ANNUAL REPORT 2017–18 Acknowledgement Image Acknowledgements Contents of Country

Aboriginal people, through their rich culture, have Cover Coolart Homestead, been connected to the land and sea, for tens of image Coolart Historic Area thousands of years. Parks Victoria respectfully Inside Spotted Pardalote – Murray River acknowledges Aboriginal Traditional Owners, their cover Reserve. Jeremy Tscharke Area cultures, knowledge and their continuing connection image Chief Ranger – Parks Victoria to and cultural obligation to care for Page 7 Murray Sunset National Park Chair’s Overview ii their Country. Page 8 Parks Victoria Marine Pest Officer Chief Executive Officer’s Overview iii – Waratah Bay Parks and Waterways Page 9 Anglesea Heath About Parks Victoria 1 Page 11 Gunaikurnai Rangers Our Achievements 5 Parks Victoria manages many sites such as piers, – Buchan Caves Reserve Conserving Victoria’s Special Places 7 waterways, ports, bays, historic buildings, trails, Page 13 Rock art urban parks, small conservation reserves and large Connecting People and Parks 15 national and state parks. For the sake of brevity, Page 15 Junior Ranger program Providing Benefits Beyond Park Boundaries 23 these are collectively referred to in this document as – You Yangs Regional Park ‘parks’, unless a specific type of site is stated. Page 17 Sherpa volunteer program Enhancing Organisational Excellence 30 – Dandenong Ranges National Park For further information about Parks Victoria and Compliance and Disclosures 41 the parks it manages visit www.parks.vic.gov.au Page 20 Walk in the Park program Financial Management Compliance Attestation 59 or call 13 1963. – You Yangs Regional Park Page 23 Planned burning program Financial Report for the year ended 30 June 2018 61 Copyright © State of Victoria, Parks Victoria 2018 Level 10, 535 Bourke Street, Melbourne VIC 3000 Page 26 Oscar Vintage Coffee Van ISSN 1448 – 9082 Page 27 Parks Victoria CEO Matthew Jackson, ISSN 1448 – 9090 (online) Alysia Brandenburg and John Published on www.parks.vic.gov.au Kenwright attending the Qantas Australian Tourism Awards – Perth Page 31 Scar tree – Grampians National Park Page 36 Aerial surveying Inside Wombat – Wilsons Promontory back cover National Park. Richard Southerton image Ranger – Parks Victoria

B About Parks Victoria Parks Victoria Annual Report 2017–18 i Chair’s Overview Chief Executive Officer’s Overview

In accordance with the Financial Management Act We also initiated a number of programs to tackle I am proud to present an outline of our service The Parks Victoria Act 2018 will establish Parks 1994, I am pleased to present the Annual Report for our visitor management challenge to ensure that delivery and key achievements. Victoria as a more autonomous park management Parks Victoria for the 2017–18 financial year. our visitors have a great experience, while protecting agency. We can now move forward with clarity This year’s operating surplus was primarily due to the the very environmental values that visitors want and certainty around the powers and resources On behalf of the Board, I would like to sincerely timing of project and tied expenditure, and increased to enjoy. A significant initiative in this area was to that will be available for Parks Victoria to deliver thank our dedicated staff who are there every revenues from existing commercial activities. complete the detailed planning for a major upgrade on our environmental, cultural, community and day caring for our parks, waterways and coasts: of visitor facilities in the Port Campbell National Park, The 2017–18 financial year was Park Victoria’s 21st government expectations. and the many volunteers who also make such particularly at the Twelve Apostles. These works will year of operation, and was, in many ways, our a large contribution. Our business plan for 2018–19 includes key actions commence later in 2018. ‘coming of age’ year. such as: I also thank and acknowledge the former Chair, Our commercial operations will never be the major Over the past year we made some notable changes Andrew Fairley AM, and former Board Members: • enhancing our conservation and research part of our work, but it is vital that they are well including: Deputy Chair, Andrew Grant, Professor Robert Wallis, investment managed to provide good visitor services, to support and Natalie O’Brien. Their contributions were significant. • publicly promoting our environmental research many community groups that are our tenants, and • a significant capital works schedule that delivers skills and capability through media and Our primary role is one of conservation of this to ensure that Parks Victoria is not inappropriately world class nature based tourism experiences, communications precious natural estate for generations yet to come. subsidising commercial activities. Significant and sports and recreation opportunities in our Key priorities for the year were to further progress improvements were made over the year in the • enhancing our website and improving how we parks partnership agreements with Traditional Owners, management and oversight of these operations. interact with the public, including through social • the largest Seasonal Rangers program ever to continue conservation planning, to significantly media platforms I would like to thank our Minister, the Hon. Lily delivered by recruiting up to 100 Seasonal increase our investment in environmental research, D’Ambrosio MP, for her strong support. I also • increasing front line ranger capacity with Rangers, three times more Rangers than the and to continue to actively tackle the major challenge thank other Board Members and Matthew Jackson 53 rangers across Victoria 2017–18 financial year of introduced species in our parks and marine CEO, for their expertise, passion and wise counsel environments. A good example is our ongoing • establishing the Managing Country Together • a strong focus on the culture of the organisation throughout my initial time as Chair. program at Wilsons Promontory National Park to Directorate to strengthen our commitment I continue to be inspired by our diverse workforce’s undertake integrated ecological burning and grazing The next year will bring many challenges and towards working with Traditional Owners talent, passion and ongoing commitment to the control to reduce the now-dominant cover of Coast opportunities. With strengthened funding and a new across the State work that we do. I am proud of the entire team Tea Tree and allow the grassy woodland habitat to Parks Victoria Act to come into force this year, we are • restructuring the Executive Management Team across the organisation and all the work they have re-establish. well placed to meet these challenges and continue and the Commercial, and Marketing and put into making Parks Victoria the success it is today. to protect and manage our parks, waterways and Significant new funding was provided by the Communications Divisions. marine environments. I look forward to more to come in the 2018–19 Victorian Government to strengthen on-ground This past year saw significant outcomes for Parks and beyond, which promises exciting times for park management through the recruitment of an Victoria. As a result of the Victorian State Budget Parks Victoria. additional 53 rangers. All of these positions have 2018–19, we secured a record financial investment been filled, resulting in a diverse group of skilled new of $70.6m (over four years) and $20m ongoing people joining our team. funding.

The Victorian Government has also committed a We maintained our commitment to continual safety significant increase in Park’s Victoria’s base funding improvement to support our employees, who have for the coming financial year, which will further also taken personal ownership of our safety journey. strengthen our core conservation work and quality Our ongoing Safety First Zero Injuries Initiative Jeff Floyd visitor services. helped drive a positive safety culture across our Chair 2017-current We continued to work on our vision of Healthy organisation and resulted in a 47 per cent reduction Parks Victoria Parks Healthy People, in particular working to ensure in our Total Recordable Injury Frequency Rate Matthew Jackson healthy parks underpins all of our activities. compared to the previous period. Chief Executive Officer Our ongoing commitment to working in partnership with Traditional Owners across Victoria continues to be a priority focus and inspires the organisation towards achieving our reconciliation journey.

ii Chairman’s Overview Parks Victoria Annual Report 2017–18 iii About Parks Victoria

Who we are What we manage Our Vision Healthy Parks

Parks Victoria commenced operations on 12 December The network of parks that we manage includes Parks Victoria is a world-class park service ensuring Healthy People 1996 and was established as a statutory authority national and state parks, marine parks and healthy parks for healthy people. Healthy Parks Healthy People is the very foundation under the Parks Victoria Act 1998, to manage Victoria’s sanctuaries, wilderness areas, regional and of how we manage parks and gives us the diverse parks system. In recent years, the area that metropolitan parks. Within the estate there are opportunity to improve the health of both our we care for has increased to 4.1 million hectares, thousands of Aboriginal and post-European cultural Our Purpose parks and communities. or 18 per cent of the State. and heritage sites, significant gardens and around 70 per cent of Victoria’s coastline. Parks Victoria At Parks Victoria, we inspire the community to Healthy Parks Healthy People aims to unlock the power We manage this estate in partnership with Traditional is also the Local Port Manager for Port Phillip Bay, conserve and enjoy Victoria’s unique natural and of nature and parks for their preventative and Owners, Government and non-government Western Port and Port Campbell, and the Waterways cultural heritage. Together, we care for Country and restorative health and wellbeing benefits, while organisations, park neighbours, friends’ groups Manager for the Yarra and Maribyrnong rivers. promote the value of our parks and waterways for conserving biodiversity. and the broader community. the benefit of all Victorians and their visitors. Healthy Parks Healthy People has become We are governed by a Board appointed by the Minister Administrative Boundaries a worldwide movement that recognises the for Energy, Environment and Climate Change. The Our organisation manages land and facilitates fundamental connections between human health Board appoints a Chief Executive Officer to manage on-water recreation across five regions: and environmental health. the day-to-day operations of Parks Victoria. • Melbourne Metropolitan Parks As stipulated in the Parks Victoria Act 1998, our functions are: • Melbourne Marine and Maritime Our Planning Framework • to provide services to the State and its agencies • Northern Victoria for the management of parks, reserves, and other Our planning framework was developed to address requirements arising from legislation and the Victorian • Western Victoria land under control of the State Government Performance Management Framework. It comprises: • Eastern Victoria • with approval of our Minister, to provide services Requirements to the owner of any other land used for public Department of Environment, Land, Minister for Energy, Environment purposes for the management of that land. Our Ministers Water and Planning and Climate Change Parks Victoria Act 1998 In carrying out our functions, we strive to act in an environmentally sound and responsible manner. The responsible ministers from 1 July 2017 to 30 DELWP/PV Management Services Agreement June 2018 were the Hon. Lily D’Ambrosio MP, Minister for Energy, Environment and Climate Change, and the Hon. Luke Donnellan MP, Department of Economic Minister’s Statement • Corporate Plan Development, Jobs, Transport of Expectations • Annual Business Plan and Budget Minister for Ports. and Resources • Statement of Corporate Intent

DEDJTR/PV Management Services and Ports Agreements

Outputs 10 year Strategic Plan (Shaping our Future)

3 year Corporate Plan Optimised map

1 year Annual Business Plan and Budget

1 year Annual Report

1 About Parks Victoria Parks Victoria Annual Report 2017–18 2 Our Ethical Framework Service Delivery Themes

Parks Victoria’s Ethical Framework includes eight commitments and 11 guiding principles that are core to At Parks Victoria, we inspire the community to conserve and enjoy Victoria’s unique natural and cultural Parks Victoria, underpinning our vision, strategy and culture – one that will enable us to be a world-class heritage. Together, we care for Country and promote the value of our parks and waterways for the benefit organisation that is results-focused, flexible and innovative. Following the framework release, 11 interactive of all Victorians and their visitors. employee training sessions were held in 2017–18, with a total of 314 participants. More sessions are planned As outlined in our long-term strategy Shaping our Future, Parks Victoria delivers these benefits by focussing throughout 2018–19. our work across four strategic themes:

Victorian Public Our Our Guiding 1. Connecting People 3. Providing Benefits Sector Values Commitments Principles and Parks Beyond Park Boundaries Responsiveness As stewards of Victoria’s • We do not accept harm occurring Contribute to the safety, living standards and parks, we will: to ourselves and the people we Increase the resilience of natural and cultural Integrity work with so we look out for each assets in parks and maintain ecosystem services wellbeing of Victorians. Impartiality 1. Put safety first other, both physically and mentally in the face of climate change and other stressors. We prioritise safety, acting Accountability • We facilitate appropriate access consciously every day to keep to parks Respect ourselves and our teams safe • We help each other to progress 2. Conserving Victoria’s 4. Enhancing Organisational Leadership 2. Provide excellent the work of Parks Victoria Special Places Excellence customer service Human Rights • We are constantly trying to improve We actively listen to, consult with how we do things. We are careful Improve the health and wellbeing of Victorians Focus on delivering our priorities to ensure and respond to our customers to make decisions based on best through the management of a parks estate that continuous improvement and effective and evidence and experience 3. Collaborate is valued by the community. efficient delivery of services. • We act humanely and ethically We work cooperatively towards in our treatment of animals achieving the organisation’s goals • We take the necessary decisions 4. Lead innovation and actions to actively manage The Corporate and Business Plans are focused on delivering the key outcomes in each of these areas. We think creatively, share a healthy ecosystem knowledge, and remain open • We support and encourage those anisation g org al ex to new ways of thinking and cin cel who call out behaviours and an len operating nh ce actions that contravene our ethical E 5. Be accountable framework • We respect each other and We take responsibility for the Connecting results of our decisions, actions keep our workplaces free from people and behaviours discrimination, harassment and and parks bullying 6. Act with integrity • We respect Traditional Owners as We are open, honest and ethical partners in the management of Vision and treat all people with respect Country Conserving Providing benefits 7. Lead environmental and • We strive for 100% compliance Victoria's Purpose special places beyond park heritage management with environmental and heritage boundaries regulations and disclose all We are responsible managers of V i c s t t breaches o n our environment and heritage r e ia n m it P • We depend on community trust; u m b m 8. Earn the community’s trust li o c c we spend money on behalf of the S ’s er ia We manage our resources to vi or community and other funders and ce t v ic a s V benefit the community lu rk will carefully manage our time and es Pa resources

3 About Parks Victoria Parks Victoria Annual Report 2017–18 4 Our Achievements The year in review

Conserving Victoria’s Connecting People Providing Benefits Beyond Enhancing Organisational Special Places and Parks Park Boundaries Excellence Page 7 Page 15 Page 23 Page 30

Strategic directions Strategic directions Strategic directions Strategic focus areas

1. Improve the resilience of ecosystems, 1. More people having outstanding 1. Assist in keeping Victorians safe 1. Improve stakeholder and community ecological communities and species experiences in parks engagement 2. Grow world-class nature-based visitor 2. Conserve and restore ecological processes 2. Foster lifelong connections of people economy opportunities in parks 2. Partner better with government to achieve of priority habitats to parks and their Country valuable outcomes for Victorians 3. Actively promote and market the value of 3. Base our actions on Aboriginal knowledge, 3. Provide engaging ways to connect with park ecosystem services in contributing 3. Engage meaningfully and respectfully with contemporary science and risk and enhance individuals’ experience while to productive, healthy and prosperous Traditional Owners in parks Victorian communities 4. Promote enjoyment and understanding 4. Model leadership and accountability of our natural and cultural heritage, and 4. Provide quality infrastructure for visitors as a primary focus conserve and manage important sites with to enjoy the community 2017–18 highlights 5. Modernise Parks Victoria 5. Partner with Traditional Owners in caring 2017–18 highlights • Completed the Great • Won gold in the RACV for Country and protection of cultural Ocean Walk business Victorian Tourism Award 2017–18 highlights places and landscapes • Portarlington Safe • 48 Bush Kinder groups case and implementation specialised tourism Harbour implemented operated in 30 parks plan (Walk Victoria’s Icons) category • Traditional Owner • 53 new rangers Accountability • Sandringham Breakwater • Face-to-face education • Released the Falls to • 14 million people took • A new approach to 2017–18 highlights Framework implemented Stage 5 upgraded and interpretation Hotham Alpine Crossing part in at least one promote parks, park activities delivered to Master Plan (Walk nature-based activity • The Visitor Experience experiences, wildlife • Lake Boort Reserve • Overabundant koalas • Mount Eccles National 106,771 visitors across Victoria’s Icons) and on Parks Victoria land, Framework adopted and nature (Digital Management Plan managed in south-west Park changed in the 83 parks secured $2 million for which is up eight per as the primary data Transformation) completed and released Victoria National Parks Act to design development and cent year on year source for the new Parks implemented in March 2018 Budj Bim National Park, • Highest recorded • 30 tonnes of European business case preparation Victoria website in response to a request volunteer hours and • 100 Good Neighbour • Ethical Framework • Belfast Coast Reserve carp removed from the from Gunditjmara in-kind volunteer • Released the Point Program projects • 2017–18 Disability Action released and 314 coastal management Sale Common wetland Aboriginal Cooperative contribution with just Nepean National delivered in the Mallee, Plan released employees trained plan community • The Protection of the over 280,000 volunteer Park Master Plan, Alpine, River Red Gum engagement phase • Canadian Regional • Parks Victoria legislation • New uniforms Alpine National Park hours: nearly 60,000 providing a framework regions and sensitive completed Park changed to received Royal Assent provided so staff – Feral Horse Strategic more hours than for investment in the coastal parks and Woowookarung Regional on 5 June 2018 and the organisation • The Plains-wanderer Action Plan 2018–21 2016–17 adaptive reuse of reserves, with 50 per Park in the Crown Land are presented more recovery program developed heritage buildings within cent focusing on weed • Cost of Service Model Reserves Act through • Further activated the professionally and with Zoos Victoria the Quarantine Station, control and 50 per cent and successful business • Three rock art shelters community consultation Yarra, by running consistently. implemented to support outstanding on reducing the impacts case for funding to the rediscovered and, from pop-up seasonal food • The Volunteer Track visitor experience of pest animals. Victorian Government • Protection works for the using new technologies, and beverage services Ranger program grew Little Penguin colony at 40 inspected sites are at designated sites on • Audit of over 8,500 from 24 to 102 volunteers St Kilda Pier completed found to have additional the Lower Yarra River assets completed, art motifs • Wilsons Promontory resulting in a better • Parks Victoria’s (Supafish and Arbory National Park welcomed understanding of assets’ community based • Worked with Afloat) 480,000 visitors condition and identifying monitoring program for Gunaikurnai Rangers to • ParkConnect future priorities the marine national parks jointly deliver a Junior • Junior Ranger program customer relationship and sanctuaries, the Sea Ranger program at delivered 671 activities management system Search app, launched Buchan Caves Reserve in 71 parks, engaging implementation 7,909 children and • Approximately 17,000 • Anglesea Heath commenced. 4,806 adults native purple sea urchins integrated into the Great removed from Point Otway National Park. Cooke Marine Sanctuary

5 Our Achievements Parks Victoria Annual Report 2017–18 6 Conserving Victoria’s Special Places

Increase the resilience of natural and cultural assets Management plans Action to reduce the impacts of feral In January 2018, the Belfast Coast Management horses in parks in parks and maintain ecosystem services in the face Draft Plan was released. Submissions on the draft Feral horses cause serious damage to alpine, of climate change and other stressors. plan have been reviewed and a final plan is being sub-alpine, montane and floodplain environments prepared for approval. by destroying habitat critical to many threatened plant and animal species, damaging waterways, build a funding case for the Prom Sanctuary proposal In March 2018, the completed Lake Boort Reserve Improve the resilience degrading fragile vegetation, and causing soil and to attract funding under DELWP’s Biodiversity Management Plan was released. erosion or compaction. Response Plan. of ecosystems, ecological In June 2018, the River Red Gum Parks Management Over two years, in consultation with horse-owners communities and species Plan was completed. Threatened Species and Communities and community, environmental and cultural Amendments were made to management plans for stakeholder groups, Parks Victoria developed the Protecting and improving the overall health of Parks Victoria continued to work with the community the following parks: Protection of the Alpine National Park – Feral Horse ecosystems, ecological communities and species and key partner agencies to manage threatened Strategic Action Plan 2018–21. across the parks estate is critical to preserve the species and communities. This included programs • Dandenong Ranges National Park status of Victoria’s biodiversity. delivered as part of managing invasive species or • Mornington Peninsula National Park The plan was approved by the Hon. Lily D’Ambrosio habitat restoration, such as the Victorian Alpine MP for implementation from 2018. The plan is an Landscape conservation planning Peatland Protection Program. • Lerderderg State Park important part of the integrated approach to reduce the threats from a range of introduced animals in the Parks Victoria is developing Conservation Action Key activities during the year included: Victorian Alps. Plans for each of Victoria’s 16 landscapes to guide • the trial translocation of 40 Mallee Emu-wren Conserve and restore investment in environmental conservation and birds from Hattah-Kulkyne and Murray Sunset restoration of the parks estate. ecological processes Deer control and the Sustainable national parks to Ngarkat Conservation Park Hunting Action Plan These plans clearly define conservation outcomes and in South Australia of priority habitats priority on-ground strategies and actions. They are The Sustainable Hunting Action Plan 2016–2020 will • the first year of a five-year rotating survey of the designed to enable monitoring and manage effective Victoria’s most special natural places are entrusted to improve information and access provided to hunters. response of the semi-arid woodland community evaluation. our care. In 2017–18, we worked with our partners Under the plan, 11 new access gates to State Games to herbivore management in the Mallee national and neighbours to ensure actions were focused Reserves will be constructed and 32 new signs Conservation Action Plans were completed for the parks at the most effective scale to drive connectivity of provided to inform park users on where or when Grampians and Wimmera landscapes, and significant • the Plains-wanderer recovery program with habitats and secure priority threatened species and hunting will occur in hunting areas in national parks. progress was made towards finalising the Mallee, Zoos Victoria ecological integrity. River Red Gum, Gippsland Plains and Strzeleckis In response to the damage deer are having on landscape plans. • protection of alpine bogs and fencing for the vulnerable natural habitats, including isolated wet protection of long-term alpine plant monitoring forest, alpine, coastal and woodland vegetation Conservation Action Plans for Wilsons Promontory plots. and the Grampians national parks were used to

Semi-arid woodland condition and total Marine pests program grazing management Marine invasive species, including both exotic species and overabundant native The long-term restoration of the semi-arid woodlands, covering more than 88,000ha marine species, are a serious threat to Victoria’s marine ecosystems. in Murray Sunset National Park, Hattah-Kulkyne National Park and Wyperfeld In 2017–18, a marine pest initiative has focused on preventing the spread of National Park, is being evaluated through surveys of different areas of the Mallee pests from Port Phillip Bay to other areas of the state and responding to new and on a five-year rotation. The program provides an evaluation of progress towards emerging issues by: achieving the vegetation condition goals outlined in the Total Grazing Management Plan 2015–20. • developing and delivering a broad range of communications products targeting marine pest spread The 2017 survey of the north-west corner of Murray Sunset National Park, known as Taparoo block, was promising. Findings include minimal herbivore damage to • control activities and surveys for marine invasive species in parks seedlings and juveniles, overall good condition in remaining tree canopies, some • strengthening partnerships and contributing to research programs to better recovery in Sugarwood woodlands but no natural regeneration of Belah or Slender manage marine pests. Cypress Pine within the survey sites.

7 Conserving Victoria’s Special Places Parks Victoria Annual Report 2017–18 8 communities, deer control programs were Base our actions on Research partnerships and permits • surveying 70 major sites comprising nearly 300 implemented including volunteer programs with Parks Victoria is working with research partners to assets over the three-year program to date hunting organisations. Aboriginal knowledge, use technology to innovatively manage our parks. • leading the establishment of a Heritage Managers In collaboration with other Victorian agencies, contemporary science In 2017–18, more than 20 new research projects partnership to provide a forum for public land new policy and approaches in deer management and risk were initiated, and many other multi-year projects in Victoria. The partnership includes VicTrack, and research are being developed to manage the continued to address critical knowledge gaps. Working Heritage, the National Trust and increasing range and populations of deer, particularly Melbourne Water. In 2017–18, Parks Victoria built on reporting and These included: Sambar deer. evaluation frameworks, tools and mechanisms • a rapid Park Health Check monitoring tool With support from the Living Heritage Grants to enable data to be effectively stored and used Program, Parks Victoria is delivering six projects New parks – Anglesea Heath to improve decision-making and park management. • helicopter-mounted Forward Looking Infra-Red valued at $640,000 including: The heathlands that fringe the surf coast township thermal imaging as a monitoring tool • reconstruction of roofs at the Viewbank Silos of Anglesea form the richest and most diverse Knowledge, reporting and • remote acoustic monitoring devices to monitor frogs vegetation community in Victoria. About a quarter management effectiveness • repairs to vernacular machinery shed, Glenample of Victoria’s plant species can be found here, • remote sensed multispectral imagery to assess the Parks Victoria’s State of the Parks program evaluates • back channel restoration at Andersons Mill including more than 80 types of orchids. health and vigour of the tree canopy. the condition of the parks network and effectiveness • a new roof for the Assistant Lightkeeper’s At a Parks Victoria event in February 2018, locals Many of these research projects involved honours in meeting park management goals for nature Quarters, Cape Schanck Light Station and community groups gathered to celebrate the conservation, culture and heritage, visitor services, and post-graduate students, creating and supporting formal transfer of Anglesea Heath into the Great community engagement, and fire and emergency real educational opportunities to train the researchers • repairs to stables complex at Coolart Homestead and scientists of the future. Otway National Park, a change that will preserve this management. • repairs to the Rescue Station at the State Coal important area of more than 6000ha for generations Park managers completed assessments for 300 parks Mine, Wonthaggi. to come. Citizen Science and reserves covering over 90 per cent of the area The event was attended by representatives from managed by Parks Victoria. The information collected Citizen science surveys include Sea Search and Days Mill Living Heritage Grants Program Reef Life surveys, and have been implemented for Alcoa, Friends of East Otway, Anglesea Aireys Inlet will be used to highlight achievements, current $0.5m of conservation works at Days Mill will be intertidal reefs, seagrass and subtidal reefs in five Society for the Protection of Flora and Fauna, the threats and emerging issues. This will inform and completed by spring 2018. Great Ocean Road Coastal Committee and DELWP. adapt Parks Victoria’s management programs and marine sanctuaries and two marine national parks. allow reporting to the community on the outcomes. The Minister for Energy, Environment and Climate Change launched the new app for the Sea Search Frankston Nature Conservation Reserve program developed in partnership with CSIRO. On 31 August 2017, Parks Victoria was appointed as the Committee of Management for the Frankston Citizen science surveys monitored some of Victoria’s Nature Conservation Reserve. most threatened ecosystems and animal species, including over 400km of spotlight transects in native The reserve is set within a residential area in grasslands at Terrick Terrick National Park and Bael Frankston South and is an important part of Victoria’s Bael Nature Conservation Reserve. open space network. It is home to more than 300 species of native plants and animals, including the Parks Victoria provided ongoing support to the Growling Grass frog, echidnas, Blue Tongue lizards Victorian Mallee Fowl Recovery Group, which is one and the Blue-Billed duck. of the Victoria’s most extensive and long-running citizen science programs. The reserve was closed for improvement works and community consultation and reopened in February Historic heritage site management 2018. The reserve now has a 24-space car park and walking trails. In 2017–18, Parks Victoria focused its efforts on a range of heritage projects including: • developing the Heritage Asset Management app to document the condition of the fabric of substantial heritage assets (buildings) and to estimate the cost of repairs and catch-up maintenance

9 Conserving Victoria’s Special Places Parks Victoria Annual Report 2017–18 10 Partner with Traditional Owners in caring for Country and protection of cultural places and landscapes

In 2017–18, Parks Joint Management Dja Dja Wurrung Key achievements Victoria made progress As at 30 June 2018, there were joint management arrangements relating The Dhelkunya Dja Land Management Board’s role is to enable the • a focus on the Joint recognising, protecting to parks under the Act in place with the Dja Dja Wurrung Clans knowledge and culture of the Dja Dja Wurrung People to be recognised Management Employment and conserving Aboriginal Aboriginal Corporation (north central Victoria), the Gunaikurnai Land and incorporated into the management of the Dja Dja Wurrung Parks. Program until 2022, including and Waters Aboriginal Corporation (Gippsland) and the Yorta Yorta cultural heritage rangers and cultural heritage as This Board is delivering a joint management plan that amplifies the Nation Aboriginal Corporation (Barmah National Park). archaeologist positions part of a new, robust opportunities for all Dja Dja Wurrung People. This provides tangible, agency-wide approach Of particular note during the year, there was considerable work long-term opportunities and benefits for Dja Dja Wurrung economic • completed the assessment of registered cultural heritage – Managing Country associated with the preparation of joint management plans for the parks development. sites, along with the planning, and reserves subject to joint management arrangements under the Together. The Board also advises DELWP in relation to the management of, and zoning and actions required Traditional Owner Settlement Act 2010. The plans aim to enable the to manage risks to these policies relating to, the Dja Dja Wurrung Parks. knowledge and culture of the Traditional Owners to be recognised important values. and incorporated in the management of the various parks. Many important activities have been undertaken or are still being implemented, including: Key achievements Gunaikurnai • completing desktop research for all six parks and reserves Parks Victoria continued to work closely with Traditional Owners to • developing a database to enable more efficient assessments and • worked with Gunaikurnai establish implementation arrangements for the national parks and Rangers to jointly deliver data analysis reserves that will transition into joint management arrangements, a Junior Ranger Program • working with Parks Victoria’s drone team to identify cultural heritage at Buchan Caves Reserve building on the Recognition and Settlement Agreements in place sites using UAVs and photogrammetry techniques with Gunaikurnai and Dja Dja Wurrung under the Traditional Owner • prepared the New Guinea • collecting data in line with current standards and methodological II Cave geotechnical report Settlement Act 2010. Taungurung, Eastern Maar, Gunditjmara, and put in place protection Wotjobaluk and a number of other groups are at advanced stages frameworks with assistance from Parks Victoria’s heritage unit and measures for the Snowy River in their negotiation processes. spatial team National Park The Gunaikurnai Land Management Board continued developing a joint • collating information provided by the public that may identify • completed cultural mapping management plan by working closely with the Gunaikurnai people, joint previously undisclosed cultural heritage sites at Kooyoora and at Lake Tyers State Park and Greater Bendigo region. continued planning for other management partners, Parks Victoria, and consulting with all groups joint managed parks, working and individuals who expressed an interest. Aspects of the cultural heritage investigation are now more fully with elders and a Latrobe integrated into Junior Ranger activities, as well as the leadership on University anthropologist. The vision of this Board is to see empowered and respected Gunaikurnai actively managing and caring for their land and water for the enjoyment Country Program, which focuses on providing Year 10 students with of all people. two-way learning experiences. The joint management plan covers 10 parks and reserves and will be submitted to the Minister for Energy, Environment and Climate Change for approval.

