ACTION
Objectives
The principal objective of ACTION is to meet the needs of the ACT community by providing public transport services consisting of scheduled route bus services, school bus services, and Special Needs Transport services.
2008-09 Priorities
Strategic and operational issues to be pursued in 2008‑09 include:
•	implementing the new Network 08 system;
•	preparing for the demolition of the Belconnen Interchange;
•	improving the provision of information to customers about ACTION’s services in order to facilitate access to the network and increased patronage; 
•	progressing the acquisition of 100 buses over four financial years, as part of ACTION’s fleet replacement strategy and the Accessible Public Transport Plan;
•	undertaking major maintenance works on a number of buses to extend useful life and improve efficiency and reliability;
•	implementing the new ticketing system;
•	undertaking  repairs and maintenance at the Belconnen Bus Depot to improve the safety, security and amenity of the facility;
•	implementing the new Gold Pass as part of the surrender your license initiative, in conjunction with the Department of Disability, Housing and Community Services, to provide free travel on ACTION buses for those members of the community 75 years of age or older who surrender their driver’s licence; and
•	continuing workplace reform to further improve productivity and cost reductions.
Business and Corporate Strategies
ACTION’s core business activity is to provide transport services to the ACT community including:
•	a public bus network and school bus services, involving a range of express and route services within all Canberra suburbs;
•	school bus services for students living in rural areas of the ACT;
•	Special Needs Transport services to clients of the Department of Education and Training (DET) who are unable to access public transport; and 
•	a bus charter service to a range of customers, at competitive rates.
The Government has made a significant investment in the new bus network (Network 08), increasing the span of hours and frequency of the bus network, with new additional services making the best use of current drivers and maximising the use of fleet resources.  ACTION will continue to refine the network during 2008‑09, responding to customers’ needs within available resources.
As at April 2008, ACTION’s fleet consisted of 377 operational buses.  Sixteen new buses will be received in June to October 2008, and a further 100 buses will be acquired over the next four financial years, as part of the fleet replacement strategy.  This strategy will ensure that transport standards are met under the Disability Discrimination Act 1992.
The replacement of ACTION’s ageing ticketing system has commenced.  A feasibility study completed in 2007 recommended the acquisition of a smart card ticketing system.  The proposed system will introduce significant improvements to customers, through ease of use and access, whilst allowing ACTION to collect valuable patronage data, assisting in the improvement of current and future services.  ACTION will work closely with key stakeholders to ensure a smooth implementation of the system.
ACTION will continue to benchmark its services against industry best‑practice for both private and public bus operators.  ACTION has already identified a number of areas in which productivity and efficiency may be improved.  These matters will be pursued during 2008‑09.
Estimated Employment Level
2007-08
Budget			2007-08
Est. Outcome	2008-09
Budget	
658		  Staffing  (FTE)	652	674	

Strategic Indicators 
Strategic Indicator 
Passenger Boardings1

Total Yearly Passenger Boardings

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

2004/05

2005/06

2006/07

2007/08

Estimated

2008/09

Projected

Note:
1.	This strategic indicator has changed from the 2007‑08 Budget.  In previous years, modal share has been selected as the primary indicator and has been graphed.  This year "total yearly passenger boardings" has been selected as the primary strategic indicator, as changes to the network have been made to benefit all passengers not just those travelling to work. 
Public transport initiatives play an important role in the Sustainable Transport Plan and include:
•	increasing patronage and modal share relating to the proportion of people choosing public transport as their preferred method, as opposed to alternative modes such as private vehicles;
•	increasing the number of vehicles that run on environmentally friendly fuels to minimise environmental degradation; and
•	increasing disability accessible vehicle numbers to meet the standards specified under the Disability Discrimination Act 1992.

Output Class 
	Total Cost1	Government Payment for Outputs	
	2007-08
Est. Outcome
$’000	2008-09
Budget
$’000	2007-08
Est. Outcome
$’000	2008-09
Budget
$’000	
Output Class 1:  Public Transport	96,560	99,518	59,740	63,847	
Output 1.1:  Public Transport	96,560	99,518	59,740	63,847	
Note:  
1.	Total cost includes depreciation of $6.189 million in 2007-08 and $7.446 million in 2008-09.
Output Description 
Provision of a public bus network and school bus services, including a range of express and regular routes within all Canberra suburbs.  ACTION also provides Special Needs Transport and a bus charter service.  

