AnnuAl rEPorT - Emergency Services Telecommunications Authority

ContentsAbout ESTA 02Year in review 04Chairman’s Report 09CEO’s Report 11Our Stakeholders 13Emergency Communications 2007/08 17Managing the Telecommunications Networks 21The Mobile Data Network 21The Emergency Alerting Service 22The Metropolitan Mobile Radio 23Technology and Communications 25Emergency Markers 29ESTA and the Environment 35Financial Performance – (Michael Everett) 37Corporate Governance 39Emergency Services TelecommunicationsAuthority and Committees 39The ESTA members 2007/08: 40Committees 43Human Resources Committee 44Statutory information 45Financial Report 47Financial Statements for the yearended 30 June 2008 48Auditor General’s Report 70Our Staff 33

ESTA 2007/08 annual report 2About ESTAESTA is a 24x7 operation with over 490 staff, providing services tosome five million Victorians.The Emergency ServicesTelecommunications Authority (ESTA)is the gateway for Victoria’s emergencyservices. ESTA is charged with thestatutory accountability for managingTriple Zero calls and the associatedoperational communications for thedispatch of police, fire, ambulance andState Emergency Services in Victoria.ESTA is a 24x7 operation with over 490staff, providing services to some fivemillion Victorians. This includes triplezero services for:• Victoria Police (Metropolitan Melbourneand Greater Geelong areas)• Metropolitan Ambulance Service(Metropolitan Melbourne)• Metropolitan Fire Brigade (TheMetropolitan Fire District)• Country Fire Authority (State-wide)• Victorian State Emergency Service(State-wide)In 2007/08, ESTA managed 1,861,047calls, representing a call every 16seconds and leading to 1,292,307dispatches requiring emergency servicesagency response. In addition, ESTAcoordinated emergency radio, pagingand mobile data communications for theemergency services.This support provides the emergencyservices with the ability to arrive onscene quickly, equipped with the bestinformation possible to ensure the mosteffective emergency response to theVictorian community.ESTA operates three State EmergencyCommunications Centres (SECCs),two in Melbourne and one in Ballarat.ESTA has nine Authority Membersand, through its Chairman, reports tothe Minister for Police and EmergencyServices.Glossary of Terms used throughout this report:CADCFACTDDoJDSEEASESOsESTALEAPMAS– Computer Aided Dispatch– Country Fire Authority– Calltaking and Dispatch– Department of Justice– Department of Sustainability and Environment– Emergency Alerting System– Emergency Service Organisations – (police, fireservices, ambulance and State Emergency Service)– Emergency Services Telecommunications Authority- Law Enforcement Assistance Program– Metropolitan Ambulance ServiceMATES – Media Access to Emergency ServicesMDN – Mobile Data NetworkMFB – Metropolitan Fire BrigadeMMR – Metropolitan Mobile RadioOESC – Office of the Emergency Services CommissionerRAV – Rural Ambulance VictoriaSECCs – State Emergency Communications CentresSIPSaCS – State-wide Integrated Public Safety andCommunications StrategyVicPol – Victoria PoliceVICSES – Victoria State Emergency Service

Chief Executive OfficerNeil Fosterchief financial officerMichael Everettgeneral manager operationsGraham ThiessenOrganisational Chartgeneral managerservice developmentPeter Taylorgeneral managertechnology & communicationsAndrew Wellwoodcorporate secretaryGraeme Allisongeneral managerhuman resourcesPeter Coulter

ESTA 2007/08 annual report 4Year in ReviewThe 2007/08 year has again highlighted an increase in thedemand for ESTA’s emergency communications services.In 2007/08 ESTA:Answered 1,230,343 Triple Zerocalls from Victorians needingassistance from police, fireand ambulance services in anemergency;Answered 412,201 non-TripleZero emergency calls for police,fire, ambulance and Victoria StateEmergency Service assistance; and,Answered 218,503 calls for nonemergencyassistance such aspatient transport and calls fromemergency services in the field.Total callsanswered by ESTAin 2007/08 were1,861,047representing an average increaseof 5000 calls per month onthose received in2006/07.

Calendar Highlights forFirst Quarter• EAS successfully transitioned to ESTAfrom the Department of Justice.• ESTA held Years of ServiceCeremonies on 25 July and 22 Augustcelebrating a number of staff reachingtheir 10 year service milestone.A new Short Message Service (SMS)based alerting system was introducedin addition to EAS to provide CFAwith a secondary alerting service overmobile telephones.• Computer Aided Dispatch (CAD)software upgrade commissioned,signalling the achievement ofsignificant milestone in buildingfurther capability into ESTA’s calltaking and dispatch environment.• New arrangements were put inplace with DSE for direct delivery ofcurrent digital mapping information(VicMap). This initiative provides forthe first time the capability for ESTAto regularly update the CAD systemwith critical changes in addressinginformation across the state.• ESTA’s EAS pager replacementinitiative commenced. The aimof this initiative was to upgradeapproximately 20,000 of its 35,000pagers with more robust models.1650 operational pagers werereplaced within the first quarter.• Emergency Markers were installed atthe Port of Melbourne. The projectwas also extended to Lilydale Lakeand the Federation Trail on 20September. These markers facilitatethe accurate location of emergenciesin parks and open spaces.• The Department of Treasury‘Gateway’ review of Mobile DataNetwork (MDN) project resulted in apositive report noting that customerswere satisfied with the outcome andall targeted business benefits weremet or exceeded.• ESTA participated in the RoyalMelbourne Show where our serviceswere demonstrated to thousandsof patrons.

ESTA 2007/08 annual report 62007/08Second Quarter• On 1 November, ESTA tookresponsibility for the commercialmanagement of the MMR network.• 700 MDN units in Victoria Policevehicles were upgraded inconjunction with ESTA’s new CADsoftware and a trial of MDN inrural areas for Victoria Police wassuccessfully completed. VictoriaPolice reported the MDN servicehas exceeded original business casepredictions.• ESTA held another ceremony on3 October to celebrate a numberof staff reaching their 10 yearservice milestones.• From 19 to 21 October, ESTApresented a CAD display tohundreds of school children andlocal and interstate firefighters at theNational Fire Championships held atLakes Entrance.• ESTA assisted MetropolitanAmbulance Service (MAS) inextending CAD services to a newMAS facility in the Tally Ho TechnologyPark which has allowed MAS toconsolidate their CAD support anddemand management services into anew “state of the art” facility.• ESTA commissioned a nextgeneration network managementsystem enhancing the managementand monitoring of performanceacross the complex infrastructurewithin the ESTA environment.• Rural Ambulance Victoria(RAV) migrated 90% ofits paging services toEAS.• The emergencymarkersprogrammewasexpandedwith anagreementwith ParksVictoriaallowing the markers to be installedin 13 parks across urban Melbourne.Agreement was also reachedwith the Melbourne Racing Clubto have markers installed at theCaulfield Racecourse and with theCity of Melbourne to have markersinstalled at The Tan and MelbourneDocklands.

Third Quarter• Following a storm in February 2008,message volume capacity wasexceeded by some 250%, howeveronly 30 emergency messages weredelayed beyond the specified 30second delivery time.• Metropolitan Police emergency calltaking commenced at the BallaratState Emergency CommunicationsCentre. This activity will assist toalleviate the work load experiencedby ESTA’s World Trade Centreoperators particularly during periodsof peak activity.• ESTA introduced a joint MAS/Country Fire Authority (CFA) pilotprogramme for emergency medicalresponse (EMR).The project provides for the dispatchof six designated CFA brigades topredetermined high acuity MASevents in conjunction with anambulance dispatch. The projectis identical to that in place for theMetropolitan Fire Brigade (MFB).• ESTA participated in the emergencyservice exercise “NEXUS 08”. Thisexercise was a large scale counterterrorism exercise conductedjointly by the State Government ofVictoria and the Commonwealth ofAustralia under the national exerciseprogramme arranged by the NationalCounter Terrorism Committee.• The EAS completed its AlternativeTransmission Links Upgrade resultingin more reliable switchover from theprimary satellite transmission serviceto secondary ‘back-up’ networktransmission services.• As a result of the SAI Global auditin February 08, ESTA maintainedQuality accreditation against the ISO9001:2000 Standard. The outcomeof the audit was very positivehighlighting significant achievementswithin the organisation.

ESTA 2007/08 annual report8Fourth Quarter• ESTA staff participated in the WimmeraField Days from 4 to 6 March,spreading the Triple Zero messageto in excess of 30,000 patrons.• 2 April 2008 – A significant stormstruck Melbourne and large areasof the State. Call activity over the 24hour period resulted in the creationof 10,949 events, including 2,801metropolitan VicSES events.• 12 April – the final acceptance ofthe MMR Service was successfullyachieved on schedule. This signalledthe completion of all ESO functionalrequirements, the commencementof full Service Payments to Motorolaand the release of $2.5 million inretention funds.• ESTA participated in the Careers andEmployment Expo held in Melbourneon 16 and 17 May.Following a storm in February 2008, message volumecapacity was exceeded by some 250%, however only 30emergency messages were delayed beyond the specified30 second delivery time.Some facts and figures:- ESTA is a 24/7 operation with 411 emergencyand non emergency operational staff– ESTA received on average 2,826 calls per dayin 2007/08 for police assistance and 1,155emergency calls per day for ambulance- In 2007/08, ESTA assisted police with 850police pursuit events and assisted with thedelivery of 64 babies, who couldn’t wait toget to hospital

Our partnerships havestrengthened througha true understanding ofwhat is required to servethe Victorian communityand our ongoing goodworking relationshipshave helped ESTAachieve great successthroughout the year.

