Parks Annual Report 2012–2013

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Parks Victoria Annual Report 2012–2013 Page 3

Contents

About Parks Victoria 5 Environment, Land and Water 10 Culture and Heritage 19 Visitor and Community 22 Fire and Emergency Management 31 A Sustainable Organisation 33

Financial report Annual financial statements 47

Through their rich culture, Aboriginal Traditional Owners Copyright © Parks Victoria 2013 Cover image: Works to repair have been intrinsically connected to this continent – Level 10, 535 Bourke Street, , . Masons Falls visitor including the area now known as Victoria and the State’s area, , were parks and reserves – for tens of thousands of years. Parks ISSN 1448 – 9082 completed in 2013. Victoria recognises this connection and acknowledges the ISSN 1448 – 9090 (Online) Photo James Greer. Traditional Owners of these areas. Left: Published on www.parks.vic.gov.au Marine monitoring Parks Victoria manages many different sites such as piers, at the Twleve This publication is copyright. No part may be reproduced Apostles Marine waterways, ports, bays, historic buildings, trails, urban National Park with by any process except in accordance with the provisions parks, small conservation reserves and large national Museum Victoria and of the Copyright Act 1968. Deakin University. parks. For the sake of brevity, these are collectively described in this document as ‘parks’ unless a specific type of site or park is mentioned.

People seeking further information on Parks Victoria or wishing to visit Parks Victoria parks should visit www.parks.vic.gov.au or call 13 1963. PAGE 4 CEO AND CHAIRMAN’S MESSAGE

Chief Executive’s message The 2012–13 year was one of achievement and reform for Parks Victoria, with significant work undertaken to build a more efficient and resilient park management organisation into the future.

After a few years of rain across Ranges National Park and the 10th anniversary of the the state, 2012–13 saw an connection of essential services establishment of Victoria’s above average fire season with for the Point Nepean National 24 protected marine national four major fires. Parks Victoria Park. Visitors were encouraged parks and marine sanctuaries. worked with the Department back to Kinglake National Park Significantly, it was a year in of Environment and Primary following the completion of which almost 30,000 volunteers Industries and the Country Fire the final stages of rebuilding contributed to the management Authority firefighters and support and repairs at Masons Falls and and care of Victoria’s parks – the crews to respond to fires across Jehosaphat Gully after the 2009 largest volunteer effort in Parks Victoria including large fires Black Saturday fires. Victoria’s history. I would like to impacting the Alpine National Statewide efforts to reduce the thank Parks Victoria staff and Park and surrounds in the Alpine, impact of pest plants and animals supporters for all their efforts Grampians and Lower Glenelg continued exceeding on-ground over the past year and look national parks. This was closely targets. Scientific monitoring forward to 2013–14. followed by the largest planned with research partners progressed burning program in 30 years. which ensures that park A number of significant projects management decisions continue Dr Bill Jackson were completed such as the to be based on the best evidence Chief Executive Kokoda Memorial Terrace and available. In other milestones, 30 June 2012 Wall project in the Dandenong November 2012 marked the Chairman’s message It gives me great pleasure to present the 2012–13 Parks Victoria Annual Report on behalf of the Parks Victoria Board.

Our work this past year has providing strength, flexibility Our parks are places to inspire presented significant challenges, and direction in the years ahead. the people who use them. which the organisation has The contents of this report The Parks Victoria brand embraced with enthusiasm. provide a mere snap shot of the continues to enjoy great The result is a testament to outstanding work that Parks recognition amongst Victorian the resilience, innovation and Victoria staff do to ensure that communities, and its reputation commitment of the amazing this state’s parks and waterways has been further enhanced staff at Parks Victoria – there are well cared for and conserved, this last year through many is a strong culture within our whilst at the same time exciting initiatives. The creation organisation to get the job done. providing unique recreational of park access opportunities opportunities. Parks Victoria is Following a thorough examination with disability groups, the proud to continue on its journey of Parks Victoria’s organisational strengthening of relationships to be a world leading parks structure and its performance with Traditional Owners and service, managing iconic natural indicators, this year has seen multi-cultural communities, spaces that continue to provide significant efficiencies delivered and our continued contribution inspiration to those who throughout the organisation. to developments in nature-based enjoy them. This re-structure is already paying tourism are but some of the dividends, and will continue achievements. to serve our organisation and Andrew Fairley its committed employees by Board Chairman Parks Victoria Annual Report 2012–2013 Page 5

About Parks Victoria

Parks Victoria is committed to protecting, improving and enhancing Victoria’s parks and waterways for current and future generations.

Who we are We work with the Department Vision and purpose of Environment and Primary Parks Victoria delivers on-ground Parks Victoria is committed Industries and the Department services across the state to ensure to conserving the natural and of Transport, Planning and that Victoria’s parks and waterways cultural values of the areas we Local Infrastructure to deliver remain healthy and resilient. This manage. Our vision is for an agreed services. includes conserving park and outstanding park and waterway waterway ecosystems, protecting Recognising and acknowledging system protected and enhanced, cultural heritage, continuously Aboriginal heritage and connection for people, forever. developing opportunities for to Country, we work in partnership community involvement in parks with Traditional Owners in the Parks Victoria exists to: and preparing for, responding joint management of parks. At • Conserve, protect and to and recovering from fire, a community level we work with enhance natural and floods and other emergencies. volunteer organisations, private cultural values land owners, research institutes With a comprehensive network and the broader community to • Provide quality experiences, of protected areas stretching deliver works on the ground and services and information from Red Gum forests of promote environmental values. to its customers the , through the mountains of the Great Parks Victoria is a statutory • Provide excellence and Dividing Range to the marine authority, established under innovation in park environments of the Southern the Parks Victoria Act 1998. management Ocean, Victoria’s parks embody The responsible Minister for the • Contribute to the a precious and diverse range period 1 July 2012 to 30 June environmental, social of landscapes which support 2013 was the Hon Ryan Smith MP. and economic wellbeing a healthy and sustainable Under the Parks Victoria Act 1998, of Victorians. Victoria for all Victorians today Parks Victoria’s responsibilities and for generations. are to provide services to the Parks Victoria’s mission is to State and its agencies for the effectively manage these parks management of parks, reserves for all Victorians within the and other land under the control context of the broader social, of the State. economic and environmental outcomes sought by government. PAGE 6 ABOUT US

The areas we manage • more than 11,000 formally • 98 water access points registered Aboriginal cultural (e.g. boat ramps, rowing Parks Victoria manages heritage places launches and slipways), and a representative system of marine national parks • more than 2,500 non- • 937 navigation aids and marine sanctuaries. Indigenous historic places Our parks and waterways attract It is also the Local Port Manager Parks Victoria manages more 95.8 million visits each year. Of for Port Phillip Bay, Western than 28,000 assets. They include: these visits, 51.2 million are to Port and Port Campbell and parks and 44.6 million are to • 44 visitor centre buildings the Waterway Manager for the piers and jetties around the bays. Yarra and Maribyrnong rivers. • 703 shelters Organisational structure These areas include: • 845 toilets Parks Victoria’s Chief Executive • 45 national parks • 515 viewing lookouts is appointed by the Board • 26 state parks • 55 playgrounds following consultation with the Minister. The Board reviews • 13 marine national parks • 14,000 kilometres of roads the performance of the Chief • 11 marine sanctuaries • 1,213 pedestrian and Executive on an annual basis. vehicular bridges • 3 wilderness parks During the reporting period, • 3,700km of walking tracks Parks Victoria’s Chief Executive • 30 metropolitan parks • 110 sporting facilities (e.g. was Dr Bill Jackson. • 60 other parks (including golf courses, ovals and wickets) regional and reservoir parks) more than 2,700 natural • 217 piers and jetties features and conservation reserves

Parks Victoria Board (Andrew Fairley, Chairman)

Audit Risk & Finance Compliance Committee Committee (Andrew Vizard, (Denis Cavagna, Committee Chair) Committee Chair)

Workplace Safety & Human Resources Committee (Pru Sanderson, Committee Chair)

Bill Jackson Chief Executive

Office of the Chief Executive & Board Secretary

Peter Brennan Ian Christie Ian Walker Chris Rose Brian Hood Margaret Gillespie Executive Director General Manager General Manager General Manager General Manager Chief Legal Counsel / Corporate Strategy Visitor Experiences Environment & Heritage Regional Services Corporate Services Executive Director Corporate Governance Parks Victoria Annual Report 2012–2013 Page 7

Parks Victoria’s Board financial management. Mr Board. She has extensive Cavagna is a member of the knowledge of tourism, The Parks Victoria Board has Urban Utilities Board, including an understanding responsibility for the governance the Department of Environment of increasing visitation. of Parks Victoria. On the and Primary Industries Risk recommendation of the Minister and Audit Committee,and the Pru Sanderson for Environment and Climate VicRoads audit committee. Pru Sanderson is an architect Change, Board members are and property professional who appointed by the Governor Deborah Cheetham specialises in creating new in Council for a period not Ms Deborah Cheetham is currently benchmarks in urban planning exceeding three years. Members the Head of the Wilin Centre and public infrastructure. She has are eligible for reappointment. at the Victorian College of the served as CEO of VicUrban, held The Board operates in accordance Arts and the Music Faculty of senior roles in the development with the provisions of the Parks the University of Melbourne. of Melbourne Museum and Victoria Act 1998. She is also Artistic Director of Federation Square and has The Board is responsible for Short Black Opera Company Pty worked internationally, managing directing and monitoring the Ltd and a freelance performer, property affairs and the delivery business of Parks Victoria and director, producer, writer, teacher of major infrastructure in is accountable to the Minister and composer. Deborah has South Africa and Malaysia. for its overall performance. It a strong understanding of She is a member of the Federal delegates day-to-day responsibility Indigenous issues, which she Government’s Built Environment for operations and administration contributes to the shared Industry Innovation Council to the Chief Executive. management model for many (BEIIC) and a fellow of national parks. She has significant Leadership Victoria. As at 30 June 2013, the Board community links and community members were: consultation experience. Andrew Vizard Professor Andrew Vizard is Andrew Fairley (Chairman) Andrew Grant a part-time Associate Professor Mr Andrew Fairley has had Mr Andrew Grant is currently the of Veterinary Epidemiology a distinguished association with CEO of the CO2 Group Ltd and at the University of Melbourne. ecotourism, conservation, parks has a background in natural He is an experienced company and resort management over resource management and director and has served on the many years and was a director business. He has executive board of numerous companies, of the world class 5 star resort and board experience with statutory bodies and scientific Turtle Island in the Yasawas for organisations including the organisations. He is currently over 20 years. He has been Royal Botanic Gardens, the Chair of the Vizard a Director of the International Earthwatch, the Cooperative Foundation, a board member Ecotourism Society (Washington Research Centre for Greenhouse of Ridley Corporation Ltd, DC) and a Director of Ecotourism Accounting and the Banksia a trustee of the Australian Wool Australia. Andrew is also Environmental Foundation. He Education Trust and a member a specialist superannuation has held several management of the Research Committee lawyer. He is Chair of Equipsuper, positions in Parks Victoria and is of the Hermon Slade Foundation. a $6 billion industry fund operating a former Chair of the Port Phillip in the energy and water sector, and Catchment Robert Wallis Chair of the Sir Andrew Fairley Management Authority. Professor Robert Wallis is a Foundation and he also currently part-time Professor of Research acts as Consul General for Finland Natalie O’Brien Development at Ballarat University. in Victoria. Ms Natalie O’Brien has He has a background in natural a background in senior resource management, sustainable Dennis Cavagna management in tourism and development and environmental Mr Dennis Cavagna has a marketing and is currently the education. Professor Wallis has held background in business and CEO of the Melbourne Food and senior academic positions including accountancy and is currently Wine Festival. She is a committee Pro Vice Chancellor (Rural and a part-time Commissioner of the member on the Victorian Food, Regional) and Head of School Essential Services Commission Wine and Tourism Council and (Ecology and Environment) (ESC) of Victoria. He is the former a board member of the Stephanie at Deakin University. He has Managing Director of South East Alexander Kitchen Garden extensive board and committee Water. He also has an extensive Foundation and the City of experience, including currently background in business and Melbourne Hospitality Advisory serving as the Deputy Chair and PAGE 8 ABOUT US

Director of the Wannon Region Water Corporation, Deputy Chair Total meeting attendance in 2012–13: and Director of Great South Coast Andrew Fairley 9 of 10 Medicare Local and Chair of the Dennis Cavagna 10 of 10 Warrnambool City Council Audit and Risk Committee. He is a fellow Deborah Cheetham 6 of 9 of the Australian Institute Andrew Grant 7 of 9 of Company Directors. Pru Sanderson 9 of 10 Natalie O’Brien 8 of 9 Garry Phibbs (term ended 2 August 2012) Andrew Vizard 9 of 9 Garry has had responsibility for Robert Wallis 8 of 9 the provision of high level and Garry Phibbs 1 of 1 innovative commercial, financial and risk management advice to the Victorian Government The Reward and Governance • compliance by Board including a focus on major Committee (formerly Governance members with Board policies, infrastructure and the State’s and Remuneration Committee) and balance sheet. Garry also has reviews and monitors key human • human resources policies. experience in the commercial resources policies and issues governance of Victoria’s and determines Parks Victoria’s The Committee, which is corporatised Government policy and practice for executive supported by senior managers, Business Enterprises and in remuneration. The committee comprises Pru Sanderson providing commercial and risk is supported by senior managers. (Committee Chair), Andrew management advice on business The Committee members Pru Fairley, Deborah Cheetham and case proposals, projects that Sanderson (Committee Chair), Robert Wallis. Members met facilitate new infrastructure and Andrew Fairley, Deborah Cheetham twice in 2012–13. The Board major commercial transactions. and Robert Wallis met twice appointed Ross Passalaqua in 2012–13. The Reward and as an external member of the Board Committees Governance Committee went into Committee in May 2013. recession on 20 February 2013. The Audit, Risk and Compliance The Finance Committee Committee oversees and advises The Workplace Safety and reviews, monitors and on matters of accountability Human Resources Committee makes recommendations on and internal controls affecting is the appointed remuneration performance against financial the operations of Parks Victoria committee with responsibility for budgets and plans with the as required by the Standing determining the organisation’s support of senior managers. The Directions of the Minister for policy and practice for executive Committee’s members Andrew Finance under the Financial remuneration and the executive Vizard (Committee Chair), Management Act 1994 (FMCF). remuneration packages under the Andrew Fairley and Dennis The role of the Committee is to State Services Authority Policy. Cavagna met twice in 2012–13. assist the Board in the effective The Committee reviews, monitors discharge of its responsibilities in and makes recommendation to overseeing the areas of statutory the Board on the following issues: reporting, internal controls, • workplace health and safety risk management (including insurance and legal proceedings), • setting of performance compliance and the internal and measures and review of the external audit functions. The performance of the Chief Committee which is supported Executive by senior managers, comprises • compliance with executive Dennis Cavagna (Committee remuneration requirements Chair), Andrew Fairley, Andrew Grant, Natalie O’Brien, Andrew • compliance with Board Vizard and Peter Calder (external, member remuneration independent committee member) requirements – met four times in 2012–13. The term of office of Peter Calder ended on 31 December 2012. Parks Victoria Annual Report 2012–2013 Page 9

The Year in Review Parks Victoria’s 2012–13 Business Plan and 2012–15 Corporate Plan set out five areas of work and seven related strategic, long term goals. Program highlights are outlined on the following page and described in detail in the Report of Operations (pages 10 – 41).

Area of work and goal 2012–2013 Program highlights Page

Environment, land and water • Undertaking extensive pest plant and pest animal programs, 10 Objective: Conserve and protect park and waterway exceeding on-ground conservation targets with more than ecosystem resilience 3,300 kilometres of private land frontage and more than 1.3 million hectares of land treated for invasive animals and plants • Delivering over 22,000 million litres of environmental water to wetlands and river systems. • Collaborating with universities and government research institutions in the Research Partners Program, including on a “bioscan” of the • Implementing monitoring of programs for priority parks, environmental values and threats • Undertaking the 2 million trees initiative Cultural and Heritage • Jointly and cooperatively managing Country with Traditional 19 Objective: Protect culture and heritage in parks Owner groups • Progressing cultural heritage flood recovery works in the Grampians and Wilsons Promontory national parks • Completing major projects at Point Nepean National Park and the Kokoda Memorial Terrace at the Dandenong Ranges National Park • Celebrating Victoria’s heritage with a series of heritage stories and major community events at Day’s Mill and Anderson’s Mill Visitors and Community • Victoria’s parks and waterways attracted 95.8 million visits 22 Objective: To deliver opportunities for people to use in 2012–13. Of these visits, 51.2 million were to parks and enjoy their parks and waterways (including 34.8 million visitors to national and state parks) and 44.6 million were to piers and jetties around the bays • Providing education and interpretation services to more than 184,854 visitors and students, exceeding the 2012–13 target by more than 84,000 • Encouraging around 30,000 volunteers to contribute 219,000 volunteer hours to the maintenance of the parks estate. This represents an increase of almost 10,000 volunteers since 2012–13 and Parks Victoria’s highest number of volunteers ever engaged • Engaging with online visitors via the Parks Victoria website, which received 2,362,171 visits • Generating $20.8 million revenue from commercial operations, leases, licences and Parks Victoria-operated sites Fire and emergency management • Supporting the Department of Environment and Primary 31 Objective: Prepare for, respond to and recover from Industries to achieve the largest planned burn program fire and other emergencies in the last 30 years. • Delivering fire and flood recovery programs across the state • Responding to major fires around the state including areas in the Alpine, Grampians and Lower Glenelg and Heyfield bushfires. A Sustainable Organisation • Undertaking significant organisational reforms, including 33 Objective: Operate as a resilient, respected and a project focussed on improving organisational culture, effective park management agency reforming policies and procedures and making major improvements to occupational health and safety practices and information technology systems. PAGE 10

Environment, land and water

Parks Victoria manages a diverse and representative network of parks, rich in endemic plants and animals, reflecting the layers of our collective history. Our parks contain Victoria’s most important ecosystems, landscapes, coastlines and open space. Parks Victoria’s primary responsibility is to ensure parks are healthy and resilient in a time of climate change. Our conservation programs help to reduce threats to parks and improve the health of the natural environment.

Management planning • the draft management plan Objective for parks and reserves Management planning involves in Victoria’s far south-west Conserve and protect park engaging with the community (including the Cobboboonee, to understand the values and and waterway ecosystem Lower Glenelg, Mount Eccles challenges to Victoria’s parks and and Mount Richmond national resilience waterways in order to develop parks, Cape Nelson, Dergholm a management strategy to restore and Mount Napier state parks, and maintain healthy parks while Discovery Bay Coastal Park providing opportunities for people and Discovery Bay Marine to enjoy and appreciate parks. National Park) was finalised During 2012–13, work progressed for public consultation on several large planning projects • preparatory work was carried involving multiple parks: out ahead of management • the draft management planning commencing for plan for the Greater Alpine a range of parks and other national parks (which covers areas in the River Red Gum the Alpine, Baw Baw, area (including Barmah, Errinundra, Mount Buffalo Gunbower, Lower Goulburn, and Snowy River national Murray-Sunset (part) and parks, Avon Wilderness Park Warby-Ovens national parks, and Tara Range Park) was Leaghur State Park and Gadsen further developed pending Bend, Kings Billabong, input from the new Alpine Murray-Kulkyne and Advisory Committee Nyah-Vinifera parks). Parks Victoria Annual Report 2012–2013 Page 11

In addition: are placing pressure on the Parks Victoria coordinated fragile vegetation on the statewide pest programs with • the management plan for lake shores the Australian Deer Association the newly named Kara Kara and Sporting Shooters Association National Park was submitted • Merri Creek Marran Baba Australia in the Alps, East for final approvals Parklands – publishing a final Gippsland and along the Murray management plan • the Marine Protected Areas River. These programs have Program Plan 2012–2014 • continuing work on draft provided both opportunities for was completed and is management plans for Yarra hunters and the effective delivery guiding implementation Bend Park and the Pines Flora of control programs of management activities and Fauna Reserve. to meet mutual outcomes. in marine national parks, In 2012–13, several innovative marine sanctuaries and other Invasive plant and projects commenced in marine protected areas animal management collaboration with key partners • the master plan for Point Management of invasive plants including the development of Nepean National Park, and animals to protect natural an aerial shooting program with completed last year, was and cultural assets continues Parks and finalised and released to be a major area of work. Wildlife Service and engaging with the Sporting Shooters • a discussion paper was Invasive plants Association to a develop a more released containing options strategic approach to invasive for changes to the areas In 2012–13, Parks Victoria animal control. currently available for dog implemented around 200 invasive walking in the Mornington plant programs across the parks The Good Neighbour Program Peninsula National Park. estate, treating 104,000 hectares. continued to deliver benefits Examples of works around at the interface between parks Other planning relating to parks the state are outlined on the and private land and delivered and visitor use included: following page. outcomes in the interests • community consultation to of private land by implementing assist the preparation of the Parks Victoria works 43 projects across 245,000 hectares Shipwreck Coast Master towards long-term, with a strong focus on rabbit Plan, in partnership with landscape-scale and fox control. Corangamite and Moyne strategies informed Strategies to manage the impacts Shires and Tourism Victoria. by the most effective of horses in the Alpine and Barmah • finalising the Lower Ferntree control methods. National Parks progressed. Gully Picnic Area Precinct Our invasive pest Parks Victoria commenced Plan, which proposes community consultation on wild modifications to the car park management programs horse management strategies and entry points to resolve aim to improve the in the Alps and with co-chair critical traffic circulation and condition of high Yorta Yorta Nation Aboriginal congestion issues value environments Corporation, worked with the • commencing the Grampians and ensure the community-based Barmah Horses Peaks Trail Master Plan in survival of critical Advisory Committee to implement a Barmah Horse Management partnership with Grampians flora and fauna. Tourism, local councils and Program, which included Tourism Victoria Invasive animals furthering the understanding of the social and heritage • finalising traffic management In 2012–13, around 150 invasive values of Barmah Horses and and visitor safety planning animal projects were implemented the impact horses have on at Point Addis and Urquharts across the parks estate, treating environmental and cultural Bluff, Great Otway National around 1,104,000 hectares of the values. The work will aid the Park site planning for the Pink conservation estate. The species development of a strategy Lakes precinct, Murray-Sunset targeted included cats, rabbits, to manage the impact of horses National Park, with the aim goats, pigs, foxes, deer, horses in . of better managing the and feral cattle. increasing number of large Projects in the Alps, Grampians camper trailers and RVs which and continue to improve habitats. The Mallee Rangeland PAGE 12 ENVIRONMENT, LAND AND WATER

Invasive plants

Region Project

Statewide • The Good Neighbour Program invested in 49 projects covering 20,000 hectares to control invasive species in parks across land tenures. The program focussed on the highly invasive weeds Serrated Tussock, Blackberry and Broom, which have the potential to impact agriculture. Melbourne • In the Dandenong Ranges National Park and Arthurs Seat State Park there was an initiative to control a range of weeds – Sweet Pittosporum, English Holly, Ivy and Blackberry. Northern Victoria • In Kooyoora and St Arnaud state parks, the threatened Jericho Wire-Grass was protected from Horehound infestations and a new weed for Victoria, the Dandelion Crepis. In the other Box-Ironbark parks of Chiltern-Mount Pilot National Park, Castlemaine Diggings National Heritage Park and Paddy’s Ranges State Park, 700 hectares were treated for Blackberry, Bridal Creeper, Broom and Gorse. Eastern Victoria • The Protecting the Best co-operative initiative with the East Gippsland Catchment Management Authority focussed on eliminating priority weeds that threaten high value areas of Victoria’s Eastern Highlands, Far East Gippsland and New South Wales. In 2012–13, the program treated Cape Broom/Montpellier Broom, Blackberry, Greater Lotus, Ragwort, St John’s Wort, Hawthorn, Slender Thistle and Beach Daisy in the Alpine, Coopracambra, Croajingolong, Errinundra, Mitchell River and Snowy River national parks. • In the 8,236 hectares were treated for infestations of Blackberry, English Broom, Grey Sallow, Soft Rush, Spear Thistle, Sycamore Maple and Water Forget-Me-Not. • The English Broom project provided ongoing control of isolated infestations in the Alpine National Park. The project is working towards the eradication of these infestations once seed sources have been depleted. • Willow was treated across 1,300 hectares of Alpine peatlands with the help of volunteers. In the creeks flowing off the Bogong High Plains, 250 hectares of outlier infestations were also treated. Western Victoria • In the Grampians National Park, Conservation Volunteers Australia and Parks Victoria collaborated on a project to eliminate satellite populations of introduced Sallow Wattle in the Grampians National Park. The project was facilitated by the dedication of 8,708 volunteer hours this year. • As part of he Otway Eden project, 653 weed infestations covering 463 hectares were treated in the Anglesea Heath, Great Otway National Park and Port Campbell national parks, Otway Forest Park and other Crown land reserves. • As part of the Glenelg Eden project, 87 hectares of new and emerging weeds were treated in the Cobboboonee, Lower Glenelg and Mount Richmond national parks and Discovery Bay Coastal Park.