Gunaikurnai Junior Rangers During the 2017–18 summer, three of the Gunaikurnai joint-management rangers contributed to the Junior Ranger program held at the Buchan Caves Reserve. Working collaboratively with the Parks Victoria community engagement ranger, the Gunaikurnai delivered the ‘Mini-Beasts’ session. The addition of the new ‘Strengthening Parks Victoria’ rangers, and the help of the joint-management partners, meant additional high-quality community engagement activities were delivered in 2017–2018.

11 Conserving Victoria’s Special Places Parks Victoria Annual Report 2017–18 12 Key achievements Aboriginal Ancestral Remains project Key Performance Indicators The Aboriginal Ancestral Remains project is a significant project in • constructed 880m of rabbit northern Victoria, which aims to undertake Traditional Owner-led proof fencing (Murray River Reserve and Lindsay Island), on-ground protection works on Aboriginal Ancestral Remains and Target met  Target has been met or exceeded within agreed timeframes using mega anchor assemblies, cultural heritage places. which require no digging and x Target has not been met – exceeds 5% variance therefore cause no ground There are many highly significant cultural places in the north-west Target not met (Significant variance that requires explanation) disturbance of Victoria, particularly along the Murray River corridor between Mildura (x) Target has not been met – within 5% variance and the South Australian border. The on-ground works are carried • protected ancestral remains No result Recorded as NM = No measure from vehicles, both on existing out by a small, dedicated team, including new two-year Cultural tracks and areas where public Heritage Rangers. vehicles are driven off road, with 660m of road capping Working alongside Traditional Owners is a priority for the project, as well in the Murray River Reserve, as continuing to build good relationships with the Victorian Heritage Conserving Victoria’s Special Places Wallpolla Island and Hattah- Council and Aboriginal Victoria. Kulkyne National Park protected two dune systems 2017–18 2017–18 Year end Performance measure target actual status • treated, by hand, approximately 2,000 rabbit warrens in culturally sensitive areas Historic Heritage: • surveyed an estimated 900 a. Percentage of high priority historic heritage places within the registered Aboriginal places in park estate with a current condition assessment 60% 77%  Hattah-Kulkyne National Park b. Percentage of high priority historic heritage places within • discovered 10 new ancestral the park estate with a current condition assessment and with remains a Management Plan 20% 61%  • assisted with developing the Cultural Heritage Management Percentage of Registered Aboriginal Parties with partnership Plan for managing pest animals agreements with Parks Victoria 60% 20% x and protecting Ancestral Remains in Murray-Sunset Parks Victoria will have a clear focus in 2018–19 to redirect resources to this project and recommence partner engagements. National Park. The 2017–18 result has been attributed to a lack of capacity to lead negotiations and build relationships with Traditional Owner partners.

Budget Paper 3 (BP3) Performance Measures

Rock art conservation Total area of estate managed by Parks Victoria 4,111,300 4,111,300  In 2017–18, Parks Victoria commenced a statewide audit of rock art condition in the Parks Victoria estate. The audit will help Parks Victoria Number of hectares treated to minimise the impact of pest plants, and Traditional Owners prioritise the sites for restoration and protection. pest animals and overabundant animals and plants in parks managed by Parks Victoria 1,100,000 1,100,000  Key achievements

• 30 per cent of rock art shelters inspected to determine issues and risks • protection works undertaken at 54 of the 192 rock art shelters on Parks Victoria’s estate • three rock art shelter rediscovered and, from using new technologies 40 inspected sites found to have additional art motifs • detailed cataloguing and recording of 30 rock art shelters.

13 Conserving Victoria’s Special Places Parks Victoria Annual Report 2017–18 14 Connecting People and Parks

Improve the health and wellbeing of Victorians through Grampians Peaks Trail Stage 2 Safety improvements and more visitors Master Plan at Twelve Apostles the management of a parks estate that is valued by Parks Victoria worked in partnership with Grampians There was an 8.5 per cent increase in visitors to the the community. Tourism to promote the Grampians Peaks Trail. Twelve Apostles, with a 10 per cent increase during Results for the year include: the Chinese New Year period. • over 70,000 views of www.grampianspeakstrail. To cater for the increase in numbers, Parks Victoria Events More people having com.au improved traffic management, provided more park rangers and extended the kiosk opening hours into outstanding experiences • social and pay-per-click campaigns using Parks Victoria issued 79 permits the evening. across 24 national and state parks in parks Adwords, Facebook and Instagram a 55 per cent increase use of the #grampianspeakstrail Wilsons Promontory National Park Access to nature is integral to individual and • producing and distributing a Grampians Peaks visitation growth community health and wellbeing. Park environmental Trail media kit integrity, presentation, accessibility and safety are The park welcomed 480,000 visitors throughout 4,500 • developing and distributing an organic social 2017–18. During the summer peak period, Wilsons cyclists paramount for individual use, enjoyment and benefit from our parks. media kit. Promontory National Park had a record number of descended on Wilsons Promontory The Grampians Peaks Trail will offer four experiences day visitors. National Park for the 2017 Great Events on Parks Victoria managed land including day walks from Halls Gap, facilitated Other record achievements included: Victorian Bike Ride During the year, Parks Victoria issued 79 permits three-day and two-night walks in the northern and southern sections, and the fully independent • the largest number of applications received for across 24 national and state parks for community, the Tidal River/Wilsons Promontory Ballot recreation and private events. 13-day and 12-night walk along the length of the Grampians National Park. Almost 60km of existing • the most visitors over a Labour Day Weekend and 108 permits Events included: trails and track have been upgraded to a high Easter weekend. • in November 2017, 4,500 cyclists descended on standard, with stonework steps built to access higher issued for television, feature films, Tidal River, Wilsons Promontory National Park for ground. commercials, documentaries the first leg of the 2017 Great Victorian Bike Ride Work will soon begin on new trails, steel bridges and photography • in January 2018, Mount Buffalo National Park and boardwalks to connect the network of 11 hiker hosted a leg of the annual Alpine Classic alpine camps currently being designed. ride, which had up to 2,000 riders. The ride included a 70km course from Bright to Mount Buffalo and back and a 1,600m ascent of the mountain Wilsons Promontory National Park welcomed • 108 permits were issued for television, feature films, commercials, documentaries and photography. visitors Serendip Sanctuary – You Yangs Regional Park: 480,000 Junior Ranger Program

Parks Victoria’s Junior Rangers Program encourages children to explore Victoria’s Grampians Peaks Trail Twelve Apostles had an parks with a real Park Ranger. At the You Yangs Regional Park this year, Indigenous Rangers shared their culture with the children, helping them to understand how almost everything native to the 70,000 8.5% land has had a special use to Aboriginal people. A walk around Big Rock provided an views of the website increase in visitation opportunity to see examples of indigenous tools that were created from plants and trees. This special Junior Rangers Program was a school holiday hit, with great feedback 55% increase 10% increase received from children and their parents. use of #grampianspeakstrail during the Chinese New Year period

15 Connecting People and Parks Parks Victoria Annual Report 2017–18 16 Wonnangatta Icon Drive Foster lifelong connections Healing in Nature partnerships Volunteers The Wonnangatta Valley is an aspirational destination Healthy Parks Healthy People is a global movement for four-wheel drive tourists from all over Australia. of people to parks and that recognises the fundamental connections Parks Victoria engages an extensive Wonnangatta regularly features in four-wheel drive their Country between human health and environmental health. network of volunteers, providing television programs, magazines and internet sites. Parks Victoria’s Healing in Nature partnerships are The Wonnangatta Icon Drive is promoted in close In 2017–18, Parks Victoria engaged an extensive about enabling people from all walks of life to partnership between Parks Victoria and Four Wheel network of volunteers, providing 281,776 connect with nature. 281,776 Drive Victoria. volunteering hours with 37,200 volunteer The Forest Nature Program for adults with cognitive attendances across 167 parks. Volunteer activities volunteering hours In 2017–18, the Land Rover Owners’ Club of disabilities was launched in Gresswell Forest Reserve, included habitat restoration, environmental research, Gippsland (affiliated to Four Wheel Drive Victoria) Bundoora. historic heritage conservation and gardening. contributed over 1,000 volunteer hours on with Parks Victoria held 26 guided nature walks a month improvements at iconic visitor sites along the drive. across the parks, to help inexperienced hikers feel This involved construction of fire pits, installation of New ways to engage volunteers more comfortable exploring the outdoors. picnic tables and improved signage. In collaboration and partners 37,200 attendances with Parks Victoria, they also assessed high-risk track ParkConnect is Parks Victoria’s online volunteer across 167 parks conditions along the route, ensuring a challenging management system, a first for a state park Education and Interpretation but safe route to explore. agency. Parks Victoria engaged new volunteers Children are our future park visitors and custodians. Developing and supporting their interest, knowledge There is a significant financial benefit to gateway through a campaign showcasing the diversity of and passion for our natural and cultural assets creates Education and Interpretation towns including the Latrobe Valley and Heyfield. volunteer opportunities across the Parks estate. lifelong benefits, both for the individual and for the The hospitality industry and other small businesses Over 1,500 volunteer registrations were received, special environmental and cultural places we manage. benefit from four-wheel drive tourism, resulting the largest number of volunteer registrations since Parks Victoria delivered education and in greater local employment and investment ParkConnect’s inception. Parks Victoria delivered face-to-face education and interpretation activities to opportunities. Of the volunteers registered, over 65 per cent interpretation activities to 106,771 visitors across 83 attended one or more of the 573 planned parks. Of this, 25,691 school children were engaged activities. (see page 30 for more information across 37 parks. about ParkConnect). The Learning in Nature Strategic Plan 2017–2021 106,771 delivered more digital self-serve options to support visitors school excursions to parks. across 83 parks The Parkweb Learn platform released 35 new self-guided excursions and 10 park excursion guides for schools, aligned to the Victorian curriculum. of this A Ranger Video Series was developed as an educational and community engagement tool to 25,691 tell the stories of Brimbank Park, Lysterfield Park school children were engaged and Organ Pipes National Park. These videos allow rangers to connect with a school group when they across 37 parks cannot meet them in person.

17 Connecting People and Parks Parks Victoria Annual Report 2017–18 18 Provide engaging ways to Innovative community health initiative Access for All The inclusive Junior Rangers Program Parks Victoria, in partnership with South East Over the Easter school holiday break, Parks Victoria connect with and enhance Melbourne Primary Health Network and other provided all-abilities Junior Rangers Programs to individuals’ experience partners (including Victoria Walks and the Southern Expansion to the Sherpa children visiting Wilsons Promontory National Park while in parks Migrant Refugee Centre), commenced an exciting Volunteer Program and Serendip Sanctuary. Due to the success of these initiative to promote Lysterfield Park as an important The Sherpa Volunteer Program began operating in nature activity programs, all-abilities Junior Rangers healthcare resource to local health service providers. the Grampians National Park and has expanded to Programs will be offered at other parks in the future. People benefit from being in and around nature in A program of guided ‘welcome walks’ and other the Dandenong Ranges National Park. different ways. By recognising these differences, we activities will be used to promote physical, mental help people access, enjoy and learn about Victoria’s The program assists park visitors with mobility Social scripts and social health for those with chronic illnesses parks. We achieve this by ensuring our planning is limitations. Sherpa volunteers assist carers in pushing Social scripts use clear focused language and pictures and those that have not been park users in the underpinned by the Visitor Experience Framework. and pulling specially designed all-terrain TrailRider to help children with autism to better understand past, with the aim to unlock the power of parks for The Framework determines what visitor experiences wheelchairs along park trails. The additional physical new and unfamiliar places. Parks Victoria is currently preventative and restorative health. to provide and where to invest across the parks assistance provided by volunteers makes it possible developing social scripts about Jells Park, Wilsons estate. It also captures knowledge about the diversity for park visitors to access trails that would not be Promontory National Park and Buchan Caves of visitor experiences offered in our parks. Welcome Walks possible with only one carer or chair operator. This is Reserve. These will be a valuable resource for families Initially designed to address the barriers women face a free service for visitors. planning an overnight stay with their children. Parks Victoria aims to support and encourage walking in parks, these walks, co-designed with individual interactions and the strengthening of The Dandenong Ranges National Park now provides South East Melbourne Primary Health Network and community connection by facilitating volunteering a TrailRider for use at Grants Picnic Ground in Accessible gate design Victoria Walks, now welcome people from different opportunities and continuing to provide Kallista, and with the assistance of Sherpa volunteers, Parks Victoria has designed an accessible gate with cultures, people recovering from health issues and opportunities for socially disadvantaged, culturally visitors with limited mobility can explore selected a Master Locksmiths Access Key locking system anyone needing help getting those first steps into and linguistically diverse communities, people with walking trails in the beautiful Sherbrooke Forest. for those walking paths with entrance barriers parks. The walks are flat, easy and well-signposted. disabilities and at-risk groups to benefit from nature installed to prevent bicycle access. The gate design Welcome Walks are facilitated by volunteers and are and parks. allows visitors in wheelchairs to open the gate available in Lysterfield and Braeside Parks. The hoist for accessible boating and independently with a special key. This prototype gate In 2017–18, achievements included: water activities is being trialled at selected sites in the Yarra Ranges A Day at the Zoo To make it easier for visitors with mobility limitations National Park. Staff capacity building to welcome As part of Cultural Diversity Week, Parks Victoria to participate in boat activities in Port Phillip Bay, diverse communities participated in the tenth anniversary of ‘A Day at the Parks Victoria has installed a new electric hoist on the pier at the Launching Way boat ramp on Patterson Parks Victoria has been building its staff capacity to Zoo’, where City West Water, Victoria Police, Parks River, Patterson Lakes. The hoist will make transfers welcome diverse communities through a partnership Victoria and other government services engage with in and out of boats easier and safer for visitors in with the Centre for Ethnicity and Health. Parks Victoria newly arrived adult students with English as another wheelchairs. This prototype design, if well used by staff in key tourist nodes and staff that deliver Junior language to break down any barriers that may visitors during the trial, will be provided at other Ranger programs took part in a trial of online Cultural prevent them from accessing services. Over 1,400 popular Parks Victoria’s piers and jetties. Competence and Disability Awareness Training. adult students attended the day.

Walk in the Park Program Parks Victoria has supported Blind Sports and Recreation Victoria by assisting blind and vision- impaired visitors undertaking group bushwalks in selected parks. Two group camps were also held at Wilsons Promontory National Park and Cape Conran Coastal Park.

19 Connecting People and Parks Parks Victoria Annual Report 2017–18 20 Provide quality Mount Buffalo Day Visitor Area Key Performance Indicators upgrade works infrastructure for visitors To ensure the Mount Buffalo National Park is an to enjoy attractive destination all year round for visitors of Target met  Target has been met or exceeded within agreed timeframes all abilities, the Gorge Day Visitor Area has been Target has not been met – exceeds 5% variance Appropriate and accessible assets are vital to upgraded and lower car park works are nearing x Target not met (Significant variance that requires explanation) ensuring safe and enjoyable use of our parks. completion. (x) Target has not been met – within 5% variance Parks Victoria continues to improve its understanding The remaining work to be carried out includes: No result Recorded as NM = No measure of existing and new built assets by using ParkView • upgrading the main all-access observation Assets, a user interface and new mobile app which lookout enables real-time condition assessments and asset validation. • improving the layout of car and coach parking Connecting People and Parks Key achievements include: • establishing a food and beverage facility • upgrading signage 2017–18 2017–18 Year-end Performance measure target actual status Portarlington Safe Harbour • providing additional seating and picnic areas In 2017, the Portarlington Safe Harbour Project • upgrading the toilets, including a waste-water 99–101 was completed to support the Bellarine Peninsula’s treatment system Number of visits to Parks Victoria managed estate million NM growing aquaculture industry and boost tourism in • improving all-abilities access. EOY figure taken from 2016–17 Visitor Number Monitor. This is conducted biennially and will be completed again in 2018–19. the local economy. The two-year project included the construction of two rock breakwaters to the east and Total participation in Parks Victoria guided interpretation and north of the pier, a new 190m concrete commercial Junction Oval redevelopment education activities 25,000 25,691  berthing jetty and a suite of marine industry access In February 2018, the Junction Oval was redeveloped, upgrades for the pier and harbour. marking the end of a multi-year project managed in conjunction with Sports and Recreation Victoria Level of satisfaction of visitors to parks 80–85% 85.2 Passenger ferry infrastructure supporting ferry services  and Cricket Victoria. The Victorian Cricket and from Portarlington to the Melbourne city was also built. Community Centre is a year-round elite training base Level of satisfaction with Parks Victoria management of parks 80–85% 80.5 The remaining works on the wave protection and for Victoria’s best cricketers as well as a hub  ferry berthing pontoon facility were completed. for community cricket.

Mount Buffalo Chalet Devilbend Natural Features Reserve Budget Paper 3 (BP3) Performance Measures Major chalet maintenance works were undertaken to fishing platform repair and revitalise the front wing of the building. Number of volunteer hours contributed to Parks Victoria 220,000 The fishing platform extension and kayak access programs and activities –250,000 281,776  Significant structural repairs were carried out on point was opened to the public, making recreational the northern elevation wall. The ballroom roof was access to the water easier and safer for the public. a. Number of visits to National, State, urban and other 54–55 replaced. General maintenance works, including terrestrial parks million NM re-stumping and repairs to the internal walls, floor, Albert Park running path EOY figure taken from 2016–17 Visitor Number Monitor. This is conducted biennially and will be completed again in 2018-19. windows and doors were undertaken. External The Albert Park running path was upgraded, which stonework was repaired, weatherboards replaced brings the path surface to a standard comparable 45-46 and internal rooms and external walls painted. to other high-class facilities, such as the Tan Track b. Number of visits to piers and jetties million NM around Royal Melbourne’s Botanical Gardens. This much-needed conservation of the chalet also EOY figure taken from 2016–17 Visitor Number Monitor. This is conducted biennially and will be completed again in 2018–19. provides necessary structural protection to secure the Chalet for many years to come. Patterson River Percentage of parks assets in average to excellent condition 88% 87.3% (x) Significant upgrade works were completed at Patterson River, including car park refurbishments, Percentage of bay assets in average to excellent condition 80.0% 75.3% x

a new all-access ramp and the addition of 12 new A number of temporary closures to piers and jetties across the state and a storm event which damaged Middle Brighton Pier have caused the rubbish bins. overall condition rating to decline. Works funded over the next 12 months will bring this KPI back on track in 2018–19.

21 Connecting People and Parks Parks Victoria Annual Report 2017–18 22 Providing Benefits Beyond Park Boundaries

Contribute to the safety, living standards and wellbeing Melbourne Fire and Emergency Program Fire To reduce the risk of bushfires and improve of Victorians. preparedness in Melbourne following the 2009 Nearly bushfires, the Melbourne Fire and Emergency Program Parks Victoria provided more than Assist in keeping was initiated. Much of the program work directly protects houses adjoining parks across Melbourne. Victorians safe 90,000 hectares staff to assist Under the program, Parks Victoria has: in emergencies of land was treated to reduce the risk 850 In 2017–18, Parks Victoria contributed to keeping • constructed 1.3km of new fuel breaks Victorians safe by having: of bushfires • upgraded 8.4km of fuel breaks • provided more than 850 accredited staff to assist Parks Victoria responded to • slashed 798km of fuel breaks 23,950ha of planned burning in emergencies 4,233ha treated mechanically • added 190 Project Firefighters over the spring • upgraded 21km of roads and tracks to improve 1,562 bushfires to autumn period access for fire vehicles. • contributed 135 staff with leadership roles in emergency management Planned burning and mechanical fuel treatment 798km • been the support agency for 216 non-bushfire Nearly 90,000ha of land was treated this year to emergencies of fuel breaks slashed reduce the risk of bushfires in Victoria. Parks Victoria • responded to 1,562 bushfires on public land. continued to support DELWP on land managed by Parks Victoria. 21km Works undertaken included: of roads and tracks upgraded • 23,950ha of planned burning • 4,233ha treated mechanically by managing fuels 1.3km of new fuel breaks constructed close to communities to reduce the effects of fire 8.4km of new fuel breaks upgraded and smoke on communities.

Community engagement in fire and emergency planning around Melbourne In 2017–18, Parks Victoria continued to support the planning and delivery of community safety information and advice. In partnership with DELWP, the CFA and SES, Parks Victoria: • provided on-site signage and on-site visits • produced a video to inform the public about the activities Parks Victoria undertakes to reduce bushfire risk • ran the Junior Rangers ‘All Fired Up’ program • participated in a multi-agency pop-up event • supported other agencies at events.

23 Providing Benefits Beyond Park Boundaries Parks Victoria Annual Report 2017–18 24 Grow world-class nature-based visitor economy Actively promote and Master planning program Parks Victoria continues to develop long-term master opportunities in parks market the value of park plans in partnership with the community to ensure ecosystem services in the delivery of outstanding park experiences for all The Victorian visitor economy contributes around $20 billion to Victoria’s Gross Victorians. State Product each year and generates employment for 206,000 people, which contributing to productive, represents five per cent of gross value added and seven per cent of employment. healthy and prosperous Delivery of the master-planning program included: Victorian communities • completion of the Point Nepean National Park Unleashing Victoria’s nature-based In 2017–18, 14 million people took part in at least Master Plan, which provides a framework for tourism potential one nature-based activity, which is up eight per cent investment in the adaptive reuse of heritage year on year. Nature-based visitor numbers have buildings within the Quarantine Station to Parks Victoria is leading a statewide focused Victorian Visitor Economy Action Plan grown by 36 per cent since December 2014. support outstanding visitor experiences nature-based tourism strategy to set the direction Achievements in 2017–18 include: • completion of the Falls to Hotham Alpine and provide guidance to the government and the Nature-based visitors to Victoria comprised of: • finalised the Falls to Hotham Alpine Crossing Crossing Master Plan, as a strategic plan for a tourism industry. and Point Nepean master plans and the River • 6.6 million domestic day trip visitors multi-day walk through the Alpine National Park The Nature-based Tourism Scoping Framework, – up three per cent year on year Red Gum Parks and Great Alpine National Park developed by Parks Victoria in conjunction with management plans • continued delivery of Stage 2 of the Grampians • 5.3 million domestic overnight visitors regional tourism boards, Visit Victoria, the Victorian Peaks Trail – up 15 per cent year on year • produced a business case for the Great Ocean Walk Tourism Industry Council and other government • completion of precinct planning that supports • undertook infrastructure works on the Grampians departments, will support the development of a • 2.1 million international overnight visitors delivery of Stage 1 of the Shipwreck Coast Peaks Trail Nature-based Tourism Strategy. – up eight per cent year on year Master Plan, including improving the visitor Visitors to regional Victoria were more likely to • developed social scripts for visitors with autism experience at the Twelve Apostles. The servicing undertake nature-based activities (19.9 per cent), spectrum disorders of the Twelve Apostles Visitor Centre with a potable water pipeline and a sewerage pipeline is now compared to visitors to Melbourne (15.1 per cent). • provided the Sherpa Trailrider program to assist in the detailed design phase To year-ending December 2017, nature-based visitors visitors with disabilities • exhibition of the draft Albert Park Master Plan, stayed 36.9 million nights – up 36.2 per cent since 2014. • developed Arthurs Seat facilities which presents how the park can continue to • implemented ParkConnect volunteer and evolve in a rapidly growing city commercial portals • exhibition of the draft Plenty Gorge Master Plan, Nature-based tourism • completed Visitor Experience plans for Lake which engaged local communities with the future Eildon and Mount Buffalo of the park. • progressed Stage 1 of The Shipwreck Coast Maritime planning in 2017–18 included the Masterplan. completion of stakeholder and community 14 million engagement on the options for a new St Kilda Pier, people took part in at least one nature-based activity to assist with future investment choices.

An increase of 8% year on year New Visitor Economy activation in parks In 2017–18 there were Over 2017–18, Parks Victoria launched new types of commercial activities to increase the relevance of parks to visitors including: 6.6 million 5.3 million 2 .1 million • established over 13 mobile trading sites in Victoria domestic day trip visitors domestic overnight visitors international overnight visitors • provided the opportunity to set up and manage glamping (glamourous camping) operations in three national park campgrounds Nature-based visitors stayed 36.9 million nights • ran pop-up, seasonal food and beverage activations at designated sites on the An increase of 36.2% since 2014 Lower Yarra River (Arbory Afloat and Supafish).

25 Providing Benefits Beyond Park Boundaries Parks Victoria Annual Report 2017–18 26 Southgate Floating Wharfs • opening the Grampians National Park All Abilities Actively promote and Environment and agricultural weeds including In 2017–18, the planning and design of new Southgate Walking Track and TrailRider Guide, supported by blackberry, gorse, broom, St John’s wort, Patterson’s Commercial Berthing Facilities project was completed. all terrain wheelchairs and the Sherpa volunteer market the value of park curse, Cape tulip, Boneseed and serrated tussock program were controlled in high priority areas. The project will provide fixed landings, gangways ecosystem services in and floating pontoon berths to improve access for • providing online resources for families with children contributing to productive, Established pest animals including rabbits, foxes, patrons to vessels. It is configured to suit existing kiosk on the autism spectrum or with other disabilities goats and pigs were managed to reduce their locations, which will be modified with canopies, new visiting Serendip Sanctuary and Brimbank Park. healthy and prosperous impacts and contain populations. doors and extended counters to improve ticket sales Victorian communities Parks Victoria continued to support a collaborative facilities for the lessees. Construction will be completed Licensed tour operators and approach through working with the Victorian Rabbit before the spring and summer peak operation periods. activity providers Parks play an increasingly important role in providing Action Network, the Victorian Blackberry Taskforce Parks Victoria licenses over 50 diverse types of ecosystem services and benefits that contribute to and the technical advisory group for the development State and National Tourism Awards tourism activities. In 2017–18, emerging categories Victoria’s health, wellbeing, liveability and economy. of a statewide deer management strategy. In November 2017, Parks Victoria won the RACV of activities included: Victorian Tourism Award and went on to win at the • learning in nature Good Neighbour Program Valuing Victoria’s parks Qantas Australian Tourism Awards in Perth, where The Good Neighbour Program seeks to control Victoria’s parks network provides many benefits beyond • nature play Parks Victoria was recognised for providing accessible invasive species on the public-private land interface the park boundary, especially to regional Victoria, nature-based tourism experiences for people of all • marine education. and is delivered in collaboration with DELWP. through contribution to local economies and jobs. ages and levels of ability. This Specialised Tourism Parks Victoria improved services for Licensed Tour Through effective community engagement and A reassessment of the economic contribution of Category award recognised Parks Victoria’s industry- Operators by further reducing red tape through: control measures, the Good Neighbour Program ‘park attributable’ tourism (that is, those tourists leading accessibility initiatives over the last year, ensures Victoria’s parks and surrounding areas whose primary motivation for their holiday was to including: • contributing to the development of the are maintained for the benefit of parks users and visit a Victorian national or state park) estimated Competitively Allocated Licensed Tour • establishing the internationally award-winning neighbours. Many landowners are directly involved in that 20,000 jobs and $2.1 billion gross value added Operator Guidelines Changing Places facility for visitors with severe developing projects with local Parks Victoria staff to were contributed to the Victoria’s economy, up from physical disabilities at Arthurs Seat State Park • upgrading the licensing system to support policy deal with pest and weed issues affecting their land. 14,000 jobs and $1.4 billion gross value added five changes so tour operators demonstrating good years earlier. • creating accessible visitor accommodation options Around 100 projects were delivered statewide in the compliance history can apply for a longer at Tidal River in Wilsons Promontory National Park Mallee, Alpine, River Redgum regions and sensitive These are conservative economic estimates of the licence term. coastal parks and reserves, with 50 per cent focusing role that parks play in local economies, as they do on weed control and 50 per cent on reducing the not include the many visitors who visit parks as part impacts of pest animals. of other journeys.

