Annual Report2014 - 2015

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Published by the Department of Transport

© Northern Territory Government

Apart from any use permitted under the Australian Copyright Act, no part of this document may be reproduced without prior written permission from the Northern Territory Government through the Department of Transport.

ISSN 2202-8455

Enquiries should be made to: Department of TransportGPO Box 2520 DARWIN NT 0801

Photo - Courtesy of NT Airports Pty Ltd

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Purpose of the Report ...........................................01

Letter from the Chief Executive ............................02

Chief Executive’s Overview ..................................03

01 About the Department ...........................................06

02 Activities, Priorities and Achievements ...............12 Introduction ........................................................13

Unlocking potential in our regions .....................14

Supporting industry development......................28

Reforming our transport services ......................32

Servicing our customers ....................................42

Developing the North .........................................49

03 Our People ..............................................................55 Overview ............................................................59

Employment Opportunity (EEO) – Encouraging diversity and flexibility ..................62

Learning and Professional Development ............63 Training and Development .................................63

Professional and Technical Development ..........64

Leadership initiatives .........................................64

Employment Programs .......................................66

Work Health, Safety and Wellbeing ......................68

Reporting against Employment Instructions ......73

04 Corporate Governance ..........................................78

05 Legislation ..............................................................92

06 Financial Report .....................................................96 Department of Transport ...................................96

Darwin Bus Service ..........................................146

Appendix ...............................................................182

Contents

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The Department of Transport’s Chief Executive has prepared the 2014–15 Annual Report to comply with annual reporting requirements under Section 28 of the Public Sector Employment and Management Act, the Financial Management Act and the Information Act.

Its primary purpose is to report to the Minister for Transport on the Department’s performance in 2014–15.

Other target audiences include the Northern Territory Legislative Assembly, other Departments, our staff and the Department’s stakeholders.

The report provides a comprehensive account of the Department’s functions and performance against the approved budgets and performance measures for 2014–15, and progress against the strategic goals outlined in the Department’s Strategic Plan 2014–2018. It also outlines the Department’s responsibilities and internal governance arrangements and identifies strategic priorities for 2015–16.

Darwin Bus Service was a Government Business Division within the Department that provides public transport to the Greater Darwin area and its achievements are included in this annual report. On 5 October 2014, the Darwin Bus Service transitioned to a private operator and is no longer a Government Business Division.

AustralAsia Railway Corporation is a statutory body set up to represent the interests of the South Australian and Northern Territory governments during the construction and operations of the AustralAsia Railway. The operations and performance of the corporation are not included in this annual report. It now focuses on ensuring delivery of all its obligations under the Concession Deed and that other parties deliver on their obligations throughout the Concession Period.

Purpose of the Report

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The Hon Peter Glen Chandler MLA Minister for Transport Parliament HouseDARWIN NT 0800

Dear Minister

I am pleased to present you with the Department of Transport Annual Report for the year ended 30 June 2015. The report describes the performance and key achievements of each of the Department’s divisions, pursuant to Section 28 of the Public Sector Employment and Management Act.

To the best of my knowledge and belief:

a) Proper records of all transactions affecting the Department are kept, and employees under my control observe the provisions of the Financial Management Act, its regulations and applicable Treasurer’s Directions.

b) Departmental procedures afford proper internal control. A current description of these procedures is recorded in the accounting and property manual. The manual has been prepared in accordance with the requirements of the Financial Management Act.

c) No indication of fraud, malpractice, major breach of legislation or delegation, major error in, or omission from, the accounts and records exists.

d) In accordance with Section 15 of the Financial Management Act, I advise that as at 30 June 2015, the Department had adequate internal audit capacity. The results of all internal audit matters have been reported to me.

e) The financial statements included in the annual report have been prepared from proper accounts and records, and in agreement with Treasurer’s Directions.

f) Employment Instructions issued by the Commissioner for Public Employment have been satisfied.

g) The Department is working in compliance with the Information Act.

Andrew KirkmanChief ExecutiveDepartment of Transport

30 September 2015

Letter from the Chief Executive

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I joined the Department as Acting Chief Executive on 27 July 2015 following Ms Gardiner-Barnes promotion to a position in the NSW government.

The Department of Transport is responsible for developing the platform for strategic planning for the future transport needs of the community and for providing regulatory and customer services to ensure safe, efficient and sustainable transport systems that meet the needs of the community, while supporting the Northern Territory Government’s goals and priorities for the economic and social development of the Territory.

In its third year of reporting, the Department has had a strong focus on planning for the future, particularly through the development of key strategic priorities that feed into the Roadmap for future Integrated Transport Planning and Investment.

In particular, we recently released the Roads and Bridges Strategy for public consultation. The Strategy captures the historical importance of the road network across the Territory, as well as identifying the drivers for investment and development of road infrastructure into the future. The Strategy articulates the Northern Territory Government’s planned development of transport infrastructure to support social and economic growth and improve connectivity to remote areas within the Northern Territory.

The development of a Freight and Logistics Strategy will complement the Roads and Bridges Strategy, through protecting and prioritising key freight corridors and identifying associated infrastructure to ensure the Territory moves forward to improving productivity in the freight and logistics sector, which is of particular importance to the Territory due to its remote location.

Similarly, the Department of Transport has taken a lead role in the development of the National Remote and Regional Transport Strategy. The Strategy is being developed to provide a nationally coordinated approach for addressing transport infrastructure, service delivery and regulation challenges specific to remote and regional Australia.

Chief Executive’s Overview

I am pleased to present you with the Annual Report for the Department of Transport for the year ended 30 June 2015.

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In 2013, the Department took on responsibility for aviation policy in the Northern Territory. In the last financial year, the Department has expanded the Territory’s profile in the aviation sector by assisting with the introduction of additional services to the market, including regular domestic services with Virgin Australia, connecting Darwin, Alice Springs and Adelaide. The Department continues to strengthen ties with the international market, particularly South East Asia, through ongoing partnerships with Malaysia Airlines, Silk Air and Jetstar Asia. An Aviation Strategy is being finalised by the Department and will be released by Government later this year.

This year, the Department of Transport has seen the completion of the Regional Infrastructure Study, which will also inform the key strategies being delivered by the Department under the Roadmap, including the Roads and Bridges Strategy, Freight and Logistics

Strategy, National Remote and Regional Transport Strategy and the Aviation Strategy.

The Regional Infrastructure Study is the first comprehensive infrastructure plan to cover Territory-wide transport, essential services and community infrastructure, with particular reference to regional and remote localities. The Study also works in unison with the Australian Government’s Northern Development White Paper and the Infrastructure Australia audit which is aimed at accelerating growth in Northern Australia. The study focused primarily on the economic drivers affecting the resources, tourism and agriculture industries, with transport being identified as a key enabler to support these industries.

Last year saw the Department take a very innovative approach in its delivery of customer services to the Community, with the introduction of a raft of reforms to the Motor Vehicle Registry services, which simplified services, reduced wait times and improved compliance requirements for drivers and vehicle operators.

This innovating thinking has continued into 2014–15, with the Department releasing a NT Bus Tracker App that allows commuters of the Darwin Bus network to check real-time arrival and departure times of buses at local bus stops. The App complements the introduction of a state-of-the-

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art bus ticketing system that will assist with future planning of the Territory bus network by recording important user data including the number of passengers, pin-pointing high-usage routes as well as identifying possible new routes into the future. The Department also introduced a new electronic system that allows passengers to purchase tickets through re-usable tap and ride cards, which can be topped up at all ticket offices at the Darwin, Casuarina and Palmerston Interchanges.

Safety has also been at the forefront of focus for the Department in 2014–15, with 14 new Transit Safety Officers joining the Department after a transport safety review of the local bus network. An App was developed for Transit Safety Officers to enable them to send safety incident reports electronically while on duty, which allows the incident to be reported straight away and increases the safety on the bus network.

In 2014–15, the Northern Territory Government completed a review of port legislation in the Territory and introduced the Port Management Act as well as reviewing regulations relating to recreational vessels in the Northern Territory. This also initiated the transfer of the Harbourmaster function to the Department, with Captain Tony O’Malley joining the team in March 2015.

From a corporate perspective, this year saw two key staff members take home awards, with Ernie Wanka, Chief Government Engineer, recognised for his efforts as part of the Australia Day honours list in 2015 and Glenda Thornton, Director MVR recognised for her work in directing and supporting the reform measures undertaken to improve customer service experiences at MVR, through a Public Service Medal awarded at the November Chief Minister’s Awards.

I would like to take this opportunity to thank Departmental staff for their continued tireless efforts in achieving key targets over the last financial year and for their ongoing dedication to their jobs and making a valuable and lasting contribution to the development of Northern Territory transport systems and infrastructure.

Andrew KirkmanChief ExecutiveDepartment of Transport

30 September 2015

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01ABOUT THE

DEPARTMENT

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The Department of Transport provides strategic planning, regulatory and customer services to ensure safe, efficient and sustainable transport systems that meet community needs and support the Northern Territory Government’s goals for the economic and social development of the Northern Territory.

DEPARTMENT OF TRANSPORT

TRANSPORT INFRASTRUCTURE PLANNINGDevelops strategies, policies, and standards for the Territory’s 22 000km of road network and transport infrastructure assets such as remote aerodromes; jetties, pontoons and barge landings; rail level crossings; bus stops, shelters and interchanges; and cycling and walking paths.

TRANSPORT SERVICESPlans and manages public bus services, regulates commercial passenger transport services, provides driver licensing and vehicle standard registration and inspection services, and delivers regulatory and education programs for marine safety.

TRANSPORT POLICY & LEGISLATIONCreates, updates NT transport policy and legislation to ensure it meets certain standards. Develop and implement national and local transport reforms.

OFFICE OF THE CHIEF EXECUTIVE & BUSINESS SERVICESThe Office of the Chief Executive provides executive project management and support, and Secretariat and Ministerial liaison services.

Business Services provides corporate services support through a Service Level Agreement with the Department of Lands, Planning and the Environment.

AUSTRALASIA RAILWAY CORPORATIONOversees the delivery of the Concession Deed between the Corporation and the Rail Operator.

AVIATION, LOGISTICS & INDUSTRY DEVELOPMENTResponsible for Transport strategy, freights and logistics; developing domestic and international service routes and aviation services.

CHIEF GOVERNMENT ENGINEER

About the Department

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� EXECUTIVE MANAGEMENT BOARD

The Executive Management Board assists the Chief Executive in high-level monitoring of organisational performance, identifying critical issues and developing Departmental responses.

The Executive Management Board has a range of key functions, which are covered in the chapter on corporate governance.

Chief Executive: Clare Gardiner-BarnesClare Gardiner-Barnes started as the Chief Executive of the Department of Transport on 29 April 2013. Clare is a member of the Australasia Railway Corporation Board and Austroads Board. Since joining the Department, Clare has refocused the key priorities of the Department to ensure a stronger strategic planning and policy agenda while engaging more collaboratively with industry stakeholders and continuing to deliver major reforms across transport services.

Clare has more than 20 years’ experience in the public sector taking on key leadership roles across education, women’s issues, children and families, disability, homelessness, child care, disaster recovery and domestic and family violence. Prior to joining the Department of Transport in April 2013, she held the position of Chief Executive Officer, Department of Children and Families leading whole of government reforms across the child protection system in the Northern Territory.

Clare holds a Diploma of Teaching (Primary), Graduate Diploma Arts (Leadership) and a Masters in Social Welfare Administration and Planning.

Clare left the Department as Chief Executive to take up a promotion in NSW on 23 July 2015.

Executive Director, Transport Services: Paul RajanPaul has extensive senior executive experience both in Australia and the United Kingdom, in all levels of government, the not-for-profit sector and as a small business operator. Paul’s priority is to drive reform in customer service across all transport services and operations, providing additional service channels, simplifying procedures and reducing the impact of regulation on industry and the community.

A diverse background in social welfare, community development and consultancy and training in the United Kingdom and Western Australia preceded a move to the Northern Territory. Paul has held a variety of roles in the Departments of Chief Minister, Education and Training and Local Government focused on policy

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development, community engagement and responsibility for remote services development.

Paul started in the former Department of Lands and Planning over three years ago and has been responsible for developing and managing the Transport Services Division.

Paul has held a range of governance positions in non-government organisations and is a member of the Board of Families Australia – a national peak family policy organisation driving national child protection reform, which manages National Families Week.

Executive Director, Transport Infrastructure Planning Division: Louise McCormickLouise is a Chartered Fellow and Senior Civil/Structural Engineer with 15 years’ experience in the public and private sectors. Louise re-joined the Department of Transport in June 2014, to take up her role as Executive Director for Transport Infrastructure Planning Division. Her experience in the design, construction and management of transport and infrastructure sectors will lead the division in the strategic planning of transport infrastructure needs across the Northern Territory, which underpins the Developing Northern Australia agenda.

Over the 10 years that Louise has been in the Northern Territory, she has managed the delivery of some of the largest transport infrastructure projects in the Northern Territory, including the upgrade of the Victoria Highway Floodplain and the extension of Tiger Brennan Drive from the Stuart Highway to Berrimah Road.

Outside of work, Louise plays an active role within the Northern Division of Engineers Australia. In 2012–13, Louise was the Division President and is currently a National Congress Delegate for Engineers Australia.

Louise’s work has been recognised through a number of industry awards including Young Professional Engineer of the Year for the NT in 2007 and Winner of the 2010 NT Telstra Business Women’s Award for Innovation.

In 2014–15 Louise focused on the newly restructured Transport Infrastructure Planning Division and forward planning of the road network and transport assets to support economic development in both urban and regional areas across the Territory.

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Government Chief Engineer: Ernie WankaErnie started with the Department of Transport and Works, Public Works in May 1979. Ernie brings a wealth of knowledge and experience to the Department of Transport, with 30 years working with the Northern Territory Roads. During this time he has developed strong relationships with communities, councils and associations throughout the Territory, and affiliations with the Australian Government Department of Infrastructure and Transport as well as Infrastructure Australia. As the Government Chief Engineer he has been responsible for driving major road construction projects and strategic planning for the urban and rural road networks in the NT. Ernie has also been a Director on the Board of the Northern Territory Rugby League. Ernie retired from the public service on 3 July 2015.

A/Executive Director, Transport Planning and Legislation: Simon SaundersSimon has 20 years’ experience working across the wide range of transport regulatory and policy areas within the Northern Territory Government.

During this time he has provided valuable input into national regulatory reform, including implementing national regulators for marine and rail safety, as well as representing the Territory in national forums and developing strong relationships with national and industry bodies.

With technical background in vehicle safety standards Simon played a key role in developing and implementing the Territory’s innovative high productivity vehicle scheme, which has delivered significant productivity gains without compromising safety. In 2014–15, he has played a key role in reforming legislation for recreational vessels.

Simon holds technical qualifications in mechanical engineering and a graduate certificate in Public Sector Management.

Executive Director, Aviation, Logistics and Industry Development: Lisa BraidLisa Braid joined the Department of Transport in May 2014 to help deliver the Northern Territory Government’s Roadmap for Integrated Transport Planning and Investment. Lisa’s career in the public sector spans 12 years in both state and federal governments, covering a broad range of portfolios including land rights, drugs and alcohol, housing and homelessness and child protection.

Prior to joining the Department, Lisa was part of the executive team in the Northern Territory Department of Children and Families, having also worked for the Departments of Housing and Chief Ministers since moving to the Territory in 2008. Lisa holds a Bachelor of Laws/Asian studies and Arts and is completing a

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Masters in Applied Social Science (Management). Lisa left the Department to take up a promotion in NSW on 28 July 2015.

Director, Office of the Chief Executive: Inga DavisInga Davis commenced as the Director of the Office of the Chief Executive in March 2014 after 12 years working for the Australian Government in Canberra.

Inga holds a Bachelor of Science degree with honours as well as a postgraduate Diploma of Government. Inga’s time with the Australian Government was focused on working across a broad range of domestic and international natural resource management issues including fisheries, agricultural support programs and being Australia’s lead negotiator on agriculture and forestry under the United Nations Framework Convention on Climate Change.

Inga brings with her valuable experience working as an Executive Officer to the Chair and Chief Executive Officer of the Clean Energy Regulator and also as a Departmental Liaison Officer working to a former Australian Government Minister.

In her spare time, Inga is an athlete and coach and has represented Australia twice as a member of the Australian Dragon Boat Team Organisation.

Inga has spent the last 12 months looking for ways to improve and streamline systems and processes for reporting.

A/Executive Director Business Services: Sarah TempleSarah is the Executive Director Business Services a role she commenced in September 2014. Sarah has experience in strategic planning, change management and restructuring, organisational development and leadership and through her former role as Director Human Resources has represented the department on various negotiations including at enterprise level. Sarah leads a multidisciplinary team of staff providing corporate services to the department and shared services to client agencies and has experience managing teams in human resource management, financial management, communications and media, information management and technology, procurement property and governance.

Prior to joining this department, Sarah spent nine years with NT Treasury as their Manager Human Resources. During this time Sarah was also Director Corporate Support, Departmental Liaison Officer and was a Financial Analyst with Treasury.

Sarah joined the NTPS in 1993 as a graduate with the Office of the Commissioner for Public Employment and holds a Bachelor of Business in management and accounting.

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ACTIVITIES, PRIORITIES AND ACHIEVEMENTS

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INTRODUCTION

Transport is a key enabler to achieving the Northern Territory Government’s vision to develop Northern Australia into a trading route and logistics hub, with Darwin as its capital city.

Economic and social development is not possible without appropriate transport planning and investment in transport infrastructure, logistics and services. Our roads, rail, aviation and port facilities are the links to future economic and social opportunities.

The Department of Transport’s Strategic Plan 2014–2018 supports the Northern Territory Government’s priorities to deliver safe, efficient and sustainable transport systems that meet community needs, through strategic transport planning, regulatory and customer services.

The Department of Transport Annual Report 2014–15 goes beyond focusing on the

individual achievements of its divisions, and concentrates on collaborative efforts to provide quality transport services and systems to support the growth of the Northern Territory.

Reflecting the Department’s Strategic Plan, the Department’s achievements are reported against the following key priorities:

� Unlocking potential in our regions through strategic planning to enable infrastructure, services and major projects to improve social and economic outcomes in our regions

� Supporting industry development to respond to the needs of industry and increase economic opportunities by improving transport access and infrastructure

� Reforming our transport services to streamline, improve and make our transport services safer and more sustainable

� Servicing our customers to make it easier to access and use transport services across the Northern Territory

� Developing the North by delivering on priority strategies identified in the Integrated Transport Planning and Investment Roadmap to drive economic growth and social development in Northern Australia.

Activities, Priorities and Achievements

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Work in these key areas continued in consultation with key stakeholders including the community, industry and our border neighbours in Australia and Asia.

Performance reporting of targets versus actual outcomes for the Departments output groups is included in the appendix.

UNLOCKING POTENTIAL IN OUR REGIONSThe Northern Territory Government identified a lack of adequate infrastructure and services as impacting on the economic sustainability of remote communities across the Northern Territory. This impacts on the ability of communities in these regions to contribute to the Territory’s economy.

Improving the condition and reliability of infrastructure within regional and remote communities will help stimulate economic development while delivering economic and social benefits in our regions. Expanding transport services and infrastructure can also help provide job opportunities for Territorians living in remote areas.

The Department of Transport is working to unlock the potential in our regions by addressing the gaps and barriers to improving infrastructure and transport services.

� REGIONAL INFRASTRUCTURE STUDY

Using comprehensive consultation with stakeholders, the Regional Infrastructure Study looked at the economic drivers for the Northern Territory for the next 30 years and identified the infrastructure needed to help drive and support growth. The study is the first comprehensive infrastructure plan to cover transport, essential services and community infrastructure in a regional context.

The study complements the Northern Development White Paper and an audit for Infrastructure Australia to accelerate Northern Australia’s growth.

Individual economic drivers were identified as resources, tourism and agriculture, with transport as an enabler to support these industries.

The Australian Government provided $1.2 million for the project with the Northern Territory Government contributing $300 000 in “in kind” support. The project was coordinated by the Department and was led by the consortium Momentum.

The Regional Infrastructure Study looked at the economic drivers for the Northern Territory for the next

30 YEARS and identified the infrastructure needed to help drive and support growth

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The aim of the project was to develop a Regional Infrastructure Plan to support the economic and social development of the Northern Territory, identifying infrastructure priorities for:

� transport – roads, rail, ports, barges and aerodromes

� essential services – power, water, wastewater and telecommunications

� community – schools, stores, health clinics, trade training centres, housing and police stations.

The study consolidated all existing data and information on the economy and regional infrastructure of the Northern Territory and developed evidence-based support for infrastructure funding applications to Infrastructure Australia as well as private investment.

The methodology used involved looking at the social and spatial benefits of infrastructure such as housing, stores, recreational facilities and sporting grounds, as well as the jobs generated by providing infrastructure.

The study involved wide consultation with 348 stakeholders, including interviews and five workshops to capture regional ideas, concerns, barriers to investment, opportunities and potential sources of investment. Key stakeholders included government staff, companies operating in the Northern Territory, North Australia Development Office, Regional

Economic Development Committees, regional shires, councils, non-government organisations and land councils.

Key issues identified during the consultation were:

� roads, remote and energy

� funding, the role of government and private sector

� development on Aboriginal land

� regional economic development, including scale and pace of development.

Stakeholders identified priority infrastructure projects including the:

� Tanami Road

� Plenty Highway

� Arnhem Highway/ Oenpelli Road

� rail capacity upgrades

� upgrades on the Tiwis Island and Ti Tree area.

The Regional Infrastructure Study outcomes will inform key strategies being delivered by the Department under the Integrated Transport Planning and Investment Roadmap, including:

� Roads and Bridges Strategy

� Freight and Logistics Strategy

� National Regional and Remote Transport Infrastructure and Services Strategy

� Aviation Strategy.

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Our People

Director TIPD Geoff Horni, Chief Government Engineer Ernie Wanka with his public service medal award and Chief Executive Clare Gardiner-Barnes

ERNIE’S 36-YEAR CAREER RECOGNISED

After 36 years in the public service, Chief Government Engineer Ernie Wanka was recognised for his efforts as part of the Australia Day honours list in 2015. Ernie has had a long and distinguished career with the Northern Territory’s public service helping to manage the Northern Territory’s 22 000 kilometre road network.Ernie began his career as a young engineer with the NT Public Service in 1979. Since 1991 he was Executive Director of the Transport Infrastructure Planning Division and Road Network until 2014 when he was appointed Chief Government Engineer overseeing strategic policy development and major infrastructure projects.

Ernie said highlights included early projects in his engineering career including working on the Royal Darwin Hospital, Berrimah Police Station and Charles Darwin University, as well as countless local roads, aerodromes and barge landings.

The Public Service Medal was awarded to Ernie for his outstanding public service to infrastructure planning in the Northern Territory, particularly the design, construction and maintenance of the road transport network.

“I felt very honoured to be nominated for and to win this award,” Ernie said. “Over the years I have worked with lots of talented and hardworking public servants and to be awarded in this way is humbling.

“I am proud of the development in the Northern Territory over that time, especially the road network over the past 15 years. I am proud of the working relationship with local land councils and Indigenous people in my early career while working in Aboriginal communities, which is a significant achievement.”

“The best part of my job is to see the Territory when you manage the roads – I’ve been to places in the Territory where not many people have been.”

Ernie officially retired from the NT Public Service in July 2015.

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� RECORD PROGRAM FOR REGIONAL ROADS

Preparations were made and construction began to upgrade six regional arterial roads this year as part of one of the biggest road programs ever to be delivered by the Department of Transport.

Arnhem Link Road

Central A

rnhem Road

Roper Highway

Port Keats

Road

Buntine Highway

Santa Teresa Road

$40m

$15m

$11m

$10m

$10m

$20m

The $106 million Regional Roads Productivity Program will see six key roads improved to unlock economic opportunities, support local industries and increase access to communities in regional and remote areas in the Northern Territory.

The upgrades will help connect these main arteries of our Territory as well as support local industries such as tourism, cattle, mining and resources sector, in partnership with the Australian Government.

The Department has been working with its stakeholders, including the cattle and mining industries, land councils and communities to deliver this large scale road program. The six regional roads being upgraded include:

Roper Highway - $40 million � The design phase of a $40 million upgrade to build two high level bridges over the Roper and Wilton Rivers has been completed with a construction contract due to be awarded in September

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2015. The major roads project also includes strengthening and widening the highway to improve access to Ngukurr. It will be delivered using a managing contractor for the first time and construction is due to start in late 2015. The project is only the second of its kind to involve a land swap, which is being negotiated with the Northern Land Council.

Port Keats Road - $20 million � A large project to upgrade and realign sections of the Port Keats Road is on track after the contract was awarded in April 2015. Construction has started on site, 108 kilometres from the Daly River Bridge, and is due to be completed in December 2015. The project will reduce the impact of floods along the Moyle River floodplain and improve all year round access for the communities of Wadeye, Peppimenarti and Palumpa.

Buntine Highway - $10 million � A construction tender has been released to upgrade four sections of the Buntine Highway, with construction to start mid-2015. This project will see sections of the road strengthened, widened and sealed, subject to areas affected by sacred sites, in negotiation with the Aboriginal Areas Protection Authority. The Australian Government will fund $9 million of the project costs.

Central Arnhem Road - $15 million

� Construction of a bridge over Rocky Bottom Creek crossing will be the last crossing to be upgraded to reduce the impact of flooding on the Central Arnhem Road. The new bridge has been designed and the tender was due to be awarded in August 2015. This project is being done in conjunction with a social infrastructure mapping study by the Department to look at priority crossings on the road and potential economic and social impacts and opportunities for upgrading the road, which is the main access to Nhulunbuy and Arnhem Land. The Australian Government will provide $14 million in funding for the project.

Santa Teresa Road - $10 million

� Construction has started to upgrade the Yam Creek crossing and to seal the Santa Teresa Road, to reduce the impact of flooding. The project, which received $8 million from the Australian Government, is due to be completed later in 2015.

Arnhem Link Road - $11 million

� The scope of this project is under review.

An important element of this program is that a new construction projects policy requires contractors to employ

Each of these projects began in 2014–15 and will continue to be delivered through to the 2017–18 financial year.

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Indigenous people through an Indigenous Employment Provisional Sum, which provides additional money to pay Indigenous employees.

� NEW RAIL LINK OPTION

The option for a new rail link between the Northern Territory and Queensland is being explored in a $1 million scoping study.

The Department of Transport is represented on the Joint Steering Committee looking at an eastern rail link between Tennant Creek and Mount Isa in Queensland. The Northern Territory Government announced $1 million in the 2015 Budget for a scoping study looking at the potential new 600-kilometre rail link, which could boost development in Northern Australia.

The Committee will look at the benefits and costs of the

rail connection, which could involve a standard gauge rail link to the Port of Darwin from north-western Queensland via the AustralAsia line. The link would open up new areas of the Northern Territory for industries such as mining, resources and tourism and increase investment.

The scoping study investigates the possible corridor acquisition and construction of the rail spur, with a business case expected to be made for the venture within two years. The project could also include pipelines and telecommunications infrastructure.

If a good business case is made for the venture, the next steps would be environmental impact studies, geotechnical investigations, engineering design, sacred sites and heritage clearances, along with a costing and construction plan.

The Northern Territory Government announced

$1 MILLION in the 2015 Budget for a two-year feasibility study looking at the potential new

600-kilometre rail link

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Our People

Executive Director, Louise McCormick

CUTTING RED TAPE

The dedicated team at the Transport Infrastructure Planning Division has reinvented itself as a one-stop-shop to reduce red tape in planning when it comes to roads and transport. Headed up by Executive Director Louise McCormick and Director Corridor Access and Land Use Management Garry Fischer, the team has made huge gains in getting ahead of transport infrastructure planning and focusing on strategic planning.

Louise started with the Department of Transport in her new role in June 2014 and has restructured the division to concentrate on strategic planning and cutting red tape for development in the Northern Territory.

The first job was to identify the large shortfall in staff to help address an increasingly large budget for transport infrastructure planning, with Louise quickly identifying and recruiting 12 additional staff.

With a budget that has tripled in the past 10 years and development applications doubling in the same period, there is a huge demand for strategic planning services. A key challenge of the restructure was coping with the division’s normal workload at the same time.

“We need to get additional resources straight away because we can’t have staff working seven days a week,” Louise said. “I am happy to see I can make a difference with work life balance for staff.”

As a result the division has received fewer complaints from industry and an appreciation for their renewed customer focus.

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� SAFE DRIVING IN COMMUNITIES

More Indigenous Territorians across the Northern Territory now have a “passport to opportunity” and potentially a job after earning their driver licence through the DriveSafe NT Remote Program.

Unlicensed driving is a major social and justice problem for Aboriginal and Torres Strait Islander people, especially in remote communities. Not having a driving licence can be a barrier to training and job opportunities.

The Department of Transport’s program to close the gap on Indigenous disadvantage in more than 42 remote communities aims to unlock their social and economic potential by teaching people to drive and achieve their driver licence. It is also a key instrument to combatting the high Indigenous road toll on Territory roads, with 24 Indigenous people dying on Territory roads by December 2014.

DriveSafe NT Remote provides a licensing pathway for those in rural communities who are geographically disadvantaged to accessing learner driver services. The program helps people in remote communities become competent and safer drivers, increases their employment opportunities, mobility and ability to participate in important cultural events and further their education.

The program, which began in 2012, offers theory classes and driving lessons for learner drivers, tests for provisional licences and road safety education in the communities. The program delivers Motor Vehicle Registry services including registration, licence renewals and vehicle inspections. The program teaches safe driving messages about drink driving, seatbelts, overcrowding in vehicles, speed and first aid and vehicle roadworthiness.

The DriveSafe NT Remote Program has had a huge effect on the remote Northern Territory community of Wadeye. In May 2015, the program delivered driver education and licensing services to Wadeye with fantastic results.

About 130 people were issued with learner licences and three people upgraded their licences during the program.

The Department of Transport worked with local stakeholders to deliver the driver training,

Left to Right: Bernadine Kungul, DriveSafe NT Remote Project Coordinator Tamara Sheppard, Prudence Pupuli, Assumpta Gumbaduk, Elizabeth Gumbaduk, Joanne Tipiloura and Beanna Tunmuck.

www.transport.nt.gov.au/safety/road-safety/our-statistics

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including local police, Thamurrurr CDP, Palngun Wurnangat Association, Thamurrurr Rangers, Wadeye Health Clinic, Our Lady of the Sacred Heart Thamurrurr Catholic School and the Department of Correctional Services, to deliver driver training.

Wadeye is just one of the 42 communities benefiting from the DriveSafe NT Remote Program. The Department has started mapping the successes of the program with an interactive map that can show how many people have achieved their driver’s licence in each community.

The DriveSafe NT Remote program won an Innovation Award at the Australian Business Awards in July 2014, and was funded for $1.5 million by the Northern Territory Government in 2014–15.

In 2014–15 the Department collaborated with the Northern Territory Government’s Department of Correctional Services to deliver the program in correctional facilities in

Darwin, Alice Springs and Gove to help prisoners learn to drive, as part of their rehabilitation.The aim is for people released under the Sentenced to a Job program to gain their driver licence. In March 2015 the first six participants graduated from the program at the Alice Springs correctional facility. As part of the collaboration, correctional officers are undergoing training to become driver education instructors.

Discussions are underway with Department of Education to also roll out the program in the Vocational Education and Training in Schools Program at Tennant Creek High School.

