CONTACT INFORMATIONMt Baw Baw Alpine ResortManagement BoardPO Box 117, Rawson VIC
T. 03 5165 1136F. 03 5165 1125E. [email protected]
2015ANNUAL REPORT
Mt Baw BawAlpine Resort
Management Board
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Mt. Baw Baw Alpine ResortPO Box 117,Rawson, VIC, 3825P 03 5165 1136F 03 5165 1125E [email protected] www.mountbawbaw.com.au
ABN 30 402 472 781
© State of Victoria, Mount Baw Baw Alpine Resort Management Board 2016. This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968.
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ACCOUNTABLE OFFICER’S DECLARATION
Accountable Officer’s Declaration In accordance with the Financial Management Act 1994, I am pleased to present the Mt. Baw Baw Alpine Resort Management Board’s Annual Report for the year ending 31 October 2015.
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ADDRESS TO THE MINISTER
[XX] February 2015
The Honourable Lisa Neville MP Minister for Environment, Climate Change and Water
Level 7, 8 Nicholson St EAST MELBOURNE VIC 3002
Dear Minister Neville
MT BAW BAW ALPINE RESORT MANAGEMENT BOARD – ANNUAL REPORT
We have much pleasure in submitting to you for presentation to Parliament, the Annual Report of the Mt Baw Baw Alpine Resort Management Board, covering the period 1 November 2013 to 31 October 2014.
The Annual Report has been prepared in accordance with the Financial Management Act 1994 and the
Alpine Resorts (Management) Act 1997.
On behalf of the Board, we extend our appreciation for your support and also the support and cooperation of the Department of Environment and Primary Industries throughout the year.
Yours sincerely,
Vicky Papachristos Craig Jensz
Chair Accountable Officer
Craig JenszChief Financial & Accountable Officer Mt. Baw Baw Alpine Resort Management Board
5 February 2016
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TABLE OF CONTENTS
About Mt Baw Baw ..........................................................................................................................4
Our Guiding Principles ...................................................................................................................5
Chair’s Report .................................................................................................................................7
Year in Review .................................................................................................................................8
Initiatives&keyachievements�������������������������������������������������������������������������������������������� 8
EnhancingthevisitorexperienceandgrowingtheResort ...................................................8
Whiteseasonvisitations������������������������������������������������������������������������������������������������������ 8
SkiPatroloperations����������������������������������������������������������������������������������������������������������10
Greenseasonevents���������������������������������������������������������������������������������������������������������� 11
Environment����������������������������������������������������������������������������������������������������������������������� 11
DiscontinuedOperations���������������������������������������������������������������������������������������������������� 11
Departmentalobjectives,indicatorsandoutputs�������������������������������������������������������������� 12
Currentyearfinancialreview���������������������������������������������������������������������������������������������� 12
Significantchangesinfinancialposition���������������������������������������������������������������������������� 12
Significantchangesorfactorsaffectingperformance������������������������������������������������������� 12
Capitalprojects������������������������������������������������������������������������������������������������������������������� 12
Disclosureofgrantsandtransferpayments���������������������������������������������������������������������� 12
Disclosureofgovernmentadvertisingexpenditure����������������������������������������������������������� 12
Subsequentevents�������������������������������������������������������������������������������������������������������������13
Fiveyearfinancialsummary����������������������������������������������������������������������������������������������13
Objectives,IndicatorsandOutputs�������������������������������������������������������������������������������������14
Performanceagainst2014/15strategicobjectivesandpriorities���������������������������������������14
Reportagainstoutputperformancemeasures������������������������������������������������������������������16
Governance & Organisational Structure��������������������������������������������������������������������������������� 18
Organisationalstructure����������������������������������������������������������������������������������������������������18
GoverningBoard�����������������������������������������������������������������������������������������������������������������18
BoardAppointments���������������������������������������������������������������������������������������������������������� 20
BoardMemberprofiles������������������������������������������������������������������������������������������������������ 20
Audit&rsikcommittemembership&roles��������������������������������������������������������������������� 22
Occupationalhealth&safety��������������������������������������������������������������������������������������������� 23
Department’sperformanceagainstOH&Smanagementmeasures�������������������������������� 23
Workforcedata������������������������������������������������������������������������������������������������������������������� 23
Staffinductionprogram����������������������������������������������������������������������������������������������������� 24
Publicadministrationvalues&employmentprinciples��������������������������������������������������� 24
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Comparativeworkforcedata���������������������������������������������������������������������������������������������� 25
Executiveofficerdata�������������������������������������������������������������������������������������������������������� 25
Other Disclosures ............................................................................................................... 26
ImplementationoftheVictorianIndustryParticipationPolicy(VIPP)������������������������������� 26
Consultancyexpenditure��������������������������������������������������������������������������������������������������� 26
Detailsofconsultancies(valuedat$10,000orgreater)���������������������������������������������������� 26
Disclosureofmajorcontracts������������������������������������������������������������������������������������������� 26
FreedomofInformation����������������������������������������������������������������������������������������������������� 27
CompliancewithBuildingAct1993������������������������������������������������������������������������������������ 27
NationalCompetitionPolicy���������������������������������������������������������������������������������������������� 28
CompliancewiththeProtectedDisclosureAct2012��������������������������������������������������������� 28
Whatisa‘protecteddisclosure’?�������������������������������������������������������������������������������������� 28
Whatis‘improperorcorruptconduct’?���������������������������������������������������������������������������� 28
HowdoImakea‘protecteddisclosure’?��������������������������������������������������������������������������� 28
HowcanIaccesstheBoard’sproceduresforprotectionfromdetrimentalaction?��������� 29
Contact������������������������������������������������������������������������������������������������������������������������������� 29
DisclosureundertheProtectedDisclosureAct2012�������������������������������������������������������� 29
CompliancewithCarersRecognitionAct2012������������������������������������������������������������������ 29
Office-basedenvironmentalimpacts�������������������������������������������������������������������������������� 29
Procurement���������������������������������������������������������������������������������������������������������������������� 30
Additionaldepartmentalavailableinformationonrequest�����������������������������������������������31
AdditionalinformationincludedintheAnnualReport�������������������������������������������������������31
Risk Management Attestation������������������������������������������������������������������������������������������������� 32
Gifts, Benefits and Hospitality Attestation������������������������������������������������������������������������������ 32
Auditor-General’s report��������������������������������������������������������������������������������������������������������� 33
Financial Statements��������������������������������������������������������������������������������������������������������������� 35
DeclarationbytheChairpersonandAccountableOfficer������������������������������������������������� 35
Comprehensiveoperatingstatement�������������������������������������������������������������������������������� 36
BalanceSheet�������������������������������������������������������������������������������������������������������������������� 37
Statementofchangesinequity����������������������������������������������������������������������������������������� 38
CashFlowStatement��������������������������������������������������������������������������������������������������������� 39
Notestothefinancialstatements������������������������������������������������������������������������������������� 40
DisclosureIndex���������������������������������������������������������������������������������������������������������������� 80
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INTRODUCTION
About Mt Baw Baw
MelbourneMt Baw Baw
TraralgonTraralgon
Mt Baw Baw is an all season alpine resort, open for summer and winter adventure. The Resort caters for snowboarders, skiers and snow enthusiasts during winter and outdoor adventurers, hikers and bike riders during the summer months.
QUICK FACTS
l Victoria’s affordable, family friendly ‘learn to ski’ destination;
l Melbourne’s closest downhill ski Resort;
l Only two and a half hours drive (177km) from Melbourne;
l Three hour drive from the Mornington Peninsula;
l One hour from the heart of Gippsland;
l Variety of overnight accommodation offerings;
l 12-15 week white season, 37-40 week green season;
l Over 35 hectares of groomed runs;
l Seven ski lifts, 15 runs;
l 10km of groomed cross country ski trails;
l Two snow play areas plus a terrain park;
l Snow making facilities;
l Terrain: beginners 25%, intermediate 64%, advanced 11%;
l Unique picturesque sub-alpine environment with spring flowers over the summer months and views to Port Phillip Bay and Westernport Bay;
l A variety of events during the green season catering to a wide range of visitors;
l �National standard downhill mountain bike trail; and
l Restaurant for dining, conferences, special occasions and weddings.
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Our guiding principlesVISION
The Mt Baw Baw Alpine Resort (“Mt Baw Baw” or the “Resort”) will offer a family friendly, environmentally sensitive, alpine experience.
MISSION
To provide a vibrant Alpine Resort within a sustainable environmental, economic and social framework in Victoria.
VALUES
lEnsure responsible environmental management underlies our decisions and actions;
l Be accessible, available and will listen to all parties;
lBe honest, fair and transparent in its dealings;
lGive due consideration to the interests of all stakeholders;
lValue all Resort stakeholders and partners;
lProvide decisive leadership and governance;
lEnsure the effective and efficient delivery of quality services; and
lEnsure that social and ethical responsibilities are met.
Manner of establishment & responsible MinisterThe Mt Baw Baw Alpine Resort Management Board (the “Board”) is established under the Alpine Resorts (Management) Act 1997 (the “Act”).
The responsible Ministers during the 2014-15 reporting period were:
l The Hon Ryan Smith MP, Minister for Environment and Climate Change for the period 1 November 2014 to 3 December 2014; and
l The Hon Lisa Neville MP, Minister for Environment, Climate Change and Water for the period 4 December 2014 to 31 October 2015.
Nature & range of services providedThe Board provides a number of services at the Resort including;
l Water supply;
l Sewerage and drainage;
l Car parking;
l Garbage and waste disposal;
l Electricity;
l Accommodation;
l Snow equipment hire;
l Ski school;
l Lift ticketing;
l Ski lifting;
l Food and beverage;
l Snow clearance;
l Traffic control and parking;
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l Trail grooming, construction and maintenance;
l Ski patrol;
l Leaseholder management;
l Snow and weather reporting;
l Tourism and education information;
l Public shelters; and
l Public toilets.
Objectives, functions, powers & dutiesAs the Committee of Management of Mt Baw Baw, the Board seeks to develop, promote, and manage Mt Baw Baw in an environmentally and financially sustainable way for alpine recreation across all seasons by persons of all diversity.
The Board’s functions are outlined in section 38 of the Act, whilst its powers are prescribed by section 39 and 40 of the Act.
The Alpine Resorts Strategic Plan 2012 also provides guidance for the long term planning and management of Victoria’s six alpine resorts, and has as its guiding vision that:
Victoria’s alpine resorts will be vibrant, growing and sustainable places, delivering alpine recreational and tourism experiences that are available to all.
Incorporating requirements under the Act and Alpine Resorts Strategic Plan 2012, the Board has developed and adopted a corporate plan that outlines its objectives, and the actions that it commits to undertaking in order to fulfil it functions, exercise its powers, satisfy the Minister’s statement of expectations and achieve its objectives (“Corporate Plan”).
In line with the six key objectives of the Alpine Resorts Strategic Plan 2012, the Board has outlined the following objectives in its Corporate Plan:
l Enhancing the visitor experience and developing the resort;
l Delivering resort services and infrastructure efficiently and accountably;
l Building partnerships;
l Respecting the alpine environment;
l Broadening access opportunities; and
l Regulatory reform.
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CHAIR’S REPORT
2014-2015 was an exciting year for the Mt Baw Baw Alpine Resort (“Mt Baw Baw” or the “Resort”) with above average snow falls and 95,073 visitor days recorded, up 61% on the 10 year average. The positive climatic conditions, combined with numerous operating initiatives, resulted in the Resort’s net result from transactions for the year ended 31 October 2015 (“2014/15”) improving 50% on last year.
Pleasingly, the Resort made significant progress in the promotion and protection of Mt Baw Baw’s unique environment and endangered species through collaboration with a variety of stakeholders, including Zoos Victoria and Parks Victoria. These initiatives continue to assist the Resort to better understand and manage the impacts of climate change on the Resort.
Belgravia Leisure continued to act as the commercial operator of the Resort for a second term and executed a number of positive improvements. I would like to thank the management team, led by Alex Flint as Resort Manager, who made a significant contribution to improving the Resort over the year. In particular:
l A strong winter event program assisted in driving record visitation;
l A focus on improving guest experience was evidenced by a significant improvement in the Resort’s Net Promotor Score; and
l The Resort’s growing school education program ensured visiting school students were provided with an understanding of the alpine environment and the impacts of climate change.
I would also like to take this opportunity to thank my fellow Board members, Randall Cohen, Ben Dunlop, Grace La Vella and David Bates, for their commitment over the year.
Mt Baw Baw will continue to require significant ongoing assistance from the Victorian Government. I welcome the incoming Chair Allan Bawden, who will continue to strive to provide a vibrant Alpine Resort over the long-term.
Vicky Papachristos
Chair, Mt Baw Baw Alpine Resort Management Board
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Initiatives & key achievementsENHANCING THE VISITOR EXPERIENCE AND GROWING THE RESORT
Considerable focus was directed to enhancing guest experience at Mt Baw Baw during 2014/15.
A new website was developed to enhance guest’s initial impression of the Resort. The new website resulted in an increase in online package and rental sales.
Work was also completed to enhance the quality of the Resort, including painting of building interiors and exteriors, improved food and beverage options, improvements to amenity and comfort of accommodation and additional staff customer training.
These measures had a considerable impact on guest experience in 2014/15, with Mt Baw Baw achieving a significant improvement in the Net Promoter Score of the Resort from 15 in 2014 to 41 in 2015 (Woollcott Research).
WHITE SEASON VISITATION
Mt Baw Baw experienced its highest ever winter visitation during the 2015 white season with a total of 95,073 visitor days, up 61% on the 10 year average and 2% on 2014. This was supported by consistent good snow conditions.
Healthy snow falls in May provided moderate cover for the opening weekend. Minimal snow falls during the July school holidays negatively impacted school holiday visitation. Cold climatic conditions during the remainder of the season provided consistent snow cover, from natural and man-made snow, and drove strong visitation, particular from families visiting for snow play.
An enhanced and more targeted marketing campaign that aligned with Snow Victoria’s program also contributed to the strong visitation.
YEAR IN REVIEW
51819
66605
52347
74792
58066
93441 95073
15690124922
1424421820
9359
19254 21229
0
10000
20000
30000
40000
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70000
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2009 2010 2011 2012 2013 2014 2015
Vis
itor
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Visitor Days/Skier DaysVisitor Days Skier Days
Chart 1: Mt Baw Baw visitor days and skier days
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Weekends achieved the highest visitation. Unlike previous years, midweek visitation was consistent. This improvement is attributed to a focus on marketing and value packaging of mid-week stays.
Chart 2: 2015 snow depth and visitor days
Despite good snow falls prior to opening weekend, there was limited natural snow in the early stages of the season. Without the assistance of snow making at this time, the length and success of the season would have been impacted significantly. The remainder of the season was slightly above expectation, with good snow falls and lifts operating relative to the snow depth.
Chart 3: 2015 snowmaking and natural snow depths
Snow
dep
th (C
enti
met
res)
Snow depth Inc. Snow Making
Centi
metres
Average depth with Snow Making
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SKI PATROL OPERATIONS
The Resort’s ski patrol was called to attend a total of 168 incidents during the 2015 white season, a 40% reduction on the prior year, but in line with previous seasons which had similar snowfalls and conditions.
Of the 168 incidents, 147 were classified as major and on 16 occasions the ski patrol called upon the services of Ambulance Victoria for transportation and further medical assistance. Two of these occasions were time critical and required air evacuation.
The ski patrol was also required to attend to 16 staff members during white season. The majority of the staff incidents were walk in cases and managed in the ski patrol base or the First Aid Centre.
There were three incidents requiring after-hours call out, two of these incidents occurred on weekends. There were seven incidents during night skiing sessions.
The provision of Ambulance Victoria Community Officers throughout the white season has reduced wait times for ambulance assistance and transportation. This enabled ski patrollers to focus upon their primary role of ski area risk management, emergency response and guest education.
In addition, six career paramedics volunteered their time throughout the white season, reducing wait times for assistance. Six volunteer doctors also provided extended care and patient management to casualties.
The provision of a new lighter weight snowmobile reduced incident response times and allowed patrollers to undertake additional duties such as trail grooming.
A tablet based incident reporting system was implemented part way through the white season, replacing the previous paper based system. The new system allows ski patrollers more time to concentrate on their primary role and improves data recording.
The ski patrol training program was reviewed for the 2015 season to accommodate the growing number of new recruits.
The paid and volunteer ski patrol team displayed strong dedication and a high quality of service throughout the 2015 white season.
