ACTION AUTHORITY
Objectives
The ACTION Authority provides public transport services for the ACT community in the form of scheduled route bus services, school bus services, and special needs transport services.
ACTION Authority buses provide a route network of about 17.4 million in-service kilometres and expect to carry about 16.4 million passengers in 2005‑06.
2005-06 Highlights
Strategic and operational issues to be pursued in 2005‑06 include:
•	continuing to develop and implement strategies to increase adult patronage targets set out in the Sustainable Transport Plan;
•	progressively replacing the ageing bus fleet to improve operating efficiency and to comply with the Disability Discrimination Act (Cwlth) 1992, social and environmental targets;
•	progressing the implementation of safety management measures;
•	implementing bus network improvements with the objective of creating more efficient routes and revised timings to shorten travel times;
•	reviewing the current ticketing system for replacement with new technology;
•	continuing workplace reform to further improve productivity and reduce costs; and
•	working in cooperation with the Department of Urban Services and other agencies to plan and implement improved passenger facilities.

ACTION Authority	
Operating Statement	
  2004-05			  2004-05	   2005-06		  2006-07	  2007-08	  2008-09		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
17  346		User Charges - Non ACT Government	16  574	17  322	5	17  752	18  203	18  692		
53  772		User Charges - ACT Government	59  150	59  834	1	60  098	61  311	62  334		
0		Grants from the Commonwealth	100	0	-100	0	0	0		
194		Interest	194	209	8	178	183	183		
50		Resources Received free of charge	50	50	-	50	50	50		
71  362		Total Revenue	76  068	77  415	2	78  078	79  747	81  259		
		Gains								
0		Total Gains	0	0	-	0	0	0		
71  362		Total Income	76  068	77  415	2	78  078	79  747	81  259		
		Expenses								
44  363		Employee Expenses	47  109	47  462	1	47  999	48  675	49  289		
5  781		Superannuation Expenses	6  073	6  246	3	6  377	6  464	6  546		
18  933		Supplies and Services	21  983	21  264	-3	21  631	21  919	22  476		
5  338		Depreciation and Amortisation	5  867	6  306	7	6  218	6  050	5  475		
1  054		Borrowing Costs	1  047	966	-8	883	798	744		
1  542		Other Expenses	257	915	256	637	637	637		
77  011		Total Ordinary Expenses	82  336	83  159	1	83  745	84  543	85  167		
-5  649		Operating Result	-6  268	-5  744	8	-5  667	-4  796	-3  908		

ACTION Authority	
Balance Sheet	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/05			as at 30/6/05	as at 30/6/06	   Var	as at 30/6/07	as at 30/6/08	as at 30/6/09		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
1  326		Cash	956	1  592	67	1  605	2  067	2  829		
1  200		Receivables	2  249	2  276	1	2  270	2  274	2  279		
2  195		Investments	2  000	2  000	-	1  800	1  800	1  800		
1  723		Other	1  515	1  515	-	1  515	1  515	1  515		
6  444		Total Current Assets	6  720	7  383	10	7  190	7  656	8  423		
		Non Current Assets								
71  755		Property, Plant and Equipment	63  907	75  782	19	69  223	62  832	57  016		
0		Capital Works in Progress	10  614	0	-100	0	0	0		
71  755		Total Non Current Assets	74  521	75  782	2	69  223	62  832	57  016		
78  199		TOTAL ASSETS	81  241	83  165	2	76  413	70  488	65  439		
		Current Liabilities								
2  553		Payables	3  283	2  885	-12	2  501	2  115	1  421		
773		Interest Bearing Liabilities	529	539	2	550	562	574		
521		Finance Leases	517	547	6	578	46	0		
4  479		Employee Benefits	5  630	6  131	9	6  520	6  909	7  298		
8  326		Total Current Liabilities	9  959	10  102	1	10  149	9  632	9  293		
		Non Current Liabilities								
841		Payables	903	903	-	903	903	903		
7  256		Interest Bearing Liabilities	7  728	7  189	-7	6  639	6  077	5  503		
1  183		Finance Leases	1  411	860	-39	278	228	0		
6  332		Employee Benefits	6  680	6  855	3	6  855	6  855	6  855		
15  612		Total Non Current Liabilities	16  722	15  807	-5	14  675	14  063	13  261		
