ACTION
Objectives
ACTION’s core objective is to provide public transport services for the ACT community in the form of scheduled route bus services, school bus services and Special Needs services.
In 2007‑08, ACTION’s bus fleet will travel approximately 16.3 million in‑service kilometres and carry an estimated 16.9 million passengers.
2007-08 Priorities
Strategic and operational issues to be pursued in 2007‑08 include:
•	continuing to develop strategies to increase adult patronage in line with the targets set out in the Government’s Sustainable Transport Plan;
•	developing a comprehensive service improvement plan through surveys and community consultation to better meet the needs of customers and increase the efficiency of the existing network;
•	completing the purchase of 18 new buses by 2008‑09 and progressing a long term bus replacement strategy;
•	completing the fit out of on-board closed circuit television units on all buses as part of a broader initiative to improve security;
•	completing the preliminary study into a replacement ticketing system and progressing the project through to completion, planned for 2008‑09; and
•	continuing workplace reform to further improve productivity and reduce costs.
Business and Corporate Strategies
ACTION’s core business activity is to provide public transport services to the ACT community including:
•	public bus network and school services, which provide a range of express and route services to and from all Canberra suburbs;
•	a Special Needs Transport service, which is a door to door service for clients of the ACT Department of Education and Training and ACT Health; and
•	charter bus services provided at competitive rates.
ACTION will have a fleet of 379 route buses by the end of 2006‑07.  ACTION will review its fleet size in 2007‑08 in line with its network capacity and maintenance requirements, including the sale of buses surplus to requirements. 
In addition, ACTION has a requirement under the Australian Government’s Disability Discrimination Act 1992 (DDA) to conform to specific timeframes in relation to the provision of accessible buses within ACTION’s fleet of vehicles.  The number of DDA compliant accessible buses in the fleet at the end of 2006‑07 will be 106 (or 28 per cent of the fleet) – this will increase to 110 by the end of 2007‑08.  The target set under the DDA is 25 per cent by December 2007 and 55 per cent by December 2012.
ACTION operates under a Quality System, which complies with the requirements of the International Organisation for Standardisation (AS/NZS ISO 9001:2000).  The Quality System provides for continuous improvement in all aspects of ACTION’s services.  The Quality System covers all the activities required to plan, design, schedule, operate and monitor the ACTION network and associated business services, including the material and services provided by ACTION’s suppliers.
Estimated Employment Level
	2006-07
Est.  Outcome	2007-08
Budget	
Staffing  (FTE)	669	658	

Output Class 
	Total Cost1	Government Payment for Outputs	
	2006-07
Est. Outcome
$’000	2007-08
Budget
$’000	2006-07
Est. Outcome
$’000	2007-08
Budget
$’000	
Output Class 1:  Public Transport	89,011	86,147	54,655	53,717	
Output 1.1:  Public Transport	89,011	86,147	54,655	53,717	
Note:  
1	Total cost includes depreciation of $6.218 million in 2006‑07 and $6.483 million in 2007‑08.
Output Description 
Provision of public bus network and school services, which includes a range of express and regular route services to and from all Canberra suburbs.  ACTION further provides Special Needs Transport and Charter Services on a fee for service basis.  

Strategic Indicators 
Strategic Indicator 

Patronage Trends Under Sustainable Transport Plan

Public transport plays a major role in the Government’s Sustainable Transport Plan.  The initiatives for public transport under this plan are: 
•	increasing patronage, with a particular emphasis on the modal split for adult patronage;
•	increasing the number of vehicles that run on alternative fuels to minimise environmental impact; and
•	increase the number of accessible vehicles to meet the targets specified under the Disability Discrimination Act 1992.

