2004 TAC Annual Report - Transport Accident Commission

Notes to, and forming part of, the financial reports for the year ended 30 June 2004
15) RESERVES CONSOLIDATED TAC
(a) Reserve for Accident Prevention Blackspot Dividend
2004 2003 2004 2003
$000 $000 $000 $000
Balance as at 1 July 0 110,000 0 110,000
Dividend paid 0 (110,000) 0 (110,000)
Balance as at 30 June 0 0 0 0
(b) Motorcycle Road Safety Reserve 1
Balance as at 1 July 2,251 0 2,251 0
Transfer from retained surplus 3,832 2,746 3,832 2,746
Transfer to retained surplus (1,679) (495) (1,679) (495)
Balance as at 30 June 4,404 2,251 4,404 2,251
Total reserves 4,404 2,251 4,404 2,251
1
In the 2003 financial year, the TAC premium for certain motorcycle classes was increased to include an additional levy that will continue for the next three years. These monies
will be set aside in the Motorcycle Road Safety Reserve set up to disperse funds to a range of special projects to improve motorcycle road safety in Victoria.
16) RETAINED SURPLUS CONSOLIDATED TAC
2004 2003 2004 2003
$000 $000 $000 $000
Balance as at 1 July 629,299 580,321 629,299 580,321
Operating profit for the current year 590,004 51,229 590,004 51,229
Transfer to Motorcycle Road Safety Reserve (3,832) (2,746) (3,832) (2,746)
Transfer from Motorcycle Road Safety Reserve 1,679 495 1,679 495
Balance as at 30 June 1,217,150 629,299 1,217,150 629,299
The TAC will resume dividend payment to the Victorian State Government with the next payment due in October 2004. As at the date of signing of the
financial report, the amount of the dividend has not been determined. A formal determination by the Treasurer, made in accordance with the provisions of the
Transport Accident Act, is expected to be made during October 2004.
17) COMMITMENTS FOR EXPENDITURE
At balance date, the total expenditure contracted but not provided for in the financial report is as follows:
CONSOLIDATED
TAC
2004 2003 2004 2003
$000 $000 $000 $000
Administrative expenditure 1
• No later than one year 80,827 22,034 80,827 22,034
• Later than one year but not later than five years 76,230 14,969 76,230 14,969
Operating leases
157,057 37,003 157,057 37,003
• No later than one year 5,506 5,375 5,506 5,375
• Later than one year but not later than five years 19,311 18,903 19,311 18,903
• Later than five years 5,580 9,722 5,580 9,722
Finance leases
30,397 34,000 30,397 34,000
• No later than one year 111 0 111 0
• Later than one year but not later than five years 513 0 513 0
The weighted average interest rate implicit in the leases is 6.3% (2003: N/A).
624 0 624 0
1
Includes a commitment by the TAC to fund a major road safety infrastructure program at a cost of $130 million over 2004/05 and 2005/06. The program is aimed at reducing
road trauma and is expected to result in lower TAC claims costs. In addition, it also includes annual funding of $2.5 million for three years to the Victorian Trauma Foundation.
48 TAC 2004