SYDNEY HARBOUR FORESHORE AUTHORITY Annual Report 2009–10 The Authority continually strives to refresh and enhance public events in The Rocks and Darling Harbour. In 2009, a team led by the Authority’s Graphic Design Team Leader, Minh Ho, created a Mona Lisa coffee sculpture at The Rocks Aroma Festival. The sculpture caught the attention of the global media, received more than 100,000 hits on YouTube and achieved a Guinness World Record. See page 30.
Letter to the Minister
The Hon. Tony Kelly MLC Minister for Lands Level 35 Governor Macquarie Tower 1 Farrer Place SYDNEY NSW 2000
Dear Minister I have pleasure in submitting the Sydney Harbour Foreshore Authority Annual Report for the year ended 30 June 2010. The report has been prepared in accordance with the Annual Reports (Statutory Bodies) Act 1984, the Public Finance and Audit Act 1983 and the regulations under those Acts.
Yours sincerely
Warwick Watkins AM Chief Executive Officer Sydney Harbour Foreshore Authority Contents 1 3 5 02 > At a glance 25 > Stakeholders and customers 41 > Corporate governance 02 > About us It is our responsibility to provide The Authority has established 02 > Achievements outstanding services and support to governance structures and systems to our key stakeholders—our tenants, the ensure it meets its compliance and 03 Our vision and purpose > NSW Minister for Planning, the NSW risk management obligations and 04 > Our places Government, our business partners sustainability objectives. 06 > Our performance and our employees—and deliver outstanding services and events to our 08 > Chief Executive’s message key customers—the public. 12 > Sydney Harbour Foreshore Authority Board 26 > Conventions, exhibitions 14 > Our structure and and entertainment executive team 27 > Community services 6 28 > Indigenous initiatives 28 > Education 47 > Financial performance 29 > Building stakeholder relationships By managing the business commercially, including maximising 30 > Outstanding events return from assets and operations, 33 > Supporting the community the Authority can continue to achieve 2 its important work. 17 > Business effectiveness 48 > Sydney Harbour Foreshore Authority The first of the Authority’s four key business outcomes, this section 88 > Office of the Sydney Harbour focuses on managing our business Foreshore Authority efficiently and effectively. We do this 108 > Sydney Harbour Foreshore by continually improving our processes, 4 Authority Casual Staff Division enhancing place management efficiency and integrating sustainability 35 > Organisational health into everything we do. To sustain business growth and 18 > place management efficiency innovation the Authority strives to attract, retain and grow highly 19 > Creating sustainable precincts competent and motivated employees. 20 > leadership in sustainability Employees are engaged in the future 21 > Managing heritage and of the organisation through effective 7 Warwick Watkins AM public places leadership and communication. Chief Executive Officer 118 > Appendix 23 > A year of accolades 36 > Strength in organisational Sydney Harbour alignment 128 > Index Foreshore Authority 36 > Employee development 129 > Contact us and engagement 37 > Workplace initiatives 37 > Human resources >
Sydney Harbour Foreshore Authority Annual Report 2009–10 1 >>Capital investment > Completed the final year of a five-year capital investment plan for The Rocks and Darling Harbour >>$45.3 million Generated $45.3 million in lease revenue in The Rocks, Darling Harbour At a glance and surrounds >>Community consultation Completed the first stage 1 of community consultation for the Bays Precinct Sydney Harbour Foreshore Authority owns >>90 events and manages some of the State’s most Successfully hosted more significant assets, including Sydney’s than 90 events at Sydney Entertainment Centre heritage and cultural precincts at The Rocks and Darling Harbour. >>Industry awards Received 12 industry With more than $1.3 billion in assets The Authority also operates marketing awards for sustainability, and around 220 employees, the and visitor services and produces urban renewal, Authority manages significant significant events in The Rocks and heritage conservation commercial and retail leases, Darling Harbour each year. Between and marketing provides security, cleaning, building them, the precincts attract around 40 maintenance and other facility million visitors annually. >>$20 million management services, and cares The Authority also owns sites at Invested $20 million in for the public domain and 140 White Bay Power Station, Rozelle heritage items. community services in railway yards and Ballast Point and our precincts manages other major waterfront assets around Sydney Harbour on >>The World Cup behalf of other agencies. p rovided operational Sydney Harbour Foreshore Authority and logistical support was formed in 1999 under the Sydney Harbour Foreshore Authority for Sydney International TM Act 1998 to consolidate the work and FIFA Fan Fest functions of City West Development Corporation, Darling Harbour >>Aboriginal first Authority and Sydney Cove Authority. Created a full-time In March 2010 the Authority became Aboriginal role part of the Land and Property Management Authority within the >>World record NSW Planning portfolio (see page 36). Achieved a Guinness World Record for the largest coffee sculpture >>1.84 million produced events in The Rocks and Darling Harbour attended by 1.84 million people*
* The number of people movements recorded. See page 33 for details on how figures are calculated.
2 Sydney Harbour Foreshore Authority Annual Report 2009–10 Our vision Our purpose
To make unique places To create and sustain living places and in Sydney that the world great experiences talks about The Authority does this by: >> Managing places profitably and socially to deliver excellence in our role as manager for Sydney’s significant waterfront and other precincts, balancing visitor, community and commercial expectations. As custodian, ensuring the preservation and interpretation of our natural and cultural heritage. >> Promoting places effectively to capitalise on the economic and cultural worth of our places, as core attractions for both Sydneysiders and visitors. >> Developing places responsibly to demonstrate leadership in creating quality environments that are enriching, diverse, accessible and sustainable. To add value by redeveloping surplus government land through a highly- skilled organisation. >> Managing the organisation efficiently to meet customer and stakeholder needs and expectations.
Sydney Harbour Foreshore Authority Annual Report 2009–10 3 Our places
Sydney Harbour Foreshore Authority is responsible for Sydney’s most historically and culturally significant waterfront locations.
These responsibilities include the care, protection, management and promotion of this land and its important buildings.
The Rocks and Circular Quay The Rocks is located at the northern part of the Sydney CBD occupying the peninsula between Circular Quay and Sydney Harbour Bridge. It is the place where the first European settlers came ashore in 1788. In The Rocks, the Authority owns and maintains historic places and items including 93 buildings listed on the State Heritage Register. It also manages 298 retail and commercial tenants including waterfront cafes, restaurants, bars and contemporary shopping, as well as 27 residential tenants and around 200 stallholders in The Rocks Markets. The Authority is committed to ensuring The Rocks is a vibrant place that offers a diversity of experiences for all our visitors while protecting and enhancing its heritage. With a growing residential population and an increasing workforce, The Rocks is changing from a tourist destination to an intimate village with a new relevance to both residents and Sydneysiders.
Darling Harbour Darling Harbour was created as a gift to the nation in celebration of Australia’s bicentenary. Since its opening in 1988, Darling Harbour has continued to be a Rozelle place of celebration for the people of Sydney, as well as a hugely popular tourist destination. At Darling Harbour, the Authority oversees the management of 139 tenancies comprising waterfront cafes, restaurants and bars, contemporary shopping, berths and many of Sydney’s top attractions. The Authority is committed to maintaining Darling Harbour as one of the world’s best waterfront leisure, entertainment and business destinations for Sydneysiders and visitors alike.
The Authority also owns sites at White Bay Power Station, Rozelle railway yards and Ballast Point; is responsible for 21 tenancies at Pyrmont, Rozelle, Lilyfield and White Bay; and manages Luna Park Reserve Trust. Annandale
4 Sydney Harbour Foreshore Authority Annual Report 2009–10 Lavender Bay Luna Park Kirribilli
Ballast Point Sydney Harbour Bridge Walsh Bay
Barangaroo
Circular The Quay Rocks Balmain
White Bay
CBD
King Street Wharf Pyrmont
Rozelle Bay Cockle Bay
Blackwattle Bay Darling Harbour
Ultimo
Glebe
Key Major owned or managed lands (boundaries are indicative only)
N
W E Sydney
S
Sydney Harbour Foreshore Authority Annual Report 2009–10 5 Our performance 2009–10
The table below shows the Authority’s results under our four key business outcomes: business effectiveness, stakeholder and customer satisfaction, organisational health and financial performance. Further information about our strategic objectives and their alignment to the NSW State Plan, as well as our achievements and challenges, can be found at the beginning of each section of this report.
Target Result Target Improvement Result Result Result Target Key Performance Indicators 2009–10 2009–10 achieved on 2008–09 2008–09 2007–08 2006–07 2010 –11 Business effectiveness – see page 17 Retail vacancy rate1 – proportion of the Authority’s retail properties that are < 6% 2.36% ✔ No 1.55% 1.8% 4.1% < 6% vacant as at 30 June 2010 (excluding ground leases from lettable area) Commercial vacancy rate1 – proportion of the Authority’s commercial properties that are vacant as at 30 June 2010 < 8.5% 17.05% 2 – Yes 17.84% 15.9% 2.3% < 8.5% (excluding ground leases from lettable area) Percentage of debt outstanding for 90 days or more – as a proportion of < 2% 0.6% ✔ Yes 1.6% 0.9% 0.9% < 2% yearly revenue Annual sick days per employee < 4.5 days 7.9 days – No 7.6 days 6.49 days 5.6 days < 4.5 days Annual reported safety incidents 0 0.05 – Yes 0.12 0.09 0.07 0 per employee
Reduction in energy and water Energy Energy -20.8% ✔ Yes -19.3% -13.1% -16.3% consumption – based on the -14% -17% Authority’s year 2020 sustainability targets (reductions measured from Water Water -31.9% ✔ No -39.6% -25.7% -21.1% year 2000 base) -23% -24% Green power purchases – yearly electricity purchases from renewable > 600 605 548 607 641 > 600 sources for the Authority’s controlled ✔ Yes cars cars cars cars cars cars sites expressed in terms of cars removed from the road Authority fleet emissions – yearly CO 2 < 56 < 56 emissions of the Authority’s fleet based 57.6 tonnes – No 56.5 tonnes 62.2 tonnes 66.1 tonnes tonnes tonnes on fuel consumption
Not Paper usage per full-time employee < 35 kg 35.4 kg – No 32 kg 42 kg < 35 kg collected
Customers and stakeholders – see page 25 Tenant sales turnover growth – percentage change in yearly tenant sales turnover based on 90 tenants > 1% 2.0% ✔ Yes -5.3% 3.7% 6.5% > 2% supplying figures as per their lease agreement Customer enquiry response time – average number of days taken to complete requests received through < 3 days 2.75 days ✔ No 2.1 days 2.5 days 1.1 days < 2.75 days the Authority’s customer request management system The Rocks The Rocks $104.50 ✔ Yes $93.04 $81.31 $87.20 > $85 > $90 3 Average international visitor spend Darling Darling Harbour $96.58 ✔ Yes $82.47 $79.92 $90.13 Harbour > $85 > $90 The Rocks The Rocks $112.60 ✔ Yes $98.41 $105.90 $99.18 > $105 > $105 3 Average domestic visitor spend Darling Darling Harbour $109.78 ✔ No $110.24 $113.31 $106.31 Harbour > $105 > $105 The Rocks The Rocks $70.90 ✔ Yes $60.93 $62.82 $61.69 > $60 > $60 3 Average Sydneysider visitor spend Darling Darling Harbour $56.64 – No $59.92 $61.92 $57.84 Harbour > $60 > $60
6 Sydney Harbour Foreshore Authority Annual Report 2009–10 Target Result Target Improvement Result Result Result Target Key Performance Indicators 2009–10 2009–10 achieved on 2008–09 2008–09 2007–08 2006–07 2010 –11 Customers and stakeholders – continued The Rocks The Rocks 5.1% ✔ Yes 0.4% -2.2% -2.1% > 1% > 2% Darling Darling Change in visitor numbers compared to Harbour 1.0% – Yes -2.4% 2.6% 7.9% Harbour previous year > 1% > 2% All precincts All precincts 2.4% ✔ Yes -1.5% 1.0% 4.4% > 1% > 2% Target Result Target Improvement Result Result Result Target Key Performance Indicators 4 2009–10 2009–10 achieved on 2008–09 2008–09 2007–08 2006–07 2010 –11 Sydney Visitor Centres visitor numbers > 300,000 316,883 ✔ No 332,610 367,273 408,697 > 300,000 The Rocks Discovery Museum Business effectiveness – see page 17 > 90,000 106,395 ✔ Yes 90,495 98,615 87,056 > 95,000 visitor numbers Retail vacancy rate1 – proportion of the Authority’s retail properties that are The Rocks Markets visitor numbers > 1,500,000 1,584,607 ✔ Yes 1,535,911 1,405,802 1,371,200 > 1,500,000 < 6% 2.36% ✔ No 1.55% 1.8% 4.1% < 6% vacant as at 30 June 2010 (excluding Chinese Garden of Friendship > 180,000 201,452 ✔ Yes 176,499 185,662 185,183 > 190,000 ground leases from lettable area) visitor numbers 1 Commercial vacancy rate – proportion Sydney Convention and Exhibition of the Authority’s commercial properties Centre economic contribution – based > $398 > $447 2 $501 million ✔ Yes $466 million $474 million $478 million that are vacant as at 30 June 2010 < 8.5% 17.05% – Yes 17.84% 15.9% 2.3% < 8.5% on Sydney Convention and Visitor Bureau million million (excluding ground leases from estimated spend per type of delegate lettable area) The Rocks 3 hrs 13 2 hrs 56 2 hrs 48 The Rocks Percentage of debt outstanding for > 2 hrs 30 ✔ Yes 3 hrs 7 mins ✔ mins mins mins > 3 hrs 90 days or more – as a proportion of < 2% 0.6% Yes 1.6% 0.9% 0.9% < 2% mins yearly revenue Average length of Sydneysider 3 Darling visitor stay Darling Annual sick days per employee < 4.5 days 7.9 days – No 7.6 days 6.49 days 5.6 days < 4.5 days Harbour 3 hrs 12 3 hrs 2 mins ✔ No 3 hrs 7 mins 3 hrs Harbour Annual reported safety incidents > 2 hrs 30 mins 0 0.05 – Yes 0.12 0.09 0.07 0 > 3 hrs per employee mins The Rocks The Rocks Reduction in energy and water Energy Energy 5.8 visits ✔ Yes 5.3 visits 6 visits 5 visits -20.8% ✔ Yes -19.3% -13.1% -16.3% > 5 visits > 5.5 visits consumption – based on the -14% -17% Average number of repeat Authority’s year 2020 sustainability visits annually3 Darling Darling targets (reductions measured from Water Water Harbour 7.1 visits ✔ Yes 7 visits 6.8 visits 6.8 visits Harbour -31.9% ✔ No -39.6% -25.7% -21.1% year 2000 base) -23% -24% > 6.5 visits > 7 visits The Rocks The Rocks Green power purchases – yearly 0.46 ✔ Yes 0.93 0.88 0.98 electricity purchases from renewable < 3 < 1.5 > 600 605 548 607 641 > 600 sources for the Authority’s controlled ✔ Yes Number of safety related incidents per cars cars cars cars cars cars Darling Darling sites expressed in terms of cars 100,000 visitors Harbour 0.36 ✔ Yes 0.41 0.39 0.28 Harbour removed from the road < 3 < 1.5 Authority fleet emissions – yearly CO 2 < 56 < 56 emissions of the Authority’s fleet based 57.6 tonnes – No 56.5 tonnes 62.2 tonnes 66.1 tonnes The Rocks Not Not Not The Rocks tonnes tonnes 7.9 ✔ n/a on fuel consumption > 7 surveyed surveyed surveyed > 7 Average visitor score for cleanliness3 – Not scale from 1 to 10 Darling Darling – Not Not Not Paper usage per full-time employee < 35 kg 35.4 kg No 32 kg 42 kg < 35 kg Harbour 7.6 ✔ n/a Harbour collected surveyed surveyed surveyed > 7 > 7 Customers and stakeholders – see page 25 The Rocks Not Not Not The Rocks Tenant sales turnover growth – 7 – n/a Average visitor perception of > 7 surveyed surveyed surveyed > 7 percentage change in yearly tenant 3 ✔ amenities and public infrastructure – Darling Darling sales turnover based on 90 tenants > 1% 2.0% Yes -5.3% 3.7% 6.5% > 2% Not Not Not scale from 1 to 10 Harbour 7.3 ✔ n/a Harbour supplying figures as per their surveyed surveyed surveyed lease agreement > 7 > 7 Customer enquiry response time – Organisational health – see page 35 average number of days taken to Average number of training days complete requests received through < 3 days 2.75 days ✔ No 2.1 days 2.5 days 1.1 days < 2.75 days > 3 days 2.41 days – Yes 1.86 days 3.86 days 4.21 days > 3 days per employee the Authority’s customer request management system Turnover for full and part-time < 15% 8.5% ✔ Yes 10.6% 11.7% 9.3% < 15% permanent employees The Rocks The Rocks $104.50 ✔ Yes $93.04 $81.31 $87.20 > $85 > $90 Financial performance – see page 47 3 Average international visitor spend Darling Darling Precinct earnings before interest, tax, ($15.17 $2.6 million $7.6 million ✔ No $8.9 million $11.9 million $15.7 million Harbour $96.58 ✔ Yes $82.47 $79.92 $90.13 Harbour depreciation and amortisation (EBITDA)5 million)6 > $85 > $90 Property revenue growth > 2.5% -0.1% – Yes -1.7% 3.7% 8.2% > 2.5% The Rocks The Rocks $112.60 ✔ Yes $98.41 $105.90 $99.18 Percentage expenditure reduction on > $105 > $105 > 5% 0.5% – No 1.3% 0.4% -4.1% > 2.5% 3 previous year Average domestic visitor spend Darling Darling Harbour $109.78 ✔ No $110.24 $113.31 $106.31 Harbour > $105 > $105 The Rocks The Rocks Notes 3. Based on face to face surveys conducted within our precincts. $70.90 ✔ Yes $60.93 $62.82 $61.69 > $60 > $60 1. Targets for future years are subject to change as the Authority benchmarks its 4. Based on counters within the Visitor Centres. Previous year figures (which were 3 vacancy rates with the current market conditions. based on external counters) have been adjusted to reflect this. Average Sydneysider visitor spend Darling Darling 2. The 2009–10 result is skewed by two unique properties that due to their heritage 5. This excludes investment and property, plant and equipment valuations, and defined Harbour $56.64 – No $59.92 $61.92 $57.84 Harbour fabric and limitation in use are difficult to lease. If these two sites are excluded, benefit superannuation. > $60 > $60 the commercial vacancy rate is 3.6%. 6. The 2010–11 operating loss result includes $17.109 million of non-cash land transfers.
Sydney Harbour Foreshore Authority Annual Report 2009–10 7 Chief Executive’s message
In June 2010, Sydney Harbour Foreshore Authority became part of the Land and Property Management Authority (LPMA) within the NSW Planning portfolio.
Formed in July 2009, LPMA is responsible for the coordination and integration of a number of NSW land and property management businesses across three core areas of Land and Property Information, Land and Property Management and Conservation, and Land and Property Development.
Strength in alignment Significantly, the Foreshore Authority In May 2010, the NSW Government will continue to be responsible for the charged the Foreshore Authority with The decision to connect the Foreshore past, the present and the future in its the responsibility of delivering a Authority with the LPMA is a logical role as custodian of Sydney’s heritage comprehensive master plan to progression towards a greater and cultural precincts The Rocks and redevelop the south Darling Harbour alignment between the State’s land Darling Harbour, which together attract precinct, including the expansion of and property management and around 40 million visitors a year. the convention and exhibition facilities. development functions. The south Darling Harbour master plan For the Foreshore Authority, it is simply Delivering on State will expand Sydney’s share of the the latest step in the organisation’s valuable convention and exhibition development. A development which significant projects market and explore options to upgrade has seen it evolve from a number of The Foreshore Authority will also and improve connections between former government bodies including continue to deliver on projects of State Central Station and around the Sydney Cove Redevelopment Authority, significance including the $500 million Powerhouse Museum and University Darling Harbour Authority and the Darling Walk redevelopment and two of Technology, Sydney. City West Development Corporation. major master plans which aim to boost The Foreshore Authority will also the State’s tourism industry. work concurrently on a strategic plan Continued focus on place to better integrate government management The Darling Walk development is already cutting an impressive figure services and activities on the Sydney As part of LPMA, the Foreshore on the city skyline. Behind the Harbour foreshore from Circular Quay Authority will be able to more hoardings the promise of new life in to Walsh Bay. effectively perform its role as this part of Darling Harbour is palpable landowner and precinct manager of This plan will consider ways to as the new public domain and some of NSW’s most significant enhance the city’s major visitor children’s playground take shape. assets, and will continue to deliver gateway by expanding and improving world-class events and the best in With the development well on the area’s food and retail venues, place management services. track for completion in 2011, the public amenities, services and overall Foreshore Authority has turned its presentation for visitors, commuters attention to re-energising the rest and local residents. of south Darling Harbour.
8 Sydney Harbour Foreshore Authority Annual Report 2009–10 >
As part of LPMA, the Foreshore Authority will be able to more effectively perform its role as landowner and precinct manager of some of NSW’s most significant assets, and will continue to deliver world-class events and the best in place management services.
Sydney Harbour Foreshore Authority Annual Report 2009–10 9 The year in review Capital investment Talk of the town events invigorates precincts Large-scale, accessible free events in As we reflect on 2009–10, the Over the past five years the Foreshore The Rocks and Darling Harbour Authority can look back with pride Authority has invested more than $125 remain one of the cornerstones of the in its achievements and the benefits million in a comprehensive capital Foreshore Authority’s operations. delivered to all stakeholders. works program in The Rocks and While these events are critical in Darling Harbour. As a result of this delivering on the State Government’s Bays Precinct for everyone investment, numerous buildings have drive for increased visitation, they also Bays Precinct represents an been upgraded, significant heritage serve to keep the precincts relevant, exceptional opportunity for Sydney, items have been restored and many dynamic and celebrated, not just in and the Foreshore Authority is elements of the public domain have Australia but also around the world. proudly managing an innovative been enhanced. At the 2009 Aroma Festival in community consultation process to In The Rocks highlights include a The Rocks, almost 4,000 cups of determine its future. major refurbishment of The Rocks coffee were used to create a huge During the year, the first stage of Centre and the heritage Mariners’ mosaic of the Mona Lisa and cause community consultation has engaged Church, the reconstruction of a 19th a suitable stir on the international online forums, community groups and century cable hut and the creation of stage. In addition to the 114,000 even local school children to garner a Jack Mundey Place. Also in The people who witnessed the coffee true cross-section of public opinion on Rocks, a major refurbishment of The artwork on the day, the Mona Lisa the development of this prime Rocks Police Station allowed the NSW generated thousands of hits on waterfront area. Police to return to 132 George Street. YouTube, was picked up by media in With this wealth of information driving In Darling Harbour the outdoor event the USA and the UK and achieved a the second stage of consultation I am space Palm Grove was completely Guinness World Record for the largest confident that the right outcomes will redesigned, Pyrmont Bridge was coffee mosaic. be achieved for the Bays Precinct. carefully restored and the precinct’s public domain sound system benefited from a major upgrade.
In 2009–10 the Foreshore Authority provided a level of property and public domain management services that reflects the importance of its State significant precincts. During the year, $20 million was spent on heritage and public places, outstanding events and educational services.
10 Sydney Harbour Foreshore Authority Annual Report 2009–10 In Darling Harbour, it is the world game the future was how to successfully The year ahead that has put the precinct on the world balance conservation with the site’s map. When football’s governing body, on-going viability. Following the process to align FIFA, picked Sydney as one of only six The Authority’s vision, on behalf of the Sydney Harbour Foreshore Authority cities outside of South Africa to host Government, was to conserve and with the LPMA, the NSW Government an official international FIFA Fan Fest™ celebrate its rich archaeological made changes to the governance for the World Cup, Darling Harbour resource, while bringing new life to arrangements for the Foreshore was an obvious choice. The Rocks. Youth Hostels Association Authority which included dissolving Not only was FIFA conscious of responded to the public call for a the existing Board. Darling Harbour’s location on Cockle compatible land use and this year, In accordance with the Sydney Bay with the city skyline as its delivered a unique building that is Harbour Foreshore Authority Act, backdrop, it was also aware of its role contemporary and respectful— the Department of Planning Director as a world-class event venue. touching ever-so-lightly on the site General Sam Haddad and I will form The Foreshore Authority’s experience, and referencing the surrounding an interim Board. streetscape. expertise and intimate knowledge of I would like to thank the outgoing event delivery within Darling Harbour Significantly, the Authority’s Chairman and Board members proved invaluable to many of the involvement remains on-going with for their enduring and significant stakeholders and other government their education division, Sydney contributions to the ongoing operation, agencies involved in the Sydney Learning Adventures, regularly hosting management and improvements to International FIFA Fan Fest™. programs for school groups at the the Foreshore Authority. I would also But just as important as making sure interactive education centre. like to thank my predecessor, Robert Domm, who left the organisation in the Sydney International FIFA Fan Financial performance Fest™ was a success in its own right, March 2010. Under his stewardship the Authority also worked to ensure In 2009–10 the Foreshore Authority the Foreshore Authority met a number that the event was seamlessly provided a level of property and public of significant local and global integrated into what is an active, domain management services that challenges head on, and emerged a working precinct, and that it remained reflects the importance of its State stronger, more efficient organisation. business as usual for the thousands significant precincts. During the year, While Robert’s and the Board’s of people who visit Darling Harbour $20 million was spent on heritage and contribution cannot be underestimated, every day. public places, outstanding events and the Foreshore Authority’s achievements educational services not only to attract are also due to the commitment and A bed among the ruins visitors but also to ensure that the skill of its employees. I look forward In November 2009 Sydney Harbour millions of people who engaged with to working with them in the year ahead YHA and The Big Dig Archaeology the precincts had an enjoyable and to develop greater synergy within Education Centre opened on the site memorable experience. the LPMA and deliver outstanding of the Foreshore Authority’s 1994 Prudent financial management, outcomes in all aspects of the business. ‘Big Dig’ in The Rocks. With the Big together with an improving economy, Dig unearthing the foundations of enabled the Foreshore Authority to 30 homes and shops and some achieve a healthy surplus result which 750,000 artefacts, the challenge for exceeded budget expectations. Warwick Watkins AM Chief Executive Officer Sydney Harbour Foreshore Authority
Sydney Harbour Foreshore Authority Annual Report 2009–10 11 Sydney Harbour Foreshore Authority Board at 30 June 2010
Left to right: Michael Collins, Bonnie Boezeman AO, Michael Gallagher, Clive Craven, Tom Gellibrand, Gabrielle Trainor and Warwick Watkins AM in front of the Darling Walk redevelopment
12 Sydney Harbour Foreshore Authority Annual Report 2009–10 Michael Collins Clive Craven Tom Gellibrand, Deputy Director- FRICS LLB, LLM, GAICD General, Plan Making and Urban Renewal, Department of Planning, Honorary Associate, Graduate School of Board member/member attended Board meetings on behalf of Government (Sydney) Sydney Harbour Foreshore Authority the Department’s Director-General. Registered Valuer without limitations (including Luna Park Reserve Trust) Managing Director, Michael Collins and Cooks Cove Development Corporation Bonnie Boezeman AO Associates Pty Limited Chair, Corporate Governance Committee, Board member/member Sydney Harbour Foreshore Authority PMD Diploma Harvard Business School, Chair, Sydney Harbour Foreshore Authority Audit and Risk Management Committee, FAICD, FAMI (including Luna Park Reserve Trust) Sydney Harbour Foreshore Authority Board member/member Chair, Barangaroo Delivery Authority Appointed as a Sydney Harbour Sydney Harbour Foreshore Authority Chair, Cooks Cove Development Foreshore Authority Board member in (including Luna Park Reserve Trust) Corporation January 2008 for a period of three years. Cooks Cove Development Corporation Chair, Passenger Cruise Terminal Steering Chair, Audit and Risk Management Committee, Sydney Harbour Foreshore Committee Gabrielle Trainor Redfern-Waterloo Authority Authority LLB, FAICD Australian Technology Park Precinct Director, Order of Australia Foundation Management Ltd Partner, John Connolly and Partners Association Parramatta Civic Place Advisory Committee Board member/member Chair, PayPal Australia Pty Ltd Appointed as a Sydney Harbour Sydney Harbour Foreshore Authority Chair, Business Benefits International Foreshore Authority Board member in (including Luna Park Reserve Trust) Pty Ltd February 2005 for a period of three Cooks Cove Development Corporation Chair, East West Foundation years. Appointed as Chair in January Corporate Governance Committee, Cypress Lakes Golf and Country Club 2008 for a period of three years. Sydney Harbour Foreshore Authority Pty Ltd Advisory Board Barangaroo Delivery Authority NSW Olympic Committee Warwick Watkins AM Victorian Urban Development Authority ARS Musica Australia (VicUrban) AMP:ISMP (Harvard), MNatRes, DipSciAgr, Appointed as a Sydney Harbour Commissioner, Australian Football League HDA (Hons), FRICS, FAPI, FIS, JP Foreshore Authority Board member in (NSW-ACT) February 2005 for a period of three Chief Executive, Land and Property Sydney Symphony Orchestra years. Reappointed in January 2008 for Management Authority (LPMA) Chair, Docklands Place Management and a period of three years. Surveyor General of NSW Municipal Committee Registrar General of NSW Breast Cancer Network of Australia Commissioner, Soil Conservation Service Michael Gallagher St Ignatius College Council Norfolk Island Surveyor General BSurv, BE (Civil) Catholic Resources Trust, Board of Deputy Chancellor of the University of Management Board member/member Technology, Sydney Public Interest Law Sydney Harbour Foreshore Authority Board member/member Clearing House (including Luna Park Reserve Trust) Sydney Harbour Foreshore Authority Hon Associate, Graduate School of Cooks Cove Development Corporation (including Luna Park Reserve Trust) Government, Sydney University Appointed as a Sydney Harbour Cooks Cove Development Corporation Appointed as a Sydney Harbour Foreshore Authority Board member in President, NSW Board of Surveying and Foreshore Authority Board member in January 2008 for a period of three years. Spatial Information (BOSSI) December 2005 for a period of three Chair, Geographical Names Board (GNB) years. Reappointed in December 2008 Chair, Australian and New Zealand Land for a period of three years. Information Council (ANZLIC) Robert Domm Director, Cooperative Research Centre for Tom Gellibrand BA, LLB, MLLR, Graduate Diploma in Spatial Information (CRCSI) Bachelor of Applied Science in Applied Legal Practice Deputy Chair, CSIRO Water for a Healthy Geography Board member/member Country National Research Flagship Sydney Harbour Foreshore Authority Advisory Council Master of Town and Country Planning (including Luna Park Reserve Trust) Director, AuScope Graduate Diploma in Public Administration. Cooks Cove Development Corporation Director, Intersect Board member/member South Sydney Leagues Club Director, International Federation of Sydney Harbour Foreshore Authority Surveyors (FIG) Foundation (including Luna Park Reserve Trust) Appointed as Sydney Harbour Foreshore Authority Chief Executive Officer and Chair, Australian Spatial Consortium Cooks Cove Development Corporation Heritage Council of NSW Board member in July 2008. Resigned Director, Society for Knowledge from the Authority in March 2010. Economics Central Sydney Planning Committee Appointed as Sydney Harbour Foreshore Hunter Development Corporation Authority Chief Executive and Board member in March 2010.
