ANNUAL REPORT 2018
CONTENTS
Chairman’s Foreword 4 Year in Review 5 Report of Operations 6 Our Partners 10 Financial Information Summary 11 Governance 13 Other Disclosures 18 Financial Statements 21 Disclosure Index 62
3 MELBOURNE AND OLYMPIC PARKS TRUST CHAIRMAN’S FOREWORD
In accordance with the Financial Management Act 1994, Over and above the extensive 15-year Melbourne Park I am pleased to present the annual report of Melbourne Redevelopment program agreed with Tennis Australia, and Olympic Parks operations and the audited financial M&OP continues to invest significant capital each year in statements for the Melbourne and Olympic Parks Trust (the upgrading and improving facilities across the precinct. This Trust) for the year ending 30 June 2018. year a further $19 million was funded by the Trust for this purpose. The ongoing investment by the Trust ensures that Melbourne and Olympic Parks (M&OP) has enjoyed strong M&OP venues remain world class and evolve to meet the growth in patronage and income, with all venues reporting changing needs of sporting and entertainment clients, as significantly increased utilisation and attendances for the well as the expectations of the public attending events and year. Most notably, Hisense Arena and AAMI Park welcomed using the precinct’s parkland and recreational facilities. 300,000 more patrons to events than in the prior year. The Trust has also committed to paying a further $49 A record-breaking 743,667 patrons attended the 2018 million to the Victorian Government over the next 3 years. Australian Open (AO) over the two-week tournament, despite a number of extreme heat days. A dedicated family Melbourne and Olympic Parks was recognised by the zone in the expanded Rod Laver Arena loading dock and Committee for Melbourne when it awarded the Trust the an extended music festival at Birrarung Marr added new prestigious Melbourne Achiever Award for its contribution to dimensions to the AO’s annual festival of tennis. the city’s reputation as a sport, art and culture capital. This year M&OP recorded its highest-ever overall income Looking forward, the M&OP team continues to explore result, with a growth of 18% over the prior year. Cash innovative ways to attract and service new events and surpluses and reserves remain solid and as a result, the meet the needs of its many stakeholders by addressing Trust is able to maintain its strong investment program, the ever-expanding technology expectations of the modern while also providing development support to sports, event patron. entertainment, recreational users and local communities. In September, the precinct will proudly host the first year of This growth continues despite the significant impact of the a major multi-year eSports Open festival. This event will use ongoing redevelopment works on event operations. During multiple areas of the precinct and Rod Laver Arena will host the 2018 financial year, Rod Laver Arena was closed for five the finals over two nights. months to enable significant interior work to take place in I would like to express my appreciation to the Premier the arena’s public and stage areas. These extensive works of Victoria, the Honourable Daniel Andrews, and the will expand and improve facilities for the public and players Minister for Tourism, Sport and Major Events, the and will allow the arena to support more and bigger events Honourable John Eren, for their continued support for in the future. the Melbourne and Olympic Parks precinct. The support The Rod Laver Arena works are part of the broader of the Victorian Government and that of our many users Melbourne Park Redevelopment, agreed with the State and and stakeholders ensures Melbourne and Olympic Parks Tennis Australia, under which the Australian Open remains remains a preeminent sports and entertainment precinct, in Melbourne until 2036. Stage 2 of the Melbourne Park a community asset and a significant contributor to the Redevelopment program has already seen completion of Victorian economy. the eight-storey Tennis HQ building, headquarters for both Finally, I’d like to acknowledge the hard work of the Tennis Australia and for M&OP, and the Tanderrum Bridge, Melbourne and Olympic Parks team and my fellow Trustees which significantly improves the connection of the precinct for their contribution and support throughout another to the city and Birrarung Marr and provides a new entry for productive year. In particular, I would also like to pay tribute the Australian Open. to retiring Trustee, Gary Clark for his important contribution Also part of Stage 2, a grand new entrance and expanded during his service to the Trust. concourse in Rod Laver Arena will be in operation in time for the 2019 Australian Open. The improvements will incorporate more restaurants, bars, public amenities and a rooftop terrace for patrons. Detailed design work for Stage 3 is well underway. This stage will provide new media, broadcast and hospitality areas, expanded public outdoor areas and a new 5000 Russell Caplan seat outdoor arena to increase seating available during the Chair Australian Open and year-round. Construction on this final Melbourne and Olympic Parks Trust stage will start immediately after the 2019 Australian Open, with the demolition of the Melbourne Park Function Centre and civil works surrounding the western courts area and the Northern Car Park.
4 MELBOURNE AND OLYMPIC PARKS TRUST YEAR IN REVIEW
Business Planning
Each year, Trustees and Management prepare a business 3. Goal Area - Improving Customer Value plan for approval in accordance with the requirements of In terms of ticketed attendance, the Trust performed its Act and Purpose. The plan articulates strategies, sets strongly, displaying growth across Rod Laver Arena, goals and determines measures for the new year to ensure Hisense Arena, Margaret Court Arena and AAMI Park, as well that the Trust continues to deliver on its purpose. The plan as the Australian Open. Hisense Arena and AAMI Park, in measures performance against five goal areas. particular, welcomed more than 300,000 more patrons to 1. Goal Area - Maintain Long Term Financial Sustainability events than in the prior year. Results for the year ending 30 June 2018, after depreciation M&OP regularly surveys sports users and venue guests was $15.8 million better than the prior year after taking into to determine satisfaction with services delivered. These account a $5.1 million increase in depreciation costs. The surveys include customer satisfaction surveys, mystery prior year result included an asset write down of $12.7m due guest reviews and exit surveys. The surveys are also utilised to the demolition of the indoor court complex to make way for to identify areas where services or value can be improved as the expanding Rod Laver Arena. part of M&OP’s commitment to continuous improvement. The Trust reported income of $111.7 million, which was $17.2 4. Goal Area - Business Processes million (18.2%) up on the prior year. With the exception As the Trust’s business has significantly expanded and of the Melbourne Park Function Centre, all Melbourne and grown over the past five years, it has needed to change and Olympic Parks venues and the Australian Open displayed a adapt its operations to continue to deliver higher levels of growth in activity and income year on year. The Melbourne service. Each event staged requires many days of planning, Park Function Centre was negatively impacted by the set-up and preparation before the public enter the venues. extensive works on Rod Laver Arena and will be demolished Improvements have been achieved through the innovative immediately after the 2019 Australian Open. use of technology, a commitment to developing employees 2. Goal Area - Increase Benefits to the State of Victoria and improving systems. This year saw a significant increase in the number of days This commitment delivered positive results reflected in the venues were contracted to hirers. The Trust delivered on the reduction of overhead costs per show, as well as a its goal to grow the utilisation of its venues, reporting a 21% reduction in customer delivery costs. increase in bookings on the prior year. The number of days the Trust’s venues were utilised for sport also exceeded the 5. Goal Area - Organisational Effectiveness prior year. The organisation regularly surveys its workforce to identify areas of concern and takes appropriate action to address The Trust’s primary purpose is to manage the facilities to workplace issues. develop sport and entertainment in Victoria. It provides public access to recreational facilities and specialised The Trust has remained committed to ensuring that it event services that enable sports and event hirers to delivers a safe and secure precinct and can this year report successfully deliver events in its facilities. It also provides a reduction in Lost Time Injuries. specific support and preferential access to sports and community organisations.
5 MELBOURNE AND OLYMPIC PARKS TRUST REPORT OF OPERATIONS
Overall Performance Rod Laver Arena Rod Laver Arena is currently in the midst of a significant Total income from operations was $111.7 million, up four-year upgrade after 30 years of operation. Despite $17.2 million on the prior year (2017: $94.5 million). This two closure periods during the year totalling five months increase is predominately due to growth in the number of duration, Rod Laver Arena still recorded a very successful shows and attendances across the precinct. year and managed to stage six more shows than the previous year and attract 65,000 extra fans. Total operating expenditure, including a $37.6 depreciation charge, was $115.9 million, up $14.3 million on the prior The Rod Laver Arena project delivered a milestone in August year (2017: $101.6 million). This included a $5.1 million after the first three-month closure with the delivery of: the increase in depreciation charges (associated with the new and expanded event loading and production area; a ongoing expansion in Melbourne Park infrastructure), new southern annex featuring extra bars and food options; as well as an increase in expenditure directly related to and extensively upgraded production and back-of-house generating the increased income. areas for artists, players and client staff. In April 2018, the venue closed once again for a further three months of The Trust also made a $6.1 million sports development intensive works. The works included the installation of new transfer (2017: $6.0 million), which was used to support seating, amenities on the concourse, improvements to the the Victorian Government’s sport and recreation programs. roof to support bigger productions of up to 100 tonnes, and Earnings before interest, depreciation, asset write downs a total replacement of the operable roof mechanisms to and sports development transfer, resulted in a $38.4 improve opening and closing speeds and reliability. million positive result being recorded (2017: $30.3 million). A major part of the ongoing works this year has been The net result for 2017/18 was a loss of $4.2 million (2017: focused on the completion of the new eastern annex loss of $20.0 million). The prior year result included a which will open in time for the Australian Open 2019 and $12.8 million loss on disposal as a result of the demolition will provide an array of facilities for guests and a new and of the indoor courts complex and public café. secure entrance for patrons to Rod Laver Arena. The annex Melbourne Park - Australian Open includes three levels of public facilities including bars, restaurants and a rooftop terrace. Events at Rod Laver The Australian Open once again delivered a strong Arena during the year included: attendance of 743,667, up from 728,763 fans in 2017. The event continues to delight fans, players and guests with • Alice Cooper • Roger Waters (3 shows) improved facilities and offerings delivered as part of the • Ariana Grande (2 shows) • Robbie Williams precinct redevelopment. • Bruno Mars (4 shows) (2 shows) The Open continues its focus on delivering excellent • Cirque du Soleil – Toruk • Shawn Mendes tennis, entertainment and family offerings, which again (11 shows) • Stevie Nicks proved a successful formula. An expanded Kids Ball Park • Culture Club • Take That was located in Rod Laver Arena’s new loading dock area, • Drake (3 shows) • The Footy Show Grand providing hours of fun for children of all ages. Grand Final Edition 2017 Slam Oval offered varied entertainment offerings and • Evanescence with Live hospitality from all corners of the globe. The expanded Orchestra • The Weeknd (2 shows) Birrarung Marr festival zone brought exciting bands • Jacky Cheung • The Wiggles – Wiggly and artists to suit all music tastes. Food and hospitality • Lionel Richie Christmas Big Show (3 shows) continued to be an important theme, with new and • Luke Bryan expanded food offerings and restaurants ranging from • Yusuf Islam (2 shows) • Muse high-end to casual, fresh and affordable. • WWE 2017 • Paramore Financially, the Open delivered a strong result for the Trust, • Queen + Adam Lambert with 9% growth in income due to increased attendances, (2 shows) and improved hospitality offerings. The Australian Open continues to develop its offering with an expanded week of community and family events alongside the qualifying events leading into the tournament.
