Unqualified audit opinions were issued for all agencies' financial statements

Unqualified audit opinions were issued on the 2016–17 financial statements of all agencies in the Transport cluster.

The cluster corrected the value of rail tunnels and earthworks for an additional $8.5 billion

The accounting standards require all infrastructure assets to be valued and recorded in the financial statements. Some rail tunnels and earthworks have never been valued by TfNSW and Rail Corporation NSW (RailCorp). These include the City Circle, the country regional network, and other tunnels and earthworks built before year 2000.

TfNSW and RailCorp (and previous agencies) did not account for these assets as they believed that their value could not be reliably measured. This year an independent valuer was engaged to perform a comprehensive valuation. The methodology used demonstrated that the assets could have been reliably reflected in earlier financial statements. TfNSW and RailCorp recorded an additional $8.5 billion to correct the value of infrastructure assets at 1 July 2016.

Timely completion of asset valuations can be improved

Asset valuations are complex. The transport cluster has a large, geographically dispersed asset base, requiring significant resources, judgement and estimation techniques to determine fair values. Although most agencies complied with the Treasury’s early close procedures, opportunities exist for further improvements to asset revaluation processes.

TfNSW completed the valuation of buses under finance lease and revaluation of country regional network infrastructure assets after the early close deadline. RailCorp also completed the valuation of its pre-2000 tunnels and earthworks after the early close deadline. The draft results of the revaluations were provided to the Audit Office after 30 June 2017 when the valuations were complete. The main reason for the delays was that the valuation of the tunnels and earthworks required significant effort to determine an appropriate valuation methodology.

Passenger revenue and patronage increased

Public transport passenger revenue increased by $93 million (seven per cent) in 2016–17, and patronage increased by 49 million (seven per cent) across all modes of transport. There were some changes in the method of calculating reported patronage between 2015–16 and 2016–17. If the methods had been consistent, the patronage increase would be lower at 6.5 per cent. The Opal fare structure changed from September 2016 to allow a transfer discount between modes of transport and replaced free trips after eight journeys with half price trips.

$2.6 million in Revenue not collected during 2016–17 through negative balance Opal cards

The number of Opal cards with negative balances increased from 363,000 during 2015–16 (negative $1.3 million) to 776,771 (negative $2.6 million) during 2016–17. Transport advise the cumulative balance of negative balance Opal Cards is $4.2 million as at 30 June 2017. During 2016–17, 5.9 million Opal Cards were issued, an increase from 4.1 million cards issued in 2015–16.

If a passenger's card has a minimum value when they tap on they will be able to tap off and the card will go into a negative balance. Revenue from unregistered Opal cards with negative balances cannot be recovered unless the passenger tops-up the card. The total balance of lost revenue will continue to grow if passengers discard unregistered cards without paying for the remaining negative balance.

Recommendation

TfNSW should implement measures to prevent loss of revenue from passengers tapping off with negative balance Opal Cards.

IT systems user access administration remains an area of weakness

We identified six moderate and eight low risk issues related to user access systems administration across four agencies. This included inadequate review of highly privileged/super user account transactions and user access reviews not being performed. These weaknesses increase the risk of users having excessive or unauthorised access to critical financial systems and information.

Average punctuality is above target for Sydney Trains, Ferries and Light Rail, but below target for NSW Trains services

Meeting punctuality targets is a continuing challenge for NSW Trains’ intercity services. Data provided by Transport indicate intercity services achieved an average punctuality performance of 88.8 per cent, which was below the target of 92 per cent. After reaching its punctuality target in 2015–16 for the first time in 13 years, NSW Trains regional services achieved an average of 75 per cent punctuality in 2016–17, which was below the target of 78 per cent.

STA not meeting punctuality targets

Three KPIs measure punctuality performance for all operators. They are to meet 95 per cent of the punctuality target at the start, middle and end of the trip. Financial penalties can be imposed on private bus operators if they do not meet punctuality targets at the start of the trip, but not if the middle or end of trip targets are not met. No financial penalties can be imposed on STA for poor punctuality performance.

