Additional disclosures

Additional financial disclosures

Financial targets: actual results versus budget targets

The following table provides a comparison of the financial targets and outcomes against criteria included in the Resource Agreement between the Commissioner of Main Roads, Minister of Transport and the Treasurer.

1. As specified in the Budgets Statements.
2. Further explanations are contained in Note 10 Explanatory Statements to the financial statements.
   1. The variation in ‘Total cost of services’ is due to payments for services and contracts being lower than anticipated through delays in the delivery of minor works and other programs.
   2. The variation in ‘Net cost of services’ is mainly due to lower than anticipated Commonwealth grants because of delays in approving project proposal reports by the Commonwealth Government.
   3. The variation in ‘Salary expense limit’ is mainly due to salary provision for back pay of 4.25% salary increase effective on and from 1 February 2024, based on the published Wage Price Index and accrued leave expense was higher than anticipated due to additional staff from the transition of the maintenance function in-house.
   4. An additional $500.020 million was borrowed from the Western Australian Treasury Corporation. This was because of lower than anticipated Commonwealth grants due to delays in approving project proposal reports by the Commonwealth Government.

Capital works

All disclosures in relation to capital works are included in the Financial Statements and Notes. Our annual Strategic Asset Plan details our 10-year investment needs and drivers. The Strategic Asset Plan adheres to the Department of Treasury’s Strategic Asset Management Framework.

Each major capital project follows the national Austroads project evaluation methodology where a benefit cost ratio (BCR) is calculated incorporating quantifiable economic data and is supplemented by simplified economic, environmental and social assessments. The BCR records information on the benefits of a project on travel time savings, vehicle operating costs and smoother travel, safety and maintenance. Other benefits and costs are considered via a multi-criteria analysis.

Capital works financial progress is reported to Corporate Executive monthly. Indirect economic benefits are now being measured to assess the wider positive impacts delivered to the economy through enabling infrastructure. We have adopted a postproject evaluation framework endorsed by Australian Transport Assessment and Planning and is a key feature of the Infrastructure Sustainability Council of Australia’s Rating Tool, v2.1 to measure project success.

Ethical procurement

Our procurement processes comply with the Western Australian Procurement Act 2020 and Western Australian Procurement Rules and continue to be certified to ISO 9001:2015. An ongoing compliance program is in place to ensure these policies and procedures are adhered to. Our Supply and Transport Branch provides independent governance over all our procurements and related processes. They periodically review a range of data analytics dashboards that enhances the compliance program and addresses any findings. External probity auditors are engaged to observe the procurement process for all major capital works and complex or sensitive professional services procurements. This ensures principles of probity, equity and accountability are adhered to.

Social and sustainable procurement

The Western Australian Social Procurement Framework, which came into effect on 1 June 2021, was introduced by the government to improve social, economic, and environmental benefits in WA communities by leveraging opportunities through state agencies’ procurement activity. The Framework brings together all the state’s social and sustainability procurement policies and, in conjunction with the Social Procurement Framework Practice Guide, gives a clear message that social procurement forms part of value for money decision-making. We have a range of practices and internal policies in place to deliver social and sustainable procurement outcomes that exceed the state’s requirements.

We apply the government’s Western Australian Buy Local Policy 2022 in the evaluation of tenders to provide local businesses with enhanced access to the government market through the application of a range of initiatives and price preferences. The successful contractor is required to report monthly on buy local commitments. The Western Australian Industry Participation Strategy (WAIPS) provides locally based businesses with better opportunity for accessing and competing for Western Australian Government supply contracts. Its focus is mainly on small- and mediumsized enterprises. WAIPS is applied to all contracts that meet the value thresholds and tenderers are required to submit participation plans to detail employment and local subcontracting opportunities that will arise if awarded the contract.

We also apply the state Aboriginal Procurement Policy (APP) which mandates progressive targets for the award of WA Government contracts to Aboriginal businesses and Aboriginal Community-Controlled Organisations. During the financial year, we awarded a total of 196 contracts with an estimated value of $886.7 million. Of these, and in accordance with the Western Australian Procurement Rules for state agencies, 39 of the contracts totalling an estimated $39.36 million were awarded to registered Aboriginal businesses. This equates to 19.9% of the number of contracts awarded, which exceeds the APP minimum target of 4%.

Main Roads has been mandating minimum targets for Aboriginal employment and business engagement since 2017. During the year, more than 550,000 hours were worked by Aboriginal people on our contracts, with an Aboriginal business spend of $210 million.

