Mount Buller and Mount Stirling Alpine Resort Management Board Annual Report 2014–15 Contents

Introduction

Message from the Chairman 1 Chief Executive Officer’s Report 2

Overview

Entity Information 4 Year at a Glance 5

Organisational Structure

Board of Directors 6 Resort Management Team 8 Organisational Chart 9

Strategic Direction and Operations

Introduction 10 Our Services 12 Our Environment 15 Our Tourism 18 Our Community 20 Our People 22 Our Corporate Governance 24

Financial Statements

2014–15 Financial Statements 29 Notes to Financial Statements 34 Independent Auditors Report 71 Disclosure Index IBC

In accordance with the Financial Management Act 1994, I am pleased to present the Mount Buller and Mount Stirling Alpine Resort Management Board Annual Report for the year ending 31 October 2015.

Jennifer Hutchison Chairman Mount Buller and Mount Stirling Alpine Resort Management Board 3 February 2016 Annual Report 2014–15 1

Message from the Chairman

Mt Buller and Mt Stirling were kept busy through the 2015 winter season, albeit with less than optimum natural snow conditions.

While visitor numbers were down Our stakeholder relationships and thanked a year ago in this slightly, the extensive snow continue to mature, this year seeing space – and I do so, again, making facilities ensured that the establishment or continuation of with heartfelt gratitude. Some there were adequate amounts of a refreshing number of cooperative members have reapplied for Board man made snow to provide cover groups, each focused on particular roles, others have not. The vital for the full length of the season. matters relative to a special interest. component – a culture of maturity New throughput improvements I acknowledge the substantial and attentive service – will continue. implemented at Resort Entry efforts, in particular, of the Buller Arts In closing, I would like to streamlined the arrival experience Association, Buller Ski Lifts, and the acknowledge the continued and at Mt Buller. We continue to devise Mt Buller Ratepayers Association. supportive professional culture in methods to improve the visitor The Club Lodge Working Group is existence within the RMB. The RMB experience. making great progress, as is the Executive team has continued to newly established Summer Strategic We were delighted to host the contribute to Board discussion from Directions Working Group. I extend Victorian Interschools, the South within their portfolios of expertise. my gratitude to John Huber and his Australian Interschools and the The interchange and cross team, and to members of the Board, Australian National Interschools referencing of ideas from executive who have taken on additional duties during winter 2015. These events to Board, from Board to community to support these initiatives. Our joint continue to underpin our strengths. and return, is in a far better position commitment can only enhance our The number of participants in than it was at the commencement winter and summer economic and these events has increased of my Chairmanship. I am proud community health. and the number of participating of that achievement. It has made schools is expanding. These are Summer visitation and green a difference. promising signs for the future season activities continue to grow, Our outstanding CEO, John of the competition. We are part in particular through recreational Huber, is in his sixth year of service of a multi-stakeholder business and competitive mountain biking, and maintains his passion and unit that oversees the continued and via major events such as Targa. energy. He continues to make an success and growth of the Victorian The Epic Trail has placed Mt Buller outstanding contribution to the Interschools. The unit combines in an internationally competitive current operation and our future. funding and input from the RMB, arena for mountain biking. Mountain Chamber of Commerce, Ratepayers running is emerging in popularity I commend to you the 2014-2015 Association and Buller Ski Lifts. too. The green season calendar year and this Annual Report of its is populated with a broad range activities. The effects of climate change on of cultural, sporting and outdoor the long-term sustainability of Mt events. We move closer to summer Buller and the vibrant summer and sustainability. This is a major winter community it contains, form contribution via effective business an integral part of the ongoing Jennifer Hutchison modelling designed to counteract strategic discussions of the Board. Chairman climate change effects on winter As part of our response, our Water Mount Buller and Mount Stirling length and snow depth. Storage Project continues to rank Alpine Resort Management Board as our highest priority project. It Your current Board, myself is a vital component of our future included, completes its service on sustainability via our snow making December 31 this year. The Board capacity. To date, strong progress has remained the responsible and has been made on this project. professional team I acknowledged 2

Chief Executive Officer’s Report I would firstly like to acknowledge our Board, which with all Members returning for the 2014-15 year, provided great experience and enthusiasm. This coupled with their love for the Alps helped enable us to deliver great outcomes and successes for the Resorts throughout the year. Introduction

Winter 2015 A number of Master Plan projects public amenity. One key project The 2015 snow season delivered have already been completed, saw the completion of improved less than favourable natural including Athlete’s Walk, Black guest amenities at Mount Stirling. snowfalls in comparison to the Forest Walk, the Resort Reception Other achievements included the outstanding natural snowfalls and Interpretive Centre at Alpine opening of Australia’s first ever that were received during the Central, the redevelopment of EPIC Mountain Bike Trail, aptly 2014 winter season. However, the YHA now Buller Central Site, named The Australian Alpine Mt Buller’s extensive snowmaking along with the complete renovation Epic Trail, which offers 40kms infrastructure enabled the season and extension to Village Square of long distance, cross country, to have a consistent snow product Plaza. Additionally the next stage descending trail ride. Mount Buller through to the end of the declared of the implementation phase has was also selected as the venue for season. With limited natural begun with the commencement of the inaugural Australian Mountain snow, resort visitation was down detailed analysis that will underpin Bike Summit which took place in slightly from 2014, but 17% above the more strategic projects such December 2014. The Summit will the 10 year average, with Mount as the development of world class be back at Mt Buller in December Buller welcoming 300,437 visitors snow play facilities at Horsehill, the 2015 and is quickly becoming throughout the 2015 winter season, Valley North Parking facility and the a critical industry event for the compared to 314,586 in 2014. Horsehill to Village gondola. Mountain Biking sector. Visitor numbers at Mount Stirling Achievements Innovative and best practice also finished marginally lower environmental management Across the 2014-15 period, with 6,096 visitors across the programs continued to benefit initiatives to improve the visitor 2015 winter compared to 7,338, the resorts during 2014-15. The experience were undertaken the previous winter, but 20% ‘Living Bin’ organics management and implemented for the winter above the 10 year average. system continued to recover high season. These included significant amounts of food waste, further Resort Master Plan changes to Resort Entry which reducing the amount of waste minimised the wait time that guests The Mount Buller Resort going into landfill. The Mountain had previously experienced upon Master Plan is now well into Pygmy-possum trans-location arrival to the mountain during peak its implementation phase and program continued with monitoring arrival times and gave guests the continues to guide the resort’s for the year indicating very strong opportunity to pre purchase Resort development over the next growth in the population, and the Entry on line which enhanced 10–15 years as well as providing eradication of the noxious plant the arrival experience for guests. confidence for individual Orange Hawkweed continues to In addition, a substantial capital stakeholders to commit investment improve. dollars to the mountain. works program was completed, with a strong focus on improving Annual Report 2014–15 3

Key financial data 2013–14 2014–15 Change ‘000 ‘000 ‘000

Net Result 659 1,339 680

Total operating expenditure 12,555 12,765 210

Gas and electricity 834 769 (65) Finance costs 108 91 (17) (Gain)/loss on disposal of assets 11 19 8 Health 257 249 (8) Depreciation 1,680 1,808 128 Staff costs 3,867 3,929 62

Cash on hand 5,123 4,493 (630)

Priorities ahead Acknowledgements In addition, I wish to acknowledge Along with delivering a The role of leading the Resort the support and dedication comprehensive capital works Management team involves, afforded to me by the Resort program, we will continue among other things, attempting to Management team. Their hard the planning and design of a satisfy the desire, expectations and work and dedication has allowed supplementary water storage needs of its many stakeholders the organisation to deliver some facility at Mount Buller, and the and in that regard I would like outstanding results and to Buller-Stirling Link Road. Both of to acknowledge the input and distinguish itself as a leader in these key infrastructure projects support of the Department of alpine resort management. achieved significant focus and Environment, Land, Water and movement during 2014-15, with Planning, the Department of construction works on these two Economic Development, Jobs, key infrastructure projects hoped Transport and Resources, Buller to be able to be commenced in Ski Lifts, the Mount Buller Chamber the near future. of Commerce, the Mount Buller Ratepayers Association,and many An implementation plan has been others in this endeavour. created for the development of the supplementary water storage I would also like to express my John Huber facility on Mount Buller, with works appreciation for the support Chief Executive Officer scheduled to commence during and guidance of the Board. the 2015-16 period. The new The Board’s strategic focus is water storage facility will ensure delivering great results for our the security of both potable and resorts. snowmaking water on Mount Buller for the coming years. Additional development of initiatives and events to encourage year round visitation will continue while securing the winter economic engine of the resorts through enhancement of Mount Buller and Mount Stirling Winter product offerings, services and brands. 4

Entity Information The Mount Buller and Mount Stirling Alpine Resort Management Board (RMB) is a statutory authority established by the Alpine Resorts (Management) Act 1997 and responsible to the Minister for Environment, Climate Change and Water.

The RMB was established in 2004 The Minister is responsible for by an amendment to the Alpine Crown Land management and Resorts (Management) Act 1997 delegates their authority to the Introduction Overview (The Act), succeeding the separate RMB to implement Government Mount Buller Resort Alpine policy in relation to the use and Management Board and the Mount management of the alpine resort. Stirling Alpine Resort Management The RMB accepts directions Board. The RMB is charged under —— Provide a range of services or guidelines from the Minister the Act with managing the Mount in the nature of: garbage regarding its performance and Buller and Mount Stirling Alpine disposal, water supply: recycled the discharge of its functions, Resorts. and potable, sewerage, gas, duties or power and undertakes to drainage, roads, fire protection The RMB operates under the adopt best practice in all activities, and snowmaking. provisions of the Act and is reporting to the Minister through —— Charge contributions for the established: the Annual Reports, the Corporate provision of those services; Plan and Quarterly Financial —— As a Body Corporate with Reports. The RMB also complies —— Collect fees prescribed by the perpetual succession; with the directions of the Minister Regulations for the Resorts; —— With its own Common Seal; for Finance and acts as a referral —— Attract investment for the —— With the power to sue or be authority for development matters. improvement of the Resorts; sued; —— Carry out any other function —— To acquire, hold and dispose of Functions of the RMB conferred on the RMB under the real and personal property; and As set out in Section 38 of the Act or any other Act; —— To carry out its functions as a Act, the specific functions of the —— Plan for the development, Body Corporate may do at law. RMB are to: promotion, management and —— Act as a Committee of use of the Resorts; Statutory Reporting Management of any —— Manage the Resorts in The RMB is a statutory authority. Crown Land deemed to be accordance with the objective The responsible Ministers during permanently reserved under of the Act as amended; the 2014-15 reporting period were: the Crown Land (Reserves) —— Undertake research into alpine Act 1978 in the Resorts; —— The Hon Ryan Smith MP, resort issues; Minister for Environment and —— Contribute together with Tourism —— Contribute to and support the Climate Change for the period Victoria and the Alpine Resorts operation of the ARCC; form 1 November 2014 to Coordinating Council (ARCC) —— Prepare and implement a 3 December 2014; and to the overall promotion of Strategic Management Plan alpine resorts; —— The Hon Lisa Neville, Minister for the Resorts; and for Environment, Climate —— Develop a tourism and —— Expend or apply revenue of Change and Water for the marketing strategy for and the RMB in accordance with a period from 4 December 2014 to promote the Resorts, and direction of the Minister under to 31 October 2015. collect and expend voluntary Section 36(1A) of the Act. contributions from commercial undertakings in the Resorts The RMB must carry out its for this purpose; functions in an environmentally sound way. Annual Report 2014–15 5

Year at a Glance

Financial Summary 2010–11 2011–12 2012–13 2013–14 2014–15 $‘000 $‘000 $‘000 $‘000 $‘000

Operating Revenue — Gate Entry 3,531 3,946 3,613 4,584 4,648 — Site Rental Fees 3,671 3,784 3,756 3,842 3,716 — Service Charges 3,179 3,299 3,382 3,538 3,636 — Sale of Rights to Lease and 175 0 0 0 932 Develop Crown Land — Government Funding 344 136 175 382 148 Other Revenue 1,186 1,077 1540 879 1,043 Operating Expenditure 11,616 12,027 12,107 12,555 12,765 Other Economic Flows -25,698 -3,504 -90 -11 -19 Comprehensive result -25,2281 -3,2892 269 659 1,339 Total Assets 173,4061 170,4752 170,931 171,181 172,046 Total Liabilities 3,984 4,304 4,396 3,987 3,434 Net Assets 169,422 166,171 166,535 167,194 168,612 Assets Comprise: — Land 110,6881 110,688 110,688 110,688 110,688 — Other non-financial assets 53,5741 51,3902 53,398 54,898 55,154 — Financial assets 9,144 8,397 6,845 5,595 5,671 1 The comprehensive result for 2010–11 includes a reduction of $25,705,000 in the ARMB’s asset revaluation reserve resulting from asset revaluations directed by the Valuer-General Victoria. 2 The comprehensive result for 2011-12 includes a reduction of $3,370,425 in the RMB’s asset revaluation reserve resulting from asset revaluations directed by the Valuer-General Victoria. Item / Key Performance Indicator 2013–14 2014–15

Environmental Quality Number of Readings Within EPA Guidelines — Escherichia Coli 13/16 9/12 — Biochemical Oxygen Demand (5 day) 15/16 8/12 — Suspended Solids 15/16 9/12 Percentage of Total Waste Recycled 46% 51.50%

Social Responsibility Visitor Average Nights on Mountain (Based on Gate Entry Sales, excl. Day Visitors) 2.3 2.4 Total Snow Making Water Used (megalitres) 230 275 Total Water Used for Fire Fighting (megalitres) 0 0 Total Winter Passengers using Free Shuttles 698,785 617,812 Mount Stirling Patrol Callouts 14 18

Economic Viability Mount Buller Winter Visitors* 309,875 300,437 Mount Buller Summer Visitors# 82,723 89,695 Mount Buller Visitor* Days (Winter) 497,835 465,014 Mount Stirling Winter Visitors* 7,228 6,096 Mount Stirling Summer Visitors# 46,369 34,698 Mount Stirling Visitor* Days (Winter) 9,828 7,677 Vehicles Through The Gate (Winter) 69,428 64,909 Total Investment by Private Developers ($'000) 2,459 1,325 Capital Works Expenditure ($'000) including expenditure on plant and equipment 3,265 2,631 Lease Holders 177 177 Sub-Leases Transferred 36 24 Accommodation Availability of "Hot Beds" 1,587 1,587 Accommodation Availability of "Cold Beds" 6,684 6,684 Mount Buller Maximum Snow Depth (cm) (Average) 120 76 Mount Stirling Maximum Snow Depth (cm) (Average) 109 69 Total Value of Approved Planning Permits ($'000) 2,086 800 # Summer visitor statistics for 2013-14 and 2014-15 have been updated using RMB final numbers as Alpine Resort Coordinating Council final numbers were unavailable. * Winter visitor statistics for 2013-14 and 2014-15 have been updated using Alpine Resorts Coordinating Council final numbers. 6

Board of Directors The Minister for Environment, Water and Climate Change appoints Members of the Board, including a Chairman and Deputy Chairman, based on administrative, managerial, financial, environmental, legal, sporting and tourism skills necessary to oversee the running of the Resorts competently. Board Members are appointed for three years and are eligible for reappointment. Remuneration is determined by the Victorian Government guidelines.

The Board Members that Bryce Moore Andrew Evans served for the 2014-15 year

Introduction Organisational Structure were appointed by the State Appointed 30 April 2010 Appointed 4 June 2013 Government for three year Re-appointed 4 June 2013 terms. —— Founder and joint Managing —— Part owner and director, Director of Real Estate Jennifer Hutchison Moremac Property Group Development Corporation Pty Chairman —— Former Division Councillor, Ltd Property Council of Australia —— Founder and joint Managing Appointed 28 October 2011 (Victorian Division) Director of Canopi Homes Pty. —— Graduate, Australian Institute —— Member and former director, Ltd. of Company Directors (GAICD) Merrijig Ski Club —— Co-Founder and Director of Global Pipe Pty. Ltd —— Member, Alpine Resorts —— Extensive property, planning Coordinating Council (ARCC) and development experience —— Co-Founder of National in the private and Government Embedded Networks Pty. Ltd. —— Former Deputy Chairman, sectors. —— Director of Futurefish Lake Mountain Alpine Resort Foundation Management Board Kate Brooks —— Member of the Victorian —— Enthusiastic writer, beekeeper, Appointed 28 October 2011 Planning and Environmental and walker. Law Association —— Graduate, Australian Institute of —— Wealth of knowledge in the Dean Belle Company Directors (GAICD) Deputy Chairman property industry spanning —— Fellow, The Australian Rural urban renewal, residential Leadership Foundation Appointed 30 April 2010 and industrial subdivision, Re-appointed 4 June 2013 —— Director, KAL Analysis development of commercial, —— Social research specialist, with industrial and retail projects, —— Owns and operates the a background in corporate as well as medium and high- Mansfield Regional Produce affairs, marketing, business density residential development. Store and Delatite Hotel management and extensive —— Passion for environmental —— Previous Judge for the Victorian experience in public sector causes and is a keen skier. Tourism Awards (3 years) governance and policy and —— Over 20 years experience community policy John Lithgow operating businesses in and —— Adjunct Senior Fellow, The Appointed 4 June 2013 around the ski industry in Australian National University, Thredbo, Mount Buffalo and Research School of Social —— Graduate, Australian Institute of Mount Buller, including two Sciences Company Directors (GAICD) years as Assistant Manager —— Avid skier originating from ——Third generation Owner Operator for Buller Ski Lifts (BSL). Mount Buller, bushwalker, of the Yarra Glen Grand Hotel, in rower and aviator Yarra Glen, Victoria —— Member of the NSW Marine —— Solid background in tourism Estate Expert Knowledge Panel, promotion Ministerial Appointment. —— Keen skier and cyclist, with interests in politics and physical fitness. Annual Report 2014–15 7

—— William Angliss Hospitality Graduate – Diploma Hotel Board Committees Management Risk, Audit and Finance Remuneration Committee —— At the forefront of the Committee establishment of the Yarra The Remuneration Committee Valley as a world wide The RAFC is responsible for overseeing: is responsible for providing a recommendation to the Board regarding tourism destination. —— Financial performance; CEO remuneration and performance Elaine Farrelly —— The quality and effectiveness of RMB appraisal. In addition, the Committee accounting, management reporting, ensures that all remuneration and policies Appointed 16 August 2013 policies and procedures; concerning personnel are consistent —— Global Finance Director, —— Compliance with the Financial with Victorian Government standards. Movember Directions as issued by the Minister for Finance; Governance Committee —— Chartered Accountant with more than 20 years’ experience —— Identification and assessment of risk, The Governance Committee was management of identified risks, referral established in the 2011–12 year to assist —— Executive level experience of risk matters to the Board; the Board to understand its mandate of across the telecommunications, best practice. The Committee is designed media, property development, —— The scope of work and performance to be a reference point for discussion, manufacturing and not for of both external and internal auditors; debate and assistance in the application profit sectors —— Sign off of accounting policies; and of best practice. —— Skilled in commercial —— Continuous monitoring of a framework development and assessment and processes in compliance with Future Business Modelling of new business and new the Financial Management Act 1994, Committee products and other laws and regulations that The Future Business Modelling Committee significantly impact on RMB code of —— Fellow member of the Australian was established in the 2012-13 year to conduct. Institute of Company Directors assist the Board to examine the current —— Non-executive director of All RAFC Members are deemed operating model and explore a range of the Australian physiotherapy independent under the Financial initiatives that will lead to improvements in association Management Act 1994. the RMB Financial Operating model.

Pecuniary Interest Water Storage Project Committee Members of the Board and The Water Storage Project Committee Executive Officers have completed was established in the 2012–13 year to a Declaration of Private Interests assist with the design, development and and do not participate in decision- construction of a water storage facility making where a conflict of interest on Mt Buller. exists.