Valuing Victoria’s parks Good Neighbour Program Around Parks Victoria contributes to local economies and jobs generating projects delivered 100 statewide 50% focused on weed control $2.1 billion 50% focused on reducing pest animal impacts through park tourism Tourism activities supporting 20,000 jobs Parks Victoria licenses over diverse types 50 of tourism activites

27 Providing Benefits Beyond Park Boundaries Parks Victoria Annual Report 2017–18 28 Enhancing Organisational Excellence

Key Performance Indicators The actions and priorities below underpin how we will deliver on our strategic outcomes and directions,

Target met  Target has been met or exceeded within agreed timeframes ensuring continuous business improvement and effective x Target has not been met – exceeds 5% variance and efficient delivery of park services. We aim to achieve Target not met (Significant variance that requires explanation) this by focusing on five key strategic areas. (x) Target has not been met – within 5% variance No result Recorded as NM = No measure Improve stakeholder and Almost two years since Parks Victoria introduced ParkConnect, the customer relationship management community engagement system is delivering benefits across the organisation. Providing Benefits Beyond Park Boundaries ParkConnect is more than just technology: it is Parks Victoria aims to ensure that our parks estate is a philosophy that centres on building a better promoted and managed as a destination of choice, 2017–18 2017–18 Year-end understanding of Parks Victoria’s ‘customers’ to that our customer focus and accessibility is central Performance measure target actual status develop stronger relationships with them. to our service offer, and we continue to provide opportunities for our visitors to increase active By providing appropriate tools for staff and Number of staff with accreditation in a fire role 700 721  engagement. customers, ParkConnect has enabled more efficient processes, enhanced financial management and Contribution to bushfire preparedness, readiness, response, fuel compliance, customer service improvements and management and emergency recovery (days) 52,479 57,973  ParkConnect increased community engagement and participation.

Number of bookings at Parks Victoria estate camping and accommodation sites 100,000 105,052  ParkConnect commercial module The development of the commercial module enabled the migration of two separate legacy commercial Number of Licensed Tour Operators in parks 430 496 500+  systems into a single system. Parks staff have access It has enabled the creation and implementation to ParkConnect of electronic signing capabilities (DocuSign) and the development and launch of a ParkConnect self-service portal for Licensed Tour Operators and Activity Providers. This has streamlined the licencing process, making it easier for Licensed Tour Operators 2,700+ 19,000+ 1,600+ to work with Parks Victoria. stakeholders phone calls current research are recorded recorded by the permits plus in ParkConnect Visitor Info Centre 10 years of permit ParkConnect volunteer module history accessible ParkConnect enables staff and volunteer groups to collaboratively plan, manage and report on volunteer activities. It is an important way in which Parks Victoria can make volunteering more accessible and promote volunteer opportunities more broadly. 700+ commercial 450+ 1,000+ registered Over 30 training sessions have been provided to agreements active Tour volunteers, 170+ volunteer groups, with 206 groups now registered recorded and Operator Licences groups, 600+ on the system. A further 236 Parks Victoria staff have managed through renewed through volunteer activities ParkConnect ParkConnect using and 15,000+ been trained in the use of the volunteer module. secure electronic volunteer hours signatures managed through ParkConnect

29 Providing Benefits Beyond Park Boundaries Parks Victoria Annual Report 2017–18 30 Engage meaningfully Joint Management Co-operative management • $1.3 million for tackling weeds and pests through Implementation Project Parks Victoria continued to work cooperatively the existing Good Neighbour Program and Alpine Horse Strategy and respectfully with Joint management is now the preferred model in with the Budj Bim Council and the Gunditj Mirring Traditional Owners Victoria for collaborative land management with Traditional Owners Aboriginal Corporation in the • $1.6 million to improve Parks Victoria’s camping Traditional Owners, and is increasing as public land management of Budj Bim National Park, and with the and accommodation booking system A key priority for Parks Victoria is to expand the is systematically transferred to Aboriginal Title Barengi Gadjin Land Council Aboriginal Corporation • $5.2 million for waterway infrastructure, role of Traditional Owners in park management across Victoria. in the management of Little Desert and Wyperfeld including repairing Kerferd Road, Seaford and and support their aspirations. We aim to create an national parks, Mount Arapiles-Tooan State Park and Parks Victoria is working with DELWP and Traditional Dromana piers environment where Traditional Owners can explore Lake Albacutya Park. Owners on the Joint Management Implementation appropriate traditional uses of resources on Country • $15.2 million for sporting infrastructure in Project to identify ways to strengthen the model to enhance cultural outcomes. Victoria’s parks. and to ensure it meets the needs of the joint Traditional Owner Accountability management partners. Framework This investment is complemented by the passage of Managing Country Together Parks Victoria’s Traditional Owner Accountability the Parks Victoria Bill 2018 through the Victorian In late 2017, the first statewide joint management Managing Country Together is Parks Victoria’s Framework is Parks Victoria’s new approach for Parliament. forum was held, where the Victorian Government framework for working in partnership with working with Traditional Owners. and Traditional Owner partners came together to This will enable Parks Victoria to operate as a world- Traditional Owners to manage Victoria’s cultural discuss their joint management experiences and The framework includes relationship protocols and class park management agency. landscapes. Ten principles have been developed identify priority areas for improvement. guidelines, which clarify the responsibilities and and adopted by Parks Victoria to describe the accountabilities of Parks Victoria staff to help them commitment to undertake park management in Phase 2 of the Joint Management Implementation The Victorian Government support respectfully and meaningfully engage with Traditional genuine collaboration with Traditional Owners. Project is now underway. highlights include: Owners and the broader Aboriginal community. The Grounded in international best-practice approaches • the release and implementation of the Feral Accountability Framework is a key element of Parks for respecting the rights of Indigenous peoples, the Horse Strategic Action Plan 2018–2021, to Victoria’s Managing Country Together framework. principles will underpin park management into the improve conservation efforts in eastern Victoria future. An organisational strategy is currently under • the establishment of the 641ha Woowookarung development that will guide how we will implement Partner better with Regional Park these principles. government to achieve • work on expanding Melbourne’s urban park valuable outcomes network, to create more nature-based and passive recreational opportunities for Victoria’s for Victorians growing population. This includes new parks at Barwon River Regional Park, Clyde Regional Park, Kororoit Creek Regional Park, Merri Creek Park Strong Victorian Government and Werribee River Regional Park commitment to Parks Victoria • as part of the Victorian Public Health and The Victorian Government has strengthened Wellbeing Plan 2015–2019, promotion of its commitment to Parks Victoria by amending the health benefits of parks, including within legislation and increasing funding. the ‘Active Victoria’ strategic plan and Local The 2017–18 State budget provided funding for 53 Government Health and Wellbeing Plans. new rangers, with 15 ongoing roles in Gippsland and the Latrobe Valley. The 2018–19 State budget provides • $70.6 million over four years, and $20 million ongoing, to deliver core park management services in regional Victoria

31 Enhancing Organisational Excellence Parks Victoria Annual Report 2017–18 32 Model leadership and Key achievements during 2017–18 include: Safety Performance Leadership Development accountability as a • completion of an activity mapping and a legal In 2017–18, Parks Victoria measured its health and Parks Victoria has continued to invest in the obligation register to target high priority risk safety performance through the Total Reportable development of its leaders to build capability and primary focus assessment and control Injury Frequency Rate. Over the year, the rate bench strength. reduced from 32.4 to 17.7 – a 45 per cent reduction. • continuation of an audit program to review Parks Victoria held two Senior Leadership Forums, We aim to build an outcomes-focused workforce This advance on 2016–17 results is a reflection performance, focusing on due diligence and where over 70 senior leaders came together to that is safe, diverse, skilled, flexible and reflects the of the continued improvement to Parks Victoria’s legislative compliance discuss culture and business improvement initiatives. communities it serves. safety culture. • introduction of a monthly safety campaign that The forums were designed to provide senior leaders As a lead indicator, reporting of hazards is covers key health, safety and environment topics with the motivation and tools needed to build Safety First – Zero Injuries program encouraged as a proactive approach to improving to keep safety front-of-mind effective teams to achieve Parks Victoria business Parks Victoria’s highest priority is the health, safety safety performance and preventing injuries, by transformation. and wellbeing of its staff. The third year of the • continuation of safety walk-and-talks by the reporting events that have the potential to cause Safety First Zero Injuries program has resulted in an executive team as a means to demonstrate visible harm. Parks Victoria continued to deliver leadership improved safety culture for all of our staff ensuring safety leadership and provide opportunities to workshops on Essential Performance Conversations, In 2017–18, 141 hazards were reported, providing safety is at front of mind in all that we do. A health, engage and build trust with the workforce Human Resource and Governance Essentials, and opportunities to identify appropriate corrective safety and environment management system is Leadership Essentials, to ensure that leaders have • introduction of new Safety and Wellbeing boards actions required to prevent a recurrence of the event. being developed to support our culture by ensuring the tools and confidence to meet their management with a strong local focus in all work centres common organisation wide approaches to identifying challenges. • enhancement of the induction process for health, People Strategy 2017–2022 and managing health, safety and environment An online managers toolkit was launched to support safety and environment In July 2017, Parks Victoria launched a five-year risks, developing standard safe ways to work for leaders with ‘just-in-time’ resources and information the activities that we undertake, and improving People Strategy. • improvement to asbestos reporting and to promote continued learning in the workplace. our reporting and resolution of health, safety and management, including the removal of 43 tonnes The People Strategy is being implemented using environment hazards and incidents. of asbestos from the estate through the clean People and Culture’s guiding priorities and work People Matter Improvement Plan The development of the health, safety and up of 47 asbestos dumps and remediation of 56 programs over the next five years, with an emphasis To address the results of the 2016 People Matter environment management system will provide robust built assets with asbestos. on ensuring a modern, high performing and Survey and engage employees in being part of the tools and work practices to support the delivery sustainable workforce for Parks Victoria. solution to improve engagement, People Matter of activities in a safe and environmentally sound 2017–18 focused on building a strong foundation for Implementation Plans for Parks Victoria and for each manner. the workforce that included: Division were developed. • implementing and embedding the Parks Victoria A range of initiatives have been actioned to: Enterprise Agreement 2016, including a review of Number of reported incidents • embed the online performance system to the Competency Assessment Program ensure clear goals and accountabilities in staff Year 2013–14 2014–15 2015–16 2016–17 2017–18 • moving towards an online recruitment process, Performance and Development Plans Number of incidents 87 217 508 531 601 streamlining recruitment processes and • improve change management through executives enhancing governance Rate per 100 FTEs 9.63 22.65 51.1 52.6 33.0 undertaking change management training and • building a diverse and culturally competent launching a change management toolkit Number of ‘lost time’ standard claims workforce through a Diversity and Inclusion Plan • focus on communicating strategic priorities and an Aboriginal Employment and Wellbeing Plan Year 2013–14 2014–15 2015–16 2016–17 2017–18 and Parks Victoria’s values and commitments • improving resources for managers and employees every day through internal communications, No. of claims 28 27 23 13 20 so that they understand their accountabilities and staff roadshows, Chief Executive Officer Lost Time Injury Frequency Rate 26.58 24.9 18.9 18.5 12.6 can make evidence-based decisions. briefings, manager and employee alerts and communications Average cost per claim • enhance leadership and management Year 2013–14 2014–15 2015–16 2016–17 2017–18 performance through continued coaching and training workshops. Average cost $22,460 $35,126 $40,607 $46,570 $89,775

33 Enhancing Organisational Excellence Parks Victoria Annual Report 2017–18 34 Diversity and Inclusion Plan Aboriginal Employment and Some of the mentoring partnerships are continuing Procurement of a suitable development partner for Diversity and inclusion are central to making Parks Wellbeing Plan in an informal way, due to the benefits both parties AMIS is expected to be finalised later this year, with received from the program. development expected to commence during the Victoria modern, high performing and sustainable. Parks Victoria undertook an extensive consultation second quarter of 2018–19. process to develop an Aboriginal Employment and In November 2017, Parks Victoria launched its first In accordance with the People Strategy and the Wellbeing Plan. The plan will define how Parks Victoria Workplace Diversity and Inclusion Plan. Workplace Diversity and Inclusion Plan, consideration will better support Aboriginal employees, both within is being given to roll out the tools created for this Commercial Expression of Interest The focus areas are: the organisation and with partner organisations. pilot program more broadly. (EOI) Framework • Aboriginal and Torres Strait Islander employment To enhance cultural awareness and understanding, A commercial EOI framework was established and cultural safety Parks Victoria’s leaders adopted ‘reverse’ mentoring to provide an enabling environment for private Modernise Parks Victoria investors, community groups and the business • Cultural and Linguistically Diverse (CALD) with Aboriginal employees as mentors. This was received favourably by both Aboriginal staff and community to submit proposals to operate businesses community’s employment and inclusion on public land managed by Parks Victoria. Executive team members. Asset Management Information System • Lesbian, Gay, Bisexual, Transgender and Intersex Each opportunity, and resulting EOI development, (LGBTI) inclusion, support and a Pride Network As a result, 13 Aboriginal staff mentors from across Providing full life cycle management of built the state were partnered with 14 Senior Managers infrastructure assets is vital to ensuring that Parks probity, promotion, application and assessment • Life stages – valuing mature age and young and Executives as mentees. Victoria provides a safe and engaging experience for processes provides a fair, equitable and qualified employees, inclusion, succession, retaining visitors in parks today, and for generations to come. competitive system in line with policy and legislation. knowledge The program commenced in May 2018. Participants were issued with a toolkit and required to complete a Specifications have been developed to enable the A public document, EOI Essentials, provides • People with a disability – increased employment, pre-program survey. The surveys were exchanged and new Asset Management Information System (AMIS) interested parties with further information and workplace support and awareness used to facilitate the conversations of the partners. to deliver more sustainable asset recording, with highlights opportunities. It is available on Parks capability for life cycle cost recording and support for Victoria’s website. • Women in Parks Victoria – inclusion The overall participant survey findings were: opportunities. maintenance and inspection programs. Functionality • 100 per cent – the meetings were used effectively will include mobile access, with capability to operate Built Infrastructure Strategy • Flexible work – for all employees for any purpose both online or offline, and spatial, providing access • 100 per cent – enough information was provided implementation to maps and location points, lines or shapes to • Inclusive leadership and awareness of prior to the program Considerable work was done to improve the unconscious bias. describe or display assets. management of Parks Victoria’s assets. Using the • 100 per cent – the program was of value Asset Management Accountability Framework as a Key achievements from the Plan for 2017–18 The implementation of AMIS is planned to guide, new policies and procedures were developed, included: • 100 per cent – endorse the program being rolled complement the Built Infrastructure Strategy and out more broadly facilitate compliance with the Asset Management further asset audits and inspections were undertaken • implemented the Aboriginal Mentoring Program Accountability Framework. and Park Victoria’s current asset management system • 91 per cent – the relationship was ‘excellent’ where Executives were mentored by Aboriginal was improved to better support field-based or ‘good’. employees assessments. • established a peer-based Pride Network Comments made by the mentors when asked ‘what was the most beneficial aspect of the program’: • developed a regime for collecting data and reporting progress against success measures and • learning and story/experience sharing metrics, using workforce data and employee • an open forum to discuss a wide range of difficulties surveys, including the People Matter Survey Aboriginals can face and how we can work Aircraft and Remotely • implemented on-boarding and exit interviews to together to support and reduce resistance and Piloted Aircraft seek feedback from new and existing employees barriers to change Parks Victoria is the largest user of aircraft outside of on diversity issues and experiences to identify • sharing my knowledge with someone who had Victoria’s fire and emergency response service. Flight trends and inform future actions very little to no understanding of Aboriginal operations have increased from nine operational flights in 2014–15 to over 25 operational flights in • established a Diversity and Inclusion Leadership History and Culture 2017–18. Group that oversees delivery of the plan and • interacting with a Senior Manager and getting includes a representative from DELWP. to know them Parks Victoria use of aircraft includes aerial surveying, sling loading and thermal imaging of feral animals. • talking about my work challenges and Parks Victoria’s pilots also obtain valuable data to observations. support park management.

35 Enhancing Organisational Excellence Parks Victoria Annual Report 2017–18 36 Secure stable, flexible Financial position – income statement undertaken every five years, with the next scheduled Implementation of continuous auditing For the 2017–18 financial year, Parks Victoria to be performed in June 2021. Financial assets also Parks Victoria has commenced a continuous auditing and sustainable revenue received $262.3 million in income, which was increased during the year to $170.7 million, reflective program focused on fraud alerts from Payroll and streams $18.3 million higher than budgeted. This additional of the increased operating cash flows primarily due Finance systems. Alerts and exception reports income primarily relates to the delivery of sports and to the higher than anticipated operating surplus. are regularly generated based on defined fraud Parks Victoria’s annual budget supports the delivery recreation opportunities in parks and other grants risk criteria. of the Annual Business Plan. It is based on funding tied to specific purpose projects. Expenditure in the Cash flows for Victorian government commitments and an 2017–18 financial year was below budget partly due Total cash and investments at the end of the year Fraud and Corruption Control Plan allocation from the Parks and Reserves Trust Account. to savings in plant and equipment, and some delays was $155.9 million, made up of cash and cash A Fraud and Corruption Control plan was completed, in operational delivery. The higher expenditure levels equivalents of $30.9 million and investments of based on the Australian Standard for Fraud and compared to the previous year represent a stronger Overall financial performance $125 million, of which $110.5 million related to the Corruption Control (AS8001-2008). focus on the delivery of specific purpose projects. unspent component of specific purpose grants Parks Parks Victoria achieved a net result from transactions Victoria has received to undertake various projects The Fraud and Corruption Control Plan analyses the surplus of $12.1 million for the 2017–18 financial A comprehensive result of $220.3 million included in 2018–19 and beyond. The remaining balance of exposure of Parks Victoria to fraud and documents year. This surplus exceeded budget expectations changes in physical asset revaluation surplus of $45.4 million represents cash and cash equivalents the organisation’s approach to controlling fraud and was primarily due to additional funding being $207.1 million, mainly relating to the annual required to meet other short term current liabilities and corruption exposure at strategic, tactical and received towards the end of 2017–18, mostly tied to revaluation of crown land and land improvements. as they fall due. operational levels. specific purpose capital grants for projects which will be delivered in 2018–19 and beyond. Financial position – Balance Sheet The plan details Parks Victoria’s intended action in implementing and monitoring fraud and corruption Significant work was undertaken to achieve a Total assets at the end of the 2017–18 financial Improve our governance prevention, detection and response initiatives. A successful bid into the Expenditure Review Sub- year were $2.8 billion, an increase of $276.7 preliminary assessment of fraud and corruption risk Committee and secured a long-term sustainable million from the previous year. Similar to that of systems has been completed to better scope Parks Victoria’s funding for Parks Victoria’s core operating activities. the 2016–17 financial year, this increase primarily future fraud risk mitigation program. A Cost of Services Model has been developed reflects the impact from a re-valuation of crown Establishment of a whistleblower to enhance the transparency of our operating land and land improvements, following an annual hotline and Whistleblower Complaints All fraud and theft instances are reported in accordance with the Standing Directions of the spend. We also continued to focus on managing fair value assessment using land indices provided Steering Committee finances efficiently and effectively, through the by the Valuer-General Victoria, that indicated a Minister for Finance. implementation of modernised project management significant movement in that asset class. Full physical In February 2018, Parks Victoria launched an and procurement frameworks. re-valuations of Parks Victoria’s asset base are independent whistleblower hotline. All employees have access to the hotline to report inappropriate behaviour and practices. Five year financial summary Following the launch of Parks Victoria’s independent ($’000) 2018 2017 2016 2015 2014 (i) whistleblower service, awareness sessions were undertaken through Parks Victoria’s intranet and Revenue from Government 117,065 103,447 97,672 76,773 96,834 employee briefings. The process for reporting fraud and corruption is available to employees and visible Total income from transactions 262,313 238,238 239,515 203,284 225,710 on staff noticeboards. Total expenses from transactions 249,176 231,054 223,352 209,510 220,250 A Whistleblower Complaints Steering Committee Net Result from transactions 13,137 7,184 16,163 (6,226) 5,460 was established to receive whistleblower complaints, Net Result 12,060 6,163 13,848 (7,797) 5,271 assess the need for further investigation and advise and make recommendations on preventative Comprehensive result 220,329 232,958 336,980 (5,651) 6,169 measures. Net cash flow from operating activities 29,479 21,282 32,002 9,833 4,369

Total assets 2,800,357 2,523,650 2,278,746 1,919,219 1,926,991

Total liabilities 68,269 60,719 64,348 53,251 56,420

(i) During the financial year ended 30 June 2015, Parks Victoria revised its accounting treatment for a number of items and, as a result, amendments were required to be made to the 2014 prior period comparatives

37 Enhancing Organisational Excellence Parks Victoria Annual Report 2017–18 38 Advocate for an The new Act will commence on 12 September Key Performance Indicators 2018. Parks Victoria will continue to have a Fire amendment to Parks Service Agreement with DELWP and agreements Victoria’s legislation to in place with other organisations that seek the provision of services from Parks Victoria. The current Target met  Target has been met or exceeded within agreed timeframes enable us to deliver for Management Services Agreement with DELWP will x Target has not been met – exceeds 5% variance the Victorian community be superseded once the new Act passes. Target not met (Significant variance that requires explanation) (x) Target has not been met – within 5% variance No result Recorded as NM = No measure New Parks Victoria Act A new Parks Victoria Bill has been passed by Parliament that will establish Parks Victoria as an authority which: Enhancing Organisational Excellence • will have direct control and management of the 2017–18 2017–18 Year-end land for which it is responsible Performance measure target actual status • will have more clarity around its powers and accountabilities. Total Reportable Injury Frequency Rate (TRIFR) 21 17.7  The key governance and planning elements under The TRIFR has remained below the target over the last 6 months period due to a lower number of total recordable injuries over the last this new Act are: 12 months. • a ‘Statement of Obligations’ from the Minister Within which sets outs Parks Victoria’s obligations. +/- 5% of This will replace the current ‘Statement of Total output cost (variation between actual expenditure and budget) budget -5.7 x Expectations’ The actual output cost variance was 5.7% or $14.3m lower than budget, comprising: • the requirement for corporate plans to be Labour costs 2.0% or $2.8m lower than budget, due to unfilled vacant positions, across tied operations labour $3.0m (mainly lower Unlocking prepared by Parks Victoria and approved by the benefits of parks for all Victorians); partially offset by higher core operations labour ($0.2m) (mainly higher Earned Emergency Recreation Leave provision) the responsible Minister Base costs 5.7% or $2.0m lower than budget, mainly lower base costs associated with staff linked to Unlocking the benefits of parks for all • a ‘Land Management Strategy’ approved by Victorians $1.0m and IT and telecommunications costs $1.0m (mainly lower telephone data lines $0.5m and computer lease payments $0.4m) Project costs 12.0% or $9.6m lower than budget, across tied operations projects $13.8m (mainly lower Flood Recovery $4.3m, Fire Recovery the Minister which Parks Victoria must produce $3.3m, Managing Country $1.4m and Unlocking the benefits of parks for all Victorians $1.2m); partially offset by higher than budget core which ‘sets out the general long-term directions, operations projects ($4.2m) (mainly unbudgeted Insurance works $1.8m and higher strategic and other projects expenditure $2.4m, funded through efficiency savings achieved across base costs and business as usual projects). strategies and priorities for the protection, management and use’ of land managed by Parks Victoria. Employee engagement index 65 63 (x)

Employee satisfaction index 65 63 (x)

39 Enhancing Organisational Excellence Parks Victoria Annual Report 2017–18 40 Compliance and Disclosures

Disclosure Index Legislation Requirement Page(s) Financial report Parks Victoria’s 2017–18 Annual Report is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of Parks Victoria’s compliance with statutory disclosure Financial statements required under Part 7 of the FMA requirements. SD5.2 Statement of changes in equity 65 Legislation Requirement Page(s) SD5.2 Operating statement 63 SD5.2 Balance sheet 64 Report of operations SD5.2 Cash flow statement 66

Charter and purpose Other requirements under Standing Directions 5.2

FRD 22H Manner of establishment and the relevant Ministers 1 SD5.2.1(a) Compliance with Australian accounting standards and other authoritative pronouncements 68 FRD 22H Purpose, functions, powers and duties 1, 39 SD5.2.1(a) Compliance with Ministerial Directions 73 FRD 22H Initiatives and key achievements 5–6 SD5.2.2 Accountable officer’s declaration 62 FRD 22H Nature and range of services provided 1–4 Other disclosures as required by FRDs in notes to the financial statements Management and structure FRD 11A Disclosure of Ex gratia Expenses 101 FRD 22H Organisational structure 47–50 FRD 21C Disclosures of Responsible Persons, Executive Officers and other Personnel (Contractors 102 with Significant Management Responsibilities) in the Financial Report Financial and other information FRD 102 Inventories 64 14, 22, 29, 40 FRD 8D, SD 4.2(k) Performance against output performance measures FRD 103G Non Financial Physical Assets 81 FRD 10A Disclosure index 41 FRD 104 Foreign Currency 99 FRD 12B Disclosure of major contracts 55 FRD 106 Impairment of Assets 83 FRD 15E Executive Officer disclosures 55 FRD 109 Intangible Assets 91 FRD 22H Employment and conduct principles 34–36 FRD 110 Cash Flow Statements 95 FRD 22H Occupational health and safety policy 33 FRD 112D Defined Benefit Superannuation Obligations 77 FRD 22H Summary of the financial results for the year 37–38 FRD 113A Investments in Subsidiaries, Jointly Controlled Entities and Associates (Pending revision) 105 FRD 22H Significant changes in financial position during the year 37–38 FRD 114A Financial Instruments – General Government Entities and Public Non Financial Corporations 97 FRD 22H Significant changes or factors affecting performance 51 FRD 119A Transfers through Contributed Capital 102 FRD 22H Subsequent events 106 Legislation FRD 22H Application and operation of Freedom of Information Act 1982 51–52 Freedom of Information Act 1982 51–52 FRD 22H Compliance with building and maintenance provisions of Building Act 1993 53 Building Act 1993 53 FRD 22H Statement on Competitive Neutrality Policy 55 Protected Disclosure Act 2012 53 FRD 22H Application and operation of the Protected Disclosure Act 2012 53 Victorian Industry Participation Policy Act 2003 55 FRD 22H Details of consultancies over $10 000 58 Financial Management Act 1994 62 FRD 22H Details of consultancies under $10 000 58 Disability Act 2006 51 FRD 22H Statement of availability of other information 52 FRD 24D Reporting of office based environmental impacts 56 FRD 22H Disclosure of ICT expenditure 57 FRD 25C Victorian Industry Participation Policy disclosures 55 FRD 29B Workforce Data disclosures 54 SD 5.1.4 Financial management compliance attestation 59