Chart 4: Reported safety incidents
2015 2014 2013 2012
Incidents 168 280 112 209
Skier days 95,073 93,441 58,066 74,792
Incidents per 1,000 skier days
1.8 3.0 1.9 2.8
Air evacuations 2 2 0 2
Road evacuations 16 23 9 13
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GREEN SEASON EVENTS
Following a review of the financial viability of each event, the 2014/15 green season offered fewer events than the prior year. The 2014/15 schedule included six contractor delivered events which are more economical and encourage new visitation to the Resort.
Below are a summary of the green season events in 2014/15:
Chart 5: Green season event summary
EVENT DESCRIPTION PARTICIPANTS
2014/15 2013/14
Fly Fish Baw Baw Festival of Fly Fishing N/A 52
SoP Spring Trail running/mountain biking event N/A 60
Downhill MTB Pin it to Win It 62 65
Mountain Bike Festival State MTB Champs 230 310
SoP Summer Trail running/mountain biking event N/A 58
Baw Baw Sprint Car rally 45 cars 41 120
Conference GCLP 30 30
Trail Run Festival & Orienteering Weekend of trail running activities & Orienteering championship 130 340
Melbourne University Ski Jump Weekend Ski jump competition N/A 60
Kids Adventure Festival Festival of outdoor activities for kids 186 400
Baw Baw Classic Cycle race Warragul to Mt Baw Baw 270 270
4 Weddings Weddings held at Mt Baw Baw 298 425
Peatlands Study Vic Parks’s conference 11 N/A
Total Participation 1,258 2,190
ENVIRONMENT
The Board met all targets outlined in its Environmental Management Plan for 2014/15.
Throughout the year, the Board engaged with a number of environmental bodies, including Parks Victoria and Zoo’s Victoria, in an effort to promote and protect Mt Baw Baw’s unique alpine environment and its endangered species and better understand the impacts of climate change on the Resort.
DISCONTINUED OPERATIONS
Prior to the 2015 white season, the Board returned the operations of Kelly’s Café to the lessee who controls the property under an alpine lease.
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Departmental objectives, indicators and outputsThe table beginning page 14 summarizes the Resort’s performance against the objectives and priorities contained in the Resort’s Corporate Plan.
Current year financial reviewIn 2014/15 operating revenues increased $0.7m or 17% from the average over the past 4 years, but was down $0.1m or 2% on 2013/14. Operating expenses were down $0.7m or 10% on last year and $0.1m or 2% on the average over the past 4 years. The net result excluding Government contributions improved by $0.7m or 14% on 2013/14 and was $0.5m or 13% above the average over the past 4 years. These results can be explained by the following:
l Reasonable natural snow falls supplemented by consistent snow making resulting in record white season visitations at 95,073 visitor days;
l Economically unsustainable green season events were discontinued;
l Green season operating days decreased from seven to three (Friday to Sunday);
l The organisational re-structure that followed the introduction of the commercial operator was completed during the previous year and delivered a full year of savings in this year. This included savings as a result of the transfer of a number of functions, including finance and accounting, marketing and IT, to the commercial operator.
The Board’s cash position during 2014-2015 was supported by the Government.
SIGNIFICANT CHANGES IN FINANCIAL POSITION
There have been no significant changes in financial position during the year. Net assets reduced marginally by $0.3m.
SIGNIFICANT CHANGES OR FACTORS AFFECTING PERFORMANCE
There were no significant changes or factors affecting performance.
CAPITAL PROJECTS
During 2014/15, the Board undertook a small number of essential minor capital works projects.
DISCLOSURE OF GRANTS AND TRANSFER PAYMENTS
During 2014/15, Mt Baw Baw was the recipient of a State Government grant of $45,501 under the Alpine Risk Mitigation Program. This grant was used to undertake earthworks to prevent land slip behind the Alpine Hotel.
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SUBSEQUENT EVENTS
All Board member’s terms expired on 30 September 2015. They were subsequently reappointed by the Minister for a three month term from 1 October 2015 to 31 December 2015. On 1 January 2016, a new Board was appointed for a two year term. The new Board comprises Allan Bawden as Chairperson, Kerry Irwin as Deputy Chairperson, and Anthony Thompson, Kerren Clark, Randall Cohen, and Svetla Petkova as Board members..
On 9 December 2015, the Minister issued a Media Release, in which she announced that the “Boards responsible for Lake Mountain and Mt Baw Baw will be merged” to form the Small Alpine Resorts Management Board, subject to legislation being passed by Parliament. It is expected that this legislation will be introduced to Parliament in 2016. The creation of this new entity would see the winding up of the existing Mt Baw Baw Alpine Resort Management Board, and its assets transferred to the new Board.
Chart 6: Five year financial summary
2014/15 $
2013/14 $
2012/13 $
2011/12 $
2010/11 $
Operating revenue $3,881,599 $3,963,404 $2,436,057 $3,680,655 $2,741,911
Government contributions $3,543,763 $3,822,099 $4,539,215 $1,423,857 $5,391,500
Non-operational revenue $6,135 $5,400 $5,050 $22,222 $28,991
Total revenue $7,431,497 $7,790,903 $6,980,322 $5,126,734 $8,162,402
Operating expenses $6,736,471 $7,464,869 $6,241,160 $6,352,705 $6,242,713
Depreciation $1,075,302 $1,050,868 $1,086,922 $1,118,317 $798,260
Total expenditure $7,811,773 $8,542,065 $7,328,082 $7,471,022 $7,040,973
Net result from transactions -$380,276 -$751,162 -$347,760 -$2,344,288 $1,121,429
Other economic flows included in net result $13,119 -$1,793 -$54,886 -$7,481 $532
Net result -$367,157 -$753,003 -$402,646 -$2,351,769 $1,121,961
Net result excl. Government contributions -$3,910,920 -$4,575,102 -$4,941,861 -$3,775,626 -$4,269,539
Current assets $938,122 $1,291,514 $942,313 $519,329 $1,950,590
Non-current assets $16,832,962 $17,551,769 $17,951,537 $18,608,348 $19,573,796
Total assets $17,771,084 $18,843,283 $18,893,850 $19,127,677 $21,524,386
Current liabilities $730,454 $1,397,132 $983,976 $806,569 $728,778
Non-current liabilities $150,715 $244,480 $340,860 $464,448 $587,179
Total liabilities $881,169 $1,641,612 $1,324,836 $1,271,017 $1,315,957
PAGE | 14
Objectives, indicators and outputsThe table below summarizes the Resort’s performance against the objectives and priorities contained in the Resort’s Corporate Plan.
Chart 7: Performance against 2014/15 strategic objectives and priorities
STRATEGIC OBJECTIVES ELEMENTS OUTCOME INDICATOR ACTUAL OUTPUTS
1� Enhancing the visitor experience and developing resorts
Develop green season nature based recreation activity events which return positive net revenue. This will focus on maximising the existing trail structures for walking and hiking.
Increase green season events year on year (“YOY”) attendances.
Less attendance due to the reduction in events that had poor financial outcomes.
Increase use of focused social media as a marketing tool.
Increase page likes to 10,000. Increased page likes to 12,290.
Re-establish Big Hill Poma ski lift to full capacity.
Increase lift passes sold at gate entry by 5% YOY.
Not completed.
Implement a comprehensive ski hire infrastructure that is operated by the Resort.
Ski hire revenue of $434K. Not completed.
Establish and commission new toboggan run to cater for increasing snow play visitors and to improve safety. The location of this will be below the Village restaurant.
Reduce accident records by 5%.
Completed.
Implement Stage 1 Mountain Bike course incorporating downhill free flow trail.
Increase visitation during the green season by 10%.
Course not implemented.
Construct new innovative mountain biking Terrain Park.
2 new MTB events for 2014/15 green season.
Terrain park not completed.
1 new MTB event achieved in 2014/15 green season.
Renovate guest accommodation.
Increase accommodation revenue by 5%.
Snow Gum apartment renovation complete.
Revenue KPI increase achieved.
Develop online purchasing capability.
10% revenue increase in snow sports.
Implemented new website with e-commerce functionality with corresponding increase in snow sports revenue.
Complete Snow Core software package for enhancement of ticketing and ski lesson management.
10% revenue increase in snow sports.
Not completed due to delays caused by software developer.
PAGE | 15
STRATEGIC OBJECTIVES ELEMENTS OUTCOME INDICATOR ACTUAL OUTPUTS
2� Delivering Resort services and infrastructure efficiently and accountably
Reduced services mid-week throughout green season.
Reduce utility costs by 20%. Reduced services completed.
Utility costs increased primarily due to increase in supply of power costs.
Obtain funds for the sealing of South Face Road.
Reduction in utility costs of 40%.
Not completed.
Obtain funds for connection to grid power.
Immediate 70% reduction in cost of energy.
Not completed.
Construct new toilets in bowl area.
Increase NPS by 10%. Not completed.
Provide public BBQ shelter in top car park.
Due to the Belgravia transition this project was put on hold pending further investigation in 2014/15.
Not implemented.
Construct new toilets in bowl area.
Due to the Belgravia transition this project was put on hold pending further investigation in 2014/15.
Not implemented.
3� Building partnerships Update MBBAR Strategic Plan to reflect the intent of the Alpine Resorts Strategic Plan 2012.
Achieve 80% of areas. Completed.
Complete a fire management plan for the Resort and update annually. This will include a more practical approach to fire management training at the Resort.
Bushfire risk assessment approved by CFA.
Completed.
Complete an Emergency Management Plan for the Resort and update annually.
Emergency Management Plan updated and approved by DELWP.
Completed.
Identify and value Resort Community Service Obligations (CSO’s).
Meet Government regulations.
Completed.
4� Respecting the alpine environment
Realign Pudding Basin walking track to protect endangered Baw Baw Frog habitat.
Improved ecosystem management.
Progress made in planning.
Develop green energy initiatives to reduce greenhouse gases, reduce energy costs.
Decease resort utility costs by 10%.
Utility costs increased 13% primarily due to increase in supply of power costs by 10%.
Sustainability options under consideration.
Update Emergency Management Plan.
Emergency Management Plan updated and approved by DELWP.
Completed.
PAGE | 16
STRATEGIC OBJECTIVES ELEMENTS OUTCOME INDICATOR ACTUAL OUTPUTS
5� Broadening access opportunities
Implement “All Abilities” access initiatives within the Resort.
Increase visitations by 10% from disabled groups.
Initiatives implemented.
No increase in visitation from targeted groups.
Further develop the arts and culture projects to include diverse range of opportunities and activities
Increased number of arts and culture events at the Resort.
No increase in number of arts and culture events.
6� Regulatory reform Provide financial reports to DELWP including quarterly financial reports.
Meet Government regulations.
Completed.
Corporate Plan to include 2012 Strategy Key Performance Indicators (KPI’s).
Meet Government regulations.
Completed.
Report against output performance measures The table below summarises the Resort’s performance against the KPI’s contained in the Corporate Plan.
Chart 8: 2014-2015 KPI performance
KEY PERFORMANCE INDICATOR MEASURE 2013/14 RESULT 2014/15 TARGET 2014/15 RESULT VARIANCE TO TARGET
FINANCIAL GOALS
Increase gross yield/visitor Gross yield/visitor $30 $31 $46 +$15
Increase White Season gross yield/Visitor Gross yield/visitor $45 $64 $56 -$8
Decrease in Government financial support
Decrease in Government financial support
$3.83m $2.69m $3.54m +$0.85m
Increase in Regional jobs EFT staff from Gippsland Region 12 EFT 13 EFT 14 EFT +1 EFT
Develop investment program
Investment program finalised Completed Complete Not
completed N/A
Meet Corporate Plan financial targets Targets met Not met Meet Not met N/A
Increase in winter visitor numbers
5 year average annual visitor numbers 67,234 55,000 68,893 +13,893
Increase winter occupancy rates
5 year average winter occupancy 65% 65% 55% -10%
Increase Green Season Occupancy
Number of green season beds sold 1,130 1,243 (10%
increase) 1,040 -203
PAGE | 17
KEY PERFORMANCE INDICATOR MEASURE 2013/14 RESULT 2014/15 TARGET 2014/15 RESULT VARIANCE TO TARGET
FINANCIAL GOALS continued
Reduce fixed expenditure
Decrease expenditure cost % compared to income (based on past 4 year average)
188% 169% 173% +4%
Identify and have funded CSO’s
Identify and quantify CSO’s nil 100% Nil N/A
Wages as % of total expenditure
Decrease ratio total wages/on costs/Total expenditure
55% 45% 51% +6%
ENVIRONMENTAL GOALS
Reduce energy consumption
Total KwH used in MBBAR facilities Not measured 5% reduction 3.2% increase +8.2%
Implement renewable energy generation
Increase by 1% per annum 0% reduction 2% reduction 0% reduction -2%
Decrease in solid waste to landfill Waste to landfill 1.0% 5.0% 0% N/A
Implement habitat protection programs
Number of habitat protection programs implemented
Met EMP requirements
Meet EMP requirements
Met EMP requirements None
Water Management
Compliance with Department of Health & Human Services requirements
100% 100% 100% N/A
Water Management
Reduce portable water consumption per person excluding snowmaking
Not measured N/A Not measured N/A
SOCIAL GOALS
Completion of ARCC Woollcott satisfaction surveys
Increase in NPS satisfaction 15
5% increase
(16)
173% increase
(41)
+168%
(+25)
Increased beds available through CABS
Number of resort beds on CABS 9% increase 5% increase No increase -5%
CULTURAL GOALS
Indigenous employment opportunities created
Number of positions available for indigenous
No indigenous employees
Employ minimum one
indigenous staff member
No indigenous employees N/A
Events celebrating resort heritage increase
Number of events recognising resort heritage
10 4 7 +3
PAGE | 18
KEY PERFORMANCE INDICATOR MEASURE 2013/14 RESULT 2014/15 TARGET 2014/15 RESULT VARIANCE TO TARGET
OTHER GOALS
Improve Stakeholder consultation programs
New stakeholder forums attended 4 4 7 +3
Planning timelines meet Council norms
Time to facilitate planning application Met Meet Met N/A
Lease inequities removed
Number of leases containing inequities 0 0 0 N/A
ORGANISATIONAL STRUCTURE
Significant organisational change occurred in 2013/14 after the appointment of Belgravia Leisure as the commercial operator of the Resort.
In 2014/15, the Board undertook additional organisational changes to support Mt Baw Baw’s statutory and regulatory reporting obligations.
Chart 9: Organisational chart
Audit & Risk CommitteeRandall Cohen – ChairpersonVicky Papachristos – Member
Ben Dunlop/Simon Mahony – Member
Guest ExperiencesManager
Kaye Hawkins
Outdoor OperationsManager
Mal Rowsell
Food & BeverageManager
Jason Lowe
Resort GeneralManagerAlex Flint
Board of ManagementVicky Papachristos – Chair
Randall Cohen – Deputy ChairBen Dunlop – MemberDavid Bates – Member
Grace La Vella – Member
Commercial OperatorBelgravia Leisure Pty Ltd
Accountable OfficerCraig Jensz1
Administrative and Board Executive ServicesLion Capital Advisory Pty Ltd1
Note: 1. Craig Jensz is the Managing Director of Lion Capital Advisory Pty Ltd.
Governing Board
BOARD FUNCTIONS
The functions of the Board as set out under Section 38 of the Alpine Resorts (Management) Act 1997 are:
GOVERNANCE & ORGANISATIONAL STRUCTURE
PAGE | 19
aa) to plan for the development, promotion, management and use of the resort in accordance with the object of this Act;
ab) to: a) develop and promote; or b) facilitate the development or the
promotion by others of the use of the resort in accordance with the object of this Act;
ac) to manage the Alpine Resort in accordance with the object of this Act;
ad) to contribute to the development of the Alpine Resorts Strategic Plan and other strategic planning for Alpine Resorts as a whole;
ae) to undertake research into Alpine Resort issues;
af) to contribute to and support the operation of the Alpine Resorts Co-ordinating Council;
ag) to prepare and implement a Strategic Management Plan for each such Resort;
ah) to expend or apply revenue of the Board in accordance with a direction of the Minister under section 36(1A);
a) to act as a committee of management of any Crown land deemed to be permanently reserved under the Crown Land (Reserves) Act 1978 in the resort;
b) to contribute, together with Tourism Victoria, established under the Tourism Victoria Act 1992, and the Council, to the overall promotion of Alpine Resorts;
c) to develop a tourism and marketing strategy for and to promote the resort and to collect and expend voluntary contributions from commercial undertakings in the resort for this purpose;
d) to provide services in the nature of –
a. garbage disposal;
b. water supply;
c. gas;
d. drainage;
e. sewerage;
f. electricity;
g. roads;
h. fire protection;
i. snowmaking;
j. transport;
for the resort and to charge contributions for the provision of those services;
e) to carry out any other function conferred on the Board by this or any other Act.
