Published information 3. A statement of the material that has been PART FOUR MANDATORY DISCLOSURES
Section 7 1(a) of the Freedom of Information Act prepared by the agency under this Part for
requires certain information to be published: publication or for inspection by members of ANNUAL REPORT
the public, and the places at which a person 2012-13
1. A statement setting out particulars of the may inspect or obtain that material.
organisation and functions of the agency. It must
indicate, as far as practicable, the decision-making VicRoads publishes a range of information on its
powers and other powers affecting members of website. For advice and access to the information
the public who are involved in those functions – contact Victoria Government Bookshop, telephone
and particulars of any arrangement that exists for 1300 366 356 or email [email protected].
consultation with, or representation by, bodies and
persons outside the government administration 4. A statement listing the literature available by way
in relation to the formulation of policy in, or the of subscription services or free mailing lists.
administration of, the agency.
This information is provided on VicRoads’ website.
This information is located throughout this For advice on subscription services and free mailing
document and in particular in the ‘About VicRoads’ lists, contact the Victoria Government Bookshop,
section on pages 6 to 7 and ‘Corporate Governance’ telephone 1300 366 356 or email [email protected].
section on pages 41 to 47.
5. A statement of the procedure to be followed by
2. A statement of the categories of documents that a person when a request for access to a
are maintained in the possession of the agency. document is made to the agency.
VicRoads maintains an extensive filing system This information is provided on page 50.
based on the following categories:
6. A statement designating by name the officer or
commercial operations officers responsible within each agency for the
committees initial receipt of, and action upon, requests for
community and stakeholder relationships access to a document.
contract management
corporate governance This information is provided on page 50.
emergency management
environmental management 7. A statement listing all boards, councils,
equipment and plant committees and other bodies constituted by
financial management two or more persons, that are a part of, or that
government relations have been established for the purpose of advising
human resource management the agency, and whose meetings are open to
information management and systems the public, or the minutes of whose meetings
legal are available for public inspection.
occupational health and safety
property and land management There are a number of councils, committees
registration and licensing and groups that provide advice and stakeholder
road asset maintenance and community input to VicRoads and/or the
road network improvement Minister for Roads. In 2012–13, these included the
road safety management Motorcycle Advisory Group, Victorian Road Freight
statutory planning Advisory Council, Victorian Bicycle Advisory Council
strategic planning and the Victorian Road Based Public Transport
technical information and services Advisory Council.
traffic management.
8. If the agency maintains a library or reading room
that is available for public use, a statement of that
fact including details of the address and hours of
opening of the library or reading room.
VicRoads maintains a library that is available
for public use by appointment. To make an
appointment, contact Victorian Government
Library Services, telephone (03) 9854 2231
or email [email protected].
51
Compliance with the Building Act 1993 Implementation of the Victorian Industry
Participation Policy (VIPP)
VicRoads complies with the Minister for Finance
Guidelines on the Standards for Publicly Owned Contracts commenced
Buildings and the building and maintenance
provisions of the Building Act 1993. During 2012-13, VicRoads commenced 42 contracts
with a total value of $411.7 million to which the VIPP
All new work and redevelopment of existing applied. There were 9 metropolitan contracts valued
properties is carried out in accordance with the at $321.7 million and 33 regional contracts valued at
Building Act 1993, relevant building regulations $90.0 million.
and other statutory requirements either under
the direction of VicRoads or the management of The commitments by contractors under VIPP
the Department of Treasury and Finance, included an overall level of local content of
Shared Service Provider. 97 per cent of the total value of the contracts.
Approximately 840 full time equivalent jobs were
VicRoads engages the Department of Treasury and involved in these works. Of these jobs, over 180
Finance, Shared Service Provider to ensure that the were newly created. The works also involved
47 buildings under its management are compliant approximately 60 apprentices/traineeships of which
with legislation and policy and are maintained over 15 were created as a direct result of the award
in a safe and serviceable condition. For all other of these contracts.
buildings, VicRoads has internal mechanisms and
programs in place which include routine and adhoc Benefits to the Victorian economy in terms of
building inspections and annual maintenance increases in skills and technology transfer include:
programs based on various audits of:
training in specialist areas such as contract
building standard and condition management, risk management and concrete
mix design
hazardous materials, including asbestos
improved safe work practices.
essential services
Contracts completed
storm water and trade waste systems.
During 2012–13, VicRoads completed 48 contracts
Compliance with competitive neutrality with a total value of $1,057.1 million to which the
VIPP applied. There were 16 metropolitan contracts
VicRoads’ commercial business activities comply valued at $856.9 million and 32 regional contracts
with the requirements of the policy statements valued at $200.2 million.
Competitive Neutrality: A Statement of Victorian
Government Policy, Victorian Government The outcomes reported by contractors under VIPP
Timetable for the Review of Legislative Restrictions included an overall level of local content of 97 per
on Competition and any subsequent reforms. cent of the total value of the contracts and the
creation of more than 100 full time equivalent jobs
and 15 apprenticeships/traineeships.
Benefits to the Victorian economy in terms of
increases in skills and technology transfer included:
safer and more efficient construction techniques
improved traffic management practices
training of next generation construction managers
and field staff.
52
Disclosure of major contracts Pursuant to the Protected Disclosure Act 2012, PART FOUR MANDATORY DISCLOSURES
VicRoads is not an entity that can either receive
Details of all VicRoads’ contracts are provided or notify protected disclosures. Disclosures
at vicroads.vic.gov.au. These details include full of improper conduct or detrimental action by
disclosure of contracts valued at more than VicRoads or its employees must be made directly
$10 million. to the Independent Broad-based Anti-corruption
Commission Victoria (IBAC).
Whistleblowers Protection Act 2001/
Protected Disclosure Act 2012 VicRoads’ procedures for making disclosures
pursuant to the Protected Disclosure Act 2012
VicRoads’ report pursuant to Section 104 of the are available on VicRoads’ website.
Whistleblowers Protection Act 2001 and Section
69 of the Protected Disclosure Act 2012 for the
Year 1 July 2012 to 30 June 2013 is outlined in
the tables below.
On 10 February 2013, the Whistleblowers Protection
Act 2001 was replaced by the Protected Disclosure
Act 2012.
Table 2. Disclosures under the Protected Disclosure Act 2012 2011-12 2012-13
(those made from 10 February 2013) N/A 11
The number of disclosures made by an individual to VicRoads and
notified to IBAC from 10 February – 30 June 2013
Table 3. Disclosures under the former Whistleblowers Protection Act 2001
Disclosures made to VicRoads during the year 2011-12 2012-13
0 5
Disclosures referred during the year by VicRoads to the Ombudsman for
determinations as to whether they are public interest disclosures 00
Disclosed matters referred to VicRoads during the year by the Ombudsman 61
02
Disclosed matters referred during the year by VicRoads to the Ombudsman to
investigate 00
01
Investigations of disclosed matters taken over by the Ombudsman from VicRoads 00
during the year 00
23
Matters that VicRoads has declined to investigate during the year
ANNUAL REPORT
Disclosed matters referred to VicRoads by the Ombudsman currently 2012-13
under investigation
Disclosed matters that were substantiated on investigation
Recommendations of the Ombudsman under the Act that relate
to VicRoads
1 The matter listed in the table above was notified to IBAC
for assessment prior to VicRoads receiving advice from IBAC
confirming that VicRoads is not an entity that can receive
or notify protected disclosures.
53
Advertising Expenditure
There were two government advertising campaigns
with total media buy in excess of $150,000.
The details are listed in the table below.
Table 4.
NAME OF CAMPAIGN SUMMARY START/END ADVERTISING CREATIVE AND RESEARCH PRINT OTHER
CAMPAIGN DATE (MEDIA) CAMPAIGN AND AND CAMPAIGN
EXPENDITURE
EXPENDITURE DEVELOPMENT EVALUATION COLLATERAL
2012-13 EXPENDITURE EXPENDITURE EXPENDITURE 2012-13
2012-13 (EXCLUDING
(EXCLUDING (EXCLUDING 2012-13 2012-13
GST) GST) (EXCLUDING (EXCLUDING GST)
GST) GST)
Outdoor
To promote the existing $177,497.33
range of custom plates (+$37,650
in one integrated install)
advertising strategy. Magazine
Custom The campaign $47,722.61
Plates. Less
ordinary objectives were to Dec 2012 – Radio $115,000 $7,000 $0 $0
raise brand awareness June 2013 $33,324.41
of the breadth of
custom plates available, Online
generate sales of all $52,792.80
custom plates and
build awareness of Total
vplates.com.au $348,987.15
M80 This campaign aimed Radio $82,494 $28,460 $0 $24,555
Driving the to raise awareness $69,982
Ring Road of major road layout Print $147,311
changes and educate Online
drivers about what Sep 2012 – $27,493
they could expect March 2013
on the new M80
Ring Road. Changes Total
were communicated $244,786
through driver
simulations and online
journey planners.
54
Consultancies PART FOUR MANDATORY DISCLOSURES
There were two consultancies valued in excess
of $10,000 as shown in the table below. There were
no consultancies with a value of less than $10,000.
Table 5.
CONSULTANT PROJECT TOTAL EXPENDITURE EXPENDITURE
PROJECT 2011-12 2012-13
FEES
APPROVED
The Lonsdale Planning support for VicRoads Plan for $923,000 $738,360 $0
Group the Future program $301,084 $301,084 $0
$235,000 $235,000 $0
Deloitte Touche Corporate system replacement project $25,000 $20,000
Tohmatsu $93,000 $0 $64,545
$0
Cap Gemini Information Management & Technology
Functional Review 2011-12
Ernst & Young Advisory services to VicRoads in
relation the operating model for the
custom plate business
Ernst & Young Feasibility study for commercialisation
options within VicRoads
Compliance with s22 of the Road perform the functions and exercise the powers of
Management Act 2004 the coordinating road authority and the responsible
road authority for specified sections of roads and
VicRoads must publish in its annual report a periods of time. For further information about
summary of Ministerial Directions given under these Ministerial Directions, including references to
Section 22 of the Road Management Act 2004. the notices published in the Victoria Government
Gazette, refer to the VicRoads’ Register of Public
Table 6 shows Ministerial Directions that were in Roads which is available at vicroads.vic.gov.au.
effect during 2012-13. VicRoads was directed to
DESIGNATED ROAD PROJECT (LOCATION)
Table 6.
