Department of Transport Annual Report 2010 - 2011

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36. Explanatory Statement (continued) (v) Significant variances between estimate and actual for 2011 – Administered income 82 2011 Estimate $ 000 2011 Actual $ 000 Variance $ 000 Administered Revenue 721 408 1 571 030 849 622 The significant items comprising the variance were: - Items not reflected in Budget Statements for the Department of Transport • Third party insurance surcharge collected on behalf of the Insurance Commission of WA. • Stamp Duty on motor vehicle registrations, budgeted for by the Department of Treasury (DT), where collections are made through licensing centres and transferred to the DT. - Other Variances • Increase in Motor Vehicle Licence fee revenue is due to growth in the number of registered vehicles, combined with increases of fees for light vehicles and higher rates for heavy vehicles. • Increase to Motor Drivers Licence renewals is primarily due to Motor Drivers Licence renewals being dependent upon the time period chosen at the last renewal. Motor Driver Licence Fees are cyclical in nature and the number of driver licences expiring in this period has increased. • Increase in Federal and Interstate Licence Fees revenue mainly due to the growth in the number of registered vehicles, combined with the increase of fees for heavy vehicle within the scheme. • Increase in Plate Infringement Fines is due to higher than expected fines issued for failure to return number plates. • Reduction in revenue from Speed and Red Light Traffic Infringement Fines is due to lower than forecast issue of infringements by WA Police Service. 532 754 343 017 19 367 2 616 2 045 467 (49 961) (vi) Significant variations between actuals for 2010 and 2011 – Administered income 2011 Actual $ 000 2010 Actual $ 000 Variance $ 000 Administered Revenue The significant items comprising the variance were: 1 571 030 1 481 539 89 491 • Increase in Third party motor vehicle insurance premium revenue. 23 411 • Increase in revenue from Stamp Duty on motor vehicle registrations. 12 009 - Other Variances • Increase in Motor Vehicle Licence revenue mainly attributable to growth in the number of registered vehicles combined with increases to vehicle licence fees for light vehicles and higher rates for heavy vehicles determined by the National Tranport Commission. • Increase in Speed and Red Light Infringement Fines primarily a result of increases to fines and increase in the number of infringements issued. (vii) Authorisations to expend in advance of appropriation 38 101 11 763 Authorisation has been given to expend $5.463 million in advance of appropriation in 2010-11 comprising the following: • Funding to address cost pressures and revenue shortfalls. 6 075 • Enhanced Speed enforcement - additional infringement processing. 2 360 • Funding provided for an increase in provision for long service leave, as a result of the annual review of adequancy provision. 715 • Salary Escalation. 26 • Deferral of appropriation to 2011-12. (3 185) • Public Transport Plan. ( 300) • Severance Savings. ( 228)
37. Financial Instruments (a) Financial risk management objectives and policies Financial instruments held by the Department are cash and cash equivalents, restricted cash and cash equivalents, Treasurer’s advances and receivables and payables. The Department has limited exposure to financial risks. The Department’s overall risk management program focuses on managing the risks identified below. Credit risk Credit risk arises when there is the possibility of the Department’s receivables defaulting on their contractual obligations resulting in financial loss to the Department. The maximum exposure to credit risk at the end of the reporting period in relation to each class of recognised financial assets is the gross carrying amount of those assets inclusive of any provisions for impairment, as shown in the table at Note 36(c) Financial instrument disclosures and Note 18 Receivables. Credit risk associated with the Department’s financial assets is minimal because the main receivable is the amounts receivable for services (holding account). For receivables other than government, the Department trades only with recognised, creditworthy third parties. The Department has policies in place to ensure that sales of products and services are made to customers with an appropriate credit history. In addition, receivable balances are monitored on an ongoing basis with the result that the Department’s exposure to bad debts is minimal. There were no significant concentrations of credit risk at the end of the reporting period. Allowance for impairment of financial assets is calculated based on objective evidence such as observable data indicating changes in client credit ratings. For financial assets that are either past due or impaired, refer to Note 36(c) Financial instrument disclosures and Note 18 Receivables. Liquidity risk Liquidity risk arises when the Department is unable to meet its financial obligations as they fall due. The Department is exposed to liquidity risk through its trading in the normal course of business. The