A Board must perform its functions in an environmentally sustainable way.
The Board conducts its business with transparency and accountability in accordance with statutory requirements and Government policy. During the reporting period, the Board has:
l Complied with corporate and Government standards;
l Ensured awareness by Belgravia Leisure and Resort staff of requirements under statutory and Government policies;
l Managed its affairs with financial probity; and
l Met the requirements of Government policy and relevant legislation.
PAGE | 20
Board Appointments Members of the Board are appointed by the Minister for Environment, Climate Change and Water.
Appointments to the Board during the reporting period 1 November 2014 to 31 October 2015 were:
Chart 10: Board members
BOARD MEMBER PERIOD OF APPOINTMENT
Vicky PapachristosChair April 2013 to 31 October 2015Deputy Chair from 29 April 2010 to April 2013
Randall Cohen
Deputy Chair April 2013 to 31 October 2015Board Member from 29 April 2010 to April 2013
Ben Dunlop Board Member from 21 June 2014 to 31 October 2015
David Bates Board Member from 1 November 2014 to 31 October 2015
Grace La Vella Board Member from 1 November 2014 to 31 October 2015
Board Member profilesVicky Papachristos – Chair
Vicky has spent over 25 years as a management and marketing executive with major corporations in Australia and the USA. Vicky’s work has spanned Petrochemicals, Banking, Sport, IT & Retailing, holding senior roles in Shell, Westpac, Visa, Myer, the Sydney Olympics and Paralympics as well as an IT start-up in the US.
Vicky’s expertise is in strategy and marketing responsible for the design, development and launch of several major customer facing business initiatives. Vicky also has extensive expertise in setting up new and enhancing existing business operations.
In 2006, Vicky formed Currant Marketing – an independent consultancy in the fields of marketing, loyalty and customer strategy specialising in retail and consumer products.
Vicky also brings significant Board experience. She is a Director of Coventry Group Limited, a Director of GMHBA Private Health Insurance and was an Independent Director of EFTPOS Payments Australia Limited until November 2015 when her term expired.
Vicky is a keen skier and road cyclist and holds a Chemical Engineering degree as well as an MBA from the AGSM. She is a member of the Australian Institute of Company Directors and the Alpine Resorts Coordinating Council.
Randall Cohen – Deputy Chair
Randall has a wealth of professional experience in commercial and legal project work for the public sector, the private sector and at the interface between the public and private sectors. Randall has assisted a broad array of Victorian Government Departments in delivery of major projects with emphasis on infrastructure, resources, energy, risk management, litigation, and dispute resolution. Randall also has extensive experience in leading projects for major private sector companies in Victoria’s energy industry. Since 1999, Randall has provided niche consulting services. Prior to that Randall worked as General Counsel and Regulatory Manager for APA GASNet Pty Ltd, as Corporate Solicitor for Alcoa of Australia Ltd, and as a solicitor with major law firm, Mallesons Stephen Jacques.
PAGE | 21
Ben Dunlop - Member
Ben is a fully qualified Certified Practising Accountant (CPA), with in excess of seventeen years’ experience in the accounting / finance sector, including four years as Financial Accountant at Hawthorn Football Club.
Ben has experience in a range of industry sectors including taxation, business services, health sector, information technology and sport and leisure, along with experience in the United Kingdom.
David Bates - Member
David brings with him a wealth of business experience gained from over 45 years in business and people management, working in the banking and finance industries both locally and overseas before establishing his own advisory and building services businesses.
David currently provides building services, with roles ranging from project management to ‘hands on’ construction on a variety of tasks.Jacqui is a long time downhill skier and has skied most of the resorts in Victoria and NSW since being a teenager.
Grace La Vella - Member
Grace is a highly experienced office manager, mentor and executive assistant. She has extensive corporate governance, community development and business experience having a career spanning 40 years across Local Government, business, nursing, education and administration. Grace formally held the position of Student Services Executive Assistant and Office Manager at Carey Baptist Grammar and a 10 year association in various roles over a 10 year period. She was elected to the Manningham City Council for 2 terms.
Grace has served on a number of Boards and Advisory Committees over the past twenty years including Ministerial appointment to the Road Based Public Transport Advisory Council, Director on the Whitehorse Manningham Regional Library Corporation, Director Doncare Board, and Board member on the Victorian Local Governance Association. She is currently working as a mentor and advisor.
Chart 11: Board meeting attendance register
#15821/11/14
#15912/12/14
#1606/02/15
#16127/02/15
#16227/03/15
#16330/04/15
#16406/06/15
#16526/06/15
#16631/07/15
#16728/08/15
#16824/09/15
#16922/10/15
# OF MEETINGS ATTENDED
Vicky Papachristos 12/12
Randall Cohen A 11/12
Ben Dunlop A 11/12
David Bates 12/12
Grace La Vella 12/12
(Tick = Attended) (A = Apology)
PAGE | 22
AUDIT & RISK COMMITTEE MEMBERSHIP AND ROLES
The Audit & Risk Committee consists of two members and a chairman. All members and the chairman are independent members, as indicated below. Members are appointed by the Board, usually for a three year term, and are subject to the committee’s terms of reference.
The role of the Audit & Risk Committee is to oversee and advise the Board on matters of accountability and internal control affecting its operations.
The main responsibilities of the Audit & Risk Committee include the oversight of:
l �the financial performance of the Mt Baw Baw;
l the financial reporting process;
l �the scope of work and performance of the internal and external auditors;
l the operation and implementation of the risk management framework;
l matters of accountability and internal control affecting the operations of Mt Baw Baw; and
l �the effectiveness of management information systems and other systems of internal control.
Membership of the committee in 2014/15 comprised:
l Randall Cohen, Chairman (independent)
l Vicky Papachristos (independent)
l Ben Dunlop (independent) (term commenced 26 June 2015)
l Simon Mahony (independent) (term completed 25 June 2015)
Meetings are scheduled quarterly and at any other time on request of a committee member or the internal or external auditor. In 2014/15, the committee met five times. Attendance of committee members is detailed in the table below.
Chart 12: Audit & Risk Committee meeting attendance register
#4421/11/2014
#4512/12/2014
#4627/02/2015
#4726/06/2015
#4828/08/2015
NUMBER OF MEETINGS ATTENDED
Randall Cohen 5/5
Vicky Papachristos A 4/5
Ben Dunlop - - - 2/2
Simon Mahony - - 3/3
(Tick = Attended) (A = Apology)
PAGE | 23
OCCUPATIONAL HEALTH & SAFETY
The Board is committed to maintaining a healthy and safe work environment for staff, contractors and visitors. All activities throughout the Resort are subject to Occupational Health & Safety (“OH&S”) reviews to ensure staff and visitors are not at risk and to:
l Encourage individuals to practice work safety by providing information, instruction and training;
l Provide safe plant and systems of work; and
l Ensure compliance with legislative requirements and current industry standards
The Resort’s OH&S Representative underwent training during 2015 to ensure maintenance of skills and knowledge with respect to OH&S. Departmental OH&S meetings were conducted regularly, minuted and action items implemented.
The Resort’s executive management team met weekly during 2014/15 and on each occasion OH&S was an agenda item. The workplace health & safety committee met quarterly to discuss specific OH&S issues. All ‘non-reportable’ OH&S related incidents were investigated by the Resort General Manager to ensure appropriate responses were taken and assess any changes required. All ‘reportable’ issues of which there were one, were reported to Worksafe.
The majority of Staff at the Resort had first aid training during the year.
DEPARTMENT’S PERFORMANCE AGAINST OH&S MANAGEMENT MEASURES
Chart 13: Performance against OH&S management measures
OH&S TYPE PERIODSTAFF
NUMBER AFFECTED
TOTAL HOURS
AVERAGE HRS/
INDIVIDUAL
Sick Leave
2013/14 14 449 32
2014/15 Target n/a 560
(70 days) n/a
2014/15 10 654 65
WorkCover
2013/14 4 359 90
2014/15 Target n/a 560
(70 days) n/a
2014/15 4 344 86
Workforce DataTRAINING AND DEVELOPMENT
During 2014/15, staff skills were improved through training and external study programs.
The following training was delivered via external facilitators:
l Australian Ski Patrol Association (ASPA) Advanced Emergency Care Course;
l Level 2 senior first aid;
l Responsible Service of Alcohol (RSA);
l Excavator;
l Chainsaw;
l Drug and Alcohol;
l OH&S; and
l Safe Food Handling.
PAGE | 24
The following training was delivered in-house using existing staff expertise:
l RMS (Accommodation Database);
l Ordermate POS training;
l Customer experience training; and
l Specialist resort vehicle training (Rhinos, Tractor, Skidoo, Polaris).
STAFF INDUCTION PROGRAM
The staff induction program is a compulsory program for all new employees. A key focus of this year’s staff induction program was behavioural accountability. As a result of the program, winter season staff adhered to a zero tolerance alcohol and drugs policy. This policy was supported by Resort stakeholders and the Victorian Police.
PUBLIC ADMINISTRATION VALUES AND EMPLOYMENT PRINCIPLES
Victorian Public Service values and principles are applied in the appointment and management of staff at Mt Baw Baw as outlined below.
The public sector values are:
l Responsiveness;
l Integrity;
l Impartiality;
l Accountability;
l Respect;
l Leadership;
l Human rights.
The Board follows the employment and conduct principles set out in the Public Administration Act, 2004 and ensures employment decisions are based on merit, public sector employees are treated fairly and reasonably, equal employment opportunity is provided, human rights are upheld, and employees have a reasonable avenue of redress against unfair or unreasonable treatment.
PAGE | 25
COMPARATIVE WORKFORCE DATA
Chart 14: Staffing profile summary
2014/15 2013/14 2012/13
Male Female Total Male Female Total Male Female Total
Executive Officers 2 0 2 2 0 2 2 1 3
Senior management 3 1 4 3 1 4 3 1 4
Other full time staff 11 5 16 8 6 14 8 7 15
Winter season staff 41 37 78 44 36 80 51 37 88
TOTAL 57 43 100 57 43 100 64 46 110
EXECUTIVE OFFICER DATA
An Executive Officer is defined as a person employed as a public service body head or other executive under Part 3, Division 5 of the Public Administration Act 2004.
As at 31 October 2015, Mt Baw Baw had one Executive Officer employed on an ongoing basis. Note 21 in the Financial Statements details the amount of remuneration paid to Executive Officers over the course of the financial year.
Chart 15: Number of Executive Officers (ongoing and special projects)
ALL ONGOING SPECIAL PROJECTS
Number Variance Number Variance Number Variance
Remuneration less than $100,000 0 0 0 0 0 0
Remuneration greater than $100,000 1 0 1 0 0 0
TOTAL 1 0 1 0 0 0
Chart 16: Number of Executive Officers by gender (ongoing and special projects)
ONGOING SPECIAL PROJECTS
Male Female Variance Male Female Variance
Remuneration less than $100,000 0 0 0 0 0 0
Remuneration greater than $100,000 1 0 0 0 0 0
TOTAL 1 0 0 0 0 0
PAGE | 26
Chart 17: Reconciliation of Executive Officer numbers
2014/15 2013/14
Executive Officers with total remuneration over $100,000 (Financial Statement Note 21(c))
1 2
AddExecutives employed with total remuneration below $100,000
0 1
Less Separations (0) (1)
Total Executive Officer numbers at 31 October 1 2
Other DisclosuresIMPLEMENTATION OF THE VICTORIAN INDUSTRY PARTICIPATION POLICY (VIPP)
The Victorian Industry Participation Policy Act 2003 requires Public Bodies and departments to report on the implementation of the Victorian Industry Participation Policy (“VIPP”).
Departments and public bodies are required to apply VIPP in all procurement and project activities valued at over $3 million in metropolitan Melbourne and $1 million in regional Victoria. The Resort has not commenced or completed any contracts during 2014/15 to which VIPP applied.
CONSULTANCY EXPENDITURE
The Board outsourced a number of its activities during the year as shown in the table below. These contracts/expenditure have been reviewed within the Victorian Auditor-General’s Office annual processes.
DETAILS OF CONSULTANCIES OVER $10,000
Chart 18: Consultancies over $10,000
CONSULTANT SERVICES 2013/14
TOTAL (EXCL. GST)
2014/15 TOTAL
(EXCL. GST)
Drive Climb Fly Pty Ltd
Marketing & event services $145,707 $24,219
Maurice Copsey - (Snowfield Engineering)
Engineering services $13,944 $101,842
Lion Capital Advisory Pty Ltd
Administration & Board executive support
$283,754 $320,710
RSM Internal audit & probity $28,543 $86,596
Shine Wing Australia
Audit & compliance Nil $12,552
The Shannon Company PR Nil $17,875
DETAILS OF CONSULTANCIES (VALUED AT $10,000 OR GREATER)
In 2014/15, there were 6 consultancies where the total fees payable to the consultants were $10,000 or greater. The total expenditure incurred during 2014/15 in relation to these consultancies is $563,794 (excl. GST).
DISCLOSURE OF MAJOR CONTRACTS
Mt Baw Baw did not award any contracts valued at $10m or more during 2014/15.
PAGE | 27
FREEDOM OF INFORMATION
The Board is considered to be a Government Agency under the terms of the Freedom of Information Act 1982. The Act allows the public a right of access to documents held by the Board. Freedom of Information requests are made in writing describing the documents requested.
During the reporting period (ending 31 October 2015) there have been no requests for information received.
Written requests, as detailed in Section 17 of the Freedom of Information Act 1982 should be forwarded with the prescribed fee to:
Craig Jensz – Accountable Officer Freedom of Information Officer Mt Baw Baw Alpine Resort PO Box 117 RAWSON VIC 3825
INFORMATION
The Board held and maintained the following categories of documents:
l Correspondence files;
l Minutes of the various meetings held by the Board;
l Technical reports and statistical information on Mt Baw Baw management matters;
l Leasehold documents related to Mt Baw Baw sites; and
l Plans, charts and other data covering Mt Baw Baw operations and planning.
Reports and general information related to the Board are available for inspection at the office of the Board. The Board’s website is a source of considerable information. The fee for any FOI application is $26.50. Other enquiries may be sent to Craig Jensz, the Authorised Officer of Mt Baw Baw, PO Box 117, Rawson, VIC, 3825, stating as clearly as possible the nature of the request.
Once the Annual Report is tabled in Parliament, it will then be placed on the Resort website.
COMPLIANCE WITH BUILDING ACT 1993
The Municipal Building Surveyor (“MBS”) at Mt Baw Baw is Stephen Bond of Central Gippsland Building Consultants. Inspections of lodges are principally undertaken by a CFA officer. The majority of lodge leaseholders remain proactive and able to demonstrate compliance relating to the testing of fire safety equipment at the commencement of the ski season.
Building-related risks have been identified and reduced, and the building owners and managers are far more aware of their responsibilities and options to achieve compliance with maintenance of essential services. Again the year was free of any major structural fire incidents and education of owners and safety for occupants was improved.
A fire summit is held at the Resort every year (conducted by CFA) along with an annual fire prevention weekend in late November.
PAGE | 28
NATIONAL COMPETITION POLICY
The Board adheres to the principles of the National Competition Policy to ensure that any business competition with private entities takes place in an environment where the Board has no competitive advantage.
Competitive neutrality seeks to enable fair competition between Government and private sector businesses. Any advantages or disadvantages that Government businesses may experience, simply as a result of Government ownership, should be neutralised. The Board continues to implement and apply this principle in its business undertakings.
Purchasing of Goods
The Board, as an independent manager of and investor in the Resort’s assets, purchases services and goods, in line with the Victorian Government’s Purchasing Guidelines and VIPP disclosures. In doing this, the Board applies the following principles:
l Value for Money;
l Open and Fair competition;
l Accountability;
l Full Cost Recovery.
The Board updated its Procurement Policy in 2014/15 to ensure compliance with Victorian Government Purchasing Board Purchasing Guidelines.
COMPLIANCE WITH THE PROTECTED DISCLOSURE ACT 2012
The Protected Disclosure Act 2012 (“PD Act”) enables people to make disclosures about improper conduct by public officers and public bodies. The PD Act aims to ensure openness and accountability by encouraging people to make disclosures and protecting them when they do.
WHAT IS A ‘PROTECTED DISCLOSURE’?
A protected disclosure is a complaint of corrupt or improper conduct by a public officer or a public body.
The Board is a “public body” for the purposes of the PD Act.
WHAT IS ‘IMPROPER OR CORRUPT CONDUCT’?
Improper or corrupt conduct involves substantial:
l Mismanagement of public resources; or
l Risk to public health or safety or the environment; or
l Corruption.