41 Compliance and Disclosures Parks Victoria Annual Report 2017–18 42 Parks Victoria’s Board Graham Atkinson Christine Trotman Helen Weston Term of office end date: 31 July 2020 Term of office end date: 31 July 2020 Term of office end date: 31 July 2020 The Parks Victoria Board has responsibility for Graham is a board member of the Federation of Christine is the chief executive officer of a rural Helen is the chair of the Working Heritage Inc. the overall governance of Parks Victoria. On Victorian Traditional Owners Corporation and chair health service in Gippsland and lives on a beef farm Committee of Management, which conserves the recommendation of the Minister for Energy, of Barpa Pty Ltd, a joint construction venture. He is in South Gippsland. She has held executive roles heritage properties located on public land for Environment and Climate Change, the Governor the chair of the Dhelkunya Dja Land Management in health, disability services and education and community and commercial use. Board, a former chair of the Dja Dja Wurrung Clans holds qualifications in governance, accounting and in Council appoints Board Members for a period Helen has also been a director of an environmental Aboriginal Corporation and is also a director of business management. not exceeding three years. Members are eligible for planning firm for the past 25 years and is a Fellow Djandak Enterprises, which is a subsidiary of Dja Dja reappointment. The Board operates in accordance Christine has extensive experience serving on a range of the Planning Institute of Australia, a Certified Wurrung Clans Aboriginal Corporation. with the provisions of the Parks Victoria Act 1998. of boards and committees in the not-for-profit sector Practising Planner and a member of the Environment The Board directs and monitors the business of Graham is a board member of the Judicial and is chair of the Lower Yarra River Management Institute of Australia. Parks Victoria and is accountable to the Minister Commission of Victoria, a board member of the Advisory Committee. North Central Catchment Management Authority, for its overall performance. The Board appoints the Annette Vickery Board attendance and a member of its Audit and Risk Management Chief Executive Officer and delegates day-to-day Term of office end date: 31 July 2020 There were 10 scheduled Board meetings and one responsibility for operations and administration to Committee. He is a director of a social research Annette is an Aboriginal woman from Gunditjmara special meeting. the Chief Executive Officer. consulting group, Atkinson Consulting Group. in Western Victoria, and lives and works with pride Total meeting attendance in 2017–18 Board changes during 2017–18: Lisa Marty on the land of the people of the Kulin nations. She Term of office end date: 31 July 2020 is the deputy chief executive officer of the Victorian Attendees Number of meetings • Andrew Fairley (appointed 1 August 2014, Lisa is a co-chair and trustee director of First Super, Aboriginal Legal Service, a fellow of the Australian and continued as Chair to 31 July 2017) Jeff Floyd (Chair) 9/10 the industry superannuation fund for the timber, Institute of Managers and a graduate of the • Natalie O’Brien and Robert Wallis (appointed pulp and paper, furniture and joinery industries Australian Institute of Company Directors. Graham Atkinson 8/10 10 November 2015, continued as Member and was the chief executive officer of the Victorian Annette has extensive experience in the public Lisa Marty 7/10 to 31 July 2017) Association of Forest Industries from 2012 to 2014. and private sector, community and stakeholder John Pandazopoulos 8/10 • Andrew Grant (appointed from 10 November Lisa has extensive experience in policy development, engagement, organisational capability and capacity 2015 to 30 June 2018, continued as Member stakeholder engagement, governance and strategy. building and change management. Christine Trotman 10/11 to 31 December 2017) She is also a director of Skills Impact, a national Kate Vinot Annette Vickery 7/10 skills services organisation, and a member of the • Helen Weston, John Pandazopoulos, Annette Term of office end date: 31 July 2020 Australian Agricultural Industry Advisory Council. Kate Vinot 9/11 Vickery, Lisa Marty, Graham Atkinson and Jeff Kate is an experienced non-executive director Helen Weston 10/10 Floyd (appointed 1 August 2017 and continue John Pandazopoulos who brings energy, intellectual rigour and deep beyond 30 June 2018). Term of office end date: 31 July 2020 executive and board experience to her roles. She Andrew Fairley to 31 July 2017 1/1 As at 30 June 2018, the Board Members were: John is chair of Destination Phillip Island Regional has held executive general management and chief Natalie O’Brien to 31 July 2017 1/1 Tourism Board, chair of the Victoria Government’s executive officer positions in private and public Jeff Floyd (Chair) Visitor Economy Ministerial Advisory Committee sector businesses for 17 years. Her line-management Robert Wallis to 31 July 2017 1/1 Term of office end date: 31 July 2020 and deputy chair of the William Angliss Institute, responsibilities included strategy, business systems, Andrew Grant to 31 December 2017 4/5 Jeff is an Adjunct Professor at the College of Australia’s specialist food, tourism, hospitality and risk management, planning, business continuity, Business, Victoria University. He has had an extensive events educator. implementing change, asset management, career as a chief executive officer, including as engineering, policy development, environment, John has over 28 years’ experience in public policy, inaugural CEO Parks Victoria, CEO Victorian safety, smart city initiatives, sustainability, research governance and government, both at a local and Government Office of Trade and Investment, CEO and development and innovation. state level. Over this time, he served as a Victorian Tourism Victoria and CEO AAA Tourism. Jeff has minister in the tourism, multicultural affairs, major As a non-executive director and consultant, Kate served over 30 years as a director on government projects and racing and gaming portfolios and was draws on this background to assist organisations to and not-for-profit boards. a local councillor and mayor of the City of Berwick develop and execute their strategic intent, improve as well as an executive of the Municipal Association business processes, and understand and influence of Victoria. market changes.

43 Compliance and Disclosures Parks Victoria Annual Report 2017–18 44 Board Committees During 2017–2018, the Committee consisted of Conservation and Science Committee Total meeting attendance in 2017–18 Kate Vinot (Chair), Jeff Floyd, John Pandazopoulos (established March 2018) Attendees Number of meetings and Graham Atkinson. There were two external During the year the Board undertook a review of The Conservation and Science Committee is independent Committee members: Pranay Lodhiya Christine Trotman (Chair) 2/2 its Committee structures. In March 2018, the Board responsible for the development and implementation (from March 2018) and Carol Pagnon (to 31 December established three new committees in addition to the of a strategic and evidence-based environment and Annette Vickery 2/2 2017). The Committee met four times in 2017–18. Audit, Risk and Compliance Committee. conservation program to improve the effectiveness Lisa Marty 2/2 Total meeting attendance in 2017–18 of park management. Aboriginal Engagement Committee Helen Weston 2/2 Attendees Number of meetings During 2017–18, the Committee consisted of The role of the Aboriginal Engagement Committee Lisa Marty (Chair), Helen Weston and Jeff Floyd. Jeff Floyd 1/2 is to provide advice to the Board on strengthening Kate Vinot (Chair) 4/4 There were three external independent Committee Aboriginal engagement and recognising and Jeff Floyd 3/3 members: Andrew Grant (from March 2018), Gerry Planning, Project and Asset promoting cultural heritage values to Parks Victoria Quinn (from March 2018), and Rachel Lowry (from John Pandazopoulos 2/3 Management Committee and the community. March 2018). The Committee met twice in 2017–18. (established March 2018) Graham Atkinson 3/3 During 2017–18, the Committee consisted of Total meeting attendance in 2017–18 The Planning, Project and Asset Management Graham Atkinson (Chair), Annette Vickery, Jeff Floyd Pranay Lodhiya 2/2 Committee oversees and provides advice to the Attendees Number of meetings and John Pandazopulos. There were two external Board on Parks Victoria’s strategic capital works Carol Pagnon 2/2 independent Committee members: Mick Harding Lisa Marty (Chair) 2/2 program, related business case development, master (from June 2018) and Marcus Stewart (from June Andrew Grant 1/1 and precinct planning, and built asset management Helen Weston 2/2 2018). The Committee met twice in 2017–18. across the Parks Victoria portfolio. Jeff Floyd 1/2 Total meeting attendance in 2017–18 Commercial Business Committee During 2017–18, the Committee consisted of Helen (established March 2018) Andrew Grant (external member) 1/2 Weston (Chair), John Pandazopoulos and Kate Vinot. Attendees Number of meetings The Commercial Business Committee is responsible There was one external independent Committee Gerry Quinn (external member) 2/2 Graham Atkinson (Chair) 1/2 for supporting and enhancing Parks Victoria’s member: David Gundy (from March 2018). The commercial performance and providing advice on Rachel Lowry (external member) 1/2 Committee met three times in 2017–18. Annette Vickery 1/2 aspects of strategy and implementation in support of Total meeting attendance in 2017–18 Jeff Floyd 2/2 Parks Victoria’s commercial portfolio. People and Safety Committee Attendees Number of meetings John Pandazopoulos 2/2 During 2017–18, the Committee consisted of John The People and Safety Committee is the appointed remuneration committee. It has responsibility for Marcus Stewart (external member) 0/2 Pandazopoulos (Chair), Jeff Floyd, Helen Weston Helen Weston (Chair) 3/3 and Lisa Marty. There was one external independent determining the organisation’s policy and practice John Pandazopoulos 3/3 Mick Harding (external member) 1/2 Committee member: Dean Minett (from June 2018). for executive remuneration and packages under The Committee met twice in 2017–18. the Victorian Public Sector Commission Policy. Kate Vinot 2/3 The Committee reviews, monitors and makes Audit, Risk and Compliance Committee David Gundy (external member) 3/3 Total meeting attendance in 2017–18 recommendations to the Board on the following The Audit, Risk and Compliance Committee oversees issues: and advises on matters of accountability and internal Attendees Number of meetings controls affecting the operations of Parks Victoria as John Pandazopoulos (Chair) 2/2 • workplace health and safety required by the Standing Directions of the Minister • setting of performance measures and review for Finance under the Financial Management Act Jeff Floyd 2/2 of the performance of the Chief Executive 1994. The role of the Committee is to assist the Helen Weston 2/2 Board in the effective discharge of its responsibilities • compliance with executive remuneration in overseeing the areas of statutory reporting, Lisa Marty 2/2 requirements internal controls, risk management (including Dean Minett (external member) 1/1 • human resources policies. insurance and legal proceedings), compliance and the internal and external audit functions. During 2017–18, the Committee consisted of Christine Trotman (Chair), Annette Vickery, Lisa Marty, Helen Weston and Jeff Floyd. The Committee met twice in 2017–18.

45 Compliance and Disclosures Parks Victoria Annual Report 2017–18 46 Our Executive Management Team

Matthew Jackson Margaret Gillespie Chief Executive Officer Executive Director Legal, Risk and Compliance and Chief Legal Counsel Matthew joined Parks Victoria as Chief Executive Officer in February 2017. Margaret joined Parks Victoria in 2006 as the Chief Legal Counsel. She is Matthew has been involved in nature-based tourism and education for most of responsible for managing Parks Victoria’s legal risk as well as organisational his career, starting as a zookeeper at Currumbin Wildlife Sanctuary in Queensland, governance, risk and insurance. known for having the largest collection of native Australian animals. Margaret is an experienced commercial lawyer whose career has spanned practice Matthew is an experienced conservation and environmental professional and and in-house private sector positions in New York, London and Melbourne. has also worked in the private sector in marketing and distribution. He has extensive experience in environmental research, conservation, education, wildlife Ben Skinner management, operational management and stakeholder relations. Executive Director Infrastructure and Information Technology Prior to working at Parks Victoria, Matthew was the Chief Executive Officer at Ben joined Parks Victoria in January 2018 and oversees Infrastructure and Phillip Island Nature Parks for six years and, before that, held other senior roles Information Technology: two critically important areas of our business. The within the organisation. He oversaw significant change at Phillip Island Nature division is responsible for capital projects delivery, asset management, business Parks that involved a high level of community consultation and the delivery of operations and facilities, enforcement and information technology operations, major environmental outcomes and significant new tourist attractions. applications and innovation, projects and governance. Matthew completed a Master of Business Administration from Southern Cross He brings significant knowledge and experience as an MBA qualified leader and University in 2004. Chartered Professional Engineer with 15 years in engineering and capital project delivery across the private and higher education sectors in Australia and the UK. Simon Talbot His focus is on building strong capital delivery capability through robust Chief Operating Officer governance, the development of a professional and accountable culture and the Simon has more than 20 years of experience across the mining, agriculture, adoption of efficient systems and processes. forestry and food sectors. He has worked extensively with both Federal and Previously, Ben held the Acting Deputy Director Capital Works role at RMIT State governments and has a deep passion for the land. As the Chief Executive University and was responsible for the annual delivery of $150–200 million in Officer of the National Farmers’ Federation, Simon was appointed to co-create capital works. a refreshed vision for Australian Agriculture and lead a complex transformation agenda. He has also held senior roles in food and rural sectors and worked across seven countries including New Zealand, Malaysia, China, Vietnam, Indonesia and Lisa Patroni The Netherlands. Executive Director Marketing, Communications and Partnerships Simon’s roles have been diverse and complex ranging from corporate branding, Lisa joined Parks Victoria in October 2017. Lisa is responsible for leading Parks Traditional Owner partnerships, critical incident management and sustainable Victoria’s digital transformation, which will see a new approach in promoting our economic systems. He holds a Master of Business Administration from the University parks, park experiences, wildlife and nature. This will involve the renewal of Parks of New South Wales, a science degree from the University of Tasmania (Earth Victoria’s external website, social media presence and accommodation booking Science/Psychology major) and is a qualified Occupational Health and Safety auditor. system (ParkStay) by 2020. Lisa has a strong background in marketing, stakeholder management, government relations, tourism, and major events, with a proven ability to manage complex stakeholder relationships.

47 Compliance and Disclosures Parks Victoria Annual Report 2017–18 48 Dr Mark Norman Our Organisational Structure Executive Director Environment and Science, and Chief Conservation Science Mark was appointed as Parks Victoria’s Chief Conservation Scientist in March 2016, to undertake a review of Parks Victoria’s environmental and science needs. He is responsible for providing advice on how the organisation should be shaped to meet Parks Victoria Board our conservation objectives. Mark is well known to many Parks Victoria staff and has extensive experience in wildlife research, biodiversity surveys and science communication. He is also well known as an Chief Executive Officer effective science communicator. Matthew Jackson

Kylie Trott Executive Director Regional Victoria Chief Operating Executive Executive Executive Executive Executive Kylie has worked for Parks Victoria since 2005 and has held numerous operational and Officer Director Director Director Director Director strategic delivery roles with her most recent position being Director of Statewide Services. Environment Infrastructure Legal, Risk Marketing, People & & Science and IT Services & Compliance Communications Finance and Kylie started her career in local government as a gardener and park manager in and Chief and Chief Legal & Partnerships Chief Financial regional parks. She has extensive leadership, planning, policy development, project Conservation Counsel Officer Scientist management, strategic and business reform experience. Simon Talbot Mark Norman Ben Skinner Margaret Gillespie Lisa Patroni Ian Sargent Kylie is passionate about park management and believes everyone should have the opportunity to spend time in parks immersed in nature. Melbourne Division Environment and Information Governance, Risk Brand Marketing & Finance Conservation Technology and Compliance Digital Operations Regional Services Chris Hardman Victoria Division Science & Health, Safety and Communications People and Management Statewide & Environment Culture Executive Director Melbourne Division Managing Country Effectiveness Infrastructure Community, Together Services Information Partnerships Public Procurement Chris migrated from the UK to Australia in 1984, leaving a career in the Merchant Navy. Management Affairs and Contracts Park Planning and In Parks Victoria and its predecessor organisations, Chris progressed from operational Policy Legal Services Tourism & Visitor Corporate and Experience Business Strategy roles (Field Service Officer and ranger) into management roles, including Ranger in Commercial Charge, District Manager and Regional Director. Fire and Emergency Since 2012, Chris has led Parks Victoria’s highly complex Melbourne Region. He has extensive experience in emergency management and was awarded the National Emergency Medal for his leadership in the 2009 Black Saturday fires.

Ian Sargent Executive Director People and Finance and Chief Financial Officer Ian joined Parks Victoria in July 2016 as Executive Director Finance and Commercial and Chief Financial Officer. In this role, Ian leads the People and Finance Division, which provides core support and strategic services in finance, strategic business planning and reporting. Ian brings a wealth of experience to Parks Victoria, having worked in multiple industries including utilities, resources, property development, regulation and insurance across the public and private sectors. Prior to joining Parks Victoria, Ian was the Chief Finance Officer at Barwon Health and WorkSafe Victoria.

49 Compliance and Disclosures Parks Victoria Annual Report 2017–18 50 Public Sector principles • implemented a Sherpa volunteer program Of the 40 requests: • details of major research and development operating in the Dandenong Ranges activities undertaken by Parks Victoria Parks Victoria’s recruitment and grievance procedures • 23 were decided by Parks Victoria National Park are consistent with the Code of Conduct for • details of major promotional, public relations and • eight were courtesy consultations from other Victorian Public Sector Employees and Victorian • installed a new electric hoist on the pier marketing activities undertaken by Parks Victoria agencies Public Sector Standards. at Patterson River to develop community awareness of the entity • three were rejected/refused and its services Parks Victoria’s Gifts, Benefits and Hospitality and • provided all abilities Junior Rangers program Conflict of Interest policies are based on the Victorian to children visiting Wilsons Promontory National • three lapsed • details of changes in prices, fees, charges, rates Public Sector policy guideline. Park and Serendip Sanctuary in school holidays and levies charged • two were dealt with outside the FOI process Training on Human Resources and Governance • developed social scripts for children on the autism • details of overseas visits undertaken. • one was transferred to another agency for Essentials provided to senior leaders included training spectrum for Jells Park, Tidal River (Wilsons processing For details of the FOI process please refer to the Parks on the Victorian Public Sector Values and the Promontory National Park) and Buchan Caves Victoria website. Requests for documents can be application of the Code of Conduct. Reserve • seven are yet to be finalised. made by writing a letter or completing the Freedom • supported Milparinka, a community organisation, Of the five carried forward from 2016–17: of Information application form, enclosing payment Merit, equity and diversity to provide forest therapy programs for adults • four were decided by Parks Victoria of $28.90 and forwarding to: Parks Victoria is committed to maintaining with cognitive disabilities in Gresswell Forest FOI Officer a workplace that is free from harassment, Reserve • one lapsed. Parks Victoria discrimination and bullying. • supported Blind Sports and Recreation Victoria to Freedom of Information requests are made in Level 10, 535 Bourke Street These principles are documented in the Victorian undertake group bush walks for blind and vision- writing describing the documents requested and MELBOURNE VIC 3000 Government’s merit and equity standards and impaired visitors. Two group camps were also including the payment of the $28.90 application embodied in the Public Administration Act 2004. held at Wilsons Promontory National Park and fee. Application forms and information about how Additional information included to make a request can be found on Parks Victoria’s Parks Victoria communicates and adheres to the Cape Conran Coastal Park in annual report principles set out in the Act. website at www.parks.vic.gov.au. Requests should • designed an accessible gate with a Master be sent to the Freedom of Information Officer, Details in respect of the following items have been As an employer, Parks Victoria ensures that: Locksmith Access Key locking system for those Parks Victoria, Level 10, 535 Bourke Street, included in Parks Victoria’s annual report, on the walking paths that have entrance barriers • decisions are based on merit Melbourne 3000. pages indicated below: installed to prevent bicycle access. • staff are treated fairly and reasonably • assessments and measures undertaken to improve the occupational health and safety • equal employment opportunity is provided Statement of availability Factors affecting of employees (on page 33) • there are reasonable avenues of redress against of other information performance • a list of Parks Victoria’s major committees, the unfair or unreasonable treatment. purposes of each committee, and the extent There were no significant changes or factors Additional information available to which the purposes have been achieved (on page 45) Compliance with the affecting performance. All significant variances on request (>5%) in performance have been explained In compliance with the requirements of the Standing Disability Act 2006 throughout this report. Information that is not applicable Directions of the Minister for Finance, details to Parks Victoria The Disability Act 2006 requires all Victorian in respect of the items listed below have been The following information is not relevant to Parks public-sector bodies including Parks Victoria, retained by Parks Victoria and are available in full on Freedom of information Victoria for the reasons set out below: to prepare a disability action plan and report on request, subject to the provisions of the Freedom of Information Act 1982: its implementation in their annual report. Parks The Freedom of Information Act 1982 allows the • details of shares held by a senior officer as Victoria’s Disability Action Plan 2017–2020 is a public the right of access to information contained • a statement of completion of declarations of nominee, or held beneficially in a statutory three-year plan that enables visitors with a disability, in documents held by Parks Victoria. In the reporting interests by relevant officers authority or subsidiary (note: Parks Victoria does their families and carers to obtain the health and period, Parks Victoria received 40 requests for not issue shares nor does it hold shares in any • details of publications produced by Parks Victoria wellbeing benefits from park visitation. During documents and information under the Act. joint venture or subsidiary). about itself, and how these can be obtained 2017–18 Parks Victoria: • details of any major external reviews carried out on Parks Victoria

51 Compliance and Disclosures Parks Victoria Annual Report 2017–18 52 Protected disclosures Building Act 1993 Workforce profile as at 21 June 2018 On 21 June 2018, Parks Victoria employed 938.2 full time equivalent (FTE) ongoing staff, compared with The Protected Disclosure Act 2012 enables people to Parks Victoria is currently undertaking priority 909.7 FTE ongoing staff at the end of financial year in 2017. The proportion of women was 35 per cent, make disclosures about improper conduct by public work to ensure compliance with the building and which is consistent with the figures reported in the Parks Victoria Annual Report 2016–17. Employees have officers and public bodies. The Act aims to ensure maintenance provisions of the Building Act 1993. been correctly classified in workforce data collections. Grading classifications are listed in the Parks Victoria openness and accountability by encouraging people Enterprise Agreement 2016. This work includes: to make disclosures and protecting them when Fixed term they do. A protected disclosure is a complaint of • an audit of all buildings to develop an accurate Ongoing employees and casual corrupt or improper conduct by a public officer or a building register containing individual asset public body. Parks Victoria is a ‘public body’ for the information Full time & Number WorkCover Part time purposes of the Act. Improper or corrupt conduct • confirming the Essential Safety Measures (headcount) (headcount) (headcount) FTE FTE involves substantial: Prescribed Maintenance Schedules for all June 2018 996 879 117 938.2 225.1 buildings • mismanagement of public resources June 2017 968 855 113 909.7 151 • risk to public health or safety or the environment • an audit against all Essential Safety Measures or prescribed maintenance schedules for the June 2018 June 2017 preceding 12 months. • corruption. Fixed term Fixed term Work is scheduled to be completed by December 2018. The conduct must be criminal in nature or a matter Ongoing & Workcover and casual Ongoing & Workcover and casual for which an officer could be dismissed. Number Number (headcount) FTE FTE (headcount) FTE FTE A person can make a protected disclosure about Gender 996 938.2 225.1 968 909.7 151 Parks Victoria or its Board Members, officers or employees by contacting the Independent Broad- Male 649 640.2 121.5 630 620.8 77 Based Anti-corruption Commission (IBAC) on the Female 347 298.0 103.6 338 288.9 74 contact details provided below. Age 996 938.2 225.1 968 909.7 151 Please note that Parks Victoria is not able to receive Under 25 12 12 20 6 6 5 protected disclosures. 25–34 148 142.5 84.9 126 121.4 48.8 Parks Victoria has established procedures for the 35–44 274 250.6 55.1 288 262.5 48.1 protection of persons from detrimental action in 45–54 272 259.0 39.8 262 250.3 26.2 reprisal for making a protected disclosure about Parks Victoria or its employees. 55–64 241 230.5 23.3 249 236.7 19.9 Information about Parks Victoria’s procedures is on its Over 64 49 43.6 2.0 37 32.8 3 website at www.parks.vic.gov.au. Classification 996 938.2 225.1 968 909.7 151 For further information, contact the Chief Legal Grade 01 2 0.8 7.6 2 0.8 7.6 Counsel, Parks Victoria, Level 10, 535 Bourke Street, Grade 2.1 93 86.8 103.5 76 71 58.4 Melbourne 3000. Grade 2.2 108 98.9 11.0 104 95.1 4.3 Alternatively contact the Independent Broad-Based Grade 2.3 134 125.4 4.0 135 125.6 1 Anti-Corruption Commission (IBAC) Victoria, Level 1, Grade 03 127 119.7 16.0 124 117.5 8.2 North Tower, 459 Collins Street, Melbourne Victoria 3000 or via www.ibac.vic.gov.au Grade 04 160 152.3 16.0 158 149.6 14.8 Grade 05 108 98.3 17.8 105 96.4 11.6 Grade 06 113 107.7 13.7 114 107 11 Grade 07 99 96.3 4.8 94 91.1 8 Grade 08 52 52 3.0 56 55.6 3.2 Executives 0 0 27.7 0 0 22.9

53 Compliance and Disclosures Parks Victoria Annual Report 2017–18 54 Executive officers Major projects Reporting of office based There were total of 28 Parks Victoria executive officers at 21 June 2018. All were classified as ‘Fixed Term’. All executive officers are employed with remuneration over $100,000. environmental impacts Portarlington Safe Harbour Implementation Parks Victoria’s intention is to progressively improve Original completion date 15 November 2017 06 June 2018 30 June 2017 the scope and accuracy of our environmental reporting as part of our ongoing commitment to Fixed Term 2018 Total Fixed Term 2017 Total Latest approved completion date 30 November 2017 environmental sustainability improvements. Executive E01 1 1 1 1 Practical completion date 17 November 2017 Environmental improvements throughout the Executive E02 6 6 6 6 Reason for variance in completion Not applicable year include: Executive E03 21 21 16 16 dates • 10kW solar panel arrays at Gabo Island and Grand Total 28 28 23 23 Original approved Total Estimated $13,142,358 Mount Buffalo National Park investment (TEI) budget • 4kW solar panel array at Hattah-Kulkyne National Latest approved TEI budget $13,142,358 Park Visitor Centre Victorian Industry Competitive Neutrality Actual TEI cost $13,142,358 • LED lighting installed at Port Arlington Pier and Mornington Pier Participation Policy (VIPP) Policy Variation between actual cost and Nil latest approved TEI budget • recycled plastic wharf fenders fitted at Federation Wharf Departments and public bodies are required to Competitive neutrality requires government Reason for variance from latest Not applicable comply with the Victorian Industry Participation Policy businesses to ensure where services compete, or approved TEI Budget • composite recycled plastic fishing platform Act 2003, which applies to all tenders over $3 million potentially compete with the private sector, any installed at Patterson River. in metropolitan Melbourne and $1 million in regional advantage arising solely from their government Victoria. ownership be removed if it is not in the public Energy, water and sustainability data is only produced interest. Government businesses are required to and reported on a calendar year basis, therefore In 2017–18 Parks Victoria was fully compliant with cost and price these services as if they were privately Government advertising the data below is as at the end of December 2017. this policy. During the financial year ending 30 June owned. Competitive neutrality policy supports fair The data below is reported on a calendar year basis 2018, Parks Victoria undertook one project with VIPP expenditure competition between public and private businesses to help avoid the impact of ‘data lag’, which is the application, valued at $4.6 million in metropolitan and provides government businesses with a tool Parks Victoria did not undertake any advertising difference between the time of consumption and the Melbourne. The project was not completed in to enhance decisions on resource allocation. This campaigns with a total media buy of $100,000 time of bill issue and payment. the 2017–18 financial year due to the contractor policy does not override other policy objectives or greater (exclusive of GST) during 2017–18. entering into administration. of government and focuses on efficiency in the The remaining $1.6 million works will be delivered provision of service. in 2018–19, however they fall below the VIPP Parks Victoria continues to implement and apply threshold, therefore the new contractor will not Environmental Impacts competitive neutrality in its business undertakings. be subject to VIPP requirements. The Department It ensures fair competition between government Item 2014 2015 2016 2017 of Economic Development Jobs, Transport and and private sector businesses and removes any Resources was notified and confirmed the above Purchased Electricity (MW) 3,982 3,661 3,297 4035 advantages or disadvantages that government approach. businesses may experience as a result of government Purchased (town) Water (ML) 198 254 177 258 ownership. Greenhouse Gas Emissions (Tonnes CO2-e) 9,617 9,323 8,133 8669

Notes: Major contracts • Victorian rainfall in 2017 was slightly below average overall. Most months were drier than average. 2017 was Victoria’s sixth warmest year on record, with both mean maximum and minimum temperatures above average in all districts. These climatic conditions are thought to have contributed to an increase in water consumption when compared with the previous year, which Parks Victoria entered into no contracts greater than was the wettest since 2011. $10 million in 2017–18. • During 2017, rainfall in Victoria was six per cent below average. Overall, Victoria had the driest June on record. • Electricity consumption figures for 2015 and 2016 have been adjusted to accommodate improvements in the data provided by Parks Victoria’s electricity supplier. • The greenhouse gas emissions factor for Victoria fell from 1.25 Kg CO2-e/kWh to 1.18 Kg in 2017.

