Mount Buller and Mount Stirling Alpine Resort Management Board Annual Report 2008–09
mtbuller.com.au mtstirling.com.au
Mt Buller & Mt Stirling Alpine Resort Management Board ABN 44 867 982 534 Buller Community Centre Mt Buller Victoria 3723 Telephone: 03 5777 6077 Facsimile: 03 5777 6219 Email: [email protected]
ARMB_ar_2009_cover_artwork.indd 1 4/2/10 5:50:44 PM In accordance with the Financial Management Act 1994, I am pleased to present the Report of Operations for the Mount Buller and Mount Stirling Alpine Resort Management Board for the year ending 31 October 2009.
John W Dyson Chairman Mount Buller and Mount Stirling Alpine Resort Management Board 09 February 2010 Contents
Overview Message from the Chairman 2 Chief Executive Officer’s Report 4 Introduction 6 Year at a Glance 7 Corporate Governance 8 Organisational Structure 10 Management Team 12
Strategic Direction Overview 16 Climate Change 17 Vibrant Resorts 18 Resort Use and Visitation 19 Development at the Resorts 21 Environmental Management 23 Land Stewardship 26
Appendices Risk Attestation 28 Disclosure Index 29 Information 30
Financial Report 2008–09 Financial Statements 33
Annual Report 2008–09 .01 Overview Message from the Chairman
2009 Snow Season The 2009 snow season was marked by fi ckle As at 31 October 2009, the ARMB holds cash In addition, the Tidy Towns Judge’s weather, wind and rain, with a number of large reserves of $6.9 million. In 2008–09, capital spend Commendation was presented to the ARMB for snowfalls. An unseasonal fall in late April allowed was restricted to $980,000 compared with $2.2 the Mountain Pygmy-possum Recovery Plan, the the Mount Buller Resort to open for a weekend million in 2007–08, and cash reserves increased guiding document for the continued management of skiing on May 2–3, well before the traditional by $1.2 million. These cash reserves have been and protection of this endangered alpine species. Queen’s Birthday opening weekend. A large earmarked for investment in infrastructure and snowfall in late September, when 57cm of snow development as identifi ed by the Mount Buller Communication and consultation fell during a 48-hour period, was also benefi cial. Resort Master Plan, when completed. The ARMB has continued to work on improving Despite the fi ckle weather and lack of natural snow, communication and consultation with our snowmaking ensured visitors had a quality snow Environmental awards stakeholder groups. We have begun issuing email experience and visitor numbers remained strong, In June and November 2009, the ARMB received alerts highlighting Resort developments, events with attendance 14% over the ten-year average. three environmental awards in recognition of our and general announcements, and continued to contribution and commitment to environmental broaden the appeal of the community forums held Mount Stirling stewardship of the alpine area. at Mount Buller and Melbourne. Mount Stirling also had a challenging season due to low snowfalls, with visitors required to walk In June, we received the United Nations World Community forums facilitate direct dialogue several kilometres from Telephone Box Junction Environment Day Award for the Best Specifi c between the ARMB and stakeholders, including (TBJ) to the snow line. Later in the season Stirling Environmental Initiative for the Mountain feedback, questions and community concerns. At Experience assisted by providing transport from Pygmy-possum Habitat Re-creation project, the September and December forums, the ARMB TBJ. Stirling Experience also constructed a hard a joint ARMB-Buller Ski Lifts (BSL) initiative. acknowledged a number of ski clubs that have tented facility at Cricket Pitch, which was well This fi ve-year project saw 0.25 hectares of been on Mount Buller for over 50 years and made supported by school groups and snow campers. boulderfi eld habitat re-created linking previously a special presentation to Bob Fleming (Kofl ers) fragmented habitat patches. Two years from and John Perks (Arlberg) for their long-term Financial performance completion, female Mountain Pygmy-possums contribution to the community The ARMB recorded a net profi t of $538,000 and their young were utilising the re-created ($488,000 excluding land release income) for habitat patches – a great result for endangered Mount Buller Resort Master Plan the year. This result is an improvement on last species management within the Resort. The ARMB continues to work closely with BSL and year’s $130,000 loss, which was impacted by other major stakeholders to develop the Resort the $551,000 write-off of the old administration In November, we received the Tidy Towns Master Plan. Progress over the last 12 months has building. The administration building was Sustainable Communities Award for the Water been limited, as the ARMB has been focused on demolished in 2008 in favour of improvements Reuse Project, which saw Mount Buller become fi nalising fi nancing for the project. We can now to the Mount Buller Village snow play and the fi rst alpine resort in the world to implement a confi rm matching funding of $75,000 from the tobogganing area. The 2008–09 surplus was system that uses recycled water for snowmaking. Victorian Government (Regional Development largely due to approximately $315,000 reduction The project has resulted in water savings of Victoria and Tourism Victoria), in addition to funds in annual depreciation, following the revision two million litres per day and 30% increased contributed by BSL and the ARMB. We expect of the useful lives of roads and car parks snowmaking capacity. to appoint the master planner in early 2010, with infrastructure on the mountain. completion anticipated in late 2010.
02. Mt Buller and Mt Stirling Alpine Resort Management Board Capital works for 2010 Summer 2010 The ARMB is in a strong fi nancial position and Resorts Coordinating Council. The Minister has The ARMB continues to be committed to we plan to use our fi nancial resources to improve reconfi rmed that alpine resorts will continue to be developing our Resorts into year-round destinations. the Resorts’ amenities and ensure we provide managed by individual Alpine Resort Management We have developed a busy summer period full of stakeholders and visitors alike with a quality Boards and identifi ed a number of initiatives and activities and events, and we encourage all of our experience. While the ARMB expects the Resort opportunities for them to work cooperatively. stakeholders to participate in these events. Master Plan to identify initiatives and projects for completion over the next few years, we continue Departure of CEO, Phil Nunn The most signifi cant project for summer 2010 is working on key development projects, including: Phil Nunn, the ARMB CEO since 2005, departed the commencement of Stage 3 of the cross- the ARMB in September 2009. We would like country mountain bike trail upgrade. Construction > Preliminary work on a new water storage to thank Phil for his contribution to the ARMB is now underway, and includes a new nine- that will supplement water available for over the last seven years in his roles of CEO and kilometre course that completes the link between snowmaking; Business Manager, and wish him all the best for Mount Buller and neighbouring Mount Stirling. > Seek Federal and State Government funding his next stage of life. This trail will enable riders to venture from summit for the construction of the Mount Buller-Mount to summit, while a new mountain biking Skills Park Stirling Link Road; and New CEO for the ARMB will provide a chance for riders to test and improve > Mountain Biking Strategy implementation, In November 2009, the ARMB announced the their ability on a variety of technical features. Stage including trails linking Mount Buller and Mount appointment of John Huber as the new CEO for 3 will be ready for use in summer 2011. Stirling (Stage 3 completion, summer 2011). the organisation, commencing in January 2010. John comes from 12 years with Hamilton Island Acknowledgements Mount Stirling Strategic Plan Enterprises as General Manager - Operations and On behalf of the ARMB and the Mount Buller In consultation with stakeholders, the ARMB has Commercial. Originally from Colorado USA, he is and Mount Stirling stakeholders I would like to commenced development of the Mount Stirling passionate about the mountains and we all look thank Tony Petersen for fi lling the role of Acting Strategic Management Plan, which is designed forward to welcoming him to the ARMB. CEO following Phil Nunn’s departure. The ARMB to complement the existing ecotourism and has a strong and committed executive team who adventure offering at Mount Stirling. The draft New board to be appointed continue to ensure that Mount Buller and Mount strategy will be available for public feedback Minister for Environment and Climate Change, Stirling remain premier alpine destinations. and fi nalisation in January 2010. Gavin Jennings MLC, has called for applications for new board members for the ARMB. At this I would also like to thank our key stakeholders The ARMB has committed to constructing a stage the Minister expects to announce the new on Mount Buller and Mount Stirling, in particular number of refuges in the Mount Stirling Resort board members in April 2010, when the current Stirling Experience, BSL, the Chamber of during 2010, designed to provide basic shelter for board term expires. Commerce, Ratepayers Association and Race Club. the mix of users at Mount Stirling including skiers, hikers, horse riders and mountain bike riders. On a personal note, although I have decided not Lastly, thank you to my fellow board members for to renominate for the board, I plan to continue to their support and efforts during the year – and over State Services Authority review be involved in our community. I have thoroughly the last six years. The directors contribute a huge During the year the Minister for Environment enjoyed being involved with the ARMB for the last amount of their time to the ARMB and the Resorts. and Climate Change released the State Services six years and wish the new board and the Chair all Authority Review of the management and the best for the future. governance structure of the fi ve Alpine Resort Management Boards and the Alpine John W Dyson Chairman
Annual Report 2008–09 .03 Overview Report from the Chief Executive Officer
While the Australian Alps are renowned for their changeable weather, 2008–09 will be remembered at Mount Buller and Mount Stirling for many other significant changes. The most visible change was the Resort rebranding exercise undertaken in conjunction with BSL, which saw the introduction of a new logo on Resort uniforms, vehicles, marketing collateral and infrastructure.
Change in CEO Phil Nunn completed his tenure as CEO on Notwithstanding the impacts of the GFC and the > Official launch of the Mount Buller Community 30 September 2009 and has since established bushfires, the ARMB continued to invest in public Health Service, (operated in conjunction with his own consultancy. We wish Phil every infrastructure, facilities, services and events as Mansfield District Hospital and supported with success in his new venture and acknowledge his part of its strategy to continue broadening the funding provided by the Department of Human contribution to Mount Buller and Mount Stirling visitor appeal of the Resorts. In 2008–09 these Services) which offers a range of services over four years as CEO and three years prior to initiatives included: including health checks, vaccinations and first that as Business Manager. aid to residents, staff and visitors outside the > Development and installation of multilingual snow season. Phil’s departure led to my appointment to the collateral and signage; position of Acting CEO until a new appointment > Expansion and re-grading of the Village Season 2009 could be made. The Board has appointed John Toboggan Slope, and installation of snowmaking Mount Buller benefited from unseasonal weather Huber from Colorado USA, via Hamilton Island, infrastructure. This project included the in April, which saw a dump of 35cm of snow Queensland. John commences his new role expansion of the slope to an area of prompting BSL and the ARMB to open the ski in January 2010 and will no doubt bring a new approximately 4000 square metres, re-grading fields for the weekend of 2-3 May – the earliest the perspective to the ARMB. to provide a more consistent gradient with lifts have ever been opened for skiing. Changeable larger runoff areas, together with installation of weather was subsequently experienced throughout Resorts Development new safety fences, a new galvanised perimeter winter, but visitation to Mount Buller remained The Global Financial Crisis (GFC) had an fence and rock work and new concrete aprons strong despite the GFC with 504,000 visitor days – immediate impact on summer construction abutting the existing Tourist Road and Summit 4% higher than 2007–08, and 14% higher than the activity at Mount Buller with very few projects Road. These substantial improvements 10-year average. Mount Buller’s extensive snow undertaken in 2008–09. This reduced activity combine to reduce previously identified risks making infrastructure, operated by BSL using water paled into insignificance against the devastating as well as providing a significantly enhanced supplied from the ARMB’s snowmaking dam, physical, financial and emotional impacts facility with greater public appeal and usability enabled consistent skiing conditions whenever experienced across large areas of regional and associated flow-on benefits to resort natural snow cover diminished. The 2009 snow Victoria as a consequence of the disastrous stakeholders, particularly commercial operators; season ended as it had started, with a dump of Black Saturday bushfires. Fortunately Mount > Development of a sustainable multi-purpose 57cm of snow in 48 hours on 25-26 September Buller and Mount Stirling escaped this event cross-country trail network for walkers, runners prompting BSL and the ARMB to extend the ski physically unscathed, but summer visitation was and mountain bike riders, from Mount Buller season for a week until 4 October – bringing significantly affected. Village to Corn Hill and Mount Stirling; and another 5,350 visitors to the Resort.
04. Mt Buller and Mt Stirling Alpine Resort Management Board Table 1 2008–09 2007–08 Change Key Financial Data $'000 $'000 $'000
Operating surplus/(defi cit) 538 (130) 668 Total operating expenditure 10,642 11,743 (1,101) Gas and electricity 516 684 (168) Finance costs 164 312 (148) (Gain)/loss on disposal of assets 1 490 (489) Health 224 568 (344) Depreciation 1,839 2,095 (256) Staff costs 2,729 2,952 (223) Cash on hand 6,903 5,698 1,205
Financial Results Acknowledgements Meanwhile Mount Stirling’s commercial operator, The ARMB’s fi nancial performance for the 2008–09 The role of the ARMB involves, among other Stirling Experience, addressed the fi ckle conditions fi nancial year improved signifi cantly compared things, satisfying the desires, expectations and by providing transport between Telephone Box to the previous year, recording a net profi t of needs of its many stakeholders and in that regard Junction and the snow line. Stirling Experience $538,000 ($488,000 excluding land release I acknowledge the input of the Department of also introduced a winter camp facility at the income). Income from gate entry, site rental Sustainability and Environment (DSE), Department Cricket Pitch to enhance Mount Stirling’s winter and service charges all increased slightly, while of Planning and Community Development (DPCD), wilderness experience for both experienced and signifi cant reductions were experienced in the sale BSL, the Chamber of Commerce, Ratepayers novice cross-country skiers. of rights to lease and develop land, government Association, Stirling Experience, and many more. grants and interest income. The current year Priorities ahead surplus result was largely assisted by a revision of Board members devote signifi cant amounts The ARMB intends to address a number of the useful lives of the ARMB’s roads and car parks of time attending to Board business and priorities in 2009-10 including: infrastructure, resulting in a reduction in annual their commitment must be recognised and depreciation of approximately $315,000. acknowledged. I would like to thank the Board > Finalising a new Passenger Services contract for providing me with the opportunity to manage with Mansfi eld-Mount Buller Bus Lines; The ARMB held cash reserves of $6.9 million as at ARMB operations, administration and staff as > Progressing the development of a Resort 31 October 2009. Included in these cash balances Acting CEO. We have a dedicated and professional Master Plan in conjunction with BSL and other are amounts set aside for the Snow Drought team who I consider it a privilege to have led, Resort stakeholders; Fund, $600,000, Debt Repayment Fund, $1 million and I sincerely thank everyone who has provided > Continuing investigations into the construction and Capital Improvement Fund, $3 million. These me their unconditional support throughout a of a new snowmaking dam; funds have been established to comply with the challenging period. The common thread linking all > Finalising a new collective enterprise agreement Minister’s Alpine Reform Package program, the these people is the passion and commitment they for ARMB staff; and aim of which is to improve fi nancial governance invest in making Mount Buller and Mount Stirling > Obtaining a planning permit for construction of and thus the fi nancial sustainability of the Alpine better places for people to visit, work, rest, play the Buller-Stirling Link Road. Resort Management Boards. and live, while protecting the unique attributes which attract us all here in the fi rst place.
Tony Petersen Acting Chief Executive Offi cer
Annual Report 2008–09 .05 Overview Introduction
The Mount Buller and Mount Stirling Alpine Resort Management Board (ARMB) is charged with the responsibility to manage the Mount Buller and Mount Stirling Alpine Resorts pursuant to the Alpine Resorts (Management) Act 1997 (the Act).
Mission The ARMB is committed to fulfi lling its role within The ARMB will manage the Mount Buller and The ARMB will deliver its core functions and the context of the Victorian Government’s Alpine Mount Stirling Alpine Resorts in a socially, services in a cost-effective manner and develop Resorts 2020 Strategy. The ARMB recognises its economically and environmentally sustainable strategies and activities that will: stewardship responsibility for signifi cant public manner by: assets and continues to manage these assets > Ensure management and development of the in a socially, economically and environmentally > Enhancing the attractiveness of the Mount Buller Resorts is undertaken within an ecologically sustainable manner, while facilitating the public’s Resort for year round visitation and encouraging sustainable framework; ability to access and enjoy an alpine experience. recreational use within the context of sustainable > Retain a commitment to a snow tourism industry, ecological management practices; while responding to climate change issues; The ARMB bases its decision-making on triple > Attracting visitation to Mount Stirling by > Optimise year round use and visitation in a safe bottom line considerations – the social, economic providing an outstanding nature-based visitor alpine environment; and environmental impacts of the activity – as experience in a well-managed bio-diverse > Develop year round appeal of the Resorts to well as the risk management implications of its environment; and complement the natural alpine environment and decisions. > Developing the complementary attributes of the create a sense of place for visitors and for the two Resorts through integrated management, community; Vision development and marketing. > Deliver a sustainable, viable and vibrant alpine The aspirational vision for the Mount Buller and business through the development of strategies Mount Stirling Resorts is to be the most attractive Objectives and Undertakings to increase economic activity and enjoyment of and popular alpine destination in Victoria. The ARMB is committed to excellence in fi nancial all user groups; and reporting. Cornerstones of its effective governance > Manage the Resorts for all Victorians within an are thorough assessment, monitoring and review accountable framework and in cooperation with of fi nancial and operational risk. the community.