23  938		TOTAL LIABILITIES	26  681	25  909	-3	24  824	23  695	22  554		
54  261		NET ASSETS	54  560	57  256	5	51  589	46  793	42  885		
		REPRESENTED BY FUNDS EMPLOYED								
54  261		Accumulated Funds	54  560	57  256	5	51  589	46  793	42  885		
54  261		TOTAL FUNDS EMPLOYED	54  560	57  256	5	51  589	46  793	42  885		

ACTION Authority	
Cash Flow Statement	
  2004-05			  2004-05	   2005-06		  2006-07	  2007-08	  2008-09		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
71  119		User Charges	75  047	77  156	3	77  850	79  514	81  026		
194		Interest Received	194	209	8	178	183	183		
0		Grants Received from the Commonwealth	100	0	-100	0	0	0		
3  596		Other Revenue	4  934	3  937	-20	3  897	3  975	4  079		
74  909		Operating Receipts	80  275	81  302	1	81  925	83  672	85  288		
		Payments								
49  490		Related to Employees	52  425	53  032	1	53  987	54  750	55  446		
19  272		Related to Supplies and Services	22  635	21  603	-5	21  970	22  258	22  815		
1  054		Borrowing Costs	1  047	966	-8	883	798	744		
3  995		Other	5  115	4  267	-17	4  182	4  272	4  377		
73  811		Operating Payments	81  222	79  868	-2	81  022	82  078	83  382		
1  098		NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	-947	1  434	251	903	1  594	1  906		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Receipts								
700		Proceeds from Sale of Property, Plant & Equipment	518	527	2	0	0	0		
700		Investing Receipts	518	527	2	0	0	0		
		Payments								
6  245		Purchase of Property, Plant and Equipment	9  042	8  715	-4	0	0	0		
6  245		Investing Payments	9  042	8  715	-4	0	0	0		
-5  545		NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES	-8  524	-8  188	4	0	0	0		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Receipts								
3  945		Capital Injection from Government	3  945	8  440	114	0	0	0		
3  945		Financing Receipts	3  945	8  440	114	0	0	0		
		Payments								
747		Repayment of Borrowings	519	529	2	539	550	562		
493		Repayment of Finance Lease	269	521	94	551	582	582		
1  240		Financing Payments	788	1  050	33	1  090	1  132	1  144		
2  705		NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES	3  157	7  390	134	-1  090	-1  132	-1  144		
-1  742		NET INCREASE/(DECREASE) IN CASH HELD	-6  314	636	110	-187	462	762		
5  263		CASH AT BEGINNING OF REPORTING PERIOD	9  270	2  956	-68	3  592	3  405	3  867		
3  521		CASH AT THE END OF THE REPORTING PERIOD	2  956	3  592	22	3  405	3  867	4  629		

ACTION Authority	
Statement of Changes in Equity	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/05			as at 30/6/05	as at 30/6/06	   Var	as at 30/6/07	as at 30/6/08	as at 30/6/09		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
55  965		Opening Balance	56  883	54  560	-4	57  256	51  589	46  793		
		Accumulated Funds								
-5  649		Operating Result for the Period	-6  268	-5  744	8	-5  667	-4  796	-3  908		
		Reserves								
-5  649		Total Income And Expense For The Period	-6  268	-5  744	8	-5  667	-4  796	-3  908		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
3  945		Capital Injections	3  945	8  440	114	0	0	0		
54  261		Closing Balance	54  560	57  256	5	51  589	46  793	42  885		
Notes to the Budget Statements
Significant variations are as follows:
Operating Statement
•	user charges – non ACT Government:  the decrease of $0.772m in the 2004‑05 estimated outcome from the original budget is due to a fare price freeze for part of the year.  The increase of $0.748m in the 2005‑06 Budget from the 2004‑05 estimated outcome is due to a budgeted increase in fare prices in 2005‑06 and increased patronage targets under the Sustainable Transport Plan;
•	user charges – ACT Government:  the increase of $5.378m in the 2004‑05 estimated outcome from the original budget is due to the recent EBA wage increases, increased diesel fuel costs, the removal of previous savings targets and some minor increases in contract services for special needs transport.  The increase of $0.684m in the 2005‑06 Budget from the 2004‑05 estimated outcome is mainly due to additional funding for bus parts and the indexation of cost inputs, offset by budgeted savings in Comcare, communications expenses and a reduction in contract revenue;