In 2015–16, we recommended that TfNSW should include financial penalties for not meeting each punctuality KPI in future contracts with bus operators. Transport advised that they are implementing the recommendation for the start point of trip KPI as part of the contract renewals with STA. Contract renewal is underway for STA Contract Regions Seven (North Sydney, Chatswood, Macquarie Park, Epping, Ryde and Parramatta), Region Eight (Palm Beach, Brookvale, Manly, Mosman and North Sydney) and Region Nine (Bondi Junction, Randwick, Maroubra, Botany, Mascot and Surry Hills).

Eleven of the 14 bus contract regions had full buses

Contract structures in place with the bus operators encourage the Operators to self-report overcrowding information (bus full on route) each month. There are now real-time transport mobile applications available to see how full a bus is before it arrives. However, there are no target measures on crowding for bus operators in any contract regions. Also, the crowding information is not published for buses in any contract region.

In our last two Transport Reports we recommended TfNSW develop target measures on crowding for its bus operators in all regions.

Recommendation

Repeat Issue: TfNSW should develop target measures on crowding for bus operators in all contract regions and publish the results.

Surveys conducted by Transport indicate customer satisfaction exceeded target for all modes of public transport

Between November 2012 and May 2017, the Transport Customer Satisfaction Index (TCSI) showed overall customer satisfaction with all public transport modes improved ten percentage points on a patronage-weighted basis (from 79 per cent to 89 per cent). Customers on ferries continued to be most satisfied, followed by those on Light Rail. Sydney Trains and NSW Trains had fewer complaints in 2016–17.

TfNSW is the lead agency in the Transport cluster. It is responsible for the coordination, funding allocation, policy and planning and other delivery functions for transport services.

TfNSW is controlled by the Department of Transport (the Department). The Department does not control the Independent Transport Safety Regulator, Office of Transport Safety Investigations or Port Authority of New South Wales.

Statutory reporting deadline met

Timely completion of asset valuations can be improved

Asset valuations are complex. The transport cluster has a large, geographically dispersed asset base, requiring significant resources, judgement and estimation techniques to determine fair values. Although most agencies complied with the Treasury’s early close procedures, opportunities exist for further improvements to asset revaluation processes.

The Treasury Policy Paper TPP14–01 provides guidance to agencies to help manage the revaluation process. Some exceptions to this guidance was noted in the current year. TfNSW completed the valuation of buses under finance lease and revaluation of country regional network infrastructure assets after the early close deadline. RailCorp also completed the valuation of its pre-2000 tunnels and earthworks after the early close deadline. The draft results of the revaluations were provided to the Audit Office after 30 June 2017 when the valuations were complete. The main reason for the delays was that the valuation of the tunnels and earthworks required significant effort to determine an appropriate valuation methodology.

Asset revaluations are successful when:

• revaluation projects commence early enough to obtain the results and update the early close proforma financial statements, fixed asset register and general ledger
• all assets are identified, recorded and reconciled before being provided to the valuer and the valuation methodology is agreed and documented
• quality work papers are prepared setting out management's proposed accounting treatments, judgements and assumptions
• management engage with the valuers and interrogate the valuation results with scepticism
• valuation issues are resolved before preparing the year-end financial statement.

NSW Trains and OTSI require a letter of financial support to continue as a going concern

NSW Trains and OTSI required letters of financial support so they could prepare financial statements on a going concern basis. Previously, we recommended these entities explore strategies to make them financially sustainable and not require reliance on letters of financial support.

NSW Trains and OTSI had negative equity positions of $64.1 million and $55,000 respectively at 30 June 2017. These entities receive grants from TfNSW on a year on year basis.

Transport agencies revenue growth and patronage increased

Public transport passenger revenue increased by $93 million (seven per cent) in 2016–17, and patronage increased by 49 million (seven per cent) across all modes of transport. There were some changes in the method of calculating reported patronage between 2016–17 and 2015–16. If the methods had been consistent, the patronage increase would be 0.7 per cent lower at 6.5 per cent.