Recovery rabbit control program were baited for foxes as part completed through the federally- treated 108,443 hectares in the of the multi-partner Glenelg funded Caring for our Country Hattah Kulkyne, Murray-Sunset Ark initiative. program. The project focussed on and Wyperfeld national parks. pest plant and pest animal threats Parks Victoria and the Sporting to Ramsar values. The outcomes The Grampians Ark landscape Shooters Association undertook are encouraging, with increased scale fox baiting program was pig control and commenced sightings of Southern Brown implemented across 240,000 a project to better understand Bandicoots and Agile Antechinus hectares of public land (national and implement the effective use for the first time in over ten years. park, state park and state forest) of volunteer hunters in Barmah and 30,000 hectares of adjoining National Park. Partner agencies and stakeholders rural land in the Victoria Valley. were engaged to progress the Parks Victoria worked with Close to 1,700 fox baits have been development of a transparent the Port Phillip & Westernport taken from 1,048 bait stations approach to the management of Catchment Management across the project area. the impact of deer that balances Authority to protect wetland the need to address environmental At the Cobboboonee, Lower values in Western Port and Port impacts of deer while continuing Glenelg and Mount Richmond Phillip Bay (Western Shoreline) to provide deer hunting national parks and Discovery Bay and Bellarine Peninsula Ramsar opportunities. Coastal Park over 71,000 hectares sites. The four year project was Parks Victoria Annual Report 2012–2013 Page 13

Native animal management At Mount Eccles National Park, Foot and aerial surveys of Parks Victoria staff caught 160 kangaroos have been completed Programs to manage the impact female koalas, treating 137 with in woodland habitat in Mallee of kangaroo and koala populations contraceptive implants before parks. Population densities remain continued in several parks with releasing them back into the below target densities as an the support of key stakeholders, park. The annual population ongoing effect of the previous including independent technical survey has shown that the drought conditions. advisory committees. population of 4,873 koalas has At French Island, a contraceptive remained relatively stable since Threatened species implant program has replaced 2006. Ongoing monitoring management relocation practices. This activities show that the trees Parks Victoria works with the year 222 female koalas were remain in poor condition. Department of Environment implanted with contraceptives Monitoring in areas of the and Primary Industries, research and released. A tree condition Great Otway National Park partners and community assessment program started with continued showing that koala organisations to protect the University of Melbourne. populations in parks and private threatened species in the four Signs of recovery are now being land are causing severe canopy regions under Parks Victoria’s seen in Manna Gum habitat. defoliation. jurisdiction. Examples of some projects undertaken are outlined below.

Threatened species management

Region Project

Melbourne • Woodlands Historic Park – 24 Eastern Barred Bandicoots were released to a predator- proof enclosure within the park. This project was in partnership with Zoos Victoria and Conservation Volunteers Australia. • Mornington Peninsula National Park ocean beaches – Parks Victoria conducted monitoring and protected nesting sites of Hooded Plovers with Birds Australia and the Friends of the Hooded Plover. Northern Victoria • Murray-Sunset and Hattah-Kulkyne national parks – in partnership with the Victorian Malleefowl Recovery Group, Parks Victoria continued the monitoring of the level of breeding activity of the Malleefowl. Malleefowl are currently unusually abundant following several years of good rainfall •  – the Major Mitchell Cockatoo and its nest sites are being monitored. The decline of hollow-bearing in Callitris pines is a key threat to this species. Four purpose-built nest boxes have been installed as a trial. • Chiltern-Mount Pilot National Park – Around 40 captive-bred Regent Honeyeaters were released into the park in April 2013. These birds will provide another boost to the Regent Honeyeater population which travel large distances seeking forest flowering events for their food. Radio transmitters were attached to about 25 of the birds. Eastern Victoria • A collaborative survey has found the March 2011 floods in the Upper Murray region, including in Mount Lawson State Park, has benefited, the Booroolong Frog Litoria( booroolongensis). Populations have recovered including into sites from which they had disappeared during the previous drought. • Alpine National Park – A collaborative project to protect the tiny Shaw Galaxias (one of the rarest fish in Australia) was undertaken in the upper reaches of the Macalister River, including installation of a temporary barrier and the removal of more than 700 trout from above the barrier. Western Victoria • Little Desert National Park – under the Wimmera Catchment Management Association’s Orchid Conservation Project, volunteers from the Friends of the Little Desert and Australasian Native Orchid Society planted more than 400 Metallic Sun-orchids (Thelymitra epipactoides) • Grampians National Park – in November 2012 a large population of Smoky Mice was found in the Victoria Range. There were concerns that the February 2013 bushfire that burnt through 35,000 hectares of the Grampians, including 80 per cent of the Victoria Range may have impacted on the population. A study of the post-fire distribution and ecology of the Smoky Mouse is being studied in partnership with University of Melbourne and Museum Victoria. PAGE 14 ENVIRONMENT, LAND AND WATER

Habitat restoration Cockatoo (Wyperfeld National Australian Alps Cooperative Park) and Spiny Peppercress Management Program The 2012–13 habitat restoration (Lakes Beeac and Cundare program delivered approximately The Memorandum of Wildlife reserves). 52 kilometres of direct seeding Understanding in relation to the line, 188 hectares of manual Further conservation achievements cooperative management of the revegetation planting, 3 kilometres in 2012–13 include the Australian Alps national parks of habitat protection fencing remediation of sites following (MOU) covers eleven parks and and four river mouth openings. weed and pest control reserves in the Australian Capital The flagship Mallee restoration (Castlemaine Diggings National Territory, New South Wales and project contributed an additional Heritage Park, Point Nepean Victoria. In Victoria, these are 110 hectares of revegetation National Park and You Yangs the Alpine, Baw Baw, Mount in Wyperfeld National Park Regional Park), revegetation Buffalo and Snowy River national and with Trust for Nature of important heritage and parks and Avon Wilderness saw the revegetation of 100 riparian sites (Coolart Historic Park. The purpose of the MOU hectares of Ned’s Corner Station. Reserve and The Pines Flora and is to promote cross-border Fauna Reserve), river mouth cooperation in the protection The first helicopter surveys for openings to improve water and management of this highly goats in the Mallee occurred quality (Great Otway national significant conservation area. in 2012–13. The surveys aim parks and Port Campbell) and to gather more information to The Australian Alps Cooperative habitat manipulation to restore improve goat control efforts and Management Program wetlands and frog habitat better protect semi-arid woodlands. operates under the auspices (Plenty Gorge Parklands). The of the Australian Alps Liaison The conservation outcomes of habitat restoration program Committee. The committee habitat restoration activities include contributed to the protection seeks to provide land managers focussing on improved habitat and enhancement of significant with appropriate technical tools for threatened species such cultural sites such as the and sound scientific advice as Helmeted Honey Eater and Corroboree Tree Area at Albert in management reports and Leadbeater’s Possum (Yellingbo Park Reserve and nationally strategies to assist in achieving Nature Conservation Reserve), significant areas such as Hattah the objectives of the MOU in Southern Brown Bandicoot Ramsar site. There were also delivering best practice land (Bunyip State Park), Grey successful habitat restoration management across the region. Headed Flying Fox (Yarra Bend projects at Wilsons Promontory Parks Victoria represents Victoria Park), Eltham Copper Butterfly National Park, Cape Liptrap on the committee. (Pauline Toner Butterfly Nature Coastal Park, Western District Conservation Reserve), Powerful Lakes Ramsar site, and Lower Owl (Mornington Peninsula Maribyrnong River Land. National Park), Major Mitchell

(Left to right) Image 1: Eastern Pygmy Possum, photographed as part of the Grampians Bioscan. Photo David Paul, Museum Victoria

Image 2: The Eastern-barred bandicoots program with Conservation Volunteers Australia, Zoos Victoria and Parks Victoria saw the release of 24 animals at Woodlands Historic Park. Parks Victoria Annual Report 2012–2013 Page 15

Highlights of the program during River Red Gum parks Domestic firewood collection the year included: – Active Forest Health by the community was again Program permitted from several River Red • a forum involving scientists Gum areas managed by Parks and managers to share the The Active Forest Health Program Victoria, including five sites work of academic research is an initiative developed as part in Barmah National Park. with operational challenges of the creation of River Red Gum relating to management parks in 2009. Catchment and of biodiversity at a landscape Parks Victoria is working with the water management scale New South Wales National Parks Parks Victoria works in partnership • a two-day gathering of field and Wildlife Service and the with other agencies, catchment staff to consider the latest Department of Environment and management authorities, local issues in invasive plant Primary Industries to implement government and industry management with the focus an ecological thinning trial in to deliver programs to protect on control techniques for Barmah and Murray Valley (NSW) and enhance Victoria’s parks Ox-eye Daisy, an emerging National Parks. Arising from and waterways. threat to the Alps the Victorian Environmental Advisory Council River Red Gum • the preparation of a recommendations, the trial During 2012–13 the statement on the cultural is seeking to assess whether majority of Victoria’s and spiritual values of the ecological thinning can maintain Australian Alps commenced rivers, wetlands and or improve forest health and in collaboration with floodplains were suitable habitat characteristics. Traditional Owners, to subject to a year The partners collaborated on support the Australian Alps a detailed scientific rationale, of average to wet National Heritage listing developed a monitoring program conditions. • the development of a suite of and completed pre-thinning Australian Alps e-publication monitoring. The project has been Some systems experienced tools, including on-line touring referred for further assessment natural flooding, providing the maps and iPad service displays under the Commonwealth opportunity for the recovery of at three alps visitor centres Environment Protection and plant and animal populations Biodiversity Conservation Act 1999. following the severe drought • the gathering of technical experienced since 1997. experts in walking track A number of planned burns management from in Red Gum Forest areas were In 2012–13, over 22,000 million government agencies and undertaken in spring, late litres of environmental water external stakeholders to help summer and autumn. The burns was delivered to wetlands and deliver best practice. were conducted for both strategic river systems that are part of, and environmental outcomes. or adjoining, Parks Victoria-

Image 3: Living Murray Barge pumpstation at Hattah-Kulyne National Park. Photo Brendan Rodgers. PAGE 16 ENVIRONMENT, LAND AND WATER

managed areas. Sites that Work associated with the phase- In June, scientists received environmental water out of grazing from streamsides from Museum included Boals Deadwood in in the new River Red Gum parks Victoria, Deakin Barmah Forest, Gunbower Creek continued, in particular the and wetlands within the North negotiation of agreements with University and Parks Central and Mallee Catchment various licensees to erect fences Victoria undertook Management Authority regions. and off-stream water systems. a comprehensive The watering was coordinated Parks Victoria delivered the third biological survey of by the Victorian Environmental year of works in accordance the Twelve Apostles Water Holder, which works with a three-year agreement Marine National Park. in partnership with waterway with the Port Phillip and Western managers to integrate Port Catchment Management The underwater “bioscan” environmental watering with Authority to protect and improve surveyed 20 kilometres of river, wetland and catchment the environmental values within coastline, extending from the management activities to achieve the Western Port Catchment. Twelve Apostles Marine National the best ecological outcomes. Park to the Arches Marine In the Alpine National Park, from Sanctuary. The survey revealed After years of planning, Parks the Bogong High Plains to Davies rare sightings of hundreds of Victoria delivered major structural Plain, Parks Victoria participated species including rich fish life, works at Hattah Lakes (Hattah- in the control of peatland weeds. crayfish, Port Jackson sharks Kulkyne National Park) during and colourful coral gardens. 2012–13 to enable the efficient Protecting marine values Scientists documented this use of environmental water and A number of established diverse underwater world maximise ecological benefits. projects continue to improve with thousands of images and These works form part of the the knowledge base that hundreds of hours of spectacular Living Murray initiative and underpins the management of video footage. constitute Victoria’s largest Victoria’s marine national parks environmental project. Works Parks Victoria and Deakin University and sanctuaries. Using new also commenced at Lindsay– completed a research project to information gathered through Wallpolla Islands (Murray Sunset carry out hydroacoustic mapping research, monitoring programs National Park) and Hipwell Road of Wilsons Promontory Marine and other sources, Parks Victoria (), with National Park. This research updated the original marine all site-specific infrastructure provided invaluable data to natural values reports developed funded through the Murray complete marine mapping of in 2003 for all marine national Darling Basin Authority’s Living the marine national parks and parks and sanctuaries, which Murray Environmental Works sanctuaries. A study of one of were released in 2012–13. and Measures Program. the largest Australian fur seal breeding populations in Victoria on Kanowna Island at Wilsons Promontory National Park. Image 4: Parks Victoria Responses to marine pests staff joined tour operators and continue to forms a major part stakeholders to remove Northern of Parks Victoria’s research focus. Pacific Seastars at Over the past year, the organisation Pope’s Eye, Port Phillip. continued to engage in activities to control populations of Northern Pacific Seastars (Asterias amurensis). Research was undertaken to inform management of the species in Tidal River Estuary, Wilsons Promontory National Park, including a genetic analysis of Seastar populations in the river for comparison with populations in Port Phillip Bay. Parks Victoria conducted monitoring surveys for the species in Tidal River in the Wilsons Promontory National Parks Victoria Annual Report 2012–2013 Page 17

Park, Shallow Inlet Marine and particularly boaters and fishers. Staff developed new monitoring Coastal Park, Wilsons Promontory This has resulted in the development methods and guidelines for the Marine National Park and Wilsons of improved signage for boat Sea Search community-based Promontory Marine Park. ramps and other key access points monitoring program. This program and, in sheltered waters, the was conducted in eight marine Parks Victoria worked with installation of in-water piles national parks and sanctuaries. Fisheries Victoria in 2012–13 to to better mark the boundaries assess marine compliance issues of protected areas. Research program and opportunities and to develop an integrated compliance plan. The marine monitoring program Parks Victoria’s Research Partners Parks Victoria contributed to the aimed to provide information Program aims to gather information Victorian Recreational Fishing on the status of natural values to ensure evidence-based Guide App, which includes a new and the effects of threatening decision-making. Collaborative feature to allow users to locate processes. Monitoring programs applied research with universities the nearest marine national park spanned many of the marine and other research institutions or marine sanctuary, when out national parks and marine continues to provide valuable on the water. sanctuaries including Point information for park managers. Addis Marine National Park and Parks Victoria reviewed signs and During the year, new research Jawbone and Ricketts Point other tools to communicate the was initiated to address a number marine sanctuaries. boundaries of all marine national of important park management park sanctuaries to the public, questions. Projects included:

Research program

Region Project

Statewide • A review of threats and management needs for the protection of Hooded Plover across the state Melbourne • A study to improve understanding of habitat use and management of the impacts of predation by Little Ravens on other native bird species in the Port Phillip Bay (Western Shoreline) and Bellarine Peninsula Ramsar Site • A study of factors associated with changes in the size and structure of the Eastern Grey Kangaroo population at Northern Victoria • Research to examine the resilience of flora and fauna in the Barmah, Gunbower, Hattah-Kulkyne and Murray-Sunset national parks during major drought periods • Research to better understand how fire and flood patterns in Gunbower National Park have changed following European settlement Eastern Victoria • Two projects in the Alpine National Park, which focussed on improving surveillance and management for Hawkweeds and Willows, which pose a major threat to biodiversity in alpine and sub-alpine ecosystems across Victoria • A project to provide a better understanding of the abundance of grazing species and how they influence vegetation recovery following fire on Yanakie Isthmus in Wilsons Promontory National Park Western Victoria • Two projects in the Grampians National Park to examine the responses of aquatic and terrestrial fauna to fire and flood and identify critical refuge habitats to enable recovery of fauna. A further project in Grampians National Park examined the Sallow Wattle expansion and what this means for other vegetation • A collaboration between Parks Victoria and the Museum of Victoria to undertake a bioscan of sections of the Grampians National Park. PAGE 18 ENVIRONMENT, LAND AND WATER

This new research adds to a and threats at targeted locations Planned burning guides for the number of established projects across parks and reserves. 2003 Alpine fires and the 2006–07 that are designed to improve Great Divide fires are also informing Monitoring undertaken management of Victoria’s fire management planning. through this program included parks and reserves by building assessments of the condition Ongoing monitoring programs understanding of the areas. of native vegetation to better examining the effects of fire Some on-going projects include: understand the level of pest regimes on biodiversity are • three projects assessing plant infestation and the applied in parks and reserves the impacts of fire on identification of selected across Victoria. Programs such examination of biodiversity species of threatened and as “HawkEye”, Landscape Mosaic and vegetation structure other native wildlife. Burn monitoring and pre and in the Alpine, Great Otway post-fire monitoring continue and Heathcote-Graytown Ecological fire to guide efforts to improve fire national parks preparedness, while reducing In 2012–13, progress was impacts on biodiversity. The key • evaluation of the effectiveness made towards determining areas for the HawkEye program of techniques for preventing appropriate long-term ecological include the East Gippsland, the spread of Phytophthora fire regimes through the Mallee and Otways parks cinnamomi in Brisbane development of landscape-scale and reserves. Ranges National Park fire ecology assessments and risk assessments. This information • a multi-partner project to build is used throughout Victoria as a greater understanding part of integrated fire management of the genetic connectivity and to inform fire operations plans. of populations of different A significant number of parks species of birds among across the state are now assessed. patches of remnant vegetation in fragmented A risk-based landscape-scale fire landscapes across Victoria management modelling case study, which has been undertaken • research to evaluate the in the Otways, is being rolled out feasibility and application across the state through the of adaptive management Department of Environment and approaches for restoration Primary Industries-led bushfire of semi-arid woodland risk landscape teams. This vegetation in Wyperfeld provides strategic-level ecological National Park and other input into fire management environments in Murray- planning. Sunset and Wyperfeld national parks Parks Victoria’s • a study of the ecology and conservation habitat use of insectivorous bats in the Greater Melbourne objectives are being area to identify areas of incorporated into fire critical habitat and inform ecology planning in how best to preserve the Greater Grampians Melbourne’s bat fauna. landscape, including Grampians National Monitoring Park, and Black Monitoring is essential to Range State Park understanding, evaluating and and Barwon-Otway improving the management of Victoria’s parks and reserves. landscape, including Parks Victoria’s Signs of Healthy Great Otway Parks monitoring program achieves National Park. this through the establishment and implementation of systematic monitoring of biodiversity assets Parks Victoria Annual Report 2012–2013 Page 19

Culture and Heritage

The ecological landscape captures and reflects a rich cultural landscape. Creating and celebrating spiritual or emotional connections with this cultural heritage has a significant community benefit. Parks Victoria manages places with a rich and diverse Aboriginal history that continue to form part of living Aboriginal culture. We also manage places with significance to more recent European history. Our approach is integrated and inclusive and reflects the shared nature of Victoria’s heritage.