Accountability Indicators
	2006‑07
Targets1	2006-07
Est. Outcome	2007-08
Targets	
Output Class 1:  Public Transport	
Output 1.1:  Public Transport	
				
a.	Timeliness of ACTION services	99.8%	99.8%	99.8%	
b.	Customer satisfaction with ACTION services as assessed by passenger surveys	82%	82%	83%	
c.	Increase in modal share (adult work trip increase in accordance with the Sustainable Transport Plan)	3.2%	3.8%	3.2%	
d.	Increase in number of passenger boardings1 	197,000	202,097	n/a	
e.	Annual increase in number of adult work trips 
(in accordance with the Sustainable Transport Plan)1	n/a	n/a	199,000	
f.	Percentage of fleet fully compliant with Disability Standards	26.3%	28%	29%	
g.	Percentage of fleet Euro 3 Emission Standard compliant	14.3%	14.2%	15.3%	
h.	Total cost per vehicle kilometre	$3.65	$4.03	$3.70	
i.	Total cost per passenger boarding	$5.02	$5.32	$5.09	
j.	Farebox recovery as a percentage of total cost	19.8%	21.45%	21.8%	
				
Note:
1	Existing measure for 2006‑07 (item d.) has been discontinued and replaced with a new measure (item e.) to better reflect achievement against the Sustainable Transport Plan.  

Commonwealth Grants 
ACTION receives the following Commonwealth grants:
•	the Energy Grants Credits Scheme and Fuel Tax Credits Scheme, whereby ACTION receives funds based upon the consumption of diesel and alternative fuels by those buses eligible under the scheme1; and
•	the Structured Training and Employment Programs and New Apprenticeship schemes2.
			
Name of Grant
	Activities Funded by Grant
 	2007-08
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.	424	
			
New Apprenticeship Scheme	Department of Education, Science and Training	60	
			
Structured Training and Employment Programs (STEP)	Department of Employment and Workplace Relations	10	
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 dependant upon the number of ACTION employees eligible under each scheme

ACTION	
Operating Statement	
  2006-07			  2006-07	   2007-08		  2008-09	  2009-10	  2010-11		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
19,067		User Charges - Non ACT Government	19,990	19,845	-1	20,894	21,725	22,066		
61,671		User Charges - ACT Government	62,038	60,908	-2	61,015	62,663	63,743		
494		Grants from the Commonwealth	1,583	494	-69	494	494	494		
178		Interest	6	0	-100	0	0	0		
50		Resources Received free of charge	0	0	-	0	0	0		
81,460		Total Revenue	83,617	81,247	-3	82,403	84,882	86,303		
		Gains								
0		Total Gains	0	0	-	0	0	0		
81,460		Total Income	83,617	81,247	-3	82,403	84,882	86,303		
		Expenses								
47,307		Employee Expenses	50,000	47,449	-5	48,206	48,969	49,563		
7,689		Superannuation Expenses	7,689	6,512	-15	6,706	6,915	7,097		
23,278		Supplies and Services	23,784	24,468	3	24,022	24,447	25,090		
6,218		Depreciation and Amortisation	6,218	6,483	4	6,273	6,673	6,873		
883		Borrowing Costs	883	798	-10	744	744	744		
437		Other Expenses	437	437	-	437	437	437		
85,812		Total Ordinary Expenses	89,011	86,147	-3	86,388	88,185	89,804		
-4,352		Operating Result	-5,394	-4,900	9	-3,985	-3,303	-3,501		

ACTION	
Balance Sheet	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/07			as at 30/6/07	as at 30/6/08	   Var	as at 30/6/09	as at 30/6/10	as at 30/6/11		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
2,434		Cash and Cash Equivalents	334	1,952	484	4,401	7,586	10,771		
1,620		Receivables	2,276	2,280	..	2,285	2,290	2,295		
0		Inventories	2,254	2,254	-	2,254	2,254	2,254		
2,238		Other	48	48	-	48	48	48		
6,292		Total Current Assets	4,912	6,534	33	8,988	12,178	15,368		
		Non Current Assets								
72,947		Property, Plant and Equipment	72,385	72,956	1	75,392	68,378	61,164		
72,947		Total Non Current Assets	72,385	72,956	1	75,392	68,378	61,164		
79,239		TOTAL ASSETS	77,297	79,490	3	84,380	80,556	76,532		
		Current Liabilities								
3,827		Payables	5,240	4,853	-7	4,466	4,079	3,692		
549		Interest Bearing Liabilities	550	562	2	574	586	598		
582		Finance Leases	582	50	-91	0	0	0		
5,998		Employee Benefits	13,154	14,369	9	15,190	15,616	16,042		
797		Other	922	922	-	922	922	922		
11,753		Total Current Liabilities	20,448	20,756	2	21,152	21,203	21,254		
		Non Current Liabilities								
1,008		Payables	13	13	-	13	13	13		
6,640		Interest Bearing Liabilities	6,640	6,078	-8	5,504	4,930	4,356		
50		Finance Leases	50	0	-100	0	0	0		
7,360		Employee Benefits	79	81	3	84	86	86		
15,058		Total Non Current Liabilities	6,782	6,172	-9	5,601	5,029	4,455		
26,811		TOTAL LIABILITIES	27,230	26,928	-1	26,753	26,232	25,709		
52,428		NET ASSETS	50,067	52,562	5	57,627	54,324	50,823		
		REPRESENTED BY FUNDS EMPLOYED								
52,428		Accumulated Funds	45,067	47,562	6	52,627	49,324	45,823		
0		Reserves	5,000	5,000	-	5,000	5,000	5,000		
52,428		TOTAL FUNDS EMPLOYED	50,067	52,562	5	57,627	54,324	50,823		

