MELBOURNE & OLYMPIC PARKS TRUST ANNUAL REPORT 2012 · 2018. 8. 27. · surgence featured Janet...
Transcript of MELBOURNE & OLYMPIC PARKS TRUST ANNUAL REPORT 2012 · 2018. 8. 27. · surgence featured Janet...
MELBOURNE&OLYMPICPARKSTRUSTANNUALREPORT2012
MELBOURNE&OLYMPICPARKSTRUST
ANNUALREPORT2012
CONTENTS
Governance 4-5
TheChairman’sReport 6
TheCEO’sReport 7
Highlights2011-12 9
OurPartners 11
FinancialOverview 12
FinancialStatements 13-41
AdministrativeReportingRequirements 42–44
DisclosureIndex 45
ANNuAlREPORT2012 3
GOvERNANCE
EstablishmentTheMelbourneandOlympicParksTrust(MOPT)wasestablishedon5October1995pursuanttotheprovisionsofTheMelbourneandOlympicParksAct1985(asamended).ItwascreatedbythemergeroftheNationalTennisCentreTrust(established13Nov1985)andtheOlympicParkCommitteeofManagement(formedoriginallyin1909).TheActisjointlyadministeredbyboththePremierofvictoria,theHonourableTedBaillieu,andtheMinisterforSportandRecreation,theHonourableHughDelahunty.
The Melbourne and Olympic Parks Act 1985The Purpose of the Act:
ThepurposesoftheActasoutlinedinsection3are:
• TocreateaMelbourneandOlympicParksTrusttoadministertheNationalTennisCentre,OlympicParkandcertainotherlandandfacilitiesforthepurposesoftennis,othersports,recreationandentertainment
• ToprovideforthemanagementandoperationoftheNationalTennisCentreandOlympicPark
• ToprovidefortheuseandpromotionoftheNationalTennisCentreandOlympicPark
• Toprovideforthedevelopment,promotion,management,operationanduseofsports,recreationandentertainmentfacilitiesandservicesinvictoriainadditiontothoseattheNationalTennisCentreandOlympicPark.
undertheActtheTrusthasthefollowingprimaryfunctions:
• ToacceptappointmentandactasacommitteeofmanagementofCrownlands.
• Toberesponsibleforthecare,improvement,useandpromotionoftheNationalTennisCentreandOlympicParkasfacilitiesfortennis,othersports,recreationandentertainment
• TooperatetheNationalTennisCentreandOlympicParkefficientlyandeffectivelytoobtainthebestpossibleuseofthefacilities
• ToprovideplanningfortheoperationoftheNationalTennisCentreandOlympicParkwhichiscoordinatedbetweenthetwofacilities
• ToberesponsibleforproperfinancialmanagementoftheNationalTennisCentreandOlympicPark
• Toprovidefortheplanning,development,promotion,management,operationanduseofothersports,recreationandentertainmentfacilitiesandservicesinvictoria
• Toprovideforthedevelopment,promotion,management,operationanduseoffacilitiesandservicesfortheparkingofvehiclesandothernecessaryservicestobeusedinconjunctionwithanyofthefacilitiesoperatedormanagedbytheTrust
• ToprovideforthemanagementofGosch’sPaddockbytheTrustasacommitteeofmanagementundertheCrownlands(Reserves)Act1978.
The Trust’s VisionToberecognisedasbeingamongsttheworld’sbestandmostsuccessfulsportandentertainmentprecincts.
Our MissionMelbourne and Olympic Parks Trust - Managing one of the world’s leading destinations for sports, entertainment and recreation.
TheTrust:
• Providesvenues,servicesandinfrastructureofaninternationalstandardto:
– provideahomeforTennisAustraliaandtheAustralianOpen;
– attractandsupportthedeliveryoflargespectatorbasedindoorandoutdoorsportingandentertainmentevents;
– enhanceMelbourne’spublicrecreationalamenities;
– supportvictoria’smajorevents,tourismandsportsstrategies.
• Ensuresthatitearnsasufficientincomefromitsactivitiesinordertobeabletodeliverontheseobligationsinthelongterm;
• Operatesasmallbutflexiblecustomerfocussedorganisationthatdeliverssuccessfuleventsinpartnershipwithkeystakeholders;
• MaintainsanenvironmentallysustainableprecinctintegratedwiththeCityanditsparklands.
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GOvERNANCE
TRuSTEES
BrianMorris-ChiefExecutiveOfficer
TravisMardling-ChiefFinancialOfficer
lloydFreeburn-DirectorofServicesandBuildingInfrastructure
ShaneMates–GeneralManagerAAMIPark
DonnaPrice–GeneralManagerPeopleandCulture
MarkZundans–DirectorofOperationsMelbournePark
Statement of Corporate GovernanceProcedureshavebeenestablishedattheTrustandexecutivemanagementlevel,whicharedesignedtosafeguardtheassetsandinterestsoftheTrustandtoensureintegrityofreporting.TheTrustacknowledgestheneedforandcontinuedmaintenanceofthehigheststandardsofcorporategovernancepracticeandethicalconductbyallTrusteesandemployeesoftheTrust.
Remuneration CommitteeTheTrusthasestablishedaRemunerationCommitteetogoverntheTrust’spolicyandpractiseforexecutiveremunerationandtodeterminetheindividualremunerationpackagesforitsexecutivestaff.TheCommitteemeetsasrequiredandmakesrecommendationstotheTrustonspecificissues.ThemembersoftheCommitteeduringtheyearended30June2012were:
RussellCaplan(Chair)SueNattrassGeoffPollardJohnHowieDianaNicholsonRaySmith
Finance Audit and Risk CommitteeTheTrusthasestablishedaFinanceAuditandRiskCommitteetoadvisetheTrustinrelationtomattersfallingintothebroadareasof:
• Financialreporting,accountingpoliciesandinternalcontrols
• Riskmanagement
• Governance
• Funding
TheCommitteemeetsmonthlyormoreoftenasrequiredandmakesrecommendationstotheTrustonspecificissues.
TheMembersoftheCommitteeduringtheyearended30June2012were:
RaySmith(Chair)RussellCaplanSueNattrass
JohnCainGeoffPollardDeborahBeale
AllFinance,Audit&RiskCommitteemembersareindependentfrommanagement.
Strategic Planning Committee
TheTrust’sStrategicPlanningCommitteeisestablishedtoprovideindependentandexpertadvicetoassisttheTrusttodischargeitsstrategicplanningresponsibilities.
TheMembersoftheCommitteeduringtheyearended30June2012were:
RussellCaplan(Chair)DeborahBealeTimJacobs
kateJoelRaySmithScottTanner
ExECuTIvEGROuP
RussellCaplan
TheHonourableJohnCain
JohnHowie(to24/3/2012)
kateJoel
SueNattrassAO
RaySmith
ScottTanner
DianaNicholson
GeoffreyPollardAM
DavidStobart
DeborahBeale(to26/5/2012)
TimJacobs
ANNuAlREPORT2012 5
THECHAIRMAN’SREPORT
AnotherdynamicyearofdiverseeventsgeneratedapositivefinancialresultfortheMelbourneandOlympicParksTrust.TheprecinctisundergoingextensiveredevelopmentasitimplementsthelongtermmasterplanaddressingtheneedsoftheAustralianOpenandotherprecinctstakeholders.MaintainingMOPT’sstrongfinancialresultsduringtheredevelopmentperiodwillbeachallenge,ascostswillincreasebeforethenewfacilitiesareoperationalandasignificant,albeitnecessary,portionofthenewinfrastructurewillnotberevenuegenerating.
TheyearproducedmanyhighlightsincludinganotherAustralianOpenrecordattendanceof686,006patrons,thanksinparttothewonderfulweather.ThetournamentbroketheworldwideGrandSlamonedayattendancerecordwhen80,649fansflockedtotheprecinctforthemiddleSaturday.Inthemen’sfinalNovakDjokovicwonhisthirdAustralianOpendefeatingRafaelNadalinagruellingfivesetmatchplayedover5hoursand53minutes(thelongestfinalinGrandSlamhistory).victoriaAzarenkadefeatedMariaSharapovaintheWomen’sFinalforherfirstmajortitle.
Ourextensiveredevelopmentisbeingcompletedinstagesandthisyear’sAustralianOpenusedtheimprovedpublicfacilitiesnowavailablebetweenRodlaverArena,HisenseArenaandBatmanAvenue.Additionally,significantstormwaterharvesting,treatmentandclearwaterstoragefacilitieshavebeeninstalledundertheseareastoreducetheprecinct’susageofpotablewater,whileallowingimprovedlandscapingandmaintenanceduringtimesofdrought.
InJanuary,thevictorianGovernmentunveiledthenewdesignforMargaretCourtArenawithanoperableroof,improvedpublicfacilitiesandincreasedcapacityto7,500.Theconstructionisnowunderwayandisdueforcompletionin2015.ThiswillmaketheAustralianOpentheonlyGrandSlamboastingthreefeaturecourtswithoperableroofsandwillfurtherenhanceoursuiteofsportandentertainmentfacilitiesyearround.
InMay,thevictorianGovernmentannounceda$5.5millioncommitmenttofundadetaileddesignandbusinesscase,inpreparationforthenextstageoftheMelbourneParkredevelopment.ThisnextstagewillincludeupgradingRodlaverArena,thecreationofnewpublicspacesandamenities,aswellasimprovedplayer,mediaandbroadcastfacilities.
ThenewEasternPlazaredevelopment,whichincludesanelevatedplazalinkingAAMIParkandtheMCG,parkingfor1,000carsandanewNationalTennisCentreforsportsdevelopment,iswellunderwayandremainsontargetforcompletionbyApril2013.InJune,theGovernmentannouncedthatthenewfootbridgelinkingtheEasternPlazatoAAMIParkwillbenamedafterAustralia’sfirstOlympian,EdwinFlack.ThefootbridgewillprovideapedestrianlinkbetweentheMCG,HisenseArenaandAAMIPark,reducingtrafficcongestionduringeventsandprovidingsafeaccesstoourvenues.
ThenewOlympicParkOvalanditssurroundsarecurrentlyunderredevelopmentanddueforcompletionattheendof2012.Theovalandparklandunderconstructionwillfurtherenhancetheprecinct’spublicopenspaceandrecreationalfacilities.Tohonourthesite’sathleticsandOlympicheritage,theiconicstatue‘Sportsmanship’(commemoratingJohnlandyandRonClarke’sfamousOlympicqualifyingrace)and1956Olympicinterpretivepieceswillalsobelocatedinthisarea.
AAMIParkwelcomeditsonemillionthpatroninFebruaryafterlessthantwoyearsofoperation,atestimonytothepopularityofthestadium.Acelebratory360degreeFanCamphotographwastakenofthecrowdattheMelbournevictoryvMelbourneHeartDerbyandwaswidelydistributedthroughsocialmediachannels.Thestadiumalsodelivereditsfirstconcert,theFooFighters2012Australiantour,attractingcapacity30,000attendancesbothnights.
AAMIParkcontinuestoattractworldwideattentionandwonseveralsignificantawardsduringtheyearincludingtheProfessionalFootballersAssociation‘BestPitch’awardand‘mosticonicandculturallysignificant’stadiumatthe2012WorldStadiumAwardsheldinDoha,Qatar.
InlinewithglobaltrendstherewerefewerRodlaverArenaconcertdaysthanlastyear;howeverthearenaisstillreportedbyinternationallivemusicindustrytrademagazinesasbeingamongsttheworld’stoplivemusicarenas.
OnbehalfoftheTrustees,IwouldliketorecogniseandthankretiringmemberJohnHowieforhisoutstandingcontributionandservicetothisprecinctforover30years,startingoriginallywiththeOlympicParkCommitteeofManagementin1982,andthenasaMelbourneandOlympicParksTrustee.
OnbehalfoftheTrusteesIwouldalsoliketoexpressmythankstothePremierofvictoria,TheHonourableTedBaillieu,andtheMinisterforSportandRecreation,TheHonourableHughDelahuntyfortheirunwaveringsupport.
TheMOPTteamledbyChiefExecutiveBrianMorrishasshownincredibleresilienceanddedicationtoensuretheprecinctoperatesflawlesslyduringthisdifficulttimeofredevelopmentandIthankthemandmyfellowTrusteesfortheirefforts.
InaccordancewiththeFMA1994,IampleasedtopresenttheReportofOperationsfortheMelbourne&OlympicParksTrustfortheyearending30June2012.
Russell Caplan
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THECEO’SREPORT
Attendance and PerformanceTheTrustdeliveredapositiveresultwithanetprofitof$5.3million.Duringtheyearourvenuesattractedatotalof2.3millionticketedpatronswhichwasslightlydownontheprecinctrecordsetthepreviousyearduetolowernumbersofconcertdaysandattendanceatRodlaverArena.
Australian OpenTheAustralianOpenachievedarecordattendanceoverallwiththemiddleSaturdaysettinganotheronedayrecord.MelbourneParksnewlayouthandledtheincreasednum-bersextremelywell,particularlythemainpublicareassuchasGrandSlamOval,RiverTerraceandGardenSquare.
Rod Laver ArenaIntotal,RodlaverArenaattracted629,842patronsto63concertdays,slightlydownonthepreviousyear.An80’sre-surgencefeaturedJanetJackson,Roxette,BackstreetBoys/NewkidsontheBlock,SteveWinwood/SteelyDan,Sadeandmostspectacularly,Prince.Oneoftheworld’sbiggesttouringacts,RogerWaters’The Wall,soldoutthreeshowsboastingoneofthelargestandmostimpressiveproductionseverinstalledinthearena.OtherhighlightsincludediconicAustralianbandColdChisel’stwosoldoutconcertsandladyGagaperformingfiveshowstoherlegionofdevoted‘monsters’.
Hisense ArenaIntotal,HisenseArenaattracted232,139patronsto53eventdays.Notably,globalphenomenonsOneDirectionandNickiMinajbothplayedpromotionalshowsforthefirsttimeatthisarena.EachwillreturntoRodlaverArenaontheirworldtours.