06. Mt Buller and Mt Stirling Alpine Resort Management Board Year at a Glance
Financial Summary 2004–05 2005–06 2006–07 2007–08 2008–09 Post Balance Sheet Events $‘000 $‘000 $‘000 $‘000 $‘000 There have been no events subsequent to Operating Revenue: the year that signifi cantly impact on operations > Gate Entry 2,404 1,889 3,168 3,207 3,391 in future years. > Site rental fees 2,634 2,797 2,860 3,287 3,529 > Service Charges 2,732 2,990 3,023 2,929 3,069 > Sale of rights to lease Consultants Engaged and develop Crown land 947 1,287 113 598 50 There were 24 projects undertaken for the > Government funding – 20 33 276 69 ARMB by consultants during 2008–09. The > Other revenue 1,010 988 1,146 1,805 1,074 total costs of these assignments were $455,282 Operating expenditure 8,831 8,758 8,854 11,743 10,642 (2007–08: $505,267). Other economic Flows* – – – (489) (2) Comprehensive result 896 1,213 1,489 (130) 538 Total assets 137,811 140,899 197,202 197,160 197,335 One consultant, Russell Kennedy Solicitors, Total liabilities 811 1,633 4,636 4,724 4,361 received total remuneration in excess of $100,000. Net assets 137,000 139,266 192,566 192,436 192,974 Details of the projects and expenditure are shown Assets comprise: in Note 24 to the Financial Statements. > Land 106,035 106,035 150,313 150,313 150,313 > Other non-fi nancial assets* – – – 40,199 39,273 Signifi cant changes in fi nancial position > Financial assets* – – – 6,648 7,749 during the year and major changes or factors * comparative data reclassifi ed from “operating expenditure” to “other economic fl ows” to affecting performance comply with the revised AASB 101 Presentation of Financial Statements for 2007–08 only. The increase in site rental fees is a result of Item / Key Performance Indicator 2007–08 2008–09 the Minister’s determination of fee increases in Environmental Quality relation to ARC/VSA leases, and also general CPI Number of readings within EPA guidelines increases as per individual lease agreements. > Sewage treatment plant total phosphorus 7/7 5/6 > Sewage treatment plant total nitrogen 6/7 3/6 The decrease in operating expenditure is Percentage of total waste recycled 33% 33% primarily due to: Social Responsibility > Reassessment of the useful lives of roads Percentage of fi rst time visitors 16% 33% and car parks infrastructure from an average of Percentage of returning visitors 84% 67% 30 years to 50 years. This had reduced annual Average number of nights on mountain depreciation by approximately $315,000; (based on gate entry) 1.77 2.4 Total snow making water used (megalitres) 141 234 > Reductions in salaries and wages due to a Total domestic water used (megalitres) 285 275.5 strong focus on staff taking their annual leave Total water used for fi re fi ghting (megalitres) 0 0 entitlements, and a reduction in Equivalent Total winter passengers using free shuttles 454,424 610,746 Full Time (EFT) head count, including no additional Mount Stirling patrol callouts ** 18 16 staff to fi ll the Senior Manager – Property and Economic Viability Planning role for the month of October while Number of winter visitors 274,321 281,997 fi lling the Acting CEO role, redundancy of one Number of summer visitors 162,027 124,095 position, and the Finance and Risk Manager Number of visitor days (winter) 483,978 503,972 returning to part time work after taking maternity Number of Mount Stirling winter visitors ** 6,016 4,603 leave from a previously full time role; Number of Mount Stirling visitor days (winter) ** 6,032 5,425 Number of vehicles through the gate (winter) 64,405 63,513 > Reduced interest expense of $148,000 Total invested by private developers ($’000) 30,000 5,000 predominantly due to reduced interest and Capital Works Expenditure ($’000) 2,341 998 discount rates; and Number of lease holders 176 176 > Savings under a new Mount Buller Medical Number of sub-leases transferred 61 48 Centre contractual arrangement of approximately Number of ‘hot beds’ 1,566 1,587 $344,000 (offset by a loss of Medical Centre Number of ‘cold beds’ 6,316 6,650 related income of approx $380,000). Mount Buller maximum snow depth (cm) 126 75 Mount Stirling maximum snow depth (cm) 118 45 Total value of approved planning permits ($’000) 15,500 6,350 Annual Report 2008–09 .07 ** Figures refer to Mount Stirling only
Overview Corporate Governance
The ARMB was established in 2004 by an amendment to the Act, Functions of the ARMB As set out in Section 38 of the Act, the specifi c succeeding the Mount Buller Resort Management Board and the functions of the ARMB are to: Mount Stirling Alpine Resort Management Board. The amendment > Act as a Committee of Management of any Crown details key aspects of ARMB corporate governance practice. Land deemed to be permanently reserved under the Crown Land (Reserves) Act 1978 in the Resorts; > Contribute, together with Tourism Victoria and the ARCC, to the overall promotion of alpine resorts; > Develop a tourism and marketing strategy for and to promote the Resorts, and collect and Statutory reporting Establishment of the ARMB expend voluntary contributions from commercial The ARMB has been created as a statutory The ARMB operates under the provisions of the undertakings in the Resorts for this purpose; authority and it is responsible directly to Act and is established: > Provide a range of servicesin the nature of: Gavin Jennings MLC, Minister for Environment > As a Body Corporate with perpetual succession; – garbage disposal; and Climate Change, for a range of statutory > With its own Common Seal; – water supply; requirements. > With the power to sue or be sued; – gas; > To acquire, hold and dispose of real and – drainage; Ultimately, the Minister is responsible for Crown personal property; and – sewerage; Land management and delegates his authority > To carry out its functions as a Body Corporate – electricity; to the ARMB to carry out Government policy in may do at law. – roads; relation to the use of Crown Land. The ARMB – fi re protection; undertakes to adopt best practice in all activities, The ARMB acts on behalf of the Crown and – snowmaking; reporting to the Minister through the Corporate accepts directions or guidelines from the Minister > Charge contributions for the provision of those Plan, Annual Reports and Quarterly Reports. regarding its performance and the discharge of its services; functions, duties or power. > Collect fees prescribed by the Regulations for The ARMB also complies with the directions of the Resorts; the Minister for Finance and acts as a referral Appointment of Board Members > Attract investment for the improvement of the authority for statutory planning matters. The Minister for Environment and Climate Resorts; Change appoints Members of the Board, based > Carry out any other function conferred on the on the administrative, managerial, fi nancial, ARMB under this or any other Act; environmental, legal, marketing, sporting and > Plan for the development, promotion, tourism skills necessary to run the Resort. management and use of the Resorts; > Manage the Resorts in accordance with the Board members are appointed for a period of object of the Act as amended; three years and are eligible for reappointment. > Undertake research into alpine resort issues; The Minister for Environment and Climate Change > Contribute to and support the operation of the ARCC; appoints one member to be chairperson and > Prepare and implement a Strategic one to be deputy chairperson. Remuneration for Management Plan for the Resorts; and Board members is determined by the Victorian > Expend or apply revenue of the ARMB in Government guidelines. accordance with a direction of the Minister under Section 36(1A).
08. Mt Buller and Mt Stirling Alpine Resort Management Board Resort management Corporate planning The duties and responsibilities of the ARMB Chief As required under Section 53 of the Act, the Executive Offi cer are to: ARMB develops and lodges its Corporate Plan, > Carry out the Board’s directions; including a Statement of Corporate Intent and a > Manage day to day operations of the Resorts in Business Plan. accordance with approved policies; > Manage and direct the organisation to achieve These plans outline key strategic directions of the optimum profi tability and effective use of ARMB, including: business assets and human resources; and > Mitigate the impact of climate change; > Develop and review policy, and plan and control > Increase year-round Resort use and visitation; major functions relating to the operation and > Develop year-round Resorts; administration of the organisation through > Encourage sustainable, year-round subordinate executives. economic growth; > Proactively manage the environment; and Guiding principles > Provide stewardship of Crown Land. The ARMB is committed to: > Valuing staff and contractors; Risk management > Providing outstanding service to clients; The ARMB is committed to ensuring that all > Continually striving for innovation and people affected by the activities associated with improvement; Resort management are protected from risks to > Ensuring that the ARMB is seen as a safety, health and wellbeing, and loss or damage cooperative, responsive, effi cient and to property. The ARMB has a Risk Management effective organisation which consults Policy and develops risk management systems to appropriately in carrying out its role; assist staff to understand their responsibilities and > Responsible environmental management create a culture of safety. practices; and > Effectively discharging the powers entrusted under legislation and meeting statutory obligations and government objectives relating to equal opportunity, occupational health and safety, and standards of ethics and accountability.
Annual Report 2008–09 .09 Overview Organisational structure
John W Dyson Don Cummins Andrew Abercrombie Judy Dixon Bruce Dowding Susan Hocking Stuart Worn Chairman Deputy Chairman
John W Dyson Judy Dixon Susan Hocking BSc, MBA, MAICD, F Fin B.Ed, Grad Dip Mgmt, BEc (Hons) MA FAICD FAIE Chairman. Appointed 9 June 2004, Cert IV Workplace Training & Assessment Appointed 9 June 2004, reappointed 25 April 2007 reappointed 25 April 2007 Appointed 9 June 2004, reappointed 25 April 2007 > Chair, Risk, Audit and Finance Committee and > Chair, Remuneration Committee and Member, > Chair, Environmental Management Review Member, Remuneration Committee Risk, Audit and Finance Committee, and Leasing Committee and Member, Leasing and > Former Director, Victorian Energy Networks and Planning Committee Planning Committee Corporation > Member, ARCC > Member, Board of Alpine Resorts Tourism > Former Director, Transend Networks > Investment Principal, Starfi sh Ventures Pty Ltd (BART) > Former Manager, Project Facilitation, > Former Chairman, Australian Private > Destination Development Offi cer, Tourism Queensland Equity & Venture Capital Association Ltd Mansfi eld Shire Council > Fellow, Australian Institute of Company Directors > Director, JADE Comm Don Cummins > Fairley Fellow, Goulburn Murray Stuart Worn BEc, B.Ed, PG Dip (Asian Studies), Community Leadership Program MBA, BAppSc, ADipEng, FAICD, MISA, MPIA Dip. Teaching, GAICD Appointed 25 April 2007 Deputy Chairman. Appointed 9 June 2004, Bruce Dowding > Member, Leasing and Planning Committee, reappointed 25 April 2007 FCA Environmental Review Committee and Resorts > Chair, Leasing and Planning Committee Appointed 1 May 1998, reappointed 28 April 2001, Development Committee > Member, Environmental Management 9 June 2004 and 25 April 2007 > Former Vice President, Victorian Snowsports Review Committee and Resorts > Member, Risk, Audit and Finance Committee Association Development Committee > Member, Mansfi eld-Mount Buller Regional > Former Director, Skiing & Snowboarding Tourism Association Australia Andrew Abercrombie > Consultant/Director, Grollo Group of Companies > Executive Offi cer, Planning Institute of Australia, B.Ec LLB MBA (IMD) > Former Managing Director, Buller Ski Lifts Ltd Victorian Division Appointed 25 April 2007 > Former Member, Mount Buller Village > Member, Alkira Ski Club and Ski Club of Victoria > Member, Risk, Audit and Finance Committee, Committee Remuneration Committee and Resorts Development Committee > Barrister and Solicitor, Supreme Courts of NSW and Victoria > Founding Director, FlexiGroup Limited > Former Executive Chairman and CEO , Flexirent Capital Pty Ltd
10. Mt Buller and Mt Stirling Alpine Resort Management Board The current Board began their three-year tenure, as appointed by the State Government, on 25 April 2007.
Committee Meetings John Don Andrew Judy Bruce Susan Stuart Total Dyson Cummins Abercrombie Dixon Dowding Hocking Worn Held Board Meetings 10 8 10 10 10 10 10 10 Environmental Management Review Committee • 1 • 2 • • 2 2 Risk, Audit and Finance Committee 4 • 4 • 5 5 • 5 Leasing and Planning Committee 1 2 • 1 • • 2 2 Remuneration Committee 4 • 3 • • 4 • 4 Resorts Development Committee 2 • 2 • • • 2 2
Committee Structure The ARMB has established a number of > The scope of work and performance of both Lease applications and related decisions are committees to enable it to fulfi ll its governance external and internal auditors; considered directly by the full Board. obligations and manage the Crown Land in a > Sign off of accounting policies; and cost-effective manner. > Continuous monitoring of a framework and Remuneration Committee processes in compliance with the Financial The Remuneration Committee is responsible Environmental Management Review Committee Management Act 1994, and other laws and for providing a recommendation to the Board In 2009, the Environmental Management Review regulations that signifi cantly impact on regarding CEO remuneration and performance Committee oversaw the continued implementation ARMB code of conduct. appraisal. In addition, the Committee ensures of the Environmental Management Plan and that all remuneration and policies concerning discussed the following: A staff-based Occupational Health and Safety personnel are consistent with Victorian > Current status of the Mountain Pygmy-possum (OH&S) Committee reports through the RAFC, Government standards. on Mount Buller; providing opportunity for staff and management > Strategic Management Plan for Mount Stirling; and to identify and address workplace OH&S issues. Resorts Development Committee > World Environment Day Award. The Resorts Development Committee (RDC) Leasing and Planning Committee was established on 26 October 2008 to actively A highlight of the year was the Environmental The Leasing and Planning Committee (LPC) comprises participate in the development and implementation Forum held in September, which sought feedback Don Cummins (Chair), John Dyson, Judy Dixon and of the Mount Buller Resort Master Plan, from stakeholders and members of the public Stuart Worn. Members considered planning permit incorporating membership of the Project Steering regarding environmental management of the applications in the ARMB’s capacity as a land Group. The RDC will assist in developing projects Resorts. manager and body affected by any development for Mount Buller and Mount Stirling consistent proposals on Mount Buller and Mount Stirling, and with the objectives of the Alpine Resorts Risk, Audit and Finance Committee as a service provider and referral authority. (Management) Act 1997. The Risk, Audit and Finance Committee (RAFC) is responsible for overseeing: Information regarding applications for planning > Financial performance; permits was compiled by Tony Petersen, Property > The quality and effectiveness of ARMB and Planning Manager, who liaised with ARMB accounting, management reporting, policies planning consultants, and collated and provided and procedures; information for consideration by the LPC via email > Compliance with the Financial Directions as conference to enable provision of responses to issued by the Minister for Finance; the Responsible Authority (DPCD) for planning > Identifi cation and assessment of risk, applications. Under this system, LPC meetings management of identifi ed risks, referral of risk are only held by exception to consider unusual or matters to the Board; potentially controversial applications. Annual Report 2008–09 .11 Overview Management Team
Acting CEO (Appointed 1 October 2009) Marketing and Communications Manager Engineer Senior Manager, Property and Planning Amber Gardner Heath Chidgey Tony Petersen BMedia (Media & Comms) BE Civil (Hons) BBus (Property), MBldg, AAPI, CPV Appointed May 2006 Appointed February 2006 Appointed December 2001 Responsible for developing and implementing the Responsible for planning and development of Responsible for management of leasing, sub- strategy for Resort marketing, communications, engineering and technical operations of the leasing, licensing and statutory planning matters. events, branding, promotions, sponsorship and Resorts, including a broad range of municipal public relations initiatives. services, such as water supply, water treatment, As Acting CEO, responsible for leading the roads and Village maintenance. Heath is also professional ARMB team and enabling the Board’s Finance and Risk Manager responsible for the planning and implementation vision, direction and framework for the future Mandy Kynnersley of ARMB capital works projects. development of the Resorts in an environmentally, BBus (Acc), CA economically and socially sustainable manner. Appointed September 2007 Responsible for fi nance (planning, reporting Senior Manager, Resort Operations and analysis); audit (systems and controls); risk Hadyn Purcell management including identifi cation, assessment, Appointed May 1998 management and monitoring; emergency planning Employed on Mount Buller since 1976. including fi re and business continuity; and contract Responsible for supervision of snow clearing, management (negotiation and terms). car parking, garbage collection, sewage treatment, water reticulation and a number of capital works Environmental Manager projects related to the improvement of Resort Louise Perrin infrastructure. B.App.Sci. (Hons) Appointed October 2004 Responsible for endangered species and wildlife management, vegetation management, pest plant and animal control, track and trail development and maintenance, waste management initiatives, advice during construction and development, and education and communication programs.
