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Table of Contents

CHAIRPERSONS MESSAGE & DECLARATION ...... 1

REPORT OF OPERATIONS ...... 2

EXECUTIVE OFFICER REPORT ...... 4

EDUCATION OFFICER REPORT ...... 15

OFFICE BASED ENVIRONMENTAL IMPACTS ...... 17

BUSINESS PLAN MONITOR...... 19

BENCHMARKING SERVICES...... 31

FINANCIAL SUMMARY...... 32

STATEMENT OF LEGISLATIVE COMPLIANCE...... 33

FINANCIAL REPORT...... 39

DISCLOSURE INDEX...... 54

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Chairpersons Message & Declaration

Unlicensed Landfill Closures Mt Egerton and Ballan Landfills were closed this year. The Group has now overseen the closure of 17 of the 19 landfills in the region. The remaining unlicensed inert landfills are at Rokewood and Teesdale in the Golden Plains Shire. Best Practise Kerbside Services All Councils now have commingled kerbside recycling services with five Councils offering a ‘Best Practise’ service prescription. Golden Plains is yet to meet a ‘Best Practise’ prescription but offers access to kerbside recycling to most of its residents, which is quite an achievement for such a rural based municipality. Only Hepburn Shire Council still sorts commingled recyclates in the region at its MRF in Daylesford. Pyrenees use an MRF in Stawell. All other commingled recyclates are bulk hauled to MRFs in Melbourne and Geelong. Achieving TZW Waste Diversion Targets The latest figures available are for the 2007/08 year. Household waste diversion is at 28.7% in the region, in comparison with a statewide average of 42.3%. The Statewide average excluding a kerbside greenwaste collection is 33.5%. The Region is below average in its kerbside performance as no Member Council has yet introduced a universally available kerbside greenwaste collection service. Gathering Data and Undertaking Research The Group has been very busy gathering data and researching other information to assist in the preparation of our new regional waste management plan in 2009/10. The projects are: • Bin Audit - a survey of over 800 residents’ rubbish bins to analyse the contents. • Transfer Station Audit – an audit of 5 transfer stations to measure potential diversion from landfill. • Community Survey – the views of 650 residents on current and future waste management services. • Organics Scoping Study – to determine the feasibility of introducing a kerbside organics service in Highlands. Blinky Bulb Well ahead of any industry or government initiative to divert the mercury in fluorescent tubes and compact fluorescent globes, the Group, with the support of Rotary International District 9780 Preserve Planet Earth (Water & Environment) Committee have established a consumer targeted collection and recycling trial in Western Victoria. The Board and Staff The Group is supported by our Executive Officer, Philip Clingin, together with our Education Officer, Ms. Rosemary Angus. On behalf of the Management Committee I sincerely thank Philip and Rosemary for a year’s good work. I would also like to thank my fellow Directors and their Advisors as well as the Officers of the Department of Sustainability and Environment, Sustainability Victoria and the EPA who have been working with us. Altogether it has been another year of satisfying achievement for the Group and its Member Councils. In accordance with Financial Management Act 1994, I am pleased to present the Report of Operations for the Highlands Regional Waste Management Group for the year ending 30 June 2009.

Cr. Noel Perry APM Chairperson 11 September 2009

PAGE 1 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

Report of Operations

Objectives, Functions, Powers, Duties Our Mission To facilitate the sustainable use of resources and best practices in municipal waste management Formation In 1994 the refuse disposal provisions of the Local Government Act (1989) were transferred to the Environment Protection Act (1970). In 1996 the functions of Regional Waste Management Groups (RWMG) were reviewed to clarify their statutory role in planning and co-ordination of waste management. On the 8th of May 1997 the Minister declared the creation of the non-metropolitan Waste Management Regions, including Highlands. The Highlands Waste Management Region comprises the municipal districts of Ballarat, Moorabool, Central Goldfields, Hepburn, Golden Plains and Pyrenees. Consequently, the Highlands Regional Waste Management Group (HRWMG) was formally established in December 1997. Nature and Range of Services Provided In partnership with its member municipalities the Highlands RWMG develops regional plans to give affect to state-wide policies, strategies and programs at a local level. Highlands RWMG’s members play a key role in the provision of infrastructure and community programs, and to implement regional plans focused on municipal waste management, developed by the group. In their municipal waste planning and management role, Highlands RWMG’s members add value to regional initiatives through contracting, service delivery, and provision of infrastructure and facilities. They also assist Highlands RWMG to deliver education programs through events, schools and organisations in local communities. Through a comprehensive business planning process, commencing in February 2007, Highlands RWMG adopted a vision, mission and set of values that were incorporated into its objectives and program areas for 2008/09. Highlands RWMG’s functions, under section 50H of the Environment Protection Act 1970, are: (1)The functions of a regional waste management group are— (a) to plan for the management of municipal waste in its region, working in partnership with the councils in its region; and (b) to co-ordinate the activities of its members in its region to give effect in its region to State policies, strategies and programs relating to waste; and (c) to facilitate and foster best practices in waste management. (1A) In carrying out its functions a regional waste management group is— (a) to plan for municipal waste management in its region including— (i) preparing and keeping up to date a regional waste management plan; (ii) implementing and promoting the plan; (iii) setting performance targets for municipal waste reduction programs; (iv) developing, implementing, supporting and promoting municipal waste reduction and recycling programs; (b) to co-ordinate the waste management activities of its members including— (i) introducing measures that lead to conformity of standards for waste reduction, waste management and litter prevention and control between its members; (ii) investigating and advising on landfill disposal costs and charges in the region; (iii) encouraging the training of staff involved in municipal waste management; (c) to promote, commission and undertake research into waste management; (d) to advise its members on best practices in municipal waste management; (e) to promote improved waste management technologies; (f) to promote and co-ordinate relevant community education in its region; (g) to mediate disputes between its members. (2) A regional waste management group may do any thing that is necessary or convenient to enable it to perform its functions.