ACTION	
Cash Flow Statement	
  2006-07			  2006-07	   2007-08		  2008-09	  2009-10	  2010-11		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
80,738		User Charges	81,661	80,753	-1	81,909	84,388	85,809		
178		Interest Received	17	0	-100	0	0	0		
494		Grants Received from the Commonwealth	1,583	494	-69	494	494	494		
3,993		Other Revenue	4,282	4,053	-5	4,162	4,165	4,165		
85,403		Operating Receipts	87,543	85,300	-3	86,565	89,047	90,468		
		Payments								
54,606		Related to Employees	57,689	52,744	-9	54,088	55,456	56,234		
23,618		Related to Supplies and Services	23,053	24,858	8	24,412	24,837	25,480		
883		Borrowing Costs	883	798	-10	744	744	744		
4,078		Other	4,078	4,150	2	4,260	4,263	4,263		
83,185		Operating Payments	85,703	82,550	-4	83,504	85,300	86,721		
2,218		NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	1,840	2,750	49	3,061	3,747	3,747		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Payments								
4,916		Purchase of Property, Plant and Equipment	5,735	7,395	29	9,050	0	0		
4,916		Investing Payments	5,735	7,395	29	9,050	0	0		
-4,916		NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES	-5,735	-7,395	-29	-9,050	0	0		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Receipts								
4,916		Capital Injection from Government	4,916	7,395	50	9,050	0	0		
4,916		Financing Receipts	4,916	7,395	50	9,050	0	0		
		Payments								
539		Repayment of Borrowings	539	550	2	562	562	562		
551		Repayment of Finance Lease	551	582	6	50	0	0		
1,090		Financing Payments	1,090	1,132	4	612	562	562		
3,826		NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES	3,826	6,263	64	8,438	-562	-562		
1,128		NET INCREASE/(DECREASE) IN CASH HELD	-69	1,618	#	2,449	3,185	3,185		
1,306		CASH AT BEGINNING OF REPORTING PERIOD	403	334	-17	1,952	4,401	7,586		
2,434		CASH AT THE END OF THE REPORTING PERIOD	334	1,952	484	4,401	7,586	10,771		

