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Appendix 11 - Annual Report of the Networking the Nation (NTN) Board

1. ACTIVITIES DURING 2002-03
1.1 A new phase of activity

The 2002-03 year was not typical of the NTN Board's past operations. In recognition of the approaching sunset date for a number of NTN Programs⁵, the Board's emphasis switched from approving large numbers of new grants to dealing with the closing stages of the funding Program.

A key concern of the Board arose from the situation emerging in relation to the BARN Program. The types of applications seeking funding did not appear to the Board to be meeting the greatest needs in regional Australia and, worryingly, appeared to advance only marginal business cases in support of the large funding being sought. The Board therefore proposed to the Minister that the unallocated funds be redirected to higher priority needs, in particular to improve Internet access for customers in rural and remote areas not otherwise benefiting from the improved access available to extended zone customers. The Board welcomes the Government's decision to redirect the uncommitted BARN funds to the Higher Bandwidth Incentive Scheme and other aspects of the National Broadband Strategy. The Board notes this Scheme is consistent with its own views on meeting priority needs.

Consistent with the closing phase of the Program, more emphasis was also placed on compliance matters.

A Compliance Team was established in the Secretariat in January 2003 to take responsibility for managing those projects that had outstanding reports and those that had not satisfactorily acquitted the funds provided. The Team also implements the NTN audit strategy and manages the NTN risk register. The Team has successfully brought to conclusion 40 previously non-complying projects and is currently pursuing 32 with outstanding reporting obligations. One project has been terminated.

Audit reviews were undertaken on 28 funding recipients during the 2002-03 financial year. The reviews were performed by the Department's internal auditors KPMG or externally engaged auditors. The audit reviews seek to provide assurance that funding recipients are expending Commonwealth funds appropriately. Funding recipients to be reviewed are selected in most cases by random, and in some cases where the Secretariat has some concern with their performance.

More reviews are planned for the 2003-04 financial year. In addition, the NTN Secretariat undertook site visits and compliance checks of 259 projects during the 2002-03 financial year.

Detailed financial investigations were undertaken by KPMG of a grantee in Victoria and one in South Australia. Discussions are continuing in regard to these projects with the Department's legal advisors and the South Australian Commissioner of Consumer and Business Affairs.

The Secretariat has also taken action to improve the quality of audited financial statements provided by grantees at the conclusion of funding. Incidences of sub-standard audits have been referred to the Australian Securities and Investment Commission.

As a result of reviews by the ANAO and consultants engaged by the Secretariat into the Secretariat's administration practices some further changes will be implemented for the 2003-04 financial year.

⁵^{The NTN programs include: NTN General Fund (also known as the Regional Telecommunications Infrastructure Fund (RTIF)); Building Additional Regional Networks (BARN); Remote and Isolated Islands Program; Internet Access Program; Extended Mobile Coverage; and Local Government Program. The General Fund Program was due to close on 30 June 2003, however the Government agreed to extend it to 30 June 2004 as a precaution against projects not completing within the time available. The Remote and Isolated Island Fund, Internet Access Program and the Extended Mobile Coverage Program completed on 30 June 2003. The Local Government Program is scheduled to complete funding by 30 June 2004 and the BARN Program by 30 June 2005.}

1.2 ANAO review

During the 2002-03 financial year the ANAO undertook performance audits of the DCITA administered NTN Program and the DOTARS administered RTC Program. Both Programs are funded through the proceeds from the Sale of Telstra equity and target rural, regional and remote Australia. The objectives of the audit were to provide an assurance to Parliament that:

DCITA and DOTARS are administering discretionary telecommunications grant Programs, in particular the monitoring and evaluation of grant Programs, in a transparent and rigorous manner that reflects compliance with internal guidelines and best practice;
the reporting and performance information that is available in relation to telecommunications grant s provides sufficient accountability to meet the requirements of stakeholders; and
DCITA has implemented the recommendations of Audit Report No. 43,1998-99, Networking the Nation.

At the end of this financial year the ANAO had not yet finalised the Audit Report. It is expected the Report will be tabled in Parliament in late August 2003.

1.3 The NTN Board

An independent Board, appointed by the Commonwealth was responsible for all funding decisions. The Board was responsible for determining the activities and projects to be funded and that the funding falls within the overall State and Territory funding limits. The Minister was not involved in decisions on individual projects.