The conduct must be criminal in nature or a matter for which an officer could be dismissed.
HOW DO I MAKE A ‘PROTECTED DISCLOSURE’?
You can make a protected disclosure about the Board or its Board members, officers or employees by contacting DELWP or Independent Broad-Based Anti-Corruption Commission (“IBAC”) on the contact details provided below.
Please note that the Board is not able to receive protected disclosures.
PAGE | 29
HOW CAN I ACCESS THE BOARD’S PROCEDURES FOR THE PROTECTION OF PERSONS FROM DETRIMENTAL ACTION?
The Board has established procedures for the protection of persons from detrimental action in reprisal for making a protected disclosure about The Board or its employees. You can access the Board’s procedures at its office.
CONTACT
Independent Broad-Based Anti-Corruption Commission Victoria
Address: Level 1, North Tower,459 Collins Street, Melbourne VIC 3000.Mail: IBAC, GPO Box 24234, Melbourne VIC 3001Ph: 1300 735 135www.ibac.vic.gov.au Email: See the website above for the secure email disclosure process, which also provides for anonymous disclosures.
DISCLOSURE UNDER THE PROTECTED DISCLOSURE ACT 2012
In 2014/15 there were no disclosures received.
COMPLIANCE WITH CARERS RECOGNITION ACT 2012
The Protected Disclosure Act 2012 recognise, promote and value the role of people in care relationships along with the varying needs and benefits for people in care relationships.
Mt Baw Baw recognises Carers Cards holders and provides discounted services to Carers involved in a care relationship at the Resort. Furthermore, carers of vision impaired visitors are also afforded accommodation and lift pass discounts.
OFFICE-BASED ENVIRONMENTAL IMPACTS
Given Mt Baw Baw is located in a pristine sub-alpine National Park, the Board is committed to reducing its environmental impacts.
As the information presented below was not disclosed in the previous reporting period, performance trends cannot be analysed.
Energy Use
Targets (megajoules) 2,046,355
Energy consumptions (megajoules) 1,955,656
Consumption per FTE 41,609
Consumption per FTE is based on the following formula: 130 FTE x 3 months (white season) + 20 FTE x 9 months / 12 = Average FTE over the year of 47.
Actions taken to reduce energy use in 2014/15:
l �Use of smaller more efficient generators;
l �Reduction in the number of permanent employees living at the Resort;
l �Consolidation approach to staff accommodation;
l �Reduction in the number of resort vehicles;
l �Use of LED lighting when possible.
PAGE | 30
Waste Production
Targets (Kg’s per year) N/A
Actual waste (Kg’s per year) 52,760
Waste per FTE (Averaged at 47) 1,223
Actions taken to reduce waste production in 2014/15:
l �Recycling awareness and education for Resort guests;
l New signage to encourage guests to take away waste and recycle accordingly.
Paper Use
Targets (A4 reams) None Set in 2014
Actual use (A4 reams) Not measured
Use per FTE N/A
% of recycled content in copy paper purchased Unknown
Actions taken to reduce paper use in 2014/15:
l �Reduction in the number of printer and copier machines within the Resort;
l �Increased use of electronic media for business management infrastructure, including payroll and employee rostering;
l �The reuse of scrap paper;
l �A greater focus on electronic marketing mediums;
l �Use of ‘Pay by phone’ resort entry system and the electronic payment portal;
l �Redevelopment of the Resort’s website to reduce manual bookings.
Transportation
Targets (Fuel consumption) Not set
Targets (Kilometres travelled) Not set
Actual (Fuel consumption) 13.1 per 100km
Actual (Kilometres travelled) 210,672
% of employees regularly carpooling/public transport 25%
Actions taken to reduce reliance on vehicular transportation in 2014/15:
Details in respect of the following items have been included in this annual report:
l Reduction in the number of resort vehicles;
l Increased use of carpooling for staff;
l All Resort logistic tasks are now planned and booked centrally to provide efficiencies whereas previously these tasks were completed on a reactive, as needed basis;
l Increased use of public transport by staff travelling to and from Melbourne then car-pooling from Moe or Warragul;
l Reduction in services at the Resort in the green season.
PROCUREMENT
Incorporating environmental considerations into procurement activity
The Board approved a new Procurement Policy in June 2015. Among a number of requirements within the evaluation and selection section of this policy is a consideration of environmental impact of a new supply arrangement.
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Products, contracts or tenders specifying or utilising sustainability clauses
There were no supply arrangements initiated with specific environmental or sustainability requirements.
ADDITIONAL DEPARTMENTAL INFORMATION AVAILABLE ON REQUEST
The following information is available from the Accountable Officer, Craig Jensz, on request, subject to the Freedom of Information Act 1982:
l Details of shares held by a senior officer as nominee, or held beneficially in a statutory authority or subsidiary;
l Details of publications produced by the Board, and how these can be obtained;
l Details of any major external reviews carried out by the Board;
l Details of major research and development activities undertaken by the Board;
l Details of overseas visits undertaken, including a summary of the objectives and outcomes of each visit; and
l Details of major promotional, public relations and marketing activities undertaken to develop community awareness of the Board and its services.
ADDITIONAL INFORMATION INCLUDED IN THE ANNUAL REPORT
Details in respect of the following items have been included in this annual report:
l Assessments and measures undertaken to improve the occupational health and safety of employees;
l A statement on industrial relations for the Board, and details of time lost through industrial accidents and disputes;
l A list of the major Board committees; the purposes of each committee; and the extent to which the purposes have been achieved;
l A statement of completion of declarations of pecuniary interests by relevant officers;
l Details of changes in prices, fees, charges, rates and levies charged by the Board; and
l Details of all consultancies and contractors.
COMPLIANCE WITH DATAVIC ACCESS POLICY
Consistent with the DataVic Access Policy issued by the Victorian Government in 2012, the Board intends that data tables that it may produce in the future will be available at http://www.data.vic.gov.au in machine readable format.
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Risk Management Attestation ATTESTATION FOR COMPLIANCE WITH THE AUSTRALIAN/NEW ZEALAND RISK MANAGEMENT STANDARD
I, Vicky Papachristos, Chair of the Board, certify that the Mt Baw Baw Alpine Resort has risk management processes in place consistent with AS/NZS ISO 31000:2009 and an internal control system is in place that enables the executive to understand, manage and satisfactorily control risk exposures. The Mt Baw Baw Alpine Resort Management Board verifies this assurance and that the risk profile of the Mt Baw Baw Alpine Resort has been critically reviewed within the last 12 months.
Vicky Papachristos
Chair, Mt Baw Baw Alpine Resort Management Board
Gifts, Benefits and Hospitality Attestation
I, Vicky Papachristos certify that:
l my public entity has gifts, benefits and hospitality policies and procedures in place;
l these policies and procedures are consistent with the minimum requirements and accountabilities outlined in the Gifts, Benefits and Hospitality Policy Framework for the Victorian Public Sector – Revised April 2012 issued by the Public Sector Standards Commissioner; and
l these policies and procedures are updated, promulgated and provided to the audit committee for review at least once a year.
Vicky PapachristosChair, Mt Baw Baw Alpine Resort Management Board
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AUDITOR-GENERAL’S REPORT
PAGE | 34
PAGE | 35
FINANCIAL STATEMENTSFOR THE FINANCIAL YEAR ENDED 31 OCTOBER 2015
2 | P a g e D R A F T
ADDRESS TO THE MINISTER
[XX] February 2015
The Honourable Lisa Neville MP Minister for Environment, Climate Change and Water
Level 7, 8 Nicholson St EAST MELBOURNE VIC 3002
Dear Minister Neville
MT BAW BAW ALPINE RESORT MANAGEMENT BOARD – ANNUAL REPORT
We have much pleasure in submitting to you for presentation to Parliament, the Annual Report of the Mt Baw Baw Alpine Resort Management Board, covering the period 1 November 2013 to 31 October 2014.
The Annual Report has been prepared in accordance with the Financial Management Act 1994 and the
Alpine Resorts (Management) Act 1997.
On behalf of the Board, we extend our appreciation for your support and also the support and cooperation of the Department of Environment and Primary Industries throughout the year.
Yours sincerely,
Vicky Papachristos Craig Jensz
Chair Accountable Officer
Mt Baw Baw Alpine Resort Management BoardDECLARATION BY THE CHAIRPERSON AND ACCOUNTABLE OFFICER
The attached financial statements for the Mount Baw Baw Alpine Resort Management Board have been prepared in accordance with Standing Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions, Australian Accounting Standards including Interpretations, and other mandatory professional reporting requirements.
We further state that, in our opinion, the information set out in the comprehensive operating statement, balance sheet, statement of changes in equity, cash flow statement and accompanying notes, presents fairly the financial transactions during the year ended 31 October 2015 and financial position of the Board at 31 October 2015.
At the time of signing, we are not aware of any circumstance which would render any particulars included in the financial statements to be misleading or inaccurate.
We authorise the attached financial statements for issue on 19 January 2016.
Allan Bawden Craig JenszChairperson Accountable Officer/ Chief Finance and Accounting Officer
Melbourne Melbourne19 January 2016 19 January 2016
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COMPREHENSIVE OPERATING STATEMENTFOR THE FINANCIAL YEAR ENDED 31 OCTOBER 2015
NOTE 2015 $
2014 $
Income from transactions
Interest 2(a) 6,135 5,400
Sale of goods and services 2(b) 1,218,098 1,312,749
Government funding 2(c) 3,543,763 3,822,099
Site & service charges 2(d) 528,554 456,386
Visitor fees 2(e) 1,919,478 1,871,435
Other revenue 2(f) 215,469 322,834
Total income from transactions 7,431,497 7,790,903
Expenses from transactions
Employee benefits 3(a) 626,858 2,308,096
Depreciation expense 3(b) 1,075,302 1,050,868
Interest expense 3(c) 18,241 29,952
Supplies and services 3(d) 805,771 1,353,547
Utilities 662,224 609,896
Marketing expenses 515,021 677,556
Administration expenses 531,714 582,317
Contractor expenses 3(e) 2,915,863 1,321,294
Other operating expenses 3(f) 660,779 608,539
Total expenses from transactions 7,811,773 8,542,065
Net result from transactions (380,276) (751,162)
Other economic flows included in net result
Net gain/(loss) on disposal of non-financial assets 4 13,676 (1,793)
Other gain/(loss) from other economic activities 4 (557) (48)
Total other economic flows included in net result 13,119 (1,841)
Net result (367,157) (753,003)
Other economic flows – other comprehensive income
Items that will not be reclassified to net result
Changes in physical asset revaluation surplus - 385,660
Total other economic flows – other comprehensive income - 385,660
Comprehensive result (367,157) (367,343)
The above Comprehensive Operating Statement should be read in conjunction with the accompanying notes.
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BALANCE SHEETAS AT 31 OCTOBER 2015
NOTE 2015 $
2014 $
Financial assets
Cash and cash equivalents 16 480,611 145,137
Receivables 5 288,333 957,522
Total financial assets 768,944 1,102,659
Non-financial assets
Inventories 6 59,602 80,889
Prepayments 7 109,576 107,966
Property, infrastructure, plant and equipment 8(a) 16,799,052 17,527,868
Intangible assets 9 33,910 23,901
Total non-financial assets 17,002,140 17,740,624
Total assets 17,771,084 18,843,283
Liabilities
Payables 10 508,630 1,077,960
Interest bearing liabilities 11 142,379 270,433
Provisions 12 192,660 235,449
Revenue in advance 13 37,500 57,770
Total liabilities 881,169 1,641,612
Net assets 16,889,915 17,201,671
Equity
Accumulated surplus/(deficit) (425,562) (58,405)
Physical asset revaluation surplus 11,836,374 11,836,374
Contributed capital 14 5,479,103 5,423,702
Net Worth 16,889,915 17,201,671
Commitments 17
Contingent assets and liabilities 19
The above Balance Sheet should be read in conjunction with the accompanying notes.
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STATEMENT OF CHANGES IN EQUITYFOR THE FINANCIAL YEAR ENDED 31 OCTOBER 2015
ACCUMULATED SURPLUS/ (DEFICIT)
PHYSICAL ASSET REVALUATION
SURPLUS
CONTRIBUTED CAPITAL TOTAL
$ $ $ $
Balance at 1 November 2013 694,598 11,450,714 5,423,702 17,569,014
Net result for the year (753,003) - - (753,003)
Other comprehensive income – change in physical asset revaluation surplus - 385,660 - 385,660
Balance at 31 October 2014 (58,405) 11,836,374 5,423,702 17,201,671
Net result for the year (367,157) - - (367,157)
Capital appropriations - - 55,401 55,401
Balance at 31 October 2015 (425,562) 11,836,374 5,479,103 16,889,915
The above Statement of Changes in Equity should be read in conjunction with the notes to the financial statements.
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CASH FLOW STATEMENTFOR THE FINANCIAL YEAR ENDED 31 OCTOBER 2015
NOTE 2015 $
2014 $
Cash flows from operating activities
Cash receipts in the course of operations 4,916,610 4,319,353
Cash receipts from Government 3,543,763 2,972,099
Interest received 6,135 5,400
GST recovered from the ATO 203,812 119,198
Total cash receipts 8,670,320 7,416,050
Cash payments to suppliers for goods and services (4,023,481) (3,729,097)
Cash payments to employees (670,204) (2,369,372)
Cash payments to contractors (3,207,449) (1,297,290)
Interest paid (18,241) (29,952)
Total cash payments (7,919,375) (7,425,711)
Net cash flows from/(used in) operating activities 15 750,945 (9,661)
Cash flows from investing activities
Purchases of non-financial assets (368,301) (247,233)
Proceeds from sale of assets 25,482 -
Net cash flows from/(used in) investing activities (342,819) (247,233)
Cash flows from financing activities
Proceeds from borrowings - 10,845
Repayment of borrowings (6,415) (4,420)
Repayment of finance leases (121,638) (167,802)
Proceeds - capital contributions by State Government 55,401 -
Net cash flows from/(used in) financing activities (72,652) (161,377)
Net increase/(decrease) in cash and cash equivalents 335,474 (418,271)
Cash and cash equivalents at beginning of financial year 145,137 563,408
Cash and cash equivalents at end of financial year 16 480,611 145,137
The above Cash Flow Statement should be read in conjunction with the notes to the financial statements.
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Note 1: Statement of significant accounting policiesThe Mount Baw Baw Alpine Resort Management Board (the Board) has been established pursuant to the Alpine Resorts (Management) Act 1997 (the Act), which outlines the functions, responsibilities and requirements of the Board.
The annual financial statements represent the audited general purpose financial statements for the Board for the period ending 31 October 2015.
The purpose of the financial statements is to provide users with information about the Board’s stewardship of resources entrusted to it.
a) STATEMENT OF COMPLIANCE
These general purpose financial statements have been prepared in accordance with the financial reporting requirements of the Financial Management Act 1994 (FMA) and applicable Accounting Standards (AASs) which include interpretations, issued by the Australian Accounting Standards Board (AASB). Where appropriate, those AASs paragraphs applicable to not-for-profit entities have been applied.
Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.
These annual financial statements were authorised for issue by the Board on 19 January 2016.
b) BASIS OF PREPARATION
The accrual basis of accounting has been applied in the preparation of these financial statements whereby assets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid.
In the application of AASs, management is required to make judgments, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstance, the results of which form the basis of making the judgments. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision, and future periods if the revision affects both current and future periods. Judgements and assumptions made by management in the application of AASs that have significant effects on the financial statements and estimates, relate to
• the fair value of land, buildings, infrastructure, plant and equipment (refer to Note1(f)); and
• actuarial assumptions for employee benefit provisions based on likely tenure of existing staff, patterns of leave claims, future salary movements and future discount rates (refer to Note 1(j)).
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 OCTOBER 2015
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These financial statements are presented in Australian dollars, and prepared in accordance with the historical cost convention except for non-financial physical assets which, subsequent to acquisition, are measured at a revalued amount being their fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent impairment losses. Revaluations are made with sufficient regularity to ensure that the carrying amounts do not materially differ from their fair value.
Consistent with AASB 13 Fair Value Measurement, the Board determines the policies and procedures for both recurring fair value measurements such as property, infrastructure, plant and equipment in accordance with the requirements of AASB 13 and the relevant Financial Reporting Directions.
All assets for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
• Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities
• Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; and
• Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable
For the purpose of fair value disclosures, the Board has determined classes of assets on the basis of the nature, characteristics and risks of the asset and the level of the fair value hierarchy as explained above.
In addition, the Board determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level of input that is significant to the fair valuation measurement as a whole) at the end of each reporting period.