PAGE 2 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

The Board The Directors of the Board are nominated Councillors of their respective Member Councils as required under Section 50 I (c) of the Environment Protection Act (1970). Table 1 The Directors of the Board for 2008 - 2009

The Management Committee Dates of Appointment Position Cr. Noel Perry 29/1/2009 – 30/6/2009 Chairperson Cr. Tom Sullivan 1/7/2008 – 30/6/2009 Deputy Chairperson Cr. Barry Rinaldi 1/7/2008 – 30/6/2009 Director Cr. Kevin Knight 1/7/2008 – 30/6/2009 Director Cr. William McClenaghan 1/7/2008 – 30/6/2009 Director Cr. Michael O’Connor 4/12/2008 – 30/6/2009 Director Cr. Benjamin Taylor 29/1/2009 – 30/6/2009 Director Cr. Stephen Jones 1/7/2008 – 19/11/2008 Chairperson Cr. David Vendy 1/7/2008 – 19/11/2008 Director Cr. Lysette Ashford 1/7/2008 – 19/11/2008 Director The Board generally meets on a bi-monthly basis. The meetings are hosted by the Member Councils on a rotational basis. Prior to each Board Meeting the Board meets separately as the Audit Committee in accord with an exemption from the Minister of Finance. Table 2 Board Meeting Attendance for the 2008 – 2009 Director Meetings Eligible To Meetings Attend Attended Cr. Noel Perry 5 5 Cr. Tom Sullivan 9 9 Cr. Barry Rinaldi 9 8 Cr. Kevin Knight 9 7 Cr. William McClenaghan 9 7 Cr. Michael O’Connor 5 5 Cr. Benjamin Taylor 5 3 Cr. Stephen Jones 4 4 Cr. David Vendy 4 0 Cr. Lysette Ashford 4 3 A Senior Officer of each Council supports and advises their Director. The Council Officer normally has direct responsibility for Waste Management Planning. The Advisors also provide direct input into programmes and projects.

Table 3 Advisors as at 30 June 2009 Member Council Advisor and Position Hepburn Shire Mr. Andrew Bourke, Interim General Manager Infrastructure and Assets. Pyrenees Shire Mr. Andrew Leach, Director Assets and Development. Moorabool Shire Mr. Ian Stewart, Manager of Works. Golden Plains Shire Mr. Bill Knight, Contracts Engineer. Central Goldfields Shire Mr. Ron Potter, Manager Engineering and Operations Ballarat Mr. Ian Rossiter, Director, City Sustainability and Mr. Leigh Ditchfield, Manager Infrastructure Operations.

The Organisational Structure of the Group is: BOARD

EXECUTIVE OFFICER

ADVISORY REGIONAL EDUCATION COMMITTEE OFFICER

PAGE 3 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

Executive Officer Report Infrastructure There are three Resource Recovery Centre (transfer station) projects that were completed this year. The projects are shown in Table 4 below. These projects conclude the infrastructure grant process commenced by EcoRecycle Victoria and managed to a conclusion by Sustainability Victoria. Table 4 Sustainability Victoria Infrastructure Grant Projects SV. Funding Project Status Applicant Project Title Approved MOORABOOL SHIRE COUNCIL Establishment of Ballan $175,000 Completed April Resource Recovery Centre and 2009 Transfer Station MOORABOOL SHIRE COUNCIL Establishment of Mt Egerton $117,000 Completed April Resource Recovery Centre and 2009 Transfer Station CENTRAL GOLDFIELDS SHIRE Establish Resource Recovery $150,000 Completed COUNCIL Centre and Transfer Station at December 2008 Carisbrook Towards Zero Waste Support 2008-2011

The Regional TZW Support Program is part of the ResourceSmart Materials program in the 2008–2009 Sustainability Victoria Business Plan. The purpose of the program is to help regional Victoria move towards zero waste by providing financial support to projects that increase the recovery of waste from the municipal and household sectors in regional and rural Victoria. Approximately $5 million will be available between 2008–11. The $5 million is raised through the Victorian Landfill Levy. Projects will commence in 2009 and conclude in 2011. Applications were invited from local governments, regional waste management groups, waste industry/private sector organisations and community organisations managing municipal waste.

The Group sponsored or submitted three projects and they are summarised in Table 5.

Table 5 Towards Zero Waste Support Applications Note: * Contributions include cash and in kind amount. TZW *Applic. *HRWMG Applicant Project Description Funding Cont. Cont. Sought BALLARAT CITY The City of Ballarat will partner with a community $175,000 $135,000 $30,000 COUNCIL based employer to construct and operate a recycle shop at the Ballarat transfer station in Gillies Street, Ballarat. The shop will be the initial stop for clients and staff to assist in removing materials for recovery. The workshop will repair items such as motor mowers, bicycles, furniture etc to stock the shop. The shop will also stock propriety items manufactured from recycled resources and other items that promote sustainable living. The primary objectives of the project are: To demonstrate that most of the hard waste managed by the City of Ballarat Transfer Station can be recovered for reuse or recycling. To create ongoing employment opportunities in the management, repair and resale of materials.

