ACTION
Objectives
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 services and management of the ACT Rural Bus Contract. 
2010-11 Priorities
Strategic and operational issues to be pursued in 2010‑11 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 and accordingly, increasing patronage on ACTION buses;
•	progressing the acquisition of replacement buses in order to improve customer comfort, environmental sustainability and meet the disability accessibility targets;
•	introducing the new smartcard ticketing system, due for completion at the end of 2010;
•	continuing depot upgrades to improve staff conditions, technology, safety and security; and
•	continuing workplace reform to further improve productivity and reduce costs.
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 currently being finalised.  This will build on the success of the REDEX trial, which increased the span of hours and frequency of service between Gungahlin, Civic and Canberra Railway Station.
Further, in the context of the Government’s Workplace Health and Safety Management System Framework, ACTION will continue to seek improvements in safety and staff capability through the implementation of safety devices and associated training.
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.

Estimated Employment Level

2008‑09
Actual Outcome		2009-10
Budget
	2009-10
Est. Outcome	2010-11
Budget
	
754	Staffing (FTE) 1, 2	715	775	787	
Notes:
1.	The previous ACTION policy was to exclude casuals from the FTE count.  However, FTE counts relating to casuals have been included in the 2010-11 Budget in accordance with the Whole of Government Policy.
2.	New initiatives will result in a net increase of 12 FTEs in 2010-11.

Strategic Indicators
Strategic Indicator 1
Total Yearly Passenger Boardings
Public transport initiatives play an important role in the Sustainable Transport Plan.  Factors that contribute to 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, include:
•	the availability and reliability 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 Disability Discrimination Act 1992.

Output Class
	Total Cost1	Government Payment for Outputs	
	2009-10
Est. Outcome
$’000	2010-11
Budget
$’000	2009-10
Est. Outcome
$’000	2010-11
Budget
$’000	
Output Class 1:  
 Public Transport	105,804	111,812	67,031	67,939	
Output 1.1:  Public Transport	105,804	111,812	67,031	67,939	
Note:
1.	Total cost includes depreciation of $6.774 million in 2009‑10 and $9.778 million in 2010‑11
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
	2009-10
Targets	2009-10
Est. Outcome	2010-11
Targets	
Output 1:  Public Transport	
Output 1.1:  Public Transport				
a.	Timeliness of ACTION services	83%	82%	83%	
b.	Customer satisfaction with ACTION services as assessed by passenger surveys	85%	80%	85%	
c.	Increase in modal share (adult work trip increase in accordance with the Sustainable Transport Plan)1	2.9%	-5%	2.9%	
d.	Increase in total patronage2	529,000	-801,000	1,330,000	
e.	Percentage of fleet fully compliant with standards under the Disability Discrimination Act 19923	36%	39%	48.9%	
f.	Percentage of fleet Euro 3 Emission Standard compliant4,5	24.8%	28%	n/a	
g.	Percentage of fleet Euro 3 or better Emission Standard compliant6	n/a	n/a	31.8%	
h.	Total cost per vehicle kilometre	$4.06	$4.13	$4.27	
i.	Total cost per passenger boarding7	$5.43	$6.30	$6.18	
j.	Farebox recovery as a percentage of total cost	21%	20.1%	21.8%	
Notes:
1.	Mode share shift targets have not been achieved due to the combined impact of lower than expected petrol prices when compared with the same period last year and ticket validator failures.
2.	Patronage targets have not been achieved due to the same reasons stated above.  The increase in 2010-11 is from the actual result in 2009-10.
3.	Disability Discrimination Act 1992 (DDA) targets have been exceeded due to the earlier than planned delivery of new buses.
4.	Euro 3 Emission Standards have been exceeded due to the earlier than planned delivery of new buses.
5.	Discontinued measure replaced with (g) for clarity.
6.	New measure replacing (f) for clarity.
7.	Total cost per passenger boarding target has not been achieved due to a combination of increased costs and reduced patronage.

