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NEWCASTLE SHOWGROUND & EXHIBITION CENTRE TRUST

ANNUAL REPORT

2006/2007

Brown Road, Broadmeadow NSW 2292

PO Box 280, Waratah NSW 2298

Phone 02 4921 2100 - Fax 02 49212199 NEWCASTLE SHOWGROUND & EXHIBITION CENTRE TRUST

ANNUAL REPORT

FOR THE YEAR ENDED 30TH JUNE 2007 SUBMITTED TO THE MINISTER FOR TOURISM, SPORT AND RECREATION IN ACCORDANCE WITH THE ANNUAL REPORTS (STATUTORY BODIES) ACT 1984

Location Newcastle Showground Brown Road Broadmeadow NSW 2292

Postal Address PO Box 280 Waratah NSW 2298

Office Hours 9.00am to 5.00pm Monday - Friday

9.00am to 1.00pm Saturday

Extended hours in accordance with event activity.

Telephone 024921 2100

Facsimile 0249212199

Website www.oec.net.au

Email [email protected] NEWCASTLE SHOWGROUND & EXHIBITION CENTRE TRUST

ANNUAL REPORT 2006/2007

Contents Page

Presentation Letter ...... 3

Chairmans Report ...... 4

I. Constitution ...... , ...... 5

2. Charter ...... 5

3. Aims and Objectives ...... , ...... 5

4. Management and Structure ...... 5

5. Sumnlary Revie\v of Operations ...... 6

6. Ethnic Affairs Action...... 7

7. Human Resources ...... 7

8. Other Associations ...... 7

9. Occupational Health and Safety ...... 7

10. Freedom of Information ...... 8

II. Consullants ...... 8

12. Annual Report Printing ...... 8

Plan of Newcastle Showground ...... 9

Management and Staff Structure as at 30/6/2007 ...... 10

Trustees' Profiles as at 30106/2007 ...... 11-12

Listing of Sub-Committees ...... 13

Trustees' Statement ...... 14

Independent Audit Report ...... 15-16

200612007 Audited Financial Statements ...... 17-32

2 PRESENTATION LETTER

Newcastle Showground & Exhibition Centre Trust

Brown Road, Broadmeadow NSW 2292

PO Box 280, Waratah NSW 2298

Phone 102) 492 J 2 J 00 Fax 102) 492 J 2 J 99

21st December. 2007

The Hon. Graham West. MP Minister for Tourism and Sport and Recreation Level 31, Governor Macquarie Tower I Farrer Place SYDNEY NSW 2000

Dear Minister,

I have much pleasure in presenting to you tbe Annual Report of the Newcastle Showground & Exhibition Centre Trust for the financial year ended 30tb June 2007. as required under the Annual Reports (Statutory Bodies) Act of 19 84. Also included are the Trust's financial statements which have been audited in accordance with the requirements of the Public Finance and Audit Act of 19 83.

Yours sincerely,

Robert J, Edwards Chairman

3 CHAIRMAN'S REPORT

In accordance with the Annual Report Statutory Bodies Act 1984, I have pleasure in submitting the Newcastle Showground and Exhibition Centre Trust Annual Report for the year ending 30th June 2007.

The Trust has delivered an operating surplus of $429,682 before depreciation. The operating result excludes a government grant of $53,103 and the effects of the storm that occurred on June 8, 2007. This financial result compares favourably with the previous year surplus of $407,694. The operating surplus has allowed for a small amount of capital expendirure and the scheduled loan repayment to the Commonwealth Bank. The final instalment on this loan is due in January 2008.

The Newcastle Entertainment Centre located on the Showground was occupied for 123 days in this financial year and is the main contributor to the operating result. There are some other well maintained adjacent buildings that receive regular use and make minor contributions to the overall result. Apart from the Entertainment Centre and adjacent buildings, the rest of the Showground is in average condition, although some improvements have been made in the recent financial year. The Showground is used by the Newcastle Agricultural. Horticultural and Industrial Association for the purposes of hosting the annual Newcastle Regional Show. There was no show held in this financial year due to the financial position of the Association and a dispute with its amusement ride provider. The Association was also concernedwith the condition of the Showground but the Trust does not believe this was sufficient to affect the event. The Trust continued to host Speedway and Monster Truck events in the Showground during the year. The original dedication of the site is for the use and general purposes of the Association and accordingly, the Trust receives no rental for the facility during the annual Show or for the building that serves as the Association's office on a permanent basis. The current dedication restricts the Trust from persuing alternative or additional uses for the site, some of which could improve revenue.

The Trust has received notification from the NS\V Government of a $1.475 million capital improvement program. This will assist with updating the Showground buildings to the current BCA code and fire protection standards. The Trust conveys its appreciation to the Minister for Sport and Recreation, Graham West.

The Newcastle area was affected by severe storms on June 8, 2007 which caused a large amount of damage to the site. The damage was dlle to high winds and water ingress with the buildings having a metre of water flowing through them. The repair cost is estimated at approximately 52 million and the Trust was adequately insured. The Entertainment Centre was without power for eight days but managed to maintain event activity with no cancellations and only two postponements. The recovery from the storm will present opportunities to improve the facilities by combining insurance proceeds with the Trust's own funds.

The Trust continues to be appointed for a term of one year which is not ideal for the future management of the site. r would like to convey my appreciation to my fellow Trustees for their contribution and support throughout the last year.

An overview of the Trust's activities, structure and finances are detailed in the following pages. The Trust contributed both economically and culturally to the region and notes the community satisfaction in which its activities are received.

Robert J. Edwards Chairman

4 NEWCASTLE SHOWGROUND & EXHIBITION CENTRE TRUST

1. Constitution

The Newcastle Showground is a Crown Reserve, administered by a Trust under the auspices of the Crown Lands Act 1989, and the Newcastle Agricultural, Horticultural and Industrial Association Act 1905 Cas amended).

The Newcastle Showground and Exhibition Centre Trust was constituted under the Newcastle Agricultural, Horticultural and Industrial Association Act of 1905 and charged with the care, control and management of the area on behalf of the Government.

The Trustees were appointed by the Minister under Section 93 of the Crown Lands Act 1989.