HisenseArenawelcomedtheworldpremiereofthearenaspectacular‘HowtoTrainyourDragon’,ahighlytechnicalandexcitinganimatronicsshowwhichisnowtouringglob-ally.
TheuCITrackCyclingWorldChampionshipsattractedsoldoutcrowdsoverfivedaysofintensecompetition,theupgradestothetrackweretestedandmettheapprovaloftheteams.MelbournevixenscementedHisenseArenaastheirhomeshowingsignificantgrowthintheirattendances.NetballisbecominganimportantcontributortotheArena’scontent.
AAMI ParkAAMIParkhadaverystrongyearwith732,806ticketedpatronsattending49eventdays.
ThetwoMelbournederbiesattheStadiumwerenearsellouts.MelbourneHeart,intheirsecondseason,improvedenoughtomaketheA-leaguefinals.TheAustraliavSaudiaArabiaWorldCupQualifyingmatchdrew24,214peopleandprovidedSocceroosfansasatisfying4-2victory.Meanwhile,GlasgowCelticsupporters’passionwasonfulldisplayattheirexhibitiongameagainstMelbournevictory.Thespec-tacularseaofgreenandwhitecladfanswasrewardedwitha1-0winoverthelocals.
Intheir15thyearofoperation,MelbourneStormproducedasuperb2011NRlseasonbeforegoingdowntoAucklandWarriorsinahomepreliminaryfinal.Theevercompeti-tiveStormsubsequentlypickedupwheretheyleftoffwithastrongstarttothe2012season.TheANZACDaygameagainsttheWarriorscontinuedtobuildmomentumwithanotherstrongcrowdconfirmingitsstatusasahighlightoftheNRlfixture.
MeanwhileinSuperRugby,theMelbourneRebels’secondseasonconsolidatedtheirsupporterbasewithimprovedon-fieldperformancesandstrongattendances.
AAMIParkstageditsfirstconcertinDecemberwithtwosoldoutFooFightersshowseachattracting30,000patrons.Theeventsweresosuccessfulthebandfeaturedtheseconcertsintheirsongvideos.Agreatdealofplanningwentintotheeventtoensurethepitchwasproperlyprotectedandpatronshadagreatexperience.Thestadiumproveditsconcertcapabilitieswiththenextgameplayedonaflawlesssurface.
AwidersectorofthepublicalsohadtheopportunitytoviewAAMIParkupcloseonMelbourneOpenHouseday;apro-gramthatprovidesfreeaccesstomanysignificantbuildingsinandaroundthecity.Aspartoftheannualevent,over800curiouspeopletookabackstagetourofthestadium.
Corporate Hospitality and EventsTheFunctionCentrebusinessenjoyedastrongyearwith191eventdays,representingasolidincreaseinrevenueandoccupancyonthepreviousyear.
ANNuAlREPORT2012 7
THECEO’SREPORT
Capital Projects and Infrastructure TheTrustcurrentlyhasassetsundermanagementof$1.1billion,thisrequiresanintensivemaintenanceandim-provementregime.Morethan$16millionwasinvestedinupgradingandreplacingfacilitiesandinfrastructureduringtheyear.TheseworksincludedtheredevelopmentofOlympicPark,improvementstotheAustralianOpenPlayerCafe,patronandtournamentfacilities,installationofnewtechnology,therelocationofadministrationfacilitiesandimprovementstoAAMIParkanditssurrounds.
ThenewPlayerCaféwaswelltestedduringtheAustralianOpenandtheimprovedpatronfacilitiesallowedforgreaterfoodchoicesandspeedofservice.Othernewplayerfacili-tiesincludedagymnasiumandwarm-uparea,aplayerloungeandanadditionaloutdoorarea.ThenewRiverTerracewithitswoodendecksandlandscapingalongBat-manAvenue,aswellasthenewOval,hasdeliveredgreatlyimprovedpublicfacilitiesfortheAustralianOpen.
Maintainingpubliclandscapedareasandplayingsurfacesremainsapriority.Weseeeverincreasingnumbersofpublicandorganisedsportutilisingourspacesforrecreationandtraining.Despiteworksundertakenbyutilitiescompaniestore-routeservicesduringtheyearonGosch’sPaddock,thearearemainedopenforpublicaccessthroughouttheyear.
Melbourne Park RedevelopmentTheredevelopmentcontinuesatarapidratewithextensiveworksalreadycompletedontheEasternPlaza.ThenewNationalTennisCentrehasalreadychangedtheskylineoftheprecinctsignificantly.TheMargaretCourtArenadevel-opments,athreeyearprojectdueforcompletionin2015,arealsowellunderwaywiththecommencementofdrillingandpilingandworksontheseatingbowl.Theactivitiesre-quiredaytodaymanagementandcommunicationbetweenallofthestakeholdersastheyimpactontheprecinct’soperations.Weappreciatethepatienceandunderstandingofourtenantsandhirerswhileweupgradeourfacilitiesforthefuture.
People and CultureSafetyisakeystrategicplatformofourbusiness.WeareverypleasedtohavegainedAS4801initiallevelaccreditationinadditiontoourSafetyMapaccreditationduringtheyear-areflectionofourongoingcommitmenttoimprovingsafetyacrossallareasofourbusiness.
Theorganisationiscurrentlyundergoingaperiodofsub-stantialchangewithimpactoftheconstructiononopera-tionsandtheincorporationofnewandexpandedvenues.TheofficerelocationwascompletedwiththreenewworkhubsbasedatHisenseArena,RodlaverArenaandAAMIPark.Duetothepermanentworkforcenowlocatedinthreeareasoftheprecinct,improvingcommunicationbetweenareaswillbeafocusforthenewyear.The“yourvoice”em-ployeeengagementsurveycapturedmorethan50%oftheworkforceinordertounderstandbetterstaffalignmentandengagementlevels.Theresultsofthissurveyarecurrentlybeingreviewed.TheEmployeeWellbeingProgram,aimedatincreasingthehealthandwellnessofourstaff,hasbeenwellutilised.
IwouldliketothanktheChairmanoftheTrust,RussellCa-planandtheTrustees,PeterHertanatSportandRecreationvictoria,andTimBamfordatMajorProjectsvictoriaandtheirrespectiveteamsfortheirsupportduringtheyear.Fi-nally,aspecialthankstotheMelbourneandOlympicParksteamwhohavecontinuedtodeliverexceptionaleventsandserviceduringaperiodofsignificantchangeanddisruption.
Brian Morris
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HIGHlIGHTS2011-2012
Events
AUSTRALIAN OPEN 2012
ROd LAvER ARENAColdChiselDefleppardDisneyonIcePresentsWorldsofFantasyDollyPartonDuranDuranEltonJohnEnriqueIglesiasEvanescenceFlorence+TheMachineFrankievalliHawthornFootballClubGrandFinalDayFunctionJanetJacksonJehovah’sWitnessConventionJohnFogertykingsofleonladyGagaMeatloafMotleyCrueNitroCircusNkOTBSBPlacidoDomingoandkatherineJenkinsPrinceRodStewartRogerWaters-TheWallRoxetteSadeSlipknotSteelyDan&SteveWinwoodSystemofaDownTaylorSwiftTheFootyShowGrandFinalEditionTimMcGrawandFaithHillWinterbeatzWWE2011
HISENSE ARENA21stCenturyEducationSummitAustraliavNewZealand-NetballAustralianDancesportChampionshipBeautifulWomanConferenceCelticThunderCesarMillanCorporateSportsAustraliaAFlGrandFinalBrunchGodskitchenHowtoTrainyourDragon-AustralianTourJackyCheung1/2CenturyTour-Australialondon2012BasketballFarewellSeriesMetroTrainsFamilyDay&Concert
NickiMinajOneDirectionPlanetShakersConferenceRockEisteddfodChallengeMelbournevixens-ANZChampionship(6homegames)StateofOriginRodeoTeacher’sunionMeetinguCITrackCyclingWorldChampionshipsvictorianStateSchoolsSpectacularxFactorAuditionsyouthAlive
OLyMPIC PARk STAdIUMAGSAthleticsCarnivalAllSchoolsTrackRelayChampionshipAPSAthleticsCarnivalGSvChampionshipCarnivalsGSvFinalsEveningSchoolsknockoutvictorianRugbyleague-under12sChampionships
AAMI PARkAustraliavsSaudiArabia-WorldCupQualifierFFvMirabellaCupFFvPremierleagueGrandFinalFooFightersinConcertGlasgowCelticvsMelbournevictoryMelbourneHeart-HyundaiA-league(13homegames)MelbourneRebels-SuperRugby(10homegames)MelbourneStorm-NRl(12homegames)Melbournevictory-HyundaiA-league(8homegames)
MELbOURNE PARk FUNCTION CENTRE2012MedicalCareersExpo7ElevenFranchiseeMeetingAgedandCommunityCare2012StateCongress&ExhibitionAgedandCommunityCareConferenceAlbanianConcert2012AppitaExhibitionandConferenceAssociation&CommunicationsEvents-RoadsConferenceAssociationandCommunicationsEvents-ZeroWasteConferenceAustralianFootballleagueBanquetDinnerAustralianOpenMedia&CorporatelaunchAxARetireesChristmaslunchBDOCharteredAccountantsBanquetDinner
BeWhatyouWant’-CharityExpoBeaconhillsvaledictoryDinnerBelarusCyclingFederationCocktailPartyBillanookDinner/BanquetBlueCrossCommunityandResidentalServicesCareyBaptistGrammaryear12valedictoryDinnerColeslimitedBusinessMeetingsCollingwoodFootballClubAnzacDayluncheonConnectEntertainmentConferenceCPAExamMarkingCSlAnnualGeneralMeetingCSRlimited-AnnualGeneralMeetingDARu(DisabilityAdovacyResourceunit)ConferenceDepartmentofJusticeConferenceDepartmentofEducationConferenceDepartmentofTreasuryandFinanceConferenceElectronexExhibition2011EventMangementGroup(EMG)-SensisWhitePagesConferenceEmpowernet-WealthMasteryConferenceEssoluncheonFremantleDockersCocktailPartyFrontlineSportsfirstRangeDaysGlobalCreatures-HowtoTrainyourDragonAfterPartyHasbroEventsExhibitionHealthcertWorkshopICBBookeepersConferenceITAC2012JanetJacksonPreShowPartyJehovah’sWitnessConventionlION-leadingOurAchievementCultureConferencelION-CapabilityandDevelopmentConferenceMarketAustralialeadershipSchool2011MunicipalAssociationofvictoria(MAv)-ConferenceMunicipalAssociationofvictoria(MAv)-TheFutureoflocalGovernmentSummitMunicipalAssociationofvictoria(MAv)-WastePolicyForumMelbaSupportServices2011ConferenceMelbourneGirlsGrammarMelbourneStormAuctionNightMelbourneStormPostMatchMembersFunctionMelbourneFireBrigadeConferenceMethodistladiesCollege(MlC)year12formal2012
ANNuAlREPORT2012 9
Major Capital ExpenditureExpenditure type Amount Details
AAMIParkInfrastructure $1.1million Includesaredesignofentryturnstiles,newadministrationofficesandothermodifications
MelbourneParkInfrastructure $3.7million Includesimprovementstotennisfacilities,beingtheconstructionofanewplayergym,upgradestotheplayerlounge,changeroomfacilities,corporatesuites,tenniscourtlightingandarefurbishmentofShowCourt3.Safetyrelatedworksincludedelectricalswitchboardupgrades,HisenseArenacanopyrepairsandanupgradetocyclinginfrastructure.
OlympicParkRedevelopment $8.7million CostsincurredfortheredevelopmentofOlympicPark-demolitionandcivilworks.ThisprojectisexpectedtobecompletedinMarch2013
EquipmentandTechnology $2.5million IncludescontinuedupgradestotheITnetworkacrosstheprecinct,intranetsystemimprovements,electronicsecurityupgrades,newretailvendingcartsandotherequipmentandtechnologyrequirements
WestpacCentreInfrastructure $0.2million Relatestoupgradestotheswimmingpool,roofmembraneanddrainage
TOTAL $16.2 million
HIGHlIGHTS2011-2012
Events (cont)NABBBQ&TennisDayNABPersonalBanking-BusinessOperationsTeamDayNiqueStewartsMindsettoMillionaireSeminarNitroCircusPreShowEventPlANAustralia-ProfessionalDevelopmentDayPlanetShakersConferencePublicSectorBusinessSolutionsShowRedMeatNetworkingClubTradeEventRockwellAutomationConferenceSchoollibrariesAssociationvictoria
(SlAv)ConferenceStkevin’sCollege2012FormalSwinburneuniveristyExamsSynnexAllianceExpo2011TennisAustraliauniformFittingsTennisAustraliaConferenceTheBuPAExperienceTicketek-EltonJohnPreShowBanquetDinnerTRuenergyChristmasPartyvictorianDanceSportsvictorianTransportAssociationConference
victoria’sSmallBusinessFestivalvMuGuserGroupExhibitionvocationalTrainingGroupGraduationDinnerWesternBulldogsBreakfastWoundManagementConferenceyouthAffairsCouncilofvictoria(yACvic)Conference
Key Statistics
2011/12 2010/11Numberofcontracteddays–MelbournePark 233 238Numberofcontracteddays–AAMIPark 55 52Numberofcontracteddays–MelbourneParkFunctionCentre 191 186RlAeventticketedattendance 629,842 942,510HisenseArenaeventticketedattendance 232,139 177,617AAMIParkeventticketedattendance 732,806 655,029MelbourneParkFunctionCentrepatrons 134,657 81,739AttendanceatAustralianOpen(grandslamrecord) 686,006 651,127CrowdatAO,day6(onedaygrandslamrecord 80,649 77,121Numberofwebsitevisitors(allMOPTsites) 893,741 841,247
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OuRPARTNERS
TheTrustwouldliketothankthefollowingorganisationsfortheirsupportoverthepastyear
TenantsAthleticsvictoria
CalibreFeasts
CollingwoodFootballClub
Imaging@OlympicPark
MelbourneFootballClub
MelbourneStorm
Melbournevictory
OlympicParkSportsMedicineCentre
TennisAustralia
Tennisvictoria
victorianInstituteofSport
victorianOlympicCouncil
victorianRugbyunion
SuppliersCoca-ColaAmatil
DiageoAustralia
Carlton&unitedBreweries
HeinekenlionAustralia
kraftFoodsAustralia
lionCo(DairyandDrinks)
MarsSnackfoodAustralia
NestlePeters
PattiesFoodslimited
PernodRicardAustralia
TreasuryWineEstates
Venue PartnersAAMI
ACG
CapricornStagesandRigging
DelawareNorthCompaniesAustralia
HisenseAustralia
MichaelO’BrienCatering
Ticketek
TennisAustralia
Regular Arena HirersChuggEntertainment
DaintyGroup
FeldEntertainment
FrontierTouring
liveNationAustralia
Melbournevixens
MichaelCoppelPresents
vanEgmondGroup
AAMI Park ClubsMelbourneHeart
MelbourneRebels
MelbourneStorm
Melbournevictory
ANNuAlREPORT2012 11
FINANCIAlOvERvIEW
ThefinancialstatementsinthisreportrelatetotheactivitiesofMelbourne&OlympicParksTrustfortheyearended30June2012.