DriveSafe NT Remote – results to 30 June 2015

Learner permits issued

Provisional licences issued

Driving lessons

Birth certificates

Days in community

MVR* activities

Cumulative Total 2531 746 1988 926 926 825

*Motor Vehicle Registry **Financial year to date

23

Community L’s Issued

P’s Issued

Alyangula 3 1

Angurugu 8

Belyuen 6

Bickerton Island 1

CDU Katherine 1

Galiwinku 6 1

Gapuwiyak 3 2

Groote Eylandt 1

Gunbalanya 11

Hermannsburg 4

Jabiru 6 7

Kalano 4 1

Katherine 1

Kintore 13

Maningrida 46 4

Milikapiti 2 2

Milikapiti (Sna. 1 1

Milingimbi 29 3

Mudginberri 3

Nguiu 18 4

Nguiu (Wurru.. 31 7

Ngukurr 23 2

Norforce 7 1

Numbulwar 14 2

Nyirripi 5

Pirlangimpi (.. 2

Ramingining 38 2

Santa Teresa.. 12 1

Santa Teresa.. 6

Ski Beach 1

Ti Tree 13 1

Titjikala 10

Wurrumiyanga 2

Umbakumba 6

Wadeye 8

Whistleduck 5

Wilora 8

Yirrkala 21 1

Yuelamu 5

Yuendumu 4

Grand Total 388 43

DriveSafe Remote NT Summary

L’s Issued 388

P’s Issued 43

Evidence of Identity/Eligibility

Learner Licence Theory

In-car practical experience

Practical Driving Test

10 year Licence

AlyangulaAngurugu

Bickerton Island

CDU Katherine

Galiwinku

Gapuwiyak

Groote Eylandt

Gunbalanya

Hermannsburg

Jabiru

Katherine

Kintore

ManingridaMilikapiti Milingimbi

MudginberriNguiuPirlangimpi (..

Titjikala

RaminginingWurrumiyanga

Ngukurr

Santa Teresa..

Umbakumba

Wilora

Numbulwar

Wadeye

Yirrkala

Nyirripi Ti Tree

YuelamuYuendumu

Belyuen

24

� UPGRADES TO LINK TIWI ISLANDERS

A new bus service is planned for Melville Island to open up job, education and training opportunities for Tiwi Islanders.

The Department of Transport is establishing a regular passenger bus service on Melville Island between the community of Paru, in the south, connecting to the communities of Pirlangimpi and Milikapiti. The Government committed $1 million in 2014–15 to buy two four wheel drive buses to set up the all-weather service, with another $407 000 to operate.

The bus service will provide transport for students and the community between the Tiwi College and the Pickertaramoor Road Monday to Friday during school terms.

The Department is working with Tiwi Enterprises and the Tiwi Land Council to find a local operator to start the bus service in 2015. The service will help create jobs and expand potential tourism ventures on the island, with an important link to the Wurrumiyanga ferry service to Darwin.

The Northern Territory Government has committed $1.4 million to establish a regular bus passenger service for residents and potential tourism ventures on Melville Island.

25

� SWIFT RESPONSE TO TWIN CYCLONES

The Department’s quick response was crucial in reducing the social disruption and economic impact in the affected remote communities.

In February 2015, Cyclone Lam hit a number of communities in Arnhem Land, including Galiwinku, Milingimbi and Ramingining, as a Category 4 storm. This cyclone was followed closely by Cyclone Nathan, which hit the remote coast again in March 2015.

Staff coordinated two evacuations of the community of Warruwi on South Goulburn

Island during the cyclone effort. The first evacuation on 19 February 2015 saw 443 residents evacuated from Warruwi and temporarily housed in the Foskey Pavilion at the Darwin Showgrounds.

Due to the Department’s emergency response training, staff were able to quickly coordinate the logistics for the emergency relief effort from the Northern Territory police headquarters at the Peter McAulay Centre in Darwin.

The biggest challenge was the community’s small airstrip, which limited the size of planes used to evacuate residents. After the call was made to evacuate everyone in the community, the Department swiftly responded by chartering plane, helicopter and bus companies to begin the evacuation. A total of 42 flights were coordinated by the Department, which also worked closely with local welfare groups to help set up urgent shelter for the evacuees.

The evacuees were returned to their community on 22 February 2015, requiring another big effort from Department employees. More than 20 staff worked 12-hour days, seven days a week and led the logistics for two weeks after the first cyclone hit.

The Department of Transport played a significant role in the response and recovery for remote communities affected by two cyclones that hit the Arnhem Land coast within weeks of each other in early 2015.

The first evacuation on 19 February 2015 saw

443 RESIDENTS evacuated from Warruwi

and temporarily housed in the Foskey Pavilion at the Darwin Showgrounds

26

When Cyclone Nathan hit the Arnhem Land coast on 23 March 2015 as a Category 1 storm, the cyclone again crossed through Nhulunbuy, Elcho Island and impacted on Warruwi, Milingimbi and Ramingining. The Department mobilised staff to coordinate a second evacuation of 420 people from Warruwi community on Goulburn Island to again take shelter at the Darwin Showgrounds and helped coordinate logistics.

Department staff took the opportunity to provide some driver training through the DriveSafe NT Remote program to the evacuees. The Department also organised the public tender for transportation of temporary accommodation units to Elcho Island and further supplies in the wake of both cyclones.

Territory Emergency Management coordination group in action at the Peter McAulay Centre during Cyclones Lam and Nathan including Department of Transport’s Inga Davis (left), Pantelitsa Rigas, Bernie Ingram and Shaan Novak.

The communities of Galiwinku, Milingimbi and Ramingining were hit hard by the cyclone, with significant damage to infrastructure. With airstrips closed, staff helped coordinate flights for emergency crews as well as channelling supplies through barges and airplanes out of Darwin to the communities.

27

� SHORT FILMS PROMOTE ROAD SAFETY

A short film called “Dirt Track Disasters” is the latest tool in the fight to keep Territory roads safe and reduce the Indigenous road toll in remote and regional communities.

The film was entered into the inaugural 2015 Road Safety Short Film Competition and announced at the Barunga Festival in June 2015. The Department of Transport partnered with Skinnyfish Music to launch the film competition as part of a road safety campaign for Indigenous communities.

The competition promotes and develops creative road safety messages to be developed into a film by people within regional communities and towns. Schools, students and groups are encouraged to get behind a camera or smart phone to win part of the $4000 prize money spread across several prize categories.

The aim is to help spread the road safety messages on drink driving, wearing seatbelts, obeying road rules and driving safely.

Barunga Festival – Road Safety Song competitions

28

SUPPORTING INDUSTRY DEVELOPMENTThe Department of Transport recognises the need to work hand in hand with local industry and the community to deliver transport services and infrastructure that supports industry development. In 2014–15 the Department supported industry by improving roads, streamlining development processes and creating business opportunities in the aviation industry.

The Department works to improve transport access and infrastructure for local industries such as tourism, agriculture, construction, mining and resources sector and is committed to working in partnership with its stakeholders.

� NEW DEVELOPMENT GUIDELINES CUT RED TAPE

The Department plays an important role in the development process for all projects that impact on the Territory road network and has streamlined development applications.

In 2014–15 the Department’s Transport Planning Infrastructure Division created the first set of formal Development Guidelines to help developers and planning consultants understand how projects need to cater for any impact on the road network, including transport access, traffic, capacity or safety.

The Guidelines provide check lists, forms and shortcuts to look at transport and road access before the drawings are done, saving time and costs for developers at the early planning stage. They apply to any development or infrastructure that impacts on the road network, including roads and road reserves, or that will ultimately be transferred to Northern Territory Government control.

With the Development Guidelines helping to cut red tape and increase efficiency for the development assessment process, the Department received a record number of applications in the past year.In June 2015 the number of development applications increased by 22 per cent compared to the number in June 2014. The sustained increase in applications over the past two years also reflects the local building industry confidence in response to major regional development.

As the pressure grows for the Northern Territory to continue to develop, the Department of Transport is helping to cut red tape and bureaucracy to support local industry.

29

The number of development applications received by the Department between 2009 and 2015.

Month 2009 2010 2011 2012 2013 2014 2015June 186 228 185 210 224 368 227*

D E P A R T M E N T O F T R A N S P O R T

Development Guidelines for Northern Territory Government Controlled Roads

June250

200

150

100

50

02009 2010 2011 2012 2013 2014 2015

Year

Development Comments ‘Year to Date’

The Department developed the guidelines in consultation with the Northern Territory Government’s Construction and Development Advisory Council and local industry representatives including the Urban Development Institute of Australia. The Guidelines are also readily available on the Department’s website.

*(6 months)

30

� NEW BUSINESS MODEL FOR KATHERINE AIRPORT

The Katherine Airport has turned its fortunes around after the Department of Transport coordinated a new business model to improve the airport’s financial position so it can continue to support the local aviation industry.

Since the early 1990s the Katherine Town Council has managed and maintained the civilian terminal building, taxiways and aprons and leased a portion of adjoining land from the Australian Defence Force.

The Council raises revenue from the airport’s aviation operations but in April 2015 the Council became concerned in regard to the cost of operating the airport.

The Department assisted the Council and commissioned

a consultant to analyse the airport’s accounts and business practices and put together a viable business model so the Council could continue to operate it. The business model looked at raising fares, which had remained the same for the past 20 years, and the depreciation levels being used by the Council.

The Katherine Town Council accepted the business model and agreed to continue to operate the airport under the new model.

� VIRGIN BEGINS SERVICE TO ALICE SPRINGS

Virgin Australia began flights between Darwin and Alice Springs in October 2014 to support local businesses and help increase access for industries such as tourism.

The service expanded after consultation with the Northern Territory Government and Department of Transport and will see three flights operating between Alice Springs and Darwin. Virgin has introduced competition to a service that had been dominated by a single carrier for more than a decade, potentially creating downward pressure on prices.

The Department is working with Virgin Australia to provide tourism and Northern Territory Government travel with advice that can help the carrier to continue to plan its network.

Photo - Courtesy of NT Airports Pty Ltd

Our People

31

Director Alex Rae at the Darwin Bus Service Farewell

OUTSOURCING PROJECT A SUCCESS

The Transport Services division has achieved an impressive first for the Department of Transport after a successful major outsourcing project. The Darwin Bus Service transfer to commercial operator Territory Transit in 2014–15 was a huge project for the division. Transport Services Executive Director Paul Rajan paid tribute to his team, and in particular Alex Rae, Director of Public Transport, who was committed full time to the transfer and led the project.

“If you have something that big, you have to put someone on it full time,” Paul said. “It is a significant achievement to manage that project successfully, which involved a huge amount of commitment from Alex and my team.”

Alex led the intensive 12-month project including the public tender, contract award and transition of the bus service. The transfer of business was completed under the Fair Work Act and involved a significant change management process. Alex used his experience as a long term employee with the Department to ensure the transfer was a success.

One of the biggest challenges was to orchestrate the transfer without additional resources, while making sure the bus service continued to operate effectively during the transfer.

“Achieving major reform while maintaining operations is a big challenge, especially when you are selling these reforms to stakeholders who have high expectations,” Paul said. “It was a major change in passenger transport and it was a big commitment from staff.”

32

REFORMING OUR TRANSPORT SERVICESThe Department of Transport continually reviews how it does business and delivers services in the Northern Territory and is always looking for ways to streamline processes, increase efficiencies, remove regulatory red tape and make transport services safer.

In 2014–15 the Department completed two large projects to improve passenger transport, simplified legislation covering ports and modernised regulations for recreational vessels across the Northern Territory. Improving road safety through measures targeting youth was another focus this year.

� SEAMLESS TRANSFER FOR BUS SERVICE

Territory Transit now runs the Darwin Bus Service after the Department of Transport successfully transferred its operations to the new commercial operator in 2014, achieving important cost efficiencies for the Northern Territory Government.

The business transfer is the largest outsourcing project coordinated by the Department, which was initially announced in December 2013 and continued until the final hand over in October 2014. Transport Services Executive Director Paul Rajan said the project was

transferred so successfully there was little negative feedback from passengers or the general public.

“It has been very smooth for the traveling public, with no changes to routes, fares or schedules,” Paul said. “The transition was seamless and testament to the success was that the public didn’t even realise there was a new operator.”

The Department consulted closely with staff and union representatives early in the process to allay any fears about job security and support them through the transfer. The Department established committees for staff and union representatives and held one-on-one meetings with staff on the ground to keep them informed throughout the process.

“As part of implementing this decision, we consulted with drivers and the union early,” Sarah said.

Employees and their family were provided access to financial

Business Services Acting Executive Director, Sarah Temple said it was important to start talking to staff straight away.In 2014–15 the

Department completed

TWO LARGE PROJECTS to improve passenger transport: Darwin Bus Transfer and the Transport Safety Review

33

advice counselling and given access to employee assistance during the transfer.

Australian-owned company Transit Systems Pty Ltd was awarded the tender over five companies after a rigorous process in July 2014. Operating as Territory Transit, the new provider had staff on the ground during a three-month transition phase to get to know drivers and other staff.

Guided by the Fair Work Act, all permanent staff were offered employment by the new operator. Temporary staff continued working until their contract date before applying for job opportunities with Territory Transit, and quite a few were given jobs.

Territory Transit purchased the bus fleet from the Northern Territory Government, including spare parts and fuel, and now leases the depot. Territory Transit will operate the Darwin

Bus Service for five years for $53.95 million, with the Department estimating it will achieve a 13 per cent cost efficiency to the tax payer per kilometre by transferring the business. The Department is still responsible for the management of the bus network through the setting of schedules, fares and timetables.

“It allowed us to separate the role of government as a regulator, funder and operator,” Paul said. “The private sector is more agile and able to respond to demand.”

Territory Transit was commended for their commitment to managing the transition on the ground with staff.

“Territory Transit did a great job managing the transition,” Sarah said. “It was a major operational project for the Department and is a great example of team work between the Department of Transport, Business Service and Territory Transit.”

The transition included an appropriate farewell, with a celebration for almost 100 past and present Darwin Bus Service drivers, staff and their families, along with the launch of a book recording the history of the bus service.

Darwin Bus Service Staff in 1993

34

Our People

NEW TRANSIT SAFETY OFFICERS

The Department of Transport welcomed 14 new Transit Safety Officers (TSO) to the ranks after a transport safety review of the local bus network. The TSO’s role is to improve safety and security for passengers and drivers on the Darwin Bus network. The officers underwent comprehensive training in a range of subjects including tactical communications, diversity, alcohol and drug awareness, interview techniques and the judicial system.

The Transit Safety Officer uniforms and vehicles were rebranded to create new, distinctive and highly visible look that makes them easily identifiable by the public. Reactions from the public have been good with people reporting that the presence of the officers has made them feel safer at the bus interchanges.

35

� TRANSPORT REVIEW IMPROVES SAFETY

The Department of Transport finalised a comprehensive review of safety in mid 2014, including:

� analysing security and safety issues

� consulting with bus drivers, other staff and passengers

� assessed work health and safety issues.

Passenger Transport Services partnered with Business Services for the consultations and coordinated the review, with

40 separate groups of staff and stakeholders through meetings and focus groups.

The review prompted 25 recommendations to improve safety, including:

� permanent security guards at Casuarina, Darwin City and Palmerston interchanges

� CCTV upgrade at all interchanges

� additional transit officers and vehicles

� GPS locators and duress alarms to track incidents on buses

� media campaign “Super Simple Stuff” to educate passengers on the Code of Conduct on public bus network

� work with police and Larrakia Night patrols to address issues

� introducing multi-channel communications radios on buses with direct contact to police

� digital App for transit officers to report incidents electronically

The Department of Transport has acted on more than 20 recommendations to improve safety on the Darwin Bus Network after a bus driver was assaulted in early 2014.

36

� new recording technology

� review the out of hours safe bus travel for students.

The Northern Territory Government committed more than $1.07 million additional funding to improve security on the bus network and help implement the key recommendations. The Department is implementing recommendations in 2015 including:

� developing a multi-media awareness campaign about bus safety and the role of the new Transit Safety Officers (TSO) to start in the 2015–16 financial year

� duress alarms and new digital radios have been installed on all buses in April 2015 and drivers provided with training by the end of July 2015

� discussions with the Department of Education about reviewing out of hours safe bus travel for students

� developing standard operating procedures and deliver driving training on radio calls

� employed and trained 14 TSO to help monitor the bus network and respond to any incidents.

The Department’s Transport Policy and Legislation Division also began a review of the Public Transport (Passenger Safety) Act and Trespass Act to assess the powers of TSO and the ability to ban serious and repeat offenders from using the bus network.

Transit Safety Officers at work

More than

$1.07 MILLION additional funding to improve security on the bus network

37

� PORT LEGISLATION REVIEWED

The Department’s Transport Policy and Legislation Division worked with the Department of Chief Minister to develop the Port Management Act, which sets out a framework to ensure ports across the Territory are operating safely. The Bill created a Regional Harbourmaster position, Assistant Harbourmaster and personal assistant positions within the Department of Transport in March 2015. The Harbourmaster Unit is responsible for setting safety standards, monitoring compliance and intervening in operations if required.

The new Ports Management Act provides a new regulatory framework for the Port of Darwin and for the first time provides the ability to designate and regulate other ports as required. The new Act will ensure the regulatory framework is applied to all existing and future ports in the Northern Territory.

While port operators continue to be responsible for day-to-day operation of ports, the Regional Harbourmaster works with operators to resolve safety concerns and take action to intervene as necessary in cases of emergency, threat of death or serious injury, loss or serious damage to property or potential harm to the environment.

Under the legislation reform in January 2015, the Department

took over managing the Frances Bay Mooring Basin, Hornibrooks Pontoon and Sadgroves Creek moorings and Fisherman’s Wharf, along with its five staff.

� NEW SAFETY RULES FOR BOAT USERS

The Department of Transport consulted with stakeholders, including the Amateur Fishermen’s Association NT, Water Police and remote communities, on a discussion paper proposing changes to existing recreational vessel regulations and simplifying aspects of the regulations.

Previously, Water Police were unable to issue infringement notices to recreational boaters doing the wrong thing or were not equipped with the correct safety gear. The Department’s Transport Services and Transport Policy and Legislation Divisions drafted the new regulations, which transformed and enforced the rules for operating recreational vessels in Territory waterways for the first time.

New rules have been introduced to improve safety for recreational boat users and fishers on Northern Territory waters from May 2015.

38

The key aim was to improve safety for Territorians and visitors who use the Territory’s waterways, whether they are the owner, operator or passenger of a recreational vessel, or someone who is swimming at the beach.

The changes to the regulations should achieve an improved level of compliance by boat operators, with simplified requirements that are easy to understand and comply with, as well introducing an infringement scheme that can be enforced by Water Police.

The new regulations came into effect on 1 May 2015 and included:

� introducing the Marine Infringement Notice Scheme

� fitting an Australia Builders Plate to all new vessels detailing the number of passengers the vessel can carry and loading capacity

� mandatory carriage and registration of Emergency Position Indicating Radio Beacons (EPIRBs)

� modernising the safety gear requirements, such as digital rather than paper charts

� simplifying the categories of water in the Northern Territory to determine safety gear according to where the boat is travelling, such as offshore or in a river.

The Department’s Communications team helped coordinate the large publicity campaign “Know What Floats Your Boat” when the legislation changes came into effect. The information and changes were well received by the boating community. The campaign underlined the responsibility of people in control of small pleasure craft with the underlying message “When you’re skipper, you’re responsible”.

Our People

39

Darwin Harbourmaster Tony O’Malley joined the Department of Transport team in March 2015

CAPTAIN O’MALLEY AT THE HELM

Captain Tony O’Malley was officially appointed the Darwin Harbourmaster by the then Minister for Transport Adam Giles in February 2013, following a career with the Department of Defence and as former Deputy Commander of Northern Command. Tony was raised in Sydney and went to Sydney Grammar School, before joining the Royal Australian Navy while completing a Bachelor of Arts degree in Philosophy from the University of New South Wales.

Tony has held senior management positions within the Department of Defence. Most recently he was the Chief of Staff, Headquarters Northern Command and Deputy Commander Northern Command. Captain O’Malley has served in operations in Fiji, Kuwait, Somalia, Bougainville, the Solomon Islands, Timor Leste and Iraq.

He has a Masters degree in Management and Defence Studies from the University of Canberra and Graduate Diplomas from the University of New South Wales and University of Wollongong.

40

� ROAD SAFETY TARGETS YOUTH

The Department introduced a number of road safety initiatives to educate young drivers on the importance of driving safely to stop people learning fatal habits early on.

In May 2015 the government introduced an incentive to give a 10-year free open licence for provisional (P Plate) drivers if they had an unblemished driving record during their probationary licence period. The free licence would save drivers $156.The Free Licence for P-Plate Drivers incentive encourages young drivers to abide by the road rules and drive safely. In 2014 there were 6 300 provisional licences issued to young drivers. The new initiative came into effect on 1 July 2015.

The Department targeted young drivers by increasing school visits across the Northern Territory. By March 2015 Road Safety Community Engagement Officers delivered 217 school-based sessions to about 10 600 school aged children across the NT including 78 communities outside of Darwin and Palmerston.

Hector the Road Safety Cat joined the school visits and 34 bicycle education sessions were held at the Parap Road Safety Centre in Darwin and at Newland Park in Alice Springs. The Road Safety Education team joined in with 17 community events and delivered 10 early childhood presentations and 10 educational presentations to workplaces and community groups.

Other initiatives included:

� supporting the Indigenous Road Safety All Stars Band

� partnering with the Territory Insurance Office, AFLNT and Hockey NT to promote road safety and deliver education sessions to players

� partnering with JKC and INPEX to raise public awareness around safely sharing the roads with road trains

� partnering with Rider Awareness NT to raise public awareness about motorcycle safety

Hector and Friends

With a road toll sitting at 24 fatalities at the start of August 2014, the Department of Transport stepped up its road safety campaign in 2014–15.

41

� promoting driving to conditions messages as part of the rollout of an open speed limit trial

� displays at local shows and festivals.

The Department’s Road Safety unit partnered with the Automobile Association of the Northern Territory (AANT) to deliver free safety checks in

Alice Springs and Darwin as part of the “Are You Road Ready?” Campaign for the holidays. The display drew a good crowd with AANT mechanics checking oil, water, wipers, tyres, lights and other components. The main message was to remind people to get their vehicles checked before they head off on a road trip to make sure they return home safely.

42

SERVICING OUR CUSTOMERSThe Department of Transport introduced new measures to simplify access to services and meet community needs in 2014–15 with a great achievement – winning the Chief Minister’s Award for Customer Service.

A second phase of reforms for the Motor Vehicle Registry reduced waiting times and cut red tape for customers, while new technology increased safety and simplified processes.

A major project to develop a new rail overpass in Alice Springs also increased the safety for drivers.

� MVR REFORMS CUT RED TAPE

The Motor Vehicle Registry (MVR) capped off its huge year in 2013–14 with another 12 months of reforms to improve customer service for Territorians.

The MVR kept up the momentum with the second stage of reforms reducing average waiting times for customers from 24 minutes in July 2012 to 10 minutes in June 2014.

The first stage of reforms carried out in 2013–14 included removing registration stickers, pushing inspection times to every five and ten years, then annually, enabling simple renewals at Australia Post outlets, reducing the requirements for eye sight tests and adding a 10-year driver licence option.

In 2014–15 the good work continued with MVR and the Department’s Information and Business Systems introduced innovative technologies to improve online access to motor vehicle and licensing services and streamlined the vehicle inspection process at the Test Shed at Goyder Road, Parap.

Other initiatives introduced in 2014–15 included:

� Australia Post digital mailboxes for renewal notices

� moving light vehicle inspection bookings online

� further enhancements to the NT Rego App to help customers manage licence and vehicle registrations

� authorised inspectors online.

MyPost Digital Mailbox allows residents to receive mail, pay most of their accounts and store important documents in one place, which can be accessed online. MVR partnered with Australia Post in February 2015 to offer the digital mailbox service to Northern Territory residents to receive their licence and car registration renewals electronically. This allows residents secure access to their mailbox account 24 hours a day, seven days a week, anywhere in the world.

MVR Online vehicle booking system enables Territorians to book vehicle inspections online for all light vehicle, trailer and light commercial passenger vehicle inspections in Darwin at the Test Shed and saw an end

Average waiting times for customers reduced from

24 MINUTES

in July 2012 to

10 MINUTES

in June 2014

43

to annoying and time wasting queues. A successful trial of the online booking system on Saturdays saw the system extended to six days a week, so that all light vehicle inspections can be done online five weeks in advance. The new system achieved cost efficiencies with the operating cost only $150 a month.

MVR NT Rego App is a free App for your smartphone or tablet that allows customers to check the registration of their vehicle registered in the Northern Territory and securely manage renewals. The App can also help identify the nearest

authorised inspector for vehicle inspections, update contact details and locate MVR offices. More than 30 000 people have downloaded the App.

Authorised Inspectors Online allows customers to get inspections done by authorised inspectors linked automatically to the MVR system online. Authorised mechanics can fill in the required paper work and upload it to the online system allowing the person to pay for registration to complete the online transaction. This has reduced a service that could normally take one hour to a quick three-minute transaction.

Authorised Inspectors Online has reduced a service that could normally take 1 HOUR to a quick 3 MINUTE transaction

360

The dedication of MVR staff and innovative technologies applied by Information Business Systems continues to revolutionise customer service by reducing waiting times, increasing shop front and online access and creating cost efficiencies.

Innovative thinking •  NT Rego Smartphone app •  20 additional locations

at Australia Post •  new modernised

MOVERS database •  mapping customer

experience

44

MVR WINS HIGHEST ACCOLADE

The Motor Vehicle Registry (MVR) was awarded the Chief Minister’s Award in the Delivering Quality Customer Services category for introducing a package of reforms that have seen front counter waiting times reduced from 24 minutes to 10 minutes.

MVR Director Glenda Thornton accepted the award acknowledging MVR and the Department’s Information Business Systems staff for their contributions. Setting the Department of Transport apart as a separate agency was recognised as a contributing factor to MVR’s success, allowing it an agile and collaborative approach to introduce the reforms.

A strong focus of the reform process was creating a positive team culture within MVR by increasing internal communication, encouraging feedback and enabling staff to take ownership of their efforts and achievements. With more than 800 000 transactions a year, the MVR shop fronts are vital in creating public perceptions about how the Northern Territory Government functions.

“We upgraded the call centre phone system, which I think just made it a friendlier environment for people to use, and we reviewed a lot of our business processes to make it easier for people to do things online,” Glenda said. “We’ve got a good team here, everybody has had to do their normal role as well as take on extra tasks to deliver the reforms. It’s been a huge effort by all members of the team right across the NT.”

Wait times have improved and staff are happier working at MVR, which is seen as a customer service training ground for the Northern Territory public service. Staff turnover has dropped from 53 per cent to 19 per cent.

The impressive trophy travelled like an Olympic torch all around the NT to each MVR office and was welcomed by each team with great excitement and its visit recorded in many team selfies.

A culture shift and improved customer service has won the Department of Transport’s Motor Vehicle Registry one of the highest accolades in the Northern Territory public service.

Our People

45

Glenda Thornton with Chief Minister Adam Giles at Chief Minister’s Awards

PUBLIC SERVICE MEDAL FOR GLENDA

While reforming the Motor Vehicle Registry has been a team effort, MVR Director Glenda Thornton deserves special recognition. Glenda was awarded the Public Service Medal for her work in directing and supporting the reform measures that have seen increased customer service for Territorians. The Director paid tribute to her team and recognised their passion to do their jobs well while dealing with the Territory’s growing population and demand on motor registry services.

“These people really do take their jobs seriously, they do care,” she said. “Now staff are really happy and excited at what they have been able to achieve.”

Glenda has more than 15 years’ experience in the public sector, working in various administrative roles delivering a range of corporate services and has a wealth of experience in project administration.

Before her role at MVR, Glenda managed the commercial passenger vehicle compliance and regulation unit within Department of Transport. Glenda holds a Diploma of Business Management.

46

� TRANSPORT GOES HIGH TECH

Technology is transforming the Northern Territory’s transport system, making it easier and safer to use for all customers.

Passengers can now use a Tap and Ride card to pay for bus trips and monitor their favourite bus route with a smart phone App.

The Department’s Transport Services and Information and Business Systems (IBS) introduced a new state-of-the-art bus ticketing system that integrates two systems used by Buslink and Darwin Bus to an electronic system where people can pre-purchase tickets through re-usable “tap and ride” cards. The system has a new smartphone and web application, NT Bus Tracker App, which allows commuters to check real-time arrival and departure times of buses at bus stops.

The new system means less cash transactions onboard buses, increased flexibility and savings on buying tickets – all with no fare increases. The new system came into operation in December 2014 at a cost of $1 million to develop and install. Tap and Ride

cards can be purchased and topped up at all ticket offices at the Casuarina, Darwin and Palmerston interchanges.

The transition to the new bus ticketing system was seamless and the operators of the system, Trapeze Pty Ltd, said the roll-out was one of the smoothest they had been involved with in the Asia Pacific region. The new system also allows the Department to record data on bus service usage so they know the loading pressure on existing routes, and identify possible new routes for the network.

The Department has introduced real-time technologies to allow safety incidents to be reported instantaneously.

The IBS unit developed an App for Transit Safety Officers (TSO’s) to enable them to send safety incident reports electronically while on duty. Previously officers had to manually fill in the incident reports while on duty and then enter the details again electronically when they returned to their office.

A trial was held in May 2015 for the TSO to enter the details of a safety incident via the App on an iPad, which allows the incident to be reported straight away and increasing safety on the bus network.

47

� OVERPASS IMPROVES SAFETY

The project involves building a 40.3 metre long bridge with 700-metre reconstructed road approaches to create a safe road over-rail overpass to alleviate traffic congestion and reduce the risk of accidents at the existing level crossing.

The overpass is being built at the existing railway crossing 12 kilometres south of Alice Springs, towards the airport, which has been causing traffic delays for motorists and trucks entering the popular tourist town. Work began on the rail overpass in July 2014 after local contractor Ostojic Group was awarded the tender.

The Australian Government announced $24.14 million in funding for the project in May 2015 as part of its Infrastructure Investment Program. The new overpass will replace the last level crossing on the National Network Highways.

The bridge was designed to improve road safety for the Stuart Highway, which is a major freight corridor for heavy vehicle traffic between the Northern Territory and South Australia. A sealed one kilometre long detour was built early in the project, so drivers could safely move round the construction site and was maintained throughout the project.

The project is due to be completed in late 2015.

Road user is a number one priority for the Department and crossing the Adelaide to Darwin railway track near Alice Springs will be much safer after the rail overpass is completed on the Stuart Highway.

Alice Springs Overpass

48

Our People

ALICE IS CENTRE OF MAY’S WORLD

With a 17-year career working in a range of transport and business services, there is never a dull day in Alice Springs for May Taylor. May is the Director Regions and has worked in her new role for the past 12 months. She recently took over the responsibility for Motor Vehicle Registry (MVR) services for Central Australia, looking after nine staff in Alice Springs, two in Tennant Creek and one in Yulara.

Before becoming Director, May was MVR’s Area Manager Southern for six years, Manager Business Services for Department of Infrastructure and Regional Manager Business Services for the Department of Lands Planning.

May said it is the close collaboration between the Northern Territory Government Departments in Alice Springs that makes it so much easier to do her job.

“I really enjoy the diversity of working in the regional transport arena and also working with local industry and stakeholders,” May said. “I also enjoy working collaboratively with other agencies to achieve the best possible outcomes for regional projects.”

The 2014–15 year has been a busy one for the Department of Transport team in Alice Springs, with some big projects underway. May has been working with the

Transport Hall of Fame to facilitate the 25th anniversary in August 2015 to coordinate permission for a procession of 600 to 800 trucks driving into the town as part of the celebration.

On the first Tuesday in September every year, the Director can be found counting cyclists at the Larapinta Drive and Stuart Highway intersection for the Bicycle Network’s Super Tuesday. May has been involved in the annual bike count for the past five years and is proud to see that Alice Springs has a growing number of cyclists for leisure and commuting to work.

“With generally flat terrain, a good climate and short distances, it is expected that levels of cycling and walking for transport will continue to increase in Alice Springs,” May said. “The study shows there are high levels of walking and cycling as an alternative mode of transport in Alice Springs compared to other regional centres across Australia.”

