ANNUAL REPORT 2014-2015 i VenuesWest Annual Report 2014-2015 ii About this Report This Annual Report aims to provide the Western Australian Government, our customers, stakeholders and the community with information about our operational and financial performance and contribution to delivering sport, recreation and entertainment opportunities for Western Australians in the 2014-15 financial year. The report was developed in accordance with the Public Sector Commission’s Annual Reporting Framework 2014-15. In compliance with these guidelines, production costs are minimal and the report is published on our website venueswest.wa.gov. au in the ‘About Us/Corporate Publications’ section. The Report can be viewed in a PDF format or in an accessible version in Word format. To provide commentary on this report or for customer enquires or feedback about our services and programs, please email [email protected] Contact details for all our locations can be found on page 101. STATEMENT OF COMPLIANCE For the year ended 30 June 2015 To the Honorable Mia Davies MLA Minister for Sport And Recreation In accordance with the requirements of Section 64 of the Financial Management Act 2006, it is my pleasure to submit for your information and presentation to Parliament, the Annual Report of the Western Australian Sports Centre Trust trading as VenuesWest for the year ended 30 June 2015. The Annual Report has been prepared in accordance with the provisions of the Financial Management Act 2006. Richard Muirhead CHAIRMAN i VenuesWest Annual Report 2014-2015 ii Table of Contents Executive Summary 1 Corporate Governance Chairman’s Report 3 Legislation Administered 50 CEOs year in review 4 Ministerial Directives 50 Financial Disclosures 51 Corporate Snapshot Governance Disclosures 51 Organisational Profile 8 Board and Committees 52 Our Purpose 13 Other Legal Requirements 54 Our Values 13 Government Policy Requirements 55 Our Business Mix 14 Our Operating Model 15 Financial Report Organisational Structure 16 Independent Audit Opinion 60 VenuesWest Board 17 Financial Statements 62 Executive Team 21 Operational Performance Our Customers and Stakeholders 24 How to Contact Us 101 Our People 26 Strategic Asset Management 28 Performance Management Framework 29 Key Service Areas 30 Key Performance Indicators 37 Significant Issues Impacting the Agency 47 iii VenuesWest Annual Report 2014-2015 iv iii VenuesWest Annual Report 2014-2015 iv Executive Summary In 2014-15, VenuesWest proudly serviced over 3.75 million customers at 12 operational venues, with 17% of these OUR PATRONAGE customers represented by elite sportsmen and women using our facilities to train and compete. The majority of customers (55%) were community users who attended the venues to participate in sport and leisure activities, and 27% % were commercial patrons. VenuesWest’s focus on providing 91 overall customer outstanding customer service and reinvesting in its assets satisfaction and facilities was recognised in the feedback provided by .75 customers, with 3.42 million patrons satisfied with their MILLION experience at our venues. target 82% It was an exceptional year for VenuesWest in delivering on PATRONS the government’s desired outcome to provide sustainable, 3 accessible and profitable assets delivering sport, recreation and entertainment opportunities for Western Australians. ELITE SPORT COMMUNITY SPORTS COMMERCIAL REVENUE Through the effective and efficient management of its assets cost of delivery per hour cost of delivery per hour revenue compared to expenses and the delivery of commercial events, VenuesWest reduced the per unit cost of providing facilities and support to WA’s elite athletes and community users and at the same time $891 increased commercial revenue. 75.3% subsidised by VenuesWest $7.22 84% 18.9% subsidised by Government from 2014 target <$7.24 from 2014 target >78% 5.8% subsidised by User from 2014 target < $1,059 IMPROVED 1 VenuesWest Annual Report 2014-2015 2 2014-15 Year in Review 2014 KEY ACHIEVEMENTS 2015 NAMING RIGHTS new MAJOR SPORT ASSETS INVESTMENT IN ASSETS new OPERATING MODELS Agreed Bendat $26 million State Netball Centre Gym Equipment Self management of nib Commenced HBF $33.7 million WAIS High Cycle Studio Co-management agreements Renewed nib Performance Service Centre Digital Screens for Bendat Basketball Centre Netball courts and AV equipment and State Netball Centre rugby pitch at HBF Arena CCTV / Wi-FI Way finding INVESTMENT IN MAJOR EVENTS SATISFIED CUSTOMERS PEOPLE AND SYSTEMS Perth Darts Masters 3.75m customers Governance Systems Wiggles 91% satisfied = 3.41m OAG’s Top 20 BHP Billiton Super Series satisfied customers Best Practice Agency Hopman Cup / Wildcats New CRM and Future Music & Goodlife Reporting Systems Foo Fighters Secured Socceroos 1 VenuesWest Annual Report 2014-2015 2 Chairman’s Report As incoming Chairman of VenuesWest, I have been amazed by the breadth and diversity of VenuesWest’s operations, from the role we play in our community providing grass roots sports opportunities to kids and fabulous entertainment