Sydney Harbour Foreshore Authority Annual Report 2009–10 13 Our structure and executive team
Left to right: Ian Kelly, Egle Garrick, Bob Deacon, Diana Talty, James Smart, Catherine Gallagher and Debra Dawson on the rooftop at Sydney Harbour YHA
14 Sydney Harbour Foreshore Authority Annual Report 2009–10 NSW Minister for Lands The Minister is responsible for the control and direction of Sydney Harbour Foreshore Authority.
Sydney Harbour Foreshore Authority Board The Board oversees the Authority’s policies, management and performance, sets strategic direction for the organisation and monitors compliance with statutory requirements (see page 42).
Chief Executive, Warwick Watkins AM In June 2010 Sydney Harbour Foreshore Authority became part of the Land and Property Management Authority within the NSW Planning portfolio. The Land and Property Management Chief Executive Warwick Watkins AM was appointed Chief Executive of the Foreshore Authority in March 2010. This position was previously held by Robert Domm between 21 July 2008 and 5 March 2010.
General Manager, Egle Garrick The General Manager is responsible for the day-to-day management of the Authority in accordance with specific policies and general direction of the Board and CEO. Mrs Garrick was appointed General Manager of the Authority on 10 May 2010. She joined the Authority in March 2003. Mrs Garrick holds a Master of Science and Society, Bachelor of Arts, Diploma of Librarianship and a Certificate of Transport Management and is a graduate of the Australian Institute of Company Directors’ Diploma Course. She is a non-executive Director of the training organisation MTC Workplace Solutions and the Place Leaders Association.
Director Property and Director Strategic Developments Acting Director Marketing and Events Asset Management Diana Talty was appointed to the position Catherine Gallagher was appointed to Bob Deacon was appointed to the position of Executive Director Major Projects on the position of Marketing Manager on 15 of General Manager, Darling Harbour on 1 30 May 2005. She joined the Authority in August 2005 and seconded to the position August 2002 and appointed to the position January 2001. Ms Talty holds a Bachelor of Acting Executive Director Marketing of Executive Director of Property and Asset of Arts (Honours) in Government and and Events in June 2009. Ms Gallagher Management on 28 April 2008. Mr Deacon has extensive experience in urban holds a Bachelor of Arts and has extensive holds an Associate Diploma in Real Estate redevelopment particularly in waterfront experience in marketing, communication Valuation and is a Fellow of the Australian precincts. Ms Talty is a State Government and cultural policy in both the public and Property Institute. Mr Deacon has extensive representative on the Board of the Sydney private sectors. experience in property management, Harbour Federation Trust. Responsible for: development, planning and construction. Responsible for: >> Marketing Responsible for: >> Commercial development >> Events >> Property management >> Master planning >> Educational services and tours >> Major businesses, including Sydney >> Urban renewal >> Sydney Visitor Centres Convention and Exhibition Centre >> Sydney Entertainment Centre >> Chinese Garden of Friendship >> Asset services, including: >> Authority car parks – project services and capital works >> Project feasibilities Director Business and – sustainability Financial Services – logistics and operations >> Current projects include: James Smart commenced at the Authority – heritage and design – Darling Walk – Bays Precinct in January 2001. He was appointed to the >> Callan Park and Ballast Point – Cooks Cove position of Chief Financial Officer in March Park operations – Luna Park 2006 and seconded to the position of Acting – South Darling Harbour master planning Director Business and Financial Services Director Darling Harbour Precinct in April 2010. He was appointed to the Ian Kelly commenced at the Authority in Director The Rocks and Circular position of Director Business and Financial October 2001 and was seconded to the Quay Precinct Services on 23 July 2010. Mr Smart holds position of Acting General Manager Darling Debra Dawson was appointed to the a Bachelor of Business and CPA and has Harbour on 7 April 2008. He was appointed position of General Manager The Rocks extensive experience in financial and risk to the position of General Manager Darling and Circular Quay on 5 February 2007. management and business planning. Harbour on 28 August 2009. Mr Kelly holds Ms Dawson has extensive experience in Responsible for: a Master of Architecture and has many place management, retail management years experience in architecture, planning, >> Finance and marketing. building conservation and urban design. >> Human resources Responsible for: Responsible for: >> External relations >> Place management >> Place management >> Procurement >> The Rocks Markets >> Information, communications Left to right: Ian Kelly, Egle Garrick, Bob Deacon, Diana Talty, James Smart, Catherine Gallagher and Debra Dawson and technology on the rooftop at Sydney Harbour YHA
Sydney Harbour Foreshore Authority Annual Report 2009–10 15 A special location, respect for the past and a shared vision helped the Authority turn Ballast Point into a foreshore park unlike any other. Following its official opening in July 2009, the park has been highly praised by the local community and media. On New Year’s Eve, thousands turned out to witness Sydney’s celebrations from Ballast Point for the first time including local residents Jeanie MacCallum and Roger Parkes. See page 19.
16 Sydney Harbour Foreshore Authority Annual Report 2009–10 > Business 2 effectiveness
Enhance place management efficiency and integrate sustainability into everything we do. >>Generated $45.3 million in lease revenue in The NSW Government State >> Continue to partner with Sydney Plan priorities Convention and Exhibition Centre Rocks, Darling Harbour >> Increase business investment and the Sydney Entertainment and surrounds and support jobs Centre to identify cost-effective ways to reduce energy and >>Completed the final >> Maintain and invest in infrastructure water consumption year of a five-year >> Cut red tape >> Progress staged implementation capital investment plan >> Tackle climate change of the harbour heat exchange for The Rocks and >> Increase the number of people program in The Rocks Darling Harbour using parks >> Continue the redevelopment of Darling Walk >>Completed the first stage Authority strategic objectives >> Continue to manage the of community consultation >> Prepare asset management plans consultation process to determine for the Bays Precinct for all Authority-owned assets to future land uses for Bays Precinct identify maintenance and >>Secured the future of the management priorities Challenges Cumberland Street dig >> Review property management >> Two large unique properties in The site with the opening of business arrangements to Rocks have proved difficult to Sydney Harbour YHA and minimise current and future lease thus skewing the Authority’s property vacancies through early commercial vacancy rate. the Big Dig Archaeology lease renewals and holdovers Independent leasing agents have Education Centre >> Implement the asset divestment now been appointed to engage in strategy in line with the NSW a targeted marketing campaign for >>Received 12 industry Government’s timelines these properties awards for sustainability, >> Continue to manage and conserve >> Progressing The Rocks harbour urban renewal, The Rocks’ and Darling Harbour’s heat exchange program heritage conservation significant heritage Future directions 2010–11 and marketing >> Implement asset management plans for all Authority-owned assets >> Reduce commercial vacancies in The Rocks >> Further consolidate the Authority’s role as place manager for Barangaroo >> Reduce energy and water consumption at Sydney Convention and Exhibition Centre >> Continue to progress the staged implementation of the harbour heat exchange program in The Rocks
Sydney Harbour Foreshore Authority Annual Report 2009–10 17 >> undertaking feasibility studies for the heritage significance, limitation in use Place adaptive reuse of 47 George Street or location, have not responded to the and 127–129 George Street. Authority’s own leasing processes. management Projects in Darling Harbour included: The Authority has now appointed independent leasing agents to find >> completing a master plan and suitable tenants. In the interim, feasibility study for the renewal and efficiency short-term leasing for film shoots and upgrade of the public domain lighting other uses has continued. If these two Investment plan final year >> installing a temporary children’s unique sites are excluded, the Sydney Harbour Foreshore Authority playground to support the Darling commercial vacancy rate drops to completed the final year of a five-year Walk redevelopment (see page 19) 3.6 per cent. revitalisation program for The Rocks >> repairing marine structure and The Authority generated $45.3 million and Darling Harbour. wharves at the South Steyne and in lease revenue in The Rocks, Darling Projects totalling $2.4 million in The Pier 26 Harbour and surrounds. Rocks and $7.4 million in Darling >> upgrading the site sound system to Harbour were undertaken to upgrade ensure reliable public address Strategic asset divestment buildings, enhance the public domain communications during a major city In the November 2008 mini-budget, and ensure the sustainability of both power cut or emergency. the NSW Government identified a areas for tenants, visitors and residents. number of government assets suitable Low vacancies, high rental return In addition to meeting financial and for operation and management by the As at 30 June 2010, the Authority investment targets, the Authority private sector. These included several achieved a retail vacancy rate of 2.36 continues to focus on meeting the commercial properties at Darling per cent in The Rocks, compared to expectations of its tenants, visitors and Harbour and The Rocks owned by the average Sydney prime retail strip other stakeholders. the Authority. vacancy rate of 6 per cent*. In Darling Projects in The Rocks included: Harbour the vacancy rate was zero Independent market valuations were >> restoring the stonework facade at per cent. sought—initially in 2009 and again in 2010—for each of these properties. State heritage-listed 107–109 In The Rocks five new retail leases and George Street (see page 21) The properties were offered to the two new licences were signed during market between February and April >> replacing roofing and stormwater the year, while nine leases and two 2010, in a process managed by a systems and facade restoration at licences were renewed. In Darling steering committee chaired by NSW 12–20 Argyle Street Harbour six new licences were signed Treasury with representatives from the >> completing extensive conservation and three licences were renewed. Authority, Department of Premier and works on the State heritage-listed The Authority’s commercial vacancy Cabinet, and State Property Authority. Argyle Bridge (see page 22) rate in The Rocks remains high at Offers for two properties were above >> completing planning and design 17.05 per cent. However this result is the set reserve, and have been for commercial upgrade at State skewed by two unique properties on awarded preferred tender status. heritage-listed 70 George Street Gloucester Street which, due to their
Retail vacancy rate
5% 4.1 4%
3% 2.36 2% 1.8 1.55 Percenatge 1%
0 2006–07 2007–08 2008–09 2009–10
* Source: CBRE Market View
18 Sydney Harbour Foreshore Authority Annual Report 2009–10 The remaining properties did not reach The park’s superb location also The consultation generated lively their market valuation and will continue attracted thousands of visitors on 31 discussion regarding the land uses under their current lease conditions. December 2009 as the area was for Bays Precinct. A community opened to the public to celebrate New reference group established by the A night to remember at Barangaroo Year’s Eve for the first time, with the Minister for Planning met 10 times over On 31 December 2009, thousands of Authority providing additional toilets, the consultation period and concluded people watched the New Year’s Eve lighting and security. their work in a document titled fireworks from Barangaroo for the first ‘Towards an Integrated Strategic Plan time. The Barangaroo Delivery Darling Walk redevelopment for the Bays Precinct.’ Consultation Authority opened the gates to 10,000 surging ahead was also undertaken with industry people with free tickets available through In August 2008, Lend Lease was groups including the Property Council Ticketek for a small booking fee. selected by the Authority to redevelop of Australia and Sydney Chamber of Commerce. To ensure the night went smoothly and the 1.5-hectare Darling Walk site at further secure our position as future Darling Harbour. Feedback from the first stage will be place manager of Barangaroo, the With demolition and excavation works included in a report to the NSW Foreshore Authority provided full complete, Lend Lease began Government Bays Precinct Taskforce. operational support for the New Year’s construction of the $500 million The Taskforce will prepare a number Eve event. Darling Walk project in April 2009. By of draft planning principles which will March 2010, the development was form the basis of the second stage of Asset management plans in rapidly taking shape with the emerging consultation, expected to start by late the pipeline north and south towers outlining the September 2010, and guide the During the year work has commenced new pedestrian gateway to the city. long-term development of Bays Precinct. to streamline asset management plans During the next stage, the hoardings The Authority also purchased a key for all Authority-owned assets. Asset around the development were site in the Bays Precinct, the former management data, including building extended to include the redevelopment White Bay Hotel, in June 2010. This condition reports, is being collated of the children’s playground. A purchase will assist in planning for and the Authority is assessing asset temporary children’s play area was the precinct. management systems used by other installed nearby and will be available government agencies. It is expected until the Darling Walk project is Development continues on harbour that the system enhancements will be completed, expected mid-2011. heat exchange completed in 2010–11. The project remains on target and, During the year the Authority has been when complete, will house offices for working with Sydney Ports Corporation more than 5,000 Commonwealth Bank to progress The Rocks harbour heat Creating employees and include a rejuvenated exchange program. When realised, retail precinct, a water play area, a the project will remove the need for sustainable community green and new pedestrian air conditioning cooling towers on links to Town Hall Station, Chinatown buildings and will instead regulate and Cockle Bay. air temperature using water from precincts the harbour. Community guiding future of Ballast Point transformation The rollout of stage one of the project, Bays Precinct critically acclaimed which includes basic infrastructure A consultation process was launched at 100 George Street and 88 George Following its official opening day in by the NSW Government in June 2009 Street, is expected to commence July 2009, the Authority’s new to give the community a say in the in 2011. harbourside park at Ballast Point has future of Sydney’s western harbour at flourished. The park, which has been Bays Precinct. The first stage of dramatically transformed from consultation, which was managed by industrial use back to nature with the Authority, concentrated on gaining foreshore walks, cycle paths and ideas and information from the picnic spaces, has received critical community for the long-term future of acclaim from the local community, Bays Precinct, in particular Glebe media and industry (see page 23 for Island, White Bay and White Bay more details). Power Station. >
Sydney Harbour Foreshore Authority Annual Report 2009–10 19 Projects and initiatives in Hand basins save thousands of Leadership in progress include: litres of water >> inviting expressions of interest for a In November 2009 the Authority sustainability proposed tri-generation plant at installed water saving devices in Darling Harbour 105 taps on hand basins in Darling Reducing greenhouse >> conducting a feasibility study on Harbour. The water saving initiative gas emissions rainwater harvesting from the reduces the rate of water used from The Authority purchased GreenPower Sydney Convention and Exhibition more than 5 litres a minute to just for all its occupied buildings and Centre roof 2 litres a minute, potentially saving 18,000 litres of water per day. calculated its carbon footprint from >> partnering with Sydney Ports natural gas consumption, company Corporation on a harbour-based Tri-gen for the future vehicles, car rental and taxis, freight, air heat exchange system for The Rocks travel, paper, waste and additional The Authority’s aim to reduce the >> partnering with the NSW Department electricity consumption. In 2009 the carbon footprint of the entire Darling of Environment, Climate Change Authority reduced greenhouse gas Harbour precinct by 80 per cent from and Water to offer tenants access to emissions by 61 tonnes when compared year 2000 levels by 2020 will get a the Energy Efficiency for Small to 2008 in the areas of company huge boost from a proposed tri- Business Program which provides vehicles, car rental, taxis and paper. The generation plant at Sydney Convention rebates for implementing energy Authority’s unavoidable remaining 216 and Exhibition Centre. saving opportunities tonnes of CO2 equivalent were offset The proposed plant, which will use >> partnering with the NSW Department through the purchase of voluntary natural gas to provide power, heating of Environment, Climate Change carbon units as independently verified and cooling, could reduce carbon and Water to offer hotels in The by Climate Friendly. emissions by up to 35 per cent. The Rocks and Darling Harbour access plant would also have the potential to to Sustainability Advantage Sustainability in action be expanded to meet the energy needs workshops to showcase The Authority is working towards the of other major tenants and Sydney sustainability initiatives in the tourism 2020 targets set out in the Entertainment Centre. Sustainability Policy with efficient and business events industry Expressions of interest to install, energy management through >> developing a framework to reduce operate and maintain the tri-generation technology, education, renewable the carbon footprint of all Authority plant for 15 to 25 years were called for sources, a district electricity generation events and ensure continuous between February and April 2010. Of system and carbon offsets. improvement of sustainable event the 20 expressions of interest received management practices (see page 31). five were shortlisted and will be invited to tender in late 2010.
Reduction in energy and water consumption (measured from year 2000 base)
2005–06 2006–07 2007–08 2008–09 2009–10 Energy
-12.1% -16.3% -13.1% -19.3% -20.8% Water
-11.7% -21.1% -25.7% -39.6% -31.9%
20 Sydney Harbour Foreshore Authority Annual Report 2009–10 Sustainable missions During the year, the centre’s main set During the year, the Authority’s of escalators were replaced with energy Managing cross-organisation green team, Mission saving models that slow down and Sustainable, has implemented a eventually stop when not in use. The heritage and number of new initiatives and projects. centre also reduced waste to landfill by a further 8 per cent, increasing the In January 2010 the group educated total amount of recycled waste to 65 public places employees about the impacts of per cent. disposable coffee cups with almost The Authority has a strong social and one third of employees purchasing a The centre also won the Exhibition and non-commercial role as place manager new barista standard reusable cup. Event Association of Australasia (EEAA) and custodian of Sydney’s significant The group also programmed a series 2009 Award for Excellence for the Best cultural and heritage precincts. In of free public talks for The Rocks Green Initiative and joined the NSW 2009–10, the Authority spent $13.1 Discovery Museum’s sustainability Department of Environment, Climate million on managing and conserving month in June to coincide with World Change and Water Sustainability heritage and public places. Environment Day and launched an Advantage program. intranet blog to share ideas and tips. Stone facade Reducing waste and reconstruction complete increasing recycling Convention Centre continues The Authority’s heritage conservation to lead The Authority continued a number project at 107–109 George Street In 2009–10 Sydney Convention and of waste reduction and recycling was completed in September 2009 Exhibition Centre continued to initiatives during the year including: with the installation of an intricately increase water savings by installing a >> recycling redundant office reconstructed sandstone carving to further eight waterless urinals, with consumables, including ring the parapet, along with other daily water usage now down 60 per binders, through Reverse Garbage replacement stonework to the facade, cent on 2006 levels. >> introducing ‘KeepCups’ for all including the cornice, window hood employees to purchase, reducing moulds and window sills. the number of disposable coffee Cable hut history on show cups being used Following the reconstruction of a >> implementing a policy to historic cable hut on the Dawes Point purchase Australian-made seawall at the end of 2008, a series of recycled office paper. interpretation displays were installed in April 2010. Panels provide information about the relevance of morse code and telegrams to the cable hut while Sydney Harbour YHA a floor inlay map of the world indicates the historical development of international telegram communications.
Sydney Harbour YHA open for business After responding to the Authority’s public call for a compatible land use for The Rocks’ former ‘Big Dig’ archaeological site in 2006, Youth Hostels Association (YHA) unveiled their new 354-bed hostel in November 2009. Sydney Harbour YHA, together with the accompanying Big Dig Archaeology Education Centre, has been incredibly successful in bringing new life into the upper western part of The Rocks. By June 2010, more than 18,000 people had stayed at the YHA and more than 2,200 students from 39 schools had visited the education centre.
Sydney Harbour Foreshore Authority Annual Report 2009–10 21 Following the opening of The Big Dig In The Rocks, a new storyboard was The Authority also continued its Archaeology Education Centre, the installed opposite the Mariners’ heritage maintenance program in The Authority launched five new Church at 100 George Street to show Rocks and Darling Harbour to ensure archaeology-based programs for the building’s transformation and the all its heritage items are maintained to primary and secondary school significant social contribution the the highest standard in accordance children through its education initiative, church once played in Sydney. with the Heritage Council’s guidelines. Sydney Learning Adventures. The Another storyboard showing images of programs all utilise the facilities at the life in the laneways of The Rocks, circa Ongoing conservation education centre (see page 29). 1900, was installed on the Cumberland management Place stairs to link with the opening of The Authority continued to prepare Heritage bridge the Sydney Harbour YHA. Conservation Management Plans carefully conserved (CMPs) for all relevant assets listed on Conservation works to the State Heritage determinations the NSW State Heritage Register. The heritage-listed Argyle Bridge across the Under delegation from the Heritage register lists 105 buildings and sites Argyle Cut in The Rocks were completed Council and under the Heritage Act, owned by the Authority. Under the in November 2009. The project included the Authority: NSW Heritage Act 1977, CMPs are repairs to the bridge’s abutments, >> assessed 19 Section 60 applications required to guide the conservation and concrete pylons and railings to ensure with an average processing time of future use of these heritage items. its long-term conservation and help three days. This is substantially In 2009–10 one new and 14 revised conserve its heritage features for visitors. faster than the statutory assessment CMPs were prepared. The CMPs will period of 40 days Interpretation across our precincts continue to be reviewed and revised >> processed 24 Section 57(2) over a five-to-seven-year cycle or As part of Darling Harbour’s 21st exemptions with an average where major works have taken place. anniversary year, specialists in history, processing time of three days, In the coming year, 15 heritage items interpretation, curatorial and public art well below the statutory are scheduled for a CMP update. were invited to a workshop in processing period of 14 days December 2009 to focus on ways to convey the story of Darling Harbour’s >> assessed one Section evolution. Outcomes from the 140 application workshop are being converted into a >> processed seven Section presentation and publication to inspire 139 exceptions. place managers, tenants and Delegated determinations are listed in developers to include history in their the Appendix on page 124. business and development proposals. >
Heritage determinations
2007–08 2008–09 2009–10
Average Average Average Number Number Number processing time processing time processing time Section 60 45 7 days 27 3 days 19 3 days
Section 57(2) 53 2 days 55 2 days 24 3 days
Section 140 3 n/a 2 n/a 1 n/a
Section 139 3 n/a 6 n/a 7 n/a
22 Sydney Harbour Foreshore Authority Annual Report 2009–10 A year of accolades
SEPTEMBER–OCTOBER 88 George Street still winning The Authority picked up two more awards for 88 George Street in 2009. The project, which was completed in late 2007, took out the NSW award for sustainable projects at the Project Management Achievement Awards in September 2009 and was highly commended for sustainable development at the Urban Taskforce Development Excellence Awards in October 2009.
Award-winning renewal at Sydney Wharf Authority employees accepting the Avant Card Postcard of the Year Award The redevelopment of Wharf 8/9, or Sydney Wharf, in Pyrmont scooped an urban renewal award at the Urban Development Industry DECEMBER JUNE Australia NSW Awards in October Ballast Point wins for Geisha named Postcard 2009. During the development, the innovative design of the Year Authority acted as contract The innovative design of Ballast Point In June 2010, the Authority’s coffee- administrator and was responsible Park won a special jury citation for new drinking geisha postcard to promote for the public domain outcome. directions at the Australian Institute The Rocks Aroma Festival was named of Landscape Architects NSW Awards the Avant Card 2009–10 Postcard of NOVEMBER in December 2009. The park was the Year for what the judges called a Fourth World Travel Award recognised for making sustainable “visually arresting and dead simple” for SCEC design and construction practices idea. The 12 postcards of the month Sydney Convention and Exhibition ‘mainstream’ (see page 19). up for the annual award were chosen Centre won its fourth consecutive from more than 600 Avant Card World Travel Award in November APRIL campaigns during the year. 2009, again claiming the title of Highly commended heritage Australasia’s Leading Conference The Authority received three highly Annual Report does the double Centre. The centre was chosen by commended awards at the Energy After winning gold for the first time at travel professionals from a field of six Australia National Trust Heritage the Australasian Reporting Awards finalists from the Australasian region. Awards luncheon in April 2010. (ARA) in 2009, the Authority again won The World Travel Award joins other The awards recognised the hugely gold for its Annual Report at the 2010 recent endorsements for the centre successful Sydney Harbour YHA and awards. The 2008–09 report, which including its Green Globe Silver The Big Dig Archaeology Education was produced in-house, achieved Certification which recognises Centre, the transformation of Ballast overall excellence in annual reporting. environmental leadership in the Point Park and the skilful conservation 2007–08 2008–09 2009–10 business events sector. of the facade at 107–109 George Two trophies at Property Street (see page 21). Council Awards Average Average Average Number Number Number At the Property Council of Australia’s processing time processing time processing time Innovation Awards at the end of June, Section 60 45 7 days 27 3 days 19 3 days the 6 Star Green Star rated Workplace6 building at Darling Island took out the Section 57(2) 53 2 days 55 2 days 24 3 days Thinc Award for Sustainable Projects Section 140 3 n/a 2 n/a 1 n/a while Sydney Harbour YHA was awarded a high commendation in the Section 139 3 n/a 6 n/a 7 n/a category of Heritage and Adaptive Use.
Sydney Harbour Foreshore Authority Annual Report 2009–10 23 Sydney Harbour YHA and the adjacent Big Dig Archaeology Education Centre cleverly incorporate remnants of colonial buildings, laneways and artefacts. Since opening in late 2009, more than 2,000 students have visited the education centre to take part in programs led by Sydney Learning Adventures’ guides, including Nicky Berrick, and more than 18,000 people have stayed at the YHA. See page 21.
24 Sydney Harbour Foreshore Authority Annual Report 2009–10 > Stakeholders
and customers >>Provided operational and 3 logistical support for Sydney International FIFA Deliver outstanding services and events, Fan FestTM reinforce our relevance with stakeholders and >>Hosted more than 90 lead the expansion of convention facilities at events at Sydney Darling Harbour. Entertainment Centre >>Celebrated the NSW Government State >> Better align the Authority’s name Chinese Garden’s Plan priorities and brand with that of its precincts 21st anniversary >> Increase employment and >> Continue to build and progress community participation for the Authority’s relationship with its >>Created a full-time people with disabilities key stakeholders Aboriginal role >> Increase the number of people >> Progress plans to expand Sydney >>Welcomed 106,397 participating in the arts and Convention and Exhibition Centre cultural activities and Sydney Entertainment Centre people to The Rocks Discovery Museum >> Strengthen Aboriginal communities Challenges >> Increase walking and cycling >> Following the termination of Arena >>Taught 21,185 Authority strategic objectives Management’s lease agreement, children on the Authority resumed control of >> Continue to review and refresh educational programs Sydney Entertainment Centre the Authority’s event program >> Continuing to monitor pedestrian >>Increased traffic to the >> Continue to improve precinct and bicycle traffic on Pyrmont Darling Harbour website functionality and presentation Bridge to ensure the safety of all by 30 per cent bridge users >>Achieved a Guinness Future directions 2010–11 World Record for the >> Implement best practice processes and systems for all largest coffee sculpture Authority event related activities >>Supported the >> Continue to improve the 2010 Lions Club functionality and presentation of The Rocks and Darling Harbour International Convention >> Continue to strengthen the >>Produced events in Authority’s reputation and The Rocks and Darling relationship with its key stakeholders Harbour attended by 1.84 >> Take the lead role in developing million people* and implementing a program to expand convention and exhibition facilities at Darling Harbour
* The number of people movements recorded. See page 33 for details on how figures are calculated.