Total Board Member Meeting Attendance Jennifer Dean Bryce Dr Kate Andrew Elaine John Meetings Where Eligible to Attend Hutchison Belle Moore Brooks Evans Farrelly Lithgow Held

Board Meetings 9 10 6 9 8 8 10 10

Risk Audit and Finance Committee 4 – 3 – – 4 – 4

Remuneration Committee 1 – – 1 – – – 1

Governance Committee 4 – – 4 – – 4 4

Future Business Modelling Committee 1 – 3 – 1 4 – 4

Water Storage Project Committee – – 5 – 5 – – 5 8

Resort Management Team

John Huber Chief Executive Officer Appointed November 2009 The duties and responsibilities of the RMB Chief Executive Officer are to: —— Carry out the Board’s directions; —— Manage day to day operations of the Resorts in accordance with approved policies; —— Manage and direct the organisation to achieve optimum profitability and effective use of business assets and human resources; —— Develop and review policy, and plan and control major functions relating to the operation and administration of the organisation through subordinate executives; and —— Leading the professional RMB team and enabling the Board’s vision, direction and framework for the future development of the Resorts in an environmentally, economically and socially sustainable manner. Introduction Organisational Structure

Glenn Thornton Paul McNamara operation of resort utilities and infrastructure such as the provision Chief Financial Officer Property and Development of horticultural and amenity Manager Appointed March 2012 services, snow clearing and ice Appointed October 2012 management, potable water Responsible for financial supply, waste water treatment, management, risk management, Responsible for management of water reticulation systems and finance (planning and analysis), leasing, sub-leasing, licensing, water supply for snow making. audit (systems and controls), statutory planning matters, and reporting, insurance, information major capital development. Amber Gardner technology, contract and Director Marketing, legal services. Denise O’Brien Sales and Business Human Resources Manager Development Louise Perrin Appointed June 2012 Appointed March 2006 Environmental Services Manager Responsible for the people, Responsible for developing culture and development of long-term strategic initiatives Appointed October 2004 the organisation including that drive market share, Resort Responsible for environmental staff recruitment, training and yield and business growth. This performance development. management of the Resorts and incorporates marketing strategy, Mount Stirling resort operations product development, market Andrew Markwick and ski patrol. Environmental research, event management, General Manager management activities include strategic communications, Resort Operations endangered species and wildlife brand management, commercial management, vegetation Appointed March 2012 partnerships, business management, pest plant and development, resort entry animal control, track and trail Responsible for resort operations operations and visitor information development and maintenance, at Mount Buller and has the services. waste management initiatives, primary function of conducting advice during construction and works and capital works that development, and education and preserve and enhance the communication programs. presentation and operational functionality of the resorts. This includes the effective and efficient Annual Report 2014–15 9

Organisational Chart

Governance Committee Mount Buller & Mount Stirling Alpine Resort Management Board Risk, Audit & Finance Committee Jennifer Hutchison—Chairman Dean Belle—Deputy Chairman Remuneration Committee Bryce Moore Kate Brooks Andrew Evans Future Business Modeling Committee John Lithgow Elaine Farrelly Water Storage Project Committee

Chief Executive Officer Executive Assistant John Huber

General Manager Chief Financial Environmental Property & Human Resources Director Resort Operations Officer Services Manager Development Manager Marketing, Sales Andrew Markwick Glenn Thornton Louise Perrin Manager Denise O’Brien & Business Paul McNamara Development Amber Gardner

Operations Financial Environmental Master Planning OH&S Marketing Strategy Water and Management Management Resort Development Recruitment Brand Development sewerage Statutory Report Biodiversity Statutory Planning Training & Product Management Emergency Audit Site Leases and Development Development Management Insurance Waste Management Sub Leases Performance Media Management & Recycling Asset Management Procurement Management Event Management Energy Management Engineering and Information Staff Amenities Market Research Geotechnical Technology Trails Management & Analysis Services Mount Stirling Stakeholder Fleet Management Operations Relations and Workshop Mount Stirling Customer Service services Ski Patrol Resort Entry Capital Works Licensing Post Office Snow play Operations operations Visitor Information 10

The RMB is committed to fulfilling its role within the context of the Victorian Government’s Alpine Resorts Strategic Plan 2012.

The RMB recognises its stewardship responsibility for significant public assets and continues to manage these assets in a socially, economically and environmentally sustainable manner, while facilitating the public’s ability to access and enjoy an alpine experience at all times of the year. The Resorts’ Strategic Management Plan adopts the six strategic directions identified in the Alpine Resorts Strategic Plan 2012:

Enhancing the visitor experience and developing resorts

Delivering resort services and infrastructure efficiently and accountably

Building Partnerships

Respecting the Alpine Environment

Broadening access opportunities Introduction Strategic Direction and Operations Regulatory Reform

These strategic directions identified in the Alpine Resorts Strategic Plan 2012 underlie the Resorts’ vision and six focus areas, which contain intent statements and objectives that form the basis of the RMB’s internal strategic and operational planning, and is how information is categorised in this report (see the summary on the following page). Annual Report 2014–15 11

Vision More than a mountain. Mt Buller and Mt Stirling are welcoming and accessible Australian alpine resorts. Their unique environments, histories and their sense of community create great mountain adventures and experiences all year round.

OUR SERVICES To provide cost-effective, quality facilities and services that meet our community’s needs and support the viable development of the Resorts.

OUR ENVIRONMENT To protect and enhance biodiversity within our natural and modified environments and to strive for healthy and resilient ecosystems and promote sustainable practices.

OUR TOURISM To develop the Resorts as viable tourism destinations that attract visitors by offering a range of high quality activities, facilities and experiences.

OUR COMMUNITY To build and facilitate a vibrant and prosperous community and be a valued community member.

OUR PEOPLE To be an employer of choice that values and is valued by all employees.

OUR CORPORATE GOVERNANCE To maintain the integrity and value of our organisation through sound governance and financial management. 12

Our Services

Provide cost-effective, quality facilities and services that meet our community’s needs and support the development of the Resorts through: ——Providing safe and reliable water, wastewater, and waste removal facilities and services ——Developing initiatives to further snow-making capabilities ——Managing and improving access to and movement around resorts ——Progressing the leasing and licensing process to support appropriate resort development and provide necessary community services ——Maximising asset performance by striving for best use, and improving asset efficiency through strong preventative maintenance

Performance Indicators – Corporate Plan Outputs 2014-2015 Performance Indicator KPI Definition of Measure Target Achievement Strategic Direction and Operations

On Mountain Services Range of on mountain services Increased range of service over prior Achieved year Planning Timelines Planning timelines meet council norms Meet council norms Achieved Leasing Framework Lease inequities identified and Year 1 Identify inequities Years 2 & 3 Achieved removed Remove inequities where possible

Potable Water —— Promotion of public health by Sewage Treatment The provision of safe drinking ensuring safe drinking water The RMB continues to monitor water is a core service provided by for consumers; the Sewage Treatment Plant as Resort Management. It is critical —— Continual monitoring of the per Environmental Protection to the ongoing functionality of drinking water supply system Agency (EPA) requirements to the Resort. Resort Management to ensure the barriers to preserve water quality in local supplies drinking water to the contamination and treatment stream networks. On 12 occasions Mount Buller Village, Mirimbah process remain efficient; a total of 12 samples were taken Picnic Area and Telephone Box —— Detailed and systematic for Escherichia Coli, biochemical Junction within Mount Stirling evaluation of water systems, oxygen demand and suspended Resort. Drinking water is managed identification of hazards and solids. There were a total of in accordance with the Safe risk assessment; and five non-compliances from five Drinking Water Act 2003 and is samples. Investigations have —— A preventative approach, which disinfected using combinations determined that storm water is places drinking water quality of UV, chlorination and filtration. entering the sewage collection monitoring in an appropriate In 2014-15, 485ML of water was system which is stretching the verification role. transferred from Boggy Creek to treatment plant and leading to the Burnt Hut Reservoir for the The Safe Drinking Water Risk the non-compliance issues. Mount Buller Village potable water Management Plan is regularly Investigations and remedial supply. Of this, 239ML was then updated to ensure it reflects actions have commenced. transferred to Sun Valley Reservoir changing local circumstances. for snowmaking. The plans were reviewed and Garbage Collection updated in early 2014. The Plan Over the 2015 winter season, 276 Safe Drinking Water Risk was independently audited in tonnes of solid waste to landfill Management Plan May 2014 and a compliance was collected compared with 306 In accordance with the Safe certificate granted. tonnes in winter 2014. A total of Drinking Water Act 2003, the 709 tonnes of solid waste was RMB adopts a preventative Water Reuse Project collected over the year compared management approach to the The Resort Management operates with 699 tonnes in 2013–14. provision of safe drinking water, a Class A standard water recycling from catchment to consumer. plant. This plant is capable of providing recycled water that can The Safe Drinking Water Risk be used for snow making thus Management Plan includes: augmenting the natural supply of water. Annual Report 2014–15 13

Solid Waste Recycling 2013–14). This successful organics The RMB continually strives to management system won the Tidy improve its waste management to Towns Sustainable Communities protect the sensitive and unique Zero Waste Award in October environment of the Resorts, by 2011, and achieved the Premier’s increasing recycling, diversion Sustainability Award in September of organics and reducing the 2012. An in-vessel composting amount of solid waste going to unit was operational for the third landfill. These goals are strongly consecutive winter season in 2015 supported by active involvement as we work towards achieving a in the North East Waste and complete on site solution. Resource Recovery Group (NEWRRG), and a proactive and Vehicular Access dynamic working relationship with Snow Clearing RMB waste contractors, 4SITE A second deicing salt and calcium Australia Pty Ltd. chloride spreader was added to In 2014–15, 51.5% of waste the snow clearing fleet in 2014. It (including organics) was recycled. is a state of the art machine that The RMB continued to encourage has been imported from Europe and promote best practice waste where this method of road clearing management by: is used extensively and is world’s best practice. It is also used in —— Improving and increasing the North America and northern Asia non-recyclable, recyclable such as Japan. Similar systems are and organics ‘binfrastructure’ also used in Kosciuszko National throughout the Resorts; Park. It is a highly accurate system —— Offering hard waste and green that has been introduced to reduce the Resort overnight or travelling waste collection points (items the use of grit in the resort. beyond the Skating Rink Car Park are recycled/mulched where (past the snowline) are required appropriate); Public Transport to carry chains at all times. —— Continued improvement and The RMB continued to provide The decision regarding chain expansion of public place public transport to visitors at Mount requirements is determined using recycling and waste facilities Buller through its contract with a decision matrix based on the throughout the Village and Mansfield-Mount Buller Bus Lines Bureau of Meteorology weather ski fields; (MMBL). The complimentary bus forecasts and the current state of —— Improved cigarette butt shuttles from the Resort carparks the road. litter management including to the Village centre and around improved infrastructure; the Village roads carried 617,812 Mount Buller-Mount Stirling passengers in 2014-15 compared Link Road —— Providing re-usable bags for to 698,785 in the previous year. residents and guests as part The RMB plans to construct a link The RMB continues to work with of the ‘Save our Snow, Just road between the existing Corn MMBL to provide a taxi service that Say No’ campaign; Hill Road and the Circuit Road is cost-effective and valued by the at Howqua Gap, linking Mount —— Advertising and promoting paying passenger. Buller and Mount Stirling. The best practice waste Link Road development responds management; and Wheel Chains Policy to the RMB’s risk management —— Implementing education The RMB is aware of the need plan, providing greater access strategies. to balance ease of access and for emergency vehicles to both affordability with risk and public Since the inception of the mountains. The Link Road will safety. In 2014-15, the RMB successful trial in organics also become an appealing touring continued to employ its flexible management during the 2010 circuit, thereby increasing year Mount Buller Wheel Chain Policy, winter season, the ‘Living Bin’ round visitation to both Resorts. which allows the RMB to determine Program has continued to An application for a planning whether or not vehicles are involve private and commercial permit to construct the Link Road required to carry wheel chains on properties, increasing the diversion was lodged with DTPLI in 2013 and a daily basis, based on weather of organics from landfill. During is currently being considered by forecasts and prevailing road 2014–15, over 48 tonnes of organic the Minister for Planning. conditions. The policy applies to waste was diverted from landfill day visitors only. Those staying in (compared with 44 tonnes during 14

Leasing Administration In accordance with standard Each SEMP is reviewed as an The RMB continues to administer practice, adjustments to service important part of the planning the Minister’s Alpine Resorts charges levied on some sites were process, aimed at minimising Leasing Policy, utilising a standard initiated to reflect reassessments environmental impact during lease document which includes associated with supplementary the construction phase and recognition of lessee’s rights to valuations undertaken on new rehabilitation of sites post improvements on leased land, and developments or properties which construction. had been subject to substantial the ability for existing site holders Projects with an estimated alterations. to negotiate new leases prior to construction value of $800,000 the expiry of their current lease. were completed in the year to Land Release All new leases are endorsed by 31 October 2015 in addition the Minister. The aim of the RMB’s land release to numerous smaller projects activities is to encourage the In order to develop measures such as recladding and painting provision of quality developments to further enhance lessees and that are exempt from planning on new sites in areas identified financiers investments in the requirements.

Strategic Direction and Operations as being suited for development. Resorts, lease registration has now Two sites were released via an been introduced for all new leases. Compliance with building expression of interest campaign During 2014-15, 5 new leases were and maintenance provisions during 2014-15 resulting in a issued compared to 14 in 2013-14. of the Building Act 1993 Development Agreement with In accordance with the provisions For the 2014-15 year there were Development Lease attached Section 192 (1) of the Building a total of 24 consents granted for for Site 237 while negotiations Act 1993, the RMB carries transfers of sub-leases and/or regarding the release and out the administration and shares compared to 36 in 2013- development of Site 119 will enforcement of Parts 3, 4, 5, 7 and 14. There were 7 consents for new continue into 2015-16. 8 of the Building Act and Building sub-leases and 8 consents for Regulations on Mount Buller and the mortgage of sub-leases and/ Planning Permits and Private Mount Stirling. or shares granted in the year to 31 Investment In 2014-15 a total of 7 new October 2015. The RMB was also Health Services a party to the transfer of 4 head planning permit applications for leases. development proposals with a The RMB continues to facilitate the declared estimated construction provision of medical services to Site Rental value of $21.255 million were visitors, residents and employees Lessees are required to pay site reviewed and processed by the on Mount Buller during the snow rental for the use of Crown Land Board compared to the 10 (with season. Churchill Drive Pty Ltd on Mount Buller. During 2014- a total value of $3.086 million) managed the Mount Buller Medical 15, rent reviews for 20 sites were processed in the previous year. Centre again this year, with the undertaken in accordance with support of doctors and staff from The RMB has continued to engage the applicable lease provisions. the Mansfield Medical Clinic. appropriate consultants to assist in This service provided a range of Service Charges its deliberations on these matters. services for residents, staff and Service charges are levied on all In 2014-15, 2 planning permits visitors of Mount Buller including leased sites within the Resort in were issued for proposed health screening, monitoring and accordance with Section 13 of development projects and education, assessment of acute the Alpine Resorts (Management) works with a declared estimated medical presentations, treatment Act 1997. Service charges are construction value of approximately of minor wounds, medical reviewed annually in accordance $80,000. management, liaising with medical with RMB policy. A Site Environmental Management practitioners, counselling and Service charges are currently Plan (SEMP) is required for all referral. based solely on 2004 CIVs. The planning applications for site Mount Buller continues to provide Service Charge rate for 2014-15 development on Mount Buller. appropriate health services for was 0.86933% of the 2004 CIV specific events and activities held compared to a rate of 0.85212% over the Summer period. of the 2004 CIV in 2013-14. Annual Report 2014–15 15

Our Environment

Protect and enhance biodiversity within our natural and modified environments, strive for healthy and resilient ecosystems and promote sustainable practices through: ——Managing the endemic alpine flora and fauna communities within the Resorts ——Managing pest plant and animal species to limit impacts on indigenous species ——Reducing the Resorts’ environmental footprint by developing and promoting sustainable practices and programs ——Enhancing ecological awareness within the community

Performance Indicators – Corporate Plan Outputs 2014-2015 Performance Indicator KPI Definition of Measure Target Achievement

Renewable Energy Renewable Energy (RE) as a Year 1 5% Not achieved Consumption by Board proportion of total energy consumption Year 2 10% by Board related activities per annum. Year 3 15% Unit: % Renewable Energy Renewable Energy (RE) as a RE to comprise at least 30% of Information Consumption by proportion of total energy consumption resorts’ total energy use by 2020 unable to be Resort by Resort related activities per annum. (see Note 1) obtained Unit: % Solid Waste Disposed Annual Weight of solid waste disposed 4% decrease p.a. Achieved to Landfill to landfill per visitor day: Unit: kg/visitor day Habitat Protection Habitat Protection Plans in Corporate 100% Achieved Programs Plan implemented Notes 1. A review will be undertaken to determine whether this information can be collected. Achievement of this target will be substantially dependent on Federal funding supports.

The RMB aims to manage the Mountain Pygmy-possum population continues with excellent unique alpine environments of Recovery Plan results for the 2014–15 year with Mount Buller and Mount Stirling in The Mount Buller Alpine Resort the ongoing translocation projects a sustainable manner, maintaining is home to a population of and on-ground management of the the balance and quality of alpine Australia’s iconic alpine possum population resulting in the highest ecosystems. In 2014–15, many – the endangered Mountain numbers ever being recorded. key environmental objectives Pygmy-possum (Burramys During 2014–15, approximately were achieved. parvus). Habitat degradation 2,000 plants of local genetic and fragmentation, predation provenance (specifically chosen to Environmental and climate change threaten its provide food and cover) have been Management Plan existence across the Australian established in key habitat areas. The Environmental Management Alps. When serious declines in Plan describes specific Pygmy-possum numbers were In addition, important studies have environmental objectives for the observed between 2001 and been completed, identifying and Resorts. Environmental issues 2003, the RMB, in partnership with mapping new habitat including addressed within the Plan include BSL and the then Department habitat re-creation sites, tunnels sustainable management of of Environment and Primary linking previously fragmented geological and geomorphologic Industries (DEPI), developed a habitats and revegetation/ features, soil conservation, rivers five-year Recovery Plan to protect rehabilitation sites. and catchments, flora, fauna, fire, the species and its habitat. The The RMB is represented on indigenous and post-settlement Recovery Plan has been reviewed the Mountain Pygmy-possum cultural heritage, waste, energy and updated to direct conservation State Recovery Team, and is efficiency, air quality, visual and actions for a further 5 years. committed to continuing proactive noise amenity, visitor capacity It is a guide for the continued management of the species. and community awareness and management of the species, engagement. The Environmental learning from and building on the Management Plan is reviewed and previous plan’s positive outcomes. updated every 5 years. Annual monitoring of the 16

Native Flora and Fauna and the Alpine Marsh Marigold obtained from the Department of Management (Psychrophila introloba). Environment, Land, Water and Planning, to increase resources The RMB is committed to the Sensitive area signage has put towards surveillance of Orange protection of all species of native been installed in key locations Hawkweed within the Resorts. The plants and animals inhabiting to increase staff and visitor improved collaboration of agencies the Resorts. Advice and tips on awareness. management of small native in recent years has been extremely effective with only two existing sites mammals are freely available and Pest Plant and Animal identified and treated. environmental staff continue to Control provide a small mammal catch and A major environmental goal of Waterway weed infestations, release service to lodges, clubs, the RMB is the control and including Three-stamen Rush, apartments and hotels, using Elliot elimination, where possible, of Soft Rush and Musk Monkey- traps, designed to prevent injury introduced or exotic plant and flower, continued to be targeted to animals. The use of snap traps animal species. As in previous with good results. and poison baits continues to be years, effort was concentrated Blackberries were sprayed on

Strategic Direction and Operations discouraged. During winter 2015, on the most significant species plastic catch and release traps trails between Mount Buller and within the Resorts, including were made available to public for Mount Stirling, and Sycamores Orange Hawkweed, Soft Rush, purchase. continued to be controlled in the Blackberry, St John’s Wort, upper reaches of the Delatite at In 2014–15, the small mammal Sycamores, Willows, feral cats, Mirimbah. Small English Broom poster continued to be a popular foxes and rabbits. infestations were treated at Mount tool to help visitors identify and Stirling, Mount Buller Village and Pest Plants appreciate native fauna within the Delatite Valley, and Pussy Willows The 2009 Weed Management Resorts. As in previous years, this continued to be removed from the Strategy formalised the process poster was distributed to lodge Resorts. A four year partnership for prioritising and treating key managers and many primary and from 2015 to 2018 between Resort weed species within the Resort. secondary school children who Management, the Goulburn From October 2014 to June visited the Resorts. Broken Catchment Management 2015, Orange Hawkweed was Authority and the Taungurung Threatened species monitoring monitored and controlled weekly Clans Aboriginal Corporation aims continued, including the Mountain and there continues to be an to build capacity and maximise Pygmy-possum, Broad-toothed established quarantine area to environmental outcomes across Rat (Mastacomys fuscus), Alpine restrict movement through the the Resorts and within the Stonefly (Thermatoperla flaveola) area. Additional funding was catchment. Annual Report 2014–15 17

