ACTION
Purpose
ACTION’s principal objective is to meet the needs of the ACT community by providing public transport services consisting of scheduled route bus services, school bus services, Special Needs Transport and management of the ACT Rural School Bus Contract. 
2011-12 Priorities
Strategic and operational priorities to be pursued in 2011‑12 include:
•	continuing to implement the Government’s sustainable transport and environment policies by improving ACTION’s bus network and infrastructure, and in doing so, better meeting customers’ travel needs thereby increasing patronage on ACTION buses;
•	progressing the acquisition of replacement buses in order to improve customer comfort and environmental sustainability and to meet disability accessibility targets;
•	continuing depot upgrades to improve staff conditions, technology, safety and security; 
•	continuing workplace reform to further improve productivity and reduce costs; and
•	progressing the improvement of compliance and corporate governance within the business.
Business and Corporate Strategies
ACTION’s business and corporate strategies are to facilitate the achievement of its key performance objectives, which include:  reliability, safety, accessibility, responsiveness, efficiency, effectiveness and improved staff capability.
To this end, strategies to improve reliability, responsiveness, efficiency and effectiveness will focus on the alignment of services and infrastructure with a long term strategic transport policy due to be released in mid‑2011.  This policy will outline minimum public transport service standards based on the concept of delivering a frequent network where demand requires it.  The policy will integrate all transport modes and form part of the Government’s response to the transport, planning and climate change themes that were raised as part of the Time to Talk community consultation.
Further, in response to the recommendations of the Auditor General’s August 2010 Performance Audit into ACTION’s services, the business will continue to focus on improving safety and compliance through the implementation of infrastructure and service delivery improvements.
ACTION will continue to improve the accessibility of its services by seeking compliance with the requirements of the Commonwealth Government’s Disability Discrimination Act 1992 (DDA), in particular conforming to the specific timeframes in relation to the provision of accessible buses in the fleet through an ongoing fleet replacement program

Estimated Employment Level

2009‑10
Actual Outcome		2010-11
Budget
	2010-11
Est. Outcome	2011-12
Budget
	
782	Staffing (FTE) 	7871	7772	7933	
Notes:
1.	The increase of 5 FTE’s in the 2010-11 Budget from the 2009-10 Actual Outcome is due to the Transport for Canberra initiative introduced in 2010-11.
2.	The decrease of 10 FTE’s in the 2010-11 Estimated Outcome from the 2010-11 Budget is due to functions transferred to TAMS to establish the new Transport Planning function.
3.	The increase of 16 FTE’s in the 2011-12 Budget from the 2010-11 Estimated Outcome is due to the Transport for Canberra initiative for 2011-12.

Strategic Objectives and Indicators

Strategic Objective 1
Increasing Patronage
Public transport initiatives play an important role in the Sustainable Transport Plan.  Factors that contribute to increasing patronage and modal share (related to the proportion of people choosing public transport as their preferred method of making the trip to and from work, as opposed to alternative modes such as private vehicles) include:
•	the reliability and frequency of network services to the community; and
•	the quality of the bus fleet supporting those services, as reflected in the number of vehicles that run on environmentally friendly fuels to minimise environmental degradation and vehicles that meet the standards specified under the DDA.

Strategic Indicator 1
Total Yearly Passenger Boardings

Output Class
	Total Cost1	Government Payment for Outputs2	
	2010-11
Est. Outcome
$’000	2011-12
Budget
$’000	2010-11
Est. Outcome
$’000	2011-12
Budget
$’000	
Output Class 1:   
Public Transport	114,456	118,262	65,298	71,469	
Output 1.1:  Public Transport	114,456	118,262	65,298	71,469	
Note:
1.	Total cost includes depreciation of $9.778 million in 2010‑11 and $10.706 million in 2011‑12
2.	This is the appropriation provided to TAMS which is on-passed to ACTION and reflected as User Charges – ACT Government.
Output Description
Provision of a public bus network and school bus services, including a range of express and regular routes within Canberra suburbs.  ACTION also provides Special Needs Transport and a bus charter service.

