Parks Annual Report 2011–2012

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Parks Victoria Annual Report 2011–2012 Page 3

Contents

Chief Executive’s message 4 Chairman’s message 4 Risk management attestation 5 About Parks Victoria 6 Year in review 9

Report of operations Environment, land and water 12 Visitors and community 21 Commercial services 31 Culture and heritage 33 Fire and emergency management 37 Organisational performance 41 Financial performance 44 People and workplace 46 Governance and compliance 50

Financial report Annual financial statements 53

Appendix Disclosure statement 97

Through their rich culture, Aboriginal Traditional Owners Copyright © Parks Victoria 2012 Cover image: Flood recovery team have been intrinsically connected to this continent – Level 10, 535 Bourke Street, , . at including the area now known as Victoria and the State’s ISSN 1448 – 9082 Left: parks and reserves – for tens of thousands of years. Parks Flood recovery ISSN 1448 – 9090 (Online) at You Yangs Victoria recognises this connection and acknowledges the Regional Park Traditional Owners of these areas. Published on www.parks.vic.gov.au

Parks Victoria manages many different sites such as piers, This publication is copyright. No part may be reproduced waterways, ports, bays, historic buildings, trails, urban by any process except in accordance with the provisions parks, small conservation reserves and large national of the Copyright Act 1968. parks. For the sake of brevity, these are collectively described in this document as ‘parks’ unless a specific type Photography credits: of site or park is mentioned. Front cover – David Richardson People seeking further information on Parks Victoria Inside front cover – Petri Miniotas or wishing to visit Parks Victoria parks should visit Inside back cover – Nathan McAvoy, www.parks.vic.gov.au or call 13 19 63. Macrophotographics.com Museum Victoria photographers – Patrick Honan, David Paul, Mark Norman, Ken Walker Other photographers – Graham Gales, Chris Smith Page 4 CEO and Chairman’s message

Chief Executive’s message

The 2011–12 year was a year of consolidation and recovery for Victoria’s parks and waterways.

The return to wetter conditions to welcome visitors with Fairley, and thank outgoing across the state limited bushfires disabilities into our parks. We board members for the work through summer and allowed the also commenced the planning and commitment they have continued regeneration of flora process to build a new chairlift shown through their terms. and fauna. at Arthurs Seat and began works on Parks Victoria’s largest capital Works focused on our weed and project, the renewal of services Dr Bill Jackson pest response, ongoing recovery to the Quarantine Station at Chief Executive from the 2010 floods and the . 30 June 2012 improvement of visitor facilities and services. Of particular note I would like to acknowledge the were the significant advances appointment of a new Chair made to Parks Victoria’s capacity for the organisation, Andrew

Chairman’s message

On behalf of the Parks Victoria Board, I am pleased to provide you with the Annual Report for Parks Victoria for the year 2011–2012.

It has been a period of transition by the organisation in managing Board and great support from for both the Board and for the these assets for future generations. our communities, I look forward organisation. Parks Victoria has to building on the achievements Throughout the Annual Report are emerged as a stronger institution of 2011–12 to create an even stories of achievement by our which is absolutely committed stronger and more resilient wonderful rangers and committed to excel in its role as manager of organisation. staff. Their work can be as diverse Victoria’s amazing parks network. as improving disability access Parks Victoria manages around at Wilsons Promontory, reducing Andrew Fairley 18% of our state. It is an estate pest animal impacts in the Alps, Chairman of vital environmental, economic creating fuel breaks across urban 30 June 2012 and social importance to all parks, or working with indigenous Victorians. It includes iconic communities along the Murray tourism assets, national parks, River to protect Red Gum forests. many regional assets and vital I want to acknowledge the work waterways. This Annual Report of the leadership and staff of provides a window into the breadth Parks Victoria during what has of Parks Victoria’s work and the been a difficult and challenging care taken and challenges faced year. With a new, revitalised Parks Victoria Annual Report 2011–2012 Page 5

Risk management attestation Page 6

About Parks Victoria

Parks Victoria is committed to protecting, improving and enhancing Victoria’s parks and waterways for current and future generations.

Who we are and Innovation, Department Vision and purpose of Primary Industries, catchment Parks Victoria delivers on-ground Parks Victoria is committed management authorities, services across the state to ensure to conserving the natural and water authorities and other that Victoria’s parks and waterways cultural values of the areas government agencies. In remain healthy and resilient. This we manage. recognition of Aboriginal includes conserving park and heritage and connection to Our vision is for an outstanding waterway ecosystems, protecting Country, we work in partnership park and waterway system cultural heritage, continuously with traditional owners in the protected and enhanced, developing opportunities for joint management of parks. At for people, forever. community involvement in parks a community level we work with and preparing, responding and Parks Victoria exists to: volunteer organisations, private recovering from fire, floods land owners, research institutes • Conserve, protect, and and other emergencies. and the broader community to enhance natural and With a comprehensive network deliver works on the ground and cultural values of protected areas stretching promote environmental values. • Provide quality experiences, from Red Gum forests of Parks Victoria is a statutory services and information the , through authority, established under to its customers the mountains of the Great the Parks Victoria Act 1998. Dividing Range to the marine • Provide excellence and The responsible Minister for environments of the Southern innovation in park the reporting period was the Ocean, Victoria’s parks are diverse management Hon Ryan Smith MP, Minister landscapes which continue • Contribute to the for Environment and to change and evolve. Parks environmental, social Climate Change. Victoria’s mission is to effectively and economic wellbeing manage these parks for all Under the Parks Victoria of Victorians. Victorians within the context Act 1998, Parks Victoria’s of the broader social, economic responsibilities are to provide and environmental landscape. services to the State and its agencies for the management We work with the Department of parks, reserves and other land of Sustainability and Environment under the control of the State. and the Department of Transport to deliver agreed services. We also work closely with Tourism Victoria, Department of Business Parks Victoria Annual Report 2011–2012 Page 7

What we manage • More than 2,700 natural • 516 viewing lookouts features and conservation Parks Victoria manages a diverse • 55 playgrounds reserves parks estate covering more than • 15,000 kilometres of roads four million hectares, or about • More than 11,000 formally 18 per cent, of Victoria. This area registered Aboriginal cultural • 1,267 pedestrian and includes national parks, marine heritage places vehicular bridges national parks and sanctuaries, • More than 2,500 non- • 3,700km of walking tracks urban parks, wilderness areas Indigenous historic places. and around 70 per cent of • 100 sporting facilities, Victoria’s coastline. We are the The parks and waterways attract e.g. golf courses, ovals local port manager for Port 85.9 million visits each year. Of and wickets these visits, 33.1 million are to Phillip Bay, and • 250 piers and jetties Port Campbell and the waterway national and state parks, 13.3 manager for the Yarra and million are to major metropolitan • 81 water access points, Maribyrnong rivers. parks and 39.5 million are to e.g. boat ramps, rowing piers and jetties around the bays. launches and slippings Parks Victoria’s management responsibilities include: Creating, managing and • 942 navigation aids. maintaining safe, relevant • 45 national parks and functional visitor sites Organisational structure • 25 state parks is a critical task for Parks Victoria. Parks Victoria’s Chief Executive Parks Victoria manages an asset • 13 marine national parks is appointed by the Board portfolio of more than 27,000 following consultation with • 11 marine sanctuaries assets. Assets managed include: the Minister. The Board reviews • 3 wilderness parks • 45 visitor centre buildings the performance of the Chief Executive on an annual basis. • 30 metropolitan parks • 687 shelters During the reporting period, • 60 other parks (including • 855 toilets Parks Victoria’s Chief Executive regional and reservoir parks) was Dr Bill Jackson.

Parks Victoria Board (Andrew Fairley, Chairman)

Audit Risk & Compliance Committee (Ken King, Committee Chair)

Bill Jackson Chief Executive

Office of the Chief Executive and Board Secretary

Margaret Gillespie Peter Brennan Ian Christie Ian Walker Chris Rose Brian Hood

Director Director General Manager General Manager General Manager General Manager Corporate Governance Corporate Strategy Visitors & Community Environment Regions Corporate Services Chief Legal Counsel & Heritage Page 8 ABOUT US

Parks Victoria’s Board the Victorian public service. He Pru Sanderson B.Arch (Hons), was formerly Executive Director, Grad Dip (equiv) ICCROM, The Board has responsibility for Land and Fire Management with Rome the governance of Parks Victoria. the Department of Sustainability Pru Sanderson is an architect On the recommendation of and Environment and is a current and property professional who the Minister, Board members Board Member of the Country specialises in creating new are appointed by the Governor Fire Authority, Metropolitan Fire benchmarks in urban planning in Council for a period not and Emergency Services, the and public infrastructure. She exceeding three years. Members Habitat Trust and the Natural has held senior roles in the are eligible for reappointment. Resources Conservation League. development of Melbourne’s The Board operates in accordance Museum and Federation with the provisions of the Parks Noel Harvey, OAM, MAICD Square. She is currently the Victoria Act 1998. Noel Harvey has extensive Global Business Leader, City experience in local government. The Board is responsible for Development at GHD. He is Deputy Chairman of directing and monitoring the Coliban Regional Water business of Parks Victoria and is Total meeting attendance Authority and is a partner in a accountable to the Minister for its in 2011–12: natural resource management overall performance. It delegates company specialising in carbon Andrew Fairley 9 of 9 day-to-day responsibility for and vegetation offsets. He was Clarice Ballenden 11 of 12 operations and administration awarded an Order of Australia in to the Chief Executive and Dennis Cavagna 12 of 12 January 2004 for services to Local executive team. Garry Phibbs 11 of 11 Government, Regional Victoria As at 30 June 2012, the Board and the Community of Kyneton. Ken King 11 of 12 members were: Noel Harvey 10 of 12 Dennis Cavagna B.Ec. FCA, Andrew EJ Fairley LLB, FAIC GAICD Pru Sanderson 5 of 6 (Chairman) Dennis Cavagna has extensive Board committees Andrew Fairley is a specialist financial and management The Audit, Risk and Compliance superannuation lawyer with a experience in publicly owned Committee (formerly the long association with ecotourism, utilities. He was Managing Audit and Risk Management conservation, parks and resort Director of South East Water for Committee) assists the Board management. He has been six years and has more than 24 to meet its financial reporting, a director of the world class years’ experience in the water accounting, risk management, five star resortT urtle Island in sector. He is currently a part-time operational control practices the Yasawas for over 20 years Commissioner of the Essential and compliance responsibilities. and is a past director of the Services Commission, a Board The Committee is supported by International Ecotourism Society Member of Urban senior managers and internal and Ecotourism Australia. He is Utilities and a member of the and external auditors. The the current Chairman of Zoos Risk and Audit Committee of Board has overall responsibility Victoria and the Consul General the Victorian Department of for risk management. Parks for Finland in Victoria. Sustainability and Environment. Victoria has a risk management Clarice Ballenden, BA (Hons) Garry Phibbs B.Ec. GAICD strategy in line with Australian M.Ed. Garry Phibbs is the Acting standards. The Committee met Clarice Ballenden is an executive Deputy Secretary, Commercial four times (including once under coach with a successful private Division, Department of Treasury its former name) in 2011–12. sector career as founder and and Finance. He is responsible Members were Ken King CEO of an educational publishing for providing high level and (Committee Chair), Andrew company. She has held senior innovative commercial, financial Fairley, Dennis Cavagna and Peter management positions in the and risk management advice Calder (external, independent public sector and has extensive to the Victorian Government. committee member). consulting experience both Garry has been with the Victorian The Governance and as a member and chair Treasury Department for just over Remuneration Committee of boards of management. twenty five years and in that time reviews and monitors key human has undertaken a variety of major Ken King, Dip. For., B.Sc. (Hons) resources policies and issues projects and senior management Ken King has had extensive and determines Parks Victoria’s roles. experience in public land and policy and practice for executive natural resource management in remuneration. The committee is supported by senior managers. Parks Victoria Annual Report 2011–2012 Page 9

The committee met twice in by senior managers. The related strategic, long term goals. 2011–12. Members were Pru Committee met three times in Program highlights are outlined Sanderson (Committee Chair), 2011–12. Members were Dennis below and described in detail Andrew Fairley, Clarice Ballenden, Cavagna (Committee Chair), in the Report of Operations Gary Phibbs and Noel Harvey. Andrew Fairley and Noel Harvey. (pages 12–52). The Ad-Hoc Budget The year in review Committee reviews and makes recommendations to the Board Parks Victoria’s 2011–12 Business in relation to the annual budget. and 2011–14 Corporate Plans The committee is supported set out five areas of work and six

Area of work and goal 2011–2012 Program highlights Page

Environment, land and water • Delivering extensive pest plant and pest animal 12 Goal: Protect and enhance environmental values for control programs current and future generations • Supporting the delivery of more than 190 billion litres 17 of environmental water • Collaborating with universities and government research institutions in the Research Partners Program with 18 25 new research projects and 55 continuing projects • Implementing monitoring programs at more than 19 100 terrestrial sites and 12 marine parks Visitors and community • Improving and developing facilities in parks across the 21 Goal: Encourage and enable people to connect with state and around the bay nature, their culture and each other • Continuing to improve access to parks and facilities for 27 persons with a disability • Completing over 20km of new tracks and trails 28 in national parks Commercial services • Ongoing planning for a contemporary state-of-the-art 31 Goal: Grow quality commercial services all-weather gondola at Arthurs Seat to support parks • Official opening of the State Coal Mine in Wonthaggi and 32 commencement of underground tours • Reopening of the Tidal River General Store after a six month 32 closure due to flood damage Cultural and heritage • Working with Traditional Owners to support co and 33 Goal: Protect culturally significant sites and help to joint management connect communities with their heritage and culture • Developing a new cultural heritage strategy 34 • Delivering heritage works at various sites around the state 35 • Celebrating the 150 year anniversary of the opening 35 of Anderson’s Mill Fire and emergency management • Delivering bushfire protection works on public land 37 Goal: Provide responsive and professional fire, flood on Melbourne’s urban-bushland interface and emergency management • Working with DSE to implement an extensive planned burn 38 program across the state

• Delivering the first year of flood recovery programs in areas 39 affected by the 2010–11 floods

Organisational performance • Undertaking detailed energy and water efficiency audits 43 Goal: operate an efficient, effective and sustainable at over 40 sites across the state park service • Improving reliability and availability of information 41 technology services • Increasing OHS awareness across the organisation 48 • Managing a skilled, diverse and flexible workplace 48 Page 10 Victoria’s parks and waterways Page 11 Page 12

Environment, land and water

Parks Victoria manages a diverse and representative network of parks, rich in endemic plants and animals, reflecting the layers of our collective history. Our parks contain Victoria’s most important ecosystems, landscapes, coastlines and open spaces. Parks Victoria’s primary responsibility is to ensure parks are healthy and resilient in a time of climate change. Our conservation programs help to reduce threats to parks and improve the health of the natural environment.

Goal Pest animal management of private land in the Victoria Valley as part of Pest animals in parks and reserves a complementary program Protect and enhance across the state are a major environmental values threat to native animals and • The Glenelg Ark, in south for current and future their habitat. Parks Victoria west Victoria, which covers works in partnership with other an area of 56,700 hectares generations agencies and the community to of Parks Victoria managed deliver programs that reduce pest land including Lower Glenelg animal populations and the harm National Park, Discovery they cause across the estate. Bay Coastal Park and Resources are directed toward Cobboboonee National Park eradication, containment or asset • The Southern Ark, in East protection with a focus on early , which includes intervention where possible. parks east of the Snowy River Work continued in 2011–12 • Otway Ark, in the south west to support delivery of the including the Great Otway Ark fox control programs. National Park. Approximately These programs include: 18,000 hectares were baited: • The Grampians Ark, which 53 bait stations within deployed over 15,000 baits a 6,000 hectare area around across 970 bait stations with the Anglesea Heath and 2,549 bait takes. Grampians 40 bait stations within Ark also supports the a 12,000 hectare area Pannyabyr Landcare group around Cape Otway to bait 30,000 hectares Parks Victoria Annual Report 2011–2012 Page 13

• The Bellarine Ark, which the people in Plenty Gorge Parklands and includes the National Park. Warrandyte State Park. (Western Shoreline) and Other pest animal programs Bellarine Peninsula Ramsar Pest plant management include: sites. Bellarine Ark is aimed at Invasive plant control and protecting both resident and • Eradication of an isolated management remains a priority. migratory shorebirds, water goat population in the Alpine Depending on the nature and fowl and other faunal species National Park using innovative extent of the threat, responses from fox predation. low impact shooting are implemented to either techniques As part of the State Government eradicate or contain invasive funded Alps Intensive Management • Delivery of Good Neighbour plants in order to protect natural program, Parks Victoria works Program pest control projects and cultural assets. cooperatively with community including a major rabbit Many key projects are organisations, Traditional Owners control effort on the public delivered collaboratively with and interstate agencies to and private land interface DSE, the Department of facilitate or deliver monitoring, at Primary Industries, catchment trapping and relocation programs • Ongoing fox control and management authorities and in an ongoing effort to manage monitoring to protect the community groups. The Federal feral horse populations. Partners Long-nosed Bandicoot and Government’s Caring for Country include the Alpine White-footed Dunnart in the initiative also provides financial Management Association, which Point Nepean National Park assistance. conducts an ongoing program in the East Alps that removed • In partnership with the Parks Victoria again participated 138 horses this year. Sporting Shooters Association in the State Government’s Good Australia, delivery of joint Neighbour Program, which In the , Parks control programs in the focuses on managing pest Victoria trapped and removed for plants and animals on public seven horses, which were pig control and Warby-Ovens land where it meets private granted to the Victorian Brumby National Park for goat control land. Cross-tenure pest plant Association for re-homing. control projects were delivered Monitoring of horse populations • Roll out of the Urban cooperatively with landowners, on the Bogong High Plains area Rabbit Control Initiative focusing on established weeds is undertaken regularly and with planning, cultural such as blackberry, bridal creeper, forms the basis of the ongoing heritage approvals and on- boneseed, English broom, alps-wide horse survey program. ground works undertaken in ragwort, Patterson’s curse Parks Victoria continues to jointly Maribyrnong Valley Parklands, and St John’s wort. manage Barmah horses with Woodlands Historic Park,

Image 1 & 2: Scientific Illustrator Mali Moir sketches barnacles at Picnic Point, Wilsons Promontory NP Page 14 Environment, Land and Water

Image 3: Jim Whelan, Parks Victoria, coordinates air operations for Prom Bioscan

Parks Victoria has continued germination on the flood plains and Arthurs Seat State Park. its successful weed spraying in wetter conditions. Through the cooperation of local programs across the Great Otway communities, this initiative has In partnership with the and Port Campbell national resulted in large scale reduction Catchment parks as part of the Otway in the density and distribution Management Authority and Eden project, as well as under of weeds, particularly invasive Caring for Country investors, the Protecting the Best weed woody species. Parks Victoria completed a three management initiative, covering year spraying program for the Parks Victoria has successfully several parks in East Gippsland Ramsar site, treated an infestation of the east of the Snowy River. In incorporating Corner Inlet noxious prickly pear, spread 2011–2012, these initiatives and Nooramunga Marine and along the Wimmera Heritage focused on new and emerging Coastal Parks. This project has River during the January 2011 species and protecting allowed spraying and checking floods.O ver 1000 infestations biodiversity asset areas. of all Spartina areas within the were targeted during the year The Glenelg Eden, which covers parks, covering over 50 hectares. and information on prickly an area of 29,700 hectares Aerial spraying using helicopters pear provided to neighbouring of Parks Victoria managed land achieved excellent results. landholders. including Lower Glenelg National Closer to Melbourne, In the Alps, pest plant control Park, Discovery Bay Coastal Park, approximately 1500 hectares works associated with the Mount Richmond National Park, of National Intensive Tyrendarra Flora Reserve and Park has been treated, targeting Management Program were Narrawong Flora Reserve has a broad range of woody completed. Species treated continued to deliver pest plant weeds that include English and include willow, broom and control. This DSE led-project aims cape ivy, holly, pittosporum, blackberry. A large Hawkweed to control high risk pest plants sycamore maple and karamu. eradication and surveillance in priority public land areas Part of the Urban Fringe Weed program was successfully in south west Victoria. Management Initiative, this rolled out on the Bogong High Partnerships with catchment project was delivered with Plains and an English broom management authorities DSE, local government and containment program was continued, despite being other partners. Projects are also delivered in the Eastern Alps. hampered by recurring flood underway in Werribee River In the Mallee, Parks Victoria events. Post-flood intervention Regional Park, Woodlands has focused has on new and has been focused on invasive Historic Park, Warrandyte emerging weeds such as Hudson plant control in the River Red Kinglake Nature Conservation pear, a species of Cylindropuntia Gum areas, due to increased Reserve, Cardinia Creek Parklands Parks Victoria Annual Report 2011–2012 Page 15

(spiny cactus) that has recently At Mount Eccles National Park, to acclimatise animals and been declared a weed of national 240 were treated with to increase numbers as part significance.A n experimental contraceptive implants and of the plan to re-establish control burning of Wards weed released back to the park. The a third sustainable population (Carrichtera annua), a rangeland population was surveyed and at Woodlands Historic Park. herb that has now become showed a slight decline to an At Buffalo Creek, widespread in the northwest of estimated 3,900 individuals. National Park, 260 Spotted the state, was also carried out. populations in suitable frogs were released as part habitat areas of the Great Otway of a joint initiative between DSE, Native animal management National Park have been monitored Parks Victoria and other agencies, Programs to manage the by contractors and the community, in an effort to re-establish impacts of kangaroo and koala while a maintenance program a population of this threatened populations continued in several continues at Snake Island. species that became extinct parks, where the long-term in the area almost 20 years ago. Foot surveys of kangaroos were impact on park values caused completed in the more densely Monitoring the level of breeding by excessive numbers has been wooded Mallee parks. Population activity of the Malleefowl (Leipoa clearly demonstrated. Programs densities remained low due ocellata) in partnership with the were undertaken in accordance to previous drought conditions Victorian Malleefowl Recovery with established ecological and management programs Group continued in 2011–12. rationales developed with the were not required in 2011–12. support of key stakeholders, However, it is expected that including independent technical This very successful partnership favourable conditions over advisory committees. has now extended over 10 years the last two years will result and a large amount of data on Parks Victoria delivered the in increased population densities annual koala management in the near future. nesting activity has been collected. program on French Island in partnership with Zoos Victoria and DSE. This year, 70 female and communities koalas were implanted with Parks Victoria works with DSE, contraceptives and released research partners and community back to French Island. A further organisations to protect 300 adult koalas were relocated threatened species. to Bunyip State Park. The aim of the program is to reduce In partnership with Conservation the impact on the eucalypts Volunteers Australia, captive bred in the park. Eastern Barred Bandicoots were released in

Image 4: Helena Gum Moth Opodiphthera helena Page 16 Environment, Land and Water

A national online database has demonstrates the potential for In Bunyip State Park, the been developed to allow a better captive released to integrate number of breeding pairs understanding of the national with wild populations. has increased from four to six status of this icon species pairs. 33 individuals, including In partnership with Birds of the Mallee. 18 captive-bred, immature Australia, the Great Otway Helmeted Honeyeaters were Planting of threatened plants National Park ocean beaches recorded in Bunyip State Park Caladenia pilotensis (Mount have been monitored for Hooded during autumn 2012. Pilot Spider Orchid), Pterostylis Plovers. A measure of protection sp. aff. boormanii (Beechworth for nesting chicks has been Rustyhood), Diuris dendrobioides provided by the installation After a period (Wedge Diuris) and Swainsona of warning signs in the area of approximately (Mountain Swainsons-pea) and public communication twelve years of no was undertaken under the of the restrictions now in place confirmed sighting Threatened Orchid Cultivation to protect the species. Monitoring or other evidence, Program in Chiltern-Mount with Birds Australia and the the presence of the Pilot National Park, Beechworth Friends of the Hooded Plover Historic Park and Natural Features was also conducted at the Tiger Quoll has Reserve near Wodonga. The Mornington Peninsula National been established project, delivered in conjunction Park ocean beaches. Increased in the Otways. with the DSE and the Royal informative and regulatory Botanic Gardens, with support signage and compliance patrols A scat located in the Greater from Friends of Chiltern-Mount focusing on dog walking Otway National Park was DNA Pilot National Park, has involved regulations during the entire tested by Melbourne University collecting seeds and fungi breeding season (Sept–March) and proved to belong to the from the threatened species in was implemented to assist elusive Tiger Quoll. the parks for germination and in Hooded Plover breeding In the Snowy River National propagation by the Royal Botanic success. Hooded Plover Park, Brush-tailed Rock-wallaby Gardens over a five year period. protection works in South populations have increased from Gippsland have also continued. Captive bred Regent Honeyeaters six individuals in 2002 to 20 in released in 2010 have been In Yellingbo Nature Conservation 2012. This includes nine breeding re-recorded in Chiltern-Mount Reserve, the total number of females, the most ever recorded Pilot National Park. As part of Helmeted Honeyeater breeding for this population. The long monitoring in 2011–12, a captive pairs increased to 19 in 2011–12 running predator control program bred was observed to have from 11–13 breeding pairs in the is considered to be a strong successfully bred with a wild previous season. Approximately supporting factor in the bird. This was one of the final 70 individuals were recorded at population increase. objectives of the project and Yellingbo during autumn 2012.