Sydney Harbour Foreshore Authority Annual Report 2009–10 25 of the global financial crisis on the In April 2010 the centre added the Conventions, events industry resulted in an 8 per ISO 14001:2004 Environmental cent decrease in delegate numbers. Management System and OHSAS exhibitions and During year four of the centre’s 18001:2007 OHS Management System five-year $50 million capital upgrade to its existing ISO 22000:2005 food entertainment plan, the Authority completed safety accreditation, becoming the first extensive refurbishment of the internal centre in Australia to obtain these three specific standards. Authority to develop convention finishes and furnishings within the master plan Parkside area. Supporting the World Cup In May 2010, the NSW Government Planning and design development In November 2009 Sydney was appointed the Authority to prepare were also undertaken in preparation chosen as one of only six international a master plan to redevelop and for refurbishing several Parkside cities to host an official FIFA Fan Fest™ expand the State’s convention and rooms in 2010–11 at an estimated cost site during the World Cup Finals in exhibition facilities at Darling Harbour. of $7 million. South Africa in June and July 2010. This appointment ties in closely with Darling Harbour was chosen from Show goes on at Sydney work the Authority is already doing, several options put forward for Sydney Entertainment Centre including the redevelopment of Darling with FIFA recognising it as an iconic, Walk and the Ultimo Pedestrian In August 2009 the Authority took yet accessible location. Network upgrade. over the management of Sydney Entertainment Centre following the The site, which opened from 4 pm The NSW Government’s aim is to termination of Arena Management’s to 7.30 am daily until the final on 12 expand Sydney’s share of the lease agreement. In order to keep July, featured three floating screens convention centre market and boost the venue open and reduce any on Cockle Bay and a screen in the State’s tourism industry. impact on ticket-holders, the Authority Tumbalong Park. The event was The Authority will also examine options appointed Darling Harbour Convention supported by 865 volunteers and for refurbishing Sydney Entertainment and Exhibition Pty Ltd, which also attracted more than 500,000 people. Centre and integrating new convention runs Sydney Convention and In addition to the tournament’s 64 facilities with Barangaroo, Chinatown, Exhibition Centre, to manage the matches, the site featured more than the Powerhouse Museum and the entertainment centre. 120 football matches on the floating education precinct of the University Since mid-August, the centre has pitch, 30 football skills clinics and free of Technology and TAFE at Ultimo hosted more than 90 ticketed and performances by entertainers, bands, and Broadway. non-ticketed events, including DJs and cultural groups. The master plan will be completed performances by many headline Coordinated by the Community by the end of 2010. international artists. Engagement and Events division of the Department of Premier and Convention Centre planning Convention centre sets Cabinet with essential logistical and for long-term the standards operational support from the Authority, Sydney Convention and Exhibition Sydney Convention and Exhibition the success of the Sydney International Centre drives commercial visitation to Centre has become the first FIFA Fan FestTM adds weight to Sydney, providing business for Darling convention centre in Australia to Australia’s 2022 FIFA World Cup bid. Harbour’s hotels, retail areas and achieve three leading international major attractions. In 2009–10 the certifications relating to its standards number of events held at the centre for environmental management, increased from 564 to 604 (see table occupational health and safety, below), however the continuing effect and food safety.
Visitation to Sydney Convention and Exhibition Centre
Events Delegates Visitors 2006–07 2007–08 2008–09 2009–10 2006–07 2007–08 2008–09 2009–10
International 31 23 26 25 23,524 22,812 21,668 31,479
National 495 524 538 579 968,976 1,026,555 837,145 758,971
Total 526 547 564 604 992,500 1,049,367 858,813 790,450
26 Sydney Harbour Foreshore Authority Annual Report 2009–10 Huahua, and the NSW Premier, and Continuous improvement for Community welcomed more than 3,300 members people with disabilities of the public on a free open day. The Authority’s formalised Disability services At the same time, the garden launched Action Plan focuses on improving a 45-minute audio tour. The tour gives readily identifiable physical access Streamlined visitor services an insight into the garden’s history and issues, improving staff training, At the end of 2009, Sydney Harbour philosophy and is available in English integrating Disability Discrimination Act Foreshore Authority called for tenders and Mandarin at the front desk or to (DDA) compliance and formalising to license the commercial business download free at darlingharbour.com. complaints procedures. functions, including travel bookings Projects completed or in progress Slow-down stripes for and retail sales, of the Sydney during the year included: Pyrmont Bridge Visitor Centres at The Rocks and >> providing accessible pathways, A series of bold new white stripes, Darling Harbour. toilets and disability parking at similar to those used on roads Since tenders closed in early January, Ballast Point Park approaching intersections and the Authority has been undertaking a crossings, were painted on Pyrmont >> creating fully accessible comprehensive process to select a Bridge in November 2009 to remind accommodation and education successful tenderer. Once this cyclists to keep to the speed limit. In facilities at Sydney Harbour YHA evaluation process is complete addition two rangers patrol the bridge and The Big Dig Education Centre the full range of services offered to during the morning and afternoon >> continuing with the construction of a businesses and visitors will be peak. The raised-profile stripes, fully accessible public domain and enhanced by the new commercial rangers and the 10 kph signs installed playground at Darling Walk arrangements. by the Authority earlier in the year, help >> continuing to upgrade The Rocks Anniversaries and audio tours at ensure the safety of pedestrians and Mobility Map to further distinguish the Chinese Garden cyclists in the shared zone. accessible routes To celebrate the Chinese Garden of >> continuing to provide disability Friendship’s 21st anniversary in awareness and inclusive customer October 2009, the Authority hosted a service training for frontline staff. special private function attended by the Governor of Guangdong, Huang
Visitation to Authority-owned attractions
2005–06 379,157 2006–07 408,697 2007–08 367,273 Sydney Visitor 2008–09 332,610 Centres 2009–10 316,883
2005–06 1,233,962 2006–07 1,371,200 2007–08 1,405,802 The Rocks 2008–09 1,535,911 Markets 2009–10 1,584,607
2005–06 182,417 2006–07 185,183 2007–08 185,662 Chinese Garden 2008–09 176,499 of Friendship 2009–10 201,452
100 200 300 400 500 600 700 800 900 1,000, 1,100 1,200 1,300 1,400 1,500 1,600
Number of people (’000)
Sydney Harbour Foreshore Authority Annual Report 2009–10 27 Aboriginal voices During the year, 709 children aged four Indigenous As part of the Authority’s free Friday to 12 participated in HMS Discovery, lunchtime talks series launched at an interactive role-play experience initiatives The Rocks Discovery Museum in late simulating the voyage of a supply ship 2009, living Aboriginal culture is now from England to Australia in 1792. An Authority first more accessible to Sydneysiders Teachers, parents and caregivers rated the program highly with 98 per In early January 2010 the Authority and visitors. The Talks on The Rocks series, which features a diverse cent saying they would recommend it created its first full-time Aboriginal role to others. to develop, implement and promote range of speakers and a different Sydney Learning Adventures’ Aboriginal theme every month, includes an The museum also launched a new programs and provide Aboriginal Aboriginal speaker the third Friday bi-monthly blog, Dirt on The Rocks, community liaison. of every month. in February 2010. Written by members of the Authority’s heritage team, the Binowee Bayles (pictured on the blog features in-depth insights into cover), a proud Koori woman from the Education museum artefacts and exhibitions, south Sydney area, joined the Authority sustainability, historical interpretation as a casual Aboriginal tour guide in In 2009–10 the Authority spent and recent archaeological discoveries July 2009 before moving to the position in The Rocks. of tour services assistant and then to $663,000 on educational programs act in the new role of Aboriginal and services. In May 2010, the top floor of the program coordinator. museum hosted an exhibition of The Rocks Discovery Museum landscape photography inspired by In May 2010 the Authority employed The Rocks Discovery Museum brings Kosciuszko National Park with the an additional four casual Aboriginal the history of The Rocks, its people support of the NSW National Parks tour guides to assist the Aboriginal and their stories to life in four and Wildlife Service’s discovery program coordinator in running Sydney permanent exhibitions. The free rangers and local Aboriginal Elders. Learning Adventures’ Bangaboui: museum attracted 106,397 people in Aboriginal Cultural Harbour Cruise 2009–10, an increase of 15 per cent on Talks on The Rocks and The Rocks Dreaming educational 2008–09, with visitors giving an An ongoing series of free Friday programs. Bookings for these average satisfaction score of 9 out of 10. lunchtime lectures was launched at programs have increased by 16 per The Rocks Discovery Museum in cent in 2009–10. November 2009.
Participants in Authority educational programs
2006–07 87,056 2007–08 98,615 2008–09 90,495 Museum Discovery The Rocks 2009–10 106,397
2006–07 14,748 2007–08 19,500 2008–09 19,047 Sydney Learning
Adventures 2009–10 21,185
* 2006–07 n/a 2007–08 n/a
HMS 2008–09 580
Discovery 2009–10 709
634 * 2006–07 2007–08 2,294 2008–09 800
Kids Dig 2009–10 n/a
10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 110,000
* HMS Discovery replaced Kids Dig in January 2009.
28 Sydney Harbour Foreshore Authority Annual Report 2009–10 Featuring eminent arts, culture and on 2008–09. Teachers rated all Transport and Tourism in February historical speakers, Talks on The programs highly with an average 99.7 2010 and the Osaka Senate in Rocks focuses on a different Sydney- per cent good or excellent rating March 2010 based theme each month. The series across all programs. >> delivering a presentation on also includes an Aboriginal speaker Sharing our expertise interpretation in The Rocks at the the third Friday of every month, and a The Authority presented papers and International Interpretation Conference podcast of each week’s speaker is in Townsville in April 2010 available on therocks.com. keynote speeches on events, heritage and the history of Darling Harbour at a >> delivering a public talk on the Bringing The Big Dig to life number of national and international industrial heritage of Darling In addition to 15 existing programs in industry conferences during the year. Harbour at the Powerhouse Museum in May 2010. The Rocks and Darling Harbour, the These included: Authority’s Sydney Learning Adventures >> delivering a presentation on has developed five new programs for activating waterfront precincts primary and secondary school children through dynamic events to Auckland Building based at the new Big Dig Archaeology City Council in October 2009, the Education Centre in The Rocks. 2nd Urban Waterfront Conference in stakeholder The programs focus on the history Bahrain in November 2009 and the of the surrounding Cumberland/ Place Leaders Association relationships Gloucester Street neighbourhood, Conference in Darwin in May 2010 archaeological methods and the >> delivering a presentation on The Excellence in customer service famous 1994 Big Dig on the same Rocks Discovery Museum at the The Authority responds efficiently and site (see page 21). More than 2,000 National Museum, Canberra in effectively to feedback from tenants students have experienced the programs October 2009 and visitors. During the year a total of since their launch in February 2010 >> presenting a keynote address on the 9,241 reports, requests and complaints with 100 per cent of teachers saying history of Darling Harbour at the were captured in the Authority’s they would recommend them to others. International Engineering Heritage Customer Request Management System. This system is linked to a Big year for learning Conference in New Zealand in November 2009 dedicated Customer Service Request Sydney Learning Adventures Line which operates 24 hours, seven experienced its biggest year ever with >> delivering a presentation and site visit on heritage, conservation and days a week, and allows the Authority a total of 21,185 students participating to identify key trends and issues within in programs—an 11 percent increase planning in The Rocks to the Japanese Ministry of Land, Infrastructure, its precincts and respond accordingly. Complaints received through the system related to various matters, Children demonstrate what they have learnt in The Rocks Discovery including busking, noise issues and Museum visitors’ book the removal of rubbish. The Authority responded quickly and equitably, completing requests on time within an average of 2.75 days. The Authority also used feedback received during the year to improve service delivery in its precincts.
Reaching our audience online The Authority’s weekly social media marketing of The Rocks and Darling Harbour on Facebook and Twitter has seen fans and followers grow, with a 20–30 per cent increase in the first half of 2010. With the increased usage of mobile internet, the Authority continues to trial initiatives including the development of event specific mobile sites which allow visitors to easily access event programs from their mobile phone.
Sydney Harbour Foreshore Authority Annual Report 2009–10 29 An integrated Citysearch online and and Darling Harbour. The guide was Nova radio campaign promoting increased from 16 pages in 2008–09 Outstanding Darling Harbour has resulted in an due to increased demand from tenants increase in traffic to darlingharbour. to participate in cooperative advertising. events com of 30 per cent. The main call to In addition the Authority partnered with action in all marketing campaigns for three leading national business events The Authority develops, manages and The Rocks has been therocks.com publications to promote business and delivers a calendar of public festivals resulting in a 15 per cent year-on-year event product in the precincts. This and events to celebrate Sydney increase in visitation to the site. campaign resulted in a 300 per cent year-round. These events, which are focused on achieving increased Targeted publications increase in visitation to the Authority’s website sydneyforevents.com. visitation to The Rocks and Darling A seasonal eight page ‘what’s on’ Harbour, are funded by the Authority Maximising global tourism guide to The Rocks was launched and many have been taking place in December 2009 to target After Australia’s largest inbound annually for as long as two decades. Sydneysiders. The quarterly Korean tour operator, Hana Tour, In 2009–10 the Authority spent $6.2 publication is distributed with The committed to featuring Sydney million on social, community and Sydney Morning Herald and through Learning Adventures’ Finding Your celebratory activities. local businesses. Feet program in their brochures in In addition, two new visitor-focused 2008–09, more than 1,000 Korean publications were launched in The passengers booked the excursion JULY Rocks. The Rocks Self-Guided during the year. Record-breaking coffee Walking Tour booklet, which retails in In March 2010 Sydney Learning The Rocks 12th annual Aroma Festival the Sydney Visitor Centres, was Adventures’ programs were also brought coffee, tea, chocolate and published in February and includes introduced into a Singapore spice to thousands in four new themed 37 places of interest, a fold-out map, education brochure. ‘regions’—with visitation up by 11 per walking instructions and colour Between January and April 2010, cent on 2008. The event’s spectacular images. A new 56-page free annual the Authority welcomed almost 3,604-cup Mona Lisa coffee installation guidebook targeting domestic and 40,000 cruise passengers at a also became a Guinness World Record international visitors was produced dedicated arrivals desk at the attracting global media coverage and and distributed to hotels in The Rocks Overseas Passenger Terminal at 100,000 hits on YouTube. and surrounding area in April 2010. Circular Quay. At the desk the Communicating with tenants and Authority distributed maps, leaflets stakeholders and a daily ‘what’s on’ sheet with tenant offers. In December 2009, the Authority launched ‘Circa’, a new monthly Sydney hosts thousands of Lions e-newsletter designed to keep key In June 2010, more than 12,000 industry, community and government delegates from 140 countries arrived in stakeholders informed about our Sydney for the 93rd Lions Club achievements. The tone, content and International Convention at Sydney The Rocks Aroma Festival distribution of Circa was determined Convention and Exhibition Centre and by the results of a stakeholder Sydney Entertainment Centre. perception survey conducted by an independent research agency in Having supported the Sydney OCTOBER December 2009. Convention and Visitor Bureau (now Sizzling despite the rain Business Events Sydney) bid to host In January 2010, new HTML templates Over the October long weekend 30 bands the convention in 2003, the Authority were introduced to replace the and 45 dance groups came together played a significant role in the planning long-running monthly PDF precinct for Darling Harbour’s 19th annual Latin and delivery of the event. This included newsletters produced for tenants in dance and music festival, Fiesta. development of the Lions 2010 The Rocks and Darling Harbour. website, banner support and provision In 2009, Fiesta was incorporated into the Events NSW Crave festival Attracting local business and events of precinct maps and a Lions Club branded Sydney Visitor Pass. program. For the first time visitors were The Authority produced a 20-page able to access the full program, two guide to convention, incentive and With delegates staying in 32 hotels for one deals and maps on their venue hire opportunities in The Rocks around the city, the convention is mobile phones. Despite heavy rainfall estimated to have generated more over the three-day event, Fiesta than $16 million for the NSW economy. attracted more than 220,000 people*.
* The number of people movements recorded. See page 33 for details on how figures are calculated.
30 Sydney Harbour Foreshore Authority Annual Report 2009–10 NOVEMBER In Darling Harbour more than 180,000 MAY Markets by Moonlight all people* packed the precinct for kids’ Early jazz and blues summer long entertainment, concerts and the Traditionally held on the Queen’s In 2009 The Rocks Markets by infamous Australia Day spectacular— Birthday long weekend in June, the 2010 Moonlight was extended from its a 4.8 per cent increase on 2009. While Jazz and Blues Festival was brought usual month-long run in November in The Rocks more than 70 Australian forward to May to accommodate the to take in the entire summer season. singers and songwriters took to Sydney International FIFA Fan FestTM Showcasing up-and-coming artists outdoor stages for 10 hours of free in June and July. Although the alongside night markets and food entertainment with visitation up 7.6 per weekend was affected by heavy rain, stalls, the Friday night event ran cent on 2009. the festival’s 34 performers and new from 6 November 2009 to 26 March ‘open mic’ stage still drew more than 2010 attracting a total of more than 180,000 people*. 250,000 visitors*. JUNE Fire, water and a touch of glamour Following last year’s hugely successful new winter event, The Rocks Fire Water, Campbells Cove was again alight with flame, food and spectacle— Darling Harbour Australia Day this time to tell the tale of the voyage of the Sydney Cove with a touch of Bollywood glamour thanks to Markets by Moonlight FEBRUARY performances by local cultural groups. Celebrating the Year of the Tiger Again featuring as part of Vivid The Chinese Garden of Friendship Sydney, the 2010 event also included DECEMBER welcomed the Year of the Tiger with Indigenous performers and wintry Christmas cheer three special events including an night markets and attracted 113,000 * In The Rocks, the festive season was evocative sound and video installation, people over its four-night run. marked with a striking eight-metre the popular Art of Penjing tours and a Fire Water was the first Authority event blue and green bottle tree on George day with the Australian Chinese to be measured for its impact on the Street made from 18,000 reject soft Painting Society. environment. The Authority aims to drink bottles. Meanwhile in Darling measure and subsequently reduce the Harbour, Christmas was celebrated APRIL carbon footprint of all its events. with a free family concert, fireworks Easter circus fun over Cockle Bay and carols by the tree throughout December. Over the Easter weekend acrobats, YEAR ROUND aerialists, jugglers, contortionists and New events at The Rocks Markets NYE 09 interactive children’s entertainment A number of special events have Almost 200,000 people* packed into brought with more than 175,000 boosted visitation to The Rocks * Darling Harbour to see in the New Year. people to Darling Harbour Hoopla. Markets throughout the year. Two The evening of free entertainment The 2010 event introduced an showcase events brought wine and included an open-air disco, retro concert extended ticketed evening program produce from the Orange region and and two fireworks displays. At the same and a collaboration between French the Mid North Coast to the city in time thousands of people also watched and Australian street theatre artists in spring while in February a weekend the celebrations on Sydney Harbour partnership with the French Embassy. was dedicated to arts and crafts with from Barangaroo and Ballast Point Park workshops, demonstrations and Sell-out Vintage Dinner for the first time (see page 19). master classes. Fashion and On 23 April, 250 people sat down to accessories from the markets have The Rocks inaugural Vintage Dinner also been featured in two catwalk JANUARY to celebrate the end of the 2010 wine shows in The Rocks Square. A great Australian day vintage. Diners used special rock Huge free Australia Day programs currency to buy food, wine and beer were held in both The Rocks and while listening to live jazz, classical Darling Harbour attracting hundreds of guitar and ukulele at long communal thousands of visitors on 26 January. tables in Jack Mundey Place and Kendall Lane.
* The number of people movements recorded. See page 33 for details on how figures are calculated.
Sydney Harbour Foreshore Authority Annual Report 2009–10 31 Attendance at Authority events in Darling Harbour
300,000
250,000
200,000 *
150,000 People movements People 100,000
50,000 Australia Day, Darling Harbour Australia Day, Darling Harbour Hoopla Darling Harbour Jazz and Blues Festival 0 Darling Harbour Fiesta Christmas Concert, Darling Harbour Eve, Darling Harbour New Year’s
* In 2010 Darling Harbour Jazz and Blues Festival was moved forward and did not fall on a long weekend as in previous years
Attendance at Authority events in The Rocks
300,000
250,000
200,000
150,000
100,000 * People movements People
50,000 ** New Year’s Eve, The Rocks New Year’s The Rocks Australia Day, 0 The Rocks Aroma Festival Markets by Moonlight Fire Water
* In 2009–10 Markets by Moonlight were held from November to March (previously they were held in November only) 2006–07 2007–08 2008–09 2009 –10 ** Fire Water was first held in 2009
32 Sydney Harbour Foreshore Authority Annual Report 2009–10 Monthly people movements in The Rocks and Darling Harbour
3.0 How visitors are counted Electronic people counters are installed in key locations in Darling Harbour and 2.5 The Rocks. The counters emit an infrared beam and each time a pedestrian breaks the beam a people 2.0 movement is registered. Calibration and expansion calculations are applied to raw counts to ensure that final figures 1.5 estimate total pedestrian flow. These figures include repeat visits made by visitors, workers and residents. 1.0 People movements (millions)
0.5
0.0 Darling Harbour The Rocks
In Darling Harbour, approximately 25.2 In The Rocks, approximately 14 million million people movements were recorded people movements were recorded in in 2009–10, with people enjoying 2009–10, with people enjoying the international conventions, attractions and entertainment, shopping and dining events in the precinct. This was an increase experiences on offer. This was an increase in people movements of 1 per cent on the in people movements of 5 per cent on the previous year*. previous year.
>> Sydney International FIFA Fan FestTM The Authority also contributed Supporting the (see page 26) $689,000 through sponsorships, >> Sydney Festival – Circus Oz including: community >> Seniors Week >> $275,000 to the National Trust >> Biennale of Sydney of NSW In 2009–10, the Authority provided >> $150,000 to Sydney Festival Limited approximately $1.45 million of in-kind >> Hunter Valley Uncorked support to a diverse range of >> Chinese New Year >> $125,000 to the City of Sydney New Year’s Eve fireworks community groups, cultural events >> Sydney International Boat Show and charities through venue hire, >> $120,000 to Historic Houses Trust >> Dragon Boat Spectacular banner promotions, production for ‘Painting The Rocks’. equipment and other services. >> Cultural festivals from around the world including India, Greece, The Authority is committed to building Indonesia, Thailand, Nepal, Malaysia, and strengthening relationships with Korea, Brazil, Egypt and Lebanon community and commercial groups and assisted in coordinating numerous >> Almost 50 school and events in The Rocks and Darling community bands. Harbour during the year, including:
* A new catchment area has been used to obtain the 2009–10 people movements for Darling Harbour. Previous year’s figures have been adjusted to reflect this change.
Sydney Harbour Foreshore Authority Annual Report 2009–10 33 As the incumbent host of some of Australia’s biggest parties, including the nation’s largest annual event, Australia Day, Darling Harbour was the obvious choice for the 2010 Sydney International FIFA Fan FestTM. With the world watching and the Football Federation Australia bid to host the 2022 FIFA World Cup on the line, the Authority’s Head of Events and Venues, Damian Jeacle, knew that this had to be a success. See page 26.
34 Sydney Harbour Foreshore Authority Annual Report 2009–10 >
Organisational 4 health
Engage employees in the future of the organisation and deliver organisational reforms. >>Nine employees NSW Government State Authority strategic objectives obtained a Certificate III in Tourism (Visitor Plan priorities >> Communicate the 2009–10 >> Increase employment and Business Plan to engage Information Services) community participation for people employees in the process and the with disabilities future of the organisation >>Relaunched the Personal Development System >> Strengthen Aboriginal communities >> Develop position descriptions >> Promote healthy lifestyles for all roles in line with public >>Thirty employees sector capability framework by >> Improve access to jobs March 2010 regularly participated in and training Authority-sponsored Challenges fitness activities >> Aligning with the Land and Property Management Authority >>Created a full-time >> Reducing and maintaining Aboriginal role employee excess recreational leave balances >>Reduced recreational >> Providing ongoing corporate leave balances to support for the Barangaroo below 40 days in Delivery Authority accordance with NSW Future directions 2010–11 Government policy >> Engage employees in the Authority’s alignment with the Land and Property Management Authority
Sydney Harbour Foreshore Authority Annual Report 2009–10 35 Development Program through the Almost half of the organisation’s Strength in NSW Department of Premier and employees completed the online Cabinet. Both programs seek to survey with 77.2 per cent of organisational develop emerging leaders. respondents saying that the internal Other employee training and communications tools were alignment development programs included: satisfactory or good. >> digital marketing Improvements, including regular reporting on the organisation’s Alignment with Land and Property >> time management performance and business plan and a In June 2010, Sydney Harbour >> legal services new time for the monthly staff briefing, Foreshore Authority became part of >> disability awareness and inclusive were implemented as a result of the Land and Property Management customer service workshops recommendations from employees. Authority (LPMA) within the NSW >> online compliance modules Planning portfolio, and gained a new Maximising potential with mentors Chief Executive, Warwick Watkins AM. including OHS and fraud awareness. The Authority’s ongoing internal LPMA is responsible for a range of Engaging employees in the future mentoring program helps employees property information, management A teaser campaign using identikit style to maximise their leadership potential and development functions across a photographs of Authority employees and increase personal performance number of former separate entities. was used to spark interest in and and career satisfaction. These include the divisions of Land awareness of the organisation’s and Property Information, Crown 2009–10 Business Plan. The Workplace safety Lands, State Property Authority the photographs, which appeared around The Authority’s OHS Consultative Hunter and Festival Development the offices and in internal employee Committee began its two year term in Corporations, Lake Illawarra Authority, communications, were followed up September 2008 with representatives Office of Strategic Lands and Soil with team meetings to help individuals elected from across the organisation, Conservation Service. understand their role in the including casual employees. The decision by the NSW Government organisation’s future. During the year the OHS Committee to connect the Authority with the LPMA investigated and resolved specific The Rocks Underbelly Tour more closely aligns the State’s land OHS hazards including the Murray and property management and In 2010, the Authority ran two tours of Street depot gates and the storage of development functions, and allows The Rocks for employees to increase events barricades at Darling Harbour. skills, functions and systems to be engagement and enhance knowledge A customised manual handling training shared across the portfolio. of the precinct’s history. ‘The Rocks program was also provided for the Underbelly Tour’ brought to life colourful Authority’s horticultural team. tales of Sydney’s heritage quarter. Highlights for employees included In 2009–10 two home based worksite Employee accessing lesser known buildings and assessments were carried out to discovering new parts of The Rocks. facilitate employees with a genuine development need and approval to work from home. Promoting personal development The Authority conducted its third annual Safety Week in October 2009. In April 2010 the Authority’s existing and engagement Activities included: Personal Development System (PDS) Continual learning was relaunched on the intranet to help >> free personal health assessments The Authority continued its focus on employees achieve their professional >> distribution of health and safety employee development, with each goals. The new PDS, which uses a fact sheets series of questions to determine spending an average of 2.3 days in >> raising the profile of the OHS development opportunities, is aligned training during the year. Committee with employees. to the financial year to allow the During the year, nine employees from organisation’s Learning and Internship opportunities the Authority’s visitor destinations and Development annual plan to link The Authority hosted 14 student educations teams were awarded a directly to employee feedback. Certificate III in Tourism (Visitor interns during the year to raise Information Services). Ongoing communication awareness of the diverse career opportunities within the Authority and One employee was selected for the Almost a year after the launch of support public education. Committee for Economic Development two new internal communication of Australia NSW 2009 Copland tools—New Horizons and Broadcast Interns from Australian and Program and two employees were Alert—employees were surveyed to international universities were placed selected to attend the NSW Executive determine their effectiveness. in teams across the Authority.