Dingley Arterial (Springvale Road to Perry Road) Project
MINISTER START DATE END DATE
17/09/2010 1/02/2013
Minister for
Roads and Ports
ANNUAL REPORT
2012-13
55
Workforce data
Table 7. (a)
EMPLOYEE NUMBERS BY YEAR (HEAD COUNT)
2012-13 2011-12 2010-11 2009-10 2008-09 2007-08
3,212 3,171 2,831
2,622 2,994 3,184
Table 7. (b)
JUNE 2012 – JUNE 2013 ONGOING FIXED TERM
ALL EMPLOYEES
FTE FTE
NUMBER FULL TIME PART TIME
2,510.7 9.0
(HEAD COUNT) (HEAD COUNT) (HEAD COUNT) 2,852.2 19.8
30 June 2013 2,622 2,340 282
30 June 2012 2,994 2,666 328
Table 7. (c)
EMPLOYEES BY GENDER, AGE & CLASSIFICATION
JUNE 2013 JUNE 2012
ALL ONGOING FIXED ALL ONGOING FIXED
EMPLOYEES TERM EMPLOYEES TERM
FTE
NUMBER FTE NUMBER FTE
(HEAD FTE (HEAD 967.2
872.5 1,885.0 8.8
COUNT) 1,638.2 COUNT) 2,852.2 11.0
2,510.7 19.8
GENDER 114.4
62.8 687.9 3.0
Female 961 639.8 4.0 Female 1,077 599.1 3.0
577.3 5.0 Male 1,917 786.5 8.0
Male 1,652 699.6 9.0 TOTAL 2,994 584.3 4.8
486.9 80.0 1.0
TOTAL 2,613 2,852.2
44.3 19.8
AGE 2,510.7 19.7
651.2 2.0
Under 25 64 11.0 1.0 Under 25 121 705.7 1.7
2.0 25-34 719 786.9 3.6
25-34 662 5.0 35-44 652 438.9 4.0
1.0 45-54 819 166.8 5.5
35-44 617 0.0 55-64 598 2.0
0.0 65 & Over 85 17.0 1.0
45-54 724 9.0 TOTAL 2,994 66.0 0.0
2,852.2 19.8
55-64 497 CLASSIFICATION 24
1.0 VRO1
Over 64 49
TOTAL 2,613
CLASSIFICATION
VR01 12
VR02 640 590.7 0.0 VRO2 710
VR03 650 636.7 0.0 VRO3 727
VR04 697 676.8 2.0 VRO4 814
VR05 380 366.9 4.0 VRO5 461
VR06 153 147.6 2.0 VRO6 174
STS 0.0 STS
Executives 16 16.0 0.0 Executives 18
TOTAL 65 65.0 9.0 TOTAL 66
2,613 2,510.7 2,994
Notes: All figures reflect employment levels as at 30 June of each year.
Ongoing employees means people engaged on an open ended contract of employment and executives engaged
on a standard executive contract who were active in the last full pay period of June.
FTE means full-time staff equivalent.
Excluded are those on leave without pay, external contractors/consultants, temporary staff employed by employment agencies.
56
Office based environmental impacts VicRoads has implemented a number of initiatives PART FOUR MANDATORY DISCLOSURES
during the year to reduce our office-based
VicRoads voluntarily reports on aspects of office- environmental impacts, particularly in relation to
based environmental performance defined in the paper and transportation categories. These include:
FRD24C Reporting of Office-Based Environmental
Impacts and shown in Table 8. limiting paper options purchased from
our stationary provider, to meet minimum
Recently VicRoads implemented an online environmental standards including a minimum of
environmental data management system which 50 per cent recycled content, sustainable forestry
aims to streamline and automate the reporting certified and Australian made. This initiative has
of data under FRD24C. As such, the historical seen low recycled content (0-50 per cent) paper
data outlined in Table 1 has changed when reduce from approximately 41 per cent to 8 per
compared to previous annual reports and is a more cent of all office paper purchased. This small
complete representation of VicRoads’ office-based percentage of low recycled content paper is
environmental impacts. It is anticipated that in the mostly coloured paper, which is not currently
future, the system will also be utilised for tracking available in a recycled content option
VicRoads’ operational environmental performance.
continuing to apply internal charging of fleet
In 2012-13, the office-based energy and water vehicles based on the greenhouse gas ratings.
indicators have increased on a total, per square This has promoted more efficient vehicles being
metre and full-time equivalent (FTE) staff basis purchased across the operational passenger fleet
when compared to the previous year. The
significant increase in energy and water per FTE continuing to utilise video conferencing facilities
can be attributed to the organisational restructure as a substitute for face to face meetings. These
which has resulted in less staff in the same facilities were mainly used by the VicRoads
number of offices. Going forward, VicRoads regional offices located across the State
will be looking to align office locations with
the new organisational structure. continuing to track performance and reward staff
for achieving sustainable travel goals using the
software program, Green Travel
purchasing carbon offsets that are eligible under
the National Carbon Offset Standard for domestic
and international air travel undertaken in 2012-13.
ANNUAL REPORT
2012-13
57
Table 8. Office based environmental indicator
INDICATOR
ENERGY UNIT 2010-11 2011-12 2012-13
45,248 43,765 44,766
E1 Total Energy Usage Gigajoules
(including GreenPower) 11,454 13,067 13,696
E2 Greenhouse Gas Emissions Tonnes CO2-e 25 0 1
associated with energy use1 13,538 13,400 17,432
E3 Percentage of electricity purchased as % of total 902 873 893
2010-11 2011-12 2012-13
GreenPower2 consumption
N/A
E4 Units of office energy used per FTE Megajoules / FTE N/A
N/A
E5 Units of office energy used per unit Megajoules / m2
office space3 N/A
N/A
WASTE4 UNIT N/A
N/A
Ws1 Total units of waste disposed of to: N/A
2010-11
Landfill Kilograms 37,971 101,887 100,449
Recycling 67,885 68,484
11.4 16,177 18,522
Compost
8.4
Ws2 Units of office waste disposed of per 78.4
FTE by: 13.2
2010-11
Landfill Kilograms / FTE 22,103 31.2 39.1
Recycling 20.8 26.7
6,613
Compost 5.0 7.2
441 45 46
Ws3 Recycling rate % of total waste 116 115
2011-12 2012-13
Ws4 Greenhouse Gas Emissions Tonnes CO2-e 36,086
associated with waste disposal 31,863
11.0
PAPER UNIT 12.4
P1 Total units of A4 equivalent copy Reams
paper used
P2 Units of A4 equivalent copy paper Reams / FTE
used per FTE
P3 Percentage of recycled content of
copy paper purchased:
0-50% recycled content % Recycled 40.8 7.5
50-75% recycled content content 45.6 56.0
13.6 36.5
75-100% recycled content 2011-12 2012-13
25,765 27,410
WATER UNIT
7,889 10,674
W1 Total units of metered water Kilolitres
consumption 514 547
W2 Units of water consumed in offices Litres / FTE
per FTE
W3 Units of metered water consumed in Litres / m2
offices per unit of office space3
58
TRANSPORTATION UNIT 2010-11 2011-12 2012-13 PART FOUR MANDATORY DISCLOSURES
T1 Total energy consumption by vehicles Gigajoules 199,287 187,448 145,085
T2 Total travel associated with vehicles5 Kilometres 19,432,949 18,096,831 15,629,285
T3 Total greenhouse gas emissions by vehicle Tonnes CO2-e 13,455 12,777 9,940
type
T4 Greenhouse gas emissions from vehicle fleet Tonnes CO2-e 0.23 0.23 0.23
per 1,000km6 /1,000km
T5 Total distance by air travel Kilometres 2,881,905 1,942,411 2,282,072
T6 Employees regularly (>75% of work
attendance days) using public transport, % of total N/A N/A N/A
cycling, walking or car pooling to and from employees
work or working from home by locality type7
GREENHOUSE GAS EMISSIONS UNIT 2010-11 2011-12 2012-13
G1 Total greenhouse gas emissions Tonnes CO2-e 11,454 13,067 13,696
associated with office energy use
G2 Total greenhouse gas emissions from Tonnes CO2-e 13,455 12,777 9,940
vehicle fleet
G3 Total greenhouse gas emissions from Tonnes CO2-e 710 472 560
air travel
G4 Total greenhouse gas emissions with Tonnes CO2-e N/A 116 115
waste disposal
G5 Greenhouse gas emission offsets purchased Tonnes CO2-e N/A 4728 560
1 In last year’s Annual Report, electricity purchased as 7 A Travel Smart Survey has not been conducted over the last ANNUAL REPORT
GreenPower was not subtracted from the calculation three financial years. 2012-13
used to determine the total greenhouse gas emissions
from energy use. This year, in line with the Whole of 8 An additional 24 tonnes worth of carbon offsets were
Victorian Government FRD 24C Guidance, GreenPower purchased to cover the increase in greenhouse gas
was subtracted from the calculation, resulting in lower total emissions from a correction in calculation methodology.
greenhouse gas emissions when compared to last year’s
Annual Report. Environmental incidents
2 In 2010-11, VicRoads purchased an average of 12 per cent Following a review of key performance indicators,
GreenPower and the Department of Environment and only significant environmental incidents will be
Primary Industries (DEPI) purchased 13 per cent GreenPower reported in place of a breakdown of all incidents
on VicRoads’ behalf. In 2011-12, the default GreenPower by level and type. Significant environmental
purchases across VicRoads electricity contracts have been incidents are defined as levels 4 and 5.
decreased to 0 per cent.
Two level 4 environmental incidents have been
3 Data includes approximately 90 per cent of VicRoads sites. reported over the past 12 months. These incidents
It excludes depots. involved the disturbance of a potential site of
Aboriginal cultural heritage significance and
4 Data includes approximately 84 per cent of VicRoads’ sites. damage to significant native vegetation as a result
It excludes project offices and depots. 2010-11 data has not of roadside weed management activities. To
been reported due to a different method of data collection minimise the risk of these incidents occurring again,
with results not directly comparable. VicRoads has reviewed the projects’ environmental
management processes and on site controls to
5 Kilometres travelled are reported based on a Fringe Benefits ensure the ongoing protection of these heritage and
Tax year (April – March). environmental values. VicRoads has also conducted
further training of personnel regarding environmental
6 This indicator is reported based on a Fringe Benefits Tax year and heritage requirements and sensitivities.
(April – March). Due to a proportion of the vehicle fleet not
reporting the kilometres travelled, this indicator is calculated 59
by using greenhouse gas emissions from vehicles that only
report accurate kilometres travelled.
PART FIVE:
FINANCIAL
MANAGEMENT 05
Financial Management 2013 2012 $m change PART FIVE FINANCIAL MANAGEMENT
$m $m inc/(Dec)
Table 1. Key Financial Results
1,504.9 2,013.3 (508.4)
YEAR ENDED 30 JUNE 1,499.0 1,521.6 (22.6)
FINANCIAL PERFORMANCE
Income from Transactions 5.9 491.7 (485.8)
Expenses from Transactions 7.5 7.8 (0.3)
NET RESULT FROM TRANSACTIONS 13.4
Other Economic Flows included in Net Result 499.5 (486.1)
NET RESULT 1,200.8
Expenses from Transactions 105.7 1,232.3 (31.5)
Network and Asset Planning 147.6 99.7 6.0
Road Safety 44.9 152.8 (5.2)
Registration and Licensing 36.8 8.1
Other Services 1,499.0
1,521.6 (22.6)
CAPITAL WORKS EXPENDITURE 853.4
Infrastructure assets 23.3 873.6 (20.2)
Other assets 44.9 (21.6)
876.7 918.5 (41.8)
TOTAL EXPENDITURE 2,375.7 2,440.1 (64.4)
INCOME COLLECTED ON BEHALF OF THE VICTORIAN 3,785.5 3,458.1 327.4
GOVERNMENT AND OTHER GOVERNMENT AGENCIES 29.0 27.9 1.1
INCOME ADMINISTERED ON BEHALF
OF THE VICTORIAN GOVERNMENT 2013 2012 $m change
$m $m inc/(Dec)
AS AT 30 JUNE
FINANCIAL POSITION 45,372.8 45,136.6 236.2
Total assets 411.9 419.3 (7.4)
Total liabilities
NET ASSETS 44,960.9 44,717.3 243.6
LIABILITIES ADMINISTERED ON BEHALF OF
THE VICTORIAN GOVERNMENT 348.6 346.4 2.2 ANNUAL REPORT
Total liabilities 2012-13
61
Financial Overview The Victorian Government receives funding for
improvements to and maintenance of the National
VicRoads’ total expenditure was $2.4 billion in Land Transport Network under the Federal Nation
2012-13, $64.4 million less than the previous year. Building Program (National Land Transport) Act
This expenditure comprised $1.5 billion in expenses 2009 and the Federal Interstate Road Transport Act
from transactions and $0.9 billion in capital works 1985. This funding is forwarded to VicRoads as a
expenditure. grant to meet expenditure commitments.