ESTA 2007/08 annual report10Chairmans Report2007/08 was another year of increaseddemand on Victoria’s emergencyservices and I am pleased to say thatESTA continued to play its vital roleas the gateway to those services.With another year of emergency andnon-emergency calls again exceeding1.8 million, it is not only rewardingto acknowledge the good work ofour people but also the effectivecollaboration that has taken placeacross the sector to provide the bestemergency response possible to theVictorian community.ESTA has made significantadvancements throughout the year.The transition to the upgradedComputer Aided Dispatch platformrepresented a project that, whilechallenging, resulted in enhancedcapability for ESTA and all emergencyservices organisations. This new robustplatform will provide Victoria withmany benefits in terms of emergencyresponse for years to come.Other significant achievements includedthe transition of the commercialmanagement of the Emergency AlertingSystem (EAS) and the MetropolitanMobile Radio (MMR) Network from theDepartment of Justice to ESTA. The EASand MMR are vital parts of emergencycommunications here in Victoria andstrongly support the Triple Zero calltakingand dispatch services performed by ESTA.Considering the heavy demand placedon our calltaking and dispatch services,it is most pleasing to acknowledge thecommitted effort of staff working aroundthe clock in each of ESTA’s StateEmergency Communication Centres.I thank our emergency serviceorganisation colleagues, with whom wehave worked closely and supportively.Our partnerships have strengthenedthrough a true understanding of what isrequired to serve the Victorian communityand our ongoing good workingrelationships have helped ESTA achievegreat success throughout the year.My role as Chairman has been wellsupported by my fellow AuthorityMembers and ESTA’s Executive Team.I thank them all for their diligent workand contribution.I would also like to acknowledge thesignificant contribution made by AlanRichards who retired as an AuthorityMember on 30 June. I commend Alanfor his support over the years and wishhim well for the future.I can foresee many challenges ahead forESTA and indeed the emergency servicessector in 2008/09. I am confident thatthe quality of service delivered by thestaff at ESTA will continue to meet thesechallenges and I commend them for theirdevoted effort this past year.Warwick HeineChairman

CEO’s ReportThe past year has again been one of significant achievementin a very challenging environment. We processed a record1.86 million emergency and non-emergency calls; thisrepresents a 43% increase in the past six years.Special community events such as New Years Eve presentparticular challenges in ensuring we perform at our very bestand this year we processed over 3,000 emergency calls forpolice in the 12 hours leading up to and following midnightwith over 98% of them being answered within five seconds,this was our best New Years Eve performance on record.Similarly, the severe storms which swept across Melbourneand much of the State of Victoria on 2 April 2008 resulted insignificant call numbers to the Triple Zero and the VictorianState Emergency Service number, 132 500. Call activity overthe 24 hour period resulted in the creation of 10,949 events,including 2,801 metropolitan VicSES events and paid testimonyto the dedication of ESTA Calltakers and Dispatchers whomaintained services in extremely challenging circumstances.The performance of our technology was also no lessimpressive with our computer aided dispatch system andthe associated hardware meeting exacting standards thatreflect our mission critical accountabilities. In partnership withour private sector partners we have provided world class

ESTA 2007/08 annual report12mobile data, digital radio and satellitebased paging systems to supportpolice, fire and ambulance servicesin their management of emergenciesthroughout Victoria.Our research shows that the demandfor our services will continue to growat similar rates as for the past six yearsand we will be seeking Governmentfunding support to assist us in buildingour service capabilities in the faceof this challenge; recognising thisemerging need we have alreadyinvested heavily in building ourcapability. We have commencedupgrading our communication network,introduced incremental mapping toensure currency of our GIS data,developed new data interfaces toenable easier access to critical CADdata by Agencies, upgraded our coresoftware system and further refinedour technical infrastructure to enhanceprocessing performance.I do not want to create the impressionthat we are a technically focussedoperation, we are not; our success isgrounded in the skills and dedication ofour staff. Technology will never replacethe critical human interface of ourservices; we are fortunate that we havea committed team of professionals who,in the face of severe fires or weatherevents and other major emergencies,continually demonstrate a willingnessto go above and beyond what couldbe reasonably expected to ensureall Victorians receive the very bestemergency services possible. I sincerelythank them for their efforts over thepast year.I would also like to register myappreciation of the outstanding supportof the Senior Management Team and theadvice and guidance of the Chairmanand Members of the Authority.The past year has again been oneof significant achievement in a verychallenging environment.We processed a record 1.86 millionemergency and non-emergency calls;this represents a 43% increase in thepast six years.Neil FosterChief Executive Officer

Our StakeholdersIn 2007/08 ESTA’s key stakeholders were:The Victorian CommunityEmergency Services Organisations:• Country Fire Authority (CFA)• Metropolitan Ambulance Service (MAS)• Metropolitan Fire Brigade (MFB)• Victoria Police (VicPol)• Victoria State Emergency Service (VICSES)ESTA employeesState Government• Minister for Police and Emergency Services• Department of Justice (incorporating the Office ofthe Emergency Services Commissioner and theBureau of Emergency Services Telecommunications)• Department of Treasury and Finance• Department of Premier and Cabinet• Department of Human Services• Department of Sustainability and EnvironmentMajor suppliers

ESTA 2007/08 annual report 14

The ESTA team isfocused on the vitalservice it delivers to theVictorian community.

Emergency CommunicationsESTA operates three SECCs and manages emergency calltakingand communications for the State’s emergency services.ESTA operates three SECCs andmanages emergency calltaking andcommunications for the State’semergency services.ESTA’s two Melbourne based centressupport police, fire, ambulance and theVICSES with Triple Zero calltaking anddispatch services. The Ballarat centreprovides CFA and VICSES with regionalemergency communication services.On 13 March 2008, the Ballarat SECCalso commenced to take Triple Zerocalls for metropolitan Victoria Police.The SECCs are staffed by a team of 411dedicated call takers and dispatchersoperating 24x7, 365 days a year. TheESTA team is focused on the vital serviceit delivers to the Victorian community.Emergency communications isESTA’s core business and, therefore,business continuity is a key objectivefor the organisation.ESTA is governed by some of thetoughest performance standardsand reporting requirements globallyand is one of the few emergencycommunications agencies in the worldthat manages communications for allemergency service providers.In addition to the SECCs’ activities,ESTA manages the key emergencytelecommunications networks –the Mobile Data Network (MDN),Metropolitan Mobile Radio (MMR) andthe Emergency Alerting System (EAS).In 2007/08, ESTA managed 1,861,047calls, representing a call every 16seconds and leading to 1,292,307dispatches requiring emergency serviceagency response.The speed with which emergencycalls are answered and the speedwith which emergency services aredispatched represent the two indicatorswhich measure ESTA’s calltaking anddispatch services. In addition ESTAmaintains a strong focus on the qualityof information that is provided to theESOs to enable an even more efficientand effective response.

ESTA 2007/08 annual report 18Calls Answered by Agency01 July 2007 to 30 June 2008CFA - Metro 54,281 2.9%CFA - Ballarat (From Public) 49,081 2.6%CFA - Ballarat (To Dispatcher) 27,586 1.5%VICSES - Metro (From Public) 20,007 1.1%VICSES - Ballarat (Field Calls) 17,327 0.9%VICSES - Metro (Field Calls) 13,394 0.7%VICSES - Ballarat (From Public) 5,84 0.3%3.3% MFB - 60,5198.6% MAS - PatientTransport 160,196VICPOL - 1,031,536 55.4%22.6% MAS - Emergency 421,275

Events Dispatched by Agency01 July 2007 to 30 Jun 2008MAS - Patient Transport 122,807 9.5%MFB - 35,969 2.8%CFA - Metro 21,131 1.6%VICSES - 17,035 1.3%CFA - Ballarat 14,632 1.1%VICPOL - 798,400 61.8%21.8% MAS - Emergency 282,333

ESTA 2007/08 annual report20Victoria Police and the MASrepresented 86.6% of total callsanswered while the fire services andthe State Emergency Services madeup 13.4%. In terms of dispatch ofAgencies to emergency events this,again, was dominated by VictoriaPolice and MAS with these Agenciesaccounting for 83.4% of the activity.ESTA, the ESOs and the OESC worktogether to develop and review therelevance and suitability of performancemeasures which are to apply.This ensures the sector has qualityinformation which accurately reflectsESTA’s emergency service delivery.ESTA’s performance throughout2007/08 was excellent. ESTA reportsto the Office of the EmergencyServices Commissioner on a monthlybasis, ensuring high quality service isconsistently delivered.

Managing theTelecommunications NetworksAs an indication, typical quarterly network activity consistsof some 1 million database transactions.The Mobile Data Network (MDN), theEmergency Alerting Service (EAS) andthe Metropolitan Mobile Radio (MMR)are telecommunications networkswhich provide critical communicationsservices for the Victorian EmergencyServices Organisations (ESOs).The networks were purchased by theState as Public Private Partnerships.Under this arrangement, the facilitiesare financed, designed, constructed,owned, and operated by private sectorservice providers.The service providers undertake thecommercial risk of providing end to endservices and the State pays for theseservices on a monthly basis over agreedservice terms.ESTA has the overall role of bothcommercial and operationalmanagement of these networks.This is to ensure the obligations of theState and the service providers are metand the key performance indicators(which determine the monthly servicepayments) are achieved. This in turnensures the ESOs receive emergencytelecommunication services inaccordance with their requirements andthe State receives value for money.ESTA’s responsibility increasedsignificantly over the last year withthe transition of the EAS from theDepartment of Justice in July 2007followed by the transition of the MMRnetwork in November 2007.This required extensive due diligence,planning, organisational establishmentand operational integration.The Mobile Data NetworkThe MDN is a digital data switching andradio transmission system integratedwith the ESTA Calltaking and Dispatch(CTD) and VicPol law enforcementdatabases. It enables data to betransmitted between these databasesand mobile and fixed terminals in VicPoland MAS vehicles and offices in thegreater Melbourne region.In 2007/08, the MDN carried morethan three million Law EnforcementAssistance Program (LEAP) transactionsand was used to dispatch in excess of680,000 CAD jobs to police and over400,000 CAD jobs to ambulance.The network has continued to provide ahigh standard of service over the year.ESTA, VicPol and MAS have reportedthe service has exceeded businesscase expectations and resulted insignificant improvements in emergencyevent response and management.With the MDN network nowapproaching mid-way through its fiveyearservice term, a significant activitygoing forward will be the evaluation offuture commercial and technical optionsfor continuation of the service post2010. This work is scheduled to becompleted by June 2009.A summary of key activitiesduring the year includes:• Completion of a favourableGateway Review marking thecompletion of the project phase.• Satisfactory completionof the annual serviceperformance audit.• Resolution of specificationof complex technicalperformance benchmarks.• Commencement of the MDNFuture Options Project.

ESTA 2007/08 annual report22Highlights of the year include• Establishment of a comprehensive project compliance framework.• Completion of planned coverage enhancement.Network PerformanceThe MDN is required to perform inaccordance with specific key performanceindicators which are defined in theMDN Services Agreement as CustomerSpecified Service Standards. Thesestandards encompass a wide range ofspecified operating requirements such asmessage success rate, system availabilityand turnaround times for unit repairs.The availability of the core network was99.8% for the year. 98.02% of VicPolmessages and 97.62% of MAS messageswere transmitted in less than 30 seconds.Network ActivityA significant function of the MDN isto provide access to ESTA’s CTDnetwork and the LEAP databaseadministered by the Sheriff’s Office.The MDN processed the followingtransactions throughout the2007/08 period:CAD– Victoria Police: 683,707LEAP 3,122,964Sheriff’s Office 10,257CAD – Metropolitan 402,864Ambulance Service:• Completion of a quality audit and customer satisfaction survey.• Completion of a complex system capacity upgrade.• Completion of a favourable gateway review.• Negotiation of outstanding pager liability claims.• Ongoing management of the pager remediation programme.The Emergency Alerting ServiceThe EAS is a dedicated messagingsystem which enables CFA, SES andRAV emergency services staff andvolunteers to be simultaneously alertedto incidents and provided with textmessages by means of pocket pagers.The system operates over the wholeof Victoria by means of some 212radio transceiver sites linked to amessage switching centre and a leasedsatellite service.The EAS was transferred to ESTA inJuly 2007 following an extensive duediligence process. Among other things, asignificant obligation undertaken by ESTAat transition was the management of thechange-over to a more robust designof some 30,000 pagers. The pagerreplacement programme has involvedtechnical certification and a stagedchange-over programme scheduled tobe completed in March 2009.The service has performed to a highstandard over the last year with onlyrelatively minor service discontinuities.These have been accommodated byembedded redundancy systems.In the order of 250,000 messages aretransmitted over the EAS each quarter,however, the service occasionallymust respond to large increases indemand. Following a storm in April2008, message volumes capacity wasexceeded by some 250%, howeveronly 30 emergency messages weredelayed beyond the specified 30second delivery time.ESTA has also continued to work withother agencies to evaluate appropriateopportunities for extension of the service.