12. Mt Buller and Mt Stirling Alpine Resort Management Board BOARD
Acting Executive Assistant Chief Executive Offi cer Maureen Williams Tony Petersen
Senior Manager Senior Manager Marketing & Communications Finance & Risk Resort Operations Property & Planning Manager Manager Hadyn Purcell Tony Petersen Amber Gardner Mandy Kynnersley
Environment Events Visitor HR/Payroll Engineer Property & Senior Manager Coordinator Service Offi cer Heath IT Manager Accountant Louise Katie Bowker Coordinator Julie Dolling Chidgey Jonathan Chivers Mark Evans Perrin (part time) Sarah Egan (part time)
Executive Assistant Property/Planning Media and Traffi c Fire Tower & Accounting Resort Operations Executive Assistant Marketing Control Purchasing Offi cer Ali Kirkwood Andrea Sherman Offi cer Supervisor Offi cer Leanne (maternity leave from May) (part time) Gillian Dobson Chris Deutscher Chris Deutscher Drake
Resort Operations Crew Sales & Traffi c Stephen Holland, Glenn Peck Promotion Control Chris Medcraft, Mike Richards, (HCR) Assistants Brigitte Brocklesby, Nick Davey, Emma Dolling (Casual) Andrew Hack, Paul Walsh and Casuals Museum Visitor Marg Service Franke- Offi cer Car Mt Stirling Williams Anne Walters Parking Ski Patrol Crew (Casual) (Casual) Reception & Visitor Service Offi cer Bec Selby
Visitor Service Casuals
Annual Report 2008–09 .13 Overview Management Team
Risk Management, Occupational Health & Safety Workforce Data Risk Management principles apply to all areas The ARMB’s staff-based OH&S Committee At October 31, 2009, the number of permanent of ARMB operations and include health and formally met twice during the year. During employees totalled 29 (27 EFT) compared with safety, property, environment, finance and 2008–09, activities and outcomes of the OH&S 36 (33 EFT) in 2008. Of these, 16 were female internal controls. The ARMB is also responsible Committee included: and 13 male. for providing a safe working and recreational > Development and implementation of environment, free of accidents and injuries, for Emergency Evacuation Procedures for the Seasonal staff totalled 37 (14 female and 23 male) all ARMB employees, contractors and members Buller Community Centre; compared with 32 (11 female and 21 male) in of the public. The ARMB is committed to > Production and distribution of OH&S and risk 2008. Tasks performed by seasonal ensuring that all people affected by its activities reporting books with forms to be used by staff included visitor services, traffic control, are protected from loss, risks to safety, health staff and the general public to report injuries, snow clearing, car parking, Mount Stirling Ski and wellbeing. incidents, hazards and near misses; Patrol and general Resort work. > Increasing awareness and reinforcing OH&S The ARMB’s organisational culture is built around and risk management obligations for staff; Staff training and development providing a safe and rewarding experience for > Ongoing assessment of training needs and The ARMB supports training and development guests, residents and employees visiting, living or implementation of training and testing in to ensure that all full-time, part-time and casual working in the Resorts. First Aid, hearing screening, snow safe driving, employees have the necessary skills and traffic management, use of chemicals, forklift qualifications to fulfil their work requirements. ARMB staff members are fundamental to the driving and skidoo licensing; principles of Risk Management and OH&S, and > Ongoing assessment of the ARMB workplace All ARMB employees must complete a basic these responsibilities are imbedded in all position to ensure safety is a fundamental consideration level of training, including Buller Crew (Customer descriptions and are assessed as part of the in all operations that personal protective Service) training and risk management training. In performance appraisal process. equipment and clothing is provided and used, addition, all staff members driving ARMB vehicles safety rules are observed and common sense during the snow season are required to complete is exercised; the 4WD Snow Safe driving course. > In-house manual handling awareness; > Assessment and improvement to induction Some positions require specific qualifications or and training process for Mount Stirling Ski training, including: Patrol Volunteers; and > Traffic Management accreditation > Supply of boot chains to all employees as part > Authorised Officer training (including client of uniform issue. interaction and defensive tactics) > Chemical handling Workdays lost > Chainsaw use During 2008–09, 51 days were lost due to > Forklift use workplace injuries. The majority of these days > Confined space related to one Workcover claim as a result of a > Ski Patrol back injury. > Skidoo licensing > Heavy vehicle licensing > Alpine awareness training > Responsible Serving of Alcohol
14. Mt Buller and Mt Stirling Alpine Resort Management Board Buller Crew 2009 Core Values The ARMB also encourages further or continuing Buller Crew aims to unite all Mount Buller Resort The ARMB has adopted core values, which support study linked to business needs. During 2008–09, staff under one brand committed to providing an the Code of Conduct for Victorian Public Sector training courses and qualifi cations attained by enhanced customer service experience for visitors Employees and are consistent with Public Sector staff, included: across the Resort. Buller Crew training encourages Values (Public Administration Act 2004, Section > Traffi c Management accreditation all mountain staff to be full time ambassadors 63). This is also consistent with the public sector > Water Quality for the Resort throughout the season, whether employment principles (Public Administration > Introduction to Welding working or taking time off. Act 2004, Section 8) and standards issued by > First Aid the Public Sector Standards Commissioner; and > Australian Ski Patrol Association (ASPA) In 2009, all new ARMB employees completed communicated to all employees. > Certifi cate III in Water Industry Operations – Buller Crew training, including a one-hour Laboratory Skills, Activated Sludge customer service workshop and a tour of ARMB Core Values of the ARMB are: > Sustainability Forum facilities and operations. Returning staff completed > Communication – maintain an open, clear and > Chainsaw a web-based Buller Crew training program. concise two way fl ow of relevant information > Alpine Ecology both internally within the ARMB and externally; > Fair Work Legislation As part of the Resort’s rebranding, the ARMB > Leadership – provide positive guidance and > Customer Service offered all mountain operators, managers and motivation and act in a way that upholds the > Reporting to the Board supervisors the opportunity to undertake a day ARMB core values; > Access of customer service training. In 2009, 1036 > Innovation – drive continuous improvement > Bushfi re Attack mountain staff participated in Buller Crew training and are open and responsive to change; > Surveying GPS sessions. Training targeted managers who, in > Customer Service – strive to exceed > Further study undertaken in Certifi ed turn, undertook to train their teams in the core customers’ expectations by understanding and Practicing Accountant, Diploma of Accounting, customer service values. responding to their needs; Conservation and Land Management, Access. > Integrity – honest, open and ethical in The Buller Crew Social Club hosted a variety of dealings with each other, customers and other social events over the duration of the season, stakeholders; and including weekly sports nights, a comedy night in > Teamwork – work together to achieve July, adventure movies in August and the Buller desired goals in a supportive and co-operative Crew Cup race in September. environment.
The ‘Employee of the Week Award’ is integral to the Buller Crew training program. Each week, the Award recognised an employee’s pride in delivering exceptional service to guests and/ or fellow Resort staff. Businesses nominated an employee who demonstrated outstanding customer service. Nominated employees then received donated prizes, such as ski and snowboard tuning, dinner vouchers, lift tickets and a snow groomer ride.
Annual Report 2008–09 .15 Strategic Direction Overview
The ARMB is committed to fulfilling its role within the context of the Victorian Government’s Alpine Resorts 2020 Strategy. The Resorts’ Strategic Management Plan adopts the six strategic directions identified in the 2020 Strategy, which form the basis of the ARMB Corporate Plan and Business Plan, as follows:
Climate change > The ARMB will work to mitigate the impact of climate change, recognising that snow tourism is the primary economic driver for Mount Buller and Mount Stirling.
Resort use and visitation > The ARMB will optimise year-round use and visitation in a safe alpine environment.
Vibrant Resorts > The ARMB will facilitate the delivery of a sustainable, viable and vibrant alpine economy by increasing the range of services and amenities for all user groups.
Resort development > The ARMB will develop the year-round appeal and amenity of the Resorts, which complements the natural alpine environment and creates a sense of place for visitors and the community.
Environmental management > The ARMB will proactively manage its environment so that management and development of the Resorts is undertaken in an ecologically sustainable framework.
Land stewardship > The ARMB will manage the Resorts for all guests within a framework of accountability and community cooperation.
16. Mt Buller and Mt Stirling Alpine Resort Management Board Strategic Direction Climate Change
Year-round tourism product Mountain Bike Trails Water Reuse Project Consistent with the Victorian Government’s Alpine In 2008–09 the ARMB continued development of The Class A sewage treatment plant continues Resorts 2020 Strategy, the ARMB acknowledges that a multi-purpose cross-country trail network under to provide enormous benefi ts to the Resort by sustainable, year-round tourism product is vital to the ‘Bike Buller’ brand. The trails, developed by increasing the security of snowmaking and fi re the longevity of the Mount Buller and Mount Stirling World Trail, are designed to be low maintenance, fi ghting water. During the reporting period almost Resorts. To this end, the ARMB has continued to sustainable and blend seamlessly with the alpine 50ML was recycled. The investment in this project develop Mount Buller’s non-snow product offering. environment. continues to ensure the future viability of the Mount Buller Resort. Trails are being constructed over three years, including approximately 10km of trails plus In October 2009, the Water Reuse Project was signage each year. The most diffi cult section awarded a Tidy Towns Sustainable Communities (Stage 3) will be constructed in 2009–10. Award in the category of Water Conservation. Planning permits for these developments have been approved and construction has begun. ECO-Buy To date the ARMB has completed: In 2008–09, the ARMB continued its commitment > New intermediate trails at One Tree Hill; to green purchasing via membership of ECO-Buy. > Link from the Village Circuit beginner trails ECO-Buy is a not-for-profi t organisation, which to the downhill area at Spurs; and encourages businesses and other agencies to > Improved access in the Corn Hill area. embed sustainable purchasing practices and attitudes into their day-to-day operations. The ARMB is also working with Tourism Victoria to investigate new nature-based tourism products This year, the ARMB’s green spend increased for the Mansfi eld-Mount Buller region, including an by 2% to a total of 5% demonstrating a growing internationally recognised ‘Epic’ iconic destination awareness and commitment to environmentally mountain bike ride, which will be the fi rst of its sustainable business practices. kind in Australia.
Annual Report 2008–09 .17 Strategic Direction Vibrant Resorts
Services for the community Health services Police Mount Stirling Ski Patrol The ARMB continues to facilitate the provision In 2008–09, the ARMB enjoyed a constructive On Mount Stirling, the Volunteer Ski Patrol, under of medical services to visitors, residents and relationship with Victoria Police in attendance the direction of ARMB patrol staff, is an essential employees on Mount Buller during the snow daily during the snow season and events, and component of winter safety and operations, season. Stay Strong Pty Ltd managed the continues to pursue the possibility of establishing actively involved in trail maintenance, cleaning, Mount Buller Medical Centre this year, with a permanent police presence on-mountain. stocktaking medical supplies, and First Aid the support of doctors and staff from the response and assistance. In 2009, the Volunteer Mansfield Medical Clinic. The ARMB also continues to work with Victoria Ski Patrol contributed a total 180 work days. Police and the Liquor Licensing Commission in In November 2008, a year-round health service support of the Community Liquor Accord. In what was a relatively quiet year, volunteers for residents, staff and visitors commenced, spent more time training and consolidating their making Mount Buller the only Victorian alpine Education emergency rescue skills under the guidance of resort to have a permanent medical service Primary education throughout the winter months Mount Buller’s Ski Patrol, and assigned days outside of the snow season. continued to be provided within the Buller shadowing professional patrollers on the slopes. Community Centre complex, in conjunction Consistent with the Victorian Government’s with the Department of Education (Mount Buller Overall, accident numbers were lower in 2009 Alpine Resorts 2020 Strategy, Rural Directions Primary School). Mount Buller Education Pty Ltd due to better prevention strategies and generally for a Better State of Health Policy (DHS Vic 2005) also offered secondary education in winter 2009, less snow. There were 16 accidents attended to and the Mount Buller and Mount Stirling Strategic attracting approximately 50 students. by ARMB ski patrollers at Mount Stirling, four of Management Plan (2000-2010), the Department of which required evacuation by ambulance. Human Services is funding a two-year pilot service and will be taking a keen interest in its impact The ARMB continued to work closely with Ski on the development of a sustainable resident Patrol on Mount Buller (a service provided by BSL) community at Mount Buller. to minimise risk in the ski fields. Victoria Police and Rural Ambulance also provided excellent services, Funding for the service has been made available contributing to a safe skiing environment. through Mansfield District Hospital, which is delivering the service. The $100,000 grant covers some establishment costs and enables placement of an experienced nurse at the existing medical centre two days per week and on busy weekends over the summer period.
Some of the services provided include health screening, monitoring and education, assessment of acute medical presentations, treatment of minor wounds, medical management, liaising with medical practitioners, counselling and referral.
18. Mt Buller and Mt Stirling Alpine Resort Management Board Strategic Direction Resort Use and Visitation
Access Transport Wheel Chain Policy Public transport The ARMB is aware of the need to balance ease Prior to the 2008 snow season, the Mansfi eld- of access and affordability with risk and public Mount Buller Bus Lines (MMBL) contract was safety. In 2008–09, the ARMB continued to employ extended for a further two snow seasons until the its fl exible Mount Buller Wheel Chain Policy, which end of the 2009. The ARMB continues to negotiate allows the ARMB to determine whether or not with MMBL regarding new transport requirements, vehicles are required to carry wheel chains on including improved vehicles and more regular a daily basis, based on weather forecasts and Village shuttles. The ARMB expects a new long prevailing road conditions. term agreement to be in place prior to June 2010.
The policy applies to day visitors only. Those Car parking and visitor services staying in the Resort overnight or travelling beyond During the 2009 season, Visitor Services was once the Skating Rink Car Park (past the snowline) are again responsible for meeting, greeting and assisting required to carry chains at all times. visitors in the car parks, toboggan slopes and general Village area. The placement of these staff continued Mount Buller-Mount Stirling Link Road to improve liaison with the public and enhance the The ARMB has secured $1.55 million in funding from visitor experience. One additional staff member the Victorian Government to enable construction of a joined the Visitor Services team in 2009. link road between the existing Corn Hill Road and the Circuit Road along the north side of Corn Hill, linking Snow Clearing Mount Buller and Mount Stirling. Snow clearing hours were reduced from the previous years. Approximately 600 machine hours The Link Road development responds to the were involved in clearing snow from the Mount ARMB’s risk management plan, providing greater Buller Tourist Road, Mount Stirling Tourist Road, access for emergency vehicles to Mount Buller car parks and the Village road network. Careful and Mount Stirling by providing a second point scheduling resulted in minimal interruption of entry to both mountains. The Link Road will to traffi c and no major incidents due to snow also become an appealing touring circuit, thereby clearing. Staff members are to be commended increasing year-round visitation to both Resorts. for their dedication to the task.
An application for a planning permit to construct the Link Road was lodged with the DPCD in December 2008. The ARMB is optimistic that the application will ultimately receive favourable consideration and a permit will be granted to enable construction to commence, subject to additional funding being obtained.
Annual Report 2008–09 .19 Marketing Mount Buller Brand Winter In 2007 the ARMB and BSL commissioned > Successful implementation of the new While Mount Buller experienced good early extensive research into the Mount Buller brand Mount Buller brand, delivered under budget; snowfalls, the rest of the season was fairly and product offering. Research found the brand to > Four new sizeable events on the summer average with very fickle weather. Despite this, be outdated and failing to resonate in the market calendar for Mount Buller; strong marketing and communication strategies place. It recommended that a new and more > Increased awareness of the Bike Buller brand attracted 281,997 visitors to the Resort, which contemporary brand be developed. and uptake of associated product and packages; is a 3% increase from the previous winter and a > Enhanced environmental profile and recognition 17% increase on Mount Buller’s ten-year average. Traffic Pty Ltd was appointed to develop a new for environmentally sensitive operations, These people generated 441,293 visitor days, logo, brand values and strategic marketing including Tidy Towns Sustainable Communities up 4% from the previous year and 14% from the direction for Mount Buller in consultation with the Award for Water Conservation and ten-year average. ARMB and BSL and mountain stakeholders. commendation for Mountain Pygmy-possum Recovery Plan, and a United Nations World Mount Buller’s strong performance enabled it to The new logo – a snowflake symbol featuring Environment Day Award for restoring Mountain maintain its position as the most popular alpine a snow-capped mountain and blue sky – was Pygmy-possum habitat, and; resort in Victoria, further increasing its overall winter officially launched in winter 2009, signifying a > Enhanced relationships with key tourism market share from 38% in 2008 to 42% in 2009. revitalised brand and new strategies for growth. authorities and regional organisations, The logo was applied to all ARMB signage, and increased co-operative promotional Mount Stirling uniforms, collateral, vehicles and infrastructure in opportunities for Mount Buller stakeholders. The fickle snow and weather conditions affected time for the 2009 snow season. Sub-brands such the level of snow cover at Mount Stirling, as Bike Buller and Mansfield-Mount Buller High Visitation particularly in the Telephone Box Junction area, Country Reservations were also updated and re- Summer resulting in the cancellation of many scheduled launched prior to winter. While there was a significant increase in summer events and activities. events and general summer tourism in 2008–09 Three-Year Marketing Strategy as a result of the global economic downturn, As a result, Mount Stirling attracted 4,603 visitors The aim of the Three-Year Marketing Strategy is there was a dramatic decrease in the amount of in 2009, down from 6,324 in 2008. This trend was to optimise year-round Resort use and visitation, development taking place in the Resort in the same reflected in the other smaller Victorian resorts such and improve the overall Mount Buller experience period. This was reflected in decreased road counter as Lake Mountain and Mount Baw Baw, which also for visitors. In line with this Strategy, the key figures, down to 124,095 visitors in 2008–09. saw a significant decrease in visitor numbers. achievements in 2008–09 were: It must be noted, however, that peaks in Resort Sponsorship > 58% increase in media coverage, sustaining visitation were focused on key summer events, The ARMB acknowledges the valuable support Mount Buller’s public relations lead over the most significantly the All Tomorrow’s Parties of mountain sponsors Bollé, Cadbury, Channel 7, other major Victorian alpine resorts; music festival. This event attracted 5,000 people Holden/Penfolds, Rossignol and Schweppes. > Communications improvements including to Mount Buller for a range of two and three night new website, social media marketing and stays, establishing it as one of the biggest events e-communications (email, Bluetooth, etc); ever held on Mount Buller in summer or winter. > 8% increase to winter Net Promoter Score, which gauges how many people would Bike Buller events also drew large numbers of recommend the Resort to others; competitors and spectators to the Resort, including the Bike Buller MTB Festival, Holden High Country Cycle Challenge and the UCI Nationals.
20. Mt Buller and Mt Stirling Alpine Resort Management Board Strategic Direction Development at the Resorts
Village character Village facilities Village toboggan run Development at both resorts remains During 2008–09, a number of capital works This project included enlargement of the environmentally focused. Mt Stirling initiatives projects were undertaken to improve the tobogganing area to approximately 4000 square include new walking trails, weed control programs, visitor experience and upgrade ARMB facilities. metres, re-grading to provide a more consistent public toilets and shelters. The ARMB continues These projects included: gradient with larger runoff areas, new safety to facilitate private and commercial development fences, new galvanised perimeter fence and rock on Mount Buller by: > $10,000 investment in new outdoor furniture for works, and new concrete aprons abutting the > Working with and providing guidance to the Village; existing Tourist Road and Summit Road. These developers in the development, submission > New signage at the entrances of Mirimbah and substantial improvements are aimed at reducing and processing of planning and building permit the Village as part of the brand revitalisation; identifi ed risks as well as providing a signifi cantly applications; > Renovations to the Post Offi ce; enhanced facility with greater public appeal. > Continuing to develop Village infrastructure and > Completion of the Village toboggan run overall appearance; and including new safety fencing and decorative Capital expenditure > Extensively marketing the Resorts to provide concrete features; A total of $823,193 in capital works was incentives to commercial operators to remain > Upgrading of the chlorine disinfection system undertaken during the 2008–09 year including: open year-round. for potable water; > New water main to the Horse Hill precinct; > $228,383 - Water and sewerage infrastructure These strategies have resulted in the successful > Upgrading of the taxi bay in the Cow Camp upgrades; completion of new developments throughout the area; > $72,028 - Village toboggan run enhancement; Village in recent years. Building on its program of > New pumping system at the sewerage > $158,740 - Mountain bike tracks, trails and land release for preferred development, the ARMB treatment plant; Skills Park; is initiating a Resort Master Plan to enable the > Continued feasibility work regarding a new > $38,979 - Design planning for the Corn Hill link development of a wide range of integrated Resort water storage facility at Tirol Flat; road proposal; facilities, infrastructure and accommodation. Such > $100,000 for resurfacing of the day car parks; > $40,477 - Road and car park infrastructure; and renewed and targeted development, in addition > Completion of shedding facilities at the ARMB > $19,676 – Village centre upgrades including to improved community services, will encourage workshop; new bus shelters. year-round population growth. > Construction of two new garbage huts, including one at the top of Summit Road for snowfi eld facilities; > Construction of Stage 2 of the cross-country mountain bike trail development, and; > Resurfacing of the Mount Stirling Access Road.