Pest Animals Education, Communication The RMB’s year-round integrated and Engagement pest animal control program Environmental education, involves various methods of communication and engagement management at different times are critical to achieving RMB of year. Ongoing fox baiting environmental objectives. During programs, intensive shooting and the year, environmental staff gave trapping sessions, remote camera a number of presentations to placement, and spot lighting primary, secondary and tertiary are control/monitoring activities students. which continue to produce good results. Foxes are no longer The latest environmental commonly seen within the Resort information continues to be and feral cats (known predators available on the Mount Buller and of the Mountain Pygmy-possum) Mount Stirling websites. During numbers are declining. Rabbits 2014–15, RMB staff continued continued to be targeted from their voluntary participation in the spring to autumn. Community Stream Sampling Project in conjunction with Water Revegetation and Watch and participated in various Rehabilitation sustainability focused training sessions held throughout the year. As part of the ongoing revegetation and rehabilitation program, Fire Management approximately 2000 native Following audits undertaken in seedlings were established in The Mount Buller and Mount previous years using infrared priority areas during 2014–15. Stirling Fire and Emergency thermography and other methods, Plants were sourced from locally Management Plans provide the RMB continues to make asset obtained seeds and cuttings, guidelines for fire prevention, improvements to increase energy propagated over an eight-month preparedness, response and and resource efficiencies and period and returned for planting recovery across the Mount Buller decrease carbon emissions. Solar at the Resort during the summer and Mount Stirling Alpine Resorts. webcams installed at Telephone months. This ensures the genetic Box Junction and Bluff Spur provenance and integrity of native Land Stabilisation Memorial Hut on Mount Stirling vegetation within the Resort is The RMB continues to monitor and provide visitors with real time maintained. address any natural changes in images of snow conditions. Work the land. The RMB has received is continuing on the re-installation Environmental staff continued funding from the DELWP Alpine of a micro-hydroelectricity plant to provide advice to developers Risk Mitigation Program to to power facilities at the visitor and site holders regarding reinstate these areas, investigate information centre (Telephone Box revegetation, and several locally and report on stability of the Junction), Mount Stirling. Solar indigenous native gardens are now embankment at Corn Hill Road powered lighting was installed established within the Resort. and stability of Site 237. at Chain Bay three to provide The Mount Buller and Mount lighting for motorists fitting Stirling Native Vegetation Planting Energy and Resource chains after dark. Guide (available for free from the Efficiency RMB office and website) continues The RMB is committed to to assist residents and site holders improving its internal environmental keen to establish native gardens performance focusing on on their sites. environmentally responsible purchasing and resource and energy efficiency projects. 18

Our Tourism

Provide high quality recreational activities, facilities and experiences that promote year round utilisation through: ——Facilitating and/or influencing the delivery of mountain products and facilities that satisfy customer expectations ——Enabling activities and events that appeal to various target markets ——Developing the tourism strengths of the Resorts ——Generating cross-resort tourism opportunities between Mount Stirling and Mount Buller ——Driving awareness of the Resorts’ visitor offerings

Performance Indicators – Corporate Plan Outputs 2014-2015 Performance Indicator KPI Definition of Measure Target Achievement

Strategic Direction and Operations Visitation Numbers Trend growth in visitor numbers Increase of 2% p.a. Achieved Annual winter Average annual winter occupancy Increase of 4% p.a. over prior year Achieved an occupancy rates rates higher than previous year. (20% over 5 years) increase of 3% Visitor Household Visitor household income profile (see Note 1) Achieved Income approaches state profile Visitor Ethnicity Profile Visitor ethnicity profile approaches (see Note 1) Achieved state profile Bed availability Beds available through central 1. Maintain Centralised Booking Achieved booking service Service as main call to action in resort collateral. 2. Increase over prior year NA (see Note 2) Notes 1. A review will be undertaken to determine whether this information can be collected. 2. This KPI can not be influenced by the ARMB.

Visitation These results enabled Mount on the ten year average. These Buller to maintain its market visitors generated 7,677 in visitor Mount Buller – Summer leading position relative to the days, which was also up 25% on Between summer 2013–14 other Victorian Alpine Resorts, the ten year average. and 2014–15, Resort visitation owning 39% of the Victorian Alpine The difference in growth above the increased 10%, as calculated Resort visitor market – 20% ahead ten year average between visitor by a counter that sits across the of its closest competitor. Mt Buller Rd at the entry of the numbers and visitor days indicates Resort. Mountain bike trail usage, These visitors generated 465,014 that people are tending to stay in measured by counters placed on in terms of visitor days, which was Resort for longer periods, taking key trails, also increased by 26% up 2% on the ten year average. advantage of Mount Stirling’s over the same period, indicating unique snow camping and hut that growth in general resort Mount Stirling – Summer offering. visitation was largely driven by Mount Stirling experienced a 6% participation in this activity. increase in visitation between Resort Entry Technology summer 2013–14 and 2014–15, In winter 2015 the RMB used Mount Buller – Winter as calculated by a counter that Licence Plate Recognition Mount Buller attracted 300,437 sits across the Mt Stirling Rd at the technology to significantly improve visitors to the resort in winter 2015, entry of the Resort. This growth has the flow of traffic through resort which meant that visitor numbers ensured that Mount Stirling has entry, with anyone who had pre- were up 17% compared to the ten maintained its unique position as purchased a vehicle pass online year average. In the last ten years, the only Victorian Alpine Resort to being able to enter the resort the resort has only passed the attract higher levels of visitation in without stopping. The effectiveness 300,000 visitor mark once before (in summer than in winter. of this new process saw significant 2014 when the snow was the best Mount Stirling – Winter growth in the sale of online vehicle experienced in a decade), so the passes including 181% increase Mount Stirling attracted 6,096 2015 visitor numbers represent a in day passes and 273% increase visitors to the Resort in winter 2015, great result for the Resort considering in overnight passes. its fairly average snow falls. which was up an impressive 20% Annual Report 2014–15 19

This technology was Mountain Bike Trails Mount Buller Marketing complemented by a number of The RMB acknowledges that a The RMB works to maximise resort other initiatives implemented at sustainable, year-round tourism use and visitation on a year-round the gate including the installation product is vital to the longevity basis, thereby ensuring that Mount of an additional toll booth, of the Mount Buller and Mount Buller is a vibrant destination introduction of Pay Wave Stirling Resorts. In an effort to grow that is economically viable and processing, computer system the Resorts’ summer visitation, sustainable. Key to the resort’s upgrades and the installation of the RMB has invested significant success in this area is the growth new digital signage, all of which time and resources into the of its tourism market – that is, the improved vehicle processing in development of its cross-country growth of Mount Buller’s valuable this area. Indeed, even during mountain bike trail network, which winter tourism trade and promotion peak weekend periods, vehicles is promoted under the ‘Bike of its mature product, and the queued for no longer than Buller’ brand. In total, the RMB establishment of a profitable and 10 minutes at the gate. has now constructed over 60km attractive summer tourist offering. of new single track dedicated to To this effect, the RMB follows a Visitor Services mountain biking, which includes three-year strategic marketing plan During the 2015 season, Visitor beginner trails around the Mount that aims to drive resort visitation Services were again delivered Buller Village, five intermediate and yield opportunities in both by a combination of RMB and loops out to Corn Hill, the iconic summer and winter. Buller Ski Lift resources, who Stonefly trail on Mount Stirling, and were responsible for meeting, Copperhead, a flow-down trail that 2014–15 key achievements are as greeting and assisting visitors in is the first of its kind in Australia. follows: the car parks, toboggan slopes It also includes trail links, and two —— Generating $11 million in and general Village area. The skills parks. PR exposure. placement of these staff continue As a result of these developments, to improve liaison with the —— 21% growth in Mt Buller Mount Buller has been recognised public and enhance the visitor Facebook followers and 90% as Australia’s first International experience. growth in Instagram followers Mountain Bicycling Association —— The establishment and growth In 2014–15 the RMB continued to (IMBA) endorsed Ride Centre. of key winter trade partnerships contribute funds to the Mansfield This means that the Resort joins in primary and secondary Visitor Information Centre and a select group of mountain biking international markets. High Country Reservations, which destinations around the world provides a year-round visitor that represent IMBA’s Model —— Major improvements to winter information service for the Resorts Trail recognition for large-scale gate entry processes resulting and a centralised accommodation mountain bike facilities that offer in a maximum queue time of booking service for visitors on something for every rider. 10 minutes even during peak behalf of commercial operators periods. Building on this success, on 6 and lodges at Mount Buller. —— 414% growth in unique users December 2014 the RMB launched accessing the Bike Buller its most ambitious mountain bike Sponsorship website and 75% growth in trail project to date – the Australian Bike Buller Facebook followers. The RMB acknowledges its Alpine Epic. This 40km trail has sponsors, who are valuable been identified by IMBA as being —— 26% growth in mountain partners in delivering a high quality one of its Epic Model Trails, which bike trail usage. mountain experience to visitors, means it is a world-class product —— 70% growth in the number including Bolle, K2, 7 Network and that offers an iconic and diverse of bike stores involved in the Subaru. The RMB in turn offers backcountry experience. Bike Buller retail program sponsorship to on-mountain event —— 88% growth in the number providers as well as sporting This is the first IMBA Epic trail in of properties participating in groups to encourage development the Southern Hemisphere, so its the Bike Buller Recommends and participation in recreational launch marked a major milestone program activities across all age groups. for both Mount Buller and the Australian mountain bike industry, —— 1116% growth in followers of ensuring that it has become a the Run Buller Facebook page major tourism drawcard for both —— Securing of 5 new summer the Resorts and the region. events. 20

Our Community

Build and facilitate a year round vibrant community and be a valued community member through: ——Developing and enhancing village and community centres where people can congregate ——Seeking feedback and measuring the community’s response to our products, services and actions ——Acknowledging the cultural heritage of our region and celebrating our community’s history ——Supporting new and local business to enable a year round operation ——Facilitating key essential and emergency services required by the community

Performance Indicators – Corporate Plan Outputs 2014-2015 Performance Indicator KPI Definition of Measure Target Achievement

Strategic Direction and Operations Indigenous Indigenous employment opportunities 100% job ads made available to Achieved Employment created Taungarung Clan Opportunities Celebrating Resort No. of events celebrating resort Year 1. Measure baseline Achieved Culture and Heritage heritage Years 2 & 3 Increase on prior year Community Strength: No of Formal Stakeholder Consultation Increase on prior year Achieved Stakeholder Programs Consultation Program

Village Character improved community services, —— Landscaping and amenity Mount Stirling development encourages the growth of year improvements at Howqua Gap; remains environmentally focused, round activity in the resorts and —— Intensive trail rehabilitation with initiatives such as new better utilisation of resort assets. works in problem areas; and interpretive walks, public toilets —— Refurbished gates to protect Village Facilities and shelters and improved the environmental values of the facilities for horse riders. The In 2014-15, the RMB undertook a mountain, and to assist with RMB continues to encourage and number of initiatives to improve the improved traffic management. facilitate private and commercial amenity of the Mount Buller Village, development on Mount Buller by: including: Services for the Community —— Working with and providing —— Improvements to the water Emergency Services guidance to developers for supply and sewerage treatment In 2014-15 the RMB enjoyed a development, submission and systems; constructive relationship with the processing of planning and —— Working closely with existing Victoria Police and Ambulance building permit applications; lessees to negotiate building Victoria who were in attendance —— Continuing to develop the refurbishments required as part daily during the snow season and Village infrastructure and of their lease renewals; special events. The RMB would overall appearance; —— Resurfacing and repairing also like to thank the CFA for its —— Extensively marketing the pathways and pavements continued year round service at Resorts to provide incentives around the Village Centre; and Mount Buller and its consistent for commercial facility and —— Recladding of Alpine Central. presence fostering a better accommodation operators to community. remain open year-round; and In 2014-15, the RMB undertook a number of initiatives to improve Ski Patrol —— Providing and assisting events the amenities of Mount Stirling, The RMB continued to work and activities. including: closely with Ski Patrol on Mount Implementation of the Mt Buller Buller (a service provided by BSL) —— Completion of renovations and Resort Master Plan continues to minimise risk in the ski fields. extensions to the cafe, ski hire to encourage the development Victoria Police and Ambulance and patrol base at Telephone of a wide range of integrated Victoria also provided excellent Box Junction (TBJ); resort facilities, infrastructure and service that contributed to a safe accommodation. Such targeted —— Greater emphasis on long-term skiing environment. development, in addition to sustainable trail networks; Annual Report 2014–15 21

Volunteer Ski Patrollers Way”. The program requires that Notable Emergency Incidents were actively involved in trail staff demonstrate the “Buller Way” 2014-15 maintenance, cleaning, stocktaking core values at all times, whether at In the early hours of Tuesday 4th medical supplies and assisting work or on personal time. August a fault in the underground and responding where first aid was This winter, all sessions were high voltage power supply cable required. They spent time training well attended with approximately to Mt Buller faulted causing a and consolidating their emergency 1100 mountain staff participating substantial drop in the capacity rescue skills with the Mount Buller in Buller Crew training, which of the high voltage power supply. Ski Patrol, including shadowing consisted of a two hour customer Ausnet Services immediately professional patrollers on the slopes. service workshop. The ‘Employee commenced turning off sections On Mount Stirling, the Volunteer of the Week’ Award was also used of the power supply to the resort Ski Patrol, under the direction of to reward staff demonstrating high with the aim of reducing demand RMB Ski Patrol staff, is an essential level of customer service across to a level that the remaining power component of winter safety and the mountain. lines could support. An Incident operations. During the 2015 snow Management Team was created season, the Volunteer Ski Patrol Five Principles of on Wednesday 5 August that contributed a total of 102 work days. Customer Service coordinated the response to the emergency which included the There were 18 accidents attended to The ‘Five Principles of Customer evacuation of BSL employees on Mount Stirling this year. Service’ have been developed to from staff accommodation that remind all Mount Buller and Mount Education was without power. Many of the Stirling employees of the five larger hotels and accommodation Mansfield Primary School simple steps involved in providing establishments had back up continued to provide a syllabus exceptional customer service and generation capability. Ausnet based education model during ultimately happy repeat visitors. winter via its Mt Buller Annexe for Services installed portable both internal and external students. These principles are explained large capacity generators which and reinforced through Buller supplemented the power supplied Mansfield Secondary College Crew, RMB and Buller Ski Lift staff by the overhead line and allowed continued its syllabus and tutor orientation and training programs. essential services to operate until based education model via its full power was restored early on Mt Buller annexe and Mt Buller Five Principles Thursday 6th August. Education Pty Ltd continued its tutor based education model. 1. Caring for People These were all operated via licence 2. Know the Mountain agreements out of the Alpine 3. Working Together Central building. 4. Pride in our Mountain Resort Worker Accommodation During the 2015 snow season 5. Have Fun the RMB continued to provide Resort Worker Accommodation Emergency Management as a service to the Mount Buller The Mount Buller and Mount Chamber of Commerce. This Stirling Alpine Resort Emergency continues to be a successful Management Committee is initiative and enables small made up of approximately 20 businesses to access affordable representatives from RMB, staff accommodation. BSL, Victoria Police, CFA, State Emergency Service (SES), Buller Crew 2015 Department of Health and Buller Crew is a customer service Human Services (DHHS), DELWP, program that supports the Visitor Ambulance Victoria and Buller Experience Charter developed by Gas. There were two Emergency the RMB and promotes a unified Management Planning Committee approach to customer service at meetings held for the 2014-15 the resort. Participation in the Buller period. Crew program supports the Mount Buller brand values by unifying all mountain staff through the “Buller 22

Our People

Be an employer of choice that values and is valued by all employees through: ——Investing in the safety, well-being and development of our people ——Embedding a culture where productivity, adaptability and progress is embraced, responsibility accepted and accountability delivered ——Providing an environment that will attract and retain high quality staff ——Engage with our people to promote, understand and improve organisational performance

Performance Indicators – Corporate Plan Outputs 2014-2015 Performance Indicator KPI Definition of Measure Target Achievement

Regional jobs Regional jobs attributable to resorts 2% p.a. (see Note 1) NA attributable to resorts Strategic Direction and Operations Worker Skills and Worker Skills and Capacity: 100% 100% Capacity: Training Training Programs Programs Lost Time Injuries Lost Time Injuries 0 3 Notes 1. Results are published every 4 years in the ARCC economic significance survey prepared by National Institute of Economic and Industry Research (NIEIR). Core Values The RMB’s Human Resource and recruitment. Employees are The RMB has adopted the policies incorporate the conduct selected/promoted for positions following core values: principles set out in Section 7 on the basis of relative ability, of the Public Administration Act knowledge, experience and skill, —— Communication – maintain an 2004. Values and associated in fair and open competition open, clear and concise two behaviours are embedded in all measured against the requirements way flow of relevant information position descriptions and the of the position involved. All both internally within the RMB RMB’s performance appraisal employees are treated in a fair and externally; and equitable manner without process incorporates a review regard to race, religion, political —— Leadership – provide positive of how individuals demonstrate opinions, sexual preference, age, guidance and motivation and these values. Compliance with physical or mental disability, family act in a way that upholds the these policies is a condition of RMB core values; responsibility, pregnancy, national employment with the RMB. extraction or social origin. —— Innovation – drive continuous improvement and be open and Public Sector Employment Principles Occupational Health responsive to change; and Safety —— Customer Service – strive to The RMB has adopted the Public Sector Employment Principles The RMB is responsible for exceed customers’ expectations providing a safe working and by understanding and as per Section 8 of the Public Administration Act 2004. These recreational environment, free responding to their needs; principles are embedded of accidents and injuries, for all —— Integrity – be honest, open in the internal policies and RMB employees, contractors and and ethical in dealings with procedures of the RMB in the members of the public. The RMB each other, customers and recruitment process, performance is committed to ensuring that all stakeholders; and management and in the resolution people affected by its activities are protected from loss, risks to safety, —— Teamwork – work together of any disputes. health and wellbeing. RMB staff to achieve desired goals in a Merit and equity members are fundamental to the supportive and co-operative principles of risk management and The RMB complies with the environment. OH&S, and these responsibilities Public Administration Act 2004 are imbedded in all position by maintaining a workplace free Public Sector Values descriptions and are assessed as of discrimination in line with the part of the performance appraisal The RMB actively promotes and Victorian Government’s merit process. The RMB’s staff-based encourages adherence to public and equity principles. The RMB OH&S Committee formally met four sector values and to the Code of continuously reviews its human times during the year. Conduct for Victorian Public Sector resource policies and processes Employees. in areas such as equal opportunity Annual Report 2014–15 23

OH&S Performance 2015 Staff Awards Indicators 2013–14 2014–15 Target 2015 STAR Employee of the Year as nominated OH&S committee meetings (formal) 6 4 4 by their peers – Katie Bowker Workplace inspections (formal) 3 2 2 2015 STAR Team of the Year as nominated by Incident Statistics their peers – Marketing Sales and Business Development Workdays lost 5 54 0 Injury incidents 2 10 0 2015 CEO’s Outstanding Team of the Year – No. of lost time injuries 0 3 0 Reception & Interpretative Centre 2015 CEO’s Outstanding Employee of the Year Incident Type – Gillian Dobson Manual handling 0 3 0 Slip, trip or fall 2 4 0 Stress 0 0 0 Laceration 0 0 0 Other 0 2 0

Workforce Data (At 31 October, 2015)

2014–15 2013–14 (comparison) Number of permanent employees Number of permanent employees 33 (32.12 EFT) (total) 33 (32.29 EFT) (total) Of these 16 were female and 17 were male. Of these 14 were female and 19 were male. Seasonal staff Seasonal staff 51 (34 male and 17 female) (total) 40 (total) Tasks performed by seasonal staff included visitor services, resort entry, snow clearing, traffic control, car parking, toboggan slope and sports hall supervision, Mount Stirling Ski Patrol and general Resort work.

