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2006 Annual Report

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2006 Annual Report

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2006 Annual Report

Chairman’s report 4

trustees 5

Ceo’s report 6-7

manaGement team 8-9

Contents

We deliver culturally sensitive, dignified cremation, burial and memorial care to the individuals, families and communities we serve.

Our Mission

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2006 Annual Report

I would like to acknowledge the Finance and Audit Committee, chaired by Ron Greenstein, for its important role in assuring the financial integrity and position of ESMP, so that projects placed before the Board are considered with fiscal and risk confidence, and the Planning and Works Committee, chaired byStelios Coudounaris, for its critical role in assessing the feasibility and practicality of the projects in the context of the Park’s plan and future requirements.

I am also grateful to Russell McLay for his willingness to chair a special-purpose steering committee which will advise the Board through specific items in the Strategic Plan and liaise with management regarding Plan issues. I would also like to thank the Board’s Deputy Chairman, Greg Taylor for his continued support, and Elizabeth Fitzsimmons and Jack Walker, for their much respected input into the agenda of the Committees and the Board generally.

On behalf of the Board I would like to convey our gratitude to the Trusts’ Secretary and ESMP CEO, George Passas, for his tireless and unwavering efforts, commer-cial acumen and strong leadership style in ensuring our plans come to fruition. And, finally to commend the strong management team and all the ESMP staff for their strong commitment to excellent customer service delivery.

It is with pride that I have provided this summary of ESMP’s activities and achieve-ments for the fiscal year 2005-2006.

John Douglas Morrison OAM, JP

It is with pleasure that I report, on behalf of theBoard of Trustees, that the 2006 year has beenanother busy and productive year.

With its job complete in consolidating with management the operational, industrial relations and fiscal position of the Trusts’ businesses, trading as the Eastern Suburbs Memorial Park (ESMP), and against the backdrop of the governance processes instituted last year to assure its performance, the Board eagerly looked forward to the challenges presented to it by management with respect to the realisation of the Trusts’ inaugural Strategic Plan.

Following much preliminary work on the part of ESMP’s CEO, George Passas, and his management team, the Strategic Plan, outlining deliverables to 2008, was approved by the Board at its meeting in November last year and since then the CEO and management have been most active in implementing this year’s goals.

Additionally, I am pleased to highlight the following activities which, through ongoing development, will consolidate ESMP as a provider of quality products and exemplary service.

The Board, in order to provide the segments of our community who require land for burial to meet their religious and cultural interment needs, has initiated discus-sion with representatives from the local and state governments as well as officials in the Department of Lands, our ultimate owners, to secure additional Crown Land for this purpose. It will, no doubt, be a long and involved process but the Board and I are committed to furthering dialogue on this issue as you, our customers, have instructed us to do so.

Likewise, for those communities favouring above-ground interments the Board, honouring its commitment for additional places, has forwarded to the Department of Lands for its consent prior to lodgment with Council plans for a project which will ultimately provide approximately 1300 additional places with stage 1 to be constructed first, providing for 408 interments that offer various configurations.

The Board has also received Randwick City Council’s support in its desire to transform Military Road into a more attractive, boulevard-style, foliaged avenue and one more befitting its central positioning to the Park’s facilities. These works have been committed for completion in calendar 2007 and will see Military Road in the precinct of the Park totally transformed.

The above works will coincide with the erection of the proposed new cafe, florist/gift shop and new condolence rooms, to be situated directly opposite the Trusts’ administration building, including additional on-street parking in conjunction with that also to be provided as a result of the Council’s works. The resulting new facilities, (which, at the time of writing, Council’s planning officers had confirmed to the Trusts’ architect that the development application had been received and that no objection to it had been raised), will ensure that visitors to the Park are catered to appropriately, thus ensuring a comfortable occasion on each visit, as well as contributing to the Park’s longer term financial viability.

As well the Board has commissioned Austeng Pty Ltd to replace by June 2007 the three cremator chambers installed in 1993.

All of these initiatives, coupled with the sound platform for service delivery now in place through the implementation of an upgraded software program, focused mar-keting strategy and the Trusts’ healthy fiscal position, will consolidate the future of the Park and its facilities for our customers and visitors for the years to come.

The commendable results achieved this fiscal year have come through the efforts of many.