Annual Report 2008–09 .21 Strategic Direction Development at the Resorts continued
Land release Government funding The aim of the ARMB’s land release activities A Site Environmental Management Plan (SEMP) The ARMB acknowledges investment in is to encourage the provision of quality is required for all planning applications for site Mount Buller and Mount Stirling by the developments on new sites in areas identified development on Mount Buller, except those Victorian Government in 2008–09 as follows: as being suited to development. applications requiring very minor works. Each > $85,000 DSE Alpine Risk Mitigation Program SEMP is reviewed as an important part of funding for geotechnical assessments on five There were no releases of new sites by the the planning process, aimed at minimising sites within the Resorts. These funds were ARMB during 2008–09. environmental impact during the construction received in 2007–08, of which $3,900 was phase and rehabilitation of sites post-construction. spent in the same year, and $75,009 was Planning Permits spent in 2008–09. In 2008–09 a total of 18 new planning permit Private Investment applications for development proposals with a Projects with an estimated construction value The ARMB also acknowledges contributions from declared estimated construction value of $11 of $3.5 million were completed in the year to the Federal Government as follows: million were reviewed and processed by the Board 31 October 2009, including: > $73,750 Community Water Grant to assess and compared to the 11 (with a total value of $15.5 > Site 184A - Engadin/Pontresina perform maintenance works on the sewage million) processed in the previous year. The ARMB (new freestanding lodge); and infrastructure and lining. A total of $4,725 was has continued to engage appropriate consultants > Arlberg Hotel (new self-contained received and spent in 2007–08 and $69,025 in to assist in its deliberations on these matters. apartments and underground car park). 2008–09.
In 2008–09, planning permits were issued for Work is anticipated to continue on existing projects Implementation of the Victorian Industry proposed development projects and works with an estimated value of $15 million including: Participation Policy with a declared estimated construction value of > Site 69A - Panorama (seven freestanding In October 2003, the Victorian Parliament passed approximately $6.35 million including: lodges); and the Victorian Industry Participation Policy Act 2003 > Site 1 - Australian Women’s Ski Club > Site 237 - St Buller (apartment hotel). which requires public bodies and departments redevelopment; to report on the implementation of the Victorian > Site 66 - Icicles Ski Club extension; and Existing planning permits to an approximate value Industry Participation Policy (VIPP). Departments > Site 97 - Duck Inn apartment conversion. of $1.5 million had previously been approved for and public bodies are required to apply VIPP in all projects anticipated to commence soon including: tenders over $3 million in metropolitan Melbourne In addition, applications for planning permits for > Site 66 - Icicles Ski Club (extensions); and $1 million in regional Victoria. The ARMB has development projects and works with a declared > Site 193 - Shaky Knees (extensions); and not commenced any tenders or entered into any estimated construction value of approximately $9.15 > Site 347A - Stables (three freestanding lodges). contracts worth $1 million or more during the year million are currently being assessed including: ended 31 October 2009. > Site 17 - Alpine Club of Victoria redevelopment; and > Buller-Stirling Link Road.
22. Mt Buller and Mt Stirling Alpine Resort Management Board
Strategic Direction Environmental Management
The ARMB aims to manage the unique alpine environments of Mount Buller and Mount Stirling in a sustainable manner, maintaining the balance and quality of alpine ecosystems. In 2008–09, many key environmental objectives were achieved.
Government Green Initiatives Mountain Pygmy-possum Recovery Plan Native Flora and Fauna Management In 2008–09, the ARMB continued its active The endangered Mountain Pygmy-possum The ARMB is committed to the protection of all participation in Sustainability Victoria’s ECO-Buy (Burramys parvus), Australia’s iconic alpine species of native plants and animals inhabiting program. The ARMB’s green purchasing increased possum, is in signifi cant decline across the the Resorts. Environmental staff continue to by 2% from the previous year. Australian Alps. Habitat degradation and provide a small mammal trapping service to fragmentation, predation and climate change lodges, clubs, apartments and hotels, using Other initiatives included Resource Smart, Keep threaten its continued existence. Elliot traps, designed to prevent injury to animals Winter Cool and membership of the North East and releasing them back into the wild. The use Regional Waste Management Group (NevRwaste), Following the discovery of this tiny possum on of snap traps and poison baits continues to be the ‘Save Our Snow Just Say No’ re-useable plastic Mount Buller in 1996, the ARMB contracted discouraged, and advice and tips on management bag campaign and ‘Don’t Be A Tosser’ cigarette wildlife biologists to monitor population numbers of small native mammals is freely available. butt litter campaign. annually. When serious declines in numbers were observed between 2001 and 2003, the ARMB, in In 2008-09, the small mammal poster was Environmental Management Plan partnership with BSL and DSE, developed a fi ve- reprinted and redistributed to help visitors and The Environmental Management Plan describes year Recovery Plan, which provides a blueprint for guests identify and appreciate native fauna within specifi c environmental objectives over the fi ve-year protecting the species and its habitat. the Resorts. As in previous years, this poster was period from 2007. Environmental issues addressed distributed to all lodge managers who attended within the plan include sustainable management Implementation of fourth-year projects the pre-season information night, and copies were of geological and geomorphologic features, soil strengthened outcomes achieved in previous given to all primary and secondary school children conservation, rivers and catchments, fl ora, fauna, years. Annual monitoring of the population who visited the Resort throughout the year. fi re, indigenous and post-settlement cultural continues with better than expected results. heritage, waste, energy effi ciency, air quality, visual Approximately 10,000 plants of local genetic Threatened species monitoring continued, and noise amenity, visitor capacity and community provenance (specifi cally chosen to provide food including the Mountain Pygmy-possum, awareness and engagement. and cover) were established in key habitat areas. Broad-toothed Rat (Mastacomys fuscus), Alpine Stonefl y (Thermatoperla fl aveola) and The Environmental Management Review In addition, important studies have been the Alpine Marsh Marigold (Caltha introloba). Committee reviews progress against the Plan completed, including the Boulderfi eld Feasibility Sensitive area signage has been installed in several times each year. By the end of the Study, Roads and Tracks Management Strategy, key locations to increase staff and visitors reporting period, 26% of the actions have been Impact of Recycled Water on Habitat Risk awareness year-round. completed, 68% are in progress or ongoing, and Assessment and the Fire Severity Mapping Project, 6% are not yet scheduled. to help inform and prioritise future works.
Annual Report 2008–09 .23 Strategic Direction Environmental Management
Pest Plant and Animal Control Pest Animals Education, Communication and Engagement A major environmental goal of the ARMB is The ARMB year-round integrated pest animal In 2008–09, environmental staff gave many the control and elimination where possible of control program continued with impressive results. presentations to primary, secondary and tertiary introduced and/or exotic plant and animal species. The ongoing fox baiting program has ensured students. Interpretive guided walks along the As in previous years, effort was concentrated foxes are no longer commonly seen with the Summit Nature Walk continued to be offered every on the most signifi cant species within the Resort, with baits being taken throughout the Saturday and Sunday throughout summer (from Resorts, including Orange Hawkweed, Soft Rush, 6 week winter baiting period. In addition, January to Easter, inclusive). In addition, extensive Blackberry, St John’s Wort, feral cats, foxes, wild 19 feral cats (known predators of the Mountain environmental information is available on the dogs and rabbits. Pygmy-possum) were trapped and removed from Mount Buller website and regularly updated. the Resort during the year. Wild dogs were also Pest Plants controlled with assistance from local Department A highlight of 2009 was the Environmental Forum In 2008–09, the ARMB completed a Weed of Primary Industry staff. Rabbits continued to be held in September. Stakeholders, government Management Strategy for the Resort, identifying targeted from spring through to autumn. agencies and members of the public were invited and prioritising key weed species and describing to participate in an interactive session seeking management protocols to optimise control. Revegetation and Rehabilitation feedback and priorities for Resort environmental In 2008–09, as part of the ongoing Resort management. It was an extremely valuable Orange Hawkweed was monitored and controlled revegetation and rehabilitation program, exercise and the ARMB recommends it become a weekly from October 2008 to June 2009. There approximately 10,000 native seedlings were biennial event. continues to be an established quarantine area established in priority areas. Plants were sourced to ensure movement through the infestation is from locally obtained seeds and cuttings, In 2008–09, the ARMB continued its commitment restricted. Infestations of waterway weeds (Three- propagated over an eight-month period and to the Community Stream Sampling Project stamen Rush, Soft Rush and Musk Monkey-fl ower) returned for planting during summer. This ensures in conjunction with Water Watch. ARMB staff continued to be targeted with good results. the genetic provenance and integrity of native voluntarily sampled water in the upper Delatite Blackberries were sprayed on trails between vegetation within the Resort is maintained. each month reporting results back to the local Mount Buller and Mount Stirling, and Sycamores Water Watch Coordinator. continued to be controlled in the upper reaches Environmental staff continue to provide advice to of the Delatite at Mirimbah. St John’s Wort was developers and site holders regarding revegetation The ARMB also continues to send staff to the controlled on the batters at Mirimbah and at the with indigenous plant species. Several locally Alpine Ecology Course held at Falls Creek each year. Plough Shed in collaboration with VicRoads. Small indigenous native gardens are now established English Broom infestations were treated at Mount within the Resort. The Mount Buller and Mount Potable Water Stirling, Mount Buller Village and Delatite Valley, Stirling Native Vegetation Planting Guide (available The provision of safe drinking water is and Pussy Willows continued to be removed from for free from the ARMB offi ce and Mount Buller fundamental to the economic and environmental the Resort. The annual collaborative ‘Weed Week’ website) has been well received by residents and well being of the Resorts. In 2008–09, 297ML saw ARMB and BSL staff working together for a site holders keen to establish native gardens. of water was transferred from Boggy Creek to week during summer specifi cally to implement Burnt Hut for the Mount Buller Village potable intensive weed control programs. water supply. An additional 48.6ML of water was transferred from Boggy Creek to Sun Valley Reservoir for snowmaking.
24. Mt Buller and Mt Stirling Alpine Resort Management Board Fire Management Solid Waste Recycling The ARMB supplies drinking water to the The Wildfi re Management Plan provides guidelines The ARMB continually strives to improve its Mount Buller Village, Mirimbah Picnic Area and for fi re prevention, preparedness, response and waste management to protect the sensitive and Telephone Box Junction at Mount Stirling. Drinking recovery across the Mount Buller and Mount unique environment of the Resorts, by increasing water is managed in accordance with the Safe Stirling Alpine Resorts. Each year in November, recycling and reducing the amount of solid Drinking Water Act 2003 and is disinfected using the ARMB, DSE and Country Fire Authority (CFA) waste going to landfi ll. These goals are strongly combinations of UV, chlorination and fi ltration. conduct an annual review of the Plan, and the supported by active involvement in NevRwaste, The ARMB has installed back-up chlorine dosing ARMB holds its annual Fire Ready weekend and a proactive and dynamic working relationship pumps to protect the Mount Buller high and low offering information, assistance and support to with ARMB waste contractors, 4-Site Australia. level systems from breakdown. It has also installed mountain stakeholders. an online turbidity meter to access the need for In 2008–09, 33% of waste was recycled. future fi ltration. Environment Protection Agency The ARMB continued to encourage and promote The ARMB has formed a partnership with the best practice waste management by: Safe Drinking Water Risk Management Plan EPA, working together to examine areas where > Improving and increasing the non-recyclable In accordance with the Safe Drinking Water joint environmental initiatives may be possible. and recyclable ‘binfrastructure’ throughout Act 2003, the ARMB adopts a preventative This project has also been supported by the other the Resorts; management approach to the provision of safe Alpine Resorts. > Offering bi-annual kerbside hard waste drinking water, from catchment to consumer. collections (items collected are sorted and Land Stabilisation recycled where appropriate); The Safe Drinking Water Risk Management Plan The ARMB continues to monitor and address any > Continued improvement and expansion of includes: natural changes in the land or hazards occurring. In public place recycling and waste facilities > Promotion of public health by ensuring safe 2008–09, no new hazards were identifi ed and the throughout in the Village and Ski Fields; drinking water for consumers; ARMB undertook land stabilising works the Mount > Improved cigarette butt litter management > Detailed and systematic evaluation of water Stirling Tourist Road, funded by DSE. including improved infrastructure and systems, identifi cation of hazards and risk participation in ‘Don’t Be A Tosser’ campaign assessment; and Sewerage Treatment and ‘Beautify Buller Day’; > A preventative approach, which places drinking The ARMB continues to monitor effl uent from > Providing re-usable bags for residents and water quality monitoring in an appropriate the Sewerage Treatment Plant with good results. guests as part of ‘Save our Snow, Just Say No’ verifi cation role. During the reporting period approx 50ML of campaign; treated effl uent was pumped to Sun Valley > Advertising and promoting best practice waste An important requirement of the Safe Drinking Water Reservoir for use as snowmaking water. The management on ski lift infrastructure; and Act 2003 is continual monitoring of the drinking water ARMB continues to invest heavily in the sewerage > Implementing the Waste Wise Local supply system to ensure barriers to contamination treatment plant to ensure good quality treated Education Strategy. and treatment process remain effi cient. water enters the local streams.
The Risk Management Plan is regularly updated Garbage Collection to ensure it refl ects changing local circumstances. Over the 2009 winter season, 588 tonnes of solid The Risk Management Plan was independently waste was collected compared with 418 tonnes in audited in October 2008, with compliance granted. winter 2008. A total of 739 tonnes of solid waste was collected over the year compared with 583 tonnes in 2007–08.
Annual Report 2008–09 .25 Strategic Direction Land Stewardship
The ARMB acknowledges an Consultation Environmental Management Review Committee ARMB stakeholders include: The EMRC fulfi ls an internal review process, with extensive list of stakeholders, > The Taungurong people, traditional input from external stakeholders by invitation. The which encompasses the people custodians of the land; EMRC will continue to provide effective review, of Victoria, and individuals and > State Government of Victoria, in particular reporting, planning and strategic direction, and the Minister for Environment and Climate host environmental forums for stakeholder input. organisations with a fi nancial, Change, the Minister for Finance and the legal and/or social interest in Minister for Planning; Mount Buller Marketing Coordination Group > Mansfi eld Shire Council; The Mount Buller Marketing Coordination Group Mount Buller or Mount Stirling. > Neighbouring land management authorities; (BMCG) includes representatives from BSL, High > ARCC and associated entities; Country Reservations, Mount Buller Chamber of > Other Victorian alpine resorts; Commerce, Mount Buller Ratepayers Association > ARMB staff, committees and associated and the ARMB. The BMCG works towards unifi ed entities; and coordinated marketing, and a single, clear > Mount Buller Chamber of Commerce; Mount Buller brand in the market place. > Mount Buller Ratepayers Association; > Buller Ski Lifts (BSL); BMCG objectives include: > Emergency services, including Ski Patrol; > Generating input and advice from stakeholders > Industry groups; in respect to marketing activity – product, > Environmental interest groups; promotion, placement and price; > Recreational groups; > Communicating, monitoring and evaluating the > Educational authorities and organisations; ARMB Three-year Marketing Strategy; and > Land and property developers; > Creating sub-committees to provide direction > Business and commercial operators; and recommendations as required. > Tourism operators; > Ski clubs; Currently, the BMCG incorporates two sub- > Apartment owners; committees – the Sales and Promotions > Contractors; Committee and Winter Brochure Committee. > Residents; > Visitors and guests; and Mansfi eld-Mount Buller Cultural > District communities. Advisory Committee The ARMB aims to create a substantial cultural The following committees have been formed to profi le for Mount Buller and Mount Stirling through enable stakeholder input into the marketing and implementation of its Arts, Cultural and Heritage development of Mount Buller and Mount Stirling: Strategy. By 2010, it is envisaged the Resorts will be renowned for creative, diverse and sustainable arts and cultural initiatives, which are affordable and accessible to residents, workers and visitors.
26. Mt Buller and Mt Stirling Alpine Resort Management Board Leasing administration Service charges The Mansfi eld-Mount Buller Cultural Advisory The Board continues to administer the Minister’s Service charges are levied on all leased sites Committee was established to help develop alpine lease implementation policy utilising a within the Resort in accordance with Section and implement the strategy, as follows: standard lease document, which includes recognition 13 of the Alpine Resorts (Management) Act > Increase year-round visitation; of lessees' rights to improvements on leased land, 1997. Service charges are reviewed annually in > Inspire community passion; and the ability for existing site holders to negotiate accordance with ARMB policy. > Encourage participation in arts, culture new leases prior to the expiry of their current lease. and heritage based activities; and Prior to 2006-07 the ARMB levied Service Charges > Create a more healthy and prosperous In order to develop measures to further enhance by reference to the 1986 Capital Improved Value community. lessees' and fi nanciers' investments in the Resorts, (CIV) of sites together with a bed service charge. lease registration has now been introduced for all The use of such a historic reference point for CIVs Local and regional authorities new leases. During 2008–09 the Minister signed was a source of confusion in the past. In order to The ARMB continues to consult with a range of off on six new leases, which were subsequently more closely replicate municipal ‘rates’ systems industry experts and authorities in the development registered at the Titles Offi ce, the same number used by most local governments the Board of new policies, procedures and initiatives. In as in 2007–08. determined to levy service charges based on 2004 particular, neighbouring Crown Land managers CIVs, with regular revaluations, and phase out the (Parks Victoria, DSE and Mansfi eld Shire) are Sub-leasing activity stabilised for the 2008–09 annual bed service charge element. consulted to ensure best practice land management. year with a total of 48 consents being granted for The ARMB also consults with other Victorian transfers of sub-leases and/or shares compared to The introduction of the new 2004 assessments alpine resorts through the ARCC and an informal 61 in 2007–08. caused some fl uctuations against previous Service network of chief executives and fi nance offi cers. Charge amounts levied against individual lessees, Site rental with many experiencing reductions in charges but Risk management Lessees are required to pay site rental for the use others subject to increases. Risk management is key to effective corporate of Crown Land on Mount Buller. During 2008–09, governance. The ARMB maintains a risk register rent reviews for 10 sites were undertaken in Transitional arrangements did limit increases that identifi es risks to the organisation and accordance with the applicable lease provisions. in Service Charges payable if no signifi cant those associated with the use of Crown Land. An additional 6 new leases were granted over alterations had been undertaken to a property in The register, developed in association with the existing sites in the same period. the previous year. Victorian Managed Insurance Authority (VMIA), features various ARMB controls and strategies to Emergency management In 2008–09 the transitional arrangements were mitigate identifi ed risks. The register is reviewed In April 2009 an emergency exercise surrounding fi nally phased out along with the annual bed on a regular basis to ensure proper consideration a ski lift evacuation and gas leak was conducted. service charge element. As a result the Service of newly identifi ed and existing risks. Parties including Victoria Police, Rural Ambulance Charge rate was fi xed at 0.76226% of the 2004 Victoria, BSL and Buller Gas participated. CIV. In accordance with standard practice, In accordance with the provisions of the Building adjustments to service charges levied on some Act 1993 Section 192 (1), the ARMB carries out In November 2009 an exercise was carried out to sites were initiated to refl ect reassessments building inspections to ensure all buildings on test the operation of the Municipal Emergency associated with supplementary valuations Mount Buller and Mount Stirling comply with fi re Command Centre (MECC). undertaken on new developments or properties safety and essential services regulations. The which had been subject to substantial alterations. building surveyor appointed under this program is scheduled to inspect every building in the Resorts once every two years, as a minimum.