The Trust currently consists of eight members and the term of these members expires on 22nd July 2008.

2. Charter

The Trust will manage the Crown Reserve known as the Newcastle Showground to ensure that it provides to the community, facilities which can be run for the purposes of its fannalion, that is, for activities for public enjoyment, including the annual Newcastle Regional Show.

3. Aims and Objectives

The Trust will achieve its charter by the following corporate objectives:

(i) Provide emertairunent, exhibition and recreational facilities of a national and international standard for the .

(ii) Encourage the maximum use of the facilities.

Ciii) Manage the complex in a commercial manner.

(iv) Co-ordinate and manage works for the improvement, development and maintenance of the Crown Reserve.

4. Management and Structure

As at 30/612007 Chairman: Mr. R J Edwards, JP Deputy Chairperson: Mrs. S Macleod, BSSc, MSSc, JP Trustees: Mr. D R Saddington, JP Mr. R Warty, FACE, IP Mrs. C Croll, B Ed, Dip CCO, Cen IV Trainer/Assessor Mr. J G Fitzgerald, BSc, MllE, FIE Aust, CP Eng Mr. B PChard Mr P Keady

The full Trust meets formally once a month.

5 NEWCASTLE SHOWGROUND & EXHIBITION CENTRE TRUST

5. Summary Review of Operations

The Newcastle Showground services the region whkh includes the Central Coast, west to Moree and Armidale and north to Coffs Harbour. This is an important consideration because the potential audience reach is up to one million patrons.

The 200612007 year represented the fifteenth full year of operations of the Entertairunent Centre. Entertainment Centre Exhibition Centre Showground Number of Events � 16 18 Performance Days 90 100 19 Event Days (including bump in and bump out) 123 110 21

The Showground is used for car parking during events held in the Entertainment Centre.

The Trust also accorrunodates the Newcastle Agricultural, Horticultural and Industrial Association, organisers of the Newcastle Regional Show and the Woodturners of the Hunter on the Sbowground.

Attendance levels by event profile: Popular Concerts 44,925 Rock Concerts 13,556 Sporting Events 15,387 Family Shows 114,721 Newcastle Regional Show o Newcastle City Farmers Markets 16.000 Exhibitions 55,364 Dinners and Functions 2,250 Total Attendance: 246,203

The events we hosted during this year were as follows: International National Local Disney on Ice Parenting Expo Computer Fairs WWE Wrestling Hunter Jaegers Herald Hunter Homeshow Daniel O'Donnell Countdown The Hunter United Woodworking Dwight Yoakam Auto Salon Hobbies and Craft Expo Pearl Jam IN XS HSC Exam Marking Scissor Sisters Hunter Business Expo Newcastle Permanent Christmas Party Liule Britain Gouger Rugs Sale St Francis Xavier School Formal Paul Stanley Rogue Traders St Philips Christian College Speech Day Pink Monster Trucks Hunter Lifestylc Expo Live The Living End Youth Alive Network 21 Conference Newcastle City Farmers Markets Hi 5 The Veronicas AnulOny Mundine Fight Lee Kernaghan The Wiggles CD Sale Singapore Sljngers Basketball Australian Speedway Titles Rickshaws Hal Rods Worldskills

6 NEWCASTLE SHOWGROUND & EXHIBITION CENTRE TRUST

The Trust raises revenue from these events through rental, catering. equipment hire. car parking. merchandising and ticketing commission.

The 2006/07 year saw the number of events hosted by the Trust decrease by 18 due primarily to the Hunter Pirates basketball team ceasing to participate in the National Basketball League.

The primary revenue driver is concert activity which is very unpredictable. Tbe Trust and its managers, Ogden [FC continue to strengthen the relationships with concert promoters to ensure that the maximum level of event activity is secured. In recent years the venue industry has become more competitive leading to reduced financial yields. Management has continued to pursue exhibitions to increase the event activity. These events are repeated annually and reduce reliance on the concert market.

The Enlertainmem Centre had one anchor tenant during {he financial year under review. The Hunter Jaegers played 4 home games this financial year attracting 6,908 people. The number of games vary each year due to the end of the financial year being in the middle of the season and affected by the timing of the draw. While anchor tenants do not contribute large amounts to the Trust's financial result, there are benefits of increased profile, employment for casual staff and opportunities for suppliers.

The Trust has assisted many local charities and fundraising activities throughout the year by making tickets available for prizes at selected events. In addition, the Entertainment Centre was made available at no charge for use by tbe Special Children's Christmas Party which is held for disabled and disadvantaged children. The Trust also makes its facilities available at reduced rates on many other occasions to assist in fundraising activities and the hosting of community events.

6. Ethnic Affairs Action

The Trust's core business is the provision of entertainment and recreation facilities for the entire community of Newcastle, the Hunter Region and surrounding regions. However, the Trust operates under the basis of provision of equal opportunities in the areas of venue hiring, provision of customer service and employment opportunities. The Trust encourages the patronisation of tbe facilities and employment of the ethnic community within the Entertainment Centre and Showground.

7. Human Resources

The Trust does not directly employ any staff. However, Ogden IFC (Newcastle) Pty Limited, as agents of the Trust, employ in excess of 180 staff.

8. Other Associations

The Trust continued to employ the services of Ogden IFC (Newcastle) Pty Limited as its agent to manage the grounds on its behalf, accorcting to the terms and conditions of a commercial management agreement. The agreement is commercially based, and complies witb the Trust's responsibilities and obligations as dictated by the Crown Lands Act of 1989. A Human Resources Organisation Chart is included on page 10 of this Report.

9. Occupational Health and Safety

The Trust attempts to provide the safest environment for staff and visitors. A Policy and Emergency Procedures Manna I is in place.

7 NEWCASTLE SHOWGROUND & EXHIBITION CENTRE TRUST

10. Freedom of Information

In accordance with the Freedom of Infoffi1ation Act 1989, members of the public may seek information from the Trust. Requests under the Freedom of lnforrnationAct for access to documents held by the Trust must be made in writing and accompanied by a fee of $30.

No applications were received in 200612007.