May is pleased to see the number of people catching public buses climb considerably over the past five years, with the number of passenger journeys increasing by more than 200 per cent between 2010 and 2015. In 2015 it is estimated that approximately

215 000 passenger journeys will be made on the Alice Springs bus network, compared to 60 000 five years ago. May said more visible bus stop signage and improved bus routes have helped boost numbers, and the services to the west and south of the town are the most popular.

In early 2015 May helped prepare the new motor sports event the Red Centre Nats, which will be held in Alice Springs in September 2015. May is working to secure temporary street cruising licences for modified vehicles to access the road network during the event.

Other recent highlights for May this year has been working with local industry and other stakeholders on the disabled access to bus stops and other infrastructure for passengers travelling on the urban bus network. And a collaboration with Parks and Wildlife and the Alice Springs Council to provide consistent guidelines and signage for cycling paths as part of a “way finding” project has capped off a busy year for the Alice Springs team in 2014–15.

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DEVELOPING THE NORTH

The Territory’s natural advantages in agriculture, mineral and energy resources and tourism are the envy of Australia and transport plays a key role to enable growth in these industries. The Department is working within the national agenda of the White Paper on Developing Northern Australia to help deliver new opportunities for economic growth and social development.

Using strategic planning and consultation with stakeholders, the Department is prioritising improvements for the Territory’s roads, rail, ports and aviation infrastructure to expand opportunities to Develop the North.

� ROADMAP FOR THE FUTURE

The Northern Territory Government is working on a long-term plan to deliver the transport infrastructure services needed in the Northern Territory to help Develop the North.

The Integrated Transport Planning and Investment Roadmap is the guiding framework to develop the Territory’s transport infrastructure and includes a number of strategies, reviews and reforms that are being completed in consultation with a wide range of stakeholders.

Most of these strategies, reviews and reforms are well underway or nearing completion. The Department achieved several milestones in 2014–15 for the following strategies that form part of the Roadmap:

Maritime Industry Review – The Northern Territory Government has completed a review of port legislation and has introduced the Port Management Act as well as reviewing regulations related to recreational vessels in the Northern Territory. Regulations to improve safety for recreational vessels in local waters were enforced from May 2015.

Taxi Industry Reform Strategy – The Department released a position paper in November 2014 to consult with the commercial passenger vehicle (CPV) industry, key stakeholders and the community, which closed at the end of January 2015. Extensive consultation continued with the taxi industry and a smartphone application (App) was created for transport service providers from February to August 2015. A final report back to Government is being prepared based on the outcomes from the review and consultation, which will

With its proximity to Asia, the Northern Territory is in a prime position to focus on its key economic drivers to develop Northern Australia.

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be provided to Government in 2015–16. The report will outline a regulatory reform package for a sustainable CPV model allowing for industry growth and development, is responsive to population growth pressure, has a focus on quality service and holds the needs of customers as its primary driver.

Motor Vehicle Registry Reforms – Streamlining processes, new technology and increased shop front access has reduced customer wait times, increased efficiencies and improved customer service as part of ongoing reforms for the Motor Vehicle Registry (MVR). In 2014–15 MVR introduced a digital mailbox for renewal notices, moved light vehicle inspection bookings online, introduced an NT Rego App to help customers manage licence and vehicle registrations and enabled authorised inspections online.

Roads and Bridges Strategy – The consultation draft of the Roads and Bridges Strategy was released in July 2015 and will be completed by the end of 2015. The strategy will be informed by the Regional Infrastructure Strategy to plan for developing transport infrastructure to support economic development in our regions through well planned and managed roads and bridges.

Aviation Industry and Services Strategy – A draft strategy is being finalised and will be released for consultation later in 2015. The strategy outlines

the Northern Territory’s aviation needs to ensure growth of the local industry to establish the Territory as an aviation gateway for Northern Australia.

Darwin Regional Transport Plan – Initial consultation with key stakeholders was undertaken in June 2015 with broader consultation regarding the draft plan to start later in the year. The plan will provide high level, strategic direction for regional transport priorities.

The Department of Transport will continue to deliver on the following strategies as a priority in 2015–16. Public Transport Strategy – To address long-term planning for public transport in the Northern Territory including fare policies, urban and school transport, future funding, integrated transport and land use planning, safety and security issues and growth in cyclists. The strategy is due to be completed in early 2016.

Freight and Logistics Industry Strategy – The strategy outlines the Northern Territory Government’s role to develop the freight network and articulates Government’s planning and policy priorities. Consultants developed a key issues paper in April 2015 for initial consultation sessions with key industry stakeholders, including regional locations, which occurred in July 2015. The draft strategy is due to be released for public consultation in late 2015.

Fly four hours SOUTH from Darwin and you will reach:

� 6 mainland Australian capital cities

� 20 major trading ports

� 23 international airports

� just under 23 million people.

Fly four hours NORTH from Darwin and you will reach:

� 8 international capital cities

� 36 major trading ports

� 69 international airports

� 484 million people.

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A ROADMAP for future Integrated Transport Planning and Investment

DARWIN REGIONALTRANSPORT PLAN

The Plan will align with theNorthern Territory Government’sDarwin Land Use Plan which iscurrently being developed. It willenable road infrastructureupgrades and public transportimprovements in the GreaterDarwin Area to be better plannedand integrated with land use toensure that future growth can becatered for.

MARITIME INDUSTRYREVIEW

The Review will ensure that a regulatory and operational framework for all ports and marine activities within the Territory is in place. It will consider current regulatory framework and maritime operations such as ports, harbourmaster, pilotage and navigational aids.

FREIGHT & LOGISTICSINDUSTRY STRATEGY

The strategy will identify freight and logistics industry requirements. This will include key freight routes and emerging freight corridors, key infrastructure required to accommodate freight movement, major transport and infrastructure corridors and areas that need protection for the future, and industry workforce development needs.

MOTOR VEHICLE REGISTRY REFORM

A number of changes have beenmade to Motor Vehicle Registry toimprove customer services, reduce waiting times, cut red tape and streamline processes. Manyadditional enhancements areplanned, including improving the use of technology and internet and phone pay systems, and providing greater access to services through third party providers.

AVIATION INDUSTRY &SERVICES STRATEGY

The Strategy will outline theTerritory’s aviation infrastructure(including freight logistics), service, regulatory/policy, governance and consultation requirements to ensure that the Territory’s vital aviation industry is well placed to drive future business growth and economic and social development.

ROADS & BRIDGESSTRATEGY

The Strategy will provide a planfor the future prioritisedmanagement, development andmaintenance of the Territory’svast road and bridge network.

PUBLIC TRANSPORTSTRATEGY

The Strategy will outline a framework for the long term sustainable growth and improvement of the publictransport network. It will include the outcomes from a review of theDarwin Bus Network and will address future anticipated demand and areas in need of a priority focus.

Northern TerritoryIntegrated

Transport Planningand Investment

RoadmapA long term, over-arching plan

for the delivery of transport infrastructure and services

in the Northern Territory.

TAXI INDUSTRY REFORM STRATEGY

The Strategy will encompass aregulatory review of all aspectsof the Commercial PassengerVehicle industry and will beundertaken in consultation withindustry to provide a plan for thecontinued improvement ofservice and standards.

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� A NEW FUTURE FOR TERRITORY AVIATION

After the aviation portfolio came under the full control of the Department of Transport, the Aviation and Logistics unit is working on a strategy to create an aviation gateway into Asia.

With responsibility for international, national, regional and remote aviation, the Department has a bird’s eye view of how to expand the local aviation industry, which includes its major airports and 70 remote and regional airports. Building on the Northern Territory Government’s focus on developing Northern Australia, the Department released the Propelling the Territory Forward as Australia’s Northern Aviation Gateway issues paper in August 2014 for consultation with stakeholders to develop a strategy for the aviation industry.

The issues paper looks at the challenges facing critical air services in the Northern Territory and how to revitalise the aviation sector by looking at ways to expand and tap into the Asian markets. Issues explored included international and national air services in the Northern Territory, airports and airport infrastructure, existing and future tourism opportunities, visitor numbers, aviation safety, airport security, aviation workforce, air freight, logistics, sector analysis and business opportunities.

A meeting was held with stakeholders from the aviation

industry in October 2014 in Alice Springs to provide an overview of the work the Department is doing within the aviation portfolio. Stakeholders, including representatives from Hardy Aviation, Chartair, Qantas, Virgin Australia and Top End, provided feedback on the future of the aviation industry.

Feedback was received from stakeholders in the aviation industry as well as tourism, business, airlines and freight to create a five-year NT Aviation Industry and Services Strategy. The strategy is a key component of the Government’s Integrated Transport Planning and Infrastructure Roadmap.

A draft NT Aviation Industry and Services Strategy is being finalised in response to the consultation process and is expected to be released later in 2015.

“Aviation and tourism go hand in hand and I applaud the Northern Territory Government for commencing a process of consultation to develop an aviation strategy in partnership with industry.” – Craig Jeruis, Chief Operating Officer, Lasseters Hotel and Casino

“ Release of the issues paper provides a platform from which Territory businesses can engage with Government and each other to address challenges facing industry and look at innovative ways to strengthen our connections to Asia and other markets.” Greg Bicknell, Chief Executive Officer, Chamber of Commerce

“Aviation and tourism go hand in hand and I applaud the Northern Territory Government for commencing a process of consultation to develop an aviation strategy in partnership with industry.” – Craig Jeruis, Chief Operating Officer, Lasseters Hotel and Casino

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� UPGRADE FOR AUSTRALIA’S LONGEST SHORTCUT

Construction is due to start on the first package of road works to upgrade the Northern Territory section of the Outback Way, linking Western Australia with Queensland.

The Australian and Northern Territory Governments have jointly funded $40 million to upgrade the east to west route, which stretches 2800 kilometres from Laverton in Western Australia to Winton in Queensland. The Outback Way is a vital alternative route servicing freight and tourism, as well as providing access to residents and industry along the route and is a major project in the national commitment to Develop the North.

Known as “Australia’s Longest Shortcut”, the Northern Territory roads that form part of the Outback Way include Tjukaruru Road, Kata Tjuta Road, Uluru Road, Lasseter Highway, Plenty Highway and part of the Stuart Highway.

The initial package of works will deliver:

� an additional 12 kilometres from the existing sealed section along the Plenty Highway

� the Tjukaruru Road (Docker River Road) between the community and airstrip to provide better all-weather access.

� EASIER COMMUTE TO DARWIN CITY

It is about to get easier to do business and work in the Darwin Central Business District as construction continues to duplicate Tiger Brennan Drive.

The Department of Transport is coordinating the $88 million project to upgrade Tiger Brennan Drive to a dual lane road between Woolner Road and Berrimah Road, which will improve traffic flow and safety on the main arterial road.

The project is a key part of the Northern Territory Government’s commitment to Develop the North and foster Darwin city as the capital of Northern Australia, with the duplication expected to double the capacity of the road when completed.

With an estimated growth in Palmerston’s population to between 36 000 and 42 000 by 2021 (Source: Palmerston City Centre 2030 Master Plan), the major road project will deliver reduced transit times between the growing city and Darwin CBD.

The Department’s Transport Infrastructure Planning Division is working with the Department of Infrastructure to deliver the project through managing contractor BMD and construction started in December 2014. The first section is due to be opened in late 2015, with the rest of the duplication due to be finished in mid-2016.

Billed as one of the largest road projects in Darwin, the project will boost Darwin’s economy with

Stage 4 Earthworks

Tiger Brennan Drive – Stage 4

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the head contractor awarding sections of the contract to smaller local contractors. More than 300 people are expected to work on the project during the peak construction phase.

The project has included the innovative use of treating acid sulphate soils on-site and a rock-cutting machine to help reduce the timeframe of the project.

This is the second stage to duplicate the road, with the section between Dinah Beach Road and Woolner Road completed and officially opened in 2014. The next phase of the project will duplicate the last section of Tiger Brennan Drive between Dinah Beach Road and the Darwin CBD.

� NATIONAL FOCUS ON TRANSPORT INFRASTRUCTURE

The Northern Territory played a leading role in developing a draft National Remote and Regional Transport Strategy to improve transport access and infrastructure across Australia.

The strategy, which was released in May 2015, follows a national forum hosted by the Department of Transport in Alice Springs in May 2014. The forum reviewed remote regional transport issues across Australia as part of consultation coordinated by the Transport Infrastructure Council.

About 120 stakeholders attended the forum from around Australia and put forward 150 priority actions to improve transport infrastructure they wanted to see addressed in the strategy.

A senior policy officer from the Department’s Aviation, Legislation and Industry Development team worked for 12 months to condense the priority actions for the five jurisdictions to develop the draft National Remote and Regional Transport Strategy. The draft strategy was put out for further consultation up until July 2015, before it was sent to the Transport Infrastructure Council for sign off.

The main aim of the strategy is to provide practical solutions to the issues and challenges faced by transport system providers and users so the remote and regional areas of Australia can continue to grow.

Outcomes considered in the strategy after feedback from stakeholders included:

� new funding methodology that represents the social and economic issues for remote and regional communities

� prioritising infrastructure using evidence-based processes

� improve process for infrastructure maintenance

� address land tenure and Aboriginal Land Rights issues

� integrate transport networks

� improve transport regulation so it is consistent

� source and skill locals from remote communities.

The final draft of the strategy is due to be presented to the Federal Minister for Transport in November 2015.

150 PRIORITY ACTIONS put forward to improve transport infrastructure they wanted to see addressed in the strategy

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OUR PEOPLE

03

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Our People

Many Department of Transport staff are employed in the front line service delivery areas across the Northern Territory, including the Motor Vehicle Registry, passenger transport and road safety. Their achievements can be as small as making a customer’s wait in line a few minutes shorter, inspecting a wide or heavy load, or as big as rolling out a safety review to improve passenger safety across an entire bus network.

Every achievement of our staff is important to the way our Department functions, and below are just a few of the employees and their highlights over the 2014–15 financial year.

� MENTOR PLAYS IMPORTANT ROLE

Margie Copley is playing an important role for the Department of Transport as mentor to participants of

the Indigenous Employment Program (IEP).

Margie has helped three staff achieve permanent employment in the Motor Vehicle Registry (MVR) after recently completing the program. The IEP is a pre-employment program specifically designed to attract Indigenous jobseekers to the Northern Territory public service.

The IEP is part of a suite of programs to create a public service workforce that represents the community it serves. The Department has employed successful graduates of the IEP in the Transport Infrastructure Planning Division, MVR and DriveSafe Remote.Photo of Margie and her trainee and

Executive Director Louise McCormick

Left to right: Marcia Russell, Louise Neave (trainee), Margie Copley, Louise McCormick (ED)

Left to Right: Rodney Fejo Co-ordinator IEP Program, Clare (CE), Louise Neave (Trainee), Louise McCormick (ED), Margie Copley

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� SUCCESS FOR TRAINEES

Ben Richardson and Mikaela Langridge completed their traineeships in March 2015 after 12 months working at the Department while doing a Certificate III in Business.

Ben and Mikaela combined on-the-job experience in various areas of the Department with structured learning to develop their workplace skills and gain a nationally recognised qualification. In recognition of their hard work and dedication, the two trainees were nominated for the “Trainee of the Year” for the Group Training Northern Territory (GTNT) awards in April 2015.

Ben was chosen as a finalist for the GTNT Trainee of the Year and Trainee Encouragement Awards, and went on to be nominated for Trainee of the Year at the 2015, Northern Territory Training Awards.

Ben was offered a job as a Project Officer with the Department’s Transport Policy

and Legislation division in recognition of his valuable role in the Department. His role now is to help implement new traffic safety and heavy vehicle safety legislation. Ben’s ability to apply himself to a large range of tasks and his willingness and ability to undertake higher duties was recognised by the Department.

Mikaela was offered work as an Information Coordinator in the Department’s Transport Regulation and Compliance section after excelling at everything she turned her hand to during her traineeship. In particular her efforts to learn the Department’s various systems including Motor Vehicle Registry mainframe, TRIPS travel database and TRIM record systems. Mikaela worked on the Department’s Cyclone Lam emergency relief effort helping to organise travel and supplies for stricken communities and helped organise a Ride to Work Day, and Remote Transport Conference.

� STELLAR 43-YEAR CAREER FOR ALAN

Jumping at the chance to become a transport inspector in the early ‘70s turned into a stellar 43-year career for Alan Kellett.

Alan, who started as a young mechanic in the Northern Territory Government’s Katherine transport workshops in 1971, put his hand up when Transport Inspector Arthur Lambert asked if anyone would like to try out as an inspector. “I said yes and had been there ever since,” Alan said.

The skills of two trainees have been recognised after they secured jobs with the Department of Transport following their traineeship.

Business Trainees – Benjamin Richardson and Mikaela Langridge at the 2015 NTPS Apprentice Graduation with Minister for Employment and Training The Honourable Peter Styles.

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The long-serving inspector retired in June 2015 with 32 years of anecdotes and highlights too long to list. Helping to keep Territory roads safe in the Katherine region by ensuring trucks weren’t carrying illegal or dangerously heavy loads was the biggest highlight for Alan.

“I had to call police only five times in my 32 years as an inspector, and the drivers were all interstaters,” he recalled. “Four of them left after being directed to be legal before leaving, with one even giving police a hard time and was arrested.”

That arrest north of Katherine left Alan to drive a combination with single axle, compensating dolly and float back to the weighbridge.

He recalled another truck driver who broke off the legs of his trailer when changing around because he didn’t check the turn-table height. The unlucky driver had to hire a crane to lift the loaded trailer onto the drives and “you could hear him swearing from inside the building”.

Some of the dangerous and illegal loads Alan was successfully able to keep off Territory roads during his time included:

� 54 tonne over on a double road train

� 36.5 tonne over on a double road train

� 32 tonne over on a double road train

� 60 tonne plus single

� 23.5 tonne drives with cattle.

During his career Alan has worked remotely, checking vehicles at the Queensland and Northern Territory border, weighing cattle at Top Springs due to road restrictions, conducting surveys for the then Roads Department and he saw the change from the old weighbridge in Katherine to a new one.

Alan has earned the respects of many of his colleagues in the Department. Former colleague, John Kirwin, worked with Alan in Katherine and paid tribute to him as one of the longest serving transport officers in the Northern Territory, and possibly in Australia.

“Allan worked as a transport officer in the weighbridge area since the 1980’s and was a steady, methodical and trustworthy employee,” John said. “He was always punctual and did everything he was ever asked to the letter, with nothing too much trouble. “He was a fountain of knowledge with all of the Northern Territory transport industry and trucking companies, and was well liked within the industry and good at what he did. Allan also worked in the watch house for the Auxiliary Fire Brigade in the Top End, and his record service in the Northern Territory Government is to be commended.”

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OVERVIEW Department of Transport provides strategic transport planning, regulatory and customer services to ensure safe, efficient and sustainable transport systems, which meet community needs and support the Government’s goals for economic and social development of the Northern Territory.

Human Resources (HR) role is to ensure the Department has a workforce that has the qualifications, experience and professionalism required to ensure business needs are met. During the year there were some notable HR activities involving divisional restructures and consulting with employees and management as part of managing change.

The Human Resources team is a part of the Business Services Division and is responsible for:

� advice on conditions of service and human resource best practice processes

� guiding recruitment and selection processes and actions

� coordinating training activities

� providing advice, recommendations and support on performance management practices

� case management including workers compensation

� coordinate probation processes

� update, review, implement and promote HR policies, strategies and procedures

� provide advice on payroll matters in conjunction with Department of Corporate Information Services

� consultation and advice that supports implementation of organisational change

� reporting requirements as per the Public Sector Employment & Management Act.

2014–15 OVERVIEW

� At June 2015, the average Full Time Equivalent (FTE) was 236

� 54% of the agency’s workforce is female

� 48 employees work part time

� 2% increase in Indigenous staff from last year to 5% of staff

� $22,703,000 spent on training and development, with $798 per person

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178

14

26

7

11

Office of the CE

Policy & Legislation

Aviation, Logistics & Industry Development

Transport Infrastructure Planning

Transport Services

Nhulunbuy

Tennant Creek

Katherine

Alice Springs

Darwin208

18

811

Breakdown of Employees by Division (FTE)

Employees by Location (FTE)

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Employees by Pay Classification and Gender

Employees by Age and Gender

1

226

412

166

1

13784

Port Service Worker

Technical

Professional

Physical

Executive

Employment Programs

Administrative

0 30 60 90 120 150

Female

Male

13

1526

2935

36

225

65 and over

55 - 64

45 - 54

35 - 44

25 - 34

15 - 24

Female

Male

3731

40

0 10 20 30 40 50

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ENCOURAGING DIVERSITY AND FLEXIBILITYThe Department strives to reflect a gender balanced and diverse workforce including:

� 54 percent of our workforce was female

� 46 percent was male

� 12 employees identified as having a non-English speaking background

� 14 employees identified as Aboriginal or Torres Strait Islander

� 4 employees identified as having a disability.

The Department recognises and acknowledges the importance of providing employees with the flexibility and assistance they need to successfully balance their professional work life with their personal commitments.

Flexible working arrangements were negotiated including:

� 48 of employees working part time

� 3 of employees on home based/ telework arrangements

� 1 employee took up the option of a career break working in the private sector

� 10 employees have used the option of taking recreation leave at half pay

� 1 employee is currently participating in the NTPS Extended Leave Scheme*

* allowing staff to reduce their pay to 80 percent for four years to cover the fifth year taken as leave with pay. Note that due to the changes in the Enterprise Agreement this scheme is being replaced with the advanced Leave without Pay scheme.

Indigenous Employment and Career DevelopmentThe Department is conscious of the need to support the employment and career development of Indigenous staff who represent five per cent of the Department’s workforce. The Northern Territory Government target for Indigenous representation is 16.1 per cent. The Department continued to focus on improving representations through initiatives such as:

� introducing special measures to recruit Indigenous employees to DriveSafe NT Remote positions

� employing Indigenous trainees

� identifying barriers to career development and progression

� providing leadership development opportunities to existing Indigenous employees

� developing cultural awareness in the Department through training

� promoting Indigenous employment.

Employment Opportunity (EEO)

Snapshot of Indigenous employees at 30 June 2015

2012–2013 2013–2014 2014–2015Female Male Female Male Female Male

Administrative Officer 2 1 1 3 1 2 1Administrative Officer 3 - - 4 - 6 -Administrative Officer 4 - - 1 0 1 1Administrative Officer 5 5 - - - - -Administrative Officer 6 - - - - 1 -Administrative Officer 7 - - - - 1 -Senior Administrative Officer 1 - - - 1 1Total 7 10 14Total employees 310 329 280% Indigenous 2.3% 3.0% 5.0%

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The Department of Transport actively supports continuous learning and personal development for all employees and a range of strategies are in place to ensure employees have access to opportunities. TRAINING AND DEVELOPMENTIn 2014–15, the Department invested $188 433 in training and development for its employees, which equated to an average of $798 per full-time equivalent staff member across the Department. This represents an increased level of spend in training and developing our employees.

Learning and Professional Development

Departmental Expenditure on Training and Development

Department of Transport

2012–13 2013–14 2014–15

Total employees (Full Time Equivalent)

211 225 236

Total training and development expense

$167 004 $118 303 $188 433

Total personnel expenditure

$20 693 020 $20 648 000 $22 411 000

Training and development costs as a % of personnel expenditure

0.8% 0.6% 0.8%

Average training expenditure per employee

$793 $526 $798

The total personal expenditure and training and development costs are for the full 2014–15 financial year and may be subject to change.

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PROFESSIONAL AND TECHNICAL DEVELOPMENTThe Department provides support for employees to gain relevant professional and technical skills through higher education. Support includes financial assistance for study fees and paid study leave to attend tutorials, lectures and exams.

As part of the Department’s efforts to build the capability of our workforce, in 2014–15 two employees received studies assistance to gain qualifications in:

� Masters in Business Administration

� Masters in Transport.

The Department encourages the development of its professional employees by supporting incentives such as the Professional Development Allowance and Professional Excellence Scheme. In the past year, four employees have taken up their option to access the Professional Development Allowance for a total of $2 257.

LEADERSHIP INITIATIVES

� OFFICE OF THE COMMISSIONER FOR PUBLIC EMPLOYMENT LEADERSHIP PROGRAMS

The Department participates in government-wide programs offered by the Office of the Commissioner of Public Employment (OCPE). In 2014–15 employees participated in the following programs:

� one employee participated in the Future Leaders Program

� one employee participated in the Lookrukin Indigenous Development Program

� one employee in the Future Leaders Network.

� FUTURE LEADERS PROGRAM

The Future Leaders Program is an investment in the capability of talented people to deliver strategic needs for the future. In anticipating the needs for tomorrow, it is clear that leaders need to strategically plan for succession in order to enhance capability and create a vibrant and innovative public sector.

� LOOKRUKIN

Lookrukin (Women’s) Indigenous Leadership Development Programs is designed to provide a high level, significant learning experience for Aboriginal and

Summary of Studies Assistance Reimbursements as at 30 June 2015

2012–13 2013–14 2014–15Employees received Studies Assistance

2 2 2

Total Reimbursed $7 512 $12 526 $13 928

Average Reimbursement $2 504 $3 754 $4 643

The table above shows the number of employees who have received studies assistance over the last two semesters.

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Torres Strait Islander women employed in the Northern Territory Public Service (NTPS).

� FUTURE LEADERS NETWORK

The Chief Minister announced the Future Leaders Network as an initiative to attract and retain talented young people in the NTPS. The sector-wide initiative, coordinated by OCPE, provides networking, peer support and developmental opportunities for exceptional public servants aged 30 years and under that meet or exceed the behaviours identified under CLF 7 in the NTPS Capability and Leadership Framework.

� AUSTRALIAN RURAL LEADERSHIP PROGRAM

In 2015 the Department of Transport and Department of Primary Industries and Fisheries announced a new partnership with the Australian Rural Leadership Foundation by providing two scholarships on the flagship Australian Rural Leadership Program (ARLP). Through co-sponsorship, two places will be provided on the ARLP over the next two years for Departmental staff to participate. Scholarships will be awarded in early 2016.

� SENIOR LEADERS FORUMS

The Senior Leaders Forums provides an important platform for senior staff members to:

� meet and share information

� the Chief Executive to promote the organisation’s vision and priorities

� identify emerging issues and strategies

� network.

Forums are held quarterly and include matters that are topical for the Department to discuss.

The

FUTURE LEADERS NETWORK as an initiative to attract and retain talented young people in the NTPS

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EMPLOYMENT PROGRAMSThe Department’s employment programs target entry-level recruits and includes graduates, scholarship holders, Indigenous employment, apprentices and trainees.

During 2014–15, seven individuals participated in Departmental employment programs, including

� one employee participated in the Graduate Development Program

� one employee completed their Scholarship Program at the end of 2014

� one employee continued with the Scholarship Program to be finalised at the end of 2015

� two employees were employed as Department trainees

� one employee is currently employed in the Disability Employment Program

� one employee participating in the Indigenous Employment Program.

� GRADUATE DEVELOPMENT PROGRAM

The aim of the Graduate Development Program is to create a supply of qualified and trained employees for the Department. Brendan Thornton was recruited to this program after successfully completing a naval architecture scholarship, which was funded by the Department.

Graduates are employed in a 12-month program where they receive on-the-job work experience, coaching and gain a working knowledge of the NTPS. The Department’s graduates link in with NT Treasury graduates in the Finance Officer In Training (FOIT) program. The relationship between the Departments provides further support and networking opportunities for graduates.

� DEPARTMENT OF TRANSPORT SCHOLARSHIPS

The Department provides scholarships to encourage Year 12 students to undertake university studies in areas of skill shortage for the Department. This year, a scholarship holder that was recruited in previous years continued with their studies in naval architecture and the other successfully completed and graduated. During university breaks, these students join the Department for paid work placements in addition to receiving a stipend, which supports them during their full-time university studies.

� TRAINEESHIPS

In 2015, two business trainees successfully completed a Certificate III Business Administration Traineeship. Both have been retained in roles providing administrative support to business units within the Department.

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� DISABILITY EMPLOYMENT PROGRAM

The Disability Employment Program is a pathway program for people with disability to gain experience and skills and broaden their career options in the NTPS. The Department engaged one participant in this program who provided a range of administrative services to various areas of transport, primarily in commercial passenger vehicle on a part-time basis.

� INDIGENOUS EMPLOYMENT PROGRAM

The Indigenous Employment Program is a 20 week pre-employment training and support program that incorporates accredited training with on the job work experience and mentoring. On successful completion of the program, participants are offered ongoing or fixed employment at the entry level within the Northern Territory Public Sector (NTPS). Two participants (Rikki-Lee Morris and Louise Neave) successfully completed the pre-employment program and gained fixed period employment within the Department at the AO2 level.

Photo - Courtesy of NT Airports Pty Ltd

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Delivery of work health, safety and wellbeing (WHSW) in the Department is managed under a shared services arrangement with the Department of Lands, Planning and the Environment (DLPE).

Both Departments participate in a joint WHSW Steering Committee with membership from staff and management, including elected health and safety representatives (HSR).

The committee meets bi-monthly to discuss strategic, operational, policy and reporting matters and to develop health, safety and wellbeing programs that serve two purposes:

� they benefit employees by targeting individual health and wellbeing

� they benefit the workplace by increasing productivity and job satisfaction and help improve morale and staff retention.

WHSW achievements in 2014–15 included:

� bi-monthly committee meetings

� ongoing training for HSR, officers and human resource consultants

� regular WHSW news stories were published on the intranet

� all staff offered influenza vaccinations, and 82 staff (29 per cent) were vaccinated

� promoting wellbeing awareness and fundraising days such as Red Nose Day, Australia’s Biggest Morning Tea and Australian Red Cross Blood Service

� WHSW Officer Training which ten Department officers and WHSW committee members attended

� developing agency-wide Ergonomic Health Guidelines.

� promoting and delivering lunch time fitness sessions.

� INCIDENTS AND WORKERS COMPENSATION

A total of 29 incidents were reported during the period 1 July 2014 to 30 June 2015 with no Notifiable Incidents reported under legislation to NT WorkSafe. The number of incidents has decreased by one compared to the previous year. Figure 1 provides a breakdown on the incidents by mechanism.

Work Health, Safety and Wellbeing

The committee meets bi-monthly to discuss

STRATEGIC, OPERATIONAL, policy and reporting matters

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FIGURE 1 – Department of Transport Total Incidents by Mechanism as at 30 June

Six new workers’ compensation claims were reported during the period 1 July 2015 to 30 June 2015. As at 30 June 2015, the Department has six open claims. The most common claims were body stress. The Department has been working on decreasing the number of open workers’ compensation claims and have reduced these by three, compared to the same time last year.

FIGURE 2 – Department of Transport Current Workers Compensation Claims by Mechanism as at 30 June

1

1

Vehicle Incidents and Other

Slips, Trips & Falls

Mental Stress

Hazards

Body Stress

Biological Factors

Being Hit by Objects

0 2 4 6 8 10

5

5

8

8

8

9

2

25

5

2014–15 2013–14

2014–15 2013–14

13

23

Slips, Trips & Falls

Body Stress

Being Hit by Objects

33

0 1 2 3 4

Inci

dent

Mec

hani

smIn

cide

nt M

echa

nism

Number of Incidents

Number of Incidents

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The Work Health Safety and Wellbeing (WHSW) Steering Committee helps the Department instigate, develop and implement measures to ensure the health, safety, welfare and wellbeing of staff. The Steering Committee is made up of representatives from all Department locations and regions and is delivered with the Department of Lands, Planning and the Environment through a joint Steering Committee with membership from staff and management including elected Health and Safety Representatives (HSRs). The Department also has WHSW committees at various locations.

The key functions of the Executive Management Board include:

� setting the strategic direction and objectives for the Department

� developing and overseeing the implementation of strategic directions, plans, projects, policies and programs

� monitoring performance and compliance against planned timeframes and outcomes, budgets, policies and targets, where appropriate

� overseeing corporate governance arrangements

� building agency capability and developing solutions to Department issues

� considering other matters as appropriate.