55 Compliance and Disclosures Parks Victoria Annual Report 2017–18 56 Information and Consultancy expenditure communication technology (ICT) expenditure Details of consultancies under $10,000 In 2017–18, Parks Victoria engaged 10 consultancies where the fees payable were less than $10,000. The total Parks Victoria had a total ICT expenditure of $18 cost of these consultancies was $47,669.21. Details of individual consultancies can be viewed below. million in 2017–18, consisting of the following: Expenditure Consultancy Purpose of consultancy 2017–18 Business As Usual (BAU) ICT Expenditure Andrew James Howard Engagement report – Albert Park Master Plan 7,200.00 $13.33 million Australian Continuous Improvement Review of the research permit application process 4,500.00 Group Pty Ltd Non-Business As Usual (non-BAU) ICT Bunurong Land Council Aboriginal Expenditure (Total = Operational expenditure Tidal River advice 1,000.00 Corporation & Capital Expenditure) Bunurong Land Council Aboriginal Point Nepean advice 800.00 $4.67 million Corporation Operational Expenditure Car Park Safety Audits Pty Ltd Wilsons Prom Tidal River traffic assessment 4,497.50 $1.53 million Clayton Utz Working With Children Check Advice 6,580.80

Capital Expenditure Colac Otway Shire Environment action plan Lake Colac 681.82 Conservation Ecology Centre Pty Ltd $3.14 million Otway Ark associated research 8,500.00 ATF Conservation Ecology Trust Currie Communications Pty Ltd Currie Communications review and framework development 4,500.00 Notes: RMCG Dja Dja Wurrung Ranger Review 2014-2017 9,409.09 • ICT Expenditure refers to Parks Victoria’s costs in providing business-enabling ICT services. It comprises Business As Usual TOTAL 10 consultancies 47,669.21 (BAU) ICT expenditure and non-Business As Usual (Non-BAU) ICT expenditure. • Non-BAU ICT expenditure relates to extending or enhancing Parks Victoria’s current ICT capabilities. Details of consultancies over $10,000 • BAU ICT expenditure is all remaining ICT expenditure that In 2017–18, Parks Victoria engaged 10 consultancies where the fees payable were $10,000 or greater. The primarily relates to ongoing activities to operate and maintain the current ICT capability. total cost of these consultancies was $361,516.00. Details of individual consultancies can be viewed below. Expenditure Consultancy Purpose of consultancy 2017–18 Aalto Pty Ltd Visitor Experience Review 36,220.00 Andrew James Howard River Red Gums consultation report 11,000.00 At Leisure Planners Pty Ltd Sport and Rec Investment on PV Managed Land – PV funded 48,189.36 component and total contract variation amount Deloitte Access Economics Pty Ltd 2018-19 State Budget Business Case 85,075.00 Earthcheck Pty Ltd The delivery of professional services investigating the 24,250.00 development of potential Pop Up experiences Holding Redlich Lawyers Advice regarding O'Shannassy Lodge lease 10,000.00 Pario Solutions Group Pty Ltd Consulting services for Director Statewide & Infrastructure 20,652.45 Services for BIS Activation Project Publicis Stakeholder Planning and Engagement Brand campaign 89,677.94 World Trail Pty Ltd World Trail consulting services Ararat Hill new line 13,420.00

TOTAL 9 consultancies 338,484.75

57 Compliance and Disclosures Parks Victoria Annual Report 2017–18 58 Financial Management Compliance Attestation Statement

59 Compliance and Disclosures Parks Victoria Annual Report 2017–18 60 Financial Report for the year Statutory Certificate ended 30 June 2018

Comprehensive Operating Statement 63 Balance Sheet 64 Statement of Changes in Equity 65 Cash Flow Statement 66 Notes to the Financial Statements 68

61 Financial Report Parks Victoria Annual Report 2017–18 62 Comprehensive Operating Statement Balance Sheet For the year ended 30 June 2018 As at 30 June 2018

2018 2017 2018 2017 Notes $’000 $’000 Notes $’000 $’000 Continuing operations Assets Income from transactions Financial assets Parks and Reserves Trust funding 2.2.1 101,114 97,512 Cash and deposits 6.1.1 30,872 34,586 Government funding 2.2.2 117,065 103,447 Receivables 5.1 14,835 12,135 Interest 2.2.3 3,194 2,928 Investments and other financial assets 4.3 125,000 100,000 Other income 2.2.4 40,940 34,351 Total financial assets 170,707 146,721 Total income from transactions 262,313 238,238 Non-financial assets Expenses from transactions Inventories 193 124 Employee benefits expenses 3.2.1 133,143 117,705 Property, plant and equipment 4.1 2,619,833 2,372,218 Depreciation and amortisation 4.1.2 13,341 13,156 Intangible assets 4.2 6,288 2,585 Operating expenses 3.2.5 45,789 40,624 Superannuation defined benefits asset 3.2.4(c) 740 179 Other operating expenses 3.2.6 56,903 59,569 Other non-financial assets 2,596 1,823 Total expenses from transactions 249,176 231,054 Total non-financial assets 2,629,650 2,376,929 Net result from transactions 13,137 7,184 Total assets 2,800,357 2,523,650 Net gain/(loss) on non-financial assets 8.2.1 – (715) Liabilities Net gain/(loss) on financial instruments 8.2.2 (40) 33 Trade and other payables 5.2 27,558 23,479 Other gains/(losses) from other economic flows 8.2.3 (1,037) (339) Provisions 3.2.2 40,711 37,240 Total other economic flows included in net result (1,077) (1,021) Total liabilities 68,269 60,719 Net result 12,060 6,163

Net assets 2,732,088 2,462,931 Other economic flows – other comprehensive income

Items that will not be reclassified to net result Equity Actuarial gain/(loss) recognised in a year 8.2.4 1,219 2,650 Accumulated surplus/(deficit) 126,734 113,453 Changes in physical asset revaluation surplus 8.3 207,050 224,145 Physical asset revaluation surplus 8.3 1,891,512 1,684,462 Total other economic flows – other comprehensive income 208,269 226,795 Contributed capital 8.4 713,842 665,016 Comprehensive result 220,329 232,958 Total equity 2,732,088 2,462,931

The above Comprehensive Operating Statement should be read in conjunction with the accompanying notes. The above Balance Sheet should be read in conjunction with the accompanying notes.

63 Financial Report Parks Victoria Annual Report 2017–18 64 Statement of Changes in Equity Cash Flow Statement For the year ended 30 June 2018 For the year ended 30 June 2018

Physical Asset Accumulated 2018 2017 Revaluation Surplus / Contributed Notes $’000 $’000 Surplus (Deficit) Capital Total Notes $’000 $’000 $’000 $’000 Cash Flows from operating activities Balance at 1 July 2016 1,460,317 104,640 649,441 2,214,398 Receipts Other comprehensive income 224,145 2,650 – 226,795 Receipts from Parks and Reserves Trust 101,614 97,512 Net result – 6,163 – 6,163 Receipts from government for operations 129,252 108,358 Net contribution by owner 8.4 – – 15,575 15,575 Receipts from government for Base Funding Review 6,419 6,419 Balance at 30 June 2017 1,684,462 113,453 665,016 2,462,931 Receipts from customers/other sources 34,527 36,092 Receipts from Australian Taxation Office (ATO) relating to Goods and 9,931 10,973 Services Tax (GST) Balance at 1 July 2017 1,684,462 113,453 665,016 2,462,931 Interest received 3,184 2,602 Other comprehensive income 207,050 1,219 – 208,269 Total receipts 284,927 261,956 Net result – 12,060 – 12,060 Net contribution by owner 8.4 – – 48,826 48,826 Payments Balance at 30 June 2018 1,891,512 126,734 713,842 2,732,088 Payments to government for revenue collected from national parks (12,037) (11,207) Payments to suppliers and employees (243,411) (229,467) The Statement of Changes in Equity should be read in conjunction with the accompanying notes. Total payments (255,448) (240,674) Net cash inflow from operating activities 6.1.2 29,479 21,282

Cash Flows from investing activities Payments for property, plant and equipment (26,999) (26,324) Payments for other assets (investment with Treasury Corporation of Victoria) (25,000) (5,000) Proceeds from sale of property, plant and equipment 7 76 Net cash (outflow) from investing activities (51,992) (31,248)

Cash flows from financing activities Receipts from government – contributed capital 18,799 28,682 Repayment to government – Greener government buildings program – (360) Net cash inflow from financing activities 18,799 28,322 Net (decrease) increase in cash and cash equivalents (3,714) 18,356

Cash and cash equivalents at the beginning of the financial year 34,586 16,230 Cash and cash equivalents at end of year 6.1.1 30,872 34,586

Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the ATO, is classified as operating cash flows and disclosed therein. The above Cash Flow Statement should be read in conjunction with the accompanying notes.

65 Financial Report Parks Victoria Annual Report 2017–18 66 Contents of the notes to the financial statements Notes to the financial statements For the year ended 30 June 2018

1 About this report

1.1 Background

1 About this report 68 5 Other assets and liabilities 93 1.1.1 Reporting entity 1.1 Background 68 5.1 Receivables 93 1.2 Summary of significant 68 5.2 Payables 94 Parks Victoria is a not-for-profit individual reporting entity. Parks Victoria was established as a public accounting policies authority on 3 July 1998 under the Parks Victoria Act 1998. The Parks Victoria Act 1998 was given 6 Financing our operations 95 Royal Assent on 26 May 1998 and was proclaimed on 3 July 1998. 2 Funding delivery of our services 70 6.1 Cash flow information 95 The principal address is: 2.1 Summary of income that funds 71 and balances the delivery of our services Level 10/535 Bourke Street, Melbourne, VIC 3000 6.1.1 Cash and deposits 95 2.2 Income from transactions 71 6.2 Commitments for expenditure 96 1.1.2 Objective and funding 2.2.1 Parks and Reserves Trust funding 71 6.2.1 Capital commitments 96 The objective of Parks Victoria is to provide an outstanding parks and waterway system, protected 2.2.2 Government funding 71 6.2.2 Lease commitments 96 and enhanced, for people, forever. 2.2.3 Interest 72 Parks Victoria is primarily funded by the Victorian Government. The Government draws on funds 2.2.4 Other income 72 7 Risks, contingencies and 97 valuation judgements from the Parks and Reserves Trust (Trust) to fund Parks Victoria’s operations in metropolitan parks and waterways. The Trust is funded by a parks charge levied on properties within the Melbourne 3 The cost of delivering services 73 7.1 Financial instruments 97 metropolitan area. specific disclosures 3.1 Summary of expenses incurred 73 in delivery of services 7.2 Contingent liabilities and 100 These general purpose financial statements have been prepared in accordance with the Financial contingent assets Management Act 1994 and applicable Australian Accounting Standards, including Interpretations 3.2 Expenses incurred in delivery 73 (AASs). AASs include Australian equivalents to International Financial Reporting Standards. of services 8 Other disclosures 101 3.2.1 Employee benefits in the 73 8.1 Ex-gratia payments 101 comprehensive operating statement 8.2 Other economic flows included 101 1.2 Summary of significant accounting policies 3.2.2 Employee benefits in the 74 in net result balance sheet 8.3 Physical asset revaluation surplus 102 3.2.3 Superannuation 76 8.4 Contributed capital 102 1.2.1 General 3.2.4 Defined superannuation benefit 77 8.5 Responsible persons and 102 Statement of compliance 3.2.5 Operating expenses 79 executive officer disclosures The financial statements as at 30 June 2018 comply with the relevant Financial Reporting Directions 8.6 Auditor’s remuneration 105 3.2.6 Other operating expenses 80 (FRDs) issued by the Department of Treasury and Finance and relevant Standing Directions (SD) 8.7 Volunteer resources provided 105 authorised by the Minister for Finance. The financial statements are prepared in accordance with 4 Key assets available to support 81 free of charge the Financial Management Act (FMA) and applicable Australian Accounting Standards (AASs) which output delivery 8.8 Interest in other entities 106 include Interpretations, issued by the Australian Accounting Standards Board (AASB). 4.1 Property, plant and equipment 81 8.9 Post balance date events 106 Under Australian Accounting Standards, there are requirements that apply specifically to not-for- 4.1.2 Depreciation and amortisation 85 8.10 New accounting standards and 106 profit entities. Parks Victoria has analysed its purpose, objectives, and operating philosophy and 4.2 Intangible assets 91 interpretations determined that it does not have profit generation as a prime objective. Where applicable, the AASs that relate to not-for-profit entities have been applied. 4.3 Other financial assets 92 The financial statements were authorised for issue by the Board of Parks Victoria on 21 August 2018. 4.4 Committed funds 92

67 Financial Report Parks Victoria Annual Report 2017–18 68 Notes to the financial statements Notes to the financial statements For the year ended 30 June 2018 For the year ended 30 June 2018

1.2.2 Basis of accounting preparation and measurement Balance sheet

These financial statements are in Australian dollars and the historical cost convention is used unless Assets and liabilities are presented in liquidity order with assets aggregated into financial assets and a different measurement basis is specifically disclosed in the note. non-financial assets. The accrual basis of accounting has been applied in the preparation of these financial statements Current and non-current assets and liabilities are disclosed in the notes, where relevant. In general, whereby assets, liabilities, equity, income and expenses are recognised in the reporting period non-current assets or liabilities are expected to be recovered or settled more than 12 months after to which they relate, regardless of when cash is received or paid. Amounts disclosed as income, the reporting period, except for the provisions of employee benefits, which are classified as current expenses, assets and liabilities are, where applicable, net of returns, allowances and duties and taxes. liabilities if the entity does not have the unconditional right to defer the settlement of the liabilities within 12 months after the end of the reporting period. Revenues, expenses, assets and liabilities are recognised net of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In these circumstances, the GST Statement of changes in equity is recognised as part of the cost of acquisition of the asset or as part of an item of expense. The statement of changes in equity presents reconciliations of non owner and owner changes in Receivables and payables are stated inclusive of GST. The net amount of GST recoverable from, or equity from opening balances at the beginning of the reporting period to the closing balances at payable to, the ATO is included as part of receivables or payables. the end of the reporting period. It also shows separately changes due to amounts recognised in the ‘Comprehensive result’ and amounts related to ‘Transactions with owner in its capacity as owner’.

1.2 Summary of significant accounting policies Cash flow statement

Amounts in the financial statements have been rounded to the nearest thousand dollars, unless Cash flows are classified according to whether or not they arise from operating activities, investing otherwise stated. Figures in the financial statements may not equate due to rounding. activities or financing activities. This classification is consistent with requirements under AASB 107 Statement of cash flows. In the application of AASs, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on professional judgements derived from historical experience and various other factors that are believed to be reasonable under the circumstances. 2 Funding delivery of our services Actual results may differ from these estimates. Introduction The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that Parks Victoria was established under the Parks Victoria Act 1998. Its functions are to manage parks, period, or in the period of the revision and future periods if the revision affects both current and reserves and other land under control of the state and waterways for the purposes of conservation, future periods. recreation, leisure, tourism or water transport. The network of parks it manages includes state Judgements, estimates and assumptions are required to be made about financial information being and metropolitan parks, national parks, marine parks and sanctuaries, wilderness areas, Aboriginal presented. The significant judgements made in the preparation of these financial statements are cultural places, post European heritage sites and around 70 per cent of Victoria’s coast line. disclosed in the relevant notes. To perform its functions Parks Victoria receives grants from the Department of Environment, Land, Historical cost is based on the fair values of the consideration given at the time in exchange for Water and Planning (DELWP) through parliamentary appropriations. It also receives income by assets. providing camping and roofed accommodation and leasing properties within the areas it manages. Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported. The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2018 and the comparative information presented for the year ended 30 June 2017.

1.2.3 Scope and presentation of financial statements

Comprehensive operating statement The comprehensive operating statement comprises three components, being ‘net result from transactions’, ‘other economic flows included in net result’, as well as ‘other economic flows - other comprehensive income’. The sum of the former two, represents the net result. The net result is equivalent to profit or loss derived in accordance with AASs. This classification is consistent with the whole of government reporting format and is allowed under AASB 101 Presentation of Financial Statements.

69 Financial Report Parks Victoria Annual Report 2017–18 70 Notes to the financial statements Notes to the financial statements For the year ended 30 June 2018 For the year ended 30 June 2018

2018 2017 2018 2017 Notes $’000 $’000 $’000 $’000 2.1 Summary of income that funds the 2.2 Income from transactions (continued) delivery of our services Income from transactions 2.2.3 Interest Parks and Reserves Trust funding 2.2.1 101,114 97,512 Interest from financial assets categorised as cash and deposits and other financial assets: Government funding 2.2.2 117,065 103,447 Interest on bank deposits and other financial assets 3,194 2,928 Interest 2.2.3 3,194 2,928 Total interest 3,194 2,928 Other income 2.2.4 40,940 34,351 Total income from transactions 262,313 238,238 Interest income includes interest received or receivable on bank term deposits and other investments. Interest income is recognised on a time proportionate basis that takes into account the effective yield on the financial asset. 2.2 Income from transactions 2.2.1 Parks and Reserves Trust funding 2.2.4 Other income Funding from Parks and Reserves Trust 91,114 87,512 Accommodation / camping fees 9,985 9,240 Additional funding from Parks and Reserves Trust 10,000 10,000 Funding sponsored by external parties 643 420 Total Parks and Reserves Trust funding 101,114 97,512 Rent, leases and licences 7,620 7,690 External sales 4,110 3,650 Parks and Reserves Trust (PRT) is funded by parks charge. The charge has been included on the water, sewerage and drainage bills of residential and commercial properties since 1958 and Berthing / mooring fees 496 463 collected on behalf of Department of Environment, Land, Water and Planning which distributes it Cave tour fees 1,171 1,221 to Parks Victoria and other entities for the management and maintenance of metropolitan parks, gardens, trails and waterways. PRT income is recognised when invoiced by Parks Victoria. Fire suppression costs, recovered from DELWP (note 3.2.1) 10,932 6,311 Fair value of assets received free of charge 590 292 2.2.2 Government funding Insurance claims 877 148 Other 4,516 4,916 National / state parks and reserves funding 51,329 58,666 Total other income 40,940 34,351 Parks Victoria Base Review Funding 6,419 6,419 Government grants for special projects 9,342 13,761 Accommodation / camping fees revenue is generated from various parks across the state for both roofed accommodation and camping, the major one being Wilsons Promontory National Program Initiatives (including tracks and trails and Good Neighbour programs) 707 652 Park, and is recognised as revenue when the accommodation is provided. Project fire fighter funding 8,059 7,476 Rent, leases and licence revenue represents income that arise from leasing of properties and Major works funding provided by the Department of Environment, Land, Water and Planning 23,208 7,295 licences issued to conduct various activities within the areas managed by Parks Victoria. The (DELWP) revenue is recognised when it is earned. External sales are mainly income generated from the commercial operations of stores located Major works funding provided by the Department of Economic Development, Jobs, Transport 18,001 9,178 at various parks, and recognised as revenue at the point of sale. and Resources (DEDJTR) Fire suppression costs recovered from DELWP is the income for the reimbursement of Total government funding 117,065 103,447 labour costs incurred relating to fire fighting activities, and recognised as revenue when invoiced or earned whichever occurs earlier. Government funding comes in the form of grants. Grant income arises from transactions in Other income is various revenue generated throughout the year and is recognised when earned. which a party provides goods or assets (or extinguishes a liability) to another party without receiving approximately equal value in return. While grants may result in the provision of some goods or services to the other party, they do not provide a claim to receive benefits directly of approximately equal value and are termed ‘non-reciprocal’ transfers. Receipt and sacrifice of approximately equal value may occur, but only by coincidence. Non-reciprocal grants are recognised as income when control over the grant is obtained. Grants can be received as general purpose grants, which refers to grants which are not subject to conditions regarding their use. Alternatively, they may be received as specific purpose grants, which are paid for a particular purpose and/or have conditions attached regarding their use.

71 Financial Report Parks Victoria Annual Report 2017–18 72 Notes to the financial statements Notes to the financial statements For the year ended 30 June 2018 For the year ended 30 June 2018

3 The cost of delivering services 2018 2017 Non- Non- Introduction Current Current Total Current Current Total $’000 $’000 $’000 $’000 $’000 $’000 This section provides an account of expenses incurred by Parks Victoria in performing its functions. This 3.2 Expenses incurred in delivery includes the payment of remuneration to its workforce and other associated costs to perform its operations of services (continued) and deliver services. 3.2.2 Employee benefits in the balance sheet 2018 2017 Notes $’000 $’000 Employee benefits 3.1 Summary of expenses incurred Annual Leave expected to be taken within the next 12 months 6,094 – 6,094 5,295 – 5,295 in delivery of services Annual Leave expected to be taken after the next 12 months 2,881 – 2,881 1,551 – 1,551 Long service leave – unconditional and expected to be taken Expenses incurred in delivery of services 2,236 – 2,236 2,288 – 2,288 within 12 months Employee benefits expenses 3.2.1 133,143 117,705 Long service leave – unconditional and expected to be taken 21,384 – 21,384 20,497 – 20,497 Operating expenses 3.2.5 45,789 40,624 after 12 months Other operating expenses 3.2.6 56,903 59,569 Long service leave – conditional – 1,960 1,960 – 1,919 1,919 Total expenses incurred in delivery of services 235,835 217,898 Total employee benefits 32,595 1,960 34,555 29,631 1,919 31,550

Employee benefits on-costs 3.2 Expenses incurred in delivery of services Annual Leave entitlements 1,453 – 1,453 1,147 – 1,147 3.2.1 Employee benefits in the comprehensive Long service leave – unconditional and expected to be taken 411 – 411 421 – 421 operating statement within 12 months Long service leave – unconditional and expected to be taken Salaries, wages, annual leave and long service leave 101,630 91,140 3,932 – 3,932 3,769 – 3,769 after 12 months Termination benefits 324 676 Long service leave – conditional – 360 360 – 353 353 Fire suppression costs (note 2.2.4)* 10,932 6,311 Total employee related on-costs 5,796 360 6,156 5,337 353 5,690 Superannuation – defined and accumulation plans 12,557 12,427 Total employee benefits and related on-costs 38,391 2,320 40,711 34,968 2,272 37,240 Payroll Tax 5,136 5,039 Fringe Benefits Tax 417 435 Other on-costs 2,147 1,677 Total employee benefits 133,143 117,705

* Fire suppression costs are expenses for Parks Victoria’s salaries & wages incurred relating to fire fighting activities, and recognised as expenses when incurred and are fully recovered from DELWP. Employee Benefits: Employee benefits expenses include all costs related to employment including wages and salaries, fringe benefits tax, leave entitlements, termination payments and workcover premiums. The amount recognised in the comprehensive operating statement in relation to superannuation is employer contributions and salary sacrifice made by employees for both defined benefit and accumulation plans that are paid or payable during the reporting period. Liabilities for wages and salaries that are expected to be settled wholly within 12 months of the reporting date are measured at their nominal amounts in respect of employees’ services up to the reporting date. The nominal basis of measurement uses employee remuneration rates that the entity expects to pay as at each reporting date and does not discount cash flows to their present value. Non-vesting sick leave is not expected to exceed current and future sick leave entitlements, and accordingly, no liability has been recognised.

73 Financial Report Parks Victoria Annual Report 2017–18 74 Notes to the financial statements Notes to the financial statements For the year ended 30 June 2018 For the year ended 30 June 2018

2018 2017 2018 2017 $’000 $’000 $’000 $’000 3.2 Expenses incurred in delivery of services 3.2 Expenses incurred in delivery of services (continued) (continued) Reconciliation of movements in on-cost provisions 3.2.3 Superannuation Opening balance 5,690 5,764 Parks Victoria contributes, in respect of its employees (including salary sacrifice), to superannuation schemes detailed as below: Additional provisions recognised 2,539 2,359 Scheme Reductions arising from payments/other sacrifices of future economic benefits (1,926) (2,302) Defined benefit plans: Unwind of discount and effect of changes in the discount rate (147) (131) Closing balance 6,156 5,690 Vision Super 1,202 1,323 Other 1,790 1,992 Current 5,796 5,337 Non-current 360 353 Accumulation plans: Closing balance 6,156 5,690 Vision Super 3,677 3,549 Vic Super 2,338 2,245 Annual leave and long service leave entitlements expected to be settled wholly within 12 months of the reporting date are recognised as a provision for employee benefits in the balance sheet at their nominal values. Other 3,550 3,318 Annual leave and long service leave entitlements not expected to be settled within 12 months of the reporting date are recognised Total contributions to all funds 12,557 12,427 at the present value of the estimated future cash outflows to be made by Parks Victoria in respect of services provided by employees up to reporting date. Consideration is given to expected future employee remuneration rates, employment related Accumulation plans on-costs and other factors including experience of employee departures and periods of service. In the determination of the long service leave entitlement liabilities, Parks Victoria use the wage inflation and discount rates released by the Department of Treasury Contributions are made by Parks Victoria to employee superannuation funds and are charged as expenses when incurred. and Finance. Employees engaged from 1 January 1994 are entitled to benefits under accumulation funds. Employees have the opportunity to Employee benefit provisions are reported as current liabilities where Parks Victoria does not have an unconditional right to defer make personal contributions to the funds at a self-nominated rate or amount. The minimum employer contribution to the fund, settlement for at least 12 months. Consequently, the current portion of the employee benefit provision can include both short-term pursuant to the Superannuation Guarantee Charge was 9.5 per cent in 2018 (2017: 9.5 per cent). benefits (those benefits expected to be settled within 12 months of the reporting date), which are measured at nominal values, As at the reporting date, there were no outstanding contributions payable to the above funds, other than the possible obligations and long-term benefits (those benefits not expected to be settled within 12 months of the reporting date), which are measured as stated in note 7.2.2. There is also a separate provision made in regards to defined benefits plan (refer note 3.2.4(c)). at present values. Employee benefit provisions that are reported as non-current liabilities also include long-term benefits such as non-vested long Defined benefit plans service leave (i.e. where the employee does not have a present entitlement to the benefit) that do not qualify for recognition as a A liability or asset in respect of defined superannuation benefit plans is recognised in the Balance Sheet and is measured as the current liability, and are measured at present values. The non-current liability for long service leave represents entitlements accrued difference between the present value of employees accrued benefits at the end of the reporting period and the net market value for employees with less than 7 years of continuous service, where Parks Victoria has the right to defer the liability. On-costs such of the superannuation plan’s assets at that date. The present value of benefits as accrued benefits is based on expected future as payroll tax, superannuation and workers compensation are recognised separately from the provision for employee benefits. payments which arise from membership of the plans at the end of the reporting period. Consideration is given to expected future salary levels, resignation and retirement rates. Expected future payments are discounted using rates of Commonwealth Government bonds with terms to maturity that match, as closely as possible the estimated future cash outflows. The amount brought to account in the Comprehensive Operating Statement in respect of superannuation represents the contributions made to the superannuation plan, adjusted by the movement in the defined benefit plan liability or asset. All actuarial gains and losses are recognised in the Other Comprehensive Income (OCI) in the reporting period in which they occur. Parks Victoria only recognises the liability for Vision Super defined benefit plans. Parks Victoria does not recognise the defined benefit liability in respect of any other plans because the entity has no legal or constructive obligation to pay future benefits relating to its employees.