Board Members are:

The Rt Hon Doug Anthony (Chair)
Adjunct Professor Gerry Anderson, Information Technology and Business, University of Ballarat
Mrs Lindsay MacDonald, a Queensland wool grower and telecommunications activist
Ms Johanna Plante, Chief Executive Officer of the Australian Communications Industry Forum Limited
Ms Eleanor Scholz, manager of a regional South Australian telecentre

The Board members term of appointment expire on 11 March 2004 and the Chair on 30 June 2004.

During the 2002-03 financial year, the Board members received the following Awards:

The Rt Hon Doug Anthony

Queen's Birthday Honours-Companion of the General Division (AC) for services to the Parliament and trade and leadership and dedication to rural communities.
Centenary Medal-to commemorate the Centenary of Federation and to honour the contribution made to Australian society and government.

Ms Johanna Plante

The Sir Ernest Fisk Award-The CommsWorld Telecomms Awards 2002 are the industry awards ceremony for Australia and New Zealand, with award categories selected to recognise the various aspects of the telecommunications industry. Ms Plante received this award for significant individual contribution to the telecommunications industry.
Centenary Medal-to commemorate the Centenary of Federation and to honour the contribution made to Australian society and government.

Professor Gerry Anderson

Centenary Medal-to commemorate the Centenary of Federation and to honour the contribution made to Australian society and government.

Mrs Lindsay MacDonald

Regional Australia Individual Award-for Outstanding Individual Contribution to the Development of ICT in Regional Australia.
Centenary Medal-to commemorate the Centenary of Federation and to honour the contribution made to Australian society and government.

1.4 Board meetings

The dates of Board meetings or teleconferences convened during 2002-03 were as follows:

2 August 2002 (teleconference)
13-14 November 2002 (minor funding meeting)
30 April 2003 (teleconference)
10 June 2003 (teleconference)

Only one face-to-face meeting was held during the 2002-03 financial year as a result of the need to wait until the Government's response to the Regional Telecommunications Inquiry was made public.

1.5 Board state visit and attendance at conferences

During the year the NTN Board members attended a number of project launches, regional conferences and other events including:

Launch of the NSW Uki and Tyalgum Centres under the Community Technology Centre Program 7 November 2002
Speaker at Conference of Public Internet Access Site Managers-Ballarat, 5-7 February 2003
Launch of the QLD Kingaroy South Burnett IT Centre with visits to projects in Yarraman and Toowoomba.
Launch of the Mackay Regionlink Portal, March 2003
Launch of the QLD Prisons Access Project, Legal Aid, May 2003
Speaker at 'Communities Working Together' Conference in Ballarat, February 2003
Three Board members attended the Australian Telecommunications User Group 2003 Canberra Regional Conference-Bits and Bytes from Bruny Island to Broome-2020 Vision in Canberra. 25-16 May 2003

1.6 Board approvals

In 2002-03 the Board approved $4 691 033 in funding for 14 projects and ten variations to existing projects across Australia. A list of new projects and variations approved during 2002-03 is provided at Annex C, Annex D provides general statistics on applications by Program and by State and Territory for 2002-03, Annex E provides information on the Current Status of NTN Funds and Annex F lists the number of Active, Terminated and Acquitted Projects by State and Territory.

1.7 Project acquittals

As at 30 June 2003, there have been 390 projects acquitted, that is, all reports and payments have been finalised. In this financial year, 218 projects have been acquitted.

1.8 Consultancies

Over the year, a number of consultancies have been commissioned, to assist with various aspects of the Program. Details of consultancies are outlined in Annex G.

1.9 Promotion

During the year NTN was promoted through a range of events and activities including field visits by Board and Secretariat members, presentation to key conferences, media interviews and meetings with stakeholders. In addition, information kits containing fact sheets about the various aspects of the Program were updated and distributed, the website (www.dcita.gov.au/ntn) was updated, funding decisions were announced, and the toll free 1800 number was available for people interested in the Program.

2. EVALUATION

2.1 Purpose and scope

A revised strategy to evaluate the NTN Program was approved during the year. The strategy is based on the Australian National Audit Office's (ANAO) Better Practice Guide on Grants Administration (Evaluation section) and the Department of Finance and Administration's Program Evaluation: A Guide for Program Managers.