The Valuer-General Victoria (VGV) is the Board’s independent valuation agency. The Board, in conjunction with VGV, monitors changes in the fair value through relevant data sources to determine whether revaluation is required.
c) REPORTING ENTITY
The financial statements cover the Board as an individual reporting entity. The Board is an entity established under the Alpine Resorts (Management) Act 1997. Its principal address is:
Mount Baw Baw Alpine Resort Management Board
Mount Baw Baw VIC 3833
The Board is a public body acting on behalf of the Crown, and reporting to the Department of Environment, Land, Water and Planning (DELWP).
Objectives
The overall objective of the Board is to develop, promote, manage and use Mt Baw Baw in an environmentally and financially sustainable way for alpine recreation and tourism in all seasons by persons from varied cultural and economic groups.
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d) SCOPE AND PRESENTATION OF FINANCIAL STATEMENTS
Comprehensive Operating Statement
The Comprehensive Operating Statement comprises three components, being ‘net result from transactions’ (or termed as ‘net operating balance’), ‘other economic flows included in net result’, as well as ‘other economic flows – other comprehensive income’. The sum of the former two, together with the net result from discontinued operations, represents the net result.
The net result is equivalent to profit or loss derived in accordance with AASs.
‘Other economic flows’ are changes arising from market re-measurements. They include:
• Gains and losses from disposals, revaluations and impairments of non-financial physical and intangible assets;
• Actuarial gains and losses arising from defined benefit superannuation plans;
• Fair value changes of financial instruments and agricultural assets; and
This classification is consistent with the whole of government reporting format and is allowed under AASB 101 Presentation of Financial Statements.
Balance Sheet
Assets and liabilities are presented in liquidity order with assets aggregated into financial assets and non-financial assets.
Current and non-current assets and liabilities are disclosed in the notes, where relevant. In general, non-current assets or liabilities are expected to be recovered or settled more than 12 months after the reporting period, except for the provisions of employee benefits, which are classified as current liabilities if the Board does not have the unconditional right to defer the settlement of the liabilities within 12 months after the end of the reporting period.
Cash Flow Statement
Cash flows are classified according to whether or not they arise from operating, investing, or financing activities. This classification is consistent with requirements under AASB 107 Statement of Cash Flows.
Statement of Changes in Equity
The Statement of Changes in Equity presents reconciliations of each non-owner and owner changes in equity from opening balances at the beginning of the reporting period to the closing balance at the end of the reporting period. It also shows separately changes due to amounts recognised in the “comprehensive result” and amounts related to “transactions with owner in its capacity as owner”.
Rounding of amounts
Amounts in the financial statements (including the notes) have been rounded to the nearest dollar, unless otherwise stated. Figures in the financial statements may not equate exactly due to rounding.
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 OCTOBER 2015
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e) INCOME FROM TRANSACTIONS
Income is recognised to the extent that it is probable that the economic benefits will flow to the entity and the income can be reliably measured at fair value.
Interest
Interest income includes interest received on bank and term deposits and other investments. Interest income is recognised using the effective interest method which allocates the interest over the relevant period.
Sale of goods and services
Income from the sale of goods is recognised when:
• the Board no longer has any of the significant risks and rewards of ownership of the goods transferred to the buyer;
• the Board no longer has continuing managerial involvement to the degree usually associated with ownership, nor effective control over the goods sold;
• the amount of income, and the costs incurred or to be incurred in respect of the transactions, can be reliably measured; and
• it is probable that the economic benefit associated with the transaction will flow to the Board.
Sale of goods and services includes food and beverage and other retail income.
Visitor fees
Revenue is recognised at the point of sale, when services are rendered or when a rate/tariff is fixed for service charges levied under Section 13 of the Act. Infringements are issued to guests who do not pay their visitor fees under the Road Safety Act 1986 and the Road Safety (General) Regulations 2009.
Site & service charges
Site rental is recognised under the terms and conditions of each lease and in accordance with the Board’s role as a Committee of Management of any Crown land deemed to be permanently reserved under the Crown Lands Reserve Act 1978. Service charges are imposed on an annual basis, and revenue is recognised as income when an invoice is raised by the Board.
Government funding
Grants from third parties (other than contributions by owners) are recognised as income in the reporting period in which the Board gains control over the underlying assets.
For reciprocal grants (i.e. equal value is given back by the Board to the provider), the Board is deemed to have assumed control when the Board has satisfied its performance obligations under the terms of the grant. For non-reciprocal grants, the Board is deemed to have assumed control when the grant is receivable or received. Conditional grants may be reciprocal or non-reciprocal depending on the terms of the grant.
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Grants and contributions for capital works from all sources are recognised as operating revenue when an entitlement is established, and disclosed in the operating statement as government grants. However grants and contributions received from Victorian State Government that are deemed as being in the nature of owner’s contributions, in accordance with FRD 119A Transfers through Contributed Capital are accounted for as Equity – Contributed capital.
Other revenue
Other revenue includes income from fuel tax credits, agreement with a third party for supply of electricity and minor miscellaneous items received outside normal operating revenue.
f) EXPENSES FROM TRANSACTIONS
Expenses are recognised as they are incurred and reported in the financial year to which they relate.
Employee benefits expense
These expenses include all costs related to employment (other than superannuation which is accounted for separately) including wages and salaries, fringe benefits tax, leave entitlements, redundancy payments and WorkCover premiums.
Superannuation
The amount recognised in the Comprehensive Operating Statement in relation to employer contributions is simply the employer contributions that are paid or payable to these plans during the reporting period.
Depreciation expense
All infrastructure assets, buildings, plant and equipment (excluding items under operating leases and land) that have finite useful lives are depreciated. Depreciation is generally calculated on a straight line basis, at rates that allocate the asset’s value, less any estimated residual value, over its estimated useful life.
The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period, and adjustments made where appropriate.
The following table indicates the typical estimated useful lives for the different asset classes used in 2014 and 2015 financial years:
2015(years)
2014(years)
Buildings and improvements 9 to 55 9 to 55
Plant and equipment 2 to 20 2 to 20
Land management 4 to 70 4 to 70
Water & sewerage infrastructure 20 to 80 20 to 80
Ski lifts 2 to 30 2 to 30
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 OCTOBER 2015
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Land, which is considered to have an indefinite life, is not depreciated. Depreciation is not recognised in respect to land assets because their service potential has not, in any material sense, been consumed during the reporting period.
Interest expense
Interest expense is recognised in the period in which it is incurred and include:
• short term borrowings;
• finance lease charges.
Other operating expenses
Other operating expenses generally represent the day to day running costs incurred in normal operations.
Supplies and services
Supplies and services expenses are recognised as an expense in the reporting period in which they are incurred. The carrying amounts of any inventories held for sale or use are expenses when sold or used.
Utilities expenses
Utilities expenses are recognised as an expense in the reporting period and represent electricity and gas consumed for the operation of the resort.
Marketing expenses
Marketing expenses are recognised as an expense in the reporting period and represent media promotion, event organisation and general advertising.
Administration expenses
Administration expenses are recognised as an expense in the reporting period and represent costs in relation to motor vehicle, telephone and other general overhead expenses.
Contractor expenses
The Board continued to contract the management and operation of the resort to Belgravia Health & Leisure Group Pty Ltd, a private operator pursuant to the Short Term Management Agreement. The contractor expenses relating to Belgravia Health & Leisure Group Pty Ltd, included the management fee payable to that company, and payment for employee benefits by that company, and purchasing goods and services connected to the cost effective operation of the resort.
The Board also continued to contract Lion Capital Advisory Pty Ltd to provide executive assistance to the Board from 1 June 2014.
g) OTHER ECONOMIC FLOWS INCLUDED IN THE NET RESULT
Other economic flows measure the change in volume or value of assets or liabilities that do not result from transactions.
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Net gain/(loss) on non financial assets
Net gain/(loss) on non financial assets and liabilities includes realised and unrealised gains and losses as follows:
Revaluation gains/(losses) of non financial physical assets
Refer to Note 1(i) Property, infrastructure, plant and equipment.
Net gain/(loss) on disposal of non financial assets
Any gain or loss on the disposal of non financial assets is recognised at the date of disposal and is the difference between the proceeds and the carrying value of the asset at the time.
Impairment of non-financial assets
All assets are assessed annually for indications of impairment, except for inventories (refer Note 1(i)).
If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their possible recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written off as an other economic flow, except to the extent that the write-down can be debited to asset revaluation surplus amount applicable to that class of asset.
If there is an indication that there has been a reversal in the estimate of an asset’s recoverable amount since the last impairment loss was recognised, the carrying amount shall be increased to its recoverable amount. The impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised in prior years.
It is deemed that, in the event of the loss of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made. The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell. Recoverable amount for assets held primarily to generate net cash inflows is measured at the higher of the present value of future cash flows expected to be obtained from the asset and fair value less costs to sell.
Other gains/(losses) from other economic flows
Other gains/(losses) from other economic flows include the gains or losses from:
• The revaluation of the present value of the long service leave liability due to changes in the bond interest rates; and
• reclassified amounts relating to available for sale financial instruments from the reserves to net result due to a disposal or derecognition of the financial instrument. This does not include reclassification between equity accounts due to machinery of government changes or ‘other transfers’ of assets.
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 OCTOBER 2015
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h) FINANCIAL ASSETS
Cash and cash equivalents
Cash and cash equivalents recognised on the Balance Sheet comprise cash on hand and cash at bank, deposits at call and highly liquid investments with an original maturity of three months or less, which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value.
Receivables
Receivables consist of:
• contractual receivables, such as debtors in relation to goods and services and accrued investment income; and
• statutory receivables, such as amounts owing from the Victorian Government and Goods and Services Tax (GST) input tax credits recoverable.
Contractual receivables are classified as financial instruments and categorised as receivables at amortised cost. Statutory receivables, are recognised and measured similarly to contractual receivables (except for impairment), but are not classified as financial instruments because they do not arise from a contract.
A provision for doubtful receivables is recognised when there is objective evidence that the debts may not be collected and bad debts are written off when identified.
Impairment of financial assets
At the end of each reporting period, the Board assesses whether there is objective evidence that a financial asset or group of financial assets is impaired. Objective evidence may include financial difficulties of the debtor, default payments, debts which are more than 60 days overdue, and changes in debtor credit ratings. All financial instrument assets, except those measured at fair value through profit or loss, are subject to annual review for impairment.
Bad and doubtful debts for financial assets are assessed on a regular basis. Those bad debts considered as written off by mutual consent are classified as a transaction expense. Bad debts not written off by mutual consent and the allowance for doubtful receivables are classified as ‘other economic flows’ in the net result.
The amount of the allowance is the difference between the financial asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate.
In assessing impairment of statutory (non-contractual) financial assets, which are not financial instruments, professional judgement is applied in assessing materiality using estimates, averages and other computational methods in accordance with AASB 136 Impairment of Assets.
i) NON-FINANCIAL ASSETS
Inventories
Inventories comprise goods held for sale and supplies and consumables used in the consumption in the ordinary course of resort operations. Inventories are measured at the lower of cost and net realisable value. Cost is measured on the basis of weighted average cost.
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Property, infrastructure, plant and equipment
Property, plant and equipment includes land, buildings, roads, infrastructure, plant, equipment, furniture and motor vehicles. Items with a cost or value in excess of $1,000 and a useful life to the Board of more than one year are capitalised.
All non-financial physical assets are measured initially at cost and subsequently revalued at fair value less accumulated depreciation and impairment. Where an asset is acquired for no or nominal cost, the cost is its fair value at the date of acquisition. Only assets which have a cost or fair value greater than $1,000 are recognised.
Where assets are constructed by the Board, the cost at which they are recorded includes all materials used in construction, direct labour, borrowing costs incurred during construction, and an appropriate share of directly attributable variable and fixed overheads.
Details about the valuation techniques and inputs used in determining the fair value of non-financial physical assets are discussed in Note 8 Property, infrastructure, plant and equipment.
Property, infrastructure, plant and equipment maintenance is managed as part of an ongoing maintenance program. The costs of this maintenance are charged as expenses as incurred, except where they related to the replacement of a major component of an asset, in which case the costs are capitalised and depreciated. Other routine operating maintenance, repair costs and minor renewals are also charged as expenses as incurred.
Non-financial physical assets such as land are measured at fair value with regard to the property’s highest and best use after due consideration is made for any legal or physical restrictions imposed on the asset, public announcements or commitments made in relation to the intended use of the asset. Theoretical opportunities that may be available in relation to the asset are not taken into account until it is virtually certain that the restrictions will no longer apply. Therefore, unless otherwise disclosed, the current use of these non-financial physical assets will be their highest and best uses.
Non-financial physical assets are measured at fair value on a cyclical basis, in accordance with the Financial Reporting Directions (FRDs) issued by the Minister for Finance. A full revaluation normally occurs every five years, based upon the asset’s government purpose classification but may occur more frequently if fair value assessments indicate material changes in values. Independent valuers are generally used to conduct these scheduled revaluations. Certain infrastructure assets are revalued using specialised advisors. Any interim revaluations are determined in accordance with the requirements of the FRDs. Revaluation increases or decreases arise from differences between an asset’s carrying value and fair value.
Net revaluation increases (where the carrying amount of a class of assets is increased as a result of a revaluation) are recognised in ‘other economic flows – other comprehensive income’, and accumulated in equity under the asset revaluation surplus. However, the net revaluation increase is recognised in the net result to the extent that it reverses a net revaluation decrease in respect of the same class of property, infrastructure, plant and equipment previously recognised as an expense (other economic flows) in the net result.
Net revaluation decrease is recognised in ‘other economic flows – other comprehensive income’ to the extent that a credit balance exists in the asset revaluation surplus in respect of the same class of property, plant and equipment. Otherwise, the net revaluation
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 OCTOBER 2015
PAGE | 49
decreases are recognised immediately as other economic flows in the net result. The net revaluation decrease recognised in ‘other economic flows – other comprehensive income’ reduces the amount accumulated in equity under the asset revaluation surplus.
Revaluation increases and revaluation decreases relating to individual assets within an asset class are offset against one another within that class but are not offset in respect of assets in different classes.
Asset revaluation surplus is not transferred to accumulated surplus on de-recognition of the relevant asset.
Land, building and infrastructure assets were reviewed for material movements according to FRD 103F - Non-current physical assets. The assessment is carried out annually. The Board considered the movement in indices provided by the VGV in order to determine whether any material movements in value have occurred since this date. In the 2014 financial year, a cumulative movement of 11% in land indices since October 2011 triggered a managerial revaluation of land value. In the 2015 financial year, no material movements in value were observed for land and buildings and the Board are comfortable that the values stated in these financial statements approximate fair value.
In accounting for the sale of physical assets, only the net profit/(loss) on the disposal is shown in the Comprehensive Operating Statement as required under AAS.
Intangible assets
Intangible assets are initially recognised at cost. Subsequently, intangible assets with finite useful lives are carried at cost less accumulated depreciation. Costs incurred subsequent to initial acquisition are capitalised when it is expected that additional future economic benefits will flow to the Board.
When the recognition criteria in AASB 138 Intangible Assets are met, internally generated intangible assets are recognised and measured at cost less accumulated depreciation.
An internally generated intangible asset arising from development is recognised if, and only if, all of the following are demonstrated:
• the technical feasibility of completing the intangible asset so that it will be available for use or sale;
• an intention to complete the intangible asset and use or sell it;
• the ability to use or sell the intangible asset;
• the intangible asset will generate probable future economic benefits;
• the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and
• the ability to measure reliably the expenditure attributable to the intangible asset during its development.
Intangible produced assets with finite useful lives are depreciated as an expense from transactions on a straight line basis over the asset’s useful life. Depreciation begins when the asset is available for use, that is, when it is in the location and condition necessary for it to be capable of operating in the manner intended by management.
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The typical estimated useful lives for the intangible produced assets of capitalised software development costs for current and prior years are 3 years.
Prepayments
Prepayments represent payments in advance of receipt of goods or services or that part of expenditure made in one accounting period covering a term extending beyond that period.
j) LIABILITIES
Payables
Payables consist of:
• contractual payables, such as accounts payable and unearned income. Accounts payable represent liabilities for goods and services provided to the Board prior to the end of the financial year that are unpaid, and arise when the Board becomes obliged to make future payments in respect of the purchase of those goods and services; and
• statutory payables, such as goods and services tax and fringe benefits tax payables.
Contractual payables are classified as financial instruments and categorised as financial liabilities at amortised cost. Statutory payables are recognised and measured similarly to contractual payables, but are not classified as financial instruments and not included in the category of financial liabilities at amortised cost, because they do not arise from a contract.