Accountability Indicators
	2010-11
Targets	2010-11
Est. Outcome	2011-12
Targets	
Output 1:  Public Transport	
Output 1.1:  Public Transport				
a.	Timeliness of ACTION services1	83%	83%	n/a	
b.	Customer satisfaction with ACTION services as assessed by passenger surveys	85%	85%	85%	
c.	Increase in modal share (adult work trip increase in accordance with the Sustainable Transport Plan)2,3	2.9%	1.5%	n/a	
d.	Increase in total patronage2,4	1,330,000	265,000	n/a	
e.	Percentage of fleet fully compliant with standards under the DDA5	48.9%	44.6%	n/a	
f.	Percentage of in service fleet fully compliant with standards under the DDA5	n/a	n/a	51%	
g.	Percentage of fleet Euro 3 Emission or better Standard compliant6	31.8%	34.4%	n/a	
h.	Percentage of in service fleet Euro 3 or better Emission Standard compliant6	n/a	n/a	40%	
i.	Total cost per vehicle kilometre	$4.27	$4.33	$4.52	
j.	Total cost per passenger boarding2	$6.18	$6.49	$6.00	
k.	Farebox recovery as a percentage of total cost7	21.8%	17.6%	22%	
l.	Percentage of services operating on scheduled time8	n/a	n/a	85%	
Notes:
1.	Measure discontinued due to introduction of Accountability Indicator (l).
2.	The result has been impacted by the inability to collect and record accurate patronage data due to the failing ticketing system.  A new ticketing system was implemented in early April 2011.
3.	Measure discontinued due to transfer of associated function to Sustainable Development Directorate following the Administrative Arrangement changes that take effect from 1 July 2011.  
4.	This measure is discontinued as patronage is measured as part of the ACTION Strategic Indicator 1 - Total Yearly Passenger Boardings.
5.	The existing measure (e) is discontinued and replaced with (f) for clarity.
6.	The existing measure (g) is discontinued and replaced with (h) for clarity.
7.	Estimated Outcome is impacted by below budget fares revenue and a recorded reduction in patronage as a result of the lack of reliable data from the failing ticketing system combined with increased operational costs.
8.	This is a new indicator.  The measure is calculated using GPS data from the MyWay Ticketing system.

ACTION
Operating Statement
  2010-11			  2010-11	   2011-12		  2012-13	    2013-14	  2014-15		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		Income								
		Revenue								
26,630		User Charges - Non ACT Government	22,249	28,005	26	29,231	31,155	31,161		
77,329		User Charges - ACT Government	74,688	80,909	8	80,240	77,454	78,897		
103,959		Total Revenue	96,937	108,914	12	109,471	108,609	110,058		
		Gains								
0		Total Gains	0	0	-	0	0	0		
103,959		Total Income	96,937	108,914	12	109,471	108,609	110,058		
		Expenses								
61,581		Employee Expenses	66,585	67,050	1	66,770	65,386	66,252		
7,806		Superannuation Expenses	7,665	8,273	8	8,423	8,227	8,341		
31,466		Supplies and Services	29,247	31,050	6	30,920	31,698	32,166		
9,778		Depreciation and Amortisation	9,778	10,706	9	12,310	13,680	13,746		
744		Borrowing Costs	744	744	-	744	744	744		
437		Other Expenses	437	439	..	437	439	440		
111,812		Total Ordinary Expenses	114,456	118,262	3	119,604	120,174	121,689		
-7,853		Operating Result	-17,519	-9,348	-47	-10,133	-11,565	-11,631		
-7,853		Total Comprehensive Income	-17,519	-9,348	-47	-10,133	-11,565	-11,631		

ACTION
Balance Sheet
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/11			as at 30/6/11	as at 30/6/12	   Var	as at 30/6/13	as at 30/6/14	as at 30/6/15		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
2,024		Cash and Cash Equivalents	512	555	8	607	570	585		
3,013		Receivables	3,477	3,559	2	3,641	3,721	3,801		
2,806		Inventories	3,471	3,592	3	3,711	3,818	4,214		
122		Other	133	136	2	139	142	145		
7,965		Total Current Assets	7,593	7,842	3	8,098	8,251	8,745		
		Non Current Assets								
141,435		Property, Plant and Equipment	131,638	158,114	20	163,853	152,585	139,451		
0		Capital Works in Progress	8,849	8,849	-	8,849	8,849	8,849		
141,435		Total Non Current Assets	140,487	166,963	19	172,702	161,434	148,300		
149,400		TOTAL ASSETS	148,080	174,805	18	180,800	169,685	157,045		
		Current Liabilities								
3,828		Payables	15,126	14,154	-6	12,368	10,555	8,794		
598		Interest Bearing Liabilities	600	612	2	631	341	341		
220		Finance Leases	140	140	-	140	140	140		
17,764		Employee Benefits	17,465	17,499	-	17,540	17,585	17,630		
0		Other Provisions	3	3	-	3	3	3		
2,356		Other	1,154	1,204	4	1,254	1,304	1,354		
24,766		Total Current Liabilities	34,488	33,612	-3	31,936	29,928	28,262		
		Non Current Liabilities								
4,356		Interest Bearing Liabilities	4,315	3,698	-14	3,067	2,727	2,386		
99		Finance Leases	168	168	-	168	168	168		
1,734		Employee Benefits	1,496	1,539	3	1,584	1,629	1,674		
6,189		Total Non Current Liabilities	5,979	5,405	-10	4,819	4,524	4,228		
30,955		TOTAL LIABILITIES	40,467	39,017	-4	36,755	34,452	32,490		
118,445		NET ASSETS	107,613	135,788	26	144,045	135,233	124,555		
		REPRESENTED BY FUNDS EMPLOYED								
76,395		Accumulated Funds	65,563	93,738	43	101,995	93,183	82,505		
42,050		Reserves	42,050	42,050	-	42,050	42,050	42,050		
118,445		TOTAL FUNDS EMPLOYED	107,613	135,788	26	144,045	135,233	124,555		