Enquiries may be made in person, by mail or by phone as follows:

Location: Newcastle Showground & Exhibition Centre Trust Showground, Broadmeadow, NSW 2292

Postal Address: PO Box 280 Waratah NSW 2298

Office Hours: 8.30am - 5 .00pm Monday - Friday (inclusive)

Telephone Enquiries: (02) 4921 2100 Fax: (02) 4921 2199

FOI Officer Chris Blanch Secretary

11. Consultants

The Trust engaged consultants during the year to provide advice regarding industrial relations, building valuation, general legal and safety audit. The total cost for these services was $15,190.

12. Annual Report Printing

The Annual Report was printed at a cost of $1,963.50. The report is on the website at www.oec.net.au.

8 PLAN OF NEWCASTLE SHOWGROUND

133�iS NOS)I:Jvr

9 MANAGEMENT AND STAFF STRUCTURE AS AT 30/612007

Group General Manager Ogden IFe, Arena Network

Chris Blanch General Manager

Kate Lewis AdminisU"ationAssistant (part Time)

I David Evans Natalie Reed David Hardes David Lynch Catering & Cleaning Events Manager Operations Manager Financial Controller Services Manager

Stephen Todd Polly Val11avas Brian Conway Stacey Crooks - Technical Supervisor Events Supervisor Catering Supervisor r- Trainee Accountant - Events

Mel Butler George Spyropoulos Casual Kiosk & Casual Ticket Seller Technical Supervisor Confectionery Staff Treasury Staff (Part Time) - Venue & Maintenance

Deb Regan Amanda Davis Liz Dabelstein Ticket Seller Glen Hughes Cleaning Supervisor Accounts Clerk (Part Time) Venue Attendant (Part Time) (part Time)

Casual Ticketing Casual Technical Lisa Clarkson '- Jann Waldron Staff Cleaning Supervisor Staff r- Payroll Clerk (Part Time) Merchandise Supervisor (part Time) Casual Front of House Staff Casual Beverage Staff Cleaning Contractor I

Casual Merchandise Staff Rebecca Van Groningen Receptionist (Part Time)

Brenda McTaggru1 Receptionist (Part Time)

Security Contractor

Casual Car Park Staff

10 TRUSTEES' PROFILES AS AT 30/6/2007

Robert J Edwards - JP Chairman Former New South Wales State Returning Officer (Charlestown Electorate) Retired 2006 Returning Officer for Wa1lsend RSL & Community Club Retired School Teacher & 20 years as School Principal Certificate of Librarianship QualifiedAccountant with Auditing and Company Secretary experience Auditor for Primary & Secondary Schools Regional Sports Association Member of Newcastle A H & I Association Committee Former Chairman, Greens & Grounds Committee Merewether Golf Club Ltd Former Director & Vice President, Merewether Golf Club Ltd Former Treasurer, Wa1lsendDistrict Cricket Club Inc Life Member, Hunter Region Primary Schools Sports Association Life Member, Newcastle International Sports Centre Life Member, Merewether Golf Club Ltd Returning Officer,Merewether Golf Club Ltd Justice of the Peace

Susan Macleod - BSSe, MSSe, JP Deputy Chairperson Direcro[, NextGen.Net Commissioner, Catholic Education Commission of NSW Founding Member, Maitland Diocese Children With Special Needs Committee Representative Member Friends of OfficialVisitor, Department of Corrective Services, Cessnock

Ray B Warry - FACE, JP Retired School Teacher with 28 years as School Principal Life Member, RSPCA Life Member, WLPSA Foundation Member, FOG Member of Newcastle A H & I Association Committee Former Rotarian Former Member of the Royal Zoological Society of New South Wales Former Member of Board, School of Education, NCAE & HIHE Fellow of the Australian College of Educators Judiciary Member, Newcastle & Hunter Rugby Union Inc Member of Community Aid Panel (Newcastle Police) Executive Member, Eastern Districts (N ewcastle) Rugby Union Club

Dudley R Saddington insurance Risk Surveyor Past Presidenr, Newcastle A H & I Association

II TRUSTEES' PROFILES AS AT 30/6/2007

Catherine Croll, - B Ed, Dip CCD, Cert IV Trainer!Assessor Cultural Researcher, Top End, Northern Territory Cultural Planner, Southern Councils, Illawarra Trustee, Newcastle Historic Reserve Trust Principal Trainer, Community. Cultural Development NSW Former Executive Director, Arts Hunter & Newcastle Community Arts Centre Former Regional Cultural Development Officer, Riverina (19 NSW LGAs) Former Member, Hunter Business, Regional Development Committee Fellow, AustralianRural Leadership Foundation Former Vice President, NSW ConmlUnity Arts Association Former Board Member, Arts Council of NSW Founding Member, Museum of Conremporary Art, Sydney Life Member, Art Gallery of NSW Cultural Planner· Bicentennial Park Executive Member of The National Arts & Cultural Alliance

John G Fitzgerald - B Sc (Tech), Industrial Engineering, MIIE FIE Aust, CP Eng Former Board Member, Hunter Area Health Service (2000-2004) Former Board Member, Newcastle Port Corporation (1995-2005) Council Member, Hunter Institute Foundation Board Member, Hunter Institute Foundation Former Chief Executive and Director A Gonman & Co Limited

Ben P Chard Regional Co-ordinator - Hunter, NSW Premier's Department Member of International Sports Centre Trust Member of Newcastle Showground and Exhibition Centre Trust Member of the Donaldson Job Creation Trust Chainnan of the Lower Hunter Economic Development Forum Chairman of the Upper Hunter Economic Development Forum Member of BHP Development Trust Chairman, Newcastle Licencing Accord Former Regional Director, Department of State & Regional Development & General Manager, Hunter Economic Development Corporation Former Alderman, Dubbo City Council

Phil Keady Director, Properties and Venues, NSW Sport and Recreation Trustee, Hunter International Sports Centre Trust Member, Venue Management Association Member, Australian lnstiture of Company Directors Master of Town Planning, UNSW Bachelor of Engineering, Monash University Graduate Diploma, Recreation Planning

