Capital Metro Annual Report 2014-15 - cityservices.act.gov.au · Mr Simon Corbell MLA Minister for Capital Metro ACT Legislative Assembly London Circuit CANBERRA CITY ACT 2601 Dear

ANNUAL REPORT 2014-15

ISSN 2204-3756Creative commons© Australian Capital Territory, Canberra 2015This work is copyright. Apart from any use as permittedunder the Copyright Act 1968, no part may be reproducedby any process without written permission from theCapital Metro Agency.Prepared by Publishing Services forthe Capital Metro Agency, September 2015.Telephone (02) 13 22 81Website www.capitalmetro.act.gov.auFor information regarding the Capital MetroAgency Annual Report 2014-15 please contact theGovernance and Operations Branch on 6207 5424.Publication No 15/1234

Contents iii

SECTION A Transmittal Letter 1

Compliance Statement 4

SECTION B Organsiation Overview and Performance 7

Sub-Section B.1 - Organisational Overview 8

Sub-Section B.2 - Performance Analysis 24

Sub-Section B.3 - Scrutiny 27

Sub-Section B.4 - Risk Management 30

Sub-Section B.5 - Internal Audit 32

Sub-Section B.6 - Fraud Prevention 33

Sub-Section B.7 - Work Health and Safety 34

Sub-Section B.8 - Human Resources Management 36

Sub-Section B.9 - Ecologically Sustainable Development 39

SECTION C Financial Management Reporting 43

Sub-Section C.1 - Financial Management Analysis 44

Directorate Financial Position 48

Sub-Section C.2 - Financial statements 53

Sub-Section C.5 – Government Contracting 88

Sub-Section C.6 – Statement of Performance 94

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ACKNOWLEDGEMENT TO COUNTRYThe Australian Capital Territory (ACT) is Ngunnawal country. The ACT Government acknowledges the Ngunnawal people as the traditional custodians of the Canberra region.

The region is also an important meeting place and significant to other Aboriginal groups.

The Capital Metro Agency acknowledges and respects the Aboriginal and Torres Strait Islander people, their continuing culture and the contribution they make to the life of this city and this region.

Capital Metro Annual Report 2014-152

Mr Simon Corbell MLA Minister for Capital Metro ACT Legislative Assembly London Circuit CANBERRA CITY ACT 2601

Dear Minister

Transmittal Certificate

I present the 2014-15 Annual Report of the Capital Metro Agency.

This Report has been prepared under section 5(1) of the Annual Report (Government Agencies) Act 2004 and in accordance with the requirements under the Annual Report Directions.

It has been prepared in conformity with other legislation applicable to the preparation of the Annual Report by the Capital Metro Agency.

I certify that information in the attached Annual Report, and information provided for whole of government reporting, is an honest and accurate account and that all material information on the operations of the Capital Metro Agency has been included for the period 1 July 2014 to 30 June 2015.

I hereby certify that fraud prevention has been managed in accordance with the Public Sector Management Standards, Part 2.

Section 13 of the Annual Reports (Government Agencies) Act 2004 requires that you cause a copy of the Report to be laid before the Legislative Assembly within four months of the end of financial year.

Yours sincerely

Emma Thomas Director-General 9 October 2015

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COMPLIANCE STATEMENTThe Capital Metro Annual Report must comply with the 2015 Annual Report Directions (the Directions). The Directions are found at the ACT Legislation Register: http://www.legislation.act.gov.au/ni/annual/2015.asp.

The Compliance Statement indicates the subsections, under the five Parts of the Directions, that are applicable to the Capital Metro Agency (CMA) and the location of information that satisfies these requirements:

Part 1 Directions Overview

The requirements under Part 1 of the 2015 Directions relate to the purpose, timing and distribution, and records keeping of annual reports. The Capital Metro Annual Report complies with all subsections of Part 1 under the Directions.

In compliance with section 13 Feedback, Part 1 of the Directions, contact details for the CMA are provided within the Capital Metro Annual Report to provide readers with the opportunity to provide feedback.

Part 2 Agency Annual Report Requirements

The requirements within Part 2 of the Directions are mandatory for all agencies and the CMA complies with all subsections. The information that satisfies the requirements of Part 2 is found in the Capital Metro Annual Report as follows:

• Transmittal Certificate, see page no. 3 • Organisational Overview and Performance,

inclusive of all subsections, see page nos. 8-42, noting the following: • Subsection B8 Human Resource Management,

workforce recruitment and separation data was not supplied. Due to a small sample size the data was not statistically valid or reliable.

• Financial Management Reporting, inclusive of all subsections, see page nos. 44-97, noting the following:

• Subsection C3 Capital Works, the CMA did not conduct capital works in the reporting period; and

• Subsection C4 Assets Managed and Office Accommodation, the CMA managed no assets as at 30 June 2015. The CMA leases office accommodation at Level 1 and a portion of Level 2, Telstra House, 490 Northbourne Avenue, Dickson, ACT 2602 and all office furniture in the premises remains the property of the lessor. All Information, Communications and Technology equipment is leased.

The total space occupied is approximately 853.94 m² including meeting rooms, staff facilities, circulation areas and work stations for consultants and contractors. As at 30 June 2015, the CMA employed 25 employees and the average space per employee is 34.16 m².

Part 3 Reporting by Exception

The CMA has nil information to report by exception under Part 3 of the Directions for the 2014–15 reporting period.

Part 4 Agency Specific Annual Report Requirements

There are no agency specific annual report requirements applicable to the CMA.


Part 5 Whole of Government Annual Reporting

All subsections of Part 5 of the Directions apply to the CMA. Consistent with the Directions, the information satisfying these requirements is reported in the one place for all ACT Public Service Directorates, as follows:

• M. Community Engagement and Support, see the 2014–15 annual report of Chief Minister, Treasury and Economic Development Directorate;

• N.1 (Bushfire Management) – On the whole, responsibility for bushfire management in the Territory sits with the ACT Emergency Services Agency (ESA) adhering to the Bushfire Operational Plan prepared by the Territory and Municipal Services (TAMS) Directorate. The CMA is neither the manager of unleased Territory land nor the owner of Territory Land. The CMA did not receive any directions under the Bushfire Operational Plan.

• N. Justice and Community Safety, including all subsections N.2 – N.4, see the 2014–15 annual report of the Justice and Community Safety Directorate;

• O. Public Sector Standards and Workforce Profile, including all subsections O.1-O.3 ,see the 2014–15 Commissioner for Public Administration annual report; and

• P. Territory Records, see the 2014–15 annual report of Chief Minister, Treasury and Economic, Development Directorate.

ACT Public Service Directorate annual reports are found at the following web address: http://www.cmd.act.gov.au/open_government/report/annual_reports.


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SUB-SECTION B.1 - ORGANISATIONAL OVERVIEW

OUR VISIONThe CMA’s vision is to build a modern, vibrant and sustainable city. The CMA captures this purpose with the following phrase:

“Capital Metro: New Century, New Connections”

OUR MISSIONThe CMA’s mission is to manage all aspects of the ongoing planning, design and delivery of the Capital Metro project (the Project), being the first stage of a light rail network in the Territory.

OUR VALUESThe following values are unique to the CMA and have been developed by the entire CMA team to ensure they accurately represent the culture of the CMA:

Finds a way - I will find a way to conduct my work in a safe and professional manner.

Open and Transparent - I will work collaboratively with my team and be open in providing necessary and supporting information to team members.

Advocacy - I will work with commitment, conviction and passion, because I care about Canberra, and will leave a positive legacy. I will advocate for the needs of our customers during design, construction and operation.

Professionalism - I will work with professionalism and have a commitment to quality and excellence.

Courage - I will have courage to take calculated risks, make decisions and deliver frank and fearless advice.

OUR ROLETransport is critical to the Government’s vision of a sustainable city, and the foundation for transport

planning over the next 20 years is set out in the Transport for Canberra Policy 2012. This policy aims to create a transport system that puts people first and links new development to investment in public transport.

The Gungahlin to the City corridor, Stage 1 of the light rail network, is an important part of the Policy, which maps out ways to deliver faster, more convenient and more sustainable transport options for Canberra over the coming years.

The Project is an important part of the ACT Government’s vision to deliver a truly sustainable and creative city as set out in The Canberra Plan 2004.

The CMA will deliver the Project in a manner which ensures comprehensive coordination and integration of transport, land use and development, social, and environmental outcomes.

FUNCTIONS AND SERVICES OF THE DIRECTORATE The CMA is a Directorate within the ACT Government, responsible to the Minister for Capital Metro, Simon Corbell MLA.

We work collaboratively with other ACT Government Directorates to bring together the planning, design and procurement of the Project.

In order to deliver on our requirements, the CMA is divided into five Divisions with a number of smaller functional groups that deliver, support or enable the delivery of the Project. They are:

• Office of the Project Director/Director-General. • Procurement and Delivery Division:

• Procurement and Delivery; and • Planning and Design.

• Customer Experience and Operations Division. • Commercial Division:


• Commercial; • Project Controls; • Finance; and • Legal Services.

• Governance and Operations Division: • Governance and Corporate; and • Communications and Stakeholder Engagement.

The CMA, Minister for Capital Metro and the Capital Metro Sub-Committee of Cabinet are supported by the Capital Metro Project Board (the Project Board). The Project Board focuses on strategic decision making, drawing principally on recommendations tabled by the Project Director from the project team. The Project Board’s focus is high-level strategic decision making.

Project Board membership is composed of decision makers only; i.e. those who are best identified as stakeholders.

For more information on the Project Board, please refer to Internal Accountability.

OUR CLIENTS AND STAKEHOLDERSMaintaining and strengthening relationships with a wide range of stakeholders is essential to the CMA’s role in delivering light rail for Canberra. The CMA Stakeholder Engagement Strategy articulates the breadth of interested and engaged stakeholders in the design, construction and operation of Capital Metro.

Our stakeholder community includes:

• ministerial offices; • ACT Public Service decision making bodies; • ACT residents, community groups, advocacy

bodies, businesses and institutions; and • ACT and Commonwealth Government agencies

and Directorates.

Our primary client is the ACT community. The CMA engages with the community in relation to the

development of light rail. The CMA actively seeks out, considers and acts on the views of the community to deliver appropriate, high quality and usable urban design outcomes.

The CMA is committed to working together and developing strong relationships. It is this commitment that helps us understand community requirements.

Our expert team has been involved in developing and implementing a number of education and awareness campaigns that target the needs of our clients and key stakeholders.

The team has also actively participated in numerous community engagement events including presenting at forums and conferences, and attending stakeholder briefings. The CMA team has also conducted independent market research activities and has been heavily engaged online and in social media.

These activities assist in building an improved understanding of the Project’s objectives and higher levels of engagement with the community.


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CAPITAL METRO AGENCY EXECUTIVE ORGANISATION CHART AS AT 30 JUNE 2015

Capital Metro Sub-Committee of Cabinet

Minister for Capital MetroMr Simon Corbell MLA

Capital MetroProject Director

Emma Thomas

Capital Metro Project Board

Executive Director Governance and Operations

Ms Anita Hargreaves

Director Governance

and OperationsMs Nikki Pulford

Director Planning

and DesignMr Steve Anderson

Director Project Controls

Mr Brendan McAvoy

Director Communications and Stakeholder

EngagementMs Melanie Taylor

Executive Director Procurement and Delivery

Mr Stephen Allday

Executive Director Commercial

Mr Duncan Edghill

Director Customer Experience

and OperationsMs Katrina Giudice

PLANNING FRAMEWORKDuring the reporting period, the Executive Team, in consultation with other CMA staff, began drafting the next iteration of the CMA’s Strategic Plan. The Strategic Plan is being developed to assist the CMA in its transition from the Project’s Procurement Phase into the Project’s Construction Phase. The Strategic Plan will recognise the relationship the CMA will have with the private consortium chosen to deliver Capital Metro Stage 1, and will guide the CMA by providing:

• strategic direction on how the next stages of the Project will be delivered; and

• key result areas and how success will be measured.

A key strategy for the CMA was to build upon its existing highly skilled, committed and diverse workforce of both ACT Public Servants and private sector consultants and contractors.

In addition to our legal, commercial, and technical advisors, the reporting period saw the CMA engage specialist advisors for light rail operations, probity, program control, utilities management and transaction (tender process) management.

The CMA continues to adopt and promote best practice project management and probity principles in its dealings, with overarching probity advice provided by Sparke Helmore Lawyers.


AGENCY PERFORMANCEThe following table provides a brief description of the CMA’s performance against the 2014-15 priorities as listed in the 2014-15 Budget Papers.

For further information on the CMA’s performance against strategic indicators and output classes, see sub section B2-Performance Analysis.

Priority Achievement at a glance against priority

Identification of such preparatory capital works as is appropriate in advance of the construction of light rail facilities.

During the course of the reporting period the CMA commenced a variety of preparatory and enabling works for the Project. For example, geotechnical, survey and other investigation works; underground and overhead utilities survey and associated investigation works; and a detailed tree survey has been completed documenting the species, size, health and expected longevity of each tree along the Capital Metro alignment.

Management of non-capital expenditures associated with necessary CMA staffing and advisor requirements.

Total non-capital expenditure, including staffing, advisors and all other costs, for the year ended 30 June 2015 was $23.696 million which was less than 1% above the original budget for the year.

Finalisation of the procurement strategy for delivery, operation and funding of the light rail service.

The Capital Metro Business Case, which details the Public Private Partnership delivery mechanism for the Project, was approved during the reporting period.

Completion of such preliminary design, planning and estimation tasks as is necessary to enable progression of the adopted procurement strategy.

Three iterations of design at a technical level and a detailed Urban Design Handbook were completed during the reporting period. The strategy was identified and implemented to obtain necessary development and works approvals for the Stage 1 route between Gungahlin and the City, as well as the potential extension to Russell. The technical designs were provided to shortlisted respondents for reference purposes in the tender documentation and will be used to obtain initial development approvals.

Generation of market interest in the light rail procurement process in a manner consistent with ACT probity and procurement requirements and principles.

On 31 October 2014, the CMA released the invitation for Expressions of Interest (EOI) for Stage 1 of the Project. A strong industry response from local, national and international companies saw four expressions of interest received. The quality of the bids was reflective of the high level of interest and strong market appetite for the Project.

A subsequent assessment process shortlisted two consortia, who were invited to submit a tender. The two shortlisted consortia not only demonstrated their ability to effectively meet these criteria, but also confirmed that their knowledge and experience in national and international projects will be an asset for our city.

Both consortia have extensive experience in international and national transport projects, but can also bring local knowledge and an understanding of Canberra to the Project. Attracting investment from such highly-regarded companies supports the ACT Government’s vision to boost our local economy and build a modern, dynamic city with a strong urban core.

There is significant ongoing work to ensure that the procurement process delivers value for money, best practice probity principles and requirements, and that key light rail objectives are delivered with minimum risk to the Territory.


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Commencement of the procurement process for the light rail service, including issuance to market and evaluation of a request for expressions of interest and, if appropriate, issuance to market of a request for proposals.

The invitation for EOIs for the Project was issued in October 2014 and bids were received from four consortia. An assessment process shortlisted this to two consortia in March 2015. The Request for Proposals (RFP) documentation was issued in April 2015, with the evaluation of proposals expected to commence in the first half of the next reporting period.

Pro-actively providing support to Government in the identification and prioritisation of urban revitalisation options along the light rail corridor.

The CMA has pro-actively supported the Government’s urban revitalisation program. The introduction of light rail to the city’s transport infrastructure will fundamentally change the way that the city grows and Canberrans live.

Capital Metro is a project that has the potential to transform the city and will be a catalyst for the Territory’s urban renewal plans. Capital Metro is learning from lessons across the world to encourage the delivery of high quality urban design in our urban renewal plans.

Engagement across Government in its light rail master planning activities and in developing an appropriate strategy for the integration of light rail with other transport modes within the Territory.

Through the Project Board, the CMA has actively promoted and championed discussion and planning for the light rail network and its integration with other transport modes within the Territory.

The Environment and Planning Directorate (EPD) is preparing a city-wide vision and strategy for growing Canberra around a strong public transport network with light rail at its spine, to support our city becoming more prosperous, sustainable and compact.

The strategy will consider how all of Canberra’s transport modes can best be integrated to create an efficient and effective transport system, including walking, cycling, buses, light rail, taxis and private vehicles.

The CMA will engage a range of business and corporate strategies to achieve its goals and priorities in 2014-15 that include:

active community engagement and communications regarding the status of the light rail project;

maintaining a strong focus upon desired safety and customer service outcomes from the light rail project;

active management of the receipt of advisory services;

identifying, monitoring and managing risks associated with the complex delivery of the light rail network;

The CMA takes a strategic approach to the management of its key priorities and responsibilities. Actions and outcomes are linked to higher level priorities and are actively monitored.