System PerformanceThe EAS performance for 2007/08resulted in an overall success rate of98.06% against its measures. This wasa significant achievement consideringthat this was only the second year ofoperation of the network and the periodincluded some extreme conditions suchas the storm in April 2008.System ActivityEAS provides message transmissionsrelating to Emergency, Non-emergency(emergency support) and Administrativeinformation to the CFA, RAV andVicSES. EAS message volumes for2007/08 incorporated the following:Emergency Messages 287,487Non Emergency Messages 245,157Administrative Messages 228,018The Metropolitan Mobile RadioThe MMR network is a digital radiosystem providing secure high qualityvoice communications for VicPol, MASand MFB over the greater Melbourneregion. The network also forms animportant part of ESTA CTD operationsand some 8000 fixed portable and mobile(vehicle based) radio sets are in use.The MMR network transferred toESTA in November 2007, following asimilar due diligence process to thatundertaken for MDN and EAS. Attransition, ESTA agreed to undertakeresponsibility for management of finalacceptance of the service (termedSecond Facility Completion).This activity was successfullycompleted on schedule on 12 April2008 and marked the satisfactorycompletion of a contractual cure plancomprising a range of technical andoperational elements.The MMR network has provided a highdegree of service since commissioningwith typical activity of the order of 4.5million voice transmissions each quarter.A major commitment of ESTAthrough 2008/09 will be specification,negotiation and acceptance testing ofa number of coverage improvements inrespect of hospitals and key reports.In conclusion, the MDN MMR andEAS managed services comprisecomplex communications, switchingand wireless systems. Performancemanagement of these services is inturn linked to complex commercialcontracts. Key functional elementsalso rely on integration with an existingmission critical CAD system.The public safety environment in whichthese managed services operate ischaracterised by:• Very high user involvement inprocess development.• High political and community visibilityof network performance.• Alignment with requirements ofmultiple stakeholders.• High service expectationsand accountability.

ESTA 2007/08 annual report24These services have beensuccessfully integrated into the ESTAcommunications environment and forma most significant part of our overallbusiness. They will continue to contributeto the improvement of efficiency andaccuracy of our service delivery.MMR Network PerformanceNetwork ActivityThe breakdown of the total number ofMMR calls for the year was as follows:MFB 1,273,051VicPol 11.702.272MAS 3,971,631Availability of the MMR core networkwas 99.8% for 2007/08Highlights of the year include• Seamless transition of commercial arrangements to ESTA• Second Facility Completion• Finalisation of Eastland coverage enhancement• Specification and certification of coverage for the EastLinkand CityLink tunnel facilities.• Completion of fleet radio functional enhancements for MAS

Technology & Communications2007/08 proved to be both a challenging and a rewarding yearwith many major initiatives achieved as described below:CAD Review ProjectThis was a challenging project which delivered substantialbenefits including the work undertaken to understand thebroader sector strategic requirements and development ofESTA’s “Future Concept of Operations”. The principles (pillars)developed through this project have now been adopted andused extensively in ESTA’s business planning process.CAD 7.9 Upgrade ProjectThe transition from CAD 7.7 to CAD7.9 was a significantproject with many technical complexities. The CAD Upgradedelivered the following:• Technical equipment refresh• Upgrade of ProQA structured calltaking software• Oracle database software upgrade• Upgraded CAD Software Platform• Ballarat / Metropolitan software and technology consolidation• New improved road rescue arrangements• New MDN QA Training capability• A more up to date CAD Map

ESTA 2007/08 annual report26The project met stated objectivesand did so within budget and in anappropriate timeframe given thecomplex stakeholder environment andinterdependencies with other thirdparty suppliers.An audit of the project highlighted anumber of organisational and processimprovements, the majority of whichhave now been implementedVicPol Call taking at BallaratThis was a considerable achievementgiven the short timeframe provided toIncremental MappingThe Incremental Mapping project is animportant initiative that will establishgreater accuracy and timeliness oflocation based information used byESTA in delivering call taking anddispatch services.In addition, this project will introducea higher level of Total QualityManagement over the whole mappingmanagement and delivery process.This will enable improvements inlocation accuracy, service quality,resource management and delivery ofDelivery of CAD Servicesto new MAS facility at 1Lakeside DriveESTA was instrumental in assisting MASin combining all of their ancillary CTDservices into a new facility adjacent toESTA’s current SECC in Burwood East.This is a strategic initiative for MAS thatwill allow future expansion of their MASReferral Service and consolidate ancillaryCTD based services that were previouslyspread across multiple centres.CAD Data Exchange FacilityThe Incremental Mapping project isan important initiative that will establishgreater accuracy and timeliness oflocation based information.ESTA has now substantially completeda new data exchange facility which istargeted to replace all existing datainterfaces between ESTA and externalorganisations. This facility provides astandard by which external parties caninterface and exchange informationwith ESTA.deliver a solution. The introduction ofVictoria Police emergency call takingcapability at Ballarat SECC requiredredesign of the call queuing for policecall takers and improved the overallredundancy of police call taking.the current and future service demandsfrom ESTA’s stakeholders.

Saving Time, Saving Lives

Emergency MarkersESTA continued to expand its Emergency Markers programthroughout 2007/08 through its “Emergency Markers– saving time, saving lives” initiative.ESTA’s ability to direct emergencyservices to precise emergency callerlocations is critical. The EmergencyMarkers program has been developedto address a time-critical issue foremergency services response to openspacelocations.The first step in responding toemergencies is pinpointing the exactlocation of the person(s) needingassistance. Emergency servicescannot be dispatched until thisinformation is known.Emergency Markers enable the exactlocation of a Triple Zero (000) callerto be accurately identified. Markersare more than just signs. They aresupported by GPS co-ordinates andnavigational data that all assists ingetting emergency services to thepublic with minimal delay.As at 30 June 2008, there were 197Emergency Markers installed in theMelbourne and metropolitan area.A further 490 markers have beencommitted for installation by ParksVictoria and other agencies. It isexpected that these will be installedwithin the first half of 2008/09.

ESTA 2007/08 annual report30Locations1416 152517 24543219181762012910138112623212201. Albert Park Lake02. Birrarung Marr03. Alexandra Gardens04. Port of Melbourne05. Melbourne Docklands06. Caulfield Racecourse07. Wattle Park08. Bunyip State Park09. Lysterfield Park10. Dandenong RangesNational Park11. Yarra Ranges National Park12. Lilydale Lake13. Warburton Rail Trail14. Kinglake Nat Park15. Woodlands Historic Park16. Lerderderg State Park17. You Yangs Regional Park18. Main Yarra Trail.19. Westerfolds Park20. Dandenong Valley Parklands21. Mornington Peninsula Nat Park22. Arthur’s Seat Nat Park23. Point Nepean National Park24. Point Cook Coastal Park25. Federation Trail26. Geelong Ring Road

The two mostpredominant questionsI ask of a callerare “where is youremergency” and “whatis your emergency?”

Our StaffIn 2007/08, ESTA employed 493 staff (465.66 Full TimeEquivalents) across three SECCs and a support office.RecruitmentRecruitment continued to be a strong focus for ESTA andmeeting our objectives has become increasingly difficultgiven the very tight labour market and the specific skillsand competencies required. ESTA recruited a record 90emergency and non emergency operators and 25 specialistsupport staff during the year.Management succession and developmentESTA understands the importance and value of its staff,both now and in the future. It has a well establishedmanagement succession and developmental process whichwill impact positively on business continuity, planning andemployee wellbeing.MeasuresStaff attrition rates for operational employees continued to bebelow the 15% target as the following graph indicates.

ESTA 2007/08 annual report34ESTA COMMUNICATION CENTRES ATTRITION RATES%%%%0%ESTA COMMUNICATION CENTRES ATTRITION RATESESTA achieved its absenteeism target of 6.5% for the 2007/08 periodESTA COMMUNICATION CENTRES ATTRITION RATES9876543Number of Leavers 210987654MAR32 JUL1AUG SEP OCT NOV DEC JAN FEB0APRAPR30%30%MAYMAY25%20%15%10%25%20%15%10%JUNJUN5%0%5%0%Annualised Attrition RateJULMARAUG SEP OCT NOV DEC JAN FEBTOTAL LEAVERS - PROGRESSIVE TOTAL ANNUALISED RATE (%)TOTAL LEAVERS PROGRESSIVE TOTAL ANNUALISED RATE (%) BUDGET (TARGET)TOTAL LEAVERS - PROGRESSIVE TOTAL ANNUALISED RATE (%)ESTA COMMUNICATION CENTRES ABSENTEEISM RATES (%)Hours Absent %10%8%6%4%2%0%10%8%6%4%JUL2%0%OCT NOVAPRAUG SEP DEC JAN-07 FEB MARTOTALBUDGET (Target June)TOTAL LEAVERS - PROGRESSIVE TOTAL ANNUALISED RATE (%)APRMAYMAYJUNJUN20201086410864JULJAN-07 FEBMAR

ESTA and the Environment

In line with a whole of governmentapproach, ESTA has embarked on amore proactive environmental stancewhich ultimately involves all ESTA staff.Recycling programs have already beenestablished at the World Trade Centreand Ballarat SECCs and, the SupportOffice. This will be extended to the TallyHo SECC during 2008/09.ESTA disposes its e-waste responsibly,and has installed motion sensors andimproved lighting in some of its buildings.A cross-organisational team hasbeen established to engage withstaff for input into an organisationwideenvironmental plan which will becompleted in 2009.

Financial PerformanceRevenueESTA’s total revenue for the year was$135.68m. This is an increase from$80.3m in 2006/07. The increase isa direct result of the transfer of theMMR and EAS contract responsibilityfrom BEST (DoJ). This amount was notbudgeted as the transition date wasnot certain at the time of the framingof the budget. The revenue includes$11.0m of revenues that relate directlyto contingency and abatement fundsthat are maintained as project reservesthat do not represent revenues fromoperating activities.Operating ExpenditureOperating expenditure for the yearwas $142.7m. This also representsa significant increase from 2006/07($82.9m). Again this resulted from thetransfer of MMR and EAS and includeda specific expense of $14.7m relating tothe loss on transfer of assets from DoJto ESTA. These losses will be recoveredover the term of the contracts.The break-up of expenditure wasas follows (2007/08 in brackets):EmployeeEntitlementsDepreciation &AmortisationSuppliesand ServicesFinance LeaseInterest ExpenseTransfer of MMRand EAS LeasesCapital Expenditure$41.89m($40.46m)$31.86m($12.65m)$44.47m($27.16m)$9.59m($2.65m)$14.70m($0m)ESTA maintains a policy of retainingfunds from its operations to ensure itis able to meet the continuous assetrefresh program that is required tomaintain its mission critical technicalassets. The 2006/07 program of capitalexpenditure focussed on maintaining theasset base within this long term plan.Net ResultThe net loss represented a positiveresult against the approved budgetand was mostly due to the accountingfor the transferred contracts. The lossposition is expected to continue in tothe coming periods with continuingpressure on expenditure resulting fromthe increased level of operational activity.LiquidityESTA’s maintains a strong liquidityposition. The overall increase in itsmonth to month commitments resultingfor the transfer of the EAS and MMRresponsibilities has reduced theliquidity ratio but poses no threat theESTA’s ongoing ability to meet all of itsfinancial commitments into the future.ESTA will need however to review itsrevenues for operational functions inorder to continue to meet the growingservice demand for core call taking anddispatch services.