6 MELBOURNE AND OLYMPIC PARKS TRUST REPORT OF OPERATIONS
Hisense Arena Margaret Court Arena Hisense Arena enjoyed a stand-out year, hosting 98 shows Margaret Court Arena at 7,500 seats is the smallest and sporting events in addition to the Australian Open. capacity venue on the precinct and continues to grow in its These events attracted 454,546 fans, selling a staggering market as an attractive mid-range entertainment venue. 190,668 more tickets than the prior year. The arena reported a strong year, with eight more shows than the prior year, and attracting a total of 182,352 fans The venue continues to focus on supporting an array to ticketed events, up from 166,161 the prior year. During of indoor sports and provides preferential access to the year, a new arena attendance record was broken with indoor sports. Its facilities are specifically structured and Tash Sultana attracting 7,359 fans to her sold-out show in developed with installed equipment and technology to December. Events during the year included: deliver sporting events in a cost effective manner. The year included good seasons for the Melbourne Vixens • Alison Moyet • London Grammar and the Collingwood Magpies and a premiership for the • Amway Japan Welcome • Love our Nation Melbourne United Basketball Club. Hisense Arena once Party (2 shows) again hosted gymnastics, cycling and dancesports and for • AO Team Rally (3 shows) • Melbourne United vs the first time this year, a darts event. Events during the • Beck Team China year included: • BHP Annual General • Melbourne Vixens v Swifts • Above & Beyond • Melbourne United Meeting 2017 (5 final series matches) • Celtic Woman • Melissa Etheridge & • A R Rahman Sheryl Crow • Melbourne Vixens • Collingwood Magpies • Australian Gymnastics • Niall Horan Championships (3 home matches) (3 home matches) (12 shows) • Migos • Cool Boys & The • Palo Alto Networks Cyber Security Summit 2018 • Austral Wheel Race • Paradigm Frontman “We are the Champions” Private Jet • Paw Patrol Live! “Great • Collingwood Magpies v • Planetshakers Tour Pirate Adventure” Thunderbirds Conference 2018 (6 shows) (4 shows) • Fall Out Boy • Disney On Ice Presents - • Placebo Frozen (17 shows) • Professional Bull Riders • FIBA World Cup Qualifiers (2 shows) • REA Kick Off Conference • Fast5 Netball World • RnB Fridays (2 shows) • Halsey • Rise Against Series 2017 (2 shows) • Russell Peters Live • Harlem Globetrotters • Royal Blood • G-Dragon • The Killers (3 shows) (2 shows) • Shanti Ek Khoj • G.E.M. Queen of Hearts • The Script World Tour • Imagine Dragons • Sigur Ros • Victorian State School (2 shows) • Grease - The Arena • Sounds of Light Concert Spectacular 2017 • Incubus Experience (3 shows) (2 shows) 2017 • J Cole • Harry Styles • Volleyball Nations League • Tash Sultana • International Federation (3 shows) • Joey & Hacken World • The Media Pad 2018 All Tour Australia 2018 of Gymnastics World Cup • Woolworths 25 Year Club Star Bash (4 shows) - 48th Annual Luncheon • Justice • The Vamps • Jerry Seinfeld Live • World Series of Darts • KC & The Sunshine Band, • WorldVentures “View” (3 shows) (3 shows) The Village People & (3 shows) Sister Sledge • Olympia Cheer & Dance • 72nd Australian • 2017 CrossFit Invitational Series (2 shows) DanceSport • LCD Soundsystem (2 shows) • Marinella & Antonis Championship (3 shows) • Little Mix (2 shows) Remos • Melbourne United (13 home matches)
7 MELBOURNE AND OLYMPIC PARKS TRUST REPORT OF OPERATIONS
Melbourne Park Function Centre Melbourne Park Function Centre patronage and utilisation in 2021, as part of the third stage of the Melbourne Park decreased in 2017/18 due to the impacts of the Redevelopment. redevelopment works at Rod Laver Arena. The venue is due The booking of events in this space have a long lead time, for demolition after the 2019 Australian Open. and the team is already out in the marketplace marketing The main focus for the year has been the design and the new venue. planning for the new function centre due to be opened
AAMI Park AAMI Park attracted more than 811,627 fans throughout • Melbourne Victory (8 home matches) the year, up from 689,106 the prior year. Congratulations • Melbourne Victory Champions Celebrations Victory to Melbourne Victory and Melbourne Storm on their • 2018 Qantas Wallabies v Ireland Test Match premiership titles. • Hyundai A-League Elimination Final: Melbourne City vs AAMI Park’s primary focus is on its rugby and football codes Brisbane Roar and ensuring that it continues to deliver a world class • Hyundai A-League Elimination Final: Melbourne Victory playing surface. The stadium is the home of the Melbourne vs Adelaide United Storm (rugby league), Melbourne Rebels (rugby union), • Liverpool v Manchester Legends Match Melbourne Victory and Melbourne City (football). It also regularly hosts national and international games which this • Matildas v China year included the Socceroos vs Thailand World Cup Qualifier, • Melbourne City (14 home matches) the 2018 Qantas Wallabies v Ireland Test Match and two • Melbourne Rebels (9 home matches) Rugby League World Cup events – Australia versus England • Melbourne Storm (11 home matches) and the Quarter Final between PNG and England. • Monster Jam 2017 (2 shows) AAMI Park is able to support its clubs by hosting a limited • Melbourne Victory (8 home matches) number of entertainment events between fixtures such • Melbourne Victory Champions Celebrations as Monster Jam and concerts. Fans were treated to two incredible concerts at the stadium this year. Australian • NRL Preliminary Final - Melbourne Storm v superstar SIA captivated her fans with her iconic voice, Brisbane Broncos while former Beatle and legendary music icon Sir Paul • NRL Qualifying Final - Melbourne Storm v Paramatta Eels McCartney delighted his fans with two energetic and • Paul McCartney in Concert packed shows. Events included: • Rugby League World Cup - Australia v England • 2018 Qantas Wallabies v Ireland Test Match • Rugby League World Cup - Quarter Final Sia in Concert • Asian Champions League (6 matches) • SIA in concert • Hyundai A-League Elimination Final: Melbourne City vs • Socceroos Fan Day Brisbane Roar • Socceroos v Thailand - World Cup Qualifier • Hyundai A-League Elimination Final: Melbourne Victory vs Adelaide United • WCC - Melbourne Storm v Leeds Rhinos • Liverpool v Manchester Legends Match • Matildas v China • Melbourne City (14 home matches) • Melbourne Rebels (9 home matches) • Melbourne Storm (11 home matches) • Monster Jam 2017 (2 shows)
8 MELBOURNE AND OLYMPIC PARKS TRUST REPORT OF OPERATIONS
Melbourne Park Redevelopment and other capital Sports development and community engagement improvements The Trust delivers on its broader public obligations in a The transformation of Melbourne Park continues, with number of ways. It delivers a public precinct that is an significant work undertaken during the year on Rod Laver important part of Melbourne’s open space which can be Arena. The focus each year is on ensuring the precinct is used by the public for recreational purposes. Sporting ready for the Australian Open and that impacts on operations and community organisations are supported by the Trust are minimised. Construction costs for the Melbourne Park providing preferential and affordable access to its venues. Redevelopment were $108 million for the year. It also provides direct support in the delivery of many of their activities. More than $19 million was also invested directly by the Trust in other capital works to improve and upgrade facilities and Local community organisations are assisted in the staging infrastructure during the year. Areas covered were: of events to raise funds or to support their constituents. • Melbourne Park precinct $4.4m – includes western Examples of community based events and activities supported during the year included: a range of activities tennis court light upgrades and creation of a new for Whitelion, Make A Wish Foundation and the Variety Club; Tennis World facility; Hisense Arena and AAMI Park held free public tours as part • Rod Laver Arena $8.6m – includes upgrades to the roof of the Open House Melbourne program; and AAMI Park lit up and sports lighting; in different colours to raise awareness for causes including Fight MND, Red Nose Day, Breast Cancer Network Australia • Hisense Arena $2.6m – includes upgrades to the and the State Emergency Services “WOW Day”. sports floor, sports lights and safety rails; Throughout the year, open spaces around the precinct are • Olympic Park Precinct $1.7m – includes upgrades to heavily used for public recreation including boot camps, themed lighting and LED parapet signage; running clubs and casual sporting activities. This year the • Equipment and Technology $2.1m – includes upgrades Trust also worked closely with Tennis Australia and funded to CCTV, WiFi and the event network. a new space for a gym, change rooms and club area to assist in the activation of the western court area outside of the Australian Open. Community Engagement In addition to the above activities, the Trust contributed $6.1m towards government sporting programs and Gosch’s Paddock activities. Gosch’s Paddock is an important part of Melbourne’s public recreational spaces and parkland areas and is heavily utilised by the public. It is also an important training space for AAMI Park tenant clubs; the Melbourne Football Club, Melbourne Victory, Melbourne Rebels and the Melbourne Storm. The Trust expends significant monies each year on replacing playing surfaces and maintaining and improving the parkland for both professional and public use. More than 800 planned club and community activities and events take place within the Olympic Park precinct.
9 MELBOURNE AND OLYMPIC PARKS TRUST OUR PARTNERS
The Trust would like to thank the following organisations for their support over the past year
Tenants Arena and Stadium Hirers Calibre Feasts Adrian Bohm Presents Melbourne City Football Club Collingwood Football Club Australian Dancing Society Melbourne Rebels Rugby Union Imaging @ Olympic Park Australian Rugby League Melbourne Storm Rugby Leage Melbourne Football Club Award Entertainment Global Melbourne United Basketball Club Melbourne Rebels BAPS Shri Swaminarayan Mandir Melbourne Victory Football Club Melbourne Storm Cameron Project Management National Rugby League Melbourne Victory Cheer & Dance Brands Netball Victoria (Melbourne Vixens) Olympic Park Sports Medicine Centre Chugg Touring and Events Netball Australia Tennis Australia Collingwood Football Club Palo Alto Networks Australia (Collingwood Magpies) Tennis Victoria Parade Touring CrossFit Inc Victorian Olympic Council PAOW Promotions Pty Ltd Cycling Victoria Planetshakers Ministries Venue Partners Department of Education and International Training Polux Technologies Australia AAMI Feld Entertainment Australia Professional Bull Riders Australia Adecco Football Federation of Australia REA Group Capricorn Stages and Rigging Frontier Touring Company Rugby League World Cup 2017 Delaware North Companies Australia Global Chinese Christian Unity Secret Sounds Microhire Federation Incorporated Select Touring MSS Security Gymnastics Australia Southern Cross Austereo O’Brien Catering Group Australia Hardware Corporation TEG Dainty St John’s Ambulance Harvest Rain TEG Live Tennis Australia Hotem Holding Pty Ltd Tennis Australia Ticketek Human Appeal International Australia The Media Pad IME Productions Australia The Wiggles Australia Juggernaut Entertainment Triumph Leisure Solutions Kojo Events Volleyball Australia Life Like Touring (Australia) Woolworths Limited Live Nation Australasia World Series of Darts LK Entertainment WorldVentures Marketing One World Entertainment
10 MELBOURNE AND OLYMPIC PARKS TRUST FINANCIAL INFORMATION SUMMARY
Five Year Financial Summary The following table summarises the financial result of the Trust for the year ended 30 June 2018. 2018 2017 2016 2015 2014 $’000 $’000 $’000 $’000 $’000 Income from transactions 111,689 94,452 97,143 91,391 92,133 Expenses from transactions 115,914 101,654 97, 079 90,713 88,564 Net result from transactions (4,225) (7,202) 64 678 3,569 Net result for the period (4,229) (19,996) 244 745 3,595 Net cash flow from operating activities 60,558 32,200 (14,692) 33,409 29,340 Total Assets 2,182,106 2,038,320 1,548,168 1,436,532 1,399,276 Total Liabilities 101,775 61,865 52,089 78,333 70,212
Comprehensive Operating Statement Expenses The net result from transactions for the year ended 30 June Total expenses from transactions, as defined in the financial 2018 was a deficit of $4.2 million (2017: $7.2 million deficit). statements, totalled $115.9 million (2017: $101.7 million). Earnings before interest, depreciation, asset write downs and sports development transfer, resulted in a $38.4 million Costs of goods sold/distributed and purchases of positive result being recorded, compared with $30.3 million services have increased by $6.7 million (14.8 per cent) in 2016/17. from the previous year, which can be attributed to the increase in revenue. Revenue Employee expenses have increased by $2.3 million, The comprehensive operating statement of the Trust for reflecting additional labour required to service increased the year ended 30 June 2018 reports total income from activity within the business and increases in salaries transactions of $111.7 million, which is an increase of consistent with VPS guidelines. $17.2 million (18.2 per cent) from the previous year. Depreciation and amortisation expense of $37.6 million The result is predominantly due to sales of goods and (2017: $32.5 million) have increased compared to services which increased by $17.1 million (18.4 per cent) the prior year primarily due to the capitalisation of from 2016/17. Increases in yields generated from the redevelopment assets. Australian Open as well as growth in yields and utilisation from our venues have assisted with this increase in revenue.
11 MELBOURNE AND OLYMPIC PARKS TRUST FINANCIAL INFORMATION SUMMARY
Balance Sheet Cash Flow Statement The balance sheet of the Trust as at 30 June 2018 reports The cash flow statement reports an increase of $51.8 million net assets of $2.08 billion (2017: $1.98 billion). in cash held (2017: $26.4 million increase). Total cash and cash equivalents as at 30 June 2018 is $146.0 million (2017: Assets $94.1 million). Cash flows from operating activities were Cash and cash equivalents have increased by $51.8 million. $60.6 million for the year (2017: $32.2 million). This increase can be attributed to an additional $34.7 Cash flows used in investing activities reflects assets million in cash held on behalf of customers in relation to purchased and expenditure on capital improvements, ticket sales for future events, whilst the remaining $17.1 most notably the Melbourne Park Redevelopment. million increase can be mainly attributed to the strong Purchases of non-financial assets totalled $116.8 financial result for 2017/18 and the timing of cash flows for million (2017: $88.3 million). expenditure incurred during the year which will be paid for in 2018/19. Cash flows from financing activities represent funds received from the Victorian Government towards the Property, plant and equipment and intangible assets Melbourne Park Redevelopment of $108.1 million (2017: have increased by $78.7 million. This increase reflects $82.5 million). asset additions from completed capital projects during the year, including redevelopment assets for Rod Laver Arena loading dock, back of house and artist areas. This was Statement of Changes in Equity partly offset by the depreciation expense for the year. The statement of changes in equity records a net increase Prepayments have increased by $12.3 million. This of $103.9 million to $2.08 billion. The movement in this increase can be mainly attributed to unspent funding statement represents the increase in contributions by relating to the Melbourne Park Redevelopment. owner (Victorian Government contribution towards the Liabilities Melbourne Park Redevelopment), partially offset by the current year result. Payables have increase by $3.4 million. This increase can be mainly attributed to increases in event settlements and accrued expenses. Other liabilities have increased by $36.2 million. This increase can be mainly attributed to an increase in funds held for ticket sales for future events (cash held on behalf of customers until the completion of an event).
12 MELBOURNE AND OLYMPIC PARKS TRUST GOVERNANCE
The Melbourne and Olympic Parks Act 1985 • To provide for the planning, development, promotion, management, operation and use of other sports, The Melbourne and Olympic Parks Trust (MOPT) was recreation and entertainment facilities and services in established on 5 October 1995 pursuant to the provisions Victoria. of the Melbourne and Olympic Parks Act 1985 (as amended). It was created by the merger of the National • To provide for the development, promotion, Tennis Centre Trust (established 13 Nov 1985) and management, operation and use of facilities and the Olympic Park Committee of Management (formed services for the parking of vehicles and other originally in 1909). The Act is jointly administered by necessary services to be used in conjunction with any the Premier of Victoria, the Honourable Daniel Andrews, of the facilities operated or managed by the Trust. and the Minister for Tourism, Sport and Major Events, the Honourable John Eren. • To provide for the management of Gosch’s Paddock by the Trust as a committee of management under the The Purpose of the Act: Crown Lands (Reserves) Act 1978. The purposes of the Act as outlined in Section 3 are: • To create a Melbourne and Olympic Parks Trust to Statement of Corporate Governance administer the National Tennis Centre, Olympic Park and certain other land and facilities for the purposes of Procedures have been established at the Trust and tennis, other sports, recreation and entertainment. executive management level, which are designed to safeguard the assets and interests of the Trust and to • To provide for the management and operation of the ensure integrity of reporting. The Trust acknowledges National Tennis Centre and Olympic Park. the need for and continued maintenance of the highest • To provide for the use and promotion of the National standards of corporate governance practice and ethical Tennis Centre and Olympic Park. conduct by all Trustees and employees of the Trust. • To provide for the development, promotion, management, operation and use of sports, recreation Trustees and entertainment facilities and services in Victoria Mr Russell Caplan (Chair) in addition to those at the National Tennis Centre and Olympic Park. Ms Jacinda Dixon Under the Act the Trust has the following primary functions: Mr Gary Clark (to 26 June 2018) • To accept appointment and act as a committee of Mr Will Fowles (to 30 June 2018) management of Crown lands. Mr Patrick Flannigan • To be responsible for the care, improvement, use and Ms Catherine Friday promotion of the National Tennis Centre and Olympic Park as facilities for tennis, other sports, recreation and Ms Jayne Hrdlicka entertainment. Ms Diana Nicholson • To operate the National Tennis Centre and Olympic Park Mr John Ribot-de-Bresac efficiently and effectively to obtain the best possible Mr Kenneth Roche AO use of the facilities. Ms Liberty Sanger • To provide planning for the operation of the National Tennis Centre and Olympic Park, which is coordinated Ms Emma Sherry (from 26 June 2018) between the two facilities. Ms Janice van Reyk (from 20 February 2018) • To be responsible for proper financial management of the National Tennis Centre and Olympic Park.
13 MELBOURNE AND OLYMPIC PARKS TRUST GOVERNANCE
People and Remuneration Committee Strategic Planning Committee The People and Remuneration Committee was established The Trust’s Strategic Planning Committee is established to to review and make recommendations to the Trust provide independent and expert advice to assist the Trust with regard to the policy requirements of the Victorian to discharge its strategic planning responsibilities. The Government and assist it in fulfilling the Trust’s purpose of the committee is to: obligations for good corporate governance in relation to • Monitor and inform the Trust of developments and the following areas: trends that may influence the Trust’s ability to • Senior executive remuneration, performance and effectively achieve its goals. succession planning • Oversee the development of the strategic plan. • Board operation and development. • Monitor implementation of the strategic plan. The members of the Committee during the year ended 30 • Review and recommend to the Trust for approval of June 2018 were: long-term business objectives and plan developed by Mr Patrick Flannigan (Chair) the management team. Mr Russell Caplan The Members of the Committee during the year ended Ms Diana Nicholson 30 June 2018 were: Mr John Ribot-de-Bresac Mr Russell Caplan (Chair) Ms Liberty Sanger Mr Patrick Flannigan Mr Will Fowles (to 30 June) Finance Audit and Risk Committee Mr John Ribot-de-Bresac The Trust has established a Finance Audit and Risk Committee to lead an oversight role in financial governance Executive Management and financial reporting matters. It is actively involved in: Chief Executive Officer and Accountable Officer, Mr Brian Morris • Monitoring financial management compliance issues, particularly in the identification of risk areas and the Chief Operating Officer, Mr Andrew Travis monitoring of associated rectification plans. Chief Financial Officer, Mr Travis Mardling • Reviewing the integrity of reporting and internal control Director of HR Strategy, Ms Tania Hannath structures • Overseeing the financial performance of the entity • Monitoring and reporting on all aspects of risk. The Committee meets monthly or more often as required and makes recommendations to the Trust on specific issues. The Members of the Committee during the year ended 30 June 2018 were: Ms Catherine Friday (Chair) Mr Russell Caplan Ms Jacinda Dixon Ms Diana Nicholson Mr Kenneth Roche AO All Finance, Audit and Risk Committee members are independent from management.