The purpose of the NTN Evaluation is to provide reliable and robust information on:

the effectiveness and efficiency of the NTN Program in achieving the desired outputs and outcomes;
the extent to which community needs have been met through the NTN Program; and the policy lessons learned from the Program; and
assessment of the contributions made by NTN to regional telecommunications infrastructure and services.

The key components of the evaluation are:

reporting and mapping of projects (where projects are located and what they have achieved) when this work is completed it will be accessible through the www.newconnections.gov.au website;
the efficiency of Program administration. The outputs from the Program, eg number of mobile phone towers, computers, public internet access facilities, videoconferencing facilities etc. A first report (Goods and Services made available by NTN projects to local communities as of 1 July 2002) has been completed and made public. Funding recipients will complete a second questionnaire by August 2003 to provide additional data to Report on the overall contributions made by communities to the Program;
the extent to which the Government's objectives have been achieved and other impacts of the NTN Program. A report is being prepared by the Department's Communications, Research Unit (CRU) and is expected to be delivered in December 2003; and
identifying Program gaps and lessons learnt that will assist with future regional initiatives. This work will be completed when the Program funding has been completed.

2.2 Efficiency of program administration

The Program's administrative processes were reviewed by Origin Consulting in order to assess the efficiency and effectiveness of the administration of NTN against the principles set out in the ANAO Best Practice Guide to Grants Management (May 2002). In addition, Walter Turnbull Associates reported on their assessment of the risk management practices of the Program. The Review has been completed and concludes that overall, NTN compares well against the ANAO standards.

The Review also noted there was scope for strengthening the monitoring guidance framework (including the development of a Monitoring Guide and standards for Case Managers); more directly monitoring project milestones; and better documentation of monitoring activity by staff. Relevant recommendations will be implemented by the Secretariat to ensure the monitoring of projects is effectively maintained.

3. PROGRAM ACHIEVEMENTS

Broadly, the NTN Programs have provided funding for projects that seek to improve access to telecommunications services for rural, regional and remote Australians, reduce disparities between metropolitan and country communities and support infrastructure provision.

Projects include:

planning studies
fixed communications links
websites and portals
software development
training
videoconferencing
internet service providers and points of presence
public Internet access facilities
support/helpline and technical assistance
awareness raising through demonstrations and visits to community, business, educational and individuals in remote locations
online services-purchasing and information
increased mobile telephony coverage

The first of a series of reports recording the Goods and Services made available by NTN projects to local communities was prepared this year.⁶ The highlights of the first report are:

A total of around $180 million had been allocated (as at 30 June 2002) to recipients from the specified NTN Programs, of which around $133 million had been paid to the grantees as of 1 July 2002.
Funding recipients have contributed a further $84 million; 'other sources' eg users, local councils and community contributions have contributed a further $49 million; hence the NTN Programs have been increased by more than 60 per cent.
Public internet access facilities⁷ have been installed in more than 1 400 new locations and these have had over 610 000 users.
NTN funding has supported the establishment of more than 111 websites/portals and these have been visited by people more than 27.5 million times.
The project managers have indicated that NTN funded projects have created around 730 full time employment positions and 830 part time positions.
Around 290 towns received local call dial-up access by the Internet service providers (ISPs) for the first time with the assistance of NTN funding. Local access to Internet Points of Presence are no longer funded due to the commercial offering of a product 'megapop' which provides Internet access at local call rates.
Around 220 projects offered training and available usage figures indicate that more than 171 700 people were trained.
A total of 229 mobile phone base stations and 55 repeaters have been supported through NTN permitting increased coverage for local residents, tourists, emergency and road services at a cost of over $40 million.

A driving impetus within the NTN Program has been the focus on sustainable, needs driven projects that build demand within communities. Public internet access facilities funded under the NTN Program have been instrumental in building community awareness of the latest IT developments and providing a local venue for training and skills development and other support services.

The Joint Commonwealth/NSW Community Technology Centre Program received around $9.55 million in funding to help establish and operate a target of 55 new Community Technology Centres (CTCs) throughout rural and regional NSW. The CTCs are promoting and providing Internet access and training to their local communities, as well as a range of business and government services, many of which have been brokered and supported by the NSW State Government's Office of Information Technology. These centres are delivering a strategic range of training and videoconferencing services in their communities to maximise the value they offer to local residents and visitors, while also bolstering the centres' own income streams and sustainability. The project targets towns of 3 000 people or less, although other locations are considered on their merits. As at the end of 2002, 53 CTCs covering 93 towns, had been funded through this project.