Thenetresultfor2012wasaprofitof$5.345million(2011:$7.024million).
Inthe2011/12yeartheTrustreceivedgrantsfromthevictorianGovernmenttotalling$91.300millionallofwhichwastreatedascontributedcapital(2011:$37.600millionallofwhichwastreatedascontributedcapital).Thegrantsin2012werefurthercontributionstowardstheredevelopmentoftheMelbourneParkprecinct(2011:grantstowardstheredevelop-mentoftheMelbourneParkprecinct).
Totalincomefor2011/12was$103.625million,(2011:$101.534million).Incomerelatedtothesalesofgoodsandservicesincreasedby2.6%whichwasprimarilyduetothesuccessoftheAustralianOpenwhichgenerated11%greaterincomethanthepreviousyear.
Thesignificantfactorsinreachingthisincomewere:
· ThesuccessfuldeliveryoftheAustralianOpen,includingarecordoverallattendancewhichwas5%higherthanthepreviousyear;
· RodlaverArenahosting63eventdayswithmanyhighqualityinternationalartistsperformingduringtheyearwhichresultedinstrongeventyieldsbutlessoverallattendeesthanthepreviousyear;
· HisenseArenahosting53eventdays,attracting31%moreticketedattendeesthanthepreviousyear.Theaverageattendancepershowwasatitshighestlevelformanyyearsandresultedinimprovementsinyieldsperevent;
· AAMIParkhosting49eventdays,attracting12%moreticketedattendeesthanthepreviousyear.InadditiontobeingthehomeoftheMelbourneStorm(rugbyleague),MelbourneRebels(rugbyunion),MelbournevictoryandMelbourneHeart(soccer),AAMIParkalsohostednoteableone-offeventsincludingtwoFooFightersconcerts,aWorldCupQualifier(soccer),afriendlysoccermatchbetweenGlasgowCelticandMelbournevictoryand2NRlfinals;
· TheMelbourneParkFunctionCentreachievedsignificantincomegrowthfromhostinganumberoffunctions,conferences,seminarsanddinnersandsawa65%increaseinattendancefigures.SignificanteventsincludedtheAFlGrandFinalDayDinner,SwinburneuniversityexamsandCPAexammarkingweekends.
Totalexpensesfromtransactionsin2012was$98.434million,(2011:$94.419million).Thisincreaseinexpenditurewaspredominantlyasaresultoftheincreaseineventrelatedrevenue.
Property,Plant&Equipment(lessaccumulateddepreciation)increasedby$56.435millioncomparedtolastyear,primarilyduetotheMelbourneParkredevelopmentconstructioncosts,partiallyoffsetbyadecreaseinthevalueoflandandbuildingsasaresultofarevaluation.
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FINANCIAlSTATEMENTS
ComprehensiveOperatingStatementBalanceSheetStatementofChangesinEquityCashFlowStatementFinancialyearEnded30June2012
ANNuAlREPORT2012 13
NOTE 2012 $’000
2011 $’000
CONTINUING OPERATIONS
INCOME FROM TRANSACTIONSSalesofgoodsandservices (2a) 100,335 97,746Interest (2b) 1,501 643Grants (2c) 820 2,143OtherIncome (2d) 969 1,002TOTAL INCOME FROM TRANSACTIONS 103,625 101,534
EXPENSES FROM TRANSACTIONSCostofgoodssold/distributed (3a) 35,150 30,409Purchaseofservices (3b) 15,351 14,241Employeeexpenses (3c) 17,305 17,213Interestexpense (3d) - 107Depreciation (3e) 25,175 26,514Otheroperatingexpenses (3f) 5,453 5,935TOTAL EXPENSES FROM TRANSACTIONS 98,434 94,419
NET RESULT FROM TRANSACTIONS (NET OPERATING BALANCE) 5,191 7,115
Other economic flows included in net resultNetgain/(loss)onnon-financialassets (4a) (86) (77)Netgain/(loss)arisingfromrevaluationoflongserviceliability (4b) 240 (14)Total other economic flows included in net result 154 (91)
Net result 5,345 7,024
Other economic flows - other non-owner changes in equityChangesinphysicalassetrevaluationsurplus (7) (28,565) -Total other economic flows - other non-owner changes in equity (28,565) -
Comprehensive result (23,220) 7,024
Theabovecomprehensiveoperatingstatementshouldbereadinconjunctionwiththeaccompanyingnotes.
COMPREHENSIvEOPERATINGSTATEMENTFORTHEFINANCIAlyEARENDED30JuNE2012
14 MElBOuRNE&OlyMPICPARkSTRuST
BAlANCESHEETFORTHEFINANCIAlyEARENDED30JuNE2012
NOTE 2012 $’000
2011 $’000
ASSETS
FINANCIAL ASSETSCashandcashequivalents (5) 62,194 38,717Receivables (6) 3,251 3,060TOTAL FINANCIAL ASSETS 65,445 41,777
NON-FINANCIAL ASSETSProperty,plantandequipmentandIntangibleassets (7) 1,098,488 1,042,053Other (8) 191 392TOTAL NON-FINANCIAL ASSETS 1,098,678 1,042,445
TOTAL ASSETS 1,164,123 1,084,222
LIABILITIESPayables (9) 13,294 6,166Provisions (10) 2,619 2,398Other (11) 25,404 20,931TOTAL LIABILITIES 41,317 29,495
NET ASSETS 1,122,806 1,054,727
EQUITYAccumulatedsurplus/(deficit) 196,247 190,903Reserves 314,675 343,240Contributedcapital 611,884 520,584NET WORTH 1,122,806 1,054,727
Theabovebalancesheetshouldbereadinconjunctionwiththeaccompanyingnotes.
ANNuAlREPORT2012 15
STATEMENTOFCHANGESINEQuITyFORTHEFINANCIAlyEARENDED30JuNE2012
Notes Physical AssetRevaluation
Surplus$’000
AccumulatedSurplus
$’000
Contributions By Owner
$’000
Total$’000
Balance at 1 July 2010 343,240 183,879 482,984 1,010,103
NetResultfortheyear 7,024 7,024
Transactionswithownersintheircapacityasowners
37,600 37,600
RevaluationofAssets (7) - -
Balance at 30 June 2011 343,240 190,903 520,584 1,054,727
NetResultfortheyear 5,344 5,344
Transactionswithownersintheircapacityasowners
91,300 91,300
RevaluationofAssets (7) (28,565) (28,565)
Balance at 30 June 2012 314,675 196,247 611,884 1,122,806
Theabovestatementofchangesinequityshouldbereadinconjunctionwiththeaccompanyingnotes.
16 MElBOuRNE&OlyMPICPARkSTRuST
CASHFlOWSTATEMENTFORTHEFINANCIAlyEARENDED30JuNE2012
NOTE 2012 $’000
2011 $’000
CASH FLOWS FROM OPERATING ACTIVITIES
RECEIPTSReceiptsfromcustomers 100,346 104,254Customerreceiptsonbehalfofsuppliers (1d) 130,126 152,793Interestreceived 1,501 643OtherReceipts 1,703 3,068TOTAL RECEIPTS 233,676 260,758
PAYMENTSPaymentstosuppliersandemployees (57,757) (84,417)Paymentstosuppliersonbehalfofcustomers (1d) (130,126) (152,794)GoodsandServicesTaxpaidtotheATO(i) (3,440) (3,221)TOTAL PAYMENTS (191,323) (240,432)
NET CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES (17b) 42,353 20,326
CASH FLOWS FROM INVESTING ACTIVITIESPaymentsfornon-financialassets (110,176) (64,133)
NET CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES (110,176) (64,133)
CASH FLOWS FROM FINANCING ACTIVITIESReceiptsfromGovernment(capital) 91,300 37,600Borrowingcostspaid - (107)
NET CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES 91,300 37,493
Netincrease/(decrease)incashandcashequivalents 23,477 (6,314)
Cashandcashequivalentsatthebeginningofthefinancialyear 38,717 45,031
CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR (17a) 62,194 38,717
Theabovecashflowstatementshouldbereadinconjunctionwiththeaccompanyingnotes.(i)GoodsandServicesTaxpaidto/receivedfromtheATOispresentedonanetbasis
ANNuAlREPORT2012 17
1. SuMMARyOFSIGNIFICANTACCOuNTINGPOlICIES
(a) Statement of Compliance
Thisgeneral-purposefinancialreporthasbeenpreparedonanaccrualbasisinaccordancewiththeFinancial Management Act 1994 (FMA),applicableAustralianAccountingStandards(AAS),whichincludestheAustralianaccountingstandardsissuedbytheAustralian Accounting Standards Board (AASB). Inparticular,theyarepresentedinamannerconsistentwiththerequirementsofAASB1049Whole of Government and General Government Sector Financial Reporting.
Accountingpoliciesareselectedandappliedinamannerwhichensuresthattheresultingfinancialinformationsatisfiestheconceptsofrelevanceandreliability,therebyensuringthatthesubstanceoftheunderlyingtransactionsorothereventsisreported.
Togainabetterunderstandingoftheterminologyusedinthisreport,aglossaryoftermsandstyleconventionscanbefoundinNote23.
(b) Basis of accounting preparation and measurement
Theaccrualbasisofaccountinghasbeenappliedinthepreparationofthesefinancialstatementswherebyassets,liabilities,equity,incomeandexpensesarerecognisedinthereportingperiodtowhichtheyrelate,regardlessofwhencashisreceivedorpaid.
IntheapplicationofAASs,managementisrequiredtomakejudgements,estimatesandassumptionsaboutcarryingvaluesofassetsandliabilitiesthatarenotreadilyapparentfromothersources.Theestimatesandassociatedassumptionsarebasedonhistoricalexperienceandvariousotherfactorsthatarebelievedtobereasonableunderthecircumstance,theresultsofwhichformthebasisofmakingthejudgments.Actualresultsmaydifferfromtheseestimates.
Theestimatesandunderlyingassumptionsarereviewedonanongoingbasis.Revisionstoaccountingestimatesarerecognisedintheperiodinwhichtheestimateisrevisediftherevisionaffectsonlythatperiodorintheperiodoftherevision,andfutureperiodsiftherevisionaffectsbothcurrentandfutureperiods.JudgementsandassumptionsmadebymanagementintheapplicationofAASsthathavesignificanteffectsonthefinancialstatementsandestimatesrelateto:
· thefairvalueofland,buildings,infrastructure,plantandequipment,(refertoNote1(i));
· superannuationexpense(refertoNote1(h));and· actuarialassumptionsforemployeebenefitprovisionsbased
onlikelytenureofexistingstaff,patternsofleaveclaims,futuresalarymovementsandfuturediscountrates(refertoNote1(j)).
ThesefinancialstatementsarepresentedinAustraliandollars,thefunctionalandpresentationcurrencyoftheTrust.
Accountingpoliciesareselectedandappliedinamannerwhichensuresthattheresultingfinancialinformationsatisfiestheconceptsofrelevanceandreliability,therebyensuringthatthesubstanceoftheunderlyingtransactionsorothereventsisreported.
Theaccountingpoliciessetoutbelowhavebeenappliedinpreparingthefinancialstatementsfortheyearended30June2012andthecomparativeinformationpresentedfortheyearended30June2011.
(c) Reporting Entity
ThefinancialstatementscoverMelbourneandOlympicParksTrust(theTrust)asanindividualreportingentity.TheTrustisagovernmentagencyoftheStateofvictoria,establishedpursuanttotheprovisionsoftheMelbourne and Olympic Parks Act 1985.Itsprincipaladdressis:
MelbourneandOlympicParksTrustBatmanAvenueMelbournevIC3001
(d) Scope and presentations of financial statements
Comprehensive operating statement
Incomeandexpensesinthecomprehensiveoperatingstatementareclassifiedaccordingtowhetherornottheyarisefrom‘transactions’or‘othereconomicflows’.ThisclassificationisconsistentwiththewholeofgovernmentreportingformatandisallowedunderAASB101Presentation of financial statements.
‘Transactions’and‘othereconomicflows’aredefinedbytheAustralian system of government finance statistics: concepts, sources and methods2005andAmendmentstoAustralianSystemofGovernmentFinanceStatistics,2005Cat.No.5514.0publishedbytheAustralianBureauofStatistics.
‘Transactions’arethoseeconomicflowsthatareconsideredtoariseasaresultofpolicydecisions,usuallyinteractionsbetweentwoentitiesbymutualagreement.Transactionsalsoincludeflowswithinanentity,suchasdepreciationwheretheownerissimultaneouslyactingastheownerofthedepreciatingassetandastheconsumeroftheserviceprovidedbytheasset.TaxationisregardedasmutuallyagreedinteractionsbetweentheGovernmentandtaxpayers.Transactionscanbeinkind(e.g.assetsprovided/givenfreeofchargeorfornominalconsideration)orwherethefinalconsiderationiscash.