Staff Training and —— OH&S Compliance Training —— Bushfire Regulations Development The RMB also encourages further —— Public Health and Water Quality The RMB supports training and or continuing study or training Awareness development to ensure that all linked to business needs. —— Perform CPR and Apply First full-time, part-time and casual Aid During 2014–15 training courses employees have the necessary —— Manual Handling skills and qualifications to fulfil their and qualifications attained by staff work requirements. included: —— Safety Management Training —— Australian Ski Patrol Association —— Maintaining Chainsaws and Trim All RMB employees must complete and Cross Cut Felled Trees a basic level of training, including —— Customer Service Buller Crew (customer service) —— First Aid Industrial Relations training and risk management —— National Accredited Mediation training. Some positions require RMB staff (with the exception of Certification LEADR specific qualifications or training, Senior Appointments on GSERP including: —— Fringe Benefit Tax –NTAA contracts) are employed under the —— Financial Controller Summit Mount Buller and Mount Stirling —— Traffic Management Alpine Resort Management Board Accreditation —— Executive Leadership Enterprise Agreement 2013–15; to —— Emergency Management —— Authorised Officer training be superseded in 2015-2016 by (including client interaction and —— Certified Practicing Accountant the Mount Buller and Mount Stirling defensive tactics) —— Bachelor of Business Alpine Resort Management Board —— Chemical handling (Accounting) Enterprise Agreement 2015-19. —— Ski Patrol —— Bachelor of Business —— Snowmobile licensing (Marketing) —— Alpine Awareness Training —— Certificate IV Graphic Design —— Driving in Adverse Weather —— Certificate III in Water Conditions Operations 24

Our Corporate Governance

Maintain the integrity and value of our organisation through sound governance and financial management, through: ——Building strong and positive relationships with key stakeholders ——Planning for our future through robust strategic, business and resort master planning ——Driving fiscal responsibility throughout our business and finding ways to become more efficient ——Identifying and mitigating risks impacting the Resorts ——Meeting our regulatory requirements

Performance Indicators – Corporate Plan Outputs 2014-2015 Performance Indicator KPI Definition of Measure Target Achievement

Strategic Direction and Operations Gross State Product Gross State Product (GSP) attributable Trend Increase to be at least 2% pa Data not yet (GSP) to Resorts (See Note 1) available Alpine Public Five year public investment program Years 2 & 3 Program Funded Funding for Investment Program funded approved capital works is funded Net Cash Flow Net operating cash flow plus net $964,517 Not Achieved investing cash flow. Source: From Cash Flow Statement. Net Accrual Surplus Net profit before allocation to reserves $1,005,619 Achieved as reported in the Statement of Financial Performance. Snow Drought Fund Maintain a Snow Drought Fund $600,000 Achieved as required by the Minister’s announcement of the Alpine Resorts Reform Package (2005) Capital Improvement Maintain Capital Investment Fund $1,000,000 Achieved Fund that supports the needs identified by the Resort Master Plan and the RMB CAPEX priority list Real Unit Costs Reduction in variable unit costs by 1% Trend 1% reduction p.a. Achieved Community Service CSO’s identified, agreed with Years 2 & 3 Fund CSO’s Achieved Obligations (CSO’s) Government & funded

Stakeholder Consultation —— Mansfield Shire Council; —— Environmental interest groups; The RMB acknowledges an ——Neighbouring land management —— Recreational groups; extensive range of stakeholders, authorities; —— Educational authorities and which encompasses the people —— Alpine Resorts Coordinating organisations; of Victoria, and individuals and Council (ARCC) and associated —— Land and property developers; organisations with a financial, legal entities; or social interest in Mount Buller or —— Stirling Experience; —— Other Victorian alpine resorts; Mount Stirling. —— Business and commercial —— RMB staff, committees and operators; RMB stakeholders include: associated entities; —— Tourism operators; —— State Government of Victoria, —— Mount Buller Chamber of —— Ski clubs; in particular the Minister for Commerce; —— Apartment owners; Environment, Climate Change —— Mount Buller Ratepayers and Water, the Minister for Association; —— Contractors; Finance and the Minister for —— Buller Ski Lifts Pty Ltd (BSL); —— Residents; Planning; —— Emergency services, including —— Visitors and guests; and ——The Taungurung people, Ski Patrol; —— District communities. traditional custodians of the land; —— Industry groups; Annual Report 2014–15 25

The Buller Marketing Summary of Operational and 2013–14 2014–15 Coordination Group Budget Objectives Actual Actual Variance The Buller Marketing Coordination $‘000 $‘000 $‘000 Group (BMCG) includes Revenue 13,225 14,123 898 representatives from BSL, High Expenditure 12,555 12,765 210 Country Reservations, Mount Buller Chamber of Commerce, Mount Capital Works (including plant and equipment) 3,265 2,631 (634) Buller Ratepayers Association and the RMB. The BMCG works Consultancies over $10,000 ($ ‘000) to promote the mountain in a Consultant Purpose of Total approved Expenditure Future committed co-operative and consistent consultancy project fee 2014–15 expenditure ex GST ex GST Ex GST approach, with a single, clear Biosis Research Environmental $97 $97 Nil Mount Buller brand and marketing Consultancy & Analysis campaign. The BMCG objectives Entura Hydro Tasmania Leakage Investigation $37 $37 Nil include: GHD Pty Ltd Sustainable Water $168 $168 Nil —— Providing an opportunity Security & Treatment for input and advice from Plant Consultancy stakeholders in respect to Meinhardt Sustainable Water $19 $19 Nil marketing activity; Security Consultancy —— Communicating, monitoring Watergroup Treatment Plant $12 $12 Nil Consultancy and evaluating the RMB Three- Year Marketing and Business Development Strategy; and Consultancies under Consultancies over $10,000 $10,000 —— Creating sub-committees There were 5 consultants engaged to provide direction and There were 21 consultancies that where total remuneration was recommendations as required. were less than $10,000 totalling greater than $10,000. Refer to the $86,565 during 2014–15. Currently, the BMCG incorporates table above for details. two sub-committees – the Sales and Promotions Committee and Winter Brochure Committee. Strategic and Corporate Resort Master Plan Planning Local and Regional Authorities The Mount Buller Resort Master As required under Section 53 of the Plan continues to guide the The RMB continues to consult with Act, the RMB develops and lodges Resort’s development over the a range of industry experts and its Corporate Plan, including a next 10–15 years as well as authorities in the development Statement of Corporate Intent and providing confidence for individual of new policies, procedures a Business Plan. As required under stakeholders to commit investment and initiatives. In particular, Section 56F of the Act, the RMB dollars to the mountain. Following neighbouring Crown Land reviews its Strategic Management the completion of individual managers (Parks Victoria, DELWP Plan when required. projects, the next stage of the and Mansfield Shire Council) are Master Plan is the development consulted to ensure best practice The current plans use the key and progression of the delivery land management. The RMB strategic directions of the Alpine strategy for the Horsehill and also consults with other Victorian Resorts Strategic Plan 2012 using Valley North Precinct. alpine resorts through the ARCC RMB focus areas and objectives and an informal network of chief that were developed by the Board Significant changes in executives, finance officers and and the Management Team financial position during environmental officers. during 2011 and were revised and the year readopted in 2015. Indigenous People There are no significant matters The RMB abides by Aboriginal which changed the RMB’s financial Affairs Victoria reporting position during the reporting requirements where any specific period. indigenous initiatives or projects will be reported in accordance with the necessary guidelines. No special initiatives were needed by the RMB to meet these obligations. 26

Subsequent Events On Monday 16th November 2015 Attestation on compliance with the Australian/New Zealand the RMB received notification from Risk Management Standard the Minister for Planning, The Hon I, Jennifer Hutchison, certify that the Mount Buller and Mount Richard Wynne MP, that a Planning Stirling Alpine Resort Management Board has complied with Permit for the Buller/Stirling Touring the Ministerial Standing Direction 4.5.5 – Risk Management Link Rd had not been granted Framework and Processes. The Mount Buller and Mount citing the need for further detailed Stirling Alpine Resort Management Board’s Risk, Audit and investigations to be conducted Finance Committee verifies this. to inform a new planning permit application. As at 31st October 2015 the RMB had incurred $536,121 for the Buller/Stirling Touring Link Rd which has been categorised as

Strategic Direction and Operations Jennifer Hutchison Capital Work in Progress at Cost. Chairman On 4th December 2015 the RMB endorsed the continuation of the required works for detailed investigations for a planning permit Major changes or factors Government Funding to be issued. The RMB believes affecting performance The RMB acknowledges it is likely that a planning permit The increase in gate entry revenue investment in Mount Buller and in respect of this project will be is a result of continued strong Mount Stirling by the Victorian forthcoming and accordingly visitation in the 2015 snow season. Government in 2014-15 as follows: it is appropriate to continue to The RMB received $148,445 —— $50,000 – Department of carry forward the capital works in in Grant Funding during 2015 Environment, Land, Water and progress balance. compared to $382,500 in 2014. Planning (DELWP) funding No other matters or circumstances During 2015 the RMB received towards the Alpine Risk have arisen since the end of $931,500 for the right to develop Mitigation Program Actual the reporting period which may Crown land compared to $0 —— $66,445 – Mansfield Shire significantly affect the operations in 2014. Council through RDV funding of the RMB, the result of those The change in operating toward the EPIC. operations, and the state of affairs expenditure is primarily due to: of the RMB in future financial years. —— $32,000 – National Packaging —— Increased costs of visitor Covenant Industry Association Government Advertising related services due to funding towards sustainable Expenditure continued strong visitation public place recycling. Government Policy requires in 2015 disclosure of all Government Major Contracts —— Increase in ARCC contributions Advertising Expenditure with a total during 2015; There were no major contracts media buy of $150,000 or greater —— An increase in salaries and greater than $10 million entered (exclusive of GST). No Government wages, including the impact into during the reporting period. Advertising Expenditure was of the Enterprise Agreement; incurred by the ARMB during —— Increased costs in relation to the reporting period. contracts and insurance. Annual Report 2014–15 27

Gifts, Benefits and Hospitality Framework Attestation I, Jennifer Hutchison, Chairman of Mount Buller Mount Stirling Alpine Resort Management Board certify that: —— my public entity has gifts, benefits and hospitality policies and procedures in place; —— these policies and procedures are consistent with the minimum requirements and accountabilities outlined in the Gifts, Benefits and Hospitality Policy Framework for the Victorian Public Sector – Revised April 2012 issued by the Public Sector Standards Commissioner; and —— these policies and procedures are updated, promulgated and provided to the audit committee for review at least once a year.

Jennifer Hutchison Chairman Date: 31 October 2015

Risk Management The RMB has a Risk Management Implementation of In June 2012 the Victorian Policy and develops risk the Victorian Industry Managed Insurance Authority management systems to Participation Policy (VMIA) conducted a Risk assist staff to understand their In October 2003, the Victorian Framework Quality Review. The responsibilities and create a culture Parliament passed the Victorian review was based on a seven of safety. The RMB maintains a risk Industry Participation Policy Act element maturity model informed register that identifies risks to the 2003 which requires public bodies by the Australian Standard for organisation and those associated and departments to report on the Risk Management AS/NZS ISO with the use of Crown Land. The implementation of the Victorian 31000:2009. The VMIA’s risk register, developed in association Industry Participation Policy management framework rating with the VMIA, features RMB (VIPP). Departments and public acknowledged the RMB as controls and mitigation strategies. bodies are required to apply having developed some good The register is reviewed on a VIPP in all tenders over $3 million risk management practices and regular basis to ensure proper in metropolitan Melbourne and arrangements, and that it is consideration of newly identified $1 million in regional Victoria. reviewing and improving its risk and existing risks. The RMB has not commenced framework over time. any tenders or entered into any contracts worth $1 million or Risk management principles apply National Competition Policy more during the year ended to all areas of RMB operations and Competitive neutrality seeks to 31 October 2015. include health and safety, property, enable fair competition between environment, finance and internal government and private sector Freedom of Information controls. The RMB’s organisational businesses. Any advantages or culture is built around providing a disadvantages that government The RMB is considered to be safe and rewarding experience for businesses may experience, a ‘Government Agency’ under guests, residents and employees simply as a result of government the terms of the Freedom of visiting, living or working in the ownership, should be neutralised. Information Act 1982. Accordingly, Resorts. it is required to comply with The RMB continues to implement prescribed procedures under and apply this principle in its which members of the public may business undertakings. gain access to information held by agencies. A decision to release information is made by the Authorised Officer. 28

The RMB has determined that the Compliance with DataVic How do I make a Authorised Officer for Freedom of access policy ‘Protected Disclosure’? Information requests during the Consistent with the DataVic Access You can make a protected 2014–15 reporting period is the Policy issued by the Victorian disclosure about Mt Buller Chief Financial Officer. Requests Government in 2012, the RMB Mt Stirling Resort Management for information under the Freedom intends that data tables that it or its board members, officers of Information Act 1982 are subject may produce in the future will be or employees by contacting to a $27.20 fee, and should be available at www.data.vic.gov.au IBAC on the contact details addressed to: in machine readable format. provided below. Freedom of Information Officer Please note that Mt Buller Mt Compliance with the Mount Buller & Mount Stirling Stirling Resort Management is Protected Disclosures Alpine Resort Management Board not able to receive protected Act 2012 Post Office Mount Buller, VIC 3723 disclosures. The Protected Disclosure Act How can I access Mt Buller In 2014–15, there were three 2012 (PD Act) enables people Mt Stirling Resort Management’s Strategic Direction and Operations requests for the RMB to provide to make disclosures about procedures for the protection of information under the Freedom of improper conduct by public persons from detrimental action? Information Act 1982. officers and public bodies. The Act aims to ensure openness and Mt Buller Mt Stirling Resort Availability of other information accountability by encouraging Management has established The following is retained by the people to make disclosures and procedures for the protection of officer accountable and is available protecting them when they do. persons from detrimental action to the relevant Minister, Members in reprisal for making a protected of Parliament and the public on What is a ‘protected disclosure’? disclosure about Mt Buller Mt request: A protected disclosure is a Stirling Resort Management or —— Details of shares held by a complaint of corrupt or improper its employees. You can access senior officer as nominee or conduct by a public officer or a Mt Buller Mt Stirling Resort held beneficially in a statutory public body. Management’s procedures on its authority or subsidiary; Mt Buller Mt Stirling Resort website at: www.mtbuller.com.au —— Details of changes in prices, Management is a “public body” for Contacts fees, charges, rates and levies; the purposes of the Act. Independent Broad-Based —— Details of any major external What is ‘improper or corrupt Anti-Corruption Commission reviews carried out; conduct’? (IBAC) Victoria —— Details of major research and Improper or corrupt conduct Address: Level 1, North Tower, development activities; involves substantial: 459 Collins Street, —— Details of official overseas Melbourne Victoria 3000. —— mismanagement of public travel undertaken including a resources; or Mail: IBAC, summary of the objectives and GPO Box 24234, —— risk to public health or safety or outcomes of each visit; Melbourne Victoria 3001 the environment; or —— Details of major promotional, Internet: www.ibac.vic.gov.au public relations and marketing —— corruption. Phone: 1300 735 135 activities; and The conduct must be criminal in Email: see the website above —— Details of assessments and nature or a matter for which an for the secure email disclosure measures undertaken to officer could be dismissed. process, which also provides for improve the occupational health anonymous disclosures. and safety of employees. Annual Report 2014–15 29

Statement by the Mount Buller and Mount Stirling Alpine Resort Management Board Chairman of the Board and Chief Executive Officer and Chief Financial Officer

The attached financial statements for the Mount Buller and Mount Stirling Alpine Resort Management Board have been prepared in accordance with Standing Directions 4.2 of 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 31 October 2015 and financial position of the Mount Buller and Mount Stirling Alpine Resort Management Board at 31 October 2015. 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 authorise the attached financial statements for issue on 16 December 2015.

Jennifer Hutchison John Huber Glenn Thornton Chairman Chief Executive Officer Chief Financial Officer

16 December 2015. 30

Comprehensive Operating Statement For the financial year ended 31 October 2015

Note 2015 2014 $‘000 $‘000 Continuing Operations Income from transactions Gate entry 1(f) 4,648 4,584 Site rental 1(f) 3,716 3,842 Service charges 1(f) 3,636 3,538 Service charge – infrastructure fee 1(f) 99 107 Marketing revenue 229 167 Taxi transport commission 118 112 Government grants 1(f) 148 382 Financial Statements Sale of rights to lease and develop Crown land 1(f) 932 – Interest income 1(f) 79 123 Asset Received at Fair Value 1(f) 90 – Other income 1(f) 428 370 Total income from transactions 14,123 13,225

Expenses from transactions Village operations 1(g) 3,654 3,782 Visitor services 1(g) 2,274 2,163 Administration and corporate services 1(g) 2,925 2,981 Land management and environmental services 1(g) 1,354 1,249 Health services 1(g) 249 257 Marketing 1(g) 1,713 1,582 ARCC Contributions 1(g) 505 433 Interest expense 1(g), 2(b) 91 108 Total expenses from transactions 12,765 12,555

Net result from transactions (net operating balance) 1,358 670

Other economic flows included in net result Net gain/(loss) on non-financial assets 3 (19) (11) Total other economic flows included in net result (19) (11)

Net result 1,339 659

Other economic flows – other comprehensive income Items that will be reclassified to net result Changes in physical asset revaluation surplus 19 – – Total other economic flows – other comprehensive income – –

Comprehensive result 1,339 659

The above Comprehensive Operating Statement should be read in conjunction with the notes to the financial statements. Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2015 31

Balance Sheet As at 31 October 2015

Note 2015 2014 $‘000 $‘000 Assets

Financial Assets Cash and deposits 18(a) 4,493 5,123 Receivables 4 1,178 472 Total Financial Assets 5,671 5,595

Non-Financial Assets Inventories 5 34 24 Infrastructure, property, plant and equipment 6 165,842 165,107 Other non-financial assets 7 409 455 Non-financial physical property classified as held for sale 8 90 – Total Non-Financial Assets

Total Assets 172,046 171,181

Liabilities Payables 9 992 1,346 Borrowings 10 1,568 1,862 Provisions 11 698 651 Other liabilities 13 176 128 Total Liabilities 3,434 3,987

Net Assets 168,612 167,194

Equity Contribution by Owner 137,369 137,290 Accumulated Surplus 8,650 7,311 Physical Asset revaluation surplus 19 22,593 22,593

Net Worth 168,612 167,194

Commitments for expenditure 15 Contingent assets and contingent liabilities 16

The above Balance Sheet should be read in conjunction with the notes to the financial statements. 32

Statement of Changes in Equity For the financial year ended 31 October 2015

Physical Asset Accumulated Contributions Total Revaluation Surplus by Owners Surplus $’000 $’000 $’000 $’000

Balance at 1 November 2013 22,593 6,652 137,290 166,535

Net result for the year – 659 – 659 Other comprehensive income for the year – – – – Transactions with owner in the capacity as owner – – – – Balance at 31 October 2014 22,593 7,311 137,290 167,194

Net result for the year – 1,339 – 1,339 Financial Statements Other comprehensive income for the year – – – – Transactions with owner in the capacity as owner – – 79 79 Balance at 31 October 2015 22,593 8,650 137,369 168,612

The above Statement of Changes in Equity should be read in conjunction with the notes to the financial statements. Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2015 33

Cash Flow Statement For the financial year ended 31 October 2015

Note 2015 2014 $‘000 $‘000 Cash Flows from Operating Activities Receipts Receipts from customers 14,066 14,147 Receipts from government 218 459 Interest received 78 135 Goods & Services Tax (Net) received from the ATO 43 18 Total receipts 14,405 14,759

Payments Payments to suppliers and employees (11,809) (11,508) Interest and other costs of finance paid (91) (108) Total payments (11,990) (11,616)

Net Cash Flow from/(used in) operating activities 18(b) 2,415 3,143

Cash flows from Investing Activities Payments for infrastructure, property, plant and equipment (2,815) (3,490) Proceeds from sale of property, plant and equipment 64 4

Net cash from/(used in) investing activities (2,751) (3,486)

Cash Flows from Financing Activities Repayment of borrowings (294) (343)

Net cash from/(used in) financing activities (294) (343)

Net increase/(decrease) in cash and cash equivalents (630) (686)

Cash and cash equivalents at the beginning of the financial year 5,123 5,809

Cash and deposits at the end of the financial year 18(a) 4,493 5,123

The above Cash Flow Statement should be read in conjunction with the notes to the financial statements. 34

Notes to the Financial Statements for the year ended 31 October 2015

Note 1 Summary of (b) Basis of accounting These financial statements are Significant Accounting preparation and measurement presented in Australian dollars Policies The accrual basis of accounting and prepared in accordance with The Mount Buller and Mount has been applied in the the historical cost convention Stirling Alpine Resort Management preparation of these financial except for: Board (RMB) is constituted under statements whereby assets, —— non financial physical the Alpine Resorts (Management) liabilities, equity, income and assets which, subsequent to Act 1997 and has its principal expenses are recognised in the acquisition, are measured at place of business located at reporting period to which they a revalued amount being their Mt Buller, Victoria, Australia. relate, regardless of when cash fair value at the date of the is received or paid. These annual financial statements revaluation less any subsequent represent the audited general Judgements, estimates and accumulated depreciation and subsequent impairment losses.