The Regional Connectivity Project administered by the University of Ballarat received funding of $1 125 000 to establish fourteen public Internet access centres in Avoca, Ballan, Charlton, Clunes, Creswick, Dimboola, Donald, Hopetoun, Kaniva, Mortlake, Rainbow, St Arnaud, Warracknabeal, and Wycheproof. They are equipped with public access computers connected to the Internet and overseen by skilled operators who provide guidance and training to users. Additionally, the State government similarly equipped six towns in the region (Ararat, Daylesford, Edenhope, Horsham, Minyip and Nhill). 156 115 users have been recorded across the sites, with numbers increasing over 2002-03.

The Southern Yorke Peninsula (SYP) community telecentre is an example of the high level of achievements by regional communities working in partnerships with other agencies and is contributing to the social and economic development of the region. The centre has recorded some 5 000 users, collaborated with Seniors On Line, written training material, negotiated an agency contract with the Australian Taxation Office, become the Centrelink agency for the area, is working with regional TAFE college and developed the regional portal website (www.yorkeregion.on.net).

An evaluation of the $13 million investment by NTN and the Tasmanian State Government in the Tasmanian Online Access Centre network shows there has been considerable benefit to the Tasmanian economy in goods and services, skills, training and access to employment opportunities for users. In the past five years, the 64 centres have had over 50 000 people registered to use these centres for training, to access Government information and transactional services, conduct Internet banking or make online purchases.

The NTN Board also recognised that improved telecommunications infrastructure would be particularly important in enhancing health and education outcomes. The Board was therefore keen to support such projects as a means of reducing the disparity in access and services for Australians in regional and isolated areas.

The Adult Community and Further Education Board in Victoria received $1 925 500 which has improved access to the Internet through an increase in the number of computer workstations, new network connections and associated equipment to 158 country Victorian Adult Community education funding recipients, mostly in smaller communities.

Funding was provided to the SA Department of Education, Training and Employment to trial satellite internet access for students of the School of the Air. The Internet lessons replaced lesson by HF radio. The trial proved to be very successful. The technology allows a 'whiteboard' to be used by both teacher and students and real-time sound and vision as well as improved sound quality. The project is providing improved access to education for children in remote Australia.

The Telehealth Tasmania Network was developed in late 1998 and with $5.598 million in NTN funding has established 26 telehealth facilities through the State with the aim of:

enhancing access by rural and regional communities to specialist health services in other centres
improving local, community-based health care through the provision of telehealth facilities
ensuring the telehealth facilities were sustainable in those communities

Developing relevant content and applications, and providing the framework for advanced services such as e-commerce have been targeted as important priorities by applicants to the Program. The Maleny Enterprise Network has developed a 'model' community portal which is owned by the community, who manage their own content, and operate an e-commerce payment gateway. This 'model' is proving to be successful and has benefited other projects-Mackay Regionlink, Beechmont and the Western Subregional Organisation of Councils project.

Access to videoconferencing facilities has proven to be an important component of the NTN Program and the Board has recognised the impact that videoconferencing, as a vital tool for communication, can have on the lives of rural and remote families. For example videoconferencing facilities provided by NTN are allowing Queenslanders living in rural and regional areas to stay in touch with family members in correctional and youth detention centres. Where face to face visits would be difficult due to the cost and time involved in travel, the Prison Access project is helping friends and families to stay in contact. This project is based on the expectation that those who are in custody but maintain close links with their family and have a strong support network are less likely to re-offend.

A number of NTN funded projects have received awards, some of which include:

Albany GateWAy project-12th Western Australian Information Technology and Telecommunications Award 2002
Community Technology Centres Program-2002 NSW Premier's Silver Award for Services to Regional/Rural NSW

In 1999, the NTN Board was also given responsibility for approving grant applications under the Local Government Program. This distinct activity aimed to assist Councils to make the transition to an online services environment by funding the development of appropriate, innovative systems and applications, and relevant business skills. Collaboration among Councils and compatibility of systems have been strongly encouraged and supported in this approach. Councils should also realise productivity gains through these initiatives.