14 MELBOURNE AND OLYMPIC PARKS TRUST GOVERNANCE
CEO Direct Reports
Chief Executive Officer Brian Morris
Corporate Manager Manager Chief Financial Chief Operating Communications Director HR Director Information Strategy and Officer Officer Manager Strategy Infrastructure Technology Systems Travis Mardling Andrew Travis Enna Tania Hannath Clint Walker VJ Borgohain Ben Goodwin Giampiccolo
Occupational Health and Safety (OH&S) • 101 designated work group toolbox meetings and 11 Health and Safety Committee meetings were held. M&OP provides and maintains an environment that is • 416 hazards were identified, reported and controlled, safe for all who visit and work within the precinct and those who may be affected by its business operations. an increase of 254% from the previous period. M&OP eliminates risks to health and safety, and where • Injuries rated moderate and above decreased by 42%. elimination is not reasonably achievable, to reduce risks to • 11 internal health and safety audits were conducted. health and safety so far as is reasonably practicable. A full copy of the Trust’s Health and Safety policy is This is achieved by: available on M&OP’s website – www.mopt.com.au • Promoting a strong safety culture and integrating safety into all aspects of M&OP’s activities. Sustainability and Environment • Measuring and reporting on objectives and targets which control risk activities, increasing awareness M&OP is committed to being an environmentally of health and safety, and preventing injuries and responsible organisation and is working to reduce water, illnesses. waste and energy consumption in its efforts to deliver benefits to the people of Victoria. • Providing sufficient resources to plan and maintain a safe, healthy and supportive work environment. As part of the Melbourne Park Redevelopment, M&OP is the custodian of two LEED Gold certified buildings – Margaret • Maintaining physical infrastructure and public spaces Court Arena and the National Tennis Centre. Margaret Court in a condition that ensures they are safe to use. Arena is the first sport and entertainment arena in Australia to receive the certification. LEED certification will continue To support this commitment, M&OP maintains certification to be a goal throughout the Melbourne Park redevelopment to Australian / New Zealand Standard 4801 – Occupational building program. Health and Safety Management Systems (AS4801). This achievement is underpinned by M&OP’s leadership The LEED rating system, developed by the U.S. Green driven safety culture, which encourages collaboration, Building Council (USGBC), is the program for buildings, consultation and ownership to occur at all organisational homes and communities that are designed, constructed, levels. M&OP’s commitment to continuous improvement is maintained and operated for improved environmental and reflected in our Health and Safety Policy, which highlights human health performance. More than 154 countries are the accountabilities shared across our workforce. currently participating in LEED. Key achievements for the year included: LEED, which stands for Leadership in Energy and • M&OP’s Occupational Health and Safety System Environmental Design, recognises best-in-class building strategies and practices. In order to receive LEED was audited and certification was maintained to the certification, building projects must satisfy prerequisites requirements of AS4801. and earn points to achieve different levels of certification • 104 workplace safety inspections were undertaken and it is the most internationally recognised certification covering all designated workgroup areas across the of its kind. precinct.
15 MELBOURNE AND OLYMPIC PARKS TRUST GOVERNANCE
Workforce Data
Public Sector values and employment principles Melbourne and Olympic Park Trust is committed to two codes issued by the Public Sector Standards Commissioner (PSSC), being the Director Codes of Conduct and Guidance Notes and the Code of Conduct of Victorian Public Sector employees. Enterprise Based Agreements are in place and the Trust continues its ongoing commitment to the PSSC standards on equal opportunity, fair and reasonable treatment, merit in employment and reasonable avenues of redress. Comparative Workforce Data Melbourne and Olympic Parks Trust employed 101 full time and part time staff as at 30 June 2018 (2017:100). The number of Full Time Equivalent (FTE) staff at 30 June 2018 was 97 (2017: 96). The number of fixed term and casual employees at 30 June 2018 was 609 (2017: 554) and a large number of contractors provided by our key partners also contribute to M&OP’s workforce (Adecco, Capricorn Stages and Rigging, Delaware North Companies, MSS Security, O’Brien Catering Group, St John Ambulance and Ticketek). The breakdown of staff is as follows: June 2018 Ongoing Employees Total Full time Part time Fixed Term Casual (Headcount) (Headcount) (Headcount) FTE (Headcount) (Headcount)
Male 380 44 11 54 12 313 Female 330 36 10 43 6 278 Executive 4 0 0 0 4 0 Administration & Support Staff 73 56 8 61 9 0 Event & Venue Staff 633 24 13 36 5 591 Total Employees 710 80 21 97 18 591
June 2017 Ongoing Employees Total Full time Part time Fixed Term Casual (Headcount) (Headcount) (Headcount) FTE (Headcount) (Headcount)
Male 350 48 9 56 11 282 Female 304 34 9 40 6 255 Executive 6 0 0 0 6 0 Administration & Support Staff 77 61 8 66 8 0 Event & Venue Staff 571 21 10 30 3 537 Total Employees 654 82 18 96 17 537
16 MELBOURNE AND OLYMPIC PARKS TRUST GOVERNANCE
M&OP Diversity & Inclusion Statement There are six priority areas that M&OP is focused on Melbourne and Olympic Parks is committed to actively to foster diversity and promote an inclusive culture. fostering diversity and promoting inclusion within its These are: workforce to ensure that it delivers services that meet the needs of all Victorians. • Achieving gender equality in employment, remuneration and career development. M&OP’s aim as an organisation is to ensure that it reflects the diversity of the Victorian community within • Creating a welcoming culture and an environment free its workforce and to ensure that the Melbourne and from discrimination, harassment or bullying. Olympic Parks precinct is welcoming, safe and inclusive. • Providing equal accessibility and inclusion for persons M&OP’s services are delivered by individuals and teams of all abilities in an inclusive workplace with resources from many different organisations. All persons who work at M&OP, whether directly employed or employed by a and support to enable employees with disabilities to business partner, are expected to model respectful and contribute at their best. inclusive behaviours in the workplace and in their service • Equipping leaders with the skills and capabilities to to customers and the community. manage diverse teams and create collaborative and This means that: inclusive work environments. • Every person working for M&OP, no matter who • Embedding new ways of working that promote work-life employs them, feels comfortable in bringing their whole balance and support flexible work practices appropriate self to work and are provided with the opportunity to to our business environment. thrive in an accepting and supportive environment. • Measuring and communicating progress against • Our clients, guests and other visitors to our precinct appropriate targets. are treated with dignity and respect by every individual who works at Melbourne and Olympic Parks.
17 MELBOURNE AND OLYMPIC PARKS TRUST OTHER DISCLOSURES
Victorian Industry Participation Policy The Victorian Industry Participation Policy Act 2003 requires departments and public sector bodies to report on the implementation of the Victorian Industry Participation Policy (VIPP). Departments and public sector bodies are required to apply VIPP in all procurement activities valued at $3 million or more in metropolitan Melbourne and for statewide projects, or $1 million or more for procurement activities in regional Victoria. There were no projects undertaken by the Trust in 2017/18 to which the VIPP applied.
Government Advertising Expenditure There were no advertising campaigns that triggered the disclosure threshold of $100,000 in the 2017/18 financial year.
Consultancy Expenditure Details of consultancies over $10,000
Consultant Purpose of Start Date End Date Total Expenditure Future Consultancy 2017/18 Commitments (excluding GST) Business Cyber Verizon Aug 2017 Nov 2017 $53,984 Nil Security Assessment Hostile Vehicle Arup Oct 2017 March 2018 $43,365 Nil Mitigation Advice AAMI Park Hatamoto Infrastructure April 2018 May 2018 $17,460 Nil Security Review Operational Security Hatamoto July 2017 July 2017 $12,572 Nil Review
Details of consultancies less than $10,000 Number: Nil Total Amount: Nil
Information and Communication Technology Expenditure For the 2017-18 reporting period, the Trust had a total ICT expenditure of $4,384,000 with the details shown below.
($ thousand) Business As Usual (BAU) ICT Non-Business As Usual (non BAU) Operational Capital expenditure expenditure ICT expenditure expenditure (Total) (Total = Operational expenditure and Capital Expenditure) 1,613 2,771 119 2,652
ICT expenditure refers to the Trust’s costs in providing business enabling ICT services. It comprises Business As Usual (BAU) ICT expenditure and Non Business As Usual (Non BAU) ICT expenditure. Non BAU ICT expenditure relates to extending or enhancing the Trust’s current ICT capabilities. BAU ICT expenditure is all remaining ICT expenditure which primarily relates to ongoing activities to operate and maintain the current ICT capability.
18 MELBOURNE AND OLYMPIC PARKS TRUST OTHER DISCLOSURES
Freedom of Information Compliance with the Protected Disclosure The Freedom of Information Act 1982 allows the public Act 2012 a right of access to documents held by Melbourne and Melbourne and Olympic Parks is committed to the Olympic Parks Trust. For the 12 months ending June 2018, aims and objectives of the Protected Disclosure Act. It the Trust received two Freedom of Information request. recognises the value of transparency and accountability The Chief Financial Officer is the contact officer in relation to in its administrative and management practices, and all Freedom of Information requests. Access to documents supports the making of disclosures that reveal improper may be obtained through written request to the Chief conduct. It does not tolerate improper conduct by the Financial Officer, addressed as follows: organisation, its employees, officers or members, nor the taking of detrimental action in reprisal against those who Freedom of Information come forward to disclose such conduct. According to the Melbourne and Olympic Parks Trust Independent Broad-based Anti-corruption Commission GPO Box 4611, Melbourne VIC 3001 (“IBAC”), M&OP is not permitted to receive disclosures made Requests can also be lodged via under the Act. Therefore, if you wish to make a disclosure email to [email protected]. about M&OP, its officers, members or employees, you will All requests must be accompanied by the application fee of need to make that disclosure directly to the IBAC. If M&OP $28.40 but may be waived in certain circumstances) and believes a disclosure may be a protected disclosure made must provide such information concerning the document in accordance with the Act, it will ask you to make that as is reasonably necessary to enable M&OP to identify disclosure to the IBAC. The IBAC will deal with the disclosure. the document. Charges may also apply once documents Procedures in relation to the Protected Disclosure Act 2012 have been processed and a decision on access is made; for are available on the M&OP website. example photocopying, search and retrieval charges. Compliance with Disability Act 2006 Compliance with the Building Act 1993 M&OP is committed to providing equitable, dignified access The Trust complies with the relevant guidelines, pursuant to to goods and services to premises used by the public. A Section 220 of the Building Act 1993. key focus of the extensive redevelopment of Melbourne Park has been the inclusion of universal design principles. This proactive work ensures the design of new buildings Competitive Neutrality Policy or upgraded infrastructure are centred around improved access for all Victorians. The Trust regularly reviews whether its activities are subject to the requirements of the National Competition Throughout the course of this financial year, M&OP Policy, including compliance with the requirements of the continued to implement its Diversity and Inclusion Plan; policy statement ‘Competitive Neutrality Policy Victoria’, setting short, medium and long term goals to improve the and takes necessary action to implement competitive guest experience for people with a disability. neutrality measures where required. The plan brings to life one of M&OP’s vision to be a thriving precinct – every person, every event, every time, and sets out strategies and actions for accessible and inclusive systems that allow for a seamless customer experience. The plan aligns with the National Disability Strategy 2010- 2020, and fulfils legislative obligations under the Victorian Disability Act 2006, the Victorian Equal Opportunity Act 1995 and the Commonwealth Disability Discrimination Act 1995. A copy of the plan is available at www.mopt.com.au
19 MELBOURNE AND OLYMPIC PARKS TRUST OTHER DISCLOSURES
Additional departmental information Melbourne & Olympic Parks Trust Financial available on request Management Compliance Attestation Relevant information as detailed in Financial Reporting Statement Direction 22H ‘Standard Disclosures in the Report of I, Russell Caplan, on behalf of the Responsible Body, Operations’ is retained and is available on request, subject certify that the Melbourne and Olympic Parks Trust has to the provisions of the Freedom of Information Act 1982. complied with the applicable Standing Directions of the The information is available on request from: Minister for Finance under the Financial Management Act Melbourne and Olympic Parks Trust 1994 and Instructions. Phone: (03) 9286 1600 Email: [email protected]
Compliance with DataVic Access Policy Consistent with the DataVic Access Policy issued by the Victorian Government in 2012, all data tables included in this Annual Report will be available at www.data.vic.gov.au Russell Caplan in electronic readable format. Chair Melbourne and Olympic Parks Trust Gosch’s Paddock Gosch’s Paddock remained open at all times throughout the 2017/18 year.
20 MELBOURNE AND OLYMPIC PARKS TRUST MELBOURNE & OLYMPIC PARKS TRUST FINANCIAL YEAR ENDED 30 JUNE 2018
FINANCIAL STATEMENTS
Comprehensive Operating Statement Balance Sheet Statement of Changes in Equity Cash Flow Statement Notes to Financial Statements
21 MELBOURNE AND OLYMPIC PARKS TRUST COMPREHENSIVE OPERATING STATEMENT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
NOTES 2018 2017 $’000 $’000
INCOME FROM TRANSACTIONS Sales of goods and services (2a) 110,016 92,929 Interest 1,058 907 Other Income (2b) 615 616 TOTAL INCOME FROM TRANSACTIONS 111,689 94,452
EXPENSES FROM TRANSACTIONS Cost of goods sold/distributed (3a) 16,614 14,375 Purchase of services (3b) 27,130 22,241 Employee expenses (3c) 20,059 17,74 8 Depreciation & amortisation (8) 37,577 32,462 Other operating expenses (3d) 8,434 8,828 Sports Development Transfer (3e) 6,100 6,000 TOTAL EXPENSES FROM TRANSACTIONS 115,914 101,654
NET RESULT FROM TRANSACTIONS (NET OPERATING BALANCE) (4,225) (7,202)
Other economic flows included in net result Net gain/(loss) on non-financial assets (4a) 2 (12,737) Net gain/(loss) arising from revaluation of long service liability (4b) (6) (57) Total other economic flows included in net result (4) (12,794)
Net result (4,229) (19,996)
OTHER COMPREHENSIVE INCOME Items that will not be reclassified to the net result Change in Asset Revaluation Reserve (8) - 417,873 Total other comprehensive income - 417,873
Comprehensive result (4,229) 397,877
The above comprehensive operating statement should be read in conjunction with the accompanying notes to the financial statement.
22 MELBOURNE AND OLYMPIC PARKS TRUST BALANCE SHEET FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
NOTES 2018 2017 $’000 $’000
ASSETS
FINANCIAL ASSETS Cash and cash equivalents (5) 145,956 94,120 Receivables (6) 4,466 3,525 TOTAL FINANCIAL ASSETS 150,422 97,645
NON-FINANCIAL ASSETS Prepayments (7) 37, 478 25,140 Property, plant and equipment and intangible assets (8) 1,994,206 1,915,535 TOTAL NON-FINANCIAL ASSETS 2,031,684 1,940,675
TOTAL ASSETS 2,182,106 2,038,320
LIABILITIES Payables (9) 13,490 10,073 Provisions (10) 3,585 3,298 Other liabilities (11) 84,700 48,494 TOTAL LIABILITIES 101,775 61,865
NET ASSETS 2,080,331 1,976,455
EQUITY Accumulated surplus/(deficit) 179,558 183,787 Reserves 823,184 823,184 Contributed capital 1,077,589 969,484 NET WORTH 2,080,331 1,976,455
Commitments for expenditure (13) Contingent assets and contingent liabilities (14/15)
The above balance sheet should be read in conjunction with the accompanying notes to the financial statements.
