annual report 2008-2009 - V/Line

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NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS 2009 2008 $’000 $’000 NOTE 18 REMUNERATION OF DIRECTORS AND ACCOUNTABLE OFFICER Income paid or payable, or otherwise made available, in respect of the financial year, to all Directors and the Accountable Officer, directly or indirectly, from the entity or any related party. 520 512 The number of Directors and the Accountable Officer whose income (including superannuation contribution) falls within the following bands: $10,000 – $19,999 2 – $20,000 – $29,999 2 4 $30,000 – $39,999 – – $40,000 – $49,999 – – $50,000 – $59,999 – – $60,000 – $69,999 1 1 $330,000 – $339,999 – 1 $340,000 – $349,999 – – $350,000 – $359,999 – – $360,000 – $369,999 1 – 6 6 NOTE 19 REMUNERATION OF AUDITORS Amounts received or due and receivable by the auditors: 2009 2008 $’000 $’000 – audit of the financial statements 82 78 – other services – – 82 78 NOTE 20 DIRECTORS DISCLOSURES The directors of the parent entity during the year ending 30 June 2009 were: Frank A. Tait (Appointed 1 October 2003) Catherine L. Scott (Appointed 1 October 2003 – Resigned 30th June 2009) Michael D. Tilley (Appointed 1 July 2006) Fiona Bennett (Appointed 1st December 2008) David Worth (Appointed 1st December 2008) All directors are directors of V/Line Passenger Pty Ltd which forms part of the consolidated entity. NOTE 21 RELATED PARTY DISCLOSURES Related party Nature of transaction Payments to related parties Metlink Victoria Pty Ltd VicTrack Access Southern Cross Station Authority Department of Transport Transport Ticketing Authority Provision of services for V/Line customers to access suburban network Provision of communication services Rental payments Miscellaneous payments made under the Franchise Agreement Reimbursement of accounts receivable staff salary and wages Receipts from related parties Department of Transport VicTrack Access VicTrack Access Provides funding to the corporation Management fee for rent collection Network access charges Terms and conditions The entity was charged services on a cost basis only Normal commercial terms and conditions Normal commercial terms and conditions In accordance with the Franchise Agreement In accordance with agreement between the parties In accordance with the Franchise Agreement In accordance with agreement In accordance with agreement 2009 $’000 2008 $’000 3,160,733 2,196,000 10,820,985 8,852,152 1,116,336 874,887 3,241,608 4,922,211 80,169 – 255,600,000 226,703,236 – 62,949 NOTE 22 CONTINGENT ASSETS AND LIABILITIES Prior to 30 June 2009 there had been a number of incidents involving rolling stock and either motor vehicles or trucks at level crossings throughout Victoria. As a result of these incidents, damage has been sustained to rolling stock that has or will necessitate repairs as well as other operational costs incurred from the incidents in question. V/Line is pursuing the owners and/or operators of the vehicles in question from these incidents (either in person or through their insurers) for the costs of the repairs and other expenses incurred. The amount of contingent assets in relation to these incidents is uncertain. In addition, there may be contingent liabilities in relation to these incidents. On 28 May 2008 the EPA issued V/Line a Clean Up Notice in relation to contamination on railway land in Ararat that is adjacent to a former gasworks site. A Clean Up Plan is currently being developed for the site which will determine the remediation strategy that is required. If full remediation is required to be undertaken, costs of up to $1 million may be incurred. V/Line acknowledges that there are potential contingent liabilities relating to this incident. While V/Line as the occupier of the land is managing the remediation, the contamination is pre-existing so V/Line will be pursuing reimbursement for these expenses from relevant third parties. As such, there is a potential contingent asset for close to the same amount. On 18 November 2008 the EPA issued V/Line a Pollution Abatement Notice in relation to an oily sheen in Traralgon Creek. The source of the material was traced back to a storm water drain discharging from railway land. The EPA determined that activities on the site are likely to cause pollution and issued the notice. V/Line is exploring whether there is a defect and whether there is a warranty claim against the manufacturer. The more extensive works required by the pollution abatement notice may reveal pre-existing contamination. If remediation works are required, V/Line will pursue relevant third parties for recoveries or up front expenses. V/Line acknowledges contingent liabilities with respect to any environmental costs relating to this incident but, at the same time, there is a potential for contingent assets arising out of warranty claims or claims against pre-existing contamination. 474,338 – The parent company did not have any related party transactions within the wholly-owned group. V/LINE ANNUAL REPORT 2008-2009 FINANCIAL STATEMENTS 88/89
NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS NOTE 23 OPERATING LEASES AND EXPENDITURE COMMITMENTS Operating lease commitments Operating lease commitments primarily relate to commercial lease agreements in relation to tenancy at 570 Bourke Street, and 628 Bourke Street, Melbourne. The leases expire in 2014 and 2015 respectively which include fixed rate increases of between 3% and 5% or market rent reviews at dates specified in the agreements. Commitments for minimum contractual payments in relation to non-cancellable operating leases are payable as follows: 2009 2008 $’000 $’000 Within one year 4,523 2,967 Later than one year but not later than 5 years 12,919 9,151 Later than 5 years 1,059 2,774 18,501 14,892 Expenditure commitments Expenditure commitments primarily relate to station access charges. Commitments in relation to operating expenditure are shown below: 2009 2008 $’000 $’000 Within one year 25,573 10,312 Later than one year but not later than 5 years 306 1,252 Later than 5 years – – 25,879 11,564 NOTE 24 EMPLOYEE BENEFITS AND SUPERANNUATION COMMITMENTS (a) Employee benefits The aggregate employee benefit liability is comprised of: 2009 2008 $’000 $’000 Accrued wages, salaries and on-costs 4,060 4,460 Short term provisions (current) 48,933 44,503 Long term provisions (non-current) 3,726 2,210 56,719 51,173 (b) Superannuation Prior to the original Franchise Agreement, the majority of the consolidated entity’s staff were members of government superannuation funds. The state-organised funds include the Revised Scheme, New Scheme and the Transport Superannuation Fund, which are all defined benefits schemes. These schemes are ‘master funds’ comprising a large number of participating members, therefore, are not controlled by the consolidated entity. With effect from 29 August 1999, employees were given the opportunity to remain in the government superannuation funds or to change to a private superannuation fund. The private funds joined by employees of the consolidated entity since 29 August 1999 are VicSuper or Superannuation Trust of Australia. These funds are both accumulation funds. The consolidated entity has not recognised any unfunded superannuation liabilities as the State Government has guaranteed to undertake this liability from the commencement of the original franchise in 1999. Any unfunded liabilities that may arise subsequent to the new franchise are calculated annually by the Government Superannuation Office and paid by V/Line at the end of the financial year. (c) Superannuation schemes contributions and liabilities NOTE 25 SUBSEQUENT EVENTS There are no events subsequent to balance date. NOTE 26 CASH FLOW STATEMENT 2009 2008 $’000 $’000 A) RECONCILIATION OF OPERATING PROFIT/(LOSS) AFTER TAX TO NET CASH FLOWS FROM OPERATIONS Operating profit/(loss) after tax (6,422) (15,295) Non-cash flows in profit /(loss) Depreciation 18,961 20,391 Assets capitalised by VicTrack 8,315 – Tax expense – 6,290 Change in operating assets and liabilities (Increase)/decrease in trade and other receivables (2,976) (8,874) (Increase)/decrease in inventories 524 (811) (Increase)/decrease in prepayments (354) 47 (Decrease)/increase in trade and other payables (3,019) 21,037 (Decrease)/increase in employee benefits 5,945 (1,899) Net cash from /(used in) operating activities 20,974 20,886 (b) Reconciliation of cash Cash balance comprises: – Cash at bank 2,708 2,560 – Cash on hand 77 104 2,785 2,664 NOTE 27 ECONOMIC DEPENDENCY. The consolidated entity provides public transport services to rural and regional Victoria and is also responsible for the management and maintenance of the rail network. The provision of these services is subsidised by the State Government of Victoria. Without the provision of that subsidy the consolidated entity could not continue as a going concern. The subsidy requirements for the year ending 30 June 2010 have been approved by the state. The consolidated entity’s three year business plan has also been approved by the Director of Public Transport pursuant to the Franchise Agreement. NOTE 28 DIVIDENDS No dividends were paid, declared or recommended during the year, or subsequent to the year end. Contribution for the year 2009 Contribution for the year 2008 Contribution outstanding at year end 2009 Contribution outstanding at year end 2008 Total Superannuation Contributions 10,388 9,311 – – V/LINE ANNUAL REPORT 2008-2009 FINANCIAL STATEMENTS 90/91
Page 1 and 2: V/LINE PASSENGER PTY LTD ABN 29 087
Page 3 and 4: 13 October 2009 The Hon. Lynne Kosk
Page 5 and 6: ‘Nation building’ has become a
Page 7 and 8: The 2008-09 year has seen the stren
Page 9 and 10: JANUARY Year in review e AUGUST SEP
Page 11 and 12: Facts and figures 2008 2009 > 2007
Page 13 and 14: Despite the massive growth of V/Lin
Page 15 and 16: Customer growth of 79 per cent over
Page 17 and 18: PERCENTAGE OF ALL RAIL TRIPS BY LIN
Page 19 and 20: V/Line’s trains and coaches provi
Page 21 and 22: ENVIRONMENTAL N E N ISSUES S S AND
Page 23 and 24: The successful signing of a Heads o
Page 25 and 26: Train punctuality on V/Line’s reg
Page 27 and 28: Together with the Victorian Governm
Page 29 and 30: Timber sleepers have served the Vic
Page 31 and 32: Yelta Victorian rail network map Mi
Page 33 and 34: 2007 2008 2008 2009 FINANCIAL SUMMA
Page 35 and 36: arising from the conduct of the bus
Page 37 and 38: Statutory Statement We certify that
Page 39 and 40: NOTES TO THE FINANCIAL STATEMENTS N
Page 45: NOTES TO THE FINANCIAL STATEMENTS N
Page 49 and 50: ENERGY EFFICIENCIES OPPORTUNITIES P

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