Interest bearing liabilities
Interest bearing liabilities are initially measured at fair value, being the cost of the interest bearing liabilities, net of transaction costs.
Subsequent to initial recognition, interest bearing liabilities are measured at amortised cost with any difference between the initial recognised amount and the redemption value being recognised in net result over the period of the interest bearing liability using the effective interest rate method.
Provisions
Provisions are recognised when the Board has a present obligation, the future outflow of economic benefits is probable, and the amount of the provision can be measured reliably.
The amount recognised as a liability is the best estimate of the consideration required to settle the present obligation at reporting period, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows, using discount rate that reflects the time value of money and risks specific to the provision.
When some or all of the economic benefits required to settle a provision are expected to be received from a third party, the receivable is recognised as an asset if it is virtually certain that recovery will be received and the amount of the receivable can be measured reliably.
Revenue received in advance
Revenue received in advance is recorded as liability until services have been rendered. As the services is delivered over time, it is recognised as revenue on the income statement.
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 OCTOBER 2015
PAGE | 51
Employee benefits
Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave for services rendered to the reporting date.
(i) Wages and salaries, annual leave and sick leave
Liabilities for wages and salaries, including non-monetary benefits annual leave and accumulating sick leave, are all recognised in the provision for employee benefits as “current liabilities”, because the Board does not have an unconditional right to defer settlements of these liabilities.
Depending on the expectation of the timing of settlement, liabilities for wages and salaries, annual leave and sick leave are measured at:
• Nominal value if the Board expects to wholly settle within 12 months; or
• Present value if the Board does not expect to wholly settle within 12 months.
(ii) Long service leave
Liability for long service leave (LSL) is recognised in the provision for employee benefits.
Unconditional LSL (representing seven or more years of continuous service) is disclosed as a current liability, even where the Board does not expect to settle the liability within 12 months because it will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months.
The components of this current LSL liability are measured at:
• Nominal value if the Board expects to wholly settle within 12 months; and
• Present value if the Board does not expect to wholly settle within 12 months.
Conditional LSL (representing less than seven years of continuous service) is disclosed as a non- current liability. There is an unconditional right to defer the settlement of the entitlement until the employee has completed the requisite years of service. This non-current LSL liability is measured at present value.
(iii) Termination benefits
Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The Board recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after balance sheet date are discounted to present value.
(iv) Employee benefits on-costs
Employee benefits on-costs (payroll tax, workers compensation, superannuation) are recognised separately from provision for employee benefits.
k) LEASES
A lease is a right to use an asset for an agreed period of time in exchange for payment.
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Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement so as to reflect the risks and rewards incidental to ownership. Leases of property, plant and equipment are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership from the lessor to the lessee. All other leases are classified as operating leases.
Finance leases
The Board as lessee
At the commencement of the lease term, finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the lease property or, if lower, the present value of the minimum lease payment, each determined at the inception of the lease. The lease asset is depreciated over the shorter of the estimated useful life of the asset or the term of the lease.
Minimum finance lease payments are apportioned between reduction of the outstanding lease liability and periodic finance expense which is calculated using the interest rate implicit in the lease and charged directly to the comprehensive operating statement. Contingent rentals associated with finance leases are recognised as an expense in the period in which they are incurred.
Operating leases
The Board as lessor
Rental income from operating leases are recognised on a straight-line basis over the term of the relevant lease.
The Board as lessee
Operating lease payments, including any contingent rentals, are recognised as an expense in the comprehensive operating statement on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern of the benefits derived from the use of the leased asset. The leased asset is not recognised in the balance sheet.
l) EQUITY
Contributions by owners
Consistent with the requirement of AASB 1004 Contributions, contributions by owners (that is, contributed capital and its repayment) are treated as equity transactions and, therefore, do not form part of the income and expenses of the Board.
Additions to net assets which have been designated as contributions by owners are recognised as contributed capital. Other transfer that are in the nature of contributions or distributions have also been designated as contributions by owners.
m) COMMITMENTS
Commitments for future expenditure include operating commitments arising from contracts. These commitments are disclosed by way of a note (refer to Note 17 Commitments) at their nominal value and inclusive of the GST payable.
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 OCTOBER 2015
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n) CONTINGENT ASSETS AND CONTINGENT LIABILITIES
Contingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by way of a note and, if quantifiable, are measured at nominal value. Contingent assets and liabilities are presented inclusive of GST receivable or payable respectively.
o) ACCOUNTING FOR THE GOODS AND SERVICES TAX (GST)
Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flow.
p) GOING CONCERN
Whilst these financial statements have been prepared on a going concern basis, they have been prepared in the context of the Minister for Environment, Climate Change & Water’s announcement of the government’s intent to merge the Lake Mountain and Mt Baw Baw boards, subject to enabling legislation being passed by parliament. It is expected that this legislation will be introduced into parliament in 2016. The Mt Baw Baw Alpine Resort Management Board will continue to operate as a going concern until such time as this decision is enacted, and subject to the undertaking by the Department of Environment, Land, Water & Planning (DELWP) to continue to fund any shortfall in essential operating expenditures not covered by revenues generated by the Board in managing the operations of the Mt Baw Baw Alpine Resort.
q) EVENTS AFTER REPORTING DATE
Assets, liabilities, income and expenses arise from past transactions or other past events. Where the transactions result from an agreement between the Board and other parties, the transactions are only recognised when the agreement is irrevocable at or before balance date.
Adjustments are made to amounts recognised in the financial statements for events which occur after the reporting date and before the date the statements are authorised for issue, where those events provide information about conditions which existed at the reporting date. Note disclosure is made about events between the reporting date and the date the statements are authorised for issue where the events relate to condition which arose after the reporting date that may have a material impact on the results of subsequent years.
r) NEW ACCOUNTING STANDARDS FOR APPLICATION IN FUTURE PERIODS
Certain new AASs have been published that are not mandatory for the 31 October 2015 reporting period. Department of Treasury and Finance assesses the impact of these new standards and advises of their applicability and early adoption where applicable.
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As at 31 October 2015, all new accounting standards and interpretations that had been issued but classified as not mandatory for the financial year ended 31 October 2015 had been considered, and while the impact of some standards was still to be assessed, the likely impact is not considered to be significant.
STANDARD/INTERPRETATION SUMMARY
APPLICABLE FOR ANNUAL REPORTING
PERIODS BEGINNING ON
IMPACT ON PUBLIC SECTOR ENTITY FINANCIAL STATEMENTS
AASB 9 Financial Instruments
The key changes include the simplified requirements for the classification and measurement of financial assets, a new hedging accounting model and a revised impairment loss model to recognise impairment losses earlier, as opposed to the current approach that recognises impairment only when incurred.
1 Jan 2018
The assessment has identified that the financial impact of available for sale (AFS) assets will now be reported through other comprehensive income (OCI) and no longer recycled to the profit and loss.
AASB 14 Regulatory Deferral Accounts
AASB 14 permits first-time adopters of Australian Accounting Standards who conduct rate-regulated activities to continue to account for amounts related to rate regulation in accordance with their previous GAAP.
1 Jan 2016
The assessment has indicated that there is no expected impact, as those that conduct rate-regulated activities have already adopted Australian Accounting Standards.
AASB 15 Revenue from Contracts with Customers
The core principle of AASB 15 requires an entity to recognise revenue when the entity satisfies a performance obligation by transferring a promised good or service to a customer
1 Jan 2017
(Exposure Draft 263 – potential deferral to 1
Jan 2018)
The changes in revenue recognition requirements in AASB 15 may result in changes to the timing and amount of revenue recorded in the financial statements. The Standard will also require additional disclosures on service revenue and contract modifications.
A potential impact will be the upfront recognition of revenue from licenses that cover multiple reporting periods. Revenue that was deferred and amortised over a period may now need to be recognised immediately as a transitional adjustment against the opening returned earnings if there are no former performance obligations outstanding.
AASB 2014 1
Amendments to Australian Accounting Standards [Part E Financial Instruments]
Amends various AASs to reflect the AASB's decision to defer the mandatory application date of AASB 9 to annual reporting periods beginning on or after 1 January 2018 as a consequence of Chapter 6 Hedge Accounting, and to amend reduced disclosure requirements.
1 Jan 2018
This amending standard will defer the application period of AASB 9 to the 2018-19 reporting period in accordance with the transition requirements.
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 OCTOBER 2015
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STANDARD/INTERPRETATION SUMMARY
APPLICABLE FOR ANNUAL REPORTING
PERIODS BEGINNING ON
IMPACT ON PUBLIC SECTOR ENTITY FINANCIAL STATEMENTS
AASB 2014 4
Amendments to Australian Accounting Standards – Clarification of Acceptable Methods of Depreciation and Amortisation
[AASB 116 & AASB 138]
Amends AASB 116 Property, Plant and Equipment and AASB 138 Intangible Assets to:
• establish the principle for the basis of depreciation and amortisation as being the expected pattern of consumption of the future economic benefits of an asset;
• prohibit the use of revenue based methods to calculate the depreciation or amortisation of an asset, tangible or intangible, because revenue generally reflects the pattern of economic benefits that are generated from operating the business, rather than the consumption through the use of the asset.
1 Jan 2016
The assessment has indicated that there is no expected impact as the revenue-based method is not used for depreciation and amortisation.
AASB 2015 6
Amendments to Australian Accounting Standards – Extending Related Party Disclosures to Not-for-Profit Public Sector Entities
[AASB 10, AASB 124 & AASB 1049]
The Amendments extend the scope of AASB 124 Related Party Disclosures to not-for-profit public sector entities. A guidance has been included to assist the application of the Standard by not-for-profit public sector entities.
1 Jan 2016
The amending standard will result in extended disclosures on the entity’s key management personnel (KMP), and the related party transactions.
In addition to the new standards and amendments above, the AASB has issued a list of other amending standards that are not effective for the 2014-15 reporting period (as listed below). In general, these amending standards include editorial and references changes that are expected to have insignificant impacts on public sector reporting.
• AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010).
• AASB 2013-9 Amendments to Australian Accounting Standards – Conceptual Framework, Materiality and Financial Instruments
• AASB 2014 1 Amendments to Australian Accounting Standards [PART D – Consequential Amendments arising from AASB 14 Regulatory Deferral Accounts only]
• AASB 2014 5 Amendments to Australian Accounting Standards arising from AASB 15
• AASB 2014 7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014)
• AASB 2014 8 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014) – Application of AASB 9 (December 2009) and AASB 9 (December 2010) [AASB 9 (2009 & 2010)]
PAGE | 56
• AASB 2015 2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101 [AASB 7, AASB 101, AASB 134 & AASB 1049]
• AASB 2015 3 Amendments to Australian Accounting Standards arising from the Withdrawal of AASB 1031 Materiality
Note 2: Income from transactions
2015 $
2014 $
Revenue includes:
(a) Interest
Interest on bank deposits 6,135 5,400
Total interest revenue 6,135 5,400
(b) Sale of goods and services
Food and beverage 965,479 1,033,490
Retail sales 252,619 279,259
Total sale of goods and services 1,218,098 1,312,749
(c) Government funding
Department of Environment, Land, Water and Planning support payments 3,543,763 3,301,000
Other government funding - 521,099
Total Government funding 3,543,763 3,822,099
(d) Site & service charges
Annual service charge 395,814 363,731
Site rental 132,740 92,655
Total revenue from site & service charges 528,554 456,386
(e) Visitor fees
Resort entry fees 683,487 630,734
Ski field income 905,464 891,334
Accommodation/guest services 330,526 349,367
Total revenue from visitor fees 1,919,478 1,871,435
(f) Other revenue
Marketing 24,774 94,764
Miscellaneous 16,111 59,654
Commission received 98,241 102,247
Staff accommodation 76,343 66,169
Total other revenue 215,469 322,834
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 OCTOBER 2015
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Note 3: Expenses from transactions
2015 $
2014 $
(a) Employee benefits
Superannuation 60,066 176,014
Salaries, wages, annual leave and long service leave 545,305 1,985,225
Termination benefits - 95,482
FBT and payroll tax 21,487 51,375
Total employee benefits 626,858 2,308,096
(b) Depreciation/amortisation expense
Buildings 257,736 257,317
Plant and equipment 219,854 203,824
Water and sewerage infrastructure 52,116 52,090
Land management infrastructure 403,740 403,740
Ski lift infrastructure 129,720 128,980
Intangible produced assets 12,136 4,917
Total depreciation/amortisation expense 1,075,302 1,050,868
(c) Interest expense
Finance lease interest 18,241 29,864
Finance costs - 88
Total interest expense 18,241 29,952
(d) Supplies and services
Food & beverage purchases and consumables 424,770 583,940
Consultancy services for EOI Project - 412,657
Accommodation supplies and services 124,033 132,157
Other supplies and services 256,968 224,793
Total supplies and services 805,771 1,353,547
(e) Contractor expenses
Resort operations 2,672,115 1,193,404
Other operational & administrative support 243,748 127,890
Total contractor expenses 2,915,863 1,321,294
(f) Other operating expenses
Audit fees – Note 23 99,481 21,695
Insurance 128,765 164,699
Repairs and maintenance 172,797 204,420
Gate entry and lift expenses 259,736 217,725
Total other expenses 660,779 608,539
PAGE | 58
Note 4: Other economic flows included in net result
2015 $
2014 $
Net gain/(loss) on disposal of non-financial assets
Net gain/(loss) on disposal of physical asset 13,676 (1,793)
Total other economic flows included in net result 13,676 (1,793)
Other gains/(losses) from other economic flows
Net gain/(loss) arising from revaluation of long service liability (557) (48)
Total other gains/(losses) from other economic flows (557) (48)
Note 5: Receivables
2015 $
2014 $
Receivables
Contractual
Debtors 221 286 110,343
Provision for doubtful debts - (3,907)
Amount owing from the Department of Environment, Land, Water and Planning - 850,000
Sundry debtors 30,158 1,086
251,444 957,522
Statutory
GST receivable 36,889 -
Total receivables 288,333 957,522
(a) Movement in the provision for doubtful debts
Opening balance (3,907) -
Provision of receivables during the year as uncollectible (3,907)
Reversal of provision of receivables previously written off as uncollectible 3,907
Closing balance - (3,907)
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 OCTOBER 2015
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Note 6: Inventories
2015 $
2014 $
Inventories
Supplies & consumables - fuel (at cost) 6,956 18,553
Inventories held for sale (at cost) 52,646 62,336
Total inventories 59,602 80,889
Note 7: Prepayments
2015 $
2014 $
Prepayments
Prepaid insurance 98,306 103,252
Prepaid expenses - other 11,270 4,714
Total prepayments 109,576 107,966
Note 8: Property, infrastructure, plant and equipment
8a GROSS CARRYING AMOUNT AND ACCUMULATED DEPRECIATION
GROSS CARRYING AMOUNT ACCUMULATED DEPRECIATION NET CARRYING AMOUNT
Non-current 2015 $
2014 $
2015 $
2014 $
2015 $
2014 $
Land at fair value 3,891,660 3,891,660 - - 3,891,660 3,891,660
Buildings at fair value 7,130,486 7,130,486 (1,028,687) (770,951) 6,101,799 6,359,535
Plant and equipment at fair value 1,747,088 2,970,376 (897,665) (2,175,772) 849,422 794,604
Water and sewerage infrastructure at fair value 2,177,200 2,177,200 (208,386) (156,270) 1,968,814 2,020,930
Roads and car parks infrastructure and land management at fair value 3,268,318 3,268,317 (1,554,920) (1,151,180) 1,713,397 2,117,137
Ski lift infrastructure at fair value 2,719,842 2,719,842 (505,560) (375,840) 2,214,282 2,344,002
Assets under construction at cost 59,678 - - - 59,678 -
Total property, infrastructure, plant and equipment 20,994,272 22,157,881 (4,195,218) (4,630,013) 16,799,052 17,527,868
8b CLASSIFICATION BY ‘PURPOSE GROUPS’
All assets in a purpose group are further sub categorized according to the asset’s ‘nature’ (ie buildings, plant and equipment etc.) with each sub category being classified as a separate class of assets for financial reporting purposes.