The total expenditure for 2012-13 comprised Victorian Government grants of Federal funding
$1.8 billion in delivering outputs and $0.6 billion to VicRoads in 2012-13 totalled $371.8 million,
relating to the expensing of assets recognised a decrease of $340.5 million compared to the
as outputs in previous years. previous year. The reduction in funding was
principally due to the completion of major
The value of road infrastructure and other assets construction projects including the Goulburn Valley
managed by VicRoads increased by $0.2 billion Highway – Nagambie Bypass and Geelong Ring
to $45.4 billion during 2012-13, while total liabilities Road section 4B, and the timing of Federal funding
decreased by $7.4 million to $411.9 million. These on joint Federal/State funded construction projects
movements in assets and liabilities resulted in a under the Nation Building Program.
growth in net assets of $0.2 billion to $45.0 billion
as at 30 June 2013. In 2012-13, VicRoads was provided with Victorian
Government output and asset appropriation grants
Financial Performance of $324.9 million, a decrease of $12.8 million on
the previous year.
VicRoads recorded a net result surplus of $13.4
million in 2012-13 compared with a net surplus of The Victorian Government’s Better Roads Victoria
$499.5 million in the previous year. The decrease Trust Account was established under the Business
in surplus was principally due to reduced funding Franchise (Protection Products) Act 1979. The Act
received for capital expenditure, expenditure relating originally required a State levy on petrol and diesel
to revenue recognised in previous years, a reduction fuel sales to be utilised to fund construction and
in the value of assets received free of charge, maintenance of roads. Following the abolition of this
and increased depreciation expense following levy in August 1997, the Victorian Government has
the revaluation of assets as at 30 June 2012. The continued to make equivalent payments to the Trust
reduced revenue funding for capital expenditure was Account, together with an indexed $17 per motor
partly offset by a higher level of capital contributions vehicle registration applicable from 1 July 2003.
by the State Government.
The funding of projects from the Better Roads
The 2012-13 net result surplus was achieved after Victoria Trust Account contributes to Victoria’s
recognising as revenue $677.7 million to fund economic development through reduced transport
capital works expenditure, $12.9 million as assets costs and increased efficiency of arterial roads.
received free of charge, and $1.3 million arising Two thirds of funding from the Trust Account is
from asset register adjustments. These revenue directed to metropolitan roads projects and one
items were partly offset by the expensing of assets third to rural road projects. Since the Better Roads
which were funded by revenue from Governments Victoria Trust Account was established in 1993,
Grants in previous years, via depreciation, disposal or 2,101 road infrastructure projects (comprising 462
divestment, totalling $638.6 million, and a decrease projects in the metropolitan area and 1,639 in
in working capital of $39.9 million. regional Victoria) valued at more than $5.3 billion
have been approved. The Better Roads Victoria Trust
Funding Sources Account provided funding for road construction and
maintenance projects of $310.6 million in 2012-13,
VicRoads’ funding is derived from the Victorian an increase of $67.2 million on the previous year.
Government annual budget, program funding This is primarily due to the timing of expenditure on
from the Transport Accident Commission, revenue joint Federal/State funded projects.
from regulatory fees and fee-for-service charges.
Funding for operating outputs and capital works
from all sources totalled $1.7 billion during 2012-13,
a decrease of $286.3 million on the previous year.
62
From 1 July 2005, revenue raised from traffic Financial Position PART FIVE FINANCIAL MANAGEMENT
cameras and on the spot speeding fines has also
been paid into the Better Roads Victoria Trust VicRoads’ non-financial assets increased by
Account and utilised to fund road construction and $0.3 billion to $45.0 billion during 2012-13.
maintenance, road safety, and traffic and transport This increase resulted from asset construction
integration programs. VicRoads received traffic and acquisitions of $0.9 billion, partially offset by
camera and speeding fine funding of $343.4 million the depreciation of assets amounting to $0.5 billion.
during 2012-13.
VicRoads’ financial assets decreased by $43.7 million
VicRoads generated revenue from regulatory fees, to $392.0 million during 2012-13 and total liabilities
fee for service charges, and other revenue totalling decreased by $7.4 million to $411.9 million during
$257.5 million in 2012-13, a decrease of $14.6 million the year.
on the previous year. This decrease is primarily due
to higher levels of insurance recovery for flood As a result of the above changes, VicRoads’ net
restoration works in 2011-12. assets increased by $0.2 billion to $45.0 billion
as at 30 June 2013.
The Transport Accident Commission provides
funding for a range of road safety infrastructure Income Collected on Behalf of the
projects and motorcycle safety initiatives. During Victorian Government and other
2012-13 this funding amounted to $82.8 million, Government Agencies
a decrease of $19.0 million on the previous year.
VicRoads administers the collection of certain
Capital Works Expenditure fees, licences and duties on behalf of the
Victorian Government, various State Government
VicRoads undertook asset construction works agencies, and the Commonwealth Department of
and acquisitions totalling $876.7 million during Infrastructure and Transport. These amounts
2012-13, a decrease of $41.8 million from are not recognised as VicRoads’ income but are
the previous year. Details of significant capital paid to the Victorian Government’s Consolidated
works projects undertaken during 2012-13 are Fund or other government agencies. During
outlined in the section in this report which refers 2012-13, collections on behalf of the Victorian
to the ‘Develop the road system to improve Government and other government agencies
connections between places that are important totalled $3.8 billion compared with $3.5 billion
to customers’ objective, see page 15. the previous year.
Cash Flows Melbourne CityLink
During 2012-13 VicRoads utilised cash funds VicRoads manages the administration of revenue,
received from the Victorian Government, expenditure, assets and liabilities arising from
collections of revenue and proceeds from the Melbourne CityLink Act 1995 on behalf of
asset disposals totalling $1.9 billion to fund the Victorian Government. These items are not
operating activities totalling $1.0 billion and recognised as VicRoads’ revenue, expenditure,
capital works activities totalling $0.9 billion. assets or liabilities.
Details of the concession notes and related
revenues are disclosed in Note 1(r)(ii) - ‘Private
Provision of Public Infrastructure’ and Note 25 -
‘Transactions administered on behalf of the
Victorian Government’.
ANNUAL REPORT
2012-13
63
Table 2. Five year financial summary 2013 2012 2011 2010 2009
$m $m $m $m $m
YEAR ENDED 30 JUNE
1,504.9 2,013.3 1,709.2 1,694.8 1,414.7
FINANCIAL PERFORMANCE 1,499.0 1,521.6 1,496.2 1,420.3 1,381.2
Income from transactions
Expenses from transactions 5.9 491.7 213.0 274.5 33.5
NET RESULT FROM TRANSACTIONS 7.5 7.8 11.9 (3.1) 0.7
Other Economic Flows Included in Net Result 13.4 271.4
NET RESULT (28.3) 499.5 224.9 34.2
Net change in asset revaluation reserve (14.9) 2,282.5 (49.5) 3,472.7 -
COMPREHENSIVE RESULT 2,782.0 175.4 3,744.1
34.2
CASH FLOWS
Cash flows from operating activities 640.3 801.4 706.9 637.9 486.3
Cash flows used in investing activities (836.7) (884.2) (1,023.2) (1,086.3) (924.1)
Cash flows from financing activities 422.0
NET INCREASE/(DECREASE) IN CASH HELD 198.9 82.0 318.0 448.4
2.5 (0.8) 1.7 - (15.8)
CAPITAL WORKS
TOTAL EXPENDITURE 876.7 918.5 1,045.4 1,099.0 908.5
FUNDING SOURCES 283.4 627.1 400.2 426.4 215.9
State Government Funding derived from the Federal Government 49.9 51.0 50.7 48.4 58.7
Construction 21.0 21.6 19.7 16.3 13.4
Asset Maintenance and minor works 17.0 11.7 13.6 44.5 11.4
Federal Interstate Road Transport Scheme 0.9 2.0 1.0 0.0
National Blackspot program 0.5 712.3 299.4
Other 371.8 486.2 536.6
TOTAL FEDERAL GOVERNMENT FUNDING
126.0 255.7 251.8 236.6 191.4
State Government 198.9 82.0 307.7 433.9 439.5
Outputs appropriations 654.0 553.4 610.7 571.9 569.6
Contributed capital appropriations 978.9 891.1 1,170.2 1,242.4 1,200.5
Better Roads Victoria Trust Account 82.8 101.8 112.9 104.6 126.7
TOTAL STATE GOVERNMENT FUNDING 257.5 272.1 247.4 233.7 227.1
Transport Accident Commission Program Funding 1,691.0 1,977.3 2,016.7 2,117.3 1,853.7
VicRoads generated revenue
TOTAL FUNDING 1,797.1 1,705.9 1,628.9 1,559.7 1,466.7
1,160.9 994.7 912.9 853.6 801.9
INCOME COLLECTED ON BEHALF OF THE VICTORIAN GOVERNMENT 581.2 576.0 568.8 512.5
AND OTHER GOVERNMENT AGENCIES 633.7 67.9 52.5 34.9 34.1
Transport Accident Commission fees 78.1 42.6 41.9 33.1 27.4
Motor vehicle registration 42.8 65.7 71.2 58.5 53.8
Stamp Duty 72.8
Driver licences 3,458.0 3,283.4 3,108.6 2,896.4
Federal Interstate Road Transport Scheme registrations 3,785.4 27.9 27.4 27.8 39.1
Other 29.0
TOTAL INCOME
INCOME ADMINISTERED ON BEHALF OF THE VICTORIAN GOVERNMENT
64
AS AT 30 JUNE 2013 2012 2011 2010 2009 PART FIVE FINANCIAL MANAGEMENT
FINANCIAL POSITION $m $m $m $m $m
Total assets 45,372.8 45,136.6 42,393.6 41,906.7 37,715.9
Total liabilities 411.9 419.3 422.2 373.3
NET ASSETS 437.1
Contributed capital 44,960.9 44,717.3 41,956.5 41,484.5 37,342.6
Asset revaluation reserve 15,559.5 15,301.0 15,322.1 15,025.6 14,627.7
Accumulated surplus 13,271.9 13,300.2 11,017.6 11,067.1 7,594.4
NET WORTH 16,129.5 16,116.1 15,616.8 15,391.8 15,120.5
ASSETS AND LIABILITIES ADMINISTERED ON BEHALF OF 44,960.9 44,717.3 41,956.5 41,484.5 37,342.6
THE VICTORIAN GOVERNMENT
Total assets 0.0 0.0 0.0 0.0 59.7
Total liabilities 348.6 346.4 341.2 336.9 331.2
NET ASSETS (348.6) (346.4) (341.2) (336.9) (271.5)
Graph 1. Funding sources 2012-13 ($ million) Graph 2. Operating output expenditure
2012-13 ($ million)
15% 5% Victorian Government 10% 3% Asset Management
Federal Government 7% Infrastructure Depreciation
Regulatory and Other Revenue 32% Network Planning and Improvements
Transport Accident Commission 12% Road Safety
Better Roads Victoria Trust Registration and Licensing
22% 39% Other Services
19%
36%
Figure 3. Composition of funding sources ($ million)
1,400
1,200
1,000
800
600
400
200 State Government Funding # ANNUAL REPORT
Federal Government Funding 2012-13
0 Other Revenue
2008-09
2009-10 2010-11 2011-12 2012-13
#Includes funding from Better Roads Victoria Trust Account and Transport Accident Commission 65
PART SIX:
FINANCIAL
STATEMENTS 06
Comprehensive operating statement PART SIX FINANCIAL STATEMENTS 30 JUNE 2013
For the year ended 30 June 2013
NOTES 2013 2012
$’000 $’000
2
Continuing operations 3 1,152,659 1,522,273
Income from transactions 3 82,778 101,788
Victorian Government grants 3 107,848
Transport Accident Commission grants 106,566 118,000
Regulatory revenue 4 12,873 163,354
Assets received free of charge 4
Other revenue 150,052 2,013,263
Total income from transactions 1,504,928
Expenses from transactions (251,507) (250,808)
Employee benefits (509,931) (632,027)
Supplies and services (545,356) (489,688)
Depreciation
Grants and other transfers (69,347) (71,804)
Capital asset charge (49,800) (49,800)
Assets transferred to other entities (73,071) (27,513)
Total expenses from transactions (1,499,012) (1,521,640)
NET RESULT FROM TRANSACTIONS
(NET OPERATING BALANCE) 5,916 491,623
Other economic flows included in net result 4,579 16,576
Net gain/(loss) on non-financial assets 2,916 (8,735)
Other gain/(loss) from other economic flows 7,495 7,841
Total other economic flows included in net result 13,411 499,464
NET RESULT
- 2,355,711 ANNUAL REPORT
Other economic flows - Other comprehensive income (28,350) (73,178) 2012-13
Items that will not be reclassified to net result (28,350)
Revaluation gain to asset revaluation reserve (14,939) 2,282,533
Impairment loss to asset revaluation reserve 2,781,997
Total other economic flows -
Other comprehensive income
COMPREHENSIVE RESULT
The comprehensive operating statement should be read in conjunction with the
accompanying notes to the financial statements.