TfNSW advises that the use of Opal cards enables individual public transport trips to be counted more accurately and consistently than in the past.

The continuing rise in patronage can increase pressure on public transport punctuality.

Rail continues to be the most used mode of public transport earning 65 per cent of total passenger revenue in both 2015–16 and 2016–17. It also accounted for 53 per cent of total public transport patronage in 2016–17. Revenue per trip decreased in all modes except for Rail, where there was a slight increase. This is likely due to Opal fare structure changes from 5 September 2016.

$2.6 million in revenue not collected during 2016–17 through negative balance Opal cards

The number of Opal cards with negative balances increased from 363,000 during 2015–16 (negative $1.3 million) to 776,771 (negative $2.6 million) during 2016–17. While this represents less than 0.2 per cent (0.1 per cent) of total annual passenger revenue during 2016–17, the total balance of lost revenue will continue to grow over time. TfNSW advise the cumulative balance of negative balance Opal Cards is $4.2 million as at 30 June 2017. During 2016–17, 5.9 million Opal Cards were issued, an increase from 4.1 million cards issued in 2015–16.

If a passenger’s card has the minimum value when they tap on they will be able to tap off and the card will go into a negative balance. Revenue from unregistered Opal cards with negative balances cannot be recovered unless the passenger tops-up the card.

TfNSW estimate 22 million trips taken by fare evading passengers

TfNSW estimate that over 22 million trips have been taken by fare evading passengers during 2016–17 across all transport modes. The fare evasion estimate on the Sydney Trains network was 9.7 million trips and 9.4 million trips on buses.

TfNSW conduct fare compliance surveys twice a year (May and November). TfNSW estimates that revenue loss due to issues with fare compliance continues to fall from $120 million in 2012 to $81 million in 2016–17.

Opal fare structure changes

In May 2016, the Independent Pricing and Regulatory Tribunal (IPART) released a report with recommendations to improve fare integration and the financial sustainability of the public transport network.

The NSW Government adopted some of IPART’s recommendations which include:

• introducing a $2 'transfer discount' for adult Opal card customers ($1 for concessions) every time they change modes of transport during a single journey
• changing the Opal Travel Reward to provide a 50 per cent discount on all journeys after eight paid journeys in a week.

The changes commenced on 5 September 2016. Transport advised that the fare structure change does not appear to have impacted overall public transport usage.

From 1 August 2016 paper tickets were no longer sold, with all customers now requiring an Opal card or single use ticket. On Sydney Trains for example, revenue through Opal cards made up 99.5 per cent of all passenger revenue during 2016–17, compared to 85.3 per cent in 2015–16.

Due to increased passenger use of Opal card during 2016–17, and the introduction of the 50 per cent discount, Opal revenue earned per day of the week changed considerably. Data provided by Transport indicate that while average Opal revenue on Monday to Thursdays increased by between 17 and 25 per cent, average Opal revenue on Fridays increased by 62 per cent, Saturdays increased by 78 per cent and Sundays by 108 per cent.

Data provided by Transport indicate nearly 155 million free or half price trips, valued at $301 million were provided by transport operators during 2016–17, $22 million less than 2015–16. The table below shows free trips and half price trips taken by mode of transport in 2016–17, and free trips in 2015–16 and 2014–15.

Passengers travelled for free after the daily and weekly fare caps were reached for the whole of 2016–17. Up until 4 September 2017, passengers also travelled for free after eight trips.

Cost recovery has increased slightly

Between 2015–16 and 2016–17, the overall cost recovery from public transport users increased from 20.6 per cent to 21.3 per cent. This is calculated based on revenue from customers and the cost to government of providing services. Cost recoveries for different modes of transport are shown below.

Bus and ferry cost of services per passenger journey decreased while rail remained stable. Passenger revenue per passenger journey was stable for all transport modes. As a result, cost recovery from users increased in 2016–17 compared to the prior year.

