Annual Report 2006 (main body) - RTA - NSW Government

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FINANCIAL OVERVIEW FINANCIAL PERFORMANCE STRATEGIC OUTCOME – INVESTING IN THE FUTURE Sound investment decisions are a keystone for the development of a strong, sustainable road system for NSW.The Investment Decision Framework developed during 2005 was implemented in 2006 to ensure investment decisions align and support delivery of key business outcomes and maximise immediate and long-term community benefits from state and federal funding. Strategic risk also forms an integral component of a robust investment decision framework. Significant progress has been made towards the development of the Corporate Risk Register and Risk Profile which will be integrated into the RTA governance structure by the end of 2006. ACHIEVEMENTS Sound financial management of the $2.8 billion funding and expenditure program. Developed and commenced implementation of the Strategic Risk Management Framework. Successfully implemented changes to the financial accounting processes and reporting as a result of the transition to International Accounting Standards. Undertook a review of all material RTA contracts to identify embedded derivatives as a result of adoption of AASB 139 Financial Instruments: Recognition and Measurement. Generated gross revenue of $52.9 million from sale of surplus property and leasing of residue property. Evaluated private sector infrastructure projects and provided advice on business proposals for financial and economic viability. Managed property information relating to $2.8 billion of property assets. TABLE 5: RTA FINANCIAL PERFORMANCE IN 2005–06 FINANCIAL PERFORMANCE INDICATORS RESULT RESULT TARGET RESULT TARGET 2003–04 2004–05 2005–06 2005–06 2006–07 Debt servicing cost as % of roads program 2.6 2.3 2.2 2.0 2.0 Asset sales ($M) (1) 26.8 53.2 30.0 41.2 20.0 Interest earned Hourglass facility (2) 5.2 4.6 5.0 1.7 1.5 Other institutions (3) 5.2 3.9 5.0 0.9 1.5 General notes: The RTA is a budget dependent agency funded by the NSW Government and Australian Government. Many standard financial ratios are therefore not applicable. 1. Sale of surplus properties including those acquired for roadworks and which are no longer required. All dollar amounts reported in nominal terms. 2. Target represents benchmark rate as advised by Treasury Corporation. 3. The 2005–06 result reflects lower amounts available for investment. FINANCIAL MANAGEMENT A strong emphasis remained on enhancing business efficiency and risk management across all RTA operations. The Finance Strategy Committee continued in its governance role, including direction of funding allocations and review of program and resource budget performance. This was supported by two key programs aimed at improving resource and budgetary control: Strategic review of internal and external impacts on the RTA budget. The streamlining of policies and processes for Business Investment Projects (BIPs) to improve timeliness of funding approvals and improve focus on BIPs of strategic importance to the RTA. 12 FINANCIAL OVERVIEW
INTEGRATED MANAGEMENT SYSTEM The Integrated Management System continued to support key corporate initiatives and projects such as various Business Reform programs, the extension of Employee Self Services system and Finance Simplification projects so that the RTA can continue to improve its business process efficiency. In addition, a successful trial of an online system training tool has been completed. The tool aims to provide on-demand user-driven training to increase user performance and reduce user-support calls. TOTAL ROADS PROGRAM The expenditure for the year was $2,821 million ($2,860 million in 2004–05). In achieving this result, the RTA met government commitments to specific initiatives including the Pacific Highway Upgrade,Western and South Western Sydney Roads and the Rebuilding of Country Roads programs. FIGURE 1 – EXPENDITURE 2005–06 $2,821M Debt Servicing and Repayment, $64M M4/M5 Cashback Scheme, $81.8M Voluntary Redundancies, $6M Traffic and Transport, $333M Road Safety and Road User Management, $429M RNI - Network Development, $1,219M RNI - Infrastructure Maintenance, $688M FUNDING SOURCES Of the total funds applied to the Roads Program in 2005–06, State Government sources provided $2,383 million or 85 per cent ($2,258 million in 2004–05). The Australian Government contributed $513 million or 18 per cent ($573 million in 2004–05) towards the AusLink National Network, non-network projects ie former Roads of National Importance, the Australian Transport Safety Bureau – Blackspot Program, Pacific Highway Accelerated Program, Strategic Regional Programs and the Interstate Vehicle Registration Scheme. The movement in the cash balances and asset and liability program amounted to a reduction of $75 million or three per cent ($29 million increase in 2004–05). FIGURE 2 – SOURCE OF FUNDS 2005–06 $2,821M Untied Commonwealth Road Funds (State), $150M RTA Revenue, $378M M4/M5 Cashback Scheme (State), $83M Motor Vehicle Taxes (State), $1,057M Commonwealth, $513M Consolidated Fund Allocation (State), $640M FINANCIAL OVERVIEW 13
Page 1 and 2: ANNUAL REPORT 2006
Page 3: ABOUT THIS REPORT This report follo
Page 6 and 7: CHIEF EXECUTIVE’S OVERVIEW It is
Page 8 and 9: EXECUTIVE STRUCTURE During the 2005
Page 10 and 11: CORPORATE FRAMEWORK VISION A SAFE,
Page 12 and 13: PERFORMANCE OVERVIEW TABLE 1 POSITI
Page 16 and 17: FINANCIAL OVERVIEW RISK MANAGEMENT
Page 18 and 19: POSITIVE ECONOMIC OUTCOMES INTERMED
Page 20 and 21: elow the levels of previous years.
Page 22 and 23: FIGURE 9 40 35 30 25 20 15 10 5 0 N
Page 24 and 25: Highlights during the year included
Page 26 and 27: Sunnyholt Road widening The $30 mil
Page 28 and 29: Woodford to Hazelbrook project. Pla
Page 30 and 31: WORLD MARKET The SCATS system conti
Page 32 and 33: FUTURE CHALLENGES Maintaining the r
Page 34 and 35: POSITIVE ROAD SAFETY OUTCOMES INTER
Page 36 and 37: The Early Childhood Road Safety Edu
Page 38 and 39: eaders in articles about road safet
Page 40 and 41: RTA's new Crashlab has been purpose
Page 42 and 43: ealignments and investigations for
Page 44 and 45: POSITIVE ENVIRONMENTAL AND URBAN DE
Page 46 and 47: New and reconstructed pedestrian tr
Page 48 and 49: For single invitation maintenance c
Page 50 and 51: Heritage Action Plan 2005-2010 A sc
Page 52 and 53: TABLE 10 BIODIVERSITY PROJECTS ACTI
Page 54 and 55: URBAN DESIGN Design guidelines RTA
Page 56 and 57: CLEANER CARS In 2005-06, the RTA co
Page 58 and 59: Use of energy efficient Light Emitt
Page 60 and 61: FUTURE CHALLENGES Alternative trans
Page 62 and 63: VALUE FOR MONEY CUSTOMER SERVICE IN
Page 64 and 65:
Dealer online A pilot of the ‘Dea
Page 66 and 67:
PERFORMANCE INDICATORS This year’
Page 68 and 69:
(ABOVE) Some of the team members th
Page 70 and 71:
(ABOVE) Ross Brokenbrough and Dean
Page 72 and 73:
A five year program to promote heal
Page 74 and 75:
The RTA entered into a contract in
Page 76:
FUTURE CHALLENGES Customer Service
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Annual Report 2006 (main body) - RTA - NSW Government

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