A corporate governance framework sets out roles and structures to deliver project outcomes, as well as maintaining our Directorate accountabilities. A focus on our responsibilities as an ACT Government Directorate is uniquely linked to the need for optimal project outcomes.

A Project Board, with membership comprising two independent experts, including the Chair, and six Directors-General ensures the balance between government accountability and excellent project delivery is maintained.

The CMA comprises a comprehensive mix of public and private sector skills and resources, a mix that is required to deliver a project that maximises value whilst minimising the risks to the Territory.



ongoing and close collaboration with Government and community stakeholders;

demonstrating our commitment to the ACTPS values of respect, collaboration, innovation and integrity through effective leadership and investment in our people and fostering positive workplace culture;

adherence to CMA governance and accountability frameworks; and

continued focus upon desirable social and environmental outcomes form the light rail project.

The Project has registered for an Infrastructure Sustainability Rating through the Infrastructure Sustainability Council of Australia. The rating scores projects across: management and governance; using resources; emissions, pollution and waste; ecology; people and place; and innovation.

The CMA has used the rating tool as a framework to guide the Project’s approach to sustainability and identified project requirements across all these areas to ensure that the project design can deliver environmental benefits to the Territory.

The successful bidder will need to achieve a certified Infrastructure Sustainability Rating for the Project to quantify and benchmark the sustainability achievements of the Capital Metro project.

The CMA is committed to engaging with the community in relation to the development of light rail. During the reporting period, the CMA has actively sought out feedback on what matters most to the community and has incorporated this feedback into the urban design of the light rail corridor.

To support that work, the CMA will continue a program of strategic engagement of key advisors, particularly for those aspects of the project that are new to the Territory, for example the investigation of innovative and prudent operating parameters and design considerations for the light rail service, and the specialist commercial and legal experience required to prosecute the delivery strategy.

The CMA has used a strategic engagement framework to source and procure specialist services to support the development of the Project. A specialist advisory panel was established in 2014 to allow the CMA to quickly access the services it requires. 31 providers currently sit on the panel.

Companies and individuals with a high level of experience and expertise in the development of light rail and other infrastructure projects in other jurisdictions have been actively sought to ensure a best practice approach to the Project.

The CMA will adopt and best practice project management and probity principles in its dealings. Specialist probity advice will also be sought, where prudent to do so, for particular elements or stages of the project from time to time.

A specialist external probity advisor has been engaged to assist with the development of probity processes and to monitor all interactions with bidders. The advisor sits in on meetings of the Project Board, all interactive workshops with the respondents during the request for proposal process, and has provided regular advice to team members on a range of probity issues.


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AGENCY OUTLOOKThe year ahead will be extremely exciting as the focus shifts towards building Canberra’s first light rail network between Gungahlin and the City. The Stage 1 Capital Metro route will connect the City to the fast growing area of Gungahlin via a 12km route following Northbourne Avenue, the Federal Highway, Flemington Road and Hibberson Street. The first stage of the light rail network will help to create a more connected and sustainable city and is the biggest transport infrastructure project ever undertaken in Canberra. It will help realise the Government’s vision of a truly sustainable city by providing an environmentally friendly public transport option.

In order to achieve this vision and meet this major milestone, a number of actions have already been completed to date.

The first quarter of the next reporting period will see the draft Environmental Impact Statement (EIS) released for public comment. The purpose of the EIS is to communicate the potential impacts of the Project; identify, manage and understand issues and concerns raised by those on the corridor, as well as discuss measures to minimise project impacts. Engagement with businesses and residents along the route will take place, along with a range of other consultative measures. Also within the first quarter of the new reporting period, the EIS Addendum Report will be submitted which will coincide with the lodgement of a Development Application (DA) to the Environment and Planning Directorate (EPD). The DA is a crucial element of the planning process and will allow the preferred bidder to undertake construction work on Territory land.

During this period, we will also see the two shortlisted consortia submit their proposals for the Stage 1 Gungahlin to the City route and for the optional extension to Russell. Evaluation of the proposals will then begin and continue for the second quarter of the reporting year. Selection of a preferred tenderer will be announced in the third quarter of the reporting period.

Once the preferred tenderer is announced, the contract negotiation phase begins, with financial close expected

late in the third quarter of the next reporting period. When financial close has been reached, early works on the Stage 1 Gungahlin to Civic route can commence.

Early in the next reporting period, the CMA will continue work on a comprehensive workforce forecasting and transition plan which will guide the Directorate from the procurement phase of the Project into the delivery phase. This significant body of work will then be implemented throughout the remainder of the year.

The CMA will also continue its commitment to communicating and engaging with the community and key stakeholders. Initiatives, such as the establishment of the Place Manager Program and the creation of the business and community reference groups, will further enhance the opportunities for the community to participate and provide feedback about the Project.

In addition to these key initiatives, the CMA will continue to work with local businesses through the Local Industry Participation Policy, present at conferences, seminars and forums, provide support and education programs through local schools, as well as host and participate in local community events such as the Parties at the Shops program.

The year ahead promises to be another busy one for the CMA team, but we look forward to the challenges and the exciting times ahead as we build the first stage of Canberra’s light rail network.

INTERNAL ACCOUNTABILITYThe CMA was created by the Administrative Arrangements 2013 (No 1) with effect from 1 July 2013.

Remuneration for Senior Executives

In accordance with the Remuneration Tribunal Act 1995, the Remuneration Tribunal establishes and renews the remuneration of senior executive officer positions and part-time statutory authority positions.


Senior Executive

As at 30 June 2015, the CMA had the following Executive positions:

Project Director (Director-General): Emma Thomas

Reporting to the Project Board and Minister, the Project Director is responsible for:

• contributing, through the delivery of the Capital Metro project, to realising the Government’s vision for a sustainable transport system as outlined in the Transport Canberra Policy 2012;

• the successful mobilisation and ongoing management of a multi-disciplinary project team with the experience, skills and motivation required to plan and deliver a major project of this scale, and ensuring that all team members make valuable contributions to the Project, and achieve their potential and personal satisfaction from their participation in the Project;

• progressively refining the business case for the Project that accurately captures and monetises the Project’s costs and economic, social and environmental benefits;

• achievement of the Government’s tight timeframes for this Project, specifically the commencement of construction in 2016 and the planning for, and the procurement of, associated delivery contracts; and

• the continuous improvement of the Government’s project management and procurement capability through promoting a motivated culture and through the communication of “lessons learned”, including seeking opportunities to apply innovation to procurement, contracting and construction processes.

Emma Thomas joined the CMA in October 2013.

Executive Director Governance and Operations: Anita Hargreaves

Reporting to the CMA Project Director, the Executive Director is responsible for:

• providing secretariat support to the Project Board, and effective liaison between the agency, the Project Board, the Minister and Cabinet;

• providing advice and direction on complex project and agency related governance, operational, risk management, and financial matters;

• leading the communications and stakeholder engagement team in the provision of high quality and responsive public information for the Project;

• working co-operatively with individual agencies in the development of key policies, programs, and communications to ensure effective and sustainable implementation of the Project and associated Government Priorities; and

• contributing to the development of a whole of government capability in delivering major infrastructure in the Territory.

Anita Hargreaves joined the team in February 2015.

Executive Director Commercial: Duncan Edghill

Reporting to the CMA Project Director, the Executive Director leads the Commercial Division and is responsible for:

• providing economic advice and direction on complex project related commercial and financial matters;

• developing options for the commercial and financial arrangements by which the Project can be procured and delivered, including the appropriate engagement with private sector partners;

• oversight of risk management and control processes within the CMA;

• contributing to the development of procurement documentation and processes for the Project; and

• contributing to the development of a whole of government capacity in the analysis and implementation of private sector partnerships in delivering major infrastructure in the Territory.

Duncan Edghill joined the CMA in April 2014.


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Executive Director Procurement and Delivery: Stephen Allday

Reporting to the CMA Project Director, the Executive Director leads the Procurement and Delivery Division and is responsible for:

• providing advice and direction on complex project related procurement, design, planning and contract management matters;

• working closely with Shared Services Procurement, and the ACT Government Solicitor’s Office, developing options for establishing and overseeing the financial and related contract arrangements by which the Project can be procured and delivered, including the appropriate engagement with private sector partners;

• contributing to the development of a whole of government capacity in the analysis and implementation of complex procurement arrangements, including private sector partnerships, in delivering major infrastructure in the Territory;

• stewardship of the various project elements through the requisite planning and related approvals processes; and

• technical advice and support to private sector partners.

Stephen Allday joined the CMA in March 2014.

Director Customer Experience and Operations: Katrina Giudice

Reporting to the CMA Project Director, the Director provides leadership on network integration and operations design as well as ensuring operational and customer requirements are central to all decisions in the Project. The Director is responsible for:

• ensuring customer needs are central to the design, planning, procurement and delivery processes of the Project;

• providing operational advice and direction on all significant Project design, planning, procurement and delivery aspects;

• ensuring CMA has access to leading Australian Light Rail operational experience;

• ensuring the development of a Concept of Operations including key performance indicators for both standard and non-standard operations;

• ensuring CMA plays a lead role in policy development for public transport in the ACT;

• leading and ensuring effective integration with the cycling, pedestrian, and road transport network;

• leading and ensuring effective integration with the public transport network including ticketing, service levels and timetabling, passenger information systems and marketing;

• ensuring an appropriate regulatory, safety and accreditation regime is in place for light rail operations in the ACT; and

• ensuring effective governance and management arrangements are in place to oversee the operation of the new light rail system.

Katrina Giudice joined the CMA in November 2014.

Director Communications and Stakeholder Engagement: Melanie Taylor

Reporting to the Executive Director Governance and Operations, the Director leads the Communications and Stakeholder Engagement Branch and is responsible for:

• updating and enhancing a comprehensive and resilient communications and engagement strategy for the Project;

• leading the production of detailed issues and events briefs, reports, plans, speaking notes and responses to ministerial correspondence as frequently required for government and Ministerial business;

• leading the day to day marketing, communications and media engagement activity, in close consultation with the Minister’s Office and the Project Director;

• planning for and delivering positive local industry participation outcomes;

• providing communications support to the Project Board, and supporting effective communication


between the agency, and the Minister’s Office communications team;

• working co-operatively with individual agencies to ensure effective and agreed communication of Capital Metro activities in line with wider government priorities;

• planning and delivery of meaningful engagement activities, including management of sensitive issues and conversations;

• leading the composition of and evaluation against project communications and engagement requirements as detailed in tender documentation;

• contributing to a successful transition from project planning to construction through positive and proactive community and stakeholder engagement; and

• contributing to the overall management of the CMA as part of the Directorate management team.

Melanie Taylor joined the CMA in March 2015.

Director Governance and Operations: Nikki Pulford

Reporting to the Executive Director Governance and Operations, the Director leads the Governance and Operations Branch and provides executive leadership on Governance for the CMA, and the development and prosecution of agreed corporate governance strategies. The Director is responsible for:

• providing effective liaison between the agency, the Board, the Minister and Cabinet including management of the Departmental Liaison Officer in the Minister’s Office;

• providing strategic support and management of secretarial support for the Project Board;

• managing corporate reporting for the CMA as well as statutory reporting at a Whole of Government level;

• managing the governance transition to a Public Private Partnership arrangement;

• providing strategic policy advice and review; • managing Assembly Business including Question

Time Briefs, Questions on Notice, Speeches, Matters of Public Importance, Motions and Legislative Amendments;

• coordinating the CMA’s preparation and attendance at Estimates, Annual Report and other Committee hearings;

• managing the production of Cabinet Submissions and Cabinet Information Papers including comments on other Directorate’s Submissions on behalf of the CMA; and

• preparation and publication of Annual Report and other Agency documents.

Nikki Pulford was appointed the Interim Director of Governance and Operations for the CMA in December 2014, having commenced with the CMA in June 2013 as the Senior Manager, Governance and Operations.

Director Planning and Design: Stephen Anderson

Reporting to the Executive Director Procurement and Delivery, the Director leads the Planning and Design Branch within the Procurement and Delivery Division and is responsible for:

• managing the design and planning elements of the Capital Metro Project Plan;

• providing advice and direction on complex project related design, planning and approvals matters;

• working closely with the relevant consenting authorities, developing options for establishing and overseeing the planning and related approvals process;

• ensuring change management processes are conducted in respect of design and planning activities;

• identifying, reporting and mitigating risks associated with the design and planning aspects of the Project; and

• assisting in the development of procurement documentation and in the conduct of procurement processes.

Stephen Anderson joined the CMA in February 2015.


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Director Project Controls: Brendan McAvoy

Reporting to the Executive Director Commercial, the Director is responsible for the centralised and independent oversight of risk, change and program matters within the Agency. Functions of this role include:

• providing assurance to the Agency’s Executive, Project Director and Project Board that risk, change and program matters are being effectively managed within the Agency;

• managing and providing guidance to advisors and / or staff involved in the management of project controls;

• providing independent internal sign-off of risk, change and program matters;

• liaising across the Agency and within ACT Government on project risk and program matters;

• escalating risk, change and program matters within the Agency’s governance framework;

• continuous assessment and frequent monitoring of the Project’s master project program, together with risk and change registers;

• ensuring robust risk mitigation plans have been developed and are being followed;

• reporting against risk, change and program matters; and

• leading all other day to day aspects of risk, change and program control management within the Agency.

Brendan McAvoy joined the CMA in March 2015.

Capital Metro Project Board

The Project Board meets once monthly and is provided with secretariat services by staff within the CMA’s Governance and Operations Branch. The Secretariat acts as the liaison for requests for assistance from Project Board members.

The Project Board is an advisory board that is governed by the Capital Metro Project Board Charter.

The Project Board focuses on strategic decision

making, drawing principally on recommendations tabled by the Project Director. The Project Board’s focus is high-level strategic decisions. Project Board membership is composed of decision makers only.

Sparke Helmore was engaged in September 2014 as the probity advisor for the Project. A representative from Sparke Helmore is in attendance at each Project Board meeting to provide advice on strategic probity advice.

The following table identifies the current Project Board members (as at 30 June 2015):

Individual

Chair

John Fitzgerald, Independent Chair

Deputy Chair, Project Owner

Under Treasurer – Mr David Nicol

Senior Supplier

Director-General Economic Development – Mr David Dawes (Chief Minister, Treasury and Economic Development Directorate (CMTEDD))

Senior User Director-General Justice and Community Safety Directorate – Ms Alison Playford

Senior User

Director-General Environment and Planning Directorate – Ms Dorte Ekelund

Senior User

Director-General Community Services Directorate – Ms Natalie Howson

Senior User

Director-General Territory and Municipal Services Directorate – Mr Gary Byles

Independent Member

Michael Kerry


Project Owner

The Project Owner is accountable for the success of the Project. ‘Success’ for the Project Owner is the delivery of a transport asset that meets the service delivery requirements (defined in the Full Business Case).

The Under Treasurer represents the ACT Government as the Project Owner and provides financial and economic direction on behalf of the ACT Government.

Senior Supplier

At the end of the reporting period, there was one Senior Supplier on the Project Board, being the Director-General of Economic Development within CMTEDD.

The Senior Supplier helps to balance the Project Board by representing those who supply services or assets to build the infrastructure itself: project developers, designers, suppliers of land, builders and procurers. Their role is to ensure the assets or products the Project delivers meet the needs of the Project Owner and the Senior Users; i.e. the user requirements.

Senior User

At the end of the reporting period, there were four Senior Users on the Project Board, being the:

• Director-General for the Justice and Community Safety Directorate;

• Director-General for the Environment and Planning Directorate;

• Director-General for the Community Services Directorate; and

• Director-General for the Territory and Municipal Services Directorate;

Senior Users represent those who will use the final product. This usage may comprise direct usage (i.e. passengers) or indirect usage such as network operations where the asset forms part of a network.


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Significant CMA Committees

Name of Committee Role of Committee

Capital Metro Sub-Committee of Cabinet

To make the investment decisions on the Project by approving major key decisions including the Project’s Final Full Business Case.

The Capital Metro Sub-Committee of Cabinet:

• settles major policy and service issues associated with the Project;

• approves the ‘Project Plan’ for the timing and sequencing of work and receives regular progress updates;

• approves and receives regular updates on the assurance arrangements for the Project, including:

▷ risk management and mitigation;

▷ evaluation;

▷ auditing;

▷ quality control; and

▷ value for money.

• approves major procurement and contractual arrangements;

• will approve the financial structure and fiscal strategy for the delivery of the Project; and

• will continue to provide direction to the CMA.

Audit Committee To oversee the CMA’s governance framework (risk, compliance, external accountability and the internal control environment) on behalf of the CMA Director-General.