Image 5: Leioproctus sp. near Cotters Lake, Wilsons Promontory National Park Parks Victoria Annual Report 2011–2012 Page 17

In the Grampians National Corrections Victoria, VicHealth, to deliver programs to protect Park, monitoring activities and the Municipal Association and enhance Victoria’s marine land management programs of Victoria and the Port Phillip parks and waterways. underpinning the Brush-tailed and Westernport Catchment Environmental water was delivered Rock Wallaby reintroduction Management Authority to waterways, wetlands and continued. Higher than to deliver this important park floodplains across Victoria expected mortalities and lower restoration project. including where Parks Victoria than expected reproduction has an active management role. led the Victorian Brush-tailed River Red Gum parks These included the Barmah Rock Wallaby Recovery Team The Victorian Government has Forest (Barmah National Park), to re-evaluate strategies. As committed to managing the new Gunblower and Murray-Sunset a result, DSE has now brought River Red Gum parks and reserves national parks and the Lake forward the scheduled 2014–15 system through the Active Forest Powell and Carpul Wildlife Reintroduction Plan review. Health Program. The objectives Reserve. The watering was Four Leadbeater’s Possums have of the program are to plan coordinated by the Victorian been collected from Yellingbo and implement a program of Environmental Water Holder who Nature Conservation Reserve environmental works to improve works in partnership with waterway by Zoos Victoria to initiate forest health and to monitor managers. Parks Victoria works a captive-breeding program program effectiveness on an with waterway managers for the species at Healesville ongoing basis. to deliver environmental water Sanctuary. They are the first to those sites which it manages. To guide the program, a robust in a dedicated captive breeding Over 190 billion litres of water adaptive management strategy program aimed at preventing was provided. The program is being developed through the extinction of the genetically is integrated with river, wetland a cross border Adaptive distinct lowland population of and catchment management Management Scientific Leadbeater’s Possum at Yellingbo. activities to achieve the best Advisory Committee led by the ecological outcomes. NSW Office of Environment Habitat restoration and Heritage and DSE. An Parks Victoria delivered the Parks Victoria continued as an independent River Red Gum second year of works in active partner in Habitat 141, Technical Advisory Group also accordance with the three year a project which seeks to restore provided advice to Parks Victoria agreement with the Port Phillip links between major national on the management of the and Western Port Catchment parks and nature reserves over Active Forest Health Program Management Authority to a 700km stretch covering the which will assist in developing protect and improve the South Australian, New South an ecological management environmental values within Wales and Victorian border strategy for the new parks. the Western Port Catchment. region. In 2012, Habitat 141 In Barmah National Park, was formally recognised in the the experimental design and Draft National Wildlife Corridors Combined Parks Victoria and monitoring plan was finalised Plan, giving it priority for Federal management authority funding for an ecological thinning trial. Government investment. has doubled the delivery of the Although floods affected access, As part of the Victorian cross-border plot marking and environmental protection works Government’s Two Million pre-thinning monitoring of in the French Island National Park initiative, Parks Victoria environmental and cultural and Western Port Reserves. has formalised a partnership values commenced. Parks with DSE, who are leading Victoria produced and supplied this project. Between 2012 domestic firewood to the and 2014, 1.5 million trees community in accordance will be planted in parklands with policy guidelines. and other public open spaces in metropolitan Melbourne. Catchment and A further half a million trees water management will be planted along regional Parks Victoria works in waterways. Parks Victoria will partnership with other agencies, work closely with Conservation management authorities, local Volunteers Australia, Greening government and industry Australia, DSE, , Page 18 Environment, Land and Water

Image 6: parks, habitat mapping, threat Forest Raven Corvus tasmanicus identification, pest surveys and a range of community based monitoring programs. Throughout the year, Parks Victoria continued to demonstrate the value of collaboration as the foundation of its applied park management research program. Parks Victoria has now supported more than 300 individual applied park management research projects which have made a significant contribution to better park management and to science, higher education and broader environmental knowledge. In 2011–12, more than 25 projects were established to address a wide range Flood recovery North Central Catchment of park management issues. Management Authority Flood waters create ideal conditions One of the year’s most successful at Castlemaine Diggings for many pest plant and animal ventures was the Bioscan project National Heritage Park. species. A number of parks at Wilsons Promontory National This partnership doubled around the state carried out Park. This collaboration brought the resources for weed surveillance of invasive species together the expertise and control, while access to the and control activities to mitigate resources of both Parks Victoria North Central Catchment the impact of these species and Museum Victoria to produce Management Authority flood on natural values. a snapshot census of the fauna relief works crew helped in a range of terrestrial, freshwater A modelling and mapping complete revegetation and marine habitats following analysis of flood impact sites • Rabbit control in the Swan the flood of March 2011. was undertaken to identify Hill areas, where floods priority threatened species have stimulated grass and/or communities which were growth, making breeding Data collected will potentially placed at heightened conditions ideal enable assessment risk. This modelling is being used of the status of to better inform management • Boneseed control activity decisions on priority actions throughout the You Yangs, sensitive species, which are most likely to mitigate to prevent the weed becoming the impacts of recent any ongoing risk to susceptible established in new areas major weather events species or communities. of the park and the extent and Flood recovery program • Prickly Pear control programs impacts of introduced highlights include: on the Wimmera Heritage River pest animals. • In partnership with Deakin • Activity to control blackberry, University, the Phytophthora gorse and cape broom A ‘miniscan’ project was also cinnamomi surveillance in Creswick and Hepburn undertaken in partnership with program at Grampians Regional Parks. Museum Victoria to document and Wilsons Promontory the fauna of selected inter-tidal national parks, which aims Research and management and sub-tidal habitats of Bunurong to effectively manage effectiveness Marine National Park. Throughout Phytophthora through the state, marine Natural Parks Victoria has a comprehensive research and monitoring Values Reports have now been research and monitoring program completed for each of the five • The Loddon River Blackberry that includes research partner marine bioregions. control and revegetation projects, contracted periodic program partnership with monitoring of scheduled Parks Victoria Annual Report 2011–2012 Page 19

Other partners on various projects Monitoring of selected native Ecological fire throughout the year included fauna was undertaken in parks management Deakin University, the University across the state, including Parks Victoria supports ecologically of Melbourne, the University over-abundant koalas in Great sustainable fire regimes throughout of , the University Otway and Mount Eccles national the state. In 2011–12, progress of , Birdlife parks. Promising trials were was made towards determining Australia, the Australian completed using sophisticated appropriate long-term ecological Mathematical Sciences Institute, remote sensing software to fire regimes through the the Arthur Rylah Institute for detect two major weed species, development of landscape-scale Environmental Research and willow and English broom, fire ecology assessments and risk the Royal Botanic Gardens. in the Alpine National Park. assessments. This information As well as establishing new Monitoring projects were also is used throughout Victoria research projects, Parks Victoria undertaken in marine national as a component of integrated continued to work collaboratively parks and marine sanctuaries. fire management and to inform with its research partners Projects included sub-tidal reef fire operations plans. A large on more than 55 ongoing monitoring surveys at Wilsons number of parks across the projects that inform and Promontory and Point Addis state are now covered. improve park management. Marine National Park and Integrated fire management inter-tidal reef monitoring planning continued in the Otways, Monitoring in three marine national parks encompassing the Great Otway and seven marine sanctuaries Monitoring is a fundamental part National Park. The Otways are of good park management. The also the subject of a landscape- State of the Parks Signs of Healthy Parks program scale fire management modelling evaluation was established to provide case study being undertaken a reliable understanding of the The State of the Parks program as part of the DSE-led Future condition of natural values, assesses the effectiveness of Parks Fire Management Project. threats and the effectiveness Victoria’s park management A fire ecology strategy is currently of management and to provide activities. During 2011–12, being developed for the Greater early warning of new and assessments of over 300 parks Grampians landscape, including emerging problems. and reserves were reviewed and and applied to inform More than 100 terrestrial sites Black Range State Park, which management priorities. and a further 12 marine national will incorporate Parks Victoria’s parks and sanctuaries were the State of the Parks information conservation objectives and provide focus of monitoring projects from both Parks Victoria and the ecological basis for future fire undertaken as part of the Signs the Parks management planning. of Healthy Parks program. and Wildlife Service was A planned burning guide for Monitoring of terrestrial parks combined to inform a two day the 2006–07 Great Divide Fire, focused primarily on pest plants science and management including the Alpine National and animals and the condition workshop on management Park, has also been finalised and of native flora and fauna. effectiveness evaluation as part is now being used to inform fire Monitoring of Marine National of the program. management planning. Parks and sanctuaries focused Scientists, international on biodiversity of sub-tidal and management effectiveness Ongoing monitoring programs inter-tidal ecosystems. experts and Alpine park examining the effects of fire managers from Victoria, regimes on biodiversity are Vegetation was the target NSW and ACT attended. applied in parks and reserves of 40 projects, with pest plant across Victoria. Programs such monitoring undertaken at 10 A range of information products as ‘HawkEye’, which commenced sites and assessment of vegetation from the State of the Parks in 2010, continue to guide Parks condition, including assessment of program are now being finalised Victoria’s efforts to improve fire pest plant infestation, undertaken to inform government and the preparedness while reducing at 30 sites. Introduced animals community about the effectiveness impacts on biodiversity. Key including foxes, rabbits, cats, pigs, of park management. These areas for the HawkEye program goats, deer and horses were the will be made available on Parks include Mallee, Otways and East focus of monitoring at more than Victoria’s website in 2012–13. Gippsland parks and reserves. 30 sites around the state. Page 20 Environment, Land and Water

Marine management • provision of active support and faunal values as a basis for community participation for determining the grazing Marine management continues throughout the year including intensity required. to be delivered through small grants for marine an adaptive management focused projects and active Healthy Parks Healthy framework approach to reducing support and training for People Grants threats within marine protected marine volunteers in marine areas established under the Parks Victoria’s Healthy Parks monitoring. National Parks Act 1975. These Healthy People grants are include 13 Marine National Parks In the area of invasive species available to community groups and 11 Marine Sanctuaries, management, Parks Victoria staff who wish to undertake projects three Marine and Coastal Parks, actively participated in responses related to areas managed two Marine Parks, and one to several marine pest incursions by Parks Victoria. Groups work Marine Reserve. and a number of related pest in close conjunction with local incidents. Volunteer divers Parks Victoria staff to develop Since the release of the Victorian managed by Parks Victoria staff and implement projects. Auditor General’s Office report in Apollo Bay helped reduce Eighty-five projects were funded on marine management in the threat posed by invasive in 2011–12. They include: February 2011, a comprehensive marine algae to surrounding program for marine protected • ongoing volunteer managed park areas, while responses areas (MPAs) has been developed monitoring of Malleefowl to the appearance of Northern and delivered across the state. activity at Mallee national Pacific Seastar at San Remo and wilderness parks Key outcomes were achieved and Tidal River were managed by the Victorian Mallee in planning, compliance, by local staff. Fowl Recovery Group communications, emergency management and cultural Grazing management • rabbit management, track heritage. These include: grading and installation In the Mallee, the Recovering of a BBQ shelter at Snow • drafting of conservation Rangelands – Mallee Bounceback Drift visitor area in Wyperfeld outcomes for the whole MPA grazing control initiative continues National Park by the Harry system, with refinements to be supported by the DSE Weeds Ferguson Club for Wilsons Promontory and and Pests Program and Federal Yaringa Marine National Parks Government Caring for our • monitoring of the lyrebird Country funding. An independent population in Dandenong • development of clear assessment of woodland conditions Ranges National Park principles for MPA Compliance by the Arthur Rylah Institute for by the Sherbrooke Lyrebird in partnership with the Environmental Research in 2012 Survey Group Department of Primary found that the standard of grazing Industries, outlining roles • protecting nest sites and management was high and and functions of each agency chicks of Hooded Plovers that this was the best strategy by fencing nests, building • significant increases in the to restore the depleted chick shelters, temporary nest delivery of marine discovery non-eucalpyt woodlands. update signage, interpretative and learning programs at key Agreements are under negotiation panels, brochures and banners visitor locations throughout with licensees in River Red Gum for installation at warden sites the summer, with Parks Victoria parks between Wodonga and in Mornington Peninsula staff actively supported to erect publically National Park by the Friends by specially recruited marine funded fences and off-stream of the Hooded Plover. ranger interns water systems. Approximately • a review of maritime cultural 10km of boundaries have been assets within and adjacent surveyed and 9.2km of fences to protected areas have already been erected, with a further 3.6km committed. • updates of the Marine Operation Manual and Safety Ecological grazing at Terrick and Environment Management Terrick National Park is now Plans for local ports managed under a new strategic operational plan for northern plains grasslands, which defines specific objectives for floral Page 21

Visitors and community

Parks and waterways play an important role in enhancing and improving quality of life in both urban and regional areas. Access to open spaces and the natural environment can significantly influence levels of physical activity. As the social and economic challenges created by increasing levels of lifestyle related illnesses continue to rise, creating connections between parks and people is an important part of the solution. The connection between community health and wellbeing and a resilient park system is expressed by Parks Victoria as ‘Healthy Parks Healthy People’.

Goal Park use planning has also commenced for Stage 2 of the Grampians Peak Trail Parks Victoria has an ongoing in collaboration with Grampians Encourage and enable people commitment to planning and Tourism and local councils and to connect with nature, their implementing park use strategies Tourism Victoria. culture and each other that deliver maximum benefits to visitors to our parks while A partnership was established remaining fully integrated with Corangamite Shire to prepare with our environmental and a strategic master plan for the conservation goals. Shipwreck Coast from Princetown to Boat Bay, as well as interface In our national parks, Parks plans with the townships Victoria completed or progressed of Princetown, Port Campbell a number of important master and Peterborough and up plans. Significant progress was to six site plans to address made on a master plan for Lower areas of high risk. Parks Victoria Ferntree Gully Picnic Area in the is also working in association with Dandenong Ranges National Moyne Shire and Tourism Victoria Park, in conjunction with the on the master plan. Kokoda Memorial project at the 1,000 Steps. Planning Page 22 VISITORs AND COMMUNITY

Image 7: Discover Parks visit to by Wingate Ave Community Centre.

Urban and peri-urban parks • Preparation of a cultural The Metropolitan Trail heritage management plan Network Planning for metropolitan and vegetation assessments parks continued throughout Fourteen projects progressed for the proposed Capital the year, including: or were completed with partners City Trail Bridge over the during the year. These included • Progressing strategic downstream of six major construction projects: management plans for Collingwood Children’s Farm. Werribee River Park, • New sections of the Kororoit In peri-urban areas, Parks Victoria Toolern Creek Park, Creek trail, the Hallam Valley finalised theS trategic Directions Parklands, trail and the Bay trail Plan for Barwon River Parklands, Dandenong Ranges Gardens in collaboration with six agencies. • A connection to the Main Yarra and Yarra Bend Park Over $1.163 million in identified Trail at Roseneath Street and • Finalising the Strategic projects within the Barwon River a bridge across the Maroondah Management Plan for Parkland corridor were either Highway on the Lilydale Mullum Mullum Park and commenced or completed during to Warburton Rail Trail completing a draft of the the year. A master plan for • A new underpass Trails Master Plan Toorourrong Reservoir Park at Sayers Road Bridge was also finalised. • Working with DSE and the on the Skeleton Creek Friends of Frankston Reservoir During the year, open space trail, linking existing trails. to finalise the master plan planning was transferred to DSE, A further eight projects for Frankston Reservoir including Linking People and progressed at planning stage, Spaces. Operational Park Panning • Consulting with the community while the Bay Trail from Heads remains with Parks Victoria. and key stakeholders on the Street to Elwood Sailing Club development of a draft received an upgrade. A canoe Preliminary Concept Plan for trail along the Yarra River through integrating an Impressionist was also Lab Art Gallery and Education completed during the year. Centre, a tree obstacle course The Metropolitan Trail Network and a wetland in Yarra fund grants program ceased Flats Park in 2011 and overall responsibility for the Metropolitan Trail Network transferred to DSE in 2012. Parks Victoria Annual Report 2011–2012 Page 23

Visitor experience and The Visitor Number Monitor along the northern shore recreation management is a biennial survey covering of Phillip Island and between a sample of mostly Victorians Mount Martha and Portsea The Community Perception but also interstate and overseas on the Mornington Peninsula. Monitor is undertaken visitors. The statewide monitor These works clearly delineate on alternate years and gathers was introduced in 2001 to where the new rules and information from the community monitor the number of visits zones apply. about how they rate Parks to national and other parks and Victoria’s management of the In March 2012, Parks Victoria to report on change and trends estate based on a number provided significant resources in visitation numbers. The survey of performance indicators. to support the successful was not conducted in 2011–12 inter-agency marine emergency but will be conducted again All community response to contain and manage in 2012–13. The most recent the risks to the environment and indicators increased monitor, in 2010–11, recorded port users caused by the Lady marginally in 2012, 85.95 million annual visits to the Cheryl, a commercial fishing with three of the four Parks Victoria estate, comprising vessel that struck rocks and sank to 46.42 million visits to parks indicators exceeding near Port Phillip Heads Marine and 39.53 million visits to piers. corporate targets. National Park. Environmental monitoring one month later Parks Victoria also conducts Maritime services identified no adverse impact a biennial onsite satisfaction Parks Victoria is responsible on the environment from survey at 51 sites within 33 parks for the management of the the incident. and at 5 piers across the state. recreational use of Port Philip Park or pier satisfaction data is and Western Port, including weighted by visitation to produce the management of piers and a corresponding index. The Parks jetties and the placement and Satisfaction Index (SI) in 2011–12 maintenance of recreational was 70, which is marginally lower boating signs in accordance than the 2009–10 SI of 71. This with the Marine Act. slight decrease was due to minor declines in four urban parks and In the past year, significant three protected area parks. The progress was made on the Piers SI improved by seven points implementation of the boating from 56 to 63, mainly driven zone review for Port Phillip and by improved satisfaction Western Port. New navigation at St Kilda pier. aids have now been installed

Indicator 2009–10 % 2010–11 % 2011–12 %

Community satisfaction with Parks Victoria as an Target 91–96 91–96 91–96 ‘efficient’ or ‘very efficient’ manager (biennial measure) Actual 89 n/a 91

Community satisfaction rating of ‘good’ or ‘very good’ Target 85–90 85–90 75–80 with the management of marine national parks and marine sanctuaries (biennial measure) Actual 86 n/a 88

Community satisfaction rating of ‘good’ or ‘very good’ Target 88–93 88–93 85–90 with the management of major metropolitan parks, bays and waterways (biennial measure) Actual 88 n/a 89

Percentage of Victorians who have visited a Parks Target 75–80 75–80 75–80 Victoria managed park over the past 12 months (biennial measure) Actual 78 n/a 76

Visitor satisfaction: Target 70–75 70–75 60–65 Parks (Weighted Index 1–100) Actual 70.7 n/a 69.8

Visitor satisfaction: Target 60–65 60–65 50–55 Piers (Weighted Index 1–100) Actual 55.8 n/a 63.4

**n/a=not measured Page 24 VISITORs AND COMMUNITY

Water based events One of the highlights of the year A variety of seasonal holiday was the launch of Enviro Activ, programs and themed Discovery Parks Victoria issued permits an online learning resource activities in parks were also held for over 70 on-water events website which provides students in various locations, including throughout 2011–12. with access to high quality Ranger-guided walks and talks Highlights included: video footage, images and through historic buildings, caves • Offshore Power Boat races in information about Victoria’s and other enclosed reserves such Corio Bay and Williamstown wetlands environments. as Werribee Park, Buchan Caves Students are able to use this and Point Nepean. • New Years Eve fireworks resource to make their own in Docklands and various Professional development sessions wildlife documentaries about sites around the bays were delivered to teachers in the importance of the wetlands the Dandenong Ranges National • Moomba Water Festival habitat, the threats facing them Park to provide support resources and the actions that can be taken • Australian Dragon Boat to assist teachers with the delivery to help protect them. The Enviro Championships in Docklands of effective programs relating to Activ resource has been well national parks. Curriculum based • Australian Boat Race on the received by educators, students school education programs were Yarra River. and stakeholders in the land also delivered to more than 20,500 management sector. Education and students and their teachers interpretation Parks Victoria’s Junior Ranger at education centres in the program continued in 2011–12, Dandenong Ranges and Wilsons Parks Victoria’s education and with interpretive Junior Ranger Promontory national parks. interpretation services are activities held in 24 parks during Parks Victoria also took part in the provided to encourage visitation, school holidays, 13 more parks Department of Education and manage risks in parks, assist than in 2010–11. Targeted Early Childhood Development’s visitors to understand more to primary school aged children, Education Week by providing free about parks and biodiversity these activities attracted 4,941 activities for government schools. and develop stronger connections participants, representing Over 340 students took part with their environment. Over a 159% increase in participant in a range of activities held 115,000 park visitors participated numbers compared to the at Point Nepean and Dandenong in face-to-face education and previous year. interpretation programs during Ranges national parks. the year. “Meeting a real life ranger was great. They felt privileged and felt they’d had a real adventure somewhere special.” Discover Parks program leader

(Left to right) Image 8 &9: Discover Parks, Yarra Bend Park, Wingate Ave Community Centre participants Parks Victoria Annual Report 2011–2012 Page 25