Procurement grievances

Our procedure for dealing with procurement grievances is referenced in all tender documents and is accessible from our website. Endorsed by the Western Australia Road and Rail Construction and Maintenance Industry Advisory Group, the procedure provides for a customer-focused, fair, structured and relationship-based approach to reviewing grievances lodged by contractors. Our procurement processes are fair and equitable. One unsubstantiated grievance was received during the year.

Unauthorised use of credit cards

During the financial year, we held 728 corporate credit cards which had 35,456 credit card transactions totalling $12,331,179.91. Of these, 15 transactions totalling $1,994.58 were found to be for personal expenditure. All corporate credit card transactions are reviewed for personal use by our incurring and certifying officers during statement processing. All transactions for personal expenditure were found to be accidental use of the corporate card instead of a personal card and have been repaid.

Pricing policies of services provided

Our supply of goods and services represents works and services carried out for other public sector and private bodies on a cost recovery basis. Details are available in the notes to the Financial Statements. Relevant pricing policies we set are developed in accordance with the Department of Treasury’s Costing and Pricing Government Services Guidelines.

Statement of expenditure

In accordance with Section 175ZE of the Electoral Act 1907, Main Roads Western Australia incurred $153,000 during 2023-24 in advertising, market research, polling, direct mail and media advertising. Expenditure was incurred in the following areas:

Additional environmental and sustainability disclosures

Infrastructure sustainability rating status

We use the Infrastructure Sustainability (IS) Rating Scheme to evaluate sustainability within our highest value major projects. We have mandated that all projects greater than $100 million will be formally registered to undergo an IS rating. The table below indicates the status of our registered ratings across the project phases of planning, development, design, and construction.

We are seeking to expand sustainability practice within our projects. Our participation as a Pioneer Partner in the Infrastructure Sustainability Councils newest rating tool, IS Essentials has helped to facilitate a sustainability rating scheme suitable for smaller infrastructure projects. This can lead to improved outcomes in the civil construction sector. We currently have two projects registered for IS Essentials: Smart Freeways Mitchell Southbound Reid Highway to Vincent Street; and the Causeway Pedestrian and Cyclist Bridges.

Emissions by type due to operations and congestion

As part of a commitment to develop a data-driven approach to addressing congestion, based around agreed performance metrics and targets, a cloud-based data factory was developed to collate and report road network performance data across major roads in metropolitan Perth. The system collates speed and volume information from multiple data sources across the 4,500 links, which currently represent the Perth major road network. Data is recorded on each link for every 15-minute interval dating back to January 2013. This system has been named the Network Performance Reporting System (NetPReS). Data has been used to estimate emissions trends on state roads and significant local roads in the Perth metropolitan area. We act to directly manage the traffic flow of vehicles. This has consequences for overall environmental impacts, including carbon emissions and air quality, from use of the road network.

The following tables reflect the impact that the roads we directly manage are having on energy use and emissions, which give an indication of the impact to air quality.

Annual emissions due to operations
Estimates for Perth Metropolitan State Road Network and significant local roads

Annual emissions due to congestion
Estimates for Perth Metropolitan State Road Network and significant local roads

Emissions metrics
Scope 1, 2 and 3

* Note: Air travel, project and maintenance fuel usage and waste are Scope 3 emissions

Scope 1, 2 and 3

Energy use by source

Intensity indicators

Imported road construction materials

Imported recycled and reused construction materials

Waste materials to landfill (Waste)

Materials recycled

Data is based on the calendar year

Waste management: roadsides, buildings and facilities

In areas as varied as design, construction, operation and management we continue to incorporate improved waste management practices in our offices and depots. Green Star and 5-Star NABERS ratings, the National Australian Built Environment Rating System were achieved for incorporating waste management principles in design and construction of offices and depots. Construction contractors are required to follow specific waste management practices.

From an operational perspective, separation of general office waste and recyclables is encouraged by providing paper recycling bins – 240 litre bins in utility areas and smaller bins in office spaces, as well as battery recycling containers and printer cartridge recycling. Documents with sensitive or confidential information are collected in secure bins, shredded, and recycled. Waste collection contractors provide reports on the volumes of general and recyclable waste collected.

Our head office at the Don Aitken Centre has further improved the waste separation strategy by having centralised collection points for organics, co-mingled recycling and general waste. Some offices have removed individual waste bins at workstations, encouraging staff to separate their waste at the collection points. Organics recycling is encouraged at other offices where the collection of this waste stream is available.