The key responsibilities of the CMA Audit Committee are to:

• provide oversight of the internal audit function;

• oversee the risk management framework and processes including the CMA Fraud and Corruption Prevention Plan;

• oversee the legislative, regulatory and ethical compliance management framework;

• evaluate the processes in place for assessing and continuously improving compliance and internal controls, particularly those related to areas of significant risk; and

• review, with management, the annual financial statements presented to the governing body including the acceptability of, and correct accounting treatment for, disclosure of significant accounting transactions which are not part of the Agency’s normal course of business (external auditing responsibilities).

Corporate Governance Committee

To support the CMA Director-General’s ability to implement, maintain and report on corporate governance for the CMA.

Rather than having multiple committees the CMA has established one committee to consolidate activities that would normally be spread across multiple committees such as a Directorate Consultative Committee, Work Health and Safety Committee or Corporate Governance and Resources Committee.


Name of Committee Role of Committee

Risk Management and Change Control Committee

To ensure that a common understanding of Capital Metro project risks is maintained by all Agency personnel and all relevant stakeholders at all times through adherence to the Agency’s Risk Management Procedures.

The Committee shall:

• Actively monitor a contemporary Risk Register of the CMA and the Project;

• Review and monitor progress on key project risks via analysis of Top Risk Management Plans;

• Endorse the issue of a revised Risk Register, including:

• Pending emerging risks identified via Risk Notification Forms;

• Non-approved risks identified via Risk Notification Forms;

• Changes to existing risks affecting the overall risk profile as held in the working Risk Register;

• Liaise with the Capital Metro Change Committee to ensure all change decisions are included risk analysis as appropriate;

• Report to the Audit Committee as it deems appropriate, via the relevant CMA officer, on the work of the Committee and provide suggestions on areas of risk that may benefit from internal audit, or examination by the Audit Committee;

• Provide regular reports to the Project Director and Executive on actions undertaken by the Committee; and

• Make recommendations to the Director Project Controls, Executive Director Finance and Economics, Project Director and / or Executive on Risk matters as it determines in its sole discretion.

Further information may be obtained from the Governance and Operations Branch by contacting (02) 6205 6780.


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CMA HIGHLIGHTS DURING THE REPORTING PERIOD:

June

Early Design Consultation

The Early Design consultation program was conducted to ensure that the CMA delivers a light rail network that meets the needs of its users. The consultation period ran from 30 June to 10 August 2014 and was a great success with over 16,500 interactions with the local community and stakeholders using a range of consultative methods.

September

Gungahlin Community Council Light Rail Engagement Activity

On 8 September 2014, the CMA and the Gungahlin Community Council organised the Gungahlin Light Rail Enquiry by Design event.

The purpose of the event was to engage the community in Gungahlin to draw out ideas, perspectives, and opportunities in the urban design of Gungahlin and to support the effective and integrated implementation of the light rail. Participants included Gungahlin business owners, residents, representatives from community groups, educators, developers, and builders.

Industry Briefing Event

On 15 September 2014, following on from a number of design phases and extensive community consultation, the CMA presented a successful industry briefing where Minister Corbell announced approval for the Project to move into the procurement phase. 373 people from 257 national and international companies attended the briefing. The industry briefing allowed the Government to promote the Project in order to achieve a higher degree of market interest and encourage competition. The briefing also provided a networking opportunity for interested companies.

Gallery of Australian Design Travel Light Exhibition

The CMA sponsored the inaugural Travel Light exhibition at the Gallery of Australian Design’s (GAD) new premises on Jardine Street, Kingston. The exhibition ran from 25 September to 30 October 2015 and provided a visual demonstration of the city transformational aspects of light rail and its ability to integrate with communities and the urban landscape. The GAD is a not-for-profit organisation that explores and promotes Australian design through exhibitions and events.

October

Release of the Capital Metro Business Case

The Business Case was released to the public on 31 October 2014. The Capital Metro Business Case was approved by government in September 2014, allowing the CMA to proceed with the Project to procurement as a Public Private Partnership.

Release of Invitations for Expressions of Interest

The invitation for EOIs opened on 31 October 2014. The EOI required consortia to demonstrate their capability in meeting five core criteria: successfully delivering comparable projects; ability to manage safety issues; demonstrated understanding of commercial and risk management matters; strong financial capacity; and meeting and understanding the aspirations of the Project. Four consortia submitted an EOI and, following assessment by the CMA, were shortlisted to two.

November

Visit by Gehl Architects

On 12 November 2014, Henriette Vamberg, Partner at Gehl Architects of Copenhagen, visited Canberra as part of her company’s involvement with a number of transformational projects for various council groups in New South Wales. The CMA invited Ms Vamberg to visit Canberra to share her knowledge and experiences at a public seminar. This included


a series of meetings with key stakeholders along the proposed alignment to provide her expert perspective on the opportunities and challenges that light rail can bring.

January

Urban Design Community Consultation

The CMA ran the Urban Design community consultation from 21 January to 15 February 2015. The Canberra community and stakeholders were invited to have their say on a number of urban design elements for the corridor including landscaping, stop design, walking and cycling options, and the overall design vision. The consultation resulted in more than 13,000 interactions, and feedback from the community was incorporated into the design guidelines provided to the shortlisted consortia.

February

Announcement of the Russell Extension

In February 2015, Minister Corbell announced that the shortlisted consortia would be asked to include an option in their proposals for extension from the City to Russell. This announcement was in response to strong support from the community and local business, and as a commitment to a long term city-wide light rail network.

The Russell extension proposals will be considered for viability as part of the Project evaluation in late 2015 for decision by the Government in early 2016.

March

Announcement of Shortlisted Consortia

On 18 March 2015, Minister Corbell announced that two consortia had been shortlisted to progress to the RFP stage before a successful tenderer is selected in 2016 to deliver the first-stage of Capital Metro.

April

Meet the Bidders

The Meet the Bidders networking event was held on 9 April 2015. The event gave businesses from the Canberra region the opportunity to meet members of the two shortlisted bidders to understand possibilities for their involvement and benefits of the light rail project.

Release of the Request for Proposals

The RFP was released to the two shortlisted consortia in April 2015. A series of Interactive Workshops were held with both consortia from late April 2015, and will continue until when proposals will be due for submission.

Young Designers Ideas Schools Competition

Over two days in April 2015, more than 100 year 9 and 10 students participated in this CMA sponsored competition run by the Australian Institute of Architects. The competition provided a forum for young creative thinkers to work together in teams and generate design ideas for Canberra’s light rail of the future in a dynamic and collaborative process. The competition also enabled the CMA to connect with young stakeholders.

Lyneham High School won the ‘Best station and rail stop design’ and ‘Most innovative idea’ categories. Telopea Park School won the ‘Best connection to local facilities’ category.

CMA Involvement in Community Events

Participation at Local Events

The CMA was involved in a number of third party and ACT Government organised events, which allowed us to reach a larger representation of the community. Events included the Party at the Shops program, the Malkara Model Railway Exhibition, the Bunda Street Shareway events and Celebrate Gungahlin. The CMA will continue to be represented at similar events in the next reporting period.


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SUB-SECTION B.2 - PERFORMANCE ANALYSISIn the reporting period, the CMA worked towards delivering key strategic objectives identified in the 2014-15 Budget Papers to manage all aspects of the ongoing planning, design and delivery of the first stage of a light rail network in the Territory. This was done in a manner which ensured comprehensive coordination and integration of transport, land use and development, social, economic and environmental outcomes.

The strategic priorities for 2014-2015 included:

STRATEGIC OBJECTIVE 1Supporting Government decision making for investment in light rail and its integration with the broader public, active and private transport systems in the Territory.

Preliminary investigations into the design, procurement and delivery of a light rail service from the City to Gungahlin will play a large part in the future development of an integrated public transport system. This is important to achieving the Government’s Transport for Canberra and sustainability policy objectives.

STRATEGIC INDICATOR 1:Timely provision of reports on studies in accordance with an agreed work program and agreed reporting requirements.

In the 2014-15 Budget, the CMA committed to present to the Government a proposed work plan setting out the nature, number and timing of activity relating to preliminary design, a delivery strategy and preparatory works.

During the reporting period the CMA provided Government with a Project Plan which reflects the Project’s transition from the design phase to the delivery phase and confirms the timing and activities the CMA is required to undertake to meet its commitment of designing, procuring and delivering a light rail service linking Gungahlin to the City. The CMA has, to date, met the key milestones outlined in the Project Plan.


STRATEGIC OBJECTIVE 2Secure industry engagement for delivery and operation of the Capital Metro light rail project

Significant community and industry interest is building in the delivery and operation of the Project. As the preferred procurement methodology and design parameters become more settled, market engagement will be critical to the procurement and delivery of the light rail service from Gungahlin to the City.

STRATEGIC INDICATOR 2: Positive market response to briefing sessions and calls for expressions of interest.

In the 2014-15 Budget the CMA committed to present an industry briefing program and to release a call for expressions of interest in delivering and operating the Capital Metro service.

The Capital Metro Local Industry Participation Policy, outlines the Agency’s approach to local industry participation during each stage of the Project. An industry briefing event was held in September 2014 to provide an update to the market, information on the Project, and preview the forward timetable. Key features of the briefing included a question and answer session and an update on thinking around: desired urban design outcomes; desired customer outcome; technical design operations environment; possible procurement steps; and future local industry participation.

The Capital Metro industry briefing was well attended and very well received by the market. Over 370 representatives from 257 organisations worldwide attended across all industries involved in light rail infrastructure, operations and financing. There was also representation from the ACT Government and community organisations. Industry participants were unanimous in complimenting the ACT Government for the commitment, professionalism and detail provided in the briefing, with positive acknowledgement of the animated ‘fly through’ of the route from Gungahlin to the City.

On 31 October 2014, the CMA issued the invitation for EOIs to the market. Following a strong industry response, four consortia submitted EOIs for the Project, each comprising local, national, and international companies. The EOIs were evaluated on the basis of their experience in successfully delivering comparable projects, ability to manage safety issues, demonstrated understanding of commercial and risk management matters, strong financial capacity, as well as meeting and understanding the aspirations of the project. Following this detailed evaluation two consortia were shortlisted to progress to the RFP stage of the procurement process, which was released in April 2015.


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OUTPUT 1.1: LIGHT RAIL NETWORK STAGE 1The CMA’s role is to deliver key Government policy and project initiatives, while also providing strategic advice to the Minister for Capital Metro. In particular, the CMA’s role is the planning, procurement and delivery of a light rail service between the City and Gungahlin.

During the reporting period, the CMA:

• provided a project briefing to industry representatives in September 2014, an important step in the procurement process which allowed the Government to promote the Project and achieve a higher degree of market interest and encourage competition;

• released an invitation for EOIs for the Project in October 2014 which resulted in the shortlisting of two respondents invited to submit bids in the second stage of the tender process; and

• commenced a variety of preparatory and enabling works for the Project. For example, geotechnical, survey and other investigation works; underground and overhead utilities survey and associated investigation works; and a detailed tree survey has been completed documenting the species, size, health and expected longevity of each tree along the Capital Metro alignment.



SUB-SECTION B.3 - SCRUTINYDuring the reporting period, the CMA reviewed and responded to reports as summarised below.

Report on Annual and Financial Reports 2013-14

Recommendation Action Status

The Committee recommends that the ACT Government ensure that the 2015–16 Budget papers provide further detail on costs or phasing of costs for the Capital Metro project for 2015–16 and across the forward estimates.

Agreed. All expenses relating to the procurement and management of the Capital Metro project will appear in the 2015–16 Budget Papers.

Complete. Expenses relating to the procurement and management of the Capital Metro project appear in the 2015–16 Budget Papers.

The Committee recommends that the ACT Government inform the ACT Legislative Assembly as to measures it has taken to engage with Icon Water and ActewAGL regarding respective utility services to which each are responsible—to determine the full impact the Capital Metro project will have on the supply and security of these services during and after construction.

Agreed. The Capital Metro Utilities Project Team has been established with representatives from all relevant utility providers including ActewAGL and Icon Water.

One of the roles of the Capital Metro Utilities Project Team is to provide an interface between the Utility Company / Stakeholders and the Capital Metro project, obtain initial approval on the type of utility treatment (i.e. relocate / protect / abandon), and develop an understanding of the utilities risk and the best way to transfer or manage that risk.

In progress. The CMA, through its interaction with the utility companies (including Icon Water and ActewAGL), identified the utility asset clashes that exist within the light rail alignment. These were then categorised as those that would require relocation, those that could remain but require protection, and those that could remain without any treatment.

Each utility asset has been categorised (as described above) and an indicative cost and implementation program for each has been agreed to between the CMA and relevant utility companies.

This information has been provided to the two shortlisted respondents. It is the responsibility of the respondents to engage further with each of the Utility Companies.


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The Committee recommends that the ACT Government inform the ACT Legislative Assembly as to what work has taken place to assess the cost of managing changed traffic arrangements—during construction and operation—due to the Capital Metro project.

Noted. Capital Metro has worked closely with the Territory and Municipal Services Directorate to produce an agreed road occupancy schedule which identifies the principles by which the successful respondent will be able to undertake road works during construction. These principles are designed to minimise traffic disruption.

The road occupation schedule also details any fees or fines that may be due should the successful respondent over-run (and thus cause increased traffic impacts) on specific intersections and/or locations.

It is anticipated that all costs associated with managing traffic arrangements will be borne by the successful respondent.

The stated actions have been completed and agreement reached with TAMS in respect to traffic management.

This information has been provided to the two shortlisted respondents in order for them to indicate in their proposals how they intend to comply with the requirements and, in particular how the traffic management conditions have been incorporated into their construction methodology.


Appropriation Bill 2015-2016 and Appropriation (Office of the Legislative Assembly) Bill 2015-2016


The Committee recommends that the ACT Government include appropriate standard termination/withdrawal clauses in all contracts for the provision of Capital Metro.

Noted. The ACT Government intends to include appropriate standard termination provisions in the Capital Metro Project Agreement.

In progress. The project will not enter into project agreements until early 2016.

The Committee recommends that the ACT Government reconsider the decision to use Eucalyptus mannifera as the replacement tree on Northbourne Avenue.

Not Agreed. Detailed studies were carried out, by both Territory and independent arborists, into suitable tree species to be grown on Northbourne Avenue as a replacement upon the removal of the existing trees. The National Capital Authority advised of a preference for native trees to be utilised; this was further confirmed by the community feedback received through the consultation exercises carried out by the CMA.

Soil samples were taken and analysed to ensure that the most appropriate species of native tree was recommended to shortlisted bidders.

The above activities resulted in the recommendation of the Eucalyptus mannifera to be grown on Northbourne Avenue as a replacement for the existing trees.

Complete. Based on specialist advice, the CMA has chosen Eucalyptus mannifera as the preferred species for the Northbourne Avenue corridor.

The Committee recommends that the ACT Government undertake a staged approach to tree replacement on Northbourne Avenue.

Noted. The ACT Government, through the auspices of the CMA Request for Proposals process, has asked that the two shortlisted bidders identify costs for an optional approach to undertake a staged removal and replacement of the trees on Northbourne Avenue.

As part of the evaluation of the two proposals, the CMA will assess both the cost and program impact of a staged approach to tree removal and replacement.

In progress. Evaluation of the proposals commences in September 2015.



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SUB-SECTION B.4 - RISK MANAGEMENT

GENERALThere is a broad range of risk management procedures used within the CMA which guides various management practices. These include Government-wide processes, such as those relating to financial reporting, and CMA-specific processes.

The CMA’s governance structure includes a Project Board with an independent Chair which oversees the Capital Metro project and advises the Capital Metro Sub-Committee of Cabinet. The Project Board undertakes an important role in ultimately overseeing risk management responsibilities.

The CMA’s risk management processes are now established across the agency with the procedures and templates reviewed regularly for potential enhancements. CMA’s risk management procedures and risk register have regard to both Directorate-level and project-level risks.

CMA RISK MANAGEMENT 2014-15During the reporting period a Project Controls group was established within the CMA, including the appointment of a Director, Project Controls to oversee the governance of risk, change, issues and schedule management. These key project functions are intrinsically linked and one group overseeing these functions provides benefits around transparency of risks from various sources.

The CMA established a Risk and Change Control Committee consisting of CMA Executives and members from other ACT Government Directorates (TAMS and CMTEDD). The role of this committee is to review all project risks prior to their inclusion into the project risk register and to discuss the effectiveness of current risk mitigation strategies.

As with other Directorates, responsibility for risk management within the CMA ultimately rests with

the CMA Director-General. The Director-General is supported in this responsibility through:

• CMA’s executive and staffing team: All CMA staff, to varying degrees, fulfil risk management tasks. During the reporting period, risk management controls were overseen by CMA’s Executive Director Commercial and later by the Director Project Controls within CMA;

• CMA’s advisors: During the reporting period, the CMA received risk management advice from risk management advisors and other advisors;

• CMA’s governance structure: The governance structure includes a Project Board with an independent Chair that oversees the Project and advises the Capital Metro Sub-Committee of Cabinet. The Project Board undertakes a substantial role in ultimately overseeing risk management responsibilities;

• CMA Project risks: Risk procedures, in line with AS/NZ ISO31000:2009, provide the basis for establishing an individual risk rating based on the likelihood and consequence of each risk. The risk consequence is assessed against various criteria including safety, cost, time, performance, reputation and environmental impacts to ensure that appropriate mitigations can be implemented; and

• other risk management resources applied throughout ACT Government: For example, under the ACT Government’s risk management policy, the ACT Insurance Authority (ACTIA) assists the CMA on insurance implementation matters.


