Mount Buller and Mount Stirling Alpine Resort Management Board Annual Report 2012–13 Contents

Introduction

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

Overview

Entity Information 4 Year at a Glance 5

Organisational Structure

Board of Directors 6 Resort Management Team 8 Organisational Chart 9

Strategic Direction and Operations

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

Financial Statements

2012–13 Financial Statements 28 Notes to Financial Statements 32 Independent Auditors Report 59 Disclosure Index IBC

In accordance with the Financial Management Act 1994, I am pleased to present the Mount Buller and Mount Stirling Alpine Resort Management Board Annual Report for the year ending 31 October 2013.

Jennifer Hutchison Chairman Mount Buller and Mount Stirling Alpine Resort Management Board 5 February 2014 Annual Report 2012–13 1

Message from the Chairman

This has been a year of consolidation and steady progress. Here are some of the things that have occupied your RMB in 2012-13:

The new government alpine policy, Winter remains our ‘engine They bring substantial experience adopted in December 2012, room’ and we continue to in planning, development and sits comfortably with the RMB provide services, plan for future major projects; regional tourism with Key Performance Indicators development, cooperate with management and best business across all resorts but tailored to our winter product suppliers and practice; and audit, finance and our individuality now decided, stakeholder groups, and improve governance. With myself as agreed and in place. We continue the snow play and snow sports Chairman and Dr Kate Brooks to deliver on the strategic plans experience for our visitors as we the Board is now complete. for each resort, within a single all travel together on the road to This team is committed to best reporting structure and integrated a sustainable future for the two practice directorship and upholds corporate processes. destinations. the trust and integrity placed In July this year we announced Summer visitation and green on them, in exemplary fashion. a robust and ambitious project season product provision continue In addition to scheduled Board for the establishment of greater to grow, in particular through meetings and activities, all Board water storage for Mount Buller. mountain biking, and via major members have taken on additional Securing effective water supply events such as Targa. This year responsibilities by serving on for snowmaking continues to be has seen the establishment of the at least one sub committee of a requirement for a sustainable EPIC Trail and the raised profile of the Board, including the newly winter product. An engineering Mount Buller via its International formed Future Business Modeling Committee which will focus on company has recently been Mountain Bicycling Association the changes to our economic appointed to a ‘design and build’ (IMBA) status. The changing face and climate landscape and contract for this essential project. of what used to be called the ‘off the opportunities and special season’ has seen two properties in We have continued to step circumstances these changes may the Mount Buller village sold to non through the painstaking process provide for us. In addition some snow sport, summer visitors this of bringing the Buller Stirling Link Board members sit on external past year. This is very encouraging. Road project to fruition. As this committees and Boards on our report goes to print, the necessary We continue to work with our behalf. The work load is substantial public consultation phase of the stakeholder groups, to include and I remain grateful for this final proposal will be complete, them whenever and wherever we commitment. the last step before a Planning can, to foster good relationships, In closing, I would like to Permit is issued. to negotiate and deal fairly, and to acknowledge the positive and demonstrate at every opportunity We have had involvement in the supportive professional culture that we will keep the best interests refreshment of the administration in existence within the RMB. This of the whole in managing the and delivery of the Subaru embraces a seamless pathway resorts’ parts. Victorian Interschools Competition. of mutual respect to and from the A newly established business unit Which brings me to our current Board, the CEO John Huber, his provides broader stakeholder Board, a real power house of skills, Executive Team, and every team input and responsibility for its experience and professionalism. I member. I share in the pride. continued success and growth, congratulate the reappointment of and combines funding from the Board members Deputy Chairman, RMB, Chamber of Commerce, Dean Belle and Bryce Moore, Ratepayers Association and and welcome three new Board Jennifer Hutchison Buller Ski Lifts. members; Andy Evans, John Chairman Lithgow and Elaine Farrelly. Mount Buller and Mount Stirling Alpine Resort Management Board 2

Chief Executive Officer’s Report I would firstly like to welcome our new Board members Andrew Evans, John Lithgow, appointed 4 June 2013, and Elaine Farrelly, appointed 16 August 2013. I would also like to welcome back to the Board for a second term, Deputy Chairman Dean Belle and Bryce Moore, reappointed 4 June 2013. I have found the great experience, enthusiasm and love for the Alps of the new Board members has matched in well with the comprehensive skills of existing board members Dr Kate Brooks and our Chairman Jennifer Hutchison. I would also like to farewell outgoing Board members Richard Brooks and Lea Corbett. Thank you both for your valuable support and guidance over the years. Introduction

Winter 2013 opening weekend. The next part international recognition and The 2013 snow season delivered of the implementation phase will certification to the expansive less than favourable natural focus on the detailed analysis that and quality mountain biking offer snowfalls, however, Mount will underpin the more strategic available across both Mount Buller Buller’s extensive snowmaking projects such as the development and Mount Stirling. of world class snow play facilities infrastructure enabled the season In addition, a substantial capital at Horsehill, the Valley North to have a consistent snow product works program was completed, Parking facility and the Horsehill through to late September. with a strong focus on improving to Village gondola. The limited natural snow public amenity. Key projects contributed to resort visitation Achievements included the refurbishment of the Snow Play Parks, Stage 1 being slightly down with 272,049 In a year that has been Refurbishment of Cow Camp visitors in 2012 to 253,647 in 2013. emphasised by low natural Plaza, key water and sewage However, visitor numbers at snowfall resulting in a marginal infrastructure improvements Mount Stirling finished slightly decrease in visitation from the and improved guest amenities higher, with 5,304 visitors up previous year, Resort Management at Mount Stirling. from 5,153, the previous winter. has practised good cost control and efficient financial management During 2012-13, we were Resort Master Plan which has enabled an operating very pleased to complete the The Mount Buller Resort surplus. Together with the Resort development, and release, of Master Plan is now well into Master Plan, this continues to the Mount Buller Mount Stirling its implementation phase establish a good position for Strategic Management Plan and continues to guide the reinvestment into capital and 2013-18 (SMP). The SMP outlines resort’s development over recurrent programs and the the strategic Vision, Focus Areas the next 10–15 years as well continued development of the and Commitments for the Resort as providing confidence for resort. Management Board over the individual stakeholders to commit next five years. Together with 2012-13 saw the continuation of investment dollars to the mountain. the Alpine Resorts Strategic Plan an expanded summer events and 2012 and the Mount Buller Resort A number of Master Plan projects activities schedule, as well as Master Plan, the SMP identifies have already been completed, cementing our title as Australia’s the strategic objectives and including Athlete’s Walk, Black number one mountain biking directions for the promotion, Forest Walk, the Resort Reception destination. In February 2013, management, use and and Interpretive Centre at Alpine Mount Buller was announced as development of the resorts. Central along with the complete the first International Mountain redevelopment of the YHA site, Bicycling Association (IMBA) Innovative and best practice which was officially opened as certified ride centre in Australia. environmental management Buller Central by Minister Smith This prestigious award gives programs continued to benefit Annual Report 2012–13 3

Key financial data 2011–12 2012–13 Change ‘000 ‘000 ‘000

Net Result 81 270 189

Total operating expenditure 12,027 12,106 79

Gas and electricity 729 726 (3) Finance costs 139 124 (15) (Gain)/loss on disposal of assets (134) (90) 44 Health 242 234 (8) Depreciation 1,502 1,644 142 Staff costs 3,486 3,788 302

Cash on hand 7,908 5,809 (2,099)

the resorts during 2012–13. The water storage facility will ensure Acknowledgements ‘Living Bin’ organics management the security of both potable and The role of leading the Resort system recovered the highest snowmaking water on Mount Management team involves, amount of food waste since the Buller for the coming years. among other things, attempting to beginning of the program in 2010, The Buller Stirling Link Road satisfy the desire, expectations and further reducing the amount of moved ahead strongly and needs of its many stakeholders waste going into landfill. The construction on this project is and in that regard I would like to Mountain Pygmy-possum trans- scheduled to commence in the acknowledge the input and support location program continued 2013-14 period. This important of the Department of Environment with monitoring for the year link road, providing an improved and Primary Industries, the indicating very strong growth in connection between the two Department of Transport, Planning the population, and the eradication resorts, will enhance the visitor and Local Infrastructure, Buller Ski of the noxious plant Hawke Weed experience whilst also providing Lifts, the Mount Buller Chamber continues to improve with only a very important alternative of Commerce, the Mount Buller three sites discovered containing emergency access and egress Ratepayers Association, Stirling route for the resorts in the event the weed, giving a reduction of Experience and many others in of a fire or natural disaster. 66% on the previous year. this endeavour. Further priorities ahead include Priorities ahead I would also like to acknowledge the completion of Stage II of the Along with delivering a Cow Camp Plaza visitor facility the support and dedication comprehensive capital works and the design of an additional afforded to me by the Resort program, we will continue snow play area within the Village Management team. Their hard the planning and design of a precinct. Also scheduled for work and dedication has allowed supplementary water storage commencement in 2013-14 is the organisation to deliver some facility at Mount Buller, and the the construction of an IMBA EPIC outstanding results and to Buller-Stirling Link Road. Both of mountain bike trail, the first of its distinguish itself as a leader these key infrastructure projects kind in Australia, offering a 40km in alpine resort management. achieved significant focus and long distance, cross country, movement during 2012-13, with descending trail ride. works on these projects scheduled to begin in the 2013-14 period. Additional development of initiatives and events to encourage An implementation plan has been year round visitation will continue created for the development of while securing the winter economic the supplementary water storage engine of the resorts through facility on Mount Buller, with works enhancement of Mount Buller and scheduled to commence during Mount Stirling product offerings John Huber the 2013-14 period. The new and brands. Chief Executive Officer 4

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

The RMB was established in 2004 the discharge of its functions, Introduction Overview by an amendment to the Alpine duties or power and undertakes to Resorts (Management) Act 1997 adopt best practice in all activities, (The Act), succeeding the separate reporting to the Minister through Mount Buller Resort Alpine the Annual Reports, the Corporate Management Board and the Mount Plan and Quarterly Financial ——Charge contributions for the Stirling Alpine Resort Management Reports. provision of those services; Board. The RMB is charged under ——Collect fees prescribed by the The RMB also complies with the Act with managing the Mount Regulations for the Resorts; the directions of the Minister for Buller and Mount Stirling Alpine Finance and acts as a referral ——Attract investment for the Resorts. authority for development matters. improvement of the Resorts; The RMB operates under the ——Carry out any other function provisions of the Act and is Functions of the RMB conferred on the RMB under the established: As set out in Section 38 of the Act, Act or any other Act; ——As a Body Corporate with the specific functions of the RMB ——Plan for the development, perpetual succession; are to: promotion, management and use of the Resorts; ——With its own Common Seal; ——Act as a Committee of ——Manage the Resorts in ——With the power to sue or be Management of any accordance with the objective sued; Crown Land deemed to be permanently reserved under of the Act as amended; ——To acquire, hold and dispose of the Crown Land (Reserves) Act ——Undertake research into alpine real and personal property; and 1978 in the Resorts; resort issues; ——To carry out its functions as a ——Contribute together with Tourism ——Contribute to and support the Body Corporate may do at law. Victoria and the Alpine Resorts operation of the ARCC; Coordinating Council (ARCC) to Statutory Reporting ——Prepare and implement a the overall promotion of alpine Strategic Management Plan for The RMB is a statutory authority. resorts; the Resorts; and The responsible Minister for the ——Develop a tourism and period from 1 November 2012 ——Expend or apply revenue of marketing strategy for and to 31 October 2013 was the the RMB in accordance with a to promote the Resorts, and Hon Ryan Smith MP, Minister for direction of the Minister under collect and expend voluntary Environment and Climate Change. Section 36(1A) of the Act. contributions from commercial The Minister is responsible for undertakings in the Resorts for The RMB must carry out its Crown Land management and this purpose; functions in an environmentally sound way. delegates his authority to the ——Provide a range of services RMB to implement Government in the nature of: garbage policy in relation to the use and disposal, water supply: recycled management of the alpine resort. and potable, sewerage, gas, The RMB accepts directions drainage, roads, fire protection or guidelines from the Minister and snowmaking. regarding its performance and Annual Report 2012–13 5

Year at a Glance

Financial Summary 2008–09 2009–10 2010–11 2011–12 2012–13 $‘000 $‘000 $‘000 $‘000 $‘000

Operating Revenue — Gate Entry 3,391 3,929 3,531 3,946 3,613 — Site Rental Fees 3,529 3,716 3,671 3,784 3,756 — Service Charges 3,069 3,101 3,179 3,299 3,382 — Sale of Rights to Lease and 50 50 175 0 0 Develop Crown Land — Government Funding 69 1,039 344 136 175 Other Revenue 1,074 1,050 1,186 1,077 1540 Operating Expenditure 10,642 11,249 11,616 12,027 12,106 Other Economic Flows -2 40 -25,698 -3,504 -90 Comprehensive result 538 1,676 -25,2281 -3,2892 270 Total Assets 197,335 199,126 173,4061 170,4752 170,931 Total Liabilities 4,361 4,476 3,984 4,304 4,395 Net Assets 192,974 194,650 169,422 166,171 166,536 Assets Comprise: — Land 150,313 150,313 110,6881 110,688 110,688 — Other non-financial assets 39,273 39,109 53,5741 51,3902 53,398 — Financial assets 7,749 9,704 9,144 8,397 6,845 1 The comprehensive result for 2010–11 includes a reduction of $25,705,000 in the ARMB’s asset revaluation reserve resulting from asset revaluations directed by the Valuer-General Victoria. 2 The comprehensive result for 2011-12 includes a reduction of $3,370,425 in the RMB’s asset revaluation reserve resulting from asset revaluations directed by the Valuer-General Victoria. Item / Key Performance Indicator 2011–12 2012–13

Environmental Quality Number of Readings Within EPA Guidelines — Escherichia Coli 14/14 16/16 — Biochemical Oxygen Demand (5 day) 14/14 16/16 — Suspended Solids 14/14 16/16 Percentage of Total Waste Recycled 44% 45%

Social Responsibility Visitor Average Nights on Mountain (Based on Gate Entry Sales, excl. Day Visitors) 3.24 2.5 Total Snow Making Water Used (megalitres) 274 290 Total Water Used for Fire Fighting (megalitres) 0 0 Total Winter Passengers using Free Shuttles 627,542 538,224 Mount Stirling Patrol Callouts 12 4

Economic Viability Mount Buller Winter Visitors* 272,049 253,647 Mount Buller Summer Visitors* 69,745 79,834 Mount Buller Visitor* Days (Winter) 472,575 461,989 Mount Stirling Winter Visitors* 5,153 5,304 Mount Stirling Summer Visitors* 44,548 44,863 Mount Stirling Visitor* Days (Winter) 7,025 5,304 Vehicles Through The Gate (Winter) 61,255 49,700 Total Investment by Private Developers ($'000) 8,430 5,435 Capital Works Expenditure ($'000) including expenditure on plant and equipment 2,888 3,731 Lease Holders 176 176 Sub-Leases Transferred 16 59 Accommodation Availability of "Hot Beds" 1,587 1,587 Accommodation Availability of "Cold Beds" 6,684 6,684 Mount Buller Maximum Snow Depth (cm) 102 115 Mount Stirling Maximum Snow Depth (cm) 80 93 Total Value of Approved Planning Permits ($'000) 2,900 2,491

* Visitor Statistics for 2011-12 and 2012-13 have been updated using Alpine Resorts Coordinating Council final numbers which have been adjusted to reflect season pass holder visitation. 6

Board of Directors The Minister for Environment and Climate Change appoints Members of the Board, including a Chairman and Deputy Chairman, based on administrative, managerial, financial, environmental, legal, sporting and tourism skills necessary to oversee the running of the Resorts competently. Board members are appointed for a period of 18 months or three years and are eligible for reappointment. Remuneration is determined by the Victorian Government guidelines.

