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Annual Report 2007М08 ANNUAL REPORT 2007-08 08 The Honourable Lynne Kosky MP Minister for Public Transport Level 16 121 Exhibition Street Melbourne Victoria 3000 The Honourable John Lenders MP Treasurer 1 Treasury Place Melbourne Victoria 3001 Dear Ministers, Transport Ticketing Authority 2007-08 Annual Report I have pleasure in submitting the Transport Ticketing Authority’s annual report for the year ended 30 June 2008, in accordance with the provisions of the State Owned Enterprises Act 1992 and the Financial Management Act 1994. Yours sincerely, Michael Pryles Chairman Transport Ticketing Authority (Public Transport Ticketing Body) 12 September 2008 Contents 2 Chairman’s report 3 CEO’s report 5 About the Transport Ticketing Authority 6 Board of Directors 9 Report of operations 17 Accountable Officer’s and Chief Finance and Accounting Officer’s Declaration 18 Auditor-General’s report 20 Operating statement 21 Balance sheet 22 Statement of changes in equity 23 Cash flow statement 24 Notes to the financial statements Transport Ticketing Authority – Annual Report 2007-08 1 Chairman’s report The development of Victoria’s new public transport ticketing system Governance is a very important Victorian infrastructure project. The Board recently appointed Mr Gary Thwaites as CEO. He brings significant project management experience to the Authority. Project timeframes In the past year the Transport Ticketing Authority (TTA) faced The Board has been enhanced with the addition of two new a number of challenges. The most significant challenges were members – Mr John Peoples and Mr John McMillan. The Board caused by the fact that the delivery of the project will take acknowledges the significant contribution made by Mr Peter much longer than was originally planned. The contractor and Harris, who stepped down this year. the Authority underestimated the time that would be required for the development and full testing of the new software to operate The Board also established a new committee, the Project Delivery the system. Comparison of delivery timeframes for similar projects Committee, to oversee the more detailed project delivery policy overseas (many of which are less complex than myki, our ticketing and execution issues. This committee meets approximately system), shows that the rate of progress we have experienced is fortnightly and is chaired by Mr John Peoples. generally similar or better than in other cities that have implemented smartcard ticketing systems. The future Notwithstanding the issues faced during the year, there has There are no shortcuts to getting the software right for a been significant progress, including a comprehensive program major ticketing system and its development is complex and of equipment installation. In recent months the contractor has time consuming. Some commentators have suggested that also achieved required milestones in preparation for roll-out the Authority should have procured an off the shelf system in the next calender year. already operating in another city. This is not possible, however, because the detailed operating environments, fare structures, The Authority, and its contractors, will continue to make steady policies and enforcement rules of ticketing systems are all different progress towards delivery of the system. On behalf of the Board, and have evolved in response to specific local circumstances. I wish to thank the TTA’s management and staff for their ongoing commitment, dedication and hard work to deliver Victoria’s new The timeframes required for the delivery of the new ticketing ticketing system. system has now been re-established and roll-out is now expected in the next calender year with completion in 2010. In response to these extended timeframes, the Government has approved an increase to the funding envelope for the Authority. This funding envelope includes the operating costs for the system over the next 10 years, and the costs of operating the existing Metcard system Michael Pryles until the transition is finalised, as well as the capital costs of the Chairman system during the project development phase. 2 Transport Ticketing Authority – Annual Report 2007-08 CEO’s report Implementing smartcard ticketing systems is a complex task. In order to support the delivery of the new system, the TTA has undergone significant organisational change realigning the Victoria’s new ticketing system extends to regions in Victoria, business to better equip it for the delivery and operational phases. as well as metropolitan Melbourne, making it the largest smartcard ticketing system in the world, by public transport service types Public transport operators are integral to the successful introduction and geographic area covered. of the new system. The operators continue to make a significant contribution to the delivery of what will be a major change to Project delays have led to significant frustration being expressed their operations. at many levels. These extended timeframes have been principally due to delays in software development. I would like to thank the Board and TTA staff for their efforts. Despite the project’s inherent challenges, and although there The year ahead will be full of challenges and the TTA is committed is still a long way to go, significant progress is being made. to meeting those challenges. A challenging part of getting ready for the new ticketing system involves complex technological and engineering preparation. During the year, 100 per cent of available trams and 95 per cent of buses across Victoria were pre-wired for the new Gary Thwaites system and 289 of the 292 metropolitan and regional stations Chief Executive Officer are now completed. A lynchpin in the delivery of the new system is the work of the key contractor Kamco and, in turn, its relationship with its key subcontractors – Affiliated Computer Services (ACS) and Giesecke & Devrient (G&D). Relationships with Kamco have been strengthened this year and there is a renewed sense of collaboration and commitment to achieving the same goal – delivery of the system within the recalibrated timeframes. The project also reached the stage where field testing could take place with encouraging results. Of the 124 scenarios tested on buses in Geelong in April 2008, some 112 were successful and most of those remaining were rectified during the testing period. The focus on testing will continue in the year ahead as the TTA moves toward the roll-out of the system in the next calender year – with completion expected in 2010. Transport Ticketing Authority – Annual Report 2007-08 3 About the Transport Ticketing Authority The role of the Transport Ticketing Authority is to oversee: • Victoria’s current Metcard public transport ticketing system contract; and • the design, build and delivery of the new ticketing system. The system will help to integrate public transport in metropolitan and regional Victoria, improving the accessibility and connectivity of public transport for customers throughout the State. On 1 July 2007, a number of functions that were previously managed by Metlink were transferred to the TTA. These include: • the revenue clearing and settlement function for the metropolitan public transport system, involving management, distribution and reporting of public transport revenues • revenue audit of public transport operators’ cash and ticket handling procedures and practices • retail agents’ network management • OneLink Transit operational contract management and performance assessment. The TTA’s prime objective for the new ticketing system is to ensure it meets the needs of customers and public transport operators. In addition, the TTA aims to ensure: • the smooth transition to the system throughout metropolitan and regional Victoria • that customers trust and accept the new ticketing system • that the system meets the requirements of public transport operators and provides them with opportunities to enhance service value • that the new ticketing system and the OneLink Transit ticketing systems achieve high levels of system performance, including the ongoing integrity and value for money of ticketing infrastructure and operations. The performance of the TTA will be measured by: • delivery of the new ticketing system project within the revised schedule and budget • a smooth transition to the system for customers and transit operators • customers’ assessment of smartcard convenience, reliability and ease-of-use, as reflected in the rate of ‘take up’ of the system across Victoria • public transport operators’ confirmation that the delivered system meets their agreed requirements • ongoing achievement of high levels of system performance. 4 Transport Ticketing Authority – Annual Report 2007-08 Transport Ticketing Authority – Annual Report 2007-08 5 Board of Directors Prof Michael Pryles Board Chairman Appointed Director and Chairman on 14 October 2003. Professor Pryles is a commercial and corporate lawyer with an international arbitration practice. Deputy Chairman of the Audit Committee. Mr Peter Harris Board Director Appointed 17 June 2003 and founding Director and Chairman until 14 October 2003. Mr Harris is a senior public servant, formerly Director of Public Transport. He resigned from the Board effective 4 February 2008. Chairman of the Audit Committee until 4 February 2008. Ms Christine Gibbs Board Director Appointed on 15 March 2005, Ms Gibbs is a communications and marketing specialist with experience in the public and private sectors. John Peoples Board Director Appointed on 1 November 2007, Mr Peoples is a project advisor
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