12 LISTING OF SUB-COMMITIEES

Liaison and Audit Committee

Established as a liaison mechanism between the Trust and its agent, Ogden!FC (Newcastle) Pty Ltd to facilitate the best possible management of the Showgrounds and Entertainment Centre, and to review the financial perfonnance and position of the Trust on a monthly basis:

Mr J Fitzgerald (Chairman) Trust Mr R Edwards Trust Mr R Warry Trust Mr C Blanch Ogden !FC(Newcastle) Pty Ltd Mr D Lynch Ogden!FC (Newcastle) Pty Ltd

Ogden IFC (Newcastle) Pty Ltd

The Directors of Ogden !FC (Newcastle) Pty Ltd are:

Harvey Lister Rod Pilbeam

Attendance at Full Trust Meetings

Eleven (II) full Trust meetings were held during the year ended 30th June 2007. Attendance by Trustees at meetings were: No. Meetings Attended Mr R J Edwards 11 Mrs S Macleod 8 Mr. D R Saddington 11 Mr. R Warry 11 Mrs C Croll 7 Mr. J G Fitzgerald 10 Mr. B PChard 7 Mr. P Keady 8

13 STATEMENT BY TRUSTEES

Pursuant to Section 41c( I)(B) of the Public Finance and Audit Act 1983, and in accordance with a resolution of the Trustees of the Newcastle Sbowground and Exhibition Centre Trust incorporated, we declare that in our opinion:

1. The accompanying [mancial statements exhibit a true and fair view of the Newcastle Showground and Exhibition Centre Trust Incorporated as at 30th June, 2007 and transactions for the year then ended.

2. The financial statements have been prepared in accordance with the Public Finance and Audit Regulation, 2005 and Treasurer's Directions. We are not aware at this time of any circumstances which would render any particulars included in the financial statements to be misleading or inaccurate.

R. J. Edwards Chairman

� R. Warry Trustee

Dated 16th November, 2007.

14 NEWCASTLE SHOWGROUND & EXHIBITION CENTRE TRUST

GPO BOX 12 Sydney NSW 2001

INDEPENDENT AUDIT REPORT

Newcastle Showground and Exhibition Centre Trust

To Members of the New South Wales Parliament

I have audited the accompanying financial report of the Newcastle Showground and Exhibition Centre Trust (the Trust), which comprises the balance sheet as at 30 June 2007, and the income statement, statement of changes in equity and cash flow statement for the year then ended, a summary of significant accounting policies and other explanatory notes.

Audit Opinion

In my opinion, the financial report:

presents fairly. in all material respects, the financial position of the Trust as of 30 June 2007, and of its financial performance and its cash flows for the year then ended in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations)

is in accordance with section 41B of the Public Fillallce and Audit Act 1983 (the PF&A Act) and the Public Finance and Audit Regulation 2005.

Trustees' Responsibilityfor the Finallcial Report

The Trustees are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the PF&A Act. This responsibility includes establishing and maintaining internal control relevant to the preparation and fair presentation of the tinancial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor's Responsibility

My responsibility is to express an opinion on the financial report based on my audit. I conducted my audit in accordance with Australian Auditing Standards. These Auditing Standards require that I comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgement. including the assessment of the risks of material misstatemenr of the fmancial report, whether due to fraud or error. In making those risk assessments, the auditopr considers internal control relevant to the Trust's preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Trustees, as well as evaluating the overall presentation of the financial report.

l5 NEWCASTLE SHOWGROUND & EXHmITION CENTRE TRUST

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

My opinion does not provide assurance:

about the future viability of the Trust,

that they have carried Ollt their activities effectively, efficiently and economically, or

about the effectiveness of their internal controls.

Independence

In conducting this audit, the Audit Office has complied with the independence requirements of the Australian Auditing Standards and other relevant ethical requirements. The PF&A Act further promotes independence by:

providing that only Parliament, and not the executive government, can remove an Auditor-General, and

mandating the Auditor-General as auditor of public sector agencies but precluding the provision of non-audit services, thus ensuring the Auditor-General and the Audit Office are not compromised in their role by the possibility of losing clients or income .

...-.

P J Boulous CA Director, Financial Audit Services

SYDNEY 27 November 2007

16 r.t INCOME STATEMENT �

FORTHEYEAR ENDED 30 JUNE 2007

Note 2007 2006 $ $

Revenue from continuing activities 3 3,326,011 3,435,466

Other Income 3 253, 103 3,438,44 1

Raw materials and consumables used 7 (453,059) (541,425)

Employee benefits expense ( 1 ,340,443 ) (1,399,7 12)

Depreciation expense 4 ( 1 ,224,434 ) (1,2 18,671)

Borrowing cost expense 4 (33,739) (280,427)

Management fees (414,547) (397,996 )

Repairs and Maintenance (181,380) ( 145,648)

Insurance (167,402) (188,0 12)

Doubtful debt expense 4 (6 1 ,992)

Write off assets damaged by storm 4 (72, 164 )

Expenses relating to storm damage (380,464 )

Other expenses from continuing activities (305,759) (249,273 )

Profit Before Income Tax (994,277) 2,390,751

Income Tax Expense

Profit for theYear (994,277) 2,390,75 1

The above income statement should be read in conjunction with the accompanying notes.

17 t.I. rt.eN BALANCE SHEET

AS AT 30 JUNE 2007

Note 2007 2006 $ $

Current Assets

Cash and Cash Equivalents 5 2,442,928 3,056,826

Trade and Other Receivables 6 237,058 247,847

Inventories 7 55,990 57,0 19

Total Current Assets 2,735,976 3,361,692 Non-Current Assets

Property, plant and equipment 8 26,056,385 39,028,540

Total Non-Current Assets 26,056,385 39,028,540 To tal Assets 28,792,361 42,390,232 Current Liabilities

Trade and other payables 9 2,606,034 2,869,07 1

Interest bearing liabilities 10 259, 137 236,347

Non interest bearing liabilities II 50,000 50,000

Provisions 12 149,550 141,177

Total Current Liabilities 3,064,72 1 3,296,595 Non-Current Liabilities

Interest bearing liabilities 13 125,000

Provisions 14 37,418 32,267

Total Non-Current Liabilities 37,418 157,267 To tal Liabilities 3, 102, 139 3,453,862 Net Assets 25,690,222 38,936,370 Equity

Asset Revaluation Reserve 15(a) 19,540,477 31,792,348

Retained Profits 15(b) 6, 1 49,745 7, 144,022 To tal Equity 25,690,222 38,936,370

The above balance sheet should be read in conjunction with the accompanying notes.