The board members that Bryce Moore Andrew Evans served for the 2012–13 year

Introduction Organisational Structure were appointed by the State Appointed 30 April 2010 Appointed 4 June 2013 Government for three year Re-appointed 4 June 2013 terms. ——Founder and joint Managing ——Part owner and director, Director of Real Estate Jennifer Hutchison Moremac Property Group Development Corporation Pty Ltd Chairman ——Division Councillor, Property ——Founder and joint Managing Council of Australia (Victorian Director of Canopi Homes Pty. Ltd. Appointed 28 October 2011 Division) ——Co-Founder and Director of ——Graduate, Australian Institute of ——Member and former director, Global Pipe Pty. Ltd Company Directors (GAICD) Merrijig Ski Club ——Director of Futurefish ——Member, Alpine Resorts ——Extensive property, planning Foundation Coordinating Council (ARCC) and development experience ——Member of the Victorian ——Former Deputy Chairman, in the private and Government Planning and Environmental Lake Mountain Alpine Resort sectors. Law Association Management Board Dr Kate Brooks ——Wealth of knowledge in the ——Enthusiastic writer, beekeeper, property industry spanning and walker. Appointed 28 October 2011 urban renewal, residential and industrial subdivision, Dean Belle ——Graduate, Australian Institute of development of commercial, Deputy Chairman Company Directors (GAICD) industrial and retail projects, ——Director, KAL Analysis as well as medium and high- Appointed 30 April 2010 ——Social research specialist, with density residential development. Re-appointed 4 June 2013 a background in corporate ——Passion for environmental ——Owns and operates the affairs, marketing, business causes and is a keen skier. Mansfield Regional Produce management and extensive Store experience in public sector John Lithgow ——Owns and operates a tourism, governance and policy and Appointed 4 June 2013 hospitality and marketing community policy consultancy business ——Adjunct Senior Fellow, The ——Third generation Owner ——Previous Judge for the Victorian Australian National University, Operator of the Yarra Glen Grand Tourism Awards (3 years) Research School of Social Hotel, in Yarra Glen, Victoria Sciences ——Over 20 years experience ——Solid background in tourism operating businesses in and ——Avid skier originating from promotion around the ski industry in Mount Buller, bushwalker, rower ——Keen skier and cyclist, Thredbo, Mount Buffalo and and aviator with interests in politics and Mount Buller, including two ——Sociological and community physical fitness. years as Assistant Manager for affairs member of the South ——William Angliss Hospitality Buller Ski Lifts (BSL). Australian Ministerial Fisheries Graduate Advisory Council ——At the forefront of the ——Sociology member of the NSW establishment of the Yarra Ministerial Marine Estate Expert Valley as a world wide tourism Knowledge Panel. destination. Annual Report 2012–13 7

Elaine Farrelly ——Member, Accreditation Board for Standards Development Board Committees Appointed 16 August 2013 Organisations ——Chairman, Standards Australia Risk, Audit and Finance Committee ——Chartered Accountant with more FP-20 Committee The RAFC is responsible for overseeing: than 20 years’ experience ——Member and former Director/ ——Executive level experience ——Financial performance; President, Ski Club of Victoria across the telecommunications, ——The quality and effectiveness of RMB Ltd. media, property development, accounting, management reporting, policies manufacturing and not for profit Lea Corbett and procedures; sectors ——Compliance with the Financial Directions as ——Skilled in commercial Appointed 30 April 2010 issued by the Minister for Finance; – 26 February 2013 development and assessment of ——Identification and assessment of risk, new business and new products ——Executive Director, Phronesis management of identified risks, referral of risk ——Chairman of Movember Consulting, provider of public matters to the Board; organisation policy & management services ——The scope of work and performance of both ——Graduate member of the ——Director, Metropolitan Waste external and internal auditors; Australian Institute of Company Management Group Directors. ——Sign off of accounting policies; and ——Graduate, Australian Institute of ——Continuous monitoring of a framework and Richard Brooks Company Directors (GAICD) processes in compliance with the Financial ——Extensive experience in Management Act 1994, and other laws and Appointed 30 April 2010 infrastructure development, regulations that significantly impact on RMB – 27 April 2013 natural resources policy and code of conduct. ——Fellow, Australian Society of regional development through All RAFC Members are deemed independent Certified Practicing Accountant senior management roles in under the Financial Management Act 1994. (FCPA) Commonwealth and State ——Fellow, Australian Institute of governments Remuneration Committee Company Directors (FAICD) ——Enjoys alpine region year round The Remuneration Committee is responsible ——Managing Director, Tyne as a keen skier and bushwalker. for providing a recommendation to the Board Solutions Pty Ltd a provider regarding CEO remuneration and performance of business and association Pecuniary Interest appraisal. In addition, the Committee ensures management services Members of the Board and that all remuneration and policies concerning ——CEO, Cabinet Makers and Executive Officers have completed personnel are consistent with Victorian Designers Association Ltd. a Declaration of Private Interests Government standards. ——Director/Deputy Chairman, and do not participate in decision- Governance Committee Standards Australia Ltd making where a conflict of interest ——Chairman, SA Finance & Audit exists. The Governance Committee was established Committee in the 2011–12 year to assist the Board to understand its mandate of best practice.

Board Member The Committee is designed to be a reference Meeting point for discussion, debate and assistance in Attendance Total the application of best practice. Where Eligible Meetings

to Attend Jennifer Hutchison Dean Belle Bryce Moore Dr Kate Brooks Andrew Evans John Lithgow Elaine Farrelly Lea Corbett Richard Brooks Held Future Business Modeling Committee The Future Business Modeling Committee was Board Meetings 10 10 10 7 4 5 2 3 5 10 established in the 2012-13 year to assist the Board Risk Audit and to examine the current operating model and explore 4 2 3 1 1 1 2 4 Finance Committee a range of initiatives that will lead to improvements in Remuneration the RMB Financial Operating model. 2 2 2 2 Committee Governance Water Storage Project Committee 3 3 1 3 Committee The Water Storage Project Committee was Future Business established in the 2012–13 year to assist with 1 1 1 1 Modelling Committee the design, development and construction of a Water Storage water storage facility on Mt Buller. 4 4 4 Project Committee 8

Resort Management Team

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

Andrew Markwick Louise Perrin Amber Gardner General Manager Resort Environmental Services Director Marketing, Operations Manager Sales and Business Development Appointed March 2012 Appointed October 2004 Appointed March 2006 Responsible for resort operations Responsible for environmental at Mount Buller and has the management of the Resorts and Responsible for developing primary function of conducting Mount Stirling resort operations long-term strategic initiatives works and capital works that and ski patrol. Environmental that drive market share, Resort preserve and enhance the management activities include yield and business growth. This presentation and operational endangered species and incorporates marketing strategy, functionality of the resorts. wildlife management, vegetation product development, market management, pest plant and research, event management, This includes the effective and animal control, track and trail strategic communications, efficient operation of resort development and maintenance, brand management, commercial utilities and infrastructure such waste management initiatives, partnerships, and visitor as the provision of horticultural advice during construction and information operations. and amenity services, snow development, and education and clearing and ice management, communication programs. potable water supply, waste Abi Adams water treatment, water reticulation Paul McNamara General Manager systems and water supply for snow Property and Development Corporate Services making. Manager Appointed December 2010 Appointed October 2012 – March 2013 Glenn Thornton Responsible for corporate Finance Manager Responsible for management of leasing, sub-leasing, governance, strategic and Appointed March 2012 licensing,statutory planning corporate planning, administration, financial management, human Responsible for financial matters, and major capital resources, contract and legal management, risk management, development. management, risk management, finance (planning and analysis), resort entry, post office and visitor audit (systems and controls), Denise O’Brien information operations. reporting, risk management and Human Resources Manager contract and legal services. Appointed June 2012 Responsible for the people, culture and development of the organisation including staff recruitment, training and performance development. Annual Report 2012–13 9

Organisational Chart

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

Chief Executive Officer Executive Assistant John Huber

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

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

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

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

Enhancing the visitor experience and developing resorts

Delivering resort services and infrastructure efficiently and accountably

Building Partnerships

Respecting the Alpine Environment

Broadening access opportunities Introduction Strategic Direction and Operations Regulatory Reform

These strategic directions identified in the Alpine Resorts Strategic Plan 2012 underlie the Resorts’ vision and six focus areas, which contain intent statements and objectives that form the basis of the RMB’s internal strategic and operational planning, and is how information is categorised in this report (see the summary on the following page). Annual Report 2012–13 11

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

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

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

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

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

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

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

Our Services

Safe Drinking Water Sewage Treatment Provide cost-effective, Risk Management Plan The Sewage Treatment Plant has quality facilities and In accordance with the Safe operated well during the reporting services that meet our Drinking Water Act 2003, the period. The RMB continues to community’s needs and RMB adopts a preventative monitor the Sewage Treatment support the development management approach to the Plant as per Environmental of the Resorts through: provision of safe drinking water, Protection Agency (EPA) ——Providing safe from catchment to consumer. requirements to preserve water and reliable water, quality in local stream networks. The Safe Drinking Water Risk wastewater, and waste On 16 occasions a total of 25 Management Plan includes: removal facilities and samples were taken for Escherichia services ——Promotion of public health by Coli, biochemical oxygen demand ——Developing initiatives ensuring safe drinking water and suspended solids. All samples to further snow-making for consumers; were compliant. capabilities ——Continual monitoring of the

Strategic Direction and Operations Garbage Collection ——Managing and improving drinking water supply system access to and movement to ensure the barriers to Over the 2013 winter season, around resorts contamination and treatment 477 tonnes of solid waste was process remain efficient; collected compared with 508 ——Progressing the leasing tonnes in winter 2012. A total of and licensing process ——Detailed and systematic 662 tonnes of solid waste was to support appropriate evaluation of water systems, collected over the year compared resort development identification of hazards and risk with 691 tonnes in 2011–12. and provide necessary assessment; and community services ——A preventative approach, which Solid Waste Recycling ——Maximising asset places drinking water quality The RMB continually strives to performance by monitoring in an appropriate improve its waste management to striving for best use, verification role. protect the sensitive and unique and improving asset The Safe Drinking Water Risk environment of the Resorts, by efficiency through Management Plan is regularly increasing recycling, diversion strong preventative updated to ensure it reflects of organics and reducing the maintenance changing local circumstances. amount of solid waste going to The Plan was independently landfill. These goals are strongly Potable Water audited in December 2009 and a supported by active involvement in The provision of safe drinking compliance certificate granted. NevRwaste, and a proactive and water is fundamental to economic dynamic working relationship with well being. The RMB supplies Water Reuse Project RMB waste contractors, 4SITE Australia Pty Ltd. drinking water to the Mount Buller The Class A sewage treatment Village, Mirimbah Picnic Area and plant continues to provide In 2012–13, 45.5% of waste Telephone Box Junction in the enormous benefits to the Mount (including organics) was recycled. Mount Stirling Resort. Drinking Buller Resort by increasing the The RMB continued to encourage water is managed in accordance security of snowmaking water. and promote best practice waste with the Safe Drinking Water Act management by: 2003 and is disinfected using During the reporting period 25ML combinations of UV, chlorination was recycled for use as snow ——Improving and increasing the and filtration. making water, with an average of non-recyclable, recyclable 210kl recycled per day. Investment and organics ‘binfrastructure’ In 2012-13, 329ML of water was in water recycling and snowmaking throughout the Resorts; transferred from Boggy Creek to ensures the viability of snow- ——Offering hard waste and green the Burnt Hut Reservoir for the related tourism in years to come. Mount Buller Village potable water waste collection points (items supply. Of this, 175ML was then are recycled/mulched where transferred to Sun Valley Reservoir appropriate); for snowmaking. Annual Report 2012–13 13

——Continued improvement and expansion of public place recycling and waste facilities throughout the Village and ski fields; ——Improved cigarette butt litter management including improved infrastructure; ——Facilitation of community based litter initiatives such as ‘Beautify Buller Day’; ——Providing re-usable bags for residents and guests as part of the ‘Save our Snow, Just Say No’ campaign; ——Advertising and promoting best practice waste management; and ——Implementing the Waste Wise Local Education Strategy. Since the inception of the Public Transport The decision regarding chain successful trial in organics The RMB continued to provide requirements is determined using management during the 2010 public transport to visitors at Mount a decision matrix based on Bureau winter season, the ‘Living Bin’ Buller through its contract with of Meteorology weather forecasts Program has continued to Mansfield-Mount Buller Bus Lines and the current state of the road. involve private and commercial (MMBL). The complimentary bus properties, increasing the diversion Mount Buller-Mount Stirling shuttles from the Resort carparks of organics from landfill. During Link Road to the Village centre and around 2012–13, over 35 tonnes of organic The RMB plans to construct a link the Village roads carried 538,224 waste was diverted from landfill road between the existing Corn passengers in 2012–13 compared (compared with 23 tonnes during Hill Road and the Circuit Road to 627,542 in the previous year. 2011–12). This successful organics at Howqua Gap, linking Mount The RMB continues to work with management system won the Tidy Buller and Mount Stirling. The MMBL to provide a taxi service that Towns Sustainable Communities Link Road development responds is cost-effective and valued by the Zero Waste Award in October to the RMB’s risk management paying passengers. 2011, and achieved the Premier’s plan, providing greater access Sustainability Award in September Wheel Chains Policy for emergency vehicles to both 2012. An in-vessel composting unit The RMB is aware of the need mountains. The Link Road will was trialled during winter 2013 with to balance ease of access and also become an appealing touring the aim of achieving a complete on affordability with risk and public circuit, thereby increasing year site solution. safety. In 2012-13, the RMB round visitation to both Resorts. continued to employ its flexible An application for a planning Vehicular Access Mount Buller Wheel Chain Policy, permit to construct the Link Road has been lodged with the DTPLI. Snow Clearing which allows the RMB to determine Assessment, consultation and A snowy August with regular whether or not vehicles are solutions regarding geographical weekly snow falls kept the snow required to carry wheel chains on and biodiversity challenges are clearing team busy. The new a daily basis, based on weather being determined with the relevant de-icing equipment arrived from forecasts and prevailing road parties in this regard. Europe and was immediately put conditions. The policy applies to into action. The results it achieved day visitors only. Those staying in were startlingly good. A marked the Resort overnight or travelling reduction in ice was achieved as beyond the Skating Rink Car Park well as a significant reduction in (past the snowline) are required to the use of grit and salt on roads. carry chains at all times. Staff are to be commended on their excellent work in maintaining safe access to the Resorts. 14

Leasing Administration In accordance with standard Compliance with building The RMB continues to administer practice, adjustments to service and maintenance provisions the Minister’s Alpine Resorts charges levied on some sites were of the Building Act 1993 Leasing Policy, utilising a standard initiated to reflect reassessments In accordance with the provisions lease document which includes associated with supplementary Section 192 (1) of the Building recognition of lessee’s rights to valuations undertaken on new Act 1993, the RMB carries out the improvements on leased land, and developments or properties which administration and enforcement of the ability for existing site holders had been subject to substantial Parts 3, 4, 5, 7 and 8 of the Act and to negotiate new leases prior to alterations. the Building Regulations on Mount the expiry of their current lease. Buller and Mount Stirling. All new leases are endorsed by Land Release the Minister. The aim of the RMB’s land release Health Services activities is to encourage the In order to develop measures The RMB continues to facilitate the provision of quality developments to further enhance lessees and provision of medical services to on new sites in areas identified financiers investments in the visitors, residents and employees

Strategic Direction and Operations as being suited for development. Resorts, lease registration has on Mount Buller during the snow There were no releases of new now been introduced for all new season. Churchill Drive Pty Ltd sites by the RMB during 2012–13. leases. During 2012-13, 18 new managed the Mount Buller Medical Centre again this year, with the leases were issued compared to Planning Permits and Private support of doctors and staff from one in 2011-12. Investment the Mansfield Medical Clinic. For the 2012-13 year there were a In 2012–13 a total of 13 new total of 59 consents being granted planning permit applications for This service provided a range of for transfers of sub-leases and/or development proposals with a services for residents, staff and shares compared to 16 in 2011-12. declared estimated construction visitors of Mount Buller including There were no consents for new value of $2.49 million were health screening, monitoring and sub-leases and 8 consents for the reviewed and processed by the education, assessment of acute mortgage of sub-leases and/or Board compared to the 8 (with medical presentations, treatment shares granted in the year to a total value of $3.03 million) of minor wounds, medical 31 October 2013. processed in the previous year. management, liaising with medical The RMB has continued to engage practitioners, counselling and Site Rental appropriate consultants to assist in referral. its deliberations on these matters. Lessees are required to pay site Mount Buller continues to provide rental for the use of Crown Land In 2012–13, 16 planning permits appropriate health services for on Mount Buller. During 2012-13, were issued for proposed specific events and activities held rent reviews for 96 sites were development projects and over the Summer period. undertaken in accordance with works with a declared estimated the applicable lease provisions. construction value of approximately Service Charges $1.92 million. Service charges are levied on all A Site Environmental Management leased sites within the Resort in Plan (SEMP) is required for all accordance with Section 13 of planning applications for site the Alpine Resorts (Management) development on Mount Buller. Act 1997. Service charges are Each SEMP is reviewed as an reviewed annually in accordance important part of the planning with RMB policy. process, aimed at minimising environmental impact during Service charges are currently the construction phase and based solely on 2004 CIVs. The rehabilitation of sites post- Service Charge rate for 2012-13 construction. was 0.83246% of the 2004 CIV compared to a rate of 0.81771% Projects with an estimated of the 2004 CIV in 2011-12. construction value of $5.05 million were completed in the year to 31 October 2013. Annual Report 2012–13 15

Our Environment

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

The RMB aims to manage the Environmental and climate change threaten its unique alpine environments of Management Plan existence across the Australian Mount Buller and Mount Stirling in The Environmental Management Alps. When serious declines in a sustainable manner, maintaining Plan describes specific Pygmy-possum numbers were the balance and quality of alpine environmental objectives for the observed between 2001 and ecosystems. In 2012–13, many Resorts. Environmental issues 2003, the RMB, in partnership key environmental objectives were addressed within the Plan include with BSL and DEPI, Department achieved. sustainable management of of Environment and Primary geological and geomorphologic Industries, developed a five- RMB Participation in features, soil conservation, rivers year Recovery Plan to protect Government Green and catchments, flora, fauna, fire, the species and its habitat. The Initiatives indigenous and post-settlement Recovery Plan has been reviewed In 2012–13, the RMB continued its cultural heritage, waste, energy and updated to direct conservation active participation in Sustainability efficiency, air quality, visual and actions for a further 5 years. Victoria’s ECO-Buy program. The noise amenity, visitor capacity It is a guide for the continued RMB increased it’s green spend and community awareness and management of the species, by 2% from the previous year. engagement. The Environmental learning from and building on the Other initiatives included Resource Management Plan is in the process previous plan’s positive outcomes. Smart, Keep Winter Cool and of being reviewed, and will move Annual monitoring of the membership of the North East into the next 5 year period once population continues with excellent Regional Waste Management complete. results for the 2012–13 year Group (NevRwaste). with the ongoing trans location Mountain Pygmy-possum projects and on-ground Recovery Plan management of the population resulting in the highest numbers The Mount Buller alpine resort being recorded since 1998. is home to a population of Australia’s iconic alpine possum – the endangered Mountain Pygmy-possum (Burramys parvus). Habitat degradation and fragmentation, predation 16