Healthy Parks Just discovering a new area, meeting new people Healthy People “was memorable. I felt good at the end of the walk. The Healthy Parks Healthy People That was a lovely day.” (HPHP) Active in Parks initiative Green Walks participant delivers programs to improve the physical and mental wellbeing to Country, culminating At the other end of the spectrum, of communities. The programs in a community performance. a partnership with the Youth focus on improving access and These activities grew out of Parks Affairs Council of Victoria was increasing visitation to parks Victoria’s strong partnership established to explore and develop by groups and individuals that with Multicultural Arts Victoria, innovative and sustainable are underrepresented in parks, Shepparton Secondary and initiatives that will increase such as the socioeconomically Yorta Yorta Nation. the engagement, volunteer disadvantaged, culturally and opportunities and visitation linguistically diverse communities, In a partnership project with of parks by young people. people with a disability and Blind Sports Victoria, volunteers the aged. lead walks in the park for the Active in Parks blind or vision impaired. Green In 2011–12, more than 4,225 Walks, a partnership between the Active in Parks is an innovative people across a range of different Heart Foundation and Bushwalking program targeting health and metropolitan and regional areas Victoria has provided opportunities community agencies to connect participated in HPHP activities. for over 200 people to participate people to parks and open spaces Discover Parks Grants were in 28 separate group walks across to improve national health provided to over 20 small eight parks in the greater and wellbeing. community organisations, Melbourne area. enabling more that 700 people Parks Victoria, together with from culturally and linguistically Engaging younger and older People and Parks Foundation has diverse communities, seniors members of the community has developed the program as a pilot and people with a disability been the focus of two new in . Supported by the to participate in recreational community partnerships. State Government and the and social activities in 19 parks. Re-activate in Parks was piloted Medibank Private Community in Karkarook and Braeside Parks, Fund, the program established At the Dharnya Centre in Barmah where recreational activities a new and innovative delivery National Park, indigenous young for older adults were delivered model for ‘at risk’ community people and young people from in partnership with the Council through links with Medical culturally and linguistically diverse of the Aged Victoria. practitioners, philanthropy, parks backgrounds participated in two and community organisations events where music was used in the region. to share stories and connection Page 26 VISITORs AND COMMUNITY

The program has attracted over Volunteers • A Marine Friends Forum was 1200 participants and has strong held on 12 and 13 May 2012 In 2011–12, protected industrial stakeholder support. It was recently at Barwon Heads, attracting action halted the recording awarded the 2012 Excellence marine focused friends of volunteer hours in some parks, in Parks (Social) Award at groups and volunteers from resulting in a drop in recorded the 5th International Parks around the state. Participants hours, compared to 2010–11. Forum Conference. shared information, networked The 149,521.45 volunteer hours and brainstormed future recorded across 129 parks and Arts and cultural diversity directions for marine reserves in 2011–12 translates focused volunteering. Arts and cultural diversity to 20,315.41 volunteer days initiatives included a series of (based on a 7.36 hour day), Conservation Volunteers events and programs supported equivalent to an additional Australia and delivered in parks. Programs 84 full time employees (based use unique and innovative methods on 48 weeks) to Parks Victoria. The Conservation Volunteers to promote the existence and Australia (CVA) lead volunteer Across Victoria, 61.5 percent value of parks and the benefits program, Parks Champions, of volunteer hours focused and opportunities for being active was conducted in 10 locations on natural values management, in parks. They also provide diverse resulting in over 3,000 36.4 percent focused on and creative ways of engaging volunteer hours. visitor services and 2.1 percent with communities, with specific on cultural values. Friends Further assistance through emphasis on those from culturally groups and community groups external stakeholders and and linguistically diverse and made up 74.1 per cent of all funding opportunities resulted indigenous backgrounds. volunteer hours. Individuals also in over 350 project days with The Bilingual Guides program contributed greatly, comprising more than 14,000 additional continued in 2011–12, targeting 13.1 percent of all volunteer volunteer hours. Through the community leaders from hours. The remaining 12.8 percent government funded National culturally and linguistically was made up of pay-for-service Green Jobs Corps program, diverse backgrounds to become arrangements, schools/tertiary, CVA provided Parks Victoria volunteer guides and advocates corporate groups, apprentice with an additional 450 days for the parks and nature within training and international of assistance, contributing a their community. The program volunteers. further 15,000 of volunteer hours. also supports and continues The following volunteering At Woodlands Historic Park, to develop alumni from achievements are particularly a full time CVA Project Officer past programs. noteworthy: facilitated 61 days of volunteer teams, contributing to 3,720 • The Friends of Maribyrnong volunteer hours of practical Valley Parklands and First time I’ve done something activities to complete a predator “ The Friends of Wright like this. I think it’s terrific…Even exclusion fence, which is now Forest both celebrated by myself I would continue going ready for the late 2012 release the outstanding milestone to Parks. of the Eastern Barred Bandicoot. ” of 25 years of volunteering Re-activate in Parks participant with Parks Victoria Kookaburra Awards • The Friends of the State Coal The biannual Parks Victoria Mine doubled their volunteer Kookaburra Awards recognise contribution on last year’s and honour outstanding efforts, clocking up 20,207 contributions of volunteers hours through assisting to Victoria’s parks system. The in mine maintenance, seventh award event was held visitor service and in November 2011 in Geelong. grounds maintenance Donna Petrovich, Parliamentary • Volunteer groups at Werribee Secretary for Sustainability and Park contributed 8,985 hours Environment and Noel Harvey, of garden maintenance then Chair of Parks Victoria’s and interpretation Board presented Awards to the following recipients: Parks Victoria Annual Report 2011–2012 Page 27

• Environmental Award – • Multicultural Award – Croajingalong national parks. Awarded to Tree Project Awarded to Joseph Youhana More than 160 hosts volunteered for the propagation of for his role in leading tours as part of the Four Wheel indigenous seedlings and for people with a diverse Drive Camp Host program restoration of bushland at range of backgrounds at 13 parks including the Alpine, Yarra Bend Park, replacing to educate them on the Great Otway and Grampians removed exotic vegetation parks and the environment national parks. and for providing inclusive • Environmental Award – interpretation to culturally Disability access Awarded to Friends of and linguistically diverse for Park’s Victoria’s partnership with communities a range of successful projects the disability sector continues to and programs at Baw Baw • Lifetime Achievement Award grow and strengthen. A range of National Park, with a focus – Awarded to Donna Collidge disability initiatives have created on eradication of serious in recognition of her long new partnerships, developed pest plants term participation in a range programs, improved information of projects to improve the and provided equipment to • Environmental Award habitat and amenities improve park accessibility for (Runner Up) – at Kiata Camping Ground people with a disability and Awarded to Tracey Skinner and surrounding areas their carers. for her work on walking track erosion through stabilization • Lifetime Achievement Award works at - (Runner Up) – Awarded My wellbeing in terms of getting Tooan State Park to Stephen Murphy in “out there has been profoundly recognition of his long • Community Partnership affected. term participation in the Award – Awarded to Friends ” protection, conservation All-terrain chair user of the Great South West Walk and interpretation of the for a range of development, Inverleigh Flora and Work has involved the maintenance and marketing Fauna Reserve. introduction of specialist works along the Great South wheelchairs and specialist West Walk Campground Host program equipment at Cape Conran • Community Partnership Coastal Park, Grampians National The Campground Host program Award (Runner Up) – Park, Point Nepean National was delivered for the eleventh Awarded to Friends of Parks and Wilsons Promontory year with 35 volunteer Kurth Kiln for conservation, National Park. By providing campground hosts participating preservation and educational access to improved facilities at nine parks including Lake activities at Kurth Kiln and all terrain wheelchairs, Eildon, Mount Buffalo and Regional Park

(Left to right) Image 11: Peter Van Benthem and son Ronin in Beach access wheelchair, Wilsons Promontory National Park

Image 12: David Stratton with partner Ros Hart in all terrain wheelchair, Mt Bishop, Wilsons Promontory National Park Page 28 VISITORs AND COMMUNITY

these parks are able to offer an common activity, with bus tours, • Progress of planning for Stage exceptional experience for visitors bird watching, canoeing/kayaking One works on the Grampians with special physical needs. and coastal walking making Peaks Trail and the development up the remainder. of a master plan for the In recognition of its efforts ongoing implementation to improve health and Parks Victoria is committed of the walk wellbeing outcomes for people to developing opportunities with disabilities, Parks Victoria to promote LTOs and the value • Completion of track and received the Health and they provide to the parks and campsite upgrade works Wellbeing award at the 2011 the State. Compliance activities on the Falls Creek to Hotham National Disability Awards. were conducted in partnership Alpine crossing to improve with regional staff and external the experience for walkers Tourism partnerships agencies, primarily at Grants on the existing track. Further Picnic Ground and Twelve Apostles analysis on options to develop Parks Victoria issues licences visitor sites. These activities resulted the walk to another stage on behalf of DSE to Licensed in twelve new operators. is also planned Tour Operators (LTOs) to conduct tours and activities in state • Finalisation of a Concept Walks and trails forests and other areas managed Plan and Business Plan for by Parks Victoria. A number Parks Victoria is dedicated to the Costal Wilderness walk. of tour operator reforms took enhancing and improving our These plans provide direction effect from 1 July 2011, which existing iconic walks, while on the future development included the introduction of investigating and developing of this project and further a ten year licence. In the first year new opportunities to expand analysis on options to develop of implementation, Parks Victoria the existing trail network. the project is scheduled approved seven ten year licences, Highlights for 2011–12 include: • Construction of a new Snowy representing approximately two River Estuary Walk within percent of the total figure of 306. • Completion of approximately the Marlo Coastal Reserve, 15km of new dedicated In 2011–12, a total of $140,799 as part of the East Gippsland walking track on the was generated from LTOs in Short Walks project Great Ocean Walk and the application and use fees. Tour installation of a new viewing operators provided more than platform at the Twelve 5,300 recreational opportunities Apostles end of the walk. for almost 96,000 people during These works complete the year. Roughly a third of a $1.3 million project participants were adults and funded by Regional two-thirds were children. Development Victoria Bushwalking remains the most

Image 13: 12 Apostles, Great Ocean Walk Parks Victoria Annual Report 2011–2012 Page 29

• Completion of the Old Growth In partnership with Yorta Yorta Major asset repair and renewals Walking Track, a new 2.5km Nation Aboriginal Corporation, during 2011–12 include: short walk on the edge Parks Victoria delivered a two • Repair and refurbishment of the Errinundra National day product audit at Barmah works at the Twelve Apostles Park near Bendoc. This track National Park to undertake Visitor Centre, one of the top takes visitors into spectacular cultural research monitoring. three nature-based tourism and significant old growth Representatives from Tourism destinations in Australia forest and features two very Victoria, DSE, Conservation large Errinundra Shining Volunteers Australia, Yorta Yorta • Completion of visitor safety Gums, viewed through and Parks Victoria attended. and asset protection works tree ferns from a 250m at Buchan Caves, with the elevated walkway Asset management installation of new stainless steel hand rails, improved • Completion of the Park’s Victoria’s asset portfolio stairways, electrical wiring O’Shannassy Aqueduct consists of over 25,000 terrestrial and lighting. Buchan Caves’ Stage 2 link track in the and maritime assets. Asset sewage treatment plant was Yarra Ranges National Park. management continues to be also renewed and landscaped a significant challenge for Parks Ecotourism Australia Victoria as a large proportion of • Reconstruction of the Buchan these assets are ageing and in Caves Entry Arch. Previously Two more Parks Victoria attractions urgent need of repair. This places in poor condition, this have now achieved Ecotourism a significant burden on resources. heritage-listed structure has Australia’s Advanced Ecotourism been upgraded with Heritage Certification. Buchan Caves Asset management activities Victoria approval. It now Reserve and Mount Buffalo in 2011–12 were targeted conforms to normal highway National Park join the Great Ocean at meeting risk management clearance and can be used Walk in achieving the highest level objectives and maintaining by all coaches of certification granted under critical services in high priority Ecotourism Australia’s ECO parks and waterways. Assets • Replacement of Riley Creek Certification program. on land managed by Parks Bridge on the Wonnangatta Victoria as Committee of Track in the Alpine National In partnership with Ecotourism Management are recognised Park, one of Victoria’s six Australia, Parks Victoria delivered in the financial statements of iconic 4WD adventures the ECO Certification and Eco this report. Assets management Guide Certification Subsidy • Full compliance for visitor by Parks Victoria on behalf of the Programs to Victorian LTOs. use at Wonthaggi State Coal Crown are recognised by DSE The subsidies were developed to Mine after a major long-term in their financial statements. increase operator professionalism upgrade. The underground and the number of ECO Certified visitor experience has been Improving and licensed tour operators in Victoria. authorised to ‘Amusement developing facilities 14 licensed tour operators Ride’ standard by completed the subsidy programs The 2011–12 Major Works Program WorkSafe Victoria in 2011–12. comprised approximately 300 • Replacement of eight toilets projects ranging in size from as part of a state wide pit Cultural partnerships $10,000 to $8 million across the toilet replacement program, state. A large portion of the budget In September 2011, Parks Victoria upgrading non-compliant was made up of funding for works partnered with the facilities to new fully compliant at Point Nepean National Park. Tribe Land and Compensation composting, pump-out or Flood Recovery works to reinstate Cultural Heritage Council and the fly-out systems.A new toilet assets damaged in the extensive Koorie Heritage Trust to deliver facility was also constructed flooding of 2010 and early 2011 Aboriginal Cross Cultural at Ferntree Gully Picnic Area, was another major area of Awareness Training to 18 Victorian replacing two old and expenditure (see Flood recovery). Licensed Tour Operators. unserviceable facilities. This inaugural training program aimed to raise the awareness among tourism operators of Victorian Aboriginal people’s culture, history and connection to Country. Page 30 VISITORs AND COMMUNITY

New asset works Improving and maintaining 200m long concrete section in 2011–12 include: bays and waterways of pier for use by vehicles servicing commercial fisheries • Completion of a new Bird Parks Victoria’s role as marine and the pilot boat. A new Feeding area at Grants Picnic manager is to preserve the low landing has also Ground in the Dandenong natural conservation values been constructed Ranges National Park, funded of the bays while integrating the by a Commonwealth and built and natural environments. • Reopening of the Local Victorian Government Central to that role is the Port of Port Campbell initiative to encourage tourists maintenance and improvement following the installation back to regions economically of marine assets for commercial of a new, higher capacity affected by the February and recreational users. jetty crane. The jetty was 2009 bushfires also strengthened to Works carried out in 2011–12 accommodate the crane. • Progression of the $1 million to improve the infrastructure This upgrade is greatly project to construct a new of the bays include: assisting the commercial Kokoda Memorial Wall and • Completion of a $3.5 million fishing industry and charter the associated upgrading reconstruction of the central boat operators. A security of Lyrebird Track and section of the Mornington upgrade of the Port Campbell the Thousand Steps Pier. The new section is Jetty has also been completed at Dandenong Ranges supported by 70 new steel National Park • Reopening of the Swan Bay piles and has a reinforced Jetty after reconstruction • Installation of a solar power concrete deck capped was completed. Fishing system at the existing toilet with timber. It is designed rod holders were installed block at Fort Nepean, to withstand storms and following vandalism to Point Nepean National Park, to last for at least 50 years decking material to power the sound and • Repair and extension of the light interpretive installation • Progression of Hastings Port Campbell seawall. These within the fort’s Pier and floating pontoon $2 million improvements will underground tunnels refurbishment works totalling protect foreshore buildings $940 thousand. Progress has • Progression of the Devilbend and amenities at Port been impacted by weather Natural Features Reserve Campbell beach conditions and completion is visitor facilities works. This • A $2 million upgrade of the scheduled for late July 2012. project is scheduled to be Flinders Pier. The upgrade completed in 2012–13. separates pedestrian and vehicle access by providing a new 4.5m wide,

Image 14: Grant’s Picnic Ground, Dandenong Ranges National Park Page 31

Commercial services

Parks Victoria’s commercial operations focus on enhancing and improving the range of activities and attractions available to visitors to parks, increasing visitation where possible and generating financial returns where appropriate.

Goal Arthurs Seat chairlift Tree based ecotourism Legislation was passed in March A proposed Guided Canopy Tour Growing quality commercial 2012 which, once commenced, in the Toolangi State Forest has services to support parks will allow the Minister for received community support Environment and Climate and an Environmental Risk Change to grant a lease term Assessment is now underway. of up to 50 years over the A Tree Based Adventure Course Arthurs Seat Chairlift lease area. at Yarra Flats Park was one The preferred tenderer is in the of three projects proposed process of developing a concept in a Yarra Flats Preliminary proposal for a contemporary Concept Plan that went out state-of-the-art all-weather for public consultation in May. gondola at Arthurs Seat. The proposed facility allows participants to slide down flying foxes, move from tree to tree on suspension bridges and enjoy exciting challenges high above the ground. The proposed facility will broaden the experience of the park for a greater range of visitors. Page 32 COMMERCIAL SERVICES

Mount Buffalo chalet day long weekend with a total of in increases in gross profit 5,000 cave tour visitors. A record and average transaction-spend Parks Victoria has completed 1,907 people visited the caves this year. a detailed review of the on Easter Saturday, breaking last Mount Buffalo Community The Twelve Apostles Kiosk enjoyed year’s record of 1,850. Enterprise (MBCE) proposal for an increase in business in 2012 a redevelopment of the Mount following a review of the site Merchandise Buffalo Chalet. Following operations and products for sale. a decision not to pursue the Parks Victoria and the Wurundjeri This has resulted in a higher proposal, which required Tribe Council launched ‘ visitor conversion rate and substantial public funding, the Creations’ at the National average transaction-spend. State Government allocated Rhododendron Gardens in The Kiosk has targeted internal $500,000 toward a development March 2012. Attended by the and external site marketing plan that will outline the future Minister for Aboriginal Affairs, and product range to better use of the Chalet. An interagency Jeanette Powell MP, the launch meet visitor expectations and working group led by DSE has marked the beginning of an levels of service offered. been established to prepare historic commercial partnership a Chalet redevelopment plan. between the two organisations. Leases and licences ‘Bunjil Creations’ is a range of A total of 80 agreements Tours and attractions craft, jewellery and art created including leases, licences and by members of the Wurundjeri Underground tours commenced various consents were finalised Tribe during ‘wellbeing day’ and at the State Coal Mine in in 2011–12, with ongoing inspired by Country, ancestors, Wonthaggi following the official management support provided myths and stories from the opening in February 2012. This for more than 450 lease and Wurundjeri community. event marked the completion licence agreements across of a two-stage $3 million the state. Retail operations redevelopment of the site. A local business is now operating a café The Tidal River General Store in the new Visitor Centre and reopened in late September a lease to the Wonthaggi Theatrical after a six month closure due Group has been finalised for the to significant flood damage construction of a purpose-built to stock, fittings and fixtures rehearsal centre. sustained in March 2011. All repairs and restocking was Buchan Caves has experienced completed in time for the peak one of its busiest years. The trading period. Ongoing business site recorded its highest ever improvements have resulted visitation over the Easter four

Image 15: Wonthaggi State Coal Mine – new underground people mover. Page 33

Culture and heritage

The ecological landscape reflects and embodies a rich cultural landscape. A spiritual or emotional connection with this cultural heritage has a significant community benefit. Parks Victoria manages places with a rich Aboriginal history that continue to form part of Aboriginal living culture. We also manage places with a more recent European history. Our approach is integrated and inclusive and reflects the shared nature of Victoria’s heritage.

Goal Caring for Country Traditional owner partnerships Protect culturally significant June 2012 marked the 20 year anniversary of the landmark Mabo Parks Victoria actively assists sites and help to connect decision on Native Title in Australia. Traditional Owners, DSE, the communities with their As custodian of Victoria’s parks Department of Justice and Native heritage and culture and reserves, this was a significant Title Services Victoria to progress anniversary for Parks Victoria the development of joint and as we continue to build strong co-management arrangements working relationships with in Victoria. Victorian Traditional Owners. At Wilsons Promontory Parks Victoria is privileged to work National Park, a Memorandum with many Victorian Traditional of Understanding has been Owner organisations to manage developed between Parks their Country on behalf of the Victoria and the Traditional community. Some of these Owners of Yiruk and Wamoon, organisations are currently the Boon Wurrung, Bunurung in native title mediation. Parks and Gunaikurnai Peoples. Victoria will continue to play Archaeological assessment and a critical role in working with related permits were supported Victoria’s First People to care by the Traditional Owners and for Country together. members of each Traditional Owner organisation met regularly for onsite inspections and cultural heritage assessments, including camping on Country on the remote east coast. A number of new cultural places were also recorded. Page 34 CULTURE AND HERITAGE

Boonwurrung, Mount Eccles National Park. Cultural heritage plans Mount Eccles is Victoria’s first Bunurung and A new Parks Victoria Cultural co-managed national park and Gunaikurnai Peoples Heritage Strategy now been is central to the history of the drafted to bring Aboriginal and were involved in the Gunditjmara people. Museum Victoria post-Settlement heritage under and Parks Victoria In the metropolitan area, park one umbrella, consolidating entry signs have been upgraded and enhancing the approach to collaboration at several locations to acknowledge heritage planning, conservation ‘Bioscan’, sharing Victorian Traditional Owner and interpretation. The Strategy knowledge on flora, organisations, the Wurundjeri is scheduled to be completed fauna, cultural and Wada Wurrung Peoples. early in 2012–13. The Wurundjeri People recently heritage and geology. The Traditional launched an extensive range Owner Reference Group and of traditional design jewellery, In the north east of the state, East Gippsland Traditional Owner which is now on display and implementation of the Red Gum Group recently merged into available for purchase at the Parks Cultural Heritage Strategy a combined group. While the Rhododendron Gardens has commenced with a series of group will cover a significantly in Olinda. innovative projects. These include larger landscape, the combined detailed histories of key parks, In consultation with the resources will ensure that tourism planning with Traditional Gunaikurnai Land and Waters demands on Traditional Owner Owners, archaeological modelling Aboriginal Corporation, two representatives are reduced and and oral history research. The interpretive signs have been resources available for meetings strategy will continue to be developed to educate visitors are maximised. Parks Victoria rolled out in 2012–13 and will about the rich Aboriginal cultural facilitates these gatherings to include project planning with heritage of the seek guidance from Traditional the participation of Traditional Valley in the Alpine National Park. Owners on park management Owner organisations. Parks The signs are installed at either issues and to discuss potential Victoria continues to support the end of the Wellington River employment and business development of the Yorta Yorta Walking Track and highlight the opportunities on Parks Victoria Caring for Country Ranger Team. need to respect and protect managed land. Lake Tali Karng. As one of the Victorian Following the completion of Government representatives In the south western part of the a Cultural Heritage Management on the Council, Parks state, significant progress has Plan for the King River Hut site Victoria continues to provide been made on the development in the Alpine National Park, support to the Council as it of the SW Management planning significantS ite Protection works develops its capacity as a project, in partnership with the have been delivered to ensure strategic body overseeing Gunditjmara People. visitor movement at the site is

(Left to right) Image 16: Lee Joachim from Yorta Yorta Nation and Parks Victoria staff during the Naturewise and Yorta Yorta product Audit at Barmah National Park.