ESTA 2007/08 annual report 38

Corporate GovernanceEmergency Services Telecommunications Authority and CommitteesThe Authority Members have the overall responsibility for thecorporate governance of ESTA. In particular, the Membersare responsible for:• Setting the strategic direction, objectives and targets ofthe business for the benefit of all stakeholders;• Monitoring and assessing performance of the businessand of management against the agreed strategies, targetsand objectives;• Identifying significant areas of business risk;• Ensuring that procedures and internal controls areestablished to manage such risks;• Ensuring that policies regarding appropriate ethicalstandards are established;• Ensuring compliance in legal and ethical matters;• Reporting to the Minister for Police and EmergencyServices through the Chairperson;• Appointing the Chief Executive Officer and undertakinghis/her performance reviews;• Ensuring that appropriately skilled management areemployed and provided with direction to manage thebusiness and implement the initiatives required to achievethe objectives and targets of the business.

ESTA 2007/08 annual report40The ESTA members 2007/08:Mr Warwick Heine(Chairman)Appointed Chairman of the ESTAAuthority in August 2005.Mr Heine has expertise in public policy,governance and strategic planning. Heis also a Director of the Victorian UrbanDevelopment Authority (VicUrban),Director of the Australian SaferCommunities Foundation and DeputyChair of the South Eastern RegionMigrant Resource Centre. Previousappointments have been as a ChiefExecutive Officer in the local governmentsector, Chair of the Packaged LiquorIndustry Development Trust Fund anda Director of a number of not-for-profittrusts and service organisations.Mr John Etherington(Member)Appointed ESTA Member on 4 July 2006,Mr Etherington is a charteredaccountant with over 30 yearsexperience in providing audit, riskmanagement, business planning andcorporate governance services.A former partner of Deloitte where heheld a number of senior leadershippositions, Mr Etherington has extensiveexperience in servicing a wide range ofpublicly and privately owned enterprisesand not for profit organisations. He iscurrently a principal with Non ExecutiveManagement Pty Ltd and a directorof UCA Funds Management and theNational Heart Foundation (VictorianDivision). Mr Etherington chairs theAuthority’s Audit Committee.Mr Roger Leeming(Member)Appointed ESTA Member on 4 July 2006,Mr Leeming retired from the role ofCEO, Pilkington Australasia in 2006,with international experience in theconstruction and automotive industries.He was also President of the AustralianIndustry Group in Victoria (and NationalVice President), and President of theAustralian Glass and Glazing Association.Mr. Leeming also sits on the NationalIndustry Skills Committee, which advisesFederal and State Ministers on Industry’sviews on Skills Development.

Mr Terrence Francis(Member)Appointed Director of ECV in July 2002and ESTA Member on 1 July 2005.Mr Francis has expertise in corporatefinance, infrastructure developmentand governance. He is also Chairman,Southern and Eastern IntegratedTransport Authority, a director of NylexLimited, Boom Logistics Limited,Northern Irrigation Renewal Projectand a Member of the Council ofRMIT University. Previous executiveappointments in the banking industryinclude Chief Executive Officer, Bank ofAmerica Australia; Executive Directorand General Manager, Deutsche BankAustralia; and, Vice President, ContinentalIllinois Bank. Mr Francis also chairs theAuthority’s Advisory Committee.Ms Christina Gillies(Member)Appointed Director of ECV in July 2002and ESTA Member on 1 July 2005.Ms Gillies is a full time non-executivedirector focusing on IT Governance andchairs the Authority’s CAD Committee.She is also a Director of CorporateExpress Ltd; CommSecure Ltd; AsgardWealth Solutions Ltd (subsidiary of StGeorge Bank) (Audit Chair); OaktonLtd; and United Customer ManagementSolutions (IT Committee Chair).Ms Gillies’ previously held executivepositions with St George Bank;Bank of Melbourne; Coles Myer; and,DMR Group Australia.Mr Alan Richards(Member to 30 June 2008)Appointed Director of ECV in March2003 and ESTA Member on 1 July 2005.Mr Richards retired as Chief Fire Officer,MFESB in 2002 having previouslyserved from 1986 to 2000 as DeputyChief Fire Officer. In 1988 Mr Richardswas awarded the Australian Fire ServiceMedal for distinguished service.Mr Richards has extensive experiencein telecommunication operations andcomputer aided dispatch technologyand operational requirements and wasa member of the Bureau of EmergencyServices TelecommunicationsOperations Sub-Committee from 1995to 2002.Mr Richards was also chair ofESTA’s Human Resources committee.

ESTA 2007/08 annual report42Ms Penelope Pengilley(Member)Appointed ESTA Member in July 2005.Ms Pengilley is a solicitor with over20 years experience as a commerciallitigator in a variety of areas includingcontract disputes, directors duties,trade practices and insolvency andbanking and finance. Ms Pengilley,formerly a partner at Freehills andAndersen Legal, is currently a partnerat Holding Redlich where she has beensince July 2002. Ms Pengilley wasalso previously General Counsel withthe Department of State and RegionalDevelopment, the lead agency inVictoria for investment facilitation,for two years.Ms Belinda Morieson(Member)Appointed ESTA Member in July 2005.Ms Morieson is a Director of HealthSuper and previously held the positionof Victorian Secretary of the AustralianNursing Union. Ms Morieson is the Chairof the recently established VictorianNurses Health Program. She has broadexperience in the health industry asa nurse and as a union official. MsMorieson has represented nurses atboth State and Federal forums.Mr Trevor Thompson(Member)Appointed ESTA Member in October 2005.Mr Thompson retired as AssistantCommissioner of Victoria Police in 2005after 40 years service. From 2000Mr Thompson had managed Region4 (2 years), Crime Department (1 year)and Region 1 (2 years) and was amember of the Victoria Police CorporateCommittee. Mr Thompson has hadextensive experience in operationalpolicing gaining an intricate knowledgeof operational telecommunicationrequirements. He was a member ofthe Victorian Council Against Violencefor six years.

CommitteesThe Authority operated fivecommittees in 2007/08:• ESTA Advisory Committee;• Audit, Risk Managementand ComplianceCommittee;• Human ResourcesCommittee;• Computer Aided Dispatch(CAD) Review ProjectSteering Committee; and• CAD NegotiationCommitteeESTA Advisory GroupThe ESTA Advisory Committee isappointed by ESTA pursuant toSection 21 of the Emergency ServicesTelecommunications Act 2004.The functions of the AdvisoryCommittee are to:(a) advise the Authority of any specificrequirements of or issues relating tothe organisations represented on thecommittee; and,(b) carry out any other functions that areconferred on the committee by this Act,by the regulations or by the Authority.The 2007/08 Advisory Committeemembers were:• Terrence Francis- Chairman of theAdvisory Committee and Memberof ESTA.• David Rogers- Executive ManagerOperational Communications,Metropolitan Fire Brigade.• Geoff Spring - Director StrategicPlanning and Area Coordination,Country Fire Authority.• Trevor White - Director Operations,Victoria State Emergency Service.• Mark Rogers - Manager Operations,Metropolitan Ambulance Service.• Colin Oates - Group ManagerBusiness Information TechnologyServices Department, Victoria Police.• John Schurink, -General ManagerTechnology Services Division, RuralAmbulance Victoria (July-May 2008);• Andre Coia- General ManagerLogistics Rural Ambulance Victoria(appointed June 2008)Audit, Risk Managementand Compliance CommitteeThe objectives of the Committee are to:• assist the Authority to fulfil its riskmanagement, accounting andreporting responsibilities by providingindependent and objective oversightand review of the informationpresented by Management onESTA’s performance and operationsto stakeholders;• ensure that appropriate riskmanagement policies andprocedures are developed andimplemented by Management;• provide a formal process forcommunication between theMembers of the Authority,Management and the internal andexternal auditors; and,• oversee and appraise the quality,efficiency and effectiveness of theinternal and external audit functions.Members of the Audit, RiskManagement and ComplianceCommittee in 2007/08 were:• John Etherington (Chair)• Chris Gillies• Terrence Francis• Trevor Thompson

ESTA 2007/08 annual report44Human Resources CommitteeThe role of the Human ResourcesCommittee is to provide oversight andguidance in relation to ESTA’s HumanResources policies and employmentterms and conditions.Members of the Human ResourcesCommittee in 2007/08 were:• Alan Richards (Chair)( until 30 June 2008)• Roger Leeming• Belinda Morieson• Penelope PengilleyCAD Review and ProjectSteering CommitteeThe CAD Review and Project SteeringCommittee, established in 2005, wasresponsible for the oversight of ESTA’sCAD Software Review Project. TheCommittee was wound up in February2008 on completion of the Project.Membership• Christina Gillies - Chair(ESTA Member)• Neil Foster (ESTA CEO)• David Johnson (Office of the ChiefInformation Officer)• Roslyn Kelleher (ExecutiveDirector, Police EmergencyServices and Corrections)• Stephen Marks (Probity Advisor)• Alan Richards (ESTA Member)• Trevor Sutherland (Manager,Ambulance and Acute ProgramsDepartment of Human Services)• Graeme Allison(ESTA Corporate Secretary)CAD Negotiation CommitteeThe CAD Negotiation Committee wasestablished by the Authority in February2008 to:• Provide strategic advice and directionon issues arising prior to and duringthe course of negotiations for arevised CAD Software Licence andSupport Agreement;• Monitor and review the status of thenegotiation throughout the project.Membership:• Christina Gillies - Chair• Terrence Francis• Alan Richards (until 30 June 2008)Attendance at Authority and Committee meetingsAuthority Members at30 June 2008Authority meetingsAudit, Risk Managementand Compliance CommitteeHuman ResourcesCommitteeA B A B A BWarwick Heine 11 11John Etherington 11 11 5 5Terrence Francis 11 11 5 3Christina Gillies 11 9 5 5Roger Leeming 11 10 3 3Alan Richards 11 10 3 3Belinda Morieson 11 9 3 3Penelope Pengilley 11 9 3 1Trevor Thompson 11 11 5 5A - Number of meetings held during the time the Member held office during the period.B - Number of meetings attended.