⁶^{The data presented in this paper was obtained by emailing a questionnaire to the project manager of 600 individual projects. The response rate as at 15 November 2002 was 71 per cent, with the managers of 426 projects returning a completed questionnaire. The questionnaire was forwarded to Projects that had been completed but not those projects which did not have funding agreements in place.}

⁷^{Public internet access facilities includes computers and internet access funded in schools, libraries, Councils, telecentres and community facilities.}

ANNEX A

NETWORKING THE NATION BOARD TERMS OF REFERENCE

The NTN Board's primary role is to approve the allocation to projects of funds held in the Regional Telecommunications Infrastructure Program in accordance with guidelines approved by the Minister. Once the Board has made its decision, the Department of Communications, Information Technology and the Arts will arrange for payments to applicants, subject to appropriate contractual arrangements.

The Board's decisions on the allocation of funds to projects will not require Ministerial endorsement.

The other roles of the Board are:

to develop guidelines for the Minister's approval which set out the criteria against which projects will be assessed and selected for funding;
consider submissions made to the Board by state and territory governments (at the invitation of the Minister) in determining a strategy for NTN funding for each State/Territory;
make recommendations to the Minister for Communications, Information Technology and the Arts on policy issues that may arise through the process of fund allocation;
participate in the development, promotion and evaluation of the Programs; and
present annual reports on the operations of the Programs (see below).

Responsibilities of the Board members

Members have a responsibility:

to consider each project application on its own merits in accordance with the guidelines as assessed against the selection criteria and to be fair and unbiased; and
to identify where there may be a conflict of interest.

Accountability

Administration of the Programs will be subject to the normal processes of review of Departmental Estimates by the Senate Legislation Committee. The Programs will be audited by the Auditor-General. For each year of the Programs' five-year life the Board will present and the Minister will arrange for tabling in Parliament, an annual report on the operations of the Program. The report will include financial statements prepared in accordance with guidelines issued by the Minister for Finance and audit reports by the Auditor-General.

The Board will be expected by the general public, applicants, Parliament and key stakeholders to provide a justification for its funding decisions. The Board will need to determine to what extent this information will be made publicly available while at the same time respecting commercial and applicant confidentiality. Documents would be subject to normal provisions relating to documents held in the Department of Communications, Information Technology and the Arts such as the FOI and Privacy Acts.

General

The Board will perform these functions in accordance with any guidelines, conflict of interest codes of conduct or meeting procedures in force from time to time.

ANNEX B

History of the Networking the Nation program

Funding

The objective of the Networking the Nation (NTN) program was to assist the economic and social development of rural Australia by funding projects which:

enhance telecommunications infrastructure and services;
increase access to, and promote use of, services available through telecommunications networks; and
reduce disparities between urban and non-urban areas in access to such services and facilities.

The Program was initially allocated a total of $250 million from the sale of the first tranche of shares in Telstra. This funding became known as the General Program. The $250 million was apportioned so that the share each State received was in direct relation to the proportion of that State's population that resided outside the State's capital city.

In 1999 the Government announced an increase of $174 million in NTN funding from the Social Bonus resulting from the sale of a further 16 per cent of Telstra. Of this:

$70 million was allocated to the Building Additional Rural Networks (BARN) initiative;
$45 million was allocated to the Local Government Program to assist local government authorities in regional Australia to provide online access to information and services including the Internet;
$36 million was allocated to the Internet Access Program to stimulate Internet service delivery in regional and rural Australia;
$20 million was allocated to the Remote and Isolated Island Program to improve telecommunications access for these communities; and
$3 million was allocated for extended mobile telephone coverage-$1 million each in WA, SA and Tasmania.

A small administrative component deducted from the total allocations was used for the support of the NTN Board and Secretariat.

In the case of the Rural Internet Access Program, arrangements changed because a commercial offering from Telstra delivered the outcomes the Program was aiming to achieve. Consequently, in the 2001-02 Budget, the Government announced that it would reallocate funds to fund telecommunications and internet initiatives as part of the Government's response to the Telecommunications Service Inquiry. A total of $21 million was reallocated, $15 million of the original funding was allocated to the National Communications Fund and $6 million of the original funding was allocated to the Internet Assistance Program-a joint venture with Telstra to provide better quality and faster access to dial-up Internet services. In the 2002-03 Budget the unspent residual funds were declared as savings.

In the case of the BARN Program, the uncommitted funds (totalling $35 million in June 2003) were redirected to the National Broadband Strategy as part of the Government's response to the Estens Report.