Department of Transport consolidation

The Department is a not-for-profit NSW Government entity which controls all transport agencies in the Transport cluster, except ITSR, OTSI and Port Authority of New South Wales. The controlled entities are consolidated in the financial statements of the Department.

The Department's abridged consolidated financial statements are shown below. Additional financial information on agencies in the Transport cluster appears in Appendix Four.

Appropriations and government contributions increased to fund infrastructure projects

Grants and contributions increased from $1.4 billion in 2015–16 to $2.7 billion in 2016–17. The variation is mainly due to increase in the grants received for Sydney Metro City and Southwest project ($1.0 billion).

Capital appropriations increased by $1.2 billion mainly to fund transport infrastructure projects.

Total other comprehensive income mainly increased due to the revaluation of rail infrastructure system assets of $1.4 billion and the adjustment to defined benefit superannuation schemes of $261 million.

Other losses of $652 million largely represent revaluation decrements on buses under finance lease and land and buildings, impairment losses on road infrastructure assets and losses on asset disposals during the year.

Depreciation and amortisation increased five per cent mainly because of increases in the carrying values of road and rail infrastructure assets.

There was a significant investment in assets of $8.5 billion plus an accounting correction for earthworks and tunnel assets valued at $8.5 billion

At 30 June 2017, non-current assets included $134 billion of property, plant and equipment. During the current year, agencies purchased $8.5 billion of assets, which included $3.8 billion for rail systems and $3.8 billion for roads and maritime infrastructure systems. Asset revaluations added $1.1 billion to asset values.

RailCorp and TfNSW recorded an additional $8.5 billion in total to correct the value of rail tunnels and earthworks at 1 July 2016 by adjusting the opening equity.

Breakdowns and weaknesses in internal controls increase the risk of fraud and error. We report deficiencies in internal controls, matters of governance interest and unresolved issues identified to management and those charged with governance. We do this through our Management Letters, which include our observations, related implications, recommendations and risk ratings.

The table below summarises Management Letter issues across all Transport agencies by category and risk rating.

Category	Risk rating	Issue
Information technology	Moderate: 9 new, 2 repeat  Low: 7 new, 3 repeat	The audits identified opportunities for agencies to improve information technology (IT) processes. We noted issues associated with: user access administration (further details below) password security policies and parameters system change management.
Governance and oversight	Low: 2 new, 1 repeat	The audits identified opportunities for agencies to improve governance and oversight processes. We noted issues associated with the Memorandum of Understanding between Transport cluster agencies and agencies operating with expired contracts.
Internal control deficiencies or improvements	Moderate: 3 new, 1 repeat  Low: 4 new	The audits identified opportunities for agencies to improve internal controls across key business processes, including asset management, journal approval processes, controls surrounding fare overrides and payroll management.
Noncompliance with key legislation or central agency policies	Moderate: 4 new  Low: 3 new, 4 repeat	The audits identified non-compliances with the: Independent Commission Against Corruption Act 1988 (ICAC Act) NSW Government Policy on Official Travel within Australia and Overseas Treasury Circular 16-03 NSW Transport Cluster Code of Conduct and Conflicts of Interest Policy. The noncompliance with the ICAC Act relates to one agency only. Management believed the values involved were insignificant and did not report to ICAC. The agency is currently working with ICAC to develop a reporting guideline for incidents involving insignificant amounts.
Financial reporting	Moderate: 5 new Low: 8 new	The audits identified opportunities for agencies to strengthen financial reporting. Areas of improvement include: improved processes around revaluations and completeness of databases used for valuations timely review of reconciliations and more prompt action to clear reconciling items or other unusual items implementing additional controls to prevent misstatements adequate disclosures in the financial statements allocation and capitalisation of project costs. In section 1.2 of this report we noted that although mandatory early close procedures were performed opportunities for improvement were noted in the revaluation process. Agencies can reduce the number of management letter points in this category if they: plan early and fully complete all mandatory and recommended early close procedures by the due date address the actions identified in their early close letters before preparing the year-end financial statements.