67
Balance sheet NOTES 2013 2012
$’000 $’000
As at 30 June 2013
5 45,296 43,400
Assets 6 346,684 392,325
Financial assets 435,725
Cash and cash equivalents 391,980
Receivables
Total financial assets 4,182 7,646
7 1,397 1,465
Non-financial assets 8 16,211 14,922
Prepayments 9 51,637 51,194
Inventories 10 21,581 23,964
Properties held for sale 11 17,108,158 17,134,380
Buildings and leasehold improvements 12 27,753,364 27,440,297
Plant and equipment 13 24,325 27,033
Land 44,700,901
Infrastructure assets 44,980,855 45,136,626
Intangible assets 45,372,835
Total non-financial assets
TOTAL ASSETS 14 171,668 224,914
15 207,447 158,812
Liabilities 35,587
Payables 32,821 419,313
Provisions 411,936 44,717,313
Prepaid revenue 44,960,899
TOTAL LIABILITIES
NET ASSETS 15,559,492 15,300,967
13,271,870 13,300,220
Equity 16,129,537 16,116,126
Contributed capital 44,960,899 44,717,313
Asset revaluation reserve
Accumulated surplus 20
NET WORTH 21
Contingent liabilities and contingent assets
Commitments for expenditure
The balance sheet should be read in conjunction with the accompanying
notes to the financial statements.
68
Statement of changes in equity PART SIX FINANCIAL STATEMENTS 30 JUNE 2013
For the year ended 30 June 2013
ASSET ACCUMULATED CONTRIBUTIONS TOTAL
REVALUATION
SURPLUS BY OWNER
SURPLUS
2013 2013 2013 2013 2013
$’000 $’000 $’000 $’000
Balance at 1 July 2012
13,300,220 16,116,126 15,300,967 44,717,313
Net result from Transactions for the Year - 5,916 - 5,916
7,495 -
Other comprehensive income for the year (28,350) (20,855)
Book value of State assets sold and - - (430) (430)
proceeds returned to the Victorian
Government - - 198,934 198,934
Capital appropriations - - 60,021 60,021
Assets transferred from other Victorian - - --
Government agencies 16,129,537 15,559,492 44,960,899
13,271,870
Assets transferred to other Victorian
Government agencies
Balance at 30 June 2013
ASSET ACCUMULATED CONTRIBUTIONS TOTAL
REVALUATION
SURPLUS BY OWNER 2012
SURPLUS $’000
2012 2012 2012 2012 41,956,446
$’000 $’000 $’000 491,623
Balance at 1 July 2011 2,290,374
11,017,687 15,616,662 15,322,097
Net result from Transactions for the Year - 491,623 - (407)
7,841 -
Other comprehensive income for the year 2,282,533 82,001
- (407) 1,514
Book value of State assets sold and -
proceeds returned to the Victorian - 82,001 (104,238)
Government - - 1,514 44,717,313
Capital appropriations - - (104,238)
16,116,126 15,300,967
Assets transferred from other Victorian -
Government agencies
13,300,220
Assets transferred to other Victorian
Government agencies
Balance at 30 June 2012
The statement of changes in equity should be read in conjunction with
the accompanying notes to the financial statements.
ANNUAL REPORT
2012-13
69
Cash flow statement NOTES 2013 2012
$’000 $’000
For the year ended 30 June 2013
1,195,757 1,467,823
Cash flows from operating activities 344,021 384,109
Receipts 38,277 37,602
Receipts from government grants 113,427 120,415
Receipts from other sources 1,387 1,457
Goods and Services Tax collected
Goods and Services Tax recovered from the Australian Taxation Office 1,692,869 2,011,406
Interest received
Total receipts (781,696) (930,400)
Payments (69,347) (71,803)
Payments to suppliers and employees
Payments of grants and other transfers (151,704) (158,016)
Goods and Services Tax paid on purchases
Payments of capital asset charge (49,800) (49,800)
Total payments
NET CASH FLOWS FROM OPERATING ACTIVITIES (1,052,547) (1,210,019)
Cash flows from investing activities 24 640,322 801,387
Payments for purchase of non-financial assets
Proceeds from sale of non-financial assets (859,875) (891,031)
NET CASH FLOWS USED IN INVESTING ACTIVITIES 23,114 6,866
Cash flows from financing activities (836,761) (884,165)
Proceeds from capital contributions by the Victorian Government
NET CASH FLOWS FROM FINANCING ACTIVITIES 198,934 82,001
NET INCREASE/ (DECREASE) IN CASH HELD 198,934 82,001
Cash at the beginning of the financial year
CASH HELD AT THE END OF THE FINANCIAL YEAR 2,495 (777)
3,688 4,465
The cash flow statement should be read in conjunction with the accompanying 5 6,183 3,688
notes to the financial statements.
70
Notes to the Financial (c) Scope and Presentation of Financial Statements PART SIX FINANCIAL STATEMENTS 30 JUNE 2013
Statements
(i) Comprehensive Operating Statement ANNUAL REPORT
For the Year Ended 30 June 2013 Income and expenses in the comprehensive operating 2012-13
Note 1 statement are classified according to whether or not
they arise from ‘transactions’ or ‘other economic
Summary of Significant Accounting Policies flows’. This classification is consistent with the whole
of government reporting format and is allowed under
(a) Statement of Compliance AASB 101 Presentation of Financial Statements.
The financial statements are general purpose financial
‘Transactions’ and ‘other economic flows’ are defined
statements which have been prepared on an accrual by the Australian System of Government Finance
basis in accordance with the Financial Management Statistics: Concepts, Sources and Methods 2005 and
Act 1994 and applicable Australian Accounting Amendments to Australian System of Government
Standards and Interpretations. The financial Finance Statistics, 2005.
statements comply with relevant Financial Reporting
Directions issued by the Victorian Department of ‘Transactions’ are those economic flows that are
Treasury and Finance, and relevant Standing Directions considered to arise as a result of policy decisions,
authorised by the Minister for Finance. In particular, usually interactions between two entities by mutual
they are presented in a manner consistent with the agreement. Transactions also include flows within
requirements of AASB 1049 Whole of Government an entity, such as depreciation where the owner
and General Government Sector Financial Reporting. is simultaneously acting as the owner of the
depreciating asset and as the consumer of the service
(b) Basis of Preparation provided by the asset. Transactions can be in kind or
The financial statements have been prepared on a where the final consideration is cash.
historical cost basis, except for the revaluation of ‘Other economic flows’ are changes arising from
certain non-financial assets and financial instruments. market remeasurements. They include:
Cost is based on the fair values of the consideration
given in exchange for assets. gains and losses from disposals
Accounting policies are selected and applied in a revaluations and impairments of non-financial
manner which ensures that the resulting financial physical and intangible assets and
information satisfies the concepts of relevance and
reliability, thereby ensuring that the substance of the fair value changes of financial instruments.
underlying transactions or other events is reported.
The net result is equivalent to profit or loss derived
In the application of Accounting Standards, Financial in accordance with Australian Accounting Standards.
Reporting Directions, and Standing Directions,
management is required to make judgements, (ii) Balance sheet
estimates and assumptions about carrying values Assets and liabilities are presented in liquidity order
of assets and liabilities that are not readily apparent
from other sources. The estimates and associated with assets aggregated into financial assets and
assumptions are based on historical experience non-financial assets.
and various other factors that are believed to be
reasonable under the circumstance, the results of Current and non current assets and liabilities
which form the basis of making the judgements. (non current being those assets or liabilities expected
Actual results may differ from these estimates. to be recovered or settled more than 12 months) are
disclosed in the notes, where relevant.
Estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to estimates are (iii) Cash flow statement
recognised in the period in which the estimate is Cash flows are classified according to whether or
revised if the revision effects only that period or in the
period of the revision and future periods if the revision not they arise from operating, investing, or financing
effects both current and future periods. activities. This classification is consistent with
requirements under AASB 107 Statement of
The accounting policies disclosed in the notes have Cash Flows.
been applied in preparing the financial statements
for the year ended 30 June 2013 and the comparative (iv) Statement of changes in equity
information presented for the year ended The statement of changes in equity presents
30 June 2012.
reconciliations of non owner and owner changes in
equity from opening balance at the beginning of the
reporting period to the closing balance at the end of
the reporting period. It also shows separately changes
due to amounts recognised in the ‘Comprehensive
result’ and amounts recognised in ‘Other economic
flows – other comprehensive income’ related to
‘Transactions with owner in its capacity as owner’.
71
(v) Rounding of Amounts The Corporation makes contributions to defined
All amounts disclosed in the financial statements have benefit superannuation schemes based on a fixed
percentage of current Corporation employee
been rounded to the nearest thousand dollars, unless members’ annual salary as actuarially determined by
otherwise stated. Figures in the statements may not the scheme. The Victorian Government’s Department
equate due to rounding. of Treasury and Finance centrally recognises the
defined benefit liability or surplus of the Corporation’s
(d) Income from Transactions employees in such schemes.
Income from transactions is recognised to the extent
Contributions made by the Corporation to
that it is probable that the economic benefits will flow accumulation superannuation schemes are in
to the Corporation and the income can be reliably accordance with the Commonwealth Superannuation
measured. The Corporation’s income is recognised Guarantee (Administration) Act 1992. Additional
as follows: contributions are made by the Corporation
when salary sacrifice arrangements are requested
(i) Government Grants by employees.
Government grants are recognised when the
Contributions made by the Corporation to employee
related outputs have been delivered and superannuation schemes are charged as an expense
expenditure is incurred. as the contributions are paid or become payable.
