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Transport Ticketing Authority Annual Report 2012-13

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Transport Ticketing Authority Annual Report 2012-13 annual report 2012–13 Contents About the Transport Ticketing Authority .................................................................................................................2 Our role ..............................................................................................................................................................2 Our main objectives and functions ....................................................................................................................2 Our key business partners .................................................................................................................................3 Chief Executive Officer and Administrator’s report ................................................................................................4 Board of Directors ....................................................................................................................................................6 About myki ...............................................................................................................................................................7 About Metcard ..........................................................................................................................................................8 Report of operations ................................................................................................................................................9 Accountable Officer’s and Chief Finance and Accounting Officer’s declaration ...................................................25 Auditor-General’s report........................................................................................................................................26 Comprehensive operating statement ....................................................................................................................28 Balance sheet ........................................................................................................................................................29 Statement of changes in equity .............................................................................................................................30 Cash flow statement ..............................................................................................................................................31 Notes to financial statements ...............................................................................................................................32 Annual Report 2012–13 1 About the Transport Ticketing Authority Our role • high performance levels by the myki and Metcard ticketing systems consistent with contractual The Transport Ticketing Authority (TTA) was requirements and within approved budgets, established in June 2003 to: including the ongoing integrity and value for money of ticketing infrastructure and operations • manage the Metcard public transport ticketing system contract • administration of fare revenue generated by myki and Metcard as agent for Public Transport • oversee the design, build, delivery and operation Victoria (PTV) and transport operators. of the new myki ticketing system. TTA was measured by the following outcomes: The TTA completed its role in the delivery of • delivery of the modified ticketing system within myki and management of the Metcard system on adjusted timeframes and approved budget 31 December 2012, with Public Transport Victoria (PTV) assuming responsibility for all TTA functions • overseeing the expanding operations of the as from 1 January 2013. myki ticketing system within contractual requirements to meet customer expectations On this day, the TTA was put into administration with the former Chief Executive Officer, Bernie Carolan, • transition of customers (including use of acting as Administrator, to wind down TTA’s affairs educational, information and support programs) by 30 June 2013. and public transport operators (including staff training) to the new ticketing system The Metcard ticketing system ceased to operate in Melbourne after the last service of 28 December • overseeing the remaining operations of the 2012. At this point myki became the only ticket that Metcard ticketing system so that it continued to could be used in Melbourne. meet customer expectations, but that sales of Metcards ceased by 31 December 2012 The TTA ceased being a State Owned Enterprise on 30 June 2013. • assisting less regular public transport users to make the switch to myki via programs emphasising the convenience of smart cards Our main objectives and functions and explaining myki ease-of-use TTA’s primary objective was to ensure that myki was • customer assessment of smart card introduced in line with contracted requirements and convenience, reliability and ease of use, as that it and the Metcard system met the needs of reflected in the rate of ‘take-up’ of the new customers and public transport operators. In doing ticketing system across all customer groups so, TTA aimed to achieve: • public transport operator confirmation that the • smooth transition to myki throughout delivered system meets agreed requirements metropolitan Melbourne and in specified areas • ongoing achievement of high levels of system of regional Victoria performance of the myki and Metcard ticketing • high levels of customer satisfaction with the new systems ticketing system • the successful transition of TTA to PTV. • endorsement by public transport operators that myki meets their requirements and provides opportunities to enhance service value 2 Transport Ticketing Authority Our key business partners OneLink Transit Systems The supplier of the Metcard ticketing system was Kamco OneLink Transit Systems Pty Ltd (OLT). Kamco (Keane Australia Micropayment Consortium The OLT consortium consists of Ingot Capital Pty Ltd) is the consortium delivering the myki Management Pty Ltd, R Noble and the JF & LJ ticketing system. Following a public tender process Carroll Family Trust (who each acquired a portion Kamco was contracted in July 2005 to design, build of the Mayne Group former interest), Fujitsu and implement the new ticketing system and then Australia Ltd and Utilico Ltd which acquired the operate it for 10 years. former interest of ERG Pty Ltd. Following the 2011 Government Review of the Subsequent to the Government review of 2011, a new myki project negotiations for a revised contract contract with OLT was executed on 29 February 2012 commenced. The negotiations were staged and first to ensure availability of Metcards during 2012 and to addressed the remaining build phase of the system, provide for the decommissioning of Metcard systems followed by the ongoing operation of myki. and equipment. A Fifth Amending Deed to the contract was signed The Metcard system ceased operating for customers in November 2011, finalising the build phase of the on 28 December 2012, but continued to be used for system. A Sixth Amending Deed was signed in March some operator/system purposes through the early 2013, by PTV, setting in place terms relating to the months of 2013. ongoing operation of the system. Annual Report 2012–13 3 Chief Executive Officer and Administrator’s report The 2012-13 year has been one of transformation myki progress for the Transport Ticketing Authority and for the development of the myki system. The Government announced that Metcards would no longer be valid for travel after 28 December 2012, and that myki was to become the only ticket TTA into PTV that could be used on Melbourne’s trains, trams and buses. In the lead up to this significant milestone, On 31 December 2012, the terms of the TTA’s TTA undertook extensive work to ensure that the Chairman, Directors and CEO all expired, transition for public transport users was as smooth consistent with the handover of all TTA functions as possible. and responsibilities to PTV on 1 January 2013. An Administrator was appointed to TTA from TTA continued with a combined myki uptake and 1 January so that the Authority could be formally Metcard product withdrawal strategy, progressively dissolved by 30 June 2013. introducing more locations for passengers to buy and top up a myki. As myki use grew, more devices From 1 January 2013, responsibility for the further were installed to assist with passenger flow on rollout of myki, the ongoing operations of the the network. The replacement of old Metcard system and management of the Kamco and OneLink barriers with new myki only gates commenced at contracts was assumed by PTV. On that date, all CBD stations during July 2012, then extended to remaining TTA staff required to complete the project suburban stations with barriers. This program saw became PTV fixed-term employees (Ex-TTA staff over 50 additional exit/entrance aisles implemented involved in overseeing the ongoing operation of the at around 15 key locations. At ungated stations, myki system and the remaining term of the OneLink approximately 300 additional Fare Payment Devices contract had already become PTV employees in (FPDs) were installed to supplement the around April 2012). The myki assets, created by the project 1,000 FPDs originally specified; this included 60 activity, remained under TTA ownership at this point. totally new station entrance/exit points. From August Until PTV assumed the responsibilities, the TTA 2012, TTA progressively converted train station ticket Board maintained close oversight of TTA activities, windows to full myki sales and top up services. When with
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