experiences for families, to the support we provide to our elite athletes and the successful commercial events we hold to help make all this happen. Not only is VenuesWest providing the Western Australian people with an opportunity to be active in these spaces, but by doing so successfully, is self-funding 84% of its operating costs. The 2014-15 year was outstanding for VenuesWest with overall customer satisfaction levels peaking at 91%. This is a direct reflection of the organisation’s commitment to delivering excellent customer experiences, not only by its own staff at the self- managed venues, but also by the partner-managed employees. I am privileged to have inherited an organisation that is in such a solid position for a successful future, and honoured to have the opportunity to lead the Board to ensure we deliver on the Government’s objectives. It therefore gives me great pleasure to sign off this annual report which is a reflection of a year of great outcomes. I would also like to take this opportunity to thank former Chairman, Graham Partridge, who set the foundation for the monumental and successful growth of the organisation over his time as Chairman. Also to his fellow outgoing Board members, Narelle Finch, Rowan Maclean, Wayne Cox, Mike Hussey and Giles Nunis for the contribution they provided over their terms as Board members. Richard Muirhead Chairman 3 VenuesWest Annual Report 2014-2015 4 Outside of our own capital works program, VenuesWest CEO Year in Review delivered on a number of other significant State Government World-class events, world-class customer service and world- investments, including a portion of the development projects class venues have once again been the theme for VenuesWest at HBF Arena which saw three new netball courts and an during 2014-15, with some amazing results having been administration building delivered for the Joondalup Netball achieved in terms of customer satisfaction, an outstanding Association, and a new rugby pitch completed prior to the calendar of events having been delivered across a number commencement of the 2015 winter rugby season. The football of venues, and two brand new venues having been officially and basketball components of that project also progressed opened and added to our portfolio. and reached schematic design phase during the year. The success of our commercial activities continues to play a key In July 2014 we partnered with health insurer HBF, entering role in providing the self-funded revenue we need to plan and into a naming rights agreement, which saw the venues re- carry out the significant reinvestment program for our venues. named from Arena Joondalup and Challenge Stadium to HBF Arena and HBF Stadium respectively. The partnership provides In a renewed approach to managing the capital planning discounted memberships to HBF members, as well as free process, a three year Strategic Asset Management (SAM) Plan group fitness classes throughout the year which have been a was developed which outlined not only our commitment to great success at both venues. increasing the effectiveness of our existing asset base but also our willingness to listen to our stakeholders in terms of The WA Basketball Centre was also the subject of naming project priorities. Following the launch of the Plan, staff set rights in May 2015, when an Agreement was signed with Dr about delivering a challenging capital works program across Jack Bendat to re-name that venue as the Bendat Basketball the venues which would see in excess of $10m committed Centre. All benefits from the naming rights Agreement will be across five different investment programs and nine different directed towards the ongoing maintenance and operational venues. This initial SAM Plan also considered those projects to expenses of serving the venue’s 6,000 weekly community be recommended for consideration in the future years, which users. Prior to entering into that arrangement, VenuesWest again provided an opportunity for future planning for both our also signed a Co-Management Agreement with Basketball WA organisation and our stakeholders. to jointly manage the Basketball Centre. Co-management is a new approach to managing the operations of a venue, and Planning of this year’s capital program saw a conscious under this model, Basketball WA is recognised as the primary decision to inject a significant portion of funds into one of user with the Agreement providing other targeted sports access our more ageing venues, with almost 50% of the funds being to the venue for events and competitions. expended on improvement projects at HBF Stadium. This included significant new landscaping works to the front of the It was pleasing to announce during the year that the major venue, major toilet and change room upgrades, installation of sponsor of our world class rectangular stadium, nib, exercised a new high tech movable boom in the indoor eight lane pool their three year extension option and secured the rights to enable 25-metre, short course championships to be held, for nib Stadium until June 2018.