Accountability Indicators
	2007-08
Targets1	2007-08
Est. Outcome	2008-09
Targets	
Output Class 1:  Public Transport	
Output 1.1:  Public Transport	
				
a.	Timeliness of ACTION services1	99.8%	99.8%	99.8%	
b.	Customer satisfaction with ACTION services as assessed by passenger surveys	83%	84%	85%	
c.	Increase in modal share (adult work trip increase in accordance with the Sustainable Transport Plan)2	3.2%	3.5%	3.0%	
d.	Annual increase in number of adult work trips 
(in accordance with the Sustainable Transport Plan)3	204,000	50,000	n/a	
e.	Increase in total patronage4 	n/a	n/a	847,000	
f.	Percentage of fleet fully compliant with standards under the Disability Discrimination Act 1992	30.9%	26.6%	30.3%	
g.	Percentage of fleet Euro 3 Emission Standard compliant	17.7%	14.8%	18.5%	
h.	Total cost per vehicle kilometre	$3.71	$4.13	$3.86	
i.	Total cost per passenger boarding	$5.01	$5.89	$5.69	
j.	Farebox recovery as a percentage of total cost	22.8%	19.5%	19.8%	
				
Note:
1.	This is a measure of the percentage of scheduled services that operate on time.
2.	The targets are a function of the increase in modal share under the Sustainable Transport Plan (STP).  For example, the STP has a modal share target of 8.25 per cent in 2007-08 moving to 8.5 per cent in 2008-09 - an increase of 3 per cent.
3.	Existing measure discontinued.  Adult work trips already measured under measure “c”.  New measure introduced for total patronage, measure “e”.
4.	Total patronage is a measure of the number of boardings from all customers (adult, concession, student and others) on ACTION services in a financial year.  The 2008-09 target aims for an increase of 847,000 passengers over the estimated outcome for 2007-08.

Commonwealth Grants 
ACTION receives the following Commonwealth Government grants:
•	the Energy Grants Credits Scheme and Fuel Tax Credits Scheme, whereby ACTION receives funds based upon the consumption of diesel and alternative fuels1; and
•	New Apprenticeship schemes2.
			
Name of Grant
	Activities Funded by Grant
 	2008-09
Estimate
$’000	
			
Energy Grants Credits Scheme and Fuel Tax Credits Scheme	Payment by the Commonwealth on consumption of diesel and Compressed Natural Gas for eligible vehicles	434	
			
New Apprenticeship Scheme	Department of Education, Employment and Workplace Relations 	60	
			
Total		494	
Notes:
1.	The Commonwealth Government replaced the Energy Grants Credits Scheme for diesel and petrol powered vehicles in 2006‑07 with the Fuel Tax Credits Scheme.  The Energy Grants Credits Scheme will be retained for eligible vehicles using alternative fuels until 2010.
2.	The dollar value of these grants is dependent upon the number of ACTION employees eligible under the scheme.

ACTION	
Operating Statement	
  2007-08			  2007-08	   2008-09		  2009-10	  2010-11	  2011-12		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
19,845		User Charges - Non ACT Government	19,845	20,363	3	21,569	21,860	21,812		
60,908		User Charges - ACT Government	66,930	71,318	7	72,147	73,371	74,445		
494		Grants from the Commonwealth	494	494	-	494	494	494		
81,247		Total Revenue	87,269	92,175	6	94,210	95,725	96,751		
		Gains								
0		Total Gains	0	0	-	0	0	0		
81,247		Total Income	87,269	92,175	6	94,210	95,725	96,751		
		Expenses								
47,449		Employee Expenses	51,636	55,549	8	56,971	57,575	58,125		
6,512		Superannuation Expenses	6,880	7,294	6	7,510	7,696	7,701		
24,468		Supplies and Services	27,120	28,048	3	28,261	28,987	29,065		
6,483		Depreciation and Amortisation	6,189	7,446	20	8,831	10,041	10,890		
798		Borrowing Costs	798	744	-7	744	744	744		
437		Other Expenses	3,937	437	-89	437	437	437		
86,147		Total Ordinary Expenses	96,560	99,518	3	102,754	105,480	106,962		
-4,900		Operating Result	-9,291	-7,343	21	-8,544	-9,755	-10,211		

