Total payables to SA Government entities 3,004 2,995
Payables to Non SA Government entities Creditors 4,217 4,096 Accrued expenses 2,629 3,757 GST payable - 36
Total payables to Non SA Government entities 6,846 7,889
Total payables 9,850 10,884
Page 76 TransAdelaide Annual Report 2007-08
Note 29 - Financial Instruments / Financial Risk Management
Categories of Financial Instruments
Details of the significant accounting policies and methods adopted including the criteria for recognition, the basis of measurement, and the basis on which income and expense are recognised with respect to each class of financial assets, financial liabilities and equity instruments are disclosed in Note 2 Summary of Significant Accounting Policies.
Category of financial asset and liability
Carrying Carrying Balance Sheet line item Note amount amount 2008 2007 Financial Assets $’000 $’000 Cash and cash equivalents Cash and cash equivalents 20 4,142 20,670 Loans and receivables Receivables (1) 21 8,768 2,393 Held to maturity investments Investment in Transitplus 26 200 200 Total financial assets at cost 13,110 23,263
Financial Liabilities Financial liabilities at cost Payables (1) 28 9,850 10,884 Borrowings/ Interest bearing liabilities 30 / 34 - 75,205 Other financial liabilities 33 702 9,006 Total financial liabilities at cost 10,552 95,095 Credit Risk
Credit risk arises when there is the possibility of TransAdelaide’s debtors defaulting on their contractual obligations resulting in financial loss to TransAdelaide. TransAdelaide measures credit risk on a fair value basis and monitors risk on a regular basis. TransAdelaide has minimal concentration of credit risk. TransAdelaide has policies and procedures in place to ensure that transactions occur with customers with appropriate credit history.
In 2007-08 TransAdelaide has not engaged in any hedge activities.
Allowances for impairment of financial assets are calculated on past experience and current and expected changes in client credit rating. Currently TransAdelaide does not hold any collateral as security to its financial assets. Other than receivables, there is no evidence to indicate that the financial assets are impaired. Refer to Note 21 for information in the allowance for impairment in relation to receivables.
Page 77 TransAdelaide Annual Report 2007-08
Table 29.1 - Ageing Analysis of Financial Assets
Past due by
< 30 days 30 - 60 days > 60 days Total
2008 $'000 $'000 $'000 $'000 Not impaired Receivables 8,446 27 291 8,764 Impaired Receivables - - 4 4
2007
Not impaired
Receivables 1,805 45 539 2,389 Impaired Receivables - - 4 4
(1) All items above are carried at cost.
Page 78 TransAdelaide Annual Report 2007-08
Table 29.2 – Maturity Analysis of financial assets and liabilities
Contractual
Maturities
Carrying amount < 1 year $'000 $'000 2008 Financial assets Cash & cash equivalent 4,142 4,142 Receivables 8,768 8,768 Other financial assets 200 200 Total financial assets 13,110 13,110 Financial liabilities Payables 9,850 9,850 Other financial liabilities 702 702 Total financial liabilities 10,552 10,552
Contractual Maturities Carrying amount < 1 year $'000 $'000 2007 Financial assets Cash & cash equivalent 20,670 20,670 Receivables 2,393 2,393 Other financial assets 200 200 Total financial assets 23,263 23,263
Financial liabilities
Payables 10,884 10,884
Borrowings 75,205 75,205 Other financial liabilities 9,006 9,006 Total financial liabilities 95,095 95,095
Page 79 TransAdelaide Annual Report 2007-08
Liquidity Risk
Liquidity risk arises where TransAdelaide is unable to meet its financial obligations as they fall due. The continued existence of TransAdelaide is dependent on maintaining a service level agreement with the transport division of DTEI and the funding that flows.
Market Risk
Market risk for TransAdelaide is primarily through interest rate risk. Exposure to interest rate risk may arise through its interest bearing liabilities, including borrowings. TransAdelaide has no exposure to foreign currency or other price risks.
Sensitivity Disclosure Analysis
A sensitivity analysis has not been undertaken for the interest rate risk of the agency as it has been determined that the possible impact on profit and loss and total equity from fluctuations in interest rates is immaterial.
Credit Standby Arrangements
TransAdelaide has a $752,000 (2007: $687,000) credit card facility with the ANZ Bank. The unused portion of this facility as at 30 June 2008 was $693,000 (2007: $573,000).
Note 30 - Borrowings & Debt Forgiven
2008 2007 $'000 $'000 Movement Schedule Opening Balance - 1 July 75,205 75,205 Less - repayment (8,071) - Less - debt forgiven (67,134) - Balance 30 June - 75,205
As a result of the rail specific assets transferred to the Minister for Transport/Department of Transport, Energy and Infrastructure, the Treasurer approved that borrowings owed to the Department of Treasury and Finance were forgiven. The debt forgiven is shown as a revenue item and included as part of the restructure / net asset transfer & write off.