18 STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2007

Note 2007 2006 $ $

To tal Equity at Beginning of the Financial Year 38,936,370 36,545,619

Total Changes in Equity Recognised

in the Income Statement 15(b) (994,277) 2,390,751

Revaluation Decrement 15(a) (12,251,871)

Total Equity at the End of the Financial Ye ar 25,690,222 38,936,370

The above statement of chonges in equity should be read in conjunction with the accompanying notes.

19 ,,(al� �� CASH FLOW STATEMENT

FOR THEYEAR ENDED 30 JUNE 2007

Note 2007 2006 $ $

Cash Flows from Operating Activities Inflows Inflows (Outflows) (Outflows)

Receipts from customers 3,394,039 4,788,112

Interest received 95,275 64,913

Interest subsidies received 236,713

Grant received 53,103 3,171,348

Interest and other costs of finance paid (31,363) (278,990)

Payments to suppliers and employees (3,446,427) (3,338,476 )

Net cash provided by operating activities 24 64,627 4,643,620

Cash Flows from Investing Activities

Payment for property, plant and eqUipment (576,3 14) (161,070)

Proceeds from sale of property. plant and equipment

Net cash used in investing activities (576,314 ) (161,070)

Cash Flows from Financing Activities

Proceeds from borrowings 20 1,204 278,490

Repayment of borrowings (303,415) (3,5 17,246)

Net cash provided by (used) in financing activities (102,2 11 ) (3,238,756)

Net Increase (Decrease) in Cash Held (613,898) 1,243,794

Cash at beginning of the financial year 3,056,826 1,8 13,032

Cash at End of the Financial Ye ar * 5 2,442,928 3,056,826

* Cash includes $1,694,009 which has been collected by the Trust as an agent of the promoter in respect of advance ticket sales.

The above statement of cash paws should be read in conjunction with the accompanying notes.

20 NOTES TO AND FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 30 JUNE 2007

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Newcastle Showground and Exhibition Centre is a Crown Reserve administered by a Tr ust under the auspices of the Crown LandsAct, 1989 (commenced I st May, 1990) and the NewcastleAgricultural, Horticultural and Industrial Association Act 1905 (as amended).

The Trust has appointed Ogden IFC (Newcastle) Pty Ltd to manage and operate all Newcastle Showground site facilities on its behalf. Effective from the year ended 30th June, 1991, the Trust is included in Schedule 2 of the Public Finance and Audit Act, 1983. As required by Section 41 (I) of the Act, the Trust has kept proper accounts and records of its operations.

The Trust operates with the objective of placing the Newcastle Showground and Exhibition Centre and surrounding premises under the care, control and management of the Trust for use as a Showground and for recreation, entertainment and exhibition purposes.

The Trust's Financial Statements are a general purpose financial report which have been prepared in accordance with Australian equivalents to International Reporting Standards (AI FRS). other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Interpretations, the provisions of the Finance and Audit Act 1983, the Public Finance and Audit Regulation 2005 and the Treasurer's directions. The statements have also been prepared under the historical cost convention using accrual accounting, except for certain assets which as noted, are at valuation.

(a) Changes in Accounting Policy

The Trust's accounting policies and procedures are consistent with those of the previous year.

(b) Income Tax The Trust is exempt of income tax under Section 50-25 of the Income TaxAssessment Act, 1997 (as amended).

(c) Inventories Stock on hand is stated at the lower of cost and net realisable value.

(d) Receivables and Revenue Recognition

The Tr ust acts as an agent for Ticketek and its customers in respect of advance ticket sales with ticket commission revenue and other revenues in relation to the use of the facility, recognised at the time of the event occurring. The Trust's management agent manages the Ticketek agency arrangement with the revenue brought to account on a net basis.

Collectibility of debtors is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A provision for doubtful debts is raised when there is objective evidence that the entity will not be able to collect all amounts due according to the original terms of the receivables.

(e) Depreciation of Property, Plant & Equipment

Depreciation is calculated on a straight line basis so as to write off the net cost or revalued amount of each item of property, plant and equipment (excluding land) over its expected useful life to the entity. Estimates of remaining useful lives are made on a regular basis for all assets, with annual reassessments for major items. The expected useful lives are as follows:

Buildings (and Integral Equipment) 20 to 40 years

(Other) Plant & Equipment 3 to 10 years

21 NOTES TO AND FORMING PART OF THE ACCOUNTS

FORTHEYEAR ENDED 30 JUNE 2007

(f) Trade & Other Creditors These amounts represent liabilities for goods and services provided to the Trust prior to the end of the financial year and which are unpaid. These amounts are unsecured and are usually paid within 30 days of recognition.

(g) Employee Benefits

(i) Wages, salaries and annual leave.

liabilities for wages, salaries and annual leave are recognised, and are measured at the amount unpaid, including applicable on-costs, at the reporting date at current pay rates in respect of employees' service up to that date.

(ii) Long service leave

A liability for long service leave is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels. experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match. as closely as possible. the estimated future cash outflows. (iii) Superannuation

Liabilities for superannuation are recognised, and are measured at the amount unpaid at the reporting date at current employer contribution rates in respect of employees' service up to that date.

(h) Doubtful Debts

The doubtful debts have been reviewed at balance date and appropriate provision has been made for debts which are considered doubtful. Debts which are known to be uncollectible are written off.

(i) Property, Plant & Equipment

Under ruling NSW Treasury determination the Trust is considered to be a transitional/not for profit entity. As future economic benefits are not primarily dependent on the ability of fixed assets to generate net cash flows, Treasury policy in accord with AASB I 16: "Property, plant and equipment" andAASB I 36:"lmpairment of Assets" requires physical non-current assets to be valued at fair value. FairValue is defined as "the amount for which an asset could be exchanged (or a liability settled) between knowledgeable. willing parties in an arm's length transaction".