ACTION	
Statement of Changes in Equity	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/07			as at 30/6/07	as at 30/6/08	   Var	as at 30/6/09	as at 30/6/10	as at 30/6/11		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
51,610		Opening Balance	50,545	50,067	-1	52,562	57,627	54,324		
		Accumulated Funds								
-4,352		Operating Result for the Period	-5,394	-4,900	9	-3,985	-3,303	-3,501		
		Reserves								
-4,352		Total Income And Expense For The Period	-5,394	-4,900	9	-3,985	-3,303	-3,501		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
4,916		Capital Injections	4,916	7,395	50	9,050	0	0		
254		Inc/Dec in Net Assets due to Admin Restructure	0	0	-	0	0	0		
52,428		Closing Balance	50,067	52,562	5	57,627	54,324	50,823		
Notes to the Budget Statements
Significant variations are as follows:
Operating Statement
•	user charges – non ACT Government:  the increase of $0.923 million in the 2006‑07 estimated outcome from the original budget is due to increased patronage, especially adult patronage.
•	user charges – ACT Government:
–	the increase of $0.367 million in the 2006‑07 estimated outcome from the original budget is due to additional revenue generated from the provision of Special Needs Transport services to other ACT Government agencies; and 
–	the decrease of $1.130 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is due to decreased network service payments and decreased superannuation contributions due to revised contribution rates, offset by an increase in bus maintenance funding.
•	grants from the Commonwealth:  the increase of $1.089 million in the 2006‑07 estimated outcome from the original budget and the decrease of the same amount in the 2007‑08 Budget from the 2006‑07 estimated outcome is due to increased Commonwealth Fuel Tax credits initiated on 1 July 2006 that will be retained by ACTION in 2006‑07 only.
•	interest:  the decrease of $0.172 million in the 2006-07 estimated outcome from the original budget is due to an over-estimation of interest earnings.
•	employee expenses:
–	the increase of $2.693 million in the 2006‑07 estimated outcome from the original budget is due to delays in implementing network and overhead employee changes arising from organisational restructures; and
–	the decrease of $2.551 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is due to the full implementation of the organisational restructures noted above.
•	superannuation expense:  the decrease of $1.177 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is due to a reduction in staff numbers and lower contribution rates for superannuation.
•	supplies and services:
–	the increase of $0.506 million in the 2006‑07 estimated outcome from the original budget is due principally to increased bus maintenance costs; and
–	the increase of $0.684 million in the 2007‑08 Budget from the 2006‑07 estimated outcome relates to CPI cost increases and increased costs associated with network service changes.
•	borrowing costs:  the decrease of $0.085 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is due to reductions in repayments of capital for both finance leases and loans.
Balance Sheet
•	cash, cash equivalents and investments:
–	the decrease of $2.1 million in the 2006‑07 estimated outcome from the original budget is due to increased costs, decreased capital receipts through buses not being sold, and a slight reduction in operating capital; and
–	the increase of $1.618 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is due to an improvement in operating cash following the restructure of the organisation in 2006‑07 and the planned sale of old buses.
•	current receivables:  the increase of $0.656 million in the 2006‑07 estimated outcome from the original budget is mainly due to an increase in receivables arising from additional ticket sales to agents.
•	inventories:  the increase of $2.254 million in the 2006‑07 estimated outcome from the original budget is mainly due to a change in accounts reflecting inventories.  In the original budget, inventories were classified under other current assets.
•	other current assets:  the decrease of $2.190 million in the 2006‑07 estimated outcome from the original budget relates to the reclassification noted above.
•	current payables:
–	the increase of $1.413 million in the 2006‑07 estimated outcome from the original budget reflects increased capital accounts payable on capital acquisitions due to delays in capital project delivery and an increase in diesel fuel payables; and
–	the decrease of $0.387 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is due to the one‑off effect of higher accounts payables outlined above.
•	current finance leases:  the decrease of $0.532 million in the 2007‑08 Budget from the 2006‑07 estimated outcome reflects lower debt levels.
•	current and non-current employee benefits:  the increase of $1.215 million in the 2007‑08 Budget from the 2006‑07 estimated outcome reflects an increase in long service leave entitlements and wage increases.  Timing changes to forecast employee payments associated with voluntary redundancies have also contributed to the increase.
•	non-current interest bearing liabilities:  the decrease of $0.562 million in the 2007‑08 Budget from the 2006-07 estimated outcome reflects lower debt levels.
Cash Flow Statement
•	variances have mostly been explained in the notes to operating statement, other significant variances are as follows:  
•	net cash from operations:
–	the decrease of $0.378 million in the 2006‑07 estimated outcome from the original budget reflects the change in operating result outlined above. Both revenue and expenses are above budget, although the cash impact is reduced by an increase in diesel fuel payables and;
–	the increase of $0.910 million in the 2007‑08 Budget from the 2006‑07 estimated outcome reflects the improved operating result.
•	net cash from investing activities: 
–	the decrease of $0.819 million in the 2006‑07 estimated outcome from the original budget reflects decreased capital receipts from buses not being sold; and
–	the increase of $1.660 million in the 2007‑08 Budget from the 2006‑07 estimated outcome reflects the capital expenditure for 2007‑08.
•	net cash from financing:  the increase of $2.437 million in the 2007‑08 Budget from the 2006‑07 estimated outcome reflects an increase in the capital injection to meet capital expenditure, offset slightly by increased financing payments.