The Work Health Safety and Wellbeing Committee left to right: Paul Rajan, John East, Emma Plint, Nalu Sope, Rosalie Wiltshire, Paul Shambrook, Rebecca Whelan, Juan Pazo, Tendayi Muyambi, Sarah Temple

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� WORK HEALTH, SAFETY AND WELLBEING STEERING COMMITTEE

The Work Health Safety and Wellbeing (WHSW) Steering Committee helps the Department instigate, develop and implement measures to ensure the health, safety, welfare and wellbeing of staff. The Steering Committee is made up of representatives from all Department locations and regions and is delivered.

The Committee’s 2014–15 achievements include:

� providing influenza vaccinations for all staff. A total of 82 staff members (29 per cent) were vaccinated across the Department at a total cost of $1712 for the program

� bi-monthly meetings to discuss strategic, operational, policy and reporting matters and to develop health, safety and wellbeing programs

� election of new Health and Safety Representatives (HSRs) for work groups

� provided Work Health and Safety (WHS) Officer training for WHS Officers and WHS Committee members

� developing a Department wide Ergonomic Health Guidelines

� individual training for HSRs to gain certification

� templates developed for HSRs to use when conducting local work area meetings

� developing policies for No Smoking and First Aid and a WHSW annual calendar of events

� three staff members were accepted into industry funded placements and completed the Diploma in Work Health and Safety

� regular WHS news stories have been published on the intranet including monthly updates of the myHealth website

Members:

Representatives from Department of Transport and related entities

Name Work Unit Location PositionPaul Rajan Transport

ServicesEnergy House Darwin

Executive Director

Roque Cubillo

Transit Safety Casuarina Interchange

HSR

Juan Pazo Marine Safety Energy House HSR

Judith Plenty

MVR Goyder Road Workplace Representative

May Taylor Transport Services

Greenwell building – Alice Springs

Manager

Analu Sope MVR Goyder Road HSRRepresentatives from co-located agencies (2):

Sarah Temple

Business Services

Energy House Darwin

Executive Director/ Chair

Sandra Butcher

Business Services/ HR

Energy House Darwin

Director/ Manager

Tamara Sydenham

Human Resources

Energy House Darwin

Manager

Emmett Hale

Business Services/ Properties

Energy House Darwin

Manager

Rita Carter Land Services NAB Darwin HSR

Nikita Wolinski

Environmental Protection Agency

The Avenue Parap HSR

Claire Brown

DLPE Katherine Workplace representative manager

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� deliver the Frontline Capability Development Program for frontline staff dealing regularly with challenging situations and/or anti-social behaviour were provided with a package of skill development opportunities designed to improve their customer interactions and reduce incidents on the bus network. This has improved the Department’s overall quality of staff’s interaction with customers, the quality of decisions made and their process for making enquiries and handling complaints.

Its 2015–16 priorities are:

� developing and maintaining a corporate Hazard Identification Risk Register

� conducting risk assessments of areas requiring specific hazard identification

� training Officers on Due Diligence and Duty of Care

� developing an education campaign for all staff to increase awareness of their WHS responsibilities including incident reporting and hazard identification.

The Committee’s

2014–15 ACHIEVEMENTS

� vaccinations

� bi-monthly meetings

� new HSRs

� WHS training

� new guidelines

� HSRs certification

� templates for HSRs

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Under the Public Sector Employment and Management Act, Employment Instructions provide direction to Departments on human resource management matters. Section 18 of the Act requires Departments to report on each Employment Instruction in Department annual reports. The Department of Transport’s performance against each instruction is reported below.

Employment Instructions, Annual Reporting Requirements and Agency Action as at 30 June 2014

Employment Instruction and Annual Reporting requirements

Agency Action in 2014/2015

Number One – Filling VacanciesChief Executive Officers must develop a procedure to fill vacancies consistent with the Act, its subordinate legislation and any relevant award or enterprise agreement.

Section 28(2) (c) of the Act requires the Chief Executive Officer to report annually on the number of employees of each designations and any variations in numbers since the last report.

Recruitment action: advertised 54 vacancies (permanent and temporary), 57 staff began and 45 separations (excluding casual and temporary vacation employees).

The Department has experienced a decrease of 20 separations compared to the same time last year.

No promotion appeal was lodged during 2014–15.

Number Two – ProbationChief Executive Officers must develop a probation procedure consistent with the Act, its subordinate legislation and any relevant award or enterprise agreement.

The Department has reviewed its Probation Policy.

New ongoing employees are advised of the probation process by the Department of Corporate Information Services (DCIS) as part of their Offer of Employment. The process is explained during induction and in the Department’s information pack for new employees and available on the Department’s intranet.

One employee’s probation was extended for a further six months.

Reporting against Employment Instructions

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Number Three – Natural JusticeThe principles of natural justice are to be observed in all dealings with employees.

The principles of natural justice are followed in all dealings with employees and reflected in internal policies and procedures.

Number Four – Employee Performance Management and Development SystemsChief Executive Officers must develop and implement an employee performance management and development procedure consistent with the Act, its subordinate legislation and any relevant award or enterprise agreement.

The Department’s performance management system, Plan Do Review (PDR), integrates the Department’s planning frameworks and objectives with employees’ work priorities.

The PDR system is a 12-month cycle of planning, doing and reviewing the work of employees.

Number Five – Medical ExaminationsChief Executive Officers may engage a health practitioner in accordance with the Act and Employment Instruction Number 3.

Two employees were directed to attend examinations by approved health practitioners.

Number Six – Employee Performance and InabilityChief Executive Officers may develop employee performance and inability procedures consistent with the Act, its subordinate legislation and any relevant or enterprise agreement. Section 18 (2) of the Act requires the Commissioner to report annually on the extent to which the inability procedures have been invoked in the public sector.

Chief Executive Officers shall provide to the Commissioner with the information necessary for the Commissioner to comply with the reporting requirement.

The Department’s performance management system PDR provides a framework for managers and staff to document where performance improvement is required. Human Resource staff support managers dealing with under-performance issues and help managers and staff in performance improvement efforts.

Six performance and inability actions were undertaken during 2014–15.

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Number Seven – DisciplineChief Executive Officers may develop discipline procedures consistent with the Act, its subordinate legislation and any relevant award or enterprise agreement.

Section 18 (2) of the Act requires the Commissioner to report annually on the extent to which the inability procedures have been invoked in the Public Sector.

Chief Executive Officers shall provide the information necessary for the Commissioner to comply with the reporting requirement.

The Department’s discipline policy and procedure is available to all staff on the intranet.

There was one new discipline action in 2014–15.

Number 8 – Internal Agency Complaints and Section 59 Grievance ReviewsAgency must develop an internal employee grievance-handling policy and procedure consistent with the Act, its subordinate legislation and any relevant award or enterprise agreement.

The Department’s grievance policy and procedure is available to all staff on the intranet. Human Resources provide advice and support to managers and staff in dealing with grievances.

No grievances were lodged in 2014–15.

Number 9 – Employment RecordsThe Department has responsibility for keeping employees’ employment records. The Department must comply with the requirements of the Information Act (NT) regarding correction, collecting and handling of personal information contained on an employee’s employment record.

DCIS stores all personnel files. The Department follows NT Government policy policy regarding access to these files. Any requests to access employee records are made through the Director of Human Resources.

Number 10 – Equality of Employment Opportunity ProgramsThe Department must develop an Equality of Employment Opportunity Program consistent with the Act, its subordinate legislation, the Anti-Discrimination Act and any relevant award or enterprise agreement.

The Department’s Equal Employment Opportunity Management (EEOM) Policy was developed and implemented in September 2011.

Details of the Department’s Indigenous Employment and Career Development programs and initiatives are reported in this annual report.

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Number 11 – Occupational Health and Safety Standards ProgramsThe Department must develop programs and procedures to ensure employees are consulted in the development and implementation of work health and safety (WHS).

The Department must provide WHS information in the annual report in relation to the Department’s occupational health and safety programs.

Since the introduction of the Work Health and Safety (National Uniform Legislation) Act, 2011, the Department has met all of its obligations under Employment Instruction Number 11. A Work Health and Safety Management System was approved and in place as at 31 December 2012 consisting of 29 Foundation Documents including policies, procedures, guidelines and working documents.

Work continues in relation to meeting legislative obligations in developing and implementing training, especially in the area of Hazard Identification.

Number 12 – Code of ConductThe Code of Conduct stipulates the basic level of conduct expected of Public Sector Officers as defined in the Act.

The agency may issue an agency-specific Code of Conduct that is consistent with the Act.

New staff are provided with the NTPS Code of Conduct booklet as part of their commencement package. Staff are reminded of their obligations through a range of forums provided during their employment.

The Transit Safety Unit has its own Code of Conduct, which complements the NTPS Code of Conduct.

In-house training sessions, including staff inductions, workplace etiquette and the selection process, promote compliance with the NTPS Code of Conduct and Principles. Training and the intranet are used to remind staff about accepting gifts and benefits, use of information technology (IT) and other resources, confidentiality, conflicts of interest, outside employment, fraud and ethics, harassment and bullying, health and safety, making public comment, outside employment, privacy and record keeping.

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Number 13 – Appropriate Workplace BehaviorThe Department must develop an agency policy and procedure to foster appropriate workplace behavior and a culture of respect, and to deal effectively with inappropriate workplace behavior and bullying.

The Department is committed to providing all employees with a safe and healthy workplace, free from inappropriate behaviors such as bullying, harassment and discrimination.

An interactive workshop is provided for staff to discuss their rights and responsibilities and the requirement for all staff to adhere to and act in accordance with the NTPS Code of Conduct.

The focus is on developing employees’ understanding of the need to take responsibility for their own behaviors and actions in the workplace. The workshop provides useful tools and resources for staff to use if faced with inappropriate behaviors.

One formal complaint was made about inappropriate workplace behaviour during the reporting period.

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04CORPORATE GOVERNANCE

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Good corporate governance refers to the systems by which an organisation is controlled, how it operates and the mechanisms by which it and its people are held to account. Our governance framework guides the actions of individuals by providing clarity and direction about appropriate behaviour and decision-making.

Corporate Governance

Executive Team

Controls / Compliance Accountability / Standards

Strategy / PlanningOperations / Performance

� Governance Framework

� Internal Audit

� Compliance and Reporting

� Delegations

� Auditor General

� Action Plans

� Systems and Procedures

� Financial Reporting

� Service Improvement Plans

� Individual Performance Plans

� Internal / External Reporting

� Legislation and Regulations

� Government - Minister

� Treasury - Budget

� Key Stakeholders

� Vision and Mission

� Strategic and Business Plans

� Organisational Structure

� Capability and Leadership

� Service Charter / Delivery

� Workforce Development

� Risk Management

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The principles are published on our intranet and are identified below:

� Principle 1: Government and public sector relationship

� Principle 2: Management and oversight

� Principle 3: Organisational structure

� Principle 4: Operations

� Principle 5: Ethics and integrity

� Principle 6: People

� Principe 7: Finance

� Principle 8: Communication

� Principle 9: Risk management

ACCOUNTABILITY AND STANDARDSExecutive Committees and Boards

EXECUTIVE MANAGEMENT BOARD (EMB)

STRATEGIC GOVERNANCE EMB CORPORATE GOVERNANCE EMB

EMB incorporates the Financeand Human Resources Committee

Audit and Risk Management Committee

Information Management Committee

Work Health Safety and Wellbeing Committee

Union Consultative Committee

The Department is governed by nine principles, which provide the foundation for the development of a self-diagnostic process to assess our maturity and areas of opportunity to improve.

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Membership:

Members Position Department

Glenn Bernardin – Chair

Director Internal Audit Department of Children and Families

Sarah Temple A/g Executive DirectorBusiness Services(Shared Services)

Department of Lands, Planning and the Environment

Simon Saunders A/g Executive DirectorTransport Planning, Policy and Reform

Department of Transport

Glenda Thornton Director Motor Vehicle Registry

Department of Transport

Tracey Scott Assistant Under Treasurer

Northern Territory Department of Treasury and Finance

ObserversNatalie Scott Senior Auditor Auditor General’s Office

Matthew Chin A/G Director Governance and Property

Department of Lands, Planning and the Environment

Fotis Papadakis Chief Financial Officer Department of Lands, Planning and the Environment

Emmett Hale (Secretariat)

A/g Manager Property and Security

Department of Lands, Planning and the Environment

� AUDIT AND RISK MANAGEMENT COMMITTEE

The Audit and Risk Management Committee (ARMC) has been established to ensure that the Chief Executive has clear, comprehensive, independent advice on the effectiveness of the Department of Transport’s governance structures, systems and processes. The ARMC is empowered to investigate any relevant matter with unrestricted access to records, facilities and personnel of the Department and has the authority to engage any independent counsel necessary to discharge its duties.

The Committee’s 2014–15 achievements include:

� helping develop and implement the Internal Audit Plan

� monitor the implementation of the Strategic Internal Audit Plan and the resolution of audit recommendations

� review and input into the development of the 2014–15 annual report.

Its 2015–16 priorities are to:

� review and monitor the implementation of the Strategic Business Risk Assessment

� help develop and implement the Strategic Internal Audit Plan

� monitor the implementation of the Strategic Internal Audit Plan and the resolution of internal an external audit recommendations.

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� INFORMATION MANAGEMENT COMMITTEE

The Information Management Committee (IMC) meets regularly to consider information communication technology (ICT) submissions and review ICT projects. The committee also has the following functions:

� set strategic directions, priorities and standards for all ICT Departmental projects and resources

� authorise and monitor the development and implementation of the ICT and information systems

� provide advice to the Executive Management Board (EMB) on funding priorities for ICT business purposes, in particular where projects exceed $50 000

� endorse the selection, development, implementation and application of all business information systems and ICT infrastructure

� act as Department-wide forum on information management issues requiring approval by the Northern Territory Government IMC

� protect and manage the Information and Technology assets of the Department.

The Committee’s 2014–15 achievements include:

� publishing processes and protocols for IT expenditure and project approval

� endorsing the Department-wide reporting improvements projects

� endorsing the Social Media Guidelines for the Department

� endorsed the revised Information Security Framework and associated policies.

Its 2015–16 priorities are to:

� manage and monitor the Department’s engagement in the whole of government ASNET project

� engage with the recently established Northern Territory Government ICT Governance model

� develop a strategy for further reporting improvements and improving the availability of Motor Vehicle Registry services to more localities through new business models.

Members:

Members Position DivisionPaul Rajan (Chairperson)

Executive Director Transport Services

Transport Services

Shane Tepper Manager Asset Management

Infrastructure Planning

Barbara Littler Director Transport Reform Policy, Planning and Reform

Fotis Papadakis Chief Financial Officer Department of Lands, Planning and the Environment

Donald Young Director Information and Business Systems

Department of Lands, Planning and the Environment

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� CONSULTATIVE COMMITTEE

The Consultative Committee was established in early 2014 as part of the Department’s management change framework.

The role of the committee is to:

� consult with unions and employees on significant matters of change affecting the Department, divisions or individual work units

� facilitate a cooperative approach to change management in the Department

� ensure that effective change strategies are used to consult with affected employees and relevant unions

� provide a forum for the exchange of relevant information about

organisational change in the Department

� create a positive, stable and harmonious industrial relations climate in the Department through inclusive processes and practices

� discuss and attempt to resolve operational or implementation issues that may be raised by employees or have been escalated from local Change Management Committees to the Consultative Committee

� give effect to the parties’ obligations for the management of change as set out in clause 17 Management of Change Northern Territory Public Sector 2013–2017 Enterprise Agreement.

Achievements in 2014–15 included:

� facilitating regular dialogue with unions about matters of significant change that affect employees. In particular, providing updates on the transfer of Darwin Bus Service and other operations staffing issues.

� transfer of the Harbour Master Function to the Department.

Priorities for 2015–16 include:

� continuing to consult with unions about matters of significant change that affect employees.

Members:

Members Position DepartmentSarah Temple A/Executive Director

Business ServicesDepartment of Lands, Planning and the Environment

Paul Rajan Executive Director Transport Services

Transport Services Department of Transport

Sue Sanders A/Director HR Services

Department of Lands, Planning and the Environment

Shaan Novak A/Director, Darwin Bus Service

Department of Transport

Relevant Unions:Community and Public Sector Union

Australian Manufacturing Workers Union

Transport Workers Union

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� STRATEGY AND PLANNING

The Department is committed to clearly articulating its vision, strategic directions and deliverables across its diverse portfolio. These improvements reflect improved access and services to the community and more efficient use of public service resources.

Strategic PlanThe Department launched its strategic plan in 2014. The plan focuses on:

� strategic planning to enable infrastructure development and major projects

� transforming the Department’s transport services

� improving transport safety

� creating the best workforce, processes and frameworks to enable outcomes.

The Chief Executive’s performance agreement with the Minister for Transport informs the Department’s strategic plan and each division’s operational plan underpins it. Executive Director’s individual performance reviews and the Strategic Executive Management Board monitor achievements against priorities.

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ICT Security FrameworkThe Department completed and published the ICT Security Framework that articulates the Department’s commitment, resources and governance of IT security. The Department’s ICT security framework is an extension of and implements requirements of the Northern Territory Government ICT Security Framework. Key policies published during 2014–15 as part of the framework include disaster recovery planning, data protection, secure information transfer and appropriate use of e-mail and internet communications.

Operations and PerformanceThe Department is committed to improving the operations and performance of its diverse portfolio. These improvements reflect improved access and services to the community, more efficient use of public service resources.

� IMPROVING PUBLIC SERVICES

There has been a range of improvements in this area which are listed below and further articulated throughout this report:

� Reforms to the Motor Vehicle Registry

� Outsourcing of Darwin Bus Services to the private sector

� The Darwin Public Transport Network Review

� Improved management,

reporting and analysis of operational data

� Stakeholder engagement through the corporate communications hub.

� CORPORATE COMMUNICATIONS HUB

The Northern Territory Government implemented a new model to deliver marketing and communications across the public sector from 1 July 2013. It is a hub and spoke model, with the Department of Lands, Planning and the Environment (DLPE) hub servicing the Department of Transport and the Department of Infrastructure as well as the NT Planning Commission and the NT EPA. The small team has been engaged in a wide range of diverse projects for the Department across web, media and communications and marketing. The work of the Communications Team has involved in:

� ensuring consistent government-wide messaging

� developing and implementing communication plans

� identifying proactive media opportunities

� managing advertising for all Departments and the associated approvals through the Communications and Marketing Advisory Committee (CMAC) which oversees marketing activity across the NT Government.

The Corporate Communications Hub has been engaged in a wide range of diverse projects for the Department across

WEB, MEDIA and

COMMUNICATIONS AND MARKETING

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Some examples include:

� campaigns to support MVR Reforms

� communications strategies for roads and bridge projects including the Tiger Brennan Drive Duplication

� media and communications around the sale of Darwin Bus Service

� communications input to the Northern Territory Regional Infrastructure Study

� planning for the Stuart Park Transport Study and associated community consultation

� ongoing consultation with the community and targeted stakeholders around transport projects and Government’s Capital Works Program

� maintaining the transport websites.

� CONTROLS AND COMPLIANCE

Internal Controls

Corporate Delegations: The Chief Executive delegates certain powers to other employees under the Financial Management Act (FMA), the Public Sector Employment and Management Act (PSEMA) the Procurement Act (PA) and the Contracts Act (CA). The Chief Executive has approved revisions to the following delegations with effect in 2014–15.

� Procurement Delegations (PA)

� Finance Delegations (FMA)

Conflict of Interest: Whether real or perceived, conflicts of interest erode confidence in the integrity of the Department. Executive Directors and branch managers are responsible for ensuring staff declare any conflicts which are reported to the Chief Executive for approval. One declaration was made by Departmental officers during the year. Gifts and Benefits: The Department must be open, accountable and its actions defendable when dealing with acceptance of gifts and benefits. Executive Directors and branch managers are responsible for ensuring that staff declare gifts and benefits to the Chief Executive for approval. Fifteen gifts and benefits were declared by Departmental officers during the year.

Monitoring through audits and reviewsThe quality of our controls systems are monitored by internal and external audits,

The Department of Transport has a number of internal control mechanisms designed to mitigate risks in the workplace.

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performance audits, financial statement audits and assurance reviews that are conducted over the year to determine the accuracy and reliability of information and to provide an:

� independent assessment of selected areas of the Department

� assurance about public sector financial reporting, administration and accountability.

The Department managed two internal audits and the Northern Territory Auditor-General conducted eight external audits and reviews during 2014–15.

Internal auditsInternal audits are conducted to help the Chief Executive and Executive Management Board to determine if appropriate risk and internal control mechanisms are in place to maintain a strong risk and compliance culture.

External auditsExternal audits play a major role in the way the Department is held accountable for its financial, compliance and performance outputs. External audits are conducted by outside entities, usually the Auditor-General of the Northern Territory, although other providers can be used. The Auditor-General reports directly to Parliament twice a year, and releases reports publicly.

The Auditor-General conducted the following external audits on behalf of the Department in 2014–15. The outcomes of the external audits were mostly satisfactory and the recommendations have been incorporated into amended policies and procedures.

External audits undertaken by Department of Transport in 2014–15

Audit Date Comments

Financial Statement audit of Drivesafe NT Remote Program 2011–12

February2015

Objective was to confirm if funding had been expended in accordance with the funding agreement.

No issues were identified.

Financial statement audit for Drivesafe NT Remote Program 2013–14

November2014

Objective was to confirm if funding had been expended in accordance with the funding agreement.

No issues were identified.

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External audits undertaken on Department of Transport 2014–15

Audit Date CommentsNation Building Program (National Land Transport) Act 2009 – Statement of Expenditure Audit – Outback Way Program

October 2014

The audit was conducted so an opinion could be expressed about the statement of the receipts and expenditure of the Outback Way Program received by the Department of Transport under the Nation Building Program (National Land Transport) Act.

An unqualified audit opinion was issued.

Nation Building Program (National Land Transport) Act2009 – Financial Statement Audit – Roads to Recovery

October 2014

The audit was conducted so an opinion could be expressed about the statement of the receipts and expenditure of the Nation Building Roads to Recovery payments received by the Department of Transport under Part 8 of the Nation Building Program (National Land Transport) Act.

An unqualified audit opinion was issued.

End of Year Review 30 June 2014

October 2014

The objective was to assess the adequacy of selected aspects of end of financial year controls over reporting, accounting and material financial transactions for the primary purpose of providing support to the audit of the Treasurer’s Annual Financial Statement.

The following matters were identified:

� Non-compliance with the Department’s accounting policy and AASB116 Property, Plant and Equipment.

� There was an unexplained difference on the Works in Progress reconciliation between GAS and AMS and the reconciling items had not cleared at year end.

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Darwin BusService – FinancialStatements Audit

October 2014

Objective was to conduct sufficient audit work to enable for an opinion to be provided on the financial statements of Darwin Bus Service the year ended 30 June 2014.

An unqualified audit opinion was issued.

Interstate Road Transport Act 1985, Federal Interstate RegistrationScheme – Interstate Road Transport Acquittal

November 2014

The audit was conducted so an opinion could be expressed upon the Registration Revenue Statement and the Statement of Amount Expended or Set Aside pursuant to the Interstate Road Transport Act 1985.

An unqualified audit opinion was issued.

National Building Program (National Land Transport) Act2009

December 2014

The audit was conducted so an opinion could be expressed upon the statement of amounts expended or set aside for expenditure from monies paid to the Northern Territory of the National Building Program payments received by the Department of Transport under the Nation Building Program (National Land Transport) Act 2009.

An unqualified audit opinion was issued.

Nation Building Program (National Land Transport) Act 2009 – Road Safety Black Spot Program

December 2014

The audit was conducted so an opinion could be expressed about the statement of the receipts and expenditure of the Road Safety (Black Spot) Program payments received by the Department of Transport under the Nation Building Program (National Land Transport) Act 2009

An unqualified audit opinion was issued.

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Agency Compliance Audit for Year ending 30 June 2015

June 2015 The primary objective was to assess and test, with reference to a representative number of transactions or other suitable evidence, the adequacy of the systems developed by the accountable officer to achieve compliance with their accountability and control requirements.

The following matters were identified:

� Exceptions were identified when testing transactions relating to travel and hospitality.

� Exceptions were identified when testing transactions relating to procurement.

� There is no internal audit plan effective for the six months to 31 June 2015.

� Exceptions were identified when testing transactions relating to physical assets.

� Insufficient delegation identified in relation to financial losses.

� RECORDS AND INFORMATION

Freedom of informationIn accordance with the Information Act, the Department of Transport has a range of policies and procedures to enable individuals to access records and information heldby the Department. Four applications to access government information were accepted and processed by the Department during the year. No applications to ‘obtain and

correct’ personal information were received during the year.The Department produces publications and information that the public can access free of charge on its website http://www.transport.nt.gov.au/publications

� OMBUDSMAN REVIEWS

The Ombudsman has conducted no formal reviews on the Department for the year. Ombudsman NT has contacted

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the Department to resolve complaints made to their office about the Department and these have been resolved directly with the customer.

Complaints to Ombudsman NT have resulted in:

� a number of changes to the Motor Vehicle Registry’s (MVR) operations

� a designated officer to manage complaints referred from the Ombudsman’s Office

� improving the Department’s and Ombudsman’s ability to respond to a complaint in a timely manner

� streamlining complaint record management by designating one officer to complaint management

� reviewing MVR template correspondence for “bounce back/undelivered” renewal reminder emails

� a designated officer assigned to manage MVR generic email account

� script response for Call Centre Customer Service Officers to use when speaking with clients on various issues i.e. undelivered renewal reminders; changed office-opening hours.

Ombudsman NT has contacted the Department to

RESOLVE COMPLAINTS made to their office about the Department and these have been resolved directly with the customer

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05LEGISLATION

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Legislation and administrative responsibilitiesThe Department of Transport administers a range of legislation under the ministerial portfolio for the Minister for Transport.

Acts � Aerodromes Act Repeal Act

� AustralAsia Railway Corporation Act

� AustralAsia Railway (Special Provisions) Act

� AustralAsia Railway (Third Party Access) Act

� Commercial Passenger (Road) Transport Act

� Control of Roads (except Part IV) Act

� Marine Act

� Marine Safety (Domestic Commercial Vessel) (National Uniform Legislation) Act

� Motor Vehicles Act (except Part V)

� Ports Management Act

� Public Transport (Passenger Safety) Act

� Rail Safety (National Uniform Legislation) Act

� Road Transport Reform (Vehicles and Traffic) (Northern Territory) Act

� Traffic Act

New or amended legislation for 2014–15Ports Management Act 2015, commenced in stages 9 June and 1 July 2015

This new Act provides for the future regulatory framework for a privately operated Port of Darwin. The opportunity was also taken at the same time to introduce an improved regulatory framework for the control, management and operation of all designated ports in the Northern Territory, by amalgamating legislative regimes currently operating across different ports. It is part of a package of reforms designed to facilitate the Northern Territory Government seeking private investment opportunities in the Port of Darwin.

The regulatory regime created under this Act allows private port operators of designated ports to have day to day control of port operations, while ensuring that the Northern Territory retains a number of residual regulatory and operational functions relating to (among other things) maritime safety, vessel safety, pilotage, and port access and pricing, to ensure the ongoing good, proper and safe operation of port operations. The new regime commenced on 1 July 2015.

Legislation

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Amending LegislationPorts Management (Repeals and Related and Consequential Amendments) Act 2015, commenced in stages 9 June and 1 July 2015.

This Act provided consequential amendments to existing legislation impacted by the new Ports Management Act. It incorporated necessary changes to the Marine Act, which facilitated the new port management regime for the Northern Territory.

Motor Vehicles (Private Car Parking) Amendment Act 2015, commenced 1 June 2015.

This Act amended the Motor Vehicles Act to abrogate any entitlement to a preliminary discovery order against the Registrar of Motor Vehicles for the purpose of recovering provide car park fees.

Rail Safety National Uniform Legislation) Amendment Regulations 2015, commenced 18 March 2015.

These amendments were made to align current provisions relating to taking blood samples for the purpose of drug and alcohol testing with the Northern Territory Traffic Act provisions.

Marine (General) Amendment Regulations 2015, commenced 1 May 2015.

These regulations deliver improved safety provisions for

recreational vessels operating in the Northern Territory, which were identified through the Recreational Vessel Regulatory Review.

Port Management Regulations 2015, commenced 1 July 2015.

These regulations were made in support of the new Ports Management Act to allow the effective operation of the new Northern Territory port management regime.

Motor Vehicles (Fees and Charges) Amendment Regulations 2015, commenced on 1 July 2015.

These regulations amend the Motor Vehicles (Fees and Charges) Regulations to deliver a 1.5 per cent increase in heavy vehicle registration charges on 1 July 2015, with a further 1.5 per cent increase to take effect from 1 January 2016.

Major legislation projects progressed during 2014–15Impounding and ForfeiturePublic consultation was undertaken on the expanded Forfeiture and Impounding Regime within the Traffic Act. Responses indicated strong support for the expanded regime to include impounding and forfeiture for drink/drug driving, dangerous driving and evading police offences. Draft legislation has been prepared and the new regime may be in place by early 2016.

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Random Drug Testing for all driversLegislative amendments to the Traffic Act have been prepared which allow for random drug testing for all drivers in the Northern Territory. This legislation is expected to commence before the end of 2015.

Control of Roads Act ReviewThe Control of Roads Review is progressing and consultation with stakeholders about streamlining provisions and reducing red tape where practical is underway. Outcomes of the consultation and a proposed policy position are expected to be finalised by the end of the year for Government’s consideration. Legislative amendments will occur during 2015–16.

Review of the Motor Vehicles and Traffic Acts The outcomes from the review of these two Acts were submitted to Government and approved in February 2015. Drafting instructions have been issued to create a new Traffic Safety Act and a Heavy Vehicle Safety Act. The new legislation is expected to be introduced into Parliament in late 2016.

Commercial Passenger (Road) Transport Act ReviewPublic consultation has been completed. Information from the consultation process is being reviewed. A recommendation report is expected to be considered by Government before the end of 2015.

Public Transport (Passenger Safety) Act ReviewA review of the powers and functions of the Transit officers is currently underway with a view to improving passenger and driver safety. Amending legislation is expected to be introduced in early 2016.

96

06FINANCIAL REPORT

97

DEPARTMENT OF TRANSPORT

� FINANCIAL STATEMENT OVERVIEW For the year ended 30 June 2015

The Department of Transport (the Department) provides quality transport infrastructure, services and systems to support growth in the Northern Territory. The Department plays a central role in the sustainable development of the Territory by forecasting demand and providing:

� roads, transport and infrastructure strategic planning to develop and connect communities across the Territory;

� regulatory and enforcement services covering road transport and marine safety;

� effective and efficient transport services including driver licensing, vehicle registration and public transport services; and

� policy development and implementation of local and national transport reforms.

The Department’s outputs are Passenger Transport, Registration, Licensing and Road Safety, Transport Regulation and Compliance, Transport Infrastructure Planning, Transport Assets, Transport Planning, Policy and Reform, and Corporate and Governance.

Financial PerformanceThe Department’s financial performance resulted in an operating deficit of

$64.6 million against a budgeted $63.6 million deficit. Deficit results are planned as depreciation expenses ($59.7 million actual result) are not funded through output appropriation under the Territory’s Financial Management Framework.

The operating result was within the Department’s target, a net result of total income lower than budgeted by 1 percent and expenditure almost in line with budget. It should be noted that there were significant unfunded expenses within the Department of Transport such as expenses for disaster maintenance and transportation provided as part of the recovery efforts for cyclones Lam and Nathan which were fully offset by significant underspends in grants due to delays in the finalisation of agreements, of which will be subject to a carryover adjustment into the 2015–16 financial year.

Summary of Financial PerformanceFigure 1 summarises total income and total expenditure over the 2014–15 financial year from the original budget published in May 2014 to the final approved budget, which was revised in June 2015, and the actual result as at June 2015.