Objective Caring for Country Traditional Owner Partnerships Parks Victoria is privileged to work Protect culture and heritage with many Victorian Traditional In 2012–13, Parks Victoria met in parks Owner organisations to manage its legislative obligations by their Country on behalf of completing assessments required the community. Some of these under the Aboriginal Heritage organisations are currently Act 2006 and Native Title Act in native title mediation. Parks 1993 completed emergency Victoria will continue to play works as required by the Heritage a critical role in working with Act 1995, and made significant Victoria’s First People to care progress to complete 2010–11 for Country together. cultural heritage flood recovery works in the Grampians and Wilsons Promontory national parks. PAGE 20 CULTURE AND HERITAGE

Working together to establish parks, Lake Tyers State Park Owner Land Management Board, strategic direction and the and Coastal which is the second board of its formation of Traditional Owner Park. Four indigenous cultural type to be established in Victoria, Land Management Boards has rangers were appointed to work following establishment of the been the main focus for 2012–13. on jointly managed land. The Gunaikurnai Traditional Owner The Yorta Yorta, Dja Dja Wurrung Gunaikurnai and Parks Victoria Land Management Board in 2012. and Gunaikurnai peoples are in developed a works plan to jointly Co-operative management joint management with Parks manage the Tara Bulga and arrangements are being Victoria following outcomes under Morwell nationals parks. implemented in north-western the Traditional Owner Settlement Key projects implemented during Victoria, where Parks Victoria Act 2010. The Barengi Gadjjin 2012–13 with Traditional Owners continued to work with the and Gunditjmirring peoples are include the development of the Barengi Gadjin Land Council in cooperative management with Ngootyoong Gunditj Ngootyoong Aboriginal Corporation (the Parks Victoria. Mara South West Draft representative body of the Management Plan, involving the Wotjobaluk, Jaadwa, Jadawadjali, A highlight of the year was the Budj Bim Council and Gunditj Wergaia and Jupagalk Peoples) signing of the Dja Dja Wurrung Mirring Traditional Owners. This in the co-operative management Clans native title settlement plan covers Indigenous Protected of Little Desert and Wyperfeld agreement on 28 March 2013. Areas, Indigenous-owned land national parks and Lake This provides for the granting of and parks and reserves. Albacutya Park. Aboriginal title over, and for joint The strong partnership continues Parks Victoria continued to work management of, Greater Bendigo at Mount Eccles National Park with other Traditional Owner National Park, most of Kara Kara with the re-appointment of the groups across the state in the National Park, and Kooyoora and Budj Bim Council in 2012–13. management of various parks. Works in the park this year These included: Paddys Ranges state parks in north include upgrades of visitor • in the Alps, Parks Victoria central Victoria. facilities construction of two worked with the Traditional new gas barbecues and shelters, In East Gippsland, the Owners on a range of improvements to the shower and Gunaikurnai Traditional Owner management issues toilet blocks, the sealing walking Land Management Board was associated with various parks of tracks and maintenance established. This will govern the of the Budj Bim Trail. • in southern Victoria, the joint management arrangements Wurundjeri, Bunurong for Mitchell River, Tarra-Bulga, Parks Victoria supported the and Boonwurrung Peoples The Lakes and Snowy River work to establish of the Yorta were engaged in cultural (New Guinea Caves) national Yorta The Yorta Yorta Traditional heritage assessments at

Image 5: NAIDOC week at Barmah National Park. Photo by Tracey O’Keefe. Parks Victoria Annual Report 2012–2013 Page 21

various locations as part Parks Victoria established an Living heritage of the Melbourne Bushfire Aboriginal Leadership Team In 2012–13, Parks Victoria began Protection Program in 2012–13, which provides a number of significant living a skill-based, high level • at Wilsons Promontory heritage works and completed of support and advice to the National Park – the Boon several important projects Chief Executive and Executive Wurrung, Bunurung and around Victoria. Team on Aboriginal Values and Gunaikurnai Peoples, how they relate to management under a memorandum of Country. of understanding between Parks Victoria and the Traditional Owners.

Living heritage

Region Project

Melbourne • Completion of the $1.5 million Kokoda Memorial Terrace and Wall project at the Dandenong Ranges National Park. Parks Victoria worked with members of the 39th, 2/14th, 2/16th Battalions Associations to establish a Kokoda memorial. • After 140 years the roof of the Werribee Park Mansion was replaced using matching materials and traditional workmanship. Solar panels were installed in the roof to offset some of the power requirements of the mansion. • Parks Victoria installed a vintage tram at Wattle Park in March 2013, replacing the one burnt by vandals in 2011. The Bendigo Tramways Trust reconditioned the tram with a fresh coat of paint and new fittings to suit its outdoor home. The number 861 “W-Class” tram, which was first used in the World War 2, was donated by the Victorian Government. Northern Victoria • Parks Victoria completed a land use history research project in the River Red Gum parks. • As part of Australian Heritage Week, Parks Victoria hosted a community fair on Sunday 14 April 2013 to celebrate the 150th Anniversary of Day’s Mill, Murchison. Two thousand visitors attended the Explore the Past: Live the Present: Day’s Mill and Farm 150th Anniversary celebration. • A cultural landscape mapping project in the Castlemaine Diggings National Heritage Park has identified and mapped a number of historic features in the park. This project will inform future park and fire management. Eastern Victoria • o T mark 150 years of the Gabo Island Lighthouse, Parks Victoria and the Australian Maritime Safety Authority (AMSA) unveiled a commemorative plaque on the island. • Reconstruction of the historic entrance arch to the Buchan Caves Reserve was completed. • Parks Victoria and the Victorian High Country Huts Association completed repairs and maintenance to historic huts at Moroka Hut and Wallace Hut in the Alpine National Park and Frys Hut in the Howqua Hills Historic Area. Western Victoria • Six advanced trees were replaced in the Avenue of Honour to commemorate the 1882 mining disaster at the Australasian No.2 Mine Historic Area near Creswick. Fencing works around the mine were also undertaken. • At Cape Nelson Lighthouse Reserve, Parks Victoria oversaw the repair of stonework and paths and the extensive plumbing works to upgrade both the potable water and fire service supplies. • At Cape Otway Lightstation, a range of conservation and repair works were completed on the historic buildings including rust treatment and repainting of the exterior of the lighthouse lantern, roof plumbing repairs to the lightkeeper’s cottages and telegraph station and repairs and painting of timber fences. PAGE 22 CULTURE AND HERITAGE

Visitor and Community

Parks and waterways play an important role in enhancing and improving quality of life in both urban and regional areas. Access to open spaces and the natural environment can significantly influence levels of physical activity. As the social and economic challenges created by increasing levels of lifestyle-related illnesses continue to rise, creating connections between parks and people is an important part of the preventative health solution. The connection between community health and wellbeing and a resilient park system is expressed by Parks Victoria as Healthy Parks Healthy People.

Objective Visitor monitoring During the year, Parks Victoria and research undertook monitoring of visitor numbers across the parks estate To deliver opportunities for The Visitor Number Monitor is and conducted more detailed people to use and enjoy their a biennial survey that estimates site-based monitoring at Wattle, and then reports on trends parks and waterways Braeside and Lysterfield parks, relating to the number of visits Cardinia Reservoir, Dandenong to Victorian national and state Valley Parklands and Croajoingalong parks, metropolitan parks as well and Yarra Ranges national parks. as piers and jetties around the bays. As part of the assessment of visitor In 2012–13 Victoria’s parks and numbers to parks, monitoring waterways attracted 95.8 million included the level of use of the visits. Of these visits, 51.2 million Port Phillip and Western Port were to parks (including 34.8 bays and the use of marine million visitors to national and national parks. state parks) and 44.6 million were to piers and jetties around the bays. Parks Victoria Annual Report 2012–2013 Page 23

Improving and private sector investment in the • safety compliance upgrade to developing facilities Quarantine Station. The works the historic Upper Teddington program included upgraded Reservoir dam wall in the A particular focus in 2012–13 roads, car parks and essential was implementing the services and infrastructure to Government’s commitment • repairs to the One Tree Hill give visitors better access to the to encourage more people to Lookout at the Greater historic Quarantine Station. An visit and enjoy our world-class Bendigo National Park ongoing buildings maintenance natural tourism attractions program to preserve the • road repairs at various while maintaining important Quarantine Station’s many locations including the environmental safeguards. historic buildings has continued Mitchell River and Lake The Minister for Environment alongside the completion Eildon national parks and and Climate Change released of conservation projects to the Sky High access road guidelines for tourism investment the 1840’s Shepherds Hut, in the Dandenong Ranges of significance in national parks, Quarantine cemetery fence, National Park following the Government’s quarantine boundary fence • completion of an upgrade response to the Victorian and crematorium. to Lyrebird Track at the Competition and Efficiency Parks Victoria’s major Dandenong Ranges National Commission’s inquiry into works program comprised Park to form a loop walk Victorian tourism. Legislation approximately 147 projects. with the Memorial Walk was introduced into Parliament Major asset repair and renewals (The 1000 Steps). to provide for leases of up during 2012–13 included: to 99 years for sensible and New asset works included: • renewal of the Mason Falls sensitive tourism proposals. The • completion of new visitor and Jehosaphat Gully Picnic Government announced a $7 facilities, a fishing pontoon Areas in Kinglake National million investment in the Mount and access at the Devilbend Park following the 2009 Buffalo Chalet to refurbish the Natural Features Reserve on wildfires, including picnic original building and provide a the Mornington Peninsula day visitor centre and potentially tables provided by the local a café and to make the site ready branch of Men’s Shed • extension of the Clarke for future investment as the Shields Pavillion at Albert Park • upgrades to toilets at opportunity arises to provide improved change Johanna Beach, Parker River rooms, toilets, a kitchen and and Aire River in the Great Significant essential services clubroom, undertaken with Otway National Park and an works were undertaken at the funding contributions from upgrade of the waste water Quarantine Station in Point sporting clubs Nepean National Park, and an treatment system at the expressions of interest process summit toilet in the Arthurs commenced for appropriate Seat State Park

Image 6: A new car park built as part of significant works undertaken at Point Nepean National Park. PAGE 24 VISITOR AND COMMUNITY

Image 7: The safety on piers campaign. Parks Victoria Ranger Mark Morrisy and Para-Olympian Nazim Erdem, who became a paraplegic as a result of a pier diving accident in his 20s.

• construction of a new toilet improved access for people status of local port infrastructure along the Great Ocean Walk with disabilities it manages and the priorities for at Cape Otway Light Station remedial works. • upgrade works to boat • establishment of the Kokoda launching and berthing A priority in the 2012–13 year Memorial Terrace and Wall facilities at Patterson River was the delivery of safe bays and at the Dandenong Ranges near Carrum access to critical ferry services National Park. and recreational vessels. Parks • progress in a major project Victoria removed 141,662 m³ to renew and improve the Improving and maintaining of sand in order to maintain Mornington Pier breakwater. bays and waterways safe charted depths at seven • commencing works to St locations across Port Phillip Parks Victoria is responsible Kilda Pier precinct to improve and Western Port. for the management of the public access and build recreational use of Port Philip, In its role as manager of many of breakwater infrastructure. Western Port and Port Campbell, the piers and jetties around Port including the management Other achievements included: Phillip and Western Port, Parks of piers, jetties, moorings, Victoria continued to promote • supporting and providing dredging and the placement and the dangers of diving off piers advice to the Department maintenance of navigation aids with a targeted media campaign of Transport, Planning and for recreational boating to agreed over the summer. Local Infrastructure for the standards and in accordance with development of a Local Swim Safe, a partnership with the Port Management Act 1995 Ports Strategy Life Saving Victoria and Parks and the Marine Safety Act 2010. Victoria, enabled the delivery • completing new boating Works carried out in 2012–13 to of aquatic education programs zones for Port Phillip between improve the infrastructure of the to teach the community about Mount Martha and Portsea bays included: safety in inland and coastal on the Mornington Peninsula. waterways. More than 1000 • renewal of the Point Lonsdale Central to Parks Victoria’s culturally and linguistically Jetty, including replacement functions as local port manager diverse community members of handrails and new fishing is the maintenance and participated. rod holders improvement of marine assets • upgrade of the Hastings Pier, for commercial and recreational including refurbishment of users. Parks Victoria worked the heritage timber sections closely with the Department of and replacement of the Transport, Planning and Local lower landing with a floating Infrastructure in 2012–13 to pontoon for safer access and communicate the asset condition Parks Victoria Annual Report 2012–2013 Page 25

Image 8: The Tarrengower Cactus Control Committee contributed 1,331 hours to the removal and treatmnent of Wheel Cactus in the Maldon Historic area and surrounds. Across 10,000 hectares of infected land, the group has reduced the impact by around a third since being established around 6 years ago.

Asset Management Volunteer contribution: 2007–2013 (hours) Parks Victoria’s asset portfolio consists of over 28,000 2007–08 191,000 terrestrial and maritime assets. 2008–09 161,094 Asset management continues 2009–10 192,645 to be a significant challenge. 2010–11 190,819 Asset management activities 2011–12* 149,521 in 2011–12 were targeted at meeting risk management 2012–13 211,640 objectives and maintaining * Recorded volunteer hours in 2011–12 did not truly reflect actual critical services in high priority volunteer hours due to protected industrial action halting the recording parks and waterways. Assets on of volunteer hours in some park locations. land managed by Parks Victoria as Committee of Management Volunteers are recognised in the financial The remaining 10 per cent was contributed by educational statements of this report. Assets Each year, friends, corporate and institutions, corporate groups management by Parks Victoria special interest groups, individuals, and others. on behalf of the Crown are educational institutions and recognised by DEPI in its partner organisations provide Fifty-six per cent of volunteering financial statements. invaluable support to Parks occurred within the Melbourne Victoria by dedicating time to Region, with the remaining Tracks and trails improving the parks network. 44 per cent spread across the To protect the integrity of tracks This year 218,970 volunteer hours Eastern (23 per cent), Northern across public land, Parks Victoria were recorded across 180 parks (12 per cent) and Western and DEPI again worked closely and reserves. This translates (9 per cent) regions. with Four Wheel Drive Victoria to 29,751 volunteer days and to implement seasonal road is the equivalent to Parks Victoria Campground Host employing an additional 123 closures. These measures serve Parks Victoria welcomed 28 full time staff members. to protect the environment and Campground Host volunteers catchments from runoff and Friends, community and in 2012–13. These volunteers protect visitors from using recreational user groups made were placed in peak visitation tracks that can get dangerous up 77 per cent of all volunteer campgrounds in 11 national and in winter weather conditions. hours. Partner organisations state parks during the summer contributed 7 per cent of the and Easter holiday periods. volunteer effort and individual The hosts provided assistance volunteers accounted for to field staff and campers. This 6 per cent of all volunteer hours. year the Victorian program PAGE 26 VISITOR AND COMMUNITY

provided two hosts to assist Walk field staff, hikers and Healthy Parks Healthy with the New South Wales campers, providing information People Grants Campground Host program. and assistance. Parks Victoria’s Healthy Parks This further strengthened Parks Parks Victoria once again Healthy People Grants were Victoria’s partnership with partnered with Four Wheel again available to community the New South Wales Parks & Drive Victoria to run the highly groups to develop and implement Wildlife Service. successful 4WD Camp Host environmental projects in parks Parks Victoria and Deakin program. Four Wheel Drive with the help of local Parks University students worked Victoria members participated Victoria staff. In 2012–13, 122 together on the Roving in the program in the Alpine, Healthy Parks Healthy People Campground Hosts initiative, a Barmah, Brisbane Ranges, grants were issued, totalling pilot program in the Great Otway Croajingolong, Grampians, $385,000. These included: National Park. As part of the Great Otway, Lake Eildon and pilot, six students applied and Snowy River national parks spent time with Great Ocean and other parks.

Healthy Parks Healthy People Grants

Region Project

Melbourne • Kinglake National Park – Friends of Lyrebirds – to collect images and footage of the 2013 Lyrebird survey for display at the park office visitor centre to encourage future patronage of the survey and produce an entrance sign to head the recently rebuilt Lyrebird Circuit Track at the Masons Falls picnic area • Yellingbo Nature Conservation Reserve – Friends of the Helmeted Honeyeater – to restore degraded sections of Woori Yallock Creek important to the Helmeted Honeyeater as future alternative breeding sites • The Pines Flora & Fauna Reserve – Friends of The Pines Flora and Fauna Reserve – to remove woody weeds and plantings of local flora which will encourage endemic species to re-colonise areas Northern Victoria • Gunbower National Park – Four Wheel Drive Victoria – to promote sustainable four wheel driving in Gunbower National Park through developing a four wheel drive guide to the park, hosting an event to launch promotional material and organising a 2013–14 Campground Host program in the park Eastern Victoria • Mitchell River Silt Jetties – Friends of Parks and Reserves of the Gippsland Lakes – to restore the Mitchell River Silt Jetties by revegetating areas and controlling unrestricted vehicle access while still allowing pedestrian access Western Victoria • Great Otway National Park – Cape Otway Conservation Ecology Centre – to survey abundant koala populations and monitor tree canopy condition • Southwest coastal parks and reserves – Friends of the Great South West Walk – to repair track surface, slash track, trim trackside vegetation and maintain campsites, water supplies, directional and interpretive signs, equipment and tools in liaison with volunteers and the community • Grampians National Park – Summerday Valley – Cliffcare (Victorian Climbing Club) – to repair tracks with boardwalks and dry stonework to combat severe erosion and protect tree roots on highly trafficked track sections

Health Partnership success Foundation in partnership with Healthy Parks Healthy in the Barwon Region – Parks Victoria and is sponsored People, Active in Parks Active In Parks by Medibank Community Fund. The Healthy Parks Healthy Active In Parks provides The program won the 2013 People Active in Parks initiative physical activity programs and National Preventative Health continued to deliver programs to promotes parks as settings Award, which encourages improve the physical and mental for better health. Supporting leadership in the area of wellbeing of communities with and encouraging health and preventive health, and recognises more than 2,000 participants. community leaders to enhance sectors of the Australian community The program focuses on improving their services through physical that work to promote health access and increasing visitation activity in parks, the program was and well-being. to parks by groups and individuals initiated by the People and Parks that are underrepresented in Parks Victoria Annual Report 2012–2013 Page 27

(Left to right) Image 9: Engaging with culturally and linguistically diverse communities at Brimbank Park

Image 10: A new children’s beach wheelchair at Wilson Promontory National Park proved popular

parks such as the aged, the Eleven group walks were held for five unemployed adults economically disadvantaged, with Blindsports Victoria in parks with disabilities. The aim of the culturally and linguistically diverse around Melbourne and Geelong program was to provide practical communities, people with a for visitors who are blind or experience in horticulture that disability and youth. vision impaired, accompanied may lead to paid employment. by trained volunteer park Park access for visitors companions. As part of the Engaging with culturally with disabilities program, a camp at Tidal River, and linguistically diverse Wilsons Promontory National communities The initiative to make all-terrain Park, was held for eight visitors wheelchairs available in parks This year saw the revival of who are blind or vision impaired. for visitors with disabilities the historic Werribee Kitchen continued this year. Children’s In partnership with carer support Garden, which is once again full beach wheelchairs were provided organisation Brainlink, Parks of thriving vegetables and herbs in December to the Wilsons Victoria held four group activities thanks to a group of volunteers Promontory National Park and in parks around Melbourne for from the ethnic community of Cape Conran Coastal Park. carers of family members with the Wyndham area. A registered dementia. Activities provided training organisation is providing Trailrider chairs are also now in the parks included laughter on-site classes in vocational available at and yoga, park walks and art English and horticulture due to partnerships with local therapy sessions. A volunteer accreditation. The project is government, in parks in the areas conservation program was partnership between the Adult around the Hepburn, Moorabool established in the Grampians Multicultural Education Service, and Surf Coast shires. National Park for 14 adults Parks Victoria and the Werribee with intellectual disabilities in Mansion Hotel, the latter of Parks Victoria entered partnership with community which will have a share of the two teams in the organisation McGregor House. fresh produce for its restaurant. 2013 Trailwalker The aim of the program was to Additional funding through event in April. The provide volunteer opportunities Skills Australia is supporting the in parks such as Sallow Wattle formal training component of the purpose of the team weed removal and other park project. Should this project prove entries was to raise maintenance projects. successful there are plans to public awareness replicate it in other parks across Among the many other programs the Western Melbourne District of the all-terrain in 2012–13, Parks Victoria and in line with Parks Victoria’s wheelchairs in parks Eastern Access and Community Healthy Parks Healthy People and to support Health worked together to philosophy. Oxfam in its establish a volunteer program fundraising efforts. at Maroondah Reservoir Park PAGE 28 VISITOR AND COMMUNITY

(Left to right) Image 11: Parks Victoria’s TrailRider team in the OXFAM Trailwalker. Photo courtesy OXFAM.

Image 12: The Werribee Kitchen Garden sprang back to life with the help of volunteers.

