The regional rail network is a significant state asset. To be managed effectively, the network needs a sound asset management framework and strategy, based on a robust understanding of the condition of the existing assets and their capacity, capability and usage. The strategy should take into account available resources, funding constraints and competing service and asset priorities.

Under a services agreement with PTV, V/Line is required to manage and maintain regional rail infrastructure, including the rolling stock used for passenger services.

An efficient railway system maximises revenues and minimises costs, while providing the desired level of service.

V/Line's mission is to deliver customer-focused, safe and efficient regional passenger transport and rail freight services.

V/Line must meet key service criteria for the operational performance of its rail passenger services, specified in a services agreement with PTV as follows:

1.1 V/Line network and services

V/Line offers an important service to regional communities—it provides access to services, education and employment across the state. V/Line operates and maintains a fleet of 372 passenger trains and a network of 3 520 kilometres of rail track for passenger services (1 600 kilometres) and freight services (1 920 kilometres).

In 2015–16, V/Line carried 17.7 million passengers—16.3 million on trains and 1.4 million on V/Line-branded coaches—and operated:

V/Line offers an important service to regional communities—it provides Victorians with access to services, education and employment across the state. Closer to Melbourne, V/Line also services many rapidly growing outer suburbs, and demand for these services is increasing.

V/Line operates and maintains a fleet of 372 passenger trains and carriages, and 3 520 kilometres of rail track used by passenger and freight services. More than 1 250 V/Line-branded coach services also operate every week, connecting the rail network with regional communities not serviced by trains.

Introduction

In accordance with section 16(3) of the Audit Act 1994, a copy of this report, or relevant extracts from the report, was provided to the Department of Health & Human Services and named public hospitals with a request for submissions or comments.

The submissions and comments provided are not subject to audit nor the evidentiary standards required to reach an audit conclusion. Responsibility for the accuracy, fairness and balance of those comments rests solely with the agency head.

Responses were received as follows:

Accountability

Responsibility on public sector entities to achieve their objectives, with regard to reliability of financial reporting, effectiveness and efficiency of operations, compliance with applicable laws, and reporting to interested parties.

Activity-based funding

Method of funding allocation based on unit prices for each activity undertaken, and the number of that activity to be performed by an entity.

Figure C1 shows the indicators used in assessing the financial sustainability risks of public hospitals in Part 2 of this report. These indicators should be considered collectively, and are more useful when assessed over time as part of a trend analysis.

Figure C1
Financial sustainability risk indicators

Figure B1 shows the risk ratings applied to management letter points raised during an audit review.

Figure B1
Risk definitions applied to issues reported in audit management letters

As detailed in Part 1, to assist with our analysis of the public health sector, the 87 consolidated public hospitals have been split into four cohorts, based on the definitions shown in Figure 1C.

Figure A1 lists the public hospitals that make up each category.

Figure A1
Public hospital categories