Financial Statements purpose financial statements for assumptions are required to be the Mount Buller and Mount Stirling made about the carrying value Revaluations are made with Alpine Resort Management Board of assets and liabilities, income sufficient regularity to ensure for the year ending 31 October and expenses that are not readily that the carrying amounts do 2015. The purpose of the report is apparent from other sources. not materially differ from their to provide users with information The estimates and associated fair value. about the RMB’s stewardship of assumptions are based on Consistent with AASB 13 Fair Value resources entrusted to it. professional judgements derived Measurement, the RMB determines from historical experience and (a) Statement of compliance the policies and procedures various other factors that are for both recurring fair value The general purpose financial believed to be reasonable under measurements such as property, statements have been prepared the circumstances. Actual results plant and equipment and financial in accordance with the Financial may differ from these estimates. instruments and for non recurring Management Act 1994 (FMA) fair value measurements such and applicable Australian Revisions to accounting estimates as non financial physical assets Accounting Standards (AAS) which are recognised in the period in held for sale, in accordance with include Interpretations issued which the estimate is revised and the requirements of AASB 13 and by the Australian Accounting also in future periods that are the relevant Financial Reporting Standards Board (AASB). In affected by the revision. Directions. particular, they are presented Judgements and assumptions in a manner consistent with the made by management in the All assets and liabilities for which requirements of the AASB 1049 application of AASs that have fair value is measured or disclosed Whole of Government and General significant effects on the financial in the financial statements are Government Sector Financial statements and estimates categorised within the fair value Reporting. relate to: hierarchy, described as follows, based on the lowest level input Where appropriate, those AAS —— The fair value of land, buildings, that is significant to the fair value paragraphs applicable to not-for- infrastructure, plant & measurement as a whole: profit entities have been applied. equipment, (refer to Note 1(k)); —— Level 1 — Quoted (unadjusted) Accounting policies are selected —— The useful lives of assets for market prices in active markets and applied in a manner which depreciation purposes; for identical assets or liabilities; ensures that the resulting financial —— Actuarial assumptions for —— Level 2 — Valuation techniques information satisfies the concepts employee benefit provisions for which the lowest level input of relevance and reliability, thereby based on likely tenure of that is significant to the fair ensuring that the substance of the existing staff, patterns of leave value measurement is directly or underlying transactions or other claims, future salary movements indirectly observable; and events is reported. and future discount rates, (refer —— Level 3 — Valuation techniques These annual financial to Note 1(l)). for which the lowest level statements were authorised for input that is significant to the issue by the Chairman of the fair value measurement is Mount Buller and Mount Stirling unobservable. Alpine Resort Management Board on 16 December 2015. Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2015 35

Notes to the Financial Statements for the year ended 31 October 2015

Note 1 Summary of (c) Reporting entity —— fair value changes of financial Significant Accounting The financial statements cover instruments and agricultural Policies (continued) the Mount Buller and Mount assets; and For the purpose of fair value Stirling Alpine Resort Management —— depletion of natural assets (non disclosures, the RMB has Board (RMB) as an individual produced) from their use or determined classes of assets and reporting entity. removal. liabilities on the basis of the nature, The RMB is an entity established This classification is consistent with characteristics and risks of the under the Alpine Resorts the whole of government reporting asset or liability and the level of the (Management) Act 1997. format and is allowed under AASB fair value hierarchy as explained 101 Presentation of Financial above. Its principal address is: Statements. In addition, the RMB determines Mount Buller and Mount Stirling Balance sheet whether transfers have occurred Alpine Resort Management Board Assets and liabilities are presented between levels in the hierarchy Alpine Central in liquidity order with assets by reassessing categorisation Summit Road aggregated into financial assets (based on the lowest level input Mount Buller VIC 3723 and non-financial assets. that is significant to the fair value The RMB is a public body acting measurement as a whole) at the on behalf of the Crown, and Current and non-current assets end of each reporting period. reporting to the Department of and liabilities (non-current being those assets or liabilities expected The Valuer-General Victoria (VGV) Environment, Land, Water and to be recovered or settled more is the RMB’s independent valuation Planning. than 12 months after the reporting agency. (d) Scope and presentation of period) are disclosed in the notes, The RMB, in conjunction with VGV, financial statements where relevant. monitors changes in the fair value Comprehensive operating Cash flows are classified according of each asset through relevant statement to whether or not they arise from data sources to determine whether The comprehensive operating operating, investing, or financing revaluation is required. statement comprises three activities. This classification is The accounting policies set out components, being ‘net result consistent with requirements under below have been applied in from transactions’ (or termed as AASB 107 Statement of cash flows. preparing the financial statements ‘net operating balance’), ‘other For cash flow statement for the year ended 31 October economic flows included in net presentation purposes, cash and 2015 and the comparative result’, as well as ‘other economic cash equivalents include bank information presented for the year flows – other comprehensive overdrafts, which are included ended 31 October 2014. income’. as current borrowings on the Not-for-profit status The sum of the former two, balance sheet. Under the Australian Equivalent of together with the net result Statement of changes in equity International Financial Reporting from discontinued operations, The statement of changes in Standards (AIFRS), there are represents the net result. equity presents reconciliations of requirements that apply specifically The net result is equivalent to profit non-owner and owner changes to not-for-profit entities that are or loss derived in accordance with in equity from opening balances not consistent with International AASs. at the beginning of the reporting Financial Reporting Standards period to the closing balances at (IFRS) requirements. The RMB ‘Other economic flows’ are the end of the reporting period. does not have profit generation as changes arising from market It also shows separately changes a prime objective. Consequently remeasurements. They include: due to amounts recognised in where appropriate the RMB has —— gains and losses from disposals the ‘Comprehensive result’ and elected to apply options and of non financial assets; amounts related to ‘Transactions exemptions within AIFRS that are —— revaluations and impairments with owner in its capacity as applicable to not-for-profit entities. of non financial physical and owner’. intangible assets; —— remeasurement arising from defined benefit superannuation plans; 36

Notes to the Financial Statements for the year ended 31 October 2015

Note 1 Summary of AASB 11 Joint Arrangements (f) Income from transactions Significant Accounting In accordance with AASB 11, Income is recognised to the Policies (continued) there are two types of joint extent that it is probable that the Rounding of amounts arrangements, i.e. joint operations economic benefits will flow to Amounts in the financial and joint ventures. Joint operations the RMB and the income can be statements (including the notes) arise where the investors have reliably measured at Fair Value. rights to the assets and obligations have been rounded to the nearest Service charges thousand dollars, unless otherwise for the liabilities of an arrangement. Service charge revenue is stated. Figures in the financial A joint operator accounts for its brought to account when a rate/ statements may not equate due to share of the assets, liabilities, tariff is levied or determined for rounding. revenue and expenses. Joint ventures arise where the investors service charges leviable under (e) Changes in accounting have rights to the net assets of Section 13 of the Alpine Resorts Financial Statements policies the arrangement; joint ventures (Management) Act 1997. A service Subsequent to the 2013-14 are accounted for under the charge infrastructure fee is also reporting period, the following new equity method. Proportionate levied upon site holders where and revised Standards have been consolidation of joint ventures is no development or redevelopment adopted in the current period with longer permitted. leading to an increased number of their financial impact detailed as beds occurs. This is levied upon The RMB has reviewed its existing below. completion of the development. contractual arrangements with AASB 10 Consolidated other entities to ensure they are Site rental Financial Statements aligned with the new classifications Site rental income from leased Crown land is recognised annually AASB 10 provides a new approach under AASB 11. No joint in the comprehensive operating to determine whether an entity has arrangement currently exist and statement in accordance with the control over an entity, and therefore therefore no change has been terms and conditions of individual must present consolidated made. leases. financial statements. The new AASB 12 Disclosure of Interests approach requires the satisfaction in Other Entities Gate entry of all three criteria for control to AASB 12 Disclosure of Interests Gate entry revenue (including from exist over an entity for financial in Other Entities prescribes the the sale of season access passes) reporting purposes: disclosure requirements for an is recognised when received. a) The investor has power over entity’s interests in subsidiaries, Land release the investee; associates, joint arrangements and Revenue from the sale of rights to extends to the entity’s association b) The investor has exposure, lease and develop crown land is with unconsolidated structured or rights to variable returns recognised on the execution of a entities. from its involvement with the contract of sale, following approval investee; and The RMB has reviewed its by the Minister of Environment, interests to determine if there Climate Change and Water. Any c) The investor has the ability are any interests in subsidiaries, deposits received prior to approval to use its power over the associates, joint arrangements. It from the Minister and execution investee to affect the amount has not identified any interest in of contract of sale is recorded as of investor’s returns. subsidiaries, associates and joint unearned revenue. Based on the new criteria arrangements. Interest prescribed in AASB 10, the The RMB has also reviewed its Interest revenue is recognised RMB has reviewed the existing current contractual arrangements upon gaining the control of arrangements to determine if there to determine if there are any the right to receive the interest are any additional entities that unconsolidated structured entities payment. need to be consolidated into the that the RMB has involvement group. The RMB has concluded with. It has not identified any that no additional entity has met unconsolidated structured entities the control criteria. during the assessment. Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2015 37

Notes to the Financial Statements for the year ended 31 October 2015

Note 1 Summary of (g) Expenses from transactions Depreciation Significant Accounting Expenses from transactions are All infrastructure assets, buildings, Policies (continued) recognised as they are incurred plant and equipment and other Grants and reported in the financial year to non-financial physical assets Income from grants (other which they relate. (excluding assets held for sale) that have finite useful lives are than contribution by owners) is Employee expenses recognised when the RMB obtains depreciated. Depreciation is Refer to Note 1(l) regarding control over the contribution. calculated on a straight-line basis, employee benefits. However grants and contributions at rates that allocate the asset’s received from the Victorian State These expenses include all costs value, less any estimated residual Government which were originally related to employment (other value, over its estimated useful appropriated by Parliament as than superannuation which is life. The estimated useful lives, additions to net assets or where accounted for separately) including residual values and depreciation the Minister for Finance and the wages and salaries, fringe benefits method are reviewed at the end Minister for Environment, Climate tax, leave entitlements, redundancy of each annual reporting period Change and Water have indicated payments and WorkCover and adjustments made where are in the nature of owners’ premiums. appropriate. contributions are accounted for as Superannuation Land, land under declared equity (contributed capital). The amount recognised in roads, and core cultural assets, (f) Income from transactions the comprehensive operating which are considered to have an indefinite life, are not depreciated. Fair value of assets and services statement is the employer Depreciation is not recognised in received free of charge or for contributions for members of respect of these assets because nominal consideration both defined benefit and defined contribution superannuation plans their service potential has not, Contributions of resources in any material sense, been received free of charge or for that are paid or payable during the reporting period. consumed during the reporting nominal consideration are period. recognised at fair value when The Department of Treasury and control is obtained over them, Finance (DTF) in their Annual The following useful lives are used irrespective of whether these Financial Statements disclose in the calculation of depreciation contributions are subject to on behalf of the State as the consistent with the prior year: restrictions or conditions over their sponsoring employer, the net Buildings use. Contributions in the form defined benefit cost related to 15 to 84 years of services are only recognised the members of these plans as when a fair value can be reliably an administered liability. Refer to Roads and car parks determined and the services DTF’s Annual Financial Statements infrastructure assets would have been purchased if not for more detailed disclosures in 50 to 80 years received as a donation. relation to these plans. Infrastructure assets Other Income Performance payments 2 to 100 years Other income includes Performance payments for the Other plant and equipment miscellaneous commissions, RMB’s Executive Officers and 3 to 20 years consent fees, licence fees and staff are based on a percentage Interest expense miscellaneous rental. of the annual salary package provided under their employment Interest expense represents contracts. Unpaid, but committed, costs incurred in connection employee performance payments with borrowings. Interest expense are recognised as a liability in the is recognised in the period in financial statements. Performance which it is incurred. payments are assessed and paid annually where applicable. Refer to Note 11. 38

Notes to the Financial Statements for the year ended 31 October 2015

Note 1 Summary of impairment loss is reversed only and financial liabilities do not Significant Accounting to the extent that the asset’s meet the definition of financial Policies (continued) carrying amount does not exceed instruments in AASB 132 Financial (h) Other economic flows the carrying amount that would Instruments: Presentation. For included in the net result have been determined, net of example, statutory receivables depreciation or amortisation, if arising from taxes, fines and Other economic flows measure no impairment loss had been penalties do not meet the definition the change in volume or value recognised in prior years. of financial instruments as they do of assets or liabilities that do not not arise under contract. However, result from transactions. It is deemed that, in the event guarantees issued by the Treasurer of the loss or destruction of an Net gain/(loss) on on behalf of the RMB are financial asset, the future economic benefits non-financial assets instruments because, although arising from the use of the asset authorised under statute, the terms Net gain/(loss) on non-financial will be replaced unless a specific Financial Statements and conditions for each financial assets and liabilities includes decision to the contrary has been guarantee may vary and are realised and unrealised gains and made. The recoverable amount for subject to an agreement. losses as follows: most assets is measured at the Revaluation gains/(losses) of higher of depreciated replacement Where relevant, for note disclosure non-financial physical assets cost and fair value less costs purposes, a distinction is made to sell. Recoverable amount for between those financial assets and Refer to Note 1(k) Revaluations assets held primarily to generate financial liabilities that meet the of non-financial physical assets. net cash inflows is measured at definition of financial instruments Net gain/(loss) on disposal of the higher of the present value of in accordance with AASB 132 and non-financial assets future cash flows expected to be those that do not. obtained from the asset and fair Any gain or loss on the sale of The following refers to financial value less costs to sell. non-financial assets is recognised instruments unless otherwise at the date of disposal and is Refer to Note 1(k) in relation to the stated. determined after deducting from recognition and measurement of Categories of non derivative the proceeds the carrying value of non-financial assets. the asset at that time. financial instruments Other gains/(losses) from other Loans and receivables Impairment of economic flows non-financial assets Loans and receivables are Other gains/(losses) from other financial instrument assets with Items of infrastructure, property, economic flows include the gains fixed and determinable payments plant and equipment are or losses from: that are not quoted on an assessed annually for indicators active market. These assets are of impairment. If there is an —— transfer of amounts from the initially recognised at fair value indication of impairment, the reserves and/or accumulated plus any directly attributable assets concerned are tested as surplus to net result due to transaction costs. Subsequent to whether their carrying value disposal or derecognition or to initial measurement, loans and exceeds their recoverable amount. reclassification; and receivables are measured Where an asset’s carrying value —— the revaluation of the present at amortised cost using the exceeds its recoverable amount, value of the long service leave effective interest method, less the difference is written-off as an liability due to changes in the any impairment. other economic flow, except to the bond interest rates. extent that the write-down can be Loans and receivables category (i) Financial instruments debited to an asset revaluation includes cash and deposits (refer surplus amount applicable to that Financial instruments arise out to Note 1(j)), term deposits with class of asset. of contractual agreements that maturity greater than three months, give rise to a financial asset of trade receivables, loans and other If there is an indication that there one entity and a financial liability receivables, but not statutory has been a change in the estimate or equity instrument of another receivables. of an asset’s recoverable amount entity. Due to the nature of the since the last impairment loss RMB’s activities, certain financial was recognised, the carrying assets and financial liabilities amount shall be increased to arise under statute rather than a its recoverable amount. The contract. Such financial assets Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2015 39

Notes to the Financial Statements for the year ended 31 October 2015

Note 1 Summary of profit and loss. In these cases, the Contractual receivables are Significant Accounting financial instrument assets may classified as financial instruments Policies (continued) be reclassified out of the fair value and categorised as loans Financial liabilities at through profit and loss category, and receivables (refer to Note amortised cost if there is the intention and ability 1(i) Financial Instruments for to hold them for the foreseeable recognition and measurement). Financial instrument liabilities are future or until maturity. Statutory receivables, are initially recognised on the date recognised and measured similarly they are originated. They are Available for sale financial to contractual receivables (except initially measured at fair value instrument assets that meet the for impairment), but are not plus any directly attributable definition of loans and receivables classified as financial instruments transaction costs. Subsequent to may be reclassified into the loans because they do not arise from initial recognition, these financial and receivables category if there a contract. instruments are measured at is the intention and ability to hold amortised cost with any difference them for the foreseeable future or Receivables are subject to between the initial recognised until maturity. impairment testing as described amount and the redemption value below. A provision for doubtful (j) Financial assets being recognised in profit and receivables is recognised when loss over the period of the interest Cash and deposits there is objective evidence that bearing liability, using the effective Cash and deposits recognised the debts may not be collected, interest rate method. on the balance sheet comprise and bad debts are written off cash on hand and cash at bank, when identified. Financial instrument liabilities deposits at call and those highly measured at amortised cost liquid investments (with an For the measurement principle include all of the RMB’s contractual original maturity of three months of receivables, refer to Note 1(i). payables, deposits held and or less), which are held for the Investments and other advances received, and interest purpose of meeting short term financial assets bearing arrangements other than cash commitments rather than for Investments are classified in those designated at fair value investment purposes, and readily the following categories: through profit or loss. convertible to known amounts of —— financial assets at fair value Reclassification of cash and with an insignificant risk through profit or loss; financial instruments of changes in value. —— loans and receivables; Subsequent to initial recognition For cash flow statement and under rare circumstances, presentation purposes, cash and —— held to maturity; and non derivative financial instruments cash equivalents include bank —— available for sale financial assets that have not been overdrafts, which are included as assets. designated at fair value through borrowings on the balance sheet. profit or loss upon recognition, may The classification depends on the be reclassified out of the fair value Receivables purpose for which the investments through profit or loss category, Receivables consist of: were acquired. Management if they are no longer held for the determines the classification of its —— statutory receivables, such investments at initial recognition. purpose of selling or repurchasing as amounts owing from the in the near term. Victorian Government and Any dividend or interest earned on Financial instrument assets that GST input tax credits the financial asset is recognised meet the definition of loans and recoverable; and in the comprehensive operating receivables may be reclassified —— contractual receivables, statement as a transaction. out of the fair value through such as debtors in relation profit and loss category into the to goods and services, loans loans and receivables category, to third parties and accrued where they would have met the investment income. definition of loans and receivables had they not been required to be classified as fair value through 40