Annual Report 2008–09 .27 Appendices Risk Attestation
Attestation on compliance with the Australian/ New Zealand Risk Management Standard I, John Dyson, certify that the Mount Buller and Mount Stirling Alpine Resort Management Board has risk management processes in place consistent with the Australian/New Zealand Risk Management Standard and an internal control system is in place that enables the executive to understand, manage and satisfactorily control risk exposures. The Risk, Audit and Finance committee verifi es this assurance and that the risk profi le of the Mount Buller and Mount Stirling Alpine Resort Management Board has been critically reviewed within the last 12 months.
John W Dyson Chairman Mount Buller and Mount Stirling Alpine Resort Management Board
28. Mt Buller and Mt Stirling Alpine Resort Management Board Appendices Disclosures Index
Legislation Requirement Page The 2008–09 Annual Report of the Mount Buller Report of operations – FRD guidance and Mount Stirling Alpine Resort Management Board is prepared in accordance with all Charter and purpose relevant Victorian legislation. This index has FRD 22B Manner of establishment and the relevant Ministers 8 FRD 22B Objectives, functions, powers and duties 9 been prepared to facilitate identifi cation of the FRD 22B Nature and range of services provided 9 authorities’ compliance with statutory disclosure requirements. Management and structure FRD 22B Organisational structure 13
Financial and other information FRD 10 Disclosure index 29 FRD 22B Occupational Health and Safety policy 14 FRD 22B Summary of the fi nancial results for the year 7 FRD 22B Signifi cant changes in fi nancial position during the year 7 FRD 22B Major changes or factors affecting performance 7 FRD 22B Subsequent events 7 FRD 22B Application and operation of Freedom of Information Act 1982 30 FRD 22B Compliance with building and maintenance provisions of Building Act 1993 27 FRD 22B Statement on National Competition Policy 31 FRD 22B Application and operation of the Whistleblowers Protection Act 2001 30–31 FRD 22B Details of consultancies 7 FRD 22B Statement of availability of other information 30 FRD 29 Workforce data disclosures 14–15 SD 4.5.5 Risk management compliance attestation 28 SD 4.2(g) General information requirements 6, 17–27 SD 4.2(j) Sign-off requirements Inside Front Cover
Financial Report Financial statements required under Part 7 of the FMA SD 4.2(b) Operating Statement 34 SD 4.2(b) Balance Sheet 35 SD 4.2(a) Statement of changes in Equity 36 SD 4.2(b) Cash Flow Statement 37
Other requirements under Standing Direction 4.2 SD 4.2(c) Compliance with Australian accounting standards and other authoritative pronouncement 38 SD 4.2(c) Compliance with Ministerial Directions 38 SD 4.2(d) Rounding of amounts 43 SD 4.2(c) Accountable offi cer’s declaration 33
Other disclosures in notes to the fi nancial statements FRD 11 Disclosure of ex-gratia payments N/A FRD 21A Responsible person and executive offi cer disclosures 63
Annual Report 2008–09 .29 Appendices Information
Freedom of Information Availability of other information The Mount Buller and Mount Stirling Alpine The following is retained by the offi cer accountable The ARMB will take all reasonable steps to protect Resort Management Board is considered to be and is available to the relevant Minister, Members people who make such disclosures from any a ‘Government Agency’ under the terms of the of Parliament and the public on request: detrimental action in reprisal. It will also afford Freedom of Information Act 1982. Accordingly, it > Details of changes in prices, fees, charges, natural justice to the person who is the subject of is required to comply with prescribed procedures rates and levies; the disclosure. under which members of the public may gain > Details of any major external reviews access to information held by agencies. Requests carried out; Reporting procedures for information must be submitted in writing, > Details of major research and development Disclosures of improper conduct or detrimental and a decision to release information is made by activities; action by the ARMB or its employees may be either the Principal Offi cer or an Authorised Offi cer. > Details of offi cial overseas travel undertaken made to: Applications should be addressed to: including a summary of the objectives and outcomes of each visit; The Protected Disclosure Coordinator Freedom of Information Offi cer > Details of major promotional, public relations Ms Jennifer Berensen Mt Buller and Mt Stirling and marketing activities; and Department of Sustainability and Environment Alpine Resort Management Board > Details of assessments and measures PO Box 500 Post Offi ce undertaken to improve the occupational East Melbourne Victoria 8002 Mt Buller VIC 3723 health and safety of employees. Telephone: 03 9637 8697 Facsimile: 03 9637 8113 Requests for information under the Freedom of Compliance with Whistleblowers Email: [email protected] Information Act 1982 are subject to a $23.40 fee. Protection Act 2001 The Whistleblowers Protection Act 2001 Alternatively, disclosures of improper conduct or In 2008-09, there were no requests for the ARMB encourages and assists people in making detrimental action by the ARMB or its employees to provide information under the Freedom of disclosures of improper conduct by public offi cers may also be made directly to the Ombudsman. Information Act 1982. and public bodies. The Act provides protection to people who make disclosures in accordance with The Ombudsman Victoria the Act and establishes a system for the matters Level 9, 459 Collins Street (North Tower) disclosed to be investigated and rectifying action Melbourne VIC 3000 to be taken. Telephone: (03) 9613 6222 Toll free: 1800 806 314 The ARMB does not tolerate improper conduct Internet: www.ombudsman.vic.gov.au by employees, nor the taking of reprisals against Email: [email protected] those who come forward to disclose such conduct. It is committed to ensuring transparency and accountability in its administrative and management practices, and supports the making of disclosures that reveal corrupt conduct, conduct involving a substantial mismanagement of public resources, or conduct involving a substantial risk to public health and safety or the environment.
30. Mt Buller and Mt Stirling Alpine Resort Management Board Disclosures under the Pecuniary interest Whistleblowers Protection Act Members of the Board and Executive Offi cers The current procedures established by the public have completed a Declaration of Private Interests body under Part 6 are available upon request. and do not participate in decision-making where a confl ict of interest exists. 2008–09 2007–08 Number Number Culturally and linguistically diverse communities The number and types of disclosures made to The ARMB is committed to policies, programs and public bodies during the year: strategies aimed at delivering culturally appropriate services to all Victorians. No special initiatives were Public interest disclosures 0 0 needed by the ARMB to meet these obligations. The Protected disclosures 0 0 ARMB ensured that the outcomes of deliberations The number of disclosures referred during the year were adequately communicated to culturally and by the public body to the Ombudsman for determination linguistically diverse visitors to Mount Buller. as to whether they are public interest disclosures 0 0 The number and types of disclosed matters referred Women to the public body by the Ombudsman for investigation 0 0 The ARMB offers employment and education to women. The ARMB ensures that there is female The number and types of disclosures referred by the representation and equity, and involves women public body to the Ombudsman for investigation 0 0 in consultation, decision-making, leadership and The number and types of investigations taken over equal opportunity. from the public body by the Ombudsman 0 0 The number of requests made by a whistleblower to Indigenous people the Ombudsman to take over an investigation by the The ARMB abides by Aboriginal Affairs Victoria public body 0 0 reporting requirements where any specifi c The number and types of disclosed matters that the indigenous initiatives or projects will be reported public body has declined to investigate 0 0 in accordance with the necessary guidelines. No special initiatives were needed by the ARMB to The number and types of disclosed matters that meet these obligations. were substantiated upon investigation and the action taken on completion of the investigation 0 0 National Competition Policy Any recommendations made by the Ombudsman ARMB staff (with the exception of Senior that relate to the public body 0 0 Appointments on GSERP contracts) currently work under one of two Enterprise Agreements. Resort Operations staff work under the Mount Buller and Mount Stirling Alpine Resort Management Board Enterprise Agreement (Resort Operation Workers) 2005 and Management and Administration staff under the Mount Buller and Mount Stirling Alpine Resort Management Board (ARMB) Management and Administration Agreement 2006–2009.
Annual Report 2008–09 .31 32. Mt Buller and Mt Stirling Alpine Resort Management Board Financial Statements For the year ended 31 October 2009
Statement by the Mount Buller and Mount We certify that the attached fi nancial statements Stirling Alpine Resort Management Board for the Mount Buller and Mount Stirling Alpine Chairman and Chief Executive Offi cer Resort Management Board has been prepared in accordance with Standing Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions, Australian accounting standards and other mandatory professional reporting requirements.
We further state that, in our opinion, the information set out in the Operating Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and notes to and forming part of the fi nancial statements, presents fairly the fi nancial transactions during the year ended 31 October 2009 and fi nancial position of the Mount Buller and Mount Stirling Alpine Resort Management Board as at 31 October 2009.
We are not aware of any circumstance which would render any particulars included in the fi nancial statements to be misleading or inaccurate.
We authorise the attached fi nancial statements for issue on 12 January 2010
John Dyson Tony Petersen Chairman Acting Chief Executive Offi cer
Annual Report 2008–09 .33 Comprehensive Operating Statement For the fi nancial year ended 31 October 2009
Note 2009 2008 $‘000 $‘000
Income from transactions Gate entry 3,391 3,207 Site rental 3,529 3,287 Service charges 3,069 2,929 Service charge – Infrastructure Fee 117 144 Marketing revenue 251 273 Taxi transport commission 108 112 Sale of rights to lease and develop Crown land 50 598 Government grants 69 276 Interest income 197 346 Other income 401 930 Total income from transactions 11,182 12,102
Expenses from transactions Village operations 3,890 4,271 Visitor services 1,666 1,500 Administration and corporate services 2,135 2,269 Land management and environmental services 1,008 1,118 Health services 224 568 Marketing 1,555 1,705 Interest expense 2 164 312 Total expenses from transactions 10,642 11,743
Net result from transactions (net operating balance) 540 359
Other economic fl ows included in net result Net gain/(loss) on non-fi nancial assets 3 (1) (470) Other gains/(losses) from other economic fl ows 3 (1) (19) Total other economic fl ows included in net result (2) (489)
Net (and comprehensive) result 538 (130)
The above Comprehensive Operating Statement should be read in conjunction with the accompanying notes.
34. Mt Buller and Mt Stirling Alpine Resort Management Board Balance Sheet As at 31 October 2009
Note 2009 2008 $‘000 $‘000
Assets Financial Assets Cash and deposits 18 6,903 5,698 Receivables 5 516 731 Other 7 330 219 Total Financial Assets 7,749 6,648
Non-Financial Assets Inventories 6 21 24 Infrastructure, property, plant and equipment 8 189,565 190,488 Total Non-Financial Assets 189,586 190,512
Total Assets 197,335 197,160
Liabilities Payables 9 569 634 Borrowings 10 3,103 3,324 Employee provisions 11 438 550 Other 13 251 216 Total Liabilities 4,361 4,724
Net Assets 192,974 192,436
Equity Contributed capital 137,157 137,157 Accumulated surplus 4,149 3,611 Reserves 19 51,668 51,668
Total Equity 192,974 192,436
Commitments for expenditure 15 Contingent assets and contingent liabilities 16
The above Comprehensive Operating Statement should be read in conjunction with the accompanying notes.
Annual Report 2008–09 .35 Statement of Changes in Equity For the fi nancial year ended 31 October 2009
Note
Equity at Total Transactions Equity at 1 November comprehensive with owners in 31 October 2008 result their capacity 2009 as owners $’000 $’000 $’000 $’000 Income from transactions Accumulated surplus/(defi cit) 3,611 538 - 4,149 Contributions by owners 137,157 - - 137,157 Physical asset revaluation reserve 19 51,668 - - 51,668 Total equity at end of fi nancial year 192,436 538 - 192,974
Equity at Total Transactions Equity at 1 November comprehensive with owners in 31 October 2007 result their capacity 2008 as owners $’000 $’000 $’000 $’000
Accumulated surplus/(defi cit) 3,598 (130) - 3,468 Adjustment for disposal of revalued assets - 143 - 143 3,598 13 - 3,611
Contributions by owners 137,157 - - 137,157 Physical asset revaluation reserve 19 51,811 - - 51,811 Disposal of assets 19 - (143) - (143) 51,811 (143) - 51,668
Total equity at end of fi nancial year 192,566 (130) - 192,436
The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.
36. Mt Buller and Mt Stirling Alpine Resort Management Board Cash Flow Statement For the year ended 31 October 2009
Note 2009 2008 $‘000 $‘000
Cash fl ows from operating activities Financial Assets Receipts from customers (incl GST) 11,178 11,477 Payments to suppliers and employees (incl GST) (8,884) (8,998) Interest received 195 332 Interest and other costs of fi nance paid (73) (78) Net cash fl ows from operating activities 18(b) 2,416 2,733
Cash fl ows from investing activities Payments for infrastructure, property, plant and equipment (980) (2,223) Proceeds from sale of property, plant and equipment 81 121 Net cash used in investing activities (899) (2,102)
Cash fl ows from fi nancing activities Repayment of interest bearing liabilities (95) (89) Repayment of non-interest bearing loans (217) (217) Net cash used in fi nancing activities (312) (306)
Net increase/(decrease) in cash and cash equivalents 1,205 325
Cash and cash equivalents at the beginning of the fi nancial year 5,698 5,373
Cash and cash equivalents at the end of the fi nancial year 18(a) 6,903 5,698
The above Cash Flow Statement should be read in conjunction with the accompanying notes.
Annual Report 2008–09 .37 Financial Statements For the year ended 31 October 2009
NOTE 1 Summary of Signifi cant Accounting Policies The estimates and underlying assumptions are AASB 1049 presentation format, used in the reviewed on an ongoing basis. Revisions to Financial statements for the State and the general The Mount Buller and Mount Stirling Alpine accounting estimates are recognised in the period government sector. In addition, the Board has Resort Management Board (ARMB) is constituted in which the estimate is revised if the revision also early adopted the September 2007 version of under the Alpine Resorts (Management) Act 1997 affects only that period or in the period of the AASB 101. and has its principal place of business located at revision, and future periods if the revision affects Mt Buller, Victoria, Australia. both current and future periods. In keeping with AASB 101 (September 2007) this complete set of fi nancial statements includes the (a) Statement of compliance Accounting policies are selected and applied in a following changes: The fi nancial statements are general purpose manner which ensures that the resulting fi nancial fi nancial statements which have been prepared information satisfi es the concepts of relevance and (i) the notion of: on an accrual basis in accordance with the reliability, thereby ensuring that the substance of the > ‘a complete set of fi nancial statements’ rather Financial Management Act 1994 and applicable underlying transactions or other events is reported. than using ‘fi nancial report’; Australian Accounting Standards (AASs). AASs > ‘changes in equity’ rather than ‘movements in include Australian equivalents to International The accounting policies set out below have been equity’; and Financial Reporting Standards. applied in preparing the fi nancial statements > ‘transactions with owners in their capacity as for the year ended 31 October 2009 and the owners’ rather than ‘transactions with owners In complying with AASs, the entity has, where comparative information presented for the year as owners’. relevant, applied those paragraphs applicable to ended 31 October 2008. not-for-profi t entities. (ii) references to equity holders as owner. Not-for-profi t status (b) Basis of preparation Under AIFRS, there are requirements that apply Some of the changes applied to the fi nancial The fi nancial statements have been prepared on specifi cally to not-for-profi t entities that are not statements and notes as a result of alignment to a historical cost basis, except for the revaluation consistent with International Financial Reporting AASB 1049 that are allowable under the AASB 101 of certain non-current assets and fi nancial Standards (IFRS) requirements. The ARMB has (September 2007) include the following: instruments. Cost is based on the fair values of analysed its purpose, objectives and operating the consideration given in exchange for assets. philosophy and determined that it does not > extended operating statement incorporating have profi t generation as a prime objective. non-owner changes in equity, which is now In the application of AASs, management is Consequently where appropriate the ARMB has referred to as comprehensive operating required to make judgements, estimates and elected to apply options and exemptions within statement; assumptions about carrying values of assets AIFRS that are applicable to not-for-profi t entities. > items being presented by liquidity order in and liabilities that are not readily apparent from the balance sheet; the inclusion of a limited other sources. The estimates and associated (c) Scope and presentation of number of Government Finance Statistics (GFS) assumptions are based on historical experience fi nancial statements classifi cations, such as income or expenses from and various other factors that are believed to be Early adoption of AASB 101 (September 2007) transactions, and other economic fl ows; and reasonable under the circumstance, the results of As a result of a state wide policy to improve > a glossary of terms included in the notes which form the basis of making the judgements. consistency in public sector reporting, the Board explaining certain terms, including GFS terms Actual results may differ from these estimates. has revised the presentation of its complete set of adopted. fi nancial statements to align with the
38. Mt Buller and Mt Stirling Alpine Resort Management Board Financial Statements For the year ended 31 October 2009
Comprehensive operating statement (d) Reporting entity (f) Goods and services tax (GST) The comprehensive operating statement includes The fi nancial statements cover the Mount Buller Income, expenses and assets are recognised net items previously included in the statement of and Mount Stirling Alpine Resort Management of the amount of associated GST, unless the GST changes in equity. Board (ARMB) as an individual reporting entity. incurred is not recoverable from the Australian The ARMB is an entity established under the Taxation Offi ce (ATO). In this case it is recognised Income and expenses in the comprehensive Alpine Resorts (Management) Act 1997. as part of the cost of acquisition of the asset or as operating statement are separated into either Its principal address is: part of the expense. ‘transactions’ or ‘other economic fl ows’. Mount Buller and Mount Stirling Receivables and payables are stated inclusive Balance sheet Alpine Resort Management Board of the amount of GST receivable or payable. The Items of assets and liabilities in the balance sheet Buller Community Centre net amount of GST recoverable from, or payable are: Summit Road to, the ATO is included with other receivables or > ranked in liquidity order; Mount Buller VIC 3723 payables in the balance sheet. > aggregated into fi nancial and non-fi nancial assets; The ARMB is a public body acting on behalf of Cash fl ows are presented on a gross basis. > classifi ed according to GFS terminology, but the Crown, and reporting to the Department of The GST component of cash fl ows arising from retain measurement and disclosure rules under Sustainability and Environment. investing and fi nancing activities which are existing accounting standards applicable to the recoverable from, or payable to, the ATO are Board; and (e) Events after reporting date classifi ed as operating cash fl ows. > current versus non-current assets and liabilities Assets, liabilities, income or expenses arise from are disclosed in the notes where relevant. past transactions or other past events. Where the Commitments and contingent assets or liabilities transactions result from an agreement between are presented on a gross basis. Statement of changes in equity the ARMB and other parties, the transactions are The statement of changes in equity presents only recognised when the agreement is irrevocable (g) Income from transactions reconciliations of each non-owner and owner at or before balance date. Adjustments are made Amounts disclosed as income are, where equity opening balance at the beginning of to amounts recognised in the fi nancial statements applicable, net of returns, allowances and duties the year to the closing balance at the end of for events which occur after the reporting date and taxes. Revenue is recognised for each of the the year, showing separately movements due and before the date the statements are authorised ARMB’s major activities as follows: to amounts recognised in the comprehensive for issue, where those events provide information result and amounts recognised in equity related about conditions which existed at the reporting Service charges to transactions with owners in their capacity as date. Note disclosure is made about events Service charge revenue is brought to account when owners. between the balance date and the date the a rate/tariff is levied or determined for service Cash fl ow statement statements are authorised for issue where the charges leviable under Section 13 of the Alpine The cash fl ow statement classifi es fl ows by events relate to conditions which arose after the Resorts (Management) Act 1997. A service charge operating, investing and fi nancing activities reporting date and which may have a material infrastructure fee is also levied upon site holders in accordance with AASB 107 Cash Flow impact on the results of subsequent years. where development or redevelopment leading to Statements. There were no signifi cant changes an increased number of beds occurs. This is levied due to alignment of the Board’s fi nancial upon completion of the development. statements presentation formats to AASB 1049.