Page 80 TransAdelaide Annual Report 2007-08
Note 31 - Employee benefits
2008 2007 $'000 $'000 Current: Annual leave 2,850 3,021 Long service leave 990 903 Block book off 899 783 Retiring and death gratuity 6 19
Total current employee benefits provisions 4,745 4,726 Accrued wages and salaries 1,610 1,213
6,355 5,939 Expected to be paid more than 12 months after reporting date Annual leave 2,075 1,604 Retiring and death gratuity 93 84
Total short-term employee benefits 8,523 7,627
Non-current: Long service leave 11,230 11,094
Total long-term employee benefits 11,230 11,094
Total employee benefits 19,753 18,721
Employee benefits as above 19,753 18,721 Plus: related on-costs included in current payables 2,144 1,620
Aggregate employee benefits plus related on- costs 21,897 20,341
Page 81 TransAdelaide Annual Report 2007-08
Note 32 – Provisions 2008 2007 $'000 $'000 Current: Workers compensation claims 1,066 1,399 Third party accident damage 671 975 Railcar maintenance debt 276 281
Total short-term provisions 2,013 2,655
Non-current: Workers compensation claims 7,099 7,785 Third party accident damage 3,784 2,735
Total long-term provisions 10,883 10,520
Total: Workers compensation claims 8,165 9,184 Third party accident damage 4,455 3,710 Railcar maintenance debt 276 281
Total provisions 12,896 13,175
Note 32(a) - Reconciliation of Provisions movements
Workers Third Party Railcar Comp. Accident Maint. Claims Damage Debt Total $'000 $'000 $'000 $'000
Carrying amount at 1 July 2007 9,184 3,710 281 13,175
Recognised provisions in 2007-08 (36) 871 - 835 less payments made in 2007-08 (983) (126) (5) (1,114)
Movement (1,019) 745 (5) (279)
Carrying amount at 30 June 2008 8,165 4,455 276 12,896
Page 82 TransAdelaide Annual Report 2007-08
Workers Compensation This liability reflects unsettled workers compensation claims. The workers compensation provision is based on an actuarial assessment of outstanding claims by Brett & Watson Pty Ltd at 30 June 2008.
Third Party Accident Damage This liability reflects TransAdelaide's partial self insurance for this operational risk. The third party accident damage provision is based on an actuarial assessment of outstanding claims performed by Brett & Watson Pty Ltd as at 30 June 2008. TransAdelaide has reinsurance for claims exceeding $2.1 million for claims prior to 1 July 1997 and exceeding $1 million for claims since 1 July 1997.
Railcar Maintenance Debt This liability relates to work being performed by Bombardier Transportation Ltd on the 2000 and 3000 class bogies for which, under the Railcar maintenance and service contract, TransAdelaide has agreed to pay a portion.
Note 33 - Other liabilities
2008 2007 $'000 $'000 Current: Revenue received for future services from entities within SA Government 702 207 from entities external to the SA Government - 64
Total current other liabilities 702 271
Note 34 - Government Grants
Note 34 - Government Grants 2008 2007 $'000 $'000 Non-Current: Capital grants from entities within SA Government Grants received 10,451 9,726 Less: Accumulated amortisation (1,406) (991) Less: Recognised on disposal of assets (9,045) -
Page 83 TransAdelaide Annual Report 2007-08
Total government grants - 8,735
$'000 $'000 Movement in government grants Carrying amount at beginning of year 8,735 6,656 Additional capital grants received 726 2,753 Amortisation (416) (521) Written back on disposal of asset - (153) Written back on asset transfer (9,045) -
Carrying amount at end of year - 8,735
In accordance with AASB 120, government grants received for capital expenditure are amortised over the life of the resulting asset. During the current financial year TransAdelaide received grants for work performed on the Marion Oaklands Transport Interchange.
* The accounting policies adopted and the description of capital grants received by TransAdelaide is disclosed in note 2. Normally capital grants are deferred and amortised over the life of the non-current assets. For non-current assets transferred to the Minister for Transport/Department of Transport, Energy and Infrastructure, as TransAdelaide no longer controls those assets the capital funding previously deferred ($9.045 million) has been written back to revenue and shown as part of the restructure / net asset transfer & write off.