Notes to the Financial Statements for the year ended 31 October 2015

Note 1 Summary of are treated as current and virtually certain that the restrictions Significant Accounting classified as held for sale if their will no longer apply. Therefore, Policies (continued) carrying amount will be recovered unless otherwise disclosed, the Impairment of financial assets through a sale transaction rather current use of these non financial than through continuing use. physical assets will be their highest At the end of each reporting and best uses. period, the RMB assesses whether This condition is regarded as there is objective evidence that a met only when: Road network assets and financial asset or group of financial other infrastructure assets are —— the asset is available for assets is impaired. All financial measured at fair value, determined immediate use in the current instrument assets, except those by reference to the asset’s condition; and measured at fair value through depreciated replacement cost. profit or loss, are subject to annual —— the sale is highly probable and Land under declared roads review for impairment. the asset’s sale is expected Financial Statements to be completed in 12 months acquired prior to 1 July 2008 Receivables are assessed for bad from the date of classification. is measured at fair value. Land and doubtful debts on a regular under declared roads acquired on basis. Those bad debts considered These non financial physical or after 1 July 2008 is measured as written off by mutual consent assets, related liabilities and initially at cost of acquisition and are classified as a transaction financial assets are measured at subsequently at fair value. The fair expense. Bad debts not written the lower of carrying amount and value methodology applied by the off by mutual consent and the fair value less costs of disposal, Valuer-General Victoria is based allowance for doubtful receivables and are not subject to depreciation on discounted site values for are classified as ‘other economic or amortisation. relevant municipal areas applied flows’ in the net result. Infrastructure, Property, plant to land area under the arterial road network, including related The amount of the allowance is the and equipment reservations. difference between the financial All non-financial physical assets asset’s carrying amount and the are measured initially at cost and The fair value of infrastructure present value of estimated future subsequently revalued at fair value systems and plant, equipment and cash flows, discounted at the less accumulated depreciation vehicles, is normally determined effective interest rate. and impairment. Where an asset by reference to the asset’s is received for no or nominal depreciated replacement cost. For In assessing impairment of consideration, the cost is the plant, equipment and vehicles, statutory (non-contractual) asset’s fair value at the date of existing depreciated historical cost financial assets, which are not acquisition. is generally a reasonable proxy financial instruments, professional for depreciated replacement cost judgement is applied in assessing The initial cost for non financial because of the short lives of the materiality using estimates, physical assets under a finance assets concerned. averages and other computational lease (refer to Note 1(m)) is methods in accordance with AASB measured at amounts equal to the The cost of non financial physical 136 Impairment of Assets. fair value of the leased asset or, assets includes the cost of all if lower, the present value of the materials used in construction, (k) Non-financial assets minimum lease payments, each direct labour on the project, and an Inventories determined at the inception of the appropriate proportion of variable Inventories include stores and lease. and fixed overheads. materials used in the operation of Non-financial physical assets the waste water treatment plant, For the accounting policy on such as Crown land and heritage snow clearing operation and minor impairment of non-financial assets are measured at fair value amounts of merchandise material. physical assets, refer to with regard to the property’s These items are stated at the lower impairment of non-financial assets highest and best use after due of cost and current replacement under Note 1(h) Impairment of consideration is made for any legal cost. non-financial assets. or physical restrictions imposed on Non financial physical assets the asset, public announcements More details about the valuation classified as held for sale, or commitments made in relation techniques and inputs used in including disposal group assets to the intended use of the asset. determining the fair value of non financial physical assets are Non financial physical assets Theoretical opportunities that may discussed in Note 6 Infrastructure, (including disposal group assets) be available in relation to the asset are not taken into account until it is property, plant and equipment. Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2015 41

Notes to the Financial Statements for the year ended 31 October 2015

Note 1 Summary of decreases arise from differences part of expenditure made in one Significant Accounting between an asset’s carrying value accounting period covering a term Policies (continued) and fair value. extending beyond that period. Restrictive nature of cultural Net revaluation increases (where Intangible assets and heritage assets, Crown the carrying amount of a class Intangible assets are initially land and infrastructure assets of assets is increased as a result recognised at cost. Subsequently, During the reporting period, the of a revaluation) are recognised intangible assets with finite RMB also holds cultural assets, in ‘Other economic flows – other useful lives are carried at cost heritage assets, and other non comprehensive income’ and less accumulated depreciation/ financial physical assets ((including accumulated in equity under the amortisation and accumulated Crown land and infrastructure physical asset revaluation surplus. impairment losses. Costs incurred assets) that the RMB intends to However, the net revaluation subsequent to initial acquisition are preserve because of their unique increase is recognised in the net capitalised when it is expected that historical, cultural or environmental result to the extent that it reverses a additional future economic benefits attributes. net revaluation decrease in respect will flow to the RMB. of the same class of property, plant In general, the fair value of & equipment previously recognised (l) Liabilities those assets is measured at as an expense (other economic Payables the depreciated replacement flows) in the net result. Payables consist of: cost. However, the cost of some heritage and iconic assets may Net revaluation decreases are —— contractual payables, such be the reproduction cost rather recognised in ‘other economic as accounts payable, and than the replacement cost if those flows – other comprehensive unearned income including assets’ service potential could income’ to the extent that a deferred income. Accounts only be replaced by reproducing credit balance exists in the asset payable represent liabilities for them with the same materials. In revaluation surplus in respect goods and services provided addition, as there are limitations of the same class of property, to the RMB prior to the end and restrictions imposed on those plant & equipment. Otherwise, of the financial year that are assets use and/or disposal, they the net revaluation decreases are unpaid, and arise when the may impact the fair value of those recognised immediately as other RMB becomes obliged to make assets, and should be taken into economic flows in the net result. future payments in respect of account when the fair value is The net revaluation decrease the purchase of those goods determined. recognised in ‘other economic and services; and flows – other comprehensive Revaluations of non financial —— statutory payables, such as income’ reduces the amount physical assets goods and services tax and accumulated in equity under the fringe benefits tax payables. Non financial physical assets physical asset revaluation surplus. are measured at fair value on a Contractual payables are classified cyclical basis in accordance with Revaluation increases and as financial instruments and the Financial Reporting Directions decreases relating to individual categorised as financial liabilities at (FRD’s) issued by the Minister for assets in a class of property, plant amortised cost. Statutory payables Finance. A full revaluation normally & equipment are offset against are recognised and measured occurs every five years, based one another within that class but similarly to contractual payables, upon the asset’s government are not offset in respect of assets but are not classified as financial purpose classification but may in different classes. The physical instruments and not included in the occur more frequently if fair value asset revaluation surplus is not category of financial liabilities at assessments indicate material transferred to accumulated funds amortised cost, because they do changes in values. Independent on derecognition of the relevant not arise from a contract. Refer to valuers are used to conduct asset. note 17. these scheduled revaluations. Other non-financial assets Certain infrastructure assets Other non-financial assets are revalued using specialised include: advisors. Any interim revaluations Prepayments are determined in accordance with the requirements of the Prepayments which represent FRDs. Revaluation increases or payments in advance of receipt of goods or services or that 42

Notes to the Financial Statements for the year ended 31 October 2015

Note 1 Summary of (i) Wages and salaries, Conditional LSL is disclosed as Significant Accounting annual leave and sick leave a non current liability. There is an Policies (continued) Liabilities for wages and unconditional right to defer the Borrowings salaries, including non-monetary settlement of the entitlement until the employee has completed the All interest bearing liabilities are benefits and annual leave are all requisite years of service. This non initially recognised at the fair value recognised in the provision for current LSL liability is measured at of the consideration received, less employee benefits as ‘current present value. directly attributable transaction liabilities’, because the RMB does costs (refer also to Note 1(m) not have an unconditional right Any gain or loss following Leases). The measurement basis to defer settlements of these revaluation of the present value subsequent to initial recognition liabilities. of non current LSL liability is is amortised cost. Any difference Depending on the expectation of recognised in the ‘net result from between the initial recognised transactions’, except to the extent

Financial Statements the timing of settlement, liabilities amount and the redemption value for wages and salaries and annual that a gain or loss arises due to is recognised in net result over the leave are measured at: changes in bond interest rates for period of the borrowing using the which it is then recognised in the effective interest method. —— nominal value if the RMB net result as an ‘other economic expects to wholly settle within flow’ (refer to Note 1(h)). The above classification depends 12 months; or on the nature and purpose of the (iii) Termination benefits —— present value if the RMB does interest bearing liabilities. The RMB not expect to wholly settle within Termination benefits are payable determines the classification of its 12 months. when employment is terminated interest bearing liabilities at initial before the normal retirement date, recognition. (ii) Long service leave or when an employee accepts an Provisions Liability for long service leave (LSL) offer of benefits in exchange for Provisions are recognised when is recognised in the provision for the termination of employment. the RMB has a present obligation, employee benefits. The RMB recognises termination benefits when it is demonstrably the future sacrifice of economic Unconditional LSL is disclosed committed to either terminating the benefits is probable, and the in the notes to the financial employment of current employees amount of the provision can be statements as a current liability according to a detailed formal plan measured reliably. even where the RMB does not without possibility of withdrawal expect to settle the liability within The amount recognised as a or providing termination benefits 12 months because it will not have provision is the best estimate of the as a result of an offer made to the unconditional right to defer consideration required to settle the encourage voluntary redundancy. the settlement of the entitlement present obligation at the reporting Benefits falling due more than should an employee take leave date, taking into account the risks 12 months after the end of the within 12 months. and uncertainties surrounding the reporting period are discounted to obligation. Where a provision is The components of this current present value. measured using the cash flows LSL liability are measured at: estimated to settle the present Employee benefits on costs obligation, its carrying amount is —— nominal value—component that Employee benefits on costs the present value of those cash the RMB expects to wholly settle such as payroll tax, workers flows, using the discount rate that within 12 months; and compensation and superannuation reflects the time value of money —— present value—component that are recognised as part of the and risks specific to the provision. the RMB does not expect to provision for employee benefits. settle within 12 months. Employee benefits (m) Leases Provision is made for benefits A lease is a right to use an asset accruing to employees in respect for an agreed period of time in of wages and salaries, annual exchange for payment. leave and long service leave for services rendered to the reporting date. Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2015 43

Notes to the Financial Statements for the year ended 31 October 2015

Note 1 Summary of Transfers of net assets arising Receivables and payables are Significant Accounting from administrative restructurings stated inclusive of the amount of Policies (continued) are treated as distributions to or GST receivable or payable. The net RMB as lessee contributions by owners. Transfers amount of GST recoverable from, of net liabilities arising from or payable to, the taxation authority Leases are classified at their administrative restructurings are is included with other receivables inception as either operating treated as distributions to owners. or payables in the balance sheet. or finance leases based on the economic substance of the (o) Commitments Cash flows are presented on a agreement so as to reflect the Commitments for future gross basis. The GST components risks and rewards incidental to expenditure include operating and of cash flows arising from investing ownership. Leases of property, capital commitments arising from or financing activities which are plant and equipment are classified contracts. These commitments recoverable from, or payable to the as finance leases whenever are disclosed by way of a note taxation authority, are presented as the terms of the lease transfer (refer to Note 15 Commitments for operating cash flow. substantially all the risks and expenditure) at their nominal value Commitments and contingent rewards of ownership from the and inclusive of the GST payable. assets and liabilities are also lessor to the lessee. An asset and In addition, where it is considered stated inclusive of GST. liability are both recognised at appropriate and provides the fair value of the future lease additional relevant information to (r) Events after the payments. All other leases are users, the net present values of reporting period classified as operating leases, in significant individual projects are Assets, liabilities, income or which case lease payments are stated. These future expenditures expenses arise from past recognised as an expense and cease to be disclosed as transactions or other past events. no asset or liability is brought to commitments once the related Where the transactions result from account. liabilities are recognised in the an agreement between the RMB RMB as lessor balance sheet. and other parties, the transactions are only recognised when the Rental income from operating (p) Contingent assets and agreement is irrevocable at or leases is recognised on a straight contingent liabilities before the end of the reporting line basis over the term of the Contingent assets and contingent period. Adjustments are made relevant lease and no asset or liabilities are not recognised in the to amounts recognised in the liability is brought to account. balance sheet, but are disclosed financial statements for events (n) Equity by way of a note (Note 16) and, which occur after the reporting if quantifiable, are measured at Contributions by owners period and before the date nominal value. Contingent assets the financial statements are Consistent with the requirements and liabilities are presented authorised for issue, where those of AASB 1004 Contributions, inclusive of GST receivable or events provide information about contributions by owners (that payable respectively. conditions which existed in the is, contributed capital and its reporting period. Note disclosure repayment) are treated as equity (q) Accounting for the Goods is made about events between the transactions and, therefore, do and Services Tax (GST) end of the reporting period and not form part of the income and Income, expenses and assets are the date the financial statements expenses of the RMB. recognised net of the amount of are authorised for issue where the associated GST, except where the Additions to net assets which have events relate to conditions which GST incurred is not recoverable been designated as contributions arose after the end of the reporting from the taxation authority. In this by owners are recognised period that are considered to be of case GST is recognised as part of as contributed capital. Other material interest. the cost of acquisition of the asset transfers that are in the nature or as part of the expense. of contributions or distributions have also been designated as contributions by owners. 44

Notes to the Financial Statements for the year ended 31 October 2015

Note 1 Summary of Significant Accounting Policies (continued) (s) AASs issued that are not yet effective Certain new AASs have been published that are not mandatory for the 31 October 2015 reporting period. Department of Treasury and Finance (DTF) assesses the impact of all these new standards and advises the RMB of their applicability and early adoption where applicable. As at 31 October 2015, the following standards and interpretations that are applicable to the RMB had been issued but are not mandatory for the financial year ending 31 October 2015. The RMB has not early adopted these standards.

Standard / Summary Applicable Impact on RMB Interpretation for annual financial statements reporting periods beginning on Financial Statements

AASB 15 Revenue from The core principle of AASB 15 requires 1 Jan 2017 The changes in revenue Contracts with Customers an entity to recognise revenue when recognition requirements (Exposure Draft 263 – the entity satisfies a performance in AASB 15 may result in potential deferral to obligation by transferring a promised changes to the timing and 1 Jan 2018) good or service to a customer. amount of revenue recorded in the financial statements. The Standard will also require additional disclosures on service revenue and contract modifications. A potential impact will be the upfront recognition of revenue from licenses that cover multiple reporting periods. Revenue that was deferred and amortised over a period may now need to be recognised immediately as a transitional adjustment against the opening returned earnings if there are no former performance obligations outstanding. AASB 2015-6 The Amendments extend the scope of 1 Jan 2016 The amending standard Amendments to Australian AASB 124 Related Party Disclosures will result in extended Accounting Standards – to not-for-profit public sector entities. A disclosures on the entity’s Extending Related Party guidance has been included to assist key management personnel Disclosures to Not-for- the application of the Standard by not- (KMP), and the related party Profit Public Sector Entities for-profit public sector entities. transactions. [AASB 10, AASB 124 & AASB 1049] AASB 9 Financial The key changes include the simplified 1 Jan 2018 The assessment has Instruments requirements for the classification and identified that the financial measurement of financial assets, a impact of available for sale new hedging accounting model and (AFS) assets will now be a revised impairment loss model to reported through other recognise impairment losses earlier, comprehensive income as opposed to the current approach (OCI) and no longer recycled that recognises impairment only when to the profit and loss. incurred. While the preliminary assessment has not identified any material impact arising from AASB 9, it will continue to be monitored and assessed. Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2015 45

Notes to the Financial Statements for the year ended 31 October 2015

Note 1 Summary of Significant Accounting Policies (continued)

Standard / Summary Applicable Impact on RMB Interpretation for annual financial statements reporting periods beginning on

AASB 2014-4 Amends AASB 116 Property, Plant 1 Jan 2016 The assessment has Amendments to Australian and Equipment and AASB 138 indicated that there is no Accounting Standards – Intangible Assets to: expected impact as the Clarification of Acceptable revenue-based method is not ­— establish the principle for the basis Methods of Depreciation used for depreciation and of depreciation and amortisation and Amortisation [AASB amortisation. as being the expected pattern of 116 & AASB 138] consumption of the future economic benefits of an asset; — prohibit the use of revenue based methods to calculate the depreciation or amortisation of an asset, tangible or intangible, because revenue generally reflects the pattern of economic benefits that are generated from operating the business, rather than the consumption through the use of the asset.

In addition to the new standards and amendments above, the AASB has issued a list of other amending standards that are not effective for the 2014-15 reporting period (as listed below). In general, these amending standards include editorial and references changes that are expected to have insignificant impacts on public sector reporting. —— AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010). —— AASB 2013-9 Amendments to Australian Accounting Standards – Conceptual Framework, Materiality and Financial Instruments —— AASB 2014-1 Amendments to Australian Accounting Standards [PART D – Consequential Amendments arising from AASB 14 Regulatory Deferral Accounts only] # —— AASB 2014-3 Amendments to Australian Accounting Standards – Accounting for Acquisitions of Interests in Joint Operations [AASB 1 & AASB 11] —— AASB 2014-5 Amendments to Australian Accounting Standards arising from AASB 15 —— AASB 2014-6 Amendments to Australian Accounting Standards – Agriculture: Bearer Plants [AASB 101, AASB 116, AASB 117, AASB 123, AASB 136, AASB 140 & AASB 141] —— AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014) —— AASB 2014-8 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014) – Application of AASB 9 (December 2009) and AASB 9 (December 2010) [AASB 9 (2009 & 2010)] —— AASB 2015-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101 [AASB 7, AASB 101, AASB 134 & AASB 1049] —— AASB 2015-3 Amendments to Australian Accounting Standards arising from the Withdrawal of AASB 1031 Materiality —— AASB 2015-4 Amendments to Australian Accounting Standards – Financial Reporting Requirements for Australian Groups with a Foreign Parent [AASB 127, AASB 128] # —— AASB 2015-5 Amendments to Australian Accounting Standards – Investment Entities: Applying the Consolidation Exception [AASB 10, AASB 12, AASB 128] # Note: # This Standard or Amendment may not be relevant to Victorian not-for-profit entities when operative 46

Notes to the Financial Statements for the year ended 31 October 2015

Note 2: Expenses from transactions

2015 2014 $‘000 $‘000 (a) Employee expenses: Superannuation expense 304 298 Salaries and wages 3,550 3,495 Other employee benefits 75 74 Total employee expenses 3,929 3,867

(b) Finance costs:

Financial Statements Interest expense 91 108 Total interest expense 91 108

(c) Depreciation: Buildings 580 542 Infrastructure Assets 845 813 Leased Assets – 6 Plant & Equipment 383 319 Total depreciation 1,808 1,680

(d) Other: Bad and doubtful debts from transactions – –

Note 3: Other economic flows included in net result

2015 2014 $‘000 $‘000 Net gain/(loss) on non-financial assets Gain on sale of assets 4 1 Loss on write-off of assets (23) (12) Net gain/(loss) on disposal of physical assets (19) (11) Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2015 47

Notes to the Financial Statements for the year ended 31 October 2015

Note 4: Receivables

2015 2014 $‘000 $‘000 Current Contractual Sale of good and services 1,125 373 Provision for doubtful contractual receivables – – Accrued Investment Income 6 5 Other receivables 4 7 1,135 385

Statutory GST input tax recoverable 43 87 43 87 Total Current Receivables 1,178 472

The carrying value of debtors at 31 October 2015 approximates fair value. A provision of nil (2014: nil) has been made in regard to the possible non-collection of Trade Debtors. Interest is charged on overdue site rentals and utility charges at a rate fixed by Section 2 of the Penalty Interest Rates Act 1983, which, at 31 October 2015 was 9.5% per annum. (2014: 10.5%) (a) Ageing analysis of receivables Please refer to Note 17 for the ageing analysis of receivables. (b) Nature and extent of risk arising from receivables Please refer to Note 17 for the nature and extent of risks arising from receivables.