It was beautiful and the walks were wonderful. It gave under the “Train the Trainer “me an inner peace. The environment was so soothing program” now set to deliver courses in the future. and therapeutic.” Participant, Gippsland Multicultural Services trip to Tarra Bulga Tourism

Parks Victoria provided Discover Youth Discover Parks grants were Supporting licensed Parks grants to 12 small provided to eight youth-focussed tour operators community organisations, community organisations. One As at 30 June 2013, 350 tour enabling more than 322 people of these grants enabled young operators were licensed. Of from culturally and linguistically people, inspired by Parks Victoria these, 77 per cent held a one- diverse communities, seniors managed parks, to write creative year licence, 20 per cent held and people with a disability to writing pieces, which were then a three-year licence and three participate in recreational and printed on posters to inspire per cent held a ten-year licence. social activities in 24 parks. others. Of the 350 licensed operators, In partnership with Springvale Parks Victoria and the Council 73 were new operators. Revenue Community Aid and Advice of the Aging held nine outdoor generated from licensed tour Bureau, Parks Victoria held two recreation sessions at Braeside operators for 2012–13 was park visits for 42 newly-arrived Park for 25 older adults. The $184,442 in application and culturally and linguistically aim of the program was to get use fees. diverse communities in South older adults physically active Tour operators provided activities East Melbourne. A group camp in parks and to provide social for 84,941 people during the was also held in the Upper Yarra opportunities for older people year – 26,539 adults and 58,402 Reservoir Park as part of the feeling isolated in the community. children. Bushwalking remains program. The aim of the program Activities provided in the park the most common activity offered was to introduce new arrivals to included bocce, T-ball, gym and by operators, with 44 per cent the health benefits and pleasure Tai Chi. offering it. Other activities include of visiting Victoria’s parks. Building staff capacity to engage bus tours (offered by 31 per Engaging younger and older with communities was a focus for cent), bird watching (offered by members of the community was the year with diversity training to 21 per cent) and coastal walking the focus of other programs assist staff engaging multicultural (offered by 16 per cent). this year. Parks Victoria and the communities and persons with a YMCA Victoria held a camp at disability. Approximately 85 staff Point Nepean Quarantine Station have attended the courses across with 14 disadvantaged youth from all regions, with 15 staff trained the Mornington Peninsula Shire. Parks Victoria Annual Report 2012–2013 Page 29

Image 13: The popular “Kids teaching kids” event at Point Nepean National Park

Walk Victoria’s Icons co-funded by the Australian The Junior Ranger Government and the Victorian Parks Victoria continues to lead program continued Bushfire Recovery Fund the promotion and development in 2012–13. Targeted of the Walk Victoria’s Icons • completion of the Mallacoota at primary school initiative. Achievements include: Coastal Walk, as part of the aged children, these East Gippsland Short Walks • completion of approximately activities attracted project, funded by Regional 30 kilometres of track Development Victoria. The 9,529 children and upgrades and new walking project was a joint initiative parents to 24 parks. track on the Great Ocean between Parks Victoria and Walk and commencement Additional resources were East Gippsland Shire. of the Great Ocean Road uploaded to the online student pedestrian underpass and link NatureWise learning resource, EnviroActive, track to extend the walk to which focus on marine and finish at the Twelve Apostles NatureWise is a program owned alpine habitats and provide Visitor Centre. These works and operated by Conservation information and photos to are part of a $4.2 million Volunteers Australia (CVA) which help students to learn about project funded by Regional provides certified ecotourism these habitats. Development Victoria, including products that combine nature- Parks Victoria organised a Kids upgrades of 23 kilometres of based tourism experiences with Teaching Kids event at Point existing track, re-alignment conservation activities. Currently Nepean National Park with 230 of 4.7 kilometres of track there are two NatureWise students from the Mornington in 2012–13. products operating in Victoria as part of the CVA-Parks Victoria Peninsula area. The event involved • significant progress has been partnership: Victorian Alps Owls students studying a chosen topic made on the first stage of the monitoring in Baw Baw National in the months leading up to the Grampians Peaks Trail, with Park and Tiger Quoll monitoring event and then preparing and upgrades to 13.5 kilometres in the Great Otway National Park. delivering a presentation to of walking tracks between schools at Point Nepean. Halls Gap to Borough Huts Education Campground via Rosea Hiker Campsite. Parks Victoria delivered face-to- face education and interpretation • completion of walking track programs to approximately upgrade works and new 19,220 visitors, including camping facilities at two sites 7,653 school students. on Falls to Hotham Alpine Crossing. The development of the multi-day walk was PAGE 30 VISITOR AND COMMUNITY

Visitor advice and bookings National Park recorded its highest Parks Victoria continued to occupancy ever, with more than support the Department of Parks Victoria provides information, 16,000 people staying overnight Environment and Primary advice and bookings services in 2012–13 – an increase of Industries’ planning for the to visitors to parks under its 16 per cent from last year. re-opening of Mount Buffalo management. Achievements Chalet. Works on-site included in 2012–13 were: Online bookings for camping and the removal of asbestos and the accommodation increased by • receiving 2,362,171 visits cataloguing of heritage items. 49 per cent in 2012–13. Twelve to the Parks Victoria website parks are now available to be Leases and licences • involving staff in 63 events booked online. around the state, with Ranger Parks Victoria finalised 86 Albert Park and Melbourne’s bays Roo appearing at 14 events agreements, including leases, and waterways were popular licences and various consents, • responding to 108,751 calls venues for events again this in 2012–13, and provided and 9,646 emails received year. In November, the Taste ongoing management support at the Information Centre of Melbourne festival moved for more than 450 lease and (13 1963). lakeside to Albert Park and was licence agreements across re-launched as an alfresco fine the state. Commercial operations dining event. Parks Victoria engages in a range Parks Victoria continued to work of commercial activities that with the selected a consortia led produce revenue to support the by Simon McKeon (The Arthurs agency. Seat Tourism Group) as the preferred tenderer to redevelop During the year, Parks Victoria and operate the closed Arthurs began a comprehensive review Seat ChairIift. The consortia of its user fees and charges using is finalising its concepts for the Department of Environment a contemporary all weather and Primary Industries’ Pricing gondola in preparation for a Framework for cost-recovery planning permit application. pricing of permits and fees for service activities on public land. Parks Victoria has continued to Fine weather over peak holiday work with preferred proponents periods this year resulted in high as they progress planning for occupancy in campgrounds tree-based adventure facilities across the state, particularly at at Yarra Flats and Toolangi. Wilsons Promontory, Lake Eildon and Cape Conran. Lake Eildon

Image 14: Visitors to the State Coal Mine Visitor Centre. Parks Victoria Annual Report 2012–2013 Page 31

Fire and Emergency Management

Helping parks and waterways and their surrounding communities to prepare for, respond to and recover from bushfires, floods and other emergencies is a key focus of Parks Victoria. Working with the Department of Environment and Primary Industries, Parks Victoria will continue to develop its fire and emergency management systems as climate change increases the severity and frequency of emergency events.

Objective Bushfire response Bushfire prevention Parks Victoria supported the To support bushfire prevention Prepare for, respond to and Department of Environment activities, Parks Victoria employed recover from fire and other and Primary Industries and the 177 seasonal firefighters to emergencies. Country Fire Association during complete bushfire prevention what was as an above average works such as slashing, clearing fire season. In 2012–13, fires roads and tracks and preparing affected the Alpine National Park infrastructure for the fire season. and reserves, Lower Glenelg Parks Victoria plays a significant National Park and the Grampians role in supporting the National Park. Department of Environment Over the season there were and Primary Industries to deliver 866 bushfires that burnt an Victoria’s annual planned burn area of 201,630 hectares. Parks program. For 2012–13, the Victoria contributed 126 full Department of Environment and time equivalent staff to support Primary Industries’ planned burn the bushfire response. The program target was 250,000 organisation also deployed staff hectares; 255,121 hectares was to and New South eventually treated. Of the treated Wales to support agencies areas, 108,344 hectares was responding to bushfires around under Parks Victoria’s statutory Hobart and Shoalhaven. control. PAGE 32 FIRE AND EMERGENCY MANAGEMENT

Melbourne Bushfire Work at Wilsons Promontory In February 2012, floods in Protection Program National Park consisted of the north-eastern Victoria caused repair and reinstatement of significant damage to park Parks Victoria leads the retaining structures, drainage, infrastructure, roads and Melbourne Bushfire Protection road formation and associated tracks. To date, 86.5 per cent Program on behalf of the works to repair the damage of damaged asset works are Victorian Government, an caused by the storm event complete, including the repair initiative established in 2009 of March 2011. Repairs were or replacement of 13 buildings, to improve bushfire preparedness completed at the Mount seven campgrounds, ten in Melbourne’s urban areas. Oberon Road, Telegraph Track pedestrian bridges, two vehicle and Summit Road at Wilsons bridges and kilometres of walking Under the program, 62 kilometres Promontory National Park. This trails and roads. of fuel break works, including two-year, $7 million project Heavy rain and strong winds required the application of 27 kilometres of new fuel breaks, caused damage to parks and innovative and cost-effective have been completed to improve reserves in Gippsland in June solutions at this remote and the network in the past financial 2012. In the past year, 66 challenging site. The Loo-Errn year. Thirty-five kilometres of per cent of works – repair Boardwalk and pedestrian bridge or replacement of nine roads and tracks have also been at Tidal River were also repaired campgrounds, eight car parks, upgraded to improve access after being almost completely 13 pedestrian bridges, one destroyed during the 2011 flood. to fire vehicles. vehicle bridge, three toilet blocks, Significant works were also 56 roads and 32 trails – have Parks Victoria worked closely with undertaken at the Grampians been completed and many the Department of Environment National Park. The Wonderland other projects are underway. and Primary Industries on the Loop Walk was repaired, which East Central Strategic Bushfire consisted of works to complete Risk Landscape planning across the Venus Baths Loop Walk the broader Melbourne area. and the re-opening of the Five Work also included collaborations Cascades Walk, linking Venus with Cardinia, Mornington Baths to Wonderland Carpark. Peninsula, Nillumbik and Yarra The past year has seen cultural Ranges shires to undertake works and heritage surveys and in shire-managed land adjoining assessments of all flood-affected parks to enhance the broader areas and the implementation fuel break network and reduce of priority rehabilitation projects risk across tenures. at the Grampians and Wilsons Promontory national parks and Flood Recovery along the Murray parks and In addition to completing fire reserves. This involved detailed recovery projects from the 2009 consultation with Traditional fires, considerable effort was Owner groups, many of which dedicated to the planning and were engaged to undertake the execution of the second year surveys and rehabilitation works. of the two-year flood recovery Traditional Owners and Parks program. Victoria staff inspected 70 In the 2012–13, works commenced Aboriginal heritage sites in the on 85 projects, with 80 projects Grampians National Park to of these completed and five determine the impact of the carried over into 2013–14. January 2011 floods. From the assessments, a program of works The focus of the recovery was developed and implemented program was to reopen the in April 2013 involving five highest priority sites and address Traditional Owner groups those sites that posed an and Parks Victoria cultural unacceptable public safety risk. heritage staff. Parks Victoria Annual Report 2012–2013 Page 33

A Sustainable Organisation

Parks Victoria plans for, monitors, delivers and reviews its operations to ensure effective on-ground services across the state. Parks Victoria works accountably within given resources and continues to drive business improvement through sound governance, risk management and business system development.

Objective Parks Victoria prides itself on equity, diversity and merit and Operate as a resilient, aims to ensure a safe and healthy respected and effective environment for its staff. The organisation has undergone park management agency significant reform including a voluntary departure package program over the past financial year.

Workforce profile

Ongoing Fixed term Casual Total employees

Employee Employee Employee Total FTE FTE FTE Total FTE (headcount) (headcount) (headcount) headcount June 2013 969 911.3 52 50.6 15 4.1 966.0 1,036 June 2012 1,025 967.9 68 66.5 16 2.6 1,036.9 1,109 PAGE 34 A SUSTAINABLE ORGANISATION

JUNE 2012 JUNE 2013 Fixed term Fixed term Ongoing Ongoing & casual & casual employees employees employees employees Employee Employee FTE FTE FTE FTE (headcount) (headcount) Gender Male 715 709.5 48.8 684 678.6 34.5 Female 310 258.4 20.2 285 232.7 20.2 Age Under 25 14 14.0 4.4 9 9.0 10.0 25–34 133 124.6 28.8 130 118.8 18.7 35–44 300 273.2 19.2 278 254.0 13.8 45–54 298 288.0 10.7 288 277.4 9.8 55–64 245 236.6 3.9 228 219.9 2.2 Over 64 35 31.6 2.1 36 32.3 0.1 Classification Grade 1 2 1.2 0.9 1 1.0 3.0 Grade 2.1 64 61.1 31.0 54 51.9 27.8 Grade 2.2 145 130.8 4.0 145 130.2 2.0 Grade 2.3 176 166.4 4.5 177 166.9 1.8 Grade 3 123 120.0 3.0 125 119.9 3.0 Grade 4 154 146.5 6.6 147 139.3 5.0 Grade 5 95 85.0 4.3 92 82.7 4.8 Grade 6 129 121.7 5.8 114 107.2 2.3 Grade 7 52 51.2 5.0 44 43.0 2.0 Grade 8 73 72.0 4.0 54 53.3 3.0 Executives 12 12.0 – 16 16.0 – Notes: • All figures reflect employment levels during the last full pay period in June of each year. • Excluded are those on leave without pay (16.2 FTE) or absent on secondment, external contractors/ consultants and temporary staff engaged through employment agencies. • Ongoing employees includes people engaged on an open ended contract of employment and executives engaged on a standard executive contract who were active in the last full pay period of June. • Reduction in female headcount levels is comparable to the reduction in male headcount levels. • As at 30 June 2013, Parks Victoria employed 966 full time equivalent (FTEs) employees. This included 734 employees delivering field based services, of which 59 were Aboriginal staff. To meet summer peak seasonal visitor attendance at high visitation locations, Parks Victoria employed 38 seasonal rangers to run visitor services programs across the state. This included ten marine rangers servicing the bay and coastal areas. Additionally, 185 project firefighters were employed for planned burning and wildfire management. These seasonal programs greatly enhance Parks Victoria’s capacity to maintain visitor services during the summer and peak fire season.. • Attrition has grown from 7 per cent to 10 per cent mainly due to the take up of the first round of voluntary departure packages in December 2012. • Of all employees, 6 per cent are Aboriginal and 28 per cent are female. Five of the 16 Executives are female. Increasing opportunities for women in senior positions and non-traditional roles and the development and retention of Aboriginal staff are ongoing commitments for Parks Victoria. • As part of the organisational restructure, there was a reduction of 18 senior managers and an increase of four executive directors. The four new executive directors is based on new criteria reflecting the changed organisational structure. Parks Victoria Annual Report 2012–2013 Page 35

Merit, equity and diversity • development and use of The 2013 People Matter Survey an accessibility evaluation reported that 97 per cent of Parks Victoria is committed to manual to assist park staff respondents are aware for the maintaining a workplace free in compiling park access need to report OHS hazards, of harassment, discrimination information for visitors with near misses and injuries. This is and bullying. These principles special needs. reflected in more than a 60 per are documented in the Victorian cent increase in OHS reporting Government’s merit and equity Occupational Health over the last two years. The standards and embodied in the and Safety number of injuries reported for Public Administration Act 2004. the same period is trending down Parks Victoria communicates and Parks Victoria is committed to and this is also reflected in the adheres to the principles set out the continued improvement of numbers of WorkCover claims in the Act. workplace safety and making the and time lost due to injuries. health, safety and wellbeing of As an employer, Parks Victoria our staff a business-wide priority. ensures that: Staff health and wellbeing Parks Victoria also recognises • decisions are based on merit that sound occupational health Parks Victoria continued to and safety (OHS) performance deliver a health and wellbeing • staff are treated fairly and contributes to our agency’s program to: reasonably overall success. • provide staff, and in some • equal employment The focus in 2012–13 has been cases immediate family opportunity is provided on reviewing and improving Parks members, with access • there are reasonable avenues Victoria’s OHS procedures and to health and wellbeing of redress against unfair or systems. To achieve this, Parks information and a range of unreasonable treatment. Victoria’s reviewed and updated short, medium and long-term its OHS policies and procedures. support programs, including All Parks Victoria staff are required The revised documents clearly access to a free professional to abide by the Victorian public articulate the OHS roles and counselling and support service sector code of conduct, which responsibilities of all personnel requires staff to: • monitor staff health and accountabilities at each level. and wellbeing • act with impartiality As each process was revised, the procedures for that area of safety • support staff during and • display integrity and avoid were also reviewed to ensure following critical incidents conflicts of interest these were streamlined and • enable the healthy recovery • show accountability for their efficient. of staff actions, and A monthly OHS report • develop and implement • provide responsive service. which contains data on the policies, procedures and performance of the organisation’s practices to assist staff to Disability Action Plan safety systems at district, regional balance their work and family and divisional levels enables Parks Victoria continued to responsibilities. deliver its objectives as outlined senior managers to regularly in its Disability Action Plan. monitor their safety systems Changes in practices, services and maintain a focus on better and infrastructure are designed performance outcomes. to improve accessibility and In late 2012–13, Parks Victoria increase inclusiveness for people purchased and developed an with disabilities. In 2012–13 online OHS incident/hazard these included the: reporting to replace the • continuing provision of all- organisation’s paper-based terrain wheelchairs in parks OHS reporting system. The new across Victoria system will streamline OHS reporting and provide a greater • provision of comprehensive level of transparency, with all park access information staff able to monitor the progress for the public on the Parks and status of OHS reports. Victoria website PAGE 36 A SUSTAINABLE ORGANISATION

Learning and development Organisational performance Learning and development programs are monitored and Parks Victoria’s Corporate Services evaluated for relevance and branch supports the work of staff alignment with organisational and the maintenance of Victoria’s service needs. Achievements for natural spaces by managing the 2012–13 are outlined below. agency’s work locations, vehicles and equipment and by providing • 840 staff participated in the the legal, business, information Bullying and Harassment technology, corporate and Awareness program and other services. attended complementary training. • Parks Victoria maintained a strong focus on operational training for field staff. This included a specific focus on compliance training and the use of new technology solutions for the field. • Parks Victoria registered high levels of completion of induction learning modules, mainly by project fire staff and summer rangers. The organisation continues to roll out innovative training solutions to address the geographic spread of our workforce.

Corporate performance measures

2007– 2008– 2009– 2010– 2011– 2012– Annual Measure 08 09 10 11 12 13 Report result Total area of estate Target Hectares nm nm nm nm 4,084 4,084 managed by Parks Victoria ('000) Met Actual Hectares nm nm 4,040 4,084 4,086 4,116 ('000) Number of visits to Parks Target Number nm nm nm nm 88–92 88–92 Victoria managed estate (millions) Exceeded Actual Number nm nm 88.5 85.9 85.9 95.8 (millions)

Park assets rated in Target % 75–80 80 average to excellent Met condition Actual % 78 85 79.6 80.3

Bays assets rated in Target % 65–70 65–70 average to excellent Met condition Actual % 66 64 65 66

Number of hectares Target Hectares treated to minimise the ('000) 1,100 1,309 impact of pest plants, pest Exceeded animals and overabundant Actual Hectares native animals in parks ('000) 1,200 964 1,387 managed by Parks Victoria

*nm = new measure **n/a = not available (biennial measure) Parks Victoria Annual Report 2012–2013 Page 37

New organisational measures for inclusion in the Annual Report.

2007– 2008– 2009– 2010– 2011– 2012– Annual Measure 08 09 10 11 12 13 Report result

Lost time injuries reported Target Number nm nm nm nm nm 43 Exceeded Actual Number nm nm nm nm nm 34

Provision of agreed Target % resources to the DEPI 100 and DTPLI (bushfire Met preparedness, suppression Actual % and other emergency 100 response). Manage labour and Target Met or nm nm nm nm nm Met operating costs within Not Met budget Met Actual Met or nm nm nm nm nm Met Not Met

*nm = new measure **n/a = not available (biennial measure)

Five year financial summary

($thousand) 2013 2012 2011 2010 2009

Revenue from Government 120,865 122,055 110,455 92,089 83,067 Total income from transactions 257,933 251,999 219,000 199,551 184,535 Total expenses from transactions 259,327 249,743 230,040 204,476 184,807 Net result from transactions (1,394) 2,256 (11,040) (4,925) (273) Net result for the period (1,896) (803) (12,361) (7,726) (1,452) Net cash flow from operating activities (18,263) 12,367 9,468 35,859 17,926 Total assets 1,822,467 1,851,560 1,830,609 1,569,068 1,283,020 Total liabilities 117,708 149,585 138,799 128,066 87,494

Overall financial excludes revaluations and changes demand for camping and performance in market prices that are reflected accommodation. This increase as other economic flows in was offset by one-off costs During a year of reform, the comprehensive operating associated with assets destroyed Parks Victoria achieved an statement. during floods for which insurance operating performance that income has not yet been received was significantly better than Both total income and expenses ($4.1 million). Excluding one-off budget targets. The result from transactions have been costs, the underlying net result reflects a continued, disciplined trending upwards over the years. from transactions is a surplus approach to cost management The major factor contributing of $2.7 million. and improved effectiveness in to increases in both income and commercial operations. expenditure in 2012–13 is fire suppression activity, which rose The net result from transactions by $5 million compared to last is a deficit of $1.4 million, year. Fire suppression costs are which is $9 million better than fully reimbursed, so the impact the budgeted deficit of $10.4 on overall financial performance million. The primary reason for is neutral. Commercial income the improvement was a reduction is up approximately $3 million in labour costs, compared to the compared to 2011–12, due budget forecast. This measure largely to the increased PAGE 38 A SUSTAINABLE ORGANISATION

Financial Position Legislative framework • recreational and other – balance sheet activities on waterways land Under the Parks Victoria in the metropolitan area as The total assets at the end of the Act 1998, Parks Victoria’s defined in the Water Industry year were $1.8 billion. Of that responsibilities are to provide Act 1994 $1.7 billion is property, plant services to the state and its and equipment and reflects land agencies for the management • a number of other areas and associated assets where of parks, reserves and other under leases or other Parks Victoria is appointed land under the control of the arrangements (including Committee of Management state together with waterways reservoir parks). (COM). On behalf of the Crown, land (within the meaning of the Parks Victoria’s responsibilities Parks Victoria also manages a Water Industry Act 1994) for for the provision of services significant portfolio of public the purposes of conservation, to the state are set out in a land and associated assets that recreation, leisure, tourism or Management Services Agreement are recorded in the Department water transport. Parks Victoria’s (MSA) between Parks Victoria, of Environment and Primary responsibilities also extend to the Secretary to the Department Industries’ financial statements. recreational boating in Port Phillip of Environment and Primary and Western Port as a local The net liability to Vision Industries (DEPI) and the Minister port manager under the Port Super towards defined benefit for Environment and Climate Management Act 1995 and as superannuation fell by $3.3 Change. Parks Victoria’s services waterways manager under the million as the fund’s performance are delivered within state policy Marine Safety Act 2010. improved. The fund registered a and contractual agreements and return of 12.4% for 2012–13. With the approval of the Minister, in accordance with statutory Parks Victoria may also provide responsibilities and statutory Cash flows services for the management of delegations. The MSA sets out land to the owner of any other the principles for the delivery The net cash flow from operating land used for public purposes. of park management services, activities is a deficit of $18.3 The Act requires that Parks lists the land to be managed million. This reflects the timing Victoria must not act in a way and sets out the key functions difference between the receipt that is not environmentally sound of Parks Victoria and the of cash in prior periods and its in carrying out its functions. Department of Environment and drawdown for project delivery Parks Victoria is appointed as a Primary Industries. The current in 2012–13. Total cash and committee of management of MSA includes a commitment investments at the end of the various reserves pursuant to the to engage strategically and year were $87.3 million, Crown Land (Reserves) Act 1978. work in partnership. DEPI is the of which $80.6 million is tied designated lead for fire on to specific projects. Currently Parks Victoria is the public land. committee of management for Non-committed cash of $6.7 a range of reserves including million is not tied to any specific Albert Park, Werribee Park, Yarra projects and provides Parks Bend, several gardens in the Victoria with a small buffer Dandenong Ranges and piers and against unexpected events. jetties in Port Phillip and Western Governance Port. It also manages: and compliance • all areas under the Governance and compliance National Parks Act 1975 – ensures that Parks Victoria fulfils approximately 3.45 million its responsibilities under the Parks hectares Victoria Act 1998 and meets its • reserved and unreserved requirements under other state Crown land including and Commonwealth laws. conservation and other reserves, metropolitan parks, regional parks and historic areas Parks Victoria Annual Report 2012–2013 Page 39