The reduction of single use plastics continues, with the use of alternative bin liners, and biodegradable paper cups. Waste avoidance strategies in our office facilities include:

• setting printers and photocopiers to print on both sides by default.
• encouraging electronic files rather than hard copy.
• encouraging the use of cups, crockery, and cutlery rather than disposable products.
• providing mechanical hand dryers as an alternative to paper towel.

Our operational depots also support good practice waste management initiatives by separating different waste categories and either recycling or disposing as appropriate. Depot waste may be a by-product of depot activities, such as from laboratories or temporary storage of waste from road projects or maintenance. Our depots have waste management plans for asbestos, concrete, steel, aluminium, batteries, and waste oil. Recycling and disposal opportunities depend on the availability of these services in the region the depot is located.

We collaborate with community groups, state and local government agencies to reduce litter and illegal dumping. We continue to implement Main Roads State-Wide Litter Strategy that supports the Litter Prevention Strategy for Western Australia 2020-25. Main Roads litter strategy focuses on efforts in the following areas and aspects: roadsides, rest areas, loose loads, abandoned vehicles and illegal dumping. Implementing strategy involves boosting public awareness as well as increasing community buy-in and participation in litter reduction programs and behaviours. To facilitate this objective, we provide a $30,000 annual sponsorship to Western Australia’s Keep Australia Beautiful Council for resources enabling volunteers to undertake litter collection activities.

Stakeholder map – stakeholder inclusiveness

We engage with two broad categories of stakeholders, adjusting our engagement approach to meet their needs.

Project stakeholders are a person, business, organisation or group, interested in or impacted by a project or initiative we are undertaking. Initial identification occurs during the planning stages of a project and new stakeholders are identified through the project lifecycle based on their interest/impact. Project stakeholders can vary from project to project and are tracked and managed in our customer relationship management system CONNECT.

Corporate stakeholders are a person, business, organisation or group interested in or impacted by our agency who may partner with us and influence, or hamper the work we do. Corporate stakeholders are identified using an annual process that involves internal stakeholders across the entire organisation.

Timing of the process aligns with our business planning cycle, to ensure that stakeholder engagement is a key enabler of business plans at all levels.

Our approach to stakeholder engagement

We have adopted the AA1000 Stakeholder Engagement Standard 2015 (AA1000SES) to help us design, implement and assess quality stakeholder engagement that delivers integrated, sustainable outcomes.

Our engagement principles of inclusivity, materiality and responsiveness are based on AA1000SES. We have also adopted the principle of completeness to align with our commitment to sustainability, driven by the Global Reporting Initiative (GRI).

The AA1000SES principles underpin our engagement process to ensure we can effectively manage expectations about how feedback and involvement will influence decision-making, whilst considering project, commercial and political realities.

Frequency of engagement with each project stakeholder group depends on the specific concern or method of engagement identified in project communications and the engagement strategy. Each engagement is tracked and managed through our customer relationship management system. Corporate stakeholder type and frequency of engagement are identified in the annual Corporate Stakeholder Engagement Action Plan and depend on the stakeholder concern and priority level.

Project stakeholder concerns are unique to each project and are identified during the stakeholder engagement planning process. These concerns are determined using a desktop approach that interrogates media, ministerial and customer data sources, and usually depend on the risks associated with the project. Responses to topics and concerns are articulated in the project Communication and Engagement Strategy, which differs from project to project.

Corporate stakeholder concerns are determined using a biennial materiality review, performed in accordance with the Global Reporting Initiative (GRI). The review draws from our corporate and legislative requirements, key risks, media and ministerial topics and peer reporting practices to determine what is important to our stakeholders.

Additional governance disclosures

Our Legislation

The Main Roads Act 1930 (WA) establishes the Commissioner of Main Roads as a body corporate and sets out the powers and duties of the office. The Act was amended in late 2023. Amendments facilitate Main Roads operations and functions, creating an improved framework for a modern road authority’s services. Main Roads is currently developing regulations, using some of the powers contained in section 37 of the Act and through a thorough and consultative process. The Act also has subsidiary legislation under it, namely. Main Roads (General) Regulations 2023, Main Roads (Control of Advertisements) Regulations 1996 covering powers with respect to advertisements in or near the road reserve and the Main Roads (Engineering Cadets) Regulations 1982 covering selection of cadets.