High risk from the consequence and/or likelihood of an event that has had, or may have a negative impact on the entity.

Moderate risk from the consequence and/or likelihood of an event that has had, or may have a negative impact on the entity.

Low risk from the consequence and/or likelihood of an event that has had, or may have a negative impact on the entity.

Information technology controls

User access systems administration remains an area of weakness

We identified 14 management letter issues (6 moderate and 8 low risk) related to user access administration at TfNSW (7 issues), RailCorp (1 issue), Sydney Trains (2 issues) and RMS (4 issues). This included:

• review of highly privileged/super user account transactions not performed effectively
• user access reviews not performed
• terminated users not removed from the system in a timely manner.

These weaknesses increase the risk of users having excessive or unauthorised access to critical financial systems and information, which could compromise the integrity and security of financial data residing in these systems. We will revisit these access issues to ensure they are resolved in the new SAP ERP environment.

RailCorp will transition to TAHE

RailCorp is expected to transition to TAHE from 1 July 2019. The transfer of public transport assets to TAHE is expected to occur over the next few years.

TAHE was announced in the 2015–16 State Budget. TAHE will be a dedicated asset manager to help streamline the delivery of public transport asset management. TAHE is expected to be a commercial for-profit Public Trading Entity that will provide a commercial return to its shareholders.

On 1 July 2017 amendments to the Transport Administration Act 1988 made by Schedule 1 of the Transport Administration Amendment (Transport Entities) Act 2017 were commenced. These amendments established Residual Transport Corporation and established Sydney Trains and NSW Trains as stand-alone entities. Previously Sydney Trains and NSW Trains were subsidiary corporations of RailCorp.

There are milestones planned for transferring assets to TAHE. Several working groups are considering different aspects of the TAHE transition including its status as a for-profit Public Trading Enterprise, which assets to transfer to TAHE, and which ones to retain in existing agencies.

Ensuring on-time running of public transport is a NSW Government State Priority. Public transport services in Sydney are crucial in getting customers to their destinations. Although Sydney is undergoing significant infrastructure construction, public transport services must continue to be punctual.

There are various mobile applications available to help the public with real time punctuality information. For details on these applications, refer to TfNSW's website at https://transportnsw.info/apps.

Rail

A train service is punctual if it stops at all stations as specified in the timetable and arrives at its destination no later than the time shown in the timetable plus an on-time tolerance. The tolerance is five minutes for suburban services, six minutes for intercity services and 10 minutes for regional services.

The punctuality target is 92 per cent for suburban and intercity services and 78 per cent for regional services. The targets apply to trains arriving into Sydney CBD during the morning peak (6am to 10am) and departing Sydney CBD during the afternoon peak (3pm to 7pm).

The 2017 performance audit 'Passenger Rail Punctuality' found rail agencies are well placed to manage the forecast increase in passengers up to 2019. However, based on forecast patronage increases, the rail agencies will find it hard to maintain punctuality after 2019 unless the capacity of the network to carry trains and people is increased significantly. If recent higher than forecast patronage growth continues, the network may struggle to maintain punctuality before 2019.

Transport advised it is currently either delivering or planning rail network upgrades to address current growth and longer-term future demand. This includes investments such as procurement of suburban and intercity trains, Sydney Metro services and further timetable planning into the 2020s. The 2017 performance audit found that given the likely lead times involved with major infrastructure projects, there remains a significant risk of poor punctuality after 2019.

Performance results and targets for rail services are shown in the table below.

Sydney Trains' average punctuality was above target in 2016–17

Data provided by Transport indicate Sydney Trains achieved an average punctuality performance of 93.4 per cent. This is above the target of 92 per cent but is slightly lower than its punctuality performance in 2015–16.