During 2012–13, approximately discouraged. During winter 2013, As in previous years, effort 2,000 plants of local genetic plastic catch and release traps was concentrated on the most provenance (specifically chosen to were made available to public for significant species within the provide food and cover) have been purchase. Resorts, including Orange established in key habitat areas. Hawkweed, Soft Rush, Blackberry, In 2012–13, the small mammal St John’s Wort, Sycamores, In addition, important studies have poster continued to be a popular Willows, feral cats, foxes and been completed, identifying new tool to help visitors identify and rabbits. habitat mapping, including habitat appreciate native fauna within the re-creation sites, tunnels linking Resorts. As in previous years, this Pest Plants previously fragmented habitats and poster was distributed to lodge The 2009 Weed Management revegetation/rehabilitation sites. managers and many primary and Strategy formalised the process for secondary school children who The RMB is represented on prioritising and treating key weed visited the Resorts. the Mountain Pygmy-possum species within the Resort. State Recovery Team, and is Threatened species monitoring From October 2012 to June 2013, committed to continuing proactive continued, including the Mountain

Strategic Direction and Operations Orange Hawkweed was monitored management of the species. Pygmy-possum, Broad-toothed and controlled weekly and there Rat (Mastacomys fuscus), Alpine continues to be an established Native Flora and Fauna Stonefly (Thermatoperla flaveola) quarantine area to restrict Management and the Alpine Marsh Marigold movement through the area. The RMB is committed to the (Psychrophila introloba). Assistance with surveillance and protection of all species of native Sensitive area signage has additional funding was obtained plants and animals inhabiting been installed in key locations from the Department Primary the Resorts. Advice and tips on to increase staff and visitor Industries, to increase resources management of small native awareness. put towards surveillance of Orange mammals is freely available and Hawkweed within the Resorts. The environmental staff continue to Pest Plant and Animal improved collaboration of agencies provide a small mammal catch and Control in recent years has been effective release service to lodges, clubs, A major environmental goal of the with one new and two existing sites apartments and hotels, using Elliot RMB is the control and elimination, identified and treated (compared traps, designed to prevent injury where possible, of introduced or with three new and six existing to animals. The use of snap traps exotic plant and animal species. sites in 2012–13). and poison baits continues to be Annual Report 2012–13 17

Waterway weed infestations, The Mount Buller and Mount including Three-stamen Rush, Soft Stirling Native Vegetation Planting Rush and Musk Monkey-flower, Guide (available for free from the continued to be targeted with good RMB office and website) continues results. to assist residents and site holders keen to establish native gardens Blackberries were sprayed on on their sites. trails between Mount Buller and Mount Stirling, and Sycamores Education, Communication continued to be controlled in the and Engagement upper reaches of the Delatite at Mirimbah. Small English Broom Environmental education, infestations were treated at Mount communication and engagement Stirling, Mount Buller Village and are critical to achieving RMB Delatite Valley, and Pussy Willows environmental objectives. continued to be removed from the During the year, environmental staff Resorts. gave a number of presentations to primary, secondary and tertiary Pest Animals students, and continued to offer The RMB’s year-round integrated interpretive guided walks along the pest animal control program Summit Nature Walk from January involves various methods of to Easter inclusive. management at different times of year. Ongoing fox baiting The latest environmental programs, intensive shooting and information continues to be Energy and Resource trapping sessions, remote camera available on the Mount Buller and Efficiency placement, and spot lighting Mount Stirling websites. The RMB is committed to are control/monitoring activities During 2012–13, RMB staff improving its internal environmental which continue to produce good continued their voluntary performance focusing on results. Foxes are no longer participation in the Community environmentally responsible commonly seen within the Resort Stream Sampling Project in purchasing and resource and and feral cats (known predators conjunction with Water Watch energy efficiency projects. The of the Mountain Pygmy-possum) and participated in various RMB continues its membership numbers are declining. Rabbits sustainability focused training of ECO-Buy, a not-for-profit continued to be targeted from sessions held throughout the year. organisation that encourages spring to autumn. and assists businesses and Fire Management government agencies to embed Revegetation and sustainable purchasing practices The Mount Buller and Mount Rehabilitation and attitudes into their day-to-day Stirling Fire Management Plan operations. In 2012–13, the RMB As part of the ongoing revegetation provides guidelines for fire increased its green spend to 12% and rehabilitation program, prevention, preparedness, of expenditure from 10% in 2011– approximately 2000 native response and recovery across the 12. Following audits undertaken seedlings were established in Mount Buller and Mount Stirling in previous years using infrared priority areas during 2012–13. Alpine Resorts. thermography and other methods, Plants were sourced from locally the RMB continues to make asset obtained seeds and cuttings, Land Stabilisation improvements to increase energy propagated over an eight-month The RMB continues to monitor and and resource efficiencies and period and returned for planting address any natural changes in decrease carbon emissions. at the Resort during the summer the land. The RMB has received months. This ensures the genetic funding from the DEPI Alpine provenance and integrity of native Risk Mitigation Program to vegetation within the Resort is reinstate these areas. Works were maintained. undertaken on slips on the Stirling Road in Autumn 2013. Environmental staff continued to provide advice to developers and site holders regarding revegetation, and several locally indigenous native gardens are now established within the Resort. 18

Our Tourism

Buller attracted 253,647 people to Visitor Services Provide high quality the Resort which is a 7% decrease During the 2013 season, Visitor recreational activities, from the 2012 season. However, Services, a combination of RMB facilities and experiences the resort still managed to sustain and Buller Ski Lift resources, that promote year round fairly strong overnight stays, only was once again responsible for utilisation through: dropping 3% in terms of visitor meeting, greeting and assisting ——Facilitate and/or days (from 472,575 in 2012 to visitors in the car parks, toboggan influence the delivery 461,989 in 2013). slopes and general Village area. of mountain products The placement of these staff Mount Stirling – Summer and facilities that satisfy continue to improve liaison with Mount Stirling experienced a 1% customer expectations the public and enhance the visitor drop in visitation between summer experience. ——Enabling activities and 2011–12 and 2012–13, as calculated events that appeal to by the ARCC. This reduction can In 2012–13 the RMB continued to various target markets be directly attributed to the regional contribute funds to the Mansfield ——Developing the tourism bushfires, with the Resort even Visitor Information Centre and Strategic Direction and Operations strengths of the Resorts closing for a period to be used as a High Country Reservations, which ——Generating cross-resort staging area by emergency services provides a year round visitor tourism opportunities to fight nearby fires. information service for the Resorts and a centralised accommodation between Mount Stirling Regardless, Mount Stirling still booking service for visitors on and Mount Buller maintains its unique position as behalf of commercial operators ——Driving awareness of the the only Victorian alpine resort to and lodges at Mount Buller. Resorts’ visitor offerings attract higher levels of visitation in summer than in winter. Sponsorship Visitation Mount Stirling – Winter The RMB acknowledges its Mount Buller – Summer Despite poor snow falls, Mount sponsors, who are valuable Between summer 2011–12 Stirling actually managed to partners in delivering a high quality and 2012–13, Resort visitation increase its visitation numbers by mountain experience to visitors, increased 15%, as calculated by 3% between winter 2012 and 2013 including Bollé, Kraft/Cadbury, 7 the Alpine Resorts Coordinating – a reflection of its new branding Network, Holden, K2, Specialized Council (ARCC). Visitation growth and repositioning in the market and Schweppes. The RMB in turn was originally looking to be even to better connect with current offers sponsorship to on-mountain higher than this, however several customer segments. Mount Stirling event providers as well as sporting bushfires that occurred around was the only Victorian resort to groups to encourage development the alpine area impacted regional see such growth this season, and participation in recreational visitation. with all other resorts experiencing activities across all age groups. moderate to significant visitation It must be noted that growth in decline. Mountain Bike Trails general visitation statistics were The RMB acknowledges that a mirrored by a similar growth in the However, Mount Stirling’s visitor sustainable, year-round tourism use of key mountain bike trails days dropped 3% with the poor product is vital to the longevity around Mount Buller and across to quality of snow resulting in people of the Mount Buller and Mount Mount Stirling, indicating that much visiting for shorter periods. Stirling Resorts. In an effort to grow of this visitation increase can be the Resorts’ summer visitation, attributed to the popularity of this Resort Entry Technology the RMB has invested significant activity. The RMB continues to explore time and resources into the options to streamline the Resort Mount Buller – Winter development of its cross-country entry process. Automated licence mountain bike trail network, which Mount Buller received no natural plate technology was installed at snowfalls throughout June and was is promoted under the ‘Bike Buller’ Mirimbah Resort Entry prior to the brand. forced to close early in September commencement of the 2013 winter after a week of unseasonably season. This technology enabled In total, the RMB has now hot weather (including a day that the RMB to gain an understanding implemented over 40km of reached 20 degrees) melted of vehicle season permit usage new single track dedicated to the Resort’s remaining snow. As as well as monitor unauthorised mountain biking, which includes such, it was a very poor snow access into the Resorts. Further beginner trails around the Mount season, which negatively impacted uses will be explored once the Buller Village, five intermediate visitation. For winter 2013, Mount system is fully implemented. loops out to Corn Hill, the iconic Annual Report 2012–13 19

Stonefly trail on Mount Stirling, and type of accreditation, the new trail 2012–13 key achievements are Copperhead, a flow-down trail that will become a high-profile tourism as follows: is the first of its kind in Australia. draw card for Mount Buller and ——Despite a challenging winter It also includes trail links, and two Mount Stirling that is expected season, growing Mt Buller’s skills parks. to attract both domestic and market share to 44% - the first international visitation. As a result of these developments, time in four years that it has Mount Buller has been recognised These efforts ensure that Mount been above 40%. as Australia’s first International Buller is quickly establishing itself ——A 38% increase in the total Mountain Bicycling Association as Victoria’s premier mountain bike amount of winter media (IMBA) endorsed Ride Centre. destination, with the product being exposure secured by PR efforts, This means that the Resort joins the resort’s strongest summer and a 21% increase in the value a select group of mountain biking tourism offering. of this space to $7.2 million. destinations around the world ——An 8% increase in the number of that represent IMBA’s Model Mount Buller Marketing unique visitors to the Mt Buller Trail recognition for large-scale Mount Buller Three-Year website. mountain bike facilities that offer Marketing Strategy ——A 43% growth in Mt Buller’s something for every rider. The RMB works to maximise resort Facebook followers. Building on this success, the use and visitation on a year-round ——Growth in winter demand and RMB will next embark on the basis, thereby ensuring that Mount valuable trade partnerships development of the Mount Buller Buller is a vibrant destination following involvement in Mount Stirling Epic Mountain Bike that is economically viable and Government trade missions to Trail Project, which involves the sustainable. Key to the resort’s India and South East Asia with construction of a new 40km cross success in this area is the growth Tourism Victoria. country trail that offers a long of its tourism market – that is, the ——The successful re-brand and re- distance, descending ride through growth of Mount Buller’s valuable positioning of Mt Stirling, which Victoria’s High Country. Once winter tourism trade and promotion resulted in a growth in winter completed, it is envisaged that of its mature product, and the visitation. this trail will become an accredited establishment of a profitable and IMBA EPIC Trail, recognised as attractive summer tourist offering. a world-class trail that offers an To this effect, the RMB follows a iconic, diverse and high-quality three-year strategic marketing plan back-country ride experience. This that aims to drive resort visitation will make it the first of its kind in and yield opportunities in both Australia and one of the few trails summer and winter. outside of North America to receive such an endorsement. With this 20

Our Community

Build and facilitate a year round vibrant community and be a valued community member through: ——Developing and enhancing village and community centres where people can congregate ——Seeking feedback and measuring the community’s response to our products, services and actions

Strategic Direction and Operations ——Acknowledging the cultural heritage of our region and celebrating our community’s history Implementation of the Resort In 2012–13, the RMB undertook ——Supporting new and Master Plan will enable and a number of initiatives to improve local business to enable encourage the development the amenities of Mount Stirling, a year round operation of a wide range of integrated including: ——Facilitating key resort facilities, infrastructure and ——Improvements in signage essential and emergency accommodation. Such targeted and visitor greetings area at services required by development, in addition to Telephone Box Junction; the community improved community services, will encourage the growth of year- ——New horse facilities including Village Character round activity in the resorts and hitching rails at two heavily used locations; While Mount Stirling development better utilisation of resort assets. remains environmentally focused, ——Greater emphasis on long-term with initiatives such as new walking Village Facilities sustainable trail networks; trails, weed control programs, In 2012–13, the RMB undertook a ——Intensive trail rehabilitation public toilets and shelters, the number of initiatives to improve the works in problem areas; and RMB continues to encourage and amenity of the Mount Buller Village, ——Refurbished gates to protect facilitate private and commercial including: the environmental values of the development on Mount Buller by: ——Commencement of renovations mountain, and to assist with ——Working with and providing to the Cow Camp Plaza and improved traffic management. guidance to developers for laying the ground work for an ——Repairs and resurfacing of the development, submission and extension and further renovation Circuit Road from Telephone processing of planning and during the 2013–14 financial Box Junction to King Saddle. building permit applications; year; ——Continuing to develop the ——Working closely with the Village infrastructure and overall developer of the old YHA site, appearance; now known as Buller Central to ——Extensively marketing the achieve the best possible public Resorts to provide incentives amenity outcome; for commercial facility and ——Resurfacing and repairing accommodation operators to pathways and pavements within remain open year-round; and the Village Centre; and ——Providing and assisting events ——Ongoing Village beautification and activities. projects with native species. Annual Report 2012–13 21

Services for the Community Resort Worker Accommodation Five Principles of During the 2013 snow season Customer Service Emergency Services the RMB continued to provide In 2012–13 the RMB enjoyed The ‘Five Principles of Customer Resort Worker Accommodation a constructive relationship Service’ have been developed to as a service to the Mount Buller with the Victoria Police and remind all Mount Buller and Mount Chamber of Commerce. This was Rural Ambulance who were in Stirling employees of the five very successful again in enabling attendance daily during the snow simple steps involved in providing small businesses to access season and special events. The exceptional customer service and affordable staff accommodation. RMB would also like to thank the ultimately happy repeat visitors. These principles are explained CFA for its continued year round Buller Crew 2013 service at Mount Buller and its and reinforced through Buller consistent presence fostering a Buller Crew is a customer service Crew, RMB and Buller Ski Lift staff better community. program that supports the Visitor orientation and training programs. Experience Charter developed by Ski Patrol the RMB and promotes a unified Five Principles The RMB continued to work approach to customer service at 1. Greet the guest closely with Ski Patrol on Mount the resort. Participation in the Buller Buller (a service provided by Crew program supports the Mount 2. Know the mountain BSL) to minimise risk in the ski Buller brand values by unifying all 3. Offer to help fields. Victoria Police and Rural mountain staff through the “Buller Ambulance also provided excellent Way”. The program requires that 4. Look your best service that contributed to a safe staff demonstrate the “Buller Way” 5. Have fun skiing environment. core values at all times, whether at work or on personal time. An Volunteer Ski Patrollers integral part of the Buller Crew In 2010–11 the RMB developed were actively involved in trail customer service program is the a Visitor Experience Charter that maintenance, cleaning, stocktaking ‘Employee of the Week’ Award, was signed by the Mount Buller medical supplies and assisting which recognises employees’ pride Chamber of Commerce, the Mount and responding where first aid was in delivering exceptional service to Buller Ratepayers Association, required. They spent time training guests, residents and fellow resort BSL and RMB at Mount Buller and consolidating their emergency staff. that further reinforces a unified rescue skills with the Mount Buller approach to customer service at Ski Patrol, including shadowing This winter, 1156 mountain staff the Resort. professional patrollers on the participated in Buller Crew training slopes. sessions, consisting of a one-hour Emergency Management customer service workshop and On Mount Stirling, the Volunteer The Mount Buller and Mount tour for new employees. Once Stirling Alpine Resort Emergency Ski Patrol, under the direction of again the ‘Employee of the Week’ RMB Ski Patrol staff, is an essential Management Committee is Award was highly successful in made up of approximately 20 component of winter safety and rewarding and encouraging a operations. During the 2013 snow representatives of the RMB, high level of customer service BSL, Victoria Police, CFA, State season, the Volunteer Ski Patrol across the mountain. Businesses contributed a total 99 work days. Emergency Service (SES), nominated employees who Department of Human Services There were 4 accidents attended demonstrated outstanding to on Mount Stirling this year. (DHS), DEPI, Ambulance Victoria customer service and winners and Buller Gas. There were two received prizes donated from Education Emergency Management Planning around the Resort, including dinner Mansfield Primary School and Committee meetings held for the vouchers, goggles, and a snow Mansfield Secondary College 2012–13 period. The Emergency groomer ride to name a few. continued to provide a syllabus Management Plan underwent a based education model during To help create a friendly and successful audit in April 2013. winter via their Mt Buller annexes cooperative team environment for both internal and external across the mountain, Buller Crew students while Mt Buller Education hosted regular sports nights in the Pty Ltd continued its tutor based Alpine Central Sports Hall which education model. These were all proved popular and were well operated via licence agreements attended. out of the Alpine Central building. 22