Contributions made to employee superannuation
(ii) Transport Accident Commission Grants schemes are detailed in Note 23 - ‘Superannuation
Transport Accident Commission grants are recognised Contributions’.
when the related expenditure is incurred. (ii) Supplies and Services
(iii) Regulatory Revenue Supplies and Services expenses are recognised as
Regulatory, licence fees, fines and penalties payable an expense in the reporting period in which they are
incurred. The carrying amounts of any inventories
to the Corporation in accordance with the Transport held for distribution are expensed when distributed.
Integration Act 2010, the Road Safety Act 1986, the
Chattel Securities Act 1987, the Road Management (iii) Depreciation
Act 2004 and related regulations are recognised when
received by the Corporation. Non-financial assets other than land, earthworks,
earth mound barriers, inventories, water rights
(iv) Assets received free of charge and properties held for resale are systematically
Assets received free of charge are recognised at their depreciated in order to write-off the cost of these
assets over their useful lives to the Corporation.
fair value at the time that the Corporation obtains Depreciable assets are depreciated from the date
control over the assets. of acquisition or, in respect of constructed assets,
from the time an asset is completed and held ready
(v) Other revenue for use. These assets are depreciated using the
Revenue in respect of services or works provided by straight-line method with due allowance for residual
values. Estimated remaining useful lives of depreciable
the Corporation is recognised at the time the service assets are reviewed on an annual basis to reflect
to which the revenue relates is provided or work is wear and tear from physical use and technical and
undertaken and the revenue is receivable. economic developments, and depreciation rates
are adjusted accordingly.
Rental revenue from the leasing of properties is
recognised on a straight line basis over the term It has been determined by experts in infrastructure
of the lease. valuations that earthworks and earth mound barriers
do not have a limited useful life to the Corporation,
Interest revenue is recognised on a time proportionate and therefore these assets are not depreciated.
basis that takes into account the effective yield of the
financial asset.
(e) Expenses From Transactions
(i) Employee Benefits
Employee benefits include salaries, wages,
accrued leave entitlements, termination benefits,
superannuation entitlements and payroll tax. These
benefits are recognised as an expense in the reporting
period in which they are incurred.
The Corporation’s employees are covered for
superannuation benefits as members of defined
benefit and accumulation superannuation schemes.
72
The expected useful lives of depreciable assets for the USEFUL LIFE PART SIX FINANCIAL STATEMENTS 30 JUNE 2013
current and prior year are as follows:
60 years ANNUAL REPORT
ASSET CLASS 20 and 50 years 2012-13
Infrastructure Assets 90 years
7 to 25 years
Road pavement
40 years
Sound barriers 40 years
Bridges 4 to 10 years
5 to 13 years
Traffic control systems
5 years
Buildings 4 to 5 years
Operational 10 years
40 years
Improvements on land acquired for roads
3 to 14 years
Plant and Equipment
Any gain or loss from the disposal of surplus assets
Computers and computer systems is recognised at the date that control of the asset is
passed to the buyer and is determined after deducting
Plant and Technical equipment from the proceeds the carrying value of the asset at
that time.
Office machines and equipment
(ii) Other Gains/(Losses) from Other Economic
Audio visual and photographic Flows
Furniture, fittings and fit outs Other gains/(losses) from other economic flows
include the revaluation of the present value of the
Weighbridges long service leave liability due to changes in the
bond interest rates (Refer to Note 1(k) Provisions (i)
Intangible Assets Employee Benefits), and foreign currency translation
differences (Refer to Note 1(u) Foreign Currency).
Software
(g) Other Economic Flows - Other Comprehensive
Leasehold property improvements are depreciated Income
over the unexpired period of leases or the useful lives
of the improvements, whichever is the shorter. Other non-owner changes in equity include changes
in the asset revaluation reserve resulting from the
(iv) Grants and Other Transfers revaluation of non-current physical assets including
Grants and other transfers to municipalities are impairment losses (Refer to Note 1 (j) Non-Financial
Assets (v) Valuations).
recognised as an expense in the reporting period
in which they are paid or payable. (h) Cash and Cash Equivalent Assets
Cash assets include cash in bank and on hand.
(v) Capital Asset Charge
A capital asset charge is imposed by the Victorian Cash equivalents include short term deposits with
an original maturity of three months or less held with
Government’s Department of Treasury and Finance Treasury Corporation Victoria.
which represents the opportunity cost, as determined
by the Department, of capital invested in the non- 73
current physical assets used in the provision of the
Corporation’s services. The charge is calculated on
the carrying amount of non-current physical assets
other than infrastructure assets.
(vi) Assets transferred to other entities
Assets provided free of charge are recognised at their
fair value at the time of transfer from the Corporation.
(f) Other Economic Flows Included in Net Result
Other economic flows measure the change in
volume of value of assets or liabilities that do not
result from transactions.
(i) Net Gain/(Loss) on Non-Financial Assets
Net gain/(loss) on non-financial assets includes
realised gains and losses from the disposals of surplus
assets, asset register adjustments and impairment of
physical assets.
The Corporation holds cash and cash equivalent Properties held for sale, which comprise
collections on behalf of the Victorian Government and properties identified as surplus to the Corporation’s
Government agencies. The cash balances held by the requirements. These properties are in a state ready
Corporation on behalf of the Victorian Government for sale, are being actively marketed for sale and
and Government agencies are not available for use the sale is expected to be completed within
by the Corporation. The Corporation also holds cash twelve months.
funds on behalf of other Governments and public
entities. The cash balances held by the Corporation (iii) Acquisition of Assets
are applied in accordance with the funding contracts. The cost method of accounting is used for all
(i) Receivables acquisitions of assets. Cost is measured as the fair
value of the assets given up or liabilities undertaken
Receivables consist predominantly of revenue at the date of acquisition, plus incidental costs
from Governments and Government agencies. directly attributable to the acquisition.
This revenue will be realised when required to
fund related expenditure commitments. Assets acquired at no cost, or for nominal
consideration, are initially recognised at their fair
Debtors are recognised as amounts receivable as they value at the date of acquisition.
are due for settlement within 30 days from the date of
recognition. The collectability of debtors is reviewed (iv) Constructed Assets
on an ongoing basis. Debts which are known to The cost of non-financial assets constructed by the
be uncollectable are written off and an allowance
for doubtful debts is raised where there is objective Corporation includes the cost of all materials, direct
evidence that the debts may not be collected. labour and other costs directly attributable to the
construction of the asset.
(j) Non-Financial Assets
(v) Valuations
(i) Declared Road Network Subsequent to the initial recognition of assets,
The Corporation is responsible in accordance with the all classes of non-financial assets, other than
Transport Integration Act 2010 for the development prepayments and inventories are valued on a fair value
and management of Victoria’s declared road network. basis in accordance with Financial Reporting Direction
As the Corporation has control over the declared 103D – ‘Non-current Physical Assets’. Fair value is
road network and accepts all risks associated with determined as the market value, or in the absence
the network, the value of the network has been of a market value, depreciated replacement cost.
recognised in the Balance Sheet.
Infrastructure assets are valued based on the current
(ii) Asset Classifications replacement cost of equivalent assets that are capable
of providing the same level of service as the existing
Non-financial assets are classified in the following assets and written-down to take account of expired
categories: service life.
Infrastructure assets which encompass Victoria’s Land, other than land under declared roads, and
declared road network and include road pavements, buildings are valued based on amounts for which the
sound barriers, earthworks, bridges and traffic assets could be exchanged between willing parties in
control systems an arms length transaction. The valuation is based on
current prices in an active market for similar properties
Land assets which comprise land used for in the same location and condition and with regard
operations, land acquired for future public to any known restrictions in use.
roads, land under declared roads and land
in commercial use Land acquired in relation to the construction of
future public roads is measured initially at cost and
Buildings and leasehold improvements which subsequently at fair value.
comprise offices, residential properties, storage
depots and patrol garages on freehold land, Land under declared roads acquired prior to 1 July
buildings on land acquired for future public roads, 2008 is measured at fair value. Land under declared
and leasehold buildings and improvements on roads acquired on or after 1 July 2008 is measured
Crown and leased land initially at cost of acquisition and subsequently at
fair value.
Plant and equipment which comprise office fit outs,
furnishings and fittings, computers and other The fair value of land under declared roads is based
technical equipment on average rateable value per hectare within each
municipal site discounted to reflect the value prior to
Intangible assets which comprise purchased and subdivision, the discount factors range from 15% for
developed computer software and water rights rural land under freeways to 80% for residential land
under main roads.
Inventories which comprise stockpiles of
construction and maintenance materials, saleable
items and consumable stores held for either
distribution in the ordinary course of business
operations or for sale
74
Plant and equipment is disclosed at fair value. Fair (vi) Impairment of Assets PART SIX FINANCIAL STATEMENTS 30 JUNE 2013
value is determined as the original acquisition costs
less any accumulated depreciation and impairment All assets other than inventories and properties held
losses. Intangible assets are valued on a cost basis. for sale are assessed annually for any indications
Cost is determined as the original acquisition cost less of impairment. Should there be an indication of
any accumulated amortisation and impairment losses. impairment; the carrying value of an asset is tested
to determine whether its carrying value exceeds its
Works in progress are valued at construction cost. recoverable amount. The recoverable amount is
measured as the higher of depreciated replacement
Inventories of stockpile materials, saleable items and cost and fair value less costs to sell.
consumable stores are valued on a cost basis. Cost is
determined as the original acquisition cost. For assets where their carrying value exceeds their
recoverable amount, the carrying value is reduced to
Properties held for sale are measured at the lower of the recoverable amount and the impairment loss is
carrying amount or fair value less costs to sell. written off as an expense, except that, to the extent
that a credit balance exists in the asset revaluation
The Corporation undertakes formal revaluations of reserve applicable to the same class of assets, the
the fair value of infrastructure, land and buildings impairment loss is debited directly to the asset
assets every five years or where exceptionally material revaluation reserve.
movements are considered to have occurred. During
the intervening years, the carrying values of these (k) Payables
assets are assessed annually to determine if their
carrying values remain consistent with their fair value. Creditors and accruals represent liabilities for goods
Should the carrying value of these assets differ from and services provided to the Corporation prior to the
their fair value to the extent that it is material, end of the financial year and which are unpaid. The
a managerial revaluation will be undertaken. amounts are unsecured and are usually paid within
30 days of recognition.
Infrastructure assets were independently valued by
external engineers as at 30 June 2010. A managerial Terms and conditions of amounts payable to the
revaluation of infrastructure assets, based on Victorian Government, Government agencies and
indexation, considering the present condition other entities vary according to particular agreements.
and reviewing the remaining useful lives was
undertaken by the Corporation as at 30 June 2012 (l) Provisions
after the Corporation determined that a material
movement in values had occurred since the last (i) Employee Benefits
independent valuation.
Provision has been made for the Corporation’s
Land, buildings, leasehold improvements and assets obligations for employee annual leave, long service
in commercial use were independently valued by the leave, performance and other entitlements arising
Valuer-General Victoria as at 30 June 2010. from services rendered by employees to balance date.
Provision has not been made for non-vesting sick
For assets which are valued at their fair value, leave as the anticipated pattern of future sick leave
revaluation increments and decrements are taken indicates that accumulated non-vesting leave
accounted for as follows: will not be utilised.
revaluation increments are credited directly to the Annual leave, performance and other entitlements
asset revaluation reserve, except that, to the extent
that an increment reverses a revaluation decrement Liabilities for annual leave, performance and other
in respect of that class of asset previously recognised entitlements are expected to be settled within 12 months
as an expense, the increment is recognised of the reporting period and are disclosed as a current
immediately as revenue liability and measured at their nominal values.
revaluation decrements are recognised immediately
as an expense except that, to the extent that a
credit balance exists in the asset revaluation reserve
applicable to the same class of assets, a decrement
is debited directly to the asset revaluation reserve
revaluation increments and decrements are offset
against one another within a class of non-current
physical assets.