36 Sydney Harbour Foreshore Authority Annual Report 2009–10 Average number of training days per employee
3.1 4.21 3.86 1.86 2.3
2005–06 2006–07 2007–08 2008–09 2009–10
Excess leave reduced Employees have access to The Employee of the Year award went In November 2008, the Crown discounted gym membership and to IT administrator Craig Larkin and the Employees (Public Service Conditions fitness classes, lunchtime competitive Team of the Year award was won by of Employment) Reviewed Award 2006 sport, flu vaccinations and health the Authority’s Facilities team. assessments and can use the was amended with a requirement for Employee fundraising all employees to reduce their Authority’s fleet bicycles. recreation leave to less than eight During 2009–10, 48 employees chose The Authority’s employees participated weeks by January 2010. to receive the free flu vaccination while in a number of social activities to raise up to 30 employees participated in money for various charities, including The Authority’s Human Resources Australia’s Biggest Morning Tea for the team worked with employees and weekly Authority-sponsored activities such as yoga and group fitness. Cancer Council, Walk to Work day and managers to develop leave plans and the Pink Ribbon Breakfast to raise restrict access to flex leave where Employees also participated in the 2010 NSW Corporate Games in money for various health issues such necessary to ensure that this target as mental health and breast cancer. was met. Employees are now March with representatives in running and golf. encouraged to monitor their leave Guiding Principles Awards balance and Human Resources In May 2010 a new tailored Life Skills The Guiding Principles Awards were automatically notifies employees and Program was introduced featuring continued this year to promote a their manager when balances on-site seminars on stress culture of excellence in service approach 40 days. management, nutrition webinars delivery, leadership and innovation. and massages. Workplace Star Awards 2009 The Authority’s sixth annual Star Human Awards were held in 2009 to recognise initiatives and celebrate the outstanding resources contribution of employees. More than Enjoying a healthy lifestyle 150 employees attended the awards Employee numbers The Authority’s Healthy Lifestyle night with staff recognised in As at June 2010, the Authority had Program aims to improve employee categories such as customer service, a total of 189 permanent and 30 retention and performance by reducing leadership, sustainability, innovation temporary employees. stress and the risk of lifestyle diseases. and precinct promotion.
Number of Senior Executive Service (SES) positions
2005–06 2006–07 2007–08 2008–09 2009–10
Number of SES Positions 5 5 5 4 3
Number filled by females 3 3 3 3 3
Positions at SES Level 5 0 0 0 0 1
Positions at SES Level 4 4 4 4 3 1
Positions at SES Level 3 0 0 0 0 1
Positions at SES Level 7 1 1 1 1 0
Sydney Harbour Foreshore Authority Annual Report 2009–10 37 New position descriptions >> adding equity to the online compliance (see page 28). In addition the Authority In early 2010 the NSW Department of training for new employees advertised for and employed four Premier and Cabinet advised that >> continuing to review policies to ensure Aboriginal tour guides. aligning position descriptions with the that equity issues are included. In 2010–11 the Authority will continue Public Sector Capability Framework Equity principles also continue to be to incorporate cultural awareness into was optional rather than required. promoted through the Authority’s all new position descriptions. Equity As at June 2010, the Authority had Code of Conduct, induction sessions principles will also be maintained developed new position descriptions for new employees and ethics training. during any organisational change due for around 25 per cent of the The Authority collects EEO data to the alignment with Land and organisation. New position regularly for the Department of Premier Property Management Authority. descriptions for the remaining roles, and Cabinet’s workforce profile, which particularly those that change measures performance in meeting Multicultural Policies and significantly or are newly recruited, NSW Government employment Services Program will continue to be developed. benchmarks for employees from The organisation’s workforce reflects EEO minority groups. The data also the social diversity of the general Equal opportunity informs planning and development workforce and significantly, this In 2009–10 the Authority continued to of EEO initiatives. Trends in the diversity is represented at all levels. promote equal employment representation of EEO groups among The Authority has five employees who opportunity (EEO) through a range of Authority employees are shown in are qualified translators and projects including: the table below. interpreters. These employees assist >> implementing the NSW Public During 2009–10 the Authority reached the Authority in improving customer Sector Capability Framework, which a number of EEO goals. In January service for international visitors. incorporates cultural awareness, into 2010 a permanent full-time Aboriginal Employees at the Sydney Visitor all new position descriptions role was created and temporarily filled Centres speak 16 languages other
Trends in the representation of EEO groups as at 30 June 2010
People People with Aboriginal from racial, People a disability Total Percentage and Torres ethnic, whose first People Employment Number Number requiring number of of total Strait ethno- language with a basis of men of women work- employees employees Islander religious was not disability related people minority English adjustment groups
Permanent 164 50% 88 76 1 45 16 1 0 full-time
Permanent 15 5% 3 12 0 5 1 0 0 part-time
Temporary 24 7% 16 8 1 8 3 0 0 full-time
Temporary 0 0% 0 0 0 0 0 0 0 part-time
Casual 98 30% 50 48 8 25 2 0 0
SES 3 1% 0 3 0 0 0 0 0
Board 5 2% 3 2 0 0 0 0 0 Members
LWOP 0 0% 0 0 0 0 0 0 0
Senior 20 6% 16 4 0 2 1 0 0 officers
Total 329 100% 176 153 10 85 23 1 0
Percentage - - 53% 47% 3% 25% 7% - -
38 Sydney Harbour Foreshore Authority Annual Report 2009–10 than English and are encouraged to >> offering part-time and work from home Code of Conduct use their language skills to improve opportunities to women returning from The Authority’s Code of Conduct for communication with international and maternity or parental leave. Employees embodies the public local customers whose first language Industrial relations sector values of integrity, diligence, is not English. economy, efficiency and accountability. The Joint Consultative Committee The code incorporates the principles Women in the workplace continued to be a productive of ethical or responsible decision- mechanism in discussing and The Authority is committed to the NSW making and respect for the law, disseminating information. There were Government Action Plan for Women government and community. It also no industrial disputes lodged by the and the Government’s efforts to offers guidance in situations where a NSW Public Service Association with promote workplaces that are equitable, person may be unsure of the the Industrial Relations Commission safe and responsive to all aspects of appropriate course of action. Matters of NSW. There was no working time women’s lives. dealt with in the code include conflicts lost due to industrial disputes during Key activities in 2009–10 included: of interest, internal information and the year. >> maintaining the female ratio information on clients, secondary on the executive and senior There were no exceptional movements employment, political participation, management team in wages, salaries or allowances, corrupt conduct and reporting except for increases awarded across breaches of the code. >> providing a maternity leave kit to assist the public sector by the Industrial women during pregnancy, maternity Ethics training for all employees Relations Commission of NSW. leave and when returning to work continued quarterly throughout 2009–10 with all new employees completing introductory online training and attending an in-house ethics training session within three months of commencing employment. Employee numbers by category
30 June 2008 30 June 2009 30 June 2010
Salary scale Total Non English Total Non English Total Non English number of Women speaking number of Women speaking number of Women speaking employees background employees background employees background
Salaries below clerical officer grade 0 0 0 0 0 0 0 0 0 1; 21 year old or equivalent
Salaries from clerical officer grade 1; 21 year old rate to below 3 3 0 0 0 0 0 0 0 minimum clerk grade 1 rate or equivalent
Grade 1–2 or 39 17 7 35 12 5 1 0 0 equivalent
Grade 3–5 or 40 24 8 28 20 7 39 15 12 equivalent
Grade 6–9 or 65 42 10 69 44 5 81 53 27 equivalent
Grade 10–12 or 54 18 11 50 17 5 47 16 10 equivalent
Above grade 12 or 47 15 4 45 12 3 58 19 11 equivalent
Total number of employees 248 119 40 227 105 25 226 103 60 in established* positions
* Figures do not include casual employees. Part-time employees are counted as one.
Sydney Harbour Foreshore Authority Annual Report 2009–10 39 The first stage of community consultation to determine the long-term future of Bays Precinct generated lively debate and gave everyone a voice. Managed by the Authority, the process included internet forums, the establishment of a community reference group and ideas from the next generation including Harrison Henson from class 1C at Annandale North Public School. See page 19.
40 Sydney Harbour Foreshore Authority Annual Report 2009–10 >
Corporate 5 governance
Lead the organisation towards excellence in risk management, compliance and sustainability. >>Appointment of Chief Executive and NSW Government State Authority strategic actions General Manager Plan priorities >> Continuously improve structures >> Drive innovation to and systems to meet changing >>Appointment of Ian Neale grow productivity government priorities and business needs to Audit and Risk >> Cut red tape Management Committee >> Demonstrate leadership in social and environmental sustainability >>Enhanced Policies Challenges Register and alignment >> Ensuring evolving governance of policies with the structures support operational Land and Property requirements Management Authority Future directions >> Continuing alignment with the Land and Property Management Authority (LPMA) >> Streamlining corporate support across LPMA and the Planning cluster >> Responding to obligations under the new Government Information (Provision of Access) Act
Sydney Harbour Foreshore Authority Annual Report 2009–10 41 Role of the Board The Chief Executive is responsible for Audit and Risk Sydney Harbour Foreshore Authority’s the management of the Authority in Management Committee Board is appointed in accordance accordance with specific policies and The Authority’s Audit and Risk with the Sydney Harbour Foreshore general direction of the Board. Management Committee was Authority Act. The Board oversees Warwick Watkins AM was appointed established to manage the the Authority’s policies, management as Chief Executive on 29 March 2010, organisation’s risk exposure. and performance, sets strategic following the resignation of Robert The committee’s objective was direction for the organisation and Domm. Board members’ details are to provide independent assurance monitors compliance with statutory shown on page 13. and assistance to the Board on requirements. The Board monitors the Authority’s risk and fraud organisational performance against Corporate Governance Committee management, control and strategic objectives. This is achieved A Corporate Governance Committee compliance framework, and its both through written reports from was established to assist the Board external accountability requirements. management and direct interaction to achieve strategic leadership, Committee members at 30 June with senior management at Board good governance and sustainability 2010 were: and committee meetings. in order to enhance the Authority’s >> Bonnie Boezeman AO, Chair The Board’s role in managing risk performance. >> Clive Craven is critical to the success of the The committee also established organisation. The Board approves mechanisms and policies for >> Ian Neale (independent member) all major decisions, with detailed achieving accountability of the Board Overseas travel financial feasibility studies required and management. for every major project proposal. There was no overseas travel during Committee members at 30 June the year. The Code of Conduct for Board 2010 were: Members prescribes procedures for >> Clive Craven, Chair Fraud prevention disclosing and dealing with conflicts The Authority has developed online of interest. Each Board member is >> Gabrielle Trainor fraud awareness training as part of its kept up-to-date with organisational >> Egle Garrick, General Manager. fraud prevention program. The Authority developments, structure and the assesses its fraud awareness Authority’s policies.
Board and committee meeting attendance during 2009–10
Corporate Governance Audit and Risk Board meetings Board members Committee meetings Committee meetings Possible Attended Possible Attended Possible Attended
Robert Domm 8 8 2 2 n/a n/a
Egle Garrick 4 4 1 1 n/a n/a
Warwick Watkins 3 2 n/a n/a n/a n/a
Bonnie Boezeman 12 12 n/a n/a 4 4
Gabrielle Trainor 12 10 3 3 n/a n/a
Michael Collins 12 10 n/a n/a n/a n/a
Tom Gellibrand* 12 11 n/a n/a n/a n/a
Clive Craven 12 11 3 3 4 4
Michael Gallagher 12 9 n/a n/a n/a n/a
Jim Mitchell** n/a n/a n/a n/a 2 2
Ian Neale n/a n/a n/a n/a 2 2
* Attended on behalf of Sam Haddad. ** Jim Mitchell and Ian Neale were independent members of the Audit and Risk Management Committee. They were not Board members.
42 Sydney Harbour Foreshore Authority Annual Report 2009–10 performance through a compulsory The Authority’s risk management Unlike private sector insurance online survey against criteria documentation and analysis policies, the TMF has limited established by the NSW Auditor recognises the breadth and interplay exclusions. In particular, all properties General. In 2009–10 the Authority of the risk management framework, owned or managed by the Authority again showed an improvement in compliance and assurance activities, are covered for their replacement performance on previous years and is governance structures and value. The Authority’s insurance continuing its work in targeting accountabilities. premium has reduced again this year employee awareness of fraud and The Authority faces risk relating to due to a favourable claims ratio ethical behaviour. failing to achieve key project performance and the transfer of insurance liabilities for a selected Privacy Management Plan objectives, budgets and deadlines; failing to meet government standards, number of new leases. The Authority has developed a Privacy laws and regulations; failing to achieve The Authority carries no officers’ Management Plan in response to the income or expenditure targets; professional liability insurance, but all Privacy and Personal Information unsatisfactory delivery of services to public service officers are covered by Protection Act 1998. The Act aims to internal and external customers; and a State indemnity against claims that protect the privacy of individuals from damage to the organisation’s do not involve negligence. inappropriate collection, storage, use reputation and brand. and disclosure of personal information Freedom of information by NSW public sector agencies. The The Board Audit and Risk Management Committee convened four times in The Freedom of Information Act 1989 Privacy Management Plan is available enables a member of the public to on the Authority’s website. 2009–10 to address risk management. The Authority’s executive and access documents held by the The plan is based on 12 information leadership team meet monthly to Authority. During the year the Authority principles that establish standards review risk management. processed 33 freedom of information for using personal information in an requests. Details of these requests are open and accountable manner. The The work of individual employees shown in the Appendix on page 118. information protection principles apply is monitored through monthly to all employees, consultants and feedback sessions with managers. Credit card certification contractors engaged by the Authority. Individual and team risk management The Authority has a Corporate Credit programs deal with information Card Policy, which complies with NSW There were no privacy complaints security, occupational health and received during 2009–10. Treasury’s Treasurer’s Directions. safety, business continuity planning, Cardholders are required to observe accounting, leave management Risk management and insurance the policy and complete a reconciliation and payroll. Sydney Harbour Foreshore form each month which is authorised Authority’s ongoing risk management The Authority also maintains a by the Authority’s Chief Financial program has been effective in program of internal audits to assess Officer or General Manager. managing the risk exposure of the the effectiveness of controls and The Authority currently has four credit Authority while contributing to systems to mitigate risk. During the cards on issue with a combined limit organisational objectives. year, the Authority achieved an of $11,000. average assessment score of 3.7 out Each year the Authority identifies of 5 for its internal audits, which were Legislative changes business risks which are documented conducted by the Internal Audit and departures in its business plan. The Authority’s Bureau (IAB). organisational-wide risk report links There were no changes to Sydney risks to the four key business outcomes: The Authority carries a comprehensive Harbour Foreshore Authority’s business effectiveness, stakeholder range of insurance cover through the legislation during 2009–10. and customer satisfaction, organisational Treasury Managed Fund (TMF). health and financial performance. This insurance covers property, public liability, directors’ insurance and other contingencies.
Sydney Harbour Foreshore Authority Annual Report 2009–10 43 Progress in procurement The Authority continued to use its During 2009–10, the Authority established contractor panels to assist continued to strengthen its internal with projects across varied disciplines procurement and tender processes including legal services, heritage following the centralisation of all building conservation and procurement activities with a value of refurbishment and arborist advisory $30,000 or more in July 2009. The services. The Authority also made Authority also continued to educate extensive use of State Contracts employees through procurement Control Board (SCCB) whole-of- workshops covering legislation, government contracts. The awarded probity and processes. contracts and SCCB contracts have ensured that the Authority achieves the Twelve significant tender processes best value for money on competitive were undertaken in 2009–10, resulting commercial terms. in successful contracts including refurbishment and upgrade works Specialised consultants at Sydney Convention and Exhibition The Authority engages consultants for Centre, maintenance services specialised work only where there is and conservation works on the no in-house expertise. > Argyle Bridge. The Authority has used consultants in The Authority also refreshed its legal specialist areas such as engineering, services panel for 2010–12, with a management services, planning, specialist property panel and a design and sustainablility. general services panel. There were no consultants used during the year whose fees were $50,000 or more. Ten consultants whose fees were up to $50,000 were engaged with fees totalling $158,500.
Argyle Bridge
44 Sydney Harbour Foreshore Authority Annual Report 2009–10 Internal Audit and Risk Management Statement for the 2009–10 Financial Year for Sydney Harbour Foreshore Authority The interim board are of the opinion that the Sydney > Harbour Foreshore Authority has internal audit and risk management processes in place that are, in all material respects, compliant with the core requirements set out in Treasury Circular NSW TC 09/08 Internal Audit and Risk Management Policy. The interim board are of the opinion that the Audit and Risk Management Committee is constituted and operates in accordance with the independence and governance requirements of Treasury Circular NSW TC 09/08. At 30 June 2010 the Chair and Members of the Audit and Risk Management Committee were: >> independent Chair – Bonita Boezeman AO >> independent Member – Clive Craven >> independent Member – Ian Neale The interim board declare that this Internal Audit and Risk Management Statement is made on behalf of the following controlled entities: >> Office of the Sydney Harbour Foreshore Authority >> Sydney Harbour Foreshore Authority Casual Staff Division These processes provide a level of assurance that enables the senior management of Sydney Harbour Foreshore Authority to understand, manage and satisfactorily control risk exposures.
Warwick Watkins AM Chief Executive Officer Sydney Harbour Foreshore Authority
Sydney Harbour Foreshore Authority Annual Report 2009–10 45 In May 2010, the Authority was appointed by the NSW Government to prepare a master plan to redevelop and expand the State’s convention, exhibition and entertainment facilities at Darling Harbour. The master plan aims to bolster Sydney’s position in the Asia-Pacific region by attracting and retaining significant events such as the 2010 Lions Club International Convention. The convention, which was led by Host Committee Chairman Barry Palmer, brought $16 million to the NSW economy. See page 30.
46 Sydney Harbour Foreshore Authority Annual Report 2009–10 >
Financial 6 performance
Maximise value from asset divestment, maximise return from assets and operations and reduce >>Achieved a healthy employee excess annual leave. surplus result to exceed budget NSW Government State Authority strategic objectives expectations Plan priorities >> Implement the asset divestment >> Increase business investment and strategy in line with the NSW >>Completed the final support jobs Government’s timelines year of a five-year >> Maximise the Authority’s net capital investment plan revenue streams for The Rocks and >> Reduce all recreational leave Darling Harbour balances to below 40 days >>Reduced recreational Challenges leave balances to >> The property and finance markets remained fragile affecting business below 40 days in investment and consumer spend accordance with NSW Government policy Future directions 2010–11 >> Deliver the Darling Harbour south master plan to redevelop and expand the State’s convention and exhibition facilities >> Maximise the Authority’s net revenue streams
Sydney Harbour Foreshore Authority Annual Report 2009–10 47 Sydney Harbour Foreshore Authority
Statement by Members of the Board of Sydney Harbour Foreshore Authority on the adoption of the financial statements for the year ended 30 June 2010 Pursuant to Section 41C (1B) of the Public Finance and Audit Act 1983 we declare that in our opinion: 1. The accompanying financial statements exhibit a true and fair view of the financial position and financial performance of Sydney Harbour Foreshore Authority as at 30 June 2010; and 2. The financial statements have been prepared in accordance with the Australian Accounting Standards and Interpretations and the provisions of the Public Finance and Audit Act 1983, the Public Finance and Audit Regulation 2010 and the Treasurer’s Directions. Further, we are not aware of any circumstances that would render any particulars included in the financial statements to be misleading or inaccurate.
Warwick Watkins AM Sam Haddad Chief Executive Officer Director General Sydney Harbour Foreshore Authority Department of Planning
14 October 2010 Sydney
48 Sydney Harbour Foreshore Authority Annual Report 2009–10 Sydney Harbour Foreshore Authority
Sydney Harbour Foreshore Authority Annual Report 2009–10 49 Sydney Harbour Foreshore Authority
50 Sydney Harbour Foreshore Authority Annual Report 2009–10 Sydney Harbour Foreshore Authority
START OF AUDITED FINANCIAL STATEMENTS STATEMENT OF COMPREHENSIVE INCOME For the year ended 30 June 2010
Consolidated Authority Notes 2010 2009 2010 2009 $’000 $’000 $’000 $’000
Income Revenue from continuing operations 3 140,713 144,857 140,713 144,857 Other revenue 4 47,641 67,582 47,641 67,582 Total income 188,354 212,439 188,354 212,439
Expenses Property related expenses 5 (73,065) (68,983) (73,065) (68,983) Employee related expenses 5 (25,146) (29,220) - - Personnel services expenses 5 (2,846) - (27,992) (33,791) Depreciation and amortisation expense 5 (16,940) (18,380) (16,940) (18,380) Finance costs 5 (916) (916) (916) (916) Other expenses 5 (39,239) (57,707) (39,239) (57,707) Total expenses (158,152) (175,206) (158,152) (179,777)
Surplus before income tax equivalent 30,202 37,233 30,202 32,662 Income tax equivalent 6 - - - - Surplus for the year after income tax equivalent 30,202 37,233 30,202 32,662
Other comprehensive income Gain/(loss) on revalution of land and buildings - (55,109) - (55,109) Actuarial gain/(loss) on defined benefit plans - (4,571) - - Income tax on items of other comprehensive income - - - - Other comprehensive income for the year - (59,680) - (55,109)
Total comprehensive income for the year 30,202 (22,447) 30,202 (22,447)
The above Statement of Comprehensive Income is to be read in conjunction with the accompanying notes.
Sydney Harbour Foreshore Authority Annual Report 2009–10 51 Sydney Harbour Foreshore Authority STATEMENT OF FINANCIAL POSITION AS AT 30 June 2010
Consolidated Authority Notes 2010 2009 2010 2009 $’000 $’000 $’000 $’000
Assets Current assets Cash and cash equivalents 7 96,315 55,595 96,315 55,595 Trade and other receivables 8 7,913 7,679 7,913 7,679 Inventories 9 996 934 996 934 105,224 64,208 105,224 64,208 Assets classified as held for sale 10 9,420 - 9,420 - Total current assets 114,644 64,208 114,644 64,208
Non-current assets Trade and other receivables 8 38 38 38 38 Investment property 11 597,755 597,755 597,755 597,755 Property, plant and equipment 12 599,024 617,092 599,024 617,092 Intangible assets 13 320 430 320 430 Total non-current assets 1,197,137 1,215,315 1,197,137 1,215,315 Total assets 1,311,781 1,279,523 1,311,781 1,279,523
Liabilities Current liabilities Trade and other payables 14 37,764 29,778 37,764 29,778 Lease receipts in advance 15 5,224 5,164 5,224 5,164 Provisions 17 15,006 15,079 15,006 15,079 Other liabilities 19 2,921 3,190 2,921 3,190 Total current liabilities 60,915 53,211 60,915 53,211
Non-current liabilities Lease receipts in advance 15 431,080 424,389 431,080 424,389 Borrowings 16 10,000 10,000 10,000 10,000 Provisions 17 7,101 6,614 7,101 6,614 Other liabilities 19 254 911 254 911 Total non-current liabilities 448,435 441,914 448,435 441,914 Total liabilities 509,350 495,125 509,350 495,125 Net assets 802,431 784,398 802,431 784,398
Equity Accumulated funds 760,317 742,154 760,317 742,154 Asset revaluation reserve 42,114 42,244 42,114 42,244 Total equity 802,431 784,398 802,431 784,398
The above Statement of Financial Position is to be read in conjunction with the accompanying notes.
52 Sydney Harbour Foreshore Authority Annual Report 2009–10 Sydney Harbour Foreshore Authority STATEMENT OF CHANGES IN EQUITY For the year ended 30 June 2010
Consolidated Authority Accumulated Asset Total Accumulated Asset Total funds revaluation funds revaluation reserve reserve $’000 $’000 $’000 $’000 $’000 $’000
Balance as at 1 July 2009 742,154 42,244 784,398 742,154 42,244 784,398 - Surplus for the year 30,202 - 30,202 30,202 - 30,202 Transfer of asset revaluation reserve on disposal 130 (130) - 130 (130) - Other comprehensive income ------Total comprehensive income for the year 30,332 (130) 30,202 30,332 (130) 30,202
Transactions with owners in their capacity as owners Contribution to New South Wales Government (12,169) - (12,169) (12,169) - (12,169) Balance as at 30 June 2010 760,317 42,114 802,431 760,317 42,114 802,431
Balance as at 1 July 2008 709,517 235,991 945,508 709,517 235,991 945,508 - Surplus for the year 37,233 - 37,233 32,662 - 32,662 Transfer of asset revaluation reserve on disposal 138,638 (138,638) - 138,638 (138,638) - Other comprehensive income (4,571) (55,109) (59,680) - (55,109) (55,109) Total comprehensive income for the year 171,300 (193,747) (22,447) 171,300 (193,747) (22,447)
Transactions with owners in their capacity as owners Decrease in net assets from equity transfers (138,663) - (138,663) (138,663) - (138,663) Balance as at 30 June 2009 742,154 42,244 784,398 742,154 42,244 784,398
The above Statement of Changes in Equity is to be read in conjunction with the accompanying notes.
Sydney Harbour Foreshore Authority Annual Report 2009–10 53 Sydney Harbour Foreshore Authority STATEMENT OF CASH FLOWS For the year ended 30 June 2010
Consolidated Authority Notes 2010 2009 2010 2009 $’000 $’000 $’000 $’000
Cash flows from operating activities Receipts from customers (inclusive of GST) 194,199 166,435 194,199 166,435 Payments to suppliers and employees (inclusive of GST) (144,545) (154,098) (144,545) (154,098) Grants paid (125) (125) (125) (125) Interest and other finance costs paid 1,729 2,655 1,729 2,655 Income tax equivalent paid - (261) - (261) Net cash inflows/(outflows) from operating activities 24(b) 51,258 14,606 51,258 14,606
Cash flows from investing activities Payments for property, plant and equipment (9,360) (22,613) (9,360) (22,613) Payments for investment property - (10,837) - (10,837) Payments for intangible assets (52) (118) (52) (118) Net cash inflows/(outflows) from investing activities (9,412) (33,568) (9,412) (33,568)
Cash flows from financing activities Repayment of borrowings - (5,793) - (5,793) Payment of finance lease liabilities (1,094) (624) (1,094) (624) Security deposits and bonds 97 49 97 49 Forward deposits and retentions 9,040 (1,470) 9,040 (1,470) Contributions to New South Wales Government paid (9,169) (3,000) (9,169) (3,000) Net cash inflows/(outflows) from financing activities (1,126) (10,838) (1,126) (10,838)
Net increase/(decrease) in cash 40,720 (29,800) 40,720 (29,800) Opening cash and cash equivalents 55,595 85,395 55,595 85,395 Closing cash and cash equivalents 24(a) 96,315 55,595 96,315 55,595
The above Statement of Cash Flows is to be read in conjunction with the accompanying notes.
54 Sydney Harbour Foreshore Authority Annual Report 2009–10 Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
Note 1 – Reporting entity Sydney Harbour Foreshore Authority (the Authority), as a reporting entity, comprises the following entities it controlled during the year and at balance date: • Cooks Cove Development Corporation (CCDC); • Office of the Sydney Harbour Foreshore Authority (the Office) (Controlled until 4 June 2010); and • Sydney Harbour Foreshore Authority Casual Staff Division (Casual Staff Division). This consolidated financial statements for the year ended 30 June 2010 were authorised for issue by the Authority’s interim Board on 14 October 2010.
Note 2 – Summary of significant accounting policies a) Basis of preparation The Authority’s general purpose financial statements have been prepared in accordance with: • Australian Accounting Standards and Australian Accounting Interpretations; and • the requirement of the Public Finance and Audit Act 1983. Set out below is a summary of the significant accounting policies adopted by the Authority.
Historical cost convention These financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain classes of property, plant and equipment and investment property.
Critical accounting judgements and key sources of estimation uncertainty In the application of the Authority’s accounting policies, 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 historical experience and other factors that are considered to be relevant. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are recognised, or 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. The Authority has assessed its profit status for the financial year ended 30 June 2010 and determined its status as not-for-profit for financial reporting purposes. The financial statements are presented in Australian dollars rounded to the nearest thousand. Significant critical accounting judgements and estimates for the year are: • The New South Wales Government’s Mini-Budget 2008 included a proposal to divest commercial leases to the private sector by way of a 99 year lease. The divestment strategy included a tender process which resulted in a recommendation to divest one commercial lease and the freehold sale of a car park. These transactions are expected to be completed by December 2010. The members of the interim Board believe that the recommended divestment will not impact the Authority’s financial position. • As a result of the Public Sector Employment and Management (SHFA) Order 2010 published on 4 June 2010, all permanent employees were transferred from the Office of the Sydney Harbour Foreshore Authority to Land and Property Management Authority (LPMA). From 5 June 2010 personnel services were provided by LPMA to the Authority. All employee related benefits were transferred from the Office of Sydney Harbour Foreshore Authority to LPMA. b) Principles of consolidation Controlled entities are all those entities over which the Authority has the power to govern the financial and operating policies so as to obtain benefits from its activities. Intercompany transactions, balances and unrealised gains on transactions between entities are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the parent entity. c) Revenue recognition The Authority recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity, and specific criteria have been met for each of the Authority’s activities as described below. The amount of revenue is not considered to be reliably measurable until all contingencies relating to the sale have been resolved. The Authority bases its estimates on historical results, taking into consideration the type of customer, the type of transaction, and the specifics of each arrangement.