Our People

Be an employer of choice that values and is valued by all employees through: ——Investing in the safety, well-being and development of our people ——Embedding a culture where productivity, adaptability and progress is embraced, responsibility accepted and accountability delivered Strategic Direction and Operations ——Providing an environment that will attract and retain high quality staff ——Engage with our Public Sector Values Merit and equity people to promote, The RMB actively promotes and The RMB complies with the understand and encourages adherence to public Public Administration Act 2004 improve organisational sector values and to the Code of by maintaining a workplace performance Conduct for Victorian Public Sector free of discrimination in line Employees. with the Victorian Government’s Core Values merit and equity principles. The The RMB’s Human Resource RMB continuously reviews its The RMB has adopted the policies incorporate the conduct human resource policies and following core values: principles set out in Section 7 processes in areas such as equal of the Public Administration Act ——Communication – maintain opportunity and recruitment. 2004. Values and associated an open, clear and concise two Employees are selected and/ behaviours are embedded in all way flow of relevant information or promoted for positions on the position descriptions and the both internally within the RMB basis of relative ability, knowledge, RMB’s performance appraisal and externally; experience and skill, in fair and process incorporates a review ——Leadership – provide positive open competition measured of how individuals demonstrate guidance and motivation and against the requirements of the these values. Compliance with act in a way that upholds the position involved. All employees these policies is a condition of RMB core values; are treated in a fair and equitable employment with the RMB. ——Innovation – drive continuous manner without regard to race, religion, political opinions, sexual improvement and be open and Public Sector Employment preference, age, physical or mental responsive to change; Principles disability, family responsibility, ——Customer Service – strive to The RMB has adopted the Public pregnancy, national extraction or exceed customers’ expectations Sector Employment Principles social origin. by understanding and as per Section 8 of the Public responding to their needs; Administration Act 2004. These ——Integrity – be honest, open principles are embedded and ethical in dealings with in the internal policies and each other, customers and procedures of the RMB in the stakeholders; and recruitment process, performance ——Teamwork – work together management and in the resolution to achieve desired goals in a of any disputes. supportive and co-operative environment. Annual Report 2012–13 23

OH&S Performance 2013 Staff Awards Indicators 2011–12 2012–13 Target Annually the RMB recognises staff members and OH&S committee meetings (formal) 5 4 4 teams that excel and deliver above expectations. Workplace inspections (formal) 2 3 2 Outstanding Staff Member (as voted by Peers): Incident Statistics Frank David Workdays lost 19 13 0 CEO’s Outstanding Staff Member Injury incidents 2 2 0 (as voted by the Executive): Lyndsey Jackman No. of lost time injuries 1 0 0 and Kelly Purton

Incident Type Outstanding Team (as voted by Peers): Resort Entry Manual handling 1 0 0 Slip, trip or fall 1 2 0 CEO’s Outstanding Team (as voted by the Stress 0 0 0 Executive): Finance Department Laceration 0 0 0 Other 0 0 0

Occupational services, resort entry, snow The RMB also encourages further Health and Safety clearing, traffic control, car parking, or continuing study or training The RMB is responsible for toboggan slope and sports hall linked to business needs. During providing a safe working and supervision, Mount Stirling Ski 2012–13 training courses and recreational environment, free Patrol and general Resort work. qualifications attained by staff of accidents and injuries, for all included: Staff Training and RMB employees, contractors and ——Australian Ski Patrol Association members of the public. The RMB Development ——Customer Service is committed to ensuring that all The RMB supports training and people affected by its activities are development to ensure that all ——First Aid protected from loss, risks to safety, full-time, part-time and casual ——Fringe Benefit Tax health and wellbeing. employees have the necessary ——Executive Leadership skills and qualifications to fulfil their RMB staff members are ——Emergency Management work requirements. fundamental to the principles of ——Certified Practicing Accountant risk management and OH&S, All RMB employees must complete ——Diploma of Management and these responsibilities a basic level of training, including are imbedded in all position Buller Crew (customer service) ——Master of Marketing descriptions and are assessed as training and risk management ——Bushfire Regulations part of the performance appraisal training. ——Public Health and Water Quality process. The RMB’s staff-based Some positions require specific Awareness OH&S Committee formally met four qualifications or training, including: ——Perform CPR and Apply First times during the year. Aid ——Traffic Management Work Days Lost accreditation ——Manual handling During 2012-13, thirteen days were ——Authorised Officer training ——Safety Management Training lost due to one workplace injury. (including client interaction and ——Maintaining Chainsaws and trim defensive tactics) and Cross Cut Felled Trees Workforce Data ——Chemical handling ——Manual Handling At 31 October, 2013 the number ——Ski Patrol ——4WD Drive and Snow Safe of permanent employees totalled ——Snowmobile licensing Driving Course 33 (29 EFT) compared with 31 (30.4 EFT) in 2011–12. Of these ——Alpine awareness training Industrial Relations 15 were female and 18 were male. RMB staff (with the exception of Seasonal staff totalled 40 (28 male Senior Appointments on GSERP and 12 female) compared with 42 contracts) are employed under the in 2011–12. Tasks performed by Mount Buller and Mount Stirling seasonal staff included visitor Alpine Resort Management Board Collective Enterprise Agreement 2009–13. 24

Our Corporate Governance

——Buller Ski Lifts Pty Ltd (BSL); Local and Regional Authorities Maintain the integrity and ——Emergency services, including The RMB continues to consult with value of our organisation Ski Patrol; a range of industry experts and through sound governance ——Industry groups; authorities in the development and financial management, of new policies, procedures through: ——Environmental interest groups; and initiatives. In particular, ——Building strong and ——Recreational groups; neighbouring Crown Land positive relationships ——Educational authorities and managers (Parks Victoria, DEPI with key stakeholders organisations; and Mansfield Shire Council) are ——Planning for our future ——Land and property developers; consulted to ensure best practice land management. The RMB through robust strategic, ——Stirling Experience; business and resort also consults with other Victorian ——Business and commercial master planning alpine resorts through the ARCC operators; and an informal network of chief ——Driving fiscal ——Tourism operators; executives, finance officers and responsibility throughout environmental officers. Strategic Direction and Operations our business and finding ——Ski clubs; ways to become more ——Apartment owners; Indigenous People efficient ——Contractors; The RMB abides by Aboriginal ——Identifying and ——Residents; Affairs Victoria reporting mitigating risks requirements where any specific ——Visitors and guests; and impacting the Resorts indigenous initiatives or projects ——District communities. ——Meeting our regulatory will be reported in accordance with the necessary guidelines. No requirements The Buller Marketing special initiatives were needed by Coordination Group the RMB to meet these obligations. Stakeholder Consultation The Buller Marketing Coordination The RMB acknowledges an Group (BMCG) includes Strategic and Corporate extensive range of stakeholders, representatives from BSL, High Planning which encompasses the people Country Reservations, Mount Buller Chamber of Commerce, Mount As required under Section 53 of Victoria, and individuals and of the Act, the RMB develops organisations with a financial, legal Buller Ratepayers Association and the RMB. The BMCG works and lodges its Corporate Plan, or social interest in Mount Buller or including a Statement of Corporate Mount Stirling. to promote the mountain in a co-operative and consistent Intent and a Business Plan. As RMB stakeholders include: approach, with a single, clear required under Section 56F of the Mount Buller brand and marketing Act, the RMB reviews its Strategic ——State Government of Victoria, Management Plan when required. in particular the Minister for campaign. The BMCG objectives include: The current plans use the key Environment and Climate strategic directions of the Alpine Change, the Minister for ——Providing an opportunity Resorts Strategic Plan 2012 using Finance and the Minister for for input and advice from RMB focus areas and objectives Planning; stakeholders in respect to that were developed by the Board ——The Taungurung people, marketing activity; and the Management Team traditional custodians of the ——Communicating, monitoring and during 2011 and were revised and land; evaluating the RMB Three-Year readopted in 2013. ——Mansfield Shire Council; Marketing Strategy; and ——Neighbouring land management ——Creating sub-committees Resort Master Plan authorities; to provide direction and The Mount Buller Resort Master Plan is now well into ——Alpine Resorts Coordinating recommendations as required. its implementation phase and Council (ARCC) and associated Currently, the BMCG incorporates continues to guide the Resort’s entities; two sub-committees – the Sales development over the next 10 and Promotions Committee and ——Other Victorian alpine resorts; – 15 years as well as providing Winter Brochure Committee. ——RMB staff, committees and confidence for individual associated entities; stakeholders to commit investment ——Mount Buller Chamber of dollars to the mountain. Whilst a Commerce; number of Master Plan projects ——Mount Buller Ratepayers have already been completed, Association; the 2012–13 year was a period of Annual Report 2012–13 25

consolidation and preparation for Summary of Operational and 2011–12 2012–13 significant investment over the next Budget Objectives Actual Actual Variance few years. A major part of this is a $‘000 $‘000 $‘000 focus on the detailed analysis that will underpin the more strategic Revenue 12,242 12,466 224 projects like the snow play Expenditure 12,027 12,106 79 facilities, the Valley North parking Capital Works (including plant and equipment) 2,888 3,731 843 structure and gondola. Consultancies over $10,000 ($ ‘000) Significant changes in Consultant Purpose of Total approved Expenditure Future committed financial position during consultancy project fee 2012–13 expenditure the year ex GST ex GST Ex GST Biosis Research Environmental $94 $94 Nil There are no significant matters Consultancy & Analysis which changed the RMB’s financial Cox Architecture Architecture Design $122 $122 Nil position during the reporting Pty Ltd & Consulting period. Feehan Consulting Water Project $15 $15 Nil Pty Ltd Consultancy Major changes or factors GHD Pty Ltd Sustainable Water $512 $134 $378 Security Consultancy affecting performance Inspiring Place Strategic Management $21 $21 Nil The decrease in gate entry revenue Pty Ltd Design & Consultation is a result of lower visitation in the Interlandi Mantesso Design & Manage Day $105 $105 Nil 2013 snow season compared to Pty Ltd Visitor Upgrade 2012. Jenham Solutions Resort Operations $27 $27 Nil Pty Ltd Consulting & Reports The RMB did not release any Keaney Planning Planning Scheme $22 $22 Nil Crown Land during the 2012–13 Amendments Russell Kennedy Legal Services $43 $43 Nil year for development and therefore Pty Ltd no income was received for the Smec Australia Consulting Services $19 $19 Nil right to lease and develop land. Pty Ltd Watergroup Project Management $23 $23 Nil During 2013 the RMB received Pty Ltd Water Meters service charge infrastructure fees Yabbie Pond Water Quality $18 $18 Nil not received in 2012 as a once Pty Ltd Management Plan off charge for registering beds installed within properties on Government Funding Consultancies over $10,000 Mount Buller. Also, the RMB The RMB acknowledges There were 12 consultants received an asset for no investment in Mount Buller and engaged where total remuneration consideration which at fair Mount Stirling by the Victorian was greater than $10,000. Refer to valuation, was stated at $315,000, Government in 2012-13 as follows: the table above for details. and which has been included as income in 2012–13; ——$50,000 – Regional Major Contracts Development Victoria (RDV) There were no major contracts The change in operating funding for construction of greater than $10 million entered expenditure is primarily due to: the multi-use trail network into during the reporting period. ——Increased depreciation on and associated infrastructure Subsequent Events fixed assets of infrastructure works; and post re-evaluation from 2011; ——$125,000 – Federal Government There have been no events subsequent to the year that ——Decreases in contractors funding toward the EPIC. significantly impact on operations used during 2013; ——$125,000 – Federal Government in future years. ——Elimination of bad debts funding toward the Mount Buller in 2013; and Mount Stirling EPIC Trail. Government Advertising Expenditure ——An increase in salaries and Consultancies under wages, including the impact of Government Policy requires $10,000 the Enterprise Agreement; disclosure of all Government There were 13 consultancies that Advertising Expenditure with a total ——Increased costs in relation were less than $10,000 totalling media buy of $150,000 or greater to utilities, contracts and $59,399 during 2012–13. (exclusive of GST). No Government insurance. Advertising Expenditure was incurred by the ARMB during the reporting period. 26

Attestation for compliance Attestation on compliance with the Australian/New Zealand with the Ministerial Standing Risk Management Standard Direction 4.5.5.1 – Insurance I, John Huber, certify that the Mount Buller and Mount Stirling I, John Huber, certify that the Alpine Resort Management Board has risk management Mount Buller and Mount Stirling processes in place consistent with the Australian/New Zealand Alpine Resort Management Board Standard 4360:2004 and an internal control system is in has complied with Ministerial place that enables the executive to understand, manage and Direction 4.5.5.1 – Insurance. satisfactorily control risk exposures. The Risk, Audit and Finance committee verifies this assurance and that the risk profile of the Mount Buller and Mount Stirling Alpine Resort Management Board has been critically reviewed within the last 12 months. Strategic Direction and Operations

John Huber Chief Executive Officer

John Huber Chief Executive Officer

Risk Management The RMB has a Risk Management Implementation of In June 2012 the Victorian Policy and develops risk the Victorian Industry Managed Insurance Authority management systems to Participation Policy (VMIA) conducted a Risk assist staff to understand their In October 2003, the Victorian Framework Quality Review. The responsibilities and create a culture Parliament passed the Victorian review was based on a seven- of safety. The RMB maintains a risk Industry Participation Policy Act element maturity model informed register that identifies risks to the 2003 which requires public bodies by the Australian Standard for organisation and those associated and departments to report on the Risk Management AS/NZS ISO with the use of Crown Land. The implementation of the Victorian 31000:2009. The VMIA’s risk register, developed in association Industry Participation Policy management framework rating with the VMIA, features RMB (VIPP). Departments and public acknowledged the RMB as controls and mitigation strategies. bodies are required to apply VIPP in all tenders over $3 million having developed some good The register is reviewed on a in metropolitan Melbourne and risk management practices and regular basis to ensure proper $1 million in regional Victoria. arrangements, and that it is consideration of newly identified and existing risks. The RMB has not commenced reviewing and improving its risk any tenders or entered into any framework over time. National Competition Policy contracts worth $1 million or more Risk management principles apply during the year ended 31 October Competitive neutrality seeks to to all areas of RMB operations and 2013. enable fair competition between include health and safety, property, government and private sector environment, finance and internal Freedom of Information businesses. Any advantages or controls. The RMB’s organisational The RMB is considered to be disadvantages that government culture is built around providing a a ‘Government Agency’ under businesses may experience, safe and rewarding experience for the terms of the Freedom of simply as a result of government guests, residents and employees Information Act 1982. Accordingly, ownership, should be neutralised. visiting, living or working in the it is required to comply with The RMB continues to implement Resorts. prescribed procedures under and apply this principle in its which members of the public business undertakings. may gain access to information held by agencies. A decision to release information is made by the Authorised Officer. Annual Report 2012–13 27

The RMB has determined that the Authorised Officer for Freedom of Gifts, Benefits and Hospitality Framework Attestation Information requests during the 2012–13 reporting period is the I, John Huber, Chief Executive Officer, of Mount Buller Mount Stirling Alpine Finance Manager. Requests for Resort Management Board certify that: information under the Freedom of Information Act 1982 are subject ——my public entity has gifts, benefits and hospitality policies and procedures in place; to a $25.10 fee, and should be ——these policies and procedures are consistent with the minimum requirements and addressed to: accountabilities outlined in the Gifts, Benefits and Hospitality Policy Framework for the Victorian Public Sector – Revised April 2012 issued by the Public Sector Freedom of Information Officer Standards Commissioner; and Mount Buller & Mount Stirling ——these policies and procedures are updated, promulgated and provided to the Alpine Resort Management Board audit committee for review at least once a year. Post Office Mount Buller, VIC 3723 John Huber In 2012–13, there were no requests Chief Executive Officer for the RMB to provide information Date: 31 October 2013 under the Freedom of Information Act 1982.