75 Financial Report Parks Victoria Annual Report 2017–18 76 Notes to the financial statements Notes to the financial statements For the year ended 30 June 2018 For the year ended 30 June 2018

3.2 Expenses incurred in delivery of services (continued) 3.2 Expenses incurred in delivery of services (continued) 3.2.4 Defined superannuation benefit Funding arrangements Parks Victoria makes employer contributions to the defined benefit category of the Fund at rates determined by the Trustee on the Parks Victoria makes employer superannuation contributions in respect of employees engaged up until the 31st December 1993 to advice of the fund’s actuary. Parks Victoria’s funding arrangements are comprised of three components as follows: the Vision Super superannuation fund (the Fund). This Fund has two categories of membership, accumulation and defined benefit, which are funded differently. The defined benefit section provides lump sum benefits based on years of service and final average salary. 1. Regular contributions These are ongoing contributions needed to fund the balance of benefits for current members and pensioners, at rates determined Obligations for contributions to the Fund are recognised in the Comprehensive Operating Statement when they are made or due. by the Fund’s trustee. For the year ended 30 June 2018, this rate was 12.0 per cent of member’s salaries. Employees contribute at rates between 0 to 7.5 per cent of their superannuation salary. Parks Victoria contributes to the Fund 2. Funding calls based on its commitments under the Employee Participation Agreement and Contribution Policy with the trustee These contributions are made in respect of any funding shortfalls that may arise. The Fund is required to comply with the of the fund. superannuation prudential standards. Under the Superannuation Prudential Standard SPS 160, the Fund is required to target full funding of its vested benefits. There may be circumstances where: 2018 2017 $’000 $’000 • a fund is in an unsatisfactory financial position at an actuarial investigation, this happens when its Vested Benefit Index (VBI) is less than 100 per cent at the date of the actuarial investigation; or 3.2.4 (a) Reconciliation of the present value of the defined • a fund’s VBI is below its shortfall limit which is set at 97 per cent. benefit obligation If either of the above occur the fund is required to put a plan in place so that the shortfall is fully funded within three years of the shortfall occurring. There may be circumstances where the Australian Prudential Regulation Authority (APRA) may approve a period Balance at the beginning of the year 33,860 34,796 longer than three years. Current service cost 785 959 The Fund monitors its VBI on a quarterly basis. Plan expenses 492 322 3. Retrenchment increments Interest cost 798 619 These are additional contributions to cover the increase in liability arising from retrenchments. Parks Victoria reimburses the Fund to cover the excess of the benefit paid as a consequences of retrenchment above the funded resignation or retirement benefit – Contributions by plan participants 348 301 calculated as the Vested Benefit Index (VBI) multiplied by the benefit. Actuarial (gain)/loss 449 (974) Parks Victoria is also required to make additional contributions to cover the contribution tax payable on the contributions referred to above. Employees are also required to make member contributions to the Fund. As such assets accumulate in the Fund to meet Benefits paid (1,435) (2,163) member benefits as defined in the trust deed, as they accrue. Present value of the defined benefit obligation at the end of the year 35,297 33,860

2018 2017 $’000 $’000 3.2.4 (b) Reconciliation of the fair value of plan assets 3.2.4 (d) Expense recognised in the comprehensive Balance at the beginning of the year 34,040 32,988 operating statement Return on plan assets 2,452 2,255 Service cost 1,132 1,261 Employer contributions 632 659 Member contribution (348) (301) Contributions by plan participants 348 301 Net interest cost 14 41 Benefits paid (1,435) (2,163) Plan expense 492 322 Fair value of plan assets at the end of the year 36,037 34,040 Total superannuation expense 1,290 1,323

3.2.4 (c) Reconciliation of the assets and liabilities 3.2.4 (e) Expense recognised in the other recognised in the balance sheet comprehensive income Present value of the defined benefit obligation 35,297 33,861 Actuarial (gain)/loss recognised in year (1,219) (2,650) Less: fair value of plan assets (36,037) (34,040) Total superannuation expense/(income) (Note 8.2.4) (1,219) (2,650) Net superannuation liability/(asset) (740) (179)

Parks Victoria has recognised a liability/(asset) in the balance sheet in respect of its defined 3.2.4 (f) Fair value of plan assets superannuation benefit arrangements at 30 June 2018. Where a surplus exists in the plan, Parks Victoria may be able to take advantage of it in the form of a reduction in the required The fair value of plan assets includes no amounts relating to: contribution rate, depending on the advice of the plan’s actuary. If a deficit exists in the plan, Parks Victoria may be required to increase the required contribution rate, depending on the a) any of Parks Victoria’s own financial instruments; advice of the plan’s actuary consistent with the plan’s deed. b) any property occupied by, or other assets used by, Parks Victoria.

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

77 Financial Report Parks Victoria Annual Report 2017–18 78 Notes to the financial statements Notes to the financial statements For the year ended 30 June 2018 For the year ended 30 June 2018

2018 2017 2018 2017 % p.a % p.a $’000 $’000 3.2 Expenses incurred in delivery of services 3.2 Expenses incurred in delivery of services (continued) (continued) 3.2.4 (h) Principal actuarial assumptions at the balance 3.2.6 Other operating expenses sheet date Materials 6,586 5,618 Discount rate (gross of tax) 2.29 2.39 Transport 6,196 7,856 Expected return on assets 4.50 6.50 Insurance premiums 9,491 9,946 Average salary increase rate 3.25 3.25 Payments for works sponsored by external parties 440 369 Fair value of assets provided free of charge 6 3,471 3.2.4 (i) Sensitivity – Impact on Defined Benefit Obligation Plant & equipment 3,636 3,889 as at balance sheet date Telecommuications 2,572 3,346 The following table shows the sensitivity of each significant actuarial assumption on the Defined IT software & hardware maintenance 5,078 5,992 Benefit Obligation as at 30 June 2018. It illustrates how the Defined Benefit Obligation would have been affected by changes in the assumptions that were reasonably possible at that date, IT equipment lease costs 1,530 1,940 by holding all other assumptions and data constant, but do not represent the best cases that Printing & signage charges 1,146 1,026 could occur. Training & education 1,398 1,460 2018 2017 Travel & accomodation 1,098 1,072 $’000 $’000 Utility expenses 2,728 2,633 Impact on Defined Benefit Obligation as at 30 June 2018 of: Property lease expenses 6,280 4,097 a) Increase in the Discount Rate of 1% p.a. (1,941) (2,116) Other external services 8,718 6,854 b) Decrease in the Discount Rate of 1% p.a. 2,175 2,399 Total other operating expenses 56,903 59,569 c) Increase in the Salary Increase Rate of 1% p.a. 1,861 2,344 d) Decrease in the Salary Increase Rate of 1% p.a. (1,739) (2,110) Other operating expenses generally represent the day-to-day running costs incurred in normal operations and are recognised in the reporting period in which they are incurred. It also includes other payments made and assets provided free of charge to third parties in line with Parks Victoria’s operational requirements. 3.2.5 Operating expenses Operational services 45,789 40,624 Total Operating expenses 45,789 40,624

Operational services are expenses incurred on delivering works on the ground across Victoria’s parks and waterways to maintain tracks, ports, manage pest and weeds, delivering biodiversity programs, protecting cultural heritage and preparing for fire, floods and other emergencies. All expenses are recognised in the reporting period in which they are incurred.

79 Financial Report Parks Victoria Annual Report 2017–18 80 Notes to the financial statements For the year ended 30 June 2018

4 Key assets available to support output delivery

Introduction

Parks Victoria controls Crown land and assets on that land, waterways and other investment that are utilised in fulfilling its functions. They represent the resources that have been entrusted to Parks Victoria to perform its functions and to deliver services.

4.1 Property, plant and equipment 4.1.1 Classification by public safety and environment – carrying amounts*

Crown land Buildings Plant, equipment, and land and building machinery and Piers, jetties and improvements improvements vehicles river improvements Antiques Works in progress Total 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Opening balance 2,117,805 1,900,787 85,948 96,832 392 467 128,070 130,093 4,597 4,643 35,406 12,336 2,372,218 2,145,158 Additions 30,427 118 1,167 164 238 43 13,357 3,222 – – 26,761 26,291 71,950 29,840 Disposals / Transfers (722) (205) (255) (3,807) (6) – – (174) – – – – (983) (4,186) Net revaluation increments/ decrements 211,302 224,145 – – – – – – – – – – 211,302 224,145 Depreciation expense (2,496) (2,520) (4,167) (4,551) (277) (118) (5,269) (5,071) (46) (46) – – (12,255) (12,306) Impairment loss – – (95) – – – (4,157) – – – – – (4,252) – Asset transfer in / out of assets under construction – – – – – – – – - – (18,147) (3,222) (18,147) (3,222) Other adjustments – – – – – – 1 – (1) – – 1 – – Machinery of government asset transfer out – (4,520) – (2,690) – – – – – – – – – (7,211) Closing balance 2,356,316 2,117,805 82,598 85,948 347 392 132,002 128,070 4,550 4,597 44,020 35,406 2,619,833 2,372,218

Impairment losses are included in the line item ‘impairment loss’. The impairment assessment indicated that a small number of assets have deteriorated faster than anticipated. As such, impairment losses were recognised for the period based on those assets’ recoverable amount. * Amounts in the financial statements have been rounded to the nearest thousand dollars. Therefore, the figures in the above table may not equate due to rounding.

81 Financial Report Parks Victoria Annual Report 2017–18 82 Notes to the financial statements Notes to the financial statements For the year ended 30 June 2018 For the year ended 30 June 2018

4.1 Property, plant and equipment (continued) 4.1 Property, plant and equipment (continued) 4.1.1 Classification by public safety and environment – carrying amounts (continued) 4.1.1 Classification by public safety and environment – carrying amounts (continued)

Initial recognition The fair value of the antiques and artworks was determined using the market approach, whereby the value of the Items of property, plant and equipment are measured initially at cost and subsequently valued at fair value, except Work antiques and artwork was determined by comparing similar examples of the items in existence or sold. An independent in Progress (WIP), less accumulated depreciation and impairment. Where an asset is acquired for no or nominal cost, the valuation of Parks Victoria’s antiques were performed by the Valuer-General Victoria to determine the fair value. The cost is its fair value at the date of acquisition. valuation was determined based on the market approach. The effective date of the valuation was 30 June 2016. Parks The cost of constructed property, plant and equipment includes the cost of all materials used in construction, direct labour Victoria conducted a fair value assessment at 30 June 2018 with no material movement identified since the 2016 on the project, and an appropriate proportion of variable and fixed overheads. Items with a cost or value of $5,000 valuation. The next scheduled full revaluation for this purpose group will be conducted in June 2021. (2017: $5,000) or more, and a useful life of more than one year are recognised as an asset, all other items are expensed. The fair value of infrastructure systems and plant, equipment and vehicles, is normally determined by reference to the asset’s current replacement cost. Plant and equipment are valued using the current replacement cost method. Impairment of property, plant and equipment Depreciation is calculated on a straight-line basis to systematically write-off the cost of each asset over its expected useful life to the entity. All non-financial assets are assessed annually for indications of impairment, except for Inventories, whenever there is an indication that the asset may be impaired. The assets concerned are tested as to whether their carrying value exceeds The Valuer-General provides guidance to asset valuers on the valuation rationale and appropriate level of “Community their recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written off Service Obligation” discounts of 70% and 90% were applied to the land and land under water respectively. as an ‘other economic flow’, except to the extent that it can be charged to an physical asset revaluation surplus amount applicable to that class of asset. Accounting treatment of revaluation If there is an indication that there has been a reversal in impairment, the carrying amount shall be increased to its Net revaluation increases are credited directly to equity in the physical asset revaluation surplus, except to the extent recoverable amount. However this reversal should not increase the asset’s carrying amount above what would have been that an increase reverses a net revaluation decrease in respect of that class of property, plant and equipment previously determined, net of depreciation or amortisation, if no impairment loss had been recognised in prior years. recognised as an expense (other economic flows) in the net result, the increase is recognised as income (other economic The recoverable amount for most assets is measured at the higher of current replacement cost and fair value less costs to sell. flows) in determining the net result. Net revaluation decreases are recognised immediately as expenses (other economic flows) in the net results, except to the Revaluations of property, plant and equipment extent that a credit balance exists in the physical asset revaluation surplus in respect of the same class of property, plant and equipment in which case they are debited to the physical asset revaluation surplus. Property, plant and equipment are measured at fair value in accordance with FRD 103F Non-Financial Physical Assets issued by the Minister for Finance. A full revaluation occurs every five years, based upon the asset’s Government Purpose Revaluation increases and decreases relating to individual assets within a class of property, plant and equipment are offset Classification, but may occur more frequently if fair value assessments indicate material changes in value. Revaluation against one another within that class but are not offset in respect of assets in different classes. increases or decreases arise from differences between an asset’s carrying value and fair value. To determine the fair value, an independent full revaluation of Parks Victoria’s land and land improvements was performed by the Valuer-General Victoria. The effective date of the last scheduled full valuation was 30 June 2016. The fair value of the Crown land is determined with regards to the property’s highest and best use after due consideration is made for any legal or constructive restrictions imposed on the asset, public announcements or commitments made in relation to the intended use of the asset. Unrestricted fair value was determined by using the market approach, whereby assets are compared to recent comparable sales or sales of comparable assets adjusted for the Community Service Obligation (CSO) to reflect the specialised nature of the land being valued. The CSO adjustment is a reflection of the valuer’s assessment of the impact of restrictions associated with an asset to the extent that is also equally applicable to market participants. An annual fair value assessment using the land indices provided by the Valuer-General Victoria, indicated a compound movement in the fair value to be material. In accordance with the requirements of FRD 103F Parks Victoria has performed a managerial revaluation of the land. The effective date of the managerial revaluation is 30 June 2018. The financial statements list the location and values of Crown land over which Parks Victoria is the committee of management in note 4.1.3. This Crown land remains the property of the State of Victoria. The next scheduled full revaluation for this purpose group will be conducted in June 2021. The fair value of buildings that Parks Victoria intends to preserve because of their unique historical, cultural or environmental attributes, is determined (except antiques) at current replacement cost of the asset to reflect the already consumed or expired future economic benefits of the asset and any accumulated impairment. An independent valuation of Parks Victoria’s buildings and improvements was performed by the Valuer-General Victoria to determine the fair value. The valuation was determined based on the current replacement cost of the assets. The effective date of the valuation was 30 June 2016. An annual fair value assessment using the building indices provided by the Valuer-General Victoria, indicated an immaterial movement in that assets class, so a managerial revaluation was not required to be performed. The next scheduled full revaluation for this purpose group will be conducted in June 2021. The fair value of piers, jetties and river improvements are valued using the current replacement cost method. This cost represents the replacement cost of the component after applying depreciation rates on a useful life basis. Replacement costs relate to costs to replace the current service capacity of the asset. Economic obsolescence has also been factored into the depreciated replacement cost calculation. An independent valuation of Parks Victoria’s piers, jetties and river improvements was performed by the Valuer-General Victoria to determine the fair value. The valuation was determined based on the current replacement cost of the assets. The effective date of the valuation was 30 June 2016. An annual fair value assessment using the building indices provided by the Valuer-General Victoria, indicated an immaterial movement in that assets class, so a managerial revaluation was not required to be performed. The next scheduled full revaluation for this purpose group will be conducted in June 2021.

83 Financial Report Parks Victoria Annual Report 2017–18 84 Notes to the financial statements Notes to the financial statements For the year ended 30 June 2018 For the year ended 30 June 2018

2018 2017 $’000 $’000 4.1 Property, plant and equipment (continued) 4.1 Property, plant and equipment (continued) 4.1.3 Crown land and land improvements at fair value, where Parks Victoria is a Committee of Management 4.1.2 Depreciation and amortisation 2018 2017 Depreciation 2018 2017 Land improvements 2,496 2,520 2018 Area $’000 2017 Area $’000 Crown land (Hectares) (Net book value) (Hectares) (Net book value) Buildings and building improvements 4,167 4,551 Location Piers, jetties and river improvements 5,269 5,071 Albert Park 210 1,135,384 210 1,032,168 Plant and equipment, machinery & vehicles 277 118 Bays assets (land under piers and jetties) 2,649 114,736 2,638 101,947 Antiques 46 46 Buchan Caves Reserve 2 54 2 53 Total depreciation 12,255 12,306 Coolart Historic Area 88 3,004 88 2,756 Dandenong Police Paddocks Reserve 495 245,266 495 211,436 Amortisation Dandenong Ranges Gardens 61 1,979 61 1,767 Intangibles 1,086 850 Dandenong Valley Parklands 7 4,598 7 4,218 Total amortisation 1,086 850 Daylesford Court House Complex Historic Reserve 1 1,209 1 1,008 Total depreciation and amortisation 13,341 13,156 Devilbend Natural Features Reserve 997 21,428 997 18,963 Depreciation is applied to completed fixed assets including buildings and building Eildon Water Reserve 533 1,696 533 1,600 improvements, piers, jetties and river improvements, land improvements and plant, equipment, Frankston Nature Conservation Reserve 91 19,018 – – machinery, and vehicles. Land is not depreciated. Happy Valley Crossing Streamside Reserve 16 65 16 59 Work in Progress is valued at cost and depreciation commences on completion of the works. Depreciation is calculated on a straight-line basis to systematically write off the cost or revalued Herring Island 3 13,041 3 11,340 amount (net of residual value) of each non-current asset over its expected useful life. Hopkins River, Framlingham Streamside Reserve 51 147 51 143 Depreciation rates are reviewed annually and, if necessary, adjusted to reflect the most recent Lighthouse Reserves 428 2,665 428 2,512 assessments of the useful lives and residual values of the respective assets. Lower Homebush Bushland Reserve 40 36 40 34 Where assets have separate identifiable components that have distinct useful lives and/or residual values, a separate depreciation rate is determined for each component. Maribyrnong Valley Parkland 22 9,842 22 8,202 The expected useful life of each asset category is as follows: Mt Dandenong Observatory 5 1,675 5 1,495 Olinda Golf Course 34 1,234 34 1,102

2018 2017 Peachtree Creek Reserve 34 109 34 107 Expected Life Expected Life Plenty Gorge Park 212 17,740 212 15,971 Asset category (Years) (Years) Point Cook Coastal Park 4 1,257 4 1,132 Buildings and building improvements 5 to 100 5 to 100 Point Gellibrand Heritage Park 17 20,943 17 18,211 Piers, jetties and river improvements 6 to 100 6 to 100 Port of Port Campbell 1 118 1 115 Land improvements 1 to 100 1 to 100 Princes Wharf 1 536 1 501 Plant and equipment, machinery & vehicles 1 to 10 1 to 10 Queenscliff Harbour Precinct Reserve 148 4,598 148 4,180 Antiques 100 100 Rosebud Depot 1 1,087 1 937 Sailors Falls 1 2 1 2 Amortisation is calculated on a straight-line basis to systematically write off the cost or revalued San Remo Depot 1 674 1 630 amount of each intangible asset over its expected useful life to the entity. Sandringham Mooring Area 10 8,562 10 7,526 Amortisation rates are reviewed annually and, if necessary, adjusted to reflect the most recent assessments of the useful lives and residual values of the respective assets. Serendip Sanctuary 227 1,657 227 1,392 The expected useful life of each Intangible assets category (computer software) is 10 years Vaughan Springs 95 542 95 502 (2017: 10 years). Wangaratta Depot 1 360 – – Werribee Park 164 8,356 164 7,528 Westgate Park 38 49,135 34 37,074 Williamstown Jawbone Reserve 146 41,566 146 36,145 Yarra Bend Park 268 425,734 268 394,199 Yarra Valley Parklands 125 134,107 125 126,525 You Yangs Regional Park 1,967 6,990 1,967 6,354 Total crown land at fair value 9,194 2,301,150 9,087 2,059,834

85 Financial Report Parks Victoria Annual Report 2017–18 86 Notes to the financial statements Notes to the financial statements For the year ended 30 June 2018 For the year ended 30 June 2018

4.1 Property, plant and equipment (continued) 4.1 Property, plant and equipment (continued) 4.1.3 Crown land and land improvements at fair value, where Parks Victoria 4.1.4 Fair value measurement hierarchy for assets (continued) is a Committee of Management (continued) Fair value measurement Carrying at end of reporting period using: 2018 2017 amounts as at $’000 $’000 30 June 2017 Level 1 Level 2 Level 3 Land improvements (Net book value) (Net book value) $’000 $’000 $’000 $’000 Total land improvements at fair value 55,166 57,972 Specialised land at fair value Total Crown land and land improvements 2,356,316 2,117,806 Crown land, land and land improvements 2,117,805 – – 2,117,805 Total of land at fair value 2,117,805 – – 2,117,805 Where any land has been permanently reserved under Crown Land (Reserves) Act 1978 for the purposes of a public park or garden or for the recreation convenience or amusement of the people, the government may appoint a committee of management to manage the land. Parks Victoria only recognises assets on land it controls as the committee of management. Specialised buildings at fair value Parks Victoria also manages other assets on behalf of the Crown under Management Services Agreements (MSAs). Assets managed under MSAs and any new assets constructed by Parks Victoria on behalf of the Crown in the areas managed under the MSAs are Buildings and building improvements 85,948 – – 85,948 recognised in the asset register of the Department of Environment, Land, Water and Planning (DELWP). Total of buildings at fair value 85,948 – – 85,948 The fair value of the Crown land is determined with regards to the property’s highest and best use after due consideration is made for any legal or constructive restrictions imposed on the asset, public announcements or commitments made in relation to the intended use of the asset adjusted for the Community Service Obligation (CSO) to reflect the specialised nature of the land being Plant, equipment, machinery and vehicles at fair value valued. CSOs of 70% and 90% were applied to the land and land under water respectively. Plant, equipment, machinery and vehicles 392 – – 392 Total of plant, equipment, machinery – – 4.1.4 Fair value measurement hierarchy for assets and vehicles at fair value 392 392

Fair value measurement Carrying at end of reporting period using: Infrastructure at fair value amounts as at 30 June 2018 Level 1 Level 2 Level 3 Piers, jetties 117,739 – – 117,739 $’000 $’000 $’000 $’000 Total of infrastructure at fair value 117,739 – – 117,739 Specialised land at fair value Crown land, land and land improvements 2,356,316 – – 2,356,316 Infrastructure at fair value Total of land at fair value 2,356,316 – – 2,356,316 River improvements 10,331 – – 10,331 Total of infrastructure at fair value 10,331 – – 10,331 Specialised buildings at fair value Buildings and building improvements 82,598 – – 82,598 Antique assets at fair value Total of buildings at fair value 82,598 – – 82,598 Antiques and artworks 4,597 – 4,597 – Total of cultural assets at fair value 4,597 – 4,597 – Plant, equipment, machinery and vehicles at fair value Grand total 2,336,812 – 4,597 2,332,215 Plant, equipment, machinery and vehicles 347 – – 347 Total of plant, equipment, machinery Consistent with AASB 13 Fair Value Measurement, Parks Victoria determines the policies and procedures for fair value – – and vehicles at fair value 347 347 measurements of property, plant and equipment. For the purpose of fair value disclosures, Parks Victoria has determined classes of assets on the basis of the nature, characteristics and risks of the asset and the level of the fair value hierarchy as explained above. Infrastructure at fair value All assets for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, Piers and jetties 115,648 – – 115,648 described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: Total of infrastructure at fair value 115,648 – – 115,648 • Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities, • Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; and Infrastructure at fair value • Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. River improvements 16,354 – – 16,354 Parks Victoria, according to the accounting policy, determines whether transfers have occurred between the levels in the hierarchy based on the lowest level of input that is significant to the fair value measurement at the end of the reporting period. There have Total of infrastructure at fair value 16,354 – – 16,354 been no transfers between levels during the period.

Antique assets at fair value Antiques and artworks 4,550 – 4,550 – Total of cultural assets at fair value 4,550 – 4,550 – Grand total 2,575,813 – 4,550 2,571,263

87 Financial Report Parks Victoria Annual Report 2017–18 88 Notes to the financial statements Notes to the financial statements For the year ended 30 June 2018 For the year ended 30 June 2018

4.1 Property, plant and equipment (continued) 4.1 Property, plant and equipment (continued) 4.1.4 Fair value measurement hierarchy for assets (continued) 4.1.5 Reconciliation of level 3 fair value Total of specialised land and total of specialised buildings Plant, Specialised land is valued using the market approach adjusted for Community Service Obligation (CSO) which Equipment, Piers, Jetties accounts for any legal or constrictive restrictions imposed on the assets such as current zoning, covenants, use, public Specialised Specialised Machinery and River Total Level 3 announcements or commitments made in relation to the intended use of the land. As adjustments of CSO are considered Land Buildings and Vehicles Improvements Assets as significant unobservable inputs, specialised land would be classified as Level 3 assets. 2018 The value of specialised buildings was determined by the Valuer-General Victoria after deducting allowances for any physical deterioration and functional and economic obsolescence already occurred or expired (depreciated replacement Opening balance 2,117,805 85,948 392 128,070 2,332,215 cost). As depreciation adjustments are considered as significant, unobservable inputs in nature, specialised buildings are classified at Level 3 fair value measurements. Purchases (sales) 29,705 912 232 13,358 44,206 Transfers in (out) of Level 3 – – – – – Plant, equipment, machinery and vehicles Plant, equipment, machinery and vehicles are valued using the current replacement cost method. This cost represents the Gains or losses recognised replacement cost of the plant, equipment, machinery and vehicles after applying depreciation rates on a useful life basis. in net results Replacement costs relate to costs to replace the current service capacity of the asset. Depreciation expense (2,496) (4,167) (277) (5,269) (12,208) As depreciation adjustments are considered as significant, unobservable inputs in nature, these assets are classified at Level 3 fair value measurements. Impairment loss – (95) – (4,157) (4,252) Subtotal 2,145,014 82,598 347 132,002 2,359,961 Infrastructure Infrastructure comprises of piers, jetties and river improvements. Infrastructure assets are valued using the current Gains or losses recognised in other replacement cost method. This cost represents the replacement cost of the component after applying depreciation rates economic flows – other comprehensive on a useful life basis. Replacement costs relate to costs to replace the current service capacity of the asset. Economic income obsolescence has also been factored into the depreciated replacement cost calculation. Revaluation 211,302 – – – 211,302 Where it has not been possible to examine hidden works such as structural frames and floors, the use of reasonable materials and methods of construction have been assumed bearing in mind the age and nature of the building. The Closing balance 2,356,316 82,598 347 132,002 2,571,263 estimated cost of reconstruction including structure services and finishes as applicable. An independent valuation of Parks Victoria’s infrastructure was performed by Napier & Blakeley Pty Ltd on behalf of the 2017 Valuer-General Victoria. The valuation was performed based on the current replacement cost of the assets. The effective date of the valuation is 30 June 2016. Opening balance 1,900,787 96,832 467 130,093 2,128,179 As depreciation adjustments are considered as significant, unobservable inputs in nature, these assets are classified at Purchases (sales) (4,606) (6,333) 43 3,048 (7,849) Level 3 fair value measurements. Transfers in (out) of Level 3 – – – – – Antique assets Gains or losses recognised Antiques comprise sculptures, artworks and furniture. The value of antiques was determined by the Valuer-General in net results Victoria by comparing similar examples of the items and artists work in existence throughout Australia and research on prices paid for similar examples offered at auction or through art galleries in recent years. Depreciation expense (2,520) (4,551) (118) (5,071) (12,261) Antique assets are classified at Level 2 fair value measurements as their values are based on significant inputs and market Impairment loss – – – – – values that are directly or indirectly observable. Subtotal 1,893,661 85,948 392 128,070 2,108,069

Gains or losses recognised in other economic flows – other comprehensive income Revaluation 224,145 – – – 224,145 Subtotal 224,145 – – – 224,145 Closing balance 2,117,805 85,948 392 128,070 2,332,215

89 Financial Report Parks Victoria Annual Report 2017–18 90 Notes to the financial statements Notes to the financial statements For the year ended 30 June 2018 For the year ended 30 June 2018

2018 2017 4.1 Property, plant and equipment (continued) $’000 $’000 4.1.6 Description of significant unobservable inputs to Level 3 valuations 4.3 Other financial assets as at 30 June 2018 Investments

Valuation technique Significant unobservable inputs Australian dollars term deposit > 3 months 125,000 100,000 Total other financial assets – current 125,000 100,000 Specialised Land Market approach Community Service Obligation (CSO) adjustment Other financial assets consists of term deposit with maturity greater than 90 days.