The General Fund Program, the Internet Access Program, and the Remote and Isolated Islands Program were conceived with finite funding periods. In all three cases funding was to conclude by 30 June 2003 (and in the case of the last two Programs this date was prescribed in legislation). In the course of the 2003-04 Budget, the Government approved a 12 months extension to the life of the General Fund Program, as a precaution against projects not being completed by the 30 June 2003 sunset date.

The NTN Secretariat

The NTN secretariat was provided by the Commonwealth Department of Communications, Information Technology and the Arts.

The Secretariat provided advice and guidance to applicants developing proposals, assisted the Board by assessing applications, administered the deeds of agreement, monitored the progress of funded projects, and acquitted all funding agreements. Secretariat staff also promoted the Program and discussed with interested parties the aims and potential benefits of the Program to their communities.

General processes

The NTN Programs operated under guidelines approved by the Minister for Communications, Information Technology and the Arts. In addition to the guidelines, the NTN Board issued fact sheets describing its funding priorities, determined after the Board's consideration of the Program guidelines and based on its experience with the Program. Applicants were able to access full information about the Program online, including Program guidelines and fact sheets.

In 2000, NTN introduced an online grants application and project management facility. This enabled applicants to complete a registration form, to have their eligibility confirmed by the Secretariat, and then proceed to submit their application all online via a unique identifier and password. If applicants did not have Internet access, the Secretariat provided application forms and other material on floppy disk. Applicants without access to a computer were provided with a hard copy application form and hard copies of other material.

State Advisory Group/State contacts

Each State, the Northern Territory and the Australian Capital Territory established an Advisory Group to assist the Board in its deliberations. These groups met before each Board meeting and provided information and advice on applications in relation to State policies and priorities for telecommunications and information technology. The State Advisory Groups provided valuable advice to the Board, although final decision making resided with the Board.

In addition to the State Advisory Groups, each State, the Northern Territory and the Australian Capital Territory had a NTN Coordinator to provide a point of contact for applicants and prospective applicants within that State/Territory.

Other sources of advice

Where necessary, technical and financial consultants were utilised to provide analysis of more complex applications. This analysis formed part of the Board's assessment.

Relevant Commonwealth Government departments and agencies (Department of Transport and Regional Services (DOTARS), Office of Aboriginal and Torres Strait Islander Health, Department of Health and Aging (DHA) and the Aboriginal and Torres Strait Island Commission (ATSIC) were also consulted as appropriate by the Secretariat. They provided a source of advice on the merits of project applications, provisions of financial and technical advice and other sources of Commonwealth funding and expertise.

The NTN Secretariat liaised with DOTARS to avoid duplication with the Rural Transaction Centre (RTC) and Regional Solutions Programs and to maximise opportunities for community projects to work together to achieve the most effective outcomes.

NTN provided DOTARS with a copy of all relevant applications for funding. DOTARS had the opportunity to comment on whether the proposed project would duplicate funded or proposed projects (through either RTC or Regional Solutions) and to identify opportunities for projects to work together to achieve better outcomes for the community. Conversely, DOTARS provides all relevant applications for funding to allow NTN to comment on RTC and Regional Solutions applications.