Availability of other information The following is retained by the officer accountable and is available to the relevant Minister, Members of Parliament and the public on ensuring their protection from Jennifer Berensen request: unfavorable action when they do. Protected Disclosure Co-ordinator ——Details of shares held by a The RMB does not tolerate Department of Environment senior officer as nominee or improper conduct by employees, and Primary Industries held beneficially in a statutory or the taking of reprisals against PO Box 500 authority or subsidiary; those who come forward to disclose such conduct. East Melbourne Vic 3002 ——Details of changes in prices, Ph: 9637 8697 fees, charges, rates and levies; It is committed to ensuring Email: ——Details of any major external transparency and accountability in [email protected] reviews carried out; its administrative and management practices, and supports the Alternatively, disclosures of ——Details of major research and making of disclosures that reveal improper conduct or detrimental development activities; corrupt conduct, conduct involving action by the RMB or its employees ——Details of official overseas a substantial mismanagement may also be made directly to the travel undertaken including a of public resources, or conduct Ombudsman. summary of the objectives and involving a substantial risk to public The Ombudsman Victoria outcomes of each visit; health and safety or the environment. ——Details of major promotional, Level 9, 459 Collins Street public relations and marketing The RMB will take all reasonable (North Tower) activities; and steps to protect people who Melbourne VIC 3000 make such disclosures from any ——Details of assessments and Telephone: (03) 9613 6222 detrimental action in reprisal. It will measures undertaken to Toll free: 1800 806 314 also afford natural justice to the improve the occupational health Internet: www.ombudsman.vic.gov.au person who is the subject of the and safety of employees. Email: disclosure. [email protected] Compliance with Protective Disclosures Act 2012 Reporting procedures Disclosures under the Protective Disclosures Act 2012 The Protective Disclosures Act Information and procedures regarding disclosures of improper In 2012–13 there were no 2012 (Vic), has replaced the disclosures received. Whistleblowers Protection Act conduct or detrimental action by 2001. The Protective Disclosures the RMB or its employees can be The current procedures Act 2012 (Vic) enables staff to found online at; established by the public body are available on the RMB website; make disclosures about improper www.depi.vic.gov.au www.mtbuller.com.au/Resort- conduct by public bodies, DEPI Home — About Us — Management3/Our-Governance/ their staff and officers. The Act Legislation — Protected disclosures aims to ensure openness and Policies-Reports2 accountability by encouraging Reports and disclosures may people to make disclosures and be made to: 28

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

The attached financial statements for the Mount Buller and Mount Stirling Alpine Resort Management Board have been prepared in accordance with Standing Directions 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions, Australian Accounting Standards including Interpretations, and other mandatory professional reporting requirements. We further state that, in our opinion, the information set out in the Comprehensive Operating Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and accompanying notes, presents fairly the financial transactions during the year ended 31 October Financial Statements 2013 and financial position of the Mount Buller and Mount Stirling Alpine Resort Management Board at 31 October 2013. At the time of signing, we are not aware of any circumstance which would render any particulars included in the financial statements to be misleading or inaccurate. We authorise the attached financial statements for issue on 13 December 2013.

Jennifer Hutchison John Huber Glenn Thornton Chairman Chief Executive Officer Finance Manage

13 December 2013. Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2013 29

Comprehensive Operating Statement For the financial year ended 31 October 2013

Note 2013 2012 $‘000 $‘000 Income from transactions Gate entry 1(e) 3,613 3,946 Site rental 1(e) 3,756 3,784 Service charges 1(e) 3,382 3,299 Service charge – infrastructure fee 1(e) 303 – Marketing revenue 178 264 Taxi transport commission 85 109 Sale of rights to lease and develop Crown land 1(e) – – Government grants 1(e) 175 136 Interest income 1(e) 170 304 Asset Received at Fair Value 1(e) 315 – Other income 489 400 Total income from transactions 12,466 12,242

Expenses from transactions Village operations 1(f) 3,583 3,326 Visitor services 1(f) 1,991 2,064 Administration and corporate services 1(f) 3,280 3,247 Land management and environmental services 1(f) 1,293 1,204 Health services 1(f) 234 242 Marketing 1(f) 1,601 1,805 Interest expense 1(f),2(b) 124 139 Total expenses from transactions 12,106 12,027

Net result from transactions (net operating balance) 360 215

Other economic flows included in net result Net gain/(loss) on non-financial assets 3 (90) (134) Total other economic flows included in net result (90) (134)

Net result 270 81

Other economic flows – other comprehensive income Items that will not be reclassified to net result Changes in physical asset revaluation surplus 18 – (3,370) Total other economic flows – other comprehensive income – (3,370)

Comprehensive result 270 (3,289)

The above Comprehensive Operating Statement should be read in conjunction with the notes to the financial statements. 30

Balance Sheet As at 31 October 2013

Note 2013 2012 $‘000 $‘000 Assets

Financial Assets Cash and deposits 17(a) 5,809 7,908 Receivables 4 1,036 489 Total Financial Assets 6,845 8,397

Non-Financial Assets Inventories 5 18 23 Financial Statements Infrastructure, property, plant and equipment 6 163,565 161,641 Other non-financial assets 7 503 414 Total Non-Financial Assets 164,086 162,078

Total Assets 170,931 170,475

Liabilities Payables 8 1,518 1,136 Borrowings 9 2,205 2,490 Employee benefits 10 519 466 Other liabilities 12 153 212 Total Liabilities 4,395 4,304

Net Assets 166,536 166,171

Equity Contributed capital 137,290 137,195 Retained profits 6,653 6,383 Asset revaluation reserve 18 22,593 22,593

Total Equity 166,536 166,171

Commitments for expenditure 14 Contingent assets and contingent liabilities 15

The above Balance Sheet should be read in conjunction with the notes to the financial statements. Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2013 31

Statement of Changes in Equity For the financial year ended 31 October 2013

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

Balance at 31 October 2011 25,963 6,302 137,157 169,422

Net result for the year – 81 – 81 Other comprehensive income for the year (3,370) – – (3,370) Transactions with owners in the capacity as owners – – 38 38 Balance at 31 October 2012 22,593 6,383 137,195 161,171

Net result for the year – 270 – 270 Other comprehensive income for the year – – – – Transactions with owners in the capacity as owners – – 95 95 Balance at 31 October 2013 22,593 6,653 137,290 166,536

The above Statement of Changes in Equity should be read in conjunction with the notes to the financial statements.

Cash Flow Statement For the financial year ended 31 October 2013

Note 2013 2012 $‘000 $‘000 Cash Flows from Operating Activities Receipts from customers (incl GST) 12,122 12,775 Payments to suppliers and employees (incl GST) (11,547) (10,789) Interest received 172 316 Interest and other costs of finance paid (124) (139)

Net Cash Provided by Operating Activities 17(b) 623 2,163

Cash flows from Investing Activities Payments for infrastructure, property, plant and equipment (2,606) (2,884) Proceeds from sale of property, plant and equipment 74 49

Net cash from/(used in) investing activities (2,532) (2,835)

Cash Flows from Financing Activities Proceeds from Capital Contributions 95 38 Proceeds of borrowings - 102 Repayment of borrowings (285) (258)

Net cash from/(used in) financing activities (190) (118)

Net increase/(decrease) in cash and cash equivalents (2,099) (790)

Cash and cash equivalents at the beginning of the financial year 7,908 8,698

Cash and deposits at the end of the financial year 17(a) 5,809 7,908

The above Cash Flow Statement should be read in conjunction with the notes to the financial statements. 32

Notes to the Financial Statements for the year ended 31 October 2013

Note 1 Summary of (b) Basis of accounting ——non financial physical Significant Accounting preparation and measurement assets which, subsequent to Policies The accrual basis of accounting acquisition, are measured at The Mount Buller and Mount has been applied in the a revalued amount being their Stirling Alpine Resort Management preparation of these financial fair value at the date of the Board (RMB) is constituted under statements whereby assets, revaluation less any subsequent the Alpine Resorts (Management) liabilities, equity, income and accumulated depreciation and Act 1997 and has its principal expenses are recognised in the subsequent impairment losses. place of business located at reporting period to which they Revaluations are made with Mt Buller, Victoria, Australia. relate, regardless of when cash is sufficient regularity to ensure received or paid. that the carrying amounts do These annual financial statements not materially differ from their represent the audited general Judgements, estimates and fair value.

Financial Statements purpose financial statements for assumptions are required to be The accounting policies set out the Mount Buller and Mount Stirling made about the carrying value below have been applied in Alpine Resort Management Board of assets and liabilities, income preparing the financial statements for the year ending 31 October and expenses that are not readily for the year ended 31 October 2013. The purpose of the report is apparent from other sources. 2013 and the comparative to provide users with information The estimates and associated information presented for the year about the RMB’s stewardship of assumptions are based on ended 31 October 2012. resources entrusted to it. professional judgements derived from historical experience and Not-for-profit status (a) Statement of compliance various other factors that are Under the Australian Equivalent of The financial statements have been believed to be reasonable under International Financial Reporting prepared in accordance with the the circumstances. Actual results Standards (AIFRS), there are Financial Management Act 1994 may differ from these estimates. requirements that apply specifically (FMA) and applicable Australian Revisions to accounting estimates to not-for-profit entities that are Accounting Standards (AAS) which not consistent with International include Interpretations, issued are recognised in the period in which the estimate is revised and Financial Reporting Standards by the Australian Accounting (IFRS) requirements. The RMB has Standards Board (AASB). In also in future periods that are affected by the revision. analysed its purpose, objectives particular, they are presented and operating philosophy and in a manner consistent with the Judgements and assumptions determined that it does not have requirements of the AASB 1049 made by management in the profit generation as a prime Whole of Government and General application of AASs that have objective. Consequently where Government Sector Financial significant effects on the financial appropriate the RMB has elected Reporting. statements and estimates relate to apply options and exemptions Where applicable, those AAS to: within AIFRS that are applicable to paragraphs applicable to not-for- ——The fair value of land, buildings, not-for-profit entities. profit entities have been applied. infrastructure, plant & (c) Reporting entity equipment, (refer to Note 1(i)); Accounting policies are selected The financial statements cover the and applied in a manner which ——Actuarial assumptions for Mount Buller and Mount Stirling ensures that the resulting financial employee benefit provisions Alpine Resort Management Board information satisfies the concepts based on likely tenure of (RMB) as an individual reporting of relevance and reliability, thereby existing staff, patterns of leave entity. ensuring that the substance of the claims, future salary movements The RMB is an entity established underlying transactions or other and future discount rates, (refer under the Alpine Resorts events is reported. to Note 1(j). (Management) Act 1997. These annual financial statements These financial statements are Its principal address is: were authorised for issue by the presented in Australian dollars Chairman of the Mount Buller and prepared in accordance with Mount Buller and Mount Stirling and Mount Stirling Alpine Resort the historical cost convention Alpine Resort Management Board Management Board on 13 except for: Alpine Central December 2013. Summit Road Mount Buller VIC 3723 Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2013 33

Notes to the Financial Statements for the year ended 31 October 2013

Note 1 Summary of ‘Other economic flows’ are capacity as owners’ which includes Significant Accounting changes arising from market equity transfers from related Policies (continued) remeasurements. They include: government departments. The RMB is a public body acting ——gains and losses from Rounding of amounts on behalf of the Crown, and disposals; Amounts in the financial reporting to the Department ——revaluations and impairments statements (including the notes) of Environment and Primary of non-financial physical and have been rounded to the nearest Industries. intangible assets; thousand dollars, unless otherwise (d) Scope and presentation ——actuarial gains and losses stated. Figures in the financial of financial statements arising from defined benefit statements may not equate due to rounding. Comprehensive operating superannuation plans; statement ——fair value changes of financial (e) Income from transactions Income and expenses in the instruments and agricultural Income is recognised to the comprehensive operating assets; and extent that it is probable that the statement are classified according ——depletion of natural assets economic benefits will flow to to whether or not they arise from (non-produced) from their use the RMB and the income can be ‘transactions’ or ‘other economic or removal. reliably measured at Fair Value. flows’. This classification is Amounts disclosed as income is, The net result is equivalent to profit consistent with the whole of where applicable, net of returns, or loss derived in accordance with government reporting format allowances and duties and taxes. AASs. and is allowed under AASB Revenue is recognised for each 101 Presentation of Financial Balance sheet of the RMB’s major activities as Statements. Assets and liabilities are presented follows: ‘Transactions’ and ‘other economic in liquidity order with assets Service charges aggregated into financial assets flows’ are defined by the Australian Service charge revenue is and non-financial assets. system of government finance brought to account when a rate/ statistics: concepts, sources and Current and non-current assets tariff is levied or determined for methods 2005 Cat. No. 5514.0 and liabilities (non-current being service charges leviable under published by the Australian Bureau those assets or liabilities expected Section 13 of the Alpine Resorts of Statistics. to be recovered or settled more (Management) Act 1997. A service ‘Transactions’ are those economic than 12 months) are disclosed in charge infrastructure fee is also flows that are considered the notes, where relevant. levied upon site holders where to arise as a result of policy development or redevelopment Cash flow statement decisions, usually interactions leading to an increased number of Cash flows are classified according between two entities by mutual beds occurs. This is levied upon to whether or not they arise from agreement. Transactions also completion of the development. operating, investing, or financing include flows within an entity, activities. This classification is Site rental such as depreciation where the consistent with requirements under Site rental income from leased owner is simultaneously acting AASB 107 Statement of cash flows. Crown land is recognised annually as the owner of the depreciating in the comprehensive operating asset and as the consumer Statement of changes in equity statement in accordance with the of the service provided by the The statement of changes in equity terms and conditions of individual asset. Taxation is regarded as presents reconciliations of non leases. mutually agreed interactions owner and owner equity opening between the Government and balance at the beginning of the Gate entry taxpayers. Transactions can be reporting period to the closing Gate entry revenue (including from in kind (e.g. assets provided/ balance at the end of the reporting the sale of season access passes) given free of charge or for nominal period. It also shows separately is recognised when received. consideration) or where the final changes due to amounts consideration is cash. recognised in the ‘comprehensive result’ and amounts recognised in ‘other economic flows – other movements in equity’ related to ‘transactions with owners in the 34

Notes to the Financial Statements for the year ended 31 October 2013

Note 1 Summary of These expenses include all costs or residual values, a separate Significant Accounting related to employment (other depreciation rate is determined for Policies (continued) than superannuation which is each component. The estimated Land release accounted for separately) including useful lives, residual values and wages and salaries, fringe benefits depreciation method are reviewed Revenue from the sale of rights to tax, leave entitlements, redundancy at the end of each annual reporting lease and develop crown land is payments and WorkCover period and adjustments made recognised on the execution of a premiums. where appropriate. contract of sale, following approval by the Minister of Environment and Superannuation Land, earthworks, land under Climate Change. Any deposits The amount recognised in declared roads, and core cultural received prior to approval from the the comprehensive operating assets, which are considered Minister and execution of contract statement is the employer to have an indefinite life, are not of sale is recorded as unearned contributions for members of depreciated. Depreciation is not Financial Statements revenue. both defined benefit and defined recognised in respect of these assets because their service Interest contribution superannuation plans that are paid or payable during the potential has not, in any material Interest revenue is recognised reporting period. sense, been consumed during the upon gaining the control of reporting period. the right to receive the interest The Department of Treasury and payment. Finance (DTF) in their Annual The following useful lives are used Financial Statements disclose in the calculation of depreciation Grants on behalf of the State as the consistent with the prior year: Income from grants (other sponsoring employer, the net than contribution by owners) is Buildings defined benefit cost related to recognised when the RMB obtains 15 to 84 years the members of these plans as control over the contribution. an administered liability. Refer to Roads and car parks However grants and contributions DTF’s Annual Financial Statements infrastructure assets received from the Victorian State for more detailed disclosures in 50 to 80 years Government which were originally relation to these plans. appropriated by Parliament as Infrastructure assets additions to net assets or where Performance payments 2 to 100 years the Minister for Finance and the Performance payments for the Other plant and equipment Minister for Environment and RMB’s Executive Officers and 5 to 20 years Climate Change have indicated staff are based on a percentage are in the nature of owners’ of the annual salary package Interest expense contributions are accounted for provided under their employment Interest expense is recognised in as equity (contributed capital). contracts. Unpaid, but committed, the period in which it is incurred. employee performance payments Assets Received at Fair Value (g) Other economic flows are recognised as a liability in the Contributions of assets received included in the net result financial statements. Performance free of charge or for nominal Other economic flows measure payments are assessed and paid consideration are recognised at the change in volume or value annually where applicable. fair value when control is obtained of assets or liabilities that do not over them, irrespective of whether Depreciation result from transactions. these contributions are subject All infrastructure assets, buildings, Net gain/(loss) on non-financial to restrictions or conditions over plant and equipment and other assets their use. non-financial physical assets Net gain/(loss) on non-financial that have finite useful lives are (f) Expenses from transactions assets and liabilities includes depreciated. Depreciation is realised and unrealised gains Expenses from transactions are calculated on a straight-line basis, and losses as follows: recognised as they are incurred at rates that allocate the asset’s and reported in the financial year to value, less any estimated residual Revaluation gains/(losses) of which they relate. value, over its estimated useful non-financial physical assets Employee expenses life. Where assets have separate Refer to Note (i) Revaluations of Refer to Note 1(j) regarding identifiable components that non-financial physical assets. employee benefits. have distinct useful lives and/ Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2013 35