Statutory InformationThe Emergency Services Telecommunications Authority aspart of its public accountability is required to report on somespecific activities undertaken during the year.PublicationsIn addition to material distributedthrough our website, ESTA producedand distributed internal publicationsupdating staff about business activities.The Annual Report for 2006/07 wasalso presented to Parliament.ConsultantsDuring 2007/08, ESTA engaged fiveconsultants to undertake operationalactivities at a total cost of $778,168Details of all consultancies exceeding$100,000 have been published onthe Victorian Government MajorContracts website.National Competition PolicyESTA complied with the VictorianGovernment’s policy statement oncompetitive neutrality.PurchasingAll tenders undertaken within the yearwere consistent with the VictorianGovernment Purchasing Boardpolicies and guidelines.Freedom of InformationESTA was subject to the Freedom ofInformation Act 1982 (Vic.) and wascommitted to making documentsand information available to thecommunity whenever it can.The designated person for thepurpose of the Act is:Neil FosterChief Executive OfficerESTA used a computerised recordsmanagement system to manage itscorrespondence and documentsduring 2007/08. Other computersystems manage financial, humanresources and operational activities.People wanting access to ESTAdocumentation under the Freedom ofInformation Act (Vic.) should write to:Communications ManagerEmergency ServicesTelecommunications AuthorityLevel 6215 Spring StreetMelbourne 3000General inquiries concerning Freedomof Information can be made bytelephoning the CommunicationsManager on (03) 8656 1200 between8.30 am and 5.30 pm, Monday toFriday or via email info@esta.vic.gov.auESTA responded to ten FOI requests in2007/08.Privacy LegislationESTA is subject to the InformationPrivacy Act 2000 (the Act) and theHealth Records Act 2001 and iscommitted to protecting the privacyof all personal and health informationit collects and handles. ESTA usespersonal information provided forresponding to emergencies and relatedactivities. This information may alsobe used for research and statisticalanalysis purposes.ESTA operates telephone call recordingequipment. The recordings may beprovided to ESOs, law enforcementbodies, the Courts and judicialofficers or may be used for purposes

ESTA 2007/08 annual report46authorised by the TelecommunicationsAct and the Emergency ServicesTelecommunications Act.ESTA is committed to openness andtransparency and welcomes anyqueries about its approach to privacy.People wanting to make a privacyinquiry should write to:Chief Executive OfficerEmergency ServicesTelecommunications AuthorityLevel 6215 Spring StreetMelbourne 3000Whistleblowers’ ProtectionESTA is committed to its obligationsunder Whistleblowers’ ProtectionAct 2001. This commitment includesprotecting people (known as“whistleblowers”) who come forwardwith a public interest disclosure aboutany perceived improper conductby ESTA or its staff. ESTA supportsthe promotion of public sectoraccountability and transparency.ESTA has implemented proceduresto establish a system for reportingdisclosures of improper conduct ordetrimental action in accordance withthe legislation.Discrimination, Bullyingand HarassmentESTA and its staff will not discriminate,directly or indirectly in relation to:• employment, including recruitment,selection, promotion, transfer,assessments, remuneration, conditionsof service, training, staff discipline andtermination of employment;• The opportunity for staff to competeand apply their abilities, aptitude andknowledge; or,• The conduct of its business.ESTA and its staff will not harass orbully another person or a group ofpeople and will not engage in behaviourwhich is unwanted or unwelcomeand uninvited and is likely to offend,embarrass, insult, humiliate or intimidateanother person or a group of people.ESTA will do whatever is necessary torectify any discrimination, harassmentor bullying.ESTA’s induction program for all newemployees incorporates a comprehensivepresentation from its Human ResourcesDepartment in relation to all aspectsof discrimination and harassment.Training courses or information sessionsare arranged as necessary to ensuremanagers and staff are informed ofchanges or additions to policies or theiremphasis and to reinforce policies.Human Resources procedures detailarrangements for the reporting,investigation and resolution of anydiscrimination, bullying or harassmentto their line manager or higher managerif necessary.ESTA staff and management undertooktraining to assist in recognising anddealing with bullying and harassment.Risk ManagementI, Warwick Heine certify thatthe Emergency ServicesTelecommunications Authority (ESTA)has a risk management process inplace consistent with the Australian/New Zealand Risk ManagementStandard and an internal control systemis in place that enables the executive tounderstand, manage and satisfactorilycontrol risk exposures. The ESTAAudit, Risk and Compliance Committeeverifies this assurance and that therisk profile of ESTA has been criticallyreviewed within the last 12 months.Warwick HeineChairman

FinancialsAuthority member’s, accountable officer’s and chief financeand accounting officer’s declarationWe certify that the attached financial report for the Emergency Services Telecommunications Authority (ESTA) has been preparedin accordance with Standing Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions,Australian accounting standards and other mandatory professional reporting requirements.We further state that, in our opinion, the information set out in the Operating Statement, Balance Sheet, Statement of Changes inEquity, Cash Flow Statement and notes to and forming part of the financial report, presents fairly the financial transactions duringthe year ended 30 June 2008 and financial position of ESTA as at 30 June 2008.We are not aware of any circumstance which would render any particulars included in the financial statements to be misleadingor inaccurate.We authorise the attached financial report for issue on 15 September 2008On behalf of the Authority:Warwick Heine Neil Foster Michael EverettChairman Chief Executive Officer Chief Financial OfficerMelbourne Melbourne Melbourne15 September 2008 15 September 2008 15 September 2008

ESTA 2007/08 annual report 48Operating Statementfor the financial year ended 30 June 2008Notes 2008 2007$’000 $’000IncomeRevenue 3(a) 124,593 79,133Revenue representing contingency and abatement funds 3(b) 11,024 1,213Total Income 135,617 80,346ExpensesEmployee benefits 3(c) 41,897 40,462Depreciation and amortisation 3(d) 31,867 12,652Supplies and services 3(e) 44,740 27,166Finance lease interest expense 3(f) 9,558 2,647Transfer of MMR and EAS leases 3(g) 14,701 0Total Expenses 142,763 82,927Net results from operations (7,146) (2,581)Net result for the period (7,146) (2,581)The above operating statement should be read in conjunction with the accompanying notes.

Balance Sheetas at 30 June 2008Notes 2008 2007$’000 $’000Current assetsCash & cash equivalents 16(a) 44,825 29,366Receivables 4 11,188 6,771Current assets held for sale 7(a) 28 25Other assets 5 1,325 815Total current assets 57,366 36,977Non-current assetsPlant and equipment 6 & 7(a) 130,675 39,006Total non-current assets 130,675 39,006Total assets 188,041 75,983Current liabilitiesPayables 8 16,942 9,065Lease liabilities associated with current assets held for sale 7(b) 28 25Interest bearing liabilities 9 33,038 8,366Provisions 10 3,156 4,087Total current liabilities 53,164 21,543Non-current liabilitiesInterest bearing liabilities 9 108,057 21,391Provisions 10 1,361 444Total non-current liabilities 109,418 21,835Total liabilities 162,582 43,378Net assets 25,459 32,605EquityContributed capital 17(a) 30,884 30,884Accumulated surplus 17(b) (5,425) 1,721Total equity 25,459 32,605The above balance sheet should be read in conjunction with the accompanying notes.

ESTA 2007/08 annual report50Statement of changes in equityfor the financial year ended 30 June 2008Notes 2008 2007$’000 $’000Total equity at beginning of financial year 17 32,605 32,186Net income recognised directly in equity 0 0Net result for the period (7,146) (2,581)Total recognised income and expense for the period (7,146) (2,581)Total equity at end of financial year 25,459 32,605The above statement of changes in equity should be read in conjunction with the accompanying notes.Cash flow statementfor the financial year ended 30 June 2008Notes 2008 2007$’000 $’000Cash flows from operating activitiesReceiptsReceipts from customers 138,933 87,531Goods and Services Tax recovered from the ATO 7,419 4,608Interest Received 2,158 1,760Total receipts 148,510 93,899PaymentsPayments to employees and suppliers (95,473) (74,852)Goods and Services Tax paid to the ATO (10,663) (8,028)Total payments (106,135) (82,880)Net cash flows from/(used in) operating activities 16(b) 42,374 11,019Cash flows from investing activitiesPayments for Plant, Equipment and work in progress (1,304) (5,232)Proceeds from sale of plant and equipment 102 138Net cash flows from/(used in ) investing activities (1,202) (5,094)Cash flows from financing activitiesProceeds from Finance Leases 0 256Repayment of Finance Leases (25,713) (8,116)Net cash flows from/(used in) financing activities (25,713) (7,860)Net increase/(decrease) in cash and cash equivalents 15,459 (1,935)Cash & cash equivalents at the beginning of the financial year 29,366 31,301Cash & cash equivalents at end of the financial year 16(a) 44,825 29,366The above cash flow statement should be read in conjunction with the accompanying notes.

Notes to thefinancial statements1. IntroductionThis financial report coversThe Emergency ServicesTelecommunications Authority(ESTA) which is a statutory authoritycreated by the Emergency ServicesTelecommunication Act 2004 andcommenced operations on 1 July 2005.ESTA’s principle address is:ESTALevel 6/215 Spring StMelbourne VIC 3000A description of the nature of ESTA’soperations and its principle activities iscontained in the Report of Operationswhich does not form part of thisfinancial report.This financial report was authorisedfor issue by the Chairman, the ChiefExecutive Officer and the Chief FinancialOfficer on 15 September 2008.2. Summary ofaccounting policies2.1 Statement of complianceThe financial report is a general purposefinancial report which has been preparedon an accrual basis in accordancewith the Financial Management Act1994, applicable Australian AccountingStandards (AAS), which includes theAustralian accounting standards issuedby the Australian Accounting StandardsBoard (AASB), AAS 29 FinancialReporting by Government Departments,Interpretations and other mandatoryprofessional requirements.The financial report also complies withrelevant Financial Reporting Directions(FRDs) issued by the Department ofTreasury and Finance, and relevantStanding Directions (SD) authorised bythe Minister for Finance.2.2 Basis of preparationThe financial report has been prepared onthe basis of historical cost. Cost is basedon the fair values of the considerationgiven in exchange for assets.In the application of AASs management isrequired to make judgements, estimatesand assumptions about carrying valuesof assets and liabilities that are not readilyapparent from other sources.The estimates and associatedassumptions are based on historicalexperience and various other factorsthat are believed to be reasonableunder the circumstances, the resultsof which form the basis of making thejudgements. Actual results may differfrom these estimates.The estimates and underlyingassumptions are reviewed on an ongoingbasis. Revisions to accounting estimatesare recognised in the period in theestimate is revised is the revision onlyaffects that period or in the period of therevision, and future periods if the revisionaffects both current and future periods.Accounting policies are selected andapplied in a manner which ensures thatthe resulting financial information satisfiesthe concepts of relevance and reliability,thereby ensuring that the substanceand the underlying transactions or otherevents is reported.The accounting policies set out below havebeen applied in preparing the statementsfor the year ended 30 June 2008 and thecomparative information presented for theyear ended 30 June 20072.3 Reporting entityESTA has no controlled entities.2.4 Objectives and fundingESTA is predominantly funded byservice charges to the EmergencyServices Organisations who arecharged according to a fee scheduledcontained in ESTA’s Annual BusinessPlan which is approved by the Minister.ESTA’s main purpose is to giveVictorians access to emergency andnon emergency help at all times viamulti-agency call taking and dispatch.2.5 Events after reporting dateAssets, liabilities, income or expensesarise from past transactions or otherpast events. Where the transactionsresult from an agreement between ESTAand other parties, the transactions areonly recognised when the agreement isirrevocable at or before balance date.Adjustments are made to amountsrecognised in the financial statements forevents which occur after the reportingdate and before the date the statementsare authorised for issue, where thoseevents provide information aboutconditions which existed at the reportingdate. Note disclosure is made aboutevents between the balance date and thedate the statements are authorised forissue where the events relate to conditionwhich arose after the reporting date andwhich may have a material impact on theresults of subsequent years.2.6 Acquisition of assetsThe cost method of accounting is usedfor all acquisitions of assets. Cost ismeasured as the fair value of the assetsgiven up or liabilities undertaken at thedate of acquisition plus incidental costsdirectly attributable to the acquisition.