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8c MOVEMENTS IN CARRYING AMOUNTS
CARRYING AMOUNT
- START OF YEAR
ADDITIONS DISPOSALS REVALUATION(i)
DEPRECIATION EXPENSE
CARRYING AMOUNT -
END OF YEAR
2015 $ $ $ $ $ $
Land 3,891,660 - - - 3,891,660
Buildings 6,359,535 - - - (257,736) 6,101,799
Plant and equipment 794,604 285,360 (10,688) (219,854) 849,422
Assets under construction at cost 59,678 - - - 59,678
Water and sewerage infrastructure 2,020,930 - - - (52,116) 1,968,814
Roads and car parks infrastructure and land management 2,117,137 - - - (403,740) 1,713,397
Ski lift infrastructure 2,344,002 - - - (129,720) 2,214,282
Total 17,527,868 345,038 (10,688) - (1,063,166) 16,799,052
2014 $ $ $ $ $ $
Land 3,506,000 - - 385,660 - 3,891,660
Buildings 6,594,125 22,727 - - (257,317) 6,359,535
Plant and equipment 935,201 65,020 (1,793) - (203,824) 794,604
Water and sewerage infrastructure 2,073,020 - - - (52,090) 2,020,930
Roads and car parks infrastructure and land management 2,389,339 131,538 - - (403,740) 2,389,339
2,117,137 121,012 - - (129,480) 2,453,852
Ski lift infrastructure 2,453,852 19,130 - - (128,980) 2,344,002
Total 17,951,537 238,415 (1,793) 385,660 (1,045,951) 17,527,868
(i) Fair value assessments have been performed for all classes of assets in this purpose group.
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 OCTOBER 2015
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8d FAIR VALUE MEASUREMENT HIERARCHY FOR ASSETS AS AT 31 OCTOBER 2015
CARRYING AMOUNT AS AT
31 OCTOBER 2015
FAIR VALUE MEASUREMENT AT END OF REPORTING PERIOD USING:
LEVEL 1 LEVEL 2 LEVEL 3
$ $ $ $
Land at fair value
Specialised land 648,240 - - 648,240
Non-specialised land 3,243,420 - 3,243,420 -
Total of land at fair value 3,891,660 - 3,243,420 648,240
Buildings at fair value
Specialised buildings 6,101,799 - - 6,101,799
Total of buildings at fair value 6,101,799 - - 6,101,799
Plant and equipment at fair value
Plant and equipment 849,422 - - 849,422
Total of plant and equipment at fair value 849,422 - - 849,422
Infrastructure at fair value
Water infrastructure 1,465,592 - - 1,465,592
Sewerage infrastructure 503,222 - - 503,222
Roads and car parks infrastructure 1,393,832 - - 1,393,832
Land Management infrastructure 319,565 - - 319,565
Ski Lifts infrastructure 2,214,282 - - 2,214,282
Total of infrastructure at fair value 5,896,493 - - 5,896,493
There have been no transfers between levels during the period.
PAGE | 62
CARRYING AMOUNT AS AT
31 OCTOBER 2015
FAIR VALUE MEASUREMENT AT END OF REPORTING PERIOD USING:
LEVEL 1 LEVEL 2 LEVEL 3
$ $ $ $
Land at fair value
Specialised land 648,240 - - 648,240
Non-specialised land 3,243,420 - 3,243,420 -
Total of land at fair value 3,891,660 - 3,243,420 648,240
Buildings at fair value
Specialised buildings 6,359,535 - - 6,359,535
Total of buildings at fair value 6,359,535 - - 6,359,535
Plant and equipment at fair value
Plant and equipment 794,604 - - 794,604
Total of plant and equipment at fair value 794,604 - - 794,604
Infrastructure at fair value
Water infrastructure 1,503,500 - - 1,503,500
Sewerage infrastructure 517,430 - - 517,430
Roads and car parks infrastructure 1,759,652 - - 1,759,652
Land Management infrastructure 357,485 - - 357,485
Ski Lifts infrastructure 2,344,002 - - 2,344,002
Total of infrastructure at fair value 6,482,069 - - 6,482,069
Specialised land and specialised buildings
Specialised land is valued using the market approach, adjusted for the community service obligation (CSO) to reflect the specialised nature of the land being valued.
Under the market approach to valuation, the assets are compared to recent comparable sales or sales of comparable assets, which are considered to have nominal or no added improvement value. The valuation of such assets is performed by analysing comparable sales and allowing for share, size, topography, location and other relevant factors specific to the asset being valued.
The CSO adjustment is a reflection of the value’s assessment of the impact of restrictions associated with an asset to the extent that it is also equally attributable to market participants. This approach is in light of the highest and best use consideration required for fair value measurement, and takes into account the use of the asset that is physically possible, legally permissible and financially feasible. As adjustments of CSO are considered as significant unobservable inputs specialised land would be classified as level 3 assets.
Specialised buildings are valued using the depreciated replacement cost method, adjusting for the associated depreciations. As depreciation adjustments are unobservable in nature, specialised buildings are classified as Level 3 fair value measurements.
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 OCTOBER 2015
PAGE | 63
An independent valuation of specialised land and buildings was performed by the Valuer-General Victoria (VGV). The effective date of the valuation is 31 October 2011.
Non-specialised land
For non-specialised land, an independent valuation was performed by the VGV to determine the fair value using the income approach. Valuation of the assets was determined by adopting the site value for each leased site then calculating the present value of the income combined with the reversion value of the site at the expiration of the current site lease term. The effective date of the valuation is 31 October 2011.
To the extent that non-specialised land does not contain significant, unobservable adjustments, these assets are classified as Level 2. Non-specialised land was also subject to revaluation due to material movement in land indices.
Infrastructure
Infrastructure assets, including land management infrastructure, are valued using the depreciated replacement cost method. This cost represents the replacement cost of the building/component after applying depreciation rates on a useful life basis. Replacement costs relate to costs to replace the current service capacity of the asset. Economic obsolescence has also been factored into the depreciated replacement cost calculation.
An independent valuation of the Board’s infrastructure assets was performed by the VGV. The valuation was performed based on the depreciated replacement costs of the assets. The effective date of the valuation is 31 October 2011.
The Board assesses the fair value of its infrastructure assets annually by considering the movement in the Output Price Index of Construction Industries and the Producer Price Index published by the Australian Bureau of Statistics in order to determine whether any material movements in value have occurred since the last valuation date and is comfortable that the values stated in these financial statements approximate fair value.
Plant and equipment
Plant and equipment is held at fair value. When plant and equipment is specialised in use, such that it is rarely sold other than as part of a going concern, fair value is determined using the depreciated cost method.
There were no changes in valuation techniques throughout the period to 31 October 2015.
For assets measured at fair value, the current use is considered the highest and best use.
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8e RECONCILIATION OF LEVEL 3 FAIR VALUE
SPECIALISED LAND
SPECIALISED BUILDINGS
PLANT & EQUIPMENT
WATER INFRA-
STRUCTURE
SEWERAGE INFRA-
STRUCTURE
LAND MANAGEMENT
INFRA-STRUCTURE
ROADS & CAR PARKS
INFRA-STRUCTURE
SKI LIFT INFRA-
STRUCTURETOTAL
2015 $ $ $ $ $ $ $ $ $
Opening balance 648,240 6,359,535 794,604 1,503,500 517,430 357,485 1,759,652 2,344,002 14,284,448
Additions - - 285,360 - - - - - 285,360
Disposals - - (10,688) - - - - - (10,688)
Transfers in (out) of Level 3
- - - - - - - - -
Depreciation - (257,736) (219,854) (37,908) (14,208) (37,920) (365,820) (129,720) (1,063,166)
Impairment loss - - - - - - - - -
Closing balance 648,240 6,101,799 849,422 1,465,592 503,222 319,565 1,393,832 2,214,282 13,495,954
8f DESCRIPTION OF SIGNIFICANT UNOBSERVABLE INPUTS TO LEVEL 3 VALUATIONS
VALUATION TECHNIQUE SIGNIFICANT UNOBSERVABLE INPUTS
Specialised land Market approach Community Service Obligation (CSO) adjustment
Specialised buildings Depreciated replacement cost Replacement cost per square metre
Useful life of specialised buildings
Plant and equipment Depreciated replacement cost Cost per unit
Useful life of plant and equipment
Infrastructure – Water Depreciated replacement cost Cost per unit
Useful life of the infrastructure
Infrastructure – Sewerage Depreciated replacement cost Cost per unit
Useful life of the infrastructure
Infrastructure – Land management Depreciated replacement cost Cost per unit
Useful life of the infrastructure
Infrastructure – Roads and car parks Depreciated replacement cost Cost per unit
Useful life of the infrastructure
Infrastructure – Ski lift Depreciated replacement cost Cost per unit
Useful life of the infrastructure
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 OCTOBER 2015
PAGE | 65
Note 9: Intangible assets
TOTAL
Gross carrying amount 2015 $
2014 $
Opening balance 28,818 -
Additions from internal development – computer software 22,145 28,818
Closing balance 50,963 28,818
Accumulated amortisation (i)
Opening balance (4,917) -
Amortisation of intangible produced assets (12,136) (4,917)
Closing balance (17,053) (4,917)
Net book value at end of financial year 33,910 23,901
(i) The consumption of produced intangible assets is included in ‘depreciation’ line item on the Comprehensive Operating Statement.
Note 10: Payables
2015 $
2014 $
Contractual
Creditors 457,830 799,376
Accruals 41,163 211,724
Total contractual payables 498,993 1,011,100
Statutory
PAYG-withholding payable 9,586 18,090
Superannuation payable 51 17,353
GST payable - 10,880
Payroll tax payable - 20,537
Total statutory payables 9,637 66,860
Total payables 508,630 1,077,960
Maturity analysis of contractual payables
Please refer to Note 22(b) for the maturity analysis of contractual payables.
PAGE | 66
Note 11: Interest bearing liabilities
NOTE 2015 $
2014 $
Current
(i) Net finance lease liability 17 76,858 121,663
(ii) Borrowings - 6,425
Total current borrowings 76,858 128,088
Non-current
(i) Net finance lease liability 17 65,521 142,345
Total non-current borrowings 65,521 142,345
Total interest bearing liabilities 142,379 270,433
(i) Secured by the assets leased. Finance leases are effectively secured as the rights to the leased assets revert to the lessor in the event of default.
(ii) Loan agreement on residual payment for an expired finance lease.
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 OCTOBER 2015
PAGE | 67
Note 12: Provisions
2015 $
2014 $
Current provisions
Employee benefits
Annual Leave
Unconditional and expected to be wholly settled within 12 months 72,307 140,009
Unconditional and expected to be wholly settled after 12 months 30,466 -
Long Service Leave
Unconditional and expected to be settled after 12 months 14,891 12,004
Total current employee benefits 117,664 152,013
Provisions related to employee benefits on-costs
Annual Leave
Unconditional and expected to be wholly settled within 12 months 11,600 21,492
Unconditional and expected to be wholly settled after 12 months 4,888 -
Long Service Leave
Unconditional and expected to be settled after 12 months 2,481 9,246
Total current employee benefits on-costs 18,969 30,738
Total current provisions 136,633 182,751
Non-current provisions
Employee benefits 49,667 50,564
Provisions related to employee benefit on-costs 6,360 2,134
Total non-current provisions 56,027 52,698
Total provisions 192,660 235,449
(a) Employee benefits and related on-costs
Current employee benefits
Annual leave entitlements (including leave loading) 95,740 119,627
Time in Lieu entitlements 7,033 20,383
Unconditional long service leave entitlements 14,891 12,004
Non-current employee benefits
Conditional long service leave entitlements 49,667 50,564
Total employee benefits 167,331 202,578
Current on-costs 18,969 30,737
Non-current on-costs 6,360 2,134
Total on-costs 25,329 32,871
Total employee benefits and related on-costs 192,660 235,449
(b) Movement in provisions (on-costs)
Opening balance 32,871 43,354
Additional provisions recognised 12,622 25,407
Reductions arising from payments/other sacrifices of future economic benefits (20,721) (35,938)
Effect of change in discount rates 557 48
Closing balance 25,329 32,871
Current 18,969 29,268
Non-current 6,360 3,603
25,329 32,871
PAGE | 68
Note 13: Revenue in advance
2015 $
2014 $
Current
Lease revenue received in advance 8,333 8,333
8,333 8,333
Non-current
Lease revenue received in advance 29,167 49,437
29,167 49,437
Total revenue in advance 37,500 57,770
Note 14: Contributed capitalThe equity from the Alpine Resorts was allocated during 1998 by the Minister for Conservation and Land Management pursuant to section 59 of the Alpine Resorts (Management) Act 1997. The allocation received from the Alpine Resorts Commission included revenue and capital items. An amount of $4,066,078 represents the capital portion of the contribution received from the Alpine Resorts Commission as at 30 April 1998. This amount is included in the total contributed capital at 31 October 2015 of $5,479,103. Equity and movements in equity are summarised in the Statement of Changes in Equity. Pursuant to Financial Reporting Direction No 2A (FRD 119A Transfers through Contributed Capital) under the Financial Management Act 1994, the Board received $55,401 contributed capital from DELWP during the reporting period (2014: $0).
Note 15: Cash flow information
Reconciliation of results to net cash inflow/(outflow) from operating activities 2015 $
2014 $
Net result (367,157) (753,003)
Non-cash movements
Depreciation 1,075,302 1,050,868
Loss/(gain) on disposal of non-financial physical assets (13,676) 1,793
Other non-cash movements - (20,000)
Movements in assets and liabilities
Decrease/(increase) in receivables 669,189 (788,589)
Decrease/(increase) in inventories 21,287 (3,934)
Decrease/(increase) in prepayments (1,610) 25,051
Increase/(decrease) in payables (569,330) 549,414
Increase/(decrease) in provisions (42,789) (62,929)
Increase/(decrease) in revenue received in advance (20,271) (8,332)
Net cash flows from/(used in) operating activities 750,945 (9,661)
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 OCTOBER 2015
PAGE | 69
Note 16: Cash and cash equivalents
Current 2015 $
2014 $
Cash at year end, as shown in the Cash Flow Statement, is reconciled to the Balance Sheet as follows:
Cash held for Alpine Risk Mitigation Program 147,408 99,790
Operational funds 333,203 45,347
Total cash and cash equivalents 480,611 145,137
Note 17: Commitments2015
$2014
$
Revenue
Operating leases – Crown Land
For operating leases that are non-cancellable leases, the minimum lease payments are expected within the following periods:
- Not later than one year 31,276 31,322
- Later that one year but not later than five years 101,352 115,392
- Later than five years 308,375 373,516
441,003 520,230
Leasing powers are defined in Section 7 of the Alpine Resorts (Management) Act 1997. Lease terms of up to 99 years are permissible under this section. The Board also has the power to grant leases up to 21 years as a Committee of Management under the Crown Land (Reserves) Act 1978. New leases are granted on the basis that the rental will be negotiated at market value. All renewal of leases and/or variations of leases will be granted on the basis that the rental will be negotiated at market value.
Lease receivables
New leases
The site holder shall pay to the Board by either of the following methods:
(a) Payment of the site value of the land as determined by valuation at the time of the execution of the lease as a single up-front payment; or
(b) An initial payment of the site holders interest (determined by valuation) and an ongoing annual market rent (determined by valuation) for the term of the lease.
Existing leases
Rental of a lease shall be achieved by payment of market rent (determined by valuation) for the term of the lease.
PAGE | 70
2015 $
2014 $
Lease payables
Operating leases
Commitments in relation to non-cancellable operating leases contracted for at the reporting date but not recognised in the financial report as liabilities, payable:
- Not later than one year 21,398 22,704
- Later that one year but not later than five years - 22,704
Total 21,398 45,408
Finance leases
(i) Commitments in relation to finance leases are payable as follows:
- Not later than one year 85,448 139,741
- Later that one year but not later than five years 69,898 155,347
Minimum Lease payments 155,346 295,088
Less: Future finance charges (12,967) (31,080)
Total 142,379 264,008
Representing finance lease liabilities:
Current 76,858 121,663
Non-current 65,521 142,345
Total 142,379 264,008
Commitment to expenditure
(ii) Contractor fees
- Not later than one year 250,360 208,000
Total 250,360 228,800
Less GST recoverable from Australian Taxation Office 22,760 20,800
Total commitment to expenditure (exclusive of GST) 227,600 208,000
(i) Finance leases for equipment and motor vehicles (ii) Fees payable to commercial contractors
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 OCTOBER 2015
PAGE | 71
Note 18: SuperannuationSuperannuation contributions for the reporting period are included as part of the employee benefits in the Comprehensive Operating Statement.