PAGE 4 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

Table 5 Towards Zero Waste Support Applications Note: * Contributions include cash and in kind amount. TZW *Applic. *HRWMG Applicant Project Description Funding Cont. Cont. Sought HIGHLANDS Small Scale Vessel composting of Organic waste. $142,400 $43,600 $107,500 RWMG and Tenders will be invited for providers of small scale in CENTRAL vessel composting systems to establish a system at GOLDFIELDS the Carisbrook transfer station that will include a SHIRE shredder to pre-treat material up to 100 mm diameter, the proprietary vessel composter, post composting maturation and screening to produce marketable compost. The successful tenderer will be required to provide extensive on site training to the transfer station operator. Each participating household will have training in their home to minimise potential contamination, especially plastic film bags. A brochure will also be distributed to participating households. Pre and post project bin audits will be undertaken to measure physical effectiveness. The participating households will also be surveyed at the end of the project. The project will be evaluated over a twelve month period to establish its long term sustainability, supported by a business case to encourage private sector participation. HIGHLANDS To educate the community to place containers and $110,500 $55,000 $10,000 RWMG on behalf clean paper and cardboard in their recycling bin rather of all 12 non than the kerbside waste bin. These items currently metro RWMGs represent 18% by weight in the rubbish bin. In regional Victoria an extensive television advertising program has been determined as the best way to educate the community about this issue. Al participating regional waste management groups will be required to negotiate with their Member Councils to ensure that there is a standard prescription for materials that can be placed in the commingled recycling bin – Plastics 1 to 7 (rigid containers), glass containers, steel and aluminium cans, liquid paperboard and paper and cardboard.

Blinky Bulb On World Environment Day, 5 June 2009, BLINKYBULB Project was officially launched. The BlinkyBulb Recycling Project was created by Rotary International District 9780 Preserve Planet Earth (Water & Environment) Committee and the Highlands Regional Waste Management Group. Used lighting products are the largest source of mercury contamination in municipal landfills. Mercury is the most toxic pollutant, after radioactive substances. With the phasing out of incandescent globes, the problem is becoming urgent. Over 10,000 tonnes of mercury contaminated waste every year goes into landfills across Australia. In landfill, mercury from fluorescent tubes can convert to methyl mercury; this toxic and volatile gas can easily escape into the environment. As part of the Project Rotary District 9780 has established over 60 collection points at local businesses for members of the public to bring their used CFL globes and fluorescent tubes where they will be boxed for collection. The initiative includes 25 Rotary Clubs in District 9780, including major centres such as Geelong, Ballarat and Horsham, as well as Bacchus Marsh Rotary (District 9800).

PAGE 5 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009 from the domestic sector. (EPHC Communiqué 22 may 2009)

Rotarian s will transport the boxes of collected used globes and tubes, ultimately they will go to the City of Ballarat's Gillies Street Transfer Station or the City of Geelong Duro Street Resource Recovery Centre where they will be stockpiled for transport to the recycling facility.

Highlands was pleased that neighbouring regions, Barwon, Grampians, Central Murray and Desert Fringe also d ecided to partner in the project, demonstrating the benefit of cross regional cooperation.

WIN TV contributed over $8,000 of advertising time to ensure the project became well kn own to consumers.

Communication has been focused on a website, whilst various regions have also utilised the supplementary communication tools such as posters and brochures produced as part of the project. BlinkyBulb is scheduled to run for 12 months until a national, industry funded program, is established. This was a nnounced by the Environment Protection and Heritage Council on the 22 May 2009. “The project is led by the Australian Government, establishing partnerships with industry to increase recycling of mercury containing lamps in Australia. With federal funding of up to $500,000 over 3 years, the ‘Fluoro-cycle’ scheme will be deliver ed jointly by the Lighting Council Australia and the Australian Government, in collaboration with the Property Council, the Facility Management Association of Australia, the Australian Council of Recyclers, the Australian Local Government Association and other key bodies . The voluntary scheme will target key generators of mercury containing lighting waste through an outrea ch program to recruit them to the scheme and establish suitable recycling arrangements. The scheme will target the commercial and public lighting sectors. A related initiative is being developed to recycle compact fluores cent lamps from the domestic sector.” (EPHC Communiqué 22 May 2009)

PAGE 6 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

Kerbside and Resource Recovery Bin Audits Stage 1 Wastemin Pty Ltd undertook an audit of resident waste bins in May/June of 2008. The purpose of the bin audit was: • Stage 1 - Through detailed measurement, determine how improved diversion from landfill may be achieved by changing the kerbside service or other initiatives such as improved education.

Although previously reported in the 2007-08 Annual Report it is worth summarising the kerbside bin audit (stage1) where 820 resident bins have been audited and 8.2 tonnes of waste was sorted. Overall, the Region’s current kerbside recycling performance could be improved up to 18.4% by ensuring recyclable containers, paper and cardboard that are currently being disposed of as rubbish by residents, is instead placed in the recycling bin. This is considered primarily a community education issue. Councils with a strong community education profile scored much better than the average. This would increase our diversion rate from a measured 29% to 41% and have the Group on target for Towards Zero Waste. Figure 1 Highlands Kerbside Waste Bin Analysis

Highlands total weight = 8236 kg Recyclables 7.5%

Disposable Paper / Cardboard 25.8% 10.9%

Garden organics 17.6%

P rohibited 11.2%

Hazardous 0.9%

Food organics 26.2%

The other significant components in the waste bin that should be diverted from the waste stream are the Garden Organics and Food Waste. Collectively they represent 44% of the current waste stream or, based on the 2006/07 Municipal Waste Audit conducted by Sustainability Victoria, 13,000 tonnes. If all this material could be diverted from landfill, Highlands Region would achieve a total diversion rate of 70%. From a greenhouse perspective this is equivalent to 5,180 tonnes of CO2, or 863 cars off the road per year. Kerbside and Resource Recovery Bin Audits Stage 2 Wastemin Pty Ltd undertook an audit of transfer station (Resource Recovery Centre) bulk bins in July/August of 2008. The purpose of the bin audit was: • Stage 2 - Content audits of the incoming waste stream or filled bulk bins at resource recovery centres in the region and the preparation and presentation of a report on the audit with recommendations on measures to improve diversion from landfill.