In March 2007 the Trust obtained an independent valuation of Land and Buildings to comply with the requirements for "fair value" reflection in accord with Tr ust's status. As detailed in Note 8, the valuations provided were adopted at 30 June 2007 on the valuer's advice of no material movement in the period between March 2007 and balance date.

The land component was provided on the basis of market value for current use and classification. Buildings and integral equipment were valued at written down replacement cost.The Trustees are of the opinion that land and buildings are recognised at fair value at 30 June 2007.

Other minor fixed asset classes are recorded at fair value under written down cost methodology.

The crown land in the Trust's control is held under a recognised Crown Leasehold arrangement.This crown land has been included as an asset as the Trust maintains control over the asset.

22 NOTES TO AND FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 30 JUNE 2007

(j) Revaluation of Non-current Assets Land and buildings are revalued with sufficient regularity to ensure carrying values do not materially differ from fair values at balance date. Revaluation decrements are debited directly to the asset revaluation reserve to the extent that the decrement reverses a revaluation increment in respect of that class of asset. Where the decrement exceeds a previously recognised increment, the excess is recognised immediately as an expense.

Revaluation increments are credited directly to the asset revaluation reserve except that. to the extent that an increment reverses a revaluation decrement in respect of that class of asset previously recognised as an expense, the increment is recognised immediately as revenue.

(k) Capital and Maintenance Expenditure

The cost of non-current assets capitalised includes all costs directly associated with the purchase and/or construction of non-current assets. Assets with acquisition costs less than $1,000 are charged as expenses in the year of acquisition. Maintenance, repair costs and minor repairs are charged as expenses as incurred.

(I) Cash For the purposes of the Statement of Cash Flows, cash includes deposits at call which are readily convertible to cash on hand and which are used in the cash management function on a day-to-day basis.

(m) Borrowings Loans are carried at their current capital value, which is the face value of the debt less any unamortized discount or plus unamortized premiums. The discounts or premiums are treated as an interest expense or income, respectively, and amortized over the term of the debt. Interest is accrued over the period it becomes due and is recorded as part of creditors. The financial report for the year ended 30 June 2007 has been authorised for issue by the Tr ustees on 16th November 2007.

2. OPERATING SEGMENT INFORMATION The Trust's operations predominantly entail the provision of entertainment, exhibition, sporting and recreational facilities of national and international standard for the Hunter Region.

23 NOTES TO AND FORMING PART OF THE ACCOUNTS

FOR THEYEAR ENDED 30 JUNE 2007

3, REVENUE Note 2007 2006 $ $ Revenue from Continuing Activities Safes Revenue Venue and Ground Hire 1,178,5 10 1,090,60 1 Sale of goods 1,356,371 1,553,608 Ticketing Income 425,002 44 1 ,948 Other Services 270,853 284,396 3,230,736 3,370,553 Other Revenue Interest 95,275 64,9 13 95,275 64,9 13 Total Revenue from Continuing Activities 3,326,0 II 3,435,466 Other Income Income from Refinancing of Treasury Loan 30,38 1 Income on Insurance claims 18 200,000 Government Grants 53, 103 3.408,060 253, 103 3,438,44 1 Total Revenue 3,579, 114 6,873,907

4, EXPENSES Note 2007 2006 $ $ Profit (Loss) before income tax includes the following specific expenses Depreciation Buildings 8 1,147,507 1,143,988 Plant & Equipment 8 76,927 74,683 Total Depreciation 1,224,434 1,218,67 1 Doubtful Debts 61,992 Borrowing Costs Interest and finance charges 22 33,739 280,427 Provisions Employee benefits 13,525 7,665 Write off assets damaged by storm 72, 164

5, CURRENT ASSETS - Note 2007 2006 CASH AND CASH EQUIVALENTS $ $ Cash at the end of the Financial year as shown in the statement of cash flows is reconciled to the related items in the statement of financial position as follows: Cash on Hand 40,934 71,890 Cash at Bank 707,985 783,840 Sub Total , Cash to fund operations 748,919 855,730 Cash at Bank - Advance Ticket Sales 9 1,694,009 2,201,096 2,442,928 3,056,826

24 NOTES TO AND FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 30 JUNE 2007

6. CURRENT ASSETS - Note 2007 2006 TRADE AND OTHER RECEIVABLES $ $ Trade Debtors 114,601 146,889 Less Provision for Doubtful Debts 61,992 61,992 52,609 84,897 Accrued Income 16,116 15,496 Prepaid Insurance 148,549 127,968 Other prepayments 19,784 19,486 237,058 247,847 There is no significant concentration of credit risk associated with Trade Debtors.

7. CURRENT ASSETS - INVENTORIES Note 2007 2006 $ $ Opening Inventory 57,0 19 64, 102 Plus Purchases for Resale 452,030 534,342 Less Closing Inventory at cost 55,990 57,0 19 Cost of Goods Sold 453,059 541,425

8. NON CURRENT ASSETS - Note 2007 2006 PROPERTY, PLANT AND EQUIPMENT $ $ land At fair value 1/7102 4,800,000 At fair value 30/6/07 4,800,000 4,800,000 4,800,000 Showground Facility At fair value 1/7102 6,985,500 At fair value 30/6/07 4,5 1 7,323 Less: Accumulated Depreciation 1,746,027 4,5 17,323 5,239,473 Entertainment Centre Facility At fair value 1/7102 31,500,000 At fair value 30/6/07 16,063,300 At Cost 228,269 410,275 Less:Accumulated Depreciation 475 3,170,222 16,29 1 ,094 28,740,053 Other Plant and Equipment Ocher Plant and Equipment at cost 895,826 835,800 Less: Accumulated Depreciation 465, 154 609,376 430,672 226,424

25 NOTES TO AND FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 30 JUNE 2007

8. NON CURRENT ASSETS - Note 2007 2006 PROPERTY, PLANT AND EQUIPMENT (Cont'd) $ $ Office Equipment Office equipment at cost 107,780 375,941 Less: Accumulated Depreciation 90,484 353,352 17,296 22,589 MotorVehicies (Owned) Motor Vehicles (Owned) at cost 14,176 Less: Accumulated Depreciation 14,176