‘Othereconomicflows’arechangesarisingfrommarketre-measurements.Theyincludegainsandlossesfromdisposals,revaluationsandimpairmentsofnon-currentphysicalandintangibleassets;actuarialgainsandlossesarisingfromdefinedbenefitsuperannuationplans;fairvaluechangesoffinancialinstrumentsandagriculturalassets;anddepletionofnaturalassets(non-produced)fromtheiruseorremoval.
ThenetresultisequivalenttoprofitorlossderivedinaccordancewithAASs.
Balance sheet
Assetsandliabilitiesarepresentedinliquidityorderwithassetsaggregatedinto,financialassetsandnon-financialassets.
Currentandnon-currentassetsandliabilities(thoseexpectedtoberecoveredorsettledbeyond12months)aredisclosedinthenotes,whererelevant.
Cash flow statement
Cashflowsareclassifiedaccordingtowhetherornottheyarisefromoperatingactivities,investingactivities,orfinancingactivities.ThisclassificationisconsistentwithrequirementsunderAASB107Statement of cash flows.
Forcashflowstatementpresentationpurposes,cashandcashequivalentsincludebankoverdrafts,whichareincludedascurrentborrowingsonthebalancesheet.
NOTESTOFINANCIAlSTATEMENTSFORTHEFINANCIAlyEARENDED30JuNE2012
18 MElBOuRNE&OlyMPICPARkSTRuST
CustomerreceiptsonbehalfofsuppliersandPaymentstosuppliersonbehalfofcustomersrepresentscashreceivedforeventticketsaleswhichisheldinTrustfromthetimeticketsarepurchasedandpaidouttothehireraftertheeventhastakenplace.
Statement of changes in equity
Thestatementofchangesinequitypresentsreconciliationsofnon-ownerandownerchangesinequityfromopeningbalanceatthebeginningofthereportingperiodtotheclosingbalanceattheendofthereportingperiod.Italsoshowsseparatelychangesduetoamountsrecognisedinthe‘Comprehensiveresult’andamountsrecognisedin‘Othereconomicflows–othermovementsinequity’relatedto‘Transactionswithownerinitscapacityasowner’.
(e) Events after reporting date
Assets,liabilities,incomeorexpensesarisefrompasttransactionsorotherpastevents.WherethetransactionsresultfromanagreementbetweentheTrustandotherparties,thetransactionsareonlyrecognisedwhentheagreementisirrevocableatorbeforetheendofthereportingperiod.
Adjustmentsaremadetoamountsrecognisedinthefinancialstatementsforeventswhichoccurafterthereportingperiodandbeforethedatethefinancialstatementsareauthorisedforissue,wherethoseeventsprovideinformationaboutconditionswhichexistedinthereportingperiod.Notedisclosureismadeabouteventsbetweentheendofthereportingperiodandthedatethefinancialstatementsareauthorisedforissuewheretheeventsrelatetoconditionswhicharoseaftertheendofthereportingperiodandwhichmayhaveamaterialimpactontheresultsofsubsequentreportingperiods.
(f) Goods and services tax (GST)
Income,expensesandassetsarerecognisednetoftheamountofassociatedGST,unlesstheGSTincurredisnotrecoverablefromthetaxationauthority.Inthiscaseitisrecognisedaspartofthecostofacquisitionoftheassetoraspartoftheexpense.
ReceivablesandpayablesarestatedinclusiveoftheamountofGSTreceivableorpayable.ThenetamountofGSTrecoverablefrom,orpayableto,thetaxationauthorityisincludedwithotherreceivablesorpayablesinthebalancesheet.
Cashflowsarepresentedonagrossbasis.TheGSTcomponentsofcashflowsarisingfrominvestingorfinancingactivitieswhicharerecoverablefrom,orpayabletothetaxationauthority,arepresentedasoperatingcashflows.
(g) Revenue
Revenueismeasuredatthefairvalueoftheconsiderationreceivedorreceivable.Amountsdisclosedasrevenuearenetofreturns,tradeallowancesanddutiesandtaxes.
Revenue from sale of goods and services
RevenuefromthesaleofgoodsandservicesisrecognisedupondeliveryofthegoodsandservicestothecustomerandwhentheTrustgainscontroloftheunderlyingassets.
Grants
GrantsfromthirdpartiesarerecognisedasincomeinthereportingperiodinwhichtheTrustgainscontroloverthecontribution.
Interest revenue
Interestincomeisrecognisedonatimeproportionatebasisthattakesintoaccounttheeffectiveyieldonthefinancialasset.
Other income
SinkingfundincomeisrecognisedasincomeinthereportingperiodinwhichtheTrustgainscontrolovertheunderlyingassets.
Anygainorlossondisposalofnon-currentassetsisrecognisedatthedatecontroloftheassetispassedtothebuyerandisdeterminedafterdeductingfromtheproceedsthecarryingvalueoftheassetatthattime.
(h) Expenses
Paymentstothirdpartiesarerecognisedasanexpenseinthereportingperiodinwhichtheyarepaidorarepayable.
Employee benefits
RefertothesectioninNote1(j)regardingemployeebenefits.
Theseexpensesincludeallcostsrelatedtoemployment(otherthansuperannuationwhichisaccountedforseparately)includingwagesandsalaries,fringebenefitstax,leaveentitlements,redundancypaymentsandWorkCoverpremiums.
DetailsofthefundswhichtheTrustmadesuperannuationcontributionstoduringtheyeararedisclosedinNote21.
Depreciation
IncompliancewithAustralianAccountingStandardAASB116,depreciationhasbeenchargedonallfixedassetsandcapitalworksdevelopments,withtheexceptionofland.Theprovisionsfordepreciationaremadeusingthestraight-linemethod,atratesappropriatetotheestimatedusefullifetotheTrustofeachindividualasset.Estimatesoftheremainingusefullivesforallassetsarereviewedannuallyandrangefromgreaterthanzerouptoseventyyears.Thetrust’spolicyistocapitaliseassetsvaluedover$1,000,whilstassetsoflessthan$1,000invalueareexpensedimmediately.
Thefollowingaretypicalestimatedusefullivesfordifferentassetclassesforbothcurrentandprioryears:
Asset Class Useful Life
Buildings 15-60years
PropertyPlant&Equipment 5years
Motorvehicles 5years
IntangibleAssets 5yearsImpairment of assetsAlloftheTrust’sassetsareassessedannuallyforindicationsofimpairment,exceptforinventories.
Ifthereisanindicationofimpairment,theassetsconcernedaretestedastowhethertheircarryingvalueexceedstheirpossiblerecoverableamount.Whereanasset’scarryingvalueexceedsitsrecoverableamount,thedifferenceiswrittenoffbyachargetothecomprehensiveoperatingstatementexcepttotheextentthatthewrite-downcanbedebitedtoanassetrevaluationreserveamountapplicabletothatclassofasset.
NOTESTOFINANCIAlSTATEMENTSFORTHEFINANCIAlyEARENDED30JuNE2012
ANNuAlREPORT2012 19
NOTESTOFINANCIAlSTATEMENTSFORTHEFINANCIAlyEARENDED30JuNE2012
Itisdeemedthat,intheeventofthelossofanasset,thefutureeconomicbenefitsarisingfromtheuseoftheassetwillbereplacedunlessaspecificdecisiontothecontraryhasbeenmade.Therecoverableamountofmostmajorassetsismeasuredatthehigherofthedepreciatedreplacementcostandfairvaluelesscoststosell.Thedepreciatedreplacementcostisthecurrentreplacementcostofanassetless,whereapplicable,accumulateddepreciationcalculatedonthebasisofsuchcosttoreflectthealreadyconsumedorexpiredfutureeconomicbenefitsoftheasset.
Supplies and services
Suppliesandservicesarerecognisedasanexpenseinthereportingperiodinwhichtheyareincurred.
(i) Assets
Allnon-currentassetscontrolledbythetrustarereportedinthebalancesheet.
Cash and cash equivalents
Cashanddeposits,includingcashequivalents,comprisecashonhandandcashatbank,depositsatcallandthosehighlyliquidinvestmentswithanoriginalmaturityofthreemonthsorless,whichareheldforthepurposeofmeetingshorttermcashcommitmentsratherthanforinvestmentpurposes,andwhicharereadilyconvertibletoknownamountsofcashandaresubjecttoaninsignificantriskofchangesinvalue.
Forcashflowstatementpresentationpurposes,cashandcashequivalentsincludesbankoverdrafts,whichareincludedasborrowingsonthebalancesheet.
Receivables
Receivablesconsistof:
· statutoryreceivables,whichincludepredominantlyamountsowingfromthevictorianGovernmentandGSTinputtaxcreditsrecoverable;and
· contractualreceivables,whichincludemainlydebtorsinrelationtogoodsandservices,loanstothirdparties,accruedinvestmentincomeandfinanceleasereceivables(refertoNote12Leases)
Receivablesthatarecontractualareclassifiedasfinancialinstruments.Statutoryreceivablesarenotclassifiedasfinancialinstruments.
Receivablesarerecognisedinitiallyatfairvalueandsubsequentlymeasuredatamortisedcost,usingtheeffectiveinterestmethod,lessanallowanceforimpairment.
Aprovisionfordoubtfulreceivablesismadewhenthereisobjectiveevidencethatthedebtswillnotbecollected.Baddebtsarewrittenoffwhenidentified.
Inventories
Inventoriesaremeasuredatthelowerofcostandnetrealisablevalue.
Property, plant and equipment
land,buildingsandplantandequipmentarerecognisedinitiallyatcostandsubsequentlymeasuredatfairvaluelessaccumulateddepreciation.
Revaluations of Non-Current Physical Assets
Non-currentphysicalassetsmeasuredatfairvaluearerevalued
inaccordancewithFRD103DissuedbytheMinisterforFinance.Afullrevaluationoccursatleasteveryfiveyears,basedontheasset’sgovernmentpurposeclassification,butmayoccurmorefrequentlyiffairvalueassessmentsindicatematerialchangesinvalues.IndependentvaluersareusedtoconductthesescheduledrevaluationsandanyinterimrevaluationsaredeterminedinaccordancewiththerequirementsoftheFRDs.
Revaluationincreasesordecreasesarisefromdifferencesbetweenanasset’scarryingvalueandfairvalue.
Revaluationincreasesarecrediteddirectlytoequityintherevaluationreserve,exceptthat,totheextentthatanincrementreversesarevaluationdecrementinrespectofthatclassofassetpreviouslyrecognisedasanexpenseinthenetresult,theincrementisrecognisedasincomeindeterminingthenetresult.
Revaluationdecreasesarerecognisedimmediatelyasexpensesinthenetresult,exceptthat,totheextentthatacreditbalanceexistsintherevaluationreserveinrespectofthesameclassofassets,theyaredebitedtotherevaluationreserve.
Revaluationincreasesandrevaluationdecreasesrelatingtoindividualassetswithinaclassofproperty,plantandequipmentareoffsetagainstoneanotherwithinthatclassbutarenotoffsetinrespectofassetsindifferentclasses.
(j) Liabilities
Payables
PayablesarerecognisedwhentheTrustbecomesobligedtomakefuturepaymentsresultingfromthepurchaseofgoodsandservices.
Interest bearing liabilities
Interestbearingliabilitiesareinitiallymeasuredatfairvalue,beingthecostoftheinterestbearingliabilities,netoftransactioncosts.
Subsequenttoinitialrecognition,interestbearingliabilitiesaremeasuredatamortisedcostwithanydifferencebetweentheinitialrecognisedamountandtheredemptionvaluebeingrecognisedinprofitandlossovertheperiodoftheinterestbearingliabilityusingtheeffectiveinterestratemethod.
Provisions
ProvisionsarerecognisedwhentheTrusthasapresentobligation,thefuturesacrificeofeconomicbenefitsisprobableandtheamountoftheprovisioncanbemeasuredreliably.
Theamountrecognisedasaprovisionisthebestestimateoftheconsiderationrequiredtosettlethepresentobligationatreportingdate,takingintoaccounttherisksanduncertaintiessurroundingtheobligation.Whereaprovisionismeasuredusingthecashflowsestimatedtosettlethepresentobligation,itscarryingamountisthepresentvalueofthosecashflows,usingadiscountratethatreflectsthetimevalueofmoneyandrisksspecifictotheprovision.
Employee Benefits
(i) Wages, Salaries and Annual Leave
liabilitiesforwagesandsalaries,includingnon-monetarybenefitsandannualleaveexpectedtobesettledwithin12monthsofthereportingdatearerecognisedintheprovisionforemployeebenefitsinrespectofemployeeservicesuptothereportingdate,classifiedascurrentliabilitiesandmeasuredattheirnominalvalues.
20 MElBOuRNE&OlyMPICPARkSTRuST
Thoseliabilitiesthatarenotexpectedtobesettledwithin12monthsarerecognisedintheprovisionforemployeebenefitsascurrentliabilities,measuredatpresentvalueoftheamountsexpectedtobepaidwhentheliabilitiesaresettledusingtheremunerationrateexpectedtoapplyatthetimeofsettlement.
(ii) Long Service Leave
Aliabilityforlongserviceleaveisrecognised,andismeasuredasthepresentvalueofexpectedfuturepaymentstobemadeinrespectofservicesprovidedbyemployeesuptothereportingdate.Considerationisgiventoexpectedfuturewageandsalarylevels,experienceofemployeedeparturesandperiodofservice.Allunconditionalvestedlongserviceleaverepresenting7yearsorgreaterofcontinuousserviceisdisclosedinaccordancewithAASB101,asacurrentliability.Expectedfuturepaymentsaremeasuredatnominalvaluewhereacomponentofthiscurrentisexpectedtofallduewithin12monthsaftertheendoftheperiodanddiscountedwheretheTrustdoesnotexpecttosettleacomponentofthisliabilitywithin12months.DiscountratesarebasedoninterestratesonnationalGovernmentguaranteedsecuritieswithtermstomaturitythatmatch,ascloselyaspossible,theestimatedfuturecashoutflows.
liabilityforlongserviceleave(lSl)isrecognisedintheprovisionforemployeebenefits.