Changes to areas managed • four did not proceed, and • number and type of disclosed matters referred to the Under the Management Services • four are yet to be finalised Ombudsman for investigation Agreement, the Minister for – no public interest the Environment and Climate Whistleblowers protection disclosures Change advises Parks Victoria The Protected Disclosures • number and type of of any changes to the land Act 2012 replaced the investigations of disclosed managed by Parks Victoria. In Whistleblowers Protection Act matters taken over by the August 2012, Parks Victoria was 2001 as of 10 February 2013. advised of the assignment of an Ombudsman – none additional 79 reserves (from 2994 The Acts were designed to • number of requests made to 3073) and changes to existing protect people who disclose to the Ombudsman to reserves through Version 17 of information about serious investigate matters – none the Register of Land, resulting in wrongdoing within the Victorian an addition of 27,963 hectares Public Sector and to provide a • number and type of disclosed to the total area managed. These framework for the investigation matters Parks Victoria has reserves included major additions of these matters. Parks Victoria declined to investigate – that Parks Victoria was directed does not tolerate improper none. to manage as part of the River conduct by employees or the Parks Victoria no longer has a Red Gum outcomes, such areas taking of reprisals against those Protected Disclosure Coordinator. of the proposed Murray River who come forward to disclose However, any queries concerning Park not already being managed such conduct. Parks Victoria is the new Acts may be directed to: by Parks Victoria (19, 417 in the process of establishing hectares). a new procedure to reflect the Chief Legal Counsel new regime instituted by the Act Parks Victoria Level 10, 535 This brings the total area of as well as the new Independent Bourke Street, Melbourne 3000 land assigned to Parks Victoria Broad-Based Anti-Corruption Telephone 13 1963 via direct assignment to Commission (IBAC) Act 2011. Any complaints which may approximately 4.105 million Parks Victoria can no longer qualify as a protected disclosure hectares. accept disclosures and must refer should be made directly to: all complaints directly to IBAC. Freedom of Information IBAC Since the commencement of the The Freedom of Information Act GPO Box 24234 Whistleblowers Protection Act 1982 gives the public the right to Melbourne, VIC 3000 in January 2002, Parks Victoria access information contained in Phone 1300 735 135 has received nine disclosures. documents held by Parks Victoria. Disclosures for the period 1 July A copy of Parks Victoria’s new In the reporting period, Parks 2012 to 10 February 2013 (when Protected Disclosure Procedure Victoria received 29 requests: 23 Parks Victoria ceased receiving will be available after August 10, external requests for documents complaints) are as follows: 2013 by contacting Parks Victoria and information under the on 13 1963. Act and six interdepartmental • number and type of requests. disclosures made to Parks Victoria – no public interest Of the 23 external requests: disclosures • none were transferred to • number and type of other agencies for processing disclosures referred to the • 12 were decided by Parks Ombudsman for public Victoria interest determination – no public interest disclosures • three did not meet the requirement under the Act • number and type of and were refused or rejected disclosed matters referred to Parks Victoria from the Ombudsman – no public interest disclosures to be investigated PAGE 40 A SUSTAINABLE ORGANISATION

Statement of availability Building Act completed one contract to of other information the value of $4.6 million in All works associated with metropolitan Melbourne which: The following information is buildings are managed in available on request, subject to accordance with the Building • included a 100% level of the Freedom of Information Act Act 1993, including obtaining local content 1982: all permits as required. • created the equivalent of • a statement that declarations eight full time jobs Victorian Industry of pecuniary interests have Participation Policy • created four apprenticeships/ been duly completed by all traineeships, and relevant officers Departments and public bodies are required to comply with the • provided the Victorian • details of publications Victorian Industry Participation economy with benefits in produced by Parks Victoria Policy Act 2003 requires in terms of skills and technology about itself and how these all tenders over $3 million in transfer increases and can be obtained metropolitan Melbourne and opportunities to provide • details of changes in prices, $1 million in regional Victoria. experience (through higher fees, charges, rates and levies In 2012–13, Parks Victoria was duties) in the areas of charged fully compliant with the policy. concreting, demolition, structural works and road • details of any major external During the financial year ending construction. reviews carried out on Parks 30 June 2013, Parks Victoria Victoria entered into three contracts to National competition which the Victorian Industry • details of major research policy Participation Policy applied, and development activities the value of these contracts Competitive neutrality seeks to undertaken being $8.3 million. During the enable fair competition between • details of overseas visits financial year ending 30 June government and private sector undertaken, including a 2013, Parks Victoria entered businesses. Any advantages or summary of the objectives into three contracts to which the disadvantages that government and outcomes of each visit VIPP applied, the value of these businesses may experience as a contracts being $8.3 million. result of government ownership • details of major promotional, should be neutralised. public relations and Two of these contracts were marketing activities within metropolitan Melbourne Parks Victoria continues undertaken to develop to the value of $6.3 million, to implement and apply community awareness of which: this principle in its business Parks Victoria and its services undertakings. • include 100 per cent • details of assessments and commitment to local content measures undertaken to • retain the equivalent of 18 improve the occupational full time jobs health and safety of employees • retain seven apprenticeships/ traineeships, and • A general statement on industrial relations within • provide the economy with Parks Victoria and details of further training and skills. time lost through industrial One contract was in regional accidents and disputes Victoria, valued at $2.1 million. • a list of Parks Victoria’s major This contract: committees, the purposes • includes 100 per cent of each committee and the commitment to local content extent to which the purposes have been achieved. • retains the equivalent of 12 full time jobs, and • provides the economy with further training and skills. During the year, Parks Victoria Parks Victoria Annual Report 2012–2013 Page 41

Major contracts maximum Five Green Star rating. In other programs, Parks Victoria The organisation has also moved continues to support Zoos Parks Victoria did not enter to replace 20 of the traditional Victoria’s efforts to save the into any contracts greater than 6-cylinder vehicles with smaller world’s last remaining mountain $10 million in value during the fuel efficient 4-cylinder passenger gorillas by ensuring retired mobile reporting period. vehicles. Around 84 per cent of phones are recycled as part of the Parks Victoria’s passenger vehicle Zoos Victoria’s “They’re Calling Government advertising fleet (this category excludes on You” campaign. Money expenditure operational utility vehicles and raised from donated phones Parks Victoria did not have an fire fighting vehicles) now has helps support rangers in the advertising buy of $150,000 or a Green Star rating of 3.5 stars Democratic Republic of Congo greater (exclusive of GST) during or more. Parks Victoria has also who are fighting to protect the the reporting period. reduced the overall number of last remaining mountain gorillas. vehicles in its vehicle fleet as part Smaller and greener motor of a rationalisation program. vehicle fleet These measures are assisting There are now 23 Australian- Parks Victoria in its efforts to made Toyota Hybrid Camry reduce greenhouse gas emissions vehicles in Parks Victoria’s and operating costs. fleet. These vehicles have the

Consultancies engaged over $10,000

Total approved Purpose of project fee Expenditure 2012–13 Future expenditure Consultant consultancy ($‘000 excluding GST) ($’000 excluding GST) ($’000 excluding GST) ARUP Management advice $95 $15 $80 Futureye Pty Ltd Management advice $67 $67 $ nil Snow Gum Consulting Management advice $45 $45 $ nil Pty Ltd McGregor & Coxall Coastal Master Plan $450 $65 $385 Pty Ltd

Consultancies engaged under $10,000 There were no consultancies engaged under $10,000.

Parks Victoria Organisational Environmental Performance Report 2012–13

2010–11 Per FTE 2011–12 Per FTE 2012–13 Per FTE

4,194 4,639 4,098 Electricity (megawatts) 4,626 4,806 3,959* Kilowatt hours Kilowatt hours Kilowatt hours Water (megalitres) 190 172 Kilolitres 194 187 Kiloliters 203 210 Kilolitres Greenhouse Gas emissions 11,059 10 10,307 9.9 9,943 10.3 (Tonnes C02-e)

FTE/Full-time equivalent (meaning equal to full time position) * In 2012–13 Parks Victoria changed the manner in which electricity consumption is recorded. A further 12 months of data should reveal if the observed reduction in electricity use in 2012–13 is actual or related to the change in process. PAGE 42 A SUSTAINABLE ORGANISATION

Risk management attestation

TO BE SUPPLIED Parks Victoria Annual Report 2012–2013 Page 43

Insurance attestation PAGE 44 A SUSTAINABLE ORGANISATION

Gifts, Benefits and Hospitality Framework Attestation Parks Victoria Annual Report 2012–2013 Page 45

Legislation Requirement Page

SD 4.2(j) Sign off requirements 3

FRD 22D Objectives, functions, powers and duties 5–6

FRD 22D Manner of establishment and responsible Minister 5

FRD 22D Nature and range of services provided 5–6

FRD 22D Operational and budgetary objectives 36–37

FRD 22D Summary of the financial results 37

FRD 22D Major changes or factors affecting performance 4

FRD 22D Subsequent events 4

FRD 22D Significant changes in financial position during the year 38

FRD 22D & SD2.2(f) Organisational structure 6

FRD 22D Occupational health and safety policy 35

FRD 22D Employment and conduct principles 35

FRD 29 & 22D Workforce Data disclosures 34

FRD 15B Executive officer disclosures 34

FRD 10 Disclosure index 45

FRD 25 & 22D Victorian Industry Participation Policy disclosures 40

FRD 22C Details of consultancies in excess of $10 000 41

FRD 22C Details of consultancies under $10 000 41

FRD 22D Disclosure of government advertising expenditure 41

FRD 12A Disclosure of major contracts 41

FRD 22D Application and operation of Freedom of Information Act 1982 39

FRD 22D Compliance with Building Act 1993 40

FRD 22D Statement on National Competition Policy 40

FRD 22D Application and operation of Protected Disclosures Act 2012 39

FRD 24C Reporting of office-based environmental impacts 41

FRD 22D Statement of availability of other information 40

SD 4.5.5 Risk management compliance attestation 42

SD 4.5.5.1 Insurance attestation 43

PC 2012/02 Gifts, benefits and hospitality attestation 44 SD 4.2(g) General information requirements Entire document

Parks Victoria Act 1998 5

Building Act 1983 52

Financial Management Act 1994 37

Freedom of Information Act 1982 39

Protected Disclosures Act 2012 39 Victorian Industry Participation Policy Act 2003 40 FRD 30 Standard requirements for the design and print of annual reports Entire document PAGE 46 A SUSTAINABLE ORGANISATION Parks Victoria Annual Report 2012–2013 Page 47

Financial Report

Comprehensive Operating Statement 48 Balance Sheet 49 Statement of Changes in Equity 50 Cash Flow Statement 51 Table of Contents 52 Notes to Financial Statements 53–87 Statutory Certificate 88 Auditor’s Report 89–90 PAGE 48 FINANCIAL REPORT

Comprehensive Operating Statement For the Financial Year ended 30 June 2013

2013 2012 Notes $’000 $’000 Continuing operations Income from transactions Parks and reserves trust funding 3 88,276 80,331 Government funding 4 120,865 122,055 Interest 5 4,363 5,327 Fair value of assets received free of charge 6 429 3,422 Insurance claims 7a 10,021 15,085 Other income 7b 33,979 25,779 Total income from transactions 257,933 251,999

Expenses from transactions Employee benefits expenses 8 109,094 93,849 Depreciation and amortisation 9 10,878 10,276 Contracts and external services 10 107,101 113,721 Other operating expenses 11 32,254 31,897 Total expenses from transactions 259,327 249,743 Net result from transactions (net operating balance) (1,394) 2,256

Other economic flows included in net result Net gain/(loss) on non-financial assets 12(a) (1,390) – Net gain/(loss) on financial instruments 12(b) 153 (257) Other gains/(losses) from other economic flows 12(c) 735 (2,802) Total other economic flows included in net result (502) (3,059) Net result (1,896) (803)

Other economic flows – other comprehensive income Items that will not be reclassified to net result Changes in physical asset revaluation surplus – – Items that may be reclassified subsequently to net result Changes to financial assets available-for-sale revaluation surplus – – Total other economic flows – other comprehensive income – – Comprehensive result (1,896) (803)

The comprehensive operating statement should be read in conjunction with the accompanying notes. Parks Victoria Annual Report 2012–2013 Page 49

Balance Sheet As at 30 June 2013

2013 2012 Notes $’000 $’000 Assets

Financial assets Cash and deposits 13 87,340 58,423 Receivables 14 10,921 14,557 Investments and other financial assets 15 – 50,000 Total financial assets 98,261 122,980

Non-financial assets Inventories 16 175 159 Property, plant and equipment 17 1,719,187 1,722,830 Intangible assets 18 4,824 5,575 Other non-financial assets 19 20 16 Total non-financial assets 1,724,206 1,728,580

Total assets 1,822,467 1,851,560

Liabilities Payables 20 22,278 28,597 Provisions 21 34,073 34,659 Provision for Superannuation defined benefits obligation 29(c) 2,939 6,216 Deferred revenue 22 58,418 80,113 Total liabilities 117,708 149,585

Net assets 1,704,759 1,701,975

Equity Accumulated surplus/(deficit) (59,748) (57,218) Physical asset revaluation surplus 23 1,129,315 1,128,678 Contributed capital 24 635,191 630,515 Total equity 1,704,759 1,701,975

Contingent liabilities and contingent assets 26 Commitments 27

The balance sheet should be read in conjunction with the accompanying notes. PAGE 50 FINANCIAL REPORT

Statement of Changes in Equity For the Financial Year ended 30 June 2013

Physical Asset Revaluation Accumulated Contributed Surplus Surplus / (Deficit) Capital Total Notes $’000 $’000 $’000 $’000 Balance at 1 July 2011 1,128,678 (56,415) 619,546 1,691,809 Net result for the year – (803) – (803) Other comprehensive income for the year – – – – Transfer to accumulated surplus – – – – Contributed capital 24 – – 10,969 10,969 Balance at 30 June 2012 1,128,678 (57,218) 630,515 1,701,975 Net result for the year – (1,896) – (1,896) Other comprehensive income for the year – – – – Transfer to accumulated surplus 23 637 (637) – – Contributed capital 24 – – 4,676 4,676 Balance at 30 June 2013 1,129,315 (59,748) 635,191 1,704,759

The statement of changes in equity should be read in conjunction with the accompanying notes. Parks Victoria Annual Report 2012–2013 Page 51

Cash Flow Statement For the Financial Year ended 30 June 2013

2013 2012 Notes $’000 $’000 Cash Flows from operating activities Receipts Receipts from parks charges 85,568 79,186 Receipts from government for operations 91,570 111,344 Receipts from government for Base Funding Review 5,721 14,356 Receipts from customers/other sources 50,088 35,098 Interest received 4,761 5,246 Receipts relating to goods and services tax 18,074 18,056 Total receipts 255,782 263,286

Payments Payments to suppliers and employees (249,919) (227,043) Payments to government for revenue collected from national parks (6,491) (5,452) Payments relating to Goods and Services Tax (17,635) (18,424) Total payments (274,045) (250,919) Net cash flows from/(used in) operating activities 25(c) (18,263) 12,367

Cash Flows from investing activities Payments for property, plant and equipment (2,820) (7,333) Proceeds on sale of property, plant and equipment – – Payments for other financial assets (45,000) (90,000) Proceeds from other financial assets 95,000 90,000 Net cash flows from/(used in) investing activities 47,180 (7,333)

Cash flows from financing activities Receipts from government – contributed capital – 5,741 Net cash flows from/(used in) financing activities 0 5,741 Net increase/(decrease) in cash and cash equivalents 28,917 10,775

Cash and cash equivalents at beginning of financial year 58,423 47,648 Cash and cash equivalents at the end of the financial year 13 & 25(a) 87,340 58,423

Consisting of: Committed cash and investments 34 80,653 101,661 Non-committed cash (cash reserved for short term liabilities) 6,687 6,762 Total Funds 87,340 108,423

The above cash flow statement should be read in conjunction with the accompanying notes. PAGE 52 FINANCIAL REPORT

Table of Contents

Note 1 Background Note 15 Other financial assets

Note 1.1 Reporting entity Note 16 Inventories

Note 1.2 Objectives and funding Note 17 Property, plant and equipment

Note 2 Summary of significant accounting policies Note 18 Intangible assets

Note 2.1 General Note 19 Other non-financial assets

Note 2.2 Basis of accounting preparation and Note 20 Payables measurement Note 21 Provisions Note 2.3 Asset recognition and measurement Note 22 Deferred revenue Note 2.4 Scope and presentation of financial statements Note 23 Physical asset revaluation surplus Note 2.5 Financial assets Note 24 Contributed capital Note 2.6 Non-financial assets Note 25 Cash flow information Note 2.7 Impairment of non-financial assets Note 26 Contingent liabilities and contingent assets Note 2.8 Leased assets Note 27 Commitments Note 2.9 Liabilities Note 28 Superannuation Note 2.10 Contributed capital Note 29 Defined superannuation benefit Note 2.11 Income recognition Note 30 Volunteer resources provided free of charge Note 2.12 Interest income Note 31 Auditor's remuneration Note 2.13 Resources provided and received free of charge or for nominal consideration Note 32 Responsible person and executive officer disclosures Note 2.14 Grants and other payments Note 33 Financial instruments Note 2.15 Depreciation and amortisation Note 34 Committed funds Note 2.16 Finance costs Note 35 Post balance date events Note 2.17 Commitments

Note 2.18 Contingent assets and contingent liabilities

Note 2.19 Goods and Services Tax

Note 2.20 Rounding of amounts

Note 2.21 New accounting standards and interpretations

Note 3 Parks and reserves trust funding

Note 4 Government funding

Note 5 Interest

Note 6 Fair value of assets received free of charge

Note 7 Insurance income / other income

Note 8 Employee benefits expenses

Note 9 Depreciation and amortisation

Note 10 Contracts and external services

Note 11 Other operating expenses

Note 12 Other economic flows included in net result

Note 13 Cash and deposits

Note 14 Receivables Parks Victoria Annual Report 2012–2013 Page 53

Notes to the Financial Statements For the Financial Year ended 30 June 2013

1 Background

1.1 Reporting entity Parks Victoria is a not-for-profit individual reporting entity. Parks Victoria was formed as a public authority on 3 July 1998 under the Parks Victoria Act 1998. The Parks Victoria Act 1998 was given Royal Assent on 26 May 1998 and was proclaimed on 3 July 1998. The principal address is: Level 10/ 535 Bourke Street, Melbourne, VIC 3000

1.2 Objectives and funding The objective of Parks Victoria is to provide an outstanding park and waterway system, protected and enhanced, for people, forever. Parks Victoria receives the majority of its funding from the Victorian Government for the management of Victoria’s National/State Parks and Reserves and from the Parks and Reserves Trust for the management of metropolitan parks and waterways. The Trust is funded by a Parks charge levied on properties within the Melbourne metropolitan area.

2 Summary of significant accounting policies

2.1 General These general purpose financial statements have been prepared in accordance with the Financial Management Act 1994 and applicable Australian Accounting Standards, including Interpretations (AASs). AASs include Australian equivalents to International Financial Reporting Standards.

Statement of compliance The financial statements comply with the relevant Financial Reporting Directions (FRDs) issued by the Department of Treasury and Finance and relevant Standing Directions (SD) authorised by the Minister for Finance. Under Australian Accounting Standards (AASs), there are requirements that apply specifically to not-for-profit entities. Parks Victoria has analysed its purpose, objectives, and operating philosophy and determined that it does not have profit generation as a prime objective. Where applicable, the AASs that relate to not-for-profit entities have been applied. The financial statements were authorised for issue by the board of Parks Victoria on 15 August 2013. PAGE 54 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2013

2.2 Basis of accounting preparation and measurement The accrual basis of accounting has been applied in the preparation of these financial statements whereby assets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid. These financial statements are presented in Australian dollars, the functional and presentation currency of Parks Victoria. In the application of AASs, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on professional judgements derived from historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. These financial statements have been prepared in accordance with the historical cost convention except for: • non-current physical assets which, subsequent to acquisition, are measured at a re-valued amount being their fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent impairment losses. Revaluations are made with sufficient regularity to ensure that the carrying amounts do not materially differ from their fair value; • the fair value of an asset other than land, plant and equipment, antiques and work in progress is based on its depreciated replacement cost; • available-for-sale investments which are measured at fair value with movements reflected in equity until the asset is derecognised. Historical cost is based on the fair values of the consideration given in exchange for assets. Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported. The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2013 and the comparative information presented for the year ended 30 June 2012.

2.3 Asset recognition and measurement Parks Victoria only recognises assets on land it controls as the committee of management. Parks Victoria also manages other assets on behalf of the Crown. Those assets and any new assets constructed by Parks Victoria on behalf of the Crown are recognised in the asset register of the Department of Environment and Primary Industries. Parks Victoria Annual Report 2012–2013 Page 55

Notes to the Financial Statements For the Financial Year ended 30 June 2013

2.4 Scope and presentation of financial statements

(i) Comprehensive operating statement Income and expenses in the comprehensive operating statement are classified according to whether or not they arise from ‘transactions’ or ‘other economic flows’. This classification is consistent with the whole of government reporting format and is allowed under AASB 101 Presentation of financial statements. ‘Transactions’ are those economic flows that are considered to arise as a result of policy decisions, usually interactions between two entities by mutual agreement. Transactions also include flows within an entity, such as depreciation where the owner is simultaneously acting as the owner of the depreciating asset and as the consumer of the service provided by the asset. Taxation is regarded as mutually agreed interactions between the Government and taxpayers. Transactions can be in kind (e.g. assets provided/given free of charge or for nominal consideration) or where the final consideration is cash. ‘Other economic flows’ are changes arising from market re-measurements. They include gains and losses from disposals, revaluations and impairments of non-current physical assets and intangible assets; fair value changes of financial instruments and revaluation of certain employee benefit liabilities. The net result is equivalent to profit or loss derived in accordance with AASs.