ACTION	
Balance Sheet	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/08			as at 30/6/08	as at 30/6/09	   Var	as at 30/6/10	as at 30/6/11	as at 30/6/12		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
1,952		Cash and Cash Equivalents	2,130	2,394	12	2,496	2,595	3,087		
2,280		Receivables	1,853	1,858	..	1,863	1,868	1,873		
2,254		Inventories	0	0	-	0	0	0		
48		Other	2,654	2,654	-	2,654	2,654	2,654		
6,534		Total Current Assets	6,637	6,906	4	7,013	7,117	7,614		
		Non Current Assets								
72,956		Property, Plant and Equipment	67,047	77,610	16	84,406	90,011	91,786		
0		Capital Works in Progress	10	10	-	10	10	10		
72,956		Total Non Current Assets	67,057	77,620	16	84,416	90,021	91,796		
79,490		TOTAL ASSETS	73,694	84,526	15	91,429	97,138	99,410		
		Current Liabilities								
4,853		Payables	5,533	5,146	-7	4,759	4,372	3,985		
562		Interest Bearing Liabilities	562	574	2	586	598	610		
50		Finance Leases	59	9	-85	9	9	9		
14,369		Employee Benefits	13,543	14,364	6	14,790	15,216	15,642		
922		Other	2,608	2,608	-	2,608	2,608	2,608		
20,756		Total Current Liabilities	22,305	22,701	2	22,752	22,803	22,854		
		Non Current Liabilities								
13		Payables	68	68	-	68	68	68		
6,078		Interest Bearing Liabilities	6,078	5,504	-9	4,930	4,356	3,782		
0		Finance Leases	23	23	-	23	23	23		
81		Employee Benefits	489	492	1	494	494	494		
6,172		Total Non Current Liabilities	6,658	6,087	-9	5,515	4,941	4,367		
26,928		TOTAL LIABILITIES	28,963	28,788	-1	28,267	27,744	27,221		
52,562		NET ASSETS	44,731	55,738	25	63,162	69,394	72,189		
		REPRESENTED BY FUNDS EMPLOYED								
47,562		Accumulated Funds	39,731	50,738	28	58,162	64,394	67,189		
5,000		Reserves	5,000	5,000	-	5,000	5,000	5,000		
52,562		TOTAL FUNDS EMPLOYED	44,731	55,738	25	63,162	69,394	72,189		

ACTION	
Cash Flow Statement	
  2007-08			  2007-08	   2008-09		  2009-10	  2010-11	  2011-12		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
80,753		User Charges	86,775	91,681	6	93,716	95,231	96,257		
494		Grants Received from the Commonwealth	494	494	-	494	494	494		
4,053		Other Revenue	4,053	4,162	3	4,165	4,165	4,165		
85,300		Operating Receipts	91,322	96,337	5	98,375	99,890	100,916		
		Payments								
52,744		Related to Employees	57,299	62,019	8	64,053	64,845	65,400		
24,858		Related to Supplies and Services	27,510	28,438	3	28,651	29,377	29,455		
798		Borrowing Costs	798	744	-7	744	744	744		
4,150		Other	4,150	4,260	3	4,263	4,263	4,263		
82,550		Operating Payments	89,757	95,461	6	97,711	99,229	99,862		
2,750		NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	1,565	876	-44	664	661	1,054		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Payments								
7,395		Purchase of Property, Plant and Equipment	7,631	18,350	140	15,968	15,987	13,006		
7,395		Investing Payments	7,631	18,350	140	15,968	15,987	13,006		
-7,395		NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES	-7,631	-18,350	-140	-15,968	-15,987	-13,006		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Receipts								
7,395		Capital Injection from Government	7,631	18,350	140	15,968	15,987	13,006		
7,395		Financing Receipts	7,631	18,350	140	15,968	15,987	13,006		
		Payments								
550		Repayment of Borrowings	550	562	2	562	562	562		
582		Repayment of Finance Lease	582	50	-91	0	0	0		
1,132		Financing Payments	1,132	612	-46	562	562	562		
6,263		NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES	6,499	17,738	173	15,406	15,425	12,444		
1,618		NET INCREASE/(DECREASE) IN CASH HELD	433	264	-39	102	99	492		
334		CASH AT BEGINNING OF REPORTING PERIOD	1,697	2,130	26	2,394	2,496	2,595		
1,952		CASH AT THE END OF THE REPORTING PERIOD	2,130	2,394	12	2,496	2,595	3,087		