Department of Transport Financial Report

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DEPARTMENT OF TRANSPORT

IncomeTotal operating income for 2014–15 was $188.4 million, slightly lower than the final approved budget of $189.7 million. The decrease of 1 percent is primarily due to a decrease in grants received from the Commonwealth mainly due to timing delays of the Heavy Vehicle Safety and Productivity Program. There are other items offsetting this reduced income such as goods and services received free of charge from the Department of Corporate and Information Services (DCIS), which are slightly higher than budgeted. This will be amended in the revised budget for 2015–16.

This is a notional income and it does not have an impact on the operating result of the Department as it is fully offset by notional expenditure of the same amount.

As shown in the Operating Income Profile below, Output Appropriation of $157 million is the main funding source for the Department, followed by Commonwealth Appropriation funding of $17.3 million. The Commonwealth funds primarily relate to repairs and maintenance on National Highways. Sales of goods and services of $11.2 million mainly relates to Motor Vehicle Registry administration and inspection charges and bus ticket sales.

Figure 1

Original Budget - May 2014 Final Approved Budget - June 2015

Actual - 30 June 2015

300

250

200

150

100

50

0

188

236

189.7

253.3

188.4

253

$ M

illio

n

Total Income Total Expenditure

99

DEPARTMENT OF TRANSPORT

Operating ExpensesTotal operating expenses for 2014–15 was $253 million. Repairs and maintenance of $89.3 million constitute the greatest proportion of this cost, followed by purchases of goods and services of $63.9 million and employee expenses of $22.4 million as illustrated in the Operating Expense Profile below.

2014–15 Operating Income Profile

2014–15 Operating Expense Profile

Commonwealth appropriation $17.3M

Sales of goods and services $11.2M

Good and Services received free of charge $2.4M

Other income $0.4M

Current grants and subsidies $0.1M

Output appropriation $157M

Employee expensed $22.4M

Purchases of goods and services $63.9M

Repairs and maintenance $89.3M

Depreciation and amortisation $59.7M

Good and Services received free of charge $2.4M

Current grants and subsidies $13.6M

Property Management $1.7M

83.3%

9.2%

6%1.3%

0.2%0.1%

35%

24%

9%5%

25%

1%1%

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DEPARTMENT OF TRANSPORT

Repairs and maintenance costs are a substantial investment on Territory Roads undertaken by the Department on both the Territory and National Network. Total repairs and maintenance in 2014–15 of $89.3 million are funded predominantly by the Territory, with the Commonwealth contributing $16.8 million.

Provision of public transport is the other main component of operating expenditure with a total of $49 million spent on providing public transportation services, primarily public bus transport.

The table below shows actual spend against the total approved budget in 2014–15. Overall, the Department

spent $0.3 million more than budgeted. As seen below there were some significant variances such as additional repairs and maintenance costs of $10.8 million mainly relating to disaster maintenance including cyclones Lam and Nathan. The Department also carried expenditure of approximately $2.1 million relating to transportation costs as part of recovery arrangements for the cyclones. These expenses are fully offset by timing variance mainly in grants, which were under budget by $12.1 million in total due to delays in the finalisation of agreements relating to local roads traffic management, regional infrastructure fund and the heavy vehicle safety and productivity program.

Expenditure against Budget

2014–15

Budget $M

Actual $M

Variance $M

Operating expenses

Employee expenses 22.7 22.4 (0.3)

Purchases of goods and services (including property management)

63.1 65.6 2.5

Repairs and maintenance 78.5 89.3 10.8

Depreciation and amortisation 61.3 59.7 (1.6)

Other administrative expenses (DCIS free of charge)

1.9 2.4 0.5

Current grants and subsidies 6.4 4.9 (1.5)

Capital grants and subsidies 17.5 6.9 (10.6)

Community service obligations 1.9 1.9 0.0

Total 253.3 253 (0.3)

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DEPARTMENT OF TRANSPORT

Balance SheetThe Balance Sheet shows the Department’s net worth and financial position. The Department held assets totalling $4.62 billion at 30 June 2015.The largest component of the Department’s asset profile relates to infrastructure assets

(primarily the Territory road network), which was part of a major revaluation project in 2014–15 and included the revision of roads and bridges on a depreciated replacement cost basis with the net impact of increasing the value by $1.625 billion.

Asset Portfolio – Non Current Assets

Work in Progress $124.9M

Buildings $18.8M

Other $4.9M

Infrastructure $4.6B

96.9%

0.1%0.4%2.6%

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DEPARTMENT OF TRANSPORT

� FINANCIAL STATEMENT OVERVIEW For the year ended 30 June 2015

The Department held liabilities of $12.1 million as at 30 June 2015.

In 2014–15 the Department maintained a strong financial position with liabilities representing less than 0.3% of total assets.

Statement of Cash FlowThe Statement of Cash Flows represents cash received and applied during the year from operating, investing and financing activities. The table below summarises the movement of cash over the year.

The Department’s cash of $33.5 million at year end was slightly higher than budgeted which also includes capital expenditure and funding from the Commonwealth which due to timing variances was not fully spent and is part of carryover adjustments for future years.

Capital Spend The Department’s Capital Works Program, comprising mainly of capital works for roads on the Territory and National Network is a considerable investment each year.

In 2014–15, $134.8 million was spent across the transport network in capital works projects. The following significant projects were undertaken which are reflected in the agency’s balance sheet;

� Tiger Brennan Drive duplication - $31.8 million

� Alice Springs Rail Overpass - $16.7 million

� Central Arnhem Road Bridges - $14.4 million

� Arnhem Highway - various projects - $8.6 million

� Stuart Highway heavy vehicle intersection upgrades in Katherine - $4 million

� Strengthening and widening across the National Network - $5.5 million

� Strengthening urban arterial roads - $4.9 million

� Utopia Airstrip Upgrade - $3 million

� Regional Roads Productivity Package - $10 million

� Integrated Regional Transport Safety – Barge Landings – Nguiu - $2 million

2014–15 2014–15 2014–15Budget

$MActual

$MVariance

$MVariance

%

Cash Flow

Cash at beginning of year

28.6 28.6 - -

Cash received 364.1 361.6 (2.5) -0.7

Less cash spent 361.4 356.7 (4.7) -1.4

Cash at end of reporting period

31.3 33.5 2.2 7

Cash Flow Movement Summary

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DEPARTMENT OF TRANSPORT

� CERTIFICATION OF THE FINANCIAL STATEMENTS

We certify that the attached financial statements for the Department of Transport have been prepared from proper accounts and records in accordance with the prescribed format, the Financial Management Act and Treasurer’s Directions.

We further state that the information set out in the Comprehensive Operating Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement, and notes to and forming part of the financial statements, presents fairly the financial performance and cash flows for the year ended 30 June 2015 and the financial position on that date.

At the time of signing, we are not aware of any circumstances that would render the particulars included in the financial statements misleading or inaccurate.

Andrew Kirkman Fotis PapadakisA/Chief Executive Chief Financial Officer

7 September 2015 7 September 2015

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DEPARTMENT OF TRANSPORT

� COMPREHENSIVE OPERATING STATEMENT For the year ended 30 June 2015

Note 2015 2014 $’000 $’000

INCOME

Grants and subsidies revenue

Current 100 1,036

Capital - 8,000

Appropriation

Output 157,003 153,307

Commonwealth 17,284 16,525

Sales of goods and services 11,241 11,323

Goods and services received free of charge 4 2,437 4,821

Gain On Disposal of Assets - 1

Other income 357 104

TOTAL INCOME 3 188,422 195,117

EXPENSES

Employee expenses 22,411 20,648

Administrative expenses

Purchases of goods and services 5 63,898 60,453

Repairs and maintenance 89,272 103,184

Property Management 1,688 1,216

Depreciation and amortisation 8,9 59,715 49,350

Services free of charge 4 2,437 4,821

Other administrative expenses 1 7

Grants and subsidies expenses

Current 4,862 3,561

Capital 6,878 12,170

Community service obligations 1,909 2,900

TOTAL EXPENSES 3 253,071 258,309

NET DEFICIT (64,650) (63,192)

OTHER COMPREHENSIVE INCOME

Items that will not be reclassified to net deficit

Changes in Asset Revaluation Surplus 14 1,624,714 -

Other (55) -

TOTAL OTHER COMPREHENSIVE INCOME 1,624,659 -

COMPREHENSIVE RESULT 1,560,009 (63,192)

The Comprehensive Operating Statement is to be read in conjunction with the notes to the financial statements.

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DEPARTMENT OF TRANSPORT

� BALANCE SHEET As at 30 June 2015

Note 2015 2014 $’000 $’000

ASSETS

Current Assets

Cash and deposits 6 33,483 28,610

Receivables 7 5,351 4,706

Prepayments 54 18

Total Current Assets 38,889 33,334

Non-Current Assets

Advances and investments 396 396

Property, plant and equipment 8 4,583,276 2,859,688

Heritage and cultural assets 9 161 162

Total Non-Current Assets 4,583,832 2,860,246

TOTAL ASSETS 4,622,721 2,893,580

LIABILITIES

Current Liabilities

Deposits held 11 1,782 2,188

Payables 12 7,029 13,356

Provisions 13 2,595 2,420

Total Current Liabilities 11,405 17,964

Non-Current Liabilities

Provisions 13 753 752

Total Non-Current Liabilities 753 752

TOTAL LIABILITIES 12,158 18,716

NET ASSETS 4,610,563 2,874,864

EQUITY

Capital 1,855,309 1,679,620

Reserves 14 3,032,483 1,407,769

Accumulated funds (277,229) (212,525)

TOTAL EQUITY 4,610,563 2,874,864

The Balance Sheet is to be read in conjunction with the notes to the financial statements.

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DEPARTMENT OF TRANSPORT

� STATEMENT OF CHANGES IN EQUITY For the year ended 30 June 2015

Note Equity at 1 July

Comprehensive result

Transactions with owners in their capacity

as owners

Equity at 30 June

$’000 $’000 $’000 $’000

2014–15

Accumulated Funds (212,525) (64,650) - (277,175)

Transfers from Reserves - (55) - (55)

(212,525) (64,705) - (277,230)

Reserves

Asset Revaluation Reserve 14 1,407,769 1,624,714 3,032,483

1,407,769 1,624,714 - 3,032,483

Capital – Transactions with Owners

1,679,620 - - 1,679,620

Equity injections

Capital appropriation - - 61,514 61,514

Equity transfers in - - 27,615 27,615

Other Equity Injections - - 206 206

National partnership payments

- - 81,964 81,964

Commonwealth – capital - - 4,716 4,716

Equity withdrawals - - - -

Capital withdrawal - - - -

Equity transfers out - - (325) (325)

1,679,620 - 175,689 1,855,309

Total Equity at End of Financial Year

2,874,864 1,560,009 175,689 4,610,563

2013–14

Accumulated Funds (149,333) (63,192) - (212,525)

Transfers from reserves - - - -

(149,333) (63,192) - (212,525)

Reserves

Assets Revaluation Reserve 14 1,407,769 - - 1,407,769

1,407,769 - - 1,407,769

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DEPARTMENT OF TRANSPORT

Note Equity at 1 July Comprehensive result

Transactions with owners in their capacity

as owners

Equity at 30 June

$’000 $’000 $’000 $’000

Capital – Transactions with Owners

1,555,522 - - 1,555,522

Equity injections

Capital appropriation - - 40,550 40,550

Equity transfers in - - 18,523 18,523

Other Equity Injections - - - -

National partnership payments

- - 63,177 63,177

Commonwealth – capital - - 4,952 4,952

Equity withdrawals - - - -

Capital withdrawal - - (71) (71)

Equity transfers out - - (3,033) (3,033)

1,555,522 - 124,098 1,679,620

Total Equity at End of Financial Year

2,813,958 (63,192) 124,098 2,874,864

The Statement of Changes in Equity is to be read in conjunction with the notes to the financial statements.

� CASH FLOW STATEMENT For the year ended 30 June 2015

Note 2015 2014$’000 $’000

CASH FLOWS FROM OPERATING ACTIVITIES

Operating Receipts

Grants and subsidies received

Current 100 1,036

Capital - 8,000

Appropriation

Output 157,003 153,307

Commonwealth 17,284 16,525

Receipts from sales of goods and services 39,201 40,211

Total Operating Receipts 213,588 219,079

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DEPARTMENT OF TRANSPORT

Note 2015 2014$’000 $’000

Operating Payments

Payments to employees (22,112) (20,478)

Payments for goods and services (186,201) (186,616)

Grants and subsidies paid

Current (4,862) (3,561)

Capital (6,878) (6,253)

Community service obligations (1,909) (2,900)

Total Operating Payments (221,962) (219,808)

Net Cash Used in Operating Activities 15 (8,374) (729)

CASH FLOWS FROM INVESTING ACTIVITIES

Investing Receipts

Proceeds from asset sales - 1

Total Investing Receipts - 1

Investing Payments

Purchases of assets (134,745) (129,494)

Advances and investing payments - (330)

Total Investing Payments (134,745) (129,824)

Net Cash Used in Investing Activities (134,745) (129,823)

CASH FLOWS FROM FINANCING ACTIVITIES

Financing Receipts

Deposits received (407) 582

Equity injections

Capital appropriation 61,514 40,550

Commonwealth appropriation 86,679 68,129

Other Equity Injections 206 -

Total Financing Receipts 147,992 109,261

Financing Payments

Equity withdrawals - (71)

Total Financing Payments - (71)

Net Cash From Financing Activities 147,992 109,190

Net Decrease in cash held 4,873 (21,362)

Cash at beginning of financial year 28,610 49,972

CASH AT END OF FINANCIAL YEAR 6 33,483 28,610

The Cash Flow Statement is to be read in conjunction with the notes to the financial statements.

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DEPARTMENT OF TRANSPORT

� INDEX OF NOTES TO THE FINANCIAL STATEMENTS

Note

1. Objectives and Funding

2. Statement of Significant Accounting Policies

INCOME

3. Comprehensive Operational Statement by Output Group

4. Goods and Services Received Free of Charge

EXPENSES

5. Purchases of Goods and Services

ASSETS

6. Cash and Deposits

7. Receivables

8. Property, Plant and Equipment

9. Heritage and Cultural Assets

10. Fair Value Measurement of Non-Financial Assets

LIABILITIES

11. Deposits Held

12. Payables

13. Provisions

EQUITY

14. Reserves

OTHER DISCLOSURES

15. Notes to the Cash Flow Statement

16. Financial Instruments

17. Commitments

18. Contingent Liabilities and Contingent Assets

19. Events Subsequent to Balance Date

20. Accountable Officer’s Trust Account

21. Write-offs, Postponements, Waivers, Gifts and Ex Gratia Payments

22. Schedule of Territory Items

23. Budgetary Information

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DEPARTMENT OF TRANSPORT

� 1. OBJECTIVES AND FUNDING The Department of Transport provides safe and effective transport systems and services to meet current and emerging community and Northern Territory Government needs. Additional information on key functional responsibilities of the Department can be found in the Performance Reporting section of the Annual Report.

The Department is predominantly funded by, and is dependent on, the receipt of Parliamentary appropriations. The financial statements encompass all funds through which the agency controls resources to carry on its functions and deliver outputs. For reporting purposes, the Department has two output groups. Note 3 provides summary of financial information in the form of a Comprehensive Operating statement by Output Group.

� 2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

a) Basis of AccountingThe financial statements have been prepared in accordance with the requirements of the Financial Management Act and related Treasurer’s Directions. The Financial Management Act requires the Department to prepare financial statements for the year ended 30 June based on the form determined by the Treasurer. The form of agency financial statements is to include:

(i) a Certification of the Financial Statements;(ii) a Comprehensive Operating Statement;(iii) a Balance Sheet;(iv) a Statement of Changes in Equity;(v) a Cash Flow Statement; and(vi) applicable explanatory notes to the financial statements.

The financial statements have been prepared using the accrual basis of accounting, which recognises the effect of financial transactions and events when they occur, rather than when cash is paid out or received. As part of the preparation of the financial statements, all intra agency transactions and balances have been eliminated.

Except where stated, the financial statements have also been prepared in accordance with the historical cost convention.

The form of the agency financial statements is also consistent with the requirements of Australian Accounting Standards. The effects of all relevant new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are effective for the current annual reporting period have been evaluated. The Standards and Interpretations and their impacts are:

AASB 1031 Materiality (2013), AASB 2013-9 Amendments to Australian Accounting Standards – Conceptual Framework, Materiality and Financial Instruments, AASB 2014-1 Amendments to Australian Accounting Standards (Part C –Materiality)

Revised AASB 1031 is an interim standard that cross-references to other standards and the Framework for the Preparation and Presentation of Financial Statements that contain guidance on materiality. The standard does not impact the financial statements.

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DEPARTMENT OF TRANSPORT

AASB 1055 Budgetary Reporting

AASB 1055 sets out budgetary reporting requirements for not-for-profit entities within the General Government Sector. The required disclosures comprise a separate note accompanying the financial statements.

AASB 2012-3 Amendments to Australian Accounting Standards – Offsetting Financial Assets and Financial Liabilities [AASB 132]

The standard addresses inconsistencies in current practice when applying the offsetting criteria in AASB 132 Financial Instruments: Presentation. The standard does not impact the financial statements.

AASB 2013-3 Amendments to AASB 136 – Recoverable Amount Disclosures for Non-Financial Assets

The amendments to AASB 136 Impairment of Assets address the disclosure of information about the recoverable amount of impaired assets if that amount is based on fair value less costs of disposal. The standard does not impact the financial statements.

b) Australian Accounting Standards and Interpretations Issued but not yet EffectiveAt the date of authorisation of the financial statements, the Standards and Interpretations listed below were in issue but not yet effective.

Standard/Interpretation Summary Effective for annual reporting periods beginning on or after

Impact on financial statements

AASB 9 Financial Instruments (Dec 2014), AASB 2014-1 Amendments to Australian Accounting Standards (Part E – Financial Instruments), AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB 9 (Dec 2014)

The final version of AASB 9 brings together the classification and measurement, impairment and hedge accounting phases of the IASB’s project to replace AASB 139 Financial Instruments: Recognition and Measurement. This version adds a new expected loss impairment model and limited amendments to classification and measurement for financial assets.

1 Jan 2018

Minimal effect on the financial statements.

AASB 15 Revenue from Contracts with Customers, AASB 2014-5 Amendments to Australian Accounting Standards arising from AASB

AASB 15 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. It replaces several Standards and Interpretations, including AASB 111 Construction Contracts, AASB 118 Revenue, Interpretation 15 Agreements for the Construction of Real Estate, and Interpretation 18 Transfers of Assets from Customers.

1 Jan 2017

Minimal effect on the financial statements.

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DEPARTMENT OF TRANSPORT

AASB 2014-4 Amendments to Australian Accounting Standards – Clarification of Acceptable Methods of Depreciation and Amortisation [AASB 116 & 138]

Amends AASB 116 Property, Plant and Equipment and AASB 138 Intangible Assets to provide additional guidance on how the depreciation or amortisation of property, plant and equipment and intangible assets should be calculated.

1 Jan 2016

Minimal effect on the financial statements

AASB 2014-6 Amendments to Australian Accounting Standards – Agriculture: Bearer Plants [AASB 101, 116, 117, 123, 136, 140 & 141]

Biological assets that meet the definition of a bearer plant to be accounted for as property, plant and equipment in accordance with AASB 116 Property, Plant and Equipment, instead of AASB 141 Agriculture.

1 July 2016

Minimal effect on the financial statements

AASB 2015-1 Amendments to Australian Accounting Standards – Annual Improvements to Australian Accounting Standards 2012–2014 Cycle [AASB 1, 2, 3, 5, 7, 11, 110, 119, 121, 133, 134, 137 & 140]

Amends a number of pronouncements as a result of the IASB’s 2012–2014 annual improvements cycle.

1 Jan 2016

Minimal effect on the financial statements.

AASB 2015-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101 [AASB 7, 101, 134 & 1049]

Includes narrow-focus amendments to address concerns about existing presentation and disclosure requirements, and to ensure entities are able to use judgement when applying a standard in determining what information to disclose.

1 Jan 2016

Minimal effect on the financial statements.

AASB 2015-6 Amendments to Australian Accounting Standards – Extending Related Party Disclosures to Not-for-Profit Public Sector Entities [AASB 10, 124 & 1049]

Extends the scope of AASB 124 Related Party Disclosures to not-for-profit public sector entities.

1 July 2016

Minimal effect on the financial statements.

c) Agency and Territory ItemsThe financial statements of the Department include income, expenses, assets, liabilities and equity over which the Department has control (Agency items). Certain items, while managed by the Department, are controlled and recorded by the Territory rather than the agency (Territory items). Territory items are recognised and recorded in the Central Holding Authority as discussed below.

Central Holding Authority

The Central Holding Authority is the ‘parent body’ that represents the Government’s ownership interest in Government-controlled entities.

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DEPARTMENT OF TRANSPORT

The Central Holding Authority also records all Territory items, such as income, expenses, assets and liabilities controlled by the Government and managed by agencies on behalf of the Government. The main Territory item is Territory income, which includes taxation and royalty revenue, Commonwealth general purpose funding (such as GST revenue), fines, and statutory fees and charges.

The Central Holding Authority also holds certain Territory assets not assigned to agencies as well as certain Territory liabilities that are not practical or effective to assign to individual agencies such as unfunded superannuation and long service leave.

The Central Holding Authority recognises and records all Territory items, and as such, these items are not included in the Department’s financial statements. However, as the Department is accountable for certain Territory items managed on behalf of Government, these items have been separately disclosed in Note 22 – Schedule of Territory Items.

d) ComparativesWhere necessary, comparative information for the 2013–14 financial year has been reclassified to provide consistency with current year disclosures.

e) Presentation and Rounding of AmountsAmounts in the financial statements and notes to the financial statements are presented in Australian dollars and have been rounded to the nearest thousand dollars, with amounts of $500 or less being rounded down to zero. Amounts may not add due to rounding.

f) Changes in Accounting Policies There are no changes to accounting policies adopted in 2014–15 as a result of management decisions.

g) Accounting Judgments and Estimates The preparation of the financial report requires the making of judgments and estimates that affect the recognised amounts of assets, liabilities, revenues and expenses and the disclosure of contingent liabilities. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Judgments and estimates that have significant effects on the financial statements are disclosed in the relevant notes to the financial statements. Notes that include significant judgments and estimates are:

� Employee Benefits – Note 2(t) and Note 13: Non-current liabilities in respect of employee benefits are measured as the present value of estimated future cash outflows based on the appropriate Government bond rate, estimates of future salary and wage levels and employee periods of service.

� Contingent Liabilities – Note 18: The present value of material quantifiable contingent liabilities are calculated using a discount rate based on the published 10-year Government bond rate.

� Allowance for Impairment Losses – Note 2(n), 7: Receivables and 16: Financial Instruments.

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DEPARTMENT OF TRANSPORT

� Depreciation and Amortisation – Note 2(k), Note 8: Property, Plant and Equipment, and Note 9: Heritage and Cultural Assets.

h) Goods and Services TaxIncome, expenses and assets are recognised net of the amount of Goods and Services Tax (GST), except where the amount of GST incurred on a purchase of goods and services is not recoverable from the Australian Tax Office (ATO). In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables in the Balance Sheet.

Cash flows are included in the Cash Flow Statement on a gross basis. The GST components of cash flows arising from investing and financing activities, which are recoverable from, or payable to, the ATO are classified as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable or payable unless otherwise specified.

i) Income RecognitionIncome encompasses both revenue and gains.

Income is recognised at the fair value of the consideration received, exclusive of the amount of GST. Exchanges of goods or services of the same nature and value without any cash consideration being exchanged are not recognised as income.

Grants and Other Contributions

Grants, donations, gifts and other non-reciprocal contributions are recognised as revenue when the Department obtains control over the assets comprising the contributions. Control is normally obtained upon receipt.

Contributions are recognised at their fair value. Contributions of services are only recognised when a fair value can be reliably determined and the services would be purchased if not donated.

Appropriation

Output appropriation is the operating payment to each Department for the outputs they provide and is calculated as the net cost of the Department’s outputs after taking into account funding from the Department’s income. It does not include any allowance for major non-cash costs such as depreciation. Commonwealth appropriation follows from the Intergovernmental Agreement on Federal Financial Relations, resulting in Special Purpose Payments (SPPs) and National Partnership (NP) payments being made by the Commonwealth Treasury to state treasuries, in a manner similar to arrangements for GST payments. These payments are received by the Department of Treasury and Finance on behalf of the Central Holding Authority and then on passed to the relevant agencies as Commonwealth appropriation.

Revenue in respect of appropriations is recognised in the period in which the Department gains control of the funds.

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DEPARTMENT OF TRANSPORT

Sale of Goods

Revenue from the sale of goods is recognised (net of returns, discounts and allowances) when:

� the significant risks and rewards of ownership of the goods have transferred to the buyer;

� the Department retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

� the amount of revenue can be reliably measured;

� it is probable that the economic benefits associated with the transaction will flow to the Department; and

� the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of Services

Revenue from rendering services is recognised by reference to the stage of completion of the contract. The revenue is recognised when:

� the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and

� it is probable that the economic benefits associated with the transaction will flow to the entity.

Interest Revenue

Interest revenue is recognised as it accrues, taking into account the effective yield on the financial asset.

Goods and Services Received Free of Charge

Goods and services received free of charge are recognised as revenue when a fair value can be reliably determined and the resource would have been purchased if it had not been donated. Use of the resource is recognised as an expense.

Disposal of Assets

A gain or loss on disposal of assets is included as a gain or loss on the date control of the asset passes to the buyer, usually when an unconditional contract of sale is signed. The gain or loss on disposal is calculated as the difference between the carrying amount of the asset at the time of disposal and the net proceeds on disposal.

Contributions of Assets

Contributions of assets and contributions to assist in the acquisition of assets, being non reciprocal transfers, are recognised, unless otherwise determined by Government, as gains when the Department obtains control of the asset or contribution. Contributions are recognised at the fair value received or receivable.

j) Repairs and Maintenance ExpenseFunding is received for repairs and maintenance works associated with the Department’s assets as part of output revenue. Costs associated with repairs and maintenance works on the Department’s assets are expensed as incurred.

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k) Depreciation and Amortisation ExpenseItems of property, plant and equipment, including buildings but excluding land and road formation, have limited useful lives and are depreciated or amortised using the straight-line method over their estimated useful lives.

Amortisation applies in relation to intangible non-current assets with limited useful lives and is calculated and accounted for in a similar manner to depreciation.

The estimated useful lives for each class of asset are in accordance with the Treasurer’s Directions and are determined as follows:

2015 2014Buildings 20 - 50 years 20 - 50 years

Infrastructure

Bridges 70 Years 70 Years

Sealed pavement 40 Years 40 Years

Unsealed pavement 8 Years 8 Years

Road formation Infinite – not depreciated Infinite – not depreciated

Street lights and traffic control systems

15 – 20 Years 15 – 20 Years

Plant and Equipment1 2 - 15 Years 2 - 15 Years

Leased Plant and Equipment Lease term Lease term

Heritage and Cultural Assets 100 Years 100 Years

1Includes computer software, computer hardware and transport equipment.

Assets are depreciated or amortised from the date of acquisition or from the time an asset is completed and held ready for use.

l) Interest ExpenseInterest expenses include interest and finance lease charges. Interest expenses are expensed in the period in which they are incurred.

m) Cash and DepositsFor the purposes of the Balance Sheet and the Cash Flow Statement, cash includes cash on hand, cash at bank and cash equivalents. Cash equivalents are highly liquid short-term investments that are readily convertible to cash. Cash at bank includes monies held in the Accountable Officer’s Trust Account (AOTA) that are ultimately payable to the beneficial owner – refer also to Note 20.

n) ReceivablesReceivables include accounts receivable and other receivables and are recognised at fair value less any allowance for impairment losses.

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The allowance for impairment losses represents the amount of receivables the Department estimates are likely to be uncollectible and are considered doubtful. Analyses of the age of the receivables that are past due as at the reporting date are disclosed in an aging schedule under credit risk in Note 16 Financial Instruments. Reconciliation of changes in the allowance accounts is also presented.

Accounts receivable are generally settled within 30 days and other receivables within 30 days.

o) Property, Plant and EquipmentAcquisitions

All items of property, plant and equipment with a cost, or other value, equal to or greater than $10 000 are recognised in the year of acquisition and depreciated as outlined below. Items of property, plant and equipment below the $10 000 threshold are expensed in the year of acquisition.

The construction cost of property, plant and equipment includes the cost of materials and direct labour, and an appropriate proportion of fixed and variable overheads.

Complex Assets

Major items of plant and equipment comprising a number of components that have different useful lives, are accounted for as separate assets. The components may be replaced during the useful life of the complex asset.

Subsequent Additional Costs

Costs incurred on property, plant and equipment subsequent to initial acquisition are capitalised when it is probable that future economic benefits in excess of the originally assessed performance of the asset will flow to the Department in future years. Where these costs represent separate components of a complex asset, they are accounted for as separate assets and are separately depreciated over their expected useful lives.

Construction (Work in Progress)

As part of the financial management framework, the Department of Infrastructure is responsible for managing general government capital works projects on a whole of Government basis. Therefore appropriation for some capital works, in the Department’s case (infrastructure headworks and transport asset projects) are provided directly to the Department of Infrastructure and the cost of construction work in progress is recognised as an asset of that Department. Once completed, works in progress (assets) are transferred to the agency.

Transport Infrastructure Planning capital works and associated cash to deliver these works is managed directly by our Department and project managed by Construction Division. Once completed, capital works assets are either capitalised to the agency’s Fixed Asset Register to the extent they meet capitalisation criteria, expensed, or where undertaken for other parties such as Local Government or Councils are gifted as capital grants (for example, Commonwealth funded Black Spot works on Council roads).

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p) Revaluations and ImpairmentRevaluation of Assets

Subsequent to initial recognition, assets belonging to the following classes of non-current assets are revalued with sufficient regularity to ensure that the carrying amount of these assets does not differ materially from their fair value at reporting date:

� land;

� buildings;

� infrastructure assets;

� heritage and cultural assets;

The fair value of the Department’s infrastructure assets is based on their depreciated replacement cost.

Plant and equipment are stated at historical cost less depreciation, which is deemed to equate to fair value.

The unique nature of some of the heritage and cultural assets may preclude reliable measurement. Such assets have not been recognised in the financial statements.

Impairment of Assets

An asset is said to be impaired when the asset’s carrying amount exceeds its recoverable amount.

Non-current physical and intangible agency assets are assessed for indicators of impairment on an annual basis. If an indicator of impairment exists, the Department determines the asset’s recoverable amount. The asset’s recoverable amount is determined as the higher of the asset’s depreciated replacement cost and fair value less costs to sell. Any amount by which the asset’s carrying amount exceeds the recoverable amount is recorded as an impairment loss.

Impairment losses are recognised in the Comprehensive Operating Statement. They are disclosed as an expense unless the asset is carried at a revalued amount. Where the asset is measured at a revalued amount, the impairment loss is offset against the asset revaluation surplus for that class of asset to the extent that an available balance exists in the asset revaluation surplus.

In certain situations, an impairment loss may subsequently be reversed. Where an impairment loss is subsequently reversed, the carrying amount of the asset is increased to the revised estimate of its recoverable amount. A reversal of an impairment loss is recognised in the Comprehensive Operating Statement as income, unless the asset is carried at a revalued amount, in which case the impairment reversal results in an increase in the asset revaluation surplus. Note 14 provides additional information in relation to the asset revaluation surplus.

q) Leased AssetsLeases under which the Department assumes substantially all the risks and rewards of ownership of an asset are classified as finance leases. Other leases are classified as operating leases.

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Finance Leases

Finance leases are capitalised. A leased asset and a lease liability equal to the lower of the fair value of the leased property and present value of the minimum lease payments, each determined at the inception of the lease, are recognized.