Specialised Buildings Current replacement cost (1) Cost per building and Parks Victoria’s exposure to interest rate risk is discussed in note 7.1.6. The maximum exposure (2) Useful life of specialised buildings to credit risk at the end of the reporting period is the carrying amount of each class of cash and deposits and other financial assets mentioned in note 7.1.4.

Plant, Equipment, Machinery and Vehicles Current replacement cost (1) Cost per unit and (2) Useful life of plant and equipment, 4.4 Committed funds machinery and vehicles Total funds – Cash, Deposits and Investments (refer note 6.1.1 & 4.3) 155,872 134,586 Piers/Jetties Current replacement cost (1) Cost per pier/jetty and (2) Useful life of piers, jetties Committed cash and Investments Government asset and initiative funding 75,961 55,524 River Improvements Current replacement cost (1) Cost per river improvement and Point Nepean park establishment 3,915 4,118 (2) Useful life of river improvements Fire and flood programs (incl. insurance) 12,901 8,787 Sponsored works 14,774 15,904 Significant unobservable inputs have remained unchanged since June 2016. Other liabilities 884 811 Total committed cash 108,435 85,144 2018 2017 $’000 $’000 These commitments are for complex projects that span greater than one financial year. Parks Victoria receives significant funding in advance from many sources and manages both 4.2 Intangible assets committed and uncommitted cash to ensure it has sufficient capacity to meet financial Computer software commitments as they arise. Gross carrying amount Gross carrying amount opening balance 8,497 8,497 Additions – internal development 4,789 – Closing balance 13,286 8,497

Accumulated amortisation and impairment Opening balance (5,912) (5,062) Amortisation expense (1,086) (850) Closing balance (6,998) (5,912) Net book value at the end of financial year 6,288 2,585

Intangible assets include business systems and IT software. Intangible assets are initially recognised at cost. Subsequently, intangible assets with finite useful lives are carried at cost less accumulated amortisation and accumulated impairment losses. Costs incurred subsequent to initial acquisition are capitalised when it is expected that additional future economic benefits will flow to Parks Victoria.

91 Financial Report Parks Victoria Annual Report 2017–18 92 Notes to the financial statements Notes to the financial statements For the year ended 30 June 2018 For the year ended 30 June 2018

5 Other assets and liabilities 5.1 Receivables (continued)

Introduction 5.1.2 Aging analysis of contractual receivables Refer to table under note 7.1.4 for the ageing analysis of receivables (except statutory receivables). This section sets out those assets and liabilities that arose from Parks Victoria’s controlled operations. 5.1.3 Nature and extent of risk arising from contractual receivables 2018 2017 Refer to note 7.1.4 for the nature and extent of risks arising from contractual receivables. Non- Non- Current Current Total Current Current Total $’000 $’000 $’000 $’000 $’000 $’000 2018 2017 Non- Non- 5.1 Receivables Current Current Total Current Current Total Statutory $’000 $’000 $’000 $’000 $’000 $’000 Amount owing from Victorian Government* 6,122 – 6,122 7,100 – 7,100 5.2 Payables GST input tax credit recoverable 1,380 – 1,380 1,091 – 1,091 Statutory Total receivables – statutory 7,502 – 7,502 8,191 – 8,191 FBT payable 109 – 109 107 – 107 Other taxes payables 377 – 377 465 – 465 Contractual Total payables – statutory 486 – 486 572 – 572 Debtors 1,786 – 1,786 3,457 – 3,457

Provision for doubtful debts (124) – (124) (397) – (397) Contractual Other receivables 5,638 33 5,671 850 34 884 Unsecured creditors and accruals 23,023 – 23,023 19,326 – 19,326 Total receivables – contractual 7,300 33 7,333 3,910 34 3,944 Employee benefits 1,719 – 1,719 1,576 – 1,576 Total receivables 14,802 33 14,835 12,101 34 12,135 Advances from DEWLP – Greener Government Building Program 2,158 – 2,158 360 1,490 1,850 Other payables 172 – 172 155 – 155 Receivables consist of: • statutory receivables, which include predominately amounts owing from the Victorian Government and GST input tax credit Total payables – contractual 27,072 – 27,072 21,417 1,490 22,907 recoverable; and Total payables 27,558 – 27,558 21,989 1,490 23,479 • contractual receivables, which include mainly debtors in relation to goods and services, and accrued investment income. Receivables that are contractual are classified as financial instruments and categorised as loans and receivables. Statutory Payables consist of: receivables are not classified as financial instruments. • Contractual payables, such as accounts payable and employee benefits. Accounts payable represents liabilities for goods and * Statutory receivables do not arise from contracts and are recognised and measured similarly to contractual receivables (except services provided to Parks Victoria for the financial year that are unpaid, and arise when Parks Victoria becomes obliged to make for impairment), but are not classified as financial instruments. Amounts recognised from the Victorian Government represent future payments in respect of the purchase of those goods and services; and funding from DELWP for all commitments and are drawn from the Consolidated Fund as the commitments fall due. • Statutory payables, such as fringe benefits tax payable and payroll tax. Compensation from third parties for items of property, plant and equipment that were impaired, lost or given up are recognised Contractual payables are classified as financial instruments and categorised as financial liabilities at amortised cost. Statutory as a receivable when the receipt of the reimbursement becomes “virtually certain.” payables are recognised and measured similarly to contractual payables, but are not classified as financial instruments and not Collectability of debtors is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A provision included in the category of financial liabilities at amortised cost, as they do not arise from a contract. Payables are non-interest for doubtful debts is established when there is objective evidence that Parks Victoria will not be able to collect all amounts due bearing and have an average credit period of 30 days (2017: 30 days). according to the original terms of receivables. • Employee Benefits, such as accrued salaries and wages. Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial. The amount of the provision is recognised in the Comprehensive Operating Statement. Bad debts are written off in the period in which they are (a) Nature and extent of risk arising from contractual payables incurred. Refer to note 7.1.5 for the nature and extent of risks arising from contractual payables. The average credit period on sales of goods or provision of services is 30 days (2017: 30 days).

2018 2017 $’000 $’000 5.1.1 Movement in the provision for doubtful debts Balance at the beginning of the year (397) (530) Reversal of unused provision recognised in the net result 292 170 Increase in provision recognised in the net result (24) (40) Reversal of provision written off during the year as uncollectible 5 3 Balance at the end of the year (124) (397)

93 Financial Report Parks Victoria Annual Report 2017–18 94 Notes to the financial statements Notes to the financial statements For the year ended 30 June 2018 For the year ended 30 June 2018

2018 2017 2018 2017 $’000 $’000 $’000 $’000 6 Financing our operations 6.2 Commitments for expenditure Commitments 6.1 Cash flow information and balances Commitments for future expenditure include operating and capital commitments arising from contracts. These commitments are disclosed below at their nominal value and inclusive of 6.1.1 Cash and deposits the Goods and Services Tax (GST) payable. These future expenditures cease to be disclosed as commitments once the related liabilities are recognised in the balance sheet. Cash and deposits 30,872 34,586 Total cash and deposits – current 30,872 34,586 6.2.1 Capital commitments

Cash and deposits recognised on the balance sheet comprise cash on hand and cash at bank, Value of commitments for capital expenditure at 30 June 2018 for the supply of works, services deposits at call and those highly liquid investments (with an original maturity of three months or and materials not provided for in the financial statements: less), which are held for the purpose of meeting short term cash commitments rather than for investment purposes, and readily convertible to known amounts of cash with an insignificant risk of changes in value. Not later than one year 580 2,871 For the purpose of the Cash Flow Statement, cash assets include cash on hand and highly liquid Total capital commitments (inclusive of GST) 580 2,871 investments with short periods to maturity that are readily convertible to cash on hand at Parks Victoria’s option and are subject to insignificant risk of changes in values. Less GST recoverable from Australian Taxation Office (53) (261) Park Victoria’s exposure to interest rate risk is discussed in note 7.1.6. The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of cash and Total capital commitments (exclusive of GST) 527 2,610 deposits and other financial assets mentioned in note 7.1.4 .

6.1.2 Reconciliation of net result for the period 6.2.2 Lease commitments to net cash flows A lease is a right to use an asset for an agreed period of time in exchange for payment. Leases are classified at their inception as either operating or finance leases based on the economic Net result for the period 12,060 6,163 substance of the agreement to reflect the risks and rewards incidental to ownership. Leases of property, plant and equipment are classified as finance leases whenever the terms of the lease Non-cash movements: transfer substantially all the risks and rewards of ownership from the lessor to the lessee. All Actuarial gain/(loss) recognised in a year 1,219 2,650 other leases are classified as operating leases. All of Parks Victoria’s leases are currently classified as operating leases. Depreciation and amortisation 13,341 13,156 Operating leases relate to buildings, motor vehicles, computers and property and plant Provision for doubtful debts (268) (130) equipment with lease terms of between three to ten years, with an option to extend for a further three years. Net assets (received) provided free of charge (590) (292) Total expenditure contracted for at balance date but not provided for in the financial statements Net (gain) / loss on sale of non-current assets – 715 in relation to non-cancellable operating leases is as follows: Others 300 27 Fair value of assets provided free of charge 6 3,471 Not later than one year 8,952 8,366 Later than one year but not later than five years 12,272 13,561 Change in operating assets and liabilities: Later than five years 200 692 Decrease / (increase) in trade debtors (2,430) (271) Total non-cancellable operating leases (inclusive of GST) 21,424 22,619 Decrease / (increase) in inventories (69) 44 Decrease / (increase) in superannuation defined benefit & other assets (1,334) (2,688) Less GST recoverable from Australian Taxation Office (1,948) (2,056) (Decrease) / increase in other provisions 3,472 (131) Total non-cancellable operating leases (exclusive of GST) 19,476 20,563 (Decrease) / increase in trade creditors 3,772 (1,432) Operating lease payments, including any contingent rentals, are recognised as an expense in the Net cash inflow from operating activities 29,479 21,282 Comprehensive Operating Statement on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern of the benefits derived from the use of the leased asset. The leased asset is not recognised in the Balance Sheet. 6.1.3 Credit card and merchant facilities Total credit card facility 2,000 2,000 Total credit card facility used/(Liability) (120) (155) Total merchant facility (daily limit) 330 330

95 Financial Report Parks Victoria Annual Report 2017–18 96 Notes to the financial statements Notes to the financial statements For the year ended 30 June 2018 For the year ended 30 June 2018

7 Risks, contingencies and valuation judgements 7.1 Financial instruments specific disclosures (continued) 7.1.4 Credit risk (continued) 7.1 Financial instruments specific disclosures Table 1.2: Credit quality of contractual financial assets that are neither past or due nor impaired 7.1.1 Financial risk management objectives Financial Government Government Parks Victoria’s activities expose it primarily to the financial risks of changes in interest rates. Parks Victoria does not enter into institutions agencies agencies derivative financial instruments to manage its exposure to interest rate risk. Double-A Triple-A Triple-B Parks Victoria does not enter into or trade financial instruments, including derivative financial instruments for speculative purposes credit rating credit rating credit rating Other Total as per the Victorian Governments Borrowing and Investment Powers Act 1987 and subsequent amendments. $’000 $’000 $’000 $’000 $’000 The approach for managing these risks is discussed in more detail below. 2018 Cash and deposits 30,872 – – – 30,872 7.1.2 Significant accounting policies Receivables (i) – – – 1,067 1,067 Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement Investments and other financial assets – 125,000 – – 125,000 and the basis on which income and expenses are recognised, in respect of each class of financial asset and financial liability are disclosed in relevant notes of the financial statements. Total contractual financial assets 30,872 125,000 – 1,067 156,939 The carrying amounts of Park Victoria’s financial assets and financial liabilities by category are in the table below. 2017 Table 1.1: Categorisation of financial instruments Cash and deposits 34,586 – – – 34,586 2018 2017 Notes Category $’000 $’000 Receivables (i) – – – 1,943 1,943 Financial assets Investments and other financial assets – 100,000 – – 100,000 Cash and cash deposits 6.1.1 30,872 34,586 Total contractual financial assets 34,586 100,000 – 1,943 136,529 Receivables 5.1 7,333 3,944 Note: (i) The total amounts disclosed here exclude statutory amounts (e.g. amounts owing from Victorian Government and GST input Other financial assets 4.3 125,000 100,000 tax credit recoverable).

Financial liabilities Financial assets that are neither past due nor impaired Payables 5.2 27,072 22,907 Currently Parks Victoria does not hold any collateral as security or credit enhancements relating to any of its financial assets. As at the reporting date, there is $124k of receivables (2017: $397k) that have been assessed as impaired. Note: The amount of receivables disclosed here exclude statutory receivables (i.e. amounts owing from Victorian Government and There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and GST input tax credit recoverable). For 2018 this was $7.5m ( 2017: $8.2m). 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. 7.1.3 Significant terms and conditions Table 1.3: Ageing analysis of financial assets(a) There are no other significant terms and conditions applicable to Parks Victoria, in respect of each class of financial asset, financial liability and equity instrument, except those required by FRD 114B Financial Instruments. Past due but not impaired

7.1.4 Credit risk Not past Carrying due and not Less than 3 months– Credit risk arises from the financial assets of Parks Victoria, which comprise cash and cash equivalents, investment, trade and other amount impaired 1 Month 1–3 months 1 year 1–5 years receivables. Parks Victoria’s exposure to credit risk arises from the potential default of counter party on their contractual obligations $’000 $’000 $’000 $’000 $’000 $’000 resulting in financial loss to the agency. Credit risk is measured at fair value and is monitored on a regular basis. 2018 Credit risk associated with the agency’s financial assets is minimal because the main debtor is the Victorian Government. For debtors other than government, it is Parks Victoria’s policy to only deal with entities with high credit ratings and to obtain sufficient Receivables (note a) 7,333 1,067 6,184 39 10 33 collateral or credit enhancements where appropriate. Total 7,333 1,067 6,184 39 10 33 In addition, the agency does not engage in hedging for its financial assets and mainly obtains financial assets that are on fixed interest. The agency’s policy is to only deal with banks with high credit ratings. Provision for doubtful debts is recognised when there is objective evidence that Parks Victoria will not be able to collect a 2017 receivable. Objective evidence includes financial difficulties of the debtors default payments, debts which are more than 90 days overdue and changes in debtor’s credit ratings. Receivables (note a) 3,944 1,943 1,919 42 6 34 Except as otherwise detailed in the following table, the carrying amount of contractual financial assets recorded in the financial Total 3,944 1,943 1,919 42 6 34 statements, net of any allowances for losses, represents Parks Victoria’s maximum exposure to credit risk without taking account of the value of any collateral obtained. Note: (a) Ageing analysis of financial assets excludes statutory receivables (e.g. amounts owing from Victorian Government and GST input tax credit recoverable).

97 Financial Report Parks Victoria Annual Report 2017–18 98 Notes to the financial statements Notes to the financial statements For the year ended 30 June 2018 For the year ended 30 June 2018

7.1 Financial instruments specific disclosures (continued) 7.2 Contingent liabilities and contingent assets 7.1.5 Liquidity risk Contingent assets and contingent liabilities are not recognised in the Balance Sheet, but are disclosed by way of a note and, if quantifiable, are measured at nominal value. Contingent assets and liabilities are presented inclusive of GST receivable or payable respectively. Liquidity risk arises when Parks Victoria is unable to meet its financial obligations as they fall due. Parks Victoria operates under the Government fair payments policy of settling financial obligations within 30 days and in the event of a dispute, making payments within 30 days from the date of resolution. It also continuously manages risks through monitoring future cash flows and maturities 7.2.1 Contingent assets planning to ensure adequate holding of high quality liquid assets and dealing in highly liquid markets. Parks Victoria has lodged insurance claims for compensation for the reinstatement and replacement of assets which sustained Parks Victoria’s exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of risk. Cash damages due to fire, floods and storm activities with its insurer – Victorian Managed Insurance Authority (VMIA). At 30 June 2018, for unexpected events is generally sourced from liquidation of financial investments. Parks Victoria has $7.8m (2017: $4.4m) in claims outstanding with VMIA that are currently being assessed.

7.1.6 Market risk 7.2.2 Contingent liabilities Parks Victoria’s exposures to market risk are primarily through interest rate risk with only insignificant exposure to foreign currency Under public liability and professional indemnity 57 claims have been lodged with Parks Victoria. Parks Victoria has forwarded those risk. A sensitivity analysis has been prepared for interest rate risk, as it is deemed as a significant market risk on the return to Parks claims to its insurer VMIA to be assessed. Parks Victoria’s liability exposure towards these claims is limited to its normal insurance Victoria. Objectives, policies and processes used to manage each of these risks are disclosed in the paragraphs below. excess – ranging from $25 per claim to $25,000 per claim, or $310,100 (2017: $545,050) if all claims are accepted by the insurer. Interest rate risk Following an internal payroll review in May 2018, it was identified that the payroll system contains several configuration errors. These configuration errors date back to 2002 when the payroll system was implemented following a period when the payroll The fair value interest rate risk is the risk that the fair value of a financial instrument will fluctuate because of changes in market function was performed by an ‘out sourced’ provider. These errors have resulted in a shortfall in superannuation guarantee interest rates. contributions being calculated on some time worked on public holidays and some allowances. The carrying amount of financial assets that are exposed and its sensitivity to interest rates is set out in the table below. There is significant uncertainty with respect to the extent of Parks Victoria’s obligations and the applicable penalties of not meeting its superannuation guarantee obligations. Consequently, Parks Victoria cannot reliably estimate the present superannuation Table 1.4: Interest rate market risk exposure shortfall obligation and penalties due to the volume and complexity of the data extraction and analysis required to be completed. In accordance with AASB137 Provisions, Contingent Liabilities and Contingent Assets, where the amount of the obligations cannot be measured with sufficient reliability, no provision can be recognised in the financial statements in 2017–18. Interest rate risk Parks Victoria has engaged Ernst & Young to provide specialist advice and support to resolve this matter as soon as practicable. Parks Victoria’s objective is to pay all amounts owing to current and former employees within the 2018–19 financial year. Net Result Net Result $’000 $’000 Financial assets: 2018 -50 basis points +50 basis points Other financial assets – based on actual 2017–18 closing balance Carrying amount $155.9m @ 30 June 2018 (779) 779

Financial assets: 2017 -50 basis points +50 basis points Other financial assets – based on actual 2016–17 closing balance Carrying amount $134.6m @ 30 June 2017 (673) 673

The interest rate risk analysis has been applied on the total of $155.9m, on the estimate that the minimum interest rate decrease will be 0.50 % and the maximum increase will be 0.50 %. Exposure to interest rate risk is reduced as funds are held in fixed interest term deposits. The weighted average cash interest rate earned for 2018 was 1.45% (2017: 1.45%). Foreign currency risk Parks Victoria is exposed to insignificant foreign currency risk through its payables relating to purchases of supplies and consumables from overseas. This is because of a limited amount of purchases denominated in foreign currencies and a short time frame between commitment and settlement.

7.1.7 Fair value The fair values and net fair values of financial assets and financial liabilities are determined as follows: • Level 1 – the fair value of financial assets and financial liabilities with standard terms and conditions and traded in active liquid markets are determined with reference to quoted market prices; and • Level 2 – the fair value is determined using inputs other than quoted prices that are observable for the financial asset or liability, either directly or indirectly; and • Level 3 – the fair value is determined in accordance with generally accepted pricing models based on discounted cash flow analysis using unobservable market inputs. Parks Victoria considers that the carrying amount of financial instruments assets and liabilities recorded in the financial statements to be a fair approximation of their fair values, because of the short-term nature of the financial instruments and the expectation that they will be paid or received in full. These assets and liabilities are valued at level 1.

99 Financial Report Parks Victoria Annual Report 2017–18 100 Notes to the financial statements Notes to the financial statements For the year ended 30 June 2018 For the year ended 30 June 2018

2018 2017 2018 2017 $’000 $’000 Notes $’000 $’000 8 Other disclosures 8.3 Physical asset revaluation surplus Movements: 8.1 Ex-gratia payments Opening balance 1,684,462 1,460,317 Forgiveness or waiver of debt (i) 5 3 Impairment loss (4,252) – Total Ex-gratia expenses 5 3 Revaluation of Crown land, land and land improvements 211,302 224,145 Movement in physical assets revaluation surplus 4.1.1 207,050 224,145 (i) Refer to note 5.1.1. It represents the doubtful debts written off during the year as uncollectible. Total physical asset revaluation surplus 1,891,512 1,684,462 8.2 Other economic flows included in net result 8.4 Contributed capital 8.2.1 Net gain/(loss) on non-financial assets Opening balance 665,016 649,441 Disposal of property, plant and equipment – (715) Addition to net asset base from DELWP 49,803 22,782 Total net gain/(loss) on non-financial assets – (715) Assets transferred to DELWP (977) (7,207) Net movement in contributed capital 48,826 15,575 8.2.2 Net gain/(loss) on non-financial instruments Total contributed capital 713,842 665,016

Provision for doubtful debts (24) (40) Contributions are made to improve tourism, enhance infrastructure in parks and construct piers and jetties in Victoria. Consistent Reversal of unused doubtful debt provision 292 170 with the requirements of AASB 1004 Contributions, contributions by owner (that is, contributed capital and its repayment) are treated as equity transactions and, therefore do not form part of the income and expenses of Parks Victoria. Other transfers that Interest income (loss) arising from advances from government – (308) (97) are in the nature of contributions by owners have also been designated as contributed capital. Greener government building program Total net gain/(loss) on financial instruments (40) 33 8.5 Responsible persons and executive officer disclosures Refer to note 5.1 for the policy on doubtful debts. 8.5.1 Responsible persons 8.2.3 Other gains/(losses) from other The names of persons who were Board Members at any time during the financial year ended 30 June 2018 are as follows: economic flows Jeff Floyd 1 August 2017 to 30 June 2018 Kate Vinot 1 July 2017 to 30 June 2018 Net gain/(loss) arising from revaluation of long service liability due to changes John Pandazopoulos 1 August 2017 to 30 June 2018 Christine Trotman 1 July 2017 to 30 June 2018 in the bond interest rates (1,037) (339) Helen Weston 1 August 2017 to 30 June 2018 Andrew Grant 1 July 2017 to 31 December 2017 Total other gains/(losses) from other economic flows (1,037) (339) Annette Vickery 1 August 2017 to 30 June 2018 Andrew Fairley 1 July 2017 to 31 July 2017 Total other economic flows included in net result (1,077) (1,021) Lisa Marty 1 August 2017 to 30 June 2018 Natalie O'Brien 1 July 2017 to 31 July 2017 Graham Atkinson 1 August 2017 to 30 June 2018 Rob Wallis 1 July 2017 to 31 July 2017

Other economic flows – other comprehensive income The name of the responsible Minister from 1 July 2017 to 30 June 2018 was Lily D’Ambrosio Minister for Energy, Environment and Climate Change. Amounts relating to Ministers are reported in the financial statements of the Department of Premier and Cabinet. 8.2.4 Items that will not be reclassified For information regarding related party transactions of Ministers, the register of members’ interests is publicly available from: to net result www.parliament.vic.gov.au/publications/register of interests. Net gain/(loss) arising from revaluation of superannuation defined 1,219 2,650 The name of the accountable officer from 1 July 2017 to 30 June 2018 was M. Jackson. benefit plans Total other economic flows – other comprehensive income 1,219 2,650 8.5.2 Accountable Officer remuneration Refer to note 3.2.4 for details on Defined superannuation benefit. Remuneration received or receivable by the Accountable Officer in connection with the management of Parks Victoria during the reporting period was in the range: $330,000 to $359,999 (2017–18) $330,000 to $359,999 (2016–17)

101 Financial Report Parks Victoria Annual Report 2017–18 102 Notes to the financial statements Notes to the financial statements For the year ended 30 June 2018 For the year ended 30 June 2018

2018 2017 $’000 $’000 8.5 Responsible persons and executive officer disclosures (continued) 8.5 Responsible persons and executive officer 8.5.5 Related parties disclosures (continued) Key Management Personnel (KMP) are those personnel who have the authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly. Key Management Personnel of Parks Victoria include the Minister, 8.5.3 Board Members remuneration Board Members, Chief Executive, and members of the executive team. Total remuneration received or due and receivable by Board Members from the reporting entity was 210 165 Related party transactions Transactions that have occurred with Key Management Personnel and their related entities have not been considered material 2018 2017 for disclosure. Number Number The names of persons who were Key Management Personnel at any time during the financial year ended 30 June 2018 The number of Board Members of the reporting entity included in this figure is as below: are as follows: Income of: Honorable. Minister for Energy, Environment Andrew Grant Board Member $0 to $9,999 3 2 Lily D'Ambrosio and Climate $10,000 to $19,999 6 1 Jeff Floyd Board Member Matthew Jackson Chief Executive Officer $20,000 to $29,999 2 5 John Pandazopoulos Board Member Simon Talbot Chief Operating Officer $30,000 to $39,999 1 1 Helen Weston Board Member Kylie Trott Executive Director Regional Victoria Total number of Board Members 12 9 Annette Vickery Board Member Chris Hardman Executive Director Melbourne Division Lisa Marty Board Member Ian Sargent Executive Director People and 8.5.4 Executive officers remuneration Finance and Chief Financial Officer Remuneration of executives Graham Atkinson Board Member Margaret Gillespie Executive Director Legal, Risk The number of executive officers, other than Minister and accountable officer, and their total remuneration during the reporting and Compliance period are shown in the table below. Total annualised employee equivalents provides a measure of full time equivalent executive Kate Vinot Board Member Dr. Mark Norman Chief Conservation Scientist officers over the reporting period. Remuneration comprises employee benefits in all forms of consideration paid, payable or provided by the entity, or on behalf of the Christine Trotman Board Member Lisa Patroni Executive Director Marketing entity, in exchange for services rendered, and is disclosed in the following categories. and Communication Short-term employee benefits include amounts such as wages, salaries, annual leave or sick leave that are usually paid or payable Andrew Fairley Board Member Ben Skinner Executive Director Infrastructure on a regular basis, as well as non-monetary benefits such as allowances and free or subsidised goods or services. and Information Technology Post-employment benefits include pensions and other retirement benefits paid or payable on a discrete basis when employment Natalie O'Brien Board Member Jennifer Rebeiro Executive Director Business has ceased. and Infrastructure Services Other long-term benefits include long service leave, other long service benefits or deferred compensation. Rob Wallis Board Member David Major Executive Director Planning and Partnerships Termination benefits include termination of employment payments, such as severance packages. The compensation detailed below excludes the salaries and benefits the Portfolio Minister receives. The Minister’s remuneration Total Remuneration and allowance is set by the Parliamentary Salaries and Superannuation Act 1968 and is reported within the Department of Parliamentary Services’ Financial Report. 2018 2017 $’000 $’000 2018 2017 Remuneration of executive officers $’000 $’000 Short term employee benefits 4,296 3,518 Compensation of KMPs Post-employee benefits 404 332 Short-term employee benefits 2,216 1,808 Other long-term benefits 110 79 Post-employment benefits 190 139 Termination benefits – 238 Other long-term benefits 48 36 Total remuneration (i) 4,810 4,167 Termination benefits – 64 Total number of executives 31 27 Total* 2,454 2,047 Total annualised employee equivalents (ii) 23 27 Note: *Note that KMPs are also reported in the disclosure of remuneration of executive officers in note 8.5.4. (i) The total number of executive officers includes persons who meet the definition of Key Management Personnel (KMP) of the entity under AASB 124 Related Party Disclosures and are also reported in note 8.5.5. (ii) Annualised employee equivalent is based on paid working hours of 38 ordinary hours per week over the 52 weeks for a reporting period.