•CurrentliabilityunconditionallSl(representingsevenormoreyearsofcontinuousserviceforstaff)isdisclosedasacurrentliabilityevenwheretheTrustdoesnotexpecttosettletheliabilitywithin12monthsbecauseitwillnothavetheunconditionalrighttodeferthesettlementoftheentitlementshouldanemployeetakeleavewithin12months.
ThecomponentsofthiscurrentlSlliabilityaremeasuredat:
–Presentvalue–componentthattheTrustdoesnotexpecttosettlewithin12months;and
–Nominalvalue–componentthattheTrustexpectstosettlewithin12months.
•Non-currentliability–conditionallSl(representinglessthansevenyearsofcontinuousserviceforstaff)isdisclosedasanon-currentliability.Thereisanunconditionalrighttodeferthesettlementoftheentitlementuntiltheemployeehascompletedtherequisiteyearsofservice.
Thisnon-currentlSlliabilityismeasuredatpresentvalue.
(iii) Termination benefits
Terminationbenefitsarepayablewhenemploymentisterminatedbeforethenormalretirementdate,orwhenanemployeeacceptsvoluntaryredundancyinexchangeforthesebenefits.TheTrustrecognisesterminationbenefitswhenitisdemonstrablycommittedtoeitherterminatingtheemploymentofcurrentemployeesaccordingtoadetailedformalplanwithoutpossibilityofwithdrawalorprovidingterminationbenefitsasaresultofanoffermadetoencouragevoluntaryredundancy.Benefitsfallingduemorethan12monthsafterbalancesheetdatearediscountedtopresentvalue.
Employee Benefit On-costs
Employeebenefitson-costs(payrolltax,workerscompensation,superannuation,annualleaveandlSlaccruedwhileonlSltakeninservice)arerecognisedandincludedwhendeterminingemployeebenefitliabilities.
(k) Income taxes
TheAustralianTaxationOfficehasdeemedtheTrusttobea“PublicAuthority”withinthetermsofSection50-25oftheIncomeTaxAssessmentAct1997andthereforeanyincomeshallbeexemptfromincometax.TheTrustisnotsubjecttotheStateEquivalentIncomeTaxSystem.Noprovisionsforincometaxespayablehavebeenraised.
(l) Contingent assets and contingent liabilities
Contingentassetsandcontingentliabilitiesarenotrecognisedinthebalancesheet,butaredisclosedbywayofanoteand,ifquantifiable,aremeasuredatnominalvalue.
(m) Cash flow statement
Forthepurposesofthecashflowstatement,cashcomprisespettycash,cashfloats,depositsinbankaccounts,cashheldintrust(ticketsalesforfutureevents)andshort-termdeposits.
(n) Rounding of Amounts
Amountsinthefinancialreporthavebeenroundedtothenearestthousanddollars,orinothercases,tothenearestdollar.
(o) Contributed Capital
TransfersfromtheDepartmentforPlanningCommunity&Development(DPCD)thatareinthenatureofcontributionsordistributionsofcapitalhavealsobeendesignatedascontributedcapital.Othertransfersthatareinthenatureofcontributionsordistributionshavealsobeendesignatedascontributionsbyowners.
(p) Intangible Assets
Intangibleassetsrepresentidentifiablenon-monetaryassetswithoutphysicalsubstance.Intangibleassetsarerecognisedatcost.CostincurredsubsequenttoinitialacquisitionarecapitalisedwhenitisexpectedthatadditionalfutureeconomicbenefitswillflowtotheTrust.
(q) Leased Assets
leasesareclassifiedasfinanceleaseswheneverthetermsoftheleasetransfersubstantiallyalltherisksandrewardstothelessee.Allotherleasesareclassifiedasoperatingleases.AssetsheldunderfinanceleasesarerecognisedasassetsoftheTrustattheirfairvalueor,iflower,atthepresentvalueoftheminimumleasepayments,eachdeterminedattheinceptionofthelease.Thecorrespondingliabilitytothelessorisincludedinthebalancesheetasafinanceleaseobligation.
(r) Australian Accounting Standards issued that are not yet effective
CertainnewAASshavebeenpublishedthatarenotmandatoryforthe30June2012reportingperiod.DTFassessestheimpactofthesenewstandardsandadvisestheTrustoftheirapplicabilityandearlyadoptionwhereapplicable.
Asat30June2012,thefollowingstandardsandinterpretationshadbeenissuedbutwerenotmandatoryforthefinancialyearending
30June2012.TheTrusthasnotearlyadoptedthesestandards.
NOTESTOFINANCIAlSTATEMENTSFORTHEFINANCIAlyEARENDED30JuNE2012
ANNuAlREPORT2012 21
NOTESTOFINANCIAlSTATEMENTSFORTHEFINANCIAlyEARENDED30JuNE2012
Standard/Interpretation Summary Applicable for annual reporting periods beginning on
Impact on public sector entity financial statements
AASB9Financial instruments ThisstandardsimplifiesrequirementsfortheclassificationandmeasurementoffinancialassetsresultingfromPhase1oftheIASB’sprojecttoreplaceIAS39Financial Instruments: Recognition and Measurement(AASB139Financial Instruments: Recognition and Measurement).
Beginning
1Jan2013
Detailofimpactisstillbeingassessed.
AASB13Fair Value Measurement
ThisStandardoutlinestherequirementsformeasuringthefairvalueofassetsandliabilitiesandreplacestheexistingfairvaluedefinitionandguidanceinotherAASs.AASB13includesa‘fairvaluehierarchy’whichranksthevaluationtechniqueinputsintothreelevelsusingunadjustedquotedpricesinactivemarketsforidenticalassetsorliabilities;otherobservableinputs;andunobservableinputs.
1Jan2013 Disclosureforfairvaluemeasurementsusingunobservableinputsarerelativelyonerouscomparedtodisclosureforfairvaluemeasurementsusingobservableinputs.Consequently,theStandardmayincreasethedisclosuresforpublicsectorentitiesthathaveassetsmeasuredusingdepreciatedreplacementcost.
AASB119Employee Benefits InthisrevisedStandardfordefinedbenefitsuperannuationplans,thereisachangetothemethodologyinthecalculationofsuperannuationexpenses,inparticularthereisnowachangeinthesplitbetweensuperannuationinterestexpense(classifiedastransactions)andactuarialgainsandlosses(classifiedas‘Othereconomicflows–othermovementsinequity’)reportedonthecomprehensiveoperatingstatement.
1Jan2013 Not-for-profitentitiesarenotpermittedtoapplythisStandardpriortothemandatoryapplicationdate.
Whilethetotalsuperannuationexpenseisunchanged,therevisedmethodologyisexpectedtohaveanegativeimpactonthenetresultfromtransactionsofthegeneralgovernmentsectorandforthosefewvictorianpublicsectorentitiesthatreportsuperannuationdefinedbenefitplans.
AASB1053Application of Tiers of Australian Accounting Standards
ThisStandardestablishesadifferentialfinancialreportingframeworkconsistingoftwotiersofreportingrequirementsforpreparinggeneralpurposefinancialstatements.
Beginning1July2013
ThevictorianGovernmentiscurrentlyconsideringtheimpactsofReducedDisclosureRequirements(RDRs)forcertainpublicsectorentitiesandhasnotdecidedifRDRswillbeimplementedtothevictorianPublicSector.
2012-1Amendments to Australian Accounting Standards - Fair Value Measurement - Reduced Disclosure Requirements
[AASB 3, AASB 7, AASB 13, AASB 140 & AASB 141]
ThisamendingStandardprescribesthereduceddisclosurerequirementsinanumberofAustralianAccountingStandardsasaconsequenceoftheissuanceofAASB13FairvalueMeasurement.
1July2013 Asthevictorianwholeofgovernmentandthegeneralgovernment(GG)sectoraresubjecttoTier1reportingrequirements(refertoAASB1053 Application of Tiers of Australian Accounting Standards),thereduceddisclosurerequirementsincludedinAASB2012-1willnotaffectthefinancialreportingforvictorianwholeofgovernmentandGGsector.
Thereareanumberofnon-mandatorystandardsat30June2012notlistedwhichhavebeenassessedtohaveminimalornoimpacttotheTrust.
22 MElBOuRNE&OlyMPICPARkSTRuST
NOTESTOFINANCIAlSTATEMENTSFORTHEFINANCIAlyEARENDED30JuNE2012
2. INCOME FROM TRANSACTIONS
2012$’000
2011$’000
(a) Sales of goods and services
Saleofgoods 38,174 36,101Renderingofservices 58,388 58,045Royalties 3,773 3,600
100,335 97,746
(b) InterestInterestonbankdeposits 1,501 643
1,501 643
(c) GrantsOtherpublicbodies 820 2,143
820 2,143
(d) Other incomeDelawareNorthSinkingFund 429 435TennisAustraliaSpecialPurposeAccount 540 567
969 1,002
ANNuAlREPORT2012 23
NOTESTOFINANCIAlSTATEMENTSFORTHEFINANCIAlyEARENDED30JuNE2012
3. EXPENSES FROM TRANSACTIONS
2012$’000
2011$’000
(a) Cost of goods/sold distributedvenueHire 2,553 1,893Catering 32,414 28,220Other 183 296
35,150 30,409
(b) Purchase of services
Purchaseofservices 15,351 14,241
15,351 14,241
(c) Employee expenses
Definedcontributionsuperannuationexpense 1,293 1,317Terminationbenefits 17 38Salaries,wagesandlongserviceleave 15,995 15,858
17,305 17,213
(d) Interest expenseInterestongovernmentloans - 107
- 107
(e) DepreciationDepreciationofnon-currentassets 25,175 26,514
25,175 26,514
(f) Other operating expensesMaintenance 4,104 4,355Operatingleaseexpenses 264 251Purchaseofsuppliesandconsumables 867 935Baddebtsfromtransactions - 5Other 218 389
5,453 5,935
24 MElBOuRNE&OlyMPICPARkSTRuST
NOTESTOFINANCIAlSTATEMENTSFORTHEFINANCIAlyEARENDED30JuNE2012
4. OTHER ECONOMIC FLOWS INCLUDED IN NET RESULT
2012$’000
2011$’000
(a) Net gain/(loss) on non-financial assets
Netgain/(loss)ondisposalofpropertyplantandequipment (86) (77)
(includingintangibleassets)
(86) (77)
(b) Net gain/(loss) arising from revaluation of long service liability
Netgain/(loss)arisingfromrevaluationoflongserviceliability 240 (14)
240 (14)
5. CASH AND CASH EQUIVALENTS
2012$’000
2011$’000
Cashfloatsheld 42 43Cashonhand 36,412 18,289Termdeposits 2,000 2,000Bankdeposits(restricteduse) 1,565 1,453Cashheldintrust(notavailableforuse) 22,175 16,932
62,194 38,717
6. RECEIVABLES
2012$’000
2011$’000
CurrentContractualOtherreceivables(ii) 1,872 2,789
1,872 2,789StatutoryAmountowingfromvictorianGovernment(i) 364 276TaxesRecoverable 1,020 -Provisionfordoubtfuldebts(iii) (5) (5)
1,379 271
Total current receivables 3,251 3,060
(i) The amounts receivable from the Victorian Government represent monies owing from Victorian Government Departments/Agencies relating to contributions towards capital projects, tenancies and redevelopment costs.
(ii) Receivables are carried at nominal amounts due. The average credit period on settling of monies owed is 7 days. No interest is charged on other receivables for outstanding balances.
(iii) A provision has been made for amounts where collection is considered no longer probable, determined by reference to issues relating to individual accounts.
ANNuAlREPORT2012 25
NOTESTOFINANCIAlSTATEMENTSFORTHEFINANCIAlyEARENDED30JuNE2012
(a) Movement in the allowance for doubtful debts
2012$’000
2011$’000
Balanceatbeginningoffinancialyear 5 -Increase/(decrease)inallowancerecognisedinprofitorloss - 5Balance at end of financial year 5 5
(b) Ageing analysis of receivables PleaserefertoTable16.2inNote16forageinganalysisofreceivables.
(c) Nature and extent of risk arising from receivablesPleaserefertoNote16forthenatureandextentofcreditriskarisingfromreceivables.
7. PROPERTY, PLANT, EQUIPMENT AND INTANGIBLE ASSETS.
2012$’000
2011$’000
landatfairvalue2012(i) 387,600 440,525
387,600 440,525
Buildingsandimprovements(lastindependentvaluation2012(ii) 458,158 423,637
Buildingsatcost 58 292,619
lessaccumulateddepreciation (4) (248,207)
Writtendownvalue 458,212 468,049
Plantandequipment(lastindependentvaluation2012(ii) 93,074 102,285
Plantandequipmentatcost 15,821 49,870
lessaccumulateddepreciation (6,952) (67,812)
Writtendownvalue 101,943 84,343
Workinprogress 150,428 48,940
150,428 48,940
Totalproperty,plantandequipment 1,105,139 1,357,876
lessaccumulateddepreciation (6,956) (316,019)
Writtendownvalue 1,098,183 1,041,857
IntangibleAssets 898 697
lessaccumulatedamortisation (594) (501)
Writtendownvalue 304 196
Writtendownvalueproperty,plant,equipmentandintangibleassets 1,098,488 1,042,053
26 MElBOuRNE&OlyMPICPARkSTRuST
NOTESTOFINANCIAlSTATEMENTSFORTHEFINANCIAlyEARENDED30JuNE2012
RECONCILIATIONSClassificationby‘Publicsafetyandenvironment’purposegroup–Movementsincarryingamounts
Land Buildings Plant &Equipment
Intangibles Work inProgress
Total
$’000 $’000 $’000 $’000 $’000 $’000
Year ended 30 June 2012
Carryingamountatstartofyear 440,525 468,049 84,343 196 48,940 1,042,053
Additions - - - - 109,680 109,680
Transfers - 756 7,235 202 (8,192) -
Disposals - 496 - - - 496
Revaluations/Impairments (52,925) 7,650 16,709 - - (28,565)
DepreciationExpense - (18,739) (6,343) - - (25,082)
AmortisationExpense - - - (93) - (93)Carryingamountatendofyear 387,600 458,212 101,943 304 150,428 1,098,488
Land Buildings Plant &Equipment
Intangibles Work inProgress
Total
$’000 $’000 $’000 $’000 $’000
Year ended 30 June 2011
Carryingamountatstartofyear 440,525 483,149 72,848 144 7,768 1,004,434
Additions - - - - 64,315 64,315
Transfers - 5,527 17,516 100 (23,143) -
Disposals - - (182) - - (182)
Revaluations/Impairments - - - - - -
DepreciationExpense - (20,628) (5,838) - - (26,466)
AmortisationExpense - - - (48) - (48)Carryingamountatendofyear 440,525 468,049 84,343 196 48,940 1,042,053
(i) Land at fair value June 30 2012landwaslastindependentlyrevaluedatJune302012asrequiredbytheFinancialManagementAct1994andwasconductedbythevaluer-Generalvictoria.Duetorestrictionsontheusageoftheland,anotionaldiscountof40%knownas‘CommunityServiceObligation’hasbeenappliedtotheunrestrictedlandvalue.