Image 17: Mardi Featherston admiring a large scar tree during the Naturewise and Yorta Yorta product audit at Barmah National Park. Parks Victoria Annual Report 2011–2012 Page 35

Image 18: The 150th Anniversary of the opening of Anderson’s Mill was celebrated at the Mill Festival in April 2012.

managed to support the ongoing two community events, including restoration projects in Walhalla protection of one of the richest a food, wine and jazz festival. and Baw Baw National Park known Aboriginal archaeological In preparation for the anniversary, during November and December sites in Victoria. external stonework restoration 2011. The volunteers contributed was completed and the bluestone to a major program of works To coincide with World mill, engine house and office within the Walhalla Historic Environment Day were repaired. There works were Township which included and World Oceans made possible by the assistance repairs to the historic cemetery, of $29,000 funding from the reconstruction and repair of the Day in early June, Commonwealth National Historic tram pathway and maintenance Parks Victoria held a Sites grant program. and repairs to the historic Conservation Forum Walhalla Fire Station. A number of works and for staff at Point investigations were undertaken On the Bogong High Plains, flood Nepean National Park. at Point Nepean. These included recovery works were completed stabilisation of historic features on the Wallace Heritage Trail, A Draft for Consultation of the in the range area of the former reinstating flood damaged trail Parks Victoria Traditional owner Officer Cadet School including and improving other sections. Partnership Strategy was released rifle butts, targets and grenade New $350,000 facilities, at the forum. throwing range foxholes, including a lookout platform, construction of a screen observation deck and a series In the south of the Sate, the to protect the remnants of an of interpretive panels, were Wurundjeri, Bunurong and historic 1840s lime kiln on the completed, further enhancing the Boonwurrung Peoples were Point Nepean beach and location walking experience in the Alpine engaged in cultural heritage and documentation of buried National Park. In conjunction assessments at various locations rails of the historic tramway with the Victorian High Country as part of the Melbourne system at the Quarantine Station. Huts Association (VHCHA), Parks Bushfire Protection program. A play interpreting the history Victoria coordinated a series of the Quarantine Station, of working bee weekends Living heritage In Sickness and in Health, was at Wallace’s Hut. Restoration A number of significant living presented by the Woodlands works included replacement of heritage works commenced Players volunteers as part rotten wall plates, slabs and posts in 2011–12 and several important of the National Trust Heritage and a rebuild of the chimney. projects were completed. Festival Program. At Moroka Hut, volunteers undertook a series of works In late March and early April Conservation Volunteers, including a rebuild of the chimney. 2012, the 150th anniversary in collaboration with TRUenergy of the opening of Anderson’s Mill and Parks Victoria, undertook at Smeaton was celebrated with historical and environmental Page 36 CULTURE AND HERITAGE

Image 19: Victorian High Country Hut Association members completed an extensive restoration project on Wallace’s Hut in June 2012.

The VHCHA were also involved Flood recovery with rebuilding works at the and heritage historic Weston Hut and the King Following the severe floods River Hut in the Alpine National of 2010–11, cultural and heritage Park, both of which were surveys to assess flood impacts destroyed by fire. Volunteers also to indigenous and European undertook restoration and repair heritage sites were undertaken works to Fry’s Hut in the Howqua at numerous parks across the Hills Historic Area. state. Affected parks included On our bays and waterways, Grampians National Park, Parks Victoria, in partnership with Wilsons Promontory National Gippsland Ports, commenced a Park, Barmah Nation Park and restoration project of the historic Maribyrnong Valley Parklands. jib crane, part of the New Works As a result, a range of cultural historic complex on the western and heritage recovery projects side of the entrance at Lakes have been identified for Entrance in the implementation in the Coastal Park. At Port Phillip, coming year. extensive works were undertaken These assessments have also by Parks Victoria at Queenscliff resulted in the identification Pier, the final stage in a $2.15 of several previously unknown million rebuild of the much heritage places, particularly loved historic site. The $206,000 at Wilsons Promontory and upgrade was directed at essential Maribyrnong Valley Parklands. maintenance works to repair Each assessment has involved aging and damaged timbers detailed consultation with underneath the waiting shed. Traditional Owners and other key stakeholder groups. Page 37

Fire and emergency management

Parks Victoria is actively involved in fire and emergency planning, prevention, response and recovery. This now represents a major part of our work as climate change impacts on the nature and severity of emergency events. Parks Victoria continues to provide lead agency support as necessary for emergencies such as storms, oil spills and search and rescue.

Goal Bushfire readiness Melbourne Bushfire and response Protection Program Providing responsive and Mild weather in the 2011–12 fire The Melbourne Bushfire professional fire, flood and season resulted in a significantly Protection Program (MBPP) was emergency management below average fire events for the established in 2009 to improve second consecutive year. Only nine fire protection in Melbourne’s fire weather warnings were issued urban areas. The program by the Bureau of Meteorology the is designed to reduce fire risk entire season, the lowest since to communities closest to our 1995–96. Parks Victoria and DSE urban parks and open spaces. responded to 383 bushfires that Parks Victoria is leading this burnt a total of 4,692 hectares program on behalf of the of public land. Of these, 87 fires Victorian Government. were on Parks Victoria managed In the past 12 months, 20 km of land, burning approximately new fuel breaks were constructed 842 hectares. Parks Victoria and in the Melbourne Region. Another DSE also supported the Country 56 km of existing fuel breaks were Fire Authority in response to upgraded. A further 11 km 85 bushfires on private land. of roads and tracks were In addition to the 715 Parks upgraded to improve access Victoria staff who have a role for fire management.T he total in bushfires readiness and operational cost for these response, Parks Victoria employed works was $2.6 million. 180 seasonal fire fighters who Other major achievements of the completed bushfire preparedness program have been in the area works including slashing, clearing information technology. Spatial roads and tracks and preparing information on fire history and infrastructure for the fire season. planned fire protection works in Page 38 FIRE AND EMERGENCY MANAGEMENT

Melbourne’s metropolitan area assign all parks with a relative was based on a 100,000 tonne is now available on the Parks bushfire risk rating to assist with oil tanker breaching her cargo Victoria website. The webpage is resource prioritisation. and releasing significant amounts more detailed than DSE’s FirePlan of crude oil into Westernport. site and provides improved user Planned burning accessibility alongside interactive Floods Parks Victoria works with DSE opportunities using social media. in the preparation, planning and Two significant flood events this Internally, more streamlined and execution of planned burning year affected Parks Victoria informed planning is now possible as part of the department’s managed land. In February 2012, through the mapping of the extensive program on public land. Parks Victoria staff supported SES location and condition of over This year, 48 planned burns were in response to floods in the North 1000 km of fire access tracks and completed across the Melbourne East of the state. Staff participated fuel breaks, as well as hundreds Bushfire Protection Program area in community protection and of gates, culverts, water points with a total 600 hectares treated. cleanup operations, particularly and signs. This information is around Nathalia. Damage to park Over the entire Parks Victoria available to staff on an internal infrastructure, roads and tracks managed estate, 288 burns were web-mapping service. MBPP was was significant in some places completed with a treatment also a significant contributor and and many parks and reserves area of approximately 72,000 driver in the migration of GIS in the North East were closed. hectares. This figure represents platforms from MapInfo to Some closures are ongoing. around a third of the total DSE ArcGIS, bringing Parks Victoria program area. In June 2012, heavy rain and wind into line with other emergency caused significant damage to many response agencies. Other emergencies parks and reserves in Gippsland. management support Parks Victoria staff once again State-of-the-art supported SES in responding Parks Victoria has been working modelling is being to the emergency, including with the Department of Transport used by MBPP to help facilitating the reopening to identify Parks Victoria’s ability of major roads and highways identify and treat to support the Department where trees and landslips had bushfire risk. in marine emergency response. forced road closures. In June 2012, Parks Victoria Preliminary work in the staff participated in Exercise Dandenong Ranges has revealed Seadragon, a National marine that targeted fuel management pollution exercise, as part of on public land can potentially a Victorian-led multi-government reduce the risk of probable home and multi-agency Incident loss by at least 20 per cent. Management Team. The scenario The system has been used to

(Left to right) Image 20: New boardwalk at Little Oberon Bay, Wilsons Promontory National Park

Image 21: New footbridge at Tipperary Springs, Hepburn Regional Park Parks Victoria Annual Report 2011–2012 Page 39

Emergency management around Melbourne’s urban hard hit by the heavy rainfall and planning bushland and to gauge subsequent flooding. awareness and acceptance of Parks Victoria’s Electrical Line Projects entered the Flood Recovery fire preparedness activities within Clearance Management Plan program as a list of 2,886 these parks. Most respondents identifies parks within a ‘declared damaged assets. These were (88 per cent) were aware area’ where public land managers assessed and packaged into that bushfire management are responsible for maintaining 110 projects to be delivered over activities were happening tree clearance. In 2011–12, the two years to 30 June 2013. around Melbourne’s parks, 57 parks required inspection and Of these 110 projects, works with 64 per cent reporting 19 parks required tree cutting commenced on 83 projects, no concerns relating to planned works in order to achieve 32 of which have now burning. Approximately half compliance with Electricity been completed. of all respondents recalled receiving Safety Regulations. information in the last six months The focus in the past year has been To enhance the broader fuel break which they were most likely on reopening high visitation areas network, MBPP collaborated with to attribute to Parks Victoria. as a priority and addressing Cardinia, Mornington Peninsula damaged areas that pose an MBPP has led the establishment and Nillumbik Shires to undertake unacceptable risk to public safety. of a multi-agency community cross-tenure works in Shire engagement group involving Region-led walking track repairs managed land adjoining parks. Parks Victoria, DSE, the Country and reopens continued to improve Parks Victoria currently chairs Fire Authority, Metropolitan the visitor experience at Wilsons each of the three metropolitan Fire and Emergency Services Promontory National Park, Regional Integrated Fire Board, Victoria Police, SES, local including reopening of Tidal River Management Planning government authorities and and many of the most popular Committees and is well Melbourne Water. The aim is short walks in time for the represented on key municipal to improve outcomes by engaging September 2011 school holidays. committees. For the past two the community as a group rather The Wilsons Promontory Drinking years, MBPP has funded a full than as individual agencies. Water project was also completed, time DSE planner to support mitigating risk to the water fire management planning. Flood recovery supply in future flood events.

Fire and emergency When a series of eight storms Also open for the school holidays community engagement swept Victoria between September were several popular visitor sites 2010 and March 2011, the at the Grampians National Park, In 2012, a social research project damage to Victoria’s parks and including the Pinnacle and Sundial was commissioned to better reserves was unprecedented Lookouts, the walk to the base understand community in scale and severity. Roads and of Mackenzie Falls and Jimmy perceptions of bushfire risk walking tracks were particularly Creek Campground. Walking

Image 22: Shooting a Flood Recovery video at Lysterfield Park Page 40 FIRE AND EMERGENCY MANAGEMENT

(Left to right) Images 23 & 24: Section 26 of Mt Oberon Rd, Wilsons Promontory National Park – before and after flood recovery works

tracks at Mount Abrupt were baskets lined with waterproof Bushfire recovery reconstructed and opened membranes. Permanent works The vast majority of fire recovery in time for Easter 2012. Grampians are scheduled for 2013–14 works from the February staff completed road repairs to bring the dam into line with 2009 fires were completed across the park, restoring access national guidelines. by 30 June 2011. Planning for for visitors, contractors and Flood-damaged footbridges and redevelopment of key sites essential services to eight percent walking tracks at Beechworth at and of the network, ahead of large and in the Warby-Ovens National Toorourrong Reservoir Park has scale repairs. Park have also been repaired, also been finalised. Excellent progress was made while extensive road and track Lansdcape and preliminary works at Mount Oberon, where repairs have been completed at Jehosophat Gully have been the Telegraph Saddle Track in Alpine National Park. completed and toilet and shelter and Mount Oberon Road In our urban parks, works were works are underway. Works reconstructions are nearing completed to restore safe access, have also begun at Masons Falls completion. Many major damage substantially increase flow capacity with completion contingent on sites have now been repaired and extend asset life of the weather conditions over winter. with overall completion expected Tikalara Causeway, connecting in September 2012. Fire recovery works at the and Mullum Cambarville in the Yarra Ranges At Lysterfield Lake Park, Parks Mullum Linear Trail through National Park are now concluded Victoria worked with Lysterfield Tikalara Park. Upgrade works with the construction of a new District Trail Riders and Trailmix performed well in heavy rain Picnic Rotunda in the Cambarville to repair and rebuild 27km of on 25 May 2012. Picnic Ground complementing dedicated mountain bike trails, redevelopment of the walking including the Commonwealth trails and lookouts in the Games Mountain Bike Trail. All precinct. Works at the Howqua mountain bike trails have now Valley horse riding trail have also been reopened to the public, been completed. as have walking tracks in Lysterfield Lake Park and the adjacent . In Creswick Regional Park, the height of the dam wall at St Georges Lake has been raised to mitigate further flooding risk. A temporary structure has been created using gabion Page 41

Organisational performance

Parks Victoria plans for, monitors, delivers and reviews its operations to ensure effective on-ground services across the state. Parks Victoria works accountably within given resources and continues to drive business improvement through sound governance, risk management and business system development.

Goal Corporate services management practices with the new international Corporate services support standard (ISO 31000) Operate an efficient, effective the delivery of works and and sustainable park service programs in parks. Delivery and • improved reliability and improvements to corporate availability of information services in 2011–12 included: technology services to Parks Victoria through a move • ongoing support of over to a hosted data centre 120 work locations including the delivery of new amenity • increased security access buildings at five locations and measures to the financial four office relocations and people system • supply of vehicles, plant and • improved provision of trip equipment to allow park planning and navigation management and fire and functionality to visitors emergency management and through integrating Parks response Victoria’s mapping data with the public website • greater collaboration with partner agencies and suppliers • corporate and in the provision of facilities business planning and equipment • delivery of Human resources, • provision of legal services, financial services andIT corporate governance advice services with improved and internal and external audit reporting for better informed programs with further work operational decision making. to align risk management framework and risk Page 42 ORGANISATIONAL PERFORMANCE

Corporate performance measures

Result against target Indicator 07–08 08–09 09–10 10–11 11–12 Missed Met Exceeded

Area treated in parks to eradicate Target 500 1,000 900 900 1100 or control Pest Plants and Animals ✓ (ha 000s) Actual 1,003 995 1176 1231 964

National Park Act parks schedules 2, Target 50 50 50 2A, 2B, 3, 4, 7 & 8 with approved nm nm ✓ management plans less than 15 years old (per cent) Actual 85 70 65

Victorians who have visited a Parks Target 75–78 75–78 75–80 75–80 75–80 Victoria managed park over the ✓ past 12 months (per cent) (Biennial measure) Actual 76.1 n/a 78 78 76

Parks Victoria personnel required Target 850 850 850 850 850 to assist in wildfire preparedness ✓ and suppression (number) Actual 850 844 850 850 895

Proportion of Indigenous staff Target 7 7 7–9 7–9 10 (per cent) ✓ Actual 6 5.5 7.2 7.8 6.1

Incident Rate (OHS Incidents/staff) Target 16 16 16 16 25 (per cent) ✓ Actual 14.5 15 15.4 14.4 36

Percentage of bay assets with Target 80–85 70–75 70–75 70–75 70–75 greater than five years life ✓ expectancy (per cent) Actual 79 74 76 78 78

Compliance with Model of Cover Target 100 100 100 100 100 requirements (per cent) ✓ Actual 100 100 100 100 100

*nm = new measure **n/a = not available (biennial measure)

Output targets specified in the State Budget and the results achieved for 2011–12 are provided in the table below.

Unit of 2009–10 2010–11 2011–12 2011–12 Measure measure Actual Actual Target Actual T otal area managed by Parks Victoria Actual 4,040 4,084 4084 4,086 Total number of visits (visit days) Number (million) 88.5 85.9 88–92 85.9 Park assets rated in average Percentage 78 85 75–80 79.6 to excellent condition Bays assets rated in average Percentage 66 64 65–70 65 to excellent condition Number of hectares treated Hectares (000s) N/A 1,200 1,100 964 to minimise the impact of pest plants, pest animals and overabundant native animals in parks managed by Parks Victoria Parks Victoria Annual Report 2011–2012 Page 43

Major changes or factors The target measure of park lighting and air conditioning affecting performance assets for 2011–12 exceeded improvements, renewable the performance of past years’ energy installations (wind and Due to protected industrial action measures due to completed flood solar), more efficient pumps and by a number of Parks Victoria recovery works impacting the additional water tanks. Staff through Enterprise Bargaining overall condition of the portfolio. Agreement negotiations, the Sustainability highlights for number of hectares treated 2011–12 include: Subsequent events to minimise the impact of • Installation of solar panels pest plants, pest animals and There were no events occurring and a battery bank at overabundant native animals in after the balance date which may Fort Nepean, resulting in parks managed by Parks Victoria significantly affect Parks Victoria’s a dramatic fall in running was not able to be accurately operations in subsequent hours of the diesel generator. recorded. The figures provided reporting periods. By using the sun to power represent data captured by visitor facilities at Fort those members of staff not Operational environmental Nepean, Parks Victoria has participating in industrial action. performance improved the quality of the It is expected that, had the full Parks Victoria’s program of visitor experience by reducing suite of data been available for operational environmental noise, saving money and 2011–12, the total area of land sustainability during 2011–12 protecting the environment treated by Parks Victoria would has been focused on identifying • Making use of the abundant be closer to the 2010–11 actual energy and water efficiency sunlight at Hattah Kulkyne figure of 1.2 million hectares. opportunities. and Rainbow, with the The number of visits to Parks installation of solar hot water Victoria’s managed estate is Parks Victoria has systems to provide hot water measured biannually. The progressively been for staff accommodation 2010–11 figure has been improving its ability provided and the total will • As part of the Victorian again be measured in 2012–13. to efficiently capture Government’s Greener Therefore, while the figure and report on energy/ Government Buildings provided is representative of the water consumption Program, undertaking number of parks visits, it is not and greenhouse gas detailed energy and water the actual figure. It is expected emissions. efficiency audits at over that the 2012–13 survey will 40 sites across the state. This work has identified demonstrate that the number This work has involved extensive improvements which could of park visits has in fact increased investigation of available potentially reduce Parks in 2011–12 for a number energy and water efficiency Victoria’s energy and water of socioeconomic reasons. technologies, staff consultation costs by approximately and verification of energy 28% and greenhouse and water consumption data. gas emissions by 20%. Proposed future works include

Electricity and water consumption

2010–11 2011–12 Per cent change

Electricity (megawatts) 4,626 4,806 4% Water (megalitres) 190 194 2% Page 44

Financial performance

Five year financial summary

($thousand) 2012 2011 2010 2009 2008

Revenue from Government 122,055 110,455 92,089 83,067 66,920 Total income from transactions 251,999 219,000 199,551 184,535 166,964 Total expenses from transactions 249,743 230,040 204,476 184,807 170,134 Net result from transactions 2,256 (11,040) (4,925) (273) (2,923) Net result for the period (803) (12,361) (7,726) (1,452) (3,170) Net cash flow from operating activities 12,367 9,468 35,859 17,926 31,677 Total assets 1,851,560 1,830,609 1,569,068 1,283,020 1,265,084 Total liabilities 149,585 138,799 128,066 87,494 72,844

Overview conditions, caused expenditure The net deficit after depreciation on tied projects to be less than of $0.803 million compares Parks Victoria managed to achieve planned, although many favourably to the previous year’s an operating performance that of those projects will carry deficit of $12.36 million and the was improved on prior years and over into 2012–13. budgeted deficit of $5.4 million. better than budget targets. The results were primarily a reflection The net surplus before depreciation This result represents a substantially of maintaining a disciplined for 2011–12 was $9.5 million, improved outcome and was approach to cost management $8.3 million above budget and driven by commercial activities and improved effectiveness in $15.3 million better than the and efficiencies in managing commercial operations. However, previous year’s $5.8 million deficit operating costs. savings realised through attrition before depreciation. However, and other short term means after excluding one-off items to reduce labour costs placed and non-cash adjustments, the pressure on Parks Victoria’s underlying net surplus before service delivery. depreciation was $3.9 million in 2011–12. Non-operating Total revenue was $252.0 million, revenues and the net result both some $10.6 million below budget, included non-cash gifted assets entirely due to tied revenue being valued at $3.4 million from the $20.2 million under budget. Grand Prix Corporation. A range of factors outside Parks Victoria’s control, including approval processes and weather Parks Victoria Annual Report 2011–2012 Page 45

Financial position Cash flows – balance sheet Total cash and investments While Parks Victoria shows at the end of the year were $1.7 billion of assets in its financial $108.4 million. Of that total, accounts, this only includes assets funds of $101.6 million are that are on land where Parks tied to specific projects and Victoria is appointed committee are not available for discretionary of management. expenditure or to meet current liabilities. This represents only a small proportion of public land and Importantly, non-committed cash associated assets that Parks Victoria ended the year $4.2 million above manages and insures on a daily budget, at $6.8 million. While basis. Approximately $3 billion this also reflects Parks Victoria’s in assets recorded in the disciplined approach to managing Department of Sustainability costs it nevertheless represents and Environment’s financial a very small buffer against accounts are managed by Parks unexpected events. Victoria including land, buildings Investment in Parks Victoria-owned and roads in national parks, state property, plant and equipment parks and conservation reserves. of $7.3 million fell short At June 2012, total liabilities of depreciation charges of of $149.6 million exceed financial $10.28 million in 2011–12. assets of $122.98 million. Greater capital expenditure will be required in future years to replace the asset base. The net liability in the Vision Super defined benefits superannuation fund deteriorated by $0.567 million and stands at $6.216 million at June 2012. It is expected this liability will be addressed over the next five years. Page 46

People and workplace

Workforce profile

Ongoing Fixed term Casual Total employees

Employee Employee Employee Total FTE FTE FTE Total FTE (headcount) (headcount) (headcount) headcount June 2012 1025 968 68 66 16 2 1036 1109 June 2011 1091 1032.0 71 66.1 15 5 1103 1177

JUNE 2011 JUNE 2012 Fixed term Fixed term Ongoing Ongoing & casual & casual employees employees employees employees Employee Employee FTE FTE FTE FTE (headcount) (headcount) Gender Male 751.0 745.8 38.3 715.0 709.5 48.8 Female 340.0 286.3 32.6 310.0 258.4 20.2 Age Under 25 23.0 22.4 4.5 14.0 14.0 4.4 25–34 168.0 158.3 27.8 133.0 124.6 28.9 35–44 321.0 294.4 18.1 300.0 273.2 19.2 45–54 329.0 317.7 13.4 298.0 288.0 10.7 55–64 233.0 224.6 7.0 245.0 236.6 3.9 Over 64 17.0 14.7 0.2 35.0 31.6 2.1 Classification Grade 1 2.0 1.2 2.8 2.0 1.2 0.9 Grade 2.1 72.0 68.3 22.0 64.0 61.1 31.0 Grade 2.2 173.0 158.5 4.1 145.0 130.8 4.0 Grade 2.3 173.0 164.2 5.8 176.0 166.4 4.5 Grade 3 131.0 128.6 12.0 123.0 120.0 3.0 Grade 4 158.0 149.6 8.1 154.0 146.5 6.6 Grade 5 103.0 91.8 2.8 95.0 85.0 4.3 Grade 6 127.0 120.9 3.3 129.0 121.7 5.8 Grade 7 54.0 52.6 5.0 52.0 51.2 5.0 Grade 8 82.0 80.6 4.0 73.0 72.0 4.0 Executives 16.0 15.8 1.0 12.0 12.0 0.0 Parks Victoria Annual Report 2011–2012 Page 47

Notes: • All figures reflect employment levels during the last full pay period in June of each year. • Excluded are those on leave without pay (25.7 FTE) or absent on secondment, external contractors/consultants and temporary staff employed by employment agencies. • Ongoing employees includes people engaged on an open ended contract of employment and executives engaged on a standard executive contract who were active in the last full pay period of June. • Reduction in female headcount levels is comparable to the reduction in male headcount levels. • As at 30 June 2012, Parks Victoria employed a total of 1036 full time equivalent (FTEs) employees. This comprised 721 employees delivering field based services, of which 64 were Aboriginal staff. To meet summer peak seasonal visitor attendance at high visitation locations, 36 seasonal rangers were employed to run visitor services programs across the state. This included 9 Marine Rangers servicing the bay and coastal areas. Additionally, 180 Project Fire Fighters were employed for planned burning and wildfire management.T hese seasonal programs greatly enhance Parks Victoria’s capacity to maintain visitor services during the summer and peak fire season. • Attrition is steady at 7% and continues to occur across regional delivery roles. Implementing workforce mobility strategies from low priority areas to high priority areas will ensure sustainable park services. • An ageing population is consistent with the broader Victorian Public Sector. Parks Victoria will continue to introduce phased retirement and knowledge transfer and to attract and retain younger people by offering education and training opportunities. • Of all employees 6.2% are Aboriginal and 30% are female. Two of the 12 Executives are female. Expanding opportunities for women in senior positions and non-traditional roles through the design of flexible jobs and development programs and improved talent attraction, development and retention of Aboriginal people is an ongoing commitment of Parks Victoria.