Additional guidance, and empowerment for Main Roads comes from legislation outlined here:

• Road Traffic (Events on Roads) Regulations 1991 sets out approvals required from the Commissioner of Main Roads or their delegated authority with respect to events on roads
• The Land Administration Act 1997 provides powers for the resumption of and entry onto land
• Regulation 291 of the Road Traffic Code 2000 allows Main Roads to temporarily close a road subject to certain conditions
• Regulation 297 of the Road Traffic Code 2000 provides the Commissioner with the power to erect road signs, traffic signals and install road marking, and allow an authorised body to do certain related things
• Section 131 of the Road Traffic (Administration) Act 2008 makes those responsible for damage to the road jointly and severally liable to Main Roads for damages
• Section 33 of the Road Traffic (Vehicles) Act 2012 provides the Commissioner with the authority to modify a mass or dimension requirement, as provided in the Regulations
• Section 40 of the Road Traffic (Vehicles) Act 2012 provides the Commissioner with the authority to give an access approval for a complying restricted access vehicle to be on a road
• Section 44 of the Road Traffic (Vehicles) Act 2012 provides for the accreditation of persons in relation to certain heavy vehicles by the Commissioner of Main Roads for the purposes of sections 33(4) and 40(2).
• Surveillance Devices Regulations 1999 regulation 6.1 (da) which empowers authorised public authorities to monitor traffic on a road as defined in section 6 of the Main Roads Act.

We have controls in place ensuring our compliance with other legislation and regulations.

Ministerial directives

No directives were issued by the Minister for Transport under section 19(b) of the Main Roads Act, as amended.

Integrated management system

Our integrated management system brings together our third-party certified systems and processes into a single framework. During the year we undertook a surveillance audit confirming we continue to comply with all requirements related to ISO 9001:2015; ISO 14001:2015; ISO 45001:18 and the Australian Government Building and Construction Work Health and Safety Accreditation Scheme.

Freedom of information

The Freedom of Information Act 1992 (WA) gives the public a general right to apply for access to documents held by government agencies. An information statement in accordance with the requirements of the FOI Act is available on our website. This statement provides a guide on how to apply for access to documents, as well as information about documents that may be available outside of the FOI process. During the year, we processed 44 FOI applications. Enquiries about FOI can be emailed to: foi@mainroads.wa.gov.au.

Customer privacy

As with all Western Australian Government agencies we are not subject to the Privacy Act 1988 (Cth) and to date Western Australia does not have an equivalent statute in force. However, where possible, Main Roads adheres to the Australian Privacy Principles set out in Schedule 1 of the Privacy Act. Work is continuing by Department of Premier and Cabinet to introduce new whole-of-government privacy legislation and new, responsible information-sharing legislation for the Western Australian public sector. Main Roads values the privacy of our customers and complies with our CCTV Usage Policy that outlines appropriate use; we do not automatically record on our CCTV cameras. Main Roads also operates in accordance with the Surveillance Devices Regulations 1999 (WA) which were amended in late 2023. Our approach to privacy is available on our website.

Public interest disclosures

We are committed to the aims and objectives of the Public Interest Disclosure Act 2003 (WA). We recognise the value and importance of contributions by staff to enhance administrative and management practices and strongly support disclosures being made by staff regarding improper conduct. The Public Interest Disclosure Guidelines are available on iRoads for staff.

Conflicts of interest and acceptance of gifts

Our Code of Conduct and Integrity Framework requires all employees to ensure personal, financial and political interests do not conflict with their public duty or ability to perform in an impartial manner. Where a conflict of interest occurs, it should always be resolved in favour of the public interest rather than personal interest.

All employees have a responsibility to declare all conflicts of interest, whether actual, potential or perceived, for recording on the confidential Conflict of Interest Register. The register is maintained by our Manager Legal and Insurance Services. Each Corporate Executive member signs a representation memorandum addressed to the managing director which includes a section on personal interests in our contracts. The chief finance officer, managing director and accountable authority then sign a management representation letter to the Auditor General addressing various categories, including internal controls and risk management.

To ensure compliance with the Australian Accounting Standard AASB 124, a related party transaction disclosure is signed by all senior officers declaring personal details, controlling interests and transactional details. These records are audited to ensure internal control processes are consistently managed.

Our Integrity Framework states that employees and contract personnel must not:

• be influenced by, or perceived to be influenced by the offer or receipt of gifts, benefits or hospitality
• engage in actions where a conflict of interest, whether perceived, potential or actual arises in the course of their duty or contract obligations.

All offers of gifts, benefits and hospitality must be declared and recorded in the Gifts and Benefits Register which is also maintained by the Manager Legal and Insurance Services.

All offers of gifts, benefits and hospitality must be declared and recorded in the gifts and benefits register which is also maintained by the manager Legal and Insurance Services.