(ii) BuildingsandImprovementsandPlantandEquipmentatrevaluation2012Buildings,Plant&EquipmentwaslastindependentlyrevaluedatJune302012asrequiredbytheFinancialManagementAct1994andwasconductedbyNapier&Blakeleyonbehalfofthevaluer-Generalvictoriawhohaveprovidedreplacementcostanddepreciatedreplacementcostontheinspectedproperties(RodlaverArenaandsurroundinggrounds,HisenseArena,AAMIParkandWestpacCentre).WorksinProgressrelatingtotheredevelopmenthavenotbeenincludedintherevaluation.
(iii)CarryingamountatendofyearWorkinProgressatJune302012includes$140.5mrelatingtoStage1oftheMelbourneParkRedevelopment(EasternPlazaandMargaretCourtArenaredevelopment),whichisdueforcompletionin2015.
(iv) Accumulated DepreciationThereportingrequirementsofFRD103D (4.18) Non-Current Physical Assets requiresaccumulateddepreciationonrevaluedassetstobeeliminatedagainstthegrosscarryingamountoftheasset.Thereforetheaccumulateddepreciationinthecurrentyearrelatestoassetsatcostonly.TheaccumulateddepreciationfortheprioryearincludesrevaluedassetswhoseaccumulateddepreciationhasbeeneliminatedasrequiredbyFRD103D (4.18).
ANNuAlREPORT2012 27
NOTESTOFINANCIAlSTATEMENTSFORTHEFINANCIAlyEARENDED30JuNE2012
8. OTHER ASSETS
2012$’000
2011$’000
CurrentPrepayments 191 392
191 392
9. PAYABLES
2012$’000
2011$’000
CurrentContractual
Tradecreditors(i) 692 946Otherpayables 2,706 513Accruedexpenses 9,843 4,392
13,241 5,851StatutoryTaxespayable 53 315
Total current payables 13,294 6,166
(i) The average credit period is 30 days. No interest is charged on other payables for the first 30 days from the date of invoice. Payables are generally paid within the payment period thereby avoiding any interest charges that may be incurred on late payments.
(a) Maturity analysis of payablesPleaserefertoTable16.3inNote16fortheaginganalysisofpayables.
(b) Nature and extent of risk arising from payables PleaserefertoNote16forthenatureandextentofrisksarisingfrompayables.
10. PROVISIONS
2012$’000
2011$’000
CurrentEmployeebenefits-unconditionalandexpectedtobesettledwithin12months(i) 1,497 1,443Employeebenefits-unconditionalandexpectedtobesettledafter12months(ii) 660 590
2,157 2,033
Non-currentEmployeebenefits-longserviceleave(ii) 462 365
Total Provisions 2,619 2,398
(i) The amounts disclosed are nominal amounts.(ii) The amounts disclosed are discounted to present values.
28 MElBOuRNE&OlyMPICPARkSTRuST
11. OTHER LIABILITIES
2012$’000
2011$’000
Incomereceivedinadvance 3,229 3,999Ticketsalesforfutureeventsheldintrust 22,175 16,932
25,404 20,931
12. LEASES
Disclosure of operating leases
Operating Lease Payables
Leasing arrangementsOperatingleasepayablesrelatetoplantandofficeequipmentwithleasetermsbetween1and7years.
Non-cancellable operating leasesTotalleaseexpenditurecontractedforatbalancedatebutnotprovidedforintheaccounts:
2012$’000
2011$’000
Payablenolaterthanoneyear 180 207laterthanoneyearandnotlaterthanfiveyears 355 499laterthanfiveyears - -
535 706
Operating Lease Receivables
Leasing arrangementsOperatingleasereceivablesrelateto12tenancies(13in2010-11)withintheTrust’sprecinctwithleasetermsbetween2and24years.
2012$’000
2011$’000
Receivablenolaterthanoneyear 4,005 3,836laterthanoneyearandnotlaterthanfiveyears 14,975 14,317laterthanfiveyears 47,119 24,735
66,099 42,888
13. COMMITMENTS FOR EXPENDITUREThefollowingcommitmentshavenotbeenrecognisedasliabilitiesinthefinancialstatements.AllamountsshowninthecommitmentsnotearenominalamountsinclusiveofGST.
(a) Capital expenditure commitmentsAtthedateofthisreport,theTrusthad$0.950millionincommitmentsforcapitalworks(2011:$0.950m).
(b) Lease commitmentsNon-cancellableoperatingleasecommitmentsaredisclosedinNote12tothefinancialstatements.
14. CONTINGENT LIABILITIESTheTrusthasnocontingentliabilitiesatthedateofthisreport.
NOTESTOFINANCIAlSTATEMENTSFORTHEFINANCIAlyEARENDED30JuNE2012
ANNuAlREPORT2012 29
NOTESTOFINANCIAlSTATEMENTSFORTHEFINANCIAlyEARENDED30JuNE2012
15. CONTINGENT ASSETSTheTrusthasnocontingentassetsatthedateofthisreport.
16. FINANCIAL INSTRUMENTS
(a) Significant accounting policiesDetailsofthesignificantaccountingpoliciesandmethodsadopted,includingthecriteriaforrecognition,thebasisofmeasurement,andthebasisonwhichincomeandexpensesarerecognised,withrespecttoeachclassoffinancialasset,financialliabilityandequityinstrumentaredisclosedinNote1tothefinancialstatements.
(b) Table 16.1: Categorisation of financial instruments
notes Carrying amount2012
$’000
Carrying amount2011
$’000
(i) Financial assets
Cashandcashequivalents 5 62,194 38,717
Receivables(i) 6 1,872 2,789
(ii) Financial liabilities
Payables(i) 9 13,241 5,851
Otherliabilities 11 25,404 20,931
(i) The amount of receivables and payables disclosed exclude statutory amounts (eg: amounts owing from Victorian Government and GST input tax credit recoverable and taxes payable)
(c) Credit risk exposure
CreditriskariseswhenthereisthepossibilityoftheTrust’sdebtorsdefaultingontheircontractualobligationsresultinginfinanciallosstotheTrust.TheTrustmeasurescreditriskonafairvaluebasisandmonitorsriskonaregularbasis.
TheTrustdoesnothaveanysignificantcreditriskexposuretoanysinglecounterpartyoranygroupofcounterpartieshavingsimilarcharacteristics.TheTrusthasadoptedapolicyofonlydealingwithcreditworthycounterpartiesandobtainingsufficientcollateralorcreditenhancementswhereappropriate,asameansofmitigatingtheriskoffinanciallossfromdefaults.Creditriskintradereceivablesismanagedbypaymenttermsofsevendaysandsounddebtcollectionpoliciesandprocedures.
Inaddition,theTrustdoesnotengageinanyhedgingforitsfinancialassets.Thecreditriskonliquidfundsislimitedbecausethecounterpartiesarebankswithhighcredit-ratingsassignedbyinternationalcredit-ratingagencies.
Provisionofimpairmentforfinancialassetsiscalculatedbasedonpastexperience,andcurrentandexpectedchangesinclientcreditratings.
ThecarryingamountoffinancialassetsrecordedintheFinancialReport,netofanyallowancesforlosses,representstheTrust’smaximumexposuretocreditriskwithouttakingaccountofthevalueofanycollateralobtained.
Financial assets that are either past due or impaired CurrentlytheTrustdoesnotholdanycollateralassecuritynorcreditenhancementsrelatingtoanyofitsfinancialassets.Asatthereportingdate,thereisnoeventtoindicatethatanyofthefinancialassetsareimpaired.
Therearenofinancialassetsthathavehadtheirtermsrenegotiatedsoastopreventthemfrombeingpastdueorimpairedandtheyarestatedatthecarryingamountsasindicated.Thefollowingtabledisclosestheageingonlyoffinancialassetsthatarepastduebutnotimpaired:
30 MElBOuRNE&OlyMPICPARkSTRuST
NOTESTOFINANCIAlSTATEMENTSFORTHEFINANCIAlyEARENDED30JuNE2012
Table 16.2: Interest rate exposure and ageing analysis of financial assets
Carryingamount
Interest rate exposure
Not pastdue &
notimpaired
Past due but not impaired
Variableinterestrate
Non-interestbearing
Lessthan 1month
1-3months
3months- 1 year
1-5years
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
30 June 2012
Receivables(i) 1,872 - 1,872 1,635 116 58 62 1
1,872 - 1,872 1,635 116 58 62 1
30 June 2011
Receivables(i) 2,789 - 2,789 1,924 263 364 237 -
2,789 - 2,789 1,924 263 364 237 -
(i) Ageing analysis of financial assets excludes statutory financial assets (eg: amounts owing from Victorian Government and GST input tax credits recoverable)..
(d) Liquidity risk
liquidityriskariseswhentheTrustisunabletomeetitsfinancialobligationsastheyfalldue.TheTrustoperatesundertheGovernmentfairpaymentspolicyofsettlingfinancialobligationswithin30daysandintheeventofadispute,makespaymentswithin30daysfromthedateofresolution.Italsocontinuouslymanagesriskthroughmonitoringfuturecashflowsandmaturitiesplanningtoensureadequateholdingofhighqualityliquidassetsanddealinginhighlyliquidmarkets.
TheTrust’sexposuretoliquidityriskisdeemedinsignificantbasedonpriorperiods’dataandcurrentassessmentofrisk.Cashforunexpectedeventscouldbesourcedfromearlyliquidationofcashheldondepositifrequired.
Maximumexposuretoliquidityriskisthecarryingamountsoffinancialliabilities.
Table 16.3: Interest rate exposure and maturity analysis of financial liabilities
Carryingamount
Interest rate exposure
Nominalamount
Maturity dates (i)
Variableinterestrate
Non-interestbearing
Lessthan 1month
1-3months
3months- 1 year
1-5years
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
30 June 2012
Payables(ii) 13,241 - 13,241 13,241 13,232 3 6 -
Other 25,404 - 25,404 25,404 6,946 4,768 6,446 7,244
38,645 - 38,645 38,645 20,178 4,771 6,452 7,244
30 June 2011
Payables(ii) 5,851 - 5,851 5,851 5,647 102 102 -
Other 20,931 - 20,931 20,931 3,141 2,516 14,000 1,274
26,782 - 26,782 26,782 8,789 2,618 14,102 1,274
(i) The amounts disclosed are the contractual undiscounted cash flows of each class of financial liabilities.(ii) The carrying amounts disclosed exclude statutory amounts (eg: amounts payable to Victorian Government and taxes payable).
ANNuAlREPORT2012 31
NOTESTOFINANCIAlSTATEMENTSFORTHEFINANCIAlyEARENDED30JuNE2012
(e) Market risk
TheTrust’sexposurestomarketrisk,includinginterestrateriskandforeigncurrencyareinsignificant.Objectives,policiesandprocessesusedtomanageeachoftheserisksaredisclosedintheparagraphsbelow.
Foreign currency riskTheTrustisexposedtoinsignificantforeigncurrencyriskthroughitspayablesrelatingtopurchasesofsuppliesandconsumablesfromoverseas,duetothelimitedamountofpurchasesdenominatedinforeigncurrenciesandtheshorttimeframebetweencommitmentandsettlement.
TheTrustmanagesitsriskthroughcontinuousmonitoringofmovementsinexchangeratesagainsttheuSDollarandensuresavailabilityoffundsthroughcashflowplanningandmonitoring.Basedonpastandcurrentassessmentofeconomicoutlook,itisdeemedunnecessaryfortheTrusttoenterintoanyhedgingarrangementstomanagetherisk.
TheTrust’sexposuretoforeigncurrencyriskissetoutinTable16.4.
Interest rate riskTheTrustisexposedtoinsignificantinterestrateriskasitdoesnothaveanyloansandmoneyontermdepositiswithfinancialinstitutionswithhighcreditratings.
TheTrust’sexposuretointerestrateriskissetoutinTable16.4.
Table 16.4: Market risk
Foreign exchangerisk
Interest raterisk
Carryingamount
-10% Profit
10% Equity
-1%(100 basis points)
+1%(100 basis points)
Profit Equity Profit Equity
30 June 2012 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Financial Assets:
Cashandcashequivalents(i) 62,194 - - (622) (622) 622 622
30 June 2011
Financial Assets:
Cashandcashequivalents(i) 38,717 - - (387) (387) 387 387
(i) Sensitivity of cash and cash equivalents to a +1% movement in rates: ($62,194k x 0.055)-($62,194k x 0.045) = $621k. Similarly for a -1% movement in interest rate, impact = ($621k). Source: TCV Monthly Economic & Interest Rate Update – June 2012 (Forecast cash rate Jun-13: 3.25%, Actual cash rate Jun-12 3.50%).
(f) Fair value
TheTrustconsidersthatthecarryingamountoffinancialassetsandfinancialliabilitiesrecordedinthefinancialreporttobeafairapproximationoftheirfairvalues,becauseoftheshort-termnatureofthefinancialinstrumentsandtheexpectationthattheywillbepaidinfull.