RISK MANAGEMENT POLICIES AND PROCEDURESIn addition to policies and procedures developed in the previous financial year, the following key policies and procedures were implemented during the 2014-15 reporting period to enhance the CMA’s governance and risk management:

• Risk Management and Change Control Committee Terms of Reference;

• Risk Management Procedures; • Top Risk Management Plan; • Risk Notification Form; • Audit Committee Charter and Internal Audit Plan; • Corporate Governance Committee Terms of

Reference; • Information Privacy Act 2014 Compliance

Guidelines and Policy; • Public Interest Disclosure Procedures; and • Document Control Policy.

RISK IDENTIFICATION 2014-15Broadly, CMA Directorate-level risks consist of Project risks and other risks associated with the operations of the Directorate. As the principal objective of the CMA is to manage all aspects of the Project, Project-specific risks comprise a large portion of the CMA’s overall risk profile.

Key risks identified by the CMA during the reporting period were associated with the:

• management of project planning approval applications to relevant Territory and Commonwealth authorities;

• management of utility company interactions in order to facilitate an efficient and timely project construction; and

• conduct of procurement activities in a manner which meets all procedural requirements and delivers value for money outcomes.



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SUB-SECTION B.5 - INTERNAL AUDITThe CMA Audit Committee reports to the Director- General on the Directorate’s governance framework including risk, compliance, external accountability and the internal control environment. The Audit Committee has begun development and implementation of a three-year strategic internal audit plan and a 12 month audit work plan.

An internal audit of financial management was completed in the reporting period. An internal audit of procurement will take place in September 2015.

Internal Audits of information management, human resource management, fraud and integrity, and risk management are planned for 2016.

As at 30 June 2015, the Audit Committee had four members.

During the reporting period the Audit Committee met three times covering topics including the financial statements, Audit Committee and Internal Audit Charters, risk management, the governance framework and review of internal audits.

Audit Committee membership and meeting attendance 2014-15

Name of Member Position Meetings attended

Will Laurie Independent Chair 3

Glenys Roper Independent member 3

Ken Moore Independent member 3

Jamie Driscoll Internal – Acting Executive Director, Governance & Operations

1

Geoffrey Rutledge Internal – Acting Executive Director, Governance & Operations

1

Anita Hargreaves Internal – Executive Director, Governance & Operations

1


SUB-SECTION B.6 - FRAUD PREVENTIONThe Senior Executive Responsible for Business Integrity Risk (SERBIR) manages the integrity and fraud control arrangements for the CMA. The CMA SERBIR is the Executive Director, Governance and Operations.

The SERBIR currently reports directly to the CMA Project Director (Director-General) on matters of fraud and integrity.

As required under the ACT Integrity Policy, the CMA has developed a Fraud and Corruption Prevention Plan.

The CMA Fraud and Corruption Prevention Plan 2014‑16 (the Plan) represents the CMA’s commitment to integrity and effective fraud management and control. The Plan was approved by the CMA Director-General in June 2014.

The Plan provides a framework to prevent incidents of fraud and corruption in the CMA. It describes the CMA’s fraud control principles and strategies, responsibilities, reporting and case handling obligations.

Risks identified in the Plan are addressed through the CMA’s Risk Management Framework and are reported to the CMA’s Risk Management and Change Control Committee.

The CMA Internal Audit Plan 2014‑16 includes audits of integrity risks designed to ensure that identified controls are working effectively.

The CMA has a process to ensure all allegations and incidences of fraud are captured and recorded in accordance with the ACT Integrity Policy. The information is monitored and reviewed annually to assist in targeting areas of concern. There have been no cases of potential fraud in the reporting period.



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SUB-SECTION B.7 - WORK HEALTH AND SAFETYThe CMA is committed to a culture where people are safe, engaged, passionate and valued for their skills. Safety culture is an important aspect of the overarching organisational culture. Work Health and Safety provides the foundation for all CMA activities, and is managed in accordance with the statutory provisions of the Work Health and Safety Act 2011 (the Act) and supported by the ACT Public Sector Workplace Health and Safety Policy Statement.

During the reporting period, the CMA was not issued (under Part 10 of the Act) with any improvement, prohibition, or non-disturbance notices, nor did the CMA fail to comply with any enforceable undertakings under Part 11 or Part 2 (Divisions 2.2, 2.3 and 2.4) of the Act.

In September 2014, the CMA finalised the Safety Management System Framework for the Project Procurement Phase of the Project. This document provides an overview of the Safety Management System (SMS), describing the processes that are in place in order to demonstrate effective safety management. The systems and processes within the SMS assist the CMA in demonstrating compliance with the requirements of relevant Rail Safety and Work Health and Safety legislation (Acts and Regulations), even though the CMA is not an accredited rail transport operator.

The CMA SMS Framework identifies CMA documentation and procedures that support safety management during the procurement phase of the Project, and applies to all of the CMA, including consultants, sub-consultants and embedded staff from other ACT Government Directorates or agencies.

The CMA Safety Policy for the Project Procurement Phase, endorsed in October 2014, confirms the Agency’s commitment to safety and embedding safety into the CMA’s core values, processes and decision making, so that it can provide light rail that operates safely, for customers, the workforce and the public.

WORKER CONSULTATION ARRANGEMENTSThe CMA has worked during the reporting period to establish the Terms of Reference for a Corporate Governance Committee (CGC) which will have, amongst other responsibilities, a focus on Work Health and Safety matters including:

• facilitating cooperation within the CMA by encouraging priority for workers’ health and safety and a sustainable work environment;

• assisting in developing standards, rules and procedures relating to health and safety that are to be followed or complied with at the workplace; and

• provision of advice regarding initiatives set by the WorkSafe Commissioner.

Nominations for a Work Health and Safety Representative will be called for early in the next reporting period, and training will be provided in order for the representative to participate at the quarterly CGC meetings.

ACCIDENT AND INCIDENT REPORTINGThe RiskMan system was implemented as the electronic incident reporting system across all ACT Government workplaces during the first half of the reporting year. The RiskMan system enables timely reporting, thereby prompting action to identify and manage risks and, as a consequence, support workers more effectively. A member of the CMA team attended a testing workshop in July 2014 prior to the Directorate transitioning to the RiskMan system.

During the reporting period, one Accident/Incident Report form was received and two accidents were logged through the RiskMan system. No incidents occurred that were required to be reported to the regulator in accordance with Part 3 Section 38 of the Act.


INJURY PREVENTION AND HEALTH AND WELLBEINGThe CMA continues to promote a safety culture which encompasses health and wellbeing. Safety culture is included as part of the CMA induction process and documented in the CMA Staff Induction Manual.

Safety communication is encouraged by weekly CMA staff Safety Talks, which were held throughout the reporting period. These designated all-staff meetings are generally chaired by team members on a rotational basis whereby they cover a topic of their choice relating to any type of safety or health and wellbeing issue.

To supplement the staff facilitated meetings, the CMA arranged Safety Talk presentations on the following topics during the reporting period:

• Let’s Talk Suicide Prevention Campaign – presented by ACT Health;

• Workstation Self-Assessment – presented by the Safety Support Team within the Chief Minister, Treasury and Economic Development Directorate (CMTEDD);

• Bullying and the RED Framework – presented by the Workforce Capability and Governance unit within CMTEDD; and

• Employee Assistance Program (EAP) – presented by OPTUM, the CMA’s EAP provider.

In addition, the CMA implemented a range of injury prevention and health and wellbeing initiatives, including:

• ‘Health and Wellbeing’ reimbursement initiative (not exceeding $100 per annum) to provide financial support and encouragement to employees to participate in health and wellbeing activities;

• ongoing provision of workstation assessments; • participation in events such as R U Ok? Day; and • influenza vaccinations offered to staff.



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SUB-SECTION B.8 - HUMAN RESOURCES MANAGEMENTThe CMA’s Corporate team, part of the Governance and Operations Branch, provides operational advice and Human Resources (HR) support to executives, managers and staff of the Directorate. The team performs a number of HR functions for the CMA and coordinates the provision of transactional support from the Shared Services division of CMTEDD. The team also facilitates the provision of strategic HR advice and support from the HR team within TAMS.

Attracting and retaining high performing employees is critical to ensuring that Directorate objectives are met. The workforce profile of the CMA consists of a highly integrated project team, and local and nationwide competition for qualified and experienced staff in some fields remains a challenge for the Directorate.

Towards the end of the reporting period, the CMA commenced work on a comprehensive workforce forecasting and transition plan which will guide the Directorate in moving from the procurement phase of the Project to the delivery phase. This significant body of work will be completed in the first quarter of the next reporting period and will be implemented throughout the remainder of the year.

Directorate representatives actively participated and engaged in various cross-agency forums including the People and Performance Council, HR Directors Forum, and the Respect Equity and Diversity Review Working Group.

ATTRACTION AND RETENTION INITIATIVES During the reporting period, no employees were transferred from Special Employment Arrangements (SEAs), nor were any Attraction and Retention Initiatives (ARins) entered into and terminated. At 30 June 2015, there were no CMA employees on an ARin, nor were there any ARins provided for privately plated vehicles.

STAFFING PROFILE

FTE and headcount by division/branch

Division/branch FTE Headcount

Project Director’s Office

7.0 7

Commercial Group 2.0 2

Communications 5.0 5

Planning , Design and Procurement

3 3

Governance & Operations

7.81 8

Total 24.81 25

FTE and headcount by gender

Female Male Total

Full Time Equivalent

17.81 7.0 24.81

Headcount 18 7 25.0

Percentage of workforce (based on headcount)

72% 28% 100%


Headcount by classification and gender

Classification groups Female Male Total

Administration Officers

9 0 9

Senior Officers 4 3 7

Executive Officers

5 4 9

TOTAL 18 7 25

Headcount by employment category and gender

Employment category Female Male Total

Casual 0 0 0

Permanent Full-time

12 3 15

Permanent Part-time

1 0 1

Temporary Full-time

5 4 9

Temporary Part-time

0 0 0

TOTAL 18 7 25

Headcount by diversity group

HeadcountPercentage of agency workforce

Aboriginal and Torres Strait Islander

0 0%

Culturally and Linguistically Diverse

2 8%

People with disability

0 0%

Headcount by age group and gender

Age Group Female Male Total

Under 25 1 0 1

25-34 5 1 6

35-44 7 4 11

45-54 5 0 5

55 and over 0 2 2

Total 18 7 25

Average length of service by gender (headcount)

Female Male Total

Average years of service

5.0 3.2 4.5

LEARNING AND DEVELOPMENT 2014-15The CMA participated in the Work Experience and Support Program (WESP) in the final quarter of the reporting period, providing one WESP participant with an eight week work placement within the Directorate’s Project Controls unit.

A participant in the 2015 ACTPS Graduate Program was placed with the CMA’s Planning and Design unit towards the end of the reporting period to complete their second rotation. The CMA worked cooperatively with the EPD to facilitate this opportunity.

CMA Induction Program

The CMA induction program is coordinated by the Governance and Operations Branch and was made available to all CMA staff including contractors and consultants.

The CMA Induction Program introduces new staff to important policies and practices observed by the


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CMA. It helps to clarify the responsibilities of new employees and explains the role of the Capital Metro project within the broader ACT Public Service.

The Induction Program includes an orientation of the CMA office and its surroundings.

Respect, Equity and Diversity Framework

In the reporting period, the CMA appointed a Respect, Equity and Diversity (RED) Executive sponsor for the CMA. The CMA’s Executive sponsor attended a meeting, conducted by CMTEDD, to provide feedback in relation to the RED Framework and how it can be invigorated in line with the findings of the Final Report on the review of the Respect, Equity and Diversity Framework.

Information sharing with other jurisdictions

Officers from the CMA met with representatives from light rail projects in other Australian jurisdictions. This enabled the CMA to learn valuable lessons from other project teams already in more advanced stages of their Projects.

Seminars and Conferences

During the reporting period, CMA staff were encouraged to attend seminars and conferences to enhance their professional and personal development. Some of the events attended include:

• The Political Dimensions of PPPs, presented by CEDA;

• Economic and Political Overview, presented by CEDA;

• She Leads Conference, presented by YWCA; • Women with Ambition, presented by EY;

• Young Professionals Network Breakfast, presented by IPAA;

• Rail Industry Networking Dinner; • Australian Transport Summit; and • Canberra Business Council Gala.

Internal and External training

During the reporting period, a number of staff attended a range of training and information sessions, including:

• Public Private Partnership workshop, run by CEDA; • Squiz Matrix Content Management System; • Marketing and Branding; • CEO Sphere Forums; • Financial modelling in Excel; • Effective speech writing; and • Graduate Certificate in Business (Public Sector

Management), delivered over 15 months.

Whole of Government Training Calendar

During the 2014-15 reporting period, CMA employees completed a range of training made available through the ACTPS Training Calendar at a total cost of $1,848.39. This included:

• Writing for Government; • Excel for Finance staff; and • Research, data collection and analysis.



SUB-SECTION B.9 - ECOLOGICALLY SUSTAINABLE DEVELOPMENT

AN ENVIRONMENTALLY FRIENDLY CAPITAL METRO AGENCYThe ACT has the most ambitious greenhouse gas emissions reduction targets of all Australian jurisdictions. The Climate Change and Greenhouse Gas Reduction Act 2010 formalised the ACT targets of zero net emissions (carbon neutrality) by 2060 and a 40 per cent reduction in greenhouse gas emissions from 1990 levels by 2020.

As part of its ongoing commitment to reducing ACT emissions, the Government aims to achieve carbon neutrality in its own operations by 2020. In April 2013, the Minister for the Environment and Sustainable Development released the Carbon Neutral Government Framework. This Framework coordinates a Whole-of-Government approach to achieving carbon neutrality in a cost effective manner.

During the Project Definition and Design Phase of the Project, the CMA’s work was primarily office-based. Activities were focussed on preparing a preliminary design of the light rail system and selection of an appropriate delivery methodology.

RESOURCE MANAGEMENT PLANThe CMA Resource Management Plan (RMP) provides a framework to consistently monitor and improve the environmental performance of the Agency. The RMP has been prepared as part of implementing the Carbon Neutral Government Framework.

The RMP also provides a guide to assist with staff education to increase awareness of the environmental impact of their everyday work activities. The RMP provides the framework for:

• resource efficiency targets and actions to be established;

• identifying methods of measuring environmental

performance; and • outlining reporting on sustainability

achievements.

The RMP will be reviewed during the next reporting period to ensure that it continues to be aligned with the Project as it transitions into future stages.

INFRASTRUCTURE SUSTAINABILITY The Project has registered for an Infrastructure Sustainability (IS) Rating of the project through the Infrastructure Sustainability Council of Australia (ISCA). The IS Rating scores projects across: management and governance; using resources; emissions, pollution and waste; ecology; people and place; and innovation.

The CMA has used the IS Rating tool as a framework to guide the Project’s approach to sustainability and identified project requirements across all these areas to ensure that the project design can deliver environmental benefits to the Territory.

The successful bidder will need to achieve a certified IS Rating for the Project to quantify and benchmark the sustainability achievements of the Capital Metro project.

RENEWABLE ENERGYThe ACT Government has determined that Stage 1 of Canberra’s light rail network will operate on 100% renewable energy. The successful bidder for Capital Metro will be required to source, at minimum, 10% of the light rail system’s electricity usage from renewable energy sources such as solar or wind. Combined with the ACT Government achieving its target of 90% renewable energy by 2020 – the time in which Stage 1 light rail will be up and running – this will enable the Project to be 100% green energy powered.


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REDUCING EMISSIONSThe successful bidder for the Project will be required to implement measures to reduce the impacts of greenhouse gas emissions resulting from construction activity. This would include avoiding and reducing emissions through energy efficient construction practices as well as sourcing carbon offsets by investing in programs such as reforestation or renewable energy initiatives.

LOCKED PRINTINGThe CMA adheres to the whole of government initiative to use locked printing. Locked printing allows staff to print documents from a computer, and then enter a password into the printer for retrieval.

Along with locked printing, CMA staff are encouraged to review documents electronically through applications such as Microsoft Word, or circulate PDF’s for people to approve, rather than printing out multiple copies. This process has many environmental benefits from the reduction of unnecessary waste.

BLACK-AND-WHITE, AND, BACK-TO-BACK PRINTINGCMA staff are required to set their printing preferences to black and white, and back-to-back.