Note 5: Inventories

2015 2014 $‘000 $‘000

Consumables 34 24 Total Inventories 34 24 48

Notes to the Financial Statements for the year ended 31 October 2015

Note 6: Infrastructure, Property, Plant and Equipment

2015 2014 $‘000 $‘000 Land Land at Fair Value – Mount Buller – Village 78,375 78,375 Land at Fair Value – Mount Buller – Other 3,548 3,548 Land under Roads at Fair Value – Mount Buller 25,525 25,525 Land at Fair Value – Mount Stirling 3,240 3,240 Total Land at Fair Value 110,688 110,688

Buildings Financial Statements Buildings at Fair Value 18,571 17,904 Less Accumulated Depreciation (2,116) (1,536) Total of Buildings at Fair Value 16,455 16,368

Infrastructure Assets Infrastructure Assets at Fair Value 37,090 35,319 Less Accumulated Depreciation (3,187) (2,342) Total of Infrastructure Assets at Fair Value 33,903 32,977

Plant and Equipment Plant and Equipment at Fair Value 4,824 4,467 Less Accumulated Depreciation (3,122) (2,844) Total of Plant and Equipment at Fair Value 1,702 1,623

Art work at Fair Value 337 337

Capital Work in Progress at Cost 2,757 3,114

Total Infrastructure, Property, Plant and Equipment 165,842 165,107

Land & Buildings of the RMB were valued at 31st October 2011 by the Valuer-General of Victoria (using Cosgraves Property Advisors) at their fair value. Infrastructure assets of the RMB were valued at the 31st October 2011 by the Valuer-General of Victoria (using AssetVal Pty Ltd) at their fair value. Art work of the RMB were valued at 24th October 2008 by Louise Smith Fine Art at their fair value. Additional Art work was acquired in 2014 from the Mount Buller Arts Association and were valued at insurable replacement cost which is deemed fair value. In relation to Plant and Equipment management determined that in accordance with FRD 103F depreciated replacement cost represents a reasonable approximation of fair value at 31st October 2015. Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2015 49

Notes to the Financial Statements for the year ended 31 October 2015

Note 6: Infrastructure, Property, Plant and Equipment (continued)

Land Buildings Infrastructure Leased Plant and Art CWIP Total At Fair At Fair Assets Assets Equipment Works At Cost Value Value At Fair At Fair At Fair At Fair Value Value Value Value $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Year ended 31 October 2014 Opening 110,688 15,801 33,472 70 1,584 153 1,797 163,565 net value Additions – 757 285 – 282 184 1,757 3,265 Disposals – – –– (15) – (28) (43) Depreciation – (542) (813) (6) (319) – – (1,680) Transfers – 352 33 (64) 91 – (412) – Closing net book value 110,688 16,368 32,977 – 1,623 337 3,114 165,107

Year ended 31 October 2015 Opening 110,688 16,368 32,977 – 1,623 337 3,114 165,107 net value Additions – 620 626 – 537 – 848 2,631 Disposals – – –– (82) – (6) (88) Depreciation – (580) (845) – (383) – – (1,808) Transfers – 47 1,145 – 7 – (1,199) – Closing net book value 110,688 16,455 33,903 – 1,702 337 2,757 165,842 50

Notes to the Financial Statements for the year ended 31 October 2015

Note 6: Infrastructure, Property, Plant and Equipment (continued) Fair value measurement hierarchy for assets as at 30 June 2015

($ thousand) Carrying Fair value measurement amount as at at end of reporting period using: 30 June 2015 Level 1(i) Level 2(i) Level 3(i) Land at fair value Non Specialised Land 220 – 220 – Specialised land 110,468 – 78,375 32,093 Total of land at fair value 110,688 – 78,595 32,093 Buildings at fair value Financial Statements Non specialised buildings 252 – 252 – Specialised buildings 16,203 – – 16,203 Total of buildings at fair value 16,455 – 252 16,203 Plant, equipment and vehicles at fair value Vehicles 616 – 372 244 Plant and equipment 1,086 – – 1,086 Total of plant, equipment 1,702 – 372 1,330 and vehicles at fair value Infrastructure at fair value Infrastructure – Garbage 356 – – 356 Infrastructure – Gas 911 – – 911 Infrastructure – Mt Stirling 4,398 – – 4,398 Infrastructure – Sewerage 6,260 – – 6,260 Infrastructure – Village Facilities 2,454 – – 2,454 Infrastructure – Water 4,667 – – 4,667 Infrastructure – Roads & Carparks 14,857 – – 14,857 Total of infrastructure 33,903 – – 33,903 at fair value Cultural assets at fair value Artworks 337 – 337 – Total of cultural assets 337 – 337 – at fair value

(i) Classified in accordance with the fair value hierarchy, see Note 1(b). Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2015 51

Notes to the Financial Statements for the year ended 31 October 2015

Note 6: Infrastructure, Property, Plant and Equipment (continued) Fair value measurement hierarchy for assets as at 30 June 2014

($ thousand) Carrying Fair value measurement amount as at at end of reporting period using: 30 June 2014 Level 1(i) Level 2(i) Level 3(i) Land at fair value Non Specialised Land 220 – 220 – Specialised land 110,468 – – 110,468 Total of land at fair value 110,688 – 220 110,468 Buildings at fair value Non specialised buildings 257 – 257 – Specialised buildings 16,111 – – 16,111 Total of buildings at fair value 16,368 – 257 16,111 Plant, equipment and vehicles at fair value Vehicles 540 – 352 188 Plant and equipment 1,083 – – 1,083 Total of plant, equipment and vehicles at fair value 1,623 – 352 1,271 Infrastructure at fair value Infrastructure – Garbage 354 – – 354 Infrastructure – Gas 944 – – 944 Infrastructure – Mt Stirling 4,535 – – 4,535 Infrastructure – Sewerage 6,384 – – 6,384 Infrastructure – Village Facilities 2,411 – – 2,411 Infrastructure – Water 4,183 – – 4,183 Infrastructure – Roads & Carparks 14,166 – – 14,166 Total of infrastructure at fair value 32,977 – – 32,977 Cultural assets at fair value Artworks 337 – 337 – Total of cultural assets at fair value 337 – 337 –

(i) Classified in accordance with the fair value hierarchy, see Note 1(b). 52

Notes to the Financial Statements for the year ended 31 October 2015

Note 6: Infrastructure, of the income combined with basis. Replacement costs relate Property, Plant and the reversion value of the site at to costs to replace the current Equipment (continued) the expiration of the current site service capacity of the asset. Non specialised land, lease term and is adjusted for Economic obsolescence has also non specialised buildings the community service obligation been factored into the depreciated and artworks (CSO) to reflect the specialised replacement cost calculation. nature of the land being valued. Non specialised land, non Where it has not been possible specialised buildings and artworks The CSO adjustment is a reflection to examine hidden works, the are valued using the market of the valuer’s assessment of the use of reasonable materials approach. Under this valuation impact of restrictions associated and methods of construction method, the assets are compared with an asset to the extent that is have been assumed bearing to recent comparable sales or also equally applicable to market in mind the age and nature of sales of comparable assets which participants. This approach is the asset. The estimated cost Financial Statements are considered to have nominal or in light of the highest and best of reconstruction including no added improvement value. use consideration required for structure services and finishes, fair value measurement, and also factors in any heritage For non specialised land and takes into account the use of the classifications as applicable. non specialised buildings, an asset that is physically possible, An independent valuation of the independent valuation was legally permissible, and financially RMB’s infrastructure and road performed by independent valuers feasible. As adjustments of CSO infrastructure and earthworks was Cosgraves Property Advisors to are considered as significant performed by the Valuer General determine the fair value using unobservable inputs, specialised Victoria (using AssetVal Pty Ltd). the market approach. Valuation land would be classified as Level The valuation was performed of the assets was determined 3 assets. based on the depreciated by adopting the site value for replacement cost of the assets. each leased site then calculating For the RMB’s majority of The effective date of the valuation the present value of the income specialised buildings, the is 31 October 2011. combined with the reversion value depreciated replacement cost of the site at the expiration of method is used, adjusting for Vehicles the current site lease term. The the associated depreciations. Vehicles are valued using the effective date of the valuation is As depreciation adjustments depreciated replacement cost 31 October 2011. are considered as significant, method. The RMB acquires new unobservable inputs in nature, vehicles and at times disposes For artwork, valuation of the assets specialised buildings are of them before the end of their is determined by a comparison classified as Level 3 fair value economic life. The process of to similar examples of the artists measurements. acquisition, use and disposal in the work in existence throughout market is managed by experienced Australia and research on prices An independent valuation of fleet managers in the RMB who set paid for similar examples offered the RMB’s specialised land relevant depreciation rates during at auction or through art galleries and specialised buildings was use to reflect the utilisation of the in recent years. No revaluation performed by the Valuer General vehicles. was performed for artwork for Victoria (using Cosgraves Property the financial period ending at 31 Advisors). The valuation was Plant and equipment October 2015. performed using the market Plant and equipment is held at fair approach adjusted for CSO. The To the extent that non specialised value. When plant and equipment effective date of the valuation is land, non specialised buildings and is specialised in use, such that it 31 October 2011. artworks do not contain significant, is rarely sold other than as part unobservable adjustments, these Infrastructure and road of a going concern, fair value is assets are classified as Level 2 infrastructure determined using the depreciated under the market approach. Infrastructure and road replacement cost method. infrastructure and earthworks Specialised land and There were no changes in valuation are valued using the depreciated specialised buildings techniques throughout the period replacement cost method. This to 31 October 2015. Fair value for specialised land is cost represents the replacement determined by adopting the site cost of the asset after applying For all assets measured at fair value for each leased site then depreciation rates on a useful life value, the current use is considered calculating the present value the highest and best use. Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2015 53

Notes to the Financial Statements for the year ended 31 October 2015

Note 6: Infrastructure, Property, Plant and Equipment (continued) Reconciliation of Level 3 fair value

2015 Specialised Specialised Vehicles Plant and Infrastructure land buildings equipment

Opening balance 110,468 16,111 188 1,083 32,977 Purchases (sales) – 663 119 237 1,771 Transfers in (out) of Level 3 (78,375) – – – – Gains or losses recognised in net result – – – – – Depreciation – (571) (63) (234) (845) Impairment loss – – – – – Subtotal (78,375) 92 56 3 926 Gains or losses recognised in other economic flows – other comprehensive income Revaluation – – – – – Subtotal – – – – – Closing balance 32,093 16,203 244 1,086 33,903 Unrealised gains/(losses) on non financial assets – – – – –

In accordance with Note 1(b), the RMB have undertaken a reassessment at the end of the reporting period and have identified a significant portion of the land which had previously been classified as level 3 in the fair value measurement to have sufficiently observable inputs to reclassify the land and be recognised as a level 2 input.

2014 Specialised Specialised Vehicles Plant and Infrastructure land buildings equipment

Opening balance 110,468 15,534 216 995 33,472 Purchases (sales) – 1,109 23 286 318 Transfers in (out) of Level 3 – – – – – Gains or losses recognised in net result – – – – – Depreciation – (532) (51) (198) (813) Impairment loss – – – – – Subtotal – 577 (28) 88 (495) Gains or losses recognised in other economic flows – other comprehensive income Revaluation – – – – – Subtotal – – – – – Closing balance 110,468 16,111 188 1,083 32,977 Unrealised gains/(losses) on non financial assets – – – – – 54

Notes to the Financial Statements for the year ended 31 October 2015

Note 6: Infrastructure, Property, Plant and Equipment (continued) Description of significant unobservable inputs to Level 3 valuations

Valuation technique Significant Unobservable Inputs

Specialised Land Land under Roads Market approach Extent & Impact of Restriction of Use Specialised Land – Village Present Value of Income Stream Income per Square metre Specialised Land – Parks Market Approach Adopted Area – $ per hectare Specialised buildings – General Depreciated replacement cost Direct cost per square metre Useful life of specialised buildings Specialised buildings – Alpine Central Depreciated replacement cost Direct cost per square metre Useful life of specialised buildings

Financial Statements 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 Infrastructure – Garbage Depreciated replacement cost Cost per unit Useful life of the infrastructure Infrastructure – Gas Depreciated replacement cost Cost per unit Useful life of the infrastructure Infrastructure – Mt Stirling Depreciated replacement cost Cost per unit Useful life of the infrastructure Infrastructure – Sewerage Depreciated replacement cost Cost per unit Useful life of the infrastructure Infrastructure – Village Depreciated replacement cost Cost per unit Useful life of the infrastructure Infrastructure – Water Depreciated replacement cost Cost per unit Useful life of the infrastructure Infrastructure – Roads & Carparks Depreciated replacement cost Cost per unit Useful life of the infrastructure These significant observable inputs remain unchanged from 31 October 2014.

Note 7: Other non-financial assets

2015 2014 $‘000 $‘000

Prepayments (current) 402 448 Intangible Assets (non-current) 7 7 Total Other non-financial assets 409 455 Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2015 55

Notes to the Financial Statements for the year ended 31 October 2015

Note 8: Non financial physical assets classified as held for sale (a) Non financial physical assets classified as held for sale

2015 2014 $‘000 $‘000 Non current assets: Buildings held for sale 90 – Total non financial physical assets classified as held for sale 90 –

(b) Fair value measurement of non financial physical assets held for sale The following table provides the fair value measurement hierarchy of the Department’s non financial physical assets held for sale.

($ thousand) Carrying Fair value measurement amount as at at end of reporting period using: 30 June 2015 Level 1(i) Level 2(i) Level 3(i) Buildings held for sale 90 – 90 – Total of buildings held for sale 90 – 90 –

Buildings held for sale is carried at fair value less costs to disposal. Refer to Note 6 for the valuation technique applied to non specialised buildings.

Note 9: Payables

2015 2014 $‘000 $‘000

Current Contractual Supplies and services 303 381 Amount payable to government and agencies 1 – Accrued expenses 576 792 Other payables 48 47 928 1,220 Statutory FBT payable 5 5 Other tax payable 59 121 64 126 Total payables 992 1,346

All trade and other creditors are non-interest bearing. The carrying amount of creditors at the end of the reporting period approximates fair value. (a) Maturity analysis of contractual payables Please refer to Note 17 for the ageing analysis of payables. (b) Nature and extent of risk arising from contractual payables Please refer to Note 17 for the nature and extent of risks arising from payables. 56

Notes to the Financial Statements for the year ended 31 October 2015

Note 10: Borrowings

2015 2014 $‘000 $‘000 Current Interest bearing loan (i) 155 199 Non-interest bearing loan (ii) 199 144 354 343 Non-Current Interest bearing loan (i) 1,568 1,862 Non-interest bearing loan (ii) 1,092 1,244

Financial Statements 1,214 1,519

Total Borrowings 1,568 1,862

(i) An interest bearing loan was taken out with the Treasury Corporation of Victoria in 2007, bearing a fixed interest rate of 6.84%, repayable in quarterly instalments over 10 years. The loan is unsecured.

(ii) Non interest bearing loans relate to the deferred settlement with La Trobe University on the acquisition of Alpine Central. The loan is recorded at its net present value at the date of acquisition. The loan is unsecured.

(a) Maturity analysis of borrowings Please refer to Note 17 for the ageing analysis of borrowings. (b) Nature and extent of risk arising from borrowings Please refer to Note 17 for the nature and extent of risks arising from borrowings. (c) Defaults and breaches During the current and prior year, there were no defaults and breaches of any of the loans. Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2015 57

Notes to the Financial Statements for the year ended 31 October 2015

Note 11: Provisions

2015 2014 $‘000 $‘000 Current Employee Benefits (Note 11(a)) Annual leave entitlements (Note 11(a)) Unconditional and expected to settle within 12 months 175 167 Unconditional and expected to settle after 12 months 30 33 Long Service Leave entitlements (Note 11(a)) Unconditional and expected to settle within 12 months 15 21 Unconditional and expected to settle after 12 months 245 241 Other Employee Benefits (Note 11(a)) Accrued day off (ADO) entitlements 10 13 Staff bonuses 30 42 505 517 Provision for on-costs (Note 11(a)) and Note 11(b)) Unconditional and expected to settle within 12 months 13 14 Unconditional and expected to settle after 12 months 16 16 29 30 Total Current Provisions 534 547 Non-Current Provisions Employee Benefits (Note 11(a)) Conditional long service leave entitlements 155 98 On-costs (Note 11(a)) and Note 11(b)) 9 6 Total Non-Current Provisions 164 104 Total Provisions 698 651 58

Notes to the Financial Statements for the year ended 31 October 2015

Note 11(a): Employee benefits and on-costs

2015 2014 $‘000 $‘000 Current Employee Benefits Annual Leave 205 200 Long Service Leave 260 262 Accrued day off (ADO) entitlements 10 13 Staff bonuses 30 42 Non-Current Employee Benefits Long Service Leave 155 98 Total Employee Benefits 660 615 Financial Statements Current on-costs 29 30 Non-Current on-costs 9 6 Total on-costs 38 36 Total Employee benefits and on-costs 698 651 Long service leave entitlements for those employees with 7 or more years’ continuous service are treated as a current liability. Long service leave entitlements for those employees with less than 7 years continuous service are treated as a non-current liability.

Note 11(b): Movement in on-costs

On-costs Total 2015 2014 $’000 $’000 Opening Balance 36 36 Additional provisions recognised 22 22 Reductions arising from payments/other sacrifices of future economic benefits (19) (19) Reductions resulting from re-measurement or settlement without cost (1) (1) Unwind of discount and effect in the discount rate – – Closing Balance 38 38

Current 29 29 Non-Current 9 9 38 38 Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2015 59

Notes to the Financial Statements for the year ended 31 October 2015

Note 12: Superannuation Employees of the RMB are entitled to receive superannuation benefits and the RMB contributes to both defined benefit and defined contribution plans. The defined benefit plan provides benefits based on years of service and final average salary. The RMB does not recognise any defined benefit liability in respect of the plan because the entity has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The Department of Treasury and Finance discloses the State’s defined benefit liabilities in its disclosure for administered items. However, superannuation contributions paid or payable for the reporting period are included in the Comprehensive Operating Statement of the RMB. The name, details and amounts expensed in relation to the major employee superannuation funds and contributions made by the RMB are as follows:

Scheme: Type Cont’n Range 2015 2014 (%) $’000 $’000 Defined Benefit Emergency Services and State Super Defined Benefit 9.5-12.6 16 15

Defined Contribution Vic Super Accumulation 9.5 67 56 C-Bus Accumulation 9.5 27 25 Host Plus Superannuation Accumulation 9.5 63 47 Sunsuper Superannuation Fund Accumulation 9.5 28 32 Other Accumulation 9.5 166 157

Total contributions for the period were $367,463 (2014: $332,173) and there was $23,570 (2014: $19,490) outstanding as at 31 October 2015 which is listed in Trade Creditors.

Note 13: Other liabilities

2015 2014 $‘000 $‘000

Deferred revenue – current 176 128 Total Other Liabilities 176 128 60

Notes to the Financial Statements for the year ended 31 October 2015

Note 14: Leases Crown land Crown Land is recorded in the accounts of the RMB at the Cosgraves Property Advisers valuation. The RMB has brought to account the rental revenue in relation to the leased sites and does not account for depreciation since the class of assets is defined as land. The RMB, acting as a Committee of Management under Section 38 of the Alpine Resorts (Management) Act 1997, manages 176 Crown lease arrangements with site holders. The lease arrangements cover lease periods up to ninety-nine years. Gas network The right to operate the LP Gas system was licensed to Indigo Shire Council. The RMB has retained the majority of the infrastructure assets associated with the delivery of gas to the site holders on the mountain. In 2013 the RMB has extended the lease to use these assets to Indigo Shire Council for ten years and will receive 3% of Gross revenue from the sale of gas during the period of the lease. The lease contains provisions for further ten

Financial Statements year options. All assets remain the property of the RMB at the conclusion of the lease period.