Chairman’s | report

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2006 Annual Report

John Morrison OAM, JP

Stelios Coudounaris

Elizabeth Fitzsimmons

Aaron Ron Greenstein PhC, JP

Trustees

Director Board Meeting Finance & Audit CommitteePlanning & Works Com-

mitteeLeave of Absence

John Morrison 11 of 12 4 of 4 5 of 5 1

Gregory Taylor Deputy Chair 12 of 12 4 of 4 4 of 5*

Ron Greenstein Chair Finance & Audit Committee

11 of 12 4 of 4 N/A 1

Stelios Coudounaris Chair Planning & Works Committee

11 of 12 N/A 5 of 5 1

Elizabeth Fitzsimmons 8 of 12 N/A 3 of 5 4

Russell McLay 11 of 12 4 of 4 N/A 1

Jack Walker 11 of 12 N/A 4 of 5 1

George Passas Secretary & CEO 12 of 12 4 of 4 5 of 5

*ex-officio attendance

Russell McLay BComm

Gregory L Taylor AM, OAM, BA MACE, JP

Jack Francis Walker JP

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2006 Annual Report

offering upgraded product in the Memorial Gardens to take advantage of the award-winning rose gardens; and the refurbishment of various niche walls throughout the crematorium precinct.

Whilst these improvements have meant significant expense, they are already prov-ing popular with families which, in turn, assure future options for the benefit of the families and communities we are entrusted to serve.

Customer Relations & ServiceI am happy to report that, as a result of comprehensive surveying of the satisfac-tion of all families and customers using the Park’s products and services, we have achieved a customer satisfaction level of 95% drawn from a 57% response rate. It is gratifying to see the results of our efforts and to witness the turnaround to a customer service-focused mentality that has taken place since my commencement at ESMP in October 2002.

Staff Relations & TrainingThe Board, management and I, as a part of the aforementioned change manage-ment process, are committed to consulting with staff on all matters that may impact on any employee’s workplace situation. Regular workplace meetings, where staff at all levels address matters that affect them or the way products and services are delivered, have ensured a uniform and committed approach to issues. I am happy to report this approach has resulted in a disruption-free workplace where no time was lost due to stoppage or other workplace impediment.

Coupled with this has been our insistence that staff of all levels attend both internal and external courses which are designed to both consolidate operational knowledge and to expand staff members’ thinking beyond their job comfort zone. It is my desire that this situation continue in the interests of a more productive staff but also to consolidate ESMP as a progressive and committed employer of choice in the industry and our community.

Our improvements in this area have been driven by the efforts of Peter Kaye, principal consultant, the Consultgroup whose HR and OH&S outsourced services support ESMP in creating a productive workplace (see also separate HR report).

Occupational Health & Safety (OH&S)This area has remained an important focus for both management and staff with the result that no major injuries occurred during the year to staff. Happily, there have been no reported injuries to visitors. I would like to acknowledge the guidance of Alexander Bailey of the Consultgroup, and the efforts of Tony Brown and the ESMP OH&S Committee for their diligence in ensuring that the OH&S psyche is always at the fore in our workplace.

Systems & InfrastructureAs a part of our change management and consolidation phases we identified many shortcomings and/or impediments to ESMP’s ability to deliver consistent quality service and effective products.

With this came an action plan to, sequentially, deliver the following tasks:

complete the mapping of the entire cemetery grounds to ensure that new areas of the grounds that are opened up to burial interment are available to families as soon as possible;an upgrade of our outdated Maximise system to a new, highly efficient system, more sophisticated and user friendly program we have aptly named Phoenix that supports the Customer Service and Operations Departments in meeting customer and suppliers expectations; andin turn, major investment in updating our servers and hardware to support the more demanding software.

I am pleased to report that the efforts made by the Board of Trustees and I that commenced in 2003 have been accomplished and ESMP has now entered its planning phase. Whereas the 2003 and 2004 years were marked by necessary change, and 2005 a year of consolidation of the gains made in these years, 2006 has been the beginning of the go-forward phase. The Board and I are very pleased in having changed to a work place culture of unwavering service orientation, supported by like minded staff and effective sys-tems, both financial and operational and to have put in place in 2006 a Strategic Plan that will take us forward in the immediate future.