103 Financial Report Parks Victoria Annual Report 2017–18 104 Notes to the financial statements Notes to the financial statements For the year ended 30 June 2018 For the year ended 30 June 2018

8.5 Responsible persons and executive officer disclosures (continued) 8.8 Interest in other entities 8.5.5 Related parties (continued) The People and Parks Foundation Limited was established in 2004 as a company limited by guarantee under the Corporations Act 2001. The People and Parks Foundation Limited is a registered charity with the Australian Charities and Not for Profits Commission Significant transactions with government-related entities and lists its purpose as advancing health, advancing natural environment and purposes beneficial to the general public and other analogous to the other charitable purposes. Parks Victoria received funding of $278.9m (2017: $230.0m) and made a payment of $0.9m (2017: $1.0m) from/to Consolidated Fund respectively. Parks Victoria transferred Crown Land and build assets $1.0m (2017:$7.2m) to the Department of Environment, Parks Victoria provides in kind support and is the main fund provider to People and Parks Foundation Limited. There are six Board Land, Water and Planning (DELWP). Members of People and Parks Foundation Limited. Parks Victoria’s share of the profits and losses in People and Parks Foundation Limited is Nil. During the year Parks Victoria conducted the following transactions with the Government-related entities; Parks Victoria is not aware of any contingent assets or liabilities relating to the People and Parks Foundation Limited. • received $257.8m from the Department of Environment, Land, Water and Planning (DELWP) for the management of parks and waterway within Victoria for the purposes of conservation, recreation, leisure, tourism, navigation, fire suppression activities and for the construction of new assets; • received $18.0m from the Department of Economic Development, Jobs, Transport and Resources (DEDJTR) for the repair and 8.9 Post balance date events maintenance and construction of piers and jetties; Changes to the Parks Victoria Act • received $0.9m from the Department of Premier & Cabinet for the construction of Parks Victoria office at Albert Park; On 5 June 2018, the Parks Victoria Act 2018 received Royal Assent. The Act repeals and re-enacts – with amendments – the Parks • received $1.7m from various Catchment Management Authorities (CMA) towards Land Care Management Program, Invasive Victoria Act 1998 and consequentially amends Crown land legislation to provide Parks Victoria with direct control and management Plant and Animal Strategy program and Weed Management; of the land it currently manages on behalf of the Secretary and Minister. This will result in the transfer of land and assets under the • received $0.5m from other Government agencies for various projects; Crown Land (Reserves) Act 1978, Forests Act 1958, Land Act 1958, National Parks Act 1975 and Wildlife Act 1978 to Parks Victoria upon commencement. The net asset transfer is estimated to be $4.1 billion. Commencement of the transfer of assets is likely to • paid $0.9m to the Department of Environment, Land, Water and Planning for lease and licence revenue collected within national occur in mid September 2018. parks; and • transferred Crown land and built assets $1.0m to the Department of Environment, Land, Water and Planning to facilitate the construction of new assets. 8.10 New accounting standards and interpretations Certain new AASs have been published that are not mandatory for the 30 June 2018 reporting period. Parks Victoria has assessed 2018 2017 the impact of these new standards, their applicability and early adoption, where applicable. $’000 $’000 As at 30 June 2018, the applicable standards and interpretations (applicable to Parks Victoria) had been issued but were not 8.6 Auditor’s remuneration mandatory for the financial year ending 30 June 2018. Parks Victoria has not early adopted these standards. Amounts paid/payable to: Victorian Auditor-General's Office for the audit of the financial statements 77 75

8.7 Volunteer resources provided free of charge In 2018 volunteers across Parks Victoria’s managed estate contributed 281,776 hours of voluntary labour, which equates to just over 37,076 days with an estimated value of $10.0m* (2017: 29,183 days, $7.7m)*. Volunteers include Friends Groups, Campground Hosts, individuals, school groups, corporate, other external organisations and special interest groups including Four Wheel Drive Victoria, Conservation Volunteers Australia & Bushwalking Victoria. Each year these groups and individuals provide invaluable support to Parks Victoria by dedicating their time to improve park conservation values and deliver visitor services across parks and reserves. The volunteers also play a role in increasing the interest and advocacy of parks in the community. * Value is based on the hourly rate provided by the peak body for volunteering – Volunteering Victoria.

105 Financial Report Parks Victoria Annual Report 2017–18 106 Notes to the financial statements Auditor’s Report For the year ended 30 June 2018

8.10 New accounting standards and interpretations (continued)

 Applicable for annual Standard/ reporting periods Impact on Parks Victoria's Interpretation Summary beginning on financial statements Independent Auditor’s Report AASB 9 Financial The key changes include the simplified requirements for the 1 Jan 2018 The assessment has identified that the Instruments classification and measurement of financial assets, a new amendments are likely to result in earlier hedging accounting model and a revised impairment loss recognition of impairment losses and at dŽƚŚĞŽĂƌĚŽĨWĂƌŬƐsŝĐƚŽƌŝĂ model to recognise impairment losses earlier, as opposed more regular intervals. While there will be to the current approach that recognises impairment only no significant impact for Parks Victoria, KƉŝŶŝŽŶ /ŚĂǀĞĂƵĚŝƚĞĚƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŽĨWĂƌŬƐsŝĐƚŽƌŝĂ;ƚŚĞĂƵƚŚŽƌŝƚLJͿǁŚŝĐŚĐŽŵƉƌŝƐĞƐƚŚĞ͗ when incurred. there will be a change to the way financial instruments are disclosed. • ďĂůĂŶĐĞƐŚĞĞƚĂƐĂƚϯϬ:ƵŶĞϮϬϭϴ • AASB 15 Revenue The core principle of AASB 15 requires an entity to recognise 1 Jan 2019 The changes in revenue recognition ĐŽŵƉƌĞŚĞŶƐŝǀĞŽƉĞƌĂƚŝŶŐƐƚĂƚĞŵĞŶƚĨŽƌƚŚĞLJĞĂƌƚŚĞŶĞŶĚĞĚ from Contracts revenue when the entity satisfies a performance obligation by requirements in AASB 15 may result • ƐƚĂƚĞŵĞŶƚŽĨĐŚĂŶŐĞƐŝŶĞƋƵŝƚLJĨŽƌƚŚĞLJĞĂƌƚŚĞŶĞŶĚĞĚ with Customers transferring a promised good or service to a customer. in changes to the timing and amount of revenue recorded in the financial • ĐĂƐŚĨůŽǁƐƚĂƚĞŵĞŶƚĨŽƌƚŚĞLJĞĂƌƚŚĞŶĞŶĚĞĚ statements. The Standard will also require • ŶŽƚĞƐƚŽƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͕ŝŶĐůƵĚŝŶŐƐŝŐŶŝĨŝĐĂŶƚĂĐĐŽƵŶƚŝŶŐƉŽůŝĐŝĞƐ additional disclosures on service revenue and contract modifications. The application • ƐƚĂƚƵƚŽƌLJĐĞƌƚŝĨŝĐĂƚĞ͘ of this new accounting standard may require Parks Victoria to transfer $19m from /ŶŵLJŽƉŝŶŝŽŶ͕ƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚƉƌĞƐĞŶƚƐĨĂŝƌůLJ͕ŝŶĂůůŵĂƚĞƌŝĂůƌĞƐƉĞĐƚƐ͕ƚŚĞĨŝŶĂŶĐŝĂů accumulated surplus to liabilities. ƉŽƐŝƚŝŽŶŽĨWĂƌŬƐsŝĐƚŽƌŝĂĂƐĂƚϯϬ:ƵŶĞϮϬϭϴĂŶĚŝƚƐĨŝŶĂŶĐŝĂůƉĞƌĨŽƌŵĂŶĐĞĂŶĚĐĂƐŚĨůŽǁƐĨŽƌ AASB 16 Leases The key changes introduced by AASB 16 include the 1 Jan 2018 The assessment has indicated that most ƚŚĞLJĞĂƌƚŚĞŶĞŶĚĞĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŝŶŐƌĞƋƵŝƌĞŵĞŶƚƐŽĨWĂƌƚϳŽĨƚŚĞ recognition of most operating leases (which are currently not operating leases will come on balance sheet. &ŝŶĂŶĐŝĂůDĂŶĂŐĞŵĞŶƚĐƚϭϵϵϰĂŶĚĂƉƉůŝĐĂďůĞƵƐƚƌĂůŝĂŶĐĐŽƵŶƚŝŶŐ^ƚĂŶĚĂƌĚƐ͘ recognised) on balance sheet. Depreciation of lease assets and interest on lease liabilities will be recognised in the Comprehensive Operating Statement with ĂƐŝƐĨŽƌ /ŚĂǀĞĐŽŶĚƵĐƚĞĚŵLJĂƵĚŝƚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞƵĚŝƚĐƚϭϵϵϰǁŚŝĐŚŝŶĐŽƌƉŽƌĂƚĞƐƚŚĞ marginal impact on the net result. Lease KƉŝŶŝŽŶ ƵƐƚƌĂůŝĂŶƵĚŝƚŝŶŐ^ƚĂŶĚĂƌĚƐ͘/ĨƵƌƚŚĞƌĚĞƐĐƌŝďĞŵLJƌĞƐƉŽŶƐŝďŝůŝƚŝĞƐƵŶĚĞƌƚŚĂƚĐƚĂŶĚ liabilities will cause net debt to increase. The application of standard may require Parks ƚŚŽƐĞƐƚĂŶĚĂƌĚƐŝŶƚŚĞAuditor’s Responsibilities for the Audit of the Financial Report ƐĞĐƚŝŽŶ Victoria to recognise additional $236k in ŽĨŵLJƌĞƉŽƌƚ͘ accumulated surplus. DLJŝŶĚĞƉĞŶĚĞŶĐĞŝƐĞƐƚĂďůŝƐŚĞĚďLJƚŚĞŽŶƐƚŝƚƵƚŝŽŶĐƚϭϵϳϱ͘DLJƐƚĂĨĨĂŶĚ/ĂƌĞ AASB 2014–1 Amends various AASs to reflect the AASB's decision to 1 Jan 2019 This amending standard will defer the Amendments defer the mandatory application date of AASB 9 to annual application period of AASB 9 to the ŝŶĚĞƉĞŶĚĞŶƚŽĨƚŚĞĂƵƚŚŽƌŝƚLJŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞĞƚŚŝĐĂůƌĞƋƵŝƌĞŵĞŶƚƐŽĨƚŚĞĐĐŽƵŶƚŝŶŐ to Australian reporting periods beginning on or after 1 January 2018 as a 2018–19 reporting period in accordance Professional and Ethical Standards Board’s APES 110 ŽĚĞŽĨƚŚŝĐƐĨŽƌWƌŽĨĞƐƐŝŽŶĂů Accounting consequence of Chapter 6 Hedge Accounting, and to amend with the transition requirements. Standards [Part reduced disclosure requirements. ĐĐŽƵŶƚĂŶƚƐ;ƚŚĞŽĚĞͿƚŚĂƚĂƌĞƌĞůĞǀĂŶƚƚŽŵLJĂƵĚŝƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŝŶsŝĐƚŽƌŝĂ͘DLJ E Financial ƐƚĂĨĨĂŶĚ/ŚĂǀĞĂůƐŽĨƵůĨŝůůĞĚŽƵƌŽƚŚĞƌĞƚŚŝĐĂůƌĞƐƉŽŶƐŝďŝůŝƚŝĞƐŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞŽĚĞ͘ Instruments] (AASB 116 /ďĞůŝĞǀĞƚŚĂƚƚŚĞĂƵĚŝƚĞǀŝĚĞŶĐĞ/ŚĂǀĞŽďƚĂŝŶĞĚŝƐƐƵĨĨŝĐŝĞŶƚĂŶĚĂƉƉƌŽƉƌŝĂƚĞƚŽƉƌŽǀŝĚĞĂ & AASB 138) ďĂƐŝƐĨŽƌŵLJŽƉŝŶŝŽŶ͘ AASB 1058 This standard replaces AASB 1004 Contributions and 1 Jan 2019 The assessment has indicated that revenue Income of Not- establishes revenue recognition principles for transactions from capital grants that are provided ŽĂƌĚ’s dŚĞŽĂƌĚŽĨƚŚĞĂƵƚŚŽƌŝƚLJŝƐƌĞƐƉŽŶƐŝďůĞĨŽƌƚŚĞƉƌĞƉĂƌĂƚŝŽŶĂŶĚĨĂŝƌƉƌĞƐĞŶƚĂƚŝŽŶŽĨƚŚĞ for-Profit Entities where the consideration to acquire an asset is significantly less under an enforceable agreement that have than fair value to enable to not-for-profit entity to further its sufficiently specific obligations, will now be ƌĞƐƉŽŶƐŝďŝůŝƚŝĞƐ ĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƵƐƚƌĂůŝĂŶĐĐŽƵŶƚŝŶŐ^ƚĂŶĚĂƌĚƐĂŶĚƚŚĞ&ŝŶĂŶĐŝĂů objectives. deferred and recognised as performance ĨŽƌƚŚĞ DĂŶĂŐĞŵĞŶƚĐƚϭϵϵϰ͕ĂŶĚĨŽƌƐƵĐŚŝŶƚĞƌŶĂůĐŽŶƚƌŽůĂƐƚŚĞŽĂƌĚĚĞƚĞƌŵŝŶĞƐŝƐŶĞĐĞƐƐĂƌLJ obligations are satisfied. As a result, the timing recognition of revenue will change. ĨŝŶĂŶĐŝĂů ƚŽĞŶĂďůĞƚŚĞƉƌĞƉĂƌĂƚŝŽŶĂŶĚĨĂŝƌƉƌĞƐĞŶƚĂƚŝŽŶŽĨĂĨŝŶĂŶĐŝĂůƌĞƉŽƌƚƚŚĂƚŝƐĨƌĞĞĨƌŽŵ ƌĞƉŽƌƚ ŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚ͕ǁŚĞƚŚĞƌĚƵĞƚŽĨƌĂƵĚŽƌĞƌƌŽƌ͘

AASB 1059 This standard applies to arrangements that involve an operator 1 Jan 2019 The initial assessment indicated there will be /ŶƉƌĞƉĂƌŝŶŐƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚ͕ƚŚĞŽĂƌĚŝƐƌĞƐƉŽŶƐŝďůĞĨŽƌĂƐƐĞƐƐŝŶŐƚŚĞĂƵƚŚŽƌŝƚLJΖƐĂďŝůŝƚLJ Service providing a public service on behalf of a public sector grantor. no significant impact for Parks Victoria. ƚŽĐŽŶƚŝŶƵĞĂƐĂŐŽŝŶŐĐŽŶĐĞƌŶ͕ĚŝƐĐůŽƐŝŶŐ͕ĂƐĂƉƉůŝĐĂďůĞ͕ŵĂƚƚĞƌƐƌĞůĂƚĞĚƚŽŐŽŝŶŐĐŽŶĐĞƌŶ Concession It involves the use of a service concession asset and where Arrangements: the operator manages at least some of the public service at ĂŶĚƵƐŝŶŐƚŚĞŐŽŝŶŐĐŽŶĐĞƌŶďĂƐŝƐŽĨĂĐĐŽƵŶƚŝŶŐƵŶůĞƐƐŝƚŝƐŝŶĂƉƉƌŽƉƌŝĂƚĞƚŽĚŽƐŽ͘ Grantor its own direction. An arrangement within the scope of this standard typically involves an operator constructing the asset used to provide the public service or upgrading the assets and operating and maintaining the assets for a specified period of time.

In addition to the new standards and amendments above, the AASB has issued a list of other amending standards that are not effective for the current reporting period (as listed below). In general, these applicable standards include editorial and references changes that are expected to have insignificant impacts on public sector reporting. AASB 2016–8 Amendments to Australian Accounting Standards – Australian Implementation Guidance for Not-for-Profit Entities to AASB 9 and AASB 15

107 Financial Report Parks Victoria Annual Report 2017–18 108

 Auditor’s Report

Auditor’s ƐƌĞƋƵŝƌĞĚďLJƚŚĞƵĚŝƚĐƚϭϵϵϰ͕ŵLJƌĞƐƉŽŶƐŝďŝůŝƚLJŝƐƚŽĞdžƉƌĞƐƐĂŶŽƉŝŶŝŽŶŽŶƚŚĞĨŝŶĂŶĐŝĂů ƌĞƐƉŽŶƐŝďŝůŝƚŝĞƐ ƌĞƉŽƌƚďĂƐĞĚŽŶƚŚĞĂƵĚŝƚ͘DLJŽďũĞĐƚŝǀĞƐĨŽƌƚŚĞĂƵĚŝƚĂƌĞƚŽŽďƚĂŝŶƌĞĂƐŽŶĂďůĞĂƐƐƵƌĂŶĐĞ ĨŽƌƚŚĞĂƵĚŝƚ ĂďŽƵƚǁŚĞƚŚĞƌƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚĂƐĂǁŚŽůĞŝƐĨƌĞĞĨƌŽŵŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚ͕ǁŚĞƚŚĞƌ ŽĨƚŚĞĨŝŶĂŶĐŝĂů due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable ƌĞƉŽƌƚ ĂƐƐƵƌĂŶĐĞŝƐĂŚŝŐŚůĞǀĞůŽĨĂƐƐƵƌĂŶĐĞďƵƚŝƐŶŽƚĂŐƵĂƌĂŶƚĞĞƚŚĂƚĂŶĂƵĚŝƚĐŽŶĚƵĐƚĞĚŝŶ ĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞƵƐƚƌĂůŝĂŶƵĚŝƚŝŶŐ^ƚĂŶĚĂƌĚƐǁŝůůĂůǁĂLJƐĚĞƚĞĐƚĂŵĂƚĞƌŝĂů ŵŝƐƐƚĂƚĞŵĞŶƚǁŚĞŶŝƚĞdžŝƐƚƐ͘DŝƐƐƚĂƚĞŵĞŶƚƐĐĂŶĂƌŝƐĞĨƌŽŵĨƌĂƵĚŽƌĞƌƌŽƌĂŶĚĂƌĞ ĐŽŶƐŝĚĞƌĞĚŵĂƚĞƌŝĂůŝĨ͕ŝŶĚŝǀŝĚƵĂůůLJŽƌŝŶƚŚĞĂŐŐƌĞŐĂƚĞ͕ƚŚĞLJĐŽƵůĚƌĞĂƐŽŶĂďůLJďĞĞdžƉĞĐƚĞĚ ƚŽŝŶĨůƵĞŶĐĞƚŚĞĞĐŽŶŽŵŝĐĚĞĐŝƐŝŽŶƐŽĨƵƐĞƌƐƚĂŬĞŶŽŶƚŚĞďĂƐŝƐŽĨƚŚŝƐĨŝŶĂŶĐŝĂůƌĞƉŽƌƚ͘ ƐƉĂƌƚŽĨĂŶĂƵĚŝƚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞƵƐƚƌĂůŝĂŶƵĚŝƚŝŶŐ^ƚĂŶĚĂƌĚƐ͕/ĞdžĞƌĐŝƐĞ ƉƌŽĨĞƐƐŝŽŶĂůũƵĚŐĞŵĞŶƚĂŶĚŵĂŝŶƚĂŝŶƉƌŽĨĞƐƐŝŽŶĂůƐĐĞƉƚŝĐŝƐŵƚŚƌŽƵŐŚŽƵƚƚŚĞĂƵĚŝƚ͘/ĂůƐŽ͗

• ŝĚĞŶƚŝĨLJĂŶĚĂƐƐĞƐƐƚŚĞƌŝƐŬƐŽĨŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚ͕ǁŚĞƚŚĞƌ ĚƵĞƚŽĨƌĂƵĚŽƌĞƌƌŽƌ͕ĚĞƐŝŐŶĂŶĚƉĞƌĨŽƌŵĂƵĚŝƚƉƌŽĐĞĚƵƌĞƐƌĞƐƉŽŶƐŝǀĞƚŽƚŚŽƐĞƌŝƐŬƐ͕ ĂŶĚŽďƚĂŝŶĂƵĚŝƚĞǀŝĚĞŶĐĞƚŚĂƚŝƐƐƵĨĨŝĐŝĞŶƚĂŶĚĂƉƉƌŽƉƌŝĂƚĞƚŽƉƌŽǀŝĚĞĂďĂƐŝƐĨŽƌŵLJ ŽƉŝŶŝŽŶ͘dŚĞƌŝƐŬŽĨŶŽƚĚĞƚĞĐƚŝŶŐĂŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚƌĞƐƵůƚŝŶŐĨƌŽŵĨƌĂƵĚŝƐ ŚŝŐŚĞƌƚŚĂŶĨŽƌŽŶĞƌĞƐƵůƚŝŶŐĨƌŽŵĞƌƌŽƌ͕ĂƐĨƌĂƵĚŵĂLJŝŶǀŽůǀĞĐŽůůƵƐŝŽŶ͕ĨŽƌŐĞƌLJ͕ ŝŶƚĞŶƚŝŽŶĂůŽŵŝƐƐŝŽŶƐ͕ŵŝƐƌĞƉƌĞƐĞŶƚĂƚŝŽŶƐ͕ŽƌƚŚĞŽǀĞƌƌŝĚĞŽĨŝŶƚĞƌŶĂůĐŽŶƚƌŽů͘ • ŽďƚĂŝŶĂŶƵŶĚĞƌƐƚĂŶĚŝŶŐŽĨŝŶƚĞƌŶĂůĐŽŶƚƌŽůƌĞůĞǀĂŶƚƚŽƚŚĞĂƵĚŝƚŝŶŽƌĚĞƌƚŽĚĞƐŝŐŶ ĂƵĚŝƚƉƌŽĐĞĚƵƌĞƐƚŚĂƚĂƌĞĂƉƉƌŽƉƌŝĂƚĞŝŶƚŚĞĐŝƌĐƵŵƐƚĂŶĐĞƐ͕ďƵƚŶŽƚĨŽƌƚŚĞƉƵƌƉŽƐĞ ŽĨĞdžƉƌĞƐƐŝŶŐĂŶŽƉŝŶŝŽŶŽŶƚŚĞĞĨĨĞĐƚŝǀĞŶĞƐƐŽĨƚŚĞĂƵƚŚŽƌŝƚLJΖƐ ŝŶƚĞƌŶĂůĐŽŶƚƌŽů • ĞǀĂůƵĂƚĞƚŚĞĂƉƉƌŽƉƌŝĂƚĞŶĞƐƐŽĨĂĐĐŽƵŶƚŝŶŐƉŽůŝĐŝĞƐƵƐĞĚĂŶĚƚŚĞƌĞĂƐŽŶĂďůĞŶĞƐƐŽĨ ĂĐĐŽƵŶƚŝŶŐĞƐƚŝŵĂƚĞƐĂŶĚƌĞůĂƚĞĚĚŝƐĐůŽƐƵƌĞƐŵĂĚĞďLJƚŚĞŽĂƌĚ • ĐŽŶĐůƵĚĞŽŶƚŚĞĂƉƉƌŽƉƌŝĂƚĞŶĞƐƐŽĨƚŚĞŽĂƌĚ’s use of the going concern basis of ĂĐĐŽƵŶƚŝŶŐĂŶĚ͕ďĂƐĞĚŽŶƚŚĞĂƵĚŝƚĞǀŝĚĞŶĐĞŽďƚĂŝŶĞĚ͕ǁŚĞƚŚĞƌĂŵĂƚĞƌŝĂů ƵŶĐĞƌƚĂŝŶƚLJĞdžŝƐƚƐƌĞůĂƚĞĚƚŽĞǀĞŶƚƐŽƌĐŽŶĚŝƚŝŽŶƐƚŚĂƚŵĂLJĐĂƐƚƐŝŐŶŝĨŝĐĂŶƚĚŽƵďƚŽŶ ƚŚĞĂƵƚŚŽƌŝƚLJΖƐ ĂďŝůŝƚLJƚŽĐŽŶƚŝŶƵĞĂƐĂŐŽŝŶŐĐŽŶĐĞƌŶ͘/Ĩ/ĐŽŶĐůƵĚĞƚŚĂƚĂŵĂƚĞƌŝĂů uncertainty exists, I am required to draw attention in my auditor’s reportƚŽƚŚĞ ƌĞůĂƚĞĚĚŝƐĐůŽƐƵƌĞƐŝŶƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŽƌ͕ŝĨƐƵĐŚĚŝƐĐůŽƐƵƌĞƐĂƌĞŝŶĂĚĞƋƵĂƚĞ͕ƚŽ ŵŽĚŝĨLJŵLJŽƉŝŶŝŽŶ͘DLJĐŽŶĐůƵƐŝŽŶƐĂƌĞďĂƐĞĚŽŶƚŚĞĂƵĚŝƚĞǀŝĚĞŶĐĞŽďƚĂŝŶĞĚƵƉƚŽ the date of my auditor’s report. However, future events ŽƌĐŽŶĚŝƚŝŽŶƐŵĂLJĐĂƵƐĞƚŚĞ ĂƵƚŚŽƌŝƚLJ ƚŽĐĞĂƐĞƚŽĐŽŶƚŝŶƵĞĂƐĂŐŽŝŶŐĐŽŶĐĞƌŶ͘ • ĞǀĂůƵĂƚĞƚŚĞŽǀĞƌĂůůƉƌĞƐĞŶƚĂƚŝŽŶ͕ƐƚƌƵĐƚƵƌĞĂŶĚĐŽŶƚĞŶƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚ͕ ŝŶĐůƵĚŝŶŐƚŚĞĚŝƐĐůŽƐƵƌĞƐ͕ĂŶĚǁŚĞƚŚĞƌƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚƌĞƉƌĞƐĞŶƚƐƚŚĞƵŶĚĞƌůLJŝŶŐ ƚƌĂŶƐĂĐƚŝŽŶƐĂŶĚĞǀĞŶƚƐŝŶĂŵĂŶŶĞƌƚŚĂƚĂĐŚŝĞǀĞƐĨĂŝƌƉƌĞƐĞŶƚĂƚŝŽŶ͘ /ĐŽŵŵƵŶŝĐĂƚĞǁŝƚŚƚŚĞŽĂƌĚƌĞŐĂƌĚŝŶŐ͕ĂŵŽŶŐŽƚŚĞƌŵĂƚƚĞƌƐ͕ƚŚĞƉůĂŶŶĞĚƐĐŽƉĞĂŶĚ ƚŝŵŝŶŐŽĨƚŚĞĂƵĚŝƚĂŶĚƐŝŐŶŝĨŝĐĂŶƚĂƵĚŝƚĨŝŶĚŝŶŐƐ͕ŝŶĐůƵĚŝŶŐĂŶLJƐŝŐŶŝĨŝĐĂŶƚĚĞĨŝĐŝĞŶĐŝĞƐŝŶ ŝŶƚĞƌŶĂůĐŽŶƚƌŽůƚŚĂƚ/ŝĚĞŶƚŝĨLJĚƵƌŝŶŐŵLJĂƵĚŝƚ͘

 

 D>KhZE WĂƵůDĂƌƚŝŶ ϮϴƵŐƵƐƚϮϬϭϴ ĂƐĚĞůĞŐĂƚĞĨŽƌƚŚĞƵĚŝƚŽƌͲ'ĞŶĞƌĂůŽĨsŝĐƚŽƌŝĂ

 109 Financial Report Parks Victoria Annual Report 2017–18 110

Ϯ Parks Victoria is a world-class park service ensuring healthy parks for healthy people.

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