Back-to-back printing immediately reduces printing by approximately 50 per cent. For large documents (where printing is unavoidable), staff are encouraged to multi-print (2 pages per page, back-to-back). This improves the efficiency of printing by 400 per cent.

ELECTRONIC FILE MANAGEMENT AND DOCUMENT STORAGEThe CMA uses the approved Information Document Management System ‘Objective’. This system reduces the CMA’s demand on paper and eliminates the need for hard file document storage.

SUSTAINABLE METHODS OF TRAVELThe CMA does not have fleet vehicles and encourages the use of public transport and active travel where feasible. The CMA has three ‘MyWay’ cards for use by all staff when travelling outside the CMA office for business purposes.

STATE OF THE ENVIRONMENT REPORTThe CMA has not been requested to contribute to the State of the Environment Report 2011-15.


SUSTAINABLE DEVELOPMENT PERFORMANCE – CURRENT AND PREVIOUS FINANCIAL YEAR

Indicator as at 30 June Unit Current FY Previous FY Percentage change

Agency staff and area

Agency staff FTE 24.81 18 +38%

Workplace floor area Area (m²) 853.94 797 +7.1%

Stationary energy usage

Electricity use Kilowatt hours

65,401 40,489 +61.53%

See commentary

Renewable electricity use Kilowatt hours

Nil Nil N/A - See commentary

Natural gas use Megajoules Nil Nil N/A - See commentary

Transport fuel usage - Nil Nil N/A

Water usage

Water use Kilolitres Data not available

Data not available

N/A - See commentary

Resource efficiency and waste

Reams of paper purchased Reams 693 201 +245%

Recycled content of paper used Percentage (%)

95 95 Nil

Waste to landfill Litres 135,150 87,650 +54.2%

Co-mingled recycled Litres 11,610 5,570 +108.44%

Paper & Cardboard recycled (incl. Secure paper)

Litres 7,200 1,200 +500%

Organic material recycled Litres Nil Nil N/A


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Indicator as at 30 June Unit Current FY Previous FY Percentage change

Greenhouse gas emissions

Emissions from stationary energy use Tonnes CO2-e

49.84 42.92 +16.12% See commentary

Emissions from transport Tonnes CO2-e

Nil Nil N/A - See commentary

Total emissions Tonnes CO2-e

49.84 42.92 N/A - See commentary

N/A – Not Applicable

See commentary - See Sustainable development performance ‑ commentary

SUSTAINABLE DEVELOPMENT PERFORMANCE - COMMENTARYWith regard to energy usage figures detailed in the CMA Annual Report for the 2013-14 period, CMA’s tenancy was not separately metered. Therefore, the figures reported were calculated based on the building’s totals and CMA’s leased area percentage and were not representative of the CMA’s actual usage. More accurate energy usage data for the previous financial year has since been obtained using the Enterprise Sustainability Platform (ESP), and is included above.

With regard to the CMA’s tenancy in its current Dickson location, separate metering was installed part way through the 2014-15 financial year. On this basis, electricity usage figures for the current reporting period are based on a monthly average provided by the separate meter and are therefore an accurate representation of CMA actual electricity usage.

The change in resource efficiency and waste performance for this reporting period is reflective, in part, of the CMA’s increase in FTEs and contractors on site. In addition, resource usage is intrinsically linked to the progress of the project and resultant demand.



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SUB-SECTION C.1 - FINANCIAL MANAGEMENT ANALYSIS

GENERAL OVERVIEW

Objectives

The principal objective of the CMA, which was established on 1 July 2013, is to manage all aspects of the ongoing planning, design and delivery of the Capital Metro project, being the first stage of a light rail network in the Territory.

The CMA is to achieve its principal objective in a manner which ensures comprehensive coordination and integration of transport, land use and development, social, economic and environmental outcomes.

Risk Management

Broadly, CMA directorate-level risks consist of Capital Metro project risks and other risks associated with the operations of the directorate. As the principle objective of the CMA is to manage all aspects of the Project, project-specific risks comprise a large portion of the directorate’s overall risk profile.

As with other ACT Government directorates, responsibility for risk management within the CMA ultimately rests with CMA’s Director-General. The Director-General is supported in this responsibility through:

• the CMA’s executive and staffing team: All CMA staff, to varying degrees, fulfil risk management tasks. During the 2014-15 financial year, risk management controls were overseen by the Project Board, CMA’s Executive Director Commercial, CMA’s Director Project Controls, and CMA’s Risk and Change Management Committee in addition to CMA’s Director-General;

• the CMA’s advisors: During the 2014-15 financial year, the CMA received advice in connection with risk management activities from commercial, legal, insurance, technical, and other advisors;

• the CMA’s governance structure: This governance structure includes a Project Board with an independent chair which oversees the Project and advises the Capital Metro Sub-Committee of Cabinet. The Project Board undertakes a substantial role in ultimately overseeing risk management responsibilities;

• the CMA Audit Committee which oversees the CMA’s governance framework, including oversight of risk, compliance, external accountability and the internal control environment on behalf of the CMA Director-General; and

• other risk management resources applied throughout ACT Government. For example, under the ACT Government’s risk management policy, the ACT Insurance Authority (ACTIA) assists the CMA on insurance implementation matters.

It is also noted that during the reporting period, the CMA’s risk management processes were independently reviewed by an external accounting firm as part of an internal audit of the CMA’s financial management practices. No matters were raised.

Guiding risk management practices within the CMA are a range of risk management procedures. These include ACT Government-wide processes, such as those relating to financial reporting, and CMA-specific processes. The CMA’s risk management processes have developed over time and shall continue to develop in order to ensure appropriate practices are in place. The CMA’s evolving risk management procedures and risk register shall have regard to both directorate-level and Capital Metro project-level risks.

The following key policies and procedures have been implemented to enhance governance and risk management:

• Risk Management Framework; • Director-General Financial Instructions and

Delegations;


• Fraud and Corruption Prevention Plan; • Event Attendance Policy; • Gifts, Benefits and Hospitality Policy and Register;

and • Whole of Government Alcohol and other drugs

policy.

Key near-term risks identified by the CMA during the 2014-15 financial year were associated with the:

• management of project planning approval applications to relevant Territory and Commonwealth authorities;

• management of utility company interactions in order to facilitate an efficient and timely project construction; and

• conduct of procurement activities in a manner which meets all procedural requirements and delivers value for money outcomes.

Directorate Financial Performance

The following financial information is based on audited financial statements for the 2014-15 financial year and the forward estimates contained in the 2015-16 Budget Papers.

The analysis provided below outlines the main trends and factors affecting the Directorate’s financial performance and position for the year ended 30 June 2015 and forward years.

Table 1 Financial Results

Actual 2013-14 $m

Budget 2014-15 $m

Actual 2014-15 $m

Budget 2015-16 $m

Forward Estimate 2016-17 $m

Total Revenue 8.637 23.535 24.060 7.859 5.511

Total Expenditure 8.551 23.535 23.696 7.955 5.511

Operating Surplus/(Deficit)

0.086 - 0.364 (0.096) -


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Total Revenue

Components of Revenue

Figure 2 shows a breakdown of the revenue components in the 2014-15 financial year. Of the Directorate’s total revenue, Government Payment for Outputs (GPO) account for 98 per cent and resources received free of charge account for 2 per cent.

Figure 2 Components of Revenue for 2014-15

Total Revenue

Components of Revenue

Figure 2 shows a breakdown of the revenue components in the 2014-15 financial year. Of the Directorate’s total revenue, Government Payment for Outputs (GPO) account for 98 per cent and resources received free of charge account for 2 per cent.

Figure 2 Components of Revenue for 2014-15

Total 2014-15 Revenue Compared to the Original Budget

The GPO of $23.5 million and capital injection of $0.1 million for a total appropriation of $23.6 million was as originally budgeted.

The total revenue for the year of $24.0 million consists of GPO of $23.5 million and resources received free of charge totalling $0.5 million comprising services provided by the Government Solicitors Office in the Justice and Community Safety Directorate; and the Chief Minister, Treasury and Economic Development Directorate which were not included in the original budget.

Comparison to 2013-14 Actual Revenue

The total revenue of $24.0 million was $15.4 million, or 179 per cent higher than the 2013-14 revenue due to the additional volume of activities performed as the Capital Metro project moved from initial planning in 2013-14 into the design and procurement phase in the current year.

Total Expenditure Components of Expenditure

Figure 3 shows a breakdown of the expenditure components in the 2014-15 financial year. Of CMA’s total expenditure, supplies and services account for 83 per cent, employee costs 15 per cent and superannuation 2 per cent.

Supplies and services payments of $19.7 million includes payments for professional services (contractors and consultancies) of $15.5 million, legal costs of $2.5 million, community engagement costs of $0.4 million, office accommodation $0.3 million and IT services and telecommunications of $0.4 million. The level of professional

Government Payment for Outputs

98%

Resources Received Free of Charge

2%

Total 2014-15 Revenue Compared to the Original Budget

The GPO of $23.5 million and capital injection of $0.1 million for a total appropriation of $23.6 million was as originally budgeted.

The total revenue for the year of $24.0 million consists of GPO of $23.5 million and resources received free of charge totalling $0.5 million comprising services provided by the Government Solicitors Office in the Justice and Community Safety Directorate; and the Chief Minister, Treasury and Economic Development Directorate which were not included in the original budget.

Comparison to 2013-14 Actual Revenue

The total revenue of $24.0 million was $15.4 million, or 179 per cent higher than the 2013-14 revenue due to the additional volume of activities performed as the Capital Metro project moved from initial planning in 2013-14 into the design and procurement phase in the current year.


Total Expenditure

Components of Expenditure

Figure 3 shows a breakdown of the expenditure components in the 2014-15 financial year. Of CMA’s total expenditure, supplies and services account for 83 per cent, employee costs 15 per cent and superannuation 2 per cent.

Supplies and services payments of $19.7 million includes payments for professional services (contractors and consultancies) of $15.5 million, legal costs of $2.5 million, community engagement costs of $0.4 million, office accommodation $0.3 million and IT services and telecommunications of $0.4 million. The level of professional services required is a result of the need to draw on external advisory expertise not readily available to CMA within existing Territory government resources.

Figure 3 Components of Expenditure for 2014-15

services required is a result of the need to draw on external advisory expertise not readily available to CMA within existing Territory government resources.

Figure 3 Components of Expenditure for 2014-15

Total 2014-15 Expenditure Compared to the Original Budget

The total expenditure of $23.7 million was $0.2 million, or 0.7 per cent higher than the 2014-15 original budgeted cost. This was due to:

reductions in employee expenses and superannuation expenses of $1.0 million due to lower than budgeted FTEs as a number of the roles expected to be filed were more prudently discharged by individual contractors and consultancies; and

increases in Supplies and Services of $1.2 million mainly due to the inclusion of costs for resources received free of charge totalling $0.5 million and additional professional services (contractors and consultants) and legal costs.

Comparison to 2013-14 Actual Expenditure

The total expenditure of $23.7 million was $15.1 million, or 176 per cent higher than the 2013-14 expenditure due to the additional volume of activities performed as the Capital Metro project moved from initial planning in 2013-14 into the design and procurement phase in the current year.

Future Trends

Total Expenses budgeted for 2015-16 are expected to decrease by $15.7 million, from the 2014-15 actual of $23.7 million to $8.0 million due to the project reaching a sufficiently mature stage to allow capitalisation of all costs directly attributable to the project totalling $16.1 million in 2015-16. GPO and Total Expenses are expected to reduce in the forward years to $5.5 million in 2016-17 and $5.0 million in 2017-18 and 2018-19 as the project moves into the delivery phase. Costs directly attributable to the project totalling $35.7 million in the 3 years are expected to be capitalised.

Employee Expenses15%

Superannuation Expenses

2%

Supplies and Services 83%

Total 2014-15 Expenditure Compared to the Original Budget

The total expenditure of $23.7 million was $0.2 million, or 0.7 per cent higher than the 2014-15 original budgeted cost. This was due to:

• reductions in employee expenses and superannuation expenses of $1.0 million due to lower than budgeted FTEs as a number of the roles expected to be filed were more prudently discharged by individual contractors and consultancies; and

• increases in Supplies and Services of $1.2 million mainly due to the inclusion of costs for resources received free of charge totalling $0.5 million and additional professional services (contractors and consultants) and legal costs.

Comparison to 2013-14 Actual Expenditure

The total expenditure of $23.7 million was $15.1 million, or 176 per cent higher than the 2013- 14 expenditure due to the additional volume of activities performed as the Capital Metro project moved from initial planning in 2013-14 into the design and procurement phase in the current year.

Future Trends

Total Expenses budgeted for 2015-16 are expected to decrease by $15.7 million, from the 2014-15 actual of $23.7 million to $8.0 million due to the project reaching a sufficiently mature stage to allow capitalisation of all costs directly attributable to the project totalling $16.1 million in 2015-16.

GPO and Total Expenses are expected to reduce in the forward years to $5.5 million in 2016-17 and $5.0 million in 2017-18 and 2018-19 as the project moves into the delivery phase. Costs directly attributable to the project totalling $35.7 million in the 3 years are expected to be capitalised.


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Directorate Financial Position

Total Assets

Components of Total Assets

Total assets are $3.1 million. Figure 4 indicates that the major categories of the directorate’s assets are cash (93 per cent) and receivables (6 per cent).

Figure 4 Total Assets as at 30 June 2015

Directorate Financial Position Total Assets Components of Total Assets

Total assets are $3.1 million. Figure 4 indicates that the major categories of the directorate’s assets are cash (93 per cent) and receivables (6 per cent).

Figure 4 Total Assets as at 30 June 2015

Comparison to the Original Budget

The total asset position as at 30 June 2015 is $3.1 million consisting of cash, receivables and other current assets. This compares with the original budget of $0.1 million. Given the preliminary stage of development of the CMA when the 2014-15 budget was prepared no individual assets were budgeted for 30 June 2015 with the exception of the known capital injection of $0.1 million.

Comparison to 2013-14 Actual

Total assets of $3.1 million compare with $2.4 million at 30 June 2014 due to an increase in cash and cash equivalents of $0.7 million to cover expected cash outflows in early 2015-16.

Cash and Cash Equivalents

93%

Receivables6%

Other Assets1%


The total asset position as at 30 June 2015 is $3.1 million consisting of cash, receivables and other current assets. This compares with the original budget of $0.1 million. Given the preliminary stage of development of the CMA when the 2014-15 budget was prepared no individual assets were budgeted for 30 June 2015 with the exception of the known capital injection of $0.1 million.


Total assets of $3.1 million compare with $2.4 million at 30 June 2014 due to an increase in cash and cash equivalents of $0.7 million to cover expected cash outflows in early 2015-16.

Total Liabilities

Components of Total Liabilities

Total liabilities are $2.8 million. Figure 5 indicates that the major categories of the CMA’s liabilities are payables (65 per cent) and employee benefits (34 per cent).

Figure 5 Total Liabilities as at 30 June 2015

Total Liabilities Components of Total Liabilities

Total liabilities are $2.8 million. Figure 5 indicates that the major categories of the CMA’s liabilities are payables (65 per cent) and employee benefits (34 per cent).

Figure 5 Total Liabilities as at 30 June 2015


The directorate’s liabilities for the year ended 30 June 2015 of $2.8 million are $2.8 million higher than the 2014-15 original budgeted amounts. As previously noted, given the preliminary stage of development of the CMA when the 2014-15 budget was prepared, no individual liabilities were budgeted for 30 June 2015.


Total liabilities of $2.8 million compare with $2.5 million at 30 June 2014 due mainly to an increase of $0.3 million in employee benefits resulting from the increase in FTEs in the year.

Payables65%

Employee Benefits34%

Other Liabilities1%


The directorate’s liabilities for the year ended 30 June 2015 of $2.8 million are $2.8 million higher than the 2014-15 original budgeted amounts. As previously noted, given the preliminary stage of development of the CMA when the 2014-15 budget was prepared, no individual liabilities were budgeted for 30 June 2015.


Total liabilities of $2.8 million compare with $2.5 million at 30 June 2014 due mainly to an increase of $0.3 million in employee benefits resulting from the increase in FTEs in the year.


INDEPENDENT AUDIT REPORT

CAPITAL METRO AGENCY

To the Members of the ACT Legislative Assembly

Report on the financial statements

The financial statements of the Capital Metro Agency (the Agency) for the year ended 30 June 2015 have been audited. These comprise the operating statement, balance sheet, statement of changes in equity, cash flow statement, statement of appropriation and accompanying notes.

Responsibility for the financial statements

The Director-General is responsible for the preparation and fair presentation of the financial statements in accordance with the Financial Management Act 1996. This includes responsibility for maintaining adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and the accounting policies and estimates used in the preparation of the financial statements.

The auditor’s responsibility

Under the Financial Management Act 1996, I am responsible for expressing an independent audit opinion on the financial statements of the Agency.