23 MELBOURNE AND OLYMPIC PARKS TRUST STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
NOTE Physical Asset Accumulated Contributions Total Revaluation Surplus by Owner $’000 Surplus $’000 $’000 $’000
Balance at 30 June 2016 405,311 203,784 886,984 1,496,079
Net Result for the Year - (19,997) - (19,997)
Transactions with owners in their - - 82,500 82,500 capacity as owners
Revaluation of Assets (8) 417,873 - - 417,873
Balance at 30 June 2017 823,184 183,787 969,484 1,976,455
Net Result for the Year - (4,229) - (4,229)
Transactions with owners in their - - 108,105 108,105 capacity as owners
Revaluation of Assets (8) - - - -
Balance at 30 June 2018 823,184 179,558 1,077,589 2,080,331
24 MELBOURNE AND OLYMPIC PARKS TRUST CASH FLOW STATEMENT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
NOTES 2018 2017 $’000 $’000
CASH FLOWS FROM OPERATING ACTIVITIES
RECEIPTS Receipts from customers 92,537 87,102 Customer receipts on behalf of suppliers 227,253 153,798 Interest received 1,058 907 Goods and Services Tax received from the ATO 15,432 6,345 Other Receipts 615 616 TOTAL RECEIPTS FROM OPERATING ACTIVITIES 336,895 248,768
PAYMENTS Payments to suppliers and employees (67,958) (68,468) Payments to suppliers on behalf of customers (192,575) (132,535) Goods and Services Tax paid to the ATO (9,704) (9,561) Payments to Government (Sports Development Transfer) (6,100) (6,000) TOTAL PAYMENTS FROM OPERATING ACTIVITIES (276,337) (216,564)
NET CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES (17b) 60,558 32,200
CASH FLOWS FROM INVESTING ACTIVITIES Payments for non-financial assets (116,829) (88,324) Receipts on sale of non-financial assets 2 33
NET CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES (116,827) (88,291)
CASH FLOWS FROM FINANCING ACTIVITIES Receipts from Government (capital) 108,105 82,500
NET CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES 108,105 82,500
Net increase/(decrease) in cash and cash equivalents 51,836 26,409
Cash and cash equivalents at the beginning of the financial year 94,120 67,708
CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR (17a) 145,956 94,120
The above cash flow statement should be read in conjunction with the accompanying notes to the financial statements.
25 MELBOURNE AND OLYMPIC PARKS TRUST NOTES TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: (a) Statement of Compliance These general-purpose financial statements have been prepared • Level 1 – Quoted (unadjusted) market prices in active markets in accordance with the Financial Management Act 1994 (FMA), for identical assets or liabilities; applicable Australian Accounting Standards (AAS), which includes the Australian accounting standards issued by the Australian Accounting • Level 2 – Valuation techniques for which the lowest level input Standards Board (AASB). In particular, they are presented in a that is significant to the fair value measurement is manner consistent with the requirements of AASB 1049 Whole of directly or indirectly observable; and Government and General Government Sector Financial Reporting. • Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the unobservable. concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported. For the purpose of fair value disclosures, the Trust has determined classes of assets and liabilities based on the nature, To gain a better understanding of the terminology used in this report, characteristics and risks of the asset or liability and the level of the a glossary of terms and style conventions can be found in Note 24. fair value hierarchy as explained above.
These annual financial statements were authorised for issue by the In addition, the Trust determines whether transfers have occurred Trustees on 29 August 2018. between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value (b) Basis of accounting preparation and measurement measurement as a whole) at the end of each reporting period. The accrual basis of accounting has been applied in the preparation of these financial statements whereby assets, liabilities, equity, The Valuer-General Victoria (VGV) is the Trust’s independent income and expenses are recognised in the reporting period to valuation agency. VGV has utilised the services of Napier & which they relate, regardless of when cash is received or paid. Blakeley, a third party valuer to determine fair value of the Trust’s assets. The Trust’s assets were independently revalued at 30 June Judgements, estimates and assumptions are required to be made 2017 as required by the Financial Management Act 1994 and was about the carrying values of assets and liabilities that are not conducted by Napier & Blakeley on behalf of the Valuer-General readily apparent from other sources. The estimates and associated Victoria who have provided replacement cost and depreciated assumptions are based on professional judgements derived from replacement cost on the inspected properties (Rod Laver Arena historical experience and various other factors that are believed to and surrounding grounds, Hisense Arena, AAMI Park and Holden be reasonable under the circumstances. Actual results may differ Centre). Works in Progress relating to the redevelopment have not from these estimates. been included in the revaluation.
The estimates and underlying assumptions are reviewed on an The Trust, in conjunction with VGV (and Napier & Blakely), monitors ongoing basis. Revisions to accounting estimates are recognised changes in the fair value of each asset and liability through in the period in which the estimate is revised if the revision affects relevant data sources to determine whether revaluation is required. only that period or in the period of the revision, and future periods if the revision affects both current and future periods. Judgements In compliance with FRD 103F, in the year ended 30 June 2018, the and assumptions made by management in the application of Trust’s management conducted an annual assessment of the fair AASs that have significant effects on the financial statements and value of land and buildings. To facilitate this, management obtained estimates relate to: from the Department of Treasury and Finance the Valuer-General Victoria indices for the financial year ended 30 June 2018. • the fair value of land, buildings, infrastructure, plant and equipment, (refer to Note 1(k)); and The indexed value was then compared to individual assets written down book value as at 30 June 2018 to determine the • assumptions for employee benefit provisions based on likely change in their fair values. As a result of this analysis, there was tenure of existing staff, patterns of leave claims, future salary no material financial impact on change in fair value of property, movements and future discount rates (refer to Note 1(m)) plant, and equipment.
Consistent with AASB 13 Fair Value Management, Melbourne These financial statements are presented in Australian dollars, the and Olympic Parks Trust (the Trust) determines the policies and functional and presentation currency of the Trust. procedures for recurring fair value measurements for property, plant and equipment, in accordance with the requirements of AASB The accounting policies set out below have been applied in 13 and the relevant Financial Reporting Directions. preparing the financial statements for the year ended 30 June 2018 and the comparative information presented for the year All assets and liabilities for which fair value is measured or ended 30 June 2017. disclosed in the financial statements are categorised within the
26 MELBOURNE AND OLYMPIC PARKS TRUST NOTES TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
(c) Reporting entity The financial statements cover the Trust as an individual reporting Balance sheet entity. The Trust is a government agency of the State of Victoria, Assets and liabilities are presented in liquidity order with assets established pursuant to the provisions of the Melbourne and aggregated into, financial assets and non-financial assets. Olympic Parks Act 1985. Current and non-current assets or liabilities (those expected to be recovered or settled beyond 12 months) are disclosed in the Its principal address is: notes, where relevant.
Melbourne and Olympic Parks Trust Cash held on behalf of customers represents cash received for Batman Avenue event ticket sales which is held at bank from the time tickets are Melbourne VIC 3001 purchased and paid out to the hirer after the event has taken place. A corresponding liability to customers is also held and included within other liabilities. Objectives and funding The Melbourne and Olympic Parks Act 1985 outlines that the Cash flow statement purpose of the Melbourne and Olympic Parks Trust (M&OP) Cash flows are classified according to whether or not they arise is to administer, manage and promote the use of Melbourne from operating activities, investing activities, or financing activities. and Olympic Parks for the purposes of tennis, other sports, This classification is consistent with requirements under AASB 107 entertainment and recreation. Statement of cash flows.
The Trust in its planning delivers on this purpose by ensuring that For cash flow statement presentation purposes, cash and cash the precinct is: equivalents.
• Accessible, well utilised and valued by Victorians Statement of changes in equity The statement of changes in equity presents reconciliations of • Recognised as being of international standing for tennis, non-owner and owner changes in equity from opening balance at sport and entertainment the beginning of the reporting period to the closing balance at the • Supports Victoria’s broader sport, tourism and major events end of the reporting period. It also shows separately changes due strategies; and to amounts recognised in the ‘Comprehensive result’ and amounts recognised in ‘Other economic flows – other movements in equity’ • Financially sustainable. related to ‘Transactions with owner in its capacity as owner’.
(d) Scope and presentations of financial statements (e) Events after reporting date Assets, liabilities, income or expenses arise from past Comprehensive operating statement transactions or other past events. Where the transactions The comprehensive operating statement comprises three result from an agreement between the Trust and other parties, components, being ‘net result from transactions’ (or termed as the transactions are only recognised when the agreement is ‘net operating balance’), ‘other economic flows included in net irrevocable at or before the end of the reporting period. result’, as well as ‘other economic flows – other comprehensive income’. The sum of the former two represents the net result. Adjustments are made to amounts recognised in the financial statements for events which occur after the reporting period and The net result is equivalent to profit or loss derived in accordance before the date the financial statements are authorised for issue, with AASs. where those events provide information about conditions which existed in the reporting period. Note disclosure is made about ‘Other economic flows’ are changes arising from market events between the end of the reporting period and the date the remeasurements. They include: financial statements are authorised for issue where the events relate to conditions which arose after the end of the reporting • gains and losses from disposals of non-financial assets; period and which may have a material impact on the results of subsequent reporting periods. • revaluations and impairments of non-financial physical and intangible assets; (f) Goods and Services Tax (GST) • revaluation of long service leave liability Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from This classification is consistent with the whole of government the taxation authority. In this case it is recognised as part of the reporting format and is allowed under AASB 101 Presentation of cost of acquisition of the asset or as part of the expense. Financial Statements. Receivables and payables are stated inclusive of the amount of Refer to Note 24 Glossary for the definitions of ‘net result from GST receivable or payable. The net amount of GST recoverable transactions, ‘other economic flows included in net result’ and from, or payable to, the taxation authority is included with other ‘other economic flows – other comprehensive income’. receivables or payables in the balance sheet.
27 MELBOURNE AND OLYMPIC PARKS TRUST NOTES TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
Cash flows are presented on a gross basis. The GST components capitalise assets valued over $5,000, whilst assets of less than of cash flows arising from investing or financing activities which $5,000 in value are expensed immediately. (2017: $5,000) are recoverable from, or payable to the taxation authority, are The following are typical estimated useful lives for different asset presented as operating cash flows. classes for both current and prior years: (g) Income from transactions Income is measured at the fair value of the consideration received Asset Class Useful Life or receivable. Amounts disclosed as income are net of returns, trade allowances and duties and taxes. 2018 2017 Buildings 50 – 70 years 50 – 70 years Sale of goods and services Sale of goods and services is recognised upon delivery of the Plant & Equipment 5 - 30 years 5 - 25 years goods and services to the customer and when the Trust gains Motor Vehicles 5 years 5 years control of the underlying assets. This includes income from catering and merchandising sales and rental income from tenants Intangible Assets 5 years 5 years in the buildings on the precinct which is recognised for the period in which it relates. The residual value and useful life of the assets are reviewed annually. Interest Interest income is recognised on a time proportionate basis that Other operating expenses takes into account the effective yield on the financial asset. Other operating expenses generally represent the day-to-day running costs incurred in normal operations and are recognised (h) Expenses from transactions as an expense in the reporting period in which they are incurred. Payments to third parties are recognised as an expense in the reporting period in which they are paid or are payable. Government financial transfers Government financial transfers represents payment made by the Cost of goods sold/distributed Trust to the Government for support of sport and recreation programs. Purchase costs of goods sold/distributed are recognised as an expense in the reporting period in which they are incurred. (i) Other economic flows included in the net result Net gain/(loss) on non-financial assets Purchase of services Net gain/(loss) on non-financial assets and liabilities includes Purchase of services are recognised as an expense in the realised and unrealised gains and losses as follows: reporting period in which they are incurred. (i) Net gain/(loss) on disposal of non-financial assets Employee expenses Any gain or loss on disposal of non-current assets is These expenses include all forms of considerations given by the recognised at the date control of the asset is passed to Trust in exchange for service rendered by employees or for the the buyer and is determined after deducting from the termination of employment. This includes wages and salaries, proceeds the carrying value of the asset at that time. fringe benefits tax, leave entitlements, redundancy payments and Disposals will also include any assets written-off and/ WorkCover premiums. or no longer available for use.