Merit, equity and diversity • show accountability for high-low beds, shower their actions commodes and other Parks Victoria is committed to equipment maintaining a workplace free • provide responsive service. of harassment, discrimination • Production of an online video and bullying. These principles Equity and diversity on accessibility equipment are documented in the Victorian available in parks Parks Victoria has in place an Government’s merit and equity Equity and Diversity Management • Redeveloping Parks Victoria’s standards and embodied in the Plan (2010–2013). This plan website to comply with Public Administration Act 2004. continues to improve equity in international guidelines, Parks Victoria communicates and employment, access to programs improving its universal access adheres to the principles set out and services and raises awareness and interactive features in the Act. of equity and diversity within • Providing more As an employer, Parks Victoria the organisation. comprehensive park access ensures that: information on Parkweb for Disability Action Plan • its decisions are based 30 of our most visited parks on merit Parks Victoria continued to deliver • Developing a park its objectives in line with the third • its staff are treated fairly accessibility resource guide year of its Disability Action Plan. and reasonably to assist Parks Victoria Changes to practices, services staff in gathering park • equal employment and infrastructure are designed access information for opportunity is provided to improve accessibility and individual parks increase inclusiveness for people • there are reasonable avenues with disabilities. In 2011–12 • Developing additional of redress against unfair these included: partnerships with disability or unreasonable treatment. and health organisations • Continuing to trial all-terrain All Parks Victoria staff are to deliver programs in parks wheelchairs in a selection required to abide by the Victorian that enhance the health and of parks to improve visitor public sector code of conduct, wellbeing of individuals with access to park beaches and which requires staff to: a disability. walking trials • act with impartiality • Trialling the provision of • display integrity and avoid accessibility equipment in conflicts of interest park accommodation such as personal hoists, electric Page 48 PEOPLE AND WORKPLACE

Image 25: Wallace Heritage Trail, Alpine National Park

Occupational health • Improvements in OHS • enable the healthy recovery and safety reporting to management has of staff increased senior and middle Throughout the year, Parks • develop and implement management awareness Victoria continued to review its policies, procedures and of OHS responsibilities. This occupational health and safety practices to assist staff aids better informed decision management system with a focus to balance their work making on safety matters at on improving and streamlining and family responsibilities. the organisational level the management of health and safety hazards at the front line. • The review of the OHS Work Learning and development Centre Inspection Procedure The following achievements Learning and development and underlying processes are notable: programs are monitored and resulted in improved evaluated for relevance and • A total of 69 Workcover monitoring of plant and alignment with organisational claims were received in equipment and chemical OHS service needs. 2011–12, a decrease of 23% management processes. compared to the 90 claims Successful delivery of received in 2010–11 Staff health and wellbeing ‘Experiencing Parks Victoria’ induction workshops for new • The total number of standard Parks Victoria continues to staff is supported by four work cover claims (claims deliver a health and wellbeing eLearning modules: which exceeded employer program to: excess) dropped from 55 in • Working safely • provide staff, and in some 2010–11 to 40 in 2011–12 (156 completed) cases immediate family • An overall increased members, with access • Equity and diversity awareness across the to health and wellbeing (143 completed) information and a range organisation for the need • Inside Parks Victoria of support programs in the to report OHS hazards, near (90 completed misses as well as workplace short, medium and long injury/illness has increased term including access to free • Basic Wildfire awareness overall OHS reporting professional counselling and (38 completed). by 45% support service A total of eight eLearning modules • monitor staff health are now available to staff, and wellbeing including two new modules for 2012, ‘Procurement’ and • support staff during and ‘Government Legislation – following critical incidents Your Job and You’. Parks Victoria Annual Report 2011–2012 Page 49

Foundations activities focused Operational training was on eLearning modules focused on maintaining on organisational obligations currency of core operational including basic wildfire accreditations, including first awareness, the Parks Victoria aid, agricultural chemical users Estate and the Privacy Act permit, compliance including (22 completed), Aboriginal cross enforcement, managing cultural training (30 completed) aggressive behaviour, handling and Foundations for Personal firearms, new marine legislation, Leadership (36 completed). coxswains tickets and refreshers and other maritime requirements. Operational training focused on maintaining currency Fire training continues to be of core operational accreditations a major component of staff including first aid, agricultural training across all fire incident chemical users permit, management disciplines. In the compliance including 2011–12 fire season, 175 Project enforcement, managing Fire Fighters were inducted into aggressive behaviour, handling Parks Victoria with the majority firearms, new marine legislation, gaining the necessary core field coxswains tickets and refreshers skills of chainsaw, 4WD, first aid, and other maritime requirements. and GPS. Fire training continues to be Parks Victoria’s leadership and a major component of staff professional development training across all fire incident provided management and management disciplines. In the supervision training for newly- 2011–12 fire season, 180 Project appointed managers and Fire Fighters were inducted into supervisors. A new initiative Parks Victoria with the majority in distance learning, Developing gaining the necessary core field Supervision Skills, was targeted skills of chainsaw, 4WD, first aid, at future team leaders. Twelve and GPS. staff participated in the trial using a combination of video A new initiative in distance conferencing workshops, learning, Developing Supervision assignments and Skills, was targeted at future team face-to-face activities. leaders. Twelve staff members participated in the trial using a combination of video conferencing workshops, assignments and face-to-face activities. The Foundations program helps employees build their career in park management and contribute to the community. Foundations activities focussed on: • eLearning modules on organisational obligations including basic wildfire awareness, the Parks Victoria Estate and the Privacy Act (22 completed) • Aboriginal cross cultural training (30 completed) • Foundations for Personal Leadership (36 completed). Page 50

Governance and compliance

Legislative framework and jetties in Port Phillip and the Minister for Environment and Western Port. Climate Change. Under the Parks Victoria Act 1998, Parks Victoria’s Parks Victoria is responsible Parks Victoria’s services are responsibilities are to provide for managing: delivered within State policy services to the State and its and contractual agreements, • All areas under the agencies for the management and in accordance with statutory National Parks Act 1975 – of parks, reserves and other land responsibilities and statutory approximately under the control of the State delegations. The MSA sets out 3.45 million hectares together with waterways land the principles for the delivery (within the meaning of the Water • Reserved and unreserved of park management services, Industry Act 1994) for the purposes Crown land including lists the land to be managed of conservation, recreation, leisure, conservation and other and sets out the key functions tourism or water transport. Parks reserves, metropolitan of Parks Victoria and DSE. Victoria’s responsibilities also parks, regional parks and The current MSA includes extend to piers and jetties and historic areas a commitment to engage recreational boating in Port Phillip • Recreational and other strategically and work in and Western Port as a local activities on waterways partnership. DSE is the port manager under the Port land in the metropolitan designated lead for fire and Management Act 1995 and as area as defined in the road issues and Parks Victoria waterways manager under the Water Industry Act 1994 for tourism and recreation Marine Act 1988. With the issues across tenure. approval of the Minister, it may • Piers and jetties in Port Phillip and Western Port and also provide services to the owner Changes to areas managed of any other land used for public recreational boating on these purposes for the management bays pursuant to powers Under the Management Services of that land. The Act requires conferred on it as a local Agreement, the Minister for the that Parks Victoria must not act port manager under the Environment and Climate Change in a way that is not environmentally Port Management Act 1995 advises Parks Victoria of any sound in carrying out its functions. and as waterways manager changes to the land managed under the Marine Act 1988 by Parks Victoria. In April 2012, Parks Victoria is appointed as Parks Victoria was advised of the • A number of other areas a committee of management assignment of Gresswell Nature under leases or other of various reserves pursuant to Conservation Reserves in Bundoora, arrangements (including the Crown Land (Reserves) Act adding approximately 70 hectares reservoir parks). 1978 and the Forests Act 1958. to the total area managed. This Currently Parks Victoria is the Parks Victoria’s relationships and brings the total area of land committee of management for responsibilities for the provision assigned to Parks Victoria via direct a range of reserves including of services to the State are set assignment to approximately Albert Park, Werribee Park, Yarra out in a Management Services 4.084 million hectares. Bend, several gardens in the Agreement (MSA) between Parks Dandenong Ranges and piers Victoria, the Secretary to DSE and Parks Victoria Annual Report 2011–2012 Page 51

Freedom of Information disclose such conduct. Parks A copy of Parks Victoria’s Victoria has established a Whistleblower Protection The Freedom of Information Whistleblowers Protection Procedures can be obtained Act 1982 allows the public the procedure to manage disclosures. by contacting Parks Victoria right of access to information Disclosures may also be made on 13 1963. contained in documents held directly to the Ombudsman. by Parks Victoria. In the reporting Since the commencement of the Statement of availability period, Parks Victoria received Act in January 2002, seven of other information 25 requests, being 19 external disclosures have been received requests for documents and The following information by Parks Victoria. Disclosures information under the Act, and is available on request, subject for the period 1 July 2011 six interdepartmental requests. to the Freedom of Information to 30 June 2012 are as follows: Of the 19 external requests: Act 1982: • Number and type of disclosures • Sixteen were decided • A statement that declarations made to Parks Victoria – three by Parks Victoria of pecuniary interests have public interest disclosures been duly completed by all • Three did not proceed • Number and type of disclosures relevant officers • One was withdrawn referred to the Ombudsman • Details of shares held for public interest determination • None were transferred to by a senior officer – three public interest other agencies for processing as nominee, or held disclosures beneficially in a statutory • None were refused because • Number and type of disclosed authority or subsidiary they did not meet the matters referred to Parks requirement under the Act • Details of publications Victoria from the Ombudsman produced by Parks Victoria • None were dealt with outside – two public interest disclosures about itself and how these the FOI process to be investigated can be obtained • All have been finalised. • Number and type of disclosed • Details of changes in prices, matters referred to the Freedom of Information requests fees, charges, rates and Ombudsman for investigation are made in writing describing the levies charged – one public interest disclosure. documents requested and including • Details of any major external the payment of the $24.40 • Number and type reviews carried out application fee. Application of investigations of disclosed on Parks Victoria forms and information about matters taken over by the how to make a request can be Ombudsman – none • Details of major research found on Parks Victoria’s website and development activities • Number of requests made – www.parks.vic.gov.au undertaken to the Ombudsman to Requests should be sent to: investigate matters – none • Details of overseas visits Freedom of Information Officer undertaken, including • Number and type of disclosed Parks Victoria a summary of the objectives matters Parks Victoria has Level 10, 535 Bourke Street and outcomes of each visit declined to investigate – one. Melbourne 3000. • Details of major promotional, The contact details for the public relations and marketing Whistleblowers protection Protected Disclosure Coordinator activities undertaken to develop and Ombudsman are: The Whistleblowers Protection community awareness of Act 2001 came into effect Protected Disclosure Coordinator Parks Victoria and its services on 1 January 2002. It is designed Chief Legal Counsel • Details of assessments and to protect people who disclose Parks Victoria Level 10, 535 measures undertaken information about serious Bourke Street, Melbourne 3000 to improve the occupational wrongdoing within the Victorian Telephone 13 1963 health and safety of employees Public Sector and to provide The Ombudsman Victoria a framework for the investigation Level 9, 459 Collins Street (North of these matters. Tower), Melbourne VIC 3000 Parks Victoria does not tolerate Telephone 96136222 or toll free improper conduct by employees, 1800 806 314. or the taking of reprisals against those who come forward to Page 52 GOVERNANCE AND COMPLIANCE

• A general statement on During the financial year ended Major contracts industrial relations within 30 June 2012, Parks Victoria Parks Victoria did not enter into Parks Victoria and details commenced one contract any contracts greater than of time lost through industrial in metropolitan Melbourne $10 million in value during accidents and disputes to the value of $7.8 million the reporting period. to which the VIPP applied. • A list of Parks Victoria’s major No contracts were commenced committees, the purposes in regional Victoria to which of each committee and the VIPP applied. No contracts extent to which the purposes were completed to which the have been achieved. VIPP applied. Building Act National Competition All works associated with Policy buildings are managed in Competitive neutrality seeks to accordance with the Building enable fair competition between Act 1993, including obtaining government and private sector all permits as required. businesses. Any advantages or disadvantages that government Victorian industry businesses may experience, simply participation policy as a result of government The Victorian Industry Participation ownership, should be neutralised. Policy Act 2003 requires public Parks Victoria continues bodies and Departments to to implement and apply report on the implementation this principle in its of the Victorian Industry business undertakings. Participation Policy (VIPP). There were no consultancies Departments and public bodies engaged under $10,000. are required to apply VIPP in all tenders over $3 million in metropolitan Melbourne and $1 million in regional Victoria. Parks Victoria was fully compliant with the policy.

In 2011–12 Parks Victoria engaged the following consultants.

Total approved Expenditure Future project fee 2011–12 expenditure Purpose of ($‘000 ($’000 ($’000 Consultant consultancy excluding GST) excluding GST) excluding GST) Andrew Long Pre contract archaeology $60 $15 $40 & Associates synthesis

Ernst & Young Pricing reform advice $75 $60 $ nil

Hydro Numerics Hydrology management $40 $50 $ nil

Land use history Context $70 $35 $55 research

Water Technology Hydrology design $50 $50 $ nil

Snow Gum Group Management advice $140 $150 $35 Page 53

Financial Report

Comprehensive Operating Statement 54 Balance Sheet 55 Statement of Changes in Equity 56 Cash Flow Statement 57 Table of Contents 58 Notes to Financial Statements 59–93 Statutory Certificate 94 Auditor’s Report 95–96 Page 54 FINANCIAL REPORT

Comprehensive Operating Statement For the Financial Year ended 30 June 2012

2012 2011 Notes $’000 $’000 Continuing operations Income from transactions Parks and reserves trust funding 3 80,331 77,132 Government funding 4 122,055 110,455 Interest 5 5,327 5,856 Fair value of assets received free of charge 6 3,422 2,177 Insurance claims 7a 15,085 1,391 Other income 7b 25,779 21,989 Total income from transactions 251,999 219,000

Expenses from transactions Employee benefits expenses 8 93,849 92,761 Depreciation and amortisation 9 10,276 6,565 Contracts and external services 10 113,721 97,593 Other operating expenses 11 31,897 33,121 Total expenses from transactions 249,743 230,040 Net result from transactions (net operating balance) 2,256 (11,040)

Other economic flows included in net result Net gain/(loss) on non-financial assets 12(a) – – Net gain/(loss) on financial instruments 12(a) (257) (58) Other gains/(losses) from other economic flows 12(b) (2,802) (1,263) Total other economic flows included in net result (3,059) (1,321) Net result (803) (12,361)

Other economic flows – Other non-owner changes in equity Changes in physical asset revaluation surplus 23 – 226,860 Total other economic flows – Other non-owner changes in equity – 226,860 Comprehensive result (803) 214,499

The comprehensive operating statement should be read in conjunction with the accompanying notes. Parks Victoria Annual Report 2011–2012 Page 55

Balance Sheet As at 30 June 2012

2012 2011 Notes $’000 $’000 Assets Financial assets Cash and deposits 13 58,423 47,648 Receivables 14 14,557 7,165 Investments and other financial assets 15 50,000 50,000 Total financial assets 122,980 104,813

Non-financial assets Inventories 16 159 114 Property, plant and equipment 17 1,722,830 1,719,034 Intangible assets 18 5,575 6,326 Other non-financial assets 19 16 322 Total non-financial assets 1,728,580 1,725,796

Total assets 1,851,560 1,830,609

Liabilities Payables 20 28,597 20,217 Provisions 21 34,659 31,971 Provision for Superannuation defined benefits obligation 29(c) 6,216 5,649 Deferred revenue 22 80,113 80,962 Total liabilities 149,585 138,799

Net assets 1,701,975 1,691,810

Equity Accumulated surplus/(deficit) (57,218) (56,414) Physical asset revaluation surplus 23 1,128,678 1,128,678 Contributed capital 24 630,515 619,546 Total equity 1,701,975 1,691,810

Contingent liabilities and contingent assets 26 Commitments 27

The balance sheet should be read in conjunction with the accompanying notes. Page 56 FINANCIAL REPORT

Statement of Changes in Equity For the Financial Year ended 30 June 2012

Physical Asset Revaluation Accumulated Contributed Surplus Surplus (Deficit) Capital Total Notes $’000 $’000 $’000 $’000 Balance at 1 July 2010 901,818 (48,483) 587,667 1,441,002 Net result for the year – (12,361) – (12,361) Other comprehensive income for the year 23 226,860 – – 226,860 Transfer to accumulated surplus – 4,430 – 4,430 Contributed capital 24 – – 31,879 31,879 Balance at 30 June 2011 1,128,678 (56,414) 619,546 1,691,810 Net result for the year – (803) – (803) Other comprehensive income for the year 23 – – – – Transfer to accumulated surplus – – – – Contributed capital 24 – – 10,969 10,969 Balance at 30 June 2012 1,128,678 (57,218) 630,515 1,701,975

The statement of changes in equity should be read in conjunction with the accompanying notes. Parks Victoria Annual Report 2011–2012 Page 57

Cash Flow Statement For the Financial Year ended 30 June 2012

2012 2011 Notes $’000 $’000 Cash Flows from operating activities Receipts Receipts from parks charges 79,186 81,674 Receipts from government for operations 111,344 101,031 Receipts from government for Base Funding Review 14,356 14,135 Receipts from customers/other sources 35,098 27,668 Interest received 5,246 5,593 Receipts relating to goods and services tax 18,056 18,769 Total receipts 263,286 248,870

Payments Payments to suppliers and employees (227,043) (214,328) Payments to government for revenue collected from national parks (5,452) (6,634) Payments relating to Goods and Services Tax (18,424) (18,440) Total payments (250,919) (239,402) Net cash flows from/(used in) operating activities 25(c) 12,367 9,468

Cash Flows from investing activities Payments for property, plant and equipment (7,333) (12,439) Proceeds on sale of property, plant and equipment – – Payments for other financial assets (90,000) (50,000) Proceeds from other financial assets 90,000 60,000 Net cash flows from/(used in) investing activities (7,333) (2,439)

Cash flows from financing activities Receipts from government – contributed capital 5,741 4,076 Net cash flows from/(used in) financing activities 5,741 4,076 Net increase/(decrease) in cash and cash equivalents 10,775 11,105

Cash and cash equivalents at beginning of financial year 47,648 36,543 Cash and cash equivalents at the end of the financial year 13 58,423 47,648

Consisting of: Committed cash and investments 34 101,661 96,266 Non-committed cash (cash reserved for short term liabilities) 6,762 1,382 Total Funds* 108,423 97,648

* Total funds of $108.423m comprises $58.423m in cash and $50m in investments with TCV.

The above cash flow statement should be read in conjunction with the accompanying notes. Page 58 FINANCIAL REPORT

Table of Contents

Note 1 Background Note 15 Other financial assets

Note 1.1 Reporting entity Note 16 Inventories

Note 1.2 Objectives and funding Note 17 Property, plant and equipment

Note 2 Summary of significant accounting policies Note 18 Intangible assets

Note 2.1 General Note 19 Other non-financial assets

Note 2.2 Basis of accounting preparation and Note 20 Payables measurement Note 21 Provisions Note 2.3 Asset recognition and measurement Note 22 Deferred revenue Note 2.4 Scope and presentation of financial statements Note 23 Physical asset revaluation surplus Note 2.5 Financial assets Note 24 Contributed capital Note 2.6 Non-financial assets Note 25 Cash flow information Note 2.7 Impairment of non-financial assets Note 26 Contingent liabilities and contingent assets Note 2.8 Leased assets Note 27 Commitments Note 2.9 Liabilities Note 28 Superannuation Note 2.10 Contributed capital Note 29 Defined superannuation benefit Note 2.11 Income recognition Note 30 Volunteer resources provided free of charge Note 2.12 Grants and other payments Note 31 Auditor's remuneration Note 2.13 Resources provided and received free of charge or for nominal consideration Note 32 Responsible person and executive officer disclosures Note 2.14 Interest income Note 33 Financial instruments Note 2.15 Depreciation and amortisation Note 34 Committed funds Note 2.16 Finance costs Note 35 Post balance date events Note 2.17 Commitments

Note 2.18 Contingent assets and contingent liabilities

Note 2.19 Goods and Services Tax

Note 2.20 Rounding of amounts

Note 2.21 New accounting standards and interpretations

Note 3 Parks and reserves trust funding

Note 4 Government funding

Note 5 Interest

Note 6 Fair value of assets received free of charge

Note 7 Insurance/other income

Note 8 Employee benefits expenses

Note 9 Depreciation and amortisation

Note 10 Contracts and external services

Note 11 Other operating expenses

Note 12 Other economic flows included in net result

Note 13 Cash and deposits

Note 14 Receivables Parks Victoria Annual Report 2011–2012 Page 59

Notes to the Financial Statements For the Financial Year ended 30 June 2012

1 Background

1.1 Reporting entity The financial statements cover Parks Victoria as a not-for-profit individual reporting entity. Parks Victoria was formed as a public authority on 3 July 1998 under the Parks Victoria Act 1998. The Parks Victoria Act 1998 was given Royal Assent on 26 May 1998 and was proclaimed on 3 July 1998. The principal address is: Level 10/ 535, Bourke Street, Melbourne, VIC 3000

1.2 Objectives and funding The objective of Parks Victoria is to provide an outstanding park and waterway system, protected and enhanced, for people, forever. Parks Victoria receives the majority of its funding from the Victorian Government for the management of Victoria’s National/State Parks and Reserves and from the Parks and Reserves Trust for the management of metropolitan parks and waterways. The Trust is funded by a Parks charge levied on properties within the Melbourne metropolitan area.

2 Summary of significant accounting policies

2.1 General These general purpose financial statements have been prepared in accordance with the Financial Management Act 1994 and applicable Australian Accounting Standards, including Interpretations (AASs). AASs include Australian equivalents to International Financial Reporting Standards.

Statement of compliance The financial statements comply with the relevant FinancialR eporting Directions (FRDs) issued by the Department of Treasury and Finance and relevant Standing Directions (SD) authorised by the Minister for Finance. Under Australian Accounting Standards (AASs), there are requirements that apply specifically to not-for-profit entities. Parks Victoria has analysed its purpose, objectives, and operating philosophy and determined that it does not have profit generation as a prime objective. Where applicable, theAAS s that relate to not-for-profit entities have been applied. The financial statements were authorised for issue by the board of Parks Victoria on 14A ugust 2012. Page 60 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2012

2.2 Basis of accounting preparation and measurement The accrual basis of accounting has been applied in the preparation of these financial statements whereby assets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid. These financial statements are presented in Australian dollars, the functional and presentation currency of Parks Victoria. In the application of AASs, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on professional judgements derived from historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. These financial statements have been prepared in accordance with the historical cost convention except for: • non-current physical assets which, subsequent to acquisition, are measured at a re-valued amount being their fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent impairment losses. Revaluations are made with sufficient regularity to ensure that the carrying amounts do not materially differ from their fair value. • the fair value of an asset other than land, plant and equipment, antiques and work in progress is based on its depreciated replacement cost. • available-for-sale investments which are measured at fair value with movements reflected in equity until the asset is derecognised. Historical cost is based on the fair values of the consideration given in exchange for assets. Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported. The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2012 and the comparative information presented for the year ended 30 June 2011.