Notes to the Financial Statements for the year ended 31 October 2013

Note 1 Summary of It is deemed that, in the event Receivables Significant Accounting of the loss or destruction of an Receivables consist of: Policies (continued) asset, the future economic benefits ——statutory receivables, which Disposal of non-financial assets arising from the use of the asset will be replaced unless a specific include predominantly amounts Any gain or loss on the sale of owing from the Victorian non-financial assets is recognised decision to the contrary has been made. The recoverable amount for Government and GST input tax at the date of disposal and is credits recoverable; and determined after deducting from most assets is measured at the ——contractual receivables, which the proceeds the carrying value of higher of depreciated replacement include mainly debtors in the asset at that time. cost and fair value less costs to sell. Recoverable amount for relation to goods and services, Amortisation of intangible assets assets held primarily to generate loans to third parties and Intangible assets with finite net cash inflows is measured at accrued investment income. lives are amortised as an other the higher of the present value of Receivables are recognised initially economic flow on a straight-line future cash flows expected to be at fair value and subsequently basis over the asset’s useful life. obtained from the asset and fair measured at amortised cost, using Impairment of value less costs to sell. the effective interest method, less non-financial assets Refer to Note 1(i) in relation to the an allowance for impairment. Items of infrastructure, property, recognition and measurement of A provision for doubtful receivables plant and equipment are non-financial assets. is made when there is objective assessed annually for indicators evidence that the debts may not be of impairment. If there is an Other gains/(losses) from other economic flows collected and bad debts are written indication of impairment, the off when identified. assets concerned are tested as Other gains/(losses) from other to whether their carrying value economic flows include the gains Impairment of financial assets exceeds their recoverable amount. or losses from: At the end of each reporting Where an asset’s carrying value ——transfer of amounts from the period, the RMB assesses whether exceeds its recoverable amount, reserves and/or accumulated there is objective evidence that the difference is written-off as an surplus to net result due to a financial asset or group of other economic flow, except to the disposal or derecognition or financial assets is impaired. extent that the write-down can be reclassification; and Objective evidence includes debited to an asset revaluation financial difficulties of the debtor, ——the revaluation of the present surplus amount applicable to that default payments, debts which value of the long service leave class of asset. are more than 60 days overdue, liability due to changes in the and changes in debtor credit If there is an indication that there bond interest rates. ratings. All financial instrument has been a change in the estimate (h) Financial assets assets, except those measured of an asset’s recoverable amount Cash and deposits at fair value through profit or loss, since the last impairment loss are subject to annual review for Cash and deposits, including was recognised, the carrying impairment. amount shall be increased to its cash equivalents, comprise recoverable amount. This reversal cash on hand and cash at bank, Bad and doubtful debts for of the impairment loss occurs deposits at call and those highly financial assets are assessed only to the extent that the asset’s liquid investments with an original on a regular basis. Those bad carrying amount does not exceed maturity of three months or less, debts considered as written off by the carrying amount that would which are held for the purpose mutual consent are classified as have been determined, net of of meeting short term cash a transaction expense. Bad debts depreciation or amortisation, if commitments rather than for not written off by mutual consent no impairment loss had been investment purposes, and which and the allowance for doubtful recognised in prior years. are readily convertible to known receivables are classified as ‘other amounts of cash and are subject economic flows’ in the net result. to an insignificant risk of changes in value. 36

Notes to the Financial Statements for the year ended 31 October 2013

Note 1 Summary of Road network assets (including every five years, based upon Significant Accounting earthworks of the declared road the asset’s government purpose Policies (continued) networks) and other infrastructure classification but may occur more The amount of the allowance is the assets are measured at fair value, frequently if fair value assessments difference between the financial determined by reference to the indicate material changes in asset’s carrying amount and the asset’s depreciated replacement values. Independent valuers are present value of estimated future cost. used to conduct these scheduled revaluations. Certain infrastructure cash flows, discounted at the Land under declared roads effective interest rate. assets are revalued using acquired prior to 1 July 2008 specialised advisors. Any interim In assessing impairment of is measured at fair value. Land revaluations are determined in statutory (non-contractual) under declared roads acquired on accordance with the requirements financial assets, which are not or after 1 July 2008 is measured of the FRDs. financial instruments, professional initially at cost of acquisition and Financial Statements judgement is applied in assessing subsequently at fair value. The fair Revaluation increases or materiality using estimates, value methodology applied by the decreases arise from differences averages and other computational Valuer-General Victoria is based between an asset’s carrying value methods in accordance with AASB on discounted site values for and fair value. 136 Impairment of Assets. relevant municipal areas applied Net revaluation increases (where to land area under the arterial the carrying amount of a class (i) Non-financial assets road network, including related of assets is increased as a result Inventories reservations. of a revaluation) are recognised Inventories include stores and in ‘Other economic flows – other The fair value of plant, equipment materials used in the operation of comprehensive income’ and and vehicles, is normally the waste water treatment plant, accumulated in equity under the determined by reference to the snow clearing operation and minor asset revaluation surplus. However, asset’s depreciated replacement amounts of merchandise material. the net revaluation increase is cost. For plant, equipment and These items are stated at the lower recognised in the net result to vehicles, existing depreciated of cost and current replacement the extent that it reverses a net historical cost is generally a cost. revaluation decrease in respect of reasonable proxy for depreciated the same asset class previously Property, plant and equipment replacement cost because of the recognised as an expense (other All non-financial physical assets short lives of the assets concerned. economic flows) in the net result. are measured initially at cost and For the accounting policy on subsequently revalued at fair value Net revaluation decreases are impairment of non-financial less accumulated depreciation and recognised in ‘other economic physical assets, refer to impairment. flows – other comprehensive impairment of non-financial assets income’ to the extent that a Where an asset is received for no under Note 1(g) Impairment of credit balance exists in the asset or nominal consideration, the cost non-financial assets. revaluation surplus in respect of is the asset’s fair value at the date Non financial physical assets the same asset class. The net of acquisition. constructed by the RMB revaluation decrease recognised Non-financial physical assets such The cost of non financial physical in ‘other economic flows – other comprehensive income’ reduces as Crown land are measured at fair assets constructed by the RMB the amount accumulated in value with regard to the property’s includes the cost of all materials equity under the asset revaluation highest and best use after due used in construction, direct labour surplus. consideration is made for any on the project, and an appropriate legal or constructive restrictions proportion of variable and fixed Revaluation increases and imposed on the asset, public overheads. decreases relating to individual announcements or commitments assets within an asset class are Revaluations of non financial made in relation to the intended offset against one another within physical assets use of the asset. Theoretical that class but are not offset in Non financial physical assets opportunities that may be available respect of assets in different are measured at fair value in in relation to the asset are not classes. Any asset revaluation accordance with the Financial taken into account until it is virtually surplus is not normally transferred Reporting Directions (FRD’s) certain that the restrictions will no to accumulated funds on issued by the Minister for Finance. longer apply. derecognition of the relevant asset. A full revaluation normally occurs Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2013 37

Notes to the Financial Statements for the year ended 31 October 2013

Note 1 Summary of ——statutory payables, such as Those liabilities that are not Significant Accounting goods and services tax and expected to be settled within 12 Policies (continued) fringe benefits tax payables. months are also recognised in the provision for employee benefits as Other non-financial assets Contractual payables are classified current liabilities, but are measured Prepayments as financial instruments and at present value of the amounts Prepayments represent payments categorised as financial liabilities at expected to be paid when the in advance of receipt of goods or amortised cost. Statutory payables liabilities are settled using the services or that part of expenditure are recognised and measured remuneration rate expected to made in one accounting period similarly to contractual payables, apply at the time of settlement. covering a term extending beyond but are not classified as financial that period. instruments and not included in the (ii) Long service leave category of financial liabilities at Liability for long service leave (LSL) Intangible assets amortised cost, because they do is recognised in the provision for Intangible assets are initially not arise from a contract. employee benefits. recognised at cost. Subsequently, intangible assets with finite Provisions Unconditional LSL is disclosed useful lives are carried at cost Provisions are recognised when in the notes to the financial less accumulated depreciation/ the RMB has a present obligation, statements as a current liability amortisation and accumulated the future sacrifice of economic even where the RMB does not impairment losses. Costs incurred benefits is probable, and the expect to settle the liability within subsequent to initial acquisition are amount of the provision can be 12 months because it will not have capitalised when it is expected that measured reliably. the unconditional right to defer additional future economic benefits the settlement of the entitlement The amount recognised as a will flow to the RMB. should an employee take leave liability is the best estimate of the within 12 months. (j) Liabilities consideration required to settle Borrowings the present obligation at the end The components of this current Borrowings are initially measured of the reporting period, taking into LSL liability are measured at: at fair value, being the cost of the account the risks and uncertainties ——nominal value—component that borrowings, net of transaction surrounding the obligation. Where the RMB expects to settle within costs (refer to Note 1(k) Leases). a provision is measured using the 12 months; and cash flows estimated to settle the Subsequent to initial recognition, present obligation, its carrying ——present value—component that borrowings are measured at amount is the present value the RMB does not expect to amortised cost with any difference of those cash flows, using the settle within 12 months. between the initial recognised discount rate that reflects the time Conditional LSL is disclosed as amount and the redemption value value of money and risks specific a non current liability. There is an being recognised in net result over to the provision. unconditional right to defer the the period of the borrowing using settlement of the entitlement until the effective interest method. Employee benefits the employee has completed the Provision is made for benefits Payables requisite years of service. accruing to employees in respect Payables consist of: of wages and salaries, annual This non current LSL liability is ——contractual payables, such leave and long service leave for measured at present value. Any as accounts payable, and services rendered to the reporting gain or loss following revaluation unearned income including date. of the present value of non current LSL liability is recognised as a deferred income from (i) Wages and salaries, transaction, except to the extent concession arrangements. annual leave and sick leave that a gain or loss arises due to Accounts payable represent Liabilities for wages and salaries changes in bond interest rates for liabilities for goods and services and annual leave are recognised which it is then recognised as an provided to the RMB prior to in the provision for employee ‘other economic flow’ (refer to Note the end of the financial year that benefits, classified as current 1(g)). are unpaid, and arise when the liabilities. Those liabilities which are RMB becomes obliged to make expected to be settled within 12 future payments in respect of months of the reporting period are the purchase of those goods measured at their nominal values. and services; and 38

Notes to the Financial Statements for the year ended 31 October 2013

Note 1 Summary of RMB as lessor Receivables and payables are Significant Accounting Rental income from operating stated inclusive of the amount of Policies (continued) leases is recognised on a straight GST receivable or payable. The net (iii) Termination benefits line basis over the term of the amount of GST recoverable from, Termination benefits are payable relevant lease. or payable to, the taxation authority is included with other receivables when employment is terminated (l) Equity before the normal retirement date, or payables in the balance sheet. Contributions by owners or when an employee accepts Cash flows are presented on a Additions to net assets which have voluntary redundancy in exchange gross basis. The GST components been designated as contributions for these benefits. of cash flows arising from investing by owners are recognised or financing activities which are The RMB recognises termination as contributed capital. Other recoverable from, or payable to the benefits when it is demonstrably transfers that are in the nature taxation authority, are presented as Financial Statements committed to either terminating the of contributions or distributions operating cash flow. employment of current employees have also been designated as according to a detailed formal plan contributions by owners. Commitments and contingent without possibility of withdrawal assets and liabilities are also Transfers of net assets arising or providing termination benefits stated inclusive of GST. as a result of an offer made to from administrative restructurings encourage voluntary redundancy. are treated as distributions to or (p) Events after the reporting Benefits falling due more than contributions by owners. period 12 months after the end of the (m) Commitments Assets, liabilities, income or reporting period are discounted to expenses arise from past Commitments are disclosed at present value. transactions or other past events. their nominal value and inclusive Where the transactions result from Employee benefits on costs of the goods and services tax an agreement between the RMB (GST) payable. In addition, where Employee benefits on costs and other parties, the transactions it is considered appropriate and such as payroll tax, workers are only recognised when the provides additional relevant compensation and superannuation agreement is irrevocable at or information to users, the net are recognised as part of the before the end of the reporting present values of significant provision for employee benefits. period. Adjustments are made individual projects are stated. (k) Leases to amounts recognised in the (n) Contingent assets and financial statements for events A lease is a right to use an asset contingent liabilities which occur after the reporting for an agreed period of time in period and before the date exchange for payment. Contingent assets and contingent liabilities are not recognised in the the financial statements are Leases are classified at their balance sheet, but are disclosed authorised for issue, where those inception as either operating by way of a note (Note 15) and, events provide information about or finance leases based on the if quantifiable, are measured at conditions which existed in the economic substance of the nominal value. Contingent assets reporting period. Note disclosure agreement so as to reflect the and liabilities are presented is made about events between the risks and rewards incidental to inclusive of GST receivable or end of the reporting period and ownership. Leases of property, payable respectively. the date the financial statements plant and equipment are classified are authorised for issue where the as finance leases whenever (o) Accounting for the Goods events relate to conditions which the terms of the lease transfer and Services Tax (GST) arose after the end of the reporting substantially all the risks and Income, expenses and assets are period and which may have a rewards of ownership from the recognised net of the amount of material impact on the results of lessor to the lessee. All other associated GST, unless the GST subsequent reporting periods. leases are classified as operating incurred is not recoverable from leases. the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense. Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2013 39

Notes to the Financial Statements for the year ended 31 October 2013

Note 1 Summary of Significant Accounting Policies (continued) (q) AASs issued that are not yet effective Certain new AASs have been published that are not mandatory for the 31 October 2013 reporting period. Department of Treasury and Finance (DTF) assesses the impact of all these new standards and advises the RMB of their applicability and early adoption where applicable. As at 31 October 2013, the following standards and interpretations that are applicable to the RMB had been issued but are not mandatory for the financial year ending 31 October 2013. The RMB has not early adopted these standards.

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

AASB 9 Financial This standard simplifies requirements Beginning 1 Jan 2015 Subject to AASB’s further instruments for the classification and measurement modifications to AASB 9, of financial assets resulting from Phase together with the anticipated 1 of the IASB’s project to replace IAS changes resulting from 39 Financial Instruments: Recognition the staged projects on and Measurement (AASB 139 impairments and hedge Financial Instruments: Recognition and accounting, details of Measurement). impacts will be assessed. AASB 10 Consolidated This Standard forms the basis for 1 Jan 2014 Not-for-profit entities are Financial Statements determining which entities should be not permitted to apply consolidated into an entity’s financial this Standard prior to the statements. AASB 10 defines ‘control’ mandatory application date. as requiring exposure or rights to Subject to AASB’s final variable returns and the ability to affect deliberations on ED 238 and those returns through power over any modifications made to an investee, which may broaden the AASB 10 for not-for-profit concept of control for public sector entities, the entity will need entities. The AASB has issued an to re-assess the nature exposure draft ED 238 Consolidated of its relationships with Financial Statements – Australian other entities, including Implementation Guidance for Not- those that are currently not for-Profit Entities that explains and consolidated. illustrates how the principles in the Standard apply from the perspective of not-for-profit entities in the private and public sectors. AASB 11 Joint This Standard deals with the 1 Jan 2014 Not-for-profit entities are Arrangements concept of joint control, and not permitted to apply sets out a new principles-based this Standard prior to the approach for determining the type mandatory application of joint arrangement that exists date. Subject to AASB’s and the corresponding accounting final deliberations and any treatment. The new categories of modifications made to AASB joint arrangements under AASB 11 11 for not-for-profit entities, are more aligned to the actual rights the entity will need to assess and obligations of the parties to the the nature of arrangements arrangement. with other entities in determining whether a joint arrangement exists in light of AASB 11. 40

Notes to the Financial Statements for the year ended 31 October 2013

Note 1 Summary of Significant Accounting Policies (continued)

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

AASB 12 Disclosure of This Standard requires disclosure 1 Jan 2014 Not-for-profit entities are Interests in Other Entities of information that enables users of not permitted to apply financial statements to evaluate the this Standard prior to the nature of, and risks associated with, mandatory application date. interests in other entities and the effects Impacts on the level and of those interests on the financial nature of the disclosures will statements. This Standard replaces be assessed based on the the disclosure requirements in AASB Financial Statements eventual implications arising 127 Separate Financial Statements and from AASB 10, AASB 11 AASB 131 Interests in Joint Ventures. and AASB 128 Investments The exposure draft ED 238 proposes to in Associates and Joint add some implementation guidance to Ventures. AASB 12, explaining and illustrating the definition of a ‘structured entity’ from a not-for-profit perspective. AASB 13 Fair Value This Standard outlines the requirements 1 Jan 2013 Disclosure for fair value Measurement for measuring the fair value of assets measurements using and liabilities and replaces the existing unobservable inputs fair value definition and guidance in are relatively detailed other Australian accounting standards. compared to disclosure for AASB 13 includes a ‘fair value fair value measurements hierarchy’ which ranks the valuation using observable inputs. technique inputs into three levels Consequently, the Standard using unadjusted quoted prices in may increase the disclosures active markets for identical assets or required for assets liabilities; other observable inputs; and measured using depreciated unobservable inputs. replacement cost. AASB 119 Employee In this revised Standard for defined 1 Jan 2013 Not-for-profit entities are Benefits benefit superannuation plans, there not permitted to apply is a change to the methodology in this Standard prior to the the calculation of superannuation mandatory application date. expenses, in particular there is While the total now a change in the split between superannuation expense superannuation interest expense is unchanged, the revised (classified as transactions) and methodology is expected actuarial gains and losses (classified to have a negative impact as ‘Other economic flows – other on the net result from movements in equity’) reported on the transactions of the general comprehensive operating statement. government sector and for those few Victorian public sector entities that report superannuation defined benefit plans. AASB 127 Separate This revised Standard prescribes 1 Jan 2014 Not-for-profit entities are Financial Statements the accounting and disclosure not permitted to apply requirements for investments in this Standard prior to the subsidiaries, joint ventures and mandatory application date. associates when an entity prepares The AASB is assessing the separate financial statements. applicability of principles in AASB 127 in a not-for-profit context. As such, impact will be assessed after the AASB’s deliberation. Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2013 41

Notes to the Financial Statements for the year ended 31 October 2013

Note 1 Summary of Significant Accounting Policies (continued)

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

AASB 1053 Application This Standard establishes a differential 1 July 2013 The Victorian Government of Tiers of Australian financial reporting framework is currently considering Accounting Standards consisting of two tiers of reporting the impacts of Reduced requirements for preparing general Disclosure Requirements purpose financial statements. (RDRs) for certain public sector entities and has not decided if RDRs will be implemented in the Victorian public sector. AASB 1055 Budgetary AASB 1055 extends the scope of 1 Jan 2014 This Standard is not Reporting budgetary reporting that is currently applicable as no budget applicable for the whole of government disclosure is required. and general government sector (GGS) to NFP entities within the GGS, provided that these entities present separate budget to the parliament.