PAGE 7 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

Overall the most significant items in the RRC waste stream are: Green Waste (31% by weight, 31% by volume), Concrete / bricks (30% by weight, 4% by volume), Wood / timber (9% by weight, 9% by volume), Ferrous (5% by weight and 9% by volume) and paper /cardboard (6% by weight, 12% by volume). The overall potential diversion rates that could be achieved were 87% by weight and 71% by volume. The details of the audit results by both mass and volume are shown in Figure 2. Figure 2 Highlands RRC Bulk Bin Analysis

The results between the surveyed sites varied, often dramatically:

PAGE 8 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

• Beaufort had a high proportion of bagged garbage (30% by weight, 39% by volume) which reflects the community reliance on the transfer station for domestic waste disposal in the absence of a kerbside service outside the township. • Carisbrook had a high proportion of Concrete/bricks (65% by weight, 13% by volume). This is not typical of the site but it was being used by a commercial client for what is very expensive disposal of inert waste. • Bacchus Marsh, Ballarat and Daylesford were more typical with greenwaste at (41% by weight, 34% by volume) and concrete/bricks at (15% by weight, 2% by volume) Diversion of the collected greenwaste and wood to productive conversion and reuse as mulch, compost or fuel will be a future priority. With over 87% by weight and 71% by volume of incoming materials suitable for diversion from landfill this offers an excellent opportunity for Member Councils to focus on the operation of the RRC to set ambitious diversion targets for their contractors. The audit also discovered that current record keeping was poor and produced a data collection template that could be used by the Member Councils to better monitor the diversion of materials from landfill at their RRC. Community Attitudes Survey From June to October 2008 the University of Ballarat undertook a telephone based survey of residents about Community Perceptions regarding Existing and Proposed Waste Management and Recycling Services. The sampling size and statistical accuracy is shown in Table 6

Table 6 Survey Sample Design

Municipality 2006 Census Target Sampling Sampling population sample fraction accuracy (households) size (%) (95% confidence) Ballarat 36,139 300 0.83 ±6% Central Goldfields 5,984 70 1.17 ±12% Golden Plains 6,191 70 1.13 ±12% Hepburn 7,414 70 0.94 ±12% Moorabool 10,168 70 0.69 ±12% Pyrenees 3,359 70 2.08 ±12% Region 69,255 650 0.94 ±4%

The key learning’s from the survey were: • Councils should maintain current methods of providing information regarding recycling services, but review new methods for supplementing pamphlet/newsletter information. One common suggestion from the open responses is the use of regular updates in the local newspapers and council newsletters. • Councils should provide clarification on the capacity for households to recycle materials about which there is some confusion (such as scrap metals), and methods for this to occur (such as the hard waste collection). • The introduction of a kerbside organic waste service is supported by urban residents. The maximum cost of this service needs to be no more than $2 per week (or $100 per year), and there is stronger support for a service costing closer to $1 per week (or $50 per year).

PAGE 9 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

• The organic waste service should allow for both kitchen and garden waste. • Residents would prefer that the other services currently offered be maintained at the same level and frequency. • The introduction of a hard waste collection service is supported by urban residents. The preferred option for cost recovery of this service is a $15 per year charge to all households. The survey also provided very useful information on the current understanding of recycling and reinforced the need for continuing community education. The survey results are important background research in the development of the next regional waste management plan. Organics Waste Reduction & Recovery Scoping Study The Region has established that to achieve the States TZW targets set for municipal waste, its Member Councils, primarily Ballarat, need to introduce a kerbside organics collection service.

Windrow Composting Greenwaste at Ballan Bioreactor at Berrybank Farm, Windermere

In May 2008, All Environmental Concepts was engaged by the Region to undertake a scoping study in to the provision of regional organics services. The study focuses on options available to the Region to facilitate organic waste diversion from landfill through the introduction of a new bin-based kerbside collection service within one or all of its member Councils. The scoping study has established the following findings: 1. The implementation of a domestic kerbside garden waste service, for recovery of materials in a local composting facility, will divert approximately 9,035 tonnes of materials from landfill per year. This equates to a diversion rate of approximately 55%. The estimated additional costs per household per year for a garden waste service for potential technologies are: (i) Windrow - $35.94 - $39.51 (ii) In-vessel - $40.82 - $44.39 (iii) Anaerobic digester - $43.26 - $46.83 2. The implementation of a domestic kerbside food and garden waste service, for recovery of materials in a local composting facility, will divert approximately 12,735 tonnes of materials from landfill per year. This equates to a diversion rate of approximately 62%. The estimated additional costs per household per year for a food and garden waste service for potential technologies are:

PAGE 10 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

(i) Windrow - $40.31 - $43.88 (ii) In-vessel - $45.47 - $49.04 (iii) Anaerobic digester - $48.91 - $52.48 3. Participation in alternative waste technology (AWT) will divert approximately 13,350 tonnes of materials from landfill per year. This equates to a diversion rate of approximately 82%. The estimated additional cost per household per year for direct diversion of all kerbside garbage materials through an AWT to be developed in Point Henry is $34.96. 4. Diversion of kerbside garbage waste directly from landfill through DiCOM AWT Operations Pty Ltd facility to be developed in Point Henry offers the greatest opportunity for landfill diversion for the City of Ballarat, when compared with a local composting facility. This option is also likely to result in the least additional costs per household per year. 5. Significant volumes of food waste generated by food manufacturers in the Region are currently recovered through contract arrangements with local stockfeed manufacturers. It is highly unlikely a local compost facility will engage these organisations. 6. Opportunities exist to capture organic waste from small to medium sized enterprises such as supermarkets and hospitality businesses. However collection and/or disposal costs and lack of resources to separate organic waste at the source will be the greatest barriers to capturing organic waste from the commercial and industrial sector. 7. Despite open windrow composting being one of the most economically viable options for the region it is not recommended for a number of reasons including the issues associated with food in the process, odour, buffer requirements and Best Practice guidelines. Furthermore, EPA Victoria has recently indicated that no new open windrow composting facilities are likely to be approved. 8. The current planning scheme requires an organics recycling facility to be sited on land zoned as General Industrial (I1). Discussions on the current planning scheme controls applying in and around Ballarat promote a location within an industrial zone for such a facility. The option of a site specific provision using the schedule to the Special Use Zone over land outside an industrial location was not preferred by council staff consulted. 9. The City of Ballarat does not have suitable available land which meets both the EPA’s guidelines and statutory planning requirements. 10. Planning expertise sought by Highlands Regional Waste Management Group during the study indicated that an in-vessel system or anaerobic digester may be appropriate on land zoned as Rural. This would however require the Minister for Environment and Climate Change or the relevant Council to recommend to the Minister for Planning a Section 52.03 Site Specific Exclusion. The consultant recommended that Ballarat City Council further explore it’s opportunities to participate in the DiCOM AWT to be operational at Point Henry from July 2010. The Group is also investigating options for residual waste to be treated at AWT to be constructed in response to the Metropolitan Waste and Resource Recovery Strategic Plan. The State Government via the Victorian Advanced Resource Recovery Initiative (VARRI) has allocated $10 million to assist in the planning and development of AWTs to support the Strategic Plan. The DiCom project in Geelong is not included in the VARRI project, so the metropolitan solution may be more economic. The preference for the Region is to have an AWT constructed locally so that it is available to all Member Councils, industry and neighbouring rural regions but this cannot occur without State Government financial support.