Annual Report 2008–09 .39 Financial Statements For the year ended 31 October 2009
Site rental (h) Expenses from transactions assets have separate identifi able components that Site rental income from leased Crown land Employee Benefi ts have distinct useful lives and/or residual values, a is recognised annually in the comprehensive Employee benefi ts expenses include all costs separate depreciation rate is determined for each operating statement in accordance with the terms related to employment including wages and component. The estimated useful lives, residual and conditions of individual leases. salaries, leave entitlements, redundancy values and depreciation method are reviewed at the payments and superannuation contributions. end of each annual reporting period. Gate entry These are recognised when incurred, except for Gate entry revenue (including from the sale contributions in respect of defi ned benefi t plans. Interest expense of season access passes) is recognised when Interest expenses are recognised as expenses in the received. Superannuation period in which they are incurred. Interest expenses The amount charges the operating statement in include interest on Treasury Corporation of Victoria Land release respect of defi ned benefi t superannuation plans loans, and increases in the non interest bearing loan Revenue from the sale of rights to lease and represents the contributions made by the ARMB to with La Trobe University due to the unwinding of the develop crown land is recognised on the execution the superannuation plan in respect to the current discount to refl ect the passage of time. of a contract of sale, following approval by the services of current ARMB staff. Superannuation Minister. Any deposits received prior to approval contributions are made to the plans based on the (i) Other economic fl ows included in net result from the Minister and execution of contract of sale relevant rules of each plan. Other economic fl ows measure the change in volume are recorded as unearned revenue. or value of assets or liabilities that do not result from The Department of Treasury and Finance centrally transactions. Interest recognises the defi ned benefi t liability or surplus of Interest revenue is recognised upon the control of most Victorian government employees in such funds. Net gain/(loss) on non-fi nancial assets the right to receive the interest payment existing. Net gain/(loss) on non-fi nancial assets and liabilities Performance payments includes realised and unrealised gains and losses Grants Performance payments for the ARMB’s Executive from revaluations, impairments, and disposals of all Government grants and contributions are Offi cers and staff are based on a percentage of physical assets. recognised as operating revenue when an the annual salary package provided under their entitlement is established, and disclosed in the employment contracts. Unpaid, but committed, Disposal of non-fi nancial assets operating statement as government grants. employee performance payments are recognised Any gain or loss on the sale of non-fi nancial assets However grants and contributions received from as a liability in the fi nancial statements. Performance is recognised at the date that control of the asset is the Victorian State Government which were payments are assessed and paid annually where passed to the buyer and is determined after deducting originally appropriated by Parliament as additions applicable. from the proceeds the carrying value of the asset at to net assets or where the Minister for Finance that time. and the Minister for Environment have indicated Depreciation are in the nature of owners’ contributions are Depreciation is provided on infrastructure, property, accounted for as equity (contributed capital). plant and equipment, including freehold buildings but excluding land. Depreciation is calculated on a straight-line basis so as to write off the net cost or other revalued amount of each asset over its expected useful life to its estimated residual value. Where
40. Mt Buller and Mt Stirling Alpine Resort Management Board Financial Statements For the year ended 31 October 2009
Impairment of non-fi nancial assets (j) Financial assets ARMB as lessee Items of infrastructure, property, plant and Cash and deposits Finance leases are recognised as assets and equipment are assessed annually for indicators Cash and depoits, include cash equivalents, liabilities at amounts equal to the fair value of the of impairment. If there is an indication of comprise cash on hand and cash at bank, deposits lease property or, if lower, the present value of impairment, the assets concerned are tested held at call with fi nancial institutions, other short the minimum lease payment, each determined as to whether their carrying value exceeds their term highly liquid investments with original at the inception of the lease. The lease asset is recoverable amount. Where an assets carrying maturities of three months or less that are readily depreciated over the shorter of the estimated amount exceeds its recoverable amount, the convertible to known amounts of cash and which useful life of the asset or the term of the lease. difference is written-off as another economic fl ow are subject to an insignifi cant risk of changes in except to the extent that the write-down can be value and bank overdrafts. Minimum lease payments are allocated between debited to an asset revaluation reserve amount the principal component of the lease liability, and applicable to that class of asset. Receivables the interest expense calculated using the interest Receivables consist predominantly of debtors in rate implicit in the lease, and charged directly It is deemed that, in the event of the loss of an relation to goods and services, accrued investment to the comprehensive operating statement. asset, the future economic benefi ts arising from income and GST input tax credits recoverable. Contingent rentals associated with fi nance leases the use of the asset will be replaced unless a are recognised as an expense in the period in specifi c decision to the contrary has been made. Receivables are recognised initially are fair value which they are incurred. The recoverable amount for most assets and subsequently measured at amortised cost, is measured at the higher of depreciated using the effective interest rate method, less any Operating lease payments are recognised as replacement cost and fair value less costs to sell. accumulated impairment. an expense in the comprehensive operating Recoverable amount for assets held primarily statement on a straight line basis over the term of to generate net cash infl ows is measured at the A Provision for doubtful receivables is made when the lease, except where another systematic basis higher of the present value of future cash fl ows there is objective evidence that the debts may no is more representative of the time pattern of the expected to be obtained from the asset and fair be collected and bad debts are written off when benefi ts derived from the use of the leased asset. value less costs to sell. identifi ed (refer note 1(i)) (k) Non-fi nancial assets Impairment of fi nancial assets Leases Inventories Bad and doubtful debts are assessed on a regular Leases of property, plant and equipment are Inventories comprise stores and materials used in basis. Those bad debts considered as written off classifi ed as fi nance leases whenever the terms the construction of new works, operation of the by mutual consent are classifi ed as a transaction of the lease transfer substantially all the risks waste treatment plant, repair and maintenance of expense. The allowance for doubtful receivables and rewards of ownership. All other leases are existing assets and minor amounts of merchandise and bad debts not written off by mutual consent classifi ed as operating leases. material. These items are stated at the lower of are adjusted as ‘other economic fl ows’. cost and current replacement cost. ARMB as lessor Other gains/(losses) from other economic fl ows Rental income received from operating leases is Other gains/(losses) from other economic fl ows recognised on a straight line basis over the term of include the gains or losses from reclassifi cations the relevant lease. of amounts from reserves and/or accumulated surplus to net result, and from the revaluation of the present value of the long service leave liability due to changes in the bond interest rates.
Annual Report 2008–09 .41 Financial Statements For the year ended 31 October 2009
Property, plant and equipment Interest bearing liabilities All non-current physical assets except land Revaluation increases are credited directly to Interest bearing liabilities are initially measured at under declared roads are measured initially at equity in the revaluation reserve, except to the fair value, being the cost of the interest bearing cost and subsequently revalued at fair value less extent that an increase reverses a revaluation liabilities, net of transaction costs. accumulated depreciation and impairment. decrease in respect of that class of property, Non-current physical assets such Crown plant and equipment, previously recognised as Subsequent to initial recognition, interest bearing land are measured at fair value with regard an expense (other economic fl ows) in the net liabilities are measured at amortised cost with any to the property’s highest and best use after result, the increase is recognised as income (other difference between the initial recognised amount due consideration is made for any legal or economic fl ows) in determining the net result. and the redemption value being recognised in constructive restrictions imposed on the asset, Revaluation decreases are recognised immediately profi t and loss over the period of the interest public announcements or commitments made as expenses (other economic fl ows) in the net bearing liability using the effective interest rate in relation to the intended use of the asset. result, except to the extent that a credit balance method. Theoretical opportunities that may be available exists in the revaluation reserve in respect of the in relation to the asset are not taken into account same class of property, plant and equipment, they Provisions until it is virtually certain that the restrictions will are debited to the revaluation reserve. Provisions are recognised when the ARMB no longer apply. Revaluation increases and decreases relating to has a present obligation, the future sacrifi ce of individual assets within a class of property, plant economic benefi ts is probable, and the amount of Road network assets (including earthworks of and equipment, are offset against one another the provision can be measured reliably. the declared road networks but excluding land within that class but are not offset in respect of The amount recognised as a provision is the under roads) and other infrastructure assets are assets in different classes. best estimate of the consideration required to measured at fair value, determined by reference settle the present obligation at reporting date, to the asset’s depreciated replacement cost. Land Non-current physical assets constructed taking into account the risks and uncertainties under roads which was acquired prior to 1 July by the ARMB surrounding the obligation. Where a provision is 2008 is not recognised. Land under roads which The cost of non-current physical assets measured using the cashfl ows estimated to settle was acquired on or after 1 July 2008 is recognised constructed by the ARMB includes the cost of all the present obligation, its carrying amount is the at cost. materials used in construction, direct labour on the present value of those cashfl ows. project, and an appropriate proportion of variable Revaluations of non-current physical assets and fi xed overheads. Employee benefi ts Non-current physical assets measured at (i) Wages and salaries, annual leave and sick leave fair value are revalued in accordance with (l) Liabilities Liabilities for wages and salaries, including non- FRDs issued by the Minister for Finance. This Payables monetary benefi ts and annual leave expected to revaluation process normally occurs every fi ve Payables represent liabilities for goods and be settled within 12 months of the reporting date years, based upon the asset’s Government services provided to the ARMB that are unpaid at are recognised in the provision for employee Purpose Classifi cation, but may occur more the end of the fi nancial year. Payables are initially benefi ts in respect of employee services up to frequently if fair value assessments indicate measured at fair value, being the cost of the goods the reporting date, classifi ed as current liabilities material changes in values. Revaluation increases and services, and then subsequently measured at and measured at their nominal values. or decreases arise from differences between an amortised cost. asset’s carrying value and fair value.
42. Mt Buller and Mt Stirling Alpine Resort Management Board Financial Statements For the year ended 31 October 2009
(iii) Termination benefi ts Those liabilities that are not expected to be Termination benefi ts are payable when Transfers of net assets arising from administrative settled within 12 months are recognised employment is terminated before the normal restructurings are treated as distributions to or in the provision for employee benefi ts as retirement date, or when an employee accepts contributions by owners. current liabilities, measured at present value voluntary redundancy in exchange for these of the amounts expected to be paid when the benefi ts. The ARMB recognises termination (p) Functional and presentation currency liabilities are settled using the remuneration rate benefi ts when it is demonstrably committed to The functional currency of the ARMB is the expected to apply at the time of settlement. either terminating the employment of current Australian dollar, which has also been identifi ed as employees according to a detailed formal plan the presentation currency of the AMRB. (ii) Long service leave without possibility of withdrawal or providing Liability for long service leave (LSL) is recognised termination benefi ts as a result of an offer made (q) Rounding of amounts in the provision for employee benefi ts. to encourage voluntary redundancy. Benefi ts Amounts in the fi nancial statements have been falling due more than 12 months after balance rounded to the nearest thousand dollars, unless Current liability – unconditional LSL is sheet date are discounted to present value. otherwise stated. disclosed in the notes to the fi nancial statements as a current liability even where Employee benefi ts on-costs (r) New accounting standards and the ARMB does not expect to settle the liability Employee benefi ts on-costs (payroll tax, interpretations within 12 months because it will not have the workers compensation, superannuation) are Certain new accounting standards and unconditional right to defer the settlement of recognised separately from provision for interpretations have been published that are not the entitlement should an employee take leave employee benefi ts. mandatory for the 31 October 2009 reporting within 12 months. period. DTF assesses the impact of these new (m) Commitments standards and advises departments and other The components of this current LSL liability Commitments are disclosed at their nominal value entities of their applicability and early adoption are measured at: and inclusive of the GST payable. where applicable. > present value—component that the ARMB does not expect to settle within 12 months; and (n) Contingent assets and contingent liabilities As advised in Note 1(c) the ARMB has early > nominal value—component that the ARMB Contingent assets and contingent liabilities are not adopted the September 2007 version of AASB 101. expects to settle within 12 months. recognised in the balance sheet, but are disclosed As at 31 October 2009, the following standards by way of a note and, if quantifi able, are measured and interpretations (as applicable to the ARMB) Non-current liability – conditional LSL is at nominal value. Contingent assets and liabilities had been issued but were not mandatory for disclosed as a non-current liability. There is are presented inclusive of GST receivable or fi nancial year ending 31 October 2009. The ARMB an unconditional right to defer the settlement payable respectively. has not, and does not intend to, adopt these of the entitlement until the employee has standards early. completed the requisite years of service. (o) Equity Contributions by owners This non-current LSL liability is measured at Additions to net assets which have been present value. Gain or loss following revaluation of designated as contributions by owners are the present value of non-current LSL liability due to recognised as contributed capital. Other changes in bond interest rates is recognised as an transfers that are in the nature of contributions other economic fl ow (refer to Note 1(j)). or distributions have also been designated as contributions by owners.
Annual Report 2008–09 .43 Financial Statements For the year ended 31 October 2009
Standard / Interpretation Summary Applicable for annual Impact on ARMB reporting periods fi nancial statements beginning or ending on
AASB 2008-7 Amendments to Changes mainly relate to treatment Beginning 1 Jan 2009 Not applicable as the ARMB has Australian Accounting Standards – of dividends from subsidiaries, no subsidiaries, associates or Cost of an Investment in a Subsidiary, associates and jointly controlled entities. jointly controlled entities. Jointly Controlled Entity or Associate [AASB 1, AASB 118, AASB 121, AASB 127 & AASB 136]
Interpretation 15 – Agreements This Interpretation addresses two issues: Beginning 1 Jan 2009 Impact is being evaluated for the Construction of Real Estate 1. Is the agreement within the scope [AASB 118] of AASB 111 Construction Contracts or AASB 118 Revenue? 2. When should revenue from the construction of real estate be recognised?
AASB 2008-9 Amendments to Amendments to AASB 1049 for Beginning 1 Jan 2009 Not applicable to public sector AASB 1049 for Consistency consistency with AASB 101 entities except for certain with AASB 101 (September 2007) version. presentation formats.
AASB 2009-1 Amendments to The amendments arise from the AASB’s Operative for periods The ARMB continues to expense Australian Accounting Standards – review of the requirement in AASB 123 beginning on or after borrowing costs. Borrowing Costs of Not-for-Profi t to capitalise borrowing costs. 1 Jan 2009 that end on Public Sector Entities In February 2009, the AASB decided that or after 30 Apr 2009 [AASB 1, AASB 111 & AASB 123] not-for-profi t public sector entities could continue to expense borrowing costs attributable to qualifying assets pending the outcome of various IPSASB/AASB projects.
AASB 2009-2 Amendments to These amendments arise from the issuance Operative for periods Impact is being evaluated. Australian Accounting Standards – of Improving Disclosures about Financial beginning on or after Improving Disclosures about Instruments (Amendments to IFRS 7) by 1 Jan 2009 that end on Financial Instruments [AASB 4, the IASB in March 2009. The amendments or after 30 Apr 2009 AASB 7, AASB 1023 & AASB 1038] require enhanced disclosures about fair value measurements and liquidity risk.
AASB 2009-6 Amendments to This standard makes numerous editorial Operative for periods Impact is expected to be Australian Accounting Standards amendments as a consequence of the beginning on or after insignifi cant. issuance in September 2007 of a revised 1 Jan 2009 that end on AASB 101. For example, the term or after 30 Jun 2009 ‘revaluation reserve’ is changed to ‘revaluation surplus’.