To tal Property, Plant and Equipment At Cost 1,23 1,875 1,636,193 At fair value 1/7102 43,285,500 At fair value 3016/07 25,380,623 Less: Accumulated Depreciation 556,113 5,893,153 26,056,385 39,028,540 Va luation of Property, Plant and Equipment The independent valuation of Land and Facilities at 30 June 2007 was determined by an independent valuer Mr David Rich, Registered Valuer No. 6173 for DupontValuers. The independent valuation of Land and Facilities at 30 June, 2007 is based on fair market value. Due to the large difference in value compared to the last valuation a second opinion was obtained from Rider Hunt who confirmed that Dupont's valuation was correct. The Land and Facilities have been recognised at fair value at 30 June 2007, the basis of which was the Dupont's valuation. Reconciliations Reconciliations of the carrying amount of each class of property, plant and equipment at the beginning and end of the current financial year are set out below.

Carrying amount Carrying amount at 301611006 Revaluation Additions Disposals Depreciation at 301612007 Freehold Land 4,800,000 4,800,000 Showground Facility 5,239,473 (372,875) 349,275 4,517,323 Entertainment Centre Facility 28,740,053 (11,878,996) 228,269 798,232 16,29 1,094 Office Equipment 22,589 19,771 9,63 1 15,433 17,296 Other Plant & Equipment 226,425 328,274 62,533 61,494 430,672 39,028,540 (12,25 I ,871) 576,314 72,164 1,224,434 26,056,385

9. CURRENT LIABILITIES - Note 2007 2006 TRADE AND OTHER PAYABLES $ $ Creditors - Tr ade 575,964 348,474 Creditors - Advance Ticket Sales 5 1,694,009 2,201,096 Income in Advance 233,842 231,975 Accrued expenses 102,219 87,526 2,606,034 2,869,071

26 NOTES TO AND FORMING PART OF THE ACCOUNTS

FORTHEYEAR ENDED 30 JUNE 2007

10. CURRENT LIABILITIES ­ Note 2007 2006 INTEREST BEARING LIABILITIES $ $ Insurance Loan 134,137 111,347 CBA Commercial Bill 125,000 125,000 259, 137 236,347

I I. CURRENT LIABILITIES - Note 2007 2006 NON INTEREST BEARING LIABILITIES $ $ Ogden Loan 50,000 50,000

12. CURRENT LIABILITIES - PROVISIONS Note 2007 2006 $ $ Provision for Annual Leave 60.008 64,483 Provision for Long Service Leave 89,542 76,694 149,550 141,177

13. NON CURRENT LIABILITIES ­ Note 2007 2006 INTEREST BEARING LIABILITIES $ $ NSW Treasury Corporation CBA Commercial Bill 125,000 125,000

The Commonwealth Bank of Australia Commercial Bill for $ 125,000 is secured by way of: A First Registered Mortgage by Newcastle Showground and Exhibition Centre Trust over property situated at Brown Road, Broadmeadow NSW A First Registered Equitable Mortgage by Newcastle Showground and Exhibition Centre Trust over the whole of its asset(s) and undertaking(s) including uncalled capital. The timeframe for repayment of all loans and borrowings outstanding at year end is: within I year I year to 5 years 5 + years Insurance Loan 134, 137 CBA Commercial Bill 125,000 Ogden Loan 50,000 309, 137

Note(s) 10,11

14. NON CURRENT LIABILITIES - PROVISIONS Note 2007 2006 $ $ Provision for Long Service Leave 37,4 18 32,267

27 NOTES TO AND FORMING PART OF THE ACCOUNTS

FOR THEYEAR ENDED 30 JUNE 2007

IS. EQUITY Note 2007 2006 $ $ a) Reserves Asset revaluation reserve 19,540,477 31,792,348 Movements:� Asset revaluation reserve Balance at beginning of year 31,792,348 31,792,348 Revaluation decrements on revaluation of: Land Entertainment Centre Facilities (I 1,878,996) Showground Facilities (3 72,875) Balance at end of year 19,540,477 31,792,348 b) Retained Earnings Retained Earnings I (Accumulated losses) at the beginning of the financial year 7, 1 44,022 4,753,27 1 Operating Surplus/(Deficit) (994,277) 2,390,75 1 Retained earnings at the end of the financial year 6,149,745 7, 144,022 c) Nature and purpose of reserves Asset revaluation reserve The asset revaluation reserve is used to record increments and decrements on the revaluation of non current assets, as described in accounting policy note I (j).

16. FINANCIAL INSTRUMENTS (a) Interest Rate Risk The financial assetS and liabilities subject to interest rate risk are; Bank Account The Trust's bank accounts earn interest at the market variable rate. Bank Laan As at year end, $125,000 (2006: $250,000) was outstanding on the loan account. The current variable interest rate is 9.43% (2006: 8.69%) per annum. Ogden Loan As at year end $50,000 (2006: $50,000) was outstanding on the Ogden Loan. This loan has been provided on an interest free basis. Insurance Loan As at year end, $134, 137 (2006: $1 11,347) was outstanding on the Insurance Loan. The current fixed interest rate is 4.8842% (2006 5.4797%) per annum. The weighted average interest rate for borrowings is 5.93% (2006 6.76%). All other financial assets and financial liabilities are not subject to interest rate risk. (b) Credit Risk The credit risk on financial assets of the Trust which has been recognised in the statement of financial position, is the carrying amount net of any provision for doubtful debts.

28 NOTES TO AND FORMING PART OF THE ACCOUNTS

FOR THEYEAR ENDED 30 JUNE 2007

16. FINANCIAL INSTRUMENTS (Cont'd) (c) Liquidity Risk The Trust has identified that the key source of liquidity risk is due to short term fluctuations in event activity which can impact on the ability to meet short term Creditor and Employee obligations. Long Term Liquidity Risk has been identified through the ability to meet the Commercial Bill obligations at maturity date each year. The Trust maintains an overdrah facility of $95,000 to provide sufficient liquidity during short term downturns in event activity and ensure that an appropriate level of working capital is maintained. Furthermore the Trust collects ticketing funds in advance of events and holds these on behalf of Event Hirers and Promoters, and as a result of this the level and turnover of receivables is low. Other sundry receivables are reviewed extensively and collected continually to ensure that sufficient cash balances are maintained to meet the liquidity requirements of the Trust. (d) Net Fair Value of Financial Assets and Liabilities The Trust's financial assets and liabilities included in the Balance Sheet are carried at amounts that approximate net fair value.