PAGE 11 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

Towards Zero Waste Targets The Sustainability in Action: Towards Zero Waste Strategy of the State Government sets two major objectives for waste management in the State. TZW Objective 1 – Generating Less Waste From Our Activities. Target 1 – A 1.5 million tonne reduction in the projected quantity of solid waste generated, by 2014. This is equivalent to a 12% reduction in waste generation. 65% of waste generated within the region is from the commercial and industrial sector and outside the responsibility of the Group to deal with. If we consider commercial and industrial waste imported to landfill in the region from Melbourne the % of municipal waste is less than 15%. The Region is experiencing rapid growth. Between 2001 and 2006 our population increased by 6.2%. More importantly the number of dwellings receiving a kerbside service has increased by 14% from 57,130 to 65,329. Viewed from the perspective of waste per household, waste actually increased in 2007/08 (the most recent figures available from Sustainability Victoria) after declining steadily for the last six years. Figure 3 Highlands Household Waste

800 700

d 600 Waste per Household

hol (kg/annum) e 500 Recyclables per 400

hous Household (kg/annum)

r 300 Total per Household pe

g 200 (kg/annum) k 100 0 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

TZW Objective 2 – Increase The Sustainable Recovery Of Materials For Recycling And Reprocessing. Target 2 – 75% by weight of solid waste recovered for reuse, recycling and/or energy generation by 2014. Target 3 – Sectoral targets achieved by 2008-09 and 2014. Table 6 Sectoral Targets for Victoria Recovery rate (by weight) 2002-03 2008-09 2014 Interim target Target Municipal Waste 35% 45% 65% Commercial & Industrial Waste 59% 65% 80% Construction & Demolition Waste 57% 65% 80% All solid waste streams 51% 60% 75% Data source: EPA Victoria landfill levy returns 2002-03, EcoRecycle Victoria’s Annual Survey of Victorian Recycling Industries 2002-03 and Nolan ITU, Solid Industrial Waste Plan Data Report (report prepared for EcoRecycle Victoria, 2002)

Progress to date and forecasts for the balance of the TZW planning period are shown graphically as:

PAGE 12 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

TZW Municipal Waste Recovery Targets

70%

60%

50% y Highlands Region 40% cover

e Statewide TZW 30% R Target % 20%

10%

0%

3 4 5 8 9 0 2 3 4 -02 -0 -0 -0 06 07 -0 -0 -1 -11 -1 -1 -1 5- 6- 01 02 03 04 0 07 08 09 10 11 12 13 00 20 20 20 20 2 20 20 20 20 20 20 20 20 Year

TZW Municipal Waste Recovery Targets

70%

60%

50% y Ballarat City Council 40% Statewide TZW 30%

Recover Target % 20%

10%

0%

4 5 7 8 1 2 4 02 -03 -0 0 -06 -0 0 09 -10 -1 1 -13 -1 1- 4- 7- 8- 1- 0 02 03 0 05 06 0 0 09 10 1 12 13 0 0 0 0 0 2 2 20 20 2 20 20 2 20 20 20 2 20 Year

The above predictive models are based on the introduction of a kerbside green waste service in Ballarat in July 2010 and the progressive downsizing of putrescible bins from 140 litres to 80 litres. The balance of Member Council kerbside services remain as is. With this predictive model the Highlands Region, or more specifically Ballarat, will just fall short of the 2014 TZW target. There is concern about excessive levels of contamination that the introduction of food waste into the third bin collection would produce, so this has been deleted from the group’s predictive models. Food waste would require an advanced pre sorting system and extensive and ongoing community education to deal with the inevitable contaminants from the kitchen. A study into the viability of kerbside organics services undertaken by the Group in 2008-09 also concluded that volumes of available organic materials in Highlands region, or specifically Ballarat, do not provide a sustainable processing solution at the present

PAGE 13 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

time and that there is no suitable site for the development of a vessel composter to deal with this organics stream. The recent release of the Metropolitan Waste and Resource Recovery Strategic Plan and the announced development of a DiCom facility in Geelong mean that Advanced Waste Technology (AWT) will be within a feasible transport distance from Ballarat. An AWT scenario has been modelled for the introduction of disposal of kerbside putrescible waste at an AWT rather than landfill from July 2010. There is no third bin (organics) service:

TZW Municipal Waste Recovery Targets with AWT 80%

70% 60% y r 50% Highlands Region e 40%

ecov Statewide TZW

R 30% Target % 20% 10%

0%

2 3 4 5 6 7 8 9 0 1 2 3 4 -0 -0 0 -0 -0 -0 -0 -0 -1 -1 -1 -1 -1 3- 4 5 0 1 01 02 0 0 06 07 08 09 1 1 12 13 00 0 0 0 0 20 20 2 2 2 20 20 20 20 2 2 20 20 Year