Superannuation (ii) Impairment of non-financial assets The amount recognised in the comprehensive operating All of the Trust’s assets are assessed annually for statement is the employer contributions for members of defined indications of impairment. contribution superannuation plans that are paid or payable during the reporting period. If there is an indication of impairment, the assets concerned are tested as to whether their carrying value Details of the funds which the Trust made superannuation exceeds their possible recoverable amount. Where contributions to during the year are disclosed in Note 22. an asset’s carrying value exceeds its recoverable amount, the difference is written off by a charge to the Depreciation and amortisation comprehensive operating statement except to the extent In compliance with Australian Accounting Standard AASB116 that the write-down can be debited to an asset revaluation Property, Plant and Equipment, depreciation and amortisation has reserve amount applicable to that class of asset. been charged on all fixed assets and capital works developments, with the exception of Land. It is deemed that, in the event of the loss of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to The provisions for depreciation are made using the straight-line the contrary has been made. The recoverable amount method, at rates appropriate to the estimated useful life to the of most major assets is measured at the higher of Trust of each individual asset. Estimates of the remaining useful the depreciated replacement cost and fair value less lives for all assets are reviewed annually and range from greater costs to sell. than zero up to one hundred and ten years. The Trust’s policy is to
28 MELBOURNE AND OLYMPIC PARKS TRUST NOTES TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
The depreciated replacement cost is the current (k) Assets replacement cost of an asset less, where applicable, All assets controlled by the Trust are reported in the balance sheet. accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expired Cash and cash equivalents future economic benefits of the asset. Cash and cash equivalents, comprise cash on hand and cash at bank, deposits at call and those highly liquid investments with an Net gain/(loss) arising from revaluation of long service leave original maturity of three months or less, which are held for the liability purpose of meeting short term cash commitments rather than Net gain/(loss) from the revaluation of long service leave for investment purposes, and which are readily convertible to liability arises due to changes in the bond interest rates; known amounts of cash and are subject to an insignificant risk of changes in value. (j) Financial instruments Financial instruments arise out of contractual agreements that Receivables give rise to a financial asset of one entity and a financial liability Receivables consist of: or equity instrument of another entity. Due to the nature of the • statutory receivables, which include predominantly amounts Trust’s activities, certain financial assets and financial liabilities owing from the Victorian Government and GST input tax arise under statute rather than a contract. Such financial assets credits recoverable; and and financial liabilities do not meet the definition of financial • contractual receivables, which include mainly debtors in instruments in AASB 132 Financial Instruments: Presentation. relation to goods and services and accrued investment For example, statutory receivables arising from taxes, fines and income. penalties do not meet the definition of financial instruments as they do not arise under contract. Receivables that are contractual are classified as financial instruments. Statutory receivables are not classified as financial Where relevant, for note disclosure purposes, a distinction is made instruments. between those financial assets and financial liabilities that meet the definition of financial instruments in accordance with AASB 132 A provision for doubtful receivables is made when there is and those that do not. objective evidence that the debts will not be collected. Bad debts are written off when identified. The following refers to financial instruments unless otherwise stated. Property, Plant and Equipment Categories of non-derivative financial instruments Land, buildings and plant and equipment are recognised initially at cost and subsequently measured at fair value less Loans and receivables accumulated depreciation and impairment. Loans and receivables are financial instrument assets with fixed and determinable payments that are not quoted on an active Revaluations of non-current physical assets market. These assets are initially recognised at fair value plus Non-current physical assets measured at fair value are revalued any directly attributable transaction costs. Subsequent to initial in accordance with the new FRD 103F issued by the Minister measurement, loans and receivables are measured at amortised for Finance. A full revaluation occurs at least every five years, cost using effective interest method, less any impairment. based on the asset’s government purpose classification, but may occur more frequently if fair value assessments indicate material Loans and receivables category includes cash and cash changes in values. Independent valuers are used to conduct equivalents (refer to Note 1 (k)), term deposits with maturity these scheduled revaluations and any interim revaluations are greater than three months, trade receivables, loans and other determined in accordance with the requirements of the FRDs. receivables, but not statutory receivables. Net revaluation increases (where the carrying amount of a class Financial liabilities amortised at cost of assets is increased as a result of a revaluation) are recognised Financial instrument liabilities are initially recognised on the in ‘other economic flows – other comprehensive income’, and date they originate. They are initially measured at fair value accumulated in equity under the asset revaluation surplus. plus any directly attributable transaction costs. Subsequent to However, the net revaluation increase is recognised in the net initial recognition, these financial instruments are measured at result to the extent that it reverses a net revaluation decrease amortised cost with any difference between the initial recognised in respect of the same class of property, plant and equipment amount and the redemption value being recognised in profit and previously recognised as an expense (other economic flows) in loss over the period of the interest-bearing liability, using the the net result. effective interest rate method. Net revaluation decrease is recognised in ‘other economic Financial instrument liabilities measured at amortised cost flows – other comprehensive income’ to the extent that a credit include all of the Trusts contractual payables, deposits held and balance exists in the asset revaluation surplus in respect of the advances received, and interest-bearing arrangements other than same class of property, plant and equipment. Otherwise, the those designated at fair value through profit or loss. net revaluation decreases are recognised immediately as other economic flows in the net result. The net revaluation decrease recognised in ‘other economic flows – other comprehensive
29 MELBOURNE AND OLYMPIC PARKS TRUST NOTES TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
(k) Assets (continued) • Nominal value – if the Trust expects to wholly settle income’ reduces the amount accumulated in equity under the within 12 months; or asset revaluation surplus. • Present Value – if the Trust does not expect to wholly settle within 12 months. Revaluation increases and decreases relating to individual assets in a class of property, plant and equipment, are offset against (ii) Long Service Leave one another in that class but are not offset in respect of assets in A liability for long service leave is recognised, and is different classes. The asset revaluation surplus is not transferred measured as the present value of expected future payments to accumulated funds on derecognition of the relevant asset. to be made in respect of services provided by employees up to the reporting date. Consideration is given to expected (l) Intangible Assets future wage and salary levels, experience of employee Intangible assets represent identifiable non-monetary assets departures and period of service. without physical substance. Intangible assets are initially recognised at cost. Cost incurred subsequent to initial acquisition All unconditional vested long service leave representing are capitalised when it is expected that additional future 7 years or greater of continuous service is disclosed economic benefits will flow to the Trust. in accordance with AASB 101 Presentation of Financial Statements, as a current liability. This recognition is Other determined even though the Trust does not expect to settle Prepayments the liability within 12 months because it will not have the Represent payments in advance of receipts of goods and services unconditional right to defer the settlement of the entitlement or that part of expenditure made in one accounting period should an employee take leave within 12 months. Liability covering a term extending beyond that period. for long service leave (LSL) is recognised in the provision for employee benefits. (m) Liabilities Payables The components of this current LSL liability are measured at: Payables consist of: – Present value – component that the Trust does not • contractual payables, such as accounts payable, and expect to wholly settle within 12 months; and unearned income including deferred income from concession – Nominal value – component that the Trust expects to notes. Accounts payable represent future payments in respect wholly settle within 12 months. of the purchase of those goods and services; • liabilities for goods and services provided to the Trust prior Non-current liability – conditional LSL (representing less to the end of the financial year that are unpaid, and arise than seven years of continuous service for staff) is disclosed when the Trust becomes obliged to make future payments in as a non-current liability. There is an unconditional right to respect of the purchase of those goods and services; and defer the settlement of the entitlement until the employee • statutory payables, such as goods and services tax and has completed the requisite years of service. fringe benefits tax payables. This non-current LSL liability is measured at present value. Provisions Provisions are recognised when the Trust has a present obligation, Any gain or loss following revaluation of the present value the future sacrifice of economic benefits is probable and the of non-current LSL liability is recognised in the ‘net result amount of the provision can be measured reliably. from transactions’, except to the extent that a gain or loss arises due to changes in bond interest rates for which it is The amount recognised as a provision is the best estimate of the then recognised in the net result as another economic flow. consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding (iii) Termination benefits the obligation. Where a provision is measured using the cash flows Termination benefits are payable when employment is estimated to settle the present obligation, its carrying amount is terminated before the normal retirement date, or when an the present value of those cash flows, using a discount rate that employee accepts voluntary redundancy in exchange for reflects the time value of money and risks specific to the provision. these benefits. The Trust recognises termination benefits when it is demonstrably committed to either terminating Employee Benefits the employment of current employees according to a (i) Wages, Salaries and Annual Leave detailed formal plan without possibility of withdrawal Liabilities for wages and salaries, including non-monetary or providing termination benefits as a result of an offer benefits and annual leave are recognised in the provision made to encourage voluntary redundancy. Benefits falling for employee benefits as ‘current liabilities’ because due more than 12 months after balance sheet date are the Trust does not have an unconditional right to defer discounted to present value. settlements of these liabilities. Depending on the expectation of the timing of the Employee Benefit On-Costs settlement, liabilities for wages and salaries and annual Employee benefits on-costs such as payroll tax and workers leave are measured at: compensation are recognised separately from the provision for employee benefits.
30 MELBOURNE AND OLYMPIC PARKS TRUST NOTES TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
(n) Income taxes The Trust as Lessee The Australian Taxation Office has deemed the Trust to be a “Public All leased assets are classified as operating leases. Authority” within the terms of Section 50-25 of the Income Tax Assessment Act 1997 and therefore any income shall be exempt Operating lease payments, including any contingent rentals, from income tax. The Trust is not subject to the National Tax are recognised as an expense in the comprehensive operating Equivalent Regime. No provisions for income taxes payable have statement on a straight‑line basis over the lease term, except been raised. where another systematic basis is more representative of the time pattern of the benefits derived from the use of the leased (o) Contingent assets and contingent liabilities asset. The leased asset is not recognised in the balance sheet. Contingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by way of a note (s) Commitments and, if quantifiable, are measured at nominal value. Commitments for future expenditure include operating and capital commitments arising from contracts. These commitments Contingent assets and contingent liabilities are presented are disclosed by way of a note (refer to Note 13 Commitments inclusive of GST receivables or payables respectively. for expenditure) at their nominal value and inclusive of the GST payable. In addition, where it is considered appropriate and (p) Rounding of Amounts provides additional relevant information to users, the net present Amounts in the financial statements have been rounded to the values of significant individual projects are stated. These future nearest $1,000 unless otherwise stated. expenditures cease to be disclosed as commitments once the related liabilities are recognised in the balance sheet. (q) Contributed Capital Transfers from the Department of Health and Human Services that are in the nature of contributions or distributions of capital have also been designated as contributed capital. Other transfers that are in the nature of contributions or distributions have also been designated as contributions by owners
(r) Leased assets The Trust as Lessor Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease.
31 MELBOURNE AND OLYMPIC PARKS TRUST NOTES TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
(t) Australian Accounting Standards issued that are not yet effective Certain new AASs have been published that are not mandatory for the 30 June 2018 reporting period. DTF assesses the impact of these new standards and advises the Trust of their applicability and early adoption where applicable.
Standard Summary Applicable for Impact on public sector entity annual reporting financial statements periods beginning on
AASB 15 Revenue The core principle of AASB 15 requires 1 January 2019 The changes in revenue recognition from Contracts with an entity to recognise revenue when the requirements in AASB 15 may Customers entity satisfies a performance obligation by result in changes to the timing transferring a promised good or service to and amount of revenue recorded a customer. Note that amending standard in the financial statements. The AASB 2015‑8 Amendments to Australian Standard will also require additional Accounting Standards – Effective Date of disclosures on service revenue and AASB 15 has deferred the effective date of contract modifications. AASB 15 to annual reporting periods beginning on or after 1 January 2018, instead of 1 January 2017. AASB 2016-7 Amendments to Australian Accounting Standards – Deferral of AASB 15 for Not-for-Profit Entities. This standard defers the mandatory effective date of AASB 15 for not-for-profit entities from 1 January 2018 to 1 January 2019.
AASB 16 Leases The key changes introduced by AASB 16 1 January 2019 The assessment has indicated include the recognition of most operating that most operating leases, with leases (which are currently not recognised) the exception of short term and on balance sheet. low value leases will come on to the balance sheet and will be recognised as right of use assets with a corresponding lease liability. In the operating statement, the operating lease expense will be replaced by depreciation expense of the asset and an interest charge.
AASB 1058 Income This Standard will replace AASB 1004 1 January 2019 The impact on current revenue of Not-for-Profit Contributions and establishes principles for recognition of the changes is the Entities transactions that are not within the scope of phasing and timing of revenue AASB 15, where the consideration to acquire recorded in the profit and loss an asset is significantly less than fair value statement. to enable not-for-profit entities to further their objectives.
32 MELBOURNE AND OLYMPIC PARKS TRUST NOTES TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
2. INCOME FROM TRANSACTIONS
2018 2017 $’000 $’000
(a) Sales of goods and services Sale of goods 30,897 14,416 Rendering of services 79,119 78,513 110,016 92,929
(b) Other income Delaware North Australia Capital Contribution 615 615 Cancelled Event Ticket Income - 1 615 616
33 MELBOURNE AND OLYMPIC PARKS TRUST NOTES TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
3. EXPENSES FROM TRANSACTIONS
NOTE 2018 2017 $’000 $’000
(a) Cost of goods sold/distributed Venue Hire 2,201 933 Catering 13,652 12,871 Other 761 571 16,614 14,375
(b) Purchase of services Administration 4,246 4,019 Event Contractors 16,463 12,701 Utilities 4,004 3,340 Other 2,417 2,181 27,13 0 22,241
(c) Employee expenses Salaries, wages, annual leave and long service leave 18,072 16,321 Defined contribution superannuation expense 22 1,912 1,361 Termination benefits 75 66 20,059 17,748
(d) Other operating expenses Maintenance 6,986 7, 416 Operating lease expenses 242 191 Purchase of supplies and consumables 1,109 1,081 Other 97 140 8,434 8,828
(e) Sports Development Transfer Payment to Government for support of sport and recreation programs 6,100 6,000 6,100 6,000
34 MELBOURNE AND OLYMPIC PARKS TRUST NOTES TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
4. OTHER ECONOMIC FLOWS INCLUDED IN NET RESULT
2018 2017 $’000 $’000
(a) Net gain/(loss) on non-financial assets Net gain/(loss) on disposal of property plant and equipment (including intangible assets) 2 33 Net gain/(loss) on disposal of redevelopment property plant and equipment - (12,771) 2 (12,737)
(b) Net gain/(loss) arising from revaluation of long service liability Net gain/(loss) arising from revaluation of long service liability (6) (57) (6) (57)
5. CASH AND CASH EQUIVALENTS
Cash floats held 88 88 Cash at bank 8,706 47,272 Cash at bank (ticket sales for future events - not available for use) 76,383 41,704 Term deposits 60,150 4,750 Bank deposits (restricted use) 629 306 Total Cash and cash equivalents 145,956 94,120
6. RECEIVABLES
Current Contractual Trade and other receivables (ii) 3,384 2,736 Provision for doubtful debts (i) (5) (5) 3,379 2,731 Statutory Amount owing from Victorian Government (iii) 731 68 Taxes Recoverable 357 726 1,088 794
Total current receivables 4,466 3,525
(a) Movement in the allowance for doubtful debts
Balance at beginning of financial year 5 5 Balance at end of financial year 5 5
(i) A provision has been made for amounts where collection is considered no longer probable, determined by reference to issues relating to individual accounts. (ii) Receivables are carried at nominal amounts due. The average credit period on settling of monies owed is 7 days. No interest is charged on other receivables for outstanding balances. (iii) The amounts receivable from the Victorian Government represent monies owing from Victorian Government Departments/Agencies relating to contributions towards capital projects, tenancies and redevelopment costs.
35 MELBOURNE AND OLYMPIC PARKS TRUST NOTES TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
6. RECEIVABLES (continued) (b) Ageing analysis of receivables Please refer to Table 16.3 in Note 16 for ageing analysis of receivables.
(c) Nature and extent of risk arising from receivables Please refer to Note 16 for the nature and extent of credit risk arising from receivables.