Department has appropriate procedures to manage cash flows including drawdowns of appropriations by monitoring forecast cash flows to ensure that sufficient funds are available to meet its commitments. Market risk Market risk is the risk that changes in market prices such as foreign exchange rates and interest rates will affect the Department’s income or the value of its holdings of financial instruments. The Department does not trade in foreign currency and is not materially exposed to other price risks (for example, equity securities or commodity prices changes). Other than as detailed in the interest rate sensitivity analysis table at note 36(c) Financial instrument disclosures. The Department is not exposed to interest rate risk because apart from minor amounts of restricted cash, all other cash and cash equivalents and restricted cash are non-interest bearing, and have no borrowings other than the Treasurer’s advance (non-interest bearing). (b) Categories of Financial instruments 2011 $ 000 2010 $ 000 Financial Assets Cash and cash equivalents 27 122 26 663 Restricted cash and cash equivalents 65 092 44 591 Receivables (i) - 4 661 Amounts receivable for services 122 031 107 234 Total Financial Assets 214 245 183 149 Financial Liabilities Payables 10 219 8 379 Finance lease liabilities 47 - Total Financial Assets 10 266 8 379 (i) The amount of receivables excludes GST recoverable from the ATO (statutory receivable). 83
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Annual Report 2010 - 2011
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Contents Overview of agency ii Stat
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Director General’s foreword The D
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In the Passenger Services Business
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1,815 23,241 Income by category $18
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Department of Transport Executive D
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Other legislation and regulations a
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Outcome 2: Vehicles and road users
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Services and key effectiveness indi
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Milligan Street Secure Taxi Rank up
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New managing contractor agreement -
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Driver safety The new novice driver
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Aquatic use review DoT, in partners
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Cycling infrastructure The Perth Bi
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Implementation of rail and road inv
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Development of new port capacity Th
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Transport energy Growing concerns a
Page 35 and 36: Financial targets: Actuals compared
Page 37 and 38: Comparative industry benchmarks DoT
Page 39 and 40: Compliance with public sector stand
Page 41 and 42: Employment and industrial relations
Page 43 and 44: Freedom of information Freedom of i
Page 45 and 46: Requirement 3 - The efficiency and
Page 47 and 48: Opinion In my opinion, the financia
Page 49 and 50: Financial Statements Statement of C
Page 51 and 52: Statement of Changes in Equity For
Page 53 and 54: Schedule of Income and Expenses by
Page 55 and 56: Summary of Consolidated Account App
Page 57 and 58: (c) Reporting entity The reporting
Page 59 and 60: (f) Property, plant and equipment a
Page 61 and 62: (k) Financial instruments In additi
Page 63 and 64: (ii) Provisions - other Employment
Page 65 and 66: Correction of prior period error Mo
Page 67 and 68: 7. Accommodation expenses 2011 $ 00
Page 69 and 70: 14. Income from State Government 20
Page 71 and 72: 18. Receivables 2011 $ 000 2010 $ 0
Page 73 and 74: 21. Property, plant, equipment, veh
Page 75 and 76: 24. Construction in progress 2011 $
Page 77 and 78: 29. Other liabilities 2011 $ 000 20
Page 79 and 80: 32. Resources provided free of char
Page 81 and 82: 35. Events occurring after balance
Page 83 and 84: (d) Operating revenues Total income
Page 85: (d) Operating revenues Total income
Page 89 and 90: (b) Financial instrument disclosure
Page 91 and 92: 38. Remuneration of senior officers
Page 93 and 94: Perth Parking Licensing Account 201
Page 95 and 96: Taxi Industry Development Account 2
Page 97 and 98: 45. Administered assets and liabili
Page 99 and 100: Departmental desired outcome 1: An
Page 101 and 102: Percentage of regional airports rec
Page 103 and 104: Rate of serious rail accidents per
Page 105 and 106: Key efficiency indicators Average c
Page 107 and 108: Departmental desired outcome 2: Veh
Page 109 and 110: The key efficiency performance indi
Page 111 and 112: Departmental desired outcome 3: Int
Page 113 and 114: Efficiency key performance Indicato
Page 115 and 116: Driver and Vehicle Service Centres
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Department of Transport Annual Report 2010 - 2011

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