ACTION
Cash Flow Statement
  2010-11			  2010-11	   2011-12		  2012-13	    2013-14	  2014-15		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
103,959		User Charges	101,318	108,914	7	109,471	108,609	110,058		
4,165		Other Revenue	4,165	4,165	-	4,165	4,165	4,165		
108,124		Operating Receipts	105,483	113,079	7	113,636	112,774	114,223		
		Payments								
60,976		Related to Employees	63,522	66,623	5	66,343	64,959	65,825		
7,806		Related to Superannuation	7,665	8,273	8	8,423	8,227	8,341		
31,856		Related to Supplies and Services	28,563	32,499	14	33,199	33,986	34,691		
744		Borrowing Costs	744	744	-	744	744	744		
4,263		Other	4,263	4,265	-	4,263	4,265	4,266		
105,645		Operating Payments	104,757	112,404	7	112,972	112,181	113,867		
2,479		NET CASH INFLOW/ (OUTFLOW) FROM OPERATING ACTIVITIES	726	675	-7	664	593	356		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Payments								
25,920		Purchase of Property, Plant and Equipment and Capital Works	23,942	37,523	57	18,390	2,753	953		
25,920		Investing Payments	23,942	37,523	57	18,390	2,753	953		
-25,920		NET CASH INFLOW/ (OUTFLOW) FROM INVESTING ACTIVITIES	-23,942	-37,523	57	-18,390	-2,753	-953		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Receipts								
25,920		Capital Injection from Government	23,942	37,523	57	18,390	2,753	953		
25,920		Financing Receipts	23,942	37,523	57	18,390	2,753	953		
		Payments								
562		Repayment of Borrowings	562	632	12	612	630	341		
562		Financing Payments	562	632	12	612	630	341		
25,358		NET CASH INFLOW/ (OUTFLOW) FROM FINANCING ACTIVITIES	23,380	36,891	58	17,778	2,123	612		
1,917		NET INCREASE/ (DECREASE) IN CASH HELD	164	43	-74	52	-37	15		
107		CASH AT BEGINNING OF REPORTING PERIOD	348	512	47	555	607	570		
2,024		CASH AT THE END OF THE REPORTING PERIOD	512	555	8	607	570	585		

ACTION
Statement of Changes in Equity
 
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/11			as at 30/6/11	as at 30/6/12	   Var	as at 30/6/13	as at 30/6/14	as at 30/6/15		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
		Opening Equity								
58,328		Opening Accumulated Funds	59,140	65,563	11	93,738	101,995	93,183		
42,050		Opening Asset Revaluation Reserve	42,050	42,050	0	42,050	42,050	42,050		
100,378		Balance at the Start of the Reporting Period	101,190	107,613	6	135,788	144,045	135,233		
		Comprehensive Income								
-7,853		Operating Result for the Period	-17,519	-9,348	-47	-10,133	-11,565	-11,631		
-7,853		Total Comprehensive Income	-17,519	-9,348	-47	-10,133	-11,565	-11,631		
0		Total Movement In Reserves	0	0	-	0	0	0		
		Transactions Involving Owners Affecting Accumulated Funds								
25,920		Capital Injections	23,942	37,523	57	18,390	2,753	953		
25,920		Total Transactions Involving Owners Affecting Accumulated Funds	23,942	37,523	57	18,390	2,753	953		
		Closing Equity								
76,395		Closing Accumulated Funds	65,563	93,738	43	101,995	93,183	82,505		
42,050		Closing Asset Revaluation Reserve	42,050	42,050	0	42,050	42,050	42,050		
118,445		Balance at the End of the Reporting Period	107,613	135,788	26	144,045	135,233	124,555		