Sydney Harbour Foreshore Authority Annual Report 2009–10 55 Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances, rebates and amounts collected on behalf of third parties. Revenue is recognised for the major business activities as follows: (i) Sale of goods and services Revenue is recognised when the Authority transfers the significant risks and rewards of ownership of the assets and obtains control of the assets that result from sales. (ii) Grants and contributions Contributions and grants are recognised as revenue when the Authority obtains control over the asset comprising the contributions. (iii) Lease revenue Lease revenue from operating leases is recognised on straight-line basis over the lease term. The lease payments received in advance are recorded as a liability and recognised as revenue over the lease term. (iv) Interest revenue Interest revenue is recognised on an accrual basis using the effective interest method.
d) Employee benefits (i) Wages and salaries, annual leave and sick leave Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to be settled within twelve months of the reporting date are recognised in respect of employees’ service up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled. (ii) Long service leave The 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 discount 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. Provisions made in respect of employee benefits which are not expected to be settled within 12 months are measured at the present value of the estimated future cash outflows to be made by the consolidated entity in respect of services provided by employees up to reporting date. The government bond rate of 5.10% was applied for discounting purposes. The outstanding amounts of payroll tax, workers’ compensation, insurance premiums and fringe benefits tax, which are consequential to employment, are recognised as liabilities and expenses when the employee benefits to which they relate have been recognised. (iii) Retirement benefit obligations All employees of the Authority are entitled to benefits from the Authority’s superannuation plan on retirement, disability or death. The Authority has a defined benefit plan and a defined contribution plan. The defined contribution plan receives fixed contributions from the Authority and the Authority’s legal or constructive obligation is limited to these contributions. Contributions to the defined contribution fund are recognised as an expense as they become payable. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available. A liability or asset of defined benefits superannuation plans is recognised in the balance sheet, and is measured as the present value of the defined benefit obligation at the reporting date less the fair value of the superannuation fund’s assets at that date and any unrecognised past service cost. The present value of the defined benefit obligations is based on expected future payments which arise from membership of the fund to the reporting date, calculated annually by independent actuaries 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. Past service costs are recognised immediately in income, unless the changes to the superannuation fund are conditional on the employees remaining in service for a specified period of time (the vesting period). In this case, the past service costs are amortised on a straight-line basis over the vesting period. Contributions to the defined contribution fund are recognised as an expense as they become payable. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.
56 Sydney Harbour Foreshore Authority Annual Report 2009–10 Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
e) Personnel services expense The employment division of the Authority was abolished by the Public Sector Employment and Management (Land and Property Management Authority) Order 2010. The employees and the related obligations have been transferred to Land and Property Management Authority on 4 June 2010. Under an arrangement from 5 June 2010, the Authority receives personnel services from Land and Property Management Authority and recognises it as expenses and payables in the financial statements. f) Provisions Provisions are recognised when the Authority has a present obligation as a result of a past event, it is probable that the Authority will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the reporting date. The discount rate used to determine the present value reflects current assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense. g) Finance costs Finance costs incurred for the construction of any qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Other finance costs are expensed. h) Insurance The Authority holds insurance policies covering property, public liability, workers compensation, directors’ liability and other contingencies. These insurance covers are conducted through the NSW Treasury Managed Fund Scheme of self insurance for Government agencies. The premium is determined by the Fund Manager based on past claim experience and the insurance coverage is reviewed periodically to ensure that it is adequate. i) Goods and services tax (GST) Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the Australian Taxation Authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the Australian Taxation Authority is included with other receivables or payables in the balance sheet. Cash flows are included in the cash flow statement on a gross basis. However, the GST components of cash flows arising from investing and financing activities which is recoverable from, or payable to, the Australian Taxation Office are classified as operating cash flows. j) Acquisitions of assets The cost method of accounting is used for the initial recording of all acquisitions of assets controlled by the Authority. Cost is the amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire the asset at the time of its acquisition or construction or, where applicable, the amount attributed to that asset when initially recognised in accordance with the specific requirements of other Australian Accounting Standards. Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and revenues at their fair value at the date of acquisition. Fair value means the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction. Where settlement of any part of cash consideration is deferred, its cost is the cash price equivalent, that is, the deferred payment amount is effectively discounted at an asset-specific rate. k) Capitalisation thresholds The Authority’s policy is to capitalise all costs incurred in property development. Property, plant and equipment and intangible assets costing $5,000 and above individually (or forming part of a network costing more than $5,000) are capitalised.
Sydney Harbour Foreshore Authority Annual Report 2009–10 57 Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
l) Revaluation of physical non-current assets Physical non-current assets are valued in accordance with the “Valuation of Physical Non-Current Assets at Fair Value” Policy and Guidelines Paper (TPP 07-1). This policy adopts fair value in accordance with AASB 116 Property, Plant and Equipment and AASB 140 Investment Property. The fair value of land under a prepaid long-term lease is negligible and as such it is recorded at $1 in the asset register. However, land under a prepaid long-term lease, irrespective of whether an upfront lease income was received, that continues to receive a rental stream is measured at fair value as investment property. Property, plant and equipment is measured on an existing use basis, where there are no feasible alternative uses in the existing natural, legal, financial and socio-political environment. However, in the limited circumstances where there are feasible alternative uses, assets are valued at their highest and best use. Fair value of property, plant and equipment is determined based on the best available market evidence, including current market selling prices for the same or similar assets. Where there is no available market evidence, the asset’s fair value is measured at its market buying price, the best indicator of which is depreciated replacement cost. Land and buildings, including open spaces and roads, are revalued at least every three years or with sufficient regularity to ensure that the carrying amount of each asset does not differ materially from its fair value at reporting date. The last revaluation was completed on 30 June 2009 and was based on an independent assessment. Non-specialised assets with short useful lives are measured at depreciated historical cost, as a surrogate for fair value. When revaluing non-current assets by reference to current prices for assets newer than those being revalued (adjusted to reflect the present condition of the assets), the gross amount and the related accumulated depreciation are separately restated. For other assets, any balances of accumulated depreciation at the revaluation date in respect of those assets are credited to the asset accounts to which they relate. The net asset accounts are then increased or decreased by the revaluation increments or decrements. 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 in the surplus/deficit, the increment is recognised immediately as revenue in the surplus/deficit. Revaluation decrements are recognised immediately as expenses in the surplus/deficit, except that, to the extent that a credit balance exists in the asset revaluation reserve in respect of the same class of assets, they are debited directly to the asset revaluation reserve. As a not-for-profit entity, revaluation increments and decrements are offset against one another within a class of non-current assets, but not otherwise. Where an asset that has previously been revalued is disposed of, any balance remaining in the asset revaluation reserve in respect of that asset is transferred to accumulated funds.
m) Property, plant and equipment Land and buildings are measured at fair value less depreciation recognised after the date of revaluation. Plant and equipment is stated at historical cost less accumulated depreciation.
n) Depreciation of property, plant and equipment Depreciation is provided for on a straight-line basis for all depreciable assets so as to write off the depreciable amount of each asset as it is consumed over its useful life by the Authority. Estimates of remaining useful lives are made on a regular basis for all assets, with annual reassessments for major items. Land is not a depreciable asset. Depreciation of art and artefacts is not recognised because the useful life and the net amount to be recovered at the end of the useful life cannot be reliably measured. The decision not to recognise depreciation for these assets is reviewed annually. The following depreciation rates were applied in 2009–10 and 2008–09: Buildings and improvements 2.5–20% Plant and equipment 2.5–20% Motor vehicles 10–20% Furniture & fittings 10–20% IT equipment 33%
58 Sydney Harbour Foreshore Authority Annual Report 2009–10 Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
o) Major inspection costs When each major inspection is performed, the labour cost of performing inspections for faults is recognised in the carrying amount of an asset as a replacement of a part, if the recognition criteria are satisfied. p) Restoration costs The estimated cost of dismantling and removing an asset and restoring the site is included in the cost of an asset, to the extent it is recognised as a liability. q) Maintenance Day-to-day servicing costs or maintenance are charged as expenses as incurred, except where they relate to the replacement of a part or component of an asset, in which case the costs are capitalised and depreciated. r) Leases (i) Leases Leases of property, plant and equipment, where the Authority as lessee, has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the lease’s inception at the fair value of the leased property or, if lower, the present value of the minimum lease payments. The corresponding rental obligations, net of finance charges, are included in other short-term and long-term payables. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the income statement over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The property, plant and equipment acquired under finance leases are depreciated over the shorter of the asset’s useful life and the lease term if there is no reasonable certainty that the Authority will obtain ownership at the end of the lease term. Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Authority as lessee are classified as operating leases. Payments made under operating leases are charged to the income statement on a straight-line basis over the period of the lease. (ii) Lease incentives Lease incentives include upfront cash payments to the lessee or the reimbursement or assumption by the Authority, as the lessor, of costs of the lessee (such as relocation costs, leasehold improvements, fit-out contributions and costs associated with a pre-existing lease commitment). Alternatively, the initial period of the lease term may be agreed to be rent-free or at a reduced rent, and shall be recognised, in accordance with the Australian Accounting Interpretations. (iii) Operating lease incentives Operating lease incentives represent a reduction of rental income over the lease term on a straight-line basis. s) Investment properties Investment property, principally comprising freehold office buildings, is held for long-term rental yields and is not occupied by the Authority. Investment property is carried at fair value, which is based on active market prices, adjusted, if necessary, for any difference in the nature, location or condition of the specific asset. If this information is not available, the authority uses alternative valuation methods such as recent prices in less active market or discounted cash flow projections. These valuations are reviewed annually by a member of the Australia Property Institute. Changes in fair values are recorded in the income statement as part of other revenue or other expenses. t) Intangible assets IT development and software Costs incurred in developing products or systems, and costs incurred in acquiring software and licenses that will contribute to future period financial benefits through revenue generation and/or cost reduction, are capitalised to software and systems. Costs capitalised include external direct costs of materials and service, direct payroll and payroll related costs of employees’ time spent on the project. Amortisation is calculated on a straight-line basis over period of three years. The useful lives of intangible assets are assessed to be infinite. Intangible assets are measured initially at cost and subsequently at fair value only if there is an active market. As there is not an active market for the Authority’s intangible assets, the assets are carried at cost, less any accumulated amortisation. IT development costs include only those costs directly attributable to the development phase and are only recognised following completion of technical feasibility and where the group has an intention and ability to use the asset.
Sydney Harbour Foreshore Authority Annual Report 2009–10 59 Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
u) Trade receivables Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less allowance for impairment. Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off by reducing the carrying amount directly. An allowance account is used when there is objective evidence that the Authority will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments are considered indicators that the trade receivable is impaired. The amount of the impairment allowance 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 impairment loss is recognised in the income statement within other expenses. When a trade receivable for which an impairment allowance had been recognised becomes uncollectible in a subsequent period, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against other expenses in the income statement.
v) Inventories Trading stock Trading stock are stated at the lower of cost and net realisable value. Cost of stock are determined after deducting rebates and discounts. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make sales.
w) Trade and other payables These amounts represent liabilities for goods and services provided to the Authority and other amounts. Payables are recognised initially at fair value, usually based on the transaction cost or face value. Subsequent measurement is at amortised cost using the effective interest method. Short-term payables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial.
x) Borrowings Borrowings are initially recognised at fair value, net of transactions costs. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the income statement, over the period of the borrowings, using the effective interest method. Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in other income or other expenses. Borrowings are classified as current liabilities unless the authority has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.
y) Contributions to New South Wales Government and tax equivalents (i) Income tax equivalent The Authority is subject to paying tax equivalents which are calculated based on the accounting profit model, where the prevailing company tax rate is applied to the accounting profit. The Authority has obtained approval from the Office of State Revenue to exclude the following additional items from its accounting profit for the purpose of calculating its tax liability: - amortised leased income for long-term leases entered into before 1 January 2007 - unrealised movements in the fair value of the Authority’s investment properties. In accordance with the NSW Treasury requirements under the Tax Equivalent Regime, the Authority does not practice tax effective accounting. (ii) Contributions to New South Wales Government Contributions to New South Wales Government are set by negotiation between stakeholders, the board and management of the Authority with the ultimate determination reserved for stakeholders. Consideration is given to the Authority’s working capital, investment capital requirements, provision of social and non-commercial activities and an appropriate contingency for financial flexibility.
60 Sydney Harbour Foreshore Authority Annual Report 2009–10 Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
z) Comparative information Except when an Australian Accounting Standard permits or requires otherwise, comparative information is disclosed in respect of the previous period for all amounts reported in the financial statements. aa) Change in accounting policy When the presentation or classification of items in the financial statements are amended, comparative amounts are reclassified unless the reclassification is impracticable. When comparative amounts are reclassified, the Authority discloses: (a) the nature of the reclassification; (b) the amount of each item or class of items that is reclassified; and (c) the reason for the reclassification. bb) New Australian Accounting Standards and Interpretations Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2010 reporting period. The Authority did not early adopt any of these Accounting Standards and Interpretations that are not yet effective: • AASB 5 Non-current Assets Held for Sale and Discontinued Operations (1 January 2011); • AASB 7 Financial Instruments: Disclosures (1 July 2010); • AASB 9 Financial Instruments (1 January 2013); • AASB 101 Presentation of Financial Statements (1 January 2010); • AASB 107 Statement of Cash Flows (1 January 2010); • AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors (1 January 2011); • AASB 110 Events after the Reporting Period (1 January 2011); • AASB 112 Income Taxes (1 January 2011); • AASB 117 Leases (1 January 2010); • AASB 118 Revenue (1 January 2010); • AASB 119 Employee Benefits (1 January 2011); • AASB 132 Financial Instruments: Presentation (1 February 2010); • AASB 136 Impairment of Assets (1 January 2010); • AASB 137 Provisions, Contingent Liabilities and Contingent Assets (1 January 2011); • AASB 139 Financial Instruments: Recognition and Measurement (1 January 2011); • AASB 1031 Materiality (1 January 2011); • AASB 1053 Application of Tiers of Australian Accounting Standards (1 July 2013); • AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9 (1 January 2013); • AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements (1 July 2013); • AASB 2010-3 Amendments to Australian Accounting Standards arising from the Annual Improvements Project (1 July 2010); • AASB 2010-4 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project (1 January 2011); • AASB 2009-12 Amendments to Australian Accounting Standards (1 January 2011); • AASB 2009-13 Amendments to Australian Accounting Standards arising from Interpretation 19 (1 July 2010); and • AASB 2010-1 Amendments to Australian Accounting Standards-Limited Exemption from Comparative AASB 7 Disclosures for First-time Adopters (1 July 2010).
The impact of these new Standards and Interpretations in future periods on the financial statements are still being assessed, and not known at the date of the financial statements.
Sydney Harbour Foreshore Authority Annual Report 2009–10 61 Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
Consolidated Authority 2010 2009 2010 2009 $’000 $’000 $’000 $’000
Note 3 – Revenue from continuing operations Sydney Convention and Exhibition Centre revenue 62,102 64,113 62,102 64,113 Car parks revenue 14,818 18,033 14,818 18,033 Other major assets revenue 7,255 993 7,255 993 Operating lease revenue 45,278 46,389 45,278 46,389 Long term lease revenue 5,216 5,213 5,216 5,213 Development contributions 95 3,073 95 3,073 Visitor Centre sales 1,537 1,740 1,537 1,740 Marketing revenue 2,583 2,999 2,583 2,999 Other 1,829 2,304 1,829 2,304 140,713 144,857 140,713 144,857
Note 4 – Other revenue Fair value increment on investment properties (refer note 2(s)) - 64,011 - 64,011 Recognition of property, plant and equipment 6,109 - 6,109 - Proceeds from legal settlement 38,888 - 38,888 - Interest revenue (refer note 4(a)) 2,644 3,571 2,644 3,571 47,641 67,582 47,641 67,582
(a) Interest revenue is made up as below: Cash at bank 101 89 101 89 TCorp short term cash facility 2,362 2,002 2,362 2,002 TCorp term deposits 181 1,480 181 1,480 2,644 3,571 2,644 3,571
Note 5 – Expenses Property related expenses: Sydney Convention and Exhibition Centre expenses 44,785 49,176 44,785 49,176 Car parks expenses 5,132 4,752 5,132 4,752 Other major assets expenses 5,228 373 5,228 373 Non-recoverable expenses 12,625 10,714 12,625 10,714 Other expenses 5,295 3,968 5,295 3,968 73,065 68,983 73,065 68,983
62 Sydney Harbour Foreshore Authority Annual Report 2009–10 Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
Consolidated Authority 2010 2009 2010 2009 $’000 $’000 $’000 $’000
Employee related expenses: Directors’ fees 196 210 - - Salaries and wages 19,970 22,430 - - Defined contribution superannuation expense 1,741 1,884 - - Defined benefit superannuation expense/(revenue) - 33 - - Other employee related expenses 3,239 4,663 - - 25,146 29,220 - -
Personnel services expenses: Personnel services expenses – Office of Sydney Harbour Foreshore Authority Directors’ fees - - 196 210 Salaries and wages - - 18,231 20,792 Defined contribution superannuation expense - - 1,584 1,737 Defined benefit superannuation expense - - - 33 Other employee related expenses - - 3,128 4,555 Superannuation actuarial losses - - - 4,571 - - 23,139 31,898
Personnel services expenses – SHFA Casual Staff Division Salaries and wages - - 1,739 1,638 Defined contribution superannuation expense - - 157 147 Other employee related expenses - - 111 108 - - 2,007 1,893
Personnel services expenses – Land and Property Management Authority Directors’ fees 11 - 11 - Salaries and wages 1,438 - 1,438 - Defined contribution superannuation expense 62 - 62 - Defined benefit superannuation expense 162 - 162 - Other employee related expenses 382 - 382 - Superannuation actuarial losses 791 - 791 - 2,846 - 2,846 -
2,846 - 27,992 33,791
Sydney Harbour Foreshore Authority Annual Report 2009–10 63 Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
Consolidated Authority 2010 2009 2010 2009 $’000 $’000 $’000 $’000
Depreciation and amortisation expense: Depreciation of property, plant and equipment 15,725 16,995 15,725 16,995 Amortisation of leasehold assets 1,116 1,263 1,116 1,263 Amortisation of intangible assets 99 122 99 122 16,940 18,380 16,940 18,380
Finance costs: Interest on borrowing not at fair value through profit or loss 658 6,368 658 6,368 Government guarantee levy 146 81 146 81 Interest expense on leased assets 112 177 112 177 916 6,626 916 6,626 Amount capitalised - (5,710) - (5,710) Finance costs expensed 916 916 916 916
Other expenses: Administration 9,096 8,746 9,096 8,746 Barangaroo project costs - 21,882 - 21,882 Fair value decrement on investment properties (refer note 2(s)) 6,300 - 6,300 - Fair value decrement on property, plant and equipment (other) - 3,296 - 3,296 Loss on disposal of property, plant and equipment 289 481 289 481 Loss on asset written off 750 - 750 - Visitor Centre sales – cost of goods sold 858 893 858 893 Insurance 593 593 593 593 Consultants 156 117 156 117 Auditor’s remuneration – audit of financial statements 197 198 197 198 Allowance for impairment of receivables 131 144 131 144 Marketing and advertising 8,340 8,476 8,340 8,476 Repairs and maintenance 12,404 12,756 12,404 12,756 Grants expenses 125 125 125 125 39,239 57,707 39,239 57,707
Reconciliation of total maintenance expense: Maintenance expense – contracted labour and other (refer note 5) 12,404 12,756 12,404 12,756 Employee related maintenance expenses 2,195 2,015 - - Personnel services relating to maintenance - - 2,195 2,015 Total maintenance expense 14,599 14,771 14,599 14,771
64 Sydney Harbour Foreshore Authority Annual Report 2009–10 Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
Consolidated Authority 2010 2009 2010 2009 $’000 $’000 $’000 $’000
Note 6 – Income tax equivalent Surplus before income tax equivalent: 30,202 37,233 30,202 32,662 Prepaid revenue (4,829) (4,879) (4,829) (4,879) Fair value (increment)/decrement on investment property 6,300 (64,011) 6,300 (64,011) Ballast Point settlement proceeds (38,888) - (38,888) - Notional taxable surplus/(loss) (7,215) (31,657) (7,215) (36,228)
Income tax equivalent calculated at 30% of notional taxable surplus/(loss) ------
Note 7 – Cash and cash equivalents Cash at bank and on hand 11,055 6,276 11,055 6,276 NSW Treasury Corporation – Hour Glass short-term cash facility 20,260 49,319 20,260 49,319 NSW Treasury Corporation – Short-term deposits 65,000 - 65,000 - 96,315 55,595 96,315 55,595
Note 8 – Trade and other receivables Current Rental debtors 588 1,574 588 1,574 Sundry debtors 3,018 1,620 3,018 1,620 Lease incentives 632 840 632 840 Goods and services tax recoverable 651 1,037 651 1,037 Prepayments and accrued revenue 3,315 2,780 3,315 2,780 8,204 7,851 8,204 7,851 Less: allowance for impairment of receivables (291) (172) (291) (172) 7,913 7,679 7,913 7,679
Non-current Security bond 38 38 38 38 38 38 38 38
Sydney Harbour Foreshore Authority Annual Report 2009–10 65 Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
Consolidated Authority 2010 2009 2010 2009 $’000 $’000 $’000 $’000
Movement in the allowance for impairment of receivables Balance as at 1 July (172) (80) (172) (80) Amounts written off during the year 31 19 31 19 Amounts recovered during the year 35 61 35 61 Increase/(decrease) in allowance recognised in profit or loss (185) (172) (185) (172) Balance as at 30 June (291) (172) (291) (172)
Note 9 – Inventories Current Trading stock 996 934 996 934 996 934 996 934
Note 10 – Assets classified as held for sale (a) Non-current assets held for sale Current Land and buildings 9,420 - 9,420 - 9,420 - 9,420 -
The New South Wales Government’s Mini-Budget 2008 included a proposal to divest commercial leases to the private sector by way of a 99 year lease. The Request for Tenders was issued in February 2010. After the tender process the evaluation panel recommended divestment of two properties including the freehold sale of a car park which is disclosed as non-current assets held for sale. The sale is expected to be completed by the end of December 2010.
66 Sydney Harbour Foreshore Authority Annual Report 2009–10 Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
Consolidated Authority 2010 2009 2010 2009 $’000 $’000 $’000 $’000
Note 11 – Investment property Balance at the beginning of the financial year (at fair value) 597,755 515,902 597,755 515,902 Capitalised expenditure - 14,337 - 14,337 Transfer from property, plant and equipment 6,300 3,800 6,300 3,800 Transfer to property, plant and equipment - (295) - (295) Net gain/(loss) from fair value adjustments (6,300) 64,011 (6,300) 64,011 Balance at the end of the financial year (at fair value) 597,755 597,755 597,755 597,755
Property interests held under operating leases, including 99 year leases, are classified and accounted for as investment property. The fair value of land under a prepaid long-term lease is negligible and as such it is recorded at $1 in the asset register (TPP 06-3). However the fair value will increase (or re-emerge) towards the end of the lease term as the effect of the encumbrance diminishes. Land under a prepaid long-term lease, irrespective of whether an upfront lease revenue was received, that continues to receive a rental stream, will be measured at fair value per AASB 140 Investment Property.
(a) Amounts recognised in profit and loss for investment properties Rental revenue 37,772 39,223 37,772 39,223 Direct operating expenses arising from investment properties that generate rental revenue (4,874) (5,261) (4,874) (5,261) Direct operating expenses arising from investment properties that did not generate rental revenue (284) (176) (284) (176) Total 32,614 33,786 32,614 33,786
(b) Valuation basis The fair value of the Authority’s investment property at the end of the financial year has been arrived at on the basis of a valuation carried out at that date by Land and Property Management Authority, independent valuers not related to the consolidated entity. The valuation, which conforms to Australian Valuation Standards, was arrived at by reference to market evidence of transaction prices for similar properties and by the capitalisation of income approach.
Sydney Harbour Foreshore Authority Annual Report 2009–10 67 Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
Consolidated Authority 2010 2009 2010 2009 $’000 $’000 $’000 $’000
Note 12 – Property, plant and equipment Land and buildings At gross value 563,755 568,660 563,755 568,660 Accumulated depreciation (28,138) (19,705) (28,138) (19,705) Carrying amount at fair value 535,617 548,955 535,617 548,955
Plant and equipment At gross value 93,790 89,175 93,790 89,175 Accumulated depreciation (47,973) (41,678) (47,973) (41,678) Carrying amount at fair value 45,817 47,497 45,817 47,497
Leasehold improvements At gross value 399 399 399 399 Accumulated depreciation (167) (80) (167) (80) Carrying amount at fair value 232 319 232 319
Leased assets At gross value 2,834 4,048 2,834 4,048 Accumulated amortisation (2,074) (2,172) (2,074) (2,172) Carrying amount at fair value 760 1,876 760 1,876
Art and artefacts At gross value 8,219 8,219 8,219 8,219 Accumulated depreciation - - - - Carrying amount at fair value 8,219 8,219 8,219 8,219
Work in progress 8,379 10,226 8,379 10,226
Total property, plant and equipment 599,024 617,092 599,024 617,092
At gross value 677,376 680,727 677,376 680,727 Accumulated depreciation and amortisation (78,352) (63,635) (78,352) (63,635)
Total property, plant and equipment 599,024 617,092 599,024 617,092
68 Sydney Harbour Foreshore Authority Annual Report 2009–10 Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
Consolidated Authority 2010 2010 $’000 $’000
(a) Reconciliations Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the financial year are set out below.
Land and buildings (includes open spaces and roads) Carrying amount at 1 July 548,955 548,955 Additions 11,645 11,645 Transfer to investment properties (6,300) (6,300) Transfer to assets held for sale (9,420) (9,420) Disposals (750) (750) Depreciation expense (8,513) (8,513) Carrying amount at 30 June 535,617 535,617
Plant and equipment Carrying amount at 1 July 47,497 47,497 Additions 5,688 5,688 Disposals (243) (243) Depreciation expense (7,125) (7,125) Carrying amount at 30 June 45,817 45,817
Leasehold improvements Carrying amount at 1 July 319 319 Depreciation expense (87) (87) Carrying amount at 30 June 232 232
Leased assets Carrying amount at 1 July 1,876 1,876 Amortisation expense (1,116) (1,116) Carrying amount at 30 June 760 760
Art and artefacts Carrying amount at 1 July 8,219 8,219 Carrying amount at 30 June 8,219 8,219
Sydney Harbour Foreshore Authority Annual Report 2009–10 69 Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
Consolidated Authority 2010 2010 $’000 $’000
Work in progress Opening balance 10,226 10,226 Additions 15,610 15,610 Transfer to fixed assets (11,263) (11,263) Expensed (6,194) (6,194) 8,379 8,379
Property, plant and equipment 599,024 599,024
Consolidated Authority 2009 2009 $’000 $’000
(b) Reconciliations – prior year Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the financial year are set out below.