The audit was conducted in accordance with Australian Auditing Standards to provide reasonable assurance that the financial statements are free of material misstatement.

I formed the audit opinion following the use of audit procedures to obtain evidence about the amounts and disclosures in the financial statements. As these procedures are influenced by the use of professional judgement, selective testing of evidence supporting the amounts and other disclosures in the financial statements, inherent limitations of internal control and the availability of persuasive rather than conclusive evidence, an audit cannot guarantee that all material misstatements have been detected.

Although the effectiveness of internal controls is considered when determining the nature and extent of audit procedures, the audit was not designed to provide assurance on internal controls.


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The audit is not designed to provide assurance on the appropriateness of budget information included in the financial statements or to evaluate the prudence of decisions made by the Agency.

Electronic presentation of the audited financial statements

Those viewing an electronic presentation of the financial statements should note that the audit does not provide assurance on the integrity of information presented electronically, and does not provide an opinion on any other information which may have been hyperlinked to or from this report. If users of the report are concerned with the inherent risks arising from the electronic presentation of information, they are advised to refer to the printed copy of the audited financial statements to confirm the accuracy of this electronically presented information.

Independence

Applicable independence requirements of Australian professional ethical pronouncements were followed in conducting the audit.

Audit opinion

In my opinion, the financial statements of the Agency for the year ended 30 June 2015:

(i) are presented in accordance with the Financial Management Act 1996, Australian Accounting Standards and other mandatory financial reporting requirements in Australia; and

(ii) present fairly the financial position of the Agency as at 30 June 2015 and the results of its operations and cash flows for the year then ended.

This audit opinion should be read in conjunction with other information disclosed in this report.

Dr Maxine Cooper Auditor-General 19 August 2015


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Sub-Section C.2 - Financial Statements

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FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

SUB-SECTION C.2 - FINANCIAL STATEMENTS


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Capital Metro Agency Balance Sheet

As at 30 June 2015 Hidden word

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Original Actual Budget Actual

Note 2015 2015 2014 No. $’000 $’000 $’000 Income Revenue Government Payment for Outputs 3 23,535 23,535 8,468 Resources Received Free of Charge 4 525 - 169 Total Revenue 24,060 23,535 8,637 Total Income 24,060 23,535 8,637 Expenses Employee Expenses 5 3,599 4,574 1,891 Superannuation Expenses 6 378 423 213 Supplies and Services 7 19,719 18,538 6,447 Total Expenses 23,696 23,535 8,551 Operating Surplus 364 - 86 Total Comprehensive Income 364 - 86 The above Operating Statement should be read in conjunction with the accompanying notes.

Capital Metro Agency (CMA) only has one output class and as such the above Operating Statement is also CMA’s Operating Statement for the Capital Metro Project and Governance Output Class. The Capital Metro Project and Governance Output Class includes planning, procurement and delivery of a light rail service between the City and Gungahlin. As a result, a separate output class Operating Statement and Summary of Agency Output Classes has not been included in these financial statements.

Operating StatementFor the Year Ended 30 June 2015


Capital Metro Agency Balance Sheet

As at 30 June 2015 Hidden words

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Original Actual Budget Actual Note 2015 2015 2014 No. $’000 $’000 $’000 Current Assets Cash and Cash Equivalents 11 2,921 96 2,152 Receivables 12 198 - 220 Other Assets 13 11 - 33 Total Current Assets 3,130 96 2,405 Total Assets 3,130 96 2,405 Current Liabilities Payables 14 1,809 - 1,870 Employee Benefits 15 813 - 572 Other Liabilities 16 12 - 12 Total Current Liabilities 2,634 - 2,454 Non-Current Liabilities Employee Benefits 15 137 - 40 Other Liabilities 16 28 - 40 Total Non-Current Liabilities 165 - 80 Total Liabilities 2,799 - 2,534 Net Assets/(Liabilities) 331 96 (129) Equity Accumulated Funds ##N

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331 96 (129) Total Equity 331 96 (129) The above Balance Sheet should be read in conjunction with the accompanying notes. Capital Metro Agency (CMA) only has one output class and as such the above Balance Sheet is also CMA’s Balance Sheet for the Capital Metro Project and Governance Output Class. A separate disaggregated disclosure note has not been included in these financial statements.


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Capital Metro Agency Statement of Changes in Equity

For the Year Ended 30 June 2015 Hidden words

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Accumulated Total Funds Equity Original Actual Actual Budget Note 2015 2015 2015 No. $’000 $’000 $’000 Balance at 1 July 2014 (129) (129) - Comprehensive Income Operating Surplus 364 364 - Total Comprehensive Income 364 364 - Transactions Involving Owners Affecting Accumulated Funds Capital Injections 96 96 96 Total Transactions Involving Owners Affecting Accumulated Funds

96 96 96 Balance at 30 June 2015 331 331 96

Accumulated Total Funds Equity Original Actual Actual Budget Note 2014 2014 2014 No. $’000 $’000 $’000 Balance at 1 July 2013 - - - Comprehensive Income Operating Surplus 86 86 - Total Comprehensive Income 86 86 - Transactions Involving Owners Affecting Accumulated Funds Capital Injections - - 5,000 Net Liabilities transferred in as part of an Administrative Restructure 17 (215) (215) - Total Transactions Involving Owners Affecting Accumulated Funds (215) (215) 5,000

Balance at 30 June 2014 (129) (129) 5,000 The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.


Capital Metro Agency Cash Flow Statement


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Original Actual Budget Actual Note 2015 2015 2014 No. $’000 $’000 $’000 Cash Flows from Operating Activities Receipts Government Payment for Outputs 23,535 23,535 8,468 Goods and Services Tax Input Tax Credits from the Australian Taxation Office 1,857 - 288 Total Receipts from Operating Activities 25,392 23,535 8,756 Payments Employee 3,267 4,624 1,503 Superannuation 373 423 204 Supplies and Services 19,201 18,488 4,433 Goods and Services Tax Paid to Suppliers 1,878 - 464 Total Payments from Operating Activities 24,719 23,535 6,604 Net Cash Inflows from Operating Activities 21 673 - 2,152 Cash Flows from Financing Activities Receipts Capital Injections 96 96 - Total Receipts from Financing Activities 96 96 - Net Cash Inflows from Financing Activities 96 96 - Net Increase in Cash and Cash Equivalents 769 - 2,152 Cash and Cash Equivalents at the Beginning of the Reporting Period 2,152 - - Cash and Cash Equivalents at the End of the Reporting Period

21 2,921 - 2,152 The above Cash Flow Statement should be read in conjunction with the accompanying notes.


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Capital Metro Agency Statement of Appropriation


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Original Total Appropriation Appropriation Budget Appropriated Drawn Drawn 2015 2015 2015 2014 $’000 $’000 $’000 $’000 Government Payment for Outputs 23,535 23,535 23,535 8,468 Capital Injections 96 96 96 - Total Appropriation 23,631 23,631 23,631 8,468 The above Statement of Appropriation should be read in conjunction with the accompanying notes.

Column Heading Explanations

The Original Budget column shows the amounts that appear in the Cash Flow Statement in the 2014-15 Budget Papers. This amount also appears in the Cash Flow Statement. The Total Appropriated column is inclusive of all appropriation variations occurring after the Original Budget. The Appropriation Drawn is the total amount of appropriation received by the Capital Metro Agency (CMA) during the year. This amount also appears in the Cash Flow Statement.


Capital Metro Agency Note Index of the Financial Statements


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Note 1 Objectives of the Capital Metro Agency Note 2 Summary of Significant Accounting Policies Income Notes Note 3 Government Payment for Outputs Note 4 Resources Received Free of Charge Expense Notes Note 5 Employee Expenses Note 6 Superannuation Expenses Note 7 Supplies and Services Note 8 Waivers, Impairment Losses and Write-Offs Note 9 Act of Grace Payments Note 10 Auditor's Remuneration Asset Notes Note 11 Cash and Cash Equivalents Note 12 Receivables Note 13 Other Assets Liability Notes Note 14 Payables Note 15 Employee Benefits Note 16 Other Liabilities Other Notes Note 17 Restructure of Administrative Arrangements Note 18 Financial Instruments Note 19 Commitments Note 20 Contingent Liabilities and Contingent Assets Note 21 Cash Flow Reconciliation Note 22 Events Occurring after Balance Date Note 23 Budgetary Reporting - Explanation of Major Variances Between Actual Amounts and Original Budget Amounts


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Capital Metro Agency Notes to and Forming Part of the Financial Statements


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NOTE 1. OBJECTIVES OF THE CAPITAL METRO AGENCY

The principal objective of the Capital Metro Agency (CMA), which was established on 1 July 2013, is to manage all aspects of the ongoing planning, design and delivery of the Capital Metro project, being the first stage of a light rail network in the Territory. CMA is to achieve its principal objective in a manner which ensures comprehensive coordination and integration of transport, land use and development, social, economic and environmental outcomes.

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Preparation

CMA is prescribed as a Directorate under the Financial Management Act 1996 (FMA).

The FMA requires the preparation of annual financial statements for ACT Government agencies.

The FMA, and the Financial Management Guidelines issued under the Act, requires CMA’s financial statements to include:

(i) an Operating Statement for the year;

(ii) a Balance Sheet as at the end of the year;

(iii) a Statement of Changes in Equity for the year;

(iv) a Cash Flow Statement for the year;

(v) a Statement of Appropriation for the year;

(vi) a summary of the significant accounting policies adopted for the year; and

(vii) such other statements as are necessary to fairly reflect the financial operations of the Capital Metro Agency during the year and its financial position at the end of the year.

These general-purpose financial statements have been prepared to comply with ‘Generally Accepted Accounting Principles’ (GAAP) as required by the FMA. The financial statements have been prepared in accordance with:

(i) Australian Accounting Standards; and

(ii) ACT Accounting and Disclosure Policies.

CMA’s cash needs are funded through appropriation by the ACT Government on a cash-needs basis. This is consistent with the whole- of- Government cash management regime, which requires excess cash balances to be held centrally rather than within individual agency bank accounts.

The financial statements have been prepared using the accrual basis of accounting, which recognises the effects of transactions and events when they occur. The financial statements have also been prepared according to the historical cost convention.

These financial statements are presented in Australian dollars, which is CMA’s functional currency.

CMA is an individual financial reporting entity.




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NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED

(b) The Reporting Period

These financial statements include the financial performance, changes in equity and cash flows of CMA for the year ending 30 June 2015 together with the financial position of CMA as at 30 June 2015.

(c) Comparative Figures

Budget Figures

To facilitate a comparison with Budget Papers, as required by the FMA, budget information for 2014-15 has been presented in the financial statements. Budget numbers in the financial statements are the original budget numbers that appear in the Budget Papers.

Prior Year Comparatives

Comparative information has been disclosed in respect of the previous period for amounts reported in the financial statements, except where an Australian Accounting Standard does not require comparative information to be disclosed.

Where the presentation or classification of items in the financial statements is amended, the comparative amounts have been reclassified where practical. Where a reclassification has occurred, the nature, amount and reason for the reclassification is provided.

(d) Rounding

All amounts in the financial statements have been rounded to the nearest thousand dollars ($’000). Use of “-”represents zero amounts or amounts rounded up or down to zero.

(e) Revenue Recognition

Revenue is recognised at the fair value of the consideration received or receivable in the Operating Statement. All revenue is recognised to the extent that it is probable that the economic benefits will flow to CMA and the revenue can be reliably measured. In addition, the following specific recognition criteria must also be met before revenue is recognised:

Government Payment for Outputs

Government Payment for Outputs are recognised as revenues when CMA gains control over the funding. Control over appropriated funds is normally obtained upon the receipt of cash.

(f) Resources Received and Provided Free of Charge

Resources received free of charge are recorded as a revenue and expense in the Operating Statement at fair value. The revenue is separately disclosed under resources received free of charge, with the expense being recorded in the line item to which it relates. Goods and services received free of charge from ACT Government agencies are recorded as resources received free of charge, whereas goods and services received free of charge from entities external to the ACT Government are recorded as donations.

Services that are received free of charge are only recorded in the Operating Statement if they can be reliably measured and would have been purchased if not provided to CMA free of charge.


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(g) Current and Non-Current Items

Assets and liabilities are classified as current or non-current in the Balance Sheet and in the relevant notes. Assets are classified as current where they are expected to be realised within 12 months after the reporting date. Liabilities are classified as current when they are due to be settled within 12 months after the reporting date or CMA does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.

Assets or liabilities which do not fall within the current classification are classified as non-current.

(h) Cash and Cash Equivalents

For the purposes of the Cash Flow Statement and the Balance Sheet, cash includes cash at bank and cash on hand. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

(i) Receivables

Accounts receivable (including other trade receivables) are initially recognised at fair value and are subsequently measured at amortised cost, with any adjustments to the carrying amount being recorded in the Operating Statement.

Other trade receivables arise outside the normal course of selling goods and services to other agencies and to the public. Other trade receivables are payable within 30 days after the issue of an invoice or the goods/services have been provided under a contractual arrangement.

The allowance for impairment losses represents the amount of other trade receivables CMA estimates will not be repaid. The allowance for impairment losses is based on objective evidence and a review of overdue balances. CMA considers the following is objective evidence of impairment:

a) becoming aware of financial difficulties of debtors;

b) default payments; or

c) debts more than 90 days overdue.

The amount of the allowance is the difference between the receivables carrying amount and the present value of the estimated future cash flows, discounted at the original effective interest rate. Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial. The amount of the allowance is recognised in the Operating Statement.

Receivables that have been renegotiated because they are past due or impaired are accounted for based on the renegotiated terms.

(j) Payables

Payables are a financial liability and are initially recognised at fair value based on the transaction cost and subsequent to initial recognition at amortised cost, with any adjustments to the carrying amount being recorded in the Operating Statement. All amounts are normally settled within 30 days after the invoice date.




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NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED

(k) Payables - continued

Payables include Trade Payables and Accrued Expenses.

Trade Payables represent the amounts owing for goods and services received prior to the end of the reporting period and unpaid at the end of the reporting period which relate to the normal operations of CMA.

Accrued Expenses represent goods and services provided by other parties during the period that are unpaid at the end of the reporting period and where an invoice has not been received by period end.

(l) Leases

CMA has entered into operating leases.

Operating leases do not effectively transfer to CMA substantially all the risks and rewards incidental to ownership of the asset under an operating lease. Operating lease payments are recorded as an expense in the Operating Statement on a straight-line basis over the term of the lease.

The lease incentives represent a rent-free period which CMA recognised as a liability at the time of signing the lease. The lease incentive liability is amortised over the life of the lease.

(m) Employee Benefits

Employee benefits include:

a) short-term employee benefits such as the following; wages and salaries, annual leave loading and applicable on-costs, if expected to be settled wholly before twelve months after the end of the annual reporting period in which the employees render the related services;

b) other long-term benefits such as long service leave and annual leave; and

c) termination benefits.

On-costs also include annual leave, long service leave, superannuation and other costs that are incurred when employees take annual and long service leave.

Wages and Salaries

Accrued wages and salaries are measured at the amount that remains unpaid to employees at the end of the reporting period.

Annual and Long Service Leave

Annual and long service leave including applicable on-costs that are not expected to be wholly settled before twelve months after the end of the reporting period when the employees render the related service are measured at the present value of estimated future payments to be made in respect of services provided by employees up to the end of the reporting period. Consideration is given to the future wage and salary levels, experience of employee departures and periods of service. At the end of each reporting period end, the present value of future annual leave and long service leave payments is estimated using market yields on Commonwealth Government bonds with terms to maturity that match, as closely as possible, the estimated future cash flows.


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(m) Employee Benefits - continued

Annual leave liabilities have been estimated on the assumption they will be wholly settled within three years. In 2014-15 the rate used to estimate the present value of future payments is 101.0% (100.9% in 2013-14).

In 2014-15, the rate used to estimate the present value of future payment for long service leave is 104.2% (103.5% in 2013-14).

The long service leave liability is estimated with reference to the minimum period of qualifying service. For employees with less than the required minimum period of 7 years qualifying service, the probability that employees will reach the required minimum period has been taken into account in estimating the provision for long service leave and applicable on-costs.

The provision for annual leave and long service leave includes estimated on-costs. As these on-costs only become payable if the employee takes annual and long service leave while in-service, the probability that employees will take annual and long service leave while in-service has been taken into account in estimating the liability for on-costs.

The significant judgments and assumptions included in the estimation of annual and long service leave liabilities are determined by an actuary. The Australian Government Actuary performed this assessment in May 2014. The assessment by an actuary is performed every 5 years. However it may be performed more frequently if there is a significant contextual change in the parameters underlying the 2014 report. The next actuarial review is expected to be undertaken by May 2019. Further information about this estimate is provided in Note(r) Significant Accounting Judgements and estimates.