ACTION
Operating Statement
  2009-10			  2009-10	   2010-11		  2011-12	    2012-13	  2013-14		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		Income								
		Revenue								
23,332		User Charges - Non ACT Government	23,086	26,630	15	28,005	29,231	30,955		
73,971		User Charges - ACT Government	76,245	77,329	1	77,444	77,704	77,609		
0		Other Revenue	288	0	-100	0	0	0		
97,303		Total Revenue	99,619	103,959	4	105,449	106,935	108,564		
		Gains								
0		Total Gains	0	0	-	0	0	0		
97,303		Total Income	99,619	103,959	4	105,449	106,935	108,564		
		Expenses								
57,576		Employee Expenses	60,133	61,581	2	63,039	63,304	64,230		
7,589		Superannuation Expenses	8,007	7,806	-3	7,898	7,996	8,098		
30,670		Supplies and Services	29,971	31,466	5	31,971	32,277	32,938		
8,535		Depreciation and Amortisation	6,774	9,778	44	10,706	11,678	12,928		
744		Borrowing Costs	744	744	-	744	744	744		
437		Other Expenses	175	437	150	439	437	439		
105,551		Total Ordinary Expenses	105,804	111,812	6	114,797	116,436	119,377		
-8,248		Operating Result	-6,185	-7,853	-27	-9,348	-9,501	-10,813		
-8,248		Total Comprehensive Income	-6,185	-7,853	-27	-9,348	-9,501	-10,813		

ACTION
Balance Sheet
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/10			as at 30/6/10	as at 30/6/11	   Var	as at 30/6/12	as at 30/6/13	as at 30/6/14		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
966		Cash and Cash Equivalents	107	2,024	#	3,196	5,187	7,116		
1,863		Receivables	2,936	3,013	3	3,095	3,177	3,257		
2,123		Inventories	2,679	2,806	5	2,977	3,153	3,331		
102		Other	119	122	3	125	128	131		
5,054		Total Current Assets	5,841	7,965	36	9,393	11,645	13,835		
		Non Current Assets								
120,549		Property, Plant and Equipment	125,634	141,435	13	141,900	149,312	149,455		
120,549		Total Non Current Assets	125,634	141,435	13	141,900	149,312	149,455		
125,603		TOTAL ASSETS	131,475	149,400	14	151,293	160,957	163,290		
		Current Liabilities								
3,278		Payables	3,681	3,828	4	3,985	4,138	4,291		
586		Interest Bearing Liabilities	586	598	2	610	623	341		
46		Finance Leases	220	220	-	220	220	220		
15,710		Employee Benefits	17,568	17,764	1	17,798	17,839	17,884		
799		Other	2,299	2,356	2	2,413	2,470	2,527		
20,419		Total Current Liabilities	24,354	24,766	2	25,026	25,290	25,263		
		Non Current Liabilities								
4,930		Interest Bearing Liabilities	4,930	4,356	-12	3,782	3,207	2,923		
318		Finance Leases	99	99	-	99	99	99		
501		Employee Benefits	1,714	1,734	1	1,777	1,822	1,867		
5,749		Total Non Current Liabilities	6,743	6,189	-8	5,658	5,128	4,889		
26,168		TOTAL LIABILITIES	31,097	30,955	..	30,684	30,418	30,152		
99,435		NET ASSETS	100,378	118,445	18	120,609	130,539	133,138		
		REPRESENTED BY FUNDS EMPLOYED								
58,643		Accumulated Funds	58,328	76,395	31	78,559	88,489	91,088		
40,792		Reserves	42,050	42,050	-	42,050	42,050	42,050		
99,435		TOTAL FUNDS EMPLOYED	100,378	118,445	18	120,609	130,539	133,138		