TZW Municipal Waste Recovery Targets with AWT

100% 90% 80% 70% y r Ballarat City Council 60% ve

co 50% Statewide TZW

Re 40% Target

% 30% 20% 10% 0%

2 3 4 5 6 8 9 0 1 2 3 4 -0 0 -0 0 -0 -07 -0 0 -1 1 -1 -1 -1 1 2- 3 4- 5 6 7 8- 9 0- 1 2 3 0 0 0 0 0 0 0 0 0 1 1 1 1 20 20 20 20 20 20 20 20 20 20 20 20 20 Year

This model predicts that the City of Ballarat will achieve 87% total kerbside diversion well in excess of the TZW target and overall the Region will exceed the TZW target. The other spectacular advantage of an AWT based option, without a third organics bin, for the processing of putrescible waste is the decline in the amount of the total kerbside collection ending up in landfill. The model predicts a 40% decline from 2002/03 quantities. Again this is well ahead of the TZW waste reduction target of 12%.

PAGE 14 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

Education Officer Report

Introduction The focus for this year has been in the education sector with the redevelopment of the Little Green Wagon resource education trailer and the strong uptake of ResourceSmart AuSSI Vic schools program. Waste Wise re-certifications and the development of our ResourceSmart Action Plan and Environmental Policy and ongoing monitoring of our operations are a significant achievement. Key Areas Key program areas for the Regional Education Officer in 2008/09 have been • Waste Wise • ResourceSmart AuSSI Vic • The Little Green Wagon • Communicating Success. Waste Wise Due to the ongoing transition from Waste Wise to ResourceSmart the focus this year has been to support existing Waste Wise organisations rather than engaging with new ones.

We are very proud of the environmental team at Hepburn Health Services whose efforts since 2004 have resulted in the awarding of their GOLD Waste Wise certificate. This significant achievement underpinned by a waste diversion of over 50% by volume makes them only the third organisation in the state to achieve this milestone.

A Silver Waste Wise certificate has been awarded to Sovereign Hill Museums Association for their ongoing commitment to waste minimisation and recycling. They are diverting 58% by weight. Bronze level certificates have been awarded to Hepburn Shire and Avoca Business & Tourism Inc.

The region is host to many large events including the RACV Energy Breakthrough in Maryborough (in its 10th year as a Waste Wise event) and the Great Victorian Bike Ride, but also smaller local events such as the Ballan YOUTH Carnivalé. Collectively, they diverted over 50 tonnes of recyclables (mainly bottles and cans) which represents 23% by weight.

ResourceSmart AuSSI Vic schools The transition from Waste Wise to ResourceSmart AuSSI Vic has been well received by schools. The Regional Education Officer has completed the ResourceSmart AuSSI Vic facilitator training and works alongside the core module facilitator to assist schools in achieving certification. In 2008 twelve schools in Highlands committed to the program and a further six have joined in 2009, they are all progressing well. St. Francis Xavier PS in Ballarat has achieved 3 Star certification and certifications will soon be awarded to schools in the Creswick cluster. The Little Green Wagon Our Waste and Recycling Education Trailer (a joint project with Calder RWMG) has had a makeover to present a fun oriented exterior. Launched 2001 with a Reduce Reuse Recycle theme the time had come to revamp both the trailer and the contents to meet the changing needs of schools.

The Little Green Wagon now supports ResourceSmart AuSSI Vic Schools with Victorian Essential Learning Standard (VELS) linked units of work, support materials, games and activities in the areas of waste, water, energy, biodiversity and sustainability.

Communicating Success “Junk Mail” our quarterly electronic newsletter has been the vehicle for the dissemination of information to our community. Featured articles have included ¾ We are ResourceSmart ¾ The Little Green Wagon ¾ drumMUSTER

PAGE 15 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

¾ Going for Gold! (Hepburn Health Service) ¾ ChemClear ¾ BlinkyBulb

Media releases have been sent to all local papers to promote the presentation of Waste Wise certificates and other projects such as BlinkyBulb. Our own website www.hrwmg.vic.gov.au has also been developed.

The Little Green Wagon

Students from Caledonian Primary School using the ‘Waste Wise Shopper’ activity from the Little Green Wagon.

PAGE 16 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

Office Based Environmental Impacts Introduction The Group, in accord with its statutory function, is conscious of resource conservation and is an accredited Waste Wise organisation. Being Waste Wise requires that the Group integrates sustainable principles into our every day operations to minimise waste and maximise the efficient use of valuable resources. In August 2008 the Board made the transition to Resource Smart and adopted a ResourceSmart Action Plan and Environmental Policy. Highlands RWMG has made a commitment to improve its environmental footprint, established baseline data and set targets and key actions. Waste The waste generated by processes within the Group is divided into two general classes – landfill and commingled recycling, based on the available municipal kerbside service in Ballarat. Within the office all work locations are provided with paper recycling and paper reuse bins. The reuse paper is used in the facsimile machine and for draft printing. The data presented below is from our Resource Smart records:

2008-09 2007-08 2006-07 Commingled Commingled Commingled Indicator Landfill recycling Landfill recycling Landfill recycling Total units of waste disposed of by destination (kg/year) 136* 196 58 123 69 124 Recycling rate (per cent of total waste) 59.04% 67.96% 64.25% Greenhouse gas emissions associated with waste disposal (t CO2e) 0.16 0.07 0.079 * Note : Increase in waste to landfill in 2008-09 is a result of an improved method of record keeping as part of Resource Smart. Actions undertaken Food utensils No disposable utensils Separation at source Full complement of recycle and reuse bins

Energy The Group consumes energy at its small office at 5 East Street North, Ballarat. Indicator 2008-09 2007-08 2006-07 Power Natural Green Power Natural Green Power Natural Green Gas Power Gas Power Gas Power Total energy usage 10,953 50,790 1,359 13,784 67,374 0 18,820 55,569 0 segmented by primary source (MJ) Greenhouse gas 4.0 3.2 0 5.1 4.3 0 6.9 3.5 0 emissions associated with energy use, segmented by primary source and offsets (t CO2e) Units of energy used per 31,551 40,579 37,195 FTE (MJ/FTE) Units of energy used per 558.4 718.2 658.3 unit of office area (MJ/m2) Actions undertaken Switch Off IT equipment turned off after work.