Land and buildings (includes open spaces and roads) Carrying amount at 1 July 921,168 921,168 Additions 103,027 103,027 Transfer from plant and equipment 6,308 6,308 Transfer to investment properties (3,505) (3,505) Disposals (410,000) (410,000) Loss on revaluation (58,405) (58,405) Depreciation expense (9,638) (9,638) Carrying amount at 30 June 548,955 548,955
Plant and equipment Carrying amount at 1 July 53,241 53,241 Additions 8,384 8,384 Disposals (541) (541) Transfer to intangibles (2) (2) Transfer to land and buildings (6,308) (6,308) Depreciation expense (7,277) (7,277) Carrying amount at 30 June 47,497 47,497
Leasehold improvements Carrying amount at 1 July - - Additions 399 399 Depreciation expense (80) (80) Carrying amount at 30 June 319 319
70 Sydney Harbour Foreshore Authority Annual Report 2009–10 Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
Consolidated Authority 2009 2009 $’000 $’000
Leased assets Carrying amount at 1 July 2,560 2,560 Additions 609 609 Disposals (30) (30) Amortisation expense (1,263) (1,263) Carrying amount at 30 June 1,876 1,876
Art and artefacts Carrying amount at 1 July 8,178 8,178 Additions 41 41 Depreciation expense - - Carrying amount at 30 June 8,219 8,219
Work in progress Opening balance 34,277 34,277 Additions 37,905 37,905 Transfer to fixed assets (36,318) (36,318) Expensed (25,638) (25,638) 10,226 10,226
Property, plant and equipment 617,092 617,092
Consolidated Authority 2010 2009 2010 2009 $’000 $’000 $’000 $’000
Note 13 – Intangible assets Cost (gross carrying amount) 1,209 1,440 1,209 1,440 Less accumulated amortisation (889) (1,010) (889) (1,010) Carrying amount 320 430 320 430
Carrying amount at the beginning of the financial year 430 436 430 436 Additions 52 118 52 118 Disposal (63) (4) (63) (4) Transfer from plant and equipment - 2 - 2 Amortisation expense (99) (122) (99) (122) Carrying amount at the end of the financial year 320 430 320 430
Sydney Harbour Foreshore Authority Annual Report 2009–10 71 Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
Consolidated Authority 2010 2009 2010 2009 $’000 $’000 $’000 $’000
Note 14 – Trade and other payables Current Trade creditors 6,086 10,453 6,086 10,453 Sundry creditors and accruals 12,694 9,644 12,694 9,644 Refundable security deposits and bonds 980 883 980 883 Forward deposits 17,393 8,352 17,393 8,352 Accrued interest 105 105 105 105 Payable – accrued salaries, wages and on-costs 36 341 36 341 Payable to other NSW agency 470 - 470 - 37,764 29,778 37,764 29,778
Note 15 – Lease receipts in advance Current Lease receipts in advance (refer note 2(c)) 5,224 5,164 5,224 5,164 5,224 5,164 5,224 5,164
Non-current Lease receipts in advance (refer note 2(c)) 431,080 424,389 431,080 424,389 431,080 424,389 431,080 424,389
Note 16 – Borrowings Non-current Loans from NSW Treasury Corporation (unsecured) 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
As at 30 June 2010 the maturity profile of borrowings was: Not later than one year (current liabilities) - - - - Later than 1 year but not later than 5 years 10,000 10,000 10,000 10,000 Later than 5 years - - - - 10,000 10,000 10,000 10,000
72 Sydney Harbour Foreshore Authority Annual Report 2009–10 Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
Consolidated Authority 2010 2009 2010 2009 $’000 $’000 $’000 $’000
Note 17 – Provisions Current Annual leave - 2,526 - - Long service leave - 2,956 - - Payable to Office of Sydney Harbour Foreshore Authority - - - 5,482 Payable to other NSW agency 5,633 - 5,633 - 5,633 5,482 5,633 5,482
Contributions to NSW Government 3,000 - 3,000 - Provision for Sharing Sydney Harbour Access Program 1,431 1,370 1,431 1,370 Provision for property development expenses - 3,500 - 3,500 Other 4,942 4,727 4,942 4,727 9,373 9,597 9,373 9,597
15,006 15,079 15,006 15,079 Non-current Long service leave - 1,027 - - Superannuation (refer note 18) - 5,587 - - Payable to Office of Sydney Harbour Foreshore Authority - - - 6,614 Payable to other NSW agency 7,101 - 7,101 - 7,101 6,614 7,101 6,614
Movements in provisions Movements in each class of provision during the financial year, other than employee benefits, are set out below:
Contributions Sharing Property Other Total to NSW Sydney development Government Harbour expenses Access Program $’000 $’000 $’000 $’000 $’000
2010 Carrying amount at the beginning of financial year - 1,370 3,500 4,727 9,597 Provisions recognised during the year 3,000 500 - 215 3,715 Amount paid during the year - (439) (3,500) - (3,939) Carrying amount at the end of the financial year 3,000 1,431 - 4,942 9,373
Sydney Harbour Foreshore Authority Annual Report 2009–10 73 Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
Consolidated Authority 2010 2009 2010 2009 $’000 $’000 $’000 $’000
Aggregate employee benefits and related on-costs Short -term Annual leave - 2,526 - - Long service leave - 35 - - - 2,561 - - Long-term Long service leave - 3,948 - - Superannuation - 5,587 - - - 9,535 -
Total - 12,096 - -
Note 18 – Superannuation The liability for the defined benefit schemes was transferred from the Office of Sydney Harbour Foreshore Authority to the Land and Property Management Authority on 5 June 2010. The superannuation schemes are: • State Authorities Superannuation Scheme (SASS) • State Superannuation Scheme (SSS) • State Authorities Non-contributory Superannuation Scheme (SANCS) These schemes are all defined benefit schemes – at least a component of the final benefit is derived from a multiple of member salary and years of membership. All the schemes are closed to new members. The assessed liability for the Authority at 30 June 2010 and the funds held at the reserve account at Pillar Administration are:
(a) Defined Benefit Scheme as at 30 June 2010 (AASB 119 Employee Benefits) SASS SANCS SSS Total
Member numbers Contributors - - - - Deferred benefits - - - - Pensioners - - - - Pensions fully commuted - - - -
$ ‘000 $ ‘000 $ ‘000 $ ‘000 Accrued liability - - - - Estimated reserve account balance ------
Future Service Liability - - - - Surplus in excess of recovery available from schemes - - - - Net asset/(liability) - - - -
74 Sydney Harbour Foreshore Authority Annual Report 2009–10 Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
Defined Benefit Scheme as at 30 June 2009 (AASB 119 Employee Benefits) SASS SANCS SSS Total
Member numbers Contributors 8 11 3 22 Deferred benefits - - 5 5 Pensioners - - 15 15 Pensions fully commuted - - 1 1
$ ‘000 $ ‘000 $ ‘000 $ ‘000 Accrued liability (2,383) (553) (13,142) (16,078) Estimated reserve account balance 1,677 267 8,547 10,491 (706) (286) (4,595) (5,587)
Future Service Liability (580) (240) (249) (1,069) Surplus in excess of recovery available from schemes - - - - Net asset/(liability) (706) (286) (4,595) (5,587)
The Future Service Liability (FSL) does not have to be recognised by the Authority. It is only used to determine if an asset ceiling limit should be imposed (AASB 119 para 58). No asset ceiling is imposed because there is no surplus in excess of recovery.
(b) Defined Benefit Scheme (AAS 25 Financial Reporting by Superannuation Plans) Reconcilliation of the assets and liabilities recognised in the balance sheet SASS SANCS SSS Total 30 June 2010 30 June 2010 30 June 2010 30 June 2010 $’000 $’000 $’000 $’000
Present value of defined benefit obligations - - - - Fair value of fund assets ------
Surplus in excess of recovery available from schemes - - - - Unrecognised past service cost - - - - Net asset/(liability) disclosed in balance sheet as at 30 June 2010 - - - -
SASS SANCS SSS Total 30 June 2009 30 June 2009 30 June 2009 30 June 2009 $’000 $’000 $’000 $’000
Present value of defined benefit obligations (2,383) (553) (13,142) (16,078) Fair value of fund assets 1,677 267 8,547 10,491 (706) (286) (4,595) (5,587)
Surplus in excess of recovery available from schemes - - - - Unrecognised past service cost - - - - Net asset/(liability) disclosed in balance sheet as at 30 June 2009 (706) (286) (4,595) (5,587)
Sydney Harbour Foreshore Authority Annual Report 2009–10 75 Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
SASS SANCS SSS Total 30 June 2008 30 June 2008 30 June 2008 30 June 2008 $’000 $’000 $’000 $’000
Present value of defined benefit obligations (2,035) (447) (10,751) (13,233) Fair value of fund assets 1,696 279 10,098 12,073 (339) (168) (653) (1,160)
Surplus in excess of recovery available from schemes - - - - Unrecognised past service cost - - - - Net asset/(liability) disclosed in balance sheet as at 30 June 2008 (339) (168) (653) (1,160)
SASS SANCS SSS Total 30 June 2007 30 June 2007 30 June 2007 30 June 2007 $’000 $’000 $’000 $’000
Present value of defined benefit obligations (2,550) (486) (10,692) (13,728) Fair value of fund assets 2,164 334 11,294 13,792 (386) (152) 602 64
Surplus in excess of recovery available from schemes - - - - Unrecognised past service cost - - - - Net asset/(liability) disclosed in balance sheet as at 30 June 2007 (386) (152) 602 64
SASS SANCS SSS Total 30 June 2006 30 June 2006 30 June 2006 30 June 2006 $’000 $’000 $’000 $’000
Present value of defined benefit obligations (1,869) (453) (10,921) (13,243) Fair value of fund assets 1,727 351 10,158 12,236 (142) (102) (763) (1,007)
Surplus in excess of recovery available from schemes - - - - Unrecognised past service cost - - - - Net asset/(liability) disclosed in balance sheet as at 30 June 2006 (142) (102) (763) (1,007)
All fund assets are invested by SAS Trustee Corporation at arm’s length through independent fund managers.
Movement in net liability/asset recognised in balance sheet SASS SANCS SSS Total 30 June 2010 30 June 2010 30 June 2010 30 June 2010 $’000 $’000 $’000 $’000
Net asset/(liability) at start of year - - - - Net revenue/(expense) recognised in the income statement - - - - Actuarial gains/(losses) recognised in year - - - - Contributions - - - - Net asset/(liability) disclosed in balance sheet as at 30 June 2010 - - - -
76 Sydney Harbour Foreshore Authority Annual Report 2009–10 Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
SASS SANCS SSS Total 30 June 2009 30 June 2009 30 June 2009 30 June 2009 $’000 $’000 $’000 $’000
Net asset/(liability) at start of year (339) (168) (653) (1,160) Net revenue/(expense) recognised in the income statement (69) (29) 65 (33) Actuarial gains/(losses) recognised in year (403) (119) (4,049) (4,571) Contributions 105 30 42 177 Net asset/(liability) disclosed in balance sheet as at 30 June 2009 (706) (286) (4,595) (5,587)
Total expense recognised in income statement SASS SANCS SSS Total 30 June 2010 30 June 2010 30 June 2010 30 June 2010 $’000 $’000 $’000 $’000
Current service cost - - - - Interest cost - - - - Expected return on Fund assets - - - - Actuarial (losses)/gains recognised in year - - - - Past service cost - - - - Movement in adjustment for limitation on net asset - - - - Curtailment or settlement (gain)/loss - - - - Revenue /(expense) recognised - - - -
SASS SANCS SSS Total 30 June 2009 30 June 2009 30 June 2009 30 June 2009 $’000 $’000 $’000 $’000
Current service cost (76) (23) (49) (148) Interest cost (128) (28) (687) (843) Expected return on Fund assets 135 22 801 958 Actuarial (losses)/gains recognised in year - - - - Past service cost - - - - Movement in adjustment for limitation on net asset - - - - Curtailment or settlement (gain)/loss - - - - Revenue /(expense) recognised (69) (29) 65 (33)
Amount recognised in the statement of recognised income and expense SASS SANCS SSS Total 30 June 2010 30 June 2010 30 June 2010 30 June 2010 $’000 $’000 $’000 $’000
Actuarial (gains)/losses - - - -
Sydney Harbour Foreshore Authority Annual Report 2009–10 77 Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
SASS SANCS SSS Total 30 June 2009 30 June 2009 30 June 2009 30 June 2009 $’000 $’000 $’000 $’000
Actuarial (gains)/losses 403 119 4,049 4,571
The cumulative amount of actuarial losses recognised in the ‘statement of recognised income and expense’ since 1 July 2004 is $3.558 million. Before 1 July 2004 and the adoption of AEIFRS, it is not practical to determine the cumulative actuarial gains/losses as if the new policy had always been applied, given that the actuarial gains and losses were not separately identified and accumulated, and the superannuation expense was calculated on a different basis.
Expected rate of return on assets The expected return on assets assumption is determined by weighting the expected long-term return for each asset class by the target allocation of assets to each class. The returns used for each class are net of investment tax and investment fees.
Actual return on plan assets SASS SANCS SSS Total 30 June 2010 30 June 2010 30 June 2010 30 June 2010 $’000 $’000 $’000 $’000
Actual return on plan assets - - - -
SASS SANCS SSS Total 30 June 2009 30 June 2009 30 June 2009 30 June 2009 $’000 $’000 $’000 $’000
Actual return on plan assets (173) (31) (984) (1,188)
Valuation method and principal actuarial assumptions at the reporting date i) Valuation method The Projected Unit Credit (PUC) valuation method was used to determine the present value of the defined benefit obligations and the related current service costs. This method sees each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation.
ii) Economic assumptions 2010 2009
Discount rate at 30 June - 5.59% p.a. Expected return on plan assets at 30 June - 8.13% p.a. Expected salary increases - 3.50% p.a. Expected rate of CPI increase - 2.50% p.a.
78 Sydney Harbour Foreshore Authority Annual Report 2009–10 Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
Recommended contribution rates for the entity are: SASS SANCS SSS multiple of member contributions % member salary multiple of member contributions
2010 - - - 2009 2.30 2.50 0.93
The method used to determine the employer contribution recommendations at the last actuarial review was the Aggregate Funding method. The method adopted affects the timing of the cost to the employer. Under this method, the employer contribution rate is determined so that sufficient assets will be available to meet benefit payments to existing members, taking into account the current value of assets and future contributions.
The economic assumptions adopted for the last actuarial review of the Fund were:
Weighted average assumptions 2010 2009
Expected rate of return on fund assets - 7.80% p.a. Expected salary increase rate - 4.00% p.a. Expected rate of CPI increase - 2.50% p.a.
Nature of asset/liability If a surplus exists in the Authority’s interest in the Fund, the Authority 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 Fund’s actuary. Where a deficiency exists, the employer is responsible for any difference between the employer’s share of fund assets and the defined benefit obligation.
Consolidated Authority 2010 2009 2010 2009 $’000 $’000 $’000 $’000
Note 19 – Other liabilities Current Finance lease liability 654 1,091 654 1,091 Revenue in advance 2,267 2,099 2,267 2,099 2,921 3,190 2,921 3,190
Non-current Finance lease liability 254 911 254 911 Revenue in advance - - - - 254 911 254 911
Sydney Harbour Foreshore Authority Annual Report 2009–10 79 Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
Consolidated Authority 2010 2009 2010 2009 $’000 $’000 $’000 $’000
Note 20 – Decrease in net assets from equity transfers At 31 March 2009 the Barangaroo site and all related assets and liabilities were transferred to the Barangaroo Delivery Authority. The result of this transfer is as follows: Transferred out
Cash and cash equivalents - 900 - 900 Property, plant and equipment - 410,025 - 410,025 - 410,925 - 410,925
Trade and other payables - 793 - 793 Provisions - 174,674 - 174,674 Other liabilities - 96,795 - 96,795 - 272,262 - 272,262
Net assets - 138,663 - 138,663
Note 21 – Commitments for expenditure (a) Capital commitments Capital commitments contracted for at the reporting date, but not recognised in the financial statements, are payable as follows: Not later than one year 1,349 3,456 1,349 3,456 Later than one year and not later than five years - - - - Later than five years - - - - Total including GST 1,349 3,456 1,349 3,456
The capital commitments above include GST of $0.123 million (contingent asset), expected to be recoverable from the Australian Taxation Office.
(b) Other expenditure commitments Other expenditure commitments contracted for at the reporting date, but not recognised in the financial statements, are payable as follows:
Not later than one year 4,827 9,726 4,827 9,726 Later than one year and not later than five years 347 421 347 421 Later than five years - - - - Total including GST 5,174 10,147 5,174 10,147
The operational commitments above include GST of $0.470 million (contingent asset), expected to be recoverable from the Australian Taxation Office.
80 Sydney Harbour Foreshore Authority Annual Report 2009–10 Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
Consolidated Authority 2010 2009 2010 2009 $’000 $’000 $’000 $’000
Note 22 – Leases (a) Operating lease receivables Non-cancellable operating lease receivables not recognised in the financial statements are as follows:
Not later than one year 34,941 34,155 34,941 34,155 Later than one and not later than five years 108,244 97,519 108,244 97,519 Later than five years 1,113,064 1,103,704 1,113,064 1,103,704 Total including GST 1,256,249 1,235,378 1,256,249 1,235,378
Operating leases receivables relate to leases in rental properties. These are entered into at market rates and on commercial terms. Regular market valuations and tendering processes are carried out to ensure commercial arrangements are maintained. The lease receivables on rental properties include GST of $114.204 million (contingent liability) that is expected to be payable to the Australian Taxation Office.
(b) Operating lease payments Non-cancellable operating lease payments not recognised in the financial statements are as follows:
Not later than one year 236 286 236 286 Later than one year and not later than five years 517 455 517 455 Later than five years - - - - Total including GST 753 741 753 741
Operating leases relate to property, information technology equipment, office equipment and motor vehicles. Lease terms are between two and five years. The operating lease commitments above include input tax credits of $0.068 million (contingent asset) that are expected to be recoverable from the Australian Taxation Office.
(c) Finance lease payments Minimum future Present value of lease payments minimum future lease payments 2010 2009 2010 2009 $’000 $’000 $’000 $’000
Not later than one year 689 1,204 672 1,161 Later than one and not later than five years 260 953 236 841 Later than five years - - - - Minimum lease payments 949 2,157 908 2,002 Less future interest payments (41) (155) - - Present value of minimum lease payments 908 2,002 908 2,002
Included in financial statements (refer note 19) Current lease liability 654 1,091 654 1,091 Non-current lease liability 254 911 254 911 908 2,002 908 2,002
Finance leases mainly relate to audio visual equipment with lease terms between three to five years.
Sydney Harbour Foreshore Authority Annual Report 2009–10 81 Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
Note 23 – Contingencies (a) Contingent assets Contingent assets exist in relation to GST on expenditure commitments and lease payments as disclosed in notes 21 and 22. A contingent asset also exists in relation to an amount of $21.907 million receivable from NSW Treasury. The payment to the Authority is forecast to be provided within one year of the Barangaroo Delivery Authority signing the development agreement with the Stage 1 successful Proponent. This is expected to take place in 2010–11.
(b) Contingent liabilities A contingent liability exists in relation to GST on lease receivables as disclosed in note 22.
Consolidated Authority 2010 2009 2010 2009 $’000 $’000 $’000 $’000
Note 24 – Notes to the statement of cash flows a) Reconciliation of cash For the purposes of the statement of cash flows, cash includes cash on hand, in banks and investments in money market instruments, net of outstanding bank overdrafts. 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 at bank and on hand 11,055 6,276 11,055 6,276 Investments (NSW Treasury Corporation) 85,260 49,319 85,260 49,319 96,315 55,595 96,315 55,595
The Authority manages bank accounts on behalf of the Luna Park Reserve Trust and NSW Maritime. These funds do not belong to the Authority and is not included as a cash asset.
(b) Reconciliation of surplus after related income tax equivalent to net cash flows from operating activities
Operating surplus after income tax equivalent 30,202 37,233 30,202 32,662 Non-cash flows in operating surplus: Depreciation and amortisation 16,940 18,380 16,940 18,380 Miscellaneous non cash revenue/expense (3,986) (73,314) (3,986) (68,743) Change in operating assets and liabilities Decrease/(increase) in inventories (62) 29 (62) 29 Decrease/(increase) in receivables (64) 4,656 (64) 4,656 (Decrease)/increase in creditors (1,153) 22,061 (1,153) 22,061 (Decrease)/increase in provisions (2,586) 1,878 (2,586) 1,878 (Decrease)/increase in unamortised revenue 11,967 3,683 11,967 3,683
Net cash flows from operating activities 51,258 14,606 51,258 14,606
82 Sydney Harbour Foreshore Authority Annual Report 2009–10 Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
Note 25 – Financial instruments The Authority’s principal financial instruments are outlined below. These financial instruments arise directly from the Authority’s operations or are required to finance the Authority’s operations. The Authority does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. The Authority’s main risks arising from financial instruments are outlined below, together with the Authority’s objectives, policies and processes for measuring and managing risk. Further quantitative and qualitative disclosures are included throughout these financial statements. The interim Board has overall responsibility for the establishment and oversight of risk management and reviews and agrees policies for managing each of these risks. Risk management policies are established to identify and analyse the risks faced by the Authority, to set risk limits and controls and to monitor risks. Compliance with policies is reviewed by the Audit and Risk Management Committee and internal auditors on a regular basis.
(a) Financial instrument categories Note Category Carrying Carrying amount amount 2010 2009 $’000 $’000
Financial assets Class: Cash and cash equivalents 7 N/A 96,315 55,595 Receivables 8 loans and receivables at amortised cost 3,339 2,943
Financial liabilities Class: Payables 14 Financial liabilities measured at amortised cost 28,081 23,044 Borrowings 16 Financial liabilities measured at amortised cost 10,000 10,000 Other liabilities 19 Financial liabilities measured at amortised cost 908 2,002
(b) Credit risk Credit risk arises when there is the possibility of the Authority’s debtors defaulting on their contractual obligations, resulting in a financial loss to the Authority. The maximum exposure to credit risk is generally represented by the carrying amount of the financial assets (net of any allowance for impairment). Credit risk arises from the financial assets of the Authority, including cash, receivables and deposits. No collateral is held by the Authority. The Authority has not granted any financial guarantees. Credit risk associated with the Authority’s financial assets, other than receivables, is managed through the selection of counterparties. Deposits held with NSW TCorp are guaranteed by the State.
Cash Cash comprises cash on hand and bank balances within the NSW Treasury Banking System. Interest is earned on daily bank balances.
Sydney Harbour Foreshore Authority Annual Report 2009–10 83 Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
Receivables – Trade debtors All trade debtors are recognised as amounts receivable at balance date. Collectability of trade debtors is reviewed on an ongoing basis. Procedures as established in the Treasurer’s Directions are followed to recover outstanding amounts, including letters of demand. Debts which are known to be uncollectible are written off. An allowance for impairment is raised when there is objective evidence that the entity will not be able to collect all amounts due. This evidence includes past experience, and current and expected changes in economic conditions. No interest is earned on trade debtors. Sales are generally made on 30 day terms. The Authority is not materially exposed to concentrations of credit risk to a single trade debtor or group of debtors. All debtors are assessed individually for impairments. Debtors that are not past due (2010: $2.791 million; 2009: $1.446 million) and debtors that are past due but not considered impaired (2010: $0.257 million; 2009: $1.325 million) together represent 91% of the total debtors. There are no debtors which are currently not past due or impaired whose terms have been renegotiated. The only financial assets that are past due or impaired are sales of services in the ‘receivables’ category of the statement of financial position.
Total Past due but Considered not impaired impaired $’000 $’000 $’000
2010 < 3 months overdue 244 233 11 3 months – 6 months overdue 22 22 - > 6 months overdue 282 2 280
2009 < 3 months overdue 1,387 1,287 100 3 months – 6 months overdue 30 20 10 > 6 months overdue 80 18 62
Authority deposits The Authority has placed funds on deposit with TCorp, which has been rated “AAA” by Standard and Poor’s. These deposits are similar to money market or bank deposits and can be placed “at call” or for a fixed term. For fixed term deposits, the interest rate payable by TCorp is negotiated initially and is fixed for the term of the deposit, while the interest rate payable on at call deposits can vary. The deposits at balance date were earning an average interest rate of 4.65% (2009: 5.35%), while over the year the weighted average interest rate was 4.40% (2009: 5.43%) on a weighted average balance during the year of $57.846 million (2009: $64.077 million). None of these assets are past due or impaired.
(c) Liquidity risk Liquidity risk is the risk that the Authority will be unable to meet its payment obligations when they fall due. The Authority manages risk through monitoring future cash flows and maturities planning to ensure adequate holding of high quality liquid assets. The objective is to maintain a balance between continuity of funding and flexibility through the use of overdrafts, loans and other advances. The Authority has a total debt facility of $104 million as at 30 June 2010. The net fair value of these loans at balance date was $10 million (2009: $10 million). The weighted average effective interest rate for the year was 8.04% (2009: 7.39%) for loans. During the current and prior years, there were no defaults or breaches on any loans payable. No assets have been pledged as collateral. The Authority’s exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of risk. The liabilities are recognised for amounts due to be paid in the future for goods or services received, whether or not invoiced. Amounts owing to suppliers (which are unsecured) are settled in accordance with the policy set out in Treasurer’s Direction 219.01. If trade terms are not specified, payment is made no later than the end of the month following the month in which an invoice or a statement is received.
84 Sydney Harbour Foreshore Authority Annual Report 2009–10 Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
The table below summarises the maturity profile of the Authority’s financial liabilities, together with the interest rate exposure.
Maturity analysis and interest rate exposure of financial liabilities:
Interest rate exposure Maturity dates Weighted average effective Fixed Variable Non- interest Nominal interest interest interest 1–5 rate amount rate rate bearing <1 year years >5 years $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 2010 Payables: Trade and sundry creditors - 9,708 - - 9,708 9,096 306 306 Security deposits 3.62% 788 - 788 - 543 241 4 Casual bonds - 192 - - 192 192 - - Forward deposits - 17,393 - - 17,393 16,694 655 44 Borrowings:
TCorp borrowings 8.04% 10,000 10,000 - - - 10,000 - Other:
Finance lease liability 6.02% 908 908 - - 654 254 - 38,989 10,908 788 27,293 27,179 11,456 354 2009 Payables: Trade and sundry creditors - 13,809 - - 13,809 13,183 313 313 Security deposits 4.80% 702 - 702 - 468 76 158 Casual bonds - 182 - - 182 182 - - Forward deposits - 8,351 - - 8,351 8,319 28 4 Borrowings: TCorp borrowings 7.39% 10,000 10,000 - - - 10,000 - Other: Finance lease liability 7.18% 2,002 2,002 - - 1,091 911 - 35,046 12,002 702 22,342 23,243 11,328 475
Notes: The amounts disclosed are the contractual undiscounted cash flows of each class of financial liabilities and therefore will not reconcile to the statement of financial position.
(d) Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The Authority’s exposures to market risk are primarily through interest rate risk on the Authority’s borrowings and other price risks associated with the movement in the unit price of the Hour Glass Investment facilities. The Authority has no exposure to foreign currency risk and does not enter into commodity contracts. The effect on profit and equity due to a reasonably possible change in risk variable is outlined in the information below, for interest rate risk and other price risk. A reasonably possible change in risk variable has been determined after taking into account the economic environment in which the Authority operates and the time frame for the assessment (i.e. until the end of the next annual reporting period). The sensitivity analysis is based on risk exposures in existence at the statement of financial position date. The analysis is performed on the same basis for 2009. The analysis assumes that all other variables remain constant.
Sydney Harbour Foreshore Authority Annual Report 2009–10 85 Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
Interest rate risk Exposure to interest rate risk arises primarily through the Authority’s interest bearing liabilities. This risk is minimised by undertaking mainly fixed rate borrowings, primarily with NSW TCorp. The Authority does not account for any fixed rate financial instruments at fair value through profit or loss or as available for sale. Therefore for these financial instruments a change in interest rates would not affect profit or loss or equity. A reasonably possible change of +/-1% is used, consistent with current trends in interest rates. The basis will be reviewed annually and amended where there is a structural change in the level of interest rate volatility. The Authority’s exposure to interest rate risk is set out below.
Carrying -1% 1% amount Profit Equity Profit Equity $’000 $’000 $’000 $’000 $’000 2010 Financial assets Cash and cash equivalents 96,315 (597) (597) 597 597 Receivables 3,339 - - - - Financial liabilities Payables 28,081 - - - - Borrowings 10,000 - - - - Other – finance lease liability 908 - - - -
2009 Financial assets Cash and cash equivalents 55,595 (485) (485) 485 485 Receivables 2,943 - - - - Financial liabilities Payables 23,044 - - - - Borrowings 10,000 - - - - Other – finance lease liability 2,002 - - - -
Other price risk – TCorp Hour Glass Exposure to ‘other price risk’ primarily arises through the investment in the TCorp Hour Glass Investment facilities, which are held for strategic rather than trading purposes. The Authority has no direct equity investments. The Authority holds units in the following Hour-Glass investment trusts:
Facility Investment sectors Investment horizon 2010 2009 $’000 $’000
Cash facility Cash, money market instruments Up to 1.5 years 20,260 49,319
The unit price of the facility is equal to the total fair value of net assets held by the facility divided by the total number of units on issue. Unit prices are calculated and published daily. NSW TCorp as trustee for the above facility is required to act in the best interest of the unit holders and to administer the trusts in accordance with the trust deeds. As trustee, TCorp has appointed external managers to manage the performance and risks of each facility in accordance with a mandate agreed by the parties. However, TCorp acts as manager for part of the Cash Facility. A significant portion of the administration of the facilities is outsourced to an external custodian. Investment in the Hour Glass facilities limits the Authority’s exposure to risk, as it allows diversification across a pool of funds, with different investment horizons and a mix of investments.
86 Sydney Harbour Foreshore Authority Annual Report 2009–10 Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
NSW TCorp provides sensitivity analysis information for each of the investment facilities, using historically based volatility information collected over a 10 year period, quoted at two standard deviations (i.e. 95% possibility). The TCorp Hour Glass investment facilities are designated at fair value through profit or loss and therefore any change in unit price impacts directly on profit (rather than equity). A reasonably possible change is based on the percentage change in unit price (as advised by TCorp) multiplied by the redemption value as at 30 June each year for each facility (balance from Hour Glass statement).