(ii) Balance sheet Assets and liabilities are presented in liquidity order with assets aggregated into financial assets and non-financial assets. Current and non-current assets and liabilities (those expected to be recovered or settled beyond 12 months) are disclosed in the notes, where relevant.

(iii) Statement of changes in equity The statement of changes in equity presents reconciliations of each non-owner and owner equity opening balance at the beginning of the reporting period to the closing balance at the end of the reporting period. It also shows separately changes due to amounts recognised in the ‘Comprehensive result’ and amounts recognised in ‘Other economic flows – Other non‑owner changes in equity’ related to transactions with owner in its capacity as owner.

(iv) Cash flow statement Cash flows are classified according to whether or not they arise from operating activities, investing activities or financing activities. This classification is consistent with requirements under AASB 107 Statement of cash flows. PAGE 56 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2013

2.5 Financial assets

(i) Cash and deposits Cash and deposits, including cash equivalents, comprise cash on hand and cash at bank, deposits at call and those highly liquid investments subject to an insignificant risk of changes in value with an original maturity of three months or less, which are held for the purpose of meeting short term cash commitments rather than for investment purposes. For the purpose of the Cash Flow Statement, cash assets include cash on hand and highly liquid investments with short periods to maturity that are readily convertible to cash on hand at Parks Victoria’s option and are subject to insignificant risk of changes in values, net of outstanding bank overdrafts.

(ii) Receivables Receivables consist of: • statutory receivables, which include predominantly amounts owing from the Victorian Government and GST input tax credits recoverable; and • contractual receivables, which include mainly debtors in relation to goods and services, and accrued investment income. Receivables that are contractual are classified as financial instruments. Statutory receivables are not classified as financial instruments. Receivables are recorded initially at fair value and subsequently measured at amortised cost, using the effective interest method, less impairment. Compensation from third parties for items of property, plant and equipments that were impaired, lost or given up are recognised as a receivable when the receipt of the reimbursement becomes “virtually certain.” Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A provision for doubtful debts is established when there is objective evidence that Parks Victoria will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial. The amount of the provision is recognised in the Comprehensive Operating Statement. A provision for doubtful debts is recognised to the extent that recovery of the outstanding receivable balance is considered less than likely. Bad debts are written off in the period in which they are recognised. The average credit period on sales of goods or provision of services is 30 days.

(iii) Other financial assets Other financial assets are recognised and derecognised on trade date where purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs. Parks Victoria classifies its other financial assets between current and non-current assets based on the purpose for which the assets were acquired. Management determines the classification of its other financial assets at initial recognition. Parks Victoria assesses at each balance sheet date whether a financial asset or group of financial assets is impaired. All investments held by Parks Victoria are classified as being available-for-sale and are stated at fair value. Gains and losses arising from changes in fair value are recognised directly in equity, until the investment is disposed of or is determined to be impaired, at which time to the extent appropriate, the cumulative gain or loss previously recognised in equity is included in the Comprehensive Operating Statement for the period. Parks Victoria Annual Report 2012–2013 Page 57

Notes to the Financial Statements For the Financial Year ended 30 June 2013

2.6 Non-financial assets

(i) Inventories Inventories comprise stores and materials and are valued at the lower of cost and net realisable value. Costs are assigned to inventory on hand at balance date on a first in, first out basis. Net realisable value represents the estimated selling price less all estimated costs of completion and costs to be incurred in marketing and selling distribution.

(ii) Property, plant and equipment All non-current physical assets are measured initially at cost and subsequently revalued at fair value less accumulated depreciation and impairment. Where an asset is acquired for no or nominal cost, the cost is its fair value at the date of acquisition. Assets transferred as part of a machinery of government change are transferred at their carrying amount. Property, plant and equipment represent non-current assets used by Parks Victoria, comprising: • Crown land, land and land improvements. • Buildings and building improvements. • Piers, jetties and river improvements. • Plant, equipment, machinery and vehicles. • Antiques. • Works in progress. Items with a cost or value of $5,000 (2012 $5,000) or more, and a useful life of more than one year are recognised as an asset. All other assets acquired are expensed. Non-current physical assets such as national parks, other Crown land, and heritage assets are measured at fair value with regard to the property’s highest and best use after due consideration is made for any legal or constructive restrictions imposed on the asset, public announcements or commitments made in relation to the intended use of the asset. Theoretical opportunities that may be available in relation to the asset are not taken into account until it is virtually certain that the restrictions will no longer apply. The fair value of cultural depreciated assets and collections, heritage assets and other non-current physical assets that the State intends to preserve because of their unique historical, cultural or environmental attributes, is measured at the replacement cost of the asset less, where applicable, accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset and any accumulated impairment. PAGE 58 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2013

Revaluations of non-current physical assets Non-current physical assets measured at fair value are revalued in accordance with FRD 103D Non Current Physical Assets issued by the Minister for Finance. This revaluation process normally occurs every five years, based upon the asset’s Government Purpose Classification, but may occur more frequently if fair value assessments indicate material changes in value. Revaluation increases or decreases arise from differences between an asset’s carrying value and fair value. Revaluation increases are credited directly to equity in the physical asset revaluation surplus, except to the extent that an increase reverses a revaluation decrease in respect of that class of property, plant and equipment previously recognised as an expense (other economic flows) in the net result, the increase is recognised as income (other economic flows) in determining the net result. Revaluation decreases are recognised immediately as expenses (other economic flows) in the net results, except to the extent that a credit balance exists in the physical asset revaluation surplus in respect of the same class of property, plant and equipment in which case they are debited to the physical asset revaluation surplus. Revaluation increases and decreases relating to individual assets within a class of property, plant and equipment are offset against one another within that class but are not offset in respect of assets in different classes. A full revaluation of non-financial physical assets was conducted in June 2011 in accordance with the Financial Reporting Directions (FRDs) issued by the Minister of Finance. The useful lives and residual values of the respective assets were adjusted to reflect the most recent assessment performed by the Valuer General Victoria (VGV). The next scheduled full revaluation will be conducted in 2016. The Valuer General provides guidance to asset valuers on the valuation rational and appropriate level of “Community Service Obligation” (2010–11: 70%) discount to apply to the asset.

(iii) Crown land Crown land is measured at fair value with regard to the property’s highest and best use after due consideration is made for any legal or constructive restrictions imposed on the land, public announcements or commitments made in relation to the intended use of the land. Theoretical opportunities that may be available in relation to the asset are not taken into account until it is virtually certain that the restrictions will no longer apply. The financial statements list the location and values of Crown land over which Parks Victoria is the committee of management (refer note 17c). This Crown Land remains the property of the State of Victoria. Crown Land is used for heritage and environmental conservation, recreation, leisure, tourism and navigation.

Restrictive nature of cultural and heritage assets, Crown land and infrastructures During the reporting period, Parks Victoria held cultural assets, heritage assets, Crown land and infrastructures. Such assets are deemed worthy of preservation because of the social rather than financial benefits they provide to the community. The nature of these assets means that there are certain limitations and restrictions imposed on their use and/or disposal.

(iv) Intangible assets Intangible assets are initially recognised at cost. Subsequently, intangible assets with finite useful lives are carried at cost less accumulated amortisation and accumulated impairment losses. Costs incurred subsequent to initial acquisition are capitalised when it is expected that additional future economic benefits will flow to Parks Victoria. Intangible assets include business systems and IT software. Parks Victoria Annual Report 2012–2013 Page 59

Notes to the Financial Statements For the Financial Year ended 30 June 2013

2.7 Impairment of non-financial assets All non-financial assets are assessed annually for indications of impairment, except for: • Inventories (refer note 2.6 (i)). If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written off by charge to the Comprehensive Operating Statement except to the extent that the write-down can be debited to the physical asset revaluation surplus account. The recoverable amount for most assets is measured at the higher of the present value of future cash flows expected to be obtained from the asset and fair value less costs to sell. It is deemed that, in the event of the loss of an asset, the future asset will be replaced unless a specific decision to the contrary has been made.

2.8 Leased assets Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Operating lease payments are recognised as an expense in the Comprehensive Operating Statement on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

2.9 Liabilities

(i) Payables Payables are recognised when Parks Victoria becomes obliged to make future payments resulting from goods and services provided prior to the end of the financial year, which are unpaid at financial year end. Payables are non-interest bearing and have an average credit period of 30 days.

(ii) Employee benefits

(a) Wages and salaries and sick leave Liabilities for wages and salaries that are expected to be settled within 12 months of the reporting date are measured at their nominal amounts in respect of employees’ services up to the reporting date. The nominal basis of measurement uses employee remuneration rates that the entity expects to pay as at each reporting date and does not discount cash flows to their present value. Non-vesting sick leave is not expected to exceed current and future sick leave entitlements, and accordingly, no liability has been recognised.

(b) Annual leave and long service leave Annual leave and long service leave entitlements expected to be settled within 12 months of the reporting date are recognised as a provision for employee benefits in the Balance Sheet at their nominal values. Annual leave and long service leave entitlements not expected to be settled within 12 months of the reporting date are recognised at the present value of the estimated future cash outflows to be made by Parks Victoria in respect of services provided by employees up to reporting date. Consideration is given to expected future employee remuneration rates, employment related on-costs and other factors including experience of employee departures and periods of service. In the determination of the long service leave entitlement liabilities, Parks Victoria use the wage inflation and discount rates released by the Department of Treasury and Finance. PAGE 60 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2013

(c) Classification of employee benefits as current and non-current liabilities Employee benefit provisions are reported as current liabilities where Parks Victoria does not have an unconditional right to defer settlement for at least 12 months. Consequently, the current portion of the employee benefit provision can include both short-term benefits (those benefits expected to be settled within 12 months of the reporting date), which are measured at nominal values, and long-term benefits (those benefits not expected to be settled within 12 months of the reporting date), which are measured at present values. Employee benefit provisions that are reported as non-current liabilities also include long-term benefits such as non- vested long service leave (i.e. where the employee does not have a present entitlement to the benefit) that do not qualify for recognition as a current liability, and are measured at present values. The non-current liability for long service leave represents entitlements accrued for employees with less than 7 years of continuous service, where Parks Victoria has the right to defer the liability.

(d) Termination benefits Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. Parks Victoria recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after the end of the reporting period are discounted to present value.

(e) Performance payments Performance payments for Parks Victoria’s Executive Officers are based on a percentage of the annual salary package provided under their contracts of employment. A liability is recognised and is measured as the aggregate of the amounts accrued under the terms of the contracts at balance date. Since the performance payments earned are paid upon completion of annual performance reviews, the total amount is classified as a current liability.

(f) Superannuation Defined accumulation plans Contributions are made by Parks Victoria to employee superannuation funds and are charged as expenses when incurred. Defined benefit plans A liability or asset in respect of defined superannuation benefit plans is recognised in the balance sheet and is measured as the difference between the present value of employees accrued benefits at the end of the reporting period and the net market value of the superannuation plan’s assets at that date. The present value of benefits as accrued benefits is based on expected future payments which arise from membership of the plans at the end of the reporting period. Consideration is given to expected future salary levels, resignation and retirement rates. Expected future payments are discounted using rates of Commonwealth Government bonds with terms to maturity that match, as closely as possible the estimated future cash outflows. The amount brought to account in the Comprehensive Operating Statement in respect of superannuation represents the contributions made to the superannuation plan, adjusted by the movement in the defined benefit plan liability or asset. Parks Victoria only recognises the liability for Vision Super defined benefit plans. Parks Victoria does not recognise the defined benefit liability in respect of any other plans because the entity has no legal or constructive obligation to pay future benefits relating to its employees. Disclosure of superannuation contributions by Parks Victoria is provided in Note 28. Parks Victoria Annual Report 2012–2013 Page 61

Notes to the Financial Statements For the Financial Year ended 30 June 2013

(iii) Provisions Provisions are recognised when Parks Victoria has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably. The amount recognised as a liability is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cashflows estimated to settle the present obligation, its carrying amount is the present value of those cashflows, using a discount rate that reflects the time value of money and risks specific to the provision. When some or all of the economic benefits required to settle a provision are expected to be recognised from a third party, the receivable is recognised as an asset if it is virtually certain that recovery will be received and the amount of the receivable can be measured reliably.

(iv) Deferred revenue Deferred revenues represent the portion of reciprocal government and external grants/funding for conditions which at the end of financial year had not been performed (see Note 2.11).

2.10 Contributed capital Consistent with Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities and FRD 119 Contributions by Owners , appropriations for additions to the net asset base have been designated as contributed capital. Other transfers that are in the nature of contributions or distributions have also been designated as contributed capital.

2.11 Income recognition Amounts disclosed as income are, where applicable, net of returns, allowances and duties and taxes. Parks Charge income is recognised when invoiced by Parks Victoria. Other income, including external grants/funding, is recognised when earned or on receipt, depending on which occurs earlier. Compensation from third parties for items of property, plant and equipment that were impaired, lost or given up are recognised in profit or loss when the receipt of the reimbursement becomes “virtually certain.” Where government and external grants/funding are reciprocal, income is recognised as performance occurs under the grant. Non-reciprocal grants are recognised as income when the grant is received or receivable. Conditional grants may be reciprocal or non-reciprocal depending on the terms of the grant. Where the grants/funding received has not been expended and a reciprocal agreement exists (reciprocal agreement is whereby the external revenue is required to be repaid if not used or an asset transfer to the external party is to occur upon completion of the asset) Parks Victoria records this revenue as deferred revenue.

2.12 Interest income Interest income includes unwinding over time of discounts on financial assets and interest received or receivable on bank term deposits and other investments. Interest income is recognised on a time proportionate basis that takes into account the effective yield on the financial asset.

2.13 Resources provided and received free of charge or for nominal consideration Contributions of resources (including volunteer resources and assets received free of charge or for nominal consideration) and assets provided free of charge or for nominal consideration are recognised at their fair value. Contributions in the form of services are only recognised when a fair value can be reliably determined and the services would have been purchased if not donated. PAGE 62 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2013

2.14 Grants and other payments Grants and other payments to third parties are recognised as an expense in the reporting period in which they are paid or payable. They include transactions such as: grants, subsidies, other transfer payments made to State owned agencies, local government, non-government schools and community groups.

2.15 Depreciation and amortisation Depreciation is applied to completed fixed assets including buildings and building improvements, piers, jetties and river improvements, land improvements and plant, equipment, machinery, and vehicles. Land and antiques are not depreciated. Works in Progress is valued at cost and depreciation commences on completion of the works. Depreciation is calculated on a straight-line basis to systematically write off the cost or revalued amount of each non-current asset over its expected useful life to the entity. Depreciation rates are reviewed annually and, if necessary, adjusted to reflect the most recent assessments of the useful lives and residual values of the respective assets. Where assets have separate identifiable components that have distinct useful lives and/or residual values, a separate depreciation rate is determined for each component. The expected useful life of each asset category is as follows: 2013 2012 Expected Life Expected Life Asset category (Years) (Years) Buildings and building improvements 5 to 100 5 to 100 Piers, jetties and river improvements 6 to 100 6 to 100 Land improvements 1 to 100 1 to 100 Plant, equipment, machinery and vehicles 1 to 10 1 to 10

Amortisation is calculated on a straight-line basis to systematically write off the cost or revalued amount of each intangible asset over its expected useful life to the entity. Amortisation rates are reviewed annually and, if necessary, adjusted to reflect the most recent assessments of the useful lives and residual values of the respective assets. The expected useful life of each Intangible assets category (computer software) is 10 years (2012: 10 years). Parks Victoria Annual Report 2012–2013 Page 63

Notes to the Financial Statements For the Financial Year ended 30 June 2013

2.16 Finance costs Finance costs (mainly bank charges) are recognised as expenses in the period in which they are incurred.

2.17 Commitments Commitments for future expenditure include operating and capital commitments arising from contracts. These commitments are disclosed by way of a note (refer to Note 27) at their nominal value and inclusive of the Goods and Services Tax (GST) payable. In addition, where it is considered appropriate and provides additional relevant information to users, the net present values of significant individual projects are stated. These future expenditures cease to be disclosed as commitments once the related liabilities are recognised in the balance sheet.

2.18 Contingent assets and contingent liabilities Contingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by way of a note and, if quantifiable, are measured at nominal value. Contingent assets and liabilities are presented inclusive of GST receivable or payable respectively.

2.19 Goods and Services Tax Revenues, expenses and assets are recognised net of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of expense. Receivables and payables are stated inclusive of GST. The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables. Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the ATO, is classified as operating cash flows and disclosed therein.

2.20 Rounding of amounts Amounts in the financial statements have been rounded to the nearest thousand dollars, unless otherwise stated. Figures in the financial statements may not equate due to rounding. PAGE 64 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2013

2.21 New accounting standards and interpretations Certain new AASs have been published that are not mandatory for the 30 June 2013 reporting period. Parks Victoria assesses the impact of these new standards, their applicability and early adoption, where applicable. As at 30 June 2013, the following standards and interpretations (applicable to agencies) had been issued but were not mandatory for the financial year ending 30 June 2013. Parks Victoria has not early adopted these standards.

Applicable for annual reporting periods Impact on Parks Victoria's Standard/Interpretation Summary beginning on financial statements AASB 9 Financial instruments This standard simplifies requirements for the 1 Jan 15 Detail of impact is still being assessed. classification and measurement of financial assets resulting from Phase 1 of the IASB’s project to replace IAS 39 Financial Instruments: Recognition and Measurement (AASB 139 Financial Instruments: Recognition and Measurement). AASB 10 Consolidated Financial This Standard establishes principles for the 1 Jan 14 As a not-for-profit entity, Parks Victoria is Statements presentation and preparation of consolidated not permitted to apply this Standard prior financial statements when an entity controls to the mandatory application date. The one or more other entities and supersedes AASB is assessing the applicability those requirements in AASB 127 Consolidated of principles in AASB 10 in a not-for-profit and Separate Financial Statements and context. As such, impact will be assessed Interpretation 112 Consolidation – Special after the AASB’s deliberation. Purpose Entities. AASB 11 Joint Arrangements This Standard requires entities that have an 1 Jan 14 As a not-for-profit entity, Parks Victoria interest in arrangements that are controlled is not permitted to apply this Standard jointly to assess whether the arrangement is a prior to the mandatory application date. joint operation or joint venture. AASB 11 shall As such, impact will be assessed after the be applied for an arrangement that is a joint AASB’s deliberation. operation. It also replaces parts of requirements in AASB 131 Interests in Joint Ventures. AASB 12 Disclosure of Interests This Standard requires disclosure of information 1 Jan 14 As a not-for-profit entity, Parks Victoria in Other Entities that enables users of financial statements to is not permitted to apply this Standard evaluate the nature of, and risks associated prior to the mandatory application date. with, interests in other entities and the effects The AASB is assessing the applicability of of those interests on the financial statements. principles in AASB 12 in a not-for-profit This Standard replaces the disclosure context. As such, impact will be assessed requirements in AASB 127 and AASB 131. after the AASB’s deliberation. AASB 13 Fair Value Measurement This Standard outlines the requirements 1 Jan 13 Disclosure for fair value measurements for measuring the fair value of assets and using unobservable inputs are relatively liabilities and replaces the existing fair value onerous compared to disclosure for fair definition and guidance in other AASs. AASB value measurements using observable 13 includes a ‘fair value hierarchy’ which ranks inputs. Consequently, the Standard may the valuation technique inputs into three increase the disclosures for public sector levels using unadjusted quoted prices in active entities that have assets measured using markets for identical assets or liabilities; other depreciated replacement cost. Detail of observable inputs; and unobservable inputs. impact is still being assessed. AASB 119 Employee Benefits In this revised Standard for defined benefit 1 Jan 13 As a not-for-profit entity, Parks Victoria is superannuation plans, there is a change not permitted to apply this Standard prior to the methodology in the calculation of to the mandatory application date. Detail superannuation expenses, in particular of impact is being assessed. there is now a change in the split between While the total superannuation expense superannuation interest expense (classified as is unchanged, the revised methodology is transactions) and actuarial gains and losses expected to have a negative impact on the (classified as ‘Other economic flows – other net result from transactions of the general movements in equity’) reported on the government sector and for those few comprehensive operating statement. Victorian public sector entities that report superannuation defined benefit plans. AASB 127 Separate Financial This revised Standard prescribes the accounting 1 Jan 14 As a not-for-profit entity, Parks Victoria Statements and disclosure requirements for investments in is not permitted to apply this Standard subsidiaries, joint ventures and associates when prior to the mandatory application date. an entity prepares separate financial statements. The AASB is assessing the applicability of principles in AASB 127 in a not-for-profit context. As such, impact will be assessed after the AASB’s deliberation. Parks Victoria Annual Report 2012–2013 Page 65