The name and details of the employee defined contribution plans and contributions made by the Board are as follows:
CONTRIBUTION RATE
PAID CONTRIBUTION FOR THE YEAR
CONTRIBUTION OUTSTANDING AT YEAR END
Name of fund 2015 %
2015 $
2014 $
2015 $
2014 $
AMP Life 9.5 - 9,955 - 666
ANZ Bank 9.5 6,012 5,912 - 985
Assante Super Service 9.5 - 15,783 - 1,362
Australian Super 9.5 17,514 20,803 - 2,777
Bates Superannuation Fund 9.5 151 - - -
BT Super for Life 9.5 - 10,286 - 421
CARE Super 9.5 701 2,762 51 140
Cbus 9.5 - 4,749 -- 273
CLUB PLUS 9.5 - 4,662 - 338
Colonial Super 9.5 51 4,382 - 309
Equipsuper 9.5 665 - - -
First Super 9.5 - 3,469 - 123
HESTA 9.5 - 297 - -
HostPlus Super 9.5 2,608 21,443 - 1,420
Jensz Family Super Fund 9.5 3,201 - - -
Navigator Personal Ret Plan 9.5 512 - - -
NGS Super 9.5 560 - - -
REST Super 9.5 - 5,738 - 152
SunSuper 9.5 - 5,154 - 249
SuperWrap 9.5 1,519 2,094 - 222
Tasplan 9.5 - 1,964 - -
Telstra Super 9.5 5,482 5,094 - 876
VicSuper 9.5 21,090 47,467 - 5,818
Other 9.5 - 4,000 - 1,222
Total 9.5 60,066 176,014 51 17,353
PAGE | 72
Note 19: Contingent assets and liabilitiesAt balance date the Board had no contingent assets or liabilities. (2014: $nil).
Note 20: Capital commitmentsAt balance date the Board had no capital commitments. (2014: $nil).
Note 21: Responsible persons related disclosures(a) RESPONSIBLE PERSONSThe names of the persons who were responsible persons at any time during the financial year are:
FROM TO
Responsible Minister
The Hon. Ryan James Smith MP, Minister for Environment & Climate Change 1 Nov 2014 3 Dec 2014
The Hon. Lisa Neville MP, Minister for Environment & Climate Change and Water 4 Dec 2014 31 Oct 2015
Board Members
Ms Vicky Papachristos (Chairperson) 1 Nov 2014 31 Oct 2015
Mr Randall Cohen (Deputy Chair) 1 Nov 2014 31 Oct 2015
Mr Benjamin Dunlop 1 Nov 2014 31 Oct 2015
Ms Grace La Vella 1 Nov 2014 31 Oct 2015
Mr David Bates 1 Nov 2014 31 Oct 2015
Accountable Officers
Mr Craig Jensz 1 Nov 2014 31 Oct 2015
(b) REMUNERATIONRemuneration received or receivable by the Accountable Officer in connection with the management of the Resort during the reporting period was in the range: $30,000 - $39,999 (2014: $10,000-$19,999).
The number of responsible persons whose remuneration from the Board was within the specified bands is as follows:
2015 2014
$0 to $9,999 4 3
$10,000 to $19,999 1 2
$200,000 to $209,999 - -
$220,000 to $229,999 - 1
Total 5 6
$ $
The remuneration received or due and receivable by the responsible persons in connection with the management of the resort during the reporting period was: 44,270 274,688
The relevant amounts relating to the Minister are reported separately in the Department of Premier and Cabinet’s Financial Statements.
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 OCTOBER 2015
PAGE | 73
(c) EXECUTIVE REMUNERATION
The number of executives, other than ministers and accountable officers, and their total remuneration during the reporting period are shown in the first two columns in the table below in their relevant income bands. The base remuneration of executives is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, long service leave payments, redundancy payments and retirement benefits.
The number of executive officers whose remuneration falls within the specified bands below is as follows:
TOTAL REMUNERATION BASE REMUNERATION
2015 2014 2015 2014
Income band No. No. No. No.
$110,000 to $119,999 - - - 2
$120,000 to $129,999 1 2 1 -
Total 1 2 1 2
Annualised employee equivalent 1 2 1 2
Total remuneration 123,179 $247,381 123,179 $226,288
(i) Annualised full time equivalent is based on paid working hours of 38 ordinary hours per week over 52 weeks for a reporting period.
(d) OTHER TRANSACTIONS
The number of contractors charged with significant management responsibilities is disclosed within the $10,000 expense band. These contractors are responsible for planning, directing, controlling, and/or reporting upon, whether directly or indirectly, a significant proportion of the Board’s activities
TOTAL EXPENSES (GST-exclusive)
2015 2014
$120,000 to $129,999 - 1
$240,000 to $249,999 1 -
$1,190,000 to $1,199,999 - 1
$2,670,000 to $2,679,999 1 -
Total 2 2
Total amount 2,915,863 $1,321,294
(e) RELATED PARTY TRANSACTIONS
Ms V. Papachristos is a board member of The Alpine Resorts Coordinating Council, a statutory body established under the Victorian Alpine Resorts (Management) Act 1997 to which the Board makes financial contributions for services provided by the Council. Total contributions paid during the reporting period (exclusive of GST) was $38,434 (2014: $36,764).
PAGE | 74
Lion Capital is a consulting company the Board engaged to provide support and monitoring services in relation to the outsourcing arrangement of the resort to a commercial operator. Mr Craig Jensz, the Accountable Officer, is the managing director of this company. Total payments made to Lion Capital during the reporting period for this service (exclusive of GST) was $243,748 (2014: $127,890).
Note 22: Financial instrumentsThe Board’s principal financial instruments comprise;
• Cash and cash equivalents;
• Receivables (excluding statutory receivables);
• Payables (excluding statutory payables); and
• Borrowings.
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement, and the basis on which income and expenses are recognised, with respect to each class of financial asset and financial liability above are disclosed in Note 1 to the financial statements.
The main purpose in holding financial instruments is to prudently manage the Board’s financial operations.
The carrying amounts of the Board’s contractual financial assets and liabilities by category are in the table below.
NOTE CATEGORY 2015 $
2014 $
Contractual financial assets
Cash and deposits 16 Loans and receivables at amortised cost 480,611 145,137
Receivables (i):
Debtors 5 Loans and receivables at amortised cost 221,286 956,436
Sundry debtors 5 Loans and receivables at amortised cost 30,158 1,086
Total contractual financial assets 732,055 1,102,659
Contractual financial liabilities
Payables (i):
Creditors 10 Financial liabilities at amortised cost 457,830 799,376
Borrowings:
Finance lease liabilities 11 Financial liabilities at amortised cost 142,379 264,008
Loans 11 Financial liabilities at amortised cost - 6,425
Total contractual financial liabilities 600,209 1,069,809
(i) The total amounts disclosed here exclude statutory amounts (e.g. amounts owing from the Victorian Government and GST input tax credits recoverable, and taxes payable).
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 OCTOBER 2015
PAGE | 75
Net holding gain/(loss) on financial instruments by category
2015 $
2014 $
Contractual financial assets
Financial assets – cash and cash equivalents
Interest on cash and deposits 6,135 5,400
Financial assets – receivables
Impairment loss - (3,907)
Total contractual financial assets 6,135 1,493
Contractual financial liabilities
Financial liabilities at amortised cost:
Interest on finance lease liabilities 23,568 29,864
Total contractual financial liabilities 23,568 29,864
(a) CREDIT RISK EXPOSURE
Credit risk arises from the contractual financial assets of the Board, which comprise cash and cash equivalents and receivables. The Board’s exposure to credit risk arises from the potential default of counter party on their contractual obligations resulting in financial loss to the Board. Credit risk is measured at fair value and is monitored on a regular basis.
As at the reporting date, there is no event to indicate that any of the financial assets were impaired.
There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and they are stated at the carrying amounts as indicated. The following table discloses the ageing only of contractual financial assets that are past due but not impaired:
CARRYINGAMOUNT
NOT PAST DUE AND NOT
IMPAIRED
PAST DUE BUT NOT IMPAIRED
LESS THAN 1 MONTH 1-3 MONTHS 3 MONTHS
- 1 YEAR 1-5 YEARS
$ $ $ $ $ $
2015 Receivables:
Debtors 221,286 96,472 36,086 23,633 18,334 46,761
Sundry debtors 30,158 30,158 - - - -
Total 251,444 126,630 36,086 23,633 18,334 46,761
2014 Receivables:
Debtors 956,436 862,769 768 5,108 84,936 2,855
Sundry debtors 1,086 - - - 1,086 -
Total 957,522 862,769 768 5,108 86,022 2,855
PAGE | 76
(b) LIQUIDITY RISK
Liquidity risk arises when the Board is unable to meet its financial obligations as they fall due. The Board operates under the Government fair policy of settling financial obligations within 30 days and in the event of a dispute, will make payment within 30 days from the date of resolution. The Board’s maximum exposure to liquidity risk is the carrying amounts of financial liabilities as disclosed in the face of the balance sheet. The Board manages its liquidity risk by close monitoring of its financial liabilities based on forecasts of future cash flows.
As indicated in Note 24, the Board is dependent on the Victorian State government to ensure it can meet its obligations as and when they fall due. In this respect, the Board works closely with Department of Environment, Land, Water and Planning (DELWP) to ensure support payments are received in a timely manner for it to meet its financial obligations.
The following table discloses the contractual maturity analysis for the Board’s contractual financial liabilities.
CARRYINGAMOUNT
NOMINALAMOUNT
MATURITY DATES
LESS THAN 1 MONTH 1-3 MONTHS 3 MONTHS
- 1 YEAR 1-5 YEARS
$ $ $ $ $ $
2015 Payables:
Creditors 457,830 457,830 451,218 4,704 1,908 -
2015 Borrowings:
Finance lease liabilities 142,379 142,379 9,929 30,202 36,727 65,521
Loans - - - - - -
Total 600,209 600,209 461,147 34,906 38,635 65,521
2014 Payables:
Creditors 799,376 799,376 482,873 315,278 1,225 -
2014 Borrowings:
Finance lease liabilities 264,008 264,008 10,320 31,420 81,733 140,535
Loans 6,425 6,425 890 2,725 2,810 -
Total 1,069,809 1,069,809 494,083 349,423 85,768 140,535
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 OCTOBER 2015
PAGE | 77
(c) MARKET RISK
The Board’s exposure to market risk are primarily through interest rate risk with almost no exposure to foreign currency and other price risks. Objectives, policies and processes used to manage each of these risks are disclosed in the paragraphs below:
Interest rate riskExposure to interest rate risk is insignificant and might arise primarily through the Board’s cash and deposits and finance lease liabilities. Minimisation of risk is achieved by mainly undertaking fixed rate or non-interest bearing financial instruments. Financial liabilities comprise of finance leases at fixed interest rates. The table below reflects the Board’s interest rate exposure on financial instruments.
WEIGHTEDAVERAGE
INTEREST RATE
CARRYINGAMOUNT
INTEREST RATE EXPOSURE
FIXED INTEREST
VARIABLE INTEREST RATE
NON-INTEREST BEARING
% $ $ $ $
2015 Contractual financial assets
Financial assets
Cash and deposits 1.2% 480,611 - 412,647 67,964
Debtors 251,444 - - 251,444
Total financial assets 732,055 - 412,647 319,408
Financial liabilities
Creditors 457,830 - - 457,830
Finance lease liabilities 9.8% 142,379 142,379 - -
Loans - - - -
Total financial liabilities 600,209 142,379 - 457,830
2014 Contractual financial assets
Financial assets
Cash and deposits 1.4% 145,137 - 99,790 45,347
Debtors 957,522 - - 957,522
Total financial assets 1,102,659 - 99,790 1,002,869
Financial liabilities
Creditors 799,376 - - 799,376
Finance lease liabilities 8.2% 264,008 264,008 - -
Loans 13.5% 6,425 6,425 - -
Total financial liabilities 1,069,809 270,433 - 799,376
PAGE | 78
Sensitivity disclosure analysis and assumptions
The Board’s sensitivity to market risk is determined based on the observed range of actual historical data for the preceding five year period, with all variables other than the primary risk variable held constant. The Board cannot be expected to predict movements in market rates and prices. Sensitivity analyses shown are for illustrative purposes only. A movement of 100 basis points up and down (2014: 100 basis points up and down) in market interest rates (AUD) is ‘reasonably possible’ over the next 12 months. The following table shows the impact on the Board’s net result and equity for each category of financial instrument held by the Board at the end of the reporting period as presented to key management personnel, if the above movement were to occur.
Interest rate risk
CARRYINGAMOUNT
INTEREST RATE EXPOSURE
-1% +1%
NET RESULT EQUITY NET RESULT EQUITY
$ $ $ $ $
2015 Financial assets
Cash 412,647 (4,126) (4,126) 4,126 4,126
2015 Financial liabilities
Total 412,647 (4,126) (4,126) 4,126 4,126
2014 Financial assets
Cash 99,790 (998) (998) 998 998
2014 Financial liabilities
Total 99,790 (998) (998) 998 998
(d) FAIR VALUE
The carrying amounts of financial assets and financial liabilities recognised at the balance date, consisting of cash, receivable, payables, finance lease liabilities and borrowings, represent fair value because of the short-term nature of the financial instruments and the expectation that they will be paid in full.
Note 23: Remuneration of auditors
2015 $
2014 $
Audit fees paid or payable to the Victorian Auditor General’s Office for the audit of the Board’s financial reports. 99,481 21,695
Note 24: Economic dependencyThe Board is dependent on the continued financial support of the State Government and in particular, the DELWP which has confirmed that it will continue to provide the Board adequate cash flow support to meet its current and future obligations as and when they fall due for a period up to 30 April 2017. Accordingly these financial statements have been prepared on a going concern basis.
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 OCTOBER 2015
PAGE | 79
Note 25: Ex-gratia expensesThere was no ex-gratia payments made during the 2014/15 financial year (2013/14: $nil).
Note 26: Events occurring after reporting dateOn 9 December 2015, the Minister for Environment, Climate Change & Water issued a Media Release, in which she announced that the “boards responsible for Lake Mountain and Mt Baw Baw will be merged” to form the Small Alpine Resorts Management Board, subject to legislation being passed by parliament. It is expected that this legislation will be introduced to parliament in 2016. The creation of this new entity would see the winding up of the existing Mount Baw Baw Alpine Resort Management Board, and its assets transferred to the new Board.
In consideration of above, management does not believe there are any events that would necessitate a change, or adjustment, to the financial statements at 31 October 2015.
PAGE | 80
DISCLOSURE INDEX
The annual report of the Board is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the Board’s compliance with statutory disclosure requirements.
LEGISLATION REQUIREMENT PAGE REFERENCE
MINISTERIAL DIRECTIONS
Report of operations
Charter and purpose
FRD 22F Manner of establishment & responsible Minister 5
FRD 22F Objectives, functions, powers and duties 6
FRD 22F Nature and range of services provided 5
Financial information
FRD 22F Operational and budgetary objectives 12-17
FRD 22F Summary of financial results 13
FRD 22F Major changes or factors affecting performance 12
FRD 22F Subsequent events 13
FRD 22F Significant changes in financial position during the year 12
SD4.2(a) Statement of changes in equity 38
SD4.2(b) Operating statement 36
SD4.2(b) Balance sheet 37
SD4.2(b) Cash flow statement 39
SD4.2(c) Accountable Officer’s declaration 1
Governance and organisational structure
FRD 22F Organisational structure 18
FRD 22F Occupational health and safety policy 23
FRD 22F Public administration values & employment principles 24
FRD 29 Workforce Data disclosures 25, 26
FRD 15B Executive officer disclosures 25, 26
OTHER INFORMATION
FRD 10 Disclosure index 80, 81
FRD 22F Details of consultancies in excess $10,000 26
FRD 22F Details of consultancies under $10,000 26
PAGE | 81
LEGISLATION REQUIREMENT PAGE REFERENCE
OTHER INFORMATION
FRD 12A Disclosure of major contracts 26
FRD 22F Application and operation of Freedom of Information Act 1982 27
FRD 22F Compliance with building and maintenance provisions of Building Act 1993 27
FRD 22F Statement on National Competition Policy 28
FRD 22F Application and operation of the Protected Disclosures Act 2012 28, 29
FRD 22F Statement of availability of other information 31
SD 4.5.5 Risk management compliance attestation 32
FRD 22F Summary of environmental performance 29-31
FRD 25B Victorian Industry Participation Policy disclosures 26
MRO Compliance with VicData access policy 31
PC2012/02 Gifts, benefits and hospitality attestation 32
SD 4.2(g) General information requirements Entire document
LEGISLATION
Alpine Resorts (Management) Act 1997 5, 6, 18, 19
Freedom of Information Act 1982 27, 31
Building Act 1993 27
Protected Disclosure Act 2012 28, 29
Victorian Industry Participation Policy Act 2003 26
Financial Management Act 1994 33, 34
CONTACT INFORMATIONMt Baw Baw Alpine ResortManagement BoardPO Box 117, Rawson VIC
T. 03 5165 1136F. 03 5165 1125E. [email protected]
2015ANNUAL REPORT
Mt Baw BawAlpine Resort
Management Board