Lease payments are allocated between the principal component of the lease liability and the interest expense.

Operating Leases

Operating lease payments made at regular intervals throughout the term are expensed when the payments are due, except where an alternative basis is more representative of the pattern of benefits to be derived from the leased property. Lease incentives under an operating lease of a building or office space is recognised as an integral part of the consideration for the use of the leased asset. Lease incentives are to be recognised as a deduction of the lease expenses over the term of the lease.

r) Deposits HeldDeposits Held includes the Accountable Officers Trust Account (AOTA), clearing monies, and non-Government works, which consists of financial obligations payable within the next twelve months. The AOTA is for the receipt of monies to be held in trust in accordance with Section 7 of the Financial Management Act. Clearing monies are public monies held in transit. Non-Government works are transactions relating to a recoverable works project which will not become a Northern Territory Government asset upon completion. Refer to Note 11 and 20.

s) PayablesLiabilities for accounts payable and other amounts payable are carried at cost, which is the fair value of the consideration to be paid in the future for goods and services received, whether or not billed to the Department. Accounts payable are normally settled within 30 days. Refer to Note 12.

t) Employee Benefits Provision is made for employee benefits accumulated as a result of employees rendering services up to the reporting date. These benefits include wages and salaries and recreation leave. Liabilities arising in respect of wages and salaries, recreation leave and other employee benefit liabilities that fall due within twelve months of reporting date are classified as current liabilities and are measured at amounts expected to be paid. Non-current employee benefit liabilities that fall due after twelve months of the reporting date are measured at present value, calculated using the Government long-term bond rate. Refer to Note 13.

No provision is made for sick leave, which is non-vesting, as the anticipated pattern of future sick leave to be taken is less than the entitlement accruing in each reporting period.

Employee benefit expenses are recognised on a net basis in respect of the following categories:

� wages and salaries, non-monetary benefits, recreation leave, sick leave and other leave entitlements; and

� other types of employee benefits.

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As part of the financial management framework, the Central Holding Authority assumes the long service leave liabilities of Government agencies, including the Department of Transport and as such no long service leave liability is recognised in the Department’s financial statements.

u) SuperannuationEmployees’ superannuation entitlements are provided through the:

� Northern Territory Government and Public Authorities Superannuation Scheme (NTGPASS);

� Commonwealth Superannuation Scheme (CSS); or

� non-government employee-nominated schemes for those employees commencing on or after 10 August 1999.

The Department makes superannuation contributions on behalf of its employees to the Central Holding Authority or non-government employee-nominated schemes. Superannuation liabilities related to government superannuation schemes are held by the Central Holding Authority and as such are not recognised in the Department’s financial statements.

v) Contributions by and Distributions to GovernmentThe Department may receive contributions from Government where the Government is acting as owner of the Department. Conversely, the Department may make distributions to Government. In accordance with the Financial Management Act and Treasurer’s Directions, certain types of contributions and distributions, including those relating to administrative restructures, have been designated as contributions by, and distributions to, Government. These designated contributions and distributions are treated by the Department as adjustments to equity.

The Statement of Changes in Equity provides additional information in relation to contributions by, and distributions to, Government.

w) CommitmentsDisclosures in relation to capital and other commitments, including lease commitments are shown at Note 17.

Commitments are those contracted as at 30 June where the amount of the future commitment can be reliably measured.

x) Financial InstrumentsA financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets and liabilities are recognized on the Balance Sheet when the agency becomes a party to the contractual provisions of the financial instrument. The agency’s financial instruments include cash and deposits; receivables; advances and payables.

Exposure to interest rate risk, credit risk, price risk and liquidity risk arise in the normal course of activities. The agency’s investments, and borrowings are predominantly manages through the Northern Territory Treasury Corporation (NTTC) adopting strategies to minimize the risk.

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Classification of Financial Instruments

AASB 7 Financial Instruments: Disclosures requires financial instruments to be classified and disclosed within specific categories depending on their nature and purpose.

Financial assets are classified into the following categories:

� financial assets at fair value through profit or loss;

� held-to-maturity investments;

� loans and receivables; and

� available-for-sale financial assets.

Financial liabilities are classified into the following categories:

� financial liabilities at fair value through profit or loss (FVTPL); and

� financial liabilities at amortised cost.

Financial Assets or Financial Liabilities at Fair Value through Profit or Loss

Financial instruments are classified as at FVTPL when the instrument is either held for trading or is designated as at FVTPL.

An instrument is classified as held for trading if it is:

� acquired or incurred principally for the purpose of selling or repurchasing it in the near term with an intention of making a profit; or

� part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking; or

� a derivative that is not a financial guarantee contract or a designated and effective hedging instrument.

A financial instrument may be designated as at FVTPL upon initial recognition if:

� such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise; or

� the instrument forms part of a group of financial instruments, which is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy, and information about the grouping is provided internally on that basis; or

� it forms part of a contract containing one or more embedded derivatives, and AASB 139 Financial Instruments: Recognition and Measurement permits the contract to be designated as at FVTPL.

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DEPARTMENT OF TRANSPORT

Loans and Receivables

For details refer to Note 2 (n).

Note 16 provides additional information on financial instruments.

y) Fair Value MeasurementFair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Refer to Note 10 and 16.

Fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The highest and best use takes into account the use of the asset that is physically possible, legally permissible and financially feasible.

When measuring fair value, the valuation techniques used maximize the use of relevant observable inputs and minimise the use of unobservable inputs. Unobservable inputs are used to the extent that sufficient relevant and reliable observable inputs are not available for similar assets/liabilities.

Observable inputs are publicly available data that are relevant to the characteristics of the assets/liabilities being valued. Observable inputs used by the agency include, but are not limited to, published sales data for land and general office buildings.

Unobservable inputs are data, assumptions and judgments that are not available publicly, but are relevant to the characteristics of the assets/liabilities being valued. Such inputs include internal agency adjustments to observable data to take account of particular and potentially unique characteristics/functionality of assets/liabilities and assessments of physical condition and remaining useful life.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the following fair value hierarchy based on the inputs used:

� Level 1 – inputs are quoted prices in active markets for identical assets or liabilities;

� Level 2 – inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and

� Level 3 – inputs are unobservable.

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DEPARTMENT OF TRANSPORT

� 3. COMPREHENSIVE OPERATING STATEMENT BY OUTPUT GROUP

Note Transport Corporate and Governance

Total

2015 2014 2015 2014 2015 2014$’000 $’000 $’000 $’000 $’000 $’000

INCOME

Grants and subsidies revenue

Current 100 1,036 - - 100 1,036

Capital - 8,000 - - - 8,000

Appropriation

Output 150,277 148,252 6,726 5,055 157,003 153,307

Commonwealth 17,284 16,525 - - 17,284 16,525

Sales of goods and services 4 11,237 11,323 4 - 11,241 11,323

Interest Revenue - - - - - -

Goods and services received free of charge

2,260 4,536 177 285 2,437 4,821

Gain on disposal of assets - 1 - - - 1

Other income 340 100 17 4 357 104

TOTAL INCOME 3 181,498 189,773 6,924 5,344 188,422 195,117

EXPENSES Employee expenses Administration expenses

20,689 19,295 1,722 1,353 22,411 20,648

Purchases of goods and services

5 58,550 57,068 5,348 3,385 63,898 60,453

Repairs and maintenance 89,272 103,184 - - 89,272 103,184

Property Management 1,677 1,200 11 16 1,688 1,216

Depreciation and amortisation 8,9 59,715 49,350 - - 59,715 49,350

Services free of charge 4 2,260 4,535 177 285 2,437 4,821

Other administrative expenses

Grants and Subsidies expenses 1 3 - 4 1 7

Current 4,862 3,561 - - 4,862 3,561

Capital 6,878 12,170 - - 6,878 12,170

Community Service Obligations 1,909 2,900 - - 1,909 2,900

Interest Expenses - - - - - -

TOTAL EXPENSES 3 245,813 253,266 7,258 5,043 253,071 258,309NET DEFICIT (64,315) (63,493) (334) 301 (64,650) (63,192)

OTHER COMPREHENSIVE INCOMEItems that will not be reclassified to deficit Changes in Assets Revaluation Surplus

14 1,624,714 - - - 1,624,714 -

Other (55) - - - (55) -

TOTAL OTHER COMPREHENSIVE INCOME

1,624,659 - - 1,624,659

COMPREHENSIVE RESULT 1,560,344 (63,493) (334) 301 1,560,009 (63,192)

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DEPARTMENT OF TRANSPORT

2015 2014$’000 $’000

� 4. GOODS AND SERVICES RECEIVED FREE OF CHARGE

Corporate and information services 2,437 4,821

Total Goods and Services Received Free of Charge 2,437 4,821

� 5. PURCHASES OF GOODS AND SERVICES The net deficit has been arrived at after charging the following expenses:

Goods and services expenses:

Agency service arrangements – (mainly bus contracts) 49,029 49,535

Information technology charges 3,768 4,067

Consultants (1) 1,532 967

Motor vehicle expenses 516 517

Marketing and promotion (2) 481 475

Document production 280 425

Legal expenses (3) 613 311

Survey, drafting and drilling - 302

Official duty fares 1,672 253

Recruitment (4) 70 147

Training and study 188 118

Travelling allowance 127 107

(1) Includes marketing, promotion and IT consultants.(2) Includes advertising for marketing and promotion but excludes marketing and promotion consultants’ expenses, which are

incorporated in the consultants’ category.(3) Includes legal fees, claim and settlement costs.(4) Includes recruitment-related advertising costs.

� 6. CASH AND DEPOSITS

Cash on hand 25 26

Cash at bank 33,458 28,584

Total Cash and Deposits 33,483 28,610

� 7. RECEIVABLES

Current

Accounts Receivable 52 243

Less: Allowance for impairment losses (2) (4)

50 239

GST receivables 4,600 4,319

Other Receivables 701 148

5,301 4,467

Total Receivables 5,351 4,706

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DEPARTMENT OF TRANSPORT

2015 2014$’000 $’000

� 8. PROPERTY, PLANT AND EQUIPMENT

Land

At fair value(1) 3,672 1,052

Buildings

At fair value 40,258 37,624

Less: Accumulated depreciation (21,433) (19,443)

18,825 18,181

Infrastructure

At fair value(2) 7,284,624 4,302,761

Less: Accumulated depreciation (2,850,058) (1,603,407)

4,434,566 2,699,354

Construction (Work in Progress)

At capitalised cost 124,928 139,507

Plant and Equipment

At fair value 3,782 3,880

Less: Accumulated depreciation (2,986) (2,969)

796 911

Computer Software

At capitalised cost 1,447 1,242

Less: Accumulated depreciation (958) (559)

489 683

Computer Hardware

At capitalised cost 211 231

Less: Accumulated depreciation (211) (231)

- -

Transport Equipment

At capitalised cost 212 459

Less: Accumulated depreciation (212) (459)

- -

Total Property, Plant and Equipment 4,583,276 2,859,688

Property, Plant and Equipment Valuations

(1) Land assets are held at unimproved capital value (approximating fair value) with independent valuations determined by the Australian Valuation Office (AVO) or external valuations where obtained. The fair value of land is determined based on any existing restrictions on asset use.

(2) The fair value of the agency’s Infrastructure assets is based on their depreciated replacement cost.Refer to Note 10: Fair Value Measurement of Non-Financial Assets for additional disclosures.

Impairment of Property, Plant and Equipment

Agency property, plant and equipment assets were assessed for impairment as at 30 June 2015. No impairment adjustments were required as a result of this review.

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DEPARTMENT OF TRANSPORT

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127

DEPARTMENT OF TRANSPORT

2015 2014 $’000 $’000

� 9. HERITAGE AND CULTURAL ASSETS

Carrying amount

At fair value 183 183

Less: Accumulated depreciation (23) (21)

Carrying amount as at 30 June 161 162

Reconciliation of movements

Carrying Amount as at 1 July 162 164

Depreciation (2) (2)

Carrying amount as at 30 June 161 162

Heritage and Cultural Assets Valuation

Refer to Note 10: Fair Value Measurement of Non-Financial Assets for additional disclosures.The fair value of these assets was determined based on any existing restrictions on asset use. Where reliable market values were not available, the fair value of Agency assets was based on their depreciated replacement cost.

Impairment of Heritage and Cultural Assets

Agency heritage and cultural assets were assessed for impairment as at 30 June 2015. No impairment adjustments were required as a result of this review.

� 10. FAIR VALUE MEASUREMENTS OF NON-FINANCIAL ASSETS

a) Fair Value HierarchyFair values of non-financial assets categorised by level of inputs used to compute fair value are:

Level 1 Level 2 Level 3 Total Fair Value$’000 $’000 $’000 $’000

2014/15

Asset Classes

Land (Note 8) - 3,672 - 3,672

Buildings (Note 8) - - 18,825 18,825

Infrastructure (Note 8) - - 4,434,566 4,434,566

Plant and Equipment (Note 8) - - 1,284 1,284

Heritage and Cultural Assets (Note 9) - - 161 161

Total - 3,672 4,454,836 4,458,508

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DEPARTMENT OF TRANSPORT

Level 1 Level 2 Level 3 Total Fair Value$’000 $’000 $’000 $’000

2013/14

Asset Classes

Land (Note 8) - 1,052 - 1,052

Buildings (Note 8) - - 18,181 18,181

Infrastructure (Note 8) - - 2,699,354 2,699,354

Plant and Equipment (Note 8) - - 1,594 1,594

Heritage and Cultural Assets (Note 9) - - 162 162

Total - 1,052 2,719,291 2,720,343

There were no transfers between Level 1 and Levels 2 or 3 during 2014/15.

b) Valuation Techniques and InputsValuation techniques used to measure fair value in 2014/15 are:

Level 2 Techniques Level 3 TechniquesAsset Classes

Land Market -

Buildings - Cost

Infrastructure - Cost

Plant and Equipment - Cost

Heritage and Cultural Assets - Cost

There were no changes in valuation techniques from 2013/14 to 2014/15. Territory Property Consultants provided valuations for building assets and associated land.

Level 2 fair values of land were based on market evidence of sales price per square metre of comparable land as part of valuations for assets.

Level 3 fair values of infrastructure were determined by computing their depreciated replacement costs because an active market does not exist for such assets. The depreciated replacement cost was based on a combination of internal records of the structural capacity of the asset, adjusted for standard replacement costs. Buildings have been valued on a depreciated replacement cost basis. Plant and Equipment, Computer Software and Heritage and Cultural Assets are based on depreciated cost, which is assessed as the best indicator of fair value.

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DEPARTMENT OF TRANSPORT

c) Additional Information for Level 3 Fair Value Measurements

(i) Reconciliation of Recurring Level 3 Fair Value Measurements

Buildings Infrastructure Plant and Equipment

Heritage and Cultural

Total

$’000 $’000 $’000 $’000 $’000

2014/15

Fair value as at 1 July 2014 18,180 2,699,354 1,594 162 2,719,290

Additions 2,315 168,501 669 - 171,486

Disposals (350) - (415) - (764)

Transfers from Level 2 - - - - -

Transfers to Level 2 - - - - -

Depreciation (884) (58,265) (565) (2) (59,715)

Gains/losses recognised in net surplus/deficit

- - - - -

Gains/losses recognised in other comprehensive income

(437) 1,624,976 - - 1,624,539

Fair value as at 30 June 2015 18,825 4,434,566 1,284 161 4,454,836

Unrealised gains/losses recognised in net surplus/deficit for assets held at the end of the reporting period

Buildings Infrastructure Plant and Equipment

Heritage and Cultural

Total

$’000 $’000 $’000 $’000 $’000

2013/14

Fair value as at 1 July 2013 19,810 2,550,739 2,077 164 2,572,790

Additions 657 196,672 1,024 - 198,353

Disposals (1,540) - (964) - (2,504)

Transfers from Level 2 - - - - -

Transfers to Level 2 - - - - -

Depreciation (747) (48,057) (543) (2) (49,349)

Gains/losses recognised in net surplus/deficit

- - - - -

Gains/losses recognised in other comprehensive income

- - - - -

Fair value as at 30 June 2014 18,180 2,699,354 1,594 162 2,719,290

Unrealised gains/losses recognised in net surplus/deficit for assets held at the end of the reporting period

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DEPARTMENT OF TRANSPORT

(ii) Sensitivity analysis

Given the large number of agency assets, it is not practical to compute a relevant summary measure for the unobservable inputs. In respect of sensitivity of fair value to changes in input value, a higher historical cost would generally result in a higher fair value and greater consumption of economic benefit lowers fair value.

2015 2014$’000 $’000

� 11. DEPOSITS HELD

Current

Deposits Held 1,782 2,188

Total Deposits Held 1,782 2,188

� � 12. PAYABLES

Accounts payable 21 48

Accrued expenses 7,008 13,308

Total Payables 7,029 13,356

� 13. PROVISIONS

Current

Employee benefits

Recreation leave 1,791 1,675

Leave loading 336 313

Recreation leave - Airfares 30 40

Other current provisions

Other provisions 438 392

2,595 2,420

Non-Current

Employee benefits

Recreation leave 753 752

753 752

Total Provisions 3,348 3,172

The Department employed 236 full time employees as at 30 June 2015 (225 full time employees as at 30 June 2014).

131

DEPARTMENT OF TRANSPORT

2015 2014$’000 $’000

� � 14. RESERVES

Asset Revaluation Surplus

(i) Nature and purpose of the asset revaluation surplus

The asset revaluation surplus includes the net revaluation increments and decrements arising from the revaluation of non-current assets, predominantly Infrastructure and Buildings. Impairment adjustments may also be recognised in the asset revaluation surplus.

(ii) Movements in the asset revaluation surplus

Balance as at 1 July 1,407,769 1,407,769

Increment/(Decrement) – land 120 -

Increment/(Decrement) – buildings (395) -

Increment/(Decrement) – infrastructure 1,624,989 -

Net Movements 1,624,714 -

Balance as at 30 June 3,032,483 1,407,769

� � 15. NOTES TO THE CASH FLOW STATEMENT

Reconciliation of Cash

The total of agency 'Cash and deposits' of $33,483,463 recorded in the Balance Sheet is consistent with that recorded as ‘Cash’ in the Cash Flow Statement.

Reconciliation of Net Deficit to Net Cash from Operating Activities

Net Deficit (64,650) (63,192)

Non-cash items:

Depreciation and amortisation 59,715 49,350

(Gain)/Loss On Disposal Of Assets - (1)

Repairs and maintenance/Minor New Works 3,557 32

Capital Grant - 5,918

Changes in assets and liabilities:

Decrease/(Increase) in receivables (645) 1,224

Decrease/(Increase) in prepayments (37) (5)

(Decrease)/Increase in payables (6,489) 5,886

(Decrease)/Increase in provision for employee benefits 130 52

(Decrease)/Increase in other provisions 45 7

Net Cash from Operating Activities (8,374) (729)

132

DEPARTMENT OF TRANSPORT

� 16. FINANCIAL INSTRUMENTS

A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial instruments held by the Department include cash and deposits, receivables, payables and finance leases. The Department has limited exposure to financial risks as discussed below.

a) Categorisation of Financial InstrumentsThe carrying amounts of the Department’s financial assets and liabilities by category are disclosed in the table below.

2015 2014$’000 $’000

Financial Assets

Cash and deposits 33,483 28,610

Loans and receivables 447 155

Financial Liabilities

Amortised costs 1,739 2,156 b) Credit RiskThe Department has limited credit risk exposure (risk of default). In respect of any dealings with organisations external to Government, the Department has adopted a policy of only dealing with credit worthy organisations and obtaining sufficient collateral or other security where appropriate, as a means of mitigating the risk of financial loss from defaults.

The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represents the Department’s maximum exposure to credit risk without taking account of the value of any collateral or other security obtained.

Receivable balances are monitored on an ongoing basis to ensure that exposure to bad debts is not significant. A reconciliation and aging analysis of receivables is presented below. Internal receivables are from entities within the NTG whereas external receivables are from third parties external to the NTG.

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DEPARTMENT OF TRANSPORT

Aging of Receivables

Aging of Impaired Receivables

Net Receivables

$’000 $’000 $’000

Internal Receivables

2014/15

Not overdue - - -

Overdue for less than 30 days 2 - 2

Overdue for 30 to 60 days - - -

Overdue for more than 60 days - - -

Total 2 - 2

External Receivables

2014/15

Not overdue - - -

Overdue for less than 30 days 36 - 36

Overdue for 30 to 60 days 1 - 1

Overdue for more than 60 days 13 (2) 11

Total 50 (2) 48

Reconciliation of the Allowance for Impairment

Losses

Balance as at 1 July (4)

Written off during the year 4

Decrease in allowance recognised in profit or loss (2)

Total (2)

Internal Receivables

2013/14

Not overdue - - -

Overdue for less than 30 days 74 - 74

Overdue for 30 to 60 days - - -

Overdue for more than 60 days - - -

Total 74 - 74

External Receivables

2013/14

Not overdue - - -

Overdue for less than 30 days 162 - 162

Overdue for 30 to 60 days 1 - 1

Overdue for more than 60 days 6 (4) 2

Total 169 (4) 165

Reconciliation of the Allowance for Impairment

Losses

Balance as at 1 July -

Written off during the year -

Decrease in allowance recognised in profit or loss (4)

Total (4)

134

DEPARTMENT OF TRANSPORT

c) Liquidity RiskLiquidity risk is the risk that the Department will not be able to meet its financial obligations as they fall due. The Department’s approach to managing liquidity is to ensure that it will always have sufficient liquidity to meet its liabilities when they fall due.

The following tables detail the Department’s remaining contractual maturity for its financial assets and liabilities. It should be noted that these values are undiscounted, and consequently totals may not reconcile to the carrying amounts presented in the Balance Sheet.

2015 Maturity analysis for financial assets and liabilities

Variable Interest Rate Fixed Interest RateLess

than a Year

1 to 5 Years

More than 5 Years

Less than a Year

1 to 5 Years

More than 5 Years

Non Interest Bearing

Total Weighted Average

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 %

Assets

Cash and deposits - - - - - - 33,483 33,483 -

Receivables - - - - - - 52 52 -

Advances - - - - - - 396 396 -

Investment, loans and placements

- - - - - - - - -

Total Financial Assets - - - - - - 33,931 33,931 -

Liabilities

Deposits held - - - - - - 1,717 1,717 -

Payables - - - - - - 21 21 -

Total Financial Liabilities - - - - - - 1,739 1,739 -

2014 Maturity analysis for financial assets and liabilities

Variable Interest Rate Fixed Interest RateLess

than a Year

1 to 5 Years

More than 5 Years

Less than a

Year

1 to 5 Years

More than 5 Years

Non Interest Bearing

Total Weighted Average

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 %

Assets

Cash and deposits - - - - - - 28,610 28,610 -

Receivables - - - - - - 155 155 -

Advances - - - - - - - - -

Investment, loans and placements

- - - - - - - - -

Total Financial Assets - - - - - - 28,765 28,765 -

Liabilities

Deposits held - - - - - - 2,108 2,108 -

Payables - - - - - - 48 48 -

Total Financial Liabilities - - - - - - 2,156 2,156 -

135

DEPARTMENT OF TRANSPORT

d) Market RiskMarket risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. It comprises interest rate risk, price risk and currency risk.

(i) Interest Rate Risk

The Department of Transport is not exposed to interest rate risk on Department financial assets and financial liabilities as they are non interest bearing.

(ii) Price Risk

The Department of Transport is not exposed to price risk as the Department does not hold any financial instruments impacted by price risk.

(iii) Currency Risk

The Department of Transport is not exposed to currency risk as the Department does not hold borrowings denominated in foreign currencies or transactional currency exposures arising from purchases in a foreign currency.

(e) Net Fair ValueThe fair value of financial instruments is determined on the following basis:The fair value of cash, deposits, advances, receivables and payables approximates their carrying amount, which is also their amortised cost.

2015 2014Internal(a) External(a) Internal External

$’000 $’000 $’000 $’000 � 17. COMMITMENTS

(i) Capital Expenditure Commitments

Capital expenditure commitments primarily related to the construction of road networks. Capital expenditure commitments contracted for at balance date but not recognised as liabilities are payable as follows:

Within one year - 184,719 - 41,266

Later than one year and not later than five years - 75,449 - 16,855

Later than five years - - - -

- 260,168 - 58,121

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DEPARTMENT OF TRANSPORT

2015 2014(ii) Operating Lease Commitments

The agency leases property under non-cancellable operating leases expiring from 1 to 5 years. Leases generally provide the agency with a right of renewal at which time all lease terms are renegotiated. The agency also leases items of plant and equipment under non-cancellable operating leases. Future operating lease commitments not recognised as liabilities are payable as follows:

Within one year 218 25 140 21

Later than one year and not later than five years 190 42 73 33

Later than five years - - - -

408 67 213 54

(iii) Other Expenditure Commitments

Other non-cancellable expenditure commitments not recognised as liabilities are payable as follows:

Within one year - 44,996 - 42,361

Later than one year and not later than five years - 109,357 - 108,281

Later than five years - 253 - -

- 154,606 - 150,642

� 18. CONTINGENT LIABILITIES AND CONTINGENT ASSETS

e) Contingent LiabilitiesThe Department of Transport has entered into agreements which contain indemnity clauses. The contingent liabilities arising from the indemnities are unquantifiable, but expected to be immaterial. However, for all the events that would give rise to the liabilities the Department has comprehensive risk management procedures in place. Legal proceedings or disputes in which the Department is a party are not separately disclosed. Due to the wide variety and nature of individual cases, and the uncertainty of any potential liability means that no value can be attributed to individual cases until such time as the courts make a decision so as to not prejudice the outcome of the proceeding or dispute.

f) Contingent AssetsThe Department of Transport had no contingent assets as at 30 June 2015 or 30 June 2014.

� 19. EVENTS SUBSEQUENT TO BALANCE DATE No events have arisen between the end of the financial year and the date of this report that require an adjustment to, or disclosure in these financial statements.

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DEPARTMENT OF TRANSPORT

� 20. ACCOUNTABLE OFFICER’S TRUST ACCOUNT

In accordance with section 7 of the Financial Management Act, an Accountable Officer’s Trust Account has been established for the receipt of money to be held in trust. A summary of activity is shown below:

Nature of Trust Money Opening Balance1 July 2014

Receipts Expense Closing Balance30 June 2015

$’000 $’000 $’000 $’000

Retention/Security deposits (81) 11 7 (64)

Total (81) 11 7 (64)

� 21. WRITE-OFFS, POSTPONEMENTS, WAIVERS, GIFTS AND EX GRATIA PAYMENTS

Agency Agency Territory Items Territory Items

2015 No. of Trans.

2014 No. of Trans.

2015 No. of Trans.

2014 No. of Trans.

$’000 $’000 $’000 $’000

Write-offs, Postponements and Waivers Under the Financial Management Act

Represented by:

Irrecoverable amounts payable to the Territory or an agency written off

3 6 3 3 - - - -

Losses or deficiencies of money written off 1 3 - - - - - -

Total Written Off, Postponed and Waived by Delegates

4 9 3 3 - - - -

Amounts written off, postponed and waived by the Treasurer

- - - - - - - -

Irrecoverable amounts payable to the Territory or an agency written off

- - - - - - - -

Losses or deficiencies of money written off - - - - - - - -

Public property written off - - - - - - - -

Waiver or postponement of right to receive or recover money or property

- - - - - - - -

Total Written Off, Postponed and Waived by the Treasurer

- - - - - - - -

Write-offs, Postponements and Waivers Authorised Under Other Legislation

- - - - - - - -

Gifts Under the Financial Management Act - Internal

- - - - - - - -

Gifts Under the Financial Management Act - External

- - - - - - - -

Ex Gratia Payments Under the Financial Management Act

- - - - - - - -

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DEPARTMENT OF TRANSPORT

� 22. SCHEDULE OF TERRITORY ITEMS

The following Territory items are managed by the Department on behalf of the Government and are recorded in the Central Holding Authority (refer Note 2(c)).

2015 2014$’000 $’000

TERRITORY INCOME AND EXPENSES

Income

Taxation revenue 46,360 45,009

Grants and subsidies revenue

Capital 4,771 6,712

Fees from regulatory services 7,902 7,652

Royalties and rents 865 865

Other income 3,055 3,216

Total Income 62,953 63,454

Expenses

Central Holding Authority income transferred (62,953) 63,454

Total Expenses (62,953) 63,454

Territory Income less Expenses - -

TERRITORY ASSETS AND LIABILITIES

Assets

Other receivables 829 1,720

Total Assets 829 1,720

Liabilities

Central Holding Authority income payable (829) 1,720

Total Liabilities (829) 1,720

Net Assets - -

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DEPARTMENT OF TRANSPORT

� 23. BUDGETARY INFORMATION

2014–15 2014–15Comprehensive Operating Statement Actual Original

BudgetVariance Note

$’000 $’000 $’000

INCOME

Grants and subsidies revenue

Current 100 - 100 1

Appropriation

Output 157,003 140,627 16,376 2

Commonwealth 17,284 29,004 (11,720) 3

Sales of goods and services 11,241 11,912 (671) 4

Interest revenue - - -

Goods and services received free of charge 2,437 6,384 (3,947) 5

Gain on disposal of assets - - -

Other income 357 54 303

TOTAL INCOME 188,422 187,981 441

EXPENSES

Employee expenses 22,411 21,588 823 6

Administrative expenses

Purchases of goods and services 63,899 62,062 1,837 7

Repairs and maintenance 89,272 88,905 367

Property Management 1,688 - 1,688 7

Depreciation and amortisation 59,715 47,910 11,805 8

Services free of charge 2,437 6,384 (3,947) 5

Other administrative expenses 1 - 1

Grants and subsidies expenses

Current 4,862 3,669 1,193 9

Capital 6,878 2,469 4,409 10

Community service obligation 1,909 2,904 (995) 11

TOTAL EXPENSES 253,071 235,891 17,180

NET SURPLUS/(DEFICIT) (64,650) (47,910) (16,739)

OTHER COMPREHENSIVE INCOME

Items that will not be reclassified to net deficit

Changes in Asset Revaluation Surplus 1,624,714 - 1,624,714

Other (55) - (55)

TOTAL OTHER COMPREHENSIVE INCOME 1,624,659 - 1,624,659

COMPREHENSIVE RESULT 1,560,009 (47,910) 1,607,919

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DEPARTMENT OF TRANSPORT

Notes:

The following note descriptions relate to variances greater than 10 per cent or $1,000,000 or where multiple significant variances have occurred.

1. The increase in current grants is due to the National Remote Transport Infrastructure and Services Strategy – contribution from all states.

2. The increase in appropriation payments is mainly due to $10 million for Regional Economic Infrastructure Fund grants and $5 million for Local Roads Traffic Management Grants (transfer from capital).

3. The decrease to Commonwealth appropriation is mainly due to the transfer of Commonwealth funding from Repairs and Maintenance (operational) to Capital due to the capital nature of the works planned under the Commonwealth agreement.

4. There were lower than anticipated sales of goods and services than at the time of the original budget due to lower income generated from bus ticket sales.

5. The original budget for services free of charge from the Department of Corporate and Information Services was based on an estimate of services needed after the restructure of the Department which was not estimated correctly. Revenue and expenditure is notional and offsets fully.

6. Additional employee expenditure has been mainly due to additional capacity provided in revised budget due to transfer of function from Darwin Port Corporation for the Harbour Master function and transfer of some consultancy budget to salaries as part of delivery of strategies in-house. All this expenditure has been funded.

7. Property management is budgeted at the top level together with purchases of goods and services. Total is higher than budgeted due to expenditure associated with cyclone Lam and Nathan for transport logistics.

8. Additional depreciation due to increased investment and capitalisation of infrastructure assets.

9. Additional grants for the Royal Australian Airforce Base Tindal to supply category 5 aircraft fire fighting equipment for the provision of an alternative landing space for international carriers outside of Darwin airport in emergency.