Activity Statistics & Financial PerformanceESMP, to June 2006, assisted families with a total of 2,117 services: 677 burials and 1,440 cremations (2005: 597 and 1,388 respectively), a split of around 30:70 which is in line with the current industry trend. This represented around 10% of reported activity in the greater metropolitan area. Our aggregate memorialisation conversion rate was 35% compared to the industry average of 30%.

The above activity translates into a combined net surplus for the year of $1.633M before extraordinary items (2005: $1.512M). The majority of this result was from the cemetery operations with the crematorium operations reporting a small loss largely due to additional security services being implemented and higher expendi-tures on memorialisation grounds development.

I am pleased with the fiscal results achieved in what was, and will continue to be, difficult trading conditions. The real reduction in the NSW and Australia-wide death rates, coupled with very intense market consolidation in the past few years, has certainly impacted on profitability and pressured expenses. However, I believe that as long as ESMP can deliver quality service and product choice to our cus-tomers, we will generate the funds necessary for continuing to improve the Park’s facilities and ongoing sustainability.

Strategic Plan UpdateI am very pleased to report that in November 2005 the Board, following much ac-tive consideration, debate and refinement, resolved to approve the ESMP Strategic Plan: 2006-2008 for immediate implementation.

An important milestone in the Park’s evolution, the implementation of the Plan marks the first time management and the Board of Trustees have actively col-laborated to objectively and constructively consider the Park’s status and future directions and to document this accordingly.

The Board, management and I, together with staff, are now actively involved in implementing the strategy as set out in the Plan’s various deliverables.

MemorialisationIn 2005-2006 we consolidated our memorialisation marketing philosophy which has been under review since mid-2004, to a “Good, Better, Best” strategy. As a result decisions were taken to discontinue unsupported products, introduce new products and to restructure our pricing policy to support budget objectives.

Our range now enables families to consider their options in the context of what is best for them and their price range and for ESMP to recover developmental expenditure.

Projects undertaken include:Introduction of new product to the Pond of Tranquility and Circle of Love; the reconfiguration of some areas in Centenary Park as well as shoring up some sections of the pond embankments, repaving, regrassing and refoliaging;

CEO’s | report

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2006 Annual Report

The above tasks were completed on time and within budget. The rewards are very noticeable and I am grateful to the efforts of all the Customer Service Group, in particular Veinita Wodrow and Denise Smith; Tony Brown; and the consultants as-sisting us to make the transitions: Kevin Chester of Chestek Consulting and Robert Eyles of Eyles Computer and Consulting Services.

Capital ExpenditureOther than ongoing maintenance, major projects completed during the year were:the extension and upgrade of the grounds staff’s amenities quarters;refurbishment of the public toilets in Gillooly Avenue;upgrade of the Pond of Tranquility and Circle of Love memorialisation precincts (refer above also);refurbishment of the Memorial Grove crypts and vaults (painting and identified maintenance and repairs) and;refurbishment of the Centenary Park decorative ponds precinct.

In progress (as at the time of writing) are the following:the Pavilion alongside the West Chapel for the comfort of visitors and attendees (scheduled for completion in late September, 2006);the additional mechanical equipment and tool store and associated parking areas (scheduled for completion early October);the commencement of the replacement of the cremators with the number 1 unit scheduled for completion in November. All 3 units are scheduled for completion by June 2007.

I am also pleased to report also that:a development application has been lodged with Randwick City Council to erect a modern cafe, retail and flower shop, additional condolence areas and related park-ing facilities together with associated traffic and streetscape plans;a request for consent by the Department of Lands to lodge a development applica-tion with Council for a staged extension to the Memorial Grove above-ground crypts and vaults and related additional parking;negotiations with the Sydney Ports Corporation to co-operate in the management of surface and subterranean waters in the newer areas of the cemetery grounds, in anticipation of the expansion of burial areas, are progressing well albeit slowly.

Of very special mention is the Board’s and my pleasure in announcing that, as a result of many discussions with Council officers and the local police command in the last two years, Council has recently confirmed its intention to upgrade the Military Road precinct in its entirety with the ESMP frontages, kerbing and gutter-ing and related parking and foliage requirements being scheduled for completion by end June, 2007. This is a major relief to the Board and management as the traffic problems, often caused as a result of the Park’s proximity to Port Botany, are, at last, on the way to substantial solution. The works proposed by Council also in-clude public paths and cycle tracks linking ESMP to Bicentennial Park at Yarra Bay.