7. PREPAYMENTS
2018 2017 $’000 $’000 Current Prepaid Expenditure 506 173 Prepaid Capital Expenditure 36,972 24,967 37,478 25,140
8. PROPERTY, PLANT, EQUIPMENT AND INTANGIBLE ASSETS
2018 2017 $’000 $’000
Land at fair value (i) 910,000 910,000 910,000 910,000
Buildings and improvements at revaluation (ii) 958,512 905,435 Less accumulated depreciation (33,559) (792) Written down value 924,953 904,643
Plant and equipment at fair value 66,420 42,565 Less accumulated depreciation (33,456) (28,772) Written down value 32,964 13,793
Work in progress 126,121 86,809 126,121 86,809
Total property, plant and equipment 2,061,053 1,944,809 Less accumulated depreciation (67,015) (29,564) Written down value 1,994,038 1,915,245
Intangible Assets 1,908 1,908 Less accumulated amortisation (1,740) (1,618) Written down value 168 290
Written down value property, plant, equipment and intangible assets 1,994,206 1,915,535
36 MELBOURNE AND OLYMPIC PARKS TRUST NOTES TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
8. PROPERTY, PLANT, EQUIPMENT AND INTANGIBLE ASSETS (continued) (i) Land at fair value Land was independently revalued at 30 June 2017 as required by the Financial Management Act 1994 and was conducted by the Valuer- General Victoria. Due to restrictions on the usage of the land, a notional discount of 40% known as ‘Community Service Obligation’ has been applied to the Unrestricted Land Value. (ii) Buildings and Improvements and Plant & Equipment at revaluation 2017 Buildings, Plant & Equipment was independently revalued at 3 0 June 2017 as required by the Financial Management Act 1994 and was conducted by Napier & Blakeley on behalf of the Valuer-General Victoria who have provided replacement cost and depreciated replacement cost on the inspected properties (Rod Laver Arena and surrounding grounds, Hisense Arena, AAMI Park and Holden Centre). Works in Progress relating to the redevelopment have not been included in the revaluation. RECONCILIATIONS Classification by ‘Public safety and environment’ purpose group – Movements in carrying amounts. Land at fair Buildings at Plant & Intangibles Work in Total value fair value Equipment at fair value Progress at fair value at cost $’000 $’000 $’000 $’000 $’000 $’000 Year ended 30 June 2018 Carrying amount at start of year 910,000 904,643 13,793 290 86,809 1,915,535 Additions - 1,226 5,758 - 109,264 116,248 Transfers - 51,474 18,478 - (69,952) - Disposals ------Revaluations/Impairments ------Depreciation Expense - (32,390) (5,065) - - (37,455) Amortisation Expense - - - (122) - (122) Carrying amount at end of year 910,000 924,953 32,964 168 126,121 1,994,206
Land at fair Buildings at Plant & Intangibles Work in Total value fair value Equipment at fair value Progress at at fair value cost $’000 $’000 $’000 $’000 $’000 $’000 Year ended 30 June 2017 Carrying amount at start of year 478,236 869,396 13,768 496 97,688 1,459,584 Additions - 19 3,733 - 79,560 83,312 Transfers - 90,206 233 - (90,439) - Disposals - (12,771) - - - (12,771) Revaluations/Impairments 431,764 (13,891) - - - 417,873 Depreciation Expense - (28,315) (3,941) - - (32,256) Amortisation Expense - - - (206) - (206) Carrying amount at end of year 910,000 904,643 13,793 290 86,809 1,915,535
Aggregate depreciation & amortisation recognised as an expense during the year (i) 2018 2017 $'000 $'000 Buildings at fair value 32,390 28,315 Plant, equipment and vehicles at fair value 5,065 3,941 Intangibles at fair value 122 206 37,577 32,462 Notes: (i) The useful lives of assets as stated in Note 1 are used in the calculation of depreciation and amortisation
37 MELBOURNE AND OLYMPIC PARKS TRUST NOTES TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
Fair value measurement hierarchy for assets Carrying amount Fair Value Measurement as at 30 June 2018 using: as at 30 June 2018 Level 1 Level 2 Level 3 $’000 $’000 $’000 $’000 Land at fair value Specialised land 910,000 - - 910,000 Total of land at fair value 910,000 - - 910,000 Buildings at fair value Specialised buildings 924,953 - - 924,953 Total of buildings at fair value 924,953 - - 924,953 Plant, equipment and vehicles at fair value Vehicles 117 - - 117 Plant and equipment 32,847 - - 32,847 Total of plant, equipment and vehicles at fair value 32,964 - - 32,964
Carrying amount Fair Value Measurement as at 30 June 2017 using: as at 30 June 2017 Level 1 Level 2 Level 3 $’000 $’000 $’000 $’000 Land at fair value Specialised land 910,000 - - 910,000 Total of land at fair value 910,000 - - 910,000 Buildings at fair value Specialised buildings 904,643 - - 904,643 Total of buildings at fair value 904,643 - - 904,643 Plant, equipment and vehicles at fair value Vehicles 196 - - 196 Plant and equipment 13,597 - - 13,597 Total of plant, equipment and vehicles at fair value 13,793 - - 13,793
Specialised land and specialised buildings The market approach is used for specialised land, although is adjusted for the community service obligation (CSO) to reflect the specialised nature of the land being valued.
The CSO adjustment is a reflection of the valuer’s assessment of the impact of restrictions associated with an asset to the extent that is also equally applicable to market participants.
This approach is in light of the highest and best use consideration required for fair value measurement, and takes into account the use of the asset that is physically possible, legally permissible, and financially feasible. As adjustments of CSO are considered as significant unobservable inputs, specialised land would be classified as Level 3 assets.
The depreciated replacement cost method is used for specialised buildings. As depreciation adjustments are considered as significant, unobservable inputs in nature, specialised buildings are classified as Level 3 fair value measurements.
An independent valuation of the Trust’s specialised land and specialised buildings was performed by the Valuer-General Victoria. The valuation was performed using the market approach adjusted for CSO. The effective date of the valuation is 30 June 2017.
Vehicles Vehicles are valued using the depreciated replacement cost method. The Trust acquires new vehicles and at times disposes of them before the end of their economic life. The process of acquisition, use and disposal in the market is managed within the Trust. Depreciation rates are set to reflect the utilisation of the vehicles.
38 MELBOURNE AND OLYMPIC PARKS TRUST NOTES TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
Plant and equipment Plant and equipment is held at fair value. When plant and equipment is specialised in use, such that it is rarely sold other than as part of a going concern, fair value is determined using the depreciated replacement cost method.
There were no changes in valuation techniques throughout the period to 30 June 2018.
For all assets measured at fair value, the current use is considered the highest and best use.
Reconciliation of level 3 fair value
Specialised Plant and 2018 Specialised land buildings Vehicles equipment $'000 $'000 $'000 $'000 Opening balance 910,000 904,644 196 13,597 Purchases (sales) - 52,700 - 24,236 Transfers in (out) of - - - - Level 3
Gains or losses recognised in net result
Depreciation - (32,390) (79) (4,986) Net Gain/(Loss) on Disposal of PP&E - - - - Subtotal - (32,390) (79) (4,986) Gains or losses recognised in other economic flows - other comprehensive income Revaluation - - - - Subtotal - - - - Closing balance 910,000 924,954 117 32,847
Specialised Plant and 2017 Specialised land buildings Vehicles equipment $'000 $'000 $'000 $'000 Opening balance 478,236 869,396 189 13,579 Purchases (sales) - 90,225 105 3,861 Transfers in (out) of - - - - Level 3
Gains or losses recognised in net result
Depreciation - (28,315) (98) (3,843) Net Gain/(Loss) on Disposal of PP&E - (12,771) - - Subtotal - (41,086) (98) (3,843) Gains or losses recognised in other economic flows - other comprehensive income Revaluation 431,764 (13,891) - - Subtotal 431,764 (13,891) - - Closing balance 910,000 904,644 196 13,597
39 MELBOURNE AND OLYMPIC PARKS TRUST NOTES TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
Description of significant unobservable inputs to Level 3 valuations
Valuation Technique Significant unobservable inputs
Specialised Land Market Value adjusted for - land price per square metre. community service obligation (CSO) - CSO obligation.
Rod Laver Arena / Melbourne Depreciated replacement cost - useful lives of structure / shell / building fabric, site engineering services & central plant, fit-outs and trunk reticulated building systems. Park - replacement cost per m² and per unit of plant. This reflects the cost of replacing the building to its current condition taking into account its age.
Hisense Arena Depreciated replacement cost - useful lives of structure / shell / building fabric, site engineering services & central plant, fit-outs and trunk reticulated building systems.
- replacement cost per m² and per unit of plant. This reflects the cost of replacing Hisense Arena to its current condition taking into account its age.
Margaret Court Arena Depreciated replacement cost - useful lives of structure / shell / building fabric, site engineering services & central plant, fit-outs and trunk reticulated building systems.
- replacement cost per m² and per unit of plant. This reflects the cost of replacing Margaret Court Arena to its current condition taking into account its age.
AAMI Park Depreciated replacement cost - useful lives of structure / shell / building fabric, site engineering services & central plant, fit-outs and trunk reticulated building systems.
- replacement cost per m² and per unit of plant. This reflects the cost of replacing AAMI Park to its current condition taking into account its age.
Holden Centre Depreciated replacement cost - useful lives of structure / shell / building fabric, site engineering services & central plant, fit-outs and trunk reticulated building systems.
- replacement cost per m² and per unit of plant. This reflects the cost of replacing the Westpac Centre to its current condition taking into account its age.
Building Refurbishments Depreciated replacement cost - useful life of a fit-out of items with the building with fairly long life spans, i.e. Guard-rails, catwalks, seating, tracks/sporting specific items that are not electronic.
- useful life of items of a soft nature with in building includes carpets, lighting, wall fixtures, furniture and fittings that cannot be readily separated from the initial building purchase.
Vehicles Depreciated replacement cost - cost per unit. - useful life of vehicles.
Plant and equipment Depreciated replacement cost - cost per unit. - useful life of plant and equipment.
40 MELBOURNE AND OLYMPIC PARKS TRUST NOTES TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
9. PAYABLES
2018 2017 $’000 $’000
Current Contractual Trade creditors (i) 1,160 393 Event Settlements 3,256 1,612 Other payables 835 654 Accrued expenses 8,239 7, 414 13,490 10,073 Statutory Taxes payable - -
Total current payables 13,490 10,073
(i) The average credit period is 30 days. No interest is charged on other payables for the first 30 days from the date of invoice. Payables are generally paid within the payment period thereby avoiding any interest charges that may be incurred on late payments.
(a) Maturity analysis of payables Please refer to Table 16.5 in Note 16 for the aging analysis of payables.
(b) Nature and extent of risk arising from payables Please refer to Note 16 for the nature and extent of risks arising from payables.
41 MELBOURNE AND OLYMPIC PARKS TRUST NOTES TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
10. PROVISIONS 2018 2017 $’000 $’000
Current provisions
Annual Leave Unconditional and expected to be settled within 12 months (i) 337 288 Unconditional and expected to be settled after 12 months (ii) 368 296
Long Service Leave Unconditional and expected to be settled within 12 months (i) 1,024 914 Unconditional and expected to be settled after 12 months (ii) 1,074 1,030 2,803 2,528
Provisions for on-costs Unconditional and expected to be settled within 12 months (i) 233 198 Unconditional and expected to be settled after 12 months (ii) 248 220 481 418
Total current provisions 3,284 2,946
Non-current provisions Long Service Leave (ii) 259 303 On-costs (ii) 42 48
Total non-current provisions 301 351
Total provisions 3,585 3,298
(i) The amounts disclosed are nominal amounts. (ii) The amounts disclosed are discounted to present values.
42 MELBOURNE AND OLYMPIC PARKS TRUST NOTES TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
Note 10. Provisions (continued) (a) Employee benefits and on-costs 2018 2017 $’000 $’000
Current employee benefits
Annual Leave 705 584 Long Service Leave 2,098 1,944
Non-current employee benefits Long Service Leave 259 303
Total employee benefits 3,062 2,831
Current on-costs 481 418 Non-current on-costs 42 48 Total on-costs 523 466
Total employee benefits and on-costs 3,585 3,298
(b) Movement in provisions On-costs On-costs 2018 2017 $'000 $'000
Opening Balance 466 431 Additional provisions recognised 111 207 Reductions arising from payments/other sacrifices of future economic benefits (41) (140) Reductions resulting from re-measurement or settlement without cost (12) (23) Unwind of discount and effect of changes in the discount rate (1) (9)
Closing Balance 523 466
Current 481 418 Non-current 42 48
Closing Balance 523 466
11. OTHER LIABILITIES 2018 2017 $’000 $’000
Income received in advance 8,318 6,791 Ticket sales for future events 76,382 41,703 84,700 48,494
43 MELBOURNE AND OLYMPIC PARKS TRUST NOTES TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
12. LEASES
Operating lease payables Leasing arrangements Operating lease payables relate to plant and office equipment with lease terms between 1 and 2 years. (2017:1 and 2 years)
Non-cancellable operating leases Total lease expenditure contracted for at balance date but not provided for in the accounts:
2018 2017 $’000 $’000
Payable not longer than one year 10 10 Longer than one year and not longer than five years 3 13 13 23
Operating Lease Receivables
Leasing arrangements Operating lease receivables relate to 13 tenancies (2017:13) within the Trust’s precinct with lease terms between 1 and 20 years (2017:1 and 20 years).
2018 2017 $’000 $’000
Receivable no later than one year 6,403 5,913 Later than one year and not later than five years 19,173 19,687 Later than five years 53,604 57,376 79,180 82,976
13. COMMITMENTS FOR EXPENDITURE The following commitments have not been recognised as liabilities in the financial statements. All amounts shown in the commitments note are nominal amounts inclusive of GST.
(a) Capital expenditure commitments The Trust has commitments for capital works relating to software upgrades.
2018 2017 $’000 $’000
Less than one year 8 1,289 Longer than one year and not longer than five years - - 8 1,289
44 MELBOURNE AND OLYMPIC PARKS TRUST NOTES TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
(b) Operating expenditure commitments The Trust has $2.75m in commitments for operating expenditure relating to agreements for cleaning, service agreements, mechanical services, document storage and software subscriptions at the date of this report (2017: $3.9m).
2018 2017 $’000 $’000
Payable no later than one year 1,690 2,244 Longer than one year and not later than five years 1,059 1,652 2,749 3,896
(c) Lease commitments Non-cancellable operating lease commitments are disclosed in Note 12 of the financial statements.
14. CONTINGENT LIABILITIES The Trust has no contingent liabilities at the date of this report. (2017:$0) 15. CONTINGENT ASSETS There is a contingent asset in relation to Collingwood Football Club’s ground lease at Olympic Park. In December 2013, the Collingwood Football Club was granted permission by the Trust for the construction of the Olympic Park Community Facility on the Trust’s land. Ownership of improvements to the land and any buildings will transfer to the Trust upon expiration of the current lease on 31 May 2033.
16. FINANCIAL INSTRUMENTS (a) Significant accounting policies The Trust’s principal financial instruments comprise: • cash assets; • term deposits; • receivables (excluding statutory receivables); and • payables (excluding statutory payables). Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement, and the basis on which income and expenses are recognised, with respect to each class of financial asset, financial liability and equity instrument are disclosed in Note 1 to the financial statements. The main purpose in holding financial instruments is to prudentially manage the Trust’s financial risks in the government policy parameters. The Trust’s main financial risks include credit risk, liquidity risk and interest rate risk. The Trust manages these risks in accordance with its treasury policy. Primary responsibility for the identification and management of financial risks rests with the Finance, Audit and Risk Committee of the Trust.
45 MELBOURNE AND OLYMPIC PARKS TRUST NOTES TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
Table 16.1: Categorisation of financial instruments
Contractual Contractual financial financial assets - loans and liablilities at NOTES receivables amortised cost Total $'000 $'000 $'000 2018 Financial assets (i) Cash and cash equivalents 5 9,423 - 9,423 Cash held on behalf of customers 76,383 - 76,383 Total Cash 85,806 - 85,806
Receivables: (i) 6 Total Receivables 3,384 - 3,384
Investments and other contractual financial assets: Term deposits 5 60,150 - 60,150 Total contractual financial assets 149,340 - 149,340
Contractual financial liabilities
Payables: (i) Payables 9 - 13,490 13,490 Ticket sales for future events 11 - 76,382 76,382 Total contractual financial liabilities - 89,872 89,872
(i) The amount of receivables and payables disclosed exclude statutory amounts (e.g.: amounts owing from Victorian Government and GST input tax credit recoverable and taxes payable)
46 MELBOURNE AND OLYMPIC PARKS TRUST NOTES TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
(b) Credit risk exposure Credit risk arises when there is the possibility of the Trust’s debtors defaulting on their contractual obligations resulting in financial loss to the Trust. The Trust measures credit risk on a fair value basis and monitors risk on a regular basis.
The Trust does not have any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics.
The Trust has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral or credit enhancements where appropriate (in the form of a deposit or other guarantee), as a means of mitigating the risk of financial loss from defaults. Credit risk in trade receivables is managed by payment terms of seven days and sound debt collection policies and procedures.
The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.
Provision of impairment for financial assets is calculated based on past experience, and current and expected changes in client credit ratings.