ACTION	
Statement of Changes in Equity	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/08			as at 30/6/08	as at 30/6/09	   Var	as at 30/6/10	as at 30/6/11	as at 30/6/12		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
50,067		Opening Balance	48,322	44,731	-7	55,738	63,162	69,394		
		Accumulated Funds								
-4,900		Operating Result for the Period	-9,291	-7,343	-21	-8,544	-9,755	-10,211		
		Reserves								
-4,900		Total Income And Expense For The Period	-9,291	-7,343	-21	-8,544	-9,755	-10,211		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
7,395		Capital Injections	7,631	18,350	140	15,968	15,987	13,006		
0		Inc/Dec in Net Assets due to Admin Restructure	-1,931	0	100	0	0	0		
52,562		Closing Balance	44,731	55,738	25	63,162	69,394	72,189		
Notes to the Budget Statements
Significant variations are as follows:
Operating Statement
•	user charges – non ACT Government: the increase of $0.518 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is due to increased patronage.
•	user charges - ACT Government:
–	the increase of $6.022 million in the 2007‑08 estimated outcome from the original budget is due to additional revenue provided for enhancements to Network 06, and development and implementation of the new Network 08; and 
–	the increase of $4.388 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is due to additional revenue provided for Network 08.
•	employee expenses:
–	the increase of $4.187 million in the 2007‑08 estimated outcome from the original budget is due to wage increases under the new certified agreement, as well as network enhancements; and
–	the increase of $3.913 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is due to the full year effect of Network 08, as well as wage increases as noted above.
•	superannuation expense:  
–	the increase of $0.368 million in the 2007‑08 estimated outcome from the 2007‑08 original budget is due to wage increases; and
–	the increase of $0.414 million in the 2008‑09 Budget from the 2007-08 estimated outcome is due to the full year effect of Network 08, as well as wage increases.
•	supplies and services:
–	the increase of $2.652 million in the 2007‑08 estimated outcome from the original budget is due to increases in bus operating and maintenance costs and the implementation of Network 08; and
–	the increase of $0.928 million in the 2008‑09 Budget from the 2007‑08 estimated outcome relates to higher activity levels associated with Network 08.
•	depreciation and amortisation:  the increase of $1.257 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is due to increased depreciation expenses associated with the purchase of new buses.
•	borrowing costs:  the decrease of $0.054 million in the 2008‑09 Budget from the 2007‑08 estimated outcome reflects the reduced loan amount.
•	other expenses:  the increase of $3.5 million in the 2007‑08 estimated outcome from the original budget is due to a downward revaluation of assets.
Balance Sheet
•	cash, cash equivalents and investments:  the increase of $0.178 million in the 2007‑08 estimated outcome from the original budget, and the increase of $0.264 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is due to increased operating funding.
•	current receivables:  the decrease of $0.427 million in the 2007‑08 estimated outcome from the original budget is mainly due to lower ticket sales to agents.
•	inventories:  the decrease of $2.254 million in the 2007‑08 estimated outcome from the original budget is due to a change in the accounting classification of inventories.  In the estimated outcome, inventories are classified under other current assets.
•	other current assets:  the increase of $2.606 million in the 2007‑08 estimated outcome from the original budget relates mainly to the reclassification of inventories, as noted above.
•	property plant and equipment:  
–	the decrease of $5.909 million in the 2007‑08 estimated outcome from the original budget is mainly due to a downward revaluation of buses and accumulated depreciation; and
–		the increase of $10.563 million in the 2008-09 Budget from the 2007-08 estimated outcome is mainly due to the purchase of new buses as a part of the fleet replacement strategy.
•	current payables:
–		the increase of $0.680 million in the 2007‑08 estimated outcome from the original budget is due to delays in capital project delivery and an increase in diesel fuel payables; and
–		the decrease of $0.387 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is due to expected reductions in project and diesel fuel liabilities.
•	current finance leases:  the decrease of $0.050 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is due to a reduction in leases.
•	current employee benefits:  the decrease of $0.826 million in the 2007‑08 estimated outcome from the original budget reflects a decrease in long‑service leave entitlements, mainly due to staff departures.
•	other:  the increase of $1.686 million in the 2007‑08 estimated outcome from the original budget is due to an increase in revenue received in advance.
•	non current payables: the increase of $0.055 million in the 2007‑08 estimated outcome from the original budget is due to increased trade debtors.
•	non current interest bearing liabilities:  the decrease of $0.574 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is due to a reduction in outstanding loans.
•	non current finance leases:  the increase of $0.023 million in the 2007‑08 estimated outcome from the original budget is due to the impact of an increase in finance leases and a decrease in operating leases.
•	non current employee benefits:  the increase of $0.408 million in the 2007‑08 estimated outcome from the original budget is due to increases in long service leave accrual.
Cash Flow Statement
•	net cash from operations:
–	the decrease of $1.185 million in the 2007‑08 estimated outcome from the original budget is mainly due to increases in employee expenditure; and
–		the decrease of $0.689 million in the 2008‑09 Budget from the 2007‑08 estimated outcome is due to increased projected expenditure arising from Network 08. 
•	net cash from investing activities:  the decrease of $10.719 million in the 2008‑09 Budget from the 2007-08 estimated outcome is largely due to the scheduled purchase of new buses as a part of the fleet replacement strategy.
Statement of Changes in Equity
Variances in the statement are explained in the notes above.