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- Explanatory statement
Explanatory statement
Significant variations between estimates and actual results for 2014 and between the actual results for 2013 and 2014 are shown below. Significant variations are considered to be those greater than 10% or $5 million.
a) Significant variances between estimated and actual result for 2014
| 2014 Estimate $000 |
2014 Actual $000 |
Variance $000 |
|
|---|---|---|---|
| User charges and fees | 229,622 | 213,127 | (16,495) |
| Grants and subsidies expenses | 457,380 | 473,561 | (16,181) |
| Depreciation and amortisation expense | 263,914 | 255,289 | 8,625 |
User charges and fees
Decreased user charges and fees mainly due to lower patronage.
Grants and subsidies expenses
Increased grants and subsidies expenses mainly due to transfer of assets to local Government.
Depreciation and amortisation
Decreased depreciation costs of $8.6 million resulting from deferral of the asset investment program.
b) Significant variations between actual results for 2013 and 2014
| 2014 Actual $000 |
2013 Actual $000 |
Variance $000 |
|
|---|---|---|---|
| Income | |||
| Other revenue | 47,726 | 37,330 | 10,396 |
| Expenses | |||
| Employee benefits expense | 149,260 | 140,790 | (8,470) |
| Grants and subsidies expense | 473,561 | 427,440 | (46,121) |
| (Loss)/gain on disposal/write-off of non-current assets | (15,628) | 77 | (15,705) |
| Depreciation and amortisation | 255,289 | 245,404 | (9,885) |
| Finance costs | 76,781 | 69,877 | (6,904) |
Other revenue
Increased other revenue mainly due to a one-off contribution from City of Perth for the Perth City Link - Bus Project.
Employee benefit expense
Increased employee benefits expense mainly due to salary and wages increment based on the Enterprise Bargaining Agreements and an increase in operational staff.
Grants and subsidies expense
Increased grants and subsidies expense mainly due to:
- transfer of assets to local government;
- bus service kilometres for the Transperth Bus Network;
- labour and fuel costs for the Transperth and School bus operators;
- bus contract cost escalation.
(Loss)/gain on disposal/write-off of non-current assets
Due to the write-off of freight sleepers and ballast as part of the freight resleepering program.
Depreciation and amortisation
Increased depreciation costs due to addition of assets during the year.
Finance costs
Increased finance cost due to new borrowings for assets purchase.