44. Mt Buller and Mt Stirling Alpine Resort Management Board Financial Statements For the year ended 31 October 2009
Standard / Interpretation Summary Applicable for annual Impact on ARMB reporting periods fi nancial statements beginning or ending on
AASB 2008-3 Amendments to This Standard gives effect to Beginning 1 Jul 2009 Impact is expected to be Australian Accounting Standards consequential editorial changes to other insignifi cant. arising from AASB 3 & AASB 127 Australian Accounting Standards arising from [AASB 1, 2, 4, 5, 7, 101, 107, 112, 114, 116, revised AASB 3 and amended AASB 127. 121, 128, 131, 132, 133, 134, 136, 137, 138 & 139 and Interpretations 9 & 107]
AASB 2008-6 Further Amendments to The amendments require all the assets Beginning 1 Jul 2009 Impact is expected to be Australian Accounting Standards arising and liabilities of a for-sale subsidiary to be insignifi cant as the ARMB from the Annual Improvements project classifi ed as held-for-sale and clarify the has no subsidiaries. [AASB 1 & AASB 5] disclosures required when the subsidiary is part of a disposal group that that meets the defi nition of a discontinued operation.
AASB 2008-8 Amendments to The amendments to AASB 139 clarify how Beginning 1 Jul 2009 Impact is expected to be Australian Accounting Standards – the principles that determine whether a insignifi cant. Eligible Hedged Items [AASB 139] hedged risk or portion of cash fl ows is eligible for designation as a hedged item should be applied in particular situations.
AASB 2008-11 Amendments to This Standard makes amendments as a Beginning 1 Jul 2009 Impact is insignifi cant. Australian Accounting Standard – result of a review by the AASB, of the Business Combinations Among suitability of applying the requirements in that Not-for-Profi t Entities [AASB 3] Standard for business combinations among not-for-profi t entities. Amendments only relate to local governments.
AASB 2008-13 Amendments to Some of the amendments are in respect Beginning 1 Jul 2009 Impact is being evaluated. Australian Accounting Standards of the classifi cation, presentation and arising from AASB Interpretation 17 – measurement of non-current assets held for Distributions of Non-cash Assets to distribution to owners in their capacity as Owners [AASB 5 & AASB 110] owners.
AASB 2009-4 Amendments to Various consequential amendments to Beginning 1 Jul 2009 Impact is expected to be Australian Accounting Standards existing standards as a result of IASB’s insignifi cant. arising from the Annual Improvements Annual Improvement’s project. Project [AASB 2 and AASB 138 and AASB Interpretations 9 & 16]
Annual Report 2008–09 .45 Financial Statements For the year ended 31 October 2009
Standard / Interpretation Summary Applicable for annual Impact on ARMB reporting periods fi nancial statements beginning or ending on
AASB 2009-7 Amendments to A suite of amendments as a result of Beginning 1 Jul 2009 Impact is being evaluated. Australian Accounting Standards editorial corrections by the AASB and by the [AASB 5, 7, 107, 112, 136 & 139 IASB, some of which relate to correcting and Interpretation 17] errors made in AASB 2008-12.
AASB 2009-5 Further Amendments Some amendments will result in accounting Beginning 1 Jul 2010 Impact is being evaluated. to Australian Accounting Standards changes for presentation, recognition or arising from the Annual Improvements measurement purposes, while other Project [AASB 5, 8, 101, 107, 117, amendments will relate to terminology 118, 136 & 139] and editorial changes.
46. Mt Buller and Mt Stirling Alpine Resort Management Board Financial Statements For the year ended 31 October 2009
Note 2009 2008 $‘000 $‘000
NOTE 2: Expenses from transactions
(a) Employee benefi ts: Superannuation expense 204 209 Salaries and wages 2,330 2,420 Other employee benefi ts 195 323 Total employee benefi ts 2,729 2,952
(b) Finance costs: Accretion of non interest bearing loan 91 234 Interest expense 73 78 Total fi nance costs 164 312
(c) Depreciation: Buildings 269 275 Infrastructure Assets 1,227 1,466 Leased Assets 7 11 Plant and Equipment 336 343 Total depreciation 1,839 2,095
(d) Other: Bad and doubtful debts from transactions 21 -
NOTE 3: Other economic fl ows included in net result
(a) Net gain/(loss) on non-fi nancial assets Net gain/(loss) on disposal of physical assets (1) (470)
(b) Other gains/(losses) from other economic fl ows Effect of change in bond rates on long service leave provision (1) (19)
Annual Report 2008–09 .47 Financial Statements For the year ended 31 October 2009
Note 2009 2008 $‘000 $‘000
NOTE 4: Revision of accounting estimates
Reassessment of estimated useful lives of assets During the fi nancial year the ARMB reassessed the estimated total useful lives of Roads and Car Year ending 31 October $’000 Parks Infrastructure from an average of 30 years to 50 years. The net fi nancial effect of this reassess- 2010 315 ment in the current fi nancial year was a decrease in depreciation expense of the ARMB of $314,753. 2011 315 Assuming the assets are held until the end of their estimated useful lives, depreciation of the ARMB 2012 315 for the next four years in relation to these assets will be decreased by the following amounts: 2013 315
NOTE 5: Note 2009 2008 Receivables $‘000 $‘000
Current Trade debtors 390 464 Provision for doubtful debts (see note 5(a)) (6) - 384 464
Other debtors 99 223 Capital in-goings 11 11 494 698 Non-Current Capital in-goings 22 33
Total Receivables 516 731
The carrying value of debtors at 31 October 2009 approximates fair value. A provision of $5,500(2008: $nil) has been made in regard to the possible non-collection of Trade Debtors. Interest is charged on overdue site rentals and utility charges at a rate fi xed by Section 2 of the Penalty Interest Rates Act 1983, which, at 31 October 2009 was 10% per annum.
48. Mt Buller and Mt Stirling Alpine Resort Management Board Financial Statements For the year ended 31 October 2009
Note 2009 2008 $‘000 $‘000
NOTE 5: Receivables (continued)
(a) Movement in the provision for doubtful debts Balance at the beginning of the year - 2 Reversal of provision for receivables written off during the year as uncollectible - (2) Reversal of unused provision recognised in the net result - - Increase in provision recognised in the net result 6 - Balance at end of year 6 -
(b) Ageing analysis of receivables Please refer to Note 17 for the ageing analysis of receivables.
(c) Nature and extent of risk arising from receivables Please refer to Note 17 for the nature and extent of credit risk arising from receivables.
NOTE 6: Inventories
Supplies and materials – at cost 21 24
NOTE 7: Other assets
Prepayments (current) 330 219
Annual Report 2008–09 .49 Financial Statements For the year ended 31 October 2009
Note 2009 2008 $‘000 $‘000
NOTE 8: Infrastructure, Property, Plant and Equipment
Land Land at Fair Value – Mount Buller 144,676 144,676 Land at Fair Value– Mount Stirling 5,637 5,637 150,313 150,313 Buildings Buildings at Fair Value 11,511 11,511 Buildings at Cost 477 365 Less Accumulated Depreciation (595) (326) Closing WDV 11,393 11,550
Infrastructure Assets Infrastructure Assets at Fair Value 23,356 23,356 Infrastructure Assets at Cost 5,223 4,810 Less Accumulated Depreciation (2,693) (1,466) Closing WDV 25,886 26,700
Leased Assets Leased assets at Fair Value 58 58 Less Accumulated Depreciation (54) (47) Closing WDV 4 11
Plant and Equipment Plant and Equipment at Fair Value 3,112 3,007 Less Accumulated Depreciation (1,758) (1,576) Closing WDV 1,354 1,431
Art works as Fair Value 136 118
Capital Work in Progress 479 365
Total Infrastructure, Property, Plant and Equipment 189,565 190,488
50. Mt Buller and Mt Stirling Alpine Resort Management Board Financial Statements For the year ended 31 October 2009
Note 2009 2008 $‘000 $‘000
NOTE 8: Infrastructure, Property, Plant and Equipment (continued)
Infrastructure Leased Plant and Art Land Buildings Assets Assets Equipment Works CWIP Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Year ended 31 October 2008 Opening net book value 150,313 12,064 23,356 22 1,261 - 3,837 190,853 Additions - 52 10 - 558 118 1,603 2,341 Disposals - (547) - - (45) - (19) (611) Depreciation - (275) (1,466) (11) (343) - - (2,095) Transfers - 256 4,800 - - - (5,056) - Closing net book value 150,313 11,550 26,700 11 1,431 118 365 190,488
Year ended 31 October 2009 Opening net book value 150,313 11,550 26,700 11 1,431 118 365 190,488 Additions - - - - 253 18 727 998 Disposals - - - - (14) - (68) (82) Depreciation - (269) (1,227) (7) (336) - - (1,839) Transfers - 112 413 - 20 - (545) - Closing net book value 150,313 11,393 25,886 4 1,354 136 479 189,565
The following useful lives are used in the calculation of depreciation for 2009:
Buildings 15 to 84 years Roads and car parks infrastructure assets 50 years Infrastructure assets 2 to 100 years Other plant and equipment 5 to 20 years
Land, buildings and infrastructure assets were revalued at 31 October 2007 by the Victorian Valuer General applying an indexation method to 31 October 2004 fair values (being the date of the immediate previous revalutions).
Annual Report 2008–09 .51 Financial Statements For the year ended 31 October 2009
Note 2009 2008 $‘000 $‘000
NOTE 9: Infrastructure, Property, Plant and Equipment
Accounts payable – current 69 14 Other creditors and accruals - current 500 620 Total payables 569 634
All trade and other creditors are non-interest bearing. The carrying amount of creditors at balance date approximates fair value.
(a) Maturity analysis of payables Please refer to Note 17 for the ageing analysis of payables.
(b) Nature and extent of risk arising from payables Please refer to Note 17 for the nature and extent of risks arising from payables
NOTE 10: 2009 2008 Borrowings $‘000 $‘000
Current Interest bearing loan (i) 102 95 Non-interest bearing loan (ii) 217 217 319 312 Non-Current Interest bearing loan (i) 910 1,013 Non-interest bearing loan (ii) 1,874 1,999 2,784 3,012 Total Borrowings 3,103 3,324
(i) An interest bearing loan was taken out with the Treasury Corporation of Victoria in 2007, bearing a fi xed interest rate of 6.84%, repayable in quarterly instalments over 10 years. (ii) Non interest bearing loans relate to the deferred settlement with La Trobe University on the acquisition of the Buller Community Centre. The loan is recorded at its net present value at the date of acquisition, discounted over 15 years using the 10 year government bond rate of 5.28%. The loan is unsecured.
52. Mt Buller and Mt Stirling Alpine Resort Management Board Financial Statements For the year ended 31 October 2009
Note 2009 2008 $‘000 $‘000
NOTE 10: Borrowings (continued)
(a) Maturity analysis of interest bearing liabilities Please refer to Note 17 for the ageing analysis of borrowings.
(b) Nature and extent of risk arising from interest bearing liabilities Please refer to Note 17 for the nature and extent of risks arising from interest bearing liabilities.
(c) Defaults and breaches During the current and prior year, there were no defaults and breaches of any of the loans.
NOTE 11: Note 2009 2008 Employee provisions $‘000 $‘000
Current Annual leave entitlements 103 197 Accrued day off (ADO) entitlements 7 12 Unconditional long service leave entitlements (a) 238 195 Staff bonuses 25 50 373 454
Non-Current Conditional long service leave entitlements 65 96
Total Employee Benefi ts 438 550
(a) Of this amount, the Board expects to pay $5,934 (2008: $14,578) within the next 12 months.
Long service leave entitlements for those employees with 7 or more years continuous service are treated as a current liability and recognised at nominal amounts. Long service leave entitlements for those employees with less than 7 years continuous service are treated as a non-current liability and are discounted to present values.
Annual Report 2008–09 .53 Financial Statements For the year ended 31 October 2009
Note 2009 2008 $‘000 $‘000
NOTE 12: Superannuation
Employees of the ARMB are entitled to receive superannuation benefi ts and the ARMB contributes to both defi ned benefi t and defi ned contribution plans. The defi ned benefi t plan provides benefi ts based on years of service and fi nal average salary.
The ARMB does not recognise any defi ned benefi t liability in respect of the plan because the entity has no legal or constructive obligation to pay future benefi ts relating to its employees; its only obliga- tion is to pay superannuation contributions as they fall due. The Department of Treasury and Finance recognises and discloses the State’s defi ned benefi t liabilities in its fi nancial statements.
However, superannuation contributions paid or payable for the reporting period are included as part of employee benefi ts in the Comprehensive Operating Statement of the ARMB.
54. Mt Buller and Mt Stirling Alpine Resort Management Board Financial Statements For the year ended 31 October 2009
Note 2009 2008 $‘000 $‘000
NOTE 12: Superannuation (continued)
The name and details of the major employee superannuation funds and contributions made by the ARMB are as follows: Scheme: Type Cont’n 2009 2008 Range (%) $’000 $’000 Emergency Services and State Super Defi ned Benefi t 9.4-12.6 22 20 AJ Abercrombie Super Fund Accumulation 9 1 1 AMP Flexible Lifetime Accumulation 9 10 15 ANZ Life Assurance Accumulation 9 - 2 ANZING Accumulation 9 3 2 Asgard Capital Management Accumulation 9 12 12 Australian Super Accumulation 9 9 14 BT Fund Accumulation 9 19 14 C-Bus Accumulation 9 2 2 Colonial First State Investment Accumulation 9 7 7 Combined Fund Accumulation 9 1 1 Dolling Family Superannuation Accumulation 9 4 4 Dundas Superannuation Fund Accumulation 9 1 1 Equipsuper Accumulation 9 1 1 HESTA Accumulation 9 - 2 Host Plus Superannuation Accumulation 9 6 2 Health Superannuation Accumulation 9 3 6 Independent Schools Super Fund Accumulation 9 2 2 ING Master Fund Accumulation 9 9 8 Legal Super Accumulation 9 5 5 Macquarie ADF Superannuation Fund Accumulation 9 1 1 MLC Masterkey Superannuation Accumulation 9 7 6 Retail Employees Superannuation Trust Accumulation 9 2 1 Prime Super Accumulation 9 2 - Sunsuper Superannuation Fund Accumulation 9 4 7 Spectrum super Accumulation 9 2 - Trustee for Topnotch Accumulation 9 1 - Tower Accumulation 9 5 4 Trujon Superannuation Fund Accumulation 9 1 1 TWU Super Accumulation 9 4 - Vic Super Accumulation 9 63 77 Vision Superannuation Accumulation 9 9 9
Total contributions for the period were $217,225 (2008: $224,647) and there were no outstanding contributions at the end of the period.
Annual Report 2008–09 .55 Financial Statements For the year ended 31 October 2009
Note 2009 2008 $‘000 $‘000
NOTE 13: Other liabilities
Deferred revenue - current 251 216
NOTE 14: Leases
Crown land Crown Land is recorded in the accounts of the ARMB at the Valuer-General’s valuation. The ARMB has brought to account the rental revenue in relation to the leased sites and does not account for depreciation since the class of assets is defi ned as land. The ARMB, acting as a Committee of Management under Section 38 of the Alpine Resorts (Management) Act 1997, manages 176 Crown lease arrangements with site holders. The lease arrangements cover lease periods from three to ninety-nine years.
Gas network The right to operate the LP Gas system was licensed to Indigo Shire Council in June 2002. The ARMB has retained the majority of the infrastructure assets associated with the delivery of gas to the site holders on the mountain. The ARMB has leased the use of these assets to Indigo Shire Council for ten years and will receive $100,000 per annum (indexed for CPI) during the period of the lease. The lease contains provisions for further ten year options. All assets remain the property of the ARMB at the conclusion of the lease period.
2009 2008 $‘000 $‘000 Non-cancellable operating lease receivables Not longer than 1 year 3,638 3,616 Longer than 1 year and not longer than 5 years 13,690 13,639 Longer than 5 years 86,519 88,333 103,847 105,588
56. Mt Buller and Mt Stirling Alpine Resort Management Board Financial Statements For the year ended 31 October 2009
Note 2009 2008 $‘000 $‘000
NOTE 15: Commitments for expenditure
The following commitments have not been recognised as liabilities in the fi nancial statements:
(a) Capital expenditure commitments Property, plant and equipment (a) Within one year - - Later than one year but not later than 5 years 186 186 Longer than 5 years 1,550 1,550 Total capital expenditure commitments 1,736 1,736
(b) Operating expenditure commitments Other operating commitments Within one year 1,614 1,575 Later than one year but not later than 5 years 3,145 3,684 Longer than 5 years - - Total operating expenditure commitments 4,759 5,259
(a) The ARMB has been allocated a grant of $1.55 million (excl GST) from the Victorian Department of Transport to assist in funding the Buller/Stirling Touring Link road project. The funding is conditional upon receiving other grant funds to render the project fully fi nanced. The project involves the construction of a link road between Mount Buller and Mount Stirling which will provide an additional emergency access road should the existing Mount Buller road be closed temporarily for any reason.
$186,363 of the allocated funding has been received as at 31 October 2008. Aside from preliminary design work and other tasks undertaken in connection with the development of a planning permit application, no spend has been made on the project to date, however the Board has committed $1.55 million of its own funds (via the Capital Improvement Fund – refer note 18) to the project, and is currently lobbying the Federal Government for an allocation of funds.
The project is anticipated to cost approximately $4.65 million.