•	grants from the Commonwealth:  the increase of $0.1m in the 2004‑05 estimated outcome from the original budget reflects the recovery of costs associated with accredited staff training programs and recoveries in respect of the Energy Grants Scheme administered by the Australian Taxation Office;
•	employee and superannuation expenses:  the increase of $3.038m in the 2004‑05 estimated outcome from the original budget is mainly due to the impact of the EBA wage increases.  The increase of $0.526m in the 2005‑06 Budget from the 2004‑05 estimated outcome is also due to the EBA wage increases, offset by a budgeted reduction in the Comcare payments;
•	supplies and services:  the increase of $3.050m in the 2004‑05 estimated outcome from the original budget is mainly due to additional costs associated with the maintenance of the fleet and an increase in the cost of fuel. The decrease of $0.719m in the 2005‑06 Budget from the 2004‑05 estimated outcome reflects an expected decrease in fuel and communications expenses;
•	depreciation and amortisation:  the increase of $0.529m in the 2004‑05 estimated outcome from the original budget is mainly due to the retention of buses due for sale and increased depreciation rates on new buses.  The increase of $0.439m in the 2005‑06 Budget from the 2004‑05 estimated outcome reflects depreciation on the new bus purchases; and
•	other expenses:  the decrease of $1.285m in the 2004‑05 estimated outcome from the original budget and the increase of $0.658m in the 2005‑06 Budget from the 2004‑05 estimated outcome are mainly due to the loss on sale of buses that was originally planned for 2004-05 but deferred to 2005‑06.  
Balance Sheet
•	cash and investments:  the decrease of $0.565m in the 2004‑05 estimated outcome from the original budget is due to the bringing forward of payments for capital expenditure and increased bus maintenance costs.  The increase of $0.636m in the 2005‑06 Budget from the 2004‑05 estimated outcome reflects proceeds from the sale of property, plant and equipment, offset by increased loan principal payments;
•	receivables:  the increase of $1.049m in the 2004‑05 estimated outcome from the original budget reflects additional estimated accrued revenue at year end;
•	total non current assets:  the increase of $2.766m in the 2004-05 estimated outcome from the original budget is due to the delay in the 2003-04 bus replacement program.  The increase of $1.261m in the 2005-06 Budget from the 2004-05 estimated outcome reflects increased bus purchases offset by the loss on disposal of redundant buses and increased depreciation costs. 
•	payables (current):  the increase of $0.730m in the 2004-05 estimated outcome from the original budget reflects increased accounts payable relating to the delay in the 2003-04 bus replacement program.   
•	current and non-current interest bearing liabilities:  the increase of $0.228m in the 2004‑05 estimated outcome from the original budget reflects a revision of the $2.3m loan facility provided by the Government for the Compressed Natural Gas (CNG) facility.  The amounts disclosed across the forward estimates reflect payments in accordance with the terms of the outstanding loan;
•	current and non-current finance lease:  the increase of $0.224m in the 2004‑05 estimated outcome from the original budget is due to the timing of the execution of the lease for the midi-buses.  The amounts disclosed across the forward estimates reflect payments in accordance with the terms of this lease; and
•	current and non-current employee benefits:  the increase of $1.499m in the 2004‑05 estimated outcome from the original budget reflects the impact of EBA wage increases on leave entitlements.  Increases across the forward estimates also reflect the effects of the EBA.