Impact on profit/loss Change in 2010 2009 unit price $’000 $’000
Hour Glass Investment – Cash facility +/-1% +/-203 +/-493
(e) Fair value compared to carrying amount The Authority’s financial instruments are recognised at cost, with the exception of the TCorp Hour-Glass facilities, which are measured at fair value. The value of the Hour-Glass facilities is based on the Authority’s share of the value of the underlying assets of the facility, based on the market value. All of the Hour-Glass facilities are valued using “redemption” pricing. The amortised cost of the Authority’s financial instruments recognised in the statement of financial position approximates the fair value, because of the short-term nature of the financial instruments. The Authority has not identified any financial instruments whose fair value differs materially from the carrying amount.
(f) Fair value recognised in the statement of financial position The Authority uses the following hierarchy for disclosing the fair value of financial instruments by valuation technique: Level 1 – Derived from quoted prices in active markets for identical assets/liabilities. Level 2 – Derived from inputs other than quoted prices that are observable directly or indirectly. Level 3 – Derived from valuation techniques that include inputs for the asset/liability not based on observable market data.
Level 1 Level 2 Level 3 2010 Total $’000 $’000 $’000 $’000
Financial assets at fair value TCorp Hour Glass Investment Facility - 20,260 - 20,260 - 20,260 - 20,260
Note 26 – Events after reporting date Asset Divestment The New South Wales Government’s Mini-Budget 2008 included a proposal to divest commercial leases to the private sector by way of a 99 year lease. The divestment strategy included a tender process which resulted in a recommendation to divest one commercial lease and the freehold sale of a car park. The divestment was approved by the Cabinet Standing Committee On The Budget on 28 July 2010 and the sale is expected to be completed by the end of December 2010.
Interim Board At its meeting on 20 September 2010 NSW Cabinet noted, as a result of the abolition of the Office of the Sydney Harbour Foreshore Authority, the Sydney Harbour Foreshore Authority Board was to be dissolved. This was effective 23 September 2010. Consistent with the Sydney Harbour Foreshore Authority Act 1998 an interim Board was appointed, comprising the Chief Executive of Sydney Harbour Foreshore Authority and the Director General of Planning.
END OF AUDITED FINANCIAL STATEMENTS
Sydney Harbour Foreshore Authority Annual Report 2009–10 87 Office of Sydney Harbour Foreshore Authority
Statement by Members of the Board of Sydney Harbour Foreshore Authority on the adoption of the financial statements for the period 1 July 2009 to 4 June 2010 Pursuant to Section 41C (1B) of the Public Finance and Audit Act 1983 we declare that in our opinion: 1. The accompanying financial statements exhibit a true and fair view of the financial position and financial performance of the Office of the Sydney Harbour Foreshore Authority as at 4 June 2010; and 2. The financial statements have been prepared in accordance with the Australian Accounting Standards and Interpretations and the provisions of the Public Finance and Audit Act 1983, the Public Finance and Audit Regulation 2010 and the Treasurer’s Directions. Further, we are not aware of any circumstances that would render any particulars included in the financial statements to be misleading or inaccurate.
Warwick Watkins AM Sam Haddad Chief Executive Officer Director General Sydney Harbour Foreshore Authority Department of Planning
14 October 2010 Sydney
88 Sydney Harbour Foreshore Authority Annual Report 2009–10 Office of Sydney Harbour Foreshore Authority
Sydney Harbour Foreshore Authority Annual Report 2009–10 89 Office of Sydney Harbour Foreshore Authority
90 Sydney Harbour Foreshore Authority Annual Report 2009–10 Office of Sydney Harbour Foreshore Authority
START OF AUDITED FINANCIAL STATEMENTS STATEMENT OF COMPREHENSIVE INCOME For the PERIOD 1 JULY 2009 TO 4 JUNE 2010
Notes 1 July 2009 1 July 2008 to 4 June 2010 to 30 June 2009 $’000 $’000
Personnel services revenue 3 23,139 31,898 Employee related expenses 4 (23,139) (27,327)
Surplus for the year - 4,571
Other comprehensive income Actuarial gain/(loss) on defined benefit plans (4,571) Other comprehensive income for the year - (4,571)
Total comprehensive income for the year - -
The above Statement of Comprehensive Income is to be read in conjunction with the accompanying notes.
Sydney Harbour Foreshore Authority Annual Report 2009–10 91 Office of Sydney Harbour Foreshore Authority STATEMENT OF FINANCIAL POSITION AS AT 4 JUNE 2010
Notes 4 June 30 June 2010 2009 $’000 $’000
Assets Current assets Receivables 5 - 5,823 Total current assets - 5,823
Non-current assets Receivables 5 - 6,614 Total non-current assets - 6,614 Total assets - 12,437
Liabilities Current liabilities Payables 6 - 341 Provisions 7 - 5,482 Total current liabilities - 5,823
Non-current liabilities Provisions 7 - 6,614 Total non-current liabilities - 6,614 Total liabilities - 12,437
Net assets - -
Equity Accumulated funds 9 - - Total equity - -
The above Statement of Financial Position is to be read in conjunction with the accompanying notes.
92 Sydney Harbour Foreshore Authority Annual Report 2009–10 Office of Sydney Harbour Foreshore Authority STATEMENT OF CHANGES IN EQUITY For the Period 1 July 2009 to 4 June 2010
Accumulated funds Total Notes $’000 $’000
Balance as at 1 July 2009 - -
Surplus/(deficit) for the year - - Other comprehensive income - - Total comprehensive income for the year - -
Transactions with owners in their capacity as owners - -
Balance as at 30 June 2010 - -
Balance as at 1 July 2008 - -
Surplus/(deficit) for the year 4,571 4,571 Other comprehensive income - - Total comprehensive income for the year 4,571 4,571
Transactions with owners in their capacity as owners - -
Balance as at 30 June 2009 4,571 4,571
The above Statement of Changes in Equity is to be read in conjunction with the accompanying notes.
Sydney Harbour Foreshore Authority Annual Report 2009–10 93 Office of Sydney Harbour Foreshore Authority STATEMENT OF CASH FLOWS For the period 1 july 2009 to 4 june 2010
Notes 1 July 2009 1 July 2008 to 4 June 2010 to 30 June 2009 $’000 $’000
Cash flows from operating activities Net cash inflows/(outflows) from operating activities - -
Cash flows from investing activities Net cash inflows/(outflows) from investing activities - -
Cash flows from financing activities Net cash inflows/(outflows) from financing activities - -
Net increase/(decrease) in cash - - Opening cash and cash equivalents - - Closing cash and cash equivalents - -
The above Statement of Cash Flows is to be read in conjunction with the accompanying notes.
94 Sydney Harbour Foreshore Authority Annual Report 2009–10 Office of Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the period 1 july 2009 to 4 june 2010
Note 1 – Reporting entity Office of the Sydney Harbour Foreshore Authority (the Office) is a Division of the Government Service, established pursuant to Part 1 of Schedule 1 to the Public Sector Employment Legislation Amendment Act 2006. It is a not-for-profit entity as profit is not its principal objective. It is consolidated as part of the NSW Total State Sector Accounts. It is domiciled in Australia and its principal office is at 66 Harrington Street, The Rocks, New South Wales. The Office’s only function is to provide personnel services to Sydney Harbour Foreshore Authority (the Authority). The Public Sector Employment and Management (SHFA) Order 2010 published on 4 June 2010 abolished the Office of the Sydney Harbour Foreshore Authority. All permanent employees were transferred from the Office to Land and Property Management Authority (LPMA) on that date. These financial statements for the period 1 July 2009 to 4 June 2010 were authorised for issue by the Authority’s interim Board on 14 October 2010. This is the last set of financial statements prepared for the Office of Sydney Harbour Foreshore Authority.
Note 2 – Summary of significant accounting policies (a) Basis of preparation The Office’s financial statements are general purpose financial statements which have been prepared in accordance with: • Australian Accounting Standards and Australian Accounting Interpretations; and • the requirement of the Public Finance and Audit Act 1983. Set out below is a summary of the significant accounting policies.
Historical cost convention These financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets and liabilities at fair value.
Critical accounting judgements and key sources of estimation uncertainty In the application of the Office’s accounting policies, 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 historical experience and other factors that are considered to be relevant. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are recognised, or 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. The financial statements are presented in Australian dollars rounded to the nearest thousand.
Sydney Harbour Foreshore Authority Annual Report 2009–10 95 Office of Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the period 1 july 2009 to 4 june 2010
(b) Revenue recognition Revenue is measured at the fair value of the consideration received or receivable. Revenue from the rendering of personnel services is recognised when the service is provided and only to the extent that the associated recoverable expenses are recognised.
(c) Receivables Receivables are recognised when it is probable that the future cash inflows associated with it will be realised and it has a value that can be measured reliably. It is derecognised when the contractual or other rights to future cash flows from it expire or are transferred. Receivables are recognised initially at original invoice amount, usually based on transaction cost or face value. Receivables are subject to annual review for impairment. An allowance for impairment is established when there is objective evidence that the Office will not be able to collect all amounts due. The amount of the impairment loss is recognised in the Statement of Comprehensive Income.
(d) Payables Payables represent liabilities for goods and services provided to the Office. Payables include accrued wages, salaries, and related on costs (such as payroll tax, fringe benefits tax and workers’ compensation insurance) where there is certainty as to the amount and timing of settlement. Payables are recognised at fair value, when a present obligation arises under a contract or otherwise. It is derecognised when the obligation expires or is discharged, cancelled or substituted.
(e) Employee benefit provisions and expenses (i) Wages and Salaries, annual leave and sick leave Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to be settled within twelve months of the reporting date are recognised in respect of employees’ service up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled. (ii) Long service leave The 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 discount 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. Provisions made in respect of employee benefits which are not expected to be settled within 12 months are measured as the present value of the estimated future cash outflows to be made by the consolidated entity in respect of services provided by employees up to reporting date. The government bond rate of 5.10% was applied for discounting purposes. The outstanding amounts of workers’ compensation, insurance premiums and fringe benefits tax, which are consequential to employment, are recognised as liabilities and expenses when the employee benefits to which they relate have been recognised.
96 Sydney Harbour Foreshore Authority Annual Report 2009–10 Office of Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the period 1 july 2009 to 4 june 2010
(iii) Retirement benefit obligations All employees of the Office are entitled to benefits from the Office’s superannuation plan on retirement, disability or death. The Office has a defined benefit plan and a defined contribution plan. The defined contribution plan receives fixed contributions from the Office and the Office’s legal or constructive obligation is limited to these contributions. Contributions to the defined contribution fund are recognised as an expense as they become payable. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available. A liability or asset of defined benefits superannuation plans is recognised in the balance sheet, and is measured as the present value of the defined benefit obligation at the reporting date less the fair value of the superannuation fund’s assets at that date and any unrecognised past service cost. The present value of the defined benefit obligations is based on expected future payments which arise from membership of the fund to the reporting date, calculated annually by independent actuaries 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. Past service costs are recognised immediately in income, unless the changes to the superannuation fund are conditional on the employees remaining in service for a specified period of time (the vesting period). In this case, the past service costs are amortised on a straight-line basis over the vesting period. Contributions to the defined contribution fund are recognised as an expense as they become payable. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.
(f) Provisions Provisions are recognised when the Office has a present obligation as a result of a past event, it is probable that the Office will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the reporting date. The discount rate used to determine the present value reflects current assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.
(g) Comparative information Except when an Australian Accounting Standard permits or requires otherwise, comparative information is disclosed in respect of the previous period for all amounts reported in the financial statements.
(h) Change in accounting policy When the presentation or classification of items in the financial statements are amended, comparative amounts are reclassified unless the reclassification is impracticable. When comparative amounts are reclassified, the Office discloses: (a) the nature of the reclassification; (b) the amount of each item or class of items that is reclassified; and (c) the reason for the reclassification.
Sydney Harbour Foreshore Authority Annual Report 2009–10 97 Office of Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the period 1 july 2009 to 4 june 2010
1 July 2009 1 July 2008 to 4 June 2010 to 30 June 2009 $’000 $’000
Note 3 – Personnel services revenue Revenue from supply of employee related services (refer note 4) 23,139 27,327 Superannuation actuarial adjustment - 4,571 23,139 31,898
Note 4 – Employee related expenses Directors’ fees 196 210 Salaries and wages 18,231 20,792 Defined contribution superannuation expense 1,584 1,737 Defined benefit superannuation expense - 33 Other employee related expenses 3,128 4,555 23,139 27,327
Note 5 – Receivables Current Receivable – annual leave - 2,526 Receivable – long service leave - 2,956 Receivable – accrued salaries, wages and on-costs - 341 - 5,823 Non-current Receivable – long service leave - 1,027 Receivable – superannuation - 5,587 - 6,614
Note 6 – Payables Accrued salaries, wages and on-costs - 341 - 341
98 Sydney Harbour Foreshore Authority Annual Report 2009–10 Office of Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the period 1 july 2009 to 4 june 2010
1 July 2009 1 July 2008 to 4 June 2010 to 30 June 2009 $’000 $’000
Note 7 – Provisions Current Annual leave - 2,526 Long service leave - 2,956 - 5,482 Non-current Long service leave - 1,027 Superannuation (refer note 8) - 5,587 - 6,614
Aggregate employee benefits and related on-costs Short-term Annual leave - 2,526 Long service leave - 35 - 2,561 Long-term Long service leave - 3,948 Superannuation - 5,587 - 9,535
Total - 12,096
Sydney Harbour Foreshore Authority Annual Report 2009–10 99 Office of Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the period 1 july 2009 to 4 june 2010
Note 8 – Superannuation The liability for the defined benefit schemes was transferred from the Office of Sydney Harbour Foreshore Authority to the Land and Property Management Authority on 5 June 2010. The superannuation schemes are: • State Authorities Superannuation Scheme (SASS) • State Superannuation Scheme (SSS) • State Authorities Non-contributory Superannuation Scheme (SANCS) These schemes are all defined benefit schemes – at least a component of the final benefit is derived from a multiple of member salary and years of membership. All the schemes are closed to new members. The assessed liability for the Office at 30 June 2010 and the funds held at the reserve account at Pillar Administration are:
(a) Defined Benefit Scheme as at 30 June 2010 (AASB 119 Employee Benefits) SASS SANCS SSS Total
Member numbers Contributors - - - - Deferred benefits - - - - Pensioners - - - - Pensions fully commuted - - - -
$ ‘000 $ ‘000 $ ‘000 $ ‘000 Accrued liability - - - - Estimated reserve account balance ------
Future Service Liability - - - - Surplus in excess of recovery available from schemes - - - - Net asset/(liability) - - - -
100 Sydney Harbour Foreshore Authority Annual Report 2009–10 Office of Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the period 1 july 2009 to 4 june 2010
Defined Benefit Scheme as at 30 June 2009 (AASB 119 Employee Benefits) SASS SANCS SSS Total
Member numbers Contributors 8 11 3 22 Deferred benefits - - 5 5 Pensioners - - 15 15 Pensions fully commuted - - 1 1
$ ‘000 $ ‘000 $ ‘000 $ ‘000 Accrued liability (2,383) (553) (13,142) (16,078) Estimated reserve account balance 1,677 267 8,547 10,491 (706) (286) (4,595) (5,587)
Future Service Liability (580) (240) (249) (1,069) Surplus in excess of recovery available from schemes - - - - Net asset/(liability) (706) (286) (4,595) (5,587)
The Future Service Liability (FSL) does not have to be recognised by the Office. It is only used to determine if an asset ceiling limit should be imposed (AASB 119 para 58). No asset ceiling is imposed because there is no surplus in excess of recovery.
(b) Defined Benefit Scheme (AAS 25 Financial Reporting by Superannuation Plans) Reconcilliation of the assets and liabilities recognised in the balance sheet SASS SANCS SSS Total 30 June 2010 30 June 2010 30 June 2010 30 June 2010 $’000 $’000 $’000 $’000
Present value of defined benefit obligations - - - - Fair value of fund assets ------
Surplus in excess of recovery available from schemes - - - - Unrecognised past service cost - - - - Net asset/(liability) disclosed in balance sheet as at 30 June 2010 - - - -
Sydney Harbour Foreshore Authority Annual Report 2009–10 101 Office of Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the period 1 july 2009 to 4 june 2010
SASS SANCS SSS Total 30 June 2009 30 June 2009 30 June 2009 30 June 2009 $’000 $’000 $’000 $’000
Present value of defined benefit obligations (2,383) (553) (13,142) (16,078) Fair value of fund assets 1,677 267 8,547 10,491 (706) (286) (4,595) (5,587)
Surplus in excess of recovery available from schemes - - - - Unrecognised past service cost - - - - Net asset/(liability) disclosed in balance sheet as at 30 June 2009 (706) (286) (4,595) (5,587)
SASS SANCS SSS Total 30 June 2008 30 June 2008 30 June 2008 30 June 2008 $’000 $’000 $’000 $’000
Present value of defined benefit obligations (2,035) (447) (10,751) (13,233) Fair value of fund assets 1,696 279 10,098 12,073 (339) (168) (653) (1,160)
Surplus in excess of recovery available from schemes - - - - Unrecognised past service cost - - - - Net asset/(liability) disclosed in balance sheet as at 30 June 2008 (339) (168) (653) (1,160)
SASS SANCS SSS Total 30 June 2007 30 June 2007 30 June 2007 30 June 2007 $’000 $’000 $’000 $’000
Present value of defined benefit obligations (2,550) (486) (10,692) (13,728) Fair value of fund assets 2,164 334 11,294 13,792 (386) (152) 602 64
Surplus in excess of recovery available from schemes - - - - Unrecognised past service cost - - - - Net asset/(liability) disclosed in balance sheet as at 30 June 2007 (386) (152) 602 64
102 Sydney Harbour Foreshore Authority Annual Report 2009–10 Office of Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the period 1 july 2009 to 4 june 2010
SASS SANCS SSS Total 30 June 2006 30 June 2006 30 June 2006 30 June 2006 $’000 $’000 $’000 $’000
Present value of defined benefit obligations (1,869) (453) (10,921) (13,243) Fair value of fund assets 1,727 351 10,158 12,236 (142) (102) (763) (1,007)
Surplus in excess of recovery available from schemes - - - - Unrecognised past service cost - - - - Net asset/(liability) disclosed in balance sheet as at 30 June 2006 (142) (102) (763) (1,007)
All fund assets are invested by SAS trustee corporation at arm’s length through independent fund managers.
Movement in net liability/asset recognised in balance sheet SASS SANCS SSS Total 30 June 2010 30 June 2010 30 June 2010 30 June 2010 $’000 $’000 $’000 $’000
Net asset/(liability) at start of year - - - - Net revenue/(expense) recognised in the income statement - - - - Actuarial gains/(losses) recognised in year - - - - Contributions - - - - Net asset/(liability) disclosed in balance sheet as at 30 June 2010 - - - -
SASS SANCS SSS Total 30 June 2009 30 June 2009 30 June 2009 30 June 2009 $’000 $’000 $’000 $’000
Net asset/(liability) at start of year (339) (168) (653) (1,160) Net revenue/(expense) recognised in the income statement (69) (29) 65 (33) Actuarial gains/(losses) recognised in year (403) (119) (4,049) (4,571) Contributions 105 30 42 177 Net asset/(liability) disclosed in balance sheet as at 30 June 2009 (706) (286) (4,595) (5,587)
Sydney Harbour Foreshore Authority Annual Report 2009–10 103 Office of Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the period 1 july 2009 to 4 june 2010
Total expense recognised in income statement SASS SANCS SSS Total 30 June 2010 30 June 2010 30 June 2010 30 June 2010 $’000 $’000 $’000 $’000
Current service cost - - - - Interest cost - - - - Expected return on Fund assets - - - - Actuarial (losses)/gains recognised in year - - - - Past service cost - - - - Movement in adjustment for limitation on net asset - - - - Curtailment or settlement (gain)/loss - - - - Revenue /(expense) recognised - - - -
SASS SANCS SSS Total 30 June 2009 30 June 2009 30 June 2009 30 June 2009 $’000 $’000 $’000 $’000
Current service cost (76) (23) (49) (148) Interest cost (128) (28) (687) (843) Expected return on Fund assets 135 22 801 958 Actuarial (losses)/gains recognised in year - - - - Past service cost - - - - Movement in adjustment for limitation on net asset - - - - Curtailment or settlement (gain)/loss - - - - Revenue /(expense) recognised (69) (29) 65 (33)
Amount recognised in the statement of recognised income and expense SASS SANCS SSS Total 30 June 2010 30 June 2010 30 June 2010 30 June 2010 $’000 $’000 $’000 $’000
Actuarial (gains)/losses - - - -
SASS SANCS SSS Total 30 June 2009 30 June 2009 30 June 2009 30 June 2009 $’000 $’000 $’000 $’000
Actuarial (gains)/losses 403 119 4,049 4,571
The cumulative amount of actuarial losses recognised in the ‘statement of recognised income and expense’ since 1 July 2004 is $3.558 million. Before 1 July 2004 and the adoption of AEIFRS, it is not practical to determine the cumulative actuarial gains/losses as if the new policy had always been applied, given that the actuarial gains and losses were not separately identified and accumulated, and the superannuation expense was calculated on a different basis.
104 Sydney Harbour Foreshore Authority Annual Report 2009–10 Office of Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the period 1 july 2009 to 4 june 2010
Expected rate of return on assets The expected return on assets assumption is determined by weighting the expected long-term return for each asset class by the target allocation of assets to each class. The returns used for each class are net of investment tax and investment fees.
Actual return on plan assets SASS SANCS SSS Total 30 June 2010 30 June 2010 30 June 2010 30 June 2010 $’000 $’000 $’000 $’000
Actual return on plan assets - - - -
SASS SANCS SSS Total 30 June 2009 30 June 2009 30 June 2009 30 June 2009 $’000 $’000 $’000 $’000
Actual return on plan assets (173) (31) (984) (1,188)
Valuation method and principal actuarial assumptions at the reporting date i) Valuation method The Projected Unit Credit (PUC) valuation method was used to determine the present value of the defined benefit obligations and the related current service costs. This method sees each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation. ii) Economic assumptions 2010 2009
Discount rate at 30 June - 5.59% p.a. Expected return on plan assets at 30 June - 8.13% p.a. Expected salary increases - 3.50% p.a. Expected rate of CPI increase - 2.50% p.a.
Sydney Harbour Foreshore Authority Annual Report 2009–10 105 Office of Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the period 1 july 2009 to 4 june 2010
Recommended contribution rates for the entity are: SASS SANCS SSS multiple of member contributions % member salary multiple of member contributions
2010 - - - 2009 2.30 2.50 0.93
The method used to determine the employer contribution recommendations at the last actuarial review was the Aggregate Funding method. The method adopted affects the timing of the cost to the employer. Under this method, the employer contribution rate is determined so that sufficient assets will be available to meet benefit payments to existing members, taking into account the current value of assets and future contributions.
The economic assumptions adopted for the last actuarial review of the Fund were:
Weighted average assumptions 2010 2009
Expected rate of return on fund assets - 7.80% p.a. Expected salary increase rate - 4.00% p.a. Expected rate of CPI increase - 2.50% p.a.
Nature of asset/liability If a surplus exists in the Office’s interest in the Fund, the Office 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 Fund’s actuary. Where a deficiency exists, the employer is responsible for any difference between the employer’s share of fund assets and the defined benefit obligation.
106 Sydney Harbour Foreshore Authority Annual Report 2009–10 Office of Sydney Harbour Foreshore Authority NOTES TO THE FINANCIAL STATEMENTS For the period 1 july 2009 to 4 june 2010
1 July 2009 1 July 2008 to 4 June 2010 to 30 June 2009 $’000 $’000
Note 9 – Accumulated funds Balance at the beginning of financial year - - Surplus for the year - 4,571 Superannuation actuarial gains/(losses) - (4,571) Balance at the end of financial year - -
Note 10 – Transfer of employee related benefits At 5 June 2010 all employee benefits were transferred to Land and Property Management Authority.
Receivables 11,820 - 11,820 -
Payables 32 - Provisions 11,788 - 11,820 -
Net assets - -
Note 11 – Commitments for expenditure The Office has no expenditure commitments at 4 June 2010 (None at 30 June 2009).
Note 12 – Contingencies The Office is not aware of any contingent assets or liabilities at 4 June 2010 (None at 30 June 2009).
Note 13 – Events after reporting date The Office has not identified any events or transactions that are material to require adjustments or disclosures in the financial statements.
END OF AUDITED FINANCIAL STATEMENTS
Sydney Harbour Foreshore Authority Annual Report 2009–10 107 Sydney Harbour Foreshore Authority Casual Staff Division
Statement by Members of the Board of Sydney Harbour Foreshore Authority on the adoption of the financial statements for the year ended 30 June 2010 Pursuant to Section 41C (1B) of the Public Finance and Audit Act 1983 we declare that in our opinion: 1. The accompanying financial statements exhibit a true and fair view of the financial position and financial performance of Sydney Harbour Foreshore Authority Casual Staff Division as at 30 June 2010; and 2. The financial statements have been prepared in accordance with the Australian Accounting Standards and Interpretations and the provisions of the Public Finance and Audit Act 1983, the Public Finance and Audit Regulation 2010 and the Treasurer’s Directions. Further, we are not aware of any circumstances that would render any particulars included in the financial statements to be misleading or inaccurate.
Warwick Watkins AM Sam Haddad Chief Executive Officer Director General Sydney Harbour Foreshore Authority Department of Planning
14 October 2010 Sydney
108 Sydney Harbour Foreshore Authority Annual Report 2009–10 Sydney Harbour Foreshore Authority Casual Staff Division
Sydney Harbour Foreshore Authority Annual Report 2009–10 109 Sydney Harbour Foreshore Authority Casual Staff Division
110 Sydney Harbour Foreshore Authority Annual Report 2009–10 Sydney Harbour Foreshore Authority Casual Staff Division
START OF AUDITED FINANCIAL STATEMENTS STATEMENT OF COMPREHENSIVE INCOME AS AT 30 June 2010
Notes 2010 2009 $’000 $’000
Personnel services revenue 3 2,007 1,893 Employee related expenses 4 (2,007) (1,893)
Surplus/(deficit) for the year - -
Other comprehensive income for the year - -
Total comprehensive income for the year - -
The above Statement of Comprehensive Income is to be read in conjunction with the accompanying notes.
Sydney Harbour Foreshore Authority Annual Report 2009–10 111 Sydney Harbour Foreshore Authority Casual Staff Division STATEMENT OF FINANCIAL POSITION AS AT 30 June 2010
Notes 2010 2009 $’000 $’000
Assets Current assets Receivables 5 36 Total current assets 36 -
Non-current assets Total non-current assets - - Total assets 36 -
Liabilities Current liabilities Payables 6 36 - Total current liabilities 36 -
Non-current liabilities Total non-current liabilities - - Total liabilities 36 -
Net assets - -
Equity Accumulated funds 7 - - Total equity - -
The above Statement of Financial Position is to be read in conjunction with the accompanying notes.
112 Sydney Harbour Foreshore Authority Annual Report 2009–10 Sydney Harbour Foreshore Authority Casual Staff Division STATEMENT OF CHANGES IN EQUITY For the year ended 30 June 2010
Accumulated funds Total Notes $’000 $’000
Balance as at 1 July 2009 - -
Surplus/(deficit) for the year - - Other comprehensive income - - Total comprehensive income for the year - -
Transactions with owners in their capacity as owners - -
Balance as at 30 June 2010 - -
Balance as at 1 July 2008 - -
Surplus/(deficit) for the year - - Other comprehensive income - - Total comprehensive income for the year - -
Transactions with owners in their capacity as owners - -
Balance as at 30 June 2009 - -
The above Statement of Changes in Equity is to be read in conjunction with the accompanying notes.
Sydney Harbour Foreshore Authority Annual Report 2009–10 113 Sydney Harbour Foreshore Authority Casual Staff Division STATEMENT OF CASH FLOWS For the year ended 30 June 2010
Notes 2010 2009 $’000 $’000
Cash flows from operating activities Net cash inflows/(outflows) from operating activities - -
Cash flows from investing activities Net cash inflows/(outflows) from investing activities - -
Cash flows from financing activities Net cash inflows/(outflows) from financing activities - -
Net increase/(decrease) in cash - - Opening cash and cash equivalents - - Closing cash and cash equivalents - -
The above Statement of Cash Flows is to be read in conjunction with the accompanying notes.