Note 2: Expenses from transactions

2013 2012 $‘000 $‘000 (a) Employee expenses: Superannuation expense 275 251 Salaries and wages 3,457 3,184 Other employee benefits 56 51 Total employee expenses 3,788 3,486

(b) Finance costs: Interest expense 124 139 Total finance costs 124 139

(c) Depreciation: Buildings 515 479 Infrastructure Assets 797 739 Leased Assets 10 2 Plant & Equipment 322 282 Total depreciation 1,644 1,502

(d) Other: Bad and doubtful debts from transactions – 82 42

Notes to the Financial Statements for the year ended 31 October 2013

Note 3: Other economic flows included in net result

2013 2012 $‘000 $‘000 Net gain/(loss) on non-financial assets Gain on sale of assets 53 4 Loss on write-off of assets (143) (138) Net gain/(loss) on disposal of physical assets (90) (134)

Note 4: Receivables Financial Statements 2013 2012 $‘000 $‘000 Current Trade Debtors 782 333 Provision for Doubtful Debts – – 782 333

Sundry debtors 122 153 Capital in-goings – 3 904 489 Non-Current Sundry debtors 132 –

Total Receivables 1,036 489

The carrying value of debtors at 31 October 2013 approximates fair value. A provision of nil (2012: nil) has been made in regard to the possible non-collection of Trade Debtors. Interest is charged on overdue site rentals and utility charges at a rate fixed by Section 2 of the Penalty Interest Rates Act 1983, which, at 31 October 2013 was 10.5% per annum. (a) Ageing analysis of receivables Please refer to Note 16 for the ageing analysis of receivables. (b) Nature and extent of risk arising from receivables Please refer to Note 16 for the nature and extent of risks arising from receivables.

Note 5: Inventories

2013 2012 $‘000 $‘000

Raw Materials 18 23 Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2013 43

Notes to the Financial Statements for the year ended 31 October 2013

Note 6: Infrastructure, Property, Plant and Equipment

2013 2012 $‘000 $‘000 Land Land at Fair Value at 2011 – Mount Buller 81,923 81,923 Land under Roads at Fair Value at 2011 – Mount Buller 25,525 25,525 Land at Fair Value at 2011 – Mount Stirling 3,240 3,240 110,688 110,688

Buildings Buildings at Cost 1,983 1,226 Buildings at Fair Value – at 2011 14,812 14,812 Less Accumulated Depreciation (994) (479) Closing WDV 15,801 15,559

Infrastructure Assets Infrastructure Assets at Cost 3,014 1,869 Infrastructure Assets at Fair Value – at 2011 31,987 32,136 Less Accumulated Depreciation (1,529) (739) Closing WDV 33,472 33,266

Leased Assets Lease at Cost 140 140 Less Accumulated Depreciation (70) (60) Closing WDV 70 80

Plant and Equipment Plant and Equipment at Fair Value 4,085 3,698 Less Accumulated Depreciation (2,501) (2,341) Closing WDV 1,584 1,357

Art work at Fair Value – at 2008 153 136

Capital Work in Progress 1,797 555

Total Infrastructure, Property, Plant and Equipment 163,565 161,641 44

Notes to the Financial Statements for the year ended 31 October 2013

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

Land Buildings Infrastructure Leased Plant and Art CWIP Total Assets Assets Equipment works $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Year ended 31 October 2012 Opening net 110,688 14,812 35,645 – 1,301 136 1,226 163,808 book value Additions – 1,129 1,185 82 382 – 110 2,888 Disposals – – (139) – (44) – – (183) Depreciation – (479) (739) (2) (282) – – (1,502)

Financial Statements Transfers – 97 684 – – – (781) – Revaluations – – (3,370) – – – – (3,370) Closing net book value 110,688 15,559 33,266 80 1,357 136 555 161,641

Year ended 31 October 2013 Opening net 110,688 15,559 33,266 80 1,357 136 555 161,641 book value Additions – 745 1,126 – 570 15 1,275 3,731 Disposals – – (142) – (21) – – (163) Depreciation – (515) (797) (10) (322) – – (1,644) Transfers – 12 19 – – 2 (33) – Revaluations – – – – – – – – Closing net book value 110,688 15,801 33,472 70 1,584 153 1,797 163,565

Land and buildings carried at fair value An independent valuation of the RMB’s land and buildings was performed by Cosgraves Property Advisers to determine the fair value of the land and buildings. The valuation, which conforms to Australian Valuation Standards, was determined by reference to the amounts for which assets could be exchanged between knowledgeable willing parties in an arm’s length transaction. Fair value is determined by direct reference to recent market transactions on arm’s length terms for land and buildings of comparable size and location to the RMB. The valuation was based on independent assessments. The effective date of the valuation is 31 October 2011. Road and infrastructure carried at fair value An independent valuation of the RMB’s road and infrastructure was performed by AssetVal. The valuation, which conforms to Australian Valuation Standards, was determined based on depreciated replacement cost of the assets. The effective date of the valuation is 31 October 2011.

Note 7: Other non-financial assets

2013 2012 $‘000 $‘000

Prepayments (current) 497 414 Intangible Assets 6 – Total Other non-financial assets 503 414 Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2013 45

Notes to the Financial Statements for the year ended 31 October 2013

Note 8: Payables

2013 2012 $‘000 $‘000

Accounts payable – current 157 590 Other creditors and accruals – current 1,361 546 Total payables 1,518 1,136

All trade and other creditors are non-interest bearing. The carrying amount of creditors at the end of the reporting period approximates fair value. (a) Maturity analysis of payables Please refer to Note 16 for the ageing analysis of payables. (b) Nature and extent of risk arising from payables Please refer to Note 16 for the nature and extent of risks arising from payables.

Note 9: Borrowings

2013 2012 $‘000 $‘000 Current Interest bearing loan (i) 262 217 Non-interest bearing loan (ii) 137 130 399 347 Non-Current Interest bearing loan (i) 418 618 Non-interest bearing loan (ii) 1,388 1,525 1,806 2,143

Total Borrowings 2,205 2,490

(i) An interest bearing loan was taken out with the Treasury Corporation of Victoria in 2007, bearing a fixed interest rate of 6.84%, repayable in quarterly instalments over 10 years. The loan is unsecured. Three interest bearing finance leases bearing an interest rate of 6.9% were entered into in 2012, repayable in monthly instalments over 2 years with a fixed balloon payment at the end of year 2. These finance leases are secured against the related assets. (ii) Non interest bearing loans relate to the deferred settlement with La Trobe University on the acquisition of Alpine Central. The loan is recorded at its net present value at the date of acquisition. The loan is unsecured.

(a) Maturity analysis of borrowings Please refer to Note 16 for the ageing analysis of borrowings. (b) Nature and extent of risk arising from borrowings Please refer to Note 16 for the nature and extent of risks arising from interest bearing liabilities. (c) Defaults and breaches During the current and prior year, there were no defaults and breaches of any of the loans. 46

Notes to the Financial Statements for the year ended 31 October 2013

Note 10: Employee provisions

2013 2012 $‘000 $‘000 Current Annual leave entitlements Unconditional and expected to settle within 12 months 161 153 Unconditional and expected to settle after 12 months 11 11 Long Service Leave entitlements Unconditional and expected to settle within 12 months 91 54 Unconditional and expected to settle after 12 months 137 128 Financial Statements Accrued day off (ADO) entitlements 10 11 Staff bonuses 24 54 434 411

Non-Current Conditional long service leave entitlements 85 55

Total Employee Benefits 519 466

Long service leave entitlements for those employees with 7 or more years’ continuous service are treated as a current liability and recognised at nominal amounts. Long service leave entitlements for those employees with less than 7 years continuous service are treated as a non-current liability and are discounted to present values.

Note 11: Superannuation Employees of the RMB are entitled to receive superannuation benefits and the RMB contributes to both defined benefit and defined contribution plans. The defined benefit plan provides benefits based on years of service and final average salary. The RMB does not recognise any defined benefit liability in respect of the plan because the entity has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The Department of Treasury and Finance discloses the State’s defined benefit liabilities in its disclosure for administered items. However, superannuation contributions paid or payable for the reporting period are included in the Comprehensive Operating Statement of the RMB. Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2013 47

Notes to the Financial Statements for the year ended 31 October 2013

Note 11: Superannuation (continued) The name, details and amounts expensed in relation to the major employee superannuation funds and contributions made by the RMB are as follows:

Scheme: Type Cont’n Range 2013 2012 (%) $’000 $’000 Emergency Services and State Super Defined Benefit 9.5-12.6 10 11 AGEST Superanuation Accumulation 9-9.25 2 – AMP Flexible Lifetime Accumulation 9-9.25 – 3 Australian Super Accumulation 9-9.25 38 31 AustSafe Superannuation Accumulation 9-9.25 1 1 Avenue Retirement Service Accumulation 9-9.25 1 1 AXA Superannuation Accumulation 9-9.25 1 – BAK Super Fund Accumulation 9-9.25 1 1 BeeDee Super Fund Accumulation 9-9.25 1 – Bendigo Super Easy Superannuation Plan Accumulation 9-9.25 2 2 BT Super Fund Accumulation 9-9.25 1 – C-Bus Accumulation 9-9.25 14 12 Colonial First State Investment Accumulation 9-9.25 14 22 Colonial First State First Choice Accumulation 9-9.25 1 1 Colonial Super Retirement Fund Accumulation 9-9.25 5 4 Dawson Super Fund Accumulation 9-9.25 1 1 Dolling Family Superannuation Accumulation 9-9.25 – 2 Edward Super Fund Accumulation 9-9.25 1 1 Equipsuper Accumulation 9-9.25 1 – First Super Accumulation 9-9.25 5 5 FirstWrap Accumulation 9-9.25 5 2 HESTA Accumulation 9-9.25 – 1 Host Plus Superannuation Accumulation 9-9.25 32 26 Health Superannuation Accumulation 9-9.25 4 4 ING Master Fund Accumulation 9-9.25 11 6 Integra Super One Path Accumulation 9-9.25 – 1 Independent Schools Super Fund Accumulation 9-9.25 1 1 IOOF Investment Management Accumulation 9-9.25 3 – Legal Super Accumulation 9-9.25 – 1 LUCRF Super Accumulation 9-9.25 1 1 MLC Masterkey Superannuation Accumulation 9-9.25 12 10 MLC Navigator Accumulation 9-9.25 10 9 Motor Trades Association Accumulation 9-9.25 1 3 P & D Super Fund Accumulation 9-9.25 – 1 Personal Choice Retirement Plan Accumulation 9-9.25 1 1 Railton-Stewart Super Fund Accumulation 9-9.25 – 1 Recruitment Super Accumulation 9-9.25 6 2 Retail Employees Superannuation Trust Accumulation 9-9.25 9 8 Share Superannuation Accumulation 9-9.25 1 – Sunsuper Superannuation Fund Accumulation 9-9.25 24 18 Tasplan Accumulation 9-9.25 5 6 Tibmin Superannuation Accumulation 9-9.25 1 1 Tower Australia Ltd Accumulation 9-9.25 1 1 Vic Super Accumulation 9-9.25 54 49 Vision Superannuation Accumulation 9-9.25 8 8

Total contributions for the period were $289,837 (2012: $258,653) and there was $28,267 outstanding as at 31 October 2013 which is listed in Trade Creditors. 48

Notes to the Financial Statements for the year ended 31 October 2013

Note 12: Other liabilities

2013 2012 $‘000 $‘000

Deferred revenue – current 153 212

Note 13: Leases Crown land Crown Land is recorded in the accounts of the RMB at the Cosgraves Property Advisers valuation. The RMB has brought to account the rental revenue in relation to the leased sites and does not account for depreciation since

Financial Statements the class of assets is defined as land. The RMB, acting as a Committee of Management under Section 38 of the Alpine Resorts (Management) Act 1997, manages 176 Crown lease arrangements with site holders. The lease arrangements cover lease periods up to ninety-nine years. Gas network The right to operate the LP Gas system was licensed to Indigo Shire Council. The RMB has retained the majority of the infrastructure assets associated with the delivery of gas to the site holders on the mountain. In 2013 the RMB has extended the lease to use these assets to Indigo Shire Council for ten years and will receive 3% of Gross revenue from the sale of gas during the period of the lease. The lease contains provisions for further ten year options. All assets remain the property of the RMB at the conclusion of the lease period.

2013 2012 $‘000 $‘000 Non–cancellable operating lease receivables Not longer than 1 year 3,824 3,851 Longer than 1 year and not longer than 5 years 11,768 13,309 Longer than 5 years 78,679 78,231 94,271 95,391

Note 14: Commitments for expenditure The following commitments have not been recognised as liabilities in the financial statements:

2013 2012 $‘000 $‘000 (a) Capital expenditure commitments Property, plant and equipment (a) Within one year 378 - Later than one year but not later than 5 years 1,736 1,736 Longer than 5 years - - Total capital expenditure commitments 2,114 1,736

(b) Operating expenditure commitments Other operating commitments (b) Within one year 2,160 2,057 Later than one year but not later than 5 years 5,275 4,456 Longer than 5 years 268 1,023 Total operating expenditure commitments 7,703 7,536 Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2013 49

Notes to the Financial Statements for the year ended 31 October 2013

Note 14: Commitments for (b) In regards to future operating — An agreement has been entered into expenditure (continued) commitments, the RMB has the following: with DSE for the ‘Burramys Recovery — An annual commitment to Buller Ski Plan’. This commitment involves the (a) The RMB has been allocated a expenditure of $1.163 million over five grant of $1.55 million (excl GST) from Lifts Pty Ltd for snow making. $221,484 + GST was paid in 2012–13. The dollar years starting in the 2005–06 financial the Victorian Department of Transport year. This plan is currently under review to assist in funding the Buller/Stirling value of this commitment for 2013–14 is approximately $227,021 + GST. for 2010-15. The amount of $65,000 Touring Link road project. The funding is has been committed for the 2013–14 — A commitment exists to sponsor the conditional upon receiving other grant financial year. funds to render the project fully financed. annual Victorian Inter-Schools Skiing The project involves the construction of Competition for $45,000 per annum — A cleaning contract was entered into a link road between Mount Buller and plus CPI. A new agreement was made on 12 April 2010 and the base cost of Mount Stirling which will provide an on 1 January 2013 for 5 years with an the contract is $122,727 per annum. additional emergency access road should option for a 5 year extension. The cleaning contract is for one year and subject to annual performance the existing Mount Buller road be closed — A commitment to the Regional Tourism reviews. The contract term has been temporarily for any reason. Board for $43,146 for marketing and extended for a further three one year product development of North East $186,363 of the allocated funding has periods and expires on 11th April 2014. been received as at 31 October 2013. regional Victoria. — The Mansfield Medical Clinic Pty Ltd Preliminary design work and other — A commitment to the Alpine Resorts and Churchill Drive Pty Ltd has been tasks undertaken in connection with Coordinating Council (ARCC) for issued with a license to operate the the development of a planning permit $415,548 per annum, as directed by Mt Buller Medical Centre over 3 snow application have been completed. The the Minister. Board has committed its own funds (via seasons, commencing in 2012. A — A commitment to Mansfield-Mt Buller the Capital Improvement Fund – refer note service fee is paid by the RMB to Regional Tourism Association Ltd 17) to the project, and lobbies the Federal MMC of $171,000 per annum, indexed (trading as High Country Reservations) Government for an allocation of funds according to annual CPI. for the provision of tourist information when opportunities become available. — A new transport agreement was services based in Mansfield and the entered into for five years starting on The project is anticipated to cost provision of visitor information during the first day of the 2010 declared snow approximately $5 million. the winter season based on Mt Buller. season. The base cost of the contract An amount of $72,947 + GST has A contract has been executed with is $454,135 per annum with the RMB been committed for the Mansfield- GHD for preliminary work for the Water having the further option to add five based visitor information services for Sustainability Security Project. This one year extensions. The 2013–14 2013–14 and $25,000 + GST for the Mt contract will be completed in 2013–14 commitment approximates $545,989. with $377,767 + GST of the contract Buller based information services. — A new contract with Octagon Australia remaining. — A garbage collection contract was and the Mansfield Shire Council to entered into on 1 June 2005 and conduct one Targa High Country event the base cost of the contract is each year from 2013 to 2017. The RMB $375,000+GST per annum. The RMB commits $30,000 in sponsorship each have agreed with the contractor to year made up of $20,000 cash plus up extend the contract until 2018. to $10,000 of agreed in kind support, indexed according to annual CPI. 50

Notes to the Financial Statements for the year ended 31 October 2013

Note 15: Contingent assets and liabilities There are 5 claims that have been made against the RMB by visitors. The claims are currently being investigated by insurance assessors. The RMB has accounted for $77,543 of costs incurred in investigating these claims by our insurer. Should there ultimately prove to be any substance to each claim the liability to the RMB would be limited to the $25,000 insurance excess per claim.