“The carrying amount of financial assets recorded in the Financial Report, net of any allowances for losses, represents the Trust’s maximum exposure to credit risk without taking account of the value of any collateral obtained. Table 16.2: Credit quality of contractual financial assets
Government agencies Other (min triple-A credit 2018 (triple-A credit rating) rating) Total Cash and cash equivalents 5,093 4,330 9,423 Cash held on behalf of customers 4,454 71,929 76,383 Receivables (i) - 3,384 3,384 Investments and other financial assets 58,150 2,000 60,150 Total contractual financial assets 67,697 81,643 149,340
2017 Cash and cash equivalents 42,708 4,958 47,666 Cash held on behalf of customers 1,758 39,946 41,704 Receivables (i) - 2,736 2,736 Investments and other financial assets 2,750 2,000 4,750 Total contractual financial assets 47,216 49,640 96,856 (ii) The amount of receivables and payables disclosed exclude statutory amounts (e.g.: amounts owing from Victorian Government and GST input tax credit recoverable and taxes payable)
Financial assets that are either past due or impaired As at the reporting date, there is no event to indicate that any of the financial assets are impaired. There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired and they are stated at the carrying amounts as indicated.
47 MELBOURNE AND OLYMPIC PARKS TRUST NOTES TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
Table 16.3: Ageing analysis of contractual financial assets
Not past Carrying due & not Past due but not impaired amount impaired Less than 3 months 1-3 months 1-5 years 1 month - 1 year
30 June 2018 $'000 $'000 $'000 $'000 $'000 $'000 Cash and cash 9,423 9,423 equivalents Term deposits 60,150 60,150 Receivables (i) 3,384 2,134 1,249 - - - 72,957 71,707 1,249 - - -
30 June 2017 $'000 $'000 $'000 $'000 $'000 $'000 Cash and cash equivalents 89,370 89,370 Term deposits 4,750 4,750 Receivables (i) 2,736 1,555 81 1,078 22 - 96,856 95,675 81 1,078 22 -
(i) Ageing analysis of financial assets excludes statutory financial assets (e.g.: amounts owing from Victorian Government and GST input tax credits recoverable).
(c) Liquidity risk Liquidity risk arises when the Trust is unable to meet its financial obligations as they fall due. The Trust operates under the Government fair payments policy of settling financial obligations within 30 days and in the event of a dispute, makes payments within 30 days from the date of resolution. It also continuously manages risk through monitoring future cash flows and maturities planning to ensure adequate holding of high quality liquid assets and dealing in highly liquid markets. The Trust’s exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of risk. Cash for unexpected events could be sourced from early liquidation of cash held on deposit if required. Maximum exposure to liquidity risk is the carrying amounts of financial liabilities.
48 MELBOURNE AND OLYMPIC PARKS TRUST NOTES TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
Table 16.4: Interest rate exposure of financial assets
Weighted average Carrying Interest rate exposure interest amount rate
Fixed Variable Non- interest interest interest rate rate bearing 30 June 2018 % $'000 $'000 $'000 $'000 Cash and cash equivalents: Cash floats held - 88 - - 88 Cash at bank 1.28% 8,706 - 8,706 - Term deposits 2.09% 60,150 60,150 - - Bank deposits (restricted use) 1.40% 629 - 629 - Cash at bank (ticket sales for future events - not available for use) 2.41% 76,383 - 76,383 -
Receivables (i) 3,384 - - 3,384 149,340 60,150 85,718 3,472
30 June 2017 % $'000 $'000 $'000 $'000 Cash and cash equivalents: Cash floats held 88 - - 88 Cash at bank 1.26% 47,272 - 47,272 - Term deposits 1.96% 4,750 4,750 - - Bank deposits (restricted use) 1.40% 306 - 306 - Cash at bank (ticket sales for future events - not available for use) 2.46% 41,703 - 41,703 -
Receivables (i) 2,736 - - 2,736 96,855 4,750 89,281 2,824
(ii) Ageing analysis of financial assets excludes statutory financial assets (e.g.: amounts owing from Victorian Government and GST input tax credits recoverable).
49 MELBOURNE AND OLYMPIC PARKS TRUST NOTES TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
Table 16.5: Interest rate exposure and maturity analysis of financial liabilities Carrying Nominal amount amount Maturity dates (i) Less than 3 months 1 month 1-3 months - 1 year 1-5 years 30 June 2018 $’000 $’000 $’000 $’000 $’000 $’000 Payables (ii) 13,490 13,490 12,960 247 283 - Other 76,382 76,382 36,545 17,726 22,111 - 89,872 89,872 49,505 17,973 22,394 -
30 June 2017 $'000 $'000 $'000 $'000 $'000 $'000 Payables (ii) 10,073 10,073 9,437 244 392 - Other 41,703 41,703 6,376 9,588 25,739 - 51,776 51,776 15,813 9,832 26,131 -
(i) The amounts disclosed are the contractual undiscounted cash flows of each class of financial liabilities. (ii) The carrying amounts disclosed exclude statutory amounts (e.g.: amounts payable to Victorian Government and taxes payable).
(d) Interest rate risk The Trust is exposed to insignificant interest rate risk as it does not have any loans. Additionally, monies on term deposits are with financial institutions with high credit ratings. Sensitivity analyses shown are for illustrative purposes only. The following movements are ‘reasonably possible’ over the next 12 months:
• a movement of 100 basis points up and down (2017:100 basis points up and down) in market interest rates (AUD);
The Trust’s exposure to interest rate risk is set out in Table 16.6.
50 MELBOURNE AND OLYMPIC PARKS TRUST NOTES TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
Table 16.6: Market risk Interest rate risk -1% +1% (100 basis points) (100 basis points) Carrying Profit Equity Profit Equity amount 30 June 2018 $'000 $'000 $'000 $'000 $'000 Contractual financial assets: Cash and cash equivalents 9,423 (94) (94) 94 94 Cash held on behalf of customers 76,383 (764) (764) 764 764 Investments and other 60,150 (602) (602) 602 602 contractual financial assets Total Impact (1,460) (1,460) 1,460 1,460
30 June 2017 $'000 $'000 $'000 $'000 $'000 Contractual financial assets: Cash and cash equivalents 47,666 (477) (477) 477 477 Cash held on behalf of customers 41,704 (417) (417) 417 417 Investments and other 4,750 (48) (48) 48 48 contractual financial assets Total Impact (942) (942) 942 942
(e) Fair value The Trust considers that the carrying amount of financial assets and financial liabilities recorded in the financial report to be a fair approximation of their fair values, because of the short-term nature of the financial instruments and the expectation that they will be paid in full.
51 MELBOURNE AND OLYMPIC PARKS TRUST NOTES TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
17. CASH FLOW INFORMATION
(a) Reconciliation of cash and cash equivalents
2018 2017 $’000 $’000
Total cash and cash equivalents disclosed in note 5 145,956 94,120 Balance as per cash flow statement 145,956 94,120
(b) Reconciliation of net result for the period to net cash flows from operating activities 2018 2017 $’000 $’000
Net Result for the financial year (4,229) (19,997)
Add/(less) non-cash movements: Depreciation and amortisation of non-current assets 37,577 32,463 Net gain/(loss) on non-financial assets (2) 12,737
Movements in assets and liabilities: (Increase)/decrease in current receivables (941) 1,490 (Increase)/decrease in other current assets (12,338) (9,280) (Decrease)/increase in current payables 3,996 (5,441) (Decrease)/increase in current provisions 338 302 (Decrease)/increase in other current liabilities 36,206 20,009 (Decrease)/increase in non-current provisions (50) (81)
Net cash flows from/(used in) operating activities 60,558 32,200
52 MELBOURNE AND OLYMPIC PARKS TRUST NOTES TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
18. RESPONSIBLE PERSONS In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management Act 1994, the following disclosures are made regarding responsible persons for the reporting period.
Names The persons who held the positions of Ministers and Accountable Officers for the Trust are as follows:
Responsible Minister The Honourable John Eren, Minister for Sport, Minister for Tourism and Major Events and Minister for Veterans.
Trust Mr Russell Caplan (Chair) (1 July 2017 to 30 June 2018) Ms Jacinda Dixon (1 July 2017 to 30 June 2018) Mr William Fowles (1 July 2017 to 30 June 2018) Ms Diana Nicholson (1 July 2017 to 30 June 2018) Mr John Ribot-de-Bresac (1 July 2017 to 30 June 2018) Mr Kenneth Roche, AO (1 July 2017 to 30 June 2018) Ms Catherine Friday (1 July 2017 to 30 June 2018) Mr Patrick Flannigan (1 July 2017 to 30 June 2018) Ms Jayne Hrdlicka (1 July 2017 to 30 June 2018) Mr Gary Clark (1 July 2017 to 26 June 2018) Ms Liberty Sanger (1 July 2017 to 30 June 2018) Ms Janice Van Reyk (20 February 2018 to 30 June 2018) Ms Emma Sherry (26 June 2018 to 30 June 2018)
Accountable Officer Mr Brian Morris (Trust Secretary & Chief Executive Officer)
Remuneration Total remuneration (including incentive payments) received or receivable by the Accountable Officer in connection with the management of the Trust during the reporting period was in the range of $500,000 - $509,999 ($490,000 - $499,999 in 2016-17).
Trustees did not receive any remuneration from the Trust during the financial year. (2016-17: $0). Trustees are entitled to take up to two tickets to publicly ticketed events held at Melbourne and Olympic Parks Trust.
Amounts relating to the Responsible Minister is reported within the Department of Parliamentary Services Financial Report.
53 MELBOURNE AND OLYMPIC PARKS TRUST NOTES TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
19. REMUNERATION OF EXECUTIVES The number of executive officers and employees with management responsibilities, other than the Minister and Accountable Officer, and their total remuneration during the reporting period are shown in the table below. Total annualised employee equivalents provide a measure of full time equivalent executive officers over the reporting period. Remuneration comprises employee benefits in all forms of consideration paid, payable or provided by the entity, or on behalf of the entity, in exchange for services rendered, and is disclosed in the following categories. Short-term employee benefits include amounts such as wages, salaries, annual leave or sick leave that are usually paid or payable on a regular basis, as well as non-monetary benefits such as allowances and free or subsidised goods or services. Post-employment benefits include pensions and other retirement benefits paid or payable on a discrete basis when employment has ceased. Other long-term benefits include long service leave, other long service benefits or deferred compensation. Termination benefits include termination of employment payments, such as severance packages.
Remuneration of executive officers 2018 2017 $'000 $'000 Short-term employee benefits 697 312 Post-employment benefits 50 22 Other long-term benefits 17 8 Termination benefits 0 0 Total remuneration (a) 763 342 Total number of executives 3.0 2.0 Total annualised employee equivalents (a) 2.2 1.1 The increase in remuneration of executive officers was due to vacancies in executive officer roles in the prior year. Notes: (a) Annualised employee equivalent is based on the time fraction worked over the reporting period.
20. RELATED PARTIES The Trust is a wholly owned and controlled entity of the State of Victoria. The assessment of Related parties of the Trust included: • all key management personnel and their close family members and personal business interests (controlled entities, joint ventures and entities they have significant influence over); • all cabinet ministers and their close family members; and • all public sector entities that are controlled and consolidated into the State of Victoria Financial Statements All related party transactions have been entered into on an arm’s length basis. KMPs are those people with the authority and responsibility for planning, directing and controlling the activities of the Trust, directly or indirectly. Key management personnel of the Trust include the Portfolio Minister, the Honourable John Eren MP, Trustees, Chief Executive Officer and members of the executive as per Note 18. The compensation detailed below excludes the salaries and benefits the Portfolio Minister receives. The Minister’s remuneration and allowances is set by the Parliamentary Salaries and Superannuation Act 1968 and is reported within the Department of Parliamentary Services’ Financial Report.
54 MELBOURNE AND OLYMPIC PARKS TRUST NOTES TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
Compensation of KMPs 2018 2017 $'000 $'000 Short-term employee benefits(a) 1,172 777 Post-employment benefits 70 42 Other long-term benefits 27 19 Termination benefits 0 0 Total 1,269 838 Notes: (a) Total KMP remuneration is related to the accountable officer and members of the executive, as Trustees are not remunerated (Note 18). Significant transactions with government-related entities Given the breadth and depth of State government activities, related parties transact with the Victorian public sector in a manner consistent with other members of the public e.g. stamp duty and other government fees and charges. Further employment of processes within the Victorian public sector occur on terms and conditions consistent with the Public Administration Act 2004 and Codes of Conduct and Standards issued by the Victorian Public Sector Commission. Procurement processes occur on terms and conditions consistent with the Victorian Government Purchasing Board requirements. The Trust received redevelopment funding of $108.1 million during the year (2017: $82.5 million) from DHHS which was onpassed to Development Victoria in their capacity as project manager (previously to Major Projects Victoria). Funding by the Trust to government entities outside of the redevelopment have been referred to in Note 3e, which includes State Sports Centre Trust, Sport and Recreation Victoria and Kardinia Park Stadium Trust. Transactions and balances with key management personnel and other related parties Commercial dealings were undertaken during the reporting period with Tennis Australia, Tennis Victoria, Urban Maintenance Systems (UMS) and Ernst & Young, all of which have representatives holding positions as Trustees on the Melbourne & Olympic Parks Trust. Tennis Australia Ms Jayne Hrdlicka holds a position on the Melbourne and Olympic Parks Trust and also holds the position of President of Tennis Australia. Ms Janice Van Reyk was appointed to the Trust during the year and also holds a director position with Tennis Australia. Tennis Australia is the promoter of the Australian Open event and operates a court hire business on the Trust’s premises and also rents office space from the Trust. During 2017-18, the Trust invoiced Tennis Australia $42,131,832 ($40,130,243 in 2016-17) and as at 30 June 2018, Tennis Australia owed the Trust $252,813 ($55,016 in 2016-17) Tennis Victoria Mr Gary Clark held a position on the Melbourne and Olympic Parks Trust and also held the position of President of Tennis Victoria during the year. Ms Emma Sherry was appointed to the Trust during the year and now also holds the position of President of Tennis Victoria. Tennis Victoria rents office space on the Trust’s premises and purchase related services from the Trust. During 2017-18, the Trust invoiced Tennis Victoria $209,591 ($181,401 in 2016-17) and as at 30 June 2018, Tennis Victoria owed the Trust $0 ($11,564 in 2016-17). Urban Maintenance Systems (UMS) Mr Patrick Flannigan holds a position on the Melbourne and Olympic Parks Trust and also holds the position of Managing Director and Chief Executive Officer at UMS. During the year, the Trust entered into a periodic services agreement with UMS to provide various maintenance and restoration works required on the Trust’s premises. During 2017-18, the Trust paid $1,529,605 to UMS ($534,952 in 2016-17) for various repairs, maintenance and restoration of Trust assets. The Trust owed UMS $99,191 as at 30 June 2018. There are no other receivable amounts or loans outstanding in relation to related parties, as at 30 June 2018 ($0 in 2016-17).