ESTA 2007/08 annual report522.7 Income recognitionAmounts disclosed as revenue are,where applicable, net of returns,allowances, duties and taxes.The service charges levied upon theEmergency Services Organisationsfor both CAD services and the PPPcontracts form a fixed monthly fee andare therefore recognised monthly. Otheradhoc charges for work undertaken asrequested by the Emergency ServicesOrganisations are recognised at thetime when services have been renderedor goods have been supplied.Resources received free of chargeor for nominal considerationContributions of resources received freeof charge or for nominal considerationare recognised at their fair value whenthe transferee obtains control over them,irrespective of whether restrictions orconditions are imposed over the use of thecontributions unless received from anothergovernment department or agency asa consequence of a restructuring ofadministrative arrangements. In whichcase, such transfer will be recognised atcarrying value. Contributions in the form ofservices are only recognised when a fairvalue can be reliably determined and theservices would have been purchased ifnot donated.Interest revenueInterest revenue includes interest receivedon bank term deposits, interest frominvestments, and other interest received.Interest revenue is recognised on a timeproportionate basis that takes into accountthe effective yield on the financial asset.Other incomeOther income consists of gains/losses ondisposal of plant and equipment, disposalof investments and disposal of business.Any gain or loss on disposal is recognisedat the date control of the asset is passedto the buyer and is determined afterdeducting from the proceeds the carryingvalue of the asset at the time.2.8 Goods and services taxIncome, expenses and assets arerecognised net of the amount ofassociated GST, unless the GST incurredis not recoverable from the taxationauthority. In this case it is recognisedas part of the cost of acquisition of theasset or as part of the expense.Receivables and payables are statedinclusive of the amount of GSTreceivable or payable. The net amountof GST recoverable from, or payable to,the taxation authority is included withother receivables or payables in thebalance sheet.Cash flows are presented on a grossbasis. The GST components of cashflows arising from investing or financingactivities which are recoverable from,or payable to the taxation authority, arepresented as operating cash flow.2.9 ExpensesGrants and other paymentsGrants and other payments tothird parties are recognised as anexpense in the reporting period inwhich they are paid or payable.Employee benefitsEmployee benefits expenses include allcosts related to employment includingwages and salaries, leave entitlements,redundancy payments and superannuationcontributions. These are recognisedwhen incurred, except for contributions inrespect of defined benefit plans.SuperannuationThe amount charged to the operatingstatement in respect of superannuationrepresents the contributions madeby ESTA to superannuation funds inrespect of current ESTA staff.Depreciation and amortisationDepreciation is provided on property,plant and equipment, including freeholdbuildings but excluding land. Depreciationis generally calculated on a straight-linebasis so as to write off the net cost orother revalued amount of each asset overits expected useful life to its estimatedresidual value. Leasehold improvementsare depreciated over the period of thelease or estimated useful life, whichever isthe shorter, using the straight-line method.The estimated useful lives, residual valuesand depreciation method are reviewed atthe end of each annual reporting period.Assets held under finance leases areamortised over the life of lease.Finance costsFinance costs are recognised asexpenses in the period in which theyare incurred and include financelease charges.Impairment of assetsAssets are assessed annually forindications of impairment. This isundertaken during the asset stocktake.If there is an indication of impairment,the assets concerned are tested as towhether their carrying value exceedstheir recoverable amount. Where anasset’s carrying value exceeds itsrecoverable amount, the differenceis written off by a charge to theoperating statement.

Supplies and servicesSupplies and services generallyrepresent cost of goods sold and theday-to-day running costs, includingmaintenance costs, incurred in thenormal operations of ESTA. Theseitems are recognised as an expensein the reporting period in which theyare incurred. The carrying amount ofany inventories held for distribution isexpensed when distributed.2.10 AssetsAll non-current assets controlled byESTA are reported in the balance sheet.Cash and cash equivalentsCash and cash equivalents comprisecash on hand and cash at bank,deposits at call and highly liquidinvestments with an original maturityof 6 months or less, which are readilyconvertible to known amounts of cashand are subject to insignificant risk ofchanges in value.For the cash flow statementpresentation purposes, cash and cashequivalents includes bank overdrafts,which are included as current interestbearing liabilities on the balance sheet.ReceivablesReceivables consist predominantlyof amounts owing from debtors inrelation to goods and services, accruedinvestment income and GST input taxcredits recoverable.Receivables are recognised initially atfair value and subsequently measuredat amortised cost, using the effectiveinterest rate method, less anyaccumulated impairment.A provision for doubtful receivables ismade when there is objective evidencethat the debts will not be collected. Baddebts are written off when identified.Leased assetsAssets held under finance leases arerecognised as assets at their fair valueor, if lower at the present value ofthe minimum lease payments, eachdetermined at the inception of the lease.The corresponding liability to the lessoris included in the balance sheet as afinance lease obligation. Leased assetsrelate primarily to assets transferredunder PPP contracts and are amortisedover the term of these contracts.2.11 LiabilitiesPayablesPayables consist predominantly ofcreditors and other sundry liabilities.Payables are initially recognised at fairvalue, then subsequently carried atamortised cost and represent liabilitiesfor goods and services provided to ESTAprior to the end of financial year that areunpaid, and arise when ESTA becomesobliged to make future payments inrespect of the purchase of these goodsand services. Fair value is determined inthe manner described in Note 15.Interest bearing liabilitiesInterest bearing liabilities are recordedinitially at fair value, net of transaction costs.Subsequent to initial recognition,interest bearing liabilities are measuredat amortised cost with any differencebetween the initial recognised amountand the redemption value beingrecognised in profit and loss over theperiod of the interest bearing liabilityusing the effective interest rate method.Fair value is determined in the mannerdescribed in Note 15.ProvisionsProvisions are recognised whenESTA has a present obligation, thefuture sacrifice of economic benefitsis probable, and the amount of theprovision can be measured reliably.The amount recognised as a provisionis the best estimate of the considerationrequired to settle the present obligationat reporting date, taking into accountthe risks and uncertainties surroundingthe obligation. Where a provisionis measured using the cashflowsestimated to settle the presentobligation, its carrying amount is thepresent value of those cashflows.Employee benefits(i) Wages and salaries,annual leave and sick leaveLiabilities for wages and salaries,including non-monetary benefits,annual leave and accumulatingsick leave expected to be settledwithin 12 months of the reportingdate are recognised in the provisionfor employee benefits in respectof employee services up to thereporting date, classified as currentliabilities and measured at theirnominal values.Those liabilities that are not expectedto be settled within 12 monthsare recognised in the provisionfor employee benefits as currentliabilities, measured at present valueof the amounts expected to be paidwhen the liabilities are settled usingthe remuneration rate expected toapply at the time of settlement.(ii) Long service leaveLiability for long service leave (LSL)is recognised in the provision foremployee benefits• Current liability – unconditionalLSL representing 5 or more yearsof continuous service is disclosedas a current liability even where theESTA does not expect to settle the

ESTA 2007/08 annual report 54liability within 12 months becauseit will not have the unconditionalright to defer the settlement of theentitlement should an employeetake leave within 12 months:The components of this currentLSL liability are measured at;present value – component thatESTA does not expect to settlewithin 12 months; andnominal value – componentthat ESTA expects to settlewithin 12 months.• Non-current liability –conditional LSL representingless than 5 years of continuousservice is disclosed as a noncurrentliability. There is anunconditional right to defer thesettlement of the entitlement untilthe employee has completed therequisite years of service.This non-current LSL liability ismeasured at present value.Employee benefits on-costsEmployee benefits on-costs (payroll tax,workers compensation, superannuation,annual leave and LSL accrued while onLSL taken in service) are recognisedseparately under provisions.2.12 CommitmentsCommitments include those operating,capital and other outsourcingcommitments arising from noncancellablecontractual or statutorysources and are disclosed at theirnominal value.2.13 Contingent assets andcontingent liabilitiesContingent assets and contingentliabilities are not recognised in thebalance sheet, but are disclosed byway of a note and, if quantifiable, aremeasured at nominal value2.14 EquityContributions by ownersFor additions to net assets which havebeen designated as contributions byowners are recognised as contributedcapital. Other transfers that are in thenature of contributions or distributionshave also been designated ascontributions by owners.Transfers of net assets arising fromadministrative restructurings aretreated as distributions to orcontributions by owners.2.15 Functional andpresentation currencyThe functional currency of ESTA is theAustralian dollar, which has also beenidentified as the presentation currencyof ESTA.2.16 Rounding amountsAmounts in the financial report havebeen rounded to the nearest thousanddollars, or in other cases, to the nearestdollar.2.17 Prospective accounting changesGAAP-GFS ConvergenceThe AASB has recently approvedAASB 1049 Whole of Government andGeneral Government Sector FinancialReporting, which will apply to futurefinancial reports of the Victorian generalgovernment sector. In October 2007,the AASB extended AASB 1049 toalso apply to financial reports of theWhole of Government economic entity.The standard, which will be applicablefor annual reporting periods beginningon or after 1 July 2008, convergesAustralian Generally AcceptedAccounting Principles (GAAP) andGovernment Finance Statistics (GFS)reporting. It also includes additionaldisclosure requirements. The effectof any changes to recognition ormeasurement requirements as a resultof this new standard is being evaluated.Review of AAS 27, 29 and 31The AASB has made the followingpronouncements arising from its shorttermreview of the AAS 27, AAS 29 andAAS 31:• AASB 1050 Administered Items;• AASB 1051 Land Under Roads;• AASB 1052 DisaggregatedDisclosures;• revised AASB 1004 Contributions;• AASB 2007-9 Amendments toAustralian Accounting Standardsarising from the Review of AAS 27,AAS 29 and AAS 31; and• revised Interpretation 1038Contributions by Owners made toWholly-Owned Public Sector Entities.The above pronouncements are tobe applicable for the reporting periodbeginning on or after 1 July 2008 withthe exception of AASB 2007-9 which iseffective from 1 January 2009. Broadly,the requirements transferred fromAAS 27, AAS 29 and AAS 31 to therelevant new and existing topic-basedstandards are unchanged. Therefore,there would be no major changes toESTA’s Financial Report when thesestandards become applicable.2.18 New accounting standardsand interpretationsCertain new accounting standards andinterpretations have been publishedthat are not mandatory for the 30 June2008 reporting period. The Departmentof Treasury and Finance assesses theimpact of these new standards andadvises departments and other entitiesof their applicability and early adoptionwhere applicable.