ANNEX C

New Projects approved by the NTN Board in 2002-03

Project Code	Applicant	Project	Location	Description	Funds
NT2002/080	Department of Corporate and Information Services	Remote Community Solutions	Lingiari-NT	Development of optimal solutions for delivery of and access to online services for remote, particularly indigenous, communities through evaluating existing models	$80,000
WA2001/144	Ngaanyatjarra Council (Aboriginal Corporation)	Networking the Ngaanyatjarra Lands Roll Out and Support Services	Kalgoorlie-WA	Provision of UHF radio services across the Ngaanyatjarra Lands at settlements and major roads	$832,434
WA2002/164	WA Telecentre Support Unit	Telecentres in Remote Indigenous Communities in Western Australia	Canning, Forrest, Kalgoorlie, O'Connor-WA	Provision of 10 telecentres for small Indigenous communities to provide enhanced access to telecommunications infrastructure, services and support	$250,000
QLD2002/426	Gayndah Kindergarten Association Incorporated	Information Technology for the Gayndah Kindergarten	Wide Bay-QLD	Provision of a public Internet access facility located at the Gayndah Kindergarten	$20,000
QLD2002/428	Kowanyama Aboriginal Council	Kowanyama Information Network (KIN)	Leichhardt-QLD	Installation of a network of computer kiosks in the Kowanyama community	$66,000
QLD2002/432	Cloncurry Curfew & Youth Action Association	Networking Cloncurry Youth and Community	Kennedy-QLD	Establishment of a public internet access facility in Cloncurry. The Facility will be used to provide internet and online training to the mostly Indigenous community in the area	$145,000
QLD2002/433	Aboriginal Corporation of West Coast Cape York Peninsula Traditional Land Owners	West Coast Cape York TLO Project	Leichhardt-QLD	Establishment of a website and intranet for the hosting organisation including public internet access facilities	$65,000
QLD2003/434	Perry Shire Council	Mt Perry Mobile Phone Project	Wide Bay	Provision of a mobile phone service for the community of Mt Perry and the surrounding region	$135,000
TAS2002/381	Cape Barren Island Aboriginal Association Inc	Satellite Service to Cape Barren Island OAC	Bass-Tasmania	Establishment of a 2-way satellite service for the existing NTN-funded telecentre	$16,904
MST2002/165	Community Teleservices Australia Inc	Community Teleservices Australia Inc (CTSA) Extension Project	National	Update of the CTSA database of telecentres across Australia	$10,000
EXT2002/026	Norfolk Island Government	Norfolk Island Telecommunications Infrastructure	Norfolk Island	Replacement of the Island's telecommunications billing system, to establish an optice fibre backbone, a wide internet network and to upgrade the customer access network	$774,075
VIC2002/309	Ballarat University	Working Together Conference	Ballarat-Victoria	A two day conference of operators who are overseeing public internet access sites funded by NTN in rural Victoria, to be held at Ballarat University during the first week in February 2003. The purpose of the conference is to improve sustainability of the sites; and further develop IT education, income earning capacity and IT performance for businesses in rural Victoria	$65,000
SA2002/270	SA Department of Industry and Trade	SA Telecentre Co-ordination Conference	Barker, Mayo, Wakefield, Grey-South Australia	NTN Assistance with a State Conference for over 30 telecentre coordinators in South Australia	$3,000
SA2002/267	Extended Regional SA Mobile Telephone Coverage	Extended Regional CDMA Mobile Telephony Coverage	Gray	Construction of 4 mobile phone towers at Smoky Bay, Arno Bay, Blyth and Bow Hill	$954,000
14 NEW PROJECTS FUNDED IN 2002-03				TOTAL PROJECT FUNDING COMMITTED IN 2002-03	$3,336,413

Project variations (includes top-ups) approved 2002-03

Project Code	Title	Project	Location	Project Description	Amount
Nov 02 QLD2001/288	Queensland Rural Women's Network Inc	QRWN BridgIT2	Blair, Capricornia, Dawson, Groom, Hinkler, Kennedy, Leichhardt, Maranoa, Wide Bay-QLD	Provision of additional funding to support the existing QRWN training project for residents in regional, rural and remote areas of Qld	$134,600
WA1997/008	WA Dept of Local Govt and Regional Development	WA Telecentre Network Extension and Prototype Modular Interactive Technology Environment (MITE)	Brand, Canning, Forrest, Kalgoorlie, O'Connor, Pearce-WA	Provision of improved internet access for up to 100 telecentres in WA	$250,000
QLD2002/381/429	Balkanu, Cape York Development Corporation	Outstation Telephones	Leichhardt-QLD	Increase of entitlements and provision of additional funding to bridge the affordability gap for obtaining fixed phone services	$9,620
TAS2000/136	Cape Barren Island Aboriginal Association Inc	Tasmanian Aboriginal Centre	Bass-Tasmania	Additional funding to establish a microwave network to support the telehealth service for Cape Barren and Clarke Islands	$277,900
SA2002/254	Burra Community Development Program Inc	Burra Telecentre	Grey-South Australia	Additional funding for the Burra telecentre to become operational in January 2003 to employ an assistant	$25,000
Apr 03 QLD1998/133	Mackay Tourism and Development Bureau	Mackay RegionLink	Capricornia-Dawson	Mackay RegionLink has established a regional portal, a number of internet access centres throughout the region and training and technical support services. TopUp Funding of $50 000 included in funding amount for promotion and development of the portal	$50,000
SA2002/252	Riverland Domestic Violence Unit Inc	Phoenix Network	Wakefield	Establishment of a PC-based Videoconferencing Network in nine Riverland and Mallee Region communities to enable victims of domestic violence to seek access to counselling and obtain information. TopUp funding was provided to upgrade four computers at the Unit's base	$7,600
Jun 03 MST2001/143	Pitjantjatjara Yankunytjatjara Media	PYCom (Pitjantjatjara Yankunytjatjara Communications)	Grey, Lingiari	Top-up funding was provided for public Internet access, video conferencing, training and mobile radio services across the Anangu Pitjantjatjara lands (Top-up)	$150,000
EXT2000/010	Christmas Island Administration	Stand Alone Mobile Phone Network on Christmas Island	Lingiari	Stand Alone Mobile Phone Network on Christmas Island (Variation)	$124,000
VIC2001/283	Skills.net Association Co-op Ltd	Boot Up Your Business	Ballarat, Bendigo, Burke, Calwell, Casey, Corangamite, Corio, Flinders, Gippsland, Indi, Lalor, Latrobe, Mallee, McEwen, Murray, Wannon	This project is developing and implementing a statewide e-commerce training program for SMEs.(Top-up)	$50,000
10 VARIATIONS TO PREVIOUSLY APPROVED PROJECTS (INCLUDES TOPUPS)			TOTAL FUNDING FOR VARIATIONS TO PROJECTS		$1,078,720
TOTAL PROJECT COMMITMENTS			NEW PROJECTS AND VARIATIONS TO PROJECTS		$4,415,133