10. Increased payments in capital grants due to the Regional Economic Infrastructure Fund.

11. Reduced Community Service Obligation payments to Darwin Port Corporation due to the transfer of functions to the Department of Lands, Planning and the Environment in the last quarter of 2014–15.

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DEPARTMENT OF TRANSPORT

2014–15 2014–15Balance Sheet Actual Original

BudgetVariance Note

$’000 $’000 $’000

ASSETS

Current assets

Cash and deposits 33,483 5,345 28,138 1

Receivables 5,351 6,160 (809) 2

Prepayments 54 13 41

Other Assets - - -

Total current assets 38,889 11,518 27,370

Non-current assets

Advances and investments 396 66 330

Property, plant and equipment 4,583,276 3,029,105 1,554,171 3

Heritage and cultural assets 161 - 161

Total non-current assets 4,583,832 3,029,171 1,554,662

TOTAL ASSETS 4,622,721 3,040,689 1,582,032

LIABILITIES

Current liabilities

Deposits held 1,782 1,607 175

Payables 7,029 16,015 (8,986) 4

Provisions 2,595 2,257 338

Other Liabilities - - -

Total current liabilities 11,405 19,879 (8,473)

Non-current liabilities

Provisions 753 857 (104)

Total non-current liabilities 753 857 (104)

TOTAL LIABILITIES 12,158 20,736 (8,578)

NET ASSETS 4,610,563 3,019,953 1,590,610

EQUITY

Capital 1,855,309 1,857,879 (2,570)

Reserves 3,032,483 1,407,769 1,624,714

Accumulated funds (277,229) (245,695) (31,534)

TOTAL EQUITY 4,610,563 3,019,953 1,590,610

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DEPARTMENT OF TRANSPORT

Notes:

The following note descriptions relate to variances greater than 10 per cent or $1,000,000 or where multiple significant variances have occurred.

1. Cash balances are higher than budgeted mainly due to higher opening cash balances following Commonwealth capital grants which were not spent in time in 2013–14 and 204–15 due to timing reasons and have been carried over into future years. Budgeted cash balances reflect 2013–14 opening balances.

2. Lower receivables than budgeted. Budgeted values reflect opening balances of 2013–14 financial year and are adjusted at each year end.

3. Higher than budget property, plant and equipment due increases in capital investment and the revaluation of infrastructure assets in 2014–15 which was not budgeted.

4. Budgeted payables reflect 2013–14 opening balances. This is adjusted after each year end.

2014–15 2014–15Cash Flow Statement Actual Original

BudgetVariance Note

$’000 $’000 $’000

CASH FLOWS FROM OPERATING ACTIVITIES

Operating receipts

Grants and subsidies received

Current 100 - 100 1

Appropriation

Output 157,003 140,627 16,376 2

Commonwealth 17,284 29,004 (11,720) 3

Receipts from sales of goods and services 39,201 11,966 27,235 4

Interest received - - -

Total operating receipts 213,588 181,597 31,991

Operating payments

Payments to employees (22,112) (21,588) 524 5

Payments for goods and services (186,201) (150,967) 35,234 6

Grants and subsidies paid

Current (4,862) (3,669) 1,193 7

Capital (6,878) (2,469) 4,409 8

Community service obligations (1,909) (2,904) (995) 9

Total operating payments (221,962) (181,597) 40,365

Net cash from/(used in) operating activities (8,374) - (8,374)

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DEPARTMENT OF TRANSPORT

2014–15 2014–15CASH FLOWS FROM INVESTING ACTIVITIES

Investing receipts

Proceeds from asset sales - - -

Repayments of Advances - - -

Total investing receipts - - -

Investing payments

Purchases of assets (134,745) (170,941) 36,196 10

Advances and investing payments - - -

Total investing payments (134,745) (170,941) 36,196

Net cash from/(used in) investing activities (134,745) (170,941) 36,196

CASH FLOWS FROM FINANCING ACTIVITIES

Financing receipts

Deposits Received (407) - (407) 11

Appropriation

Capital 61,514 71,524 (10,010) 12

Commonwealth 86,679 99,417 (12,738) 13

Equity injections 206 5,000 (4,794) 14

Total financing receipts 147,992 175,941 (27,949)

Financing payments

Equity withdrawals - - -

Total financing payments - - -

Net cash from/(used in) financing activities 147,992 175,941 (27,949)

Net increase/(decrease) in cash held 4,873 5,000 (127)

Cash at beginning of financial year 28,610 345 28,265

CASH AT END OF FINANCIAL YEAR 33,483 5,345 28,138

Notes:

The following note descriptions relate to variances greater than 10 per cent or $1,000,000 or where multiple significant variances have occurred.

1. The increase in current grants is due to the National Remote Transport Infrastructure and Services Strategy – contribution from all states.

2. The increase in appropriation payments is mainly due to $10 million for Regional Economic Infrastructure Fund grants and $5 million for Local Roads Traffic Management Grants (transfer from capital).

3. The decrease to Commonwealth appropriation is mainly due to the transfer of Commonwealth funding from Repairs and Maintenance (operational) to Capital due to the capital nature of the works planned under the Commonwealth agreement.

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DEPARTMENT OF TRANSPORT

4. As this is a calculated field in the budget, the receivables still reflect opening balances of the 2013–14 financial year causing a variance with actuals against the original budget.

5. Additional employee expenditure has been mainly due to additional capacity provided in revised budget due to transfer of function from Darwin Port Corporation for the Harbour Master function and transfer of some consultancy budget to salaries as part of delivery of strategies in-house. All this expenditure has been funded.

6. Due to balance sheet items such as payables being adjusted after each year end, the balances used for the original budget are based on 2013–14 opening balances. Year end for 2013–14 saw a significant increase to payable amounts, with a significant accrual adjustment for Repairs and Maintenance as there was a huge push for expenditure in the last couple of months of 2013–14 which has caused significant cash impact in the 2014–15 financial year when all the cash for those accruals has been paid. This is a timing issue with the budget.

7. Additional grants for the Royal Australian Airforce Base Tindal to supply category 5 aircraft firefighting equipment for the provision of an alternative landing space for international carriers outside of Darwin airport in emergency.

8. Regional Economic Infrastructure Fund grant payments.

9. Reduced Community Service Obligation payments to Darwin Port Corporation due to the transfer of functions to the Department of Lands, Planning and the Environment.

10. Lower purchases of assets than budgeted for, mainly in Commonwealth funded projects due to delays in signing the agreement with the Commonwealth. Expenditure is anticipated to be much higher in 2015–16.

11. Deposits held from previous years dispersed.

12. Transfer of appropriation to operational of $5 million for the Local Traffic Management grants as well as a transfer of $6 million to the Department of Infrastructure as part of changes made to the delivery of projects, offset by the transfer of $1 million for Hidden Valley Road upgrades from the Department of Infrastructure from the capital works program of the Department of Lands, Planning and the Environment.

13. Commonwealth capital payments were lower than anticipated due to delays in achieving milestones for the release of funds. This is a timing variation.

14. Original budget provided an equity injection which was not required due to increases in cash held by the Department of Transport following delays in spending of Capital Works cash (mainly Commonwealth funded).

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DEPARTMENT OF TRANSPORT

2014–15 2014–15Administered Territory Items Actual Original

BudgetVariance Note

$’000 $’000 $’000

TERRITORY INCOME AND EXPENSES

Income

Taxation revenue 46,360 46,361 (1)

Grants and subsidies revenue

Current - - -

Capital 4,771 4,600 171

Fees from regulatory services 7,902 8,030 (128)

Royalties and rents 865 801 64

Other income 3,055 3,019 36

Total income 62,953 62,811 142

Expenses

Central Holding Authority income transferred - - -

Doubtful debts - - -

Bad debts - - -

Other administrative expenses (62,953) - -

Total expenses (62,953) - -

Territory income less expenses (62,953) 62,811 142

TERRITORY ASSETS AND LIABILITIES

Assets

Taxes receivable - - -

Grants and subsidies receivable - - -

Royalties and rent receivable - - -

Other receivables 829 652 177

Total assets 829 652 177

Liabilities

Central Holding Authority income payable (829) 652 177

Unearned Central Holding Authority income - - -

Total liabilities (829) 652 177

Net assets - - -

Notes:

The following note descriptions relate to variances greater than 10 per cent or $1,000,000 or where multiple significant variances have occurred.

No significant variations against original budget.

146

DARWIN BUS SERVICE

� FINANCIAL STATEMENT OVERVIEW For the Year Ended 30 June 2015

Darwin Bus Service (DBS) is no longer a Government Business Division following the sale of its assets on 5 October 2014 to a new commercial operator. Up until the sale of its assets, the primary function of DBS in 2014–15 was to provide an efficient, safe and reliable urban

bus service to meet the needs of the Darwin and Palmerston communities. DBS operated under a service level agreement with the Public Transport Division of the Department of Transport and bus services were provided for special events and school travel in Darwin and Palmerston.

Darwin Bus Service Financial Report

Interest Revenue $0.2m

Other Revenue $0.1m

Sales of Good and Services $2.3m

89%

7%4%

Financial PerformanceOperating Income

Total operating income for 2014–15 was $2.6 million. Revenue was raised through the service level agreement with the Public Transport Division of the Department of Transport and was the main source of income for DBS.

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DARWIN BUS SERVICE

Employee expenses $1.6m

Fleet operating $0.6m

Purchases of G&S $0.8m

Loss on disposal of asset $0.16m

51%

18%

5%

26%

Operating Expenses

Total operating expenses for 2014–15 were $3.1 million. Employee expenses of $1.6 million constitute the greatest proportion of this cost, followed by purchases of goods and services of $0.8 million.

Analysis between Budgeted Income and Expenditure has not been provided as the Original Budget for 2014–15 did not factor in the sale of DBS. The original

Budget can be found in Note 21 of the Financial Statements. Additional note disclosures around the sale can be found in Note 2 (z) and Note 3.

148

DARWIN BUS SERVICE

149

DARWIN BUS SERVICE

� CERTIFICATION OF THE FINANCIAL STATEMENTS

We certify that the attached financial statements for the Darwin Bus Service have been prepared from proper accounts and records in accordance with the prescribed format, the Financial Management Act and Treasurer’s Directions.

We further state that the information set out in the Comprehensive Operating Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement, and notes to and forming part of the financial statements, presents fairly the financial performance and cash flows for the year ended 30 June 2015 and the financial position on that date.

At the time of signing, we are not aware of any circumstances that would render the particulars included in the financial statements misleading or inaccurate.

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DARWIN BUS SERVICE

� COMPREHENSIVE OPERATING STATEMENT For the year ended 30 June 2015

Note 2015 2014 $’000 $’000

INCOME

Sales of goods and services 2,332 8,840

Interest revenue 177 80

Other income 104 495

TOTAL INCOME 2,613 9,415

EXPENSES

Employee expenses 1,576 5,050

Loss on disposal of assets 4 158 -

Administrative expenses

Purchases of goods and services 5 791 1,421

Fleet operating expenses 5 559 2,215

Other operating expenses 11 - 891

Depreciation and amortisation 5 4 354

TOTAL EXPENSES 3,088 9,931

DEFICIT BEFORE INCOME TAX (475) (516)

INCOME TAX EXPENSE

Income tax expense 6 - -

TOTAL INCOME TAX EXPENSE - -

OTHER COMPREHENSIVE INCOME

Items that will not be reclassified to net surplus/(deficit) 15

Asset Revaluation Reserve (1,116) 1,116

Transfers From Reserves (9,129) -

TOTAL OTHER COMPREHENSIVE INCOME (10,245) 1,116

COMPREHENSIVE RESULT (10,720) 600

The Comprehensive Operating Statement is to be read in conjunction with the notes to the financial statements

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DARWIN BUS SERVICE

� BALANCE SHEET As at 30 June 2015

Note 2015 2014 $’000 $’000

ASSETS

Current Assets

Cash and deposits 7 - 3,601

Receivables 8 - 913

Inventories 9 - 594

Prepayments - 60

Assets Held for Sale 10 - 6,888

Total Current Assets - 12,056

Non-Current Assets

Property, plant and equipment 11 - -

Total Non-Current Assets - -

TOTAL ASSETS - 12,056

LIABILITIES

Current Liabilities

Payables 13 - 383

Provisions 14 - 606

Total Current Liabilities - 989

Non-Current Liabilities

Provisions 14

Total Non-Current Liabilities - -

TOTAL LIABILITIES - 989

NET ASSETS - 11,067

EQUITY

Capital - 347

Reserves 15 - 1,116

Accumulated funds - 9,604

TOTAL EQUITY - 11,067

The Balance Sheet is to be read in conjunction with the notes to the financial statements.

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� STATEMENT OF CHANGES IN EQUITY For the year ended 30 June 2015

Note Equity at 1 July

Comprehensive result

Transactions with owners in their capacity

as owners

Equity at 30 June

$’000 $’000 $’000 $’000

2014–15

Accumulated Funds 9,604 (475) - 9,129

Transfers from reserves - (9,129) (9,129)

9,604 (9,604) - -

Reserves 15 1,116 (1,116) - -

1,116 (1,116) - -

Capital - Transactions with Owners

347 - - 347

Equity Transfer In - - 10,245 10,245

Capital Withdrawals - - (10,592) (10,592)

347 - (347) -

Total Equity at End of Financial Year

11,067 (10,720) (347) -

2013–14

Accumulated Funds 10,120 (1,116) - 9,604

10,120 (1,116) - 9,604

Reserves 15 - 1,116 - 1,116

- 1,116 - 1,116

Capital - Transactions with Owners

347 - - 347

347 - - 347

Total Equity at End of Financial Year

10,467 600 - 11,067

This Statement of Changes in Equity is to be read in conjunction with the notes to the financial statements.

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� CASH FLOW STATEMENT For the year ended 30 June 2015

Note 2015 2014$’000 $’000

CASH FLOWS FROM OPERATING ACTIVITIES

Operating Receipts

Grants and subsidies Received

Current - 26

Receipts from sales of goods and services 3,437 9,664

Interest received 183 81

Total Operating Receipts 3,620 9,771

Operating Payments

Payments to employees (2,269) (5,036)

Payments for goods and services (1,084) (4,343)

Income tax paid - (1 (142)

Total Operating Payments (3,353) (9,521)

Net Cash From/(Used) In Operating Activities 16 267 250

CASH FLOWS FROM INVESTING ACTIVITIES

Investing Receipts

Proceeds from asset sales 6,724 -

Total Investing Receipts 6,724 -

Investing Payments

Purchases of assets - (10)

Total Investing Payments - (10)

Net Cash From/(Used) In Investing Activities 6,724 (10)

CASH FLOWS FROM FINANCING ACTIVITIES

Financing Payments

Dividends paid - (166)

Equity Withdrawals (10,592) -

Total Financing Payments (10,592) (166)

Net Cash Used In Financing Activities (10,592) (166)

Net increase/(decrease) in cash held (3,601) 74

Cash at beginning of financial year 3,601 3,527

CASH AT END OF FINANCIAL YEAR 7 - 3,601

The Cash Flow Statement is to be read in conjunction with the notes to the financial statements.

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� INDEX OF NOTES TO THE FINANCIAL STATEMENTS

Note

1. Objectives and Funding

2. Statement of Significant Accounting Policies

3. Discontinued Operations

EXPENSES

4. Loss on Disposal of Assets

5. Purchases of Goods and Services

6. Income Tax Expense

ASSETS

7. Cash and Deposits

8. Receivables

9. Inventories

10. Assets Held for Sale

11. Property, Plant and Equipment

12. Fair Value Measurement of Non-Financial Assets

LIABILITIES

13. Payables

14. Provisions

OTHER DISCLOSURES

15. Reserves

16. Notes to the Cash Flow Statement

17. Financial Instruments

18. Commitments

19. Contingent Liabilities and Contingent Assets

20. Write-offs, Postponements, Waivers, Gifts and Ex Gratia Payments

21. Budgetary Information

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� 1. OBJECTIVES AND FUNDING Following the sale of Darwin Bus Services assets to a private sector provider in October 2014, Darwin Bus Service is no longer determined by the Treasurer to be a Government Business Division (GBD) as at 30 June 2015, as specified in the Financial Management Act. Unlike general government agencies, Darwin Bus Service did not receive direct appropriation for its commercial activities. Instead, operating revenue was primarily generated from the provision of services to the Public Transport Division (PTD) of the Department of Transport. Together with other contractors, it provided an operational capacity to assist the PTD to meet the community needs for public transport in the greater Darwin area, including the delivery of school and special events bus services.

� 2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

a) Basis of AccountingThe financial statements have been prepared in accordance with the requirements of the Financial Management Act and related Treasurer’s Directions and includes:

(i) a Certification of the Financial Statements;(ii) a Comprehensive Operating Statement;(iii) a Balance Sheet;(iv) a Statement of Changes in Equity;(v) a Cash Flow Statement; and(vi) applicable explanatory notes to the financial statements.

The financial statements have been prepared using the accrual basis of accounting, which recognises the effect of financial transactions and events when they occur, rather than when cash is paid out or received. As part of the preparation of the financial statements, all intra-agency transactions and balances have been eliminated.

Except where stated, the financial statements have also been prepared in accordance with the historical cost convention.

The form of Darwin Bus Service’s financial statements is also consistent with the requirements of Australian Accounting Standards. The effects of all relevant new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are effective for the current annual reporting period have been evaluated. The Standards and Interpretations and their impacts are:

AASB 1031 Materiality (2013), AASB 2013-9 Amendments to Australian Accounting Standards – Conceptual Framework, Materiality and Financial Instruments, AASB 2014-1 Amendments to Australian Accounting Standards (Part C –Materiality)

Revised AASB 1031 is an interim standard that cross-references to other standards and the Framework for the Preparation and Presentation of Financial Statements that contain guidance on materiality. The standard does not impact the financial statements.

AASB 1055 Budgetary Reporting

AASB 1055 sets out budgetary reporting requirements for not-for-profit entities within the General Government Sector. The required disclosures comprise a separate note accompanying the financial statements. Please refer to the Budgetary Information Statements at Note 21.

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AASB 2012-3 Amendments to Australian Accounting Standards – Offsetting Financial Assets and Financial Liabilities [AASB 132]

The standard addresses inconsistencies in current practice when applying the offsetting criteria in AASB 132 Financial Instruments: Presentation. The standard does not impact the financial statements.

AASB 2013-3 Amendments to AASB 136 – Recoverable Amount Disclosures for Non-Financial Assets

The amendments to AASB 136 Impairment of Assets address the disclosure of information about the recoverable amount of impaired assets if that amount is based on fair value less costs of disposal. The standard does not impact the financial statements.

AASB 2014-1 Amendments to Australian Accounting Standards (Part A – Annual Improvements 2010–2012 and 2011–2013 Cycles.)

Part A of the standard makes amendments to various Australian Accounting Standards (AASB 2, 3, 8, 9, 13, 116, 119, 124, 137, 138, 139, 140 & 1052 and Interpretation 129) arising from the issuance by IASB or IFRSs Annual Improvements to IFRS 2010–2012 Cycle and Annual Improvements to IFRSs 2011–2013 Cycle. The standard does not impact the financial statements.

b) Australian Accounting Standards and Interpretations Issued but not yet EffectiveAt the date of authorisation of the financial statements, the Standards and Interpretations listed below were in issue but not yet effective.

Standard/Interpretation Summary Effective for annual reporting periods beginning on or after

Impact on financial statements

AASB 9 Financial Instruments (Dec 2014), AASB 2014-1 Amendments to Australian Accounting Standards (Part E – Financial Instruments), AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB 9 (Dec 2014)

The final version of AASB 9 brings together the classification and measurement, impairment and hedge accounting phases of the IASB’s project to replace AASB 139 Financial Instruments: Recognition and Measurement. This version adds a new expected loss impairment model and limited amendments to classification and measurement for financial assets.

1 Jan 2018

No effect on the financial statements.

AASB 15 Revenue from Contracts with Customers, AASB 2014-5 Amendments to Australian Accounting Standards arising from AASB

AASB 15 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. It replaces several Standards and Interpretations, including AASB 111 Construction Contracts, AASB 118 Revenue, Interpretation 15 Agreements for the Construction of Real Estate, and Interpretation 18 Transfers of Assets from Customers.

1 Jan 2017

No effect on the financial statements.

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AASB 2014-4 Amendments to Australian Accounting Standards – Clarification of Acceptable Methods of Depreciation and Amortisation [AASB 116 & 138]

Amends AASB 116 Property, Plant and Equipment and AASB 138 Intangible Assets to provide additional guidance on how the depreciation or amortisation of property, plant and equipment and intangible assets should be calculated.

1 Jan 2016

No effect on the financial statements.

AASB 2015-1 Amendments to Australian Accounting Standards – Annual Improvements to Australian Accounting Standards 2012–2014 Cycle [AASB 1, 2, 3, 5, 7, 11, 110, 119, 121, 133, 134, 137 & 140]

Amends a number of pronouncements as a result of the IASB’s 2012–2014 annual improvements cycle.

1 Jan 2016

No effect on the financial statements.

AASB 2015-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101 [AASB 7, 101, 134 & 1049]

Includes narrow-focus amendments to address concerns about existing presentation and disclosure requirements, and to ensure entities are able to use judgement when applying a standard in determining what information to disclose.

1 Jan 2016

No effect on the financial statements.

AASB 2015-6 Amendments to Australian Accounting Standards – Extending Related Party Disclosures to Not-for-Profit Public Sector Entities [AASB 10, 124 & 1049]

Extends the scope of AASB 124 Related Party Disclosures to not-for-profit public sector entities.

1 July 2016

No effect on the financial statements.

c) Central Holding AuthorityThe Central Holding Authority is the ‘parent body’ that represents the Government’s ownership interest in Government-controlled entities.

The Central Holding Authority also records all Territory items, such as income, expenses, assets and liabilities controlled by the Government and managed by agencies on behalf of the Government. The main Territory item is Territory income, which includes taxation and royalty revenue, Commonwealth general purpose funding (such as GST revenue), fines, and statutory fees and charges.

The Central Holding Authority also holds certain Territory assets not assigned to agencies as well as certain Territory liabilities that are not practical or effective to assign to individual agencies such as unfunded superannuation and long service leave.

The Central Holding Authority recognises and records all Territory items, and as such, these items are not included in Darwin Bus Service’s financial statements.

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d) ComparativesWhere necessary, comparative information for the 2013–14 financial year has been reclassified to provide consistency with current year disclosures.

e) Presentation and Rounding of AmountsAmounts in the financial statements and notes to the financial statements are presented in Australian dollars and have been rounded to the nearest thousand dollars, with amounts of $500 or less being rounded down to zero. Amounts may not add due to rounding.

f) Changes in Accounting PoliciesThere have been no changes to accounting policies adopted in 2014–15 as a result of management decisions.

g) Accounting Judgements and Estimates The preparation of the financial report requires the making of judgements and estimates that affect the recognised amounts of assets, liabilities, revenues and expenses and the disclosure of contingent liabilities. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Judgements and estimates that have significant effects on the financial statements are disclosed in the relevant notes to the financial statements. Notes that include significant judgements and estimates are:

� Employee Benefits – Note 2(t) and Note 14: Non-current liabilities in respect of employee benefits are measured as the present value of estimated future cash outflows based on the appropriate Government bond rate, estimates of future salary and wage levels and employee periods of service.

� Depreciation and Amortisation – Note 2(j), Note 11: Property, Plant and Equipment.

� Financial Instruments – Note 17

h) Goods and Services TaxIncome, expenses and assets are recognised net of the amount of Goods and Services Tax (GST), except where the amount of GST incurred on a purchase of goods and services is not recoverable from the Australian Tax Office (ATO). In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables in the Balance Sheet.

Cash flows are included in the Cash Flow Statement on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable or payable unless otherwise specified.

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i) Income RecognitionIncome encompasses both revenue and gains.

Income is recognised at the fair value of the consideration received, exclusive of the amount of goods and services tax (GST). Exchanges of goods or services of the same nature and value without any cash consideration being exchanged are not recognised as income.

Rendering of Services

Revenue from rendering services is recognised by reference to the stage of completion of the contract. The revenue is recognised when:

� the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and

� it is probable that the economic benefits associated with the transaction will flow to the entity.

Interest Revenue

Interest revenue is recognised as it accrues, taking into account the effective yield on the financial asset.

Disposal of Assets

A gain or loss on disposal of assets is included as a gain or loss on the date control of the asset passes to the buyer, usually when an unconditional contract of sale is signed. The gain or loss on disposal is calculated as the difference between the carrying amount of the asset at the time of disposal and the net proceeds on disposal. Refer also to Note 4.

j) Depreciation and Amortisation Expense

Items of property, plant and equipment, including buildings but excluding land, have limited useful lives and are depreciated or amortised using the straight-line method over their estimated useful lives.

Amortisation applies in relation to intangible non-current assets with limited useful lives and is calculated and accounted for in a similar manner to depreciation.

The estimated useful lives for each class of asset are in accordance with the Treasurer’s Directions and are determined as follows:

2015 2014Transport Equipment 15 Years 15 Years

Plant and Equipment 5-10 Years 5-10 Years

Computer Equipment and Software 3-10 Years 3-10 Years

Assets are depreciated or amortised from the date of acquisition or from the time an asset is completed and held ready for use.

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k) TaxationDarwin Bus Service is required to pay income tax on its accounting profit at the company tax rate of 30 per cent in accordance with the requirements of the Treasurer’s Directions and the NT Tax Equivalents Scheme.

l) Cash and DepositsFor the purposes of the Balance Sheet and the Cash Flow Statement, cash includes cash on hand, cash at bank and cash equivalents. Cash equivalents are highly liquid short-term investments that are readily convertible to cash.

m) InventoriesInventories include assets held either for sale (general inventories) or for distribution at no or nominal consideration in the ordinary course of business operations.

General inventories are valued at the lower of cost and net realisable value, while those held for distribution are carried at the lower of cost and current replacement cost. Cost of inventories includes all costs associated with bringing the inventories to their present location and condition. When inventories are acquired at no or nominal consideration, the cost will be the current replacement cost at date of acquisition.

The cost of inventories are assigned using a mixture of first-in, first out or weighted average cost formula or using specific identification of their individual costs.

Inventory held for distribution is regularly assessed for obsolescence and loss.

n) ReceivablesReceivables include accounts receivable and other receivables and are recognised at fair value less any allowance for impairment losses.

The allowance for impairment losses represents the amount of receivables that Darwin Bus Service estimates are likely to be uncollectible and are considered doubtful. Analyses of the age of the receivables that are past due as at the reporting date are disclosed in an aging schedule under credit risk in Note 17 Financial Instruments. Reconciliation of changes in the allowance accounts is also presented.

Accounts receivable are generally settled within 30 days and other receivables within 30 days.

o) Property, Plant and EquipmentAcquisitions

All items of property, plant and equipment with a cost, or other value, equal to or greater than $10,000 are recognised in the year of acquisition and depreciated as outlined below. Items of property, plant and equipment below the $10,000 threshold are expensed in the year of acquisition.

The construction cost of property, plant and equipment includes the cost of materials and direct labour, and an appropriate proportion of fixed and variable overheads.

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Complex Assets

Major items of plant and equipment comprising a number of components that have different useful lives, are accounted for as separate assets. The components may be replaced during the useful life of the complex asset.

Subsequent Additional Costs

Costs incurred on property, plant and equipment subsequent to initial acquisition are capitalised when it is probable that future economic benefits in excess of the originally assessed performance of the asset will flow to Darwin Bus Service in future years. Where these costs represent separate components of a complex asset, they are accounted for as separate assets and are separately depreciated over their expected useful lives.

p) Revaluations and ImpairmentImpairment of Assets

An asset is said to be impaired when the asset’s carrying amount exceeds its recoverable amount.

Non-current physical Darwin Bus Service assets are assessed for indicators of impairment on an annual basis. If an indicator of impairment exists, the Darwin Bus Service determines the asset’s recoverable amount. The asset’s recoverable amount is determined as the higher of the asset’s depreciated replacement cost and fair value less costs to sell. Any amount by which the asset’s carrying amount exceeds the recoverable amount is recorded as an impairment loss.

Impairment losses are recognised in the Comprehensive Operating Statement. They are disclosed as an expense unless the asset is carried at a revalued amount. Where the asset is measured at a revalued amount, the impairment loss is offset against the asset revaluation surplus for that class of asset to the extent that an available balance exists in the asset revaluation surplus.

In certain situations, an impairment loss may subsequently be reversed. Where an impairment loss is subsequently reversed, the carrying amount of the asset is increased to the revised estimate of its recoverable amount. A reversal of an impairment loss is recognised in the Comprehensive Operating Statement as income, unless the asset is carried at a revalued amount, in which case the impairment reversal results in an increase in the asset revaluation surplus.

q) Assets Held for SaleAssets held for sale consists of those assets which management has determined are available for immediate sale in their present condition, and their sale is highly probable within the next twelve months.

These assets are measured at the lower of the asset’s carrying amount and fair value less costs to sell. These assets are not depreciated. Non-current assets held for sale have been recognised on the face of the financial statements as current assets. Refer to Note 10.

r) Leased AssetsLeases under which Darwin Bus Service assumes substantially all the risks and rewards of ownership of an asset are classified as finance leases. Other leases are classified as operating leases.

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Finance Leases

Finance leases are capitalised. A leased asset and a lease liability equal to the lower of the fair value of the leased property and present value of the minimum lease payments, each determined at the inception of the lease.

Lease payments are allocated between the principal component of the lease liability and the interest expense.

Operating Leases

Operating lease payments made at regular intervals throughout the term are expensed when the payments are due, except where an alternative basis is more representative of the pattern of benefits to be derived from the leased property. Lease incentives under an operating lease of a building or office space are recognised as an integral part of the consideration for the use of the leased asset. Lease incentives are to be recognised as a deduction of the lease expenses over the term of the lease.

s) PayablesLiabilities for accounts payable and other amounts payable are carried at cost which is the fair value of the consideration to be paid in the future for goods and services received, whether or not billed to the agency. Accounts payable are normally settled within 30 days. Refer to Note 13.

t) Employee Benefits Provision is made for employee benefits accumulated as a result of employees rendering services up to the reporting date. These benefits include wages and salaries and recreation leave. Liabilities arising in respect of wages and salaries and recreation leave and other employee benefit liabilities that fall due within twelve months of reporting date are classified as current liabilities and are measured at amounts expected to be paid. Non-current employee benefit liabilities that fall due after twelve months of the reporting date are measured at present value, calculated using the Government long term bond rate. Refer to Note 14.

No provision is made for sick leave, which is non-vesting, as the anticipated pattern of future sick leave to be taken is less than the entitlement accruing in each reporting period.

Employee benefit expenses are recognised on a net basis in respect of the following categories:

� wages and salaries, non-monetary benefits, recreation leave, sick leave and other leave entitlements; and

� other types of employee benefits.

As part of the Financial Management Framework, the Central Holding Authority assumes the long service leave liabilities of Government agencies, including Darwin Bus Service and as such no long service leave liability is recognised in Darwin Bus Service’s financial statements.

u) SuperannuationEmployees’ superannuation entitlements are provided through the:

� NT Government and Public Authorities Superannuation Scheme (NTGPASS);

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� Commonwealth Superannuation Scheme (CSS); or

� non-government employee nominated schemes for those employees commencing on or after 10 August 1999.

Darwin Bus Service makes superannuation contributions on behalf of its employees to the Central Holding Authority or non-government employee nominated schemes. Superannuation liabilities related to government superannuation schemes are held by the Central Holding Authority and as such are not recognised in Darwin Bus Service’s financial statements.

v) DividendDarwin Bus Service is required to remit a dividend in accordance with the Northern Territory Government’s dividend policy which is 50 per cent of net profit after tax.

w) CommitmentsDisclosures in relation to capital and other commitments, including lease commitments are shown at Note 18.