Note 16: Financial instruments (a) Significant accounting policies The RMB’s principal financial instruments comprise of: ——cash assets;

Financial Statements ——term deposits; ——receivables; ——payables; and ——borrowings. Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement, and the basis on which income and expenses are recognised, with respect to each class of financial asset, financial liability and equity instrument above are disclosed in Note 1 to the financial statements. The carrying amounts of the RMB’s financial assets and financial liabilities by category are in the table below.

Note Category Carrying Carrying amount amount 2013 2012 $‘000 $‘000 Financial assets Cash and deposits 17(a) N/A 5,809 7,908 Receivables 4 Loans and receivable 1,036 489 (at amortised cost) Total financial assets

Financial liabilities Payables 8 Financial liabilities measured 1,518 1,136 at amortised cost Interest bearing liabilities 9 Financial liabilities measured 680 835 at amortised cost Non-interest bearing loans 9 Financial liabilities measured 1,525 1,655 at amortised cost Total financial liabilities 3,723 3,626

(b) Credit risk Credit risk arises from the financial assets of the RMB, which comprise cash and deposits, trade and other receivables. The RMB’s exposure to credit risk arises from the potential default of a counter party on their contractual obligations resulting in financial loss to the RMB. Credit risk is measured at fair value and is monitored on a regular basis. Credit risk associated with the RMB’s financial assets is minimal because the majority of debtors arise under lease arrangements and default of payment would constitute a breach of the contractual lease agreement which could result in termination of the lease. Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2013 51

Notes to the Financial Statements for the year ended 31 October 2013

Note 16: Financial instruments (continued) (b) Credit risk (continued) The RMB does not engage in hedging for its financial assets and mainly obtains financial assets that are on fixed interest for the term of the deposit. Provision of impairment for financial assets is recognised when there is objective evidence that the RMB will not be able to collect a receivable. Objective evidence includes previous experience, financial difficulties of the debtor, default payments and debts which are more than 60 days overdue. The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represents the RMB’s maximum exposure to credit risk without taking account of the value of any collateral obtained. While arrangements have been made with certain debtors for commercial reasons, 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:

($ thousand) Receivables Weighted Carrying Interest rate exposure Not past Past due but not impaired Impaired average amount due and not financial Fixed Variable Non- Less 1–3 3 Greater effective impaired assets interest interest interest than 1 months months than interest rate rate rate bearing month – 1 year 1 year % 2013 6.62 1,036 493 – 543 896 – 17 123 – – 2012 3.96 489 132 – 357 364 – 34 91 – –

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

52

Notes to the Financial Statements for the year ended 31 October 2013

Note 16: Financial instruments (continued) (c) Liquidity risk (continued) The following table discloses the contractual maturity analysis for the RMB’s contractual financial liabilities.

($ thousand) Weighted Carrying Interest rate exposure Nominal Maturity Dates average amount amount Fixed Variable Non- Less 1–3 3 1–5 More than effective interest interest interest than 1 months months years 5 years interest rate rate bearing month – 1 year rate 2013 % Payables – 1,518 – – 1,518 1,518 – 1,518 – – –

Financial Statements Borrowings 5.69 2,205 2,205 – – 2,205 – 48 351 1,041 765 3,737 2,205 – 1,532 3,737 – 1,580 351 1,041 765

2012 Payables – 1,136 – – 1,136 1,136 – 1,133 3 – – Borrowings 5.74 2,490 2,490 – – 2,490 – 42 306 1,210 932 3,626 2,490 – 1,136 3,626 – 1,175 309 1,210 932

(d) Market risk The RMB’s exposure to market risk is primarily through interest rate risk which might arise primarily through the Board’s interest bearing liabilities. Minimisation of risk is achieved by mainly undertaking fixed rate or non-interest bearing financial instruments. The RMB’s exposure to interest rate risk is set out in the following table:

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

2013 Carrying amount Net result Equity Net result Equity Financial assets: Cash and cash equivalents 5,809 (116) (116) 116 116 Receivables 1,036 (10) (10) 10 10 Financial liabilities: Payables 1,518 – – – – Borrowings 2,205 – – – – Total increase/(decrease) (126) (126) 126 126

Note 17: Cash flow information (a) Reconciliation of cash and cash equivalents

2013 2012 $‘000 $‘000

Cash at bank and on hand 698 996 Deposits on call 5,111 6,912 Balance as per cash flow statement 5,809 7,908 Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2013 53

Notes to the Financial Statements for the year ended 31 October 2013

Note 17: Cash flow information (continued) (a) Reconciliation of cash and cash equivalents (continued) The RMB does not have access to a bank overdraft as at 31 October 2013. The weighted average interest rate applicable to cash at bank and on hand is 1.77%. The deposits on call are interest bearing floating rates between 2.45% and 2.57%, with an average maturity of 8 days. Included in these cash balances are amounts set aside for use as the RMB’s Snow Drought Fund of $600,000 (2012: $600,000), Debt Repayment Fund of $1,000,000 (2012: $1,000,000) and Capital Improvement Fund of $1,200,000 (2012: $1,200,000). These funds have been established to comply with the Minister of Environment and Climate Change’s Alpine Reform Package program, the aim of which was to improve financial governance and thus the financial sustainability of the Alpine Resort Management Boards. The Snow Drought Fund may be drawn upon with Ministerial approval in the event of a poor snow season which leads to a liquidity shortage as a result of a reduction in visitor related revenue. The Debt Repayment Fund will be drawn upon to repay outstanding debt when required, in times of low cash resources and/or financial hardship. The purpose of the Capital Improvement Fund is to provide a pool of internally generated funds to finance asset replacement and capital works expenditure. (b) Reconciliation of net result for the period to net cash flows from operating activities

2013 2012 $‘000 $‘000 From Operating Activities to Operating Profit Operating Profit/(Loss) for the period 270 81 Non-cash movements: Depreciation 1,644 1,502 Asset Received at Fair Value (315) – Movements included in investing and financing activities: Net (Profit)/Loss on Sale of Fixed Assets 90 134

Movements in assets and liabilities: Decrease/(Increase) in Trade and Other Debtors (547) (46) Decrease/(Increase) in Inventories 5 2 Decrease/(Increase) in Other Current Assets (83) 15 Decrease/(Increase) in Other Non-Current Assets – 3 Increase/(Decrease) in Trade and Other Creditors Relating (435) 443 to Operating Activities Increase/(Decrease) in Current Provisions 23 62 Increase/(Decrease) in Non-Current Provisions 30 (25) Increase/(Decrease) in Unearned Revenue (59) (8) Net cash flows from/(used in) operating activities 623 2,163 54

Notes to the Financial Statements for the year ended 31 October 2013

Note 18: Asset revaluation reserve

2013 2012 $‘000 $‘000

Balance at beginning of the financial year 22,593 25,963 Revaluation of land, buildings and infrastructure – (3,370) Balance at the end of the financial year 22,593 22,593

Note 19: Responsible persons a) Board meetings Financial Statements The following table records the attendance of members at board meetings between 1 November 2012 and 31 October 2013:

Total Meetings Meetings Board Members while in office Attended Jennifer Hutchison (Chairman) 10 10 Dean Belle (Deputy Chairman) 10 10 Richard Brooks 5 5 Dr Kate Brooks 10 7 Leanne (Lea) Corbett 3 3 Andrew Evans 5 4 Elaine Farrelly 2 2 John Lithgow 5 5 Bryce Moore 10 10

b) Responsible persons The names of persons who were responsible persons at any time during the financial year were: ——Ryan Smith MLA, (Minister for Environment and Climate Change) ——Jennifer Hutchison, (Chairman of RMB) ——Dean Belle, (Deputy Chairman of RMB) ——Richard Brooks, (RMB Member) ——Dr Kate Brooks, (RMB Member) ——Lea Corbett, (RMB Member) ——Andrew Evans, (RMB Member) ——Elaine Farrelly, (RMB Member) ——John Lithgow, (RMB Member) ——Bryce Moore, (RMB Member) ——John Huber, (Chief Executive Officer) Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2013 55

Notes to the Financial Statements for the year ended 31 October 2013

Note 19: Responsible Shares John Huber is Chairman of persons (continued) There were no interests in the the Board of the Mansfield- b) Responsible persons shares of related entities held by Mount Buller Regional Tourism (continued) Responsible Persons of the RMB Association Ltd (MMBRTA), on the during the financial period ended Board of Alpine Regional Tourism Remuneration of 31 October 2013. (BART), the North East Victoria Responsible Persons Tourism Board (NEVT) and the Remuneration received, or due Related party transactions Alpine Resort Coordination Council and receivable from the RMB in Jennifer Hutchison is a member of (ARCC) Co-operation Committee. connection with the management the Alpine Resorts Coordinating Mr Huber is a member of the of the RMB for the financial period Council (ARCC). Hume Regional Management ended 31 October 2013 was Dean Belle is a Board member Forum Committee. Mr Huber $289,443 (2012: $295,919). The of the Mansfield-Mount Buller is also a director of the Mount number of responsible persons Regional Tourism Association Buller Arts Association. Mr Huber whose remuneration from the RMB (MMBRTA). received no direct remuneration was within the specified bands is from these positions. as follows: Richard Brooks is a member of the Ski Club of Victoria. $000’s 2013 2012 Dr Kate Brooks has no related 1–10 6 6 interests in the operations of the 11–20 1 1 RMB. 180–190 – – Lea Corbett is engaged by the 231–240 1 1 ARCC to consult Lake Mountain The relevant Minister’s and Mt Baw Baw Independent Task remuneration is reported Group Stage 2. separately in the financial Andrew Evans is a member of the statements of the Department of Alkira Ski Cub Inc, an organisation Premier and Cabinet. which is a leaseholder on Mount Retirement Benefits of Buller. Responsible Persons Elaine Farrelly has no related There were no retirement benefits interests in the operations of the paid by the RMB in conjunction RMB. with the retirement of Responsible John Lithgow is a Board member Persons of the RMB during the of the Mansfield Mt Buller Cycling financial year. Club. Loans Bryce Moore is a shareholder in As at 31 October 2013 there the Merrijig Ski Club Co-operative were no loans in existence that Ltd and a member of the Merrijig have been made, guaranteed Ski Club, an organisation which is or secured by the Board to a a leaseholder on Mount Buller. Mr Responsible Person of the RMB or Moore is also a member of the Ski a related party of a Responsible Club of Victoria. Person. 56

Notes to the Financial Statements for the year ended 31 October 2013

Note 19: Responsible persons (continued) The following additional transactions have been entered into with related party entities:

2013 2012 $‘000 $‘000 Ski Club of Victoria Revenue received (1) 73 66

Merrijig Ski Club Revenue received (1) 24 25

Mansfield Mount Buller Regional Tourism Association Financial Statements Revenue received 5 11 Other services paid (138) (123)

Alpine Resorts Coordinating Council Contributions paid (266) (263)

Alkira Ski Club Revenue received (1) 31 –

Taungurung Clans Aboriginal Corporation Other Services Paid (2) – (9) (1) Revenue received includes site rents which are levied in accordance with the site lease contract and service charges using a formula that is equally applied to all sites, and payments for advertising in RMB collateral and the website as well as car park season passes. (2) Entities are not related parties of the RMB in 2012–13.

Note 20: Remuneration of executives The number of executive officers, other than responsible persons, and their total remuneration during the reporting period are shown in the first two columns in the table below in their relevant income bands. The base remuneration of executive officers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, long service leave payments, allowances, vehicles, redundancy payments and retirement benefits. The total annualised equivalent provides a measure of full time equivalent executive officers over the reporting period. Several factors have affected total remuneration payable to executives over the year. A number of employment contracts were completed and renegotiated during the year and a number of executives received bonus payments during the year. These bonus payments depend on the terms of the individual employment contracts. Also the cessation of employment by executives result in payments of annual leave also included in total remuneration. Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2013 57

Notes to the Financial Statements for the year ended 31 October 2013

Note 20: Remuneration of executives (continued) The number of executive officers whose remuneration falls with in the specified bands above $100,000 is as follows:

Income band Total Remuneration Base Remuneration $000’s 2013 2012 2013 2012 No. No. No. No. 101 – 110 – – 2 1 111 – 120 – 1 1 – 121 – 130 4 1 1 1 131 – 140 – – – 1 141 – 150 1 – – – 151 – 160 – 1 – – 161 – 170 1 – – – 181 – 190 – 1 – – 241 – 250 – – – – Total number of executives 6 4 4 3 Total annualised employment 5.51 5.49 5.51 5.49 equivalents (AAE) 1 Total Amount2 $815,941 $822,729 $597,289 $656,631

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

Note 21: Auditor’s Remuneration

2013 2012 $‘000 $‘000 Audit Services Victorian Auditor-General 20 21

Note 22: Subsequent events No matters or circumstances have arisen since the end of the reporting period which may significantly affect the operations of the RMB, the result of those operations, and the state of affairs of the RMB in future financial years. 58

Notes to the Financial Statements for the year ended 31 October 2013

Note 23: Consultants Engaged In 2012–13, the RMB engaged 25 Consultancies where the total fees payable to consultants were $701,550 (2012: $405,156). There were 13 consultancies that were less than $10,000 totalling $59,399. The following table lists the consultants engaged in 2012–13 where total remuneration was $10,000 or above.

($ ‘000) Consultant Purpose of Total approved Expenditure Future committed consultancy project fee 2012–13 expenditure ex GST ex GST Ex GST Biosis Research Environmental Consultancy & Analysis $94 $94 Nil Cox Architecture Pty Ltd Architecture Design & Consulting $122 $122 Nil Feehan Consulting Pty Ltd Water Project Consultancy $15 $15 Nil Financial Statements GHD Pty Ltd Sustainable Water Security Consultancy $512 $134 $378 Inspiring Place Pty Ltd Strategic Management Design & $21 $21 Nil Consultation Interlandi Mantesso Pty Ltd Design & Manage Day Visitor Upgrade $105 $105 Nil Jenham Solutions Pty Ltd Resort Operations Consulting & Reports $27 $27 Nil Keaney Planning Planning Scheme Amendments $22 $22 Nil Russell Kennedy Pty Ltd Legal Services $43 $43 Nil Smec Australia Pty Ltd Consulting Services $19 $19 Nil Watergroup Pty Ltd Project Management Water Meters $23 $23 Nil Yabbie Pond Pty Ltd Water Quality Management Plan $18 $18 Nil Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2013 59 60 Financial Statements Disclosure Index

Legislation Requirement Page ref. Accountable Officer’s declaration SD 4.2(j) Sign off requirements 1 & 3 Charter and purpose FRD 22D Objectives, functions, powers and duties 4 FRD 22D Manner of establishment and responsible Minister 4 FRD 22D Nature and range of services provided 12-14 Financial information FRD 22D Operational and budgetary objectives 5 FRD 22D Summary of the financial results 5 FRD 22D Major changes or factors affecting performance 25 FRD 22D Subsequent events 25 FRD 22D Significant changes in financial position during the year 25 Governance and organisational structure FRD 22D & SD2.2(f) Organisational structure 11 FRD 22D Occupational health and safety policy 23 FRD 22D Employment and conduct principles 22 FRD 29 & 22D Workforce Data disclosures 23 FRD 15B Executive officer disclosures Other information FRD 10 Disclosure index IBC FRD 25 & 22D Victorian Industry Participation Policy disclosures 26 FRD 22C Details of consultancies in excess of $10 000 25 FRD 22C Details of consultancies under $10 000 25 FRD 22D Disclosure of government advertising expenditure No disclosure FRD 12A Disclosure of major contracts 25 FRD 22D Application and operation of Freedom of Information Act 1982 25 FRD 22D Compliance with Building Act 1993 14 FRD 22D Statement on National Competition Policy 26 FRD 22D Application and operation of Protected Disclosures Act 2012 27 FRD 24C Reporting of office-based environmental impacts N/A FRD 22D Statement of availability of other information 27 SD 4.5.5 Risk management compliance attestation 26 SD 4.5.5.1 Insurance attestation 26 PC 2012/02 Gifts, benefits and hospitality attestation No disclosure SD 4.2(g) General information requirements Entire document Legislation Alpine Resorts (Management) Act 1994 4 Building Act 1993 14 Financial Management Act 1994 28 Freedom of Information Act 1982 25 Protected Disclosures Act 2012 27 Victorian Industry Participation Policy Act 2003 26 Print and design FRD 30 Standard requirements for the design and print of annual reports Entire Document Acronyms FRD – Financial Reporting Direction SD – Standing Direction PC – Premier’s Circular © State of Victoria, Mount Buller & Mount Stirling Alpine Resort Management Board 2014. This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968. Mount Buller & Mount Stirling Alpine Resort Management Board ABN 44 867 982 534 Alpine Central, Mount Buller Victoria 3723 Telephone: 03 5777 6077 Facsimile: 03 5777 6219 Email: [email protected]

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