Target: Purchase 50% Green Power in 2009/10

PAGE 17 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

Paper The Group is becoming more efficient in relation to paper utilisation.

Indicator 2008-09 2007-08 2006-07 Total units of copy paper used (reams) 22 24 30 Units of copy paper used per FTE (reams/FTE) 11 12 15 Percentage of 100% post consumer recycled content copy paper purchased 100% 95% 85% Percentage of 75% post consumer recycled content (or 50/50 pcrc/ps) copy paper purchased N/a 5% 15% Actions undertaken Reuse Paper - Maximise use of reuse paper for note books, facsimile and draft printing. Duplex printer purchased - reduced paper usage

Target: Reduce paper consumption by 10% in 2009/10.

Water The Office consumes 6 kilolitres per year and is considered the minimum to maintain health and hygiene. There are no perceived opportunities for savings as consumption is less than 18 litres per day.

Transport The Group has one car, a Falcon Station Wagon on dedicated LPG. The vehicle does limited travel per year and is shared by both employees.

2008-09 2007-08 2006-07 (First full (No vehicle for (from Feb Indicator Year ) 3 months) 2007) Total LPG consumption (litres) 1,681 1,030 514 Total vehicle travel associated with entity operations (km) 12,613 7,626 3,807

Total greenhouse gas emissions from vehicle (t CO2e) 3 1.55 0.77 Greenhouse gas emissions from vehicle per 1,000 km travelled (t CO2e) 0.2 0.2 0.2 Actions undertaken: Travel by train to Melbourne CBD

Greenhouse gas emissions The emissions shown below are taken from the previous sections and brought together here to show the Group’s greenhouse footprint. Indicator 2008-09 2007-08 2006-07 Total greenhouse gas emissions associated with energy 7.2 9.4 10.4 use (t CO2e) Total greenhouse gas emissions associated with vehicle 3 1.55 0.77 use (t CO2e) Total greenhouse gas emissions associated with waste 0.16 0.07 0.079 production (t CO2e) Total greenhouse gas emissions (t CO2e) 10.36 11.02 11.249

PAGE 18 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

Business Plan Monitor

Our Vision To lead our community to a future of zero municipal waste to landfill by 2015.

In this context what does zero waste mean? The Group acknowledges that under any foreseeable future, it will be impossible to totally eliminate the need for landfill to accept some small amount of residual material. What the Group envisions is that the entire municipal waste stream will be subject to material recovery or conversion and that the relatively tiny amount of residual material left will not be waste but inert residual that is best managed by landfilling. Whilst we move towards this sustainable future the Group will work to reduce material entering the waste stream. Our Mission To foster sustainable uses of resources and best practices in municipal waste management in order to protect and enhance the environmental values of the Highlands Region as we move to a zero waste society. The Group is required to develop a Business Plan that has four Business Areas: 1. Municipal Services and Facilities Program: Kerbside Services, Resource Recovery Facilities, Market Development, Landfills. 2. Community Engagement Program: Waste Wise, Away from Home Recycling and Litter Prevention. 3. Strategy & Performance Monitoring Program: Strategic Planning, Program Monitoring and Data Collection Systems. 4. Organisational Systems and Operations: Liaison, Professional Development, Leadership and Information Management.

The objectives are: Municipal Services and Facilities Program The Municipal Services and Facilities Program is the primary interface between RWMGs, Local Government and Sustainability Victoria for programs and activities related to the provision of waste management services to the community. Regional Business Plans need to demonstrate ongoing planning and progress in taking a strategic, Regional approach which supports the implementation of Regional Waste Management Plans and Sustainability Victoria’s strategies, programs and activities. Community Engagement Program Build partnerships with key local groups including councils, businesses, schools, event managers and other organisations to encourage them not only to improve their own practices, but also deliver Waste Wise programs and services that support behavioural change. Strategy and Performance Monitoring Provide strategic data regarding regional performance including progress towards achieving the targets established in the Towards Zero Waste Strategy and reflected in Regional Waste Management Plans. Organisational Systems and Operations Systems management and associated processes are important to help ensure that HRWMG develop and maintain the capacity to provide leadership, strategic advice and information to key stakeholders including member councils, other RWMGs and Sustainability Victoria.

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MUNICIPAL SERVICES AND FACILITIES PROGRAM Objective KPI Timing Actions Achievements 2008-09 Regional Infrastructure Member Councils Submissions As required Assist and support Member Councils to Prepared submissions for the Sustainability develop and maintain Prepared prepare funding submissions for essential Victoria Regional TZW Support Program. essential infrastructure infrastructure and services support from the and services. TZW target Sustainability Victoria Municipal Resource areas are organics Recovery Program. processing and timber recovery

Resource Recovery No PINs Twice per Year Undertake a service inspection and Quarterly service inspections undertaken Centre Safety Gate maintenance as specified by the by Wastech Pty Ltd. Maintenance manufacturer Detox Your Home Facility October 2008 Assist the City of Ballarat Site opened in April 2009 Permanent Drop Off Operational facility in Ballarat

Municipal Waste Services Member Councils and Two Briefing February 2009 Presentation to the Mayors and CEO’s Forum Briefing undertaken 18 February 2009 TZW Sessions and the Senior Executive Team at City of Ballarat, stressing the climate change benefits. Small to Medium Increase January 2009 Member Councils to extend the commingled Only 909 SMEs provided with kerbside Enterprise Kerbside Regional TZW recycling service in a 240 L MGB fortnightly recycling, mainly in Central Goldfields Recycling Service by 3% from to SMEs on a fee for service basis. Any Shire. 2006/07 figure bigger and they need a private contractor. Other Councils declined to introduce There is also a set up incentive from SV (not service primarily on commercial grounds. available to private contractors). Cross Regional Organics Potential Gate January 2009 Examine the Feasibility of joint organics Included as part of Kerbside Organics Processing Fee less than processing with Calder, Barwon or Metro Feasibility Study $50/tonne Region.