114 Sydney Harbour Foreshore Authority Annual Report 2009–10 Sydney Harbour Foreshore Authority Casual Staff Division NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
Note 1 – Reporting entity Sydney Harbour Foreshore Authority Casual Staff Division (the Division) is a Division of the Government Service, established pursuant to Part 3 of Schedule 1 to the Public Sector Employment Legislation Amendment Act 2006. It is a not-for-profit entity as profit is not its principal objective. It is consolidated as part of the NSW Total State Sector Accounts. It is domiciled in Australia and its principal office is at 66 Harrington Street, The Rocks, New South Wales. The Division’s sole objective is to provide casual personnel services to Sydney Harbour Foreshore Authority (the Authority). These financial statements for the year ended 30 June 2010 were authorised for issue by the Authority’s interim Board on 14 October 2010.
Note 2 – Summary of significant accounting policies a) Basis of preparation The Division’s financial statements are general purpose financial statements which have been prepared in accordance with: • Australian Accounting Standards and Australian Accounting Interpretations; and • the requirement of the Public Finance and Audit Act 1983. Set out below is a summary of the significant accounting policies adopted by the Division.
Historical cost convention These financial statements have been prepared under the historical cost convention, as modified by the revaluation of available-for- sale financial assets, financial assets and liabilities at fair value through profit or loss, certain classes of property, plant and equipment and investment property. Critical accounting judgements and key sources of estimation uncertainty In the application of the Division’s accounting policies, 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 historical experience and other factors that are considered to be relevant. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are recognised, or 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. The financial statements are presented in Australian dollars rounded to the nearest thousand. b) Revenue recognition Revenue is measured at the fair value of the consideration received or receivable. Revenue from the rendering of personnel services is recognised when the service is provided and only to the extent that the associated recoverable expenses are recognised. c) Receivables Receivables are recognised when it is probable that the future cash inflows associated with it will be realised and it has a value that can be measured reliably. It is derecognised when the contractual or other rights to future cash flows from it expire or are transferred. Receivables are recognised initially at original invoice amount, usually based on transaction cost or face value. Receivables are subject to annual review for impairment. An allowance for impairment is established when there is objective evidence that the Division will not be able to collect all amounts due. The amount of the impairment loss is recognised in the Statement of Comprehensive Income.
Sydney Harbour Foreshore Authority Annual Report 2009–10 115 Sydney Harbour Foreshore Authority Casual Staff Division NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
d) Payables Payables represent liabilities for goods and services provided to the Division and other amounts. Payables include accrued wages, salaries, and related on costs (such as payroll tax, fringe benefits tax and workers’ compensation insurance) where there is certainty as to the amount and timing of settlement. Payables are recognised at fair value, when a present obligation arises under a contract or otherwise. It is derecognised when the obligation expires or is discharged, cancelled or substituted.
e) Employee benefit provisions and expenses Provisions for annual leave, long service leave and sick leave are not recognised in line with the terms of employment for casual employees. The outstanding amounts of payroll tax, workers’ compensation insurance premiums, superannuation and fringe benefits tax, which are consequential to employment, are recognised as liabilities and expenses where the employee benefits to which they relate have been recognised.
f) Comparative information Except when an Australian Accounting Standard permits or requires otherwise, comparative information is disclosed in respect of the previous period for all amounts reported in the financial statements.
g) Change in accounting policy When the presentation or classification of items in the financial statements are amended, comparative amounts are reclassified unless the reclassification is impracticable. When comparative amounts are reclassified, the Division discloses: (a) the nature of the reclassification; (b) the amount of each item or class of items that is reclassified; and (c) the reason for the reclassification.
(h) New Australian Accounting Standards issues Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2010 reporting period. The Division did not early adopt any of these Accounting Standards and Interpretations that are not yet effective:
• AASB 101 Presentation of Financial Statements (1 January 2010); • AASB 107 Statement of Cash Flows (1 January 2010); • AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors (1 January 2011); • AASB 110 Events after the Reporting Period (1 January 2011); • AASB 118 Revenue (1 January 2010); • AASB 119 Employee Benefits (1 January 2011); • AASB 137 Provisions, Contingent Liabilities and Contingent Assets (1 January 2011); • AASB 1031 Materiality (1 January 2011); • AASB 1053 Application of Tiers of Australian Accounting Standards (1 July 2013).
It is considered that the impact of these new Standards and Interpretations in future periods will have no material impact on the financial statements of Sydney Harbour Foreshore Authority Casual Staff Division.
116 Sydney Harbour Foreshore Authority Annual Report 2009–10 Sydney Harbour Foreshore Authority Casual Staff Division NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2010
2010 2009 $’000 $’000
Note 3 – Personnel services revenue Revenue from supply of employee related services (refer note 4) 2,007 1,893 2,007 1,893
Note 4 – Employee related expenses Salaries and wages 1,739 1,638 Defined contribution superannuation expense 157 147 Other employee related expenses 111 108 2,007 1,893
Note 5 – Receivables Accrued salaries, wages and on-costs 36 - 36 -
Note 6 – Payables Accrued salaries, wages and on-costs 36 - 36 -
Note 7 – Accumulated funds Balance at the beginning of financial year - - Surplus/(deficit) for the year - - Balance at the end of financial year - -
Note 8 – Commitments for expenditure The Division has no expenditure commitments at 30 June 2010 (None at 30 June 2009).
Note 9 – Contingencies The Division is not aware of any contingent assets or liabilities at 30 June 2010 (None at 30 June 2009).
Note 10 – Events after reporting date The Division has not identified any events or transactions that are material to require adjustments or disclosures in the financial statements.
END OF AUDITED FINANCIAL STATEMENTS
Sydney Harbour Foreshore Authority Annual Report 2009–10 117 > 7 Appendix Freedom of information >> The following tables show details of freedom of information (FOI) requests received by the Authority.
Section A – New FOI applications
Number of FOI applications How many FOI applications were received, discontinued Personal Other Total or completed? 2008–09 2009–10 2008–09 2009–10 2008–09 2009–10
A1 New 0 0 10 33 10 33
A2 Brought forward 0 0 0 0 0 0
A3 Total to be processed 0 0 10 33 10 33
A4 Completed 0 0 7 28 7 28
A5 Discontinued 0 0 3 5 3 5
A6 Total processed 0 0 10 33 10 33
A7 Unfinished (carried forward) 0 0 0 0 0 0
Section B – Discontinued applications
Number of discontinued FOI applications Why were FOI Personal Other Total applications discontinued? 2008–09 2009–10 2008–09 2009–10 2008–09 2009–10 B1 Request transferred out to another agency 0 0 0 0 0 0 (s.20) B2 Applicant withdrew request 0 0 2 4 2 4
B3 Applicant failed to pay advance deposit (s.22) 0 0 0 1 0 1 B4 Applicant failed to amend a request that would have been an unreasonable diversion of 0 0 1 0 1 0 resources to complete (s.25(1)(a1)) B5 Total discontinued 0 0 3 5 3 5
Section C – Completed applications
Number of completed FOI applications What happened to completed FOI Personal Other Total applications? 2008–09 2009–10 2008–09 2009–10 2008–09 2009–10
C1 Granted or otherwise available in full 0 0 4 23 4 23
C2 Granted or otherwise available in part 0 0 2 0 2 0
C3 Refused 0 0 0 0 0 0
C4 No documents held 0 0 1 5 1 5
C5 Total completed 0 0 7 28 7 28
118 Sydney Harbour Foreshore Authority Annual Report 2009–10 Section D – Applications granted or otherwise available in full
Number of FOI applications (granted or otherwise available in full) How were the documents made available to Personal Other Total the applicant? 2008–09 2009–10 2008–09 2009–10 2008–09 2009–10
All documents requested were:
D1 Provided to the applicant 0 0 4 23 4 23 D2 Provided to the applicant’s medical 0 0 0 0 0 0 practitioner D3 Available for inspection 0 0 0 0 0 0
D4 Available for purchase 0 0 0 0 0 0
D5 Library material 0 0 0 0 0 0
D6 Subject to deferred access 0 0 0 0 0 0 D7 Available by a combination of any of the 0 0 0 0 0 0 reasons listed in D1–D6 above D8 Total granted or otherwise available in full 0 0 4 23 4 23
Section E – Applications granted or otherwise available in part
Number of FOI applications (granted or otherwise available in part) How were the documents made available to Personal Other Total the applicant? 2008–09 2009–10 2008–09 2009–10 2008–09 2009–10
All documents requested were:
E1 Provided to the applicant 0 0 2 0 2 0 E2 Provided to the applicant’s medical 0 0 0 0 0 0 practitioner E3 Available for inspection 0 0 0 0 0 0
E4 Available for purchase 0 0 0 0 0 0
E5 Library material 0 0 0 0 0 0
E6 Subject to deferred access 0 0 0 0 0 0 E7 Available by a combination of any of the 0 0 0 0 0 0 reasons listed in E1–E6 above E8 Total granted or otherwise available in part 0 0 2 0 2 0
Section F – Refused FOI applications
Number of refused FOI applications
Why was access to the documents refused? Personal Other Total
2008–09 2009–10 2008–09 2009–10 2008–09 2009–10
F1 Exempt 0 0 0 0 0 0
F2 Deemed refused 0 0 0 0 0 0
F3 Total refused 0 0 0 0 0 0
Sydney Harbour Foreshore Authority Annual Report 2009–10 119 >
Section G – Exempt documents
Number of FOI applications (refused or access granted or otherwise available in part only) Why were the documents classified as exempt? Personal Other Total 2008–09 2009–10 2008–09 2009–10 2008–09 2009–10
Restricted documents: G1 Cabinet documents 0 0 0 0 0 0 (Clause 1) G2 Executive Council documents 0 0 0 0 0 0 (Clause 2) G3 Documents affecting law enforcement and 0 0 0 0 0 0 public safety (Clause 4) G4 Documents affecting counter terrorism 0 0 0 0 0 0 measures (Clause 4A) Documents requiring consultation: G5 Documents affecting intergovernmental 0 0 0 0 0 0 relations (Clause 5) G6 Documents affecting personal affairs 0 0 0 0 0 0 (Clause 6) G7 Documents affecting business affairs 0 0 1 0 1 0 (Clause 7) G8 Documents affecting the conduct of research 0 0 0 0 0 0 (Clause 8) Documents otherwise exempt:
G9 Schedule 2 exempt agency 0 0 0 0 0 0 G10 Documents containing information confidential to Olympic Committees 0 0 0 0 0 0 (Clause 22) G11 Documents relating to threatened species, Aboriginal objects or Aboriginal places 0 0 0 0 0 0 (Clause 23) G12 Documents relating to threatened species 0 0 0 0 0 0 conservation (Clause 24) G13 Plans of management containing information of Aboriginal significance 0 0 0 0 0 0 (Clause 25) G14 Private documents in public library 0 0 0 0 0 0 collections (Clause 19) G15 Documents relating to judicial functions 0 0 0 0 0 0 (Clause 11) G16 Documents subject to contempt (Clause 17) 0 0 0 0 0 0 G17 Documents arising out of companies and 0 0 0 0 0 0 securities legislation (Clause 18) G18 Exempt documents under interstate FOI 0 0 0 0 0 0 legislation (Clause 21) G19 Documents subject to legal professional 0 0 1 0 1 0 privilege (Clause 10) G20 Documents containing confidential material 0 0 0 0 0 0 (Clause 13)
120 Sydney Harbour Foreshore Authority Annual Report 2009–10 Section G – continued
Number of FOI applications (refused or access granted or otherwise available in part only) Why were the documents classified as exempt? Personal Other Total 2008–09 2009–10 2008–09 2009–10 2008–09 2009–10
Restricted documents: 0 0 10 33 10 33 G21 Documents subject to secrecy provisions 0 0 0 0 0 0 (Clause 12) G22 Documents affecting the economy of the 0 0 0 0 0 0 State (Clause 14) G23 Documents affecting financial or property Interests of the State or an agency 0 0 0 0 0 0 (Clause 15) G24 Documents concerning operations of 0 0 0 0 0 0 agencies (Clause 16) G25 Internal working documents 0 0 0 0 0 0 (Clause 9) G26 Other exemptions 0 0 0 0 0 0 (e.g. Clauses 20, 22A and 26) G27 Total applications including 0 0 2 0 2 0 exempt documents
Section H – Ministerial Certificates (s.59)
Number of Ministerial Certificates How many Ministerial Certificates were issued? 2008–09 2009–10
H1 Ministerial Certificates issued 0 0
Section I – Formal consultations
Number How many formal consultations were conducted? 2008–09 2009–10
I1 Number of applications requiring formal consultation 0 2
I2 Number of persons formally consulted 0 2
Section J – Amendment of personal records
How many applications for amendment of personal Number of applications for amendment of personal records records were agreed or refused? 2008–09 2009–10
J1 Agreed in full 0 0
J2 Agreed in part 0 0
J3 Refused 0 0
J4 Total 0 0
Sydney Harbour Foreshore Authority Annual Report 2009–10 121 >
Section K – Notation of personal records
How many applications for notation of personal records Number of applications for notation were made (s.46)? 2008–09 2009–10
K1 Applications for notation 0 0
Section L – Fees and costs
What fees were assessed and received for FOI Assessed costs Fees received applications processed (excluding applications transferred out)? 2008–09 2009–10 2008–09 2009–10
L1 All completed applications $310 $1050 $310 $1050
Section M – Fee discounts
Number of FOI applications (where fees were waived or discounted) How many fee waivers or discounts were Personal Other Total allowed and why? 2008–09 2009–10 2008–09 2009–10 2008–09 2009–10
M1 Processing fees waived in full 0 0 0 0 0 0
M2 Public interest discounts 0 0 0 0 0 0 M3 Financial hardship discounts 0 0 2 0 2 0 – pensioner or child M4 Financial hardship discounts 0 0 0 0 0 0 – non-profit organisation M5 Total 0 0 2 0 2 0
Section N – Fee refunds
How many fee refunds were granted as a result of Number of refunds significant correction of personal records? 2008–09 2009–10 N1 Number of fee refunds granted as a result of significant 0 0 correction of personal records
Section O – Days taken to complete request
Number of completed FOI applications How long did it take to process completed Personal Other Total applications? (calendar days) 2008–09 2009–10 2008–09 2009–10 2008–09 2009–10
O1 0–21 days – statutory determination period 0 0 6 26 6 26 O2 22–35 days – extended statutory determination period for consultation or 0 0 1 2 1 2 retrieval of archived records (S.59B) O3 Over 21 days – deemed refusal where no 0 0 0 0 0 0 extended determination period applies O4 Over 35 days – deemed refusal where 0 0 0 0 0 0 extended determination period applies O5 Total 0 0 7 28 7 28
122 Sydney Harbour Foreshore Authority Annual Report 2009–10 Section P – Processing time in hours
Number of completed FOI applications How long did it take to process Personal Other Total completed applications? 2008–09 2009–10 2008–09 2009–10 2008–09 2009–10
P1 0–10 hours 0 0 4 23 4 23
P2 11–20 hours 0 0 0 5 0 5
P3 21–40 hours 0 0 1 0 1 0
P4 Over 40 hours 0 0 2 0 2 0
P5 Total 0 0 7 28 7 28
Section Q – Number of reviews
Number of completed reviews How many reviews were finalised? 2008–09 2009–10
Q1 Internal reviews 2 0
Q2 Ombudsman reviews 0 0
Q3 Administrative Decisions Tribunal reviews 0 0
Section R – Results of inetrnal events 2009–10
Number of FOI applications
Personal Other Total Grounds on which the internal review Original Original Original Original Original Original was requested agency agency agency agency agency agency decision decision decision decision decision decision Upheld Varied Upheld Varied Upheld Varied
R1 Access refused 0 0 1 0 1 0
R2 Access deferred 0 0 0 0 0 0
R3 Exempt matter deleted from documents 0 0 0 0 0 0
R4 Unreasonable charges 0 0 0 0 0 0
R5 Failure to consult with third parties 0 0 0 0 0 0
R6 Third parties’ views disregarded 0 0 0 0 0 0
R7 Amendment of personal records refused 0 0 0 0 0 0
R8 Total 0 0 1 0 1 0
Sydney Harbour Foreshore Authority Annual Report 2009–10 123 Delegated determinations made under the NSW Heritage Act 1977 > >> The following tables summarise the determinations made by the Authority under delegation from the Heritage Council of NSW. >> This information is provided in accordance with general condition 11 of the delegations under section 169(3) of the NSW Heritage Act.
Section 60 applications
Application Time number Address Summary (calendar days)
Shop and residence, 123 George S60/09/15 Modification of existing fitout 1 Street, The Rocks
Metcalfe Bond Store, 68–86 George S60/09/16 Base building upgrade levels 1, 3, 4 and 5 3 Street, The Rocks
S60/09/17 Circular Quay Railway Station Emergency evacuation signage 1
Metcalfe Bond Store, 68–86 George Upgrade of existing air conditioning and kitchen S60/09/18 11 Street, The Rocks extraction
Science House, 157–169 Gloucester S60/09/19 Temporary display suite and signage 1 Street, The Rocks
Argyle Stores, 12–20 Argyle Street, S60/09/20 Modification of existing approval S60/09/014 1 The Rocks
Former Bushells Building, 86–88 S60/09/21 Business identification signage 1 George Street, The Rocks
Shop and residence, 95–99 George S60/09/22 Painted signage 1 Street, The Rocks
ASN Hotel, 91 George Street, The S60/09/23 Signage 3 Rocks
British Seaman’s Hotel, 39–43 Argyle Painted signage 1 S60/09/24 Street, The Rocks
Shop and residence, 75–75.5 Signage and fitout including demolition of non-original 1 S60/09/25 George Street, The Rocks wall
ASN Co Building,1–5 Hickson Road, S60/09/26 Installation of partition wall to ground floor bay 4 1 The Rocks
Accountant’s House, 117–119 S60/09/27 Fitout of ground floor for beauty salon 4 Hickson Road, The Rocks
ASN Co Building, 1–5 Hickson Road, S60/09/28 Retail fitout 2 The Rocks
S60/09/29 Cumberland Place and steps Interpretative signage 4
Reynolds Cottage, 28 Harrington S60/09/30 Structural remediation 2 Street, The Rocks
Accountant's House (117–119 Harrington Street, The Rocks) and S60/10/01 Fitout to levels 1, 2 and 3 2 Housing Board Building (120 Gloucester Street, The Rocks)
Old Sydney Holiday Inn, 55 George Replacement of existing signage S60/10/02 4 Street, The Rocks
S60/10/03 Dawes Point Park, Hickson Road Trenching and excavation 4
Total = 19 3 day average
124 Sydney Harbour Foreshore Authority Annual Report 2009–10 Section 57(2) exemptions
Application Time number Address Summary (calendar days)
SHFA/09/11 Circular Quay Railway Station Replacement of existing non-original fabric 2
SHFA/09/17 Pyrmont Bridge Upgrade of existing signage 2
SHFA/09/18 Circular Quay Railway Station Replacement of ATM 1
Former New York Hotel, SHFA/09/19 Partitions to non-original office tower 1 155 George Street, The Rocks
Former Police Station, SHFA/09/20 Removal of non-original and intrusive fabric 2 127 George Street, The Rocks
Former Police Station, Removal of deposits and artefacts from building SHFA/09/21 7 127 George Street, The Rocks cavities
Rockpool, 107–109 George Street, Removal of deposits and artefacts from building SHFA/09/22 7 The Rocks cavities
Terrace, 40 Gloucester Street, SHFA/09/23 Installation of satellite dish behind parapet 1 The Rocks
Painted road markings to non-original bridge deck SHFA/09/24 Pyrmont Bridge 1 finish
Johnson’s Building, Repairs and maintenance to awning, fascia and facade 1 SHFA/09/25 233–235 George Street, The Rocks
Penrhyn House, Temporary signage 1 SHFA/09/26 22–26 Playfair Street, The Rocks
Reynold’s Cottage, SHFA/09/27 Maintenance and repairs to internal fabric 1 28 Harrington Street, The Rocks
Accountant’s House, SHFA/10/01 New fire door to non-original roof top addition 3 117 Harrington Street, The Rocks
Former New York Hotel, SHFA/10/02 Internal partitions and floor finishes 5 155 George Street, The Rocks
Dawes Point, Lower Fort Street, Removal of non-significant section of landscape wall for SHFA/10/03 6 The Rocks maintenance work to Sydney Harbour Bridge
Dawes Point, Lower Fort Street, SHFA/10/04 Trenching and excavation 7 The Rocks
SHFA/10/05 NOT USED
Sydney Harbour Foreshore Authority Annual Report 2009–10 125 >
Section 57(2) exemptions continued
Application Time number Address Summary (calendar days)
Hart’s Pub, 10–14 Essex Street, The Kitchen and interiors upgrade with no adverse impact to SHFA/10/06 2 Rocks significant fabric
Former New York Hotel, 155 George Reconfiguration of office layout to non-original office SHFA/10/07 2 Street, The Rocks tower level 7
Former New York Hotel, 155 George Reconfiguration of office layout to non-original office SHFA/10/08 1 Street, The Rocks tower levels 8 and 9
Metcalfe Bond Store, 68–84 George Removal of non-original partitions, upgrade of existing SHFA/10/09 1 Street, The Rocks kitchenette and security
Shop and residence, 75.5 George Reinstatement of early colour scheme and modification SHFA/10/10 1 Street, The Rocks to existing signage
Sargent Major’s Row, 39 George Removal of non-original floor finishes, internal painting SHFA/10/11 1 Street, The Rocks and repairs to existing wet areas
SHFA/10/12 NOT USED
SHFA/10/13 NOT USED
Bushells Building, 127–129 George 50mm core hole between 117 and 127 Harrington Street SHFA/10/14 1 Street, The Rocks for data cabling
Argyle Stores, 12–20 Argyle Street, Removal of non-original bar 6 SHFA/10/15 The Rocks
Total = 24 3 day average
126 Sydney Harbour Foreshore Authority Annual Report 2009–10 Section 139 exemption permits
Application number Address Summary
S.139-2009-003 MCA Forecourt, First Fleet Park Erect temporary flagpoles
S.139-2009-004 First Fleet Park, MCA Forecourt Soil test auguring
S.139-2009-05 Ultimo Pedestrian Network Piling for crane base
Service trench for gas connection in footway between shop and S.139-2010-001 Circular Quay Concourse council footpath
S.139-2010 -002 Harrington St Trenching for Telstra cabling
Replace buried pit in Mill Lane, trench 10 metres along existing trench. S.139-2010 -003 Mill Lane Install new No 2 pit. Install conduit on out sidewall, core through wall.
From application "Internal fitout and upgrade to building" after requesting S.139-2010-004 Sydney Cove Oyster Bar information, trenching for services, 400mm deep, 400mm width as per drawing H04
Section 139 exemption permits
Application number Address Summary
S.140-2009-001 Dawes Point Park Trenching for Optus cabling
Payment of accounts >> The following table summarises the Authority’s account performance during 2009–10. The target of 95 per cent of accounts paid on time was achieved for the year.
Quarter Quarter Quarter Quarter Total Description ended ended ended ended 30/09/09 30/09/09 30/09/09 30/09/09 2009–10 Percentage of accounts paid on time 95% 93% 93% 98% 95%
Total dollar of accounts paid on time $'000 53,738 58,437 58,798 131,360 302,332
Total dollar of accounts paid $'000 56,286 63,122 63,186 134,200 316,795
Sydney Harbour Foreshore Authority Annual Report 2009–10 127 Index
88 George Street 23 Heritage 18, 21–22, 29, 124–127 Aboriginal culture 28, 38 Human resources 37–39 Achievements 2, 17, 25, 35, 39, 47 Industrial relations 39 see also key performance indicator reporting Investment plan 19 Aims and objectives 6–7, 17, 25, 35, 39, 47 Interpretation 21, 22 Annual report cost inside back cover Jack Mundey Place 10 Appendix 118 Key performance indicator reporting 6–7 Asset management 10 Land and Property Management Authority 2, 8–9, 15, 36, 41 Auditor’s report 49–50 Leasing 19 Awards Legislative change 43 Industry awards 23 Map 4–5 Employee awards 37 Marketing 29–30 Ballast Point 2, 4, 16, 19, 23, 27, 31 Mentoring 36 Barangaroo 17, 19, 26, 31, 35 Multicultural Policies and Services Program 38 Bays Precinct 10, 19, 40 Occupational health and safety 36 Board 12–13, 15, 42–43 Organisation chart 15 Chief Executive 8–11, 13, 15, 36, 42 Overseas travel 42 Chair 13 Payment of accounts 127 Charter 3 People movements 30–31, 32–33 Chinese Garden of Friendship 27, 31 see also visitation figures Circular Quay 4, 8 Performance see key performance indicator reporting Code of conduct 38–39, 42 Policies Community services 27, 30, 33 policies Register 41 Conservation see heritage Sustainability policy 20 Conservation Management Plans 22 Privacy management plan 43 Consultants 44 Presentations 29 Contact information inside back cover Procurement 44 Corporate governance 41–45 Property see leasing Audit and Risk Management Committee 42 Publications 30 Corporate Governance Committee 42 Pyrmont Bridge 10, 27 Credit cards 43 Risk management 42, 43, 45 Customer service and feedback 29, 38 Sponsorships 33 Darling Walk 8, 12, 18–19, 26, 27 State Plan 6–7, 17, 25, 35, 39, 47 Darling Harbour South master plan 8, 26 Sustainability 20–21 Divestment 18, 47 Strategic objectives 6–7 Disability management 27, 36 Sydney Convention and East Darling Harbour see Barangaroo Exhibition Centre 20, 21, 23, 26, 30, 44 Educational programs 11, 22, 24, 28–29, 30 Sydney Entertainment Centre 26, 30 Employee numbers 37–39 Sydney Harbour YHA 11, 14, 21, 23, 24, 27 Environment see sustainability Sydney Visitor Centres 27, 38 Equal employment opportunity 38 Sydney Wharf 23 Ethnic affairs see Multicultural Policies and Services Program The Rocks Discovery Museum 28–29 Events The Rocks harbour heat exchange 19 Authority events 10, 30–33 The Rocks Markets 4, 27, 31 Conferences 26 Tourism 26, 30, 36 FIFA World Cup 26, 34 Training 36–37 lions Club International Convention 30, 46 Vacancy rates 18 Supporting the community 33 Visitation figures 30–31, 32–33, Executive team 14–15 see also people movements Financial statements 47–117 Waste 20, 21 Fraud and corruption prevention 36, 42–43 Websites 29, 30 Freedom of information 43, 119–123 White Bay Power Station 2 Fundraising 37 see also Bays Precinct Guinness World Record inside front cover, 10, 30 Women in the workplace 39 Healthy Lifestyle Program 37 Workplace6 23
128 Sydney Harbour Foreshore Authority Annual Report 2009–10 Contact us
Sydney Harbour Foreshore Authority 66 Harrington Street, The Rocks NSW 2000 PO Box N408, Grosvenor Place NSW 1220 T: +61 2 9240 8500 or 1300 655 995 F: +61 2 9240 8899 E: [email protected] www.shfa.nsw.gov.au Reception open 8am to 6pm, Monday to Friday ABN: 51 437 725 177
Sydney Visitor Centres The Rocks Corner Argyle and Playfair streets, The Rocks NSW 2000
Darling Harbour 33 Wheat Road, Darling Harbour NSW 2000 (between Darling Walk and IMAX) T: 1800 067 676 (freecall within Australia) E: [email protected] www.sydneyvisitorcentre.com Sydney Visitor Centres open 9.30am to 5.30pm daily Closed on Christmas Day and Good Friday and closes at 4pm on New Year’s Eve.
Websites www.shfa.nsw.gov.au www.darlingharbour.com www.therocks.com
Sustainable annual reporting To enhance the sustainability of the 2009–10 Annual Report, Sydney Harbour Foreshore Authority has produced it in an electronic format, available at www.shfa.nsw.gov.au. The report was written and designed in-house at Sydney Harbour Foreshore Authority. The total cost for external production and printing was $4,950.
Sovereign Offset is FSC Certified and considered to be one of the most environmentally adapted products on the market. It contains fibre sourced only from responsible forestry practices and is made with elemental chlorine free pulps. Printed by Digitalpress Pty Limited an ISO 14001 Environmental Management System certified company. This annual report has been offset by planting trees and Digitalpress have started a legacy of 1,482 trees with 10 Thousand Trees.
Sydney Harbour Foreshore Authority Annual Report 2009–10 129 Front cover: Binowee Bayles, a proud Koori woman from the south Sydney area, became the Authority’s first full-time Aboriginal program coordinatorAquam explitiis in January pro mossiti 2010. aces For cusmore aut details expel see maio page mossimporum, 28. Photographer: temperia Murray doluptas Vanderveer. derfero reprem. Asi aut eum volores tinctur rem des