Notes to the Financial Statements For the Financial Year ended 30 June 2013

Applicable for annual reporting periods Impact on Parks Victoria's Standard/Interpretation Summary beginning on financial statements AASB 128 Investments in Associates This revised Standard sets out the requirements 1 Jan 14 As a not-for-profit entity, Parks Victoria and Joint Ventures for the application of the equity method when is not permitted to apply this Standard accounting for investments in associates and prior to the mandatory application date. joint ventures. The AASB is assessing the applicability of principles in AASB 128 in a not-for-profit context. As such, impact will be assessed after the AASB’s deliberation. AASB 2009–11 Amendments to This Standard gives effect to consequential 1 Jan 13 No significant impact is expected from Australian Accounting Standards changes arising from the issuance of AASB 9. these consequential amendments on entity arising from AASB 9 [AASB 1, 3, 4, reporting. 5, 7, 101, 102, 108, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 and 1038 and Interpretations 10 and 12] AASB 2010–2 Amendments to This Standard makes amendments to many 1 Jul 13 The Victorian Government is currently Australian Accounting Standards Australian Accounting Standards, including considering the impacts of Reduced arising from Reduced Disclosure Interpretations, to introduce reduced disclosure Disclosure Requirements (RDRs) for certain Requirements requirements to the pronouncements for public sector entities and has not decided if application by certain types of entities. RDRs will be implemented in the Victorian public sector. AASB 2010–7 Amendments to These consequential amendments are in relation 1 Jan 13 No significant impact is expected from Australian Accounting Standards to the introduction of AASB 9. these consequential amendments on entity arising from AASB 9 (December reporting. 2010) [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and Interpretations 2, 5, 10, 12, 19 & 127] AASB 2010–10 Further The amendments ultimately affect AASB 1 1 Jan 13 No significant impact is expected on entity Amendments to Australian First-time Adoption of Australian Accounting reporting. Accounting Standards – Removal of Standards and provide relief for first-time Fixed Dates for First-time Adopters adopters of Australian Accounting Standards [AASB 2009–11 & AASB 2010-7] from having to reconstruct transactions that occurred before their date of transition to Australian Accounting Standards. AASB 2011–2 Amendments to The objective of this amendment is to include 1 Jul 13 The Victorian Government is currently Australian Accounting Standards some additional disclosure from the Trans- considering the impacts of Reduced arising from the Trans-Tasman Tasman Convergence Project and to reduce Disclosure Requirements (RDRs) and has not Convergence Project – Reduced disclosure requirements for entities preparing decided if RDRs will be implemented in the Disclosure Requirements [AASB 101 general purpose financial statements under Victorian public sector. & AASB 1054] Australian Accounting Standards – Reduced Disclosure Requirements. AASB 2011–4 Amendments to This Standard amends AASB 124 Related 1 Jul 13 No significant impact is expected from Australian Accounting Standards to Party Disclosures by removing the disclosure these consequential amendments on entity Remove Individual Key Management requirements in AASB 124 in relation to reporting. Personnel Disclosure Requirements individual key management personnel (KMP). [AASB 124]. AASB 2011–6 Amendments The objective of this Standard is to make 1 Jul 13 The Victorian Government is currently to Australian Accounting amendments to AASB 127 Consolidated considering the impacts of Reduced Standards – Extending Relief from and Separate Financial Statements, AASB Disclosure Requirements (RDRs) and has not Consolidation, the Equity Method 128 Investments in Associates and AASB decided if RDRs will be implemented in the and Proportionate Consolidation – 131 Interests in Joint Ventures to extend the Victorian public sector. Reduced Disclosure Requirements circumstances in which an entity can obtain [AASB 127, AASB 128 & AASB 131]. relief from consolidation, the equity method or proportionate consolidation. AASB 2011–7 Amendments to This Standard outlines consequential changes 1 Jan 13 No significant impact is expected from Australian Accounting Standards arising from the issuance of the five ‘new these consequential amendments on entity arising from the Consolidation Standards’ to other Standards. For example, reporting. and Joint Arrangements Standards references to AASB 127 Consolidated and [AASB 1, 2, 3, 5, 7, 9, 2009-11, Separate Financial Statements are amended to 101, 107, 112, 118, 121, 124, 132, AASB 10 Consolidated Financial Statements or 133, 136, 138, 139, 1023 & 1038 AASB 127 Separate Financial Statements, and and Interpretations 5, 9, 16 & 17] references to AASB 131 Interests in Joint Ventures are deleted as that Standard has been superseded by AASB 11 and AASB 128 (August 2011). PAGE 66 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2013

Applicable for annual reporting periods Impact on Parks Victoria's Standard/Interpretation Summary beginning on financial statements AASB 2011–8 Amendments to This amending Standard makes consequential 1 Jan 13 Disclosures for fair value measurements Australian Accounting Standards changes to a range of Standards and using unobservable inputs is potentially arising from AASB 13[AASB 1, 2, 3, Interpretations arising from the issuance of onerous, and may increase disclosures 4, 5, 7, 9, 2009–11, 2010–7, 101, AASB 13. In particular, this Standard replaces for assets measured using depreciated 102, 108, 110, 116, 117, 118, 119, the existing definition and guidance of fair replacement cost. Details of the impact is 120, 121, 128, 131, 132, 133, 134, value measurements in other Australian still being assessed. 136, 138, 139, 140, 141, 1004, Accounting Standards and Interpretations. 1023 & 1038 and Interpretations 2, 4, 12, 13, 14, 17, 19, 131 & 132] AASB 2011–10 Amendments to This Standard makes consequential changes to a 1 Jan 13 No significant impact is expected from Australian Accounting Standards range of other Australian Accounting Standards these consequential amendments on entity arising from AASB 119 (September and Interpretation arising from the issuance of reporting. 2011) [AASB 1, AASB 8, AASB 101, AASB 119 Employee Benefits. AASB 124, AASB 134, AASB 1049 & AASB 2011-8 and Interpretation 14] AASB 2011–11 Amendments This Standard makes amendments to AASB 1 Jul 13 The Victorian Government is currently to AASB 119 (September 2011) 119 Employee Benefits (September 2011), to considering the impacts of Reduced arising from Reduced Disclosure incorporate reduced disclosure requirements Disclosure Requirements (RDRs) Requirements into the Standard for entities applying Tier 2 and has not decided if RDRs will requirements in preparing general purpose be implemented in the Victorian financial statements. public sector. AASB 2011–12 Amendments to This Standard makes amendments to AASB 1 1 Jan 13 There may be an impact for new agencies Australian Accounting Standards First-time Adoption of Australian Accounting that adopt Australian Accounting Standards arising from Interpretation 20 Standards, as a consequence of the issuance for the first time. AASB 1 of IFRIC Interpretation 20 Stripping Costs in No implication is expected for existing the Production Phase of a Surface Mine. This entities in the Victorian public sector. Standard allows the first-time adopters to apply the transitional provisions contained in Interpretation 20. 2012–1 Amendments to Australian This amending Standard prescribes the 1 Jul 13 As the Victorian whole of government and Accounting Standards – Fair Value reduced disclosure requirements in a number the general government (GG) sector are Measurement – Reduced Disclosure of Australian Accounting Standards as a subject to Tier 1 reporting requirements Requirements [AASB 3, AASB 7, consequence of the issuance of AASB 13 Fair (refer to AASB 1053 Application of Tiers AASB 13, AASB 140 & AASB 141] Value Measurement. of Australian Accounting Standards), the reduced disclosure requirements included in AASB 2012-1 will not affect the financial reporting for Victorian whole of government and GG sector. No significant impact is expected from these consequential amendments on entity reporting. AASB Interpretation 20 Stripping This Interpretation clarifies when production 1 Jan 13 No significant impact is expected Costs in the Production Phase stripping costs should lead to the recognition on entity reporting. of a Surface Mine of an asset and how that asset should be initially and subsequently measured. AASB 1053 Application of Tiers This standard establishes a differential financial 1 Jul 13 The Victorian Government is currently of Australian Accounting Standards reporting framework consisting of two tiers of considering the impacts of Reduced reporting requirements for preparing general Disclosure Requirements (RDRs) purposes financial statements. and has not decided if RDRs will be implemented in the Victorian public sector. AASB 1055 AASB 1055 extends the scope of budgetary 1 Jan 14 [If separate budget is presented to the reporting that is currently applicable for the parliament]: The entity will be required whole of government and general government to restate in the financial statements the sector (GGS) to not-for-profit entities within budgetary information in accordance the GGS, provided that these entities present with the presentation format prescribed separate budget to the parliament. in Australian Accounting Standards and explain the significant variances from the original budget. [If separate budget is not presented to the parliament] This Standard is not applicable as no budget disclosure is required. Parks Victoria Annual Report 2012–2013 Page 67

Notes to the Financial Statements For the Financial Year ended 30 June 2013

2013 2012 $’000 $’000 3 Parks and reserves trust funding

Park charges 83,276 80,331 Additional funding from parks and reserves trust 5,000 – Total parks and reserves trust funding 88,276 80,331

The parks and reserves trust funding is a charge levied on commercial and domestic properties throughout the Melbourne and metropolitan area, the majority of which is paid to Parks Victoria. This funding is then invested into the management and control of parks and waterways within the metropolitan area for the purposes of conservation, recreation, leisure, tourism and navigation.

4 Government funding

National / state parks and reserves funding 58,263 58,852 Additional funding from state appropriations – 1,562 Parks Victoria Base Review Funding 5,721 14,356 Government grants for special projects 15,681 14,316 Program Initiatives (including tracks and trails and Good Neighbour programs) 1,081 843 Major works funding provided by the Department of Environment and Primary Industries (formally known 32,134 26,378 as Department of Sustainability and Environment) Major works funding provided by the Department of State Development Business and Innovation – 6 (formally known as Department of Business and Innovation) Major works funding provided by the Department of Transport, Planning and Local Infrastructure 29 2 (formally known as Department of Planning and Community Development) Major works funding provided by the Department of Transport, Planning and Local Infrastructure 7,956 5,740 (formally known as Department of Transport) Total government funding 120,865 122,055

5 Interest

Interest from financial assets categorised as available for sale: Interest on bank deposits and other financial assets 4,363 5,327 Total interest 4,363 5,327

6 Fair value of assets received free of charge

Australian Grand Prix Corporation (AGPC) assets transferred from the Department of State Development, Business and Innovation 429 3,422 Total fair value of assets received free of charge 429 3,422 PAGE 68 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2013

2013 2012 $’000 $’000 7a Insurance income

Insurance claims 10,021 15,085 Total Insurance income 10,021 15,085

7b Other income

Accommodation/camping fees 5,271 4,159 Funding sponsored by external parties 1,512 1,063 Rent, leases and licences 7,748 7,510 External sales 2,805 2,222 Berthing/mooring fees 392 344 Cave tour fees 869 705 Fire suppression costs, recovered from DEPI (note 8) 10,626 5,618 Other 4,756 4,158 Total Other Income 33,979 25,779

8 Employee benefits expenses

Salaries, wages, termination benefits, annual leave and long service leave* 79,651 74,067 Fire suppression costs (note 7b) 10,626 5,618 Termination payments associated with restructuring 6,610 – Superannuation – defined and accumulation plan** 5,950 7,748 Fringe Benefits Tax and payroll taxes 5,066 5,151 Other on-costs 1,191 1,265 Total Employee Benefits 109,094 93,849

* Salaries and wages include a 4.5% increase from 1 Oct 2012 and a further 3.0% from 1 Mar 2013 arising from the Fair Work determination. ** Parks Victoria contributions, in respect of its employees (including salary sacrifice) refer note 28.

9 Depreciation and amortisation

Land improvements 2,164 1,679 Buildings and building improvements 3,641 3,959 Piers, jetties and river improvements 4,024 3,569 Plant and equipment 298 318 Intangibles 751 751 Total depreciation and amortisation 10,878 10,276

10 Contracts and external services

Core operational services 81,245 89,113 Other external services 25,856 24,608 Total contracts and external services 107,101 113,721 Parks Victoria Annual Report 2012–2013 Page 69

Notes to the Financial Statements For the Financial Year ended 30 June 2013

2013 2012 $’000 $’000 11 Other operating expenses

Materials 5,606 6,465 Transport 6,049 5,863 Payments to government for revenue collected from national parks* 6,892 6,037 Payments to local government, other agencies, community groups and for program operating costs 21 417 Insurance premiums 10,442 8,732 Payments for works sponsored by external parties 1,661 1,018 Other 1,583 3,365 Total other operating expenses 32,254 31,897

* The revenue is included in note 7b Other Income under Accommodation/camping fees and Rent, leases and licences.

12 Other economic flows included in net esultr

(a) Net gain/(loss) on non-financial assets Disposal of property, plant and equipment (1,390) –

(b) Net gain/(loss) on financial instruments Provision for doubtful debts (145) (257) Reversal of unused provision 298 –

(c) Other gains/(losses) from other economic flows Net gain/(loss) arising from revaluation of long service liability due to changes in the bond interest rates 735 (2,802) Total other economic flows included in net result (502) (3,059)

13 Cash and deposits – current

Cash and deposits 87,340 58,423 Total cash and deposits 87,340 58,423

(a) Risk exposure Park Victoria’s exposure to interest rate risk is discussed in note 33 (f). The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of cash and deposits mentioned in note 33 (d). PAGE 70 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2013

2013 2012 $’000 $’000 14 Receivables

Receivables – current Debtors* 11,345 15,177 Provision for doubtful debts (500) (704) Total receivables – current 10,845 14,473

Receivables – non-current

Other receivables 76 84

Total receivables – non-current 76 84 Total receivables 10,921 14,557

(a) Movement in the provision for doubtful receivables Balance at beginning of the year (704) (449) Reversal of unused provision recognised in the net result 298 – Increase in provision recognised in the net result (145) (257) Reversal of provision written off during the year as uncollectible 51 2 Balance at the end of the year (500) (704)

(b) Ageing analysis of contractual receivables Refer to note 33 (d) table 33.3 for the ageing analysis of receivables (except statutory receivables).

(c) Nature and extent of risk arising from contractual receivables Refer to note 33 (d) for the nature and extent of risks arising from contractual receivables.

* Debtors include $2.0m of VMIA insurance claims (2012 – $7.6m)

15 Other financial assets

Available for sale financial assets Australian dollar term deposit > 3 months – 50,000 Total Other Financial Assets – current – 50,000

(a) Ageing analysis of financial assets Please refer to note 33 (d) table 33.3 for the ageing analysis of financial assets.

(b) Nature and extent of risk arising from other financial assets Please refer to note 33 (d) for the nature and extent of risks arising from investments and other financial assets.

16 Inventories – current

Stock on Hand (at cost) 175 159 Total Inventories 175 159 Parks Victoria Annual Report 2012–2013 Page 71

Notes to the Financial Statements For the Financial Year ended 30 June 2013

2013 2012 $’000 $’000 17 Property, plant and equipment – non-current 17a Classification by public safety and environment – carrying amounts Crown land, land and land improvements At fair value 1,542,743 1,543,129 Less: accumulated depreciation (3,130) (1,694) 1,539,613 1,541,435 At cost 24,832 14,644 Less: accumulated depreciation (811) (118) 24,021 14,526 Net book value – Crown land, land and land improvements 1,563,634 1,555,961

Buildings and building improvements At fair value 79,520 80,666 Less: accumulated depreciation (7,630) (4,115) 71,890 76,551 At cost 3,130 434 Less: accumulated depreciation (18) – 3,112 434 Net book value – Buildings and building improvements 75,002 76,985

Plant, equipment, machinery and vehicles At cost 7,720 7,692 Less: accumulated depreciation (6,867) (6,570) Net book value – Plant, equipment, machinery and vehicles 853 1,122

Piers, jetties and river improvements At fair value 64,422 64,422 Less: accumulated depreciation (6,677) (3,435) 57,745 60,987 At cost 17,715 12,151 Less: accumulated depreciation (1,091) (308) 16,624 11,843 Net book value – Piers, jetties and river improvements 74,369 72,830

Antiques At fair value 1,278 1,278 Closing balance – antiques 1,278 1,278

Works in progress At cost 4,051 14,654 Closing balance – works in progress 4,051 14,654

Net carrying amount of property, plant and equipment 1,719,187 1,722,830 PAGE 72 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2013

17b Classification by public safety and environment – carrying amounts

Crown land, land Buildings and building & land improvements improvements 2013 2012 2013 2012 $’000 $’000 $’000 $’000 Opening balance 1,555,961 1,542,997 76,985 80,510 Additions 10,189 14,643 2,696 434 Disposals (352) – (1,038) – Acquisitions through administrative restructure – – – – Transfer to assets classified as held for sale – – – – Net revaluation increments/ decrements – – – – Depreciation expense (2,164) (1,679) (3,641) (3,959) Impairment loss – – – – Asset transfer – – – – Other adjustments – – – – Closing balance 1,563,634 1,555,961 75,002 76,985

Crown land, land and land improvements Fair value assessments based on the indices supplied by the Department of Treasury and Finance have been performed for all classes of assets within this purpose group. Management has decided that movements were not material (less than or equal to 10 per cent) to record revaluation. The next scheduled full revaluation for this purpose group will be conducted in 2016.

Buildings and improvements, piers, jetties and river improvements Fair value assessments based on the indices supplied by the Department of Treasury and Finance have been performed for all classes of assets within this purpose group. Management has decided that movements were not material (less than or equal to 10 per cent) to record revaluation. The next scheduled full revaluation for this purpose group will be conducted in 2016.

Antiques For and on behalf of the office of the Valuer-General Victoria, the valuers for Colliers International Consultancy and Valuation Pty Limited, one a government approved valuer, the other a member of the Australian Property Institute of Certified Practising Valuers, determined that the most appropriate methodology for the revaluation of Antiques at fair value, was to assess the dollar value, with reference to the active and liquid antiques’ auction market, having regard to the highest and best use of the asset, for which market participants would be prepared to pay. These assets were revalued during a systematic three-year progressive revaluation process, conducted over the financial years ended 30 June 2003 to 30 June 2005. The William Ricketts Sanctuary is located in the Dandenong Ranges Gardens and contains over 70 in-ground aboriginal sculptures created by the late William Ricketts. The assets are of cultural and heritage significance. A valuation of these assets is not able to be determined. Parks Victoria Annual Report 2012–2013 Page 73

Plant, equipment, Piers, jetties and river machinery & vehicles improvements Antiques Works in progress Total 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 1,122 1,412 72,830 64,246 1,278 1,278 14,654 28,591 1,722,830 1,719,034 29 28 5,563 12,153 – – 2,739 4,641 21,216 31,899 – – – – – – – – (1,390) – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – (298) (318) (4,024) (3,569) – – – – (10,127) (9,525) – – – – – – – – – – – – – – – – (13,342) (18,578) (13,342) (18,578) – – – – – – – – – – 853 1,122 74,369 72,830 1,278 1,278 4,051 14,654 1,719,187 1,722,830 PAGE 74 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2013

17c Crown land, land and land improvements at fair value, where Parks Victoria is a Committee of Management.

2013 2012

2013 Area 2013 2012 Area 2012 Crown land (Hectares) $’000 (Hectares) $’000 Location You Yangs Regional Park 1,960 5,880 1,960 5,880 Devilbend Reservoir 1,005 39,990 1,005 39,990 Eildon Water Reserve 533 1,280 533 1,280 Dandenong Police Paddocks 499 164,670 499 164,670 Bays Assets* 498 Not Valued 498 Not Valued Lighthouse Reserves 329 2,170 329 2,170 Dandenong Ranges Gardens 278 2,670 278 2,670 Buchan Caves Reserve 260 390 260 390 Yarra Bend Park 260 210,600 260 210,600 Albert Park 229 858,750 229 858,750 Serendip Sanctuary 227 1,670 227 1,670 Plenty Gorge 222 9,484 222 9,484 Yarra Valley 139 111,010 139 111,010 Werribee Park 130 15,600 130 15,600 Vaughan Springs 100 180 100 180 Coolart 79 9,480 79 9,480 Mt Dandenong Observatory Reserve 72 2,160 72 2,160 Olinda Golf Course 34 510 34 510 Westgate 34 26,950 34 26,950 Maribyrnong Valley 22 6,090 22 6,090 Dandenong Valley 6 3,420 6 3,420 Peach Tree Creek 4 60 4 60 Point Cook / Cheetham 4 720 4 720 Herring Island 3 9,600 3 9,600 Queenscliff (not including Bays Assets * component) 3 1,800 3 1,800 Rosebud 1 600 1 600 San Remo 1 450 1 450 Point Gellibrand Heritage Park 17 27,967 17 27,967 Hopkins River, Willaura SS.R 4 38 4 38 Sandringham Boat Harbor 8 5,180 8 5,180 Princess Wharf 1 10 1 10 Total crown land 6,962 1,519,379 6,962 1,519,379

* Represents sea beds located at Swan Bay (220 Ha), Queenscliff (137 Ha) and 141 Ha being sea beds under 31 piers located within Port Phillip Bay and Western Port Bay.

Land and land improvements

2013 2012

Total land and land improvements at fair value 44,255 36,582 Total crown land, land and land improvements 1,563,634 1,555,961 Parks Victoria Annual Report 2012–2013 Page 75

Notes to the Financial Statements For the Financial Year ended 30 June 2013

18 Intangible assets – non-current

Computer software Total

2013 2012 2013 2012 $’000 $’000 $’000 $’000 Gross carrying amount Opening balance 7,510 7,510 7,510 7,510 Additions – – – Closing balance 7,510 7,510 7,510 7,510

Accumulated amortisation and impairment Opening balance 1,935 1,184 1,935 1,184 Amortisation expense 751 751 751 751

Closing balance 2,686 1,935 2,686 1,935 Net book value at end of financial year 4,824 5,575 4,824 5,575

2013 2012 $’000 $’000 19 Other non-financial assets – current

Prepayments 20 16 Total other non-financial assets 20 16

20 Payables Unsecured creditors and accruals 22,278 28,597 Total payables 22,278 28,597

(a) Maturity analysis of contractual payables Please refer to note 33 (e) table 33.4 for the maturity analysis of contractual payables.