17. AUDITOR'S REMUNERAT ION Note 2007 2006 $ $ Amounts received by the Audit Office of New South Wales for auditing the accounts 27,250 23,250

18. CONTINGENT LIABILITIES The Tr ustees are not aware of any contingent liabilities during the course of the reporting period or in existence at the balance date which would have a material impact on the financial position of the entity. On the 8th June 2007 a major storm in the Newcastle area caused flash flooding which affected the Tr ust's assets and operations for a short time. Revenue was reduced for the reporting period with two events deferred until the next reporting period. The Tr ustees expect to recover all assets and expenses associated with the damage through the Trust's insurance policy. While a negative financial impact has been recorded during the reporting period, all expenses are expected to be recovered in the near future. The financial impact of the storm upon the results of the Trust for the year ended 30 June 2007 is as follows: Income from insurance claims: 200,000 Write off assets damaged by storm: (72, 164) Expenses relating to storm damage: (380,464) (252,628)

At the time of preparing the financial report, the Tr ust's insurer continued to assess the affect of the storm upon the assets of the Trust. Whilst the Tr ustees expect to recover the value of all assets tost in full, together with all costs incurred, at the time of preparing the financial report, they were unable to calculate a contingent asset in regard to the outstanding insurance claim at balance date.

29 NOTES TO AND FORMING PART OF THE ACCOUNTS

FOR THEYEAR ENDED 30 JUNE 2007

19. EMPLOYEE BENEFITS Note 2007 2006 $ $ Employee benefit liabilities Provision for employee benefits Current (Note 12) 149,550 141,177 Non Current (Note 14) 37,4 18 32,267 Aggregate employee benefit liability 186,968 173,444 Employee numbers Average number of employees during the financial year 30 35

20. RELATED PA RTIES Note 2007 2006 $ $ Trustees The names of persons who were Trustees of the Trust at any time during the year are as follows:- R Edwards, S Macleod, R Warry, K Croll, R Saddington, J Fitzgerald and B Chard Remuneration Income received, or due and receivable, by Trustees from the Tr ust Nil Nil

21. ECONOMIC DEPENDENCY The Trust derives the majority of its income, being entertainment centre and ground hiring income and income from concessions from the procurement and success of events booked. The level of income of the Trust is dependent on the continued procurement of successful events from the national and international markets. The Trust during the financial year received a full interest subsidy from the State Government for debt servicing charges associated with a government guaranteed Treasury Corporation loan. During the course of the financial period this loan was discharged in full. and the Trust is therefore no longer reliant on funding to meet the Treasury Corporation loan obligations.

22. BORROWING COSTS Note 2007 2006 $ $ Bank Charges 7,280 7,270 Interest - Insurance Premium Funding 9,221 9,577 Interest - Commercial Bills 17,238 26,867 Interest - NSW Treasury Corporation 236,7 13 33,739 280,427

30 NOTES TO AND FORMING PART OF THE ACCOUNTS

FORTHEYEAR ENDED 30 JUNE 2007

23. PROFESSIONAL FEESAND Note 2007 2006 CONSULTANCY SERVICES $ $ Amounts paid to Vipac Engineers and Scientists for Noise Monitoring Services 6,495 Amounts paid to Warren & Mark Skelton forValuations of Buildings for Insurance purposes 400 Amounts paid to livingstones Australia Pey Ltd for Industrial Relations Services 1,354 1,657 Amounts paid to Adept Engineering Australia for Noise Monitoring Services 196 Amounts paid to Wyatt Gallagher Bassett for Legal Consultancy 600 Amounts paid to Price Waterhouse Coopers Consulting for Payroll Tax Services 1,500 Amounts paid to NSW Department of Commerce for Conservation Management Strategy 20,000 Amounts paid to AW Workwise for conduct of safety audit 1,636 Amounts paid to Iser Group for update of Evacuation Manuals 3,900 Amounts paid to Skywire for feasibility study on wireless infrastructure 1,400 Amounts paid to DupontValuers for Valuations of Buildings for Asset Revaluation purposes 6,400 Amounts paid to Price Waterhouse Coopers Consulting for IFRS comparitive calculations 500 Total Amount of Consultancy Services 15,190 30,848

31 • NOTES TO AND FORMING PART OF THE ACCOUNTS

FORTHEYEAR ENDED JO JUNE 2007

24. RECONCILIATION OF NET CASH Note 2007 2006 PROVIDED BY OPERATING ACTIVITIES $ $ TO OPERAT ING RESULT Operating Surplus/(Deficit) (994.277) 2.390.75 1 Non cash flows in operating activities: Bad Debt expense 61.992 Depreciation 1.224,434 1,218,671 Write off assets damaged by storm 72, 164 Profit on sale of property. plant and equipment Changes in operating assets and liabilities: Decrease/(increase) in receivables 10,789 ( 1 50,490) Decrease/(increase) in inventories 1,029 7,084 Increase/(decrease) in sundry creditors (263,036 ) 1,107,947 Increase/(decrease) in employee entitlements 13,524 7,665 Net cash provided by operating activities 64,627 4,643,620

Financing Arrangements Unrestricted access was available at balance date to the following lines of credit:- Bank overdraft 95,000 95,000 The bank overdraft facility may be drawn at any time and may be terminated by the bank without notice. The Newcastle Showground and Exhibition Centre Trust have a management contract with Ogden IFC (Newcastle) Pty Ltd for an initial period of IS years that was due to expire on 30 June 2006. Ogden IFC (Newcastle) Pty Ltd have exercised their option to extend the contract for a further five years, and have two further five year options at 30 June 20II and 30 June 20 16 with the potential for the contract to be complete at 30 June 2021.

END OF AUDIT ED FI NANCIAL STATEMENTS

32