ACTION
Cash Flow Statement
  2009-10			  2009-10	   2010-11		  2011-12	    2012-13	  2013-14		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
97,303		User Charges	99,331	103,959	5	105,449	106,935	108,564		
4,165		Other Revenue	4,453	4,165	-6	4,165	4,165	4,165		
101,468		Operating Receipts	103,784	108,124	4	109,614	111,100	112,729		
		Payments								
57,147		Related to Employees	59,700	60,976	2	62,612	62,877	63,803		
7,589		Related to Superannuation	8,007	7,806	-3	7,898	7,996	8,098		
31,060		Related to Supplies and Services	30,362	31,856	5	32,361	32,667	33,328		
744		Borrowing Costs	744	744	-	744	744	744		
4,263		Other	4,263	4,263	-	4,265	4,263	4,265		
100,803		Operating Payments	103,076	105,645	2	107,880	108,547	110,238		
665		NET CASH INFLOW/ (OUTFLOW) FROM OPERATING ACTIVITIES	708	2,479	250	1,734	2,553	2,491		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Receipts								
-1		Proceeds from Sale/Maturities of Investments	0	0	-	0	0	0		
-1		Investing Receipts	0	0	-	0	0	0		
		Payments								
25,863		Purchase of Property, Plant and Equipment and Capital Works	31,250	25,920	-17	11,512	19,431	13,412		
25,863		Investing Payments	31,250	25,920	-17	11,512	19,431	13,412		
-25,864		NET CASH INFLOW/ (OUTFLOW) FROM INVESTING ACTIVITIES	-31,250	-25,920	17	-11,512	-19,431	-13,412		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Receipts								
25,863		Capital Injection from Government	30,962	25,920	-16	11,512	19,431	13,412		
25,863		Financing Receipts	30,962	25,920	-16	11,512	19,431	13,412		
		Payments								
562		Repayment of Borrowings	562	562	-	562	562	562		
562		Financing Payments	562	562	-	562	562	562		
25,301		NET CASH INFLOW/ (OUTFLOW) FROM FINANCING ACTIVITIES	30,400	25,358	-17	10,950	18,869	12,850		
102		NET INCREASE/ (DECREASE) IN CASH HELD	-142	1,917	#	1,172	1,991	1,929		
864		CASH AT BEGINNING OF REPORTING PERIOD	249	107	-57	2,024	3,196	5,187		
966		CASH AT THE END OF THE REPORTING PERIOD	107	2,024	#	3,196	5,187	7,116		

ACTION
Statement of Changes in Equity
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/10			as at 30/6/10	as at 30/6/11	   Var	as at 30/6/12	as at 30/6/13	as at 30/6/14		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
		Opening Equity								
41,028		Opening Accumulated Funds	33,551	58,328	74	76,395	78,559	88,489		
40,792		Opening Asset Revaluation Reserve	42,050	42,050	-	42,050	42,050	42,050		
81,820		Balance at the Start of the Reporting Period	75,601	100,378	33	118,445	120,609	130,539		
		Comprehensive Income								
-8,248		Operating Result for the Period	-6,185	-7,853	-27	-9,348	-9,501	-10,813		
-8,248		Total Comprehensive Income	-6,185	-7,853	-27	-9,348	-9,501	-10,813		
0		Total Movement in Reserves	0	0	-	0	0	0		
		Transactions Involving Owners Affecting Accumulated Funds								
25,863		Capital Injections	30,962	25,920	-16	11,512	19,431	13,412		
25,863		Total Transactions Involving Owners Affecting Accumulated Funds	30,962	25,920	-16	11,512	19,431	13,412		
		Closing Equity								
58,643		Closing Accumulated Funds	58,328	76,395	31	78,559	88,489	91,088		
40,792		Closing Asset Revaluation Reserve	42,050	42,050	-	42,050	42,050	42,050		
99,435		Balance at the End of the Reporting Period	100,378	118,445	18	120,609	130,539	133,138		