Annual leave and long service leave liabilities are classified as current liabilities in the Balance Sheet where there are no unconditional rights to defer the settlement of the liability for at least 12 months. Conditional long service leave liabilities are classified as non-current because CMA has an unconditional right to defer the settlement of the liability until the employee has completed the requisite years of service.

(n) Superannuation

CMA receives funding for superannuation payments as part of the Government Payment for Outputs. CMA then makes payments on a fortnightly basis to the Territory Banking Account, to cover CMA’s superannuation liability for the Commonwealth Superannuation Scheme (CSS) and the Public Sector Superannuation Scheme (PSS). This payment covers the CSS/PSS employer contribution, but does not include the productivity component. The productivity component is paid directly to ComSuper by CMA. The CSS and PSS are defined benefit superannuation plans meaning that the defined benefits received by employees are based on the employee’s years of service and average final salary.

Superannuation payments have also been made directly to superannuation funds for those members of the Public Sector who are part of superannuation accumulation schemes, which are solely schemes of employee choice.




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(n) Superannuation - continued

Superannuation employer contribution payments, for the CSS and PSS, are calculated, by taking the salary level at an employee’s anniversary date and multiplying it by the actuarially assessed nominal CSS or PSS employer contribution rate for each employee. The productivity component payments are calculated by taking the salary level, at an employee’s anniversary date, and multiplying it by the employer contribution rate (approximately 3%) for each employee. Superannuation payments for fund of choice arrangements are calculated by taking an employee’s salary each pay and multiplying it by the appropriate employer contribution rate.

The total Territory superannuation liability for the CSS and PSS is recognised in the Chief Minister, Treasury and Economic Development Directorate’s Superannuation Provision Account and the external schemes recognise the superannuation liability for the schemes of employee choice. This superannuation liability is not recognised at individual agency level.

The ACT Government is liable for the reimbursement of the emerging costs of benefits paid each year to members of the CSS and PSS in respect of the ACT Government service provided after 1 July 1989. These reimbursement payments are made from the Superannuation Provision Account

(o) Equity Contributed by the ACT Government

Contributions made by the ACT Government, through its role as owner of CMA are treated as contributions of equity.

Increases or decreases in net assets as a result of Administrative Restructures are recognised in equity.

CMA did not have any Administration Arrangements during 2014-15 financial year. Further information on this is provided in Note 17 Restructure of Administration Arrangements.

(p) Insurance

Major Agency risks are insured through the ACT Insurance Authority. The excess payable, under this arrangement, varies depending on each class of insurance held.

(q) Budgetary Reporting

Explanations of major variances between the 2014-15 original budget and the 30 June 2015 actual results are discussed in Note 23 Budgetary Reporting - Explanation of Major Variances between actual amounts and original budget amounts.

The definition of ‘major variances’ is provided in Note 2(r) Significant Accounting Judgements and Estimates – Budgetary Reporting.

Original budget refers to the original budgeted financial statements presented to the Legislative Assembly in a form that is consistent with CMA’s annual financial statements. The 2014-15 budget numbers have not been audited.

(r) Significant Accounting Judgements and Estimates

In the process of applying the accounting policies listed in this note, CMA has made the following judgements and estimates that have the most significant impact on the amounts recorded in the financial statements:


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(r) Significant Accounting Judgements and Estimates - continued

a) Employee Benefits: Significant judgements have been applied in estimating the liability for employee benefits. The estimated liability for annual and long service leave requires a consideration of the future wages and salary levels, experience of employee departures, probability that leave will be taken in service and periods of service. The estimate also includes an assessment of the probability that employees will meet the minimum service period required to qualify for long service leave and that on-costs will become payable. Further information on this estimate is provided in Note 2 (m): Employee Benefits.

b) Budgetary Reporting: Significant judgements have been applied in determining what variances are considered as ‘major variances’ requiring explanations in Note 23 Budgetary Reporting– Explanation of Major Variances between actual amounts and original budget amounts. Variances are considered to be major variances if both of the following criteria are met:

The line item is a significant line item: the line item actual amount accounts for more than 10% of the relevant associated category (Income, Expenses and Equity totals) or sub-element (e.g. Current Liabilities and Receipts from Operating Activities totals) of the financial statements; and

The variances (original budget to actual) are greater than plus (+) or minus (-) 10% for the budget for the financial statement line item.

Further information on this is provided in Note 2(q) Budgetary Reporting

(s) Impact of Accounting Standards Issued but yet to be applied

The following new and revised accounting standards and interpretations have been issued by the Australian Accounting Standards Board but do not apply to the current reporting period. These standards and interpretations are applicable to future reporting periods. CMA does not intend to adopt these standards and interpretations early. Where applicable, these Australian Accounting Standards will be adopted from their application date.

AASB 9 Financial Instruments (December 2014) (application date 1 January 2018);

This standard supersedes AASB 139 Financial Instruments: Recognition and Measurement. The main impact of AASB 9 is that it will change the classification, measurement and disclosures of CMA’s financial assets. No material financial impact on CMA’ is expected.

AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9(December 2010) [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 and 1038 and Interpretations 2, 5, 10, 12, 19 and 127] (application date 1 January 2018);

This standard makes consequential amendments to a number of standards and interpretations as a result of the issuing of AASB 9 in December 2010. No material financial impact on CMA is expected.




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(s) Impact of Accounting Standards Issued but yet to be applied - continued

AASB 2013-9 Amendments to Australian Accounting Standards – Conceptual Framework, Materiality and Financial Instruments Part C Financial Instruments [AASB 9 (December 2009), 2009-11, AASB 9 (December2010) & 2010-7] (application date 1 January 2015).

Part C of this Omnibus standard defers the application of AASB 9 to 1 January 2017. The application date of AASB 9 was subsequently deferred to 1 January 2018 by AASB 2014-1. No material financial impact on CMA is expected.

AASB 2014-1 Amendments to Australian Accounting Standards – Part E Financial Instruments [AASB 1, 3, 4, 5,7,9 (December 2009), 9 (December 2010), 101, 102, 108, 112, 118, 120, 121, 132, 136, 137,139, Interpretation 2, 5,10, 12, 16, 19, and 107] (application date 1 Jan 2018);

Part E of this standard defers the application of AASB 9 to 1 January 2018. No material financial impact on CMA is expected.

AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014) [AASB 1, 2, 3, 4, 5, 7, 13, 101, 102, 108, 110, 112, 120, 121, 123, 128, 132, 133, 136, 137, 139, 1023, 1038, 1049, Interpretation 2, 5, 10, 12, 16, 19 &127] (application date 1 Jan 2018);

This standard makes consequential amendments to a number of standards and interpretations as a result the issuing of AASB 9 (December 2014). No material financial impact on CMA is expected.

AASB 2014-8 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014) – Application of AASB 9 (December 2009) and AASB 9 (December 2010) (application date 1 Jan 2015)

This standard makes amendments to AASB 9 (December 2009) and AASB 9 (December 2010) such that for annual reporting periods beginning on or after 1 January 2015, an entity may apply AASB 9 (December 2009) or AASB 9 (December 2010). CMA does not intend to early adopt these standards and there is no financial impact.

2015-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101 [AASB 7, 101, 134 & 1049] (application date 1 Jan 2016)

These amendments relate to disclosure only and there is no financial impact on CMA.

2015-3 Amendments to Australian Accounting Standards arising from the Withdrawal of AASB 1031 Materiality [AASB 6, 10, 11, 12, 107, 108, 110, 111, 117, 123, 127, 128, 129, 133, 141, 1004, 1039, 1053, and 1054] (application date 1 January 2015)

This standard gives effect to the withdrawal of AASB 1031 Materiality and deletes references to AASB 1031 in the Australian Accounting Standards. There is no financial impact on CMA.


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NOTE 3. GOVERNMENT PAYMENT FOR OUTPUTS

Government Payment for Outputs (GPO) is revenue received from the ACT Government to fund the costs of delivering outputs. The ACT Government pays GPO appropriation on a fortnightly basis.

2015 2014 $’000 $’000 Revenue from the ACT Government Government Payment for Outputs a 23,535 8,468 Total Government Payment for Outputs 23,535 8,468 a) CMA was established on 1 July 2013 and the increase in GPO in 2014-15 was due to the additional volume of activities performed as the Capital Metro project moved from initial planning in 2013-14 into the design and procurement phase in the current year.

NOTE 4. RESOURCES RECEIVED FREE OF CHARGE

Resources received free of charge relate to goods and/or services being provided free of charge from other agencies within the ACT Government.

Revenue from ACT Government Entities Financial Management Support Services provided by the Territory and Municipal Services Directorate 10 23 Services provided by the Chief Minister, Treasury and Economic Development Directorate (CMTEDD) a 151 - Legal Services provided by the Justice and Community Safety Directorate b 364 146 Total Resources Received Free of Charge 525 169 a) The services provided by CMTEDD comprise finance and human resource support. The cost of these services in the prior year was absorbed by CMTEDD and not recorded as resources received free of charge.

b) The increase in Legal Services was due to the additional legal services required in the procurement phase of the project.




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NOTE 5. EMPLOYEE EXPENSES 2015 2014 $’000 $’000 Wages and Salaries a 3,109 1,545 Annual Leave Expense 249 202 Long Service Leave Expense 162 142 Workers' Compensation Insurance Premium b 36 - Other Employee Benefits and On-Costs 43 2 Total Employee Expenses 3,599 1,891 a) The increase in Wages and Salaries was due to the increase in full-time equivalent (FTE) staff from 19 as at 30 June 2014 to 25 as at 30 June 2015.

b) The Workers Compensation Insurance Premium for 2013-14 was not invoiced until February 2015 and is therefore included in the current year expense shown above. NOTE 6. SUPERANNUATION EXPENSES

Superannuation Contributions to the Territory Banking Account 149 126 Productivity Benefit 18 15 Superannuation to External Providers 211 72 Total Superannuation Expenses 378 213


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NOTE 7. SUPPLIES AND SERVICES 2015 2014 $’000 $’000 Contractors and Consultants a 15,529 5,282 Legal Costs b 2,545 332 Community Engagement Costs c 375 254 Staff Development and Recruitment 146 203 Rent and Utility Charges 322 185 IT Services and Telecommunications d 439 71 Other Supplies and Services 363 120 Total Supplies and Services 19,719 6,447

a) Contractors and Consultants include the costs of advisors providing technical, commercial, project management and risk management services relating to the design, procurement and delivery of light rail infrastructure. The increase in costs in 2014-15 was due to the additional services required in the design and procurement phase of the project.

b) The increase in Legal Costs was due to the additional legal services required in the procurement phase of the project.

c) Community Engagement costs comprise market research; design and creation of display tools; digital imagery; community stakeholder workshops and events; and general advertising. The increase in costs reflects the additional activities carried out in 2014-15.

d) The increase in IT Services and Telecommunications costs was due to the inclusion of IT infrastructure charges from CMTEDD, software licence charges and data room services which were not incurred in the prior year.




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NOTE 8. WAIVERS, IMPAIRMENT LOSSES AND WRITE-OFFS

Under Section 131 of the Financial Management Act 1996 the Treasurer may, in writing, waive the right to payment of an amount payable to the Territory.

A waiver is the relinquishment of a legal claim to a debt. The write-off of a debt is the accounting action taken to remove a debt from the books but does not relinquish the legal right to the Agency to recover the amount. The write-off of debts may occur for reasons other than waivers.

There were no Waivers, Impairment Losses and Write-offs for CMA during the reporting period and for the prior year.

NOTE 9. ACT OF GRACE PAYMENTS

Under Section 130 of the Financial Management Act 1996 the Treasurer may, in writing, authorise Act of Grace Payments be made by a directorate. Act of Grace payments are a method of providing equitable remedies to entities or individuals that may have been unfairly disadvantaged by the Government but have no legal claim to the payment.

There were no Act of Grace payments made during the reporting period and for the prior year pursuant to Section 130 of the Financial Management Act 1996.

NOTE 10. AUDITOR’S REMUNERATION

Auditor's remuneration consists of financial audit services provided to CMA by the ACT Audit Office. No other services were provided by the ACT Audit Office.

2015 2014 $’000 $’000 Audit Services Audit Fees Paid or Payable to the ACT Audit Office 45 25 Total Audit Services 45 25


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NOTE 11. CASH AND CASH EQUIVALENTS

CMA holds one bank account with the Westpac Banking Corporation as part of the whole-of-government banking arrangements. As part of these banking arrangements CMA does not receive any interest on this account.

2015 2014 $’000 $’000 Cash at Bank 2,918 2,149 Cash on Hand 3 3 Total Cash and Cash Equivalents 2,921 2,152 NOTE 12. RECEIVABLES Current Receivables Other Trade Receivables 1 44 Net Goods and Services Tax Receivable 197 176 Total Current Receivables 198 220 Total Receivables 198 220




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NOTE 12. RECEIVABLES - CONTINUED

Ageing of Receivables Not Overdue Past Due Total Less than 30 to Greater

than

30 Days 60 Days 60 Days $'000 $'000 $'000 $'000 $'000 2015 Not Impaired a Receivables 198 - - - 198 2014 Not Impaired a Receivables 220 - - - 220 a) 'Not Impaired' refers to Net Receivables (that is Gross Receivables less Impaired Receivables).

2015 2014 $’000 $’000 Classification of ACT Government/Non-ACT Government Receivables Receivables from ACT Government Entities Other Trade Receivables - 44 Total Receivables from ACT Government Entities - 44 Receivables from Non-ACT Government Entities Other Trade Receivables 1 - Net Goods and Services Tax Receivable 197 176 Total Receivables from Non-ACT Government Entities 198 176 Total Receivables 198 220


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NOTE 13. OTHER ASSETS 2015 2014 $’000 $’000 Current Other Assets Prepayments 11 33 Total Other Assets 11 33 NOTE 14. PAYABLES

Current Payables Trade Payables a 133 284 Accrued Expenses 1,676 1,586 Total Current Payables 1,809 1,870 Total Payables 1,809 1,870 a) The decrease in Trade Payables was due to differences in the timing of payment runs in the two years.

Payables are aged as followed Not Overdue 1,809 1,870 Total Payables 1,809 1,870 Classification of ACT Government/Non-ACT Government Payables Payables with ACT Government Entities Trade Payables - 114 Accrued Expenses 58 126 Total Payables with ACT Government Entities 58 240 Payables with Non-ACT Government Entities Trade Payables 133 170 Accrued Expenses 1,618 1,460 Total Payables with Non-ACT Government Entities 1,751 1,630 Total Payables 1,809 1,870




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NOTE 15. EMPLOYEE BENEFITS

2015 2014 $’000 $’000 Current Employee Benefits Annual Leave 328 224 Long Service Leave 325 238 Accrued Salaries 145 81 Other Benefits 15 29 Total Current Employee Benefits 813 572 Non-Current Employee Benefits Long Service Leave 137 40 Total Non-Current Employee Benefits 137 40 Total Employee Benefits a 950 612 Estimate of when Leave is Payable Estimated Amount Payable within 12 months Annual Leave 138 57 Accrued Salaries 145 81 Other Benefits 15 29 Total Employee Benefits Payable within 12 months 298 167 Estimated Amount Payable after 12 months Annual Leave 190 167 Long Service Leave 462 278 Total Employee Benefits Payable after 12 months 652 445 Total Employee Benefits 950 612 As at 30 June 2015, CMA employed 25 full-time equivalent (FTE) staff, increased from 19 FTE staff as at June 2014.

a) The increase in Total Employee Benefits is mainly due to the additional annual and long service leave liabilities accrued by existing staff as well as the increase in overall FTEs shown above.


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NOTE 16. OTHER LIABILITIES

CMA has entered into an operating lease for office accommodation in Dickson ACT. The lease is for 4 years commencing 24 March 2014 and the lease expires on 30 September 2018.

The lease incentives represent a rent-free period which CMA recognised as a liability at the time of signing the lease.

The lease incentive liability is amortised over the life of the lease. Each month the lease rental payment is allocated to the rent expense and reduction of the lease incentive liability.

2015 2014 $’000 $’000 Current Other Liabilities Lease Incentives 12 12 Total Current Other Liabilities 12 12 Non-Current Other Liabilities Lease Incentives 28 40 Total Non-Current Other Liabilities 28 40 Total Other Liabilities 40 52




36

NOTE 17. RESTRUCTURE OF ADMINISTRATIVE ARRANGEMENTS

Restructure of Administrative Arrangements 2014-2015

CMA did not have any changes in Administrative Arrangements during the financial year. Restructure of Administrative Arrangements 2013-2014

On 1 July 2013, a restructuring of administrative arrangements occurred involving the transfer of 5 full time equivalent (FTE) staff from the Economic Development Directorate (EDD), Chief Minister and Treasury Directorate (CMTD) and Commerce and Works Directorate (CWD) to CMA.