NSW Trains' services punctuality was below target in 2016–17

Meeting punctuality targets is a continuing challenge for NSW Trains’ intercity services. Data provided by Transport indicate intercity services achieved an average punctuality performance of 88.8 per cent which was below the target of 92 per cent. After reaching its punctuality target in 2015–16 for the first time in 13 years, NSW Trains regional services achieved an average of 75 per cent punctuality in 2016–17 which was below the target of 78 per cent.

Transport advises the key factors impacting punctuality included poor levels of reliability from the ageing intercity fleet and network incidents. NSW Trains is managing the New Intercity Fleet project to deliver more than 500 new carriages from 2019.

Afternoon peak intercity services only met the punctuality target on 98 days in the year

Data provided by Transport indicate morning peak intercity services achieved an average punctuality performance of 93 per cent, which was above the target. Afternoon peak intercity services only achieved an average punctuality performance of 85 per cent. In 2016–17, afternoon peak intercity services did not achieve the punctuality target on most days. Afternoon peak intercity services did not achieve the punctuality target on 154 days (61 per cent) out of 252 weekdays in 2016–17, as shown below. 

Rail

Passenger crowding is above benchmark for many morning peak suburban services

To measure crowding Sydney Trains uses a customer load benchmark of 135 per cent of seating capacity for each service. A load above the benchmark is the point beyond which customers experience crowding and service dwell times (duration of stops at stations) which can impact on-time-running. Opal data is now used to continuously estimate the customer load for all train services throughout the year replacing the previous surveys that were based on visual observation performed twice per year (in March and September) for a limited number of services. For this reporting period TfNSW has supplied data from a new model that measures the customer load for all services, this model has replaced the previous surveys. To maintain historical consistency TfNSW provided unaudited data for services arriving at Central Station between 8am to 9am and departing between 5pm to 6pm on 5– 9 September 2016 and 20–24 March 2017.

A new timetable was implemented from Sunday 26 November 2017. A key benefit expected would be increased capacity, with more than 1,500 extra weekly train services.

Transport advises that 25 per cent of suburban services were above the customer load benchmark in the morning peak during the period 5–9 September 2016. The T1 Western line at Redfern had the highest number of services above the customer load benchmark at 50 percent of all services during the one hour peak. In the afternoon peak, six per cent of suburban services were above the customer load benchmark. Services on the T1 Western line at Redfern were the majority of these services.

Transport advises 41 per cent of suburban services were above the customer load benchmark in the morning peak during the period 20–24 March 2017. The lines with the highest number of services above the customer load benchmark were the T1 Western, T4 Illawarra, T2 Inner West lines. Of all services during the peak period T2 Inner West at Redfern had the highest average load of 164 per cent.

In the afternoon peak there were less crowding issues, with 12 per cent of suburban services above the customer load benchmark. The T1 Western line and the T1 Northern via Strathfield accounted for the majority of these services above the benchmark. Of all services during the peak period the T1 Northern via Strathfield had the highest average load of 139 per cent.

Buses

Customers can now use mobile applications to check capacity

There are no target measures on crowding for bus operators in any contract regions. Also, the crowding information is not published for buses in any contract region.

Since September 2016, bus customers can use mobile applications to see how full a bus is before it arrives. This gives them the option to board or wait for the next service. The applications use Opal data to give customers’ smartphones live information about seating availability when planning trips.

TfNSW advises this data is also available from Opal and is used for service planning purposes as an input into determining where additional services are required. TfNSW is working to identify how Opal data can be used to report patronage and provide overcrowding analysis.

In our last two transport reports we recommended TfNSW develop target measures on crowding for its bus operators in all regions.

Eleven of the 14 bus contract regions had full buses

In line with 2015–16, TfNSW advises there were no capacity issues for Sydney metropolitan bus service contracts one (Blacktown, Penrith, Richmond and Windsor), five (Lakemba, Mortdale, Punchbowl and Roselands) and 15 (Campbelltown, Narellan and Camden) during 2016–17.