As at 30 June 2008, the following standards and interpretations (applicable to departments) had been issued but were notmandatory for financial year ending 30 June 2008. ESTA has not, and does not intend to, adopt these standards early.Standard / Interpretation Summary Applicable forannual reportingperiods beginningor ending onImpact onfinancial statementsInterpretation 4 Determining whetheran Arrangement contains a Lease [asamended by Interpretation 12].Where an arrangement falls within Interpretation12, the arrangement is excluded from the scopeof Interpretation 4As advised above, Interpretation 12 only applies tothe private sector operation and the AASB is stillconsidering public sector accounting forthese arrangements.Beginning 1 Jan 2008May or may not lead tocertain arrangements beingreclassified. At this stage, thefinancial impact is unknownas it depends on whetherthere are arrangements beingreclassified.Interpretation 129 Service ConcessionArrangements: Disclosures [revised].Operator to disclose revenue and profit. Beginning 1 Jan 2008 ESTA is not an operator ofservice concession, so there willbe no impact on disclosures.Interpretation 12 ServiceConcession Arrangements.AASB approved an Australian Interpretation 12,equivalent to IFRIC 12, applying to private sectoroperators, but is silent on accounting by publicsector grantors. The AASB intends to consider howpublic sector grantors should account for serviceconcession arrangements, and will appoint anadvisory panel to make recommendations.Beginning 1 Jul 2008The impact of any changesthat may be required cannotbe reliably estimated and is notdisclosed in the financial report.AASB 2007-2 Amendments toAustralian Accounting Standardsarising from AASB Interpretation 12.Amendments arise from the release inFebruary 2007 of Interpretation 12 ServiceConcession Arrangements.Beginning 1 Jul 2008As above.AASB 8 Operating Segments. Supersedes AASB 114 Segment Reporting. Beginning 1 Jan 2009 Not applicable.AASB 2007-3 Amendments toAustralian Accounting Standardsarising from AASB 8 [AASB 5, AASB6, AASB 102, AASB 107, AASB 119,AASB 127, AASB 134, AASB 136,AASB 1023 and AASB 1038].An accompanying amending standard, alsointroduced consequential amendments intoother Standards.Beginning 1 Jan 2009Impact expected to benot significant.AASB 2007-6 Amendments toAustralian Accounting Standardsarising from AASB 123 [AASB 1,AASB 101, AASB 107, AASB 111,AASB 116 & AASB 138 andInterpretations 1 & 12]Option to expense borrowing cost related to aqualifying asset had been removed. Entities arenow required to capitalise borrowing costs relevantto qualifying assets.Beginning 1 Jan 2009All Australian governmentjurisdictions are currentlystill actively pursuing anexemption for government fromcapitalising borrowing costs.AASB 2007-8 Amendments toAustralian Accounting Standardsarising from AASB 101Editorial amendments to Australian AccountingStandards to align with IFRS terminology.Beginning 1 Jan 2009Impact expected to benot significant.

ESTA 2007/08 annual report 563. Net Result from Operations(a)(b)(i)IncomeRevenue2008 2007$’000 $’000CAD services revenue 49,084 47,649PPP contracts revenue 72,847 28,969Other operating revenue 393 539Interest on deposits 2,288 1,775Gain/(loss) on disposal of plant and equipment (19) (22)Grants received from Department of Justice 0 223Non discretionary revenue124,593 79,133Revenue representing contingency and abatement fees(i) 11,024 1,21311,024 1,213ESTA has recognised as income the $11.024m of contingency funds transferred for the PPP service contract projects.This aligns to the transferring Department’s treatment of these funds as an expense at transfer. This income has not been expended as atbalance date and can only be applied to these project specific outputs, either within ESTA or applied to the other parties to the contract,in future periods. These funds may be applied at any time prior to expiration of the project.Revenue from operations 135,617 80,346(c)(d)ExpensesEmployee benefitsSalaries, wages and overtime 33,660 31,797Sick leave, annual leave and long service leave 2,725 3,264Superannuation 2,753 2,835Related on-costs 2,759 2,566Total employee benefits 41,897 40,462Depreciation and amortisationDepreciation of non-current assets 2,877 3,783Amortisation of non-current assets 28,990 8,869Total depreciation and amortisation 31,867 12,652

(e)(f)(g)(i)Supplies and services2008 2007$’000 $’000Staff costs other 618 395Contractors/Professional Services 2,642 1,502Communications 2,271 2,117Information technology and infrastructure 4,679 4,511Payments under PPP service contracts 30,497 14,755Property 3,012 2,872Office equipment 111 124Travel and entertainment 209 289Stationery 188 144Finance & insurance costs 143 167Audit services 174 91General 196 199Total supplies and services 44,740 27,166Finance lease interestFinance lease interest 9,558 2,647Total finance lease interest 9,558 2,647Non discretionary expenditureTransfer of EAS and MMR leases (i) 14,701 0Total transfer of EAS and MMR leases 14,701 0As a result of the translation of the lease responsibility for EAS and MMR, ESTA has recognised as an expense an amount of 14.701m in2007/08. This aligns to the transferring Department’s treatment of these funds as a revenue at transfer. This is a one-off expense which willbe offset in subsequent periods to the extent of a reduction in amortisation of the leased assets over the life of the contracts.Expenses from operations 142,763 82,9274. Receivables2008 2007$’000 $’000CurrentTrade receivables 4,802 4,562Other receivables 6,386 2,209Total receivables 11,188 6,771

ESTA 2007/08 annual report585. Other assets2008 2007$’000 $’000CurrentPrepayments 1,325 815Total other assets 1,325 8156. Plant and EquipmentCarrying amounts2008 2007$’000 $’000Computers and communications equipmentComputers and communications equipment at cost 11,804 10,344Less: accumulated depreciation (8,981) (6,791)2,823 3,553Leased motor vehiclesMotor Vehicles Leased 402 398Less: accumulated amortisation (112) (67)290 331Leased communications equipmentCommunications equipment leased 161,117 38,818Less: accumulated amortisation (38,381) (9,881)122,736 28,937Plant and equipmentPlant and equipment at cost 2,886 2,865Less: accumulated depreciation (1,077) (846)1,809 2,019Work in progressCapital works 19 81219 812Leasehold improvementsLeasehold improvements at cost 3,890 3,849Less: accumulated amortisation (892) (495)2,998 3,354Net carrying amount of plant and equipment 130,675 39,006

(a) Movements in carrying amountsComputers andcommunicationsequipmentLeased motorvehiclesLeasedcommunicationsequipment($ thousand)Plant andequipmentLeaseholdimprovementsWork in progress Total2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007Opening balance 3,553 4,609 331 248 28,937 37,406 2,019 2,215 3,354 1,871 812 904 39,006 47,253Additions 680 1,773 190 257 122,299 0 142 94 25 6 338 2,699 123,674 4,829Disposals (1) (34) (111) (81) 0 0 0 (29) 0 0 0 0 (112) (144)Transfer to assetsclassified as held for saleDepreciation/amortisation expenseCapitalisation of worksin progress0 0 (28) (25) 0 0 0 0 0 0 0 0 (28) (25)(2,504) (3,367) (92) (68) (28,500) (8,469) (372) (416) (397) (332) 0 0 (31,865) (12,652)1,095 572 0 0 0 0 20 155 16 1,809 (1,131) (2,791) 0 (255)Closing balance 2,823 3,553 290 331 122,736 28,937 1,809 2,019 2,998 3,354 19 812 130,675 39,006ESTA classifies all of its assets within one purpose group - Public Safety and Environment(i)On the transfer of the MMR and EAS contracts to ESTA, the Authority received $122.3m of communications equipment and assumed theassociated finance lease liabilities.The following useful lives of assets are used in the calculation of depreciation and amortisation:Computers and communications equipmentLeased motor vehiclesLeased communications equipmentPlant and equipmentLeasehold improvements3 yearsterm of leaseterm of lease5 - 10 years10 years

ESTA 2007/08 annual report 607. Non-current assets classified as held for sale and liabilities directly associated with assets held for sale(a) Non-current assets held for sale2008 2007$’000 $’000Non-current assetsLeased motor vehicles 28 2528 25(b)Liabilities directly associated with assets held for sale2008 2007$’000 $’000Lease liability 28 2528 258. Payables2008 2007$’000 $’000CurrentTrade creditors 7,832 3,561Unearned income (0) 791Accruals 9,110 4,713Total payables 16,942 9,0659. Interest Bearing Liabilities (i)2008 2007$’000 $’000Current finance lease liabilityCommunications equipment 32,868 8,238Motor vehicles 170 128Total interest bearing current liabilities 33,038 8,366Non current finance lease liabilityCommunications equipment 107,932 21,184Motor vehicles 125 207Total interest bearing non-current liabilities 108,057 21,391Total interest bearing liabilities 141,095 29,757(i)Secured by the assets leased

10. Provisions2008 2007$’000 $’000CurrentEmployee benefitsUnconditional and expected to be settled within 12 months 2,210 2,264Unconditional and expected to be settled after 12 months 561 1,2902,771 3,554Provisions related to employee benefit on-costsUnconditional and expected to be settled within 12 months 296 340Unconditional and expected to be settled after 12 months 89 193385 533Total current provisions 3,156 4,087Non-currentEmployee benefits 1,174 386Provisions related to employee benefit on-costs 187 58Total non-current provisions 1,361 444Total provisions 4,517 4,531(a)Employee entitlements2008 2007$’000 $’000Current employee benefitsAnnual leave and time in lieu entitlements 2,145 1,530Unconditional long service leave requirements 625 2,024Non-current employee benefitsConditional long service leave entitlements 1,174 386Total employee benefits 3,944 3,940Current on-costs 386 533Non-current on-costs 187 58Total on-costs 573 591Total employee benefits and related on-costs 4,517 4,531

ESTA 2007/08 annual report 6211. SuperannuationAll ESTA employees are entitled to benefits under accumulation funds. Employees are covered under Vic Super, Australian GovernmentEmployees Superannuation Trust (AGEST) or in the case of some employees their own personal superannuation schemes. Employees havethe opportunity to make personal contributions to the funds at a self-nominated rate or amount. The minimum employer contribution to thefund, pursuant to the Superannuation Guarantee Charge, was 9.0 per cent for the period 1 July 2007 and 30 June 2008.2008 2007$’000 $’000Employer contributionsAGEST 471 407Vic Super 1,107 1,919Personal superannuation funds 168 171Total employer contributions to the funds 2,346 2,497Outstanding contributions 407 338The organisation has no unfunded liability at the end of the period. There were no loans made between any of the superannuation funds andthe organisation during the period.12. LeasesFinance lease liabilitiesLeasing arrangementsFinance leases relate to communications equipment with a lease term of 5 years and motor vehicles with a lease term of 1-3 years.ESTA does have options to purchase this equipment at the expiry of the lease period.Minimum futurelease paymentsPresent value ofminimum futurelease paymentsMinimum futurelease paymentsPresent value ofminimum futurelease payments2008 2008 2007 2007$’000 $’000 $’000 $’000Not longer than 1 year 42,226 33,038 10,406 8,391Longer than 1 year and not longer than 5 years 120,639 108,057 23,489 21,391Longer than 5 yearsMinimum lease payments* 162,865 141,095 33,895 29,782Less future finance charges (21,742) 0 (4,113) 0Present value of minimum lease payments 141,123 141,095 29,782 29,782Included in the financial statements as:Current interest bearing liabilities (note 9) 33,038 8,391Non-current interest bearing liabilities (note 9) 108,057 21,391141,095 29,782*Minimum future lease payments includes the aggregate of all lease payments and any guaranteed residual