ANNUAL REPORT
2012-13
75
Long service leave (iv) Compensation Payable to Property Owners
The liability for unconditional long service leave In circumstances where the Corporation has caused
is disclosed as a current liability on the basis that financial loss to property owners due to overlays,
employees have the unconditional right to the developments or other works, the Corporation may
entitlement within 12 months. compensate the property owner for any loss. Where
agreement has not been reached at balance date,
The liability for conditional long service leave is the compensation is recognised as a liability, based
disclosed as a non current liability on the basis that wherever practicable, on an independent valuation.
the entitlement is conditional upon employees
completing additional years of service. (m) Leases
The liability for long service leave to be settled after (i) Corporation as lessor
12 months has been calculated as the present value Rental income from operating leases is recognised on
of estimated future cash payments to be made by
the Corporation in respect of services provided by a straight line basis over the term of the relevant lease.
employees to balance date. In determining the liability,
consideration has been given to estimated future (ii) Corporation as lessee
salary levels, experience of employee departures and Operating lease payments are recognised as an
periods of service. Estimated future payments have
been discounted using interest rates attached to expense on a straight line basis over the term of the
Commonwealth Government guaranteed securities relevant lease.
with terms to maturity that match, as closely as
possible, the estimated future cash payments. (n) Contributed Capital
Appropriations from the Victorian Government for
Any gain or loss following revaluation of the present
value of the long service leave liability arising due to additions to net assets and other transfers that are in
changes in bond interest rates is recognised as a gain the nature of contributions have been designated as
or loss from other economic flows included in the contributed capital.
net result.
Proceeds from the sale of surplus operational
On costs properties which were originally funded by the
Employee benefits on-costs (payroll tax, workers Victorian Government, are paid into the Government’s
Consolidated Fund. An amount equivalent to the book
compensation and superannuation) are recognised value of such properties is recognised as a reduction
separately from the provisions for employee in contributed capital.
benefits.
(o) Financial Instruments
Employee benefits on-costs liability expected to Financial instruments consist of financial assets,
settle within 12 months is measured at nominal value
and the liability expected to settle after 12 months is receivables and payables, and are valued on a fair
measured as the present value of estimated future value basis. Fair value is determined as follows:
cash payments to be made by the Corporation.
fair value of financial instruments with standard
(ii) Contractor Retentions and Provisions terms and conditions, and traded in active liquid
Contractor retentions represent contractor payments markets, is determined with reference to quoted
market prices
withheld as securities by the Corporation and
contractor provisions represent claims made by fair value of other financial instruments is
contractors, pursuant to contractual arrangements determined in accordance with generally
entered into by the Corporation. accepted pricing models based on discounted
cash flow analysis
(iii) Property Acquisition Liabilities
In circumstances where the Corporation has fair value of compensation payments recoverable
is based on historic cost.
issued a notice of compulsory acquisition or has
taken possession of a property for the purpose of The carrying amount of financial instruments excludes
commencing roadworks and final settlement has statutory amounts owed by or to the Corporation.
not been achieved at balance date, the acquisition is
recognised as a liability based, wherever practicable, (p) Contingent Assets and Contingent Liabilities
on an independent valuation. Contingent assets and contingent liabilities are not
recognised in the Balance Sheet, but are disclosed
by way of a note to the financial statements and if
quantifiable, are measured at nominal value.
76
(q) Commitments (ii) Private Provision of Public Infrastructure PART SIX FINANCIAL STATEMENTS 30 JUNE 2013
Melbourne CityLink
Commitments for the construction of infrastructure
assets, the acquisition of plant and equipment The Corporation manages the statutory functions and
arising from non-cancellable contracts and non- powers of the State under the Melbourne CityLink
cancellable lease contracts are not recognised in the Act 1995. These functions and powers include the
Balance Sheet, but are disclosed by way of a note to administration of the contractual arrangements,
the financial statements and are measured at their revenue and assets of the CityLink Project.
nominal value.
The State and CityLink Melbourne Limited (CML)
(r) Transactions Administered on Behalf of the amongst others, entered into the Melbourne CityLink
Victorian Government Concession Deed on 30 October 1995. Under the
terms of the Concession Deed, CML is responsible
(i) Income Collections for the construction, financing and operation of
the CityLink road network during the concession
The Corporation administers the collection of certain period that is currently expected to expire on
fees, licences and duties on behalf of the Victorian 14 January 2034.
Government in accordance with the Road Safety Act
1986, the Motor Vehicles Duties Act 2000, and on The Concession Deed requires CML to pay to the
behalf of certain government agencies. These income State specified concession fees at specified intervals
collections are not recognised as the Corporation’s during the concession period. In accordance with the
income. Expenses incurred in the collection of Concession Deed, CML has exercised an option to
this income are recognised as the Corporation’s meet its obligations to pay concession fees by way
expense. Expenses are funded from Victorian of issuing concession notes. These notes are non-
Government Grants and fees paid by the Transport interest bearing promissory notes payable by CML
Accident Commission which are recognised in the at the end of the concession period or earlier in the
‘Comprehensive Operating Statement’. event of CML achieving certain financial profitability
levels and cash flows.
Income collected, but not remitted to the Victorian
Government and government agencies at balance The State, CML and Transurban Infrastructure
date are recognised as an asset and a corresponding Management Limited (TIML) entered into the M1
liability in the Balance Sheet. Cash flows relating to Corridor Deed of Assignment (Deed of Assignment)
the income collected are not recognised in the on 25 July 2006. Under the terms of the Deed of
Cash Flow Statement. Assignment, all concession notes held by, and due
to be issued to the State in accordance with the
Transactions relating to the income collections are Concession Deed, have been assigned to TIML for
disclosed in Note 25-‘Transactions administered on a defined payment stream over a four year period
behalf of the Victorian Government’ and Note 26- ending 30 June 2010.
‘Collections on behalf of Government agencies’.
The concession notes and related revenues are not
recognised as the Corporation’s revenue, assets and
liabilities. Details of the concession notes and related
revenues are disclosed in Note 25-‘Transactions
administered on behalf of the Victorian Government’.
The value of concession notes due to be received
by the State in accordance with the Concession
Deed, has been disclosed at the present value of
concession notes to be issued in future periods by
CML. The present value of the concession notes has
been calculated based on an interest rate implied in
the estimated concession note redemption profile
included in the Deed of Assignment. The present
value of the concession notes is disclosed as
deferred CityLink revenue.
ANNUAL REPORT
2012-13
77
The Concession Deed provides for CML to lease (s) Goods and Services Tax
certain land and road infrastructure from the State
during the concession period. At the end of this Income, expenses and assets are recognised net
period, the assets are to be returned together with of associated Goods and Services Tax, unless the
the transfer of the CityLink road to the State. There tax incurred is not recoverable from the Australian
is, currently, no authoritative accounting guidance Taxation Office. In this case it is recognised as part
applicable to the recognition and measurement of of the cost of acquisition of the asset or as part of
the State’s right to receive the CityLink road from CML the expense. The net amount of Goods and Services
at the end of the concession period. In the absence Tax recoverable from, or payable to, the Australian
of such guidance, there has been no change to the Taxation Office is included as part of receivables or
existing policy and the right has not been recognised payables in the ‘Balance Sheet’. The Goods
as an administrative asset in the financial statements. and Services Tax component of a receipt or
payment is recognised on a gross basis in the
EastLink ‘Cash Flow Statement’.
The Corporation manages the statutory functions (t) Functional and Presentation Currency
and powers of the State under the EastLink Project
Act 2004. These functions and powers include The functional currency of the Corporation is the
the management of agreements concerning the Australian Dollar, which has also been identified as
development, delivery and operation of the EastLink the presentation currency of the Corporation.
Project.
(u) Foreign Currency
The State and ConnectEast Pty Ltd (ConnectEast),
amongst others, entered into the EastLink All foreign currency transactions during the financial
Concession Deed on 14 October 2004. Under year are brought to account using the exchange
the terms of the Concession Deed, ConnectEast rate in effect at the date of the transaction. Foreign
is responsible for the construction, financing and monetary items existing at the end of the reporting
operation of the EastLink Project. ConnectEast has period are translated at the closing rate at the date
a right to operate the EastLink road network for the of the end of the reporting period.
duration of the concession period which is due
to expire on 30 November 2043. (v) New Accounting Standards and Interpretations
The Concession Deed provides for ConnectEast As at 30 June 2013, the following new accounting
to lease certain land from the State during the standards and interpretations have been issued
concession period. At the end of this period, the land however, their adoption was not mandatory for
is to be returned together with the transfer of the the financial year ending 30 June 2013. The
EastLink road network to the State. There is, currently, Corporation has not, and does not intend to
no authoritative accounting guidance applicable adopt these standards early.
to the recognition and measurement of the State’s
right to receive the EastLink road network from
ConnectEast at the end of the service concession
period. In the absence of such guidance, there has
been no change to the existing policy and the right
has not been recognised as an administrative asset
in the financial statements.
78
STANDARD/ SUMMARY APPLICABLE FOR IMPACT ON
INTERPRETATION ANNUAL REPORTING CORPORATION’S
PERIODS BEGINNING ON FINANCIAL STATEMENTS
AASB 9 Financial instruments This Standard simplifies 1 Jan 2015 No impact on the PART SIX FINANCIAL STATEMENTS 30 JUNE 2013
requirements for the Corporation’s reporting.
classification and
measurement of financial
assets resulting from Phase
1 of the IASB’s project to
replace IAS 39 Financial
Instruments: Recognition
and Measurement (AASB
139 Financial Instruments:
Recognition and
Measurement).
AASB 13 Fair Value This Standard outlines the 1 Jan 2013 Increased disclosure
Measurement requirements for measuring may be required in the
the fair value of assets and Corporation’s financial
liabilities and replaces the statements.
existing fair value definition
and guidance in other
Australian accounting
standards. AASB 13 includes
a ‘fair value hierarchy’
which ranks the valuation
technique inputs into three
levels using unadjusted
quoted prices in active
markets for identical assets
or liabilities; other observable
inputs; and unobservable
inputs.
AASB 1053 Application This Standard establishes a 1 July 2013 The Victorian Government
of Tiers of Australian differential financial reporting is currently considering
Accounting Standards framework consisting the impacts of Reduced
of two tiers of reporting Disclosure Requirements
requirements for preparing (RDRs) for certain public
general purpose financial sector entities, and has
statements. not decided if RDRs will
be implemented in the
Victorian public sector.