32 MElBOuRNE&OlyMPICPARkSTRuST
17. CASH FLOW INFORMATION
(a) Reconciliation of cash and cash equivalents
2012$’000
2011$’000
Totalcashandcashequivalentsdisclosedinnote5 62,194 38,717Balance as per cash flow statement 62,194 38,717
(b) Reconciliation of net result for the period to net cash flows from operating activities
2012$’000
2011$’000
Operatingprofit/(deficit)forthefinancialyear 5,345 7,024
Add/(less) non-cash movements:
Depreciationandamortisationofnon-currentassets 25,175 26,515
Movements included in investing and financing activities:
Borrowingcostspaid - 107
Movements in assets and liabilities:
(Increase)/decreaseincurrentreceivables (191) 6,687
(Increase)/decreaseinothercurrentassets 202 (179)
(Decrease)/increaseincurrentpayables 7,128 (4,765)
(Decrease)/increaseincurrentprovisions 124 209
(Decrease)/increaseinothercurrentliabilities 4,473 (15,256)
(Decrease)/increaseinnon-currentprovisions 97 (15)
Net cash flows from/(used in) operating activities 42,353 20,327
NOTESTOFINANCIAlSTATEMENTSFORTHEFINANCIAlyEARENDED30JuNE2012
ANNuAlREPORT2012 33
18. RESPONSIBLE PERSONSInaccordancewiththeMinisterialDirectionsissuedbytheMinisterforFinanceundertheFinancialManagementAct1994,thefollowingdisclosuresaremaderegardingresponsiblepersonsforthereportingperiod.
NamesThepersonswhoheldthepositionsofMinistersandAccountableOfficersfortheTrustareasfollows:
PremierTheHonourableTedBaillieu,Premierofvictoria
MinisterTheHonourableHughDelahunty,MinisterforSportandRecreation
TrustMrRussellCaplan(Chairperson)MsDeborahBeale(to26/05/12)MrJohnHowie(to24/03/12)MrTimJacobsMskateJoelMsElizabeth(Sue)Nattrass,AOMsDianaNicholsonMrGeoffreyPollard,AMMrRaymondSmithMrDavidStobartMrScottTannerTheHonourableJohnCain
Chief Executive OfficerMrBrianMorris
RemunerationTotalremuneration(includingincentivepayments)receivedorreceivablebytheAccountableOfficerinconnectionwiththemanagementoftheTrustduringthereportingperiodwasintherangeof$390,000-$399,999($390,000-$399,999in2010-11).
TrusteesdidnotreceiveanyremunerationfromtheTrustduringthefinancialyear.(2010-11:$0).
Related party transactionsCommercialdealingswereundertakenduringthereportingperiodwithTennisAustraliaandTennisvictoria,bothofwhichhaverepresentativesholdingpositionsasTrusteesontheMelbourne&OlympicParksTrust.
During2011-12,theTrustinvoicedTennisAustralia$26,107,031($25,534,055in2010-11)andasat30June2012,TennisAustraliaowedtheTrust$598,021($567,781at30June2011).MrScottTannerholdsapositionontheMelbourne&OlympicParksTrustandalsoholdsapositionatTennisAustralia(Director).TennisAustraliaisthepromoteroftheAustralianOpenevent,runsacourthirebusinessontheTrust’spremisesandrentsofficespacefromtheTrust.
During2011-12,theTrustinvoicedTennisvictoria$169,561($152,469in2010-11)andat30June2012,TennisvictoriaowedtheTrust$630($0at30June2011).MrDavidStobartholdsapositionontheMelbourne&OlympicParksTrustandalsoholdsthepositionofPresidentofTennisvictoria.TennisvictoriarentsofficespaceontheTrust’spremisesandpurchaserelatedservicesfromtheTrust.
Therearenootherreceivableamountsorloansoutstandinginrelationtorelatedparties,asat30June2012.
NOTESTOFINANCIAlSTATEMENTSFORTHEFINANCIAlyEARENDED30JuNE2012
34 MElBOuRNE&OlyMPICPARkSTRuST
19. REMUNERATION OF EXECUTIVESThenumberofExecutiveOfficers,otherthantheAccountableOfficer,andtheirtotalremunerationduringthereportingperiodareshowninthefirsttwocolumnsinthetablebelowintheirrelevantincomebands.ThebaseremunerationofExecutiveOfficersisshowninthethirdcolumnandacomparativetotheprioryearinthefourthcolumn.Baseremunerationisexclusiveofbonuspayments,longserviceleavepayments,redundancypaymentsandretirementbenefits.
Income band Total Remuneration Base Remuneration
2012 2011 2012 2011No. No. No. No.
<$99,999 - - - 1$100,000-$109,999 1 2 1 3$110,000-$119,999 4 2 5 1$120,000-$129,999 3 - 2 1$130,000-$139,999 2 3 2 1$140,000-$149,999 2 1 2 2$150,000-$159,999 1 - 1 1$160,000-$169,999 1 2 1 -$190,000-$199,999 - 1 - 1$200,000-$209,999 1 1 1 1
$220,000-$229,999 1 - 1 -Total numbers 16 12 16 12
Total remuneration 2,243 1,699 2,233 1,619
20. REMUNERATION OF AUDITORS
AuditfeespaidorpayabletothevictorianAuditor-General’sOfficefortheauditoftheTrust’sfinancialreportandErnstandyoung(uptoDec-11)andkPMG(fromJan-12)fortheTrust’sinternalauditprogram:
2012$’000
2011$’000
Auditorreviewofthefinancialstatements 52 51Internalauditservices 83 84Othernon-auditservices - 18
135 153
NOTESTOFINANCIAlSTATEMENTSFORTHEFINANCIAlyEARENDED30JuNE2012
ANNuAlREPORT2012 35
NOTESTOFINANCIAlSTATEMENTSFORTHEFINANCIAlyEARENDED30JuNE2012
21. EMPLOYEE SUPERANNUATION
Superannuationcontributionsforthereportingperiodareincludedaspartofemployeebenefitsandon-costsinthecomprehensiveoperatingstatementoftheTrust.
Thenameanddetailsofthemajoremployeesuperannuationfundsandcontributions(above$10,000)madebytheTrustduringthereportingperiodareasfollows:
2012$’000
2011$’000
AustralianSuper 918 959NavigatorSuperSolutions 139 165Hostplus 68 74vicSuper 37 31RetailEmployeesSuperannuation 26 26ColonialFirstStateSuper 18 17MummeFreeburnExecutiveSuperFund 18 17CombinedFundPtyltd 16 20AMPSignatureSuper 14 2universalSuperScheme 14 14C+BuS 14 15GenerationsPersonalSuper 13 14
CareSuper 12 2
Others 138 148
TOTAL 1,445 1,504
22. SUBSEQUENT EVENTS
TheTrusthasnomaterialorsignificanteventsoccurringafterthereportingdate.
23. GLOSSARY OF TERMS
Cash and cash equivalentsCashandcashequivalentsispettycash,cashfloats,depositsinbankaccountsandshort-termdeposits(upto6months).
Comprehensive resultTotalcomprehensiveresultisthechangeinequityfortheperiodotherthanchangesarisingfromtransactionswithowners.Itistheaggregateofnetresultandothernon-ownerchangesinequity.
CommitmentsCommitmentsincludethoseoperating,capitalandotheroutsourcingcommitmentsarisingfromnoncancellablecontractualorstatutorysources.
Delaware North Australia Sinking FundReferstoanaccountmanagedjointlybytheTrustandtheTrust’scaterer(DelawareNorthAustralia)andisusedforthereplacementorimprovementofcateringequipmentorinfrastructure.
Employee benefits expenseEmployeebenefitsexpensesincludeallcostsrelatedtoemploymentincludingwagesandsalaries,leaveentitlements,redundancypayments,definedbenefitssuperannuationplans,anddefinedcontributionsuperannuationplans.
36 MElBOuRNE&OlyMPICPARkSTRuST
Financial assetAfinancialassetisanyassetthatis:
(a) cash;
(b) anequityinstrumentofanotherentity;
(c) acontractualorstatutoryright:
• toreceivecashoranotherfinancialassetfromanotherentity;or
• toexchangefinancialassetsorfinancialliabilitieswithanotherentityunderconditionsthatarepotentiallyfavourabletotheentity;or
(d) acontractthatwillormaybesettledintheentity’sownequityinstrumentsandis:
• anonderivativeforwhichtheentityisormaybeobligedtoreceiveavariablenumberoftheentity’sownequityinstruments;or
• aderivativethatwillormaybesettledotherthanbytheexchangeofafixedamountofcashoranotherfinancialassetforafixednumberoftheentity’sownequityinstruments.
Financial instrumentAfinancialinstrumentisanycontractthatgivesrisetoafinancialassetofoneentityandafinancialliabilityorequityinstrumentofanotherentity.Financialassetsorliabilitiesthatarenotcontractual(suchasstatutoryreceivablesorpayablesthatariseasaresultofstatutoryrequirementsimposedbygovernments)arenotfinancialinstruments.
Financial liabilityAfinancialliabilityisanyliabilitythatis:
(a) Acontractualorstatutoryobligation:(i) Todelivercashoranotherfinancialassettoanotherentity;or(ii) Toexchangefinancialassetsorfinancialliabilitieswithanotherentityunderconditionsthatare
potentiallyunfavourabletotheentity;or(b) Acontractthatwillormaybesettledintheentity’sownequityinstrumentsandis:
(i) Anon-derivativeforwhichtheentityisormaybeobligedtodeliveravariablenumberoftheentity’sownequityinstruments;or
(ii) Aderivativethatwillormaybesettledotherthanbytheexchangeofafixedamountofcashoranotherfinancialassetforafixednumberoftheentity’sownequityinstruments.Forthispurposetheentity’sownequityinstrumentsdonotincludeinstrumentsthatarethemselvescontractsforthefuturereceiptordeliveryoftheentity’sownequityinstruments.
Financial statementsDependingonthecontextofthesentencewheretheterm‘financialstatements’isused,itmayincludeonlythemainfinancialstatements(i.e.comprehensiveoperatingstatement,balancesheet,cashflowstatements,andstatementofchangesinequity);oritmayalsobeusedtoreplacetheoldterm‘financialreport’undertherevisedAASB101(September2007),whichmeansitmayincludethemainfinancialstatementsandthenotes.
GrantsGrantscanbepaidasgeneralpurposegrantswhichrefertograntsthatarenotsubjecttoconditionsregardingtheiruse.Alternatively,theymaybepaidasspecificpurposegrantswhicharepaidforaparticularpurposeand/orhaveconditionsattachedregardingtheiruse.
NOTESTOFINANCIAlSTATEMENTSFORTHEFINANCIAlyEARENDED30JuNE2012
ANNuAlREPORT2012 37
Intangible assetsIntangibleassetsrepresentidentifiablenon-monetaryassetswithoutphysicalsubstance.
Interest expenseCostsincurredinconnectionwiththeborrowingoffundsinterestexpensesincludeinterestonbankoverdraftsandshorttermandlongtermborrowings,amortisationofdiscountsorpremiumsrelatingtoborrowings,interestcomponentoffinanceleasesrepayments,andtheincreaseinfinancialliabilitiesandnonemployeeprovisionsduetotheunwindingofdiscountstoreflectthepassageoftime.
Interest incomeInterestincomeincludesinterestreceivedonbanktermdeposits,interestfrominvestmentsandotherinterestreceived.
Net acquisition of non-financial assets (from transactions)Purchases(andotheracquisitions)ofnonfinancialassetslesssales(ordisposals)ofnonfinancialassetslessdepreciationpluschangesininventoriesandothermovementsinnonfinancialassets.Itincludesonlythoseincreasesordecreasesinnonfinancialassetsresultingfromtransactionsandthereforeexcludeswriteoffs,impairmentwritedownsandrevaluations.
Net resultNetresultisameasureoffinancialperformanceoftheoperationsfortheperiod.Itisthenetresultofitemsofincome,gainsandexpenses(includinglosses)recognisedfortheperiod,excludingthosethatareclassifiedasothernonownerchangesinequity.
Net result from transactions (net operating balance)Netresultfromtransactionsornetoperatingbalanceisakeyfiscalaggregateandisincomefromtransactionsminusexpensesfromtransactions.Itisasummarymeasureoftheongoingsustainabilityofoperations.Itexcludesgainsandlossesresultingfromchangesinpricelevelsandotherchangesinthevolumeofassets.Itisthecomponentofthechangeinnetworththatisduetotransactions.
Non-financial assetsNon-financialassetsareallassetsthatarenot‘financialassets’.
Other economic flowsOthereconomicflowsarechangesinthevolumeorvalueofanassetorliabilitythatdonotresultfromtransactions.Itincludesgainsandlossesfromdisposals,revaluationsandimpairmentsofnoncurrentphysicalandintangibleassets;actuarialgainsandlossesarisingfromdefinedbenefitsuperannuationplans;fairvaluechangesoffinancialinstrumentsandagriculturalassets;anddepletionofnaturalassets(nonproduced)fromtheiruseorremoval.Insimpleterms,othereconomicflowsarechangesarisingfrommarketremeasurements.
PayablesIncludesshortandlongtermtradedebtandaccountspayable,grants,taxesandinterestpayable.
ReceivablesIncludesamountsowingfromgovernmentthroughappropriationreceivable,shortandlongtermtradecreditandaccountsreceivable,accruedinvestmentincome,grants,taxesandinterestreceivable.
Sales of goods and servicesReferstorevenuefromdirectprovisionofgoodsandservicesandincludesfeesandchargesforservicesrenderedandsalesofgoodsandservices.
Tennis Australia Special Purpose AccountReferstoaseparatetrustaccountestablishedbyMOPTfortennis-relatedcapitalimprovementstoMelbournePark.
TransactionsTransactionsarethoseeconomicflowsthatinteractbetweentwoentitiesbymutualagreement.