2015 2014 $‘000 $‘000 Non-cancellable operating lease receivables Not longer than 1 year 3,854 3,767 Longer than 1 year and not longer than 5 years 13,214 13,551 Longer than 5 years 61,888 64,866 78,956 82,184

Note 15: Commitments for expenditure The following commitments have not been recognised as liabilities in the financial statements:

2015 2014 $‘000 $‘000 (a) Capital expenditure commitments Property, plant and equipment (a) Within one year – – Later than one year but not later than 5 years 1,736 1,736 Longer than 5 years – – Total capital expenditure commitments 1,736 1,736

(b) Operating expenditure commitments Other operating commitments (b) Within one year 2,603 2,193 Later than one year but not later than 5 years 6,168 4,746 Longer than 5 years 30,502 219 Total operating expenditure commitments 39,273 7,158 Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2015 61

Notes to the Financial Statements for the year ended 31 October 2015

Note 15: Commitments for — A commitment to the Regional Tourism — A new sponsorship agreement was expenditure (continued) Board for $45,175 for marketing and entered into for five years in 2014 with product development of North East the Mount Buller Arts Association for (a) The RMB has been allocated a grant of Regional Victoria. $15,000 per annum. $1.55 million (excl GST) from the Victorian Department of Transport, Planning and — A commitment to the Alpine Resorts — A contract with Targa Australia and the Local Infrastructure to assist in funding Coordinating Council (ARCC) for Mansfield Shire Council to conduct one the Buller/Stirling Touring Link road $557,656 per annum, as directed by Targa High Country event each year project. The funding is conditional upon the Minister. from November 2013 to November receiving other grant funds to render the — A commitment to Mansfield-Mt Buller 2017. The RMB commits $30,000 project fully financed. The project involves Regional Tourism Association Ltd in sponsorship each year made up the construction of a link road between (trading as High Country Reservations) of $20,000 cash plus up to $10,000 Mount Buller and Mount Stirling which will for the provision of tourist information of agreed in kind support, indexed provide an additional emergency access services based in Mansfield and the according to annual CPI. road should the existing Mount Buller road provision of visitor information during — A new contract with Targa Australia be closed temporarily for any reason. the winter season based on Mt Buller. to conduct one Targa Experience Mt $186,363 of the allocated funding has An amount of $87,797 + GST has Buller event each year from November been received as at 31 October 2015. been committed for the Mansfield- 2015 to November 2017. The RMB Preliminary design work and other based visitor information services for commits $10,000 in sponsorship each tasks undertaken in connection with 2015-16 and $47,066 + GST for the year made up of $5,000 cash plus up the development of a planning permit Mt Buller based information services. to $5,000 of agreed in kind support, application have been completed. The — A garbage collection contract was indexed according to annual CPI. Board has committed its own funds entered into on 1 June 2005 and — A new three year agreement for the (via the Capital Improvement Fund) to the base cost of the contract is provision of Winter Medical Services the project, and lobbies the Federal $375,000+GST per annum. The RMB with Churchill Drive Pty Ltd and Government for an allocation of funds extended the contract until 2018. Mansfield Medical Clinic Pty Ltd was when opportunities become available. — An agreement has been entered entered into in 2015. The 2015/16 The project is anticipated to cost into with DELWP for the ‘Burramys commitment approximates $213,849 approximately $5 million. Recovery Plan’. This commitment plus GST. (b) In regards to future operating involves the expenditure of $1.163 commitments, the RMB has the following: million over five years starting in the 2005-06 financial year. This plan is — A new agreement with Buller Ski Lifts ongoing. The amount of $51,000 Pty Ltd for ski patrol services was has been committed for the 2015-16 entered into in 2014-15. $230,821 financial year. + GST was paid in 2014-15. There is an ongoing annual CPI adjusted — A cleaning contract was entered into commitment based on this amount in April 2015 and the base cost of the which ends in 2089 in line with the ski contract is $150,000 per annum. The area lease. cleaning contract is for three years and subject to annual performance reviews. — A commitment exists to sponsor the annual Victorian Inter-Schools Skiing — A new transport agreement was Competition for $45,000 per annum entered into for five years starting on plus CPI. A new agreement was made the first day of the 2010 declared snow on 1 January 2013 for 5 years with an season. The base cost of the contract option for a 5 year extension. is $454,135 per annum with the RMB having the further option to add five one year extensions. The RMB have agreed with the contractor for a one year extension for 2015-16 and the 2015-16 commitment approximates $570,250. 62

Notes to the Financial Statements for the year ended 31 October 2015

Note 16: Contingent assets and liabilities There are 5 claims that have been made against the RMB by visitors. The claims are currently being investigated by insurance assessors. In 2014-15 the RMB has accounted for $72,336 of costs incurred in investigating these claims by our insurer. Should there ultimately prove to be any substance to each claim the liability to the RMB would be limited to the $25,000 insurance excess per claim and the contingent liability would be limited to $52,664 (2014: $22,457)

Note 17: Financial instruments (a) Significant accounting policies The RMB’s principal financial instruments comprise of: —— cash assets; —— term deposits; Financial Statements —— receivables; —— payables; and —— borrowings. 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 above are disclosed in Note 1 to the financial statements. The main purpose in holding financial instruments is to prudentially manage the RMB’s financial risks in the government policy parameters. The RMB’s main financial risks include credit risk, liquidity risk and interest rate risk. The RMB manages these financial risks in accordance with its financial risk management policy. The RMB uses different methods to measure and manage the different risks to which it is exposed. Primary responsibility for the identification and management of financial risks rests with the Risk, Audit & Finance Committee of the RMB. The carrying amounts of the RMB’s financial assets and financial liabilities by category are in the table below.

Note Category Carrying Carrying amount amount 2015 2014 $‘000 $‘000 Contractual financial liabilities Cash and deposits 18(a) N/A 4,493 5,123 Receivables 4 Loans and receivable 1,135 385 (at amortised cost) Total financial assets 5,628 5,508

Financial liabilities Payables 9 Financial liabilities measured 928 1,220 at amortised cost Interest bearing liabilities 10 Financial liabilities measured 277 474 at amortised cost Non-interest bearing loans 10 Financial liabilities measured 1,291 1,388 at amortised cost Total contractual financial liabilities 2,496 3,082 Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2015 63

Notes to the Financial Statements for the year ended 31 October 2015

Note 17: Financial instruments (continued) (b) Credit risk Credit risk arises from the financial assets of the RMB, which comprise cash and deposits, trade and other receivables. The RMB’s exposure to credit risk arises from the potential default of a counter party on their contractual obligations resulting in financial loss to the RMB. Credit risk is measured at fair value and is monitored on a regular basis. Credit risk associated with the RMB’s financial assets is minimal because the majority of debtors arise under lease arrangements and default of payment would constitute a breach of the contractual lease agreement which could result in termination of the lease. The RMB does not engage in hedging for its financial assets and mainly obtains financial assets that are on fixed interest or cash assets which are mainly cash at bank. Provision for impairment for financial assets is recognised when there is objective evidence that the RMB will not be able to collect a receivable. Objective evidence includes previous experience, financial difficulties of the debtor, default payments and debts which are more than 60 days overdue. The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represents the RMB’s maximum exposure to credit risk without taking account of the value of any collateral obtained. The following table discloses the ageing only of financial assets that are past due but not impaired:

($ thousand) Receivables Weighted Carrying Interest rate exposure Not past Past due but not impaired Impaired average amount due and not financial Fixed Variable Non- Less 1–3 3 Greater effective impaired assets interest interest interest than 1 months months than interest rate rate rate bearing month – 1 year 1 year % 2015 0.34 1,135 40 – 1,095 1,092 – 7 35 1 – 2014 7.08 385 252 – 133 318 – 24 43 – –

(c) Liquidity risk Liquidity risk is the risk that the RMB would be unable to meet its financial obligations as and when they fall due. The RMB operates under the Government fair payments policy of settling financial obligations within 30 days and in the event of a dispute, making payments within 30 days from the date of resolution. The RMB’s maximum exposure to liquidity risk is the carrying amounts of financial liabilities as disclosed in the face of the balance sheet. The RMB manages its liquidity risk by: —— close monitoring of its short-term and long-term borrowings by senior management, including monthly reviews on current and future borrowing levels and requirements; —— maintaining an adequate level of uncommitted funds that can be drawn at short notice to meet its short term obligations; —— holding investments and other contractual financial assets that are readily tradeable in the financial markets; —— careful maturity planning of its financial obligations based on forecasts of future cash flows; and —— a high credit rating for the State of Victoria (Moody’s Investor Services & Standard & Poor’s triple-A), which assists in accessing debt market at a lower interest rate. The RMB’s exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of risk. 64

Notes to the Financial Statements for the year ended 31 October 2015

Note 17: Financial instruments (continued) (c) Liquidity risk (continued) The following table discloses the contractual maturity analysis for the RMB’s contractual financial liabilities.

($ thousand) Weighted Carrying Interest rate exposure Nominal Maturity Dates average amount amount Fixed Variable Non- Less 1–3 3 1–5 More than effective interest interest interest than 1 months months years 5 years interest rate rate bearing month – 1 year rate 2015 % Payables – 928 – – 928 928 – 928 – – –

Financial Statements Borrowings 5.51 1,568 1,568 – – 1,568 – 56 298 812 402 2,496 1,568 – 928 2,496 – 984 298 812 402

2014 Payables – 1,220 – – 1,220 1,220 – 1,220 – – – Borrowings 5.60 1,862 1,862 – – 1,862 – 42 301 931 588 3,082 1,862 – 1,220 3,082 – 1,262 301 931 588

(d) Market risk The RMB’s exposure to market risk is primarily through interest rate risk which might arise primarily through the Board’s interest bearing liabilities. Minimisation of risk is achieved by mainly undertaking fixed rate or non-interest bearing financial instruments. (e) Interest rate risk Fair value interest rate risk is the risk that the fair value of a financial instrument will fluctuate because of changes in market interest rates. The RMB does not hold any interest bearing financial instruments that are measured at fair value, and therefore has no exposure to fair value interest rate risk. Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The RMB has minimal exposure to cash flow interest rate risks through its cash and deposits, term deposits and bank overdrafts that are at floating rate. The RMB manages this risk by mainly undertaking fixed rate or non interest bearing financial instruments with relatively even maturity profiles, with only insignificant amounts of financial instruments at floating rate. Management has concluded for cash at bank and bank overdraft, as financial assets that can be left at floating rate without necessarily exposing the RMB to significant risk. Management monitors movement in interest rates on a daily basis.

Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2015 65

Notes to the Financial Statements for the year ended 31 October 2015

Note 17: Financial instruments (continued) (e) Interest rate risk (continued) The RMB’s exposure to interest rate risk is set out in the following table:

($ thousand) Interest rate risk – 2% + 2%

2015 Carrying amount Net result Equity Net result Equity Financial assets: Cash and cash equivalents 4,493 (90) (90) 90 90 Receivables 1,135 (1) (1) 1 1 Financial liabilities: Payables 928 – – – – Borrowings 1,568 – – – – Total increase/(decrease) (91) (91) 91 91

($ thousand) Interest rate risk – 2% + 2%

2014 Carrying amount Net result Equity Net result Equity Financial assets: Cash and cash equivalents 5,123 (102) (102) 102 102 Receivables 385 (5) (5) 5 5 Financial liabilities: Payables 1,220 – – – – Borrowings 1,862 – – – – Total increase/(decrease) (107) (107) 107 107

Note 18: Cash flow information (a) Reconciliation of cash and cash equivalents

2015 2014 $‘000 $‘000

Cash at bank and on hand 275 1,061 Short-term Deposits 4,218 4,062 Balance as per cash flow statement 4,493 5,123 66

Notes to the Financial Statements for the year ended 31 October 2015

Note 18: Cash flow information (continued) (a) Reconciliation of cash and cash equivalents (continued) The RMB does not have access to a bank overdraft as at 31 October 2015. The weighted average interest rate applicable to cash at bank and on hand is 0.67% (2014: 0.23%). The short-term deposits are interest bearing floating rates between 2.01% and 2.20% (2014: 2.45% and 2.70%), with an average maturity of 27 days. Included in these cash balances are amounts set aside for use as the RMB’s Snow Drought Fund of $600,000 (2014: $600,000), Debt Repayment Fund of $350,000 (2014: $1,000,000) and Capital Improvement Fund of $1,000,000 (2014: $1,200,000). These funds have been established to comply with the Minister of Environment and Climate Change’s Alpine Reform Package program, the aim of which was to improve financial governance and thus the financial sustainability of the Alpine Resort Management Boards. The Snow Drought Fund may be drawn upon with Ministerial approval in the event of a poor snow season which leads to a liquidity shortage as a result of a reduction in visitor related revenue. Financial Statements The Debt Repayment Fund will be drawn upon to repay outstanding debt when required, in times of low cash resources and/or financial hardship. The purpose of the Capital Improvement Fund is to provide a pool of internally generated funds to finance asset replacement and capital works expenditure. (b) Reconciliation of net result for the period to net cash flows from operating activities

2015 2014 $‘000 $‘000 From Operating Activities to operating Profit 1,339 659 Operating Profit/(Loss) for the period Non-cash movements: Depreciation 1,808 1,680 Asset Received at Fair Value (90) – Contribution by Owners 79 – Movements included in investing and financing activities: Net (Profit)/Loss on Sale of Fixed Assets 19 11

Movements in assets and liabilities: Decrease/(Increase) in Trade and Other Debtors (706) 564 Decrease/(Increase) in Inventories (10) (6) Decrease/(Increase) in Other Current Assets 46 48 Increase/(Decrease) in Trade and Other Creditors Relating to (165) 81 Operating Activities Increase/(Decrease) in Current Provisions (13) 112 Increase/(Decrease) in Non-Current Provisions 60 19 Increase/(Decrease) in Unearned Revenue 48 (25) Net cash flows from/(used in) operating activities 2,415 3,143 Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2015 67

Notes to the Financial Statements for the year ended 31 October 2015

Note 19: Physical Asset revaluation surplus

2015 2014 $‘000 $‘000

Balance at beginning of the financial year 22,593 22,593 Revaluation of land, buildings and infrastructure – – Balance at the end of the financial year 22,593 22,593

Note 20: Responsible persons a) Board meetings The following table records the attendance of members at board meetings between 1 November 2014 and 31 October 2015: Total Meetings Meetings Board Members while in office Attended Jennifer Hutchison (Chairman) 10 9 Dean Belle (Deputy Chairman) 10 10 Dr Kate Brooks 10 9 Andrew Evans 10 8 Elaine Farrelly 10 8 John Lithgow 10 10 Bryce Moore 10 6 b) 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. The names of persons who were responsible persons at any time during the financial year were: —— Ryan Smith MLA, (Minister for Environment and Climate Change until 4 December 2014) —— Lisa Neville MLA, (Minister for Environment, Climate Change and Water from 4 December 2014) —— Jennifer Hutchison, (Chairman of RMB) —— Dean Belle, (Deputy Chairman of RMB) —— Dr Kate Brooks, (RMB Member) —— Andrew Evans, (RMB Member) —— Elaine Farrelly, (RMB Member) —— John Lithgow, (RMB Member) —— Bryce Moore, (RMB Member) —— John Huber, (Chief Executive Officer) 68

Notes to the Financial Statements for the year ended 31 October 2015

Note 20: Responsible Related party transactions persons (continued) Jennifer Hutchison is a member of b) Responsible persons the Alpine Resorts Coordinating (continued) Council (ARCC). Remuneration of Dean Belle is a Board member Responsible Persons of the Mansfield-Mount Buller Remuneration received, or due Regional Tourism Association and receivable from the RMB in (MMBRTA). Mr Belle is also connection with the management a proprietor of the Mansfield of the RMB for the financial period Regional Produce Store, a ended 31 October 2015 was supplier of the RMB. $309,081 (2014: $302,611). The Dr Kate Brooks has no related number of responsible persons Financial Statements interests in the operations of whose remuneration from the the RMB. RMB was within the specified bands is as follows: Andrew Evans is a member of the Alkira Ski Cub Inc, an $000’s 2015 2014 organisation which is a 1–10 6 6 leaseholder on Mount Buller. 11–20 1 1 Elaine Farrelly has no related 241–250 1 1 interests in the operations of the RMB. The relevant Minister’s remuneration is reported John Lithgow is a Board separately in the financial member of the Mount Buller statements of the Department Arts Association. of Premier and Cabinet. Bryce Moore is a shareholder in Retirement Benefits of the Merrijig Ski Club Co-operative Responsible Persons Ltd, an organisation which is a There were no retirement benefits leaseholder on Mount Buller. paid by the RMB in conjunction John Huber is Chairman of with the retirement of Responsible the Board of the Mansfield- Persons of the RMB during the Mount Buller Regional Tourism financial year. Association Ltd (MMBRTA), on the Loans Board of the North East Victoria As at 31 October 2015 there Tourism Board (NEVT) and the were no loans in existence that Alpine Resort Coordination Council have been made, guaranteed (ARCC) Co-operation Committee. or secured by the Board to a Mr Huber is a member of the Responsible Person of the RMB or Hume Regional Management a related party of a Responsible Forum Committee. Mr Huber Person. is also a director of the Mount Buller Arts Association. Mr Huber received no direct remuneration from these positions. Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2015 69

Notes to the Financial Statements for the year ended 31 October 2015

Note 20: Responsible persons (continued) The following additional transactions have been entered into with related party entities:

2015 2014 $‘000 $‘000 Ski Club of Victoria Revenue received (1)(2) – 77

Merrijig Ski Club Co-operative Ltd Revenue received (1) 30 29

Mansfield Mount Buller Regional Tourism Association Revenue received – 12 Other services paid (151) (151)

Alpine Resorts Coordinating Council Contributions paid (505) (433)

Alkira Ski Club Revenue received (1) 34 34

North East Victoria Tourism Board Contributions paid 48 47

Mount Buller Arts Association Other services paid (18) (–) (1) Revenue received includes site rents which are levied in accordance with the site lease contract and service charges using a formula that is equally applied to all sites, and payments for advertising in RMB collateral and the website as well as car park season passes and entry. (2) Entities are not related parties of the RMB in 2014-15.

Note 21: Remuneration of executives The number of executive officers, other than responsible persons, and their total remuneration during the reporting period are shown in the first two columns in the table below in their relevant income bands. The base remuneration of executive officers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, long service leave payments, allowances, vehicles, redundancy payments and retirement benefits. The total annualised equivalent provides a measure of full time equivalent executive officers over the reporting period. Several factors have affected total remuneration payable to executives over the year. A number of employment contracts were completed and renegotiated during the year and a number of executives received bonus payments during the year. These bonus payments depend on the terms of the individual employment contracts.

70

Notes to the Financial Statements for the year ended 31 October 2015

Note 21: Remuneration of executives (continued) The number of executive officers whose remuneration falls with in the specified bands above $100,000 is as follows:

Income band Total Remuneration Base Remuneration $000’s 2015 2014 2015 2014 No. No. No. No. 111 – 120 - - - 1 121 – 130 - - 3 2 131 – 140 - - 1 1 141 – 150 2 3 - -

Financial Statements 151 – 160 1 1 - - 161 – 170 2 1 - - Total number of executives 5 5 4 4 Total annualised employment 5 5 5 5 equivalents (AAE) 1 Total Amount 2 $767,846 $753,039 $581,355 $567,335

1 Annualised employee equivalent is based on working 38 hours per week over the reporting period. 2 Represents the total amount paid or payable to all executive officers, including those below the $100,000 remuneration level and therefore not included in the banding table above.

Note 22: Auditor’s Remuneration

2015 2014 $‘000 $‘000 Audit Services Victorian Auditor-General 21 20

Note 23: Subsequent events On Monday 16th November 2015 the RMB received notification from the Minister for Planning, The Hon Richard Wynne MP, that a Planning Permit for the Buller/Stirling Touring Link Rd had not been granted citing the need for further detailed investigations to be conducted to inform a new planning permit application. As at 31st October 2015 the RMB had incurred $536,121 for the Buller/Stirling Touring Link Rd which has been categorised as Capital Work in Progress at Cost. (Refer note 6). On 4th December 2015 the RMB endorsed the continuation of the required works for detailed investigations for a planning permit to be issued. The RMB believes it is likely that a planning permit in respect of this project will be forthcoming and accordingly it is appropriate to continue to carry forward the capital works in progress balance. No other matters or circumstances have arisen since the end of the reporting period which may significantly affect the operations of the RMB, the result of those operations, and the state of affairs of the RMB in future financial years. Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2015 71 72 Financial Statements Disclosure Index

Legislation Requirement Page ref. Accountable Officer’s declaration SD 4.2(j) Sign off requirements 29 Charter and purpose FRD 22F Objectives, functions, powers and duties 4 FRD 22F Manner of establishment and responsible Minister 4 FRD 22F Nature and range of services provided 12-14 Financial information FRD 22F Operational and budgetary objectives 5 FRD 22F Summary of the financial results 5 FRD 22F Major changes or factors affecting performance 26 FRD 22F Subsequent events 26 FRD 22F Significant changes in financial position during the year 25 Governance and organisational structure FRD 22F & SD2.2(f) Organisational structure 9 FRD 22F Occupational health and safety policy 22 FRD 22F Employment and conduct principles 22 FRD 29 & 22E Workforce Data disclosures 23 FRD21B Executive Officer disclosures 70 Other information FRD 10 Disclosure index IBC FRD 25 Victorian Industry Participation Policy disclosures 27 FRD 22F Details of consultancies in excess of $10 000 25 FRD 22F Details of consultancies under $10 000 25 FRD 22F Disclosure of government advertising expenditure 26 FRD 12A Disclosure of major contracts 26 FRD 22F Application and operation of Freedom of Information Act 1982 28 FRD 22F Compliance with Building Act 1993 14 FRD 22F Statement on National Competition Policy 27 FRD 22F Application and operation of Protected Disclosures Act 2012 28 FRD 22F Summary of environmental performance 15-17 FRD 22F Statement of availability of other information 28 MRO Compliance with DataVic access policy 28 SD 4.5.5 Risk management compliance attestation 26 PC 2012/02 Gifts, benefits and hospitality attestation 27 SD 4.2(g) General information requirements Entire document Legislation Alpine Resorts (Management) Act 1997 4 Financial Management Act 1994 29 Building Act 1993 14 Freedom of Information Act 1982 28 Protected Disclosures Act 2012 28 Victorian Industry Participation Policy Act 2003 27 Print and design FRD 30 Standard requirements for the design and print of annual reports Entire document Acronyms FRD – Financial Reporting Direction SD – Standing Direction PC – Premier’s Circular © State of Victoria, Mount Buller & Mount Stirling Alpine Resort Management Board 2016. This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968. Mount Buller & Mount Stirling Alpine Resort Management Board ABN 44 867 982 534 Alpine Central, Mount Buller Victoria 3723 Telephone: 03 5777 6077 Facsimile: 03 5777 6219 Email: [email protected]

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