Assets and Liabilities

The liabilities transferred from EDD, CMTD and CWD as part of the Administrative Arrangements (AAs) of 1 July 2013 are detailed in the below. Amounts Amounts Amounts Total Transferred Transferred Transferred Amounts from EDD from CMTD from CWDD Transferred 2014 2014 2014 2014 $’000 $’000 $’000 $’000 Liabilities Employee Benefits 151 38 26 215 Total Liabilities Transferred 151 38 26 215 Net (Liabilities) Transferred (151) (38) (26) (215)


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NOTE 18. FINANCIAL INSTRUMENTS

Details of the significant policies and methods adopted, including the criteria for recognition, the basis of measurement, and the basis on which income and expenses are recognised, with respect to each class of financial asset and financial liability are disclosed in Note 2, 'Summary of Significant Accounting Policies'.

Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

CMA is considered to have insignificant exposure to interest rate risk, as it holds only cash and cash equivalents with the Westpac Bank that generates minimal interest and receivables and liabilities are non-interest bearing.

Sensitivity Analysis

A sensitivity analysis has not been undertaken as CMA has insignificant exposure to interest rate risk.

Credit Risk

Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. CMA’s credit risk is limited to the amount of the financial assets it holds net of any allowance for impairment loss. CMA expects to collect all financial assets that are not past due or impaired.

Cash and cash equivalents are held with a high credit quality financial institution (Westpac Banking Corporation), in accordance with whole of ACT Government banking arrangements. Most receivables are represented by a net Goods and Services Tax receivable from the Australian Taxation Office.

Credit risk is therefore considered to be low.

Liquidity Risk

Liquidity risk is the risk that CMA will be unable to meet its financial obligations associated with financial liabilities that are settled by delivering cash or another financial asset. CMA’s main financial obligations relate to the purchase of supplies and services. Purchases of supplies and services are paid within 30 days of receiving the goods or services.

The main source of cash to pay these obligations is appropriation from the ACT Government which is paid on a fortnightly basis during the year. CMA manages its liquidity risk through forecasting appropriation drawdown requirements to enable payment of anticipated obligations. CMA has ability to drawdown additional appropriations from the ACT Government if required. This ensures that CMA has enough liquidity to meet its emerging financial liabilities. See the maturity analysis below for further details of when the financial assets and liabilities mature. CMA’s exposure to liquidity risk and the management of this risk has not changed since the previous reporting period.




38

NOTE 18. FINANCIAL INSTRUMENTS - CONTINUED

Price Risk Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether these changes are caused by factors specific to the individual financial instrument or its issuer; or by factors affecting all similar financial instruments traded in the market.

CMA does not have any financial instruments that are subject to price risk. Accordingly, a sensitivity analysis has not been undertaken.

Fair Value of Financial Assets and Liabilities

The carrying amounts and fair values of financial assets and liabilities at the end of the reporting period are: Carrying Fair Value Carrying Fair Value Amount Amount Amount Amount 2015 2015 2014 2014 $’000 $’000 $’000 $’000 Financial Assets Cash and Cash Equivalents 2,921 2,921 2,152 2,152 Receivables 1 1 44 44 Total Financial Assets 2,922 2,922 2,196 2,196 Financial Liabilities Payables 1,809 1,809 1,870 1,870 Total Financial Liabilities 1,809 1,809 1,870 1,870 Fair Value Hierarchy

CMA’s financial assets and liabilities are measured, subsequent to initial recognition, at amortised cost and as such are not subject to the Fair Value Hierarchy.


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NOTE 18. FINANCIAL INSTRUMENTS - CONTINUED

2015 2014 $’000 $’000 Carrying Amount of Each Category of Financial Asset and Financial Liability Financial Assets Loans and Receivables Measured at Amortised Cost 1 44 Financial Liabilities Financial Liabilities Measured at Amortised Cost 1,809 1,870 CMA does not have any financial assets in the ‘Available for Sale’ category, the ‘Financial Assets at Fair Value through Profit and Loss’ category or the ‘Held to Maturity’ category and, as such, these categories are not included above. Also, CMA does not have any financial liabilities in the ‘Financial Liabilities at Fair Value through Profit and Loss’ category and as such this category is not included above.




NOTE 19. COMMITMENTS Other Commitments

Other Commitments as at 30 June 2014 related to consultancy contracts with future specific deliverables that had not been recognised as liabilities at the reporting date. No consultancy contracts and other commitments existed at 30 June 2015.

2015 2014 $’000 $’000 Other Commitments Within One Year - 3,044 Total Other Commitments - 3,044 Operating Lease Commitments

CMA has one non-cancellable operating lease for a building which is used for office accommodation. The operating lease agreement gives CMA the right to renew the lease. Renegotiations of the lease terms occur on renewal of the lease.

Contingent rental payments have not been included in the commitments below. Total non-cancellable operating lease commitments that are also included relate to Shared Services ICT. 2014

Non-Cancellable Operating Lease Commitments are Payable as follows: $’000

Within One Year 379 377 Later than one year but not later than five years 827 1,193 Total Operating Lease Commitments 1,206 1,569 All amounts shown in the commitment note are inclusive of Goods and Services Tax.


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NOTE 20. CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Contingent Assets

There were no contingent assets as at 30 June 2015 (nil as at 30 June 2014).

Contingent Liabilities

There were no contingent liabilities as at 30 June 2015 (nil as at 30 June 2014).

NOTE 21. CASH FLOW RECONCILIATION

(a) Reconciliation of Cash and Cash Equivalents at the End of the Reporting Period in the Cash Flow Statement to the Equivalent Items in the Balance Sheet

2015 2014 $’000 $’000 Total Cash and Cash Equivalents Disclosed in the Balance Sheet 2,921 2,152 Cash and Cash Equivalents at the End of the Reporting Period as Recorded in the Cash Flow Statement 2,921 2,152

(b) Reconciliation of Net Cash Inflows from Operating Activities to the Operating Surplus Operating Surplus 364 86 Add/(Less) Non-Cash Items Net Increase in Liabilities due to Administrative Restructure - (215) Cash Before Changes in Operating Assets and Liabilities 364 (129) Changes in Operating Assets and Liabilities (Increase)/Decrease in Receivables 22 (220) (Increase)/Decrease in Other Assets 22 (33) Increase/(Decrease) in Payables (61) 1,870 Increase in Employee Benefits 338 612 Increase/(Decrease) in Other Liabilities (12) 52 Net Changes in Operating Assets and Liabilities 309 2,281 Net Cashflows from Operating Activities 673 2,152 NOTE 22. EVENTS OCCURING AFTER BALANCE DATE There were no events occurring after balance date that would have a material impact on amounts included in the 2014-15 financial statements.




NOTE 23. BUDGETARY REPORTING – EXPLANATIONS OF MAJOR VARIANCES BETWEEN ACTUAL AMOUNTS AND ORIGINAL BUDGET AMOUNTS The following are brief explanations of major line item variances between budget estimates and actual outcomes. Variances are considered to be major variances if both of the following criteria are met:

(a) The line item is a significant line item: the line item actual amount accounts for more than 10% of the relevant associated category (Income, Expenses and Equity totals) or sub-element (e.g. Current Liabilities and Receipts from Operating Activities totals) of the financial statements; and

(b) The variances (original budget to actual) are greater than plus (+) or minus (-) 10% of the budget for the financial statement line item.

Operating Statement Line Items Actual Original Variance Variance Variance Explanation 2014-15 Budget1 $’000 2014-15 $’000 % $’000 Employee Expenses 3,599 4,574 (975) (21)

Actual full-time equivalent (FTE) staff lower than budget due to certain roles being more prudently discharged by contractors or consultancies.

Balance Sheet Line Items Actual Original Variance Variance Variance Explanation 2014-15 Budget1 $’000 2014-15 $’000 % $’000 Cash and Cash Equivalents 2,921 96 2,825 # Given the preliminary stage Current Payables 1,809 - 1,809 100 of development of the CMA Employee Benefits 1,087 - 1,087 100 when the 2014-15 budget was prepared no individual assets and liabilities were budgeted for at 30 June 2015 with the exception of the capital injection of $96,000.

Statement of Changes in Equity These line items are covered in other financial statements

1 Original Budget refers to the amounts presented to the Legislative Assembly in the original budgeted financial statements in respect of the reporting period (2014-15 Budget Statements). These amounts have not been adjusted to reflect supplementary appropriation or appropriation instruments. Note: # in the Line Item Variance % column represents a variance that is greater than 999 per cent or less than -999 per cent.


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NOTE 23. BUDGETARY REPORTING – EXPLANATIONS OF MAJOR VARIANCES BETWEEN ACTUAL AMOUNTS AND ORIGINAL BUDGET AMOUNTS - CONTINUED

Cash Flow Statement Line Items Actual Original Variance Variance Variance Explanation 2014-15 Budget1 $’000 2014-15 $’000 % $’000 Employee Expenses 3,267 4,624 (1,357) (29)

Actual full-time equivalent (FTE) staff lower than budget due to certain roles being more prudently discharged by contractors or consultancies.

1 Original Budget refers to the amounts presented to the Legislative Assembly in the original budgeted financial statements in respect of the reporting period (2014-15 Budget Statements). These amounts have not been adjusted to reflect supplementary appropriation or appropriation instruments.



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Service Provider Contract Title Value (inc. GST)

Actew AGL Provision of a Network application design & feasability study

$71,500

Actew AGL (Electricity) Desk Top Study $37,300

Actew AGL (Gas) Clash detection desk top study $69,325

Ansarada Data Room Software $100,320

ARUP Pty Ltd Technical Advisor Services - Procurement Phase $4,740,193

ARUP Pty Ltd variation $1,238,879

Cardno Utilities - Hydraulic Engineer $98,560

Caroplan Pty Ltd Stage 2 Pricing & Ticketing $28,000

Caroplan Pty Ltd Ticketing & Pricing Consultancy Services $88,000

Coffey Environments Aust Pty Ltd Independent Site Auditor $33,271

Coffey Environments Aust Pty Ltd Extension on Term of Contract $33,034

ConnellGriffin Pty Ltd Cost Peer Review Services $105,666

Content Group Media Package - Oct 2014

$90,750

Content Group Business Case Comms Support & Support in Comms and Stakeholder Engagement Team

$55,825

Content Group Support in Comms and Stakeholder Engagement Team

$28,463

SUB-SECTION C.5 – GOVERNMENT CONTRACTINGThe CMA has engaged consultants and contractors in 2014-15 to provide technical, commercial and legal services not readily available with existing Territory government resources.

All procurement processes conformed with the Government Procurement Act 2001 and Government Procurement Regulation 2007.

The following table shows the contracts let and contract variations in the period 1 July 2014 to 30 June 2015.


Procurement Methodology Procurement Type Exemption Start Date Completion Date

Single Select Consultant Yes 18/11/2014 31/12/2014






Three written quotes/proposals

Consultant No 20/01/2015 22/11/2015

Specialist Advisor Panel - Works Order

Consultant No 02/07/2014 31/10/2014


Consultant No 20/03/2015 20/07/2015


Consultant No 24/07/2014 31/01/2015



Consultant No 15/07/2014 28/02/2015

Single Quote from ACT Government Campaign advisor services panel

Consultant No 08/09/2014 30/06/2015


Consultant No 09/10/2014 31/12/2014


Consultant No 10/11/2014 19/12/2014


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Content Group Acting Director Comms and Stakeholder Engagement Team

$29,700

EIG Transaction Manager $1,339,657

Ernst and Young Procurement Support, EOI Preparation, Russell Extension Options & Business Case Support

$1,646,876

Ernst and Young Infrastructure commercial advisory services in relation to the Russell Extension

$363,000

Fleming and Partners Pty Ltd Chief Financial Advisor - Variation 2 - Contract Value $100,000

Geonosis Operational Planning Extended under panel $188,760

Geonosis Risk/Change Management, EOI Eval, input into RFP & other

$193,435

Geonosis Utilities Project Manager $176,000

Haskins Consulting Pty Ltd Risk Review $29,920

Hiller Parry Local Industry Participation $36,300

Hiller Parry Local Industry Participation - Extended $26,620

Hudson Global Resource Director Communications & Stakeholder Engagement and Director Planning and Design

$28,000

Infrasol Group Transaction Manager $1,175,504

Interfleet Technology Pty Ltd Customer Experience & Operations Services $79,200

Interfleet Technology Pty Ltd Customer Experience & Operations Services - Extension 2

$508,200

Interfleet Technology Pty Ltd Definition of payment mechanism to Project Co – for input into RFP

$60,632

LANData Surveys CMP Site Surveys $69,520

Lee Noble Safety accreditation and safety management assurance systems and policy development and management services for the Customer Experience & Operations

$140,800



ACT Government Campaign advisor services panel

Consultant No 19/01/2015 27/02/2015


Shared Services Procurement Panel Contract - Works Order

Consultant No 27/10/2014 31/03/2016




Consultant No 28/07/2014 23/01/2015


Consultant No 27/01/2015 30/06/2015


Consultant No 09/04/2015 08/10/2015



Single Select Consultant No 04/02/2015 30/06/2015


Consultant No 19/11/2014 27/03/2015


Consultant No 27/08/2014 27/08/2015


Consultant No 15/09/2014 15/11/2014


Consultant No 10/12/2014 31/12/2015


Consultant No 29/01/2015 30/04/2015


Consultant No 03/03/2015 31/12/2015


Consultant No 01/12/2014 31/12/2015


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Parsons Brinkerhoff Environmental Impact Statement $659,953

Ranbury Management Group Interface Agreement Development $68,640

Randall Barry Operations Advisor Extended under panel $158,400

Randall Barry Operations Advisor Extended under panel $195,360

RPS Manidis Roberts Pty Ltd Governance Arrangements Extended $36,300

Sparke Helmore Lawyers Probity Advisers $140,000



Public Tender Consultant No 19/11/2014 30/07/2015


Specialist Advisors Panel - Works Order

Consultant No 10/09/2014 10/04/2015


Consultant No 13/04/2015 31/12/2015


Consultant No 10/09/2014 10/10/2014

Quotes from GSO Panel Consultant No 17/09/2014 17/03/2016


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REPORT OF FACTUAL FINDINGS


To the Members of the ACT Legislative Assembly

Report on the statement of performance

The statement of performance of the Capital Metro Agency for the year ended 30 June 2015 has been reviewed.

Responsibility for the statement of performance

The Director-General of the Capital Metro Agency is responsible for the preparation and fair presentation of the statement of performance in accordance with the Financial Management Act 1996. This includes responsibility for maintaining adequate records and internal controls that are designed to prevent and detect fraud and error, and the systems and procedures used to measure the results of accountability indicators reported in the statement of performance.

The auditor’s responsibility

Under the Financial Management Act 1996 and Financial Management (Statement of Performance Scrutiny) Guidelines 2011, I am responsible for providing a report of factual findings on the statement of performance.

The review was conducted in accordance with Australian Auditing Standards applicable to review engagements, to provide assurance that the results of the accountability indicators reported in the statement of performance have been fairly presented in accordance with the Financial Management Act 1996.

A review is primarily limited to making inquiries with representatives of the Capital Metro Agency, performing analytical and other review procedures and examining other available evidence. These review procedures do not provide all of the evidence that would be required in an audit, therefore, the level of assurance provided is less than that given in an audit. An audit has not been performed and no audit opinion is being expressed on the statement of performance.

The review did not include an assessment of the relevance or appropriateness of the accountability indicators reported in the statement of performance or the related performance targets.

SUB-SECTION C.6 – STATEMENT OF PERFORMANCE


Hidden words

No opinion is expressed on the accuracy of explanations provided for variations between actual and targeted performance due to the often subjective nature of such explanations.

As disclosed in the statement of performance, in accordance with the Financial Management (Statement of Performance Scrutiny) Guidelines 2011, the Government Payment for Outputs and Total Cost information included in the statement of performance has not been reviewed.

Electronic presentation of the statement of performance

Those viewing an electronic presentation of this statement of performance should note that the review does not provide assurance on the integrity of information presented electronically, and does not provide an opinion on any other information which may have been hyperlinked to or from the statement of performance. If users of the statement of performance are concerned with the inherent risks arising from the electronic presentation of information, they are advised to refer to the printed copy of the reviewed statement of performance to confirm the accuracy of this electronically presented information.

Independence

Applicable independence requirements of Australian professional ethical pronouncements were followed in conducting the review.

Review opinion

Based on the review procedures, no matters have come to my attention which indicate that the results of the accountability indicators, reported in the statement of performance of the Capital Metro Agency for the year ended 30 June 2015, are not fairly presented in accordance with the Financial Management Act 1996.

This review opinion should be read in conjunction with the other information disclosed in this report.

Dr Maxine Cooper Auditor-General 27 August 2015


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Documents

Capital Metro Annual Report 2014-15 - cityservices.act.gov.au · Mr Simon Corbell MLA Minister for Capital Metro ACT Legislative Assembly London Circuit CANBERRA CITY ACT 2601 Dear