2.3 Asset recognition and measurement Parks Victoria only recognises assets on land it controls as the committee of management. Parks Victoria also manages other assets on behalf of the Crown. Those assets and any new assets constructed by Parks Victoria on behalf of the Crown are recognised in the asset register of the Department of Sustainability and Environment. Parks Victoria Annual Report 2011–2012 Page 61

Notes to the Financial Statements For the Financial Year ended 30 June 2012

2.4 Scope and presentation of financial statements

(i) Comprehensive operating statement Income and expenses in the comprehensive operating statement are classified according to whether or not they arise from ‘transactions’ or ‘other economic flows’. This classification is consistent with the whole of government reporting format and is allowed under AASB 101 Presentation of financial statements. ‘Transactions’ are those economic flows that are considered to arise as a result of policy decisions, usually interactions between two entities by mutual agreement. Transactions also include flows within an entity, such as depreciation where the owner is simultaneously acting as the owner of the depreciating asset and as the consumer of the service provided by the asset. Taxation is regarded as mutually agreed interactions between the Government and taxpayers. Transactions can be in kind (e.g. assets provided/given free of charge or for nominal consideration) or where the final consideration is cash. ‘Other economic flows’ are changes arising from market re-measurements.T hey include gains and losses from disposals, revaluations and impairments of non-current physical assets and intangible assets; fair value changes of financial instruments and revaluation of certain employee benefit liabilities. The net result is equivalent to profit or loss derived in accordance withAAS s.

(ii) Balance sheet Assets and liabilities are presented in liquidity order with assets aggregated into financial assets and non-financial assets. Current and non-current assets and liabilities (those expected to be recovered or settled beyond 12 months) are disclosed in the notes, where relevant.

(iii) Statement of changes in equity The statement of changes in equity presents reconciliations of each non-owner and owner equity opening balance at the beginning of the reporting period to the closing balance at the end of the reporting period. It also shows separately changes due to amounts recognised in the ‘Comprehensive result’ and amounts recognised in ‘Other economic flows -O ther non‑owner changes in equity’ related to transactions with owner in its capacity as owner.

(iv) Cash flow statement Cash flows are classified according to whether or not they arise from operating activities, investing activities or financing activities.T his classification is consistent with requirements under AASB 107 Statement of cash flows. Page 62 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2012

2.5 Financial assets

(i) Cash and deposits Cash and deposits, including cash equivalents, comprise cash on hand and cash at bank, deposits at call and those highly liquid investments subject to an insignificant risk of changes in value with an original maturity of three months or less, which are held for the purpose of meeting short term cash commitments rather than for investment purposes. For the purpose of the Cash Flow Statement, cash assets include cash on hand and highly liquid investments with short periods to maturity that are readily convertible to cash on hand at Parks Victoria’s option and are subject to insignificant risk of changes in values, net of outstanding bank overdrafts.

(ii) Receivables Receivables consist of: • statutory receivables, which include predominantly amounts owing from the Victorian Government and GST input tax credits recoverable; and • contractual receivables, which include mainly debtors in relation to goods and services, and accrued investment income. Receivables that are contractual are classified as financial instruments. Statutory receivables are not classified as financial instruments. Receivables are recorded initially at fair value and subsequently measured at amortised cost, using the effective interest method, less impairment. Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A provision for doubtful debts is established when there is objective evidence that Parks Victoria will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial. The amount of the provision is recognised in the Comprehensive Operating Statement. A provision for doubtful debts is recognised to the extent that recovery of the outstanding receivable balance is considered less than likely. Bad debts are written off in the period in which they are recognised. The average credit period on sales of goods or provision of services is 30 days. No interest is charged on outstanding trade and other receivables.

(iii) Other financial assets Other financial assets are recognised and derecognised on trade date where purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs. Parks Victoria classifies its other financial assets between current and non-current assets based on the purpose for which the assets were acquired. Management determines the classification of its other financial assets at initial recognition. Parks Victoria assesses at each balance sheet date whether a financial asset or group of financial assets is impaired. All investments held by Parks Victoria are classified as being available-for-sale and are stated at fair value.G ains and losses arising from changes in fair value are recognised directly in equity, until the investment is disposed of or is determined to be impaired, at which time to the extent appropriate, the cumulative gain or loss previously recognised in equity is included in the Comprehensive Operating Statement for the period. Parks Victoria Annual Report 2011–2012 Page 63

Notes to the Financial Statements For the Financial Year ended 30 June 2012

2.6 Non-financial assets

(i) Inventories Inventories comprise stores and materials and are valued at the lower of cost and net realisable value. Costs are assigned to inventory on hand at balance date on a first in, first out basis.N et realisable value represents the estimated selling price less all estimated costs of completion and costs to be incurred in marketing and selling distribution.

(ii) Property, plant and equipment All non-current physical assets are measured initially at cost and subsequently revalued at fair value less accumulated depreciation and impairment. Where an asset is acquired for no or nominal cost, the cost is its fair value at the date of acquisition. Assets transferred as part of a machinery of government change are transferred at their carrying amount. Property, plant and equipment represent non-current assets used by Parks Victoria, comprising: • Crown land, land and land improvements. • Buildings and building improvements. • Piers, jetties and river improvements. • Plant, equipment, machinery and vehicles. • Antiques. • Works in progress. Items with a cost or value of $5,000 (2011 $5,000) or more, and a useful life of more than one year are recognised as an asset. All other assets acquired are expensed. Non-current physical assets such as national parks, other Crown land, and heritage assets are measured at fair value with regard to the property’s highest and best use after due consideration is made for any legal or constructive restrictions imposed on the asset, public announcements or commitments made in relation to the intended use of the asset. Theoretical opportunities that may be available in relation to the asset are not taken into account until it is virtually certain that the restrictions will no longer apply. The fair value of cultural depreciated assets and collections, heritage assets and other non-current physical assets that the State intends to preserve because of their unique historical, cultural or environmental attributes, is measured at the replacement cost of the asset less, where applicable, accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset and any accumulated impairment. Page 64 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2012

Revaluations of non-current physical assets Non-current physical assets measured at fair value are revalued in accordance with FRD 103D Non-Current Physical Assets issued by the Minister for Finance. This revaluation process normally occurs every five years, based upon the asset’s Government Purpose Classification, but may occur more frequently if fair value assessments indicate material changes in value. Revaluation increases or decreases arise from differences between an asset’s carrying value and fair value. Revaluation increases are credited directly to equity in the physical asset revaluation surplus, except to the extent that an increase reverses a revaluation decrease in respect of that class of property, plant and equipment previously recognised as an expense (other economic flows) in the net result, the increase is recognised as income (other economic flows) in determining the net result. Revaluation decreases are recognised immediately as expenses (other economic flows) in the net results, except to the extent that a credit balance exists in the physical asset revaluation surplus in respect of the same class of property, plant and equipment in which case they are debited to the physical asset revaluation surplus. Revaluation increases and decreases relating to individual assets within a class of property, plant and equipment are offset against one another within that class but are not offset in respect of assets in different classes.

(iii) Crown land Crown land is measured at fair value with regard to the property’s highest and best use after due consideration is made for any legal or constructive restrictions imposed on the land, public announcements or commitments made in relation to the intended use of the land. Theoretical opportunities that may be available in relation to the asset are not taken into account until it is virtually certain that the restrictions will no longer apply. The financial statements list the location and values ofC rown land over which Parks Victoria is the committee of management (refer note 17c). This Crown Land remains the property of the State of Victoria. Crown Land is used for heritage and environmental conservation, recreation, leisure, tourism and navigation.

Restrictive nature of cultural and heritage assets, Crown land and infrastructures During the reporting period, Parks Victoria held cultural assets, heritage assets, Crown land and infrastructures. Such assets are deemed worthy of preservation because of the social rather than financial benefits they provide to the community. The nature of these assets means that there are certain limitations and restrictions imposed on their use and/or disposal.

(iv) Intangible assets Intangible assets are initially recognised at cost. Subsequently, intangible assets with finite useful lives are carried at cost less accumulated amortisation and accumulated impairment losses. Costs incurred subsequent to initial acquisition are capitalised when it is expected that additional future economic benefits will flow to Parks Victoria.I ntangible assets include business systems and IT software. Parks Victoria Annual Report 2011–2012 Page 65

Notes to the Financial Statements For the Financial Year ended 30 June 2012

2.7 Impairment of non-financial assets All non-financial assets are assessed annually for indications of impairment, except for: • Inventories (refer note 2.6 (i)). If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written off by charge to the Comprehensive Operating Statement except to the extent that the write-down can be debited to the physical asset revaluation surplus account. The recoverable amount for most assets is measured at the higher of the present value of future cash flows expected to be obtained from the asset and fair value less costs to sell. It is deemed that, in the event of the loss of an asset, the future asset will be replaced unless a specific decision to the contrary has been made.

2.8 Leased assets Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Operating lease payments are recognised as an expense in the Comprehensive Operating Statement on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

2.9 Liabilities

(i) Payables Payables are recognised when Parks Victoria becomes obliged to make future payments resulting from goods and services provided prior to the end of the financial year, which are unpaid at financial year end. Payables are non-interest bearing and have an average credit period of 30 days.

(ii) Employee benefits

(a) Wages and salaries and sick leave Liabilities for wages and salaries that are expected to be settled within 12 months of the reporting date are measured at their nominal amounts in respect of employees’ services up to the reporting date. The nominal basis of measurement uses employee remuneration rates that the entity expects to pay as at each reporting date and does not discount cash flows to their present value.N on-vesting sick leave is not expected to exceed current and future sick leave entitlements, and accordingly, no liability has been recognised.

(b) Annual leave and long service leave Annual leave and long service leave entitlements expected to be settled within 12 months of the reporting date are recognised as a provision for employee benefits in the BalanceS heet at their nominal values. Annual leave and long service leave entitlements not expected to be settled within 12 months of the reporting date are recognised at the present value of the estimated future cash outflows to be made by Parks Victoria in respect of services provided by employees up to reporting date. Consideration is given to expected future employee remuneration rates, employment related on-costs and other factors including experience of employee departures and periods of service. In the determination of the long service leave entitlement liabilities, Parks Victoria use the wage inflation and discount rates released by the Department of Treasury and Finance. Page 66 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2012

(c) Classification of employee benefits as current and non-current liabilities Employee benefit provisions are reported as current liabilities where Parks Victoria does not have an unconditional right to defer settlement for at least 12 months. Consequently, the current portion of the employee benefit provision can include both short-term benefits (those benefits expected to be settled within 12 months of the reporting date), which are measured at nominal values, and long-term benefits (those benefits not expected to be settled within 12 months of the reporting date), which are measured at present values. Employee benefit provisions that are reported as non-current liabilities also include long-term benefits such as non- vested long service leave (i.e. where the employee does not have a present entitlement to the benefit) that do not qualify for recognition as a current liability, and are measured at present values. The non-current liability for long service leave represents entitlements accrued for employees with less than 7 years of continuous service, where Parks Victoria has the right to defer the liability.

(d) Performance payments Performance payments for Parks Victoria’s Executive Officers are based on a percentage of the annual salary package provided under their contracts of employment. A liability is recognised and measured as the aggregate of the amounts accrued under the terms of the contracts at balance date. Since the performance payments earned are paid upon completion of annual performance reviews, the total amount is classified as a current liability.

(e) Superannuation Defined accumulation plans Contributions are made by Parks Victoria to employee superannuation funds and are charged as expenses when incurred. Defined benefit plans A liability or asset in respect of defined superannuation benefit plans is recognised in the balance sheet and is measured as the difference between the present value of employees accrued benefits at the end of the reporting period and the net market value of the superannuation plan’s assets at that date. The present value of benefits as accrued benefits is based on expected future payments which arise from membership of the plans at the end of the reporting period. Consideration is given to expected future salary levels, resignation and retirement rates. Expected future payments are discounted using rates of Commonwealth Government bonds with terms to maturity that match, as closely as possible the estimated future cash outflows. The amount brought to account in the Comprehensive Operating Statement in respect of superannuation represents the contributions made to the superannuation plan, adjusted by the movement in the defined benefit plan liability or asset. Parks Victoria only recognises the liability for Vision Super defined benefit plans. Parks Victoria does not recognise the defined benefit liability in respect of any other plans because the entity has no legal or constructive obligation to pay future benefits relating to its employees. Disclosure of superannuation contributions by Parks Victoria is provided in Note 28. Parks Victoria Annual Report 2011–2012 Page 67

Notes to the Financial Statements For the Financial Year ended 30 June 2012

(iii) Provisions Provisions are recognised when Parks Victoria has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably. The amount recognised as a liability is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cashflows estimated to settle the present obligation, its carrying amount is the present value of those cashflows, using a discount rate that reflects the time value of money and risks specific to the provision. When some or all of the economic benefits required to settle a provision are expected to be recognised from a third party, the receivable is recognised as an asset if it is virtually certain that recovery will be received and the amount of the receivable can be measured reliably.

(iv) Deferred revenue Deferred revenues represent the portion of reciprocal government and external grants/funding for conditions which at the end of financial year had not been performed (seeN ote 2.11).

2.10 Contributed capital Consistent with Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities and FRD 119 Contributions by Owners, appropriations for additions to the net asset base have been designated as contributed capital. Other transfers that are in the nature of contributions or distributions have also been designated as contributed capital.

2.11 Income recognition Amounts disclosed as income are, where applicable, net of returns, allowances and duties and taxes. Parks Charge income is recognised when invoiced by Parks Victoria. Other income, including external grants/funding, is recognised when earned or on receipt, depending on which occurs earlier. Where government and external grants/funding are reciprocal, income is recognised as performance occurs under the grant. Non-reciprocal grants are recognised as income when the grant is received or receivable. Conditional grants may be reciprocal or non-reciprocal depending on the terms of the grant. Where the grants/funding received has not been expended and a reciprocal agreement exists (reciprocal agreement is whereby the external revenue is required to be repaid if not used or an asset transfer to the external party is to occur upon completion of the asset) Parks Victoria records this revenue as deferred revenue.

2.12 Grants and other payments Grants and other payments to third parties are recognised as an expense in the reporting period in which they are paid or payable. They include transactions such as: grants, subsidies, other transfer payments made to State owned agencies, local government, non-government schools and community groups.

2.13 Resources provided and received free of charge or for nominal consideration Contributions of resources (including volunteer resources and assets received free of charge or for nominal consideration) and assets provided free of charge or for nominal consideration are recognised at their fair value. Contributions in the form of services are only recognised when a fair value can be reliably determined and the services would have been purchased if not donated. Page 68 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2012

2.14 Interest income Interest income includes unwinding over time of discounts on financial assets and interest received or receivable on bank term deposits and other investments. Interest income is recognised on a time proportionate basis that takes into account the effective yield on the financial asset.

2.15 Depreciation and amortisation Depreciation is applied to completed fixed assets including buildings and building improvements, piers, jetties and river improvements, land improvements and plant, equipment, machinery, and vehicles. Land and antiques are not depreciated. Works-in-Progress is valued at cost and depreciation commences on completion of the works. Depreciation is calculated on a straight-line basis to systematically write off the cost or revalued amount of each non-current asset over its expected useful life to the entity. Depreciation rates are reviewed annually and, if necessary, adjusted to reflect the most recent assessments of the useful lives and residual values of the respective assets. Where assets have separate identifiable components that have distinct useful lives and/or residual values, a separate depreciation rate is determined for each component. The expected useful life of each asset category is as follows: 2012 2011 Expected Life Expected Life Asset category (Years) (Years) Buildings and building improvements 5 to 100 5 to 100 Piers, jetties and river Improvements 6 to 100 6 to 100 Land improvements 1 to 100 1 to 100 Plant, equipment, machinery and vehicles 1 to 10 1 to 10

A full revaluation of non-financial physical assets was conducted in June 2011 in accordance with the Financial Reporting Directions (FRDs) issued by the Minister of Finance. The useful lives and residual values of the respective assets were adjusted to reflect the most recent assessment performed by the ValuerG eneral Victoria (VGV). The Valuer General provides guidance to asset valuers on the valuation rational and appropriate level of “Community Service Obligation” (2010-11: 70%) discount to apply to the asset. Amortisation is calculated on a straight-line basis to systematically write off the cost or revalued amount of each intangible asset over its expected useful life to the entity. Amortisation rates are reviewed annually and, if necessary, adjusted to reflect the most recent assessments of the useful lives and residual values of the respective assets. The expected useful life of each Intangible assets category (computer software) is 10 years (2011: 10 years). Parks Victoria Annual Report 2011–2012 Page 69

Notes to the Financial Statements For the Financial Year ended 30 June 2012

2.16 Finance costs Finance costs (mainly bank charges) are recognised as expenses in the period in which they are incurred.

2.17 Commitments Commitments for future expenditure include operating and capital commitments arising from contracts. These commitments are disclosed by way of a note (refer to Note 27) at their nominal value and inclusive of the Goods and Services Tax (GST) payable. In addition, where it is considered appropriate to provide additional relevant information to users, the net present values of significant individual projects are stated.T hese future expenditures cease to be disclosed as commitments once the related liabilities are recognised in the balance sheet.

2.18 Contingent assets and contingent liabilities Contingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by way of a note and, if quantifiable, are measured at nominal value. Contingent assets and liabilities are presented inclusive of GST receivable or payable respectively.

2.19 Goods and Services Tax Revenues, expenses and assets are recognised net of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of expense. Receivables and payables are stated inclusive of GST. The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables. Cash flows are included in the cash flow statement on a gross basis.T he GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, theATO , is classified as operating cash flows and disclosed therein.

2.20 Rounding of amounts Amounts in the financial statements have been rounded to the nearest thousand dollars, unless otherwise stated. Figures in the financial statements may not equate due to rounding. Page 70 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2012

2.21 New accounting standards and interpretations Certain new AASs have been published that are not mandatory for the 30 June 2012 reporting period. Parks Victoria assesses the impact of these new standards and advises their applicability and early adoption where applicable. As at 30 June 2012, the following standards and interpretations (applicable to agencies) had been issued but were not mandatory for the financial year ending 30 June 2012. Parks Victoria has not early adopted these standards.

Applicable for annual reporting periods Impact on Parks Victoria's Standard/Interpretation Summary beginning on financial statements AASB 9 Financial instruments This standard simplifies requirements for the 1 Jan 13 Detail of impact is still being assessed. classification and measurement of financial assets resulting from Phase 1 of the IASB’s project to replace IAS 39 Financial Instruments: Recognition and Measurement (AASB 139 Financial Instruments: Recognition and Measurement). AASB 10 Consolidated Financial This Standard establishes principles for the 1 Jan 13 As a not-for-profit entity, Parks Statements presentation and preparation of consolidated Victoria is not permitted to financial statements when an entity controls apply this Standard prior to the one or more other entities and supersedes mandatory application date. The those requirements in AASB 127 Consolidated AASB is assessing the applicability and Separate Financial Statements and of principles in AASB 10 in a not- Interpretation 112 Consolidation – Special for-profit context. As such, impact Purpose Entities. will be assessed after the AASB’s deliberation. AASB 11 Joint Arrangements This Standard requires entities that have an 1 Jan 13 As a not-for-profit entity, Parks interest in arrangements that are controlled Victoria is not permitted to apply jointly to assess whether the arrangement is a this Standard prior to the mandatory joint operation or joint venture. AASB 11 shall application date. As such, impact be applied for an arrangement that is a joint will be assessed after the AASB’s operation. It also replaces parts of requirements deliberation. in AASB 131 Interests in Joint Ventures. AASB 12 Disclosure of Interests This Standard requires disclosure of information 1 Jan 13 As a not-for-profit entity, Parks in Other Entities that enables users of financial statements to Victoria is not permitted to evaluate the nature of, and risks associated apply this Standard prior to the with, interests in other entities and the effects mandatory application date. The of those interests on the financial statements. AASB is assessing the applicability This Standard replaces the disclosure of principles in AASB 12 in a not- requirements in AASB 127 and AASB 131. for-profit context. As such, impact will be assessed after the AASB’s deliberation. AASB 13 Fair Value Measurement This Standard outlines the requirements 1 Jan 13 Disclosure for fair value for measuring the fair value of assets and measurements using unobservable liabilities and replaces the existing fair value inputs are relatively onerous definition and guidance in otherAAS s. AASB compared to disclosure for fair value 13 includes a ‘fair value hierarchy’ which ranks measurements using observable the valuation technique inputs into three inputs. Consequently, the Standard levels using unadjusted quoted prices in active may increase the disclosures for markets for identical assets or liabilities; other public sector entities that have observable inputs; and unobservable inputs. assets measured using depreciated replacement cost. Detail of impact is still being assessed. AASB 119 Employee Benefits In this revised Standard for defined benefit 1 Jan 13 As a not-for-profit entity, Parks superannuation plans, there is a change Victoria is not permitted to apply to the methodology in the calculation of this Standard prior to the mandatory superannuation expenses, in particular application date. Detail of impact is there is now a change in the split between being assessed. superannuation interest expense (classified as While the total superannuation transactions) and actuarial gains and losses expense is unchanged, the revised (classified as O‘ ther economic flows – other methodology is expected to have movements in equity’) reported on the a negative impact on the net result comprehensive operating statement. from transactions of the general government sector and for those few Victorian public sector entities that report superannuation defined benefit plans. Parks Victoria Annual Report 2011–2012 Page 71

Notes to the Financial Statements For the Financial Year ended 30 June 2012

Applicable for annual reporting periods Impact on Parks Victoria's Standard/Interpretation Summary beginning on financial statements AASB 127 Separate Financial This revised Standard prescribes the accounting 1 Jan 13 As a not-for-profit entity, Parks Victoria Statements and disclosure requirements for investments in is not permitted to apply this Standard subsidiaries, joint ventures and associates when prior to the mandatory application an entity prepares separate financial statements. date. The AASB is assessing the applicability of principles in AASB 127 in a not-for-profit context. As such, impact will be assessed after the AASB’s deliberation. AASB 128 Investments in Associates This revised Standard sets out the requirements 1 Jan 13 As a not-for-profit entity, Parks Victoria and Joint Ventures for the application of the equity method when is not permitted to apply this Standard accounting for investments in associates and prior to the mandatory application joint ventures. date. The AASB is assessing the applicability of principles in AASB 128 in a not-for-profit context.A s such, impact will be assessed after the AASB’s deliberation. AASB 2009–11 Amendments to This Standard gives effect to consequential 1 Jan 13 No significant impact is expected from Australian Accounting Standards changes arising from the issuance of AASB 9. these consequential amendments on arising from AASB 9 [AASB 1, 3, 4, entity reporting. 5, 7, 101, 102, 108, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 and 1038 and Interpretations 10 and 12] AASB 2010–2 Amendments to This Standard makes amendments to many 1 Jul 13 The Victorian Government is currently Australian Accounting Standards Australian Accounting Standards, including considering the impacts of Reduced arising from Reduced Disclosure Interpretations, to introduce reduced disclosure Disclosure Requirements (RDRs) for Requirements requirements to the pronouncements for certain public sector entities and application by certain types of entities. has not decided if RDRs will be implemented in the Victorian public sector. AASB 2010–7 Amendments to These consequential amendments are in relation 1 Jan 13 No significant impact is expected from Australian Accounting Standards to the introduction of AASB 9. these consequential amendments on arising from AASB 9 (December entity reporting. 2010) [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and Interpretations 2, 5, 10, 12, 19 & 127] AASB 2010–10 Further The amendments ultimately affect AASB 1 1 Jan 13 No significant impact is expected on Amendments to Australian First-time Adoption of Australian Accounting entity reporting. Accounting Standards – Removal of Standards and provide relief for first-time Fixed Dates for First-time Adopters adopters of Australian Accounting Standards ([AASB 2009–11 & AASB 2010–7] from having to reconstruct transactions that occurred before their date of transition to Australian Accounting Standards. AASB 2011–2 Amendments to The objective of this amendment is to include 1 Jul 13 The Victorian Government is currently Australian Accounting Standards some additional disclosure from the Trans- considering the impacts of Reduced arising from the Trans-Tasman Tasman Convergence Project and to reduce Disclosure Requirements (RDRs) Convergence Project – Reduced disclosure requirements for entities preparing and has not decided if RDRs will be Disclosure Requirements general purpose financial statements under implemented in the Victorian public [AASB101 & AASB 1054] Australian Accounting Standards – Reduced sector. Disclosure Requirements. AASB 2011–3 Amendments to This amends AASB 1049 to clarify the definition 1 Jul 12 This amendment provides clarification Australian Accounting Standards of the ABS GFS Manual, and to facilitate the to users preparing the whole of – Orderly Adoption of Changes to adoption of changes to the ABS GFS Manual government and general government the ABS GFS Manual and Related and related disclosures. sector financial reports on the version Amendments [AASB 1049] of the GFS Manual to be used and what to disclose if the latest GFS Manual is not used. No impact is expected on entity reporting. AASB 2011–4 Amendments to This Standard amends AASB 124 Related 1 Jul 13 No significant impact is expected from Australian Accounting Standards to Party Disclosures by removing the disclosure these consequential amendments on Remove Individual Key Management requirements in AASB 124 in relation to entity reporting. Personnel Disclosure Requirements individual key management personnel (KMP). [AASB 124]. Page 72 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2012

