41 Explanatory statement
This statement provides details of any significant variations between estimates and actual results for 2011 and between the actual results for 2010 and 2011. Significant variations are considered to be those greater than 10% or $5 million.
Significant variances between estimated and actual result for 2011
|
2011 |
2011 |
Variance $000 |
|
|---|---|---|---|
|
Income |
231,300 |
204,643 |
26,657 |
|
Cost of Services |
1,003,704 |
929,594 |
(74,110) |
Net Cost of Services |
772,404 |
724,951 |
(47,453) |
Revenue
Revenue was $26.7 million (13.0%) above the estimate. The positive variations include:
- Increased Transperth fare revenue from increased patronage;
- Increased revenue from the Department of Education for providing bus services to intensive English centres;
- Increased lease revenue from Commercial leases;
- Increased revenue from ticket infringements, advertising and parking;
- Increased funding agreements for services requested and funded by external parties;
- Increased interest income through holding the funding from the City of Perth contribution to the Perth City Link project.
Total cost of services
Cost of services for the year was $74.1 million (8.0%) above the estimate.
There were several significant positive and negative variations that contributed to this overall variation. These variations include:
- Increased depreciation costs of $76 million resulting from the prior year revaluation of the Freight network infrastructure by $1.1 billion;
- Increased Grants and subsidies to Transperth for additional bus kilometres, CAT bus and funding agreements with City councils and universities;
- Increased costs for the refurbishment of Transperth buses and the bus priority lane program;
Offset by:
- Decreased interest costs due to lower projected interest by WATC and an accelerated catch up in the Capital works program towards the end of the year.
Significant variances between actual results for 2010 and 2011
|
2011 |
2010 |
Variance $000 |
|
|---|---|---|---|
Income |
|||
|
User charges and fees |
167,759 |
152,026 |
15,733 |
|
Other revenue |
55,593 |
40,051 |
15,542 |
Expenses |
|||
|
Employee benefits expense |
125,936 |
120,158 |
5,778 |
|
Depreciation and amortisation expense |
242,957 |
159,026 |
83,931 |
|
Grants and subsidies expense |
345,647 |
326,098 |
19,549 |
|
Energy and fuel |
18,385 |
15,269 |
3,116 |
|
Other expenses |
16,168 |
12,492 |
3,676 |
User charges and fees
Increased user charges and fees mainly due to a combination of fare increase based on CPI and patronage increase.
Other revenue
Increased other revenue mainly due to a Contribution of $25.6 million from the City of Perth for the Perth City Link Project, higher advertising and commercial lease income offset by a one-off settlement of insurance claims in the previous year.
Employee benefits expense
Increased employee benefits expense mainly due to yearly salary and wages increment based on the Enterprise Bargaining Agreement.
Depreciation and amortisation expense
Increased depreciation of $83.9 million mainly due to the prior year revaluation of the Freight network infrastructure by $1.1 billion.
Grants and subsidies expense
Increased Grants and Subsidies expense of $19.5 million mainly due to increased:
- labour and fuel costs for the Transperth and School bus operators;
- bus kilometres for the Transperth Bus Network;
- costs related to the implementation of seatbelts, air-conditioning, automatic transmission on contracted school buses;
- costs related to bus shelters and bus stop accessible pathways.
Energy and fuel
Increased energy costs mainly due to an increase in electricity tariffs.
Other expenses
Increased other expenses mainly due to increased workers’ compensation claims for transit officers.