(b) Nature and extent of risk arising from contractual payables Please refer to note 33(e) for the nature and extent of risks arising from contractual payables. PAGE 76 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2013

2013 2012 $’000 $’000 21 Provisions

(a) Current provisions Employee benefits Annual leave entitlements 6,794 6,510 *Long service leave – unconditional and expected to be settled within 12 months 1,609 2,061 *Long service leave – unconditional and expected to be settled after 12 months 18,459 18,677 26,862 27,248 Provisions related to employee benefit on-costs Annual leave entitlements 1,151 1,284 * Long service leave – unconditional and expected to be settled within 12 months 283 363 * Long service leave – unconditional and expected to be settled after 12 months 3,251 3,290 4,685 4,937 Total current provisions 31,547 32,185

(b) Non-current provisions # Employee benefits – long service leave 2,148 2,103 2,148 2,103 Provisions related to employee benefit on-costs Provisions related to employee benefit on-costs – long service leave 378 371 378 371

Total non-current provisions 2,526 2,474 Total employee benefits and related on-costs 34,073 34,659

Total provisions 34,073 34,659

* The current liability for long service leave represents entitlements accrued for employees with more than 7 years of continuous service. # The non-current liability for long service leave represents entitlements accrued for employees with less than 7 years of continuous service. Parks Victoria Annual Report 2012–2013 Page 77

Notes to the Financial Statements For the Financial Year ended 30 June 2013

2013 2012 $’000 $’000 22 Deferred revenue

Current 31,060 54,107 Non-current 27,358 26,006 Total deferred revenue 58,418 80,113

23 Physical asset revaluation surplus

Movement in physical asset revaluation surplus Opening balance 1,128,678 1,128,678 Revaluation of Parks Victoria assets: Crown land, land and land improvements – – Buildings and building improvements 637 – Piers, jetties and river improvements – – Net revaluation increment on Parks Victoria assets 637 – Total physical asset revaluation surplus 1,129,315 1,128,678

24 Contributed capital

Opening balance 630,515 619,546 Cash transferred – DEPI * – 5,741 Hopkins River assets transferred from DEPI – 38 Sandringham Boat Harbor assets transferred from DEPI – 5,180 Princess Wharf assets transferred from DEPI – 10 Albert Park assets transferred from DPCD 4,676 – Net movement in Contributed Capital 4,676 10,969 Total contributed capital 635,191 630,515

* The cash transferred for State appropriations – Asset replacement and renewal, Parks Reserve Trust Asset replacement and renewal, and Office accommodation / depot for fire fighters. PAGE 78 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2013

2013 2012 $’000 $’000 25 Cash flow information

(a) Reconciliation of cash and deposits Total cash and deposits disclosed in the balance sheet 87,340 58,423 Bank overdraft – – Balance as per cash flow statement 87,340 58,423

(b) Non-cash financing and investing activities Restructuring of administrative arrangements Transfer of Assets – Sandringham Boat Harbor (2012) – 5,228

(c) Reconciliation of net results for the period to net cash flows from operating Activities Net result for the period (1,896) (803) Non-cash movements: Depreciation and amortisation for the year 10,877 10,276 Provision for doubtful debts (152) 257 Net assets (received) / provided free of charge (429) (3,422) Loss / (gain) on sale, retirement and / or revaluation of assets 1,390 – Change in assets and liabilities: Decrease/(increase) in receivables 3,841 (7,647) Decrease/(increase) in inventories (16) (45) Decrease/(increase) in other non-financial assets (5) 307 Increase/(decrease) in provisions (3,861) 3,252 Increase/(decrease) in payables (6,317) 11,040 Increase/(decrease) in deferred revenue (21,695) (848) Net Cash from/(used in) operating activities (18,263) 12,367

(d) Credit card and merchant facilities Total credit card facility 2,000 2,000 Total credit card facility used/(Liability) (213) (241) Total merchant facility (daily limit) 370 370

26 Contingent liabilities and contingent assets

(a) Contingent liabilities – other outstanding claims There are no material claims against Parks Victoria arising out of matters connected with its operating activities.

(b) Contingent assets Floods have caused significant damage to Parks Victoria’s parks, reserves, natural environment and visitor infrastructure. During the year Parks Victoria spent $12.4m, funded under its insurance policy, with Victorian Managed Insurance Authority (VMIA) in restoring assets destroyed by floods. To date it has been reimbursed $8.3m from the insurer, including $2m in July 2013, with the remaining $4.1m expected to be recovered once all claims have been fully processed by VMIA. Parks Victoria Annual Report 2012–2013 Page 79

Notes to the Financial Statements For the Financial Year ended 30 June 2013

2013 2012 $’000 $’000 27 Commitments

(a) Capital commitments Value of commitments for capital expenditure at 30 June 2013 for the supply of works, services and materials not provided for in the financial statements:

Not later than one year 1,352 6,557 Later than one year and not later than five years – – Later than five years – – Total capital commitments (inclusive of GST) 1,352 6,557 Less GST recoverable from Australian Tax Office (123) (596) Total capital commitments (exclusive of GST) 1,229 5,961

(b) Lease commitments Total expenditure contracted for at balance date but not provided for in the financial statements in relation to non-cancellable operating leases is as follows:

Not later than one year 11,334 12,000 Later than one year and not later than five years 20,846 20,295 Later than five years 4,544 7,642 Total non-cancellable operating leases (inclusive of GST) 36,725 39,937 Less GST recoverable from Australian Tax Office (3,339) (3,631) Total non-cancellable operating leases (exclusive of GST) 33,386 36,306

Leasing arrangements Operating leases relate to building facilities with lease terms of between three to seven years, with an option to extend for a further three years. All operating lease contracts contain market review clauses in the event that Parks Victoria exercises its option to renew. Parks Victoria does not have an option to purchase the leased asset at the expiry of the lease period.

28 Superannuation

Parks Victoria contributes, in respect of its employees (including salary sacrifice), to the superannuation schemes as follows:

2013 2012 Scheme Type of scheme $’000 $’000 Defined benefit plans: Vision Super Defined 1,153 1,118 Other Defined 1,804 1,762

Accumulation plans: Vision Super Accumulation 2,834 2,928 Vic Super Accumulation 1,781 1,900 Other Accumulation 1,493 2,022 Total contributions to all funds 9,065 9,730

Employees engaged from 1 January 1994 are entitled to benefits under accumulation funds. Employees have the opportunity to make personal contributions to the funds at a self-nominated rate or amount. The minimum employer contribution to the fund, pursuant to the Superannuation Guarantee Charge was 9.0 per cent in 2012/13 (2011/12: 9.0 per cent). As at the reporting date, there were no outstanding contributions payable to the above funds. However there is a separate provision made in regards to defined benefits plan (refer note 29(c)). PAGE 80 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2013

29 Defined superannuation benefit Defined benefit superannuation The Vision Super superannuation fund provides lump sum benefits based on length of service and final superannuable salary for employees engaged up until 31 December 1993. Employees contribute at rates between 0 to 7.5 per cent of their superannuation salary. Parks Victoria contributes to the fund based on its commitments under the Employee Participation Agreement and Contribution Policy with the trustee of the fund.

2013 2012 $’000 $’000 (a) Reconciliation of the present value of the defined benefit obligation Balance at the beginning of the year 35,733 35,203 Current service cost 1,200 1,215 Interest cost 1,040 1,501 Contributions by plan participants – – Actuarial (Gain)/Loss 544 522 Benefits paid (4,450) (2,513) Taxes and premiums paid (242) (195) Transfers in – – Present value of the defined benefit obligation at the end of the year 33,825 35,733

(b) Reconciliation of the fair value of plan assets Balance at the beginning of the year 29,517 29,894 Expected return on plan assets 2,144 2,449 Actuarial Gain/(Loss) 1,953 (1,536) Employer contributions 1,879 1,297 Contributions by plan participants 349 353 Benefits paid (4,450) (2,513) Plan expenses (264) (232) Taxes and premiums paid (242) (195) Transfers in – – Fair value of plan assets at the end of the year 30,886 29,517

(c) Reconciliation of the assets and liabilities recognised in the balance sheet Present value of the defined benefit obligation 33,825 35,733 Less: fair value of plan assets (30,886) (29,517) Plus: on-costs – – Net superannuation liability/(asset) 2,939 6,216

Defined contribution superannuation Parks Victoria has recognised a liability in the Balance Sheet in respect of its defined superannuation benefit arrangements at 30 June 2013. If a surplus exists in the plan, Parks Victoria may be able to take advantage of it in the form of a reduction in the required contribution rate, depending on the advice of the plan’s actuary. If a deficit exists in the plan, Parks Victoria may be required to increase the required contribution rate, depending on the advice of the plan’s actuary consistent with the plan’s deed. Parks Victoria made a contribution of $976k in 2012–13 ($450k 2011–12). Parks Victoria Annual Report 2012–2013 Page 81

Notes to the Financial Statements For the Financial Year ended 30 June 2013

2013 2012 $’000 $’000 (d) Expense recognised in the comprehensive operating statement Service cost 1,200 1,215 Member contribution (349) (353) Interest cost 1,040 1,500 Expected return on plan assets (2,144) (2,449) Plan expense 264 232 Actuarial (gain)/loss recognised in year (1,409) 2,058 Total superannuation expense/(income) (Note 8) (1,398) 2,203

(e) Fair value of plan assets The fair value of plan assets includes no amounts relating to: a) any of Parks Victoria's own financial instruments; b) any property occupied by, or other assets used by, Parks Victoria.

(f) Expected rate of return on plan assets The expected return on plan assets assumption is determined by weighting the expected long-term return for each asset class by the target allocation of assets to each asset class and allowing for the correlations of the investment returns between asset classes. The returns used for each asset class are net of investment tax and investment fees. An allowance for administration expenses has also been deducted from the expected return.

(g) Principal actuarial assumptions at the balance sheet date Discount rate (gross of tax) 3.76% p.a 3.00% p.a Expected return on assets 7.50% p.a 7.50% p.a Average salary increase rate 3.00% p.a 3.00% p.a PAGE 82 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2013

30 Volunteer resources provided free of charge In 2012–13 volunteers contributed in excess of 29,751 days of voluntary labour on Parks Victoria managed land. Volunteers including friends groups, individuals, schools, corporate volunteers and special interest groups, provided valuable support to Parks Victoria through their voluntary participation in a range of park management projects and ongoing maintenance across approximately 180 parks and reserves. No estimate of the value of these resources has been included in the financial report as there is no practical way of determining an appropriate valuation basis.

2013 2012 $’000 $’000 31 Auditor's remuneration

Amounts paid/payable to: Victorian Auditor-General’s Office for the audit of the financial statements 69 67

32 Responsible persons and executive officer disclosures

(a) Responsible persons The names of persons who were board members at any time during the financial year ended 30 June 2013 were: D Cavagna, D Cheetham, A Fairley, A Grant, N O’Brien, G Phibbs (term ended 2 August 2012), P Sanderson, A Vizard, and R Wallis. The name of the responsible Minister from 1 July 2012 to 30 June 2013 was Ryan Smith MP, Minister for Environment and Climate Change. The name of the accountable officer for the whole of the financial year ended 30 June 2013 was B Jackson.

(b) Accountable Officer remuneration Remuneration received or receivable by the Accountable Officer in connection with the management of Parks Victoria during the reporting period was in the range:

$350,000 to $359,999 (2012–13) $320,000 to $329,999 (2011–12)

2013 2012 $’000 $’000 (c) Board members remuneration Total remuneration received or due and receivable by Board Members from the reporting entity was: 187 135

Number Number

The number of Board Members of the reporting entity included in this figure is as below: Income of: $0 to $9,999 1 2 $10,000 to $19,999 3 – $20,000 to $29,999 4 5 $30,000 to $39,999 1 – Parks Victoria Annual Report 2012–2013 Page 83

Notes to the Financial Statements For the Financial Year ended 30 June 2013

(d) Executive officers remuneration The number of executive officers, other than Ministers and Accountable Officers, and their total remuneration during the reporting period are shown in the first two columns in the table below in their relevant income bands. The base remuneration of executive officers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, long-service leave payments, redundancy payments and retirement benefits. The total annualised employee equivalent provides a measure of full time equivalent executive officers over the reporting period. A number of employment contracts were completed during the year and renegotiated and a number of executives received bonus payments during the year. These bonus payments depend on the terms of individual employment contracts. Some contracts provide for an annual bonus payment whereas other contracts only include the payment of bonuses on the successful completion of the full term of the contract.

Total Remuneration Base Remuneration

2013 Number 2012 Number 2013 Number 2012 Number

$140,000 to $149,999 5 3 6 5 $150,000 to $159,999 1 3 – 3 $160,000 to $169,999 1 4 3 4 $170,000 to $179,999 2 3 1 3 $180,000 to $189,999 2 3 4 2 $190,000 to $199,999 3 – 4 1 $200,000 to $209,999 3 2 – – $210,000 to $219,999 1 – – – $220,000 to $229,999 – – – 1 $230,000 to $239,999 – 1 – – $260,000 to $269,999 – – – 1 $290,000 to $299,999 – 1 – – Total number of executives 18 20 18 20 Total annualised employee equivalent (AEE) (a) 18 20 18 20 Total amount ($ ‘000) 3,175 3,574 3,059 3,428

Note: (a) Annualised employee equivalent is based on working 38 ordinary hours per week over the reporting period. (b) Total Remuneration includes performance pay, payments made on termination such as long service leave, annual leave & redundancy. (c) Base Remuneration is exclusive of bonus payments, long service leave payments, redundancy payments and retirement benefits. * This table includes those officers who’s annual remuneration exceed $141,667. * The comparatives for 2012 have been amended to comply with the new reporting requirements FRD 21B.

(e) Other transactions of board members and board member-related entities 2013 2012 $’000 $’000 Other transactions of board members and board member-related entities conducted at arm’s length. Zoos Victoria 46 8 Zoological Parks and Gardens Board 2 3 People and Parks Foundation 1 123 GHD Consultants 576 403 Earthwatch 4 – University of Ballarat 48 – Wannon Water 12 – University of Melbourne 431 – Total 1,120 537 PAGE 84 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2013

33 Financial instruments

(a) Financial risk management objectives Parks Victoria’s activities expose it primarily to the financial risks of changes in interest rates. Parks Victoria does not enter into derivative financial instruments to manage its exposure to interest rate risk. Parks Victoria does not enter into or trade financial instruments, including derivative financial instruments for speculative purposes as per the Victorian Governments Borrowing and Investment Powers Act 1987 and subsequent amendments. The policies for managing this risks is discussed in more detail below.

(b) Significant accounting policies Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 2 to the financial statements. The carrying amounts of Park Victoria's financial assets and financial liabilities by category are in Table 33.1 below.

Table 33.1: Categorisation of financial instruments 2013 2012 Note Category $’000 $’000 Financial assets Cash and deposits 13 Loans and receivables (at amortised cost) 87,340 58,423 Receivables 14 Loans and receivables (at amortised cost) 1,929 2,101 Other financial assets 15 Available-for-sale financial assets (at fair value) – 50,000

Financial liabilities Payables 20 At amortised cost 22,278 28,597

Note: (a) The amount of receivables disclosed here exclude statutory receivables (i.e. amounts owing from Victorian Government and GST input tax credit recoverable). For 2013 this was $9.0M (2012 $12.5M).

(c) Significant terms and conditions There are no other significant terms and conditions applicable to Parks Victoria, in respect of each class of financial asset, financial liability and equity instrument, except those required by FRD 114A Financial Instruments.

(d) Credit risk Credit risk arises from the financial assets of Parks Victoria, which comprise cash and cash equivalents, trade and other receivables, and available-for- sale financial assets. Parks Victoria’s exposure to credit risk arises from the potential default of counter party on their contractual obligations resulting in financial loss to the agency. Credit risk is measured at fair value and is monitored on a regular basis. Credit risk associated with the agency’s financial assets is minimal because the main debtor is the Victorian Government. For debtors other than government, it is Parks Victoria’s policy to only deal with entities with high credit ratings and to obtain sufficient collateral or credit enhancements where appropriate. In addition, the agency does not engage in hedging for its financial assets and mainly obtains financial assets that are on fixed interest. The agency’s policy is to only deal with banks with high credit ratings. Provision for doubtful debts is recognised when there is objective evidence that Parks Victoria will not be able to collect a receivable. Objective evidence includes financial difficulties of the debtors default payments, debts which are more than 90 days overdue and changes in debtor’s credit ratings. Except as otherwise detailed in the following table, the carrying amount of contractual financial assets recorded in the financial statements, net of any allowances for losses, represents Parks Victoria’s maximum exposure to credit risk without taking account of the value of any collateral obtained. Parks Victoria Annual Report 2012–2013 Page 85

Notes to the Financial Statements For the Financial Year ended 30 June 2013

Table 33.2: Credit quality of contractual financial assets that are neither past due nor impaired

Financial Government Government institutions agencies agencies Double-A credit Triple-A credit Triple-B credit rating rating rating Other Total $’000 $’000 $’000 $’000 $’000 2013 Cash and deposits 87,340 – – – 87,340 Receivables – 1,216 – – 1,216 Investments and other financial assets – – – – – Total contractual financial assets 87,340 1,216 – – 88,556

2012 Cash and deposits 58,433 – – – 58,433 Receivables – 1,083 – – 1,083 Investments and other financial assets – 50,000 – – 50,000 Total contractual financial assets 58,433 51,083 – – 109,516

Note: (i) The total amounts disclosed here exclude statutory amounts (e.g. amounts owing from Victorian Government and GST input tax credit recoverable).

Financial assets that are neither past due nor impaired Currently Parks Victoria does not hold any collateral as security nor credit enhancements relating to any of its financial assets. As at the reporting date, there is $500k of receivables that have been assessed as impaired. There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and they are stated at the carrying amounts as indicated. The following table discloses the ageing only of financial assets that are past due but not impaired, and impaired financial assets.

Table 33.3: Ageing analysis of financial assets(a)

Past due but not impaired

Not past due and Less than Carrying amount not impaired 1 Month 1–3 months 3 months – 1 year 1–5 years $’000 $’000 $’000 $’000 $’000 $’000 2013 Other receivables 1,929 1,216 238 130 – 345 1,929 1,216 238 130 – 345 2012 Other receivables 2,101 1,083 310 244 – 464 2,101 1,083 310 244 – 464

Note: (a) Ageing analysis of financial assets excludes statutory receivables (e.g. amounts owing from Victorian Government and GST input tax credit recoverable). PAGE 86 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2013

(e) Liquidity risk Liquidity risk arises when the Park Victoria is unable to meet its financial obligations as they fall due. Park Victoria operates under the Government fair payments policy of settling financial obligations within 30 days and in the event of a dispute, making payments within 30 days from the date of resolution. It also continuously manages risks through monitoring future cash flows and maturities planning to ensure adequate holding of high quality liquid assets and dealing in highly liquid markets. Parks Victoria’s exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of risk. Cash for unexpected events is generally sourced from liquidation of available-for-sale financial investments. The following table discloses the contractual maturity analysis for the Park Victoria’s financial liabilities.

Table 33.4: Interest rate exposure and maturity analysis of financial liabilities

Maturity dates

Non Interest Less than Carrying amount Bearing 1 month 1–3 months 3 months–1 year 1–5 years $’000 $’000 $’000 $’000 $’000 $’000 2013 Amounts payable 2,564 2,564 2,564 – – – to other government agencies Other payables 19,714 19,714 19,714 – – – 22,278 22,278 22,278 – – – 2012 Amounts payable to 1,669 1,669 1,669 – – – other government agencies Other payables 26,928 26,928 26,928 – – – 28,597 28,597 28,597 – – –

(f) Market risk Parks Victoria’s exposures to market risk are primarily through interest rate risk with only insignificant exposure to foreign currency risk. A sensitivity analysis has been prepared for interest rate risk, as it is deemed as a significant market risk on the return to Parks Victoria. Objectives, policies and processes used to manage each of these risks are disclosed in the paragraphs below.

Interest rate risk The fair value interest rate risk is the risk that the fair value of a financial instrument will fluctuate because of changes in market interest rates. The carrying amount of financial assets that are exposed and its sensitivity to interest rates is set out in table 33.5.

Table 33.5: Interest rate market risk exposure

Interest rate risk

Net Result Net Result $’000 $’000 Financial assets: 2013 -50 basis points +50 basis points Other financial assets – based on actual 2012–13 closing balance Carrying amount $87.3M @ 30 June 2013 (436) 436

Financial assets: 2012 -50 basis points +50 basis points Other financial assets – based on budgeted 2011–12 closing balance Carrying amount $108.4M @ 30 June 2012 (542) 542 Parks Victoria Annual Report 2012–2013 Page 87

Notes to the Financial Statements For the Financial Year ended 30 June 2013

The interest rate risk analysis has been applied on the total of $87.3M, on the estimate that the minimum interest rate decrease will be 0.50 % and the maximum increase will be 0.50 % . Exposure to interest rate risk is reduced as funds are held in fixed interest term deposits. The weighted average cash interest rate earned for 2012–13 was 3.54% (2011–12 4.74%).

Foreign currency risk Parks Victoria is exposed to insignificant foreign currency risk through its payables relating to purchases of supplies and consumables from overseas. This is because of a limited amount of purchases denominated in foreign currencies and a short timeframe between commitment and settlement.

(g) Fair value The fair values and net fair values of financial assets and financial liabilities are determined as follows: • the fair value of financial assets and financial liabilities with standard terms and conditions and traded in active liquid markets are determined with reference to quoted market prices; and • the fair value of other financial assets and financial liabilities are determined in accordance with generally accepted pricing models based on discounted cash flow analysis. Parks Victoria considers that the carrying amount of financial instruments assets and liabilities recorded in the financial statements to be a fair approximation of their fair values, because of the short-term nature of the financial instruments and the expectation that they will be paid or received in full.

The carrying values and fair values of financial assets and liabilities at balance date are:

Total carrying amount Aggregate fair value as per balance sheet 2013 2012 2013 2012 $’000 $’000 $’000 $’000 Cash and cash equivalents 87,340 58,423 87,340 58,423 Receivables 1,929 2,101 1,929 2,101 Other financial assets – 50,000 – 50,000 Total financial assets 89,269 110,524 89,269 110,524 Payables 22,278 28,597 22,278 28,597 Total financial liabilities 22,278 28,597 22,278 28,597

34 Committed funds

2013 2012 $’000 $’000 Total funds 87,340 108,423

Committed cash and Investments Government asset and initiative funding 37,364 47,299 Point Nepean park establishment 8,327 16,731 Fire and flood programs (incl. insurance) 15,353 21,003 Sponsored works 10,589 16,628 Restructuring costs 4,730 – Defined Benefits Superannuation obligation 4,290 – Total committed cash 80,653 101,661

These commitments are for complex projects that span greater than one financial year. Parks Victoria receives significant funding in advance from many sources and manages its cash to ensure its capacity to meet immediate financial commitments as they arise.

35 Post balance date events

Parks Victoria is unaware of any events subsequent to the reporting date that will have a material impact on its financial position or future financial performance. PAGE 88 FINANCIAL REPORT

Statutory Certificate Parks Victoria Annual Report 2012–2013 Page 89

Auditor’s Report PAGE 90 FINANCIAL REPORT

Auditor’s Report

Parks Victoria Level 10, 535 Bourke Street, Melbourne, Australia www.parks.vic.gov.au or call 13 19 63