(b) In regards to future operating commitments, the ARMB has the following: > An annual commitment to Buller Ski Lifts Pty Ltd for snow making. $200,605 + GST was paid in 2008-09. The dollar value of this commitment for 2009-10 is approximately $203,000 + GST. > A commitment exists to sponsor the annual Victorian Inter-Schools Skiing Competition for $25,000 per annum. This agreement expires 31 October 2012. > A commitment to Tourism Victoria to contribute to the Board of Alpine Regional Tourism (BART) for an amount of $155,000 per annum to promote regional tourism in alpine areas. > A commitment to the Alpine Resorts Coordinating Council (ARCC) for $224,130 per annum, as directed by the Minister. > A commitment to Mansfi eld-Mt Buller Regional Tourism Association Ltd (trading as High Country Reservations) for sales and promotion and the provision of tourist information services. An amount of $129,787 has been committed for sales and promotion activities for 2009-10 and an amount of $50,602 payable for visitor information services for 2009-10. > A garbage collection contract was entered into on 1 June 2005 and the base cost of the contract is $375,000 per annum. The garbage contract is for eight years starting from 2005 (four years left to run) with the ARMB having the further option to add four one year extensions. > An agreement has been entered into with DSE for the ‘Burramys Recovery Plan’. This commitment involves the expenditure of $1.163 million over fi ve years starting in the 2005-06 fi nancial year. The amount of $195,700 has been committed for the 2009-10 fi nancial year. > The Mansfi eld Medical Centre has been issued with a license to operate the Mt Buller Medical centre over 3 snow seasons, commencing in 2009. A service fee is paid by the ARMB to MMC of $158,500 per annum, indexed according to annual CPI. The 2009-10 commitment approximates $162,000.
Annual Report 2008–09 .57 Financial Statements For the year ended 31 October 2009
Note 2009 2008 $‘000 $‘000
NOTE 16: Contingent assets and liabilities
As at 31 October 2009 the ARMB has an outstanding claim against a lessee for breach of lease. The claim is expected to be heard before the Supreme Court of Victoria in 2010 and whilst the likely fi nancial result of the claim cannot be estimated at the time of this report, management believe it is probable that an economic benefi t will be received by the ARMB.As at 31 October 2009 the ARMB has an outstanding claim against a lessee for breach of lease. The claim is expected to be heard before the Supreme Court of Victoria in 2010 and whilst the likely fi nancial result of the claim cannot be estimated at the time of this report, management believe it is probable that an economic benefi t will be received by the ARMB.
NOTE 17: Financial instruments
(a) Signifi cant accounting policies The ARMB’s principal fi nancial instruments comprise of: > cash assets; > term deposits; > receivables; > payables; and > borrowings.
Details of the signifi cant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement, and the basis on which income and expenses are recognised, with respect to each class of fi nancial asset, fi nancial liability and equity instrument are disclosed in Note 1 to the fi nancial statements.
The carrying amounts of the ARMB’s fi nancial assets and fi nancial liabilities by category are in the table below.
Note Category Carrying amount Carrying amount 2009 2008 Financial assets $‘000 $‘000 Cash and deposits 18 N/A 6,903 5,698 Receivables 5 Loans and receivable 516 731 (at amortised cost) Total fi nancial assets 7,419 6,429
Financial liabilities Payables 9 Financial liabilities measured 569 634 at amortised cost Interest bearing liabilities 10 Financial liabilities measured 1,012 1,108 at amortised cost Non-interest bearing loans 10 Financial liabilities measured 2,091 2,216 at amortised cost Total fi nancial liabilities 3,672 3,958
58. Mt Buller and Mt Stirling Alpine Resort Management Board Financial Statements For the year ended 31 October 2009
Note 2009 2008 $‘000 $‘000
NOTE 17: Financial instruments (continued)
(b) Credit risk Credit risk arises from the fi nancial assets of the ARMB, which comprise cash and cash equivalents, trade and other receivables. The ARMB’s exposure to credit risk arises from the potential default of counter parties on their contractual obligations resulting in fi nancial loss to the ARMB.
Credit risk associated with the ARMB’s fi nancial assets is minimal because the majority of debtors arise under lease arrangements and default of payment would constitute a breach of the contractual lease agreement which could result in termination of the lease.
The ARMB does not engage in hedging for its fi nancial assets and mainly obtains fi nancial assets that are on fi xed interest for the term of the deposit. The carrying amount of fi nancial assets recorded in the fi nancial statements, net of any allowances for losses, represents the ARMB’s maximum exposure to credit risk without taking account of the value of any collateral obtained.
As at the reporting date, there is no event to indicate that any of the fi nancial assets were impaired. There are no fi nancial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and they are stated at the carrying amounts as indicated. The following table discloses the ageing only of fi nancial assets that are past due but not impaired:
($ thousand) Weighted Carrying Interest rate exposure Not past due Past due but not impaired Impaired average amount Fixed Variable Non- and not Less 1-3 3 fi nancial effective interest interest interest impaired than months months assets interest rate rate rate bearing 1 month – 1 year Receivables % 2009 3.95 390 154 - 368 355 7 4 150 6 2008 1.38 731 92 - 639 532 33 43 123 -
(c) Liquidity risk Liquidity risk arises when the ARMB is unable to meet its fi nancial obligations as they fall due. The ARMB continually manages risk through monitoring future cash fl ows and maturities planning to ensure adequate holding of high quality liquid assets and dealing in highly liquid markets as required.
The ARMB’s exposure to liquidity risk is deemed insignifi cant based on prior periods’ data and current assessment of risk. The ARMB has established and maintains cash in snow drought, capital improvement and debt repayment funds to enable the ARMB to meet unexpected cash requirements.
Maximum exposure to liquidity risk is the carrying amounts of fi nancial liabilities.
Annual Report 2008–09 .59 Financial Statements For the year ended 31 October 2009
Note 2009 2008 $‘000 $‘000
NOTE 17: Financial instruments (continued)
(c) Liquidity risk (continued) The following table discloses the contractual maturity analysis for the ARMB’s fi nancial liabilities:
($ thousand) Weighted Carrying Interest rate exposure Nominal Maturity dates average amount Fixed Variable Non- amount Less 1-3 3 1-5 effective interest interest interest than months months years interest rate rate rate bearing 1 month – 1 year 2009 % Payables - 569 - - 569 569 - 569 - - Borrowings 4.05 3,103 1,012 2,091 - 3,103 - 242 77 1,352 3,672 1,012 2,091 569 3,672 - 811 77 1,352 2008 Payables - 634 - - 634 634 - 634 - - Borrowings 4.58 3,324 1,108 2,216 - 3,324 - 240 72 1,319 3,958 1,108 2,216 634 3,958 - 874 72 1,319
(d) Market risk The Board’s exposure to market risk is primarily through interest rate risk which might arise primarily through the Board’s interest bearing liabilities. Minimisation of risk is achieved by mainly undertaking fi xed rate or non-interest bearing fi nancial instruments.
The Board’s exposure to interest rate risk is set out in the following table:
($ thousand) Interest rate risk Carrying - 2% + 2% 2009 amount Net result Equity Net result Equity Financial assets: Cash and cash equivalents 6,903 138 (138) (138) 138 Receivables 516 3 (3) (3) 3 Financial liabilities: Payables 569 - - - - Borrowings 3,103 (62) 62 62 (62) Total increase/(decrease) 79 (79) (79) 79
60. Mt Buller and Mt Stirling Alpine Resort Management Board Financial Statements For the year ended 31 October 2009
Note 2009 2008 $‘000 $‘000
NOTE 18: Cash fl ow information
(a) Reconciliation of cash and cash equivalents
Cash at bank and on hand 497 1,098 Deposits on call 6,406 4,600 Balance as per cash fl ow statement 6,903 5,698
The ARMB does not have access to a bank overdraft as at 31 October 2009. The weighted average interest rate applicable to cash at bank and on hand is 1.8%. The deposits on call are interest bearing fl oating rates between 3.2% and 3.7%, with an average maturity of 24 days.
Included in these cash balances are amounts set aside for use as the ARMB’s Snow Drought Fund of $600,000 (2008: $600,000), Debt Repayment Fund of $1,000,000 (2008: $1,000,000) and Capital Improvement Fund of $3,000,000 (2008: $3,236,363). These funds have been established to comply with the Minis- ter of Environment’s Alpine Reform Package program, the aim of which was to improve fi nancial governance and thus the fi nancial sustainability of the Alpine Resort Management Boards.
The Snow Drought Fund may be drawn upon with Ministerial approval in the event of a poor snow season which leads to a liquidity shortage as a result of a reduction in visitor related revenue.
The Debt Repayment Fund will be drawn upon to repay outstanding debt when required, in times of low cash resources and/or fi nancial hardship.
The purpose of the Capital Improvement Fund is to provide a pool of internally generated funds to fi nance asset replacement and capital works expenditure.
Annual Report 2008–09 .61 Financial Statements For the year ended 31 October 2009
Note 2009 2008 $‘000 $‘000
NOTE 18: Cash fl ow information (continued)
(b) Reconciliation of net result for the period to net cash fl ows from operating activities
Net result for the period 538 (130) Non-cash movements: Depreciation 1,839 2,095 Accretion 91 234 Recognition of Art Work (18) (118)
Movements included in investing and fi nancing activities: Net (Profi t)/Loss on Sale of Fixed Assets 1 490 Bad and doubtful debts expense 21 -
Movements in assets and liabilities: Decrease/(Increase) in Trade and Other Debtors 198 (37) Decrease/(Increase) in Inventories 3 (5) Decrease/(Increase) in Other Current Assets (111) 34 Decrease/(Increase) in Other Non-Current Assets 11 10 Increase/(Decrease) in Trade and Other Creditors (80 ) (149) Increase/(Decrease) in Current Provisions (81) 82 Increase/(Decrease) in Non-Current Provisions (31) 62 Increase/(Decrease) in Unearned Revenue 35 165 Net cash fl ows from/(used in) operating activities 2,416 2,733
NOTE 19: Asset revaluation reserve
Balance at beginning of the fi nancial year 51,668 51,811 Revaluation of land, buildings and infrastructure - - Disposal of assets - (143) Balance at the end of the fi nancial year 51,668 51,668
62. Mt Buller and Mt Stirling Alpine Resort Management Board Financial Statements For the year ended 31 October 2009
Note 2009 2008 $‘000 $‘000
NOTE 20: Responsible persons
(a) Board meetings The following table records the attendance of members at board meetings between 1 November 2008 and 31 October 2009:
Total Meetings Meetings Board Members while in offi ce Attended John Dyson (Chairman) 10 10 Don Cummins (Deputy Chairman) 10 7* Judy Dixon 10 10 Bruce Dowding 10 10 Susan Hocking 10 10 Andrew Abercrombie 10 10 Stuart Worn 10 10 * Don Cummins was granted a leave of absence from the May meeting.
(b) Responsible persons The names of persons who were responsible persons at any time during the fi nancial year were: Gavin Jennings MLC, (Minister for the Environment and Climate Change) John Dyson, (Chairman of ARMB) Don Cummins, (Deputy Chairman of ARMB) Judy Dixon, (ARMB Member) Bruce Dowding, (ARMB Member) Susan Hocking, (ARMB Member) Andrew Abercrombie, (ARMB Member) Stuart Worn, (ARMB Member) Philip Nunn, (Chief Executive Offi cer – ceased employment 30 September 2009) Tony Petersen, (Interim Chief Executive Offi cer – from 1 October 2009)
Remuneration of Responsible Persons Remuneration received, or due and receivable from the ARMB in connection with the management of the ARMB for the fi nancial period ended 31 October 2009 was $331,269 (2008: $266,805). Total remuneration in 2009 includes a termination payment and entitlements ($32,847 long service leave and $35,321 annual leave) for the outgoing CEO. The number of responsible persons whose remuneration from the ARMB was within the specifi ed bands is as follows: $000’s 2009 2008 1–10 7 6 11–20 1 1 201–210 - 1 271–280 1 - The relevant Minister’s remuneration is reported separately in the fi nancial statements of the Department of Premier and Cabinet.
Annual Report 2008–09 .63 Financial Statements For the year ended 31 October 2009
Note 2009 2008 $‘000 $‘000
NOTE 20: Responsible persons (continued)
Retirement Benefi ts of Responsible Persons There were no retirement benefi ts paid by the ARMB in conjunction with the retirement of Responsible Persons of the ARMB during the fi nancial year.
Loans At 31 October 2009 there were no loans in existence that have been made, guaranteed or secured by the Board to a Responsible Person of the ARMB or a related party of a Responsible Person.
Shares There were no interests in the shares of related entities held by Responsible Persons of the ARMB during the fi nancial period ended 31 October 2009.
Related party transactions John Dyson is a member of Yurredla Ski Club, an organisation which is a leaseholder on Mount Buller. Mr Dyson is also a member of the Ski Club of Victoria, the Mount Buller Race Club, and the Alpine Resorts Coordinating Council (ARCC). He receives remuneration of $7,700 annually from the ARCC. Mr Dyson’s dependent daughter is a part time ski instructor for Buller Ski Lifts Pty Ltd.
Bruce Dowding is a director of the Buller Ski Lifts Pty Ltd group of companies that has many contractual arrangements with the ARMB. Mr Dowding is also a Board Member of the Mansfi eld-Mount Buller Regional Tourism Association Ltd (MMBRTA). Mr Dowding received no direct remuneration from this position.
Stuart Worn is a member of Alkira Ski Club, an organisation which is a leaseholder on Mount Buller. Mr Worn is also a member of the Ski Club of Victoria.
Andrew Abercrombie is a member of Ski Club of Victoria, and the Mount Buller Race Club. Mr Abercrombie has an interest in an apartment located at Alto Villas, Mt Buller. Mr Abercrombie is also employed by Buller Ski Lifts Pty Ltd as a ski instructor.
Judy Dixon is a member of the Board of Alpine Resort Tourism (BART). Ms Dixon did not receive any remuneration from BART.
Susan Hocking is a member of the Ski Club of Victoria, and a committee member of the National Alpine Museum.
Don Cummins has no related interests in the operation of the ARMB.
Philip Nunn, during the period of his employment as CEO with the ARMB, was on the boards of the Mansfi eld-Mount Buller Regional Tourism Association Ltd (MMBRTA) and the Board of Alpine Regional Tourism (BART). Mr Nunn was also a committee member of the National Alpine Museum. Mr Nunn received no direct remuneration from these positions.
Tony Petersen has no related interests in the operations of the ARMB.
64. Mt Buller and Mt Stirling Alpine Resort Management Board Financial Statements For the year ended 31 October 2009
Note 2009 2008 $‘000 $‘000
NOTE 20: Responsible persons (continued)
The National Alpine Museum received a grant of $25,000 during this fi nancial year from the ARMB.
Mansfi eld-Mount Buller Regional Tourism Association Ltd (MMBRTA) is a company limited by guarantee of which the ARMB is a guarantor. Transactions to the value of $310,614 (2008: $239,439) were incurred and paid on behalf of MMBRTA by the ARMB and $12,852 (2008: $18,895) was invoiced to the MMBRTA by the ARMB being payments for gate entry and reimbursement of fuel expenses.
The following additional transactions have been entered into with related party entities:
2009 2008 $‘000 $‘000 Yurredla Ski Club No transactions were entered into with this entity - -
Ski Club of Victoria Revenue received (1) 42 56 Other services paid (9) (12)
Buller Ski Lifts Pty Ltd Revenue received (1) 709 775 Snow making contribution (200) (195) Grooming costs (64) - Other services paid (76) (81)
Alkira Ski Club Revenue received (1) 26 25
Alto Villas Revenue received (1) 142 149
Alpine Resorts Coordinating Council Contributions paid (196) (170)
(1) Revenue received includes site rents which are levied in accordance with the site lease contract and service charges using a formula that is equally applied to all sites, and payments for advertising in ARMB collateral and the website.
Annual Report 2008–09 .65 Financial Statements For the year ended 31 October 2009
Note 2009 2008 $‘000 $‘000
NOTE 21: Responsible persons (continued)
The number of executive offi cers, other than responsible persons, and their total remuneration during the reporting period are shown in the fi rst two columns in the table below in their relevant income bands. The base remuneration of executive offi cers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, long service leave payments, allowances, vehicles, redundancy payments and retirement benefi ts.
Several factors have affected total remuneration payable to executives over the year. During February 2009 the Finance and Risk Manager took paid maternity leave for 12 weeks, returning to work only 2 days per week on a 0.4 Full Time Equivalent (FTE) basis. The remaining 0.6 FTE has not been replaced.
In addition, the CEO left the employ of the Board effective 30 September 2009, and the Senior Manager - Property and Planning was appointed as Interim CEO until such time as the Board made a permanent appointment. Therefore, the salary of the Senior Manager – Property and Planning includes a higher duties allow- ance for the month of October. There was no appointment made to fi ll the Property and Planning role during this interim period.
The number of executive offi cers whose remuneration falls with in the specifi ed bands above $100,000 is as follows:
Income band Total Remuneration Base Remuneration $000’s 2009 2008 2009 2008 No. No. No. No.
101 – 110 - 1 - - 111 – 120 2 2 1 1 121 – 130 - - - 1 131 – 140 - 1 1 - 141 – 150 1 - - - 161 – 170 1 1 - - Total numbers 4 5 2 2
Total Amount* $725,723 $746,500 $568,708 $588,104
* Represents the total amount paid or payable to all executive offi cers, including those below the $100,000 remuneration level and therefore not included in the banding table above.
66. Mt Buller and Mt Stirling Alpine Resort Management Board Financial Statements For the year ended 31 October 2009
Note 2009 2008 $‘000 $‘000
NOTE 22: Auditor’s Remuneration
Audit Services Victorian Auditor-General 18 18
NOTE 23: Subsequent events
No matters or circumstances have arisen since the end of the reporting period which may signifi cantly affect the operations of the ARMB, the result of those operations, and the state of affairs of the ARMB in future fi nancial years.
NOTE 24: Consultants Engaged
There were 24 projects undertaken for the ARMB by consultants. The total costs of these assignments were $455,282 (2008: $505,267).
The following table lists the consultants engaged in 2008-09 where total remuneration was $100,000 or above.
Consultant Project Total approved Expenditure Future project fee 2008-09 committed expenditure Russell Kennedy Various leasing Solicitors arrangements and consents 59,638 59,638 - Dispute resolution 44,181 44,181 - Other legal matters 2,864 2,864 - Total remuneration 106,683 106,683 -
Annual Report 2008–09 .67 Financial Statements Auditor General's Report
68. Mt Buller and Mt Stirling Alpine Resort Management Board mtbuller.com.au mtstirling.com.au
Mt Buller & Mt Stirling Alpine Resort Management Board ABN 44 867 982 534 Buller Community Centre Mt Buller Victoria 3723 Telephone: 03 5777 6077 Facsimile: 03 5777 6219 Email: [email protected]