Notes to the Budget Statements
Significant variations are as follows:
Operating Statement
•	user charges — non ACT Government:
–	the decrease of $4.381 million in the 2010‑11 estimated outcome from the original budget is due to a decrease in fare revenue due to failing ticketing equipment; and
–	the increase of $5.756 million in the 2011‑12 Budget from the 2010‑11 estimated outcome is due to an expected increase in fare revenue as a result of the new ticketing system capturing increased patronage associated with new transport initiatives.
•	user charges — ACT Government:
–		the decrease of $2.641 million in the 2010‑11 estimated outcome from the original budget is due to a reduction in government payments for services transferred to TAMS to establish the new Transport Planning function, partly offset by funding provided for increased insurance premiums; and 
–		the increase of $6.221 million in the 2011‑12 Budget from the 2010‑11 estimated outcome is due to increased funding for additional services associated with new transport initiatives and increased base funding for increased service costs and insurance premiums.
•	employee expenses:
–		the increase of $5.004 million in the 2010‑11 estimated outcome from the original budget is due to increased employee costs to deliver network enhancements and the increased workers compensation premium.  This is partly offset by a decrease in employee expenses transferred to establish the new Transport Planning function; and
–		the increase of $0.465 million in the 2011‑12 Budget from the 2010‑11 estimated outcome is due to additional services associated with new transport initiatives and recognition of the additional employee costs of network services.
•	supplies and services:
–		the decrease of $2.219 million in the 2010‑11 estimated outcome from the original budget is due to expenses transferred to establish the Transport Planning function and savings relating to fuel expenses as a result of a lower average fuel price than budget, partly offset by increased insurance premium; and	
–		the increase of $1.803 million in the 2011‑12 Budget from the 2010‑11 estimated outcome is due primarily to additional cost of services associated with the new transport initiatives.
•	depreciation and amortisation: the increase of $0.928 million in the 2011‑12 Budget from the 2010‑11 estimated outcome reflects the increased asset base as a result of major capital works including ongoing bus purchases and the full year effect of depreciation for the new ticketing system.
Balance Sheet
•	cash and cash equivalents:  the decrease of $1.512 million in the 2010‑11 estimated outcome from the original budget is due to increased employee costs to deliver network enhancements and the increased workers compensation premium.
•	receivables:  the increase of $0.464 million in the 2010‑11 estimated outcome from the original budget is due to an increase in the volume of ticket sales through agents as a result of the shift to prepaid tickets and away from cash sales by drivers.
•	inventories:  the increase of $0.665 million in the 2010‑11 estimated outcome from the original budget is due to an increase in spare parts held for repair of the older bus fleet and increased diesel stockholdings.
•	property, plant and equipment:  
–	the decrease of $9.797 million in the 2010‑11 estimated outcome from the original budget is largely due to delays in the completion of major projects resulting in increased capital works in progress; and
–	the increase of $26.476 million in the 2011‑12 Budget from the 2010‑11 estimated outcome is due to the anticipated completion of several major projects.
•	capital works in progress: the increase of $8.849 million in the estimated outcome from the original budget is due to delays in the completion of major projects.
•	payables:  
–	the increase of $11.298 million in the 2010‑11 estimated outcome from the original budget is due to an increase in the cost of services.  This has been attributable to increases in comcare and general insurance premiums, special needs transport and rural schools contracts as well as increases in the cost of spare parts.  It is also attributable to enterprise bargaining negotiation costs and payment of a portion of the outstanding liability relating to a pre-ACTIA insurance claim; and
–	the decrease of $0.972 million in the 2011-12 Budget from the 2010-11 estimated outcome is due to the completion of the MyWay Ticketing project and final payments of associated capital invoices.
•	other current liabilities:  the decrease of $1.202 million in the 2010-11 estimated outcome from the original budget is a result of a reduction in the liability associated with prepaid bus tickets which was unusually high due to higher ticket sales volumes prior to fare increases.
Cash Flow Statement
Variances in the statement are explained in the notes above.
Statement of Changes in Equity
Variances in the statement are explained in the notes above.