Notes to the Budget Statements
Significant variations are as follows:
Operating Statement
•	user charges — non ACT Government:
–	the decrease of $0.246 million in the 2009‑10 estimated outcome from the original budget is due to a decrease in fare revenue ($0.963 million), partly offset by an increase in miscellaneous revenue from fuel tax credits ($0.717 million); and
–	the increase of $3.544 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is due to an expected increase in fare revenue as a result of increased patronage from new transport initiatives and commencement of the new ticketing system. 
•	user charges — ACT Government:
–		the increase of $2.274 million in the 2009‑10 estimated outcome from the original budget is due to increased revenue from concessions and additional service purchase payments provided for increased insurance premiums and depot maintenance; and 
–		the increase of $1.084 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is due to increased funding for additional services associated with new transport initiatives and forecast enterprise agreement negotiations.
•	other revenue:
–	the increase of $0.288 million in the 2009‑10 estimated outcome from the original budget is due to one-off revenue from the Capital Improvement Fund for the expansion of the ACTION Screens on Buses program; and
–	the decrease of $0.288 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is due to the above revenue only being received in 2009‑10.
•	employee expenses:
–		the increase of $2.557 million in the 2009‑10 estimated outcome from the original budget is due to increased employee costs to meet network enhancements; and
–		the increase of $1.448 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is due to additional services associated with new transport initiatives and the forecast enterprise agreement negotiations.
•	superannuation expense:  
–	the increase of $0.418 million in the 2009‑10 estimated outcome from the original budget is due to increased employee costs to meet network enhancements; and
–		the decrease of $0.201 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is due to a lower proportion of CSS and PSS superannuation scheme members.
•	supplies and services:
–		the decrease of $0.699 million in the 2009‑10 estimated outcome from the original budget is due to savings relating to fuel expenses as a result of a decline in fuel prices; and	
–		the increase of $1.495 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is due primarily to additional services associated with the new transport initiatives.
•	depreciation and amortisation:
–		the decrease of $1.761 million in the 2009‑10 estimated outcome from the original budget is due to the delays in the completion of major projects, particularly the bus replacement and ticketing system projects; and
–		the increase of $3.004 million in the 2010‑11 Budget from the 2009‑10 estimated outcome reflects the expected completion of the above major projects and other new capital works during 2010‑11.
•	other expenses:  the decrease of $0.262 million in the 2009‑10 estimated outcome from the original budget and the increase of $0.262 million in the 2010‑11 Budget from the 2009‑10 estimated outcome are due to delays in retiring old buses from the fleet in 2009‑10 due to network enhancements.  It is expected that they will be disposed of in 2010‑11 when further new buses are commissioned.
Balance Sheet
•	cash and cash equivalents:
–		the decrease of $0.859 million in the 2009‑10 estimated outcome from the original budget is due to increased employee costs to meet network enhancements; and
–		the increase of $1.917 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is due to increased fare revenue from patronage growth.
•	receivables:  the increase of $1.073 million in the 2009‑10 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 $0.556 million in the 2009‑10 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 increase of $5.085 million in the 2009‑10 estimated outcome from the original budget is due to a higher than budgeted increase in the fair value of the bus fleet and a lower than forecast depreciation expense associated with delays in the completion of major projects; and
–		the increase of $15.801 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is due to the completion of the several major projects rolled over from 2009‑10 and other new capital works planned for 2010‑11.
•	payables:  	the increase of $0.403 million in the 2009‑10 estimated outcome from the original budget is due to creditors relating to major capital works projects.
•	current and non current finance leases:  the net decrease of $0.045 million in the 2009‑10 estimated outcome from the original budget is due to changed financing arrangements on support vehicle leases.
•	current and non current employee benefits:  the net increase of $3.071 million in the 2009‑10 estimated outcome from the original budget is due to an increase in leave entitlements associated with the change in accounting policy relating to calculation of leave entitlements introduced in 2008‑09.
•	other:  the increase of $1.5 million in the 2009‑10 estimated outcome from the original budget reflects an increase in revenue received in advance as a result of the shift to prepaid tickets and away from cash sales by drivers.  This offsets the increase in ticket agent debts referred to above.
•	interest bearing liabilities:  the decrease of $0.574 million in the 2010‑11 Budget from the 2009‑10 estimated outcome reflects a reduction in outstanding loan principal.
•	accumulated funds:  the increase of $18.067 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is associated with the receipt of capital injection relating to the funding of new capital initiatives in 2010‑11 and the roll over of several delayed projects from 2009‑10.
Cash Flow Statement
Significant variances in the 2009‑10 estimated outcome from the original budget and in the 2010‑11 Budget from the 2009‑10 estimated outcome for the Cash Flow Statement are mainly explained within the notes to the Operating Statement above.  Other significant variances are as follows:
•	net cash inflow from operating activities:  the increase of $1.771 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is due to increased fare revenue from patronage growth.
•	net cash outflow from investing activities:
–		the decrease of $5.386 million in the 2009‑10 estimated outcome from the original budget is due to the bus replacement and ticketing system capital projects being carried over to 2009‑10, and the transfer from TAMS of several capital upgrade projects expected to be completed in 2009‑10; and
–		the increase of $5.330 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is due to the completion of the several major projects rolled over from 2009‑10 and other new capital works during 2010‑11.
•	net cash outflow from financing activities:
–		the increase of $5.099 million in the 2009‑10 estimated outcome from the original budget is mainly due to increased capital injection relating to the bus replacement and ticketing system capital projects being rolled over to 2009‑10, and the transfer from TAMS of several capital upgrade projects expected to be completed in 2009‑10; and
–		the decrease of $5.042 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is due to decreased capital injection required for capital works projects.
Statement of Changes in Equity
Variances in the statement are explained in the notes above.