Note 35 - Reserves
2008 2007 $'000 $'000
Asset revaluation reserve 51,170 469,278
Movements during the year Opening balance 469,278 474,510
Restated opening balance 469,278 474,510
Transferred to retained profits amounts realised on disposal of: Land and buildings (192,335) (5) Infrastructure (158,638) (485) Rollingstock (67,135) (4,742)
Page 84 TransAdelaide Annual Report 2007-08
Restated reserves as at end of year 51,170 469,278
Nature and purpose of reserves
The asset revaluation reserve includes the net revaluation increments (decrements) arising from the revaluation of non-current assets in accordance with AASB 116. Asset decrements are expensed where no previous revaluation reserve increment exists for that asset.
Upon disposal of revalued assets, any related revaluation increment standing to the credit of the asset revaluation reserve is transferred to retained profits.
Note 36 - Commitments
Capital Commitments
Capital expenditure contracted for at the reporting date but not recognised as liabilities in the financial report, are payable as follows:
2008 2007 $'000 $'000 Within one year 7,015 1,056
Total capital commitments 7,015 1,056
Net capital expenditure incurred 11,179 20,001
TransAdelaide's capital commitments are for the refurbishment of the railcars subject to cross border leases that were retained as TransAdelaide assets and minor Information Systems improvements
Remuneration commitments
Remuneration commitments 2008 2007 $'000 $'000 Within one year 1,792 1,699 Later than one year but not later than five years 3,099 1,160
Total remuneration commitments 4,891 2,859
Amounts disclosed include commitments arising from executive and other service contracts. TransAdelaide does not offer remuneration contracts greater than 5 years.
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Operating lease commitments
Commitments in relation to operating leases contracted for at the reporting date but not recognised as liabilities are payable as follows:
2008 2007 $'000 $'000 Not later than one year 869 501 Later than one year but not later than five years 565 365
Total operating lease commitments 1,434 866
Operating lease expenses paid 2,076 1,966
TransAdelaide leases property under operating leases expiring from one month to four years. The leases generally provide TransAdelaide with a right of renewal at which time all terms are negotiated. Contingent rental payments are based upon either movements in the Consumer Price Index or operating criteria.
Note 37 - Contingent assets and contingent liabilities
TransAdelaide has a contingent liability in relation to the warranty of AUSTRICS products sold and provision of annual support of the same. The life of various elements of the indemnities vary between one and six years from when AUSTRICS was sold in 2004-05. As at balance date, this could not be reliably measured.
TransAdelaide has fifty 3000/3100 class railcars subject to a cross border lease which expires in April 2023. Encumbrances exist within this agreement which gives rise to financial consequences in the event of loss or destruction of these leased railcar assets. The South Australian Financing Authority monitors the majority of foregoing obligations. To balance date, no event has occurred which would give rise to the encumbrances/consquences.
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Note 38 - Reconciliation of cash and cash equivalents
2008 2007 $'000 $'000 (a) Reconciliation of Cash Cash as at 30 June 4,142 20,670
(b) Reconciliation of Net Cash provided by Operating Activities to Net Profit (Loss) from Ordinary Activities after related income tax expense 2008 2007 $'000 $'000 Net profit (loss) (5,657) 1,130
Add (less) non-cash items Depreciation 12,119 19,708 Amortisation 85 98 (Gain) loss on disposal of assets (265) (376) Amortisation of grant funding (415) (521) Write-back of unamortised capital grants on disposal of underlying assets - (153) Write-off of work in progress project 73 1,584 Revaluation (increments) decrements - (258)
Net Cash provided by operating activities before change in assets and liabilities 5,940 21,212
Movements in: Receivables (6,375) 157 Stores inventories (61) (577) Payables 1,037 (1,656) Interest payable - (23) Employee benefits provisions (1,032) 544 Other provisions 279 (215) Other liabilities 1,843 2,604
Net Cash Provided by Operating Activities after related income tax equivalent expense 1,631 22,046
The effective interest rate on cash deposits held throughout the year was 6.57%.
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Note 39 - After balance date events
There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the directors of TransAdelaide, to affect significantly the operations of TransAdelaide, the results of those operations, or the state of affairs of TransAdelaide in future financial years.
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Certification of the Financial Report
Minister for Transport
Certification of the Financial Report
We certify that the attached general purpose financial report for TransAdelaide:
1. complies with relevant Treasurer’s instructions issued under section 41 of the Public Finance and Audit Act 1987, and relevant Australian Accounting Standards;
2. is in accordance with the accounts and records of the authority; and
3. presents a true and fair view of the financial position of TransAdelaide as at 30 June 2008 and the results of its operation and cash flows for the financial year.
We certify that the internal controls employed by TransAdelaide for the financial year over its financial reporting and its preparation of the general purpose financial report have been effective throughout the reporting period and there are reasonable grounds to believe the authority will be able to pay its debts as and when they become due and payable.
Signed in accordance with a resolution of the board members
Virginia Hickey Robert Stobbe Chair General Manager
Shaun Matters Executive Manager Corporate Services
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