ANNUAL REPORT
2012-13
79
Note 2 2013 2012
$’000 $’000
Income from transactions
56,249 60,984
Other revenue 36,228 34,893
External works
Transport Accident Commission premium collection commission 4,950 4,828
Victorian Government agency commission 13,473 11,263
Rental revenue 37,765 49,929
Recoveries 1,387
Interest 150,052 1,457
Total other revenue 163,354
Note 3 2013 2012
$’000 $’000
Expenses from transactions
208,236 223,453
Employee benefits 26,758 27,030
Salaries and related on-costs 16,513 325
Leave entitlements
Termination benefits 251,507 250,808
Total employee benefits
368,705 456,429
Supplies and services 97,867 120,110
Payment to contractors 21,560 25,909
Management and operating 206
Plant hire 21,593 (108)
Bad and doubtful debts 29,687
Services alterations 509,931 632,027
Total supplies and services
407,528 366,536
Depreciation 86,160 76,193
Road pavements 26,954 24,016
Bridges 4,584 4,540
Traffic signal control systems 5,325 7,481
Plant and equipment 13,430 9,589
Intangible assets 1,375 1,333
Sound barriers
Buildings and leasehold improvements 545,356 489,688
Total depreciation
80
Note 4 2013 2012 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013
$’000 $’000
Other economic flows included in net result
23,114 34,028
Net gain/(loss) on non-financial assets (19,517) (24,066)
Proceeds from disposal of surplus non-financial assets
Written-down value of disposed non-financial assets 1,297 7,005
Assets register adjustments (315) (391)
Impairment of assets 4,579 16,576
Total net gain/(loss) on non-financial assets
2,903 (8,731)
Other gains/(losses) from other economic flows 13 (4)
Gain/(loss) on revaluation of provision for employee benefits
Gain/(loss) on revaluation of foreign currency 2,916 (8,735)
Total other gains/(losses) from other economic flows 7,495 7,841
TOTAL OTHER ECONOMIC FLOWS INCLUDED IN NET RESULT
2013 2012
Note 5 $’000 $’000
Cash and cash equivalents 136 133
6,047 3,555
Cash relating to operating activities 6,183 3,688
Cash on hand
Cash at bank 34,613 33,712
Total cash relating to operating activities 4,500 6,000
39,113 39,712
Cash and cash equivalent collections on behalf of the Victorian 45,296 43,400
Government, government agencies and other entities
Cash at bank
Fixed deposits
Total cash and cash equivalent collections on behalf of the
Victorian Government, government agencies and other entities
TOTAL CASH AND CASH EQUIVALENTS
ANNUAL REPORT
2012-13
81
Note 6 2013 2012
$’000 $’000
Receivables
16,963 16,790
Current receivables 11,982 17,296
Contractual
Debtors (543) (538)
Other receivables 28,402 33,548
Allowance for doubtful debts
296,404 339,294
Statutory 7,467 11,894
Amounts owing from the Victorian Government
Goods and Services Tax input tax credit recoverable 303,871 351,188
332,273 384,736
Total current receivables
12,637 7,427
Non-current receivables 1,612 -
Contractual 162
Other receivables 162
Loans to third parties 14,411 7,589
Interest free loans 346,684 392,325
Total non-current receivables
TOTAL RECEIVABLES 2013 2012
$’000 $’000
Movement in the allowance for doubtful debts
Balance at beginning of the year (538) (890)
Amounts written off during the year 201 244
Decrease/(increase) in allowance recognised in the net result 108
Balance at the end of the year (206)
(543) (538)
82
Note 7 2013 2012 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013
$’000 $’000
Inventories
1,092 1,009
Current inventories 305 456
Stockpile materials
Saleable items and consumable stores 1,397 1,465
TOTAL INVENTORIES
2013 2012
Note 8 $’000 $’000
Properties held for sale 16,211 14,922
16,211 14,922
Carrying amount
At independent valuation 2013 2012
TOTAL PROPERTIES HELD FOR SALE $’000 $’000
Reconciliation 14,922 23,473
Carrying amount at the beginning of the year 20,796 12,968
Transfers from land
Transfers from/(to) buildings (29) 401
Disposals (19,478) (21,920)
Carrying amount at the end of the year 16,211 14,922
ANNUAL REPORT
2012-13
83
Note 9 2013 2012
$’000 $’000
Buildings and leasehold improvements
10,628 10,784
Carrying amount (746) (539)
Buildings operational 9,882
At independent valuation 10,245
Accumulated depreciation 22,327
2,209 20,548
Buildings on land acquired for future public roads (1,668) 2,077
At independent valuation 22,868 (1,072)
At cost
Accumulated depreciation 20,371 21,553
(1,484)
Leasehold improvements 18,887 20,371
At independent valuation 51,637 (975)
Accumulated depreciation
19,396
TOTAL BUILDINGS AND LEASEHOLD IMPROVEMENTS 51,194
84
Note 9
Buildings and leasehold improvements (continued)
BUILDINGS BUILDINGS LEASEHOLD TOTAL PART SIX FINANCIAL STATEMENTS 30 JUNE 2013
OPERATIONAL ON LAND IMPROVEMENTS
2013
2013 ACQUIRED FOR 2013 $’000
$’000 FUTURE PUBLIC $’000
51,194
ROADS 2,209
2013 -
(156)
$’000 (327)
Reconciliation 10,245 21,553 19,396 62
Carrying amount at the beginning of the year - 2,209 - 29
Acquisitions - - (1,374)
Disposals - 51,637
Book value of State assets sold and proceeds (156) -
returned to the Victorian Government - TOTAL
Buildings incorporated into declared roads - -
Asset register adjustments 62 (327) - 2012
Transfers from property held for sale - - $’000
Depreciation expense - (509)
Carrying amount at the end of the year (269) 29 18,887 51,034
9,882 (596) 2,077
22,868 (182)
(401)
BUILDINGS BUILDINGS LEASEHOLD
OPERATIONAL ON LAND IMPROVEMENTS (1,334)
51,194
2012 ACQUIRED FOR 2012
$’000 FUTURE PUBLIC $’000
ROADS
2012
$’000
Reconciliation 10,690 20,439 19,905
Carrying amount at the beginning of the year - 2,077 -
Acquisitions
(182) - -
Book value of State assets sold and proceeds
returned to the Victorian Government 10 (411) -
(273) (552) (509)
Transfers from/(to) property held for sale 10,245 21,553 19,396
Depreciation expense
Carrying amount at the end of the year
ANNUAL REPORT
2012-13
85
Note 10 2013 2012
$’000 $’000
Plant and equipment
22,910 23,879
Carrying amount (12,396) (12,220)
Computers and other technical equipment
At fair value (1,437) (1,339)
Accumulated depreciation 9,077 10,320
Accumulated impairment
34,754 33,749
Office furniture and fittings (22,250) (20,105)
At fair value 12,504 13,644
Accumulated depreciation 23,964
21,581
TOTAL PLANT AND EQUIPMENT 2012
2013 $’000
Reconciliation $’000
Carrying amount at the beginning of the year 18,918
Acquisitions 23,964 10,046
Disposals 2,525
Depreciation expense (9) (69)
Impairment expense (4,540)
Carrying amount at the end of the year (4,584)
(315) (391)
23,964
21,581
86
Note 11 2013 2012 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013
$’000 $’000
Land
25,892 26,386
Carrying amount 25,892 26,386
Land for operations
At independent valuation 1,146,535 1,194,415
15,896 28,288
Land acquired for future public roads
At independent valuation 1,162,431 1,222,703
At cost
15,859,007 15,843,814
Land under declared roads 33,372 14,021
At independent valuation
At fair value 15,892,379 15,857,835
Land in commercial use 27,456 27,456
At independent valuation 27,456 27,456
17,108,158 17,134,380
TOTAL LAND
ANNUAL REPORT
2012-13
87
Note 11 LAND FOR LAND LAND UNDER LAND IN TOTAL
OPERATIONS ACQUIRED FOR DECLARED COMMERCIAL
Land (continued) FUTURE PUBLIC ROADS 2013
2013 USE $’000
Reconciliation $’000 ROADS 2013
Carrying amount at the beginning of the year $’000 2013 17,134,380
Acquisitions 2013 $’000 15,896
Assets transferred from/(to) other entities (4,751)
Book value of State assets sold and proceeds $’000 (274)
returned to the Victorian Government (717)
Asset register adjustments 26,386 1,222,703 15,857,835 27,456 -
Transfers from/(to) land under declared roads - 15,896 - -
Transfers to properties held for sale - (5,923) - (20,796)
Impairment loss to asset revaluation reserve 1,172 (15,580)
Carrying amount at the end of the year (274) - - 17,108,158
-
(220) (497) -
- (33,372) - -
- (20,796) 33,372 -
- (15,580) -
1,162,431 - 27,456
25,892 -
15,892,379
LAND FOR LAND LAND UNDER LAND IN TOTAL
OPERATIONS ACQUIRED FOR DECLARED COMMERCIAL
FUTURE PUBLIC ROADS 2012
2012 USE $’000
$’000 ROADS 2012
$’000 2012
2012 $’000
$’000
Reconciliation 26,561 1,221,698 15,844,691 27,456 17,120,406
Carrying amount at the beginning of the year - 28,288 - - 28,288
- 4 - - 4
Acquisitions
Assets transferred from other entities (225) - - - (225)
Book value of State assets sold and proceeds
returned to the Victorian Government - (248) - - (248)
Asset register adjustments - (14,021) 14,021 - -
Transfers from/(to) land under declared roads 50 (13,018) -
Transfers from/(to) properties held for sale - (12,968)
- -
Assets transferred to Victorian Government (877) - (877)
agencies as contributed capital 26,386 1,222,703
15,857,835 27,456 17,134,380
Carrying amount at the end of the year
88
Note 12 2013 2012 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013
$’000 $’000
Infrastructure assets
23,535,387 23,569,375
Carrying amount 1,281,817 828,002
Road pavement
At indexed valuation (11,750,373) (11,357,226)
At cost (131,764) (120,583)
Accumulated depreciation
Accumulated impairment 12,935,067 12,919,568
Earthworks 7,046,454 7,073,398
At indexed valuation 592,313 206,042
At cost
7,638,767 7,279,440
Sound barriers
At indexed valuation 280,338 280,338
At cost 251,150 78,274
Accumulated depreciation (105,566)
425,922 (92,136)
Bridges 266,476
At indexed valuation 6,571,602
At cost 1,553,502 6,569,827
Accumulated depreciation (2,675,537) 1,103,592
Accumulated impairment (2,588,720)
(3,292)
Traffic signal control systems 5,446,275 (1,703)
At indexed valuation 5,082,996
At cost 617,328
Accumulated depreciation 290,608 627,271
(517,928) 242,199
Work in progress 390,008 (505,913)
At cost 363,557
917,325
TOTAL INFRASTRUCTURE ASSETS 917,325 1,528,260
27,753,364 1,528,260
27,440,297
ANNUAL REPORT
2012-13
89
Note 12
Infrastructure assets (continued)
ROAD EARTHWORKS SOUND BRIDGES TRAFFIC WORK IN TOTAL
SIGNAL PROGRESS
PAVEMENTS BARRIERS CONTROL 2013
SYSTEMS $’000
2013 2013 2013 2013 2013 2013
$’000 $’000 $’000 $’000 $’000 $’000
Reconciliation 12,919,568 7,279,440 266,476 5,082,996 363,557 1,528,260 27,440,297
Carrying amount at the (34,275) (30,962) - (397) (222) - (65,856)
beginning of the year
6,870 3,540 - - - - 10,410
Assets transferred to other - -
entities - - - (29) - (29)
(407,528) - (13,430) (86,160) (26,955) - (534,073)
Assets transferred from - 848,538
other entities 83 - 252 4,622 - 853,412
426 386,666 - 1,039 404 1,952
Disposals 408,507 (1,459,473)
172,876 442,793 48,631 -
Depreciation expense
52,680 - - 7,341 - - 60,021
Construction expenditure
(11,181) - - (1,589) - - (12,770)
Asset register adjustments 12,935,067 7,638,767 425,922 5,446,275 390,008 917,325 27,753,364