55 MELBOURNE AND OLYMPIC PARKS TRUST NOTES TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
21. REMUNERATION OF AUDITORS Audit fees paid or payable to the Victorian Auditor-General’s Office (VAGO) for the audit of the Trust’s financial report. 2018 2017 $’000 $’000
Audit or review of the financial statements - VAGO 60 71 60 71
22. EMPLOYEE SUPERANNUATION Superannuation contributions for the reporting period are included as part of employee benefits and on-costs in the comprehensive operating statement of the Trust. The name and details of the major employee superannuation funds and contributions made by the Trust during the reporting period are as follows: 2018 2017 $’000 $’000
AustralianSuper 1,018 783 Hostplus 159 102 VicSuper Pty Ltd 90 35 Retail Employees Superannuation Pty Ltd 77 63 Navigator Super Solutions 71 76 OnePath MasterFund 56 22 C+BUS 43 19 Emergency Services Superannuation Scheme 28 5 Unisuper Limited 27 3 Care Super 27 28 MLC Masterkey Superannuation 26 9 Colonial First State First Choice Wholesale Personal Super 23 15 Superwrap - Personal Super Plan 23 5 Labour Union Co-operative Retirement Fund 20 1 Sunsuper Pty Ltd 20 10 BT Super for Life 18 11 Colonial First State First Choice PERSONAL Super 17 19 AMP Flexible Lifetime Super 14 12 North Personal Superannuation & Pension Plan 12 11 Colonial First State First Choice EMPLOYER Super 11 7 Others 133 124 TOTAL 1,912 1,360
At the reporting date, superannuation contributions outstanding were $0 (2017 $16,570).
23. SUBSEQUENT EVENTS No material or significant events occurred after the reporting date.
56 MELBOURNE AND OLYMPIC PARKS TRUST NOTES TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
24. GLOSSARY OF TERMS Financial liability A financial liability is any liability that is: Cash and cash equivalents (a) A contractual or statutory obligation: Cash and cash equivalents is petty cash, cash floats, deposits in bank accounts, bank overdrafts and short-term deposits (up to 90 days). (i) To deliver cash or another financial asset to another entity; or Comprehensive result Total comprehensive result is the change in equity for the period (ii) To exchange financial assets or financial liabilities other than changes arising from transactions with owners. It is the with another entity under conditions that are aggregate of net result and other non-owner changes in equity. potentially unfavourable to the entity; or (b) A contract that will or may be settled in the entity’s own Commitments equity instruments and is: Commitments include those operating, capital and other outsourcing commitments arising from non cancellable contractual (i) A non-derivative for which the entity is or may be or statutory sources. obliged to deliver a variable number of the entity’s own equity instruments; or Delaware North Australia Sinking Fund (ii) A derivative that will or may be settled other than by Refers to an account managed jointly by the Trust and the Trust’s the exchange of a fixed amount of cash or another caterer (Delaware North Australia) and is used for the replacement financial asset for a fixed number of the entity’s own or improvement of catering equipment or infrastructure. equity instruments. For this purpose the entity’s own equity instruments do not include instruments that Employee benefits expense are themselves contracts for the future receipt or Employee benefits expenses include all costs related to delivery of the entity’s own equity instruments. employment including wages and salaries, leave entitlements, redundancy payments, defined benefits superannuation plans, and Financial statements defined contribution superannuation plans. Depending on the context of the sentence where the term ‘financial statements’ is used, it may include only the main financial Financial asset statements (i.e. comprehensive operating statement, balance sheet, A financial asset is any asset that is: cash flow statements, and statement of changes in equity); or it (a) Cash and Cash Equivalents; may also be used to replace the old term ‘financial report’ under the revised AASB 101 (September 2007), which means it may include (b) an equity instrument of another entity; the main financial statements and the notes. (c) a contractual or statutory right: Grants • to receive cash or another financial asset from Grants can be paid as general purpose grants which refer to another entity; or grants that are not subject to conditions regarding their use. Alternatively, they may be paid as specific purpose grants which • to exchange financial assets or financial liabilities are paid for a particular purpose and/or have conditions attached with another entity under conditions that are regarding their use. potentially favourable to the entity; or (d) a contract that will or may be settled in the entity’s own Intangible assets equity instruments and is: Intangible assets represent identifiable non monetary assets without physical substance. • a non derivative for which the entity is or may be obliged to receive a variable number of the entity’s Interest expense own equity instruments; or Costs incurred in connection with the borrowing of funds interest • a derivative that will or may be settled other than by expenses include interest on bank overdrafts and short term and the exchange of a fixed amount of cash or another long term borrowings, amortisation of discounts or premiums financial asset for a fixed number of the entity’s own relating to borrowings, interest component of finance leases equity instruments. repayments, and the increase in financial liabilities and non employee provisions due to the unwinding of discounts to reflect Financial instrument the passage of time. A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument Interest income of another entity. Financial assets or liabilities that are not Interest income includes interest received on bank term deposits, contractual (such as statutory receivables or payables that arise interest from investments and other interest received. as a result of statutory requirements imposed by governments) are not financial instruments.
57 MELBOURNE AND OLYMPIC PARKS TRUST NOTES TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
Net acquisition of non-financial assets (from transactions) Sales of goods and services Purchases (and other acquisitions) of non financial assets less Refers to revenue from direct provision of goods and services and sales (or disposals) of non financial assets less depreciation plus includes fees and charges for services rendered and sales of goods changes in inventories and other movements in non financial and services. assets. It includes only those increases or decreases in non financial assets resulting from transactions and therefore excludes Transactions write offs, impairment write downs and revaluations. Transactions are those economic flows that interact between two entities by mutual agreement. Net result Net result is a measure of financial performance of the operations Style conventions for the period. It is the net result of items of income, gains and Figures in the tables and in the text have been rounded. expenses (including losses) recognised for the period, excluding Discrepancies in tables between totals and sums of components those that are classified as other non owner changes in equity. reflect rounding. Percentage variations in all tables are based on the underlying unrounded amounts. Net result from transactions (net operating balance) The notion used in the tables is as follows: Net result from transactions or net operating balance is a key fiscal aggregate and is income from transactions minus expenses from - zero, or rounded to zero transactions. It is a summary measure of the ongoing sustainability (xxx) negative numbers of operations. It excludes gains and losses resulting from changes 20xx year in price levels and other changes in the volume of assets. It is the 20xx-xx year period component of the change in net worth that is due to transactions. Non-financial assets Non financial assets are all assets that are not ‘financial assets’. Other economic flows included in net result Other economic flows included in net result are changes in the volume or value of an asset or liability that do not result from transactions. It includes: • gains and losses from disposals, revaluations and impairments of non-financial physical and intangible assets; and • gains and losses arising from revaluation of long service liability. Other economic flows – other comprehensive income Other economic flows – other comprehensive income comprises items (including reclassification adjustments) that are not recognised in net result as required or permitted by other Australian Accounting Standards. The components of other economic flows other comprehensive income include: • changes in physical asset revaluation surplus. Payables Includes short and long term trade debt and accounts payable, grants, taxes and interest payable. Receivables Includes amounts owing from government through appropriation receivable, short and long term trade credit and accounts receivable, accrued investment income, grants, taxes and interest receivable.
58 MELBOURNE AND OLYMPIC PARKS TRUST DECLARATION IN THE FINANCIAL STATEMENTS
In accordance with a resolution of the members of the Melbourne and Olympic Parks Trust and in our opinion:
The financial statements for the Trust have been prepared in accordance with Direction 5.2 of the Standing Directions of the Minister for Finance under the Financial Management Act 1994, applicable Financial Reporting Directions, Australian Accounting Standards including Interpretations, and other mandatory professional reporting requirements. We further state that, in our opinion, the information set out in the comprehensive operating statement, balance sheet, statement of changes in equity, cash flow statement and accompanying notes, presents fairly the financial transactions during the year ended 30 June 2018 and financial position of the Trust at 30 June 2018. At the time of signing, we are not aware of any circumstance which would render any particulars included in the financial statements to be misleading or inaccurate. We authorities the attached financial statements for issue on 29 August 2018.
Russell Caplan Member of Responsible Body Chairman Melbourne and Olympic Parks Trust
Brian Morris Member of Responsible Body Chief Executive Officer Melbourne and Olympic Parks Trust
Travis Mardling Chief Financial Officer Melbourne and Olympic Parks Trust
59 MELBOURNE AND OLYMPIC PARKS TRUST INDEPENDENT AUDIT REPORT
Independent Auditor’s Report To the Members of the Melbourne and Olympic Parks Trust
pinion I have audited the financial report of the Melbourne and Olympic Parks Trust (the trust) which comprises the:
• balance sheet as at 30 June 2018 • comprehensive operating statement for the year then ended • statement of changes in equity for the year then ended • cash flow statement for the year then ended • notes to the financial statements, including significant accounting policies • declaration in the financial statements. In my opinion the financial report presents fairly, in all material respects, the financial position of the trust as at 30 June 2018 and their financial performance and cash flows for the year then ended in accordance with the financial reporting requirements of Part 7 of the Financial Management Act 1994 and applicable Australian Accounting Standards.
sis or I have conducted my audit in accordance with the Audit Act 1994 which incorporates the pinion Australian Auditing Standards. I further describe my responsibilities under that Act and those standards in the Auditor’s Responsibilities for the Audit of the Financial Report section of my report. My independence is established by the Constitution Act 1975. My staff and I are independent of the trust in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to my audit of the financial report in Victoria. My staff and I have also fulfilled our other ethical responsibilities in accordance with the Code. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
e ers’ The Members of the trust are responsible for the preparation and fair presentation of the responsi i ities financial report in accordance with Australian Accounting Standards and the Financial or t e Management Act 1994, and for such internal control as the Members determine is in n i necessary to enable the preparation and fair presentation of a financial report that is free report from material misstatement, whether due to fraud or error. In preparing the financial report, the Members are responsible for assessing the trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless it is inappropriate to do so.
60 MELBOURNE AND OLYMPIC PARKS TRUST INDEPENDENT AUDIT REPORT
Auditor’s As re ired the Audit Act res onsi ilit is to e ress an o inion on the financial r s o si i iti s re ort ased on the a dit o ecti es for the a dit are to o tain reasona le ass rance or t udit a o t hether the financial re ort as a hole is free fro aterial isstate ent hether o t i i due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable r ort ass rance is a hi h le el of ass rance t is not a arantee that an a dit cond cted in accordance ith the A stralian A ditin Standards ill al a s detect a aterial isstate ent hen it e ists isstate ents can arise fro fra d or error and are considered aterial if indi id all or in the a re ate the co ld reasona l e e ected to infl ence the econo ic decisions of sers ta en on the asis of this financial re ort As art of an a dit in accordance ith the A stralian A ditin Standards e ercise rofessional d e ent and aintain rofessional sce ticis thro ho t the a dit also
• identif and assess the ris s of aterial isstate ent of the financial re ort hether d e to fra d or error desi n and erfor a dit roced res res onsi e to those ris s and o tain a dit e idence that is s fficient and a ro riate to ro ide a asis for o inion he ris of not detectin a aterial isstate ent res ltin fro fra d is hi her than for one res ltin fro error as fra d a in ol e coll sion for er intentional o issions isre resentations or the o erride of internal control • o tain an nderstandin of internal control rele ant to the a dit in order to desi n a dit roced res that are a ro riate in the circ stances t not for the r ose of e ressin an o inion on the effecti eness of the tr st’s internal control • e al ate the a ro riateness of acco ntin olicies sed and the reasona leness of acco ntin esti ates and related disclos res ade the e ers • concl de on the a ro riateness of the e ers’ use of the going concern basis of acco ntin and ased on the a dit e idence o tained hether a aterial ncertaint e ists related to e ents or conditions that a cast si nificant do t on the tr st’s ability to continue as a going concern. If I conclude that a material ncertaint e ists a re ired to dra attention in my auditor’s report to the related disclos res in the financial re ort or if s ch disclos res are inade ate to odif o inion concl sions are ased on the a dit e idence o tained to the date of my auditor’s report. However, future events or conditions a ca se the tr st to cease to contin e as a oin concern • e al ate the o erall resentation str ct re and content of the financial re ort incl din the disclos res and hether the financial re ort re resents the nderl in transactions and e ents in a anner that achie es fair resentation co nicate ith the e ers re ardin a on other atters the lanned sco e and ti in of the a dit and si nificant a dit findin s incl din an si nificant deficiencies in internal control that identif d rin a dit
E B E on a A st 01 as dele ate for the Auditor eneral of ictoria
61 MELBOURNE AND OLYMPIC PARKS TRUST DISCLOSURE INDEX
The Annual Report of Melbourne and Olympic Parks Trust is prepared in accordance with all Victorian Legislation. This index has been prepared to facilitate identification of compliance with statutory disclosure requirements.
Ministerial Directions Compliance attestation and declaration SD 5.1.4 Attestation for compliance with 20 Charter and Purpose page Ministerial Standing Direction FRD 22H Manner of establishment and the 13 SD 5.2.3 Declaration in report of operations 4 relevant Ministers FRD 22H Purpose, functions, powers and 13 duties Financial Statements FRD 8D Departmental objectives, indicators 5 and outputs Declaration FRD 22H Key initiatives and projects 5 SD 5.2.2 Declaration in financial statements 59 FRD 22H Nature and range of services 13 provided Other requirements under Standing Directions 5.2 SD 5.2.1(a) Compliance with Australian 26 Management and structure accounting standards and other FRD 22H Organisational Structure 15 authoritative pronouncements SD 5.2.1(a) Compliance with Ministerial 53 Financial and other information Directions FRD 10A Disclosure index 62 SD 5.2.1(b) Compliance with Model Financial 21-59 FRD 15E Executive officer disclosures 54 Report FRD 22H Employment and conduct principles 17 FRD 22H Occupational health and safety policy 15 Other disclosures as required by FRDs in notes to the financial FRD 22H Summary of the financial results for 11 statements (a) the year FRD 11A Disclosure of ex gratia expenses N/A FRD 22H Significant changes in financial 6 FRD 21C Disclosures of responsible persons 53-55 position during the year and executive officers in the financial FRD 22H Major changes or factors affecting 6 report performance FRD 103G Non financial physical assets N/A FRD 22H Subsequent events 56 FRD 110A Cash flow statement 25 FRD 22H Application and operation of 19 FRD 112D Defined benefit superannuation 56 Freedom of Information Act 1982 obligations FRD 22H Compliance with building and 19 maintenance provisions of Building Note: Act 1993 FRD 22H Statement on National Competition 19 (a) References to FRDs have been removed from the Disclosure Policy Index if the specific FRDs do not contain requirements that are of FRD 22H Application and operation of the 19 the nature of disclosure. Protected Disclosure Act 2012 Legislation FRD 22H Details of consultancies over $10 000 18 Audit Act 1994 FRD 22H Details of consultancies under $10 18 Building Act 1993 000 Crown Land (Reserves) Act 1978 FRD 22H Disclosure of government 18 Disability Act 2006 advertising expenditure Financial Management Act 1994 (including Standing Directions) FRD 22H Disclosure of ICT expenditure 18 Freedom of Information Act 1982 FRD 22H Statement of availability of other 20 Melbourne and Olympic Parks Act 1985 (amended) information Occupational Health and Safety Act 2004 FRD 25C Victorian Industry Participation 18 Protected Disclosure Act 2012 Policy disclosures Public Administration Act 2004 FRD 29C Workforce Data disclosures 16 Victorian Industry Participation Policy Act 2003 Victorian Managed Insurance Authority Act 1996
62 MELBOURNE AND OLYMPIC PARKS TRUST This report has been printed on 100% post consumer recycled stock. Cover Image: © State of Victoria, Melbourne & Olympic Parks Trust 2018. Pete Glenane of HiVis Pictures This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968.