The Passenger Transport Board (the Board) is a body corporate established under the Passenger Transport Act 1994 (the Act).
The functions of the Board, as set out by subsection 20(1) of the Act, include:
overseeing the creation and maintenance of an integrated network of passenger transport services involving all modes of passenger transport by public passenger vehicles within the State;
determining, monitoring and reviewing passenger transport services and fares payable by members of the public;
accrediting operators of passenger transport services and the drivers of these vehicles; administering a system of fare subsidies and concessions in appropriate cases;
establishing and maintaining facilities and various forms of infrastructure for the purposes of the passenger transport network;
facilitating the use of passenger transport services by people with disabilities;
establishing, auditing and, if necessary, enforcing safety, service, equipment and comfort standards for passenger transport within the State.
Subsection 20(2) of the Act specifies that the Board itself must not operate a passenger transport service.
The Act requires the Board to establish two committees:
the Passenger Transport Industry Committee to provide an industry forum to assist the Board as appropriate in the performance of its functions;
the Passenger Transport User Committee to provide advice to the Board on matters of general relevance or importance to the users of passenger transport services.
The Board has also chosen to establish other committees and panels which include the Passenger Transport Standards Committee, the Taxi Industry Advisory Panel, the Bus Industry Advisory Panel and the Accessible Transport Advisory Panel. These committees and panels form part of the organisational structure and report to the Board.
The organisational structure of the Passenger Transport Board is:
The Board paid $212.9 million ($207.4 million) to Metropolitan service contractors in relation to the operation of metropolitan bus, train and tram services.
Metropolitan public transport ticket sales revenue amounted to $47.6 million ($46.7 million).
Subsection 18(3) of the Passenger Transport Act 1994 specifically provides for the Auditor-General to audit the accounts and the annual statements of account of the Board.
The audit program covered all major financial systems and was directed primarily towards obtaining sufficient evidence to enable an audit opinion to be formed with respect to the financial statements and internal control.
During 1999-2000 specific areas of audit attention included:
administration of bus, train and tram service contracts including contract payments
metropolitan public transport ticketing
accounts payable
revenue, receipting and banking.
In addition Audit undertook a review of the Competitive Tendering and Contract Process used by the Board to facilitate the awarding of contracts for metropolitan transport services.
During the year several letters communicating issues arising from the audit were forwarded to the Executive Director of the Passenger Transport Board with satisfactory responses being received.
An assessment of the Board's internal control structure identified that internal controls were adequate although there was room for improvement in some areas of operation. These areas are outlined below.
The audit identified opportunities for improvement in relation to evidencing of checks undertaken, the timely follow up of outstanding debts and banking more regularly where large amounts are received.
In response the Board indicated that action will be taken to provide evidence of checks undertaken, implement revised procedures for following up outstanding debts and undertake banking more regularly.
Audit noted that the contract for Passenger Train Services expired in December 1998 and although the parties to the contract are still operating under the terms and conditions of the expired contract, the contract had not yet been renewed nor formally extended.
In response the Board indicated that it is currently renegotiating this contract and that future renegotiations will occur on a timely basis.
Audit also noted instances where contract conditions had not been met in relation to the execution of variations to existing contracts and the receipt of information from contractors in accordance with specified timeframes.
The Board indicated that future contract variations will be made in accordance with the terms and conditions of contracts and that the contract conditions in relation to receipt of information from contractors will be enforced and adequate follow up will be implemented by contract managers.
Over the past few years Audit has raised with the Board the need to have in place a common contract management system. The Board has endeavoured to obtain a system which meets its needs but has been unable to purchase a suitable software package. It has now commenced the process of an in-house development to meet its contract management needs. Audit will monitor the development as part of the 2000-01 audit.
The audit of the Competitive Tendering and Contracting Process (CTC Process) undertaken by the Board for the letting of contracts for metropolitan passenger services revealed the procedures implemented for the process were satisfactory.
There were, however, areas where Audit considered that there were opportunities to improve future contracting processes. These opportunities related to the:
reporting to both the Board and external parties. While regular progress reports were presented to the Board at each meeting, some summary reports on the outcome of the process were not prepared in a timely manner;
maintenance of complete documentation with respect to minutes of meetings, follow-up of outstanding issues and action taken to address identified risks.
In response the Board indicated that action would be taken in future contracting processes to improve the timeliness of reporting and the completeness of the documentation maintained.
As part of the CTC Process the Board engaged a probity advisor. With respect to the management of this consultant contract Audit noted that there was inadequate monitoring of contract conditions. The inadequacies included the provision of regular written reports to the Board, the maintenance of adequate documentation to support advice provided and the review of evidence of adequate insurance coverage.
In response, the Board indicated that action had been taken to address the issued raised by Audit. A subsequent review by Audit confirmed that the Board had implemented procedures to adequately monitor compliance with contract conditions.
As required by subsection 36(1)(a)(iii) of the Public Finance and Audit Act 1987, the audit of the Passenger Transport Board included an assessment of the controls exercised in relation to the receipt, expenditure and investment of money, the acquisition and disposal of property and the incurring of liabilities. The assessment also considered whether those controls were consistent with the prescribed elements of the Financial Management Framework as required by Treasurer’s Instruction 2 ‘Financial Management Policies’.
Audit formed the opinion that the controls exercised by the Passenger Transport Board in relation to the receipt, expenditure and investment of money; the acquisition and disposal of property; and the incurring of liabilities, were sufficient to provide reasonable assurance that the financial transactions of the organisation were conducted properly and in accordance with the law.
Payments to Metropolitan service contractors increased by $5.5 million to $212.9 million. These payments represent 87 percent (88 percent) of total operating expenses incurred by the Board in 1999-2000.
The Board is primarily funded from Parliamentary appropriations, however it also receives significant monies in relation to metropolitan public transport ticket sales and concession ticket subsidies.
The following graph shows the major categories of revenue as a percentage of Total Operating Revenues of the Board.
Passenger Transport Board Revenues
The following table shows the extent to which the fares charged to passengers in the metropolitan area covers the outlays by the Board to Metropolitan Service Contractors.
|
|
|
2000 |
1999 |
|
|
|
$’000 |
$’000 |
Metroticket sales |
|
|
47 636 |
46 713 |
Payments to Metropolitan Service Contractors |
|
|
212 903 |
207 380 |
|
|
|
|
|
|
|
|
2000 |
1999 |
|
|
|
Percent |
Percent |
Metroticket sales as a percentage of payments to Metropolitan Service Contractors |
|
22.4 |
22.5 |
|
Cash at bank and on hand as at 30 June 2000 was $21.8 million, an increase of $11 million over the previous year. The increase was due mainly to an increase in the appropriations from Government of $9.3 million.
Note 25(a) to the Financial Statements details the purpose and administration of the Fund and transactions for the year. The balance of the Fund at 30 June was $2 075 000 ($2 865 000).