To ConcludeI would like to thank the Board for its continued support and active consideration of the ideas and programs that I and my management team have placed before it. As well, I would like to acknowledge the efforts of my management team, my personal assistant Tammy Templeman, and all the staff of ESMP whose collective efforts have greatly contributed to another very successful year.

My sincere appreciation also goes to our customer and families for their trust and confidence in us in our fulfilment of our community obligations.

George H. Passas FCPA, FCIS, FAICD

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2006 Annual Report

Management TeamGeorge H. Passas FCPA, FCIS, FAICD

Chief Executive Officer

Veinita Wodrow JP

Manager, Customer Services

Tony Brown JP

Manager, Site Operations

Catherine Taylor BA, JP

Manager, Marketing and Promotions(to mid June 2006 and contract assignment thereafter)

John Cottee CPA, JP

Acting Manager, Finance & Administration

Denise SmithAssistant Manager, Customer Services

Following the changes introduced last year, thecustomer service team has had a fulfilling year onmany levels. Capitalising on our combined strengthsand growing depth of knowledge we have been able tocreatively meet the needs of our clients and in manyinstances offer them added value.

Some of the photographs in this Annual Report indicate just a few of the ways we have been able to say “yes” to a client when their needs are outside the normal parameters.

An administratively huge effort has been our audit of cemetery records from their inception to now and then incorporating this information into a new database record system; we have named “Phoenix”. Our new system supports legislative compliance, contains a full record of the history of each burial site and allows quick access to burial records for internal management of burial site sales, inter-ment and monumental request processing.

As well, burial and cremation records contained within “Phoenix” have been integrated into our updated and expanded website so customers can easily access and locate the resting place of a loved one.

We have also restructured our pricing policy to reflect ESMP’s newly implemented “Good, Better, Best” product and marketing philosophy and are currently reviewing all our documentation to ensure consistency.

I would like to acknowledge my Assistant Manager, Denise Smith, and the individ-ual members of our Customer Service team for their commitment and dedication to excellence, and the very high level of satisfaction and gratitude that is conveyed through our client survey process.

I am confident that with infrastructures for service delivery now fully in place, my team will not only continue to provide excellent service but also add value whenever they can.

Veinita WodrowManager, Customer Services

Manager, Site Operations

This has been another year with many improvementsand upgrades to the Park which have been ably assistedand accomplished through the conscientious efforts ofcommitted grounds staff.

After two years of mapping, which was part of an overall upgrade to ESMP’s computerised data base now known as Phoenix, the assessment to determine the overall burial capacity of the old sections of the Cemetery was completed and this year we have been able to lay paths and beams to create a further 900 grave sites.

The Pond of Tranquility and Circle of Love memorial gardens were upgraded to offer families traditional formal memorial products in line with the “Good, Better, Best” strategy.

The exteriors walls and rooves of the crypts and vaults in the Memorial Grove were repaired and repainted, walkways were resurfaced and gardens were replanted with additional trees.

The staff amenities block and the refurbishment of the Gillooly toilets were also completed and stage one for the repair and paving of footpath repairs was initiated.

Stage two for land fill for the new sections of ESMP cemetery has been completed with 75,000 cubic metres of soil being installed to raise and prepare the land for additional future burial sites. Plans for stage three include installation of ad-ditional paths and beams and significant replanting of the area.

The purchase of additional machinery this year facilitated greater productivity by grounds staff and further multi-skilling was achieved with all grounds staff having attended training to obtain the OH&S, Safe Digging Techniques, Herbicide Usage and Excavator Certification.

Grounds staff and regularly engaged contractors have maintained ESMP to a high standard and I thank them for their commitment in achieving another success-ful operational year. I look forward to their continued support in the many works planned for the coming year.

Tony Brown

Manager, Marketing and Promotions(to mid June 2006 and contract assignment thereafter)

In addition to the continuation of ongoing marketingand promotions efforts that have been put in place inrecent years, I am pleased to highlight the followingachievements in this fiscal year.

Significantly, after a number of years of working closely with both the management and customer service teams, we have consolidated our ideas regarding product line and marketing strategy and taken the decision for all memorial products within the Park to be marketed within the context of a “Good, Better, Best” strategy. We believe this fundamental policy, in providing clear objectives for any capital expen-ditures in the development of memorial products, will help to ensure a sound fiscal return on funds committed in developing product and long term sustainability of the Park.