Capitalised work in
progress
Assets transferred from
Victorian Government
agencies as contributed
capital
Impairment loss to asset
revaluation reserve
Carrying amount at the
end of the year
90
Note 12
Infrastructure assets (continued)
ROAD EARTHWORKS SOUND BRIDGES TRAFFIC WORK IN TOTAL
PAVEMENTS BARRIERS SIGNAL PROGRESS
CONTROL
SYSTEMS PART SIX FINANCIAL STATEMENTS 30 JUNE 2013
2012 2012 2012 2012 2012 2012 2012
$’000 $’000 $’000 $’000 $’000 $’000 $’000
Reconciliation 11,971,370 6,542,622 219,422 4,507,482 337,344 1,188,409 24,766,649
Carrying amount at the (16,687) (10,574)
beginning of the year - (55) (197) - (27,513)
33,955 22,482
Assets transferred to - - - 61,560 - - 117,997
other entities -
(366,534) - (723) (403) (951) (2,077)
Assets transferred from (9,589) (76,193) (24,016) - (476,332)
other entities
Disposals
Depreciation expense
Construction expenditure - - - 6,763 2,405 864,466 873,634
Asset register 1,027 755 - 5,235 236 - 7,253
adjustments 163,266 26,564 34,457 169,035 26,982 (420,304) -
Capitalised work in - - -- - (103,360) (103,360)
progress
- - - - 1,514 - 1,514
Assets transferred to (74,487)
Victorian Government 1,207,658 1,687 - (378) - - (73,178)
agencies as contributed 695,904 22,186 410,270 19,692 - 2,355,710
capital
Assets transferred from
Victorian Government
agencies as contributed
capital
Impairment loss to asset
revaluation reserve
Revaluation increment
Carrying amount at the 12,919,568 7,279,440 266,476 5,082,996 363,557 1,528,260 27,440,297
end of the year
ANNUAL REPORT
2012-13
91
Note 13 2013 2012
$’000 $’000
Intangible assets
86,636 84,022
Carrying amount (63,193) (57,868)
Software 23,443 26,154
At cost
Accumulated amortisation 882 879
24,325 27,033
Water rights
At fair value 2013 2012
TOTAL INTANGIBLE ASSETS $’000 $’000
Reconciliation 27,033 30,019
Carrying amount at the beginning of the year 2,617 4,495
Acquisitions (7,481)
Amortisation expense (5,325)
Carrying amount at the end of the year 24,325 27,033
92
Note 14 2013 2012 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013
$’000 $’000
Payables
131,940 184,860
Current 22,932 24,642
Contractual 154,872
Creditors and accruals 209,502
Victorian Government, government agencies and other entities 16,796
16,796 15,412
Statutory 171,668 15,412
Victorian Government, government agencies and other entities 224,914
171,668
Total current payables 171,668 224,914
224,914
Aggregate carrying amount of payables
Current
TOTAL PAYABLES
ANNUAL REPORT
2012-13
93
Note 15 2013 2012
$’000 $’000
Provisions
17,535 18,904
Current
Employee benefits annual leave 4,913 5,428
Unconditional and expected to be settled within 12 months 45,874 51,955
Employee benefits long service leave
Unconditional and expected to be settled within 12 months 3,640 3,678
Unconditional and expected to be settled after 12 months 7,662 8,065
Provisions related to employee benefit on-costs 3,674 2,489
Unconditional and expected to be settled within 12 months 18,146 15,569
Unconditional and expected to be settled after 12 months 53,709 37,131
Performance and other entitlements 41,148 4,761
Contractor retentions and provisions 196,301 147,980
Property acquisition liabilities
Compensation payable to property owners 6,758 7,218
Total current provisions 1,129 1,120
2,695 2,149
Non-current
Employee benefits long service leave 552 345
Provisions related to employee benefit on-costs 12 -
Contractor retentions and provisions
Property acquisition liabilities 11,146 10,832
Compensation payable to property owners
Total non-current provisions 196,301 147,980
11,146 10,832
Aggregate carrying amount of provisions
Current 207,447 158,812
Non-current
TOTAL PROVISIONS 2013 2012
$’000 $’000
Employee benefits and related on-costs 91,185 98,857
Contractor retentions and provisions 20,841 17,718
Property acquisition liabilities 54,261 37,476
Compensation payable to property owners 41,160 4,761
TOTAL PROVISIONS 207,447 158,812
94
Note 15 2013 2012 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013
$’000 $’000
Provisions (continued)
17,535 18,904
Employee benefits and related on-costs 50,787 57,383
Current employee benefits 6,758 7,218
Annual leave entitlements 75,080 83,505
Long service leave entitlements 11,302 11,743
Non-current employee benefits
Long service leave entitlements 1,129 1,120
Total employee benefits 3,674 2,489
Current on-costs 16,105 15,352
Non-current on-costs 91,185 98,857
Performance and other entitlements
Total on-costs
TOTAL EMPLOYEE BENEFITS AND RELATED ON-COSTS
ANNUAL REPORT
2012-13
95
Note 15
Provisions (continued)
EMPLOYEE CONTRACTOR PROPERTY COMPENSATION TOTAL
BENEFITS RETENTIONS ACQUISITION PAYABLE TO
AND PROPERTY 2013
2013 PROVISIONS PROVISION OWNERS $’000
$’000
2013 2013 2013 158,812
98,857 $’000 130,364
$’000 $’000 (75,608)
31,155
Reconciliation (35,748) 17,718 37,476 4,761 (3,218)
(2,903)
Carrying amount at the beginning of (176) 14,453 43,705 41,051 207,447
the year (7,885) (27,323) (4,652)
(2,903)
Additional provisions recognised 91,185 (3,445) 403 -
Payments or other sacrifices of - - -
economic benefits 20,841 54,261 41,160
Additions/(reductions) from re-
measurement or settlement without cost
Decreases from economic flows
Carrying amount at the end of the year
EMPLOYEE CONTRACTOR PROPERTY COMPENSATION TOTAL
BENEFITS RETENTIONS ACQUISITION PAYABLE TO
AND PROPERTY 2012
2012 PROVISIONS PROVISION OWNERS $’000
$’000
2012 2012 2012 159,355
$’000 59,784
$’000 $’000 (85,795)
16,737
Reconciliation 87,182 21,100 46,601 4,472
8,731
Carrying amount at the beginning 30,362 12,790 11,888 4,744 158,812
of the year (27,112) (16,739) (37,489) (4,455)
Additional provisions recognised (306) 567 16,476 -
Payments or other sacrifices 8,731 - - -
of economic benefits 98,857 17,718 37,476 4,761
Additions/(reductions) from
re-measurement or settlement
without cost
Increases from economic flows
Carrying amount at the end of the year
96
Note 16 NOTES 2013 2012 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013
5 $’000 $’000
Financial instruments 6
6,183 3,688
Categorisation of financial instruments 14 42,814 41,137
48,997 44,825
Financial assets
Cash assets 154,872 209,502
Loans and receivables (at amortised cost)
Financial liabilities
Payables
ANNUAL REPORT
2012-13
97
Note 16 Financial assets that are either past due or impaired
Financial instruments (continued) The Corporation holds mortgages over property relating
to interest free loans and encumbrances against properties
Credit risk relating to compensation payments recoverable but
The credit risk relating to financial assets is the carrying does not hold any collateral as security nor credit
amount of such assets, net of the allowance for enhancements relating to any other financial assets.
doubtful debts.
As at the reporting date, other than receivables, there is
The Corporation does not have any significant credit risk no evidence to indicate that any other financial assets
exposure to any single counter party or any groups of were impaired.
counter parties having similar characteristics. The credit
risk relating to cash assets is limited as the counter party There are no financial assets that have had their terms
is a bank with high credit-ratings assigned by international renegotiated so as to prevent them from being past due
credit-rating agencies. or impaired, and these assets are stated at the carrying
amounts as indicated.
Ageing analysis of financial assets
CARRYING NOT PAST DUE BUT NOT IMPAIRED IMPAIRED
AMOUNT DUE OR FINANCIAL
IMPAIRED LESS THAN 1-3 3-12 1-5 YEARS
2013 1 MONTH MONTHS MONTHS 2013 ASSETS
$’000 2013
2013 2013 2013 2013
16,810
11,982 $’000 $’000 $’000 $’000 $’000 $’000
12,637
Receivables 8,732 6,415 812 501 350 543
Debtors 154
Accrued revenue 1,612 11,982 - - - - -
Compensation payments
recoverable 162 12,637 - - - - -
Operating lease receivables 43,357
Loans 154 - - - - -
Interest free loans
Total 1,612 - - - - -
162 - - - - -
35,279 6,415 812 501 350 543
CARRYING NOT PAST DUE BUT NOT IMPAIRED IMPAIRED
AMOUNT DUE OR FINANCIAL
IMPAIRED LESS THAN 1-3 3-12 1-5 YEARS
2012 1 MONTH MONTHS MONTHS ASSETS
$’000 2012 2012
$’000 2012 2012 2012 $’000 2012
16,738 $’000
17,296 $’000 $’000 $’000
Receivables 7,427 12,112 1,878 1,749 398 601 538
Debtors 53
Accrued revenue 162 17,296 - - - - -
Compensation payments
recoverable 41,676 7,427 - - - - -
Operating lease receivables
Interest free loans 53 - - - - -
Total
162 - - - - -
37,050 1,878 1,749 398 601 538
98
Note 16 PART SIX FINANCIAL STATEMENTS 30 JUNE 2013
Financial instruments (continued)
Liquidity risk
The Corporation operates under the Victorian
Government fair payments policy of settling financial
obligations within 30 days from the date of resolution.
Liquidity risk is managed by monitoring future cash flows
and planning to ensure adequate holding of cash assets
to fund due and payable financial liabilities.
The Corporation’s exposure to liquidity risk is deemed
insignificant based on prior periods data and current
assessment of risk.
Maturity analysis of financial liabilities
CARRYING NOMINAL LESS MATURITY DATES 1-5
AMOUNT AMOUNT THAN 1 YEARS
MONTH 1-3 3-12
MONTHS MONTHS 2013
$’000
2013 2013 2013 2013 2013
$’000 $’000 $’000 $’000 $’000
Payables 22,932 22,932 22,932 - - -
131,940 131,940 130,962 126 852 -
Amounts payable to
other government agencies
Creditors
CARRYING NOMINAL LESS MATURITY DATES 1-5
AMOUNT AMOUNT THAN 1 YEARS
MONTH 1-3 3-12
2012 MONTHS MONTHS 2012
$’000 $’000
2012 2012 2012 2012
24,642 $’000 $’000 $’000 $’000
184,860
Payables 24,642 24,642 - - -
184,860 184,729 86 44 1
Amounts payable to other
government agencies
Creditors
ANNUAL REPORT
2012-13
99
Note 16
Financial instruments (continued)
Interest rate exposure
INTEREST RATE EXPOSURE
WEIGHTED CARRYING FIXED INTEREST VARIABLE NON-INTEREST
AVERAGE AMOUNT
RATE INTEREST RATE BEARING
EFFECTIVE
INTEREST RATE 2013 2013 2013 2013
$’000 $’000 $’000 $’000
2013
Cash and cash % 6,047 - 6,047 -
equivalents 136 - - 136
2.75
Cash at bank - 16,810 - - 16,810
11,982 - - 11,982
Cash on hand - 12,637 - - 12,637
Receivables -
- 154 - - 154
Debtors 1,612 1,612 - -
- -
Accrued revenue 3.00 162 - 6,047 162
49,540 1,612 41,881
Compensation payments -
recoverable
Operating lease
receivables
Loans
Interest free loans
Total
Payables - 131,940 - - 131,940
- 22,932 - - 22,932
Creditors
154,872 - - 154,872
Victorian Government
and government
agencies
Total
100
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VicRoads Annual Report 2013-14
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