Applicable for annual reporting periods Impact on Parks Victoria's Standard/Interpretation Summary beginning on financial statements AASB 2011–6 Amendments The objective of this Standard is to make 1 Jul 13 The Victorian Government is currently to Australian Accounting amendments to AASB 127 Consolidated considering the impacts of Reduced Standards – Extending Relief from and Separate Financial Statements, AASB Disclosure Requirements (RDRs) Consolidation, the Equity Method 128 Investments in Associates and AASB and has not decided if RDRs will be and Proportionate Consolidation – 131 Interests in Joint Ventures to extend the implemented in the Victorian public Reduced Disclosure Requirements circumstances in which an entity can obtain sector. [AASB 127, AASB 128 & AASB 131]. relief from consolidation, the equity method or proportionate consolidation. AASB 2011–7 Amendments to This Standard outlines consequential changes 1 Jan 13 No significant impact is expected from Australian Accounting Standards arising from the issuance of the five ‘new these consequential amendments on arising from the Consolidation Standards’ to other Standards. For example, entity reporting. and Joint Arrangements Standards references to AASB 127 Consolidated and [AASB 1, 2, 3, 5, 7, 9, 2009-11, Separate Financial Statements are amended to 101, 107, 112, 118, 121, 124, 132, AASB 10 Consolidated Financial Statements 133, 136, 138, 139, 1023 & 1038 or AASB 127 Separate Financial Statements, and Interpretations 5, 9, 16 & 17] and references to AASB 131 Interests in Joint Ventures are deleted as that Standard has been superseded by AASB 11 and AASB 128 (August 2011). AASB 2011–8 Amendments to This amending Standard makes consequential 1 Jan 13 Disclosures for fair value Australian Accounting Standards changes to a range of Standards and measurements using unobservable arising from AASB 13[AASB 1, 2, 3, Interpretations arising from the issuance of inputs is potentially onerous, 4, 5, 7, 9, 2009–11, 2010–7, 101, AASB 13. In particular, this Standard replaces and may increase disclosures for 102, 108, 110, 116, 117, 118, 119, the existing definition and guidance of fair value assets measured using depreciated 120, 121, 128, 131, 132, 133, 134, measurements in other Australian Accounting replacement cost. Details of the impact 136, 138, 139, 140, 141, 1004, Standards and Interpretations. is still being assessed. 1023 & 1038 and Interpretations 2, 4, 12, 13, 14, 17, 19, 131 & 132] AASB 2011–9 Amendments to The main change resulting from this Standard 1 Jul 12 This amending Standard could change Australian Accounting Standards is a requirement for entities to group items the current presentation of ‘Other – Presentation of Items of Other presented in other comprehensive income economic flows- other movements in Comprehensive Income [AASB 1, 5, (OCI) on the basis of whether they are equity’ that will be grouped on the 7, 101, 112, 120, 121, 132, 133, potentially reclassifiable to profit or loss basis of whether they are potentially 134, 1039 & 1049]. subsequently (reclassification adjustments). reclassifiable to profit or loss These amendments do not remove the option to subsequently. No significant impact present profit or loss and other comprehensive is expected from these consequential income in two statements, nor change the amendments on entity reporting. option to present items of OCI either before tax or net of tax. AASB 2011–10 Amendments to This Standard makes consequential changes to a 1 Jan 13 No significant impact is expected from Australian Accounting Standards range of other Australian Accounting Standards these consequential amendments on arising from AASB 119 (September and Interpretation arising from the issuance of entity reporting. 2011) [AASB 1, AASB 8, AASB 101, AASB 119 Employee Benefits. AASB 124, AASB 134, AASB 1049 & AASB 2011-8 and Interpretation 14] AASB 2011–11 Amendments This Standard makes amendments to AASB 1 Jul 13 The Victorian Government is currently to AASB 119 (September 2011) 119 Employee Benefits S( eptember 2011), to considering the impacts of Reduced arising from Reduced Disclosure incorporate reduced disclosure requirements Disclosure Requirements (RDRs) Requirements into the Standard for entities applying Tier 2 and has not decided if RDRs will be requirements in preparing general purpose implemented in the Victorian public financial statements. sector. AASB 2011–12 Amendments to This Standard makes amendments to AASB 1 1 Jan 13 There may be an impact for new Australian Accounting Standards First-time Adoption of Australian Accounting agencies that adopt Australian arising from Interpretation 20 AASB 1 Standards, as a consequence of the issuance Accounting Standards for the first of IFRIC Interpretation 20 Stripping Costs in time. No implication is expected for the Production Phase of a Surface Mine. This existing entities in the Victorian public Standard allows the first-time adopters to sector. apply the transitional provisions contained in Interpretation 20. Parks Victoria Annual Report 2011–2012 Page 73

Notes to the Financial Statements For the Financial Year ended 30 June 2012

Applicable for annual reporting periods Impact on Parks Victoria's Standard/Interpretation Summary beginning on financial statements 2011–13 Amendments to This Standard aims to improve the AASB 1 Jul 12 No significant impact is expected from Australian Accounting Standard – 1049 Whole of Government and General these consequential amendments on Improvements to AASB 1049 Government Sector Financial Reporting at the entity reporting. operational level. The main amendments clarify a number of requirements in AASB 1049, including the amendment to allow disclosure of other measures of key fiscal aggregates as long as they are clearly distinguished from the key fiscal aggregates and do not detract from the information required by AASB 1049. Furthermore, this Standard provides additional guidance and examples on the classification between ‘transactions’ and ‘other economic flows’ for GAAP items without GFS equivalents. 2012–1 Amendments to Australian This amending Standard prescribes the 1 Jul 13 As the Victorian whole of government Accounting Standards – Fair Value reduced disclosure requirements in a number and the general government (GG) Measurement – Reduced Disclosure of Australian Accounting Standards as a sector are subject to Tier 1 reporting Requirements [AASB 3, AASB 7, consequence of the issuance of AASB 13 Fair requirements (refer to AASB 1053 AASB 13, AASB 140 & AASB 141] Value Measurement. Application of Tiers of Australian Accounting Standards), the reduced disclosure requirements included in AASB 2012–1 will not affect the financial reporting for Victorian whole of government and GG sector. No significant impact is expected from these consequential amendments on entity reporting. AASB Interpretation 20 Stripping This Interpretation clarifies when production 1 Jan 13 No significant impact is expected on Costs in the Production Phase stripping costs should lead to the recognition of entity reporting. of a Surface Mine an asset and how that asset should be initially and subsequently measured. Page 74 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2012

2012 2011 $’000 $’000 3 Parks and reserves trust funding

Park charges 80,331 77,132 Total parks and reserves trust funding 80,331 77,132

The parks and reserves trust funding is a charge levied on commercial and domestic properties throughout the Melbourne and metropolitan area, the majority of which is paid to Parks Victoria. This funding is then invested into the management and control of parks and waterways within the metropolitan area for the purposes of conservation, recreation, leisure, tourism and navigation.

4 Government funding

National / state parks and reserves funding 60,414 47,200 Parks Victoria Base Funding Review 14,356 14,135 Government grants for special projects 14,316 17,054 Program Initiatives (including tracks and trails and Good Neighbour programs) 843 1,627 Major works funding provided by the Department of Sustainability and Environment 26,378 26,144 Major works funding provided by the Department of Business and Innovation 6 114 Major works funding provided by the Department of Planning and Community Development 2 31 Major works funding provided by the Department of Transport 5,740 4,150 Total government funding 122,055 110,455

5 Interest

Interest from financial assets categorised as available for sale: Interest on bank deposits and other financial assets 5,327 5,856 Total interest 5,327 5,856

6 Fair value of assets received free of charge

Australian Grand Prix Corporation (AGPC) assets transferred from the Department of Business and Innovation 3,422 886 Corangamite Shire Council – Port Campbell assets – 1,291 Total fair value of assets received free of charge 3,422 2,177

7a Insurance income

Insurance claims 15,085 1,391 Total Insurance income 15,085 1,391

7b Other income

Accommodation/camping fees 4,159 4,416 Funding sponsored by external parties 1,063 870 Rent, leases and licences 7,510 6,848 External sales 2,222 2,357 Berthing/mooring fees 344 254 Cave tour fees 705 624 Fire suppression costs, recovered 5,618 3,738 Other 4,158 2,882 Total Other Income 25,779 21,989 Parks Victoria Annual Report 2011–2012 Page 75

Notes to the Financial Statements For the Financial Year ended 30 June 2012

2012 2011 $’000 $’000 8 Employee benefits expenses

Salaries, wages,termination benefits, annual leave and long service leave 79,685 73,827 *Superannuation – defined and accumulation plan 7,748 12,463 Fringe BenefitsT ax and payroll taxes 5,151 5,091 Other on-costs 1,265 1,380 Total Employee Benefits 93,849 92,761

*Parks Victoria contributions, in respect of its employees (including salary sacrifice) refer note 28

9 Depreciation and amortisation

Land improvements 1,679 1,946 Buildings and building improvements 3,959 2,090 Piers, jetties and river improvements 3,569 1,448 Plant and equipment 318 332 Intangibles 751 749 Total depreciation and amortisation 10,276 6,565

10 Contracts and external services

Contracts 89,113 68,004 Other external services 24,608 29,589 Total contracts and external services 113,721 97,593

11 Other operating expenses

Materials 6,465 6,817 Transport 5,863 8,670 Payments to government for revenue collected from national parks 6,037 6,317 Payments to local government, other agencies, community groups and for program operating costs 417 1,294 Insurance premiums 8,732 7,435 Payments for works sponsored by external parties 1,018 629 Other 3,365 1,959 Total other operating expenses 31,897 33,121

12 Other economic flows included in net esultr

(a) Net gain/(loss) on non-financial assets Impairment of property, plant and equipment – –

(b) Net gain/(loss) on financial instruments Provision for doubtful debts (257) (58) Reversal of unused provision – –

(c) Other gains/(losses) from other economic flows Net gain/(loss) arising from revaluation of long service liability due to changes in the bond interest rates (2,802) (1,263) Total other economic flows included in net result (3,059) (1,321) Page 76 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2012

2012 2011 $’000 $’000 13 Cash and deposits – current

Cash and deposits 58,423 47,648 Total cash and deposits 58,423 47,648

(a) Risk exposure Park Victoria's exposure to interest rate risk is discussed in note 33 (f). The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of cash and deposits mentioned in note 33 (d).

14 Receivables

Receivables – current Debtors* 15,177 7,536 Provision for doubtful debts (704) (449) Total receivables – current 14,473 7,087

Receivables – non-current

Other receivables 84 78

Total receivables – non-current 84 78 Total receivables 14,557 7,165

(a) Movement in the provision for doubtful receivables Balance at beginning of the year (449) (436) Reversal of unused provision recognised in the net result – – Increase in provision recognised in the net result (257) (58) Reversal of provision written off during the year as uncollectible 2 45 Balance at the end of the year (704) (449)

(b) Ageing analysis of contractual receivables Refer to note 33 (d) table 33.3 for the ageing analysis of receivables (except statutory receivables).

(c) Nature and extent of risk arising from contractual receivables Refer to note 33 (d) for the nature and extent of risks arising from contractual receivables.

* Debtors include $7.6m of insurance claims. Parks Victoria Annual Report 2011–2012 Page 77

Notes to the Financial Statements For the Financial Year ended 30 June 2012

2012 2011 $’000 $’000 15 Other financial assets

Available for sale financial assets Australian dollar term deposit > 3 months 50,000 50,000 Total Other Financial Assets – current 50,000 50,000

(a) Ageing analysis of financial assets Please refer to note 33 (d) table 33.3 for the ageing analysis of financial assets.

(b) Nature and extent of risk arising from other financial assets Please refer to note 33 (d) for the nature and extent of risks arising from investments and other financial assets.

16 Inventories – current

Stock on Hand (at cost) 159 114 Total Inventories 159 114

17 Property, plant and equipment – non-current 17a Classification by public safety and environment-carrying amounts Crown land, land and land improvements Crown land, land and land improvements 1,557,773 1,542,997 Less: accumulated depreciation (1,812) – Net crown land, land and land improvements 1,555,961 1,542,997

Buildings and building improvements Buildings and building improvements 81,100 80,510 Less: accumulated depreciation (4,115) – Net buildings and building improvements 76,985 80,510

Plant, equipment, machinery and vehicles Plant, equipment, machinery and vehicles 7,692 7,663 Less: accumulated depreciation (6,570) (6,251) Net plant, equipment, machinery and vehicles 1,122 1,412

Piers, jetties and river improvements Piers, jetties and river improvements 76,574 64,246 Less: accumulated depreciation (3,744) – Net piers, jetties and river improvements 72,830 64,246

Antiques At fair value 1,278 1,278 Closing balance – antiques 1,278 1,278

Works in progress At cost 14,654 28,591 Closing balance – works in progress 14,654 28,591

Net carrying amount of property, plant and equipment 1,722,830 1,719,034 Page 78 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2012

17b Classification by Public Safety and Environment – Carrying amounts

Crown land, land Buildings and building Plant, equipment, Piers, jetties and river & land improvements improvements machinery & vehicles improvements Antiques Works in progress Total 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Opening balance 1,542,997 1,268,103 80,510 93,440 1,412 1,707 64,246 73,468 1,278 1,268 28,591 17,660 1,719,034 1,455,646 Additions 14,643 29,402 434 797 28 104 12,153 1,273 – 10 4,641 11,566 31,899 43,152 Disposals – (167) – – – (6) – – – – – – – (173) Acquisitions through administrative restructure – – – – – – – – – – – – – – Transfer to assets classified as held for sale – – – – – – – – – – – – – – Net revaluation increments/ decrements – 247,567 – (11,660) – – – (9,047) – – – – – 226,860 Depreciation expense (1,679) (1,946) (3,959) (2,090) (318) (332) (3,569) (1,448) – – – – (9,525) (5,816) Impairment loss – – – – – – – – – – – – – – Asset transfer – – – – – – – – – – (18,578) (635) (18,578) (635) Other adjustments – 38 – 23 – (61) – – – – – – – – Closing balance 1,555,961 1,542,997 76,985 80,510 1,122 1,412 72,830 64,246 1,278 1,278 14,654 28,591 1,722,830 1,719,034

Crown land, land and land improvements Fair value assessments based on the indices supplied by the Department of Treasury and Finance have been performed for all classes of assets within this purpose group. Management has decided that movements were not material (less than or equal to 10 per cent) to record revaluation. The next scheduled full revaluation for this purpose group will be conducted in 2016.

Buildings and improvements, piers, jetties and river improvements Fair value assessments based on the indices supplied by the Department of Treasury and Finance have been performed for all classes of assets within this purpose group. Management has decided that movements were not material (less than or equal to 10 per cent) to record revaluation. The next scheduled full revaluation for this purpose group will be conducted in 2016.

Antiques For and on behalf of the office of the Valuer-General Victoria, the valuers for Colliers International Consultancy and Valuation Pty Limited, one a government approved valuer, the other a member of the Australian Property Institute of Certified Practising Valuers, determined that the most appropriate methodology for the revaluation ofA ntiques at fair value, was to assess the dollar value, with reference to the active and liquid antiques’ auction market, having regard to the highest and best use of the asset, for which market participants would be prepared to pay. These assets were revalued during a systematic three-year progressive revaluation process, conducted over the financial years ended 30 June 2003 to 30 June 2005. The William Ricketts Sanctuary is located in the Dandenong Ranges Gardens & contains over 70 in-ground aboriginal sculptures created by the late William Ricketts. The assets are of cultural and heritage significance.A valuation of these assets is not able to be determined. Parks Victoria Annual Report 2011–2012 Page 79

Notes to the Financial Statements For the Financial Year ended 30 June 2012

17b Classification by Public Safety and Environment – Carrying amounts

Crown land, land Buildings and building Plant, equipment, Piers, jetties and river & land improvements improvements machinery & vehicles improvements Antiques Works in progress Total 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Opening balance 1,542,997 1,268,103 80,510 93,440 1,412 1,707 64,246 73,468 1,278 1,268 28,591 17,660 1,719,034 1,455,646 Additions 14,643 29,402 434 797 28 104 12,153 1,273 – 10 4,641 11,566 31,899 43,152 Disposals – (167) – – – (6) – – – – – – – (173) Acquisitions through administrative restructure – – – – – – – – – – – – – – Transfer to assets classified as held for sale – – – – – – – – – – – – – – Net revaluation increments/ decrements – 247,567 – (11,660) – – – (9,047) – – – – – 226,860 Depreciation expense (1,679) (1,946) (3,959) (2,090) (318) (332) (3,569) (1,448) – – – – (9,525) (5,816) Impairment loss – – – – – – – – – – – – – – Asset transfer – – – – – – – – – – (18,578) (635) (18,578) (635) Other adjustments – 38 – 23 – (61) – – – – – – – – Closing balance 1,555,961 1,542,997 76,985 80,510 1,122 1,412 72,830 64,246 1,278 1,278 14,654 28,591 1,722,830 1,719,034

Crown land, land and land improvements Fair value assessments based on the indices supplied by the Department of Treasury and Finance have been performed for all classes of assets within this purpose group. Management has decided that movements were not material (less than or equal to 10 per cent) to record revaluation. The next scheduled full revaluation for this purpose group will be conducted in 2016.

Buildings and improvements, piers, jetties and river improvements Fair value assessments based on the indices supplied by the Department of Treasury and Finance have been performed for all classes of assets within this purpose group. Management has decided that movements were not material (less than or equal to 10 per cent) to record revaluation. The next scheduled full revaluation for this purpose group will be conducted in 2016.

Antiques For and on behalf of the office of the Valuer-General Victoria, the valuers for Colliers International Consultancy and Valuation Pty Limited, one a government approved valuer, the other a member of the Australian Property Institute of Certified Practising Valuers, determined that the most appropriate methodology for the revaluation ofA ntiques at fair value, was to assess the dollar value, with reference to the active and liquid antiques’ auction market, having regard to the highest and best use of the asset, for which market participants would be prepared to pay. These assets were revalued during a systematic three-year progressive revaluation process, conducted over the financial years ended 30 June 2003 to 30 June 2005. The William Ricketts Sanctuary is located in the Dandenong Ranges Gardens & contains over 70 in-ground aboriginal sculptures created by the late William Ricketts. The assets are of cultural and heritage significance. A valuation of these assets is not able to be determined. Page 80 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2012

17c Crown land, land and land improvements at fair value

2012 2011

2012 Area 2012 2011 Area 2011 Crown land (Hectares) $’000 (Hectares) $’000 Location You Yangs Regional Park 1,960 5,880 1,960 5,880 Devilbend Reservoir 1,005 39,990 1,005 39,990 Eildon Water Reserve 533 1,280 533 1,280 Dandenong Police Paddocks 499 164,670 499 164,670 Bays Assets* 498 Not Valued 498 Not Valued Lighthouse Reserves 329 2,170 329 2,170 Dandenong Ranges Gardens 278 2,670 278 2,670 Buchan Caves Reserve 260 390 260 390 Yarra Bend Park 260 210,600 260 210,600 Albert Park 229 858,750 229 858,750 Serendip Sanctuary 227 1,670 227 1,670 Plenty Gorge 222 9,484 222 9,484 Yarra Valley 139 111,010 139 111,010 Werribee Park 130 15,600 130 15,600 Vaughan Springs 100 180 100 180 Coolart 79 9,480 79 9,480 Mt Dandenong Observatory Reserve 72 2,160 72 2,160 Olinda Golf Course 34 510 34 510 Westgate 34 26,950 34 26,950 Maribyrnong Valley 22 6,090 22 6,090 Dandenong Valley 6 3,420 6 3,420 Peach Tree Creek 4 60 4 60 Point Cook / Cheetham 4 720 4 720 Herring Island 3 9,600 3 9,600 Queenscliff (not including Bays Assets* component) 3 1,800 3 1,800 Rosebud 1 600 1 600 San Remo 1 450 1 450 Point Gellibrand Heritage Park 17 27,967 17 27,967 Hopkins River, Willaura SS.R 4 38 – – Sandringham Boat Harbor 8 5,180 – – Princess Wharf 1 10 – – Total crown land 6,962 1,519,379 6,949 1,514,151

* Represents sea beds located at Swan Bay (220 Ha), Queenscliff (137 Ha) and 141 Ha being sea beds under 31 piers located within Port Phillip Bay and Western Port Bay.

Land and land improvements

2012 2011

Total land and land improvements at fair value 36,582 28,846 Total crown land, land and land improvements 1,555,961 1,542,997 Parks Victoria Annual Report 2011–2012 Page 81

Notes to the Financial Statements For the Financial Year ended 30 June 2012

18 Intangible assets – non-current

Computer software Total

2012 2011 2012 2011 $’000 $’000 $’000 $’000 Gross carrying amount Opening balance 7,510 7,481 7,510 7,481 Additions – 29 – 29 Closing balance 7,510 7,510 7,510 7,510

Accumulated amortisation and impairment Opening balance 1,184 435 1,184 435 Amortisation expense 751 749 751 749

Closing balance 1,935 1,184 1,935 1,184 Net book value at end of financial year 5,575 6,326 5,575 6,326

2012 2011 $’000 $’000 19 Other non-financial assets – current

Prepayments 16 322 Total other non-financial assets 16 322

20 Payables Unsecured creditors and accruals 28,597 20,217 Total payables 28,597 20,217

(a) Maturity analysis of contractual payables Please refer to note 33 (e) table 33.4 for the maturity analysis of contractual payables.

(b) Nature and extent of risk arising from contractual payables Please refer to note 33(e) for the nature and extent of risks arising from contractual payables. Page 82 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2012

2012 2011 $’000 $’000 21 Provisions

(a) Current provisions Employee benefits Annual leave entitlements 6,510 6,725 Long service leave – unconditional and expected to be settled within 12 months 2,061 2,037 Long service leave – unconditional and expected to be settled after 12 months 18,677 16,496 27,248 25,258 Provisions related to employee benefit on-costs Annual leave entitlements 1,284 1,185 Long service leave – unconditional and expected to be settled within 12 months 363 358 Long service leave – unconditional and expected to be settled after 12 months 3,290 2,899 4,937 4,442 Total current provisions 32,185 29,700

(b) Non-current provisions Employee benefits – long service leave 2,103 1,932 2,103 1,932 Provisions related to employee benefit on-costs Provisions related to employee benefit on-costs – long service leave 371 339 371 339

Total non-current provisions 2,474 2,271 Total employee benefits and related on-costs 34,659 31,971 Total provisions 34,659 31,971 Parks Victoria Annual Report 2011–2012 Page 83

Notes to the Financial Statements For the Financial Year ended 30 June 2012

2012 2011 $’000 $’000 22 Deferred revenue

Current 54,107 52,478 Non-current 26,006 28,484 Total deferred revenue 80,113 80,962

The June 2011 deferred revenue balance has been restated as $80.962m after making a correcting adjustment of $4.430m. The correcting adjustment correspondingly decreased the accumulated deficit balance at June 2011.