Operating lease liabilitiesLeasing arrangementsOperating leases relate to office equipment with a lease term of 2-5 years and properties with a lease term of 1-15 years.ESTA has no options to purchase this equipment or property at the conclusion of the lease agreement.2008 2007$’000 $’000Non-cancellable operating leasesNot longer than 1 year 1,956 1,712Longer than 1 year and not longer than 5 years 5,536 4,825Longer than 5 years 5,972 7,25113,464 13,78813. Commitments for expenditure2008 2007$’000 $’000(a) Capital expenditure commitmentsTotal capital expenditure contracted for purchase and implementation of infrastructure at balance date but not provided forin the accounts:Not longer than 1 year 439 274Longer than 1 year & not longer than 5 years 0 0Longer than 5 years 0 0439 274(b)(c)Property lease agreementsCommitments in relation to property leases contracted for at the reporting date but not recognised as liabilities, payable:Not longer than 1 year 1,742 1,675Longer than 1 year & not longer than 5 years 5,405 4,806Longer than 5 years 5,972 7,25113,119 13,732Motor vehicle and photocopier operating lease agreementsAll motor vehicle and photocopier lease agreements have finite lease terms, no renewal clauses or purchase options. The lease terms do notcontain any further restrictions.Not longer than 1 year 214 37Longer than 1 year & not longer than 5 years 131 19Longer than 5 years 0 0345 56

ESTA 2007/08 annual report 64(d)2008 2007$’000 $’000Software Licence & Services AgreementA commitment exists in relation to a facilities and management agreement held with Intergraph Corporation Pty Ltd.Not longer than 1 year 3,922 3,956Longer than 1 year & not longer than 5 years 961 659Longer than 5 years 0 04,903 4,615Total commitments for expenditure (exclusive of GST) 18,806 18,677Plus GST recoverable from the Australian Taxation Office 1,881 1,868Total commitments for expenditure (inclusive of GST) 20,687 20,54514. Contingent liabilities and contingent assetsAn amount of $7.913m was included in the 2006/07 accounts in relation to the extension of the Intergraph Corporation contract.Subsequent advice has determined that this amount should not have been represented as a contingent liability.15. Financial Instruments(a)Significant accounting policiesDetails of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement, and thebasis on which income and expenses are recognised, with respect to each class of financial assets, financial liability and equity instrument aredisclosed in Note 2 to the financial statements.(b)Categorisation of financial instrumentsFinancial assets Note Category 2008 2007$’000 $’000Cash and cash equivalents 16(a) Financial Assets 44,825 29,366Receivables - non interest bearing 4 Receivables 11,188 6,77156,013 36,137Financial liabilitiesPayables and advances - non interest bearing 8 Financial liabilities 16,942 9,066Interest bearing liabilities 9 Financial liabilities measured at amortised cost 141,095 29,755158,037 38,821

(c)(d)(e)Credit RiskESTA’s exposure to credit risk arises from the potential default of counter party on their contractual obligations resulting in financial loss toESTA. Credit risk is measured at fair value and is monitored on a regular basis.Credit risk associated with ESTA’s financial assets is minimal because the main debtor is the Victorian Government.Currently ESTA does not hold any collateral as security nor credit enhancements relating to any of its financial assets.Liquidity riskLiquidity risk arises when ESTA is unable to meet its financial obligations as they fall due. ESTA Operates under the Government fair paymentspolicy of settling financial obligations within 30 days and in the event of a dispute, makes payments within 30 days from the date of resolution.It also continuously manages risk through monitoring future cash flows.Interest rate exposure and aging analysis of financial assetsExposure to interest rate risk is insignificant and might arise primarily through ESTA’s interest bearing liabilities. Minimisation of risk is achievedby mainly undertaking fixed rate or non-interest bearing financial instruments. For financial liabilities, ESTA mainly undertakes financial liabilitieswith relatively even maturity profiles. ESTA’s interest bearing liabilities are managed by Department of Justice.ESTA’s exposure to interest rate risk and the effective weighted average interest rate for each class of financial assets and liabilities follows.Exposures arise predominantly from assets and liabilities bearing variable interest rates.Weightedavg. annual Carryingeffective amountinterest rate %Interest rate exposureFixedinterestrateVariableinterestrateNoninterestbearingNot pastdue Less thanand not 1 monthimpairedPast due but not impaired1 - 3months3 - 12months1 - 5yearsImpairedfinancialassets2008 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000Receivables:Cash and cash equivalents 7.64% 44,825 16,142 28,680 3 - - - - - -Other receivables - 11,188 - - 11,188 11,188 - - - - -56,013 16,142 28,680 11,191 11,188 0 0 0 0 02007Receivables:Cash and cash equivalents 6.0% 29,366 15,439 13,925 3 - - - - - -Other receivables - 6,771 - - 6,771 6,771 - - - - -36,137 15,439 13,925 6,774 6,771 0 0 0 0 0

ESTA 2007/08 annual report 66(f)Interest rate exposure and maturity analysis of financial liabilitiesWeightedavg. annual Carryingeffective amountinterest rate %Interest rate exposureFixedinterestrateVariableinterestrateNoninterestbearingNominalamountLess than1 monthMaturity dates1 - 3months3 - 12months2008 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000Payables:Payables and advances - 16,942 - - 16,942 16,942 16,942 - - -Motor vehicle leases 6.84% 295 295 - 295 11 19 156 109Communications equipmentleases7.61% 140,800 140,800 - - 140,800 3,536 7,002 29,389 100,873158,037 141,095 0 16,942 158,037 20,489 7,021 29,545 100,9822007Payables:Payables and advances - 9,065 - - 9,006 9,005 9,005 - - -Motor vehicle leases 6.42% 335 335 - - 335 8 38 100 18921,183Communications8.06% 29,422 29,422 - - 29,422 676 1,364 6,199equipment leases*net of future finance charges1 - 5years38,822 29,757 0 9,006 38,762 9,689 1,402 6,299 21,372(g)Fair valueThe fair values and net fair values of financial assets and financial liabilities are determined in accordance withgenerally accepted pricing models based on discounted cash flow analysis.NoteCarryingamount2008 2007Net fairvalueCarryingamountNet fairvalue$’000 $’000 $’000 $’000Financial assetsCash & cash equivalents 16a 44,825 44,825 29,366 29,366Trade receivables 4 4,802 4,802 4,562 4,562Other receivables 4 6,386 6,386 2,209 2,20956,013 56,013 36,137 36,137Financial liabilitiesMotor vehicle leases 9 295 295 335 335Communication equipment leases 9 140,800 140,800 29,422 29,422Payables 8 16,942 16,942 9,065 9,065158,037 158,037 38,822 38,822

16. Notes to cash flow statement(a)Reconciliation of cash2008 2007$’000 $’000For the purposes of the Cash Flow Statement, cash includes cash on hand and in banks andinvestments in money market instruments. Cash at the end of the financial year as shown in the CashFlow Statement is reconciled to the related items in the balance sheets as follows:Cash at bank and on hand 28,683 13,928Short term investments 16,142 15,43844,825 29,366(b)Reconciliation of net result for the period to net cash flows from operating activities2008 2007$’000 $’000Net result for the period (7,145) (2,581)Depreciation and amortisation 31,867 12,652Transfer of MMR and EAS leases 14,701 0Loss/(gain) on sale of assets 19 22Decrease (increase) in receivables (4,417) 103Decrease (increase) in prepayments (510) (233)Increase (decrease) in payables 8,666 (1,103)Increase (decrease) in unearned income (791) 791Increase (decrease) in provisions (15) 1,368Net cash flows from/(used in) operating activities 42,374 11,01917. Equity and movements in equity2008 2007$’000 $’000(a) Contributions by ownersBalance at beginning of financial year 30,884 30,884Balance at end of financial year 30,884 30,884(b)Accumulated surplusBalance at beginning of financial year 1,721 4,302Net result (7,146) (2,581)Balance at end of the financial year (5,425) 1,721

ESTA 2007/08 annual report 6818. Responsible personsThe persons who held the positions of Ministers and Responsible Persons in ESTA are as follows:Minister for Police and Emergency Services - The Hon. Bob Cameron MP 1 July 2007 to 30 June 2008Chairman - Mr Warwick Heine 1 July 2007 to 30 June 2008Chief Executive Officer - Mr Neil Foster 1 July 2007 to 30 June 2008Authority Member - Mr Terrence Francis 1 July 2007 to 30 June 2008Authority Member - Ms Christina Gillies 1 July 2007 to 30 June 2008Authority Member - Mr Alan Richards 1 July 2007 to 30 June 2008Authority Member - Mr Trevor Thompson 1 July 2007 to 30 June 2008Authority Member - Ms Penelope Pengilley 1 July 2007 to 30 June 2008Authority Member - Ms Belinda Morieson 1 July 2007 to 30 June 2008Authority Member - Mr John Etherington 1 July 2007 to 30 June 2008Authority Member - Mr Roger Leeming 1 July 2007 to 30 June 2008Related parties disclosureOther related transactions and loans requiring disclosure under the directions of the Minister for Finance have been considered and there areno matters to report.RemunerationTotal remuneration received or receivable by the Accountable Officer in connection with the management of ESTA during the reporting periodwas in the range:$270,000 - $279,999 ($250,000 - $259,999 in 2007)Remuneration of Authority Members in ESTA are as follows:BaseremunerationTotalremunerationBaseremunerationTotalremunerationIncome band 2008 2008 2007 2007No. No. No. No.$20,000 - $29,999 8 8 8 8$50,000 - $59,999 1 1 1 1Total Numbers 9 9 9 9$’000 $’000 $’000 $’000Total Amount 261 261 259 259Amounts relating to Ministers are reported in the financial statements of the Department of Premier and Cabinet.

19. Remuneration of executivesThe number of executive officers, other than Ministers and Responsible Persons and their base remuneration is shown in column two ofthe table below in their relevant income bands. The total remuneration of executive officers is shown in column three. Base remuneration isexclusive of bonus payments, long service leave payments upon termination, retirement and redundancy payments.Remuneration betweenBaseremunerationTotalremunerationBaseremunerationTotalremuneration2008 2008 2007 2007No. No. No. No.$110,000 - $119,999 0 0 2 0$120,000 - $129,999 5 2 1 0$130,000 - $139,999 0 1 0 3$140,000 - $149,999 0 2 2 0$150,000 - $159,999 1 0 1 1$160,000 - $169,999 2 0 2 2$170,000 - $179,999 2 1 1 0$180,000 - $189,999 1 2 0 3$200,000 - $209,999 0 3 0 0Total Numbers 11 11 9 9$’000 $’000 $’000 $’000Total Amount 1,656 1,832 1,288 1,44220. Remuneration of auditors2008 2007$’000 $’000Victorian Auditor General’s OfficeAudit of the financial report 16 1516 1521. Subsequent eventsThere are no known events subsequent to balance date that would influence the 2007/08 financial statements

ESTA 2007/08 annual report 70

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