Bus operators reported close to 9,800 full buses during 2016–17. Forty-six per cent of these were in Contract Region 3 (Fairfield, Cabramatta, Liverpool and Wetherill Park) where reported full buses rose from 3,360 in 2015–16 to 4,513 in 2016–17. TfNSW advises that the T80 Parramatta to Liverpool service continues to operate to capacity. TfNSW advised double deck buses and shoulder peak services will be introduced in 2017–18 to support a more even spread of customers. Twenty-eight per cent of reported full buses related to Contract Region 4 (Blacktown, Rouse Hill, Castle Hill, Dural and Parramatta), however the number of full buses reported decreased since last year. TfNSW advised that additional shoulder peak services on City and Macquarie Park routes are in operation, resulting in a more even spread of customers.

Ferries

Transport advises that during the week surveyed, ferry services on key routes during the morning peak were below capacity.

Light rail

TfNSW reported that crowding on light rail services was within target. Target crowding on light rail was reduced in 2016–17 from six people per square metre to four people.

A NSW Premier’s priority is to improve government services by improving customer satisfaction with key government services every year. TfNSW performs quarterly customer satisfaction surveys across transport modes. In May 2017, interviewers gathered information on satisfaction levels by surveying over 28,000 randomly selected customers on board all modes of public transport. TfNSW performs quarterly customer satisfaction surveys across transport modes.

Between November 2012 and May 2017, the Transport Customer Satisfaction Index (TCSI) showed overall customer satisfaction with all public transport modes improved ten percentage points on a patronage-weighted basis (from 79.4 per cent to 89.6 per cent). The TCSI measures the proportion of transport users partly satisfied to very satisfied with the overall service they received. The target benchmark is 85 per cent of customers satisfied.

Transport cluster manages many of the State high profile/high risk projects

Infrastructure NSW issued the Infrastructure Investor Assurance Framework (the framework) in 2016. The framework is designed to ensure the State’s capital projects are effectively developed and delivered on time, on budget and in accordance with the government’s objectives. The framework has four Tiers with different levels of reporting and minimum mandatory gateway reviews. Tier 1 – High Profile/High Risk Projects attract the highest level of reporting and assurance. The Transport cluster manages many of the Tier 1 projects reported and monitored under the framework.

The 2016–17 capital budget for the Transport cluster was $7.4 billion ($5.7 billion in 2015–16) with $4.2 billion allocated to major road projects and $0.8 billion to minor works and capital maintenance.

Major revisions to transport project budgets and/or completion dates since original expectations are summarised below.

WestConnex

WestConnex is an integrated public transport and critical road infrastructure solution that will be delivered in three stages:

• Stage one: M4 widening
• Stage two: double road capacity along the M5 East corridor and underground tunnels running between St Peters and Kingsgrove
• Stage three: M4 to M5 link.

Although TfNSW expect this project to be completed on schedule in mid-2023, there were two budget revisions since 2014. The project budget was increased to $15.4 billion in May 2015 and a further increase of $1.4 billion in October 2015 due to changes to the scope of work. Transport advises the changes include an extension of stage three to Anzac Bridge, Victoria Road and the future connection of the Western Harbour Tunnel and Beaches Link.

The Audit Office has included an audit on Westconnex in the 2018–20 forward performance audit program.

Below is the development map.

Data provided by Transport indicate rail passenger injuries fell 12 per cent in 2016–17, from 1,133 to 1,001, and bus passenger injuries fell 23 per cent from 537 to 416.

Ferry passenger injuries increased from six in 2015–16 to 11 in 2016–17 due to a significant incident at Circular Quay in October 2016 where a ferry collided with the backboard on the wharf. The collision resulted in five passengers being taken to hospital.

Passenger safety performance measures the number of passenger injuries and fatalities that occurred because of service operations. Non-passenger related injuries and fatalities may occur, but can be outside the operators' control.

The number of passenger injuries per 100,000 passenger journeys by mode of transport over the last five years is shown in the graph below.