ANNEX D

Applications received, projects approved and varied by State and Territory, 2002-03

	Total no. of applications considered by the NTN Board in 2002-03 excluding variations to previously approved projects)	Projects approved by the Board for each State or Territory (excluding variations to previously approved projects)	Total no. of variations considered by the NTN Board	Total no of variations approved by the NTN Board
ACT	NIL	NIL	NIL	NIL
NSW	NIL	NIL	NIL	NIL
NT	4	1	NIL	NIL
QLD	4	5	6	3
SA	11	2	2	2
TAS	1	1	2	1
VIC	1	1	1	1
WA	2	3	3	1
Multistate-Remote Islands	1	1	3	1
National	NIL	NIL	NIL	NIL
External Territories	1	NIL	1	1
TOTAL	25	14	18	10

ANNEX E

Current status of NTN funds⁴

	General Fund	Local Government Fund	Total
ACT	NIL	NIL	NIL
NSW	$123,849	NIL	$123,849
NT	$305,519	NIL	$305,519
Q'LD	$308,651	NIL	$308,651
SA	$58,377	$15,334	$73,711
TAS	$40,677	$169,728	$210,405
VIC	$8,698	NIL	$8,698
WA	$101,484	NIL	$101,484
Territories		$755	$755
National		$364,065	$364,065
TOTAL	$947,255	$549,886	$1,497,137

⁴^{Note: all funding from the Extended Mobile Phone Coverage Program, Remote and Isolated Island Fund and the Internet Access Fund has been completed. As part of the Government's response to the Regional Telecommunications Inquiry, the uncommitted BARN funds have been redirected to the Higher Bandwidth Incentive Scheme and other aspects of the National Broadband Strategy. The Current Status of the BARN Fund still has to be reconciled.}

ANNEX F

	Projects Approved (includes terminated projects)	Terminated/Withdrawn/did not proceed/ after Board approval/or merged	Projects Implemented	Projects acquitted	Active Projects
National	20	5	15	6	9
ACT	4	0	4	2	2
NSW	135	5	130	84	46
NT	26	1	25	8	17
QLD	150	6	144	78	66
SA	92	5	87	49	38
Vic	92	4	88	36	52
WA	53	3	50	25	25
Tas	188	4	184	90	94
Multi-State	27	3	24	11	13
External Territories	13	1	12	1	11
TOTAL	800	37	763	390	373

ANNEX G

Consultants engaged by the Department of Communications, Information Technology and the Arts in 2001-02.

They were two new consultants employed by Networking the Nation in the period 1 July 2002 to 30 June 2003.

The requirements for the employment of consultants is as follows:

Justification (only required if contract was let to the value of $10 000 or more)

Select one of the following for each entry:

Departmental staff with the specialised skills or knowledge needed to perform the task were not available within the required time frame.
There were no staff within the Department with the specialised skills or knowledge needed to perform the task.
Independent advice was required.

Selection process used (only required if contract was let to the value of $10 000 or more)