Commitments are those contracted as at 30 June where the amount of the future commitment can be reliably measured.

x) Financial InstrumentsA financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets and liabilities are recognized on the Balance Sheet when the agency becomes a party to the contractual provisions of the financial instrument. The agency’s financial instruments include cash and deposits; receivables and payables.Exposure to interest rate risk, credit risk, price risk and liquidity risk arise in the normal course of activities. The agency’s investments are predominantly managed through the Northern Territory Treasury Corporation (NTTC) adopting strategies to minimize the risk.

Classification of Financial Instruments

AASB 7 Financial Instruments: Disclosures requires financial instruments to be classified and disclosed within specific categories depending on their nature and purpose.

Financial assets are classified into the following categories:

� financial assets at fair value through profit or loss;

� held-to-maturity investments;

� loans and receivables; and

� available-for-sale financial assets.

Financial liabilities are classified into the following categories:

� financial liabilities at fair value through profit or loss (FVTPL); and

� financial liabilities at amortised cost.

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Financial Assets or Financial Liabilities at Fair Value through Profit of Loss

Financial instruments are classified as at FVTPL when the instrument is either held for trading or is designated as at FVTPL.

An instrument is classified as held for trading if it is:

� acquired or incurred principally for the purpose of selling or repurchasing it in the near term with an intention of making a profit; or

� part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking; or

� a derivative that is not a financial guarantee contract or a designated and effective hedging instrument.

Loans and Receivables

For details refer to Note 2(n).

Note 17 provides additional information on financial instruments.

y) Fair Value MeasurementFair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The highest and best use takes into account the use of the asset that is physically possible, legally permissible and financially feasible.

When measuring fair value, the valuation techniques used maximize the use of relevant observable inputs and minimise the use of unobservable inputs. Unobservable inputs are used to the extent that sufficient relevant and reliable observable inputs are not available for similar assets/liabilities.

Observable inputs are publicly available data that are relevant to the characteristics of the assets/liabilities being valued. Observable inputs used by the agency include, but are not limited to, published sales data for transport equipment.

Unobservable inputs are data, assumptions and judgments that are not available publicly, but are relevant to the characteristics of the assets/liabilities being valued. Such inputs include internal agency adjustments to observable data to take account of particular and potentially unique characteristics/functionality of assets/liabilities and assessments of physical condition and remaining useful life.All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the following fair value hierarchy based on the inputs used:

� Level 1 – inputs are quoted prices in active markets for identical assets or liabilities

� Level 2 – inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and

� Level 3 – inputs are unobservable.

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z) Going Concern Darwin Bus Service assets were sold to Territory Transit Pty Ltd in October 2014. Following this, Darwin Bus Service is no longer a going concern for the Territory as it no longer provides a public bus service. This will be the last set of financial statements published. At the date of these accounts, the entity is not a going concern and accordingly the non-going concern basis of accounting has been adopted in the preparation of the financial statements. Owner’s equity has been transferred to the Central Holding Authority. For additional information relating to the sale of Darwin Bus Service assets and the subsequent equity transfer to the Central Holding authority as owner, please refer to the statement of changes in equity and note 3 Discontinued Operations.

� 3. DISCONTINUED OPERATIONS

In October 2014, the assets and employee liabilities of Darwin Bus Service were part of a sale to the private sector reported as part of the financial statements. The remaining net asset position of Darwin Bus Service was transferred back through equity to the Central Holding Authority as the owner on behalf of the NT Government.

The impact of the sale and subsequent equity transfer is broken down as follows:

2015 2014$’000 $’000

Sale of Darwin Bus Service

Assets sold/transferred 7,442 -

Liabilities sold/transferred 502 -

Net Assets part of Sale 6,939 -

Consideration received – sale 6,334 -

Consideration received – other (including long service leave contribution by the Central Holding Authority and delay service commencement costs by the Department of Transport)

445 -

Total consideration received 6,779 -

Loss on Sale (160) -

Transfer of Net Assets back to owner – Central Holding Authority

Assets transferred (cash or cash equivalents) 10,147 -

Liabilities transferred - -

Net Assets part of Transfer to Owner 10,147 -

Transfer Revaluation Reserve to Equity 1,116 -

Transfers to and from Reserves 9,128 -

Net Equity Transfer to Owner impacting Comprehensive Income 10,245 -

Other equity adjustments from prior years 347 -

Total Equity Withdrawals by Owner (including 445 contribution by Central Holding Authority and Department of Transport as above)

10,592 -

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2015 2014$’000 $’000

� 4. LOSS ON DISPOSAL OF ASSETS

Net proceeds from the disposal of assets 6,779 -

Less: Carrying value of assets disposed 6,939 -

Loss on the disposal of assets (160) -

Proceeds from sale of minor assets 2 -

Total Loss on Disposal of Assets (158) -

� 5. PURCHASES OF GOODS AND SERVICES

The net deficit has been arrived at after charging the following expenses:

Goods and services expenses:

Fleet operating expenses comprising:

Repairs and maintenance 239 1,086

Fuel 289 1,112

Other 31 17

Consultants (1) 188 462

Corporate support by external agencies 213 344

Rent 85 342

Insurance 93 162

Information technology charges 18 72

Legal Fees 51 68

Training and Study 5 35

Audit Fees - 19

Travelling allowance 1 1

(1) Includes marketing, promotion and IT consultants.

� 6. INCOME TAX EXPENSE The prima facie income tax expense on pre-tax accounting surplus from operations reconciles to the income tax expense in the financial statement as follows; Net result before income tax (475) (516)

Income tax expense calculated at 30% - -

Total Income Tax Expense - -

� 7. CASH AND DEPOSITS

Cash on hand - 2

Cash at bank - 3,599

Total Cash and Deposits - 3,601

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2015 2014$’000 $’000

� 8. RECEIVABLES

Current

Accounts receivable - 881

Interest receivables - 6

GST receivables - -

Other receivables - 26

Total Receivables - 913

� 9. INVENTORIES General Inventories

At cost - 594

Total Inventories - 594

� 10. ASSETS HELD FOR SALE

Transport Equipment - 6,888

Total Assets Held For Sale - 6,888 Darwin Bus Service assets were reclassified to assets held for sale as at 30 June 2014 in anticipation of the sale of business operations, which took effect on 5 October 2014.

� 11. PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT

Transport Equipment

At capitalised cost - -

Less: Accumulated depreciation - -

- -

Plant and Equipment

At capitalised cost - -

Less: Accumulated depreciation - -

- -

Computer Equipment and Software

At capitalised cost - -

Less: Accumulated depreciation - -

- -

Total Property, Plant and Equipment - -

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Impairment of Property, Plant and Equipment

Darwin Bus Service assets were reclassified to assets held for sale as at 30 June 2014 in anticipation of the sale of assets which took effect on 5 October 2014. No impairment adjustments were required as a result of this.

2015 Property, Plant and Equipment Reconciliations A reconciliation of the carrying amount of property, plant and equipment at the beginning and end of 2014–15 is set out below:

Transport Equipment

Plant and Equipment

Total

$’000 $’000 $’000

Carrying Amount as at 1 July 2014 - - -

Additions - - -

Disposals - - -

Depreciation - - -

Depreciation written back on disposals - - -

Additions/(Disposals) from asset transfers - - -

Revaluation Increment/Decrement - - -

Transfer to/from assets held for sale - - -

Carrying Amount as at 30 June 2015 - - -

2014 Property, Plant and Equipment Reconciliations A reconciliation of the carrying amount of property, plant and equipment at the beginning and end of 2013–14 is set out below:

Transport Equipment

Plant and Equipment

Total

$’000 $’000 $’000

Carrying Amount as at 1 July 2013 6,604 48 6,652

Additions 10 - 10

Disposals (101) (858) (959)

Depreciation (877) (14) (891)

Depreciation written back on disposals 102 858 960

Additions/(Disposals) from asset transfers - - -

Revaluation Increment/Decrement 1,116 - 1,116

Transfer to/from assets held for sale (6,854) (34) (6,888)

Carrying Amount as at 30 June 2014 - - -

169

DARWIN BUS SERVICE

� 12. FAIR VALUE MEASUREMENT OF NON-FINANCIAL ASSETS

a) Fair Value HierarchyFair values of non-financial assets categorised by level of inputs used to compute fair value are:

Level 1 Level 2 Level 3 Total Fair Value

$’000 $’000 $’000 $’000

2014–15

Asset Classes

Assets Held for Sale (Note 9) - - - -

Total - - - -

Level 1 Level 2 Level 3 Total Fair Value $’000 $’000 $’000 $’000

2013–14

Asset Classes

Assets Held for Sale (Note 9) - 6,888 - 6,888

Total - 6,888 - 6,888

There were no transfers between Level 1 and Levels 2 or 3 during 2014–15

b) Valuation Techniques and InputsValuation techniques used to measure fair value in 2014–15 are:

Level 2 Techniques Level 3 TechniquesAsset Classes

Assets Held for Sale Market

There were no changes in valuation techniques from 2013–14 to 2014–15.

Level 2 fair values of assets held for sale were based on market evidence determined by an open tender process and offers received for the business. As these were known, it was assessed to be fair market value.

170

DARWIN BUS SERVICE

c) Additional Information for Level 3 Fair Value Measurements(i) Reconciliation of Recurring Level 3 Fair Value Measurements

Transport Equipment $’000

2014–15

Fair value as at 1 July 2014 -

Additions -

Disposals -

Transfers from Level 2 -

Transfers to Level 2 -

Depreciation -

Gains/losses recognised in net surplus/deficit -

Gains/losses recognised in other comprehensive income -

Fair value as at 30 June 2015 -

Unrealised gains/losses recognised in net surplus/deficit for assets held at the end of the reporting period

-

Transport Equipment $’000

2013–14

Fair value as at 1 July 2013 48

Additions -

Disposals (858)

Transfers from Level 2 -

Transfers to Level 2 (34)

Depreciation (14)

Depreciation written back on disposals 858

Gains/losses recognised in net surplus/deficit -

Gains/losses recognised in other comprehensive income -

Fair value as at 30 June 2014 -

Unrealised gains/losses recognised in net surplus/deficit for assets held at the end of the reporting period

-

(ii) Sensitivity analysis

It is not practical to compute a relevant summary measure for the unobservable inputs. In respect of sensitivity of fair value to changes in input value, a higher historical cost would generally result in a higher fair value and greater consumption of economic benefit lowers fair value.

171

DARWIN BUS SERVICE

2015 2014$’000 $’000

� 13. PAYABLES

Accounts payable - 52

Accrued expenses - 40

Other payables - 291

Total Payables - 383

� 14. PROVISIONS

Current

Employee benefits

Recreation leave - 447

Leave loading - 62

Other employee benefits - 97

Other current provisions

Income Tax - -

Dividend - -

- 606

Non-Current

Employee benefits

Recreation leave - -

- -

Total Provisions - 606

172

DARWIN BUS SERVICE

2015 2014$’000 $’000

� 15. RESERVES Asset Revaluation Surplus

(i) Nature and purpose of the asset revaluation surplus The asset revaluation surplus includes the net revaluation increments and decrements arising from the revaluation of non-current assets. Impairment adjustments may also be recognised in the asset revaluation surplus.

(ii)Movements in the asset revaluation surplus

Balance as at 1 July

Decrement – Transport Equipment (1,116) 1,116

Net Movements (1,116) 1,116

Balance as at 30 June - 1,116

� 16. NOTES TO THE CASH FLOW STATEMENT Reconciliation of Cash The total of agency Cash and Deposits of $0 recorded in the Balance Sheet is consistent with that recorded as ‘Cash’ in the Cash Flow Statement. Reconciliation of Net Deficit to Net Cash from Operating Activities

Net Deficit (475) (516)

Non-cash items:

Depreciation and amortisation - 891

Asset Written Off 2 -

Loss on disposal of assets 160 -

Changes in assets and liabilities:

Decrease/(Increase) in receivables 873 7

Decrease/(Increase) in inventories 595 (47)

Decrease/(Increase) in prepayments 60 (10)

(Decrease)/Increase in payables (343) 76

(Decrease)/Increase in provision for employee benefits (510) (16)

(Decrease)/Increase in other provisions (97) (135)

Net Cash from Operating Activities 267 250

173

DARWIN BUS SERVICE

� 17. FINANCIAL INSTRUMENTS

A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial instruments held by Darwin Bus Service include cash and deposits, receivables and payables. Darwin Bus Service has limited exposure to financial risks as discussed below.

(a) Categorisation of Financial InstrumentsThe carrying amounts of Darwin Bus Service’s financial assets and liabilities by category are disclosed in the table below.

Financial Assets

Cash and deposits - 3,601

Loans and receivables - 913

Financial Liabilities

Amortised cost: - 343 (b) Credit RiskDarwin Bus Service has limited credit risk exposure (risk of default). In respect of any dealings with organisations external to Government, Darwin Bus Service has adopted a policy of only dealing with credit worthy organisations and obtaining sufficient collateral or other security where appropriate, as a means of mitigating the risk of financial loss from defaults.

The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represents Darwin Bus Service’s maximum exposure to credit risk without taking account of the value of any collateral or other security obtained.

Receivables

Receivable balances are monitored on an ongoing basis to ensure that exposure to bad debts is not significant. A reconciliation and aging analysis of receivables is presented below.

Internal receivables are from entities within the Northern Territory Government.

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DARWIN BUS SERVICE

Aging of Receivables

Aging of Impaired Receivables

Net Receivables

$000 $000 $000

Internal Receivables

2014–15

Not overdue - - -

Overdue for less than 30 days - - -

Overdue for 30 to 60 days - - -

Overdue for more than 60 days - - -

Total - - -

Internal Receivables

2013–14

Not overdue - - -

Overdue for less than 30 days 907 - 907

Overdue for 30 to 60 days - - -

Overdue for more than 60 days - - -

Total 907 - 907

(c) Liquidity RiskLiquidity risk is the risk that Darwin Bus Service will not be able to meet its financial obligations as they fall due. Darwin Bus Service’s approach to managing liquidity is to ensure that it will always have sufficient liquidity to meet its liabilities when they fall due.

The following tables detail Darwin Bus Service’s remaining contractual maturity for its financial assets and liabilities. It should be noted that these values are undiscounted, and consequently totals may not reconcile to the carrying amounts presented in the Balance Sheet.

175

DARWIN BUS SERVICE

2015 Maturity analysis for financial assets & liabilities

Interest BearingFixed or Variable

Less than a

Year

1 to 5 Years

More than 5 Years

Non Interest Bearing

Total Weighted Average

$’000 $’000 $’000 $’000 $’000 $’000 %

Assets

Cash and deposits - - - - - -

Receivables - - - - - -

Total Financial Assets: - - - - - -

Liabilities

Payables - - - - - -

Total Financial Liabilities: - - - - - -

2014 Maturity analysis for financial assets & liabilities

Interest BearingFixed or Variable

Less than a Year

1 to 5 Years

More than 5 Years

Non Interest Bearing

Total Weighted Average

$’000 $’000 $’000 $’000 $’000 $’000 %

Assets

Cash and deposits 3,599 - - - 2 3,601 2.25

Receivables - - - - 913 913

Total Financial Assets: 3,599 - - - 915 4,514

Liabilities

Payables - - - - 343 343

Total Financial Liabilities: - - - - 343 343

176

DARWIN BUS SERVICE

(d) Market RiskMarket risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. It comprises interest rate risk, price risk and currency risk. The primary market risk that Darwin Bus Service is likely to be exposed to is interest rate risk.

(i) Interest Rate Risk

Darwin Bus Service’s exposure to interest rate risk by asset and liability classes is disclosed above under liquidity risk.

The entity’s operating account earns monthly interest at a variable rate (Reserve Bank of Australia’s official cash rate). Negative balances without overdraft facilities or prior arrangement with NT Treasury Corporation will be charged the overdraft rate applied to the Government Bank Account by National Australia Bank.

Market Sensitivity Analysis

Changes in the variable rates of 100 basis points (1 per cent) at reporting date would have the following effect on Darwin Bus Service’s profit or loss and equity.

Profit or Loss and Equity100 basis points

increase100 basis points

decrease

$’000 $’000

30 June 2015

Financial assets – cash at bank - -

Net Sensitivity - -

30 June 2014

Financial assets – cash at bank 36 (36)

Net Sensitivity 36 (36)

(ii) Price Risk

Darwin Bus Service is not exposed to price risk as Darwin Bus Service does not hold any financial instruments impacted by price risk.

(iii) Currency Risk

Darwin Bus Service is not exposed to currency risk as Darwin Bus Service does not hold borrowings denominated in foreign currencies or transactional currency exposures arising from purchases in a foreign currency.

177

DARWIN BUS SERVICE

(e) Net Fair ValueThe fair value of financial instruments is determined on the following basis:

The fair value of cash, deposits, advances, receivables and payables approximates their carrying amount, which is also their amortised cost.

2015 2014$’000 $’000

� 18. COMMITMENTS

(i) Capital Expenditure Commitments

Darwin Bus Service had the following capital expenditure commitments at 30 June 2015

Within one year - -

Later than one year and not later than five years - -

- -

Capital expenditure commitments represent the contracted arrangements to undertake the programmed replacement of the fleet.

(ii) Operating Lease Commitments

Darwin Bus Service leases motor vehicles under non-cancellable operating leases expiring from one to two years. Future operating lease commitments not recognised as liabilities are payable as follows:

Within one year - 4

Later than one year and not later than five years - -

- 4

(iii) Other Expenditure Commitments

Other non-cancellable expenditure commitments not recognised as liabilities are payable as follows:

Within one year - 84

Later than one year and not later than five years - -

- 84

Other expenditure commitments include the rent of premises being the bus depot.

178

DARWIN BUS SERVICE

� 19. CONTINGENT LIABILITIES AND CONTINGENT ASSETS

a) Contingent LiabilitiesDarwin Bus Service had no contingent liabilities as at 30 June 2015.

b) Contingent AssetsDarwin Bus Service had no contingent assets as at 30 June 2015.

Agency Agency Territory Items Territory Items2015 No. of

Trans.2014 No. of

Trans.2015 No. of

Trans.2014 No. of

Trans.

$’000 $’000 $’000 $’000

Write-offs, Postponements and Waivers Under the Financial Management Act

Represented by:

Amounts written off, postponed and waived by Delegates:

Irrecoverable amounts payable to the Territory or an agency written off

1 1 - - - - - -

Losses or deficiencies of money written off - - - - - - - -

Public property written off 3 3

Waiver or postponement of right to receive or recover money or property

- - - - - - - -

Total Written Off, Postponed and Waived by Delegates

4 4 - - - - - -

Amounts written off, postponed and waived by the Treasurer

- - - - - - - -

Irrecoverable amounts payable to the Territory or an agency written off

- - - - - - - -

Losses or deficiencies of money written off - - - - - - - -

Public property written off - - - - - - - -

Waiver or postponement of right to receive or recover money or property

- - - - - - - -

Total Written Off, Postponed and Waived by the Treasurer

- - - - - - - -

Write-offs, Postponements and Waivers Authorised Under Other Legislation

- - - - - - - -

Gifts Under the Financial Management Act - Internal

- - - - - - - -

Gifts Authorised Under Other Legislation - - - - - - - -

Ex Gratia Payments Under the Financial Management Act

- - - - - - - -

179

DARWIN BUS SERVICE

� 21. BUDGETARY INFORMATION

2014–15 2014–15Comprehensive Operating Statement Actual Original

BudgetVariance Note

$’000 $’000 $’000

INCOME

Sales of goods and services 2,332 8,900 (6,568)

Interest revenue 177 81 96

Other income 104 538 (434)

TOTAL INCOME 2,613 9,519 (6,906)

EXPENSES

Employee expenses 1,576 5,110 (3,534)

Loss on disposal of assets 158 - 158

Administrative expenses

Purchases of goods and services 791 3,715 (2,924)

Fleet operating expenses 559 - 559

Depreciation and amortisation - 920 (920)

Other administrative expenses 4 - 4

TOTAL EXPENSES 3,088 9,745 (6,657)

NET DEFICIT (475) (226) (249)

OTHER COMPREHENSIVE INCOME

Items that will not be reclassified to net deficit

Asset Revaluation Reserve (1,116) - (1,116)

Transfers From Reserves (9,129) - (9,129)

TOTAL OTHER COMPREHENSIVE INCOME (10,245) - (10,245)

COMPREHENSIVE RESULT (10,720) (226) (10,494)

Notes: All variances are the result of the sale of assets of Darwin Bus Service that occurred in October 2014; this was not foreseen at the time of the original 2014–15 budget allocation in May 2014

180

DARWIN BUS SERVICE

2014–15 2014–15Balance Sheet Actual Original

BudgetVariance Note

$’000 $’000 $’000

ASSETS

Current assets

Cash and deposits - 2,338 (2,338)

Receivables - 880 (880)

Inventories - 548 (548)

Prepayments - 49 (49)

Total current assets - 3,815 (3,815)

Non-current assets

Property, plant and equipment - 6,800 (6,800)

Total non-current assets - 6,800 (6,800)

TOTAL ASSETS - 10,615 (10,615)

LIABILITIES

Current liabilities

Payables - 267 (267)

Provisions - 444 (614)

Total current liabilities - 711 (881)

Non-current liabilities

Provisions - 170 (170)

Total non-current liabilities - 170 (170)

TOTAL LIABILITIES - 881 (881)

NET ASSETS - 9,734 (9,734)

EQUITY

Capital - 347 (347)

Reserves - - -

Accumulated funds - 9,387 (9,387)

TOTAL EQUITY - 9,734 (9,734) Notes: All variances are the result of the sale of assets of Darwin Bus Service that occurred in October 2014; this was not foreseen at the time of the original 2014–15 budget allocation in May 2014.

181

DARWIN BUS SERVICE

2014–15 2014–15Cash Flow Statement Actual Original

BudgetVariance Note

$’000 $’000 $’000

CASH FLOWS FROM OPERATING ACTIVITIES

Operating receipts

Grants and subsidies received

Current - - -

Receipts from sales of goods and services 3,437 9,438 (6,001)

Interest received 183 81 102

Total operating receipts 3,620 9,519 (5,899)

Operating payments

Payments to employees (2,269) (5,110) 2,841

Payments for goods and services (1,084) (3,715) 2,631

Interest paid - - -

Total operating payments (3,353) (8,825) 5,742

Net cash from/(used in) operating activities 267 694 (472)

CASH FLOWS FROM INVESTING ACTIVITIES

Investing receipts

Proceeds from asset sales 6,724 6 6,718

Total investing receipts 6,724 6 6,718

Investing payments

Purchases of assets - (1,000) 1,000

Total investing payments - (1,000) 1,000

Net cash from/(used in) investing activities 6,724 (994) 7,718

CASH FLOWS FROM FINANCING ACTIVITIES

Financing payments

Equity withdrawals (10,592) - (10,592)

Total financing payments (10,592) - (10,592)

Net cash used in financing activities (10,592) - (10,592)

Net decrease in cash held (3,601) (300) (3,301)

Cash at beginning of financial year 3,601 2,638 963

CASH AT END OF FINANCIAL YEAR - 2,338 (2,338)

Notes: All variances are the result of the sale of assets of Darwin Bus Service that occurred in October 2014; this was not foreseen at the time of the original 2014–15 budget allocation in May 2014.

182

Appendix

Risk Management – Strategic RisksThe Department’s Strategic Business Risks are summarised in the table below:

Department of Transport Strategic Business Risk Assessment Summary

Focus Area Response

Strategic planning: � Effective consultation

� Meet required timeframes

� Secure adequate funding to deliver

� Finalise the Darwin Regional Transport Plan

� Prepare a Public Transport Strategy

� Prepare a Roads and Bridges Strategy

� Develop a Freight and Logistics

� Industry Strategy

� Align capital works priorities to the Strategic Plan

� Develop an integrated Transport Planning and Investment Roadmap

� Lead the Northern Territory Regional Infrastructure Study

� Develop an asset management strategy

� Develop a stakeholder engagement strategy for programs and key projects, utilising established networks where possible, for communications

Human Resources: � Enhance workforce retention

� Provide required training

� Recruitment effective and efficient

� Ensure workforce can meet demand

� Enhance transfer of corporate knowledge

� Implement the Strategic People Plan

� Promote a culture of leadership

� Enhance accountability and management responsibility

� Recruit appropriately skilled, qualified and experienced people

� Implement high level performance reporting and reviews

� Implement professional development programs

� Celebrate success and promote social activities

183

Regulatory regime: � Have a contemporary regime

� Raise Northern Territory specific issues during national legislation amendments

� Manage political impact and response on topical issues

� Review Legislative framework to reduce red tape

� Streamline Motor Vehicle Registry services

� Develop a maritime regulatory environment

� Build public confidence in transport through effective marketing, advertising and promotional activities

� Review Traffic Act, Motor Vehicle Act and Control of Roads Act

� Engage and consult with industry, assist and promote compliance through education

Supporting national agenda and enhancing services:

� Increase revenue sources to support real costs

� Develop statistical evidence required for cost benefit analysis

� Manage the complexity in balancing urban and remote policy settings

� Prepare a Public Transport Strategy for the Northern Territory

� Develop a Taxi Industry Reform Strategy

� Produce an Aviation Industry and Services Strategy

� Finalise the Darwin Regional Transport Plan

� Encourage the Development of a National Regional and Remote Transport Infrastructure and Services Strategy

� Position Northern Territory for ‘Developing the North’ funding

� Participate in the national transport policy agenda via the Transport and Infrastructure Senior Officials

� Committee, support the Minister at the Transport and Infrastructure Council

� Expand the public transport network and review and redesign the Urban Bus Network and School Bus Services

� Deliver a Bus Ticketing Real Time Passenger Information System in Darwin and Alice Springs

184

Road behavior and water safety:

� Enhance strategic partnerships

� Manage entrenched cultural issues that impact safety

� Obtain political and public support for change

� Manage resources for education and awareness

� Implement the Northern Territory Road Safety Action Plan

� Develop an agreed calendar for road safety policy and programs

� Expand the DriveSafe NT Remote Program

� Provide evidence based policy options to Government

� Review the recreational boating regulations

Communication and systems:

� Have a consistent approach to project management

� Maximise existing ICT systems

� Ensure process improvements are aligned with agreed obligations

� Reduce duplication in reporting

� Collaboration/consultation with key stakeholders to secure community buy-in and Australian and Territory Government commitment (implement stakeholder engagement strategy)

� Develop automated project management systems

� develop participation in ASNET

� Develop a consistent project management governance framework (planning, timeframes, decision making, reporting)

� Strengthen regional communication framework

� Enhance web-based communications and data management with customers

� Deliver a Bus Ticketing Real Time Passenger Information System in Darwin and Alice Springs

185

� KEY DELIVERABLES

Passenger Transport as at 30 June 2015Key Deliverables 2014–15

Budget2014–15

Estimate2014–15

Actual2015–16 Budget

Delivery of public bus services in Darwin, rural Darwin and Alice Springs in accordance with contractual requirements1

4.8 million km

4.8 million km

4.8 million km

4.8 million km

Provision of school bus services across the Territory in accordance with contractual requirements 1

2.4 million km

2.4 million km

2.4 million km

2.4 million km

Provision of customized transport solutions for students with identified special needs

325 325 325 325

Registered commercial passenger vehicles (CPV) in the Territory 2

1 293 1 271 1 293 1 293

1 Number of service kilometres delivered2 All licence categories including commercial passenger vehicle, provisional and learner.

Registration, Licensing and Road Safety as at 30 June 2015Key Deliverables 2014–15

Budget2014–15

Estimate2014–15

Actual2015–16 Budget

Licensed drivers 1 152 333 152 333 152 448 153 856

Registered motor vehicles2 189 853 188 555 189 031 190 440

Customer satisfaction 95% 95% 98.2% 95%

Percentage of MVR transactions processed through alternative servicing channels including Australia Post 3

- 34% 49% 37%

Deliver community and school based road safety education

230 300 375 300

1 All licence categories including commercial passenger vehicle, provision and learner.2 All vehicle types including motorcycles, trailers, trucks and commercial passenger vehicles3 New Measure

Transport Regulation and Compliance as at 30 June 2015Key Deliverables 2014–15

Budget2014–15

Estimate2014–15

Actual2015–16 Budget

Marine survey and seafarer certificates issued 1 1 300 1 100 1 252 1 100

Marine certificates issued in accordance with approval delivery standards

90% 90% 92% 90%

Number of vehicles checked as part of on road auditing activity

25 000 23 000 18 735 23 000

1 Due to ongoing regulatory reform by the Territory and Commonwealth governments many vessels no longer require annual surveys resulting in a reduction in the number of certificates issued.

186

Transport Infrastructure Planning as at 30 June 2015Key Deliverables 2014–15

Budget2014–15

Estimate2014–15

Actual2015–16 Budget

Lane kilometres of:

New sealed roads 1 135 245 178 219

Sealed roads upgraded 62 51 36 60

Unsealed roads upgraded 237 64 53 68

Network resealed – National Network 197 129 129 130

Network resealed – Territory Roads 353 315 315 300

User satisfaction index 2 3.86 3.86 3.86 3.86

1 The increase reflects additional investment in Territory roads.2 This measure is prepared by AustRoads and represents users’ perceptions of the performance of each attribute measured

on a performance scale 1 = very dissatisfied to 5 = very satisfied

Transport Assets as at 30 June 2015Key Deliverables 2014–15

Budget2014–15

Estimate2014–15

Actual2015–16 Budget

Management of government facilities 1 862 917 917 923

1 Includes bus stops, shelters and interchanges, boat ramps, jetties, pontoons and barge landings, remote aerodromes, road safety centres, motor vehicle registries, Motorcycle education, Training and Licensing facility and weighbridges.

Transport Planning, Policy and Reform as at 30 June 2015Key Deliverables 2014–15

Budget2014–15

Estimate2014–15

Actual2015–16 Budget

Policy advice measured by stakeholder satisfaction

90% 90% 90% 90%

Darwin Bus Service as at 30 June 2015Key Deliverables 2014–15 Budget 2014–15 Actual

Total scheduled services 1 84 094 84 094

Contractual service kilometres 2 1.73 million 1.73 million

Average costs per kilometer 3 $5.63 $5.63

Client satisfaction 99% 99%

1 Minor schedule reviews 2 Little change in kilometres and service changes do not vary route length3 Costs contained

187

Performance SummaryThe Department of Transport ended the financial year in line with the final budget estimate. Further explanations for variances against the budget can be found in the summary report as part of the financial statements published in this report. The 2014–15 Final Estimate provided the Department of Transport with an increase of $17.4 million in Budget. The majority of this increase in budget related to appropriation provided for grants including $10 million for the Regional Economic Infrastructure Fund grants and $5 million for Local Roads Traffic Managements grants which were transferred from Capital.

DEPARTMENT OF TRANSPORT Expenditure by output group, 2014–15 Output 2014–15

Published Budget

$000

2014–15 Final

Estimate$000

% change

2014–15 Actuals

$000

% change to Final

Estimate

Transport 229 720 248 107 8.00% 245 813 -0.92%

Passenger Transport 53 793 55 336 55 342

Registration, Licensing and Road Safety 16 600 16 116 13 738

Transport Regulation & Compliance 6 225 6 403 8 234

Transport Infrastructure Planning 134 697 147 299 145 746

Transport Assets 12 675 18 188 18 268

Transport Planning Policy & Reform 5 730 4 765 4 485

Corporate and Governance 6 171 5 213 -15.52% 7 258 39.23%1

Corporate and Governance 2 558 2 213 4 208

Shared Services Provided 3 613 3 000 3 050

Total Output Budget 235 891 253 320 7.39% 253 071 -0.10% Notes: 1 The Variation between the actual result and the Final Estimate relates to notional charges for services provided by the Department of Corporate and Information Services which is fully offset by notional revenue.

188

� DEPARTMENT CONTACTS

Executive 8924 7030

Transport Infrastructure Planning 8924 7770

Transport Services 8924 7845

Transport Policy and Legislation 8924 7965

Aviation, Logistics and Industry Development 8924 7965

Australasia Railway Corporation 8999 5155