Catherine Taylor

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2006 Annual Report

Acting Manager, Finance & Administration

Our strong commitment to maintaining a high standardof customer service demands a strong, robust andreliable back office operation to support the customerservice and operations teams.

A restructure of our Finance & Administration operation was undertaken to deliver improved efficiencies with greater flexibility within ESMP. This resulted in new people, new systems, new opportunities and a renewed focus on delivering excel-lent service.

The central feature of our restructure was the introduction of new accounting controls. By introducing an updated, modern accounting system with improved interface to our client booking system, the data that is collected when bookings are made now flows directly into the accounting records and administrative controls creating a strong foundation to ensure consistent high quality service.

When implementing new systems and changes to back office routines time is always needed to address niggling issues and to ensure data is accurate and reli-able. I applaud the efforts of everyone involved in the project. In a small team, the impact of change is immense and never once was the commitment to excellence lost. When you have, as we do a commitment to excellence, it makes the objective easier to achieve. I would like to thank all who participated in making this pos-sible.

Our new back office routine has delivered increased efficiencies, reduced the level of reworking and now actively supports customer service staff to meet customer expectation. Working with improved product and service data, the customer serv-ice team embraced the new routines, have helped to refine them and are now well positioned to expand the service provided to clients.

The project work over the last year has provided a sound platform for further devel-opment, refined and simplified processes and an expansion of services offered to clients of ESMP. In view of this we confidently look forward to continued success in meeting the needs of the families we serve.

John Cottee

The first memorial project using these guidelines was completed this year with Urban Landscape Projects designing and project managing an upgrade of the Pond of Tranquility which now offers families a complete range of “Good, Better, Best” product to choose from.

As well, a new website that showcases our products and provides customers with valuable information about our services was also completed and has received very favourable feedback with the recorded hits to our site increasing markedly.

Not new but of continuing importance is our quarterly memorial program providing families with a very important avenue for dealing with the loss and pain of their loved one. Since its inception the program has taken on a life of its own with the regulars who return each quarter becoming part of the support and comfort to those attending for the first time. Through the care it now provides for so many it has become a valuable resource for our families and community.

The year 2005-2006 has consolidated the work of previous years and placed us in a better position to more effectively target and meet the needs of customers.

Peter KayePrincipal, Consultgroup Human Resource Management

As a responsible employer ESMP promotes a caring, safe, team based work culture that recognizes diversity in its workforce and encourages training and develop-ment. To ensure this high quality of HR management ESMP outsources delivery of HR services to Consultgroup.

With a weekly presence on site, we have worked closely this fiscal year with management, to review and finalise key human resource management policies and develop a new set of HR forms. The staff induction program has been significantly revised introducing a new format that enables both the supervisor and the new employee to take joint responsibility and to ensure all aspects of the induction process are completed. The implementation of an active Occupational Health and Safety program has also ensured that all staff receive the necessary training, pro-tective clothing and equipment, that risk assessment is regularly undertaken and that preventative and mitigation action is identified and implemented. With these precautions in place, only 3 injuries were reported in the 12 month period, two of which were very minor and with the other recovering fully.

In addition staff training has been provided in specialist areas such as Handling Herbicides as well as Team Leader Training courses. Training has been identified as a high priority area for 2006-07.

All ESMP staff have had their position descriptions updated as a necessary component of the annual performance appraisal program which is undertaken with each member of staff. This fiscal year an ex-gratia payment was paid to all non-management employees. Staff turnover was at a low level of 15% on a total workforce of 27 full time staff.

Staff Category Female Male TotalCEO/Management 2 2 4

Grounds 0 15 15

Service & Sales 2 3 5

Administration 1 1 2

Regular Casuals 1 1

Total 6 21 27

The increased level of staff involvement in decision making and the improved access to information has resulted in increased staff morale and level of teamwork necessary to ensure high levels of customer service.

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2006 Annual Report

Through their commitment to service excellence, staff consistently provides high quality care to our clients.

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2006 Annual Report

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2006 Annual Report

12 Military Road, Matraville NSW 2036

P | (02) 9661 5655 . F | (02) 9311 3654 . e | enquiries@esmp.net.au

www.esmp.com.au

Administered by:The Botany Cemetery & Eastern Suburbs Crematorium TrustsMember of Cemeteries & Crematoria Association of NSW and Australian Cemeteries & Crematoria Association