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MUNICIPAL SERVICES AND FACILITIES PROGRAM Objective KPI Timing Actions Achievements 2008-09 Home Composting in 10% reduction August 2009 Source home composting material from the Let’s Home Compost Kit (developed by rural settings in greenwaste State Government (SV, DSE, and DPI) for Central Murray & South West RWMGs) deposited at distribution to Member Councils and promote made available to all Member Councils RRC the information in the local media. Small Volume Small volume September to Explore local low volume processing Still awaiting the outcome of a Containerised Organic process treating June 2009 solutions for organic waste at the five rural Sustainability Victoria Regional TZW Waste Processing mixed organic councils by the construction of a Support Program grant submission. waste at less demonstration site, preferably at or adjoining than $60/tonne an existing Transfer Station. Kerbside Best Practice All Councils 2009/2010 Assist Golden Plains Shire Council to Five Member Councils now provide a KBP having adopted introduce a 120 Litre MGB for putrescible service prescription. best practice waste. kerbside It is accepted that rural Councils will not recycling achieve the financial indicators of the BPP. Mattress Recycling 80% of bedding June 2009 Enhance the existing Mattress Recycling Project deferred as private contractor now outlets Program by enlisting the bedding retailers to offering the service to retailers. participate participate by offering a fee for service old mattress disposal. Detox Your Home 10% increase in annually Negotiate the annual Detox Your Home Completed. participation Collection Calendar with Sustainability Brochures provided by SV distributed Victoria to ensure equality of access across the region. Assist Member Councils to coordinate promotion of collection days. drumMUSTER 60% recovery annually Coordinate the operation of the Training sessions held on 27 Aug and 4 rate drumMUSTER Collection points and ensure Sept 2008. that the drumMUSTER Area Manager arranges regular training and staff Additional training held on 12 Nov 2008. certification programs for RRC staff

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MUNICIPAL SERVICES AND FACILITIES PROGRAM Objective KPI Timing Actions Achievements 2008-09 Electronics Recycling Introduce a Feb 2009 Byteback is a service supported by SV and Regional tender documentation prepared service to the the computer industry. Ballarat Byteback site and tested with industry. six Member at Officeworks launched September 2008. Councils There are other providers that offer a similar Member Councils declined to participate as or more all encompassing service – all current service contracts at transfer stations electronics including TV’s. Such a service discouraged the introduction of services was recently introduced in Grampians and that may impact on contractor income from Central Murray Region. salvage. The service is free apart from a $5 charge for TVs and Computer Screens. Declining commodity prices have led to contractor default at Goulburn Valley, Grampians and Central Murray Regions. Landfill Waste Stream Study April 2009 Undertake a survey of the incoming waste Project deleted as it did not meet the Analysis Completed and stream at Smythesdale landfill to assist in the funding criteria for Sustainability Victoria conclusions fed development of an improved strategy for the Regional TZW Support Program. into RWMP diversion of commercial and industrial waste.

PAGE 22 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

COMMUNITY ENGAGEMENT PROGRAM Objective KPI Timing Actions Achievements 2008-09 ResourceSmart Local Government (formerly Waste Wise) ResourceSmart All Councils to June 2009 Assist all Member Councils to switch to the Waste Wise Bronze Level – Hepburn Certification be certified as 2 ResourceSmart Program. Star ResourceSmart not available to Councils ResourceSmart until 09/10 Transition from Waste All Councils June 2009 Build and support councils in the integration ResourceSmart not available to Councils Wise of the ResourceSmart framework into their until 09/10 local sustainability frameworks, EMS, or State of the Environment reporting. Sustainable Purchasing 100% of June 2009 Assist Member councils to demonstrate Sustainable purchasing is part of all Policy and Practise Councils leadership in their communities by adopting Councils Waste Wise Action Plans. purchasing sustainable purchasing policy and practise. Both Hepburn and Moorabool have sustainable received ECO-Buy awards. products ResourceSmart Schools (A program managed by the CERES) Promote ResourceSmart N/A Report annually Encourage schools to attend ResourceSmart Schools participating in RSS 2008 were, to schools (A CERES workshops in line with CERES schedule Creswick Schools Cluster (3), St. Francis target) Support schools to become ResourceSmart. Xavier, Ballarat, Daylesford SC, Emmaus PS, Lumen Christi, Ballarat, Meredith PS, St. Michaels/ St. Patrick’s Gordon, Myrniong PS and Damascus Senior Campus. Schools participating in 2009 were, Ballarat Grammar, Woady Yaloak, Clunes PS, St. James, Sebastopol, Napoleons PS, St. Columba’s Ballarat and Our Lady Help of Christian’s Wendouree.

PAGE 23 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

COMMUNITY ENGAGEMENT PROGRAM Objective KPI Timing Actions Achievements 2008-09 Increase School and A minimum of Report annually Support and promote the implementation of Schools visited in 2008/09: Student awareness of 10 new Schools the ResourceSmart Schools program. This 1. St. Alipius PS ResourceSmart - Waste visited each will include: 2. St. Francis Xavier PS year the provision of the Education