23 Physical asset revaluation surplus

Movement in physical asset revaluation surplus Opening balance 1,128,678 901,818 Revaluation of Parks Victoria assets: Crown land, land and land improvements – 247,567 Buildings and building improvements – (11,660) Piers, jetties and river improvements – (9,047) Net revaluation increment on Parks Victoria assets – 226,860 Total physical asset revaluation surplus 1,128,678 1,128,678

24 Contributed capital

Opening balance 619,546 587,667 Cash transferred – DSE * 5,741 4,076 Point Gellibrand Heritage Park assets transferred from DSE – 27,967 River Red Gum assets transferred from DSE – 3 Orbost Rain Forest Centre asset transferred to DSE – (167) Hopkins River assets transferred from DSE 38 – Sandringham Boat Harbor assets transferred from DSE 5,180 – Princess Wharf assets transferred from DSE 10 – Net movement in Contributed Capital 10,969 31,879 Total contributed capital 630,515 619,546

* The cash transferred for State appropriations – Asset replacement and renewal, Parks Reserve Trust Asset replacement and renewal, and office accommodation/depot for fire fighters. Page 84 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2012

2012 2011 $’000 $’000 25 Cash flow information

(a) Reconciliation of cash and deposits Total cash and deposits disclosed in the balance sheet 58,423 47,648 Bank overdraft – – Balance as per cash flow statement 58,423 47,648

(b) Non-cash financing and investing activities Restructuring of administrative arrangements Transfer of Assets – Sandringham Boat Harbor (2012) Point Gellibrand Heritage Park (2011) 5,228 27,967

(c) Reconciliation of net results for the period to net cash flows from operating Activities Net result for the period (803) (12,361) Non-cash movements: Depreciation and amortisation for the year 10,276 6,565 Provision for doubtful debts 257 58 Net assets (received) / provided free of charge (3,422) (2,177) Loss / (gain) on sale, retirement and / or revaluation of assets – – Change in assets and liabilities: Decrease/(increase) in receivables (7,647) 2,438 Decrease/(increase) in inventories (45) 24 Decrease/(increase) in other non-financial assets 307 (242) Increase/(decrease) in provisions 3,252 7,677 Increase/(decrease) in payables 11,040 (878) Increase/(decrease) in deferred revenue (848) 8,364 Net Cash from/(used in) operating activities 12,367 9,468

(d) Credit card and merchant facilities Total credit card facility 2,000 2,000 Total merchant facility 370 370

26 Contingent liabilities and contingent assets

(a) Contingent liabilities – other outstanding claims There are no material claims against Parks Victoria arising out of matters connected with its operating activities.

(b) Contingent assets There are no claims lodged by Parks Victoria arising out of matters connected with its operating activities. Parks Victoria Annual Report 2011–2012 Page 85

Notes to the Financial Statements For the Financial Year ended 30 June 2012

2012 2011 $’000 $’000 27 Commitments

(a) Capital commitments Value of commitments for capital expenditure at 30 June 2012 for the supply of works, services and materials not provided for in the financial statements:

Not later than one year 5,961 199 Later than one year and not later than five years – – Later than five years – – Total capital commitments 5,961 199

(b) Lease commitments Total expenditure contracted for at balance date but not provided for in the financial statements in relation to non-cancellable operating leases is as follows:

Not later than one year 10,909 11,190 Later than one year and not later than five years 18,450 20,021 Later than five years 6,947 7,866 Total non-cancellable operating leases 36,306 39,077

Leasing arrangements Operating leases relate to building facilities with lease terms of between three to seven years, with an option to extend for a further three years. All operating lease contracts contain market review clauses in the event that Parks Victoria exercises its option to renew. Parks Victoria does not have an option to purchase the leased asset at the expiry of the lease period.

28 Superannuation

Parks Victoria contributes, in respect of its employees (including salary sacrifice), to the superannuation schemes as follows:

2012 2011 Scheme Type of scheme $’000 $’000 Defined benefit plans: Vision Super Defined 1,118 1,194 Other Defined 1,762 1,866

Accumulation plans: Vision Super Accumulation 2,928 3,013 Vic Super Accumulation 1,900 1,827 Other Accumulation 2,022 1,612 Total contributions to all funds 9,730 9,512

As at the reporting date, there were no outstanding contributions payable to the above funds. However there is a separate provision made in regards to defined benefits plan (refer note 29(c)). Page 86 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2012

29 Defined superannuation benefit Defined benefit superannuation The Vision Super superannuation fund provides lump sum benefits based on length of service and final superannuable salary for employees engaged up until 31 December 1993. Employees contribute at rates between 0 to 7.5 per cent of their superannuation salary. Parks Victoria contributes to the fund based on its commitments under the Employee Participation Agreement and Contribution Policy with the trustee of the fund.

2012 2011 $’000 $’000 (a) Reconciliation of the present value of the defined benefit obligation Balance at the beginning of the year 35,203 36,076 Current service cost 1,215 1,331 Interest cost 1,501 1,517 Contributions by plan participants – – Actuarial gain/(Loss) 522 (2,337) Benefits paid (2,513) (1,188) Taxes and premiums paid (195) (196) Transfers in – – Present value of the defined benefit obligation at the end of the year 35,733 35,203

(b) Reconciliation of the fair value of plan assets Balance at the beginning of the year 29,894 26,340 Expected return on plan assets 2,449 2,243 Actuarial gain/(loss) (1,536) 1,224 Employer contributions 1,297 1,306 Contributions by plan participants 353 407 Benefits paid (2,513) (1,188) Plan expenses (232) (242) Taxes and premiums paid (195) (196) Transfers in – – Fair value of plan assets at the end of the year 29,517 29,894

(c) Reconciliation of the assets and liabilities recognised in the balance sheet Present value of the defined benefit obligation 35,733 35,203 Less: fair value of plan assets (29,517) (29,894) Plus: on-costs – 340 Net superannuation liability/(asset) 6,216 5,649

Defined contribution superannuation Employees engaged from 1 January 1994 are entitled to benefits under accumulation funds. Employees have the opportunity to make personal contributions to the funds at a self-nominated rate or amount. The minimum employer contribution to the fund, pursuant to the Superannuation Guarantee Charge was 9.0 per cent in 2011/12 (2010/11: 9.0 per cent). Parks Victoria has recognised a liability in the Balance Sheet in respect of its defined superannuation benefit arrangements at 30 June 2012. If a surplus exists in the plan, Parks Victoria may be able to take advantage of it in the form of a reduction in the required contribution rate, depending on the advice of the plan’s actuary. If a deficit exists in the plan, Parks Victoria may be required to increase the required contribution rate, depending on the advice of the plan’s actuary consistent with the plan’s deed. Parks Victoria made a contribution of $450k in 2011–12 ($450k 2010–11). Parks Victoria Annual Report 2011–2012 Page 87

Notes to the Financial Statements For the Financial Year ended 30 June 2012

2012 2011 $’000 $’000 (d) Expense recognised in the statement of comprehensive operating statement Service cost 1,215 1,331 Member contribution (353) (407) Interest cost 1,500 1,517 Expected return on plan assets (2,449) (2,243) Plan expense 232 242 Actuarial (gain)/loss recognised in year 2,058 (3,561) Total superannuation expense/(income) (Note 8) 2,203 (3,121)

(e) Fair value of plan assets The fair value of plan assets includes no amounts relating to: a) any of Parks Victoria's own financial instruments; b) any property occupied by, or other assets used by, Parks Victoria.

(f) Expected rate of return on plan assets The expected return on plan assets assumption is determined by weighting the expected long-term return for each asset class by the target allocation of assets to each asset class and allowing for the correlations of the investment returns between asset classes. The returns used for each asset class are net of investment tax and investment fees. An allowance for administration expenses has also been deducted from the expected return.

(g) Principal actuarial assumptions at the balance sheet date Discount rate (gross of tax) 3.00% p.a 5.21% p.a Expected return on assets 7.50% p.a 8.50% p.a Average salary increased rate 3.00% p.a 4.25% p.a Page 88 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2012

30 Volunteer resources provided free of charge In 2011–12 volunteers contributed in excess of 25,500 days of voluntary labour on Parks Victoria managed land. Volunteers including friends groups, individuals, schools, corporate volunteers and special interest groups, provided valuable support to Parks Victoria through their voluntary participation in a range of park management projects and ongoing maintenance across approximately 130 parks and reserves. No estimate of the value of these resources has been included in the financial report as there is no practical way of determining an appropriate valuation basis.

2012 2011 $’000 $’000 31 Auditor's remuneration

Amounts paid/payable to: Victorian Auditor-General’s Office for the audit of the financial statements 67 65

32 Responsible persons and executive officer disclosures

(a) Responsible persons The names of persons who were board members at any time during the financial year ended 30 June 2012 were: C Ballenden, D Cavagna, A Fairley, N Harvey, K King, G Phibbs, and P Sanderson. The name of the responsible Minister from 1 July 2011 to 30 June 2012 was Ryan Smith MP, Minister for Environment and Climate Change. The name of the accountable officer for the whole of the financial year ended 30 June 2012 was B Jackson.

(b) Remuneration Remuneration received or receivable by the Accountable Officer in connection with the management of Parks Victoria during the reporting period was in the range:

$320,000 to $329,999 (2011–12) 1 $110,000 to $119,999 (2010–11)* 1 $140,000 to $149,999 (2010–11)* 1

* The 2010–11 year comprised the full year's remuneration for the outgoing and incoming Chief Executive.

2012 2011 $’000 $’000 (c) Board members remuneration Total remuneration received or due and receivable by Board Members from the reporting entity was: 135 220

Number Number

The number of Board Members of the reporting entity included in this figure is as below: Income of: $0 to $9,999 2 – $10,000 to $19,999 – 3 $20,000 to $29,999 5 5 $40,000 to $49,999 – 1 Parks Victoria Annual Report 2011–2012 Page 89

Notes to the Financial Statements For the Financial Year ended 30 June 2012

(d) Executive officers remuneration The number of executive officers, other than Ministers and Accountable Officers, 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, redundancy payments and retirement benefits. A number of employment contracts were completed during the year and renegotiated and a number of executives received bonus payments during the year. These bonus payments depend on the terms of individual employment contracts. Some contracts provide for an annual bonus payment whereas other contracts only include the payment of bonuses on the successful completion of the full term of the contract.

Total Base

2012 Number 2011 Number 2012 Number 2011 Number

$100,000 to $109,999 – 1 – 1 $130,000 to $139,999 2 – 3 – $140,000 to $149,999 1 – 1 1 $150,000 to $159,999 2 1 3 1 $160,000 to $169,999 3 1 2 3 $170,000 to $179,999 1 2 2 3 $180,000 to $189,999 2 3 1 2 $190,000 to $199,999 1 1 1 3 $200,000 to $209,999 1 4 – – $210,000 to $219,999 – 1 1 – $230,000 to $239,999 1 – – – $260,000 to $269,999 – – 1 – $290,000 to $299,999 1 – – – Total numbers* 15 14 15 14 Total amount ($ ‘000) 2,704 2,642 2,574 2,473

* Current year executive numbers include four executive officers terminated during the period and their entitlements paid in 864 – 805 – accordance with their contracts.

Executive officer base remunerations were reviewed by theG overnment Senior Executive Remuneration Panel (GSERP) and increases paid in accordance with Government guidelines.

(e) Other transactions of board members and board member-related entities 2012 2011 $’000 $’000 Other Transactions of Board Members and Board Member-related entities Nil Nil Page 90 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2012

33 Financial instruments

(a) Financial risk management objectives Parks Victoria’s activities expose it primarily to the financial risks of changes in interest rates. Parks Victoria does not enter into derivative financial instruments to manage its exposure to interest rate risk. Parks Victoria does not enter into or trade financial instruments, including derivative financial instruments for speculative purposes as per the Victorian Governments Borrowing and Investment Powers Act 1987 and subsequent amendments. The policies for managing this risks is discussed in more detail below.

(b) Significant accounting policies 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, in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 2 to the financial statements. The carrying amounts of Park Victoria's financial assets and financial liabilities by category are in Table 33.1 below.

Table 33.1: Categorisation of financial instruments 2012 2011 Note Category $’000 $’000 Financial assets Cash and deposits 13 Loans and receivables (at amortised cost) 58,423 47,648 Receivables 14 Loans and receivables (at amortised cost) 2,101 3,868 Other financial assets 15 Available-for-sale financial assets (at fair value) 50,000 50,000

Financial liabilities Payables 20 At amortised cost 28,597 20,217

Note: (a) The amount of receivables disclosed here exclude statutory receivables (i.e. amounts owing from Victorian Government and GST input tax credit recoverable). For 2012 this was $12.5M (2011 $3.3M).

(c) Significant terms and conditions There are no other significant terms and conditions applicable to Parks Victoria, in respect of each class of financial asset, financial liability and equity instrument, except those required by FRD 114A Financial Instruments.

(d) Credit risk Credit risk arises from the financial assets of Parks Victoria, which comprise cash and cash equivalents, trade and other receivables, and available-for- sale financial assets. Parks Victoria’s exposure to credit risk arises from the potential default of counter party on their contractual obligations resulting in financial loss to the agency. Credit risk is measured at fair value and is monitored on a regular basis. Credit risk associated with the agency’s financial assets is minimal because the main debtor is the Victorian Government. For debtors other than government, it is Parks Victoria’s policy to only deal with entities with high credit ratings and to obtain sufficient collateral or credit enhancements where appropriate. In addition, the agency does not engage in hedging for its financial assets and mainly obtains financial assets that are on fixed interest. The agency’s policy is to only deal with banks with high credit ratings. Provision for doubtful debts is recognised when there is objective evidence that Parks Victoria will not be able to collect a receivable. Objective evidence includes financial difficulties of the debtors default payments, debts which are more than 90 days overdue and changes in debtor’s credit ratings. Except as otherwise detailed in the following table, the carrying amount of contractual financial assets recorded in the financial statements, net of any allowances for losses, represents Parks Victoria’s maximum exposure to credit risk without taking account of the value of any collateral obtained. Parks Victoria Annual Report 2011–2012 Page 91

Notes to the Financial Statements For the Financial Year ended 30 June 2012

Table 33.2: Credit quality of contractual financial assets that are neither past due nor impaired

Financial Government Government institutions agencies agencies Double-A credit Triple-A credit Triple-B credit rating rating rating Other Total $’000 $’000 $’000 $’000 $’000 2012 Cash and deposits 58,433 – – – 58,433 Receivables – 1,083 – – 1,083 Investments and other financial assets – 50,000 – – 50,000 Total contractual financial assets 58,433 51,083 – – 109,516

2011 Cash and deposits 47,648 – – – 47,648 Receivables – 2,783 – – 2,783 Investments and other financial assets – 50,000 – – 50,000 Total contractual financial assets 47,648 52,783 – – 100,431

Note: (i) The total amounts disclosed here exclude statutory amounts (e.g. amounts owing from Victorian Government and GST input tax credit recoverable).

Financial assets that are neither past due nor impaired Currently, Parks Victoria hold $261k as a security deposit relating to its financial assets. As at the reporting date, there is $704k of receivables that have been assessed as impaired. There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and they are stated at the carrying amounts as indicated. The following table discloses the ageing only of financial assets that are past due but not impaired, and impaired financial assets.

Table 33.3: Ageing analysis of financial assets(a)

Past due but not impaired

Not past due and Less than Carrying amount not impaired 1 Month 1–3 months 3 months – 1 year 1–5 years $’000 $’000 $’000 $’000 $’000 $’000 2012 Other receivables 2,101 1,083 310 244 – 464 2,101 1,083 310 244 – 464 2011 Other receivables 3,868 2,783 342 314 – 429 3,868 2,783 342 314 – 429

Note: (a) Ageing analysis of financial assets excludes statutory receivables (e.g. amounts owing from VictorianG overnment and GST input tax credit recoverable). Page 92 FINANCIAL REPORT

Notes to the Financial Statements For the Financial Year ended 30 June 2012

(e) Liquidity risk Liquidity risk arises when the Park Victoria is unable to meet its financial obligations as they fall due. Park Victoria 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. It also continuously manages risks through monitoring future cash flows and maturities planning to ensure adequate holding of high quality liquid assets and dealing in highly liquid markets. Parks Victoria’s exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of risk. Cash for unexpected events is generally sourced from liquidation of available-for-sale financial investments. The following table discloses the contractual maturity analysis for the Park Victoria’s financial liabilities

Table 33.4: Interest rate exposure and maturity analysis of financial liabilities

Maturity dates

Non Interest Less than Carrying amount Bearing 1 month 1–3 months 3 months–1 year 1–5 years $’000 $’000 $’000 $’000 $’000 $’000 2012 Amounts payable 1,669 1,669 1,669 – – – to other government agencies Other payables 26,928 26,928 26,928 – – – 28,597 28,597 28,597 – – – 2011 Amounts payable to 3,448 3,448 3,448 – – – other government agencies Other payables 16,769 16,769 16,769 – – – 20,217 20,217 20,217 – – –

(f) Market risk Parks Victoria’s exposures to market risk are primarily through interest rate risk with only insignificant exposure to foreign currency risk.A sensitivity analysis has been prepared for interest rate risk, as it is deemed as a significant market risk on the return to Parks Victoria. Objectives, policies and processes used to manage each of these risks are disclosed in the paragraphs below.

Interest rate risk The 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 carrying amount of financial assets that are exposed and its sensitivity to interest rates is set out in table 33.5.

Table 33.5: Interest rate market risk exposure

Interest rate risk

Net Result Net Result $’000 $’000 Financial assets: 2012 -50 basis points +50 basis points Other financial assets – based on actual 2011–12 closing balance (542) 542 Carrying amount $108.4M @ 30 June 2012

Financial assets: 2011 -50 basis points +50 basis points Other financial assets – based on budgeted 2010–11 closing balance (488) 488 Carrying amount $97.6M @ 30 June 2011 Parks Victoria Annual Report 2011–2012 Page 93

Notes to the Financial Statements For the Financial Year ended 30 June 2012

Cash, deposits & investments include cash and deposits of $58.4M and investments of $50.0M, however due to a similar interest rate on both amounts, the interest rate risk analysis has been applied on the combined total of $108.4M, on the estimate that the minimum interest rate decrease will be 0.50 % and the maximum increase will be 0.50 % . Exposure to interest rate risk is reduced as funds are held in fixed interest term deposits. The weighted average cash interest rate earned for 2011–12 was 4.74% (2010–11 5.04%).

Foreign currency risk Parks Victoria is exposed to insignificant foreign currency risk through its payables relating to purchases of supplies and consumables from overseas. This is because of a limited amount of purchases denominated in foreign currencies and a short timeframe between commitment and settlement.

(g) Fair value The fair values and net fair values of financial assets and financial liabilities are determined as follows: • the fair value of financial assets and financial liabilities with standard terms and conditions and traded in active liquid markets are determined with reference to quoted market prices; and • the fair value of other financial assets and financial liabilities are determined in accordance with generally accepted pricing models based on discounted cash flow analysis. Parks Victoria considers that the carrying amount of financial instruments assets and liabilities recorded in the financial statements to be a fair approximation of their fair values, because of the short-term nature of the financial instruments and the expectation that they will be paid or received in full.

The carrying values and fair values of financial assets and liabilities at balance date are:

Total carrying amount Aggregate fair value as per balance sheet 2012 2011 2012 2011 $’000 $’000 $’000 $’000 Cash and cash equivalents 58,423 47,648 58,423 47,648 Receivables 2,101 3,868 2,101 3,868 Other financial assets 50,000 50,000 50,000 50,000 Total financial assets 110,524 101,516 110,524 101,516 Payables 28,597 20,217 28,597 20,217 Total financial liabilities 28,597 20,217 28,597 20,217

34 Committed funds

2012 2011 $’000 $’000 Total funds 108,423 97,648

Committed cash and Investments Government asset and initiative funding 47,299 42,394 Point Nepean park establishment 16,731 21,448 Fire and flood programs (incl. insurance) 21,003 17,370 Sponsored works 16,628 10,654 Government recurrent funding – 4,400 Total committed cash 101,661 96,266

These commitments are for complex projects that span greater than one financial year. Parks Victoria receives significant funding in advance from many sources and manages its cash to ensure its capacity to meet immediate financial commitments as they arise.

35 Post balance date events

It is expected that Parks Victoria’s future financial sustainability will be the subject of a review to be undertaken by the Minister for Environment and Climate Change, the Treasurer and senior officers from the Department of Treasury and Finance, the Department of Sustainability and Environment and Parks Victoria in the first half of 2012/13. Page 94 FINANCIAL REPORT

Statutory Certificate Parks Victoria Annual Report 2011–2012 Page 95

Auditor’s Report Page 96 FINANCIAL REPORT

Auditor’s Report Parks Victoria Annual Report 2011–2012 Page 97

Appendix 1

Disclosure summary Parks Victoria’s 2011–12 Annual Report is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the organisation’s compliance with statutory disclosure requirements.

Legislation Requirement Page

Charter and purpose

FRD22B Manner of establishment and the relevant Minister 6 FRD22B Objectives, functions, powers and duties 6 FRD22B Nature and range of services provided 7

Management and structure

FRD22B Organisational structure 7

Financial and other information

FRD10 Disclosure index 97 FRD12A Disclosure of major contracts 52 FRD22B Objectives and performance against objectives 42 FRD22B Employment and conduct principles 47 FRD22B Occupational health and safety 48 FRD22B Summary of the financial results for the year 45 FRD22B Significant changes in financial position during the year 45 FRD22B Major changes or factors affecting performance 43 FRD22B Subsequent events 43 FRD22B Application and operation of the Freedom of Information Act 1982 51 FRD22B Compliance with building and maintenance provisions of the Building Act 1993 52 FRD22B Statement on National Competition Policy 52 FRD22B Details of consultancies under $10,000 52 FRD22B Details of consultancies over $10,000 52 FRD22B Statement of availability of information 51 FRD 25 Victorian Industry Participation Policy Disclosure in the Report of Operations 52 FRD29B Workforce Data disclosures 46 SD 4.5.5. Risk management attestation 5

Financial Statements required under Part 7 of FMA

SD 4.2 (a) Statement of changes in Equity 56 SD 4.2 (b) Comprehensive Operating Statement 54 SD 4.2 (b) Balance sheet 55 SD 4.2 (b) Cash flows statement 57

Other requirements under Standing Directions

SD 4.2(a) Statement of compliance 59 SD 4.2 (d) Rounding of amounts 69 Page 98 APPENDICIES

Legislation Requirement Page

Other disclosures as required by FRDs in notes to the financial statements

FRD21A Responsible person and executive officer disclosures 88–89 FRD102 Inventories 63,77 FRD103D Non-current physical assets 77 FRD106 Impairment of assets 65 FRD109 Intangible assets 81 FRD110 Cash flow statement 57 FRD112A Defined benefit superannuation obligations 86 Financial instruments – General government entities and public non-financial 90–93 FRD114A corporations FRD119 Contributions by owners 83

Legislation

Freedom of Information Act 1982 51

Building Act 1983 52

Whistleblowers Protection Act 2001 51

Victorian Industry Participation Policy Act 2003 52

Financial Management Act 1994 94

Right: Downhill mountain bike racing on new tracks in You Yangs Regional Park

Parks Victoria Level 10, 535 Bourke Street, Melbourne, Australia www.parks.vic.gov.au or call 13 19 63