NOTESTOFINANCIAlSTATEMENTSFORTHEFINANCIAlyEARENDED30JuNE2012
38 MElBOuRNE&OlyMPICPARkSTRuST
CERTIFICATIONJ
InaccordancewitharesolutionofthemembersoftheMelbourneandOlympicParksTrustandinouropinion:
(a) theaccompanyingfinancialreportoftheTrust,comprisingoperatingstatement,balancesheet,cashflowstatementandstatementofchangesinequityreadinconjunctionwiththenotestheretopresentfairlythefinancialoperationsoftheTrustfortheyearended30June2012andtheStateofAffairsoftheTrustonthatdate;
(b) theseaccountshavebeenpreparedinaccordancewiththeFinancialManagementAct1994,AustralianAccountingStandardsandothermandatoryprofessionalreportingrequirements;and
(c) atthedateofthisstatementwearenotawareofanycircumstanceswhichwouldrenderanyparticularsincludedinthestatementtobemisleadingorinaccurate.
RussellCaplanMemberofResponsibleBodyChairmanMelbourneandOlympicParksTrust
BrianMorrisAccountableOfficerChiefExecutiveOfficerMelbourneandOlympicParksTrust
TravisMardlingChiefFinancialOfficerMelbourneandOlympicParksTrust
Melbourne23August2012
ANNuAlREPORT2012 39
INDEPENDENTAuDITREPORT
40 MElBOuRNE&OlyMPICPARkSTRuST
INDEPENDENTAuDITREPORT
ANNuAlREPORT2012 41
Competitive Neutrality Policy complianceTheTrustregularlyreviewswhetheritsactivitiesaresubjecttotherequirementsoftheNationalCompetitionPolicy,includingcompliancewiththerequirementsofthepolicystatement‘CompetitiveNeutralityPolicyvictoria’,andtakesnecessaryactiontoimplementcompetitiveneutralitymeasureswhererequired.
Statement of compliance with the Building Act 1993.
TheTrustcomplieswiththerelevantguidelines,pursuanttoSection220oftheBuilding Act 1993.
Implementation of the Victorian Industry Participation PolicyInOctober2003,thevictorianParliamentpassedthevictorianIndustryParticipation Policy Act 2003whichrequiredpublicbodiesanddepartmentstoreportontheimplementationofthevictorianIndustryParticipationPolicy(vIPP).TheTrustisrequiredtoapplythevIPPwhereTrustfundingexceeds$3millioninmetropolitanMelbourneand$1millioninregionalvictoria.TheTrustcommencedoneprojectduring2011/12towhichthevIPPapplies,totalling$6.3millioninmetropolitanMelbourne.TheoutcomesexpectedfromtheimplementationofvIPPtothisprojectare:
• localcontentof40%;
• 15fulltimeequivalentjobs,includingthecreationof2newjobsandtheretentionof13existingjobs;
• 1existingapprentice/traineeutilised;and
• Expectedbenefitsincludedevelopingandmaintainingaskilledworkforcefortheconstructionindustryaswellasthepotentialtoinvestigateinnovations,researchanddevelopmentoftechnologybyalternativepavementdesignmeans.
Financial and other information retained by the accountable officerRelevantinformationdetailedinFinancialReportingDirection(FRD)22B‘StandardDisclosuresintheReportofOperations’undertheFinancialManagementAct1994Section3isretainedbytheTrust’sAccountableOfficerandisavailableonrequest,subjecttotheFreedom of Information Act 1982.
Whistleblowers Protection Act 2001ThissectionofthereportcontainsinformationthatisrequiredtobepublishedannuallyundertheWhistleblowers Protection Act2001Section104.
TheTrusthasestablishedwrittenproceduresforhandlingdisclosuresmadeundertheWhistleblowers Protection Act 2001inaccordancewiththeguidelinesissuedbytheOmbudsmanvictoria.AfullcopyoftheprocedureisavailableinMelbourne&OlympicParkswebsitehttp://www.mopt.com.au.
Contact:GeneralManagerPeopleandCulture
Theproceduresincludedetailedinformationabout;
• rolesandresponsibilitiesoftheDisclosureOfficerandtheDisclosureCoordinator;
• confidentialityprovisions;
• proceduresfortheconductofinvestigations;
• actiontobetakenafteraninvestigation;
• managingthewelfareofthewhistleblower;
• managementofthepersonagainstwhomadisclosurehasbeenmade.
a) ThecurrentproceduresestablishedbyMelbourneandOlympicParksTrustunderPart6oftheActcanbefoundonwww.mopt.com.au;
b) TheTrusthasreceivednodisclosuresduringtheyear.
c) TheTrusthasnotreferredanydisclosurestotheOmbudsmanfordeterminationastowhethertheyarepublicinterestdisclosuresduringtheyear;
d) TheOmbudsmanhasnotreferredanydisclosedmatterstotheTrustduringtheyear;
e) TheTrusthasnotreferredanydisclosedmatterstotheOmbudsmantoinvestigateduringtheyear;
f) TheOmbudsmanhasnottakenoveranyinvestigationofdisclosedmattersfromtheTrustduringtheyear;
g) TheTrusthasmadenorequestundersection74oftheActtotheOmbudsmantoinvestigatedisclosedmattersduringtheyear;
h) TheTrusthasnotdeclinedtoinvestigateadisclosedmatterduringtheyear;
i) Therehavebeennodisclosedmattersthatweresubstantiatedoninvestigation.Therehasbeennoactionrequiredtobeundertakenarisingfromaninvestigation,sincetherehavebeennoinvestigations;and
j) TheOmbudsmanhasnotmadeanyrecommendationsundertheActthatrelatestotheTrust.
Disability Act (2006)MOPTiscommittedtoprovidingequitable,dignifiedaccesstogoodsandservicesandtopremisesusedbythepublic.AnumberofinitiativeshavebeenundertakenoverthepastthreeyearstoensurecompliancewiththeActandworkiscurrentlyunderwaytodevelopanewthreeyearplanwhichtakesintoaccountthemanychangesoccurringaroundtheprecinct.
ADMINISTRATIvEREPORTINGREQuIREMENTS
42 MElBOuRNE&OlyMPICPARkSTRuST
ADMINISTRATIvEREPORTINGREQuIREMENTS
Occupational Health and Safety (OH&S)InDecember2011,MOPTreceivedcertificationofitsSafetyManagementSystemtoAS4801level.Thiscertificationisindicativeofanorganisationthathasworkpracticesandproceduresthatareequaltoorexceedthenationalcertificationstandard.MOPTiscommittedtoacontinuousimprovementapproachtoitsSafetyManagementSystem.
Theimportanceoftoolboxmeetingscontinuestobereinforcedwith127meetingsheldacrosstheprecinctduringthefinancialyear.Inaddition,285workplaceinspectionswerecarriedoutwhichensuresaproactiveapproachtosafetyisadopted.WorksafeWeekcontinuestobeahighlight,raisingtheprofileofsafetyacrosstheorganisationandthenewEmployeeWellbeingProgramhasbeenwellutilisedthroughouttheyear.Committeemeetingattendanceshavebeenexcellentandthenatureofdiscussionsimprovedsignificantly.
AfullcopyoftheTrust’sOHSpolicyisavailableonMOPT’swebsite:http://www.mopt.com.au.
Statement of Workforce DataMelbourneandOlympicParkTrustiscommittedtotwocodesissuedbythePublicSectorStandardsCommissioner(PSSC),beingtheDirectorCodesofConductandGuidanceNotesandtheCodeofConductofvictorianPublicSectoremployees.
EnterpriseBasedAgreementsareinplaceandtheTrustcontinuesitsongoingcommitmenttothePSSCstandardsonequalopportunity,fairandreasonabletreatment,meritinemploymentandreasonableavenuesofredress.
Melbourne&OlympicParksTrustemployed107fulltimeandparttimestaffasat30June2012(2011:106).ThenumberofFullTimeEquivalent(FTE)staffat30June2012was103(2011:101).Thenumberoffixedtermandcasualemployeesat30June2012was1,091(2010:1,106)andalargenumberofcontractorsprovidedbyourkeypartnersalsocontributetoMOPT’sworkforce(ACG,CapricornStagesandRigging,DelawareNorthCompanies,MichaelO’BrienCateringandTicketek).
Thebreakdownofstaffisasfollows;
Employees (Headcount)
Full time
(Headcount)
Part time
(Headcount)
FTE Fixed Term & Casual
Employees
June2012 107 88 19 103 1,091
June2011 106 88 18 101 1,106
June 2012 June 2011
Employee (Headcount)
FTE Fixed Term & Casual
Employees
Employees (Headcount)
FTE Fixed Term & Casual
Employees
Accountableofficer 1 1 - 1 1 -
Executiveofficers(remunerationgreaterthan$100k) 15 15 - 14 14 -
Administrationstaff(remunerationlessthan$100k) 91 87 1,091 91 86 1,106
Males 58 57 549 58 57 547
Females 49 46 542 48 44 559
Freedom of information TheFreedom of Information Act 1982allowsthepublicarightofaccesstodocumentsheldbyMelbourneandOlympicParksTrust.Duringthe12monthstoJune2012,theTrustreceived1FreedomofInformationrequest.Theprocessingofthisrequestwasinprogressasat30June2012.
TheChiefFinancialOfficeristhecontactofficerinrelationtoallFreedomofInformationrequests.AccesstodocumentsmaybeobtainedthroughwrittenrequesttotheChiefFinancialOfficer,addressedasfollows:
FreedomofInformationMelbourneandOlympicParksTrustGPOBox4611,MelbournevIC3001
[email protected]. Accesschargesmayalsoapplyoncedocumentshavebeenprocessedandadecisiononaccessismade;forexamplephotocopyingandsearchandretrievalcharges.
MOPT Workforce Data
ANNuAlREPORT2012 43
ADMINISTRATIvEREPORTINGREQuIREMENTS
Consultants
Detailsofconsultanciesover$10,000
Consultant Purpose of consultancy Start date End date Total expendi-ture 2011/12 (excluding GST)
Future commitments
TheMaytrixGroup
ExpertadviceinrelationtothecateringtenderfortheBenchcafe
Sept2011 Feb2012 $20,772 Nil
1stExecutive FunctionCentreandSuperboxsalesprocessadvice
Nov2011 Feb2012 $19,172 Nil
DavidPayne&Associates
ExpertadviceinrelationtothecateringtenderforMelbournePark
Jan2012 Mar2013 $40,909 $25,000
DavidPayne&Associates
One-offreviewwithrecommendationsforthestructureofthecleaningdepartment
Dec2011 May2012 $13,636 Nil
Details of consultancies less than $10,000
Number:4
TotalAmount: $6,384(excludingGST)
Gosch’s PaddockWearepleasedtoreportthatGosch’sPaddockwasnotclosedtothepublicatallthroughouttheyear.
Risk Attestation StatementI,ChairoftheTrust,certifythatMelbourne&OlympicParksTrusthasriskmanagementprocessesinplaceconsistentwiththeAustralian/NewZealandRiskManagementStandard(AS/NZSISO31000:2009)andaninternalcontrolsystemisinplacethatenablestheexecutivetounderstand,manageandsatisfactorilycontrolriskexposures.TheTrustverifiesthisassuranceandthattheriskprofileofMelbourne&OlympicParksTrusthasbeencriticallyreviewedwithinthelast12months.
RussellCaplanChairmanMelbourneandOlympicParksTrust
44 MElBOuRNE&OlyMPICPARkSTRuST
DISClOSuREINDEx
TheAnnualReportofMelbourne&OlympicParksTrustispreparedinaccordancewithallvictorianlegislation.Thisindexhasbeenpreparedtofacilitateidentificationofcompliancewithstatutorydisclosurerequirements.
Ministerial Directions
Charter and PurposeFRD22C MannerofestablishmentandtherelevantMinister 4FRD22C Objectives,functions,powersandduties 4FRD22C Natureandrangeofservicesprovided 4
Management and structureFRD22C OrganisationalStructure 5
Financial and other informationFRD10 Disclosureindex 45FRD15B Executiveofficerdisclosures 35FRD22C ApplicationandoperationofFreedomofInformationAct1982 43FRD22C ApplicationandoperationoftheWhistleblowers
ProtectionAct2001 42FRD22C Compliancewithbuildingandmaintenanceprovisionof
BuildingAct1993 42FRD22C Detailsofconsultanciesover$10,000 44FRD22C Detailsofconsultanciesunder$10,000 44FRD22C Majorchangesorfactorsaffectingperformance 12FRD22C OccupationalHealthandSafety 43SD4.5.5 RiskAttestationStatement 44FRD22C Statementofavailabilityofotherinformation 42FRD22C StatementonCompetitiveNeutralityPolicy 42FRD22C Summaryoffinancialresultsfortheyear 12FRD22C Summaryofmajoractivities 9-10FRD22C Subsequentevents N/AFRD25A victorianIndustryParticipationPolicydisclosures 42FRD29 StatementonWorkforceData 43
Financial Statements required under Part 7 of the FMASD4.2(a) FinancialStatements 13-41SD4.2(b) BalanceSheet 15SD4.2(b) CashflowStatement 17SD4.2(b) ComprehensiveOperatingStatement 14SD4.2(b) StatementofChangesinEquity 16SD4.2(c) Accountableofficer’sdeclaration 39SD4.2(c) CompliancewithAustralianaccountingstandardsandotherauthoritative
pronouncement18
SD4.2(c) CompliancewithMinisterialDirections 39SD4.2(d) Roundingofamounts 21
Other disclosures in notes to the financial statementsFRD9A Departmentaldisclosureofadministeredassetsandliabilities N/AFRD11 Disclosureofex-gratiapayments N/AFRD13 Disclosureofparliamentaryappropriations N/AFRD21B Responsiblepersonandexecutiveofficerdisclosures 34,35
LegislationFreedomofInformationAct1982BuildingAct1993FinancialManagementAct1994Crownland(Reserves)Act1978MelbourneandOlympicParksAct1985
AuditAct1994WhistleblowersProtectionAct2001victorianIndustryParticipationPolicyAct2003DisabilityAct2006
ANNuAlREPORT2012 45
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© State of Victoria, Melbourne & Olympic Parks Trust 2012. 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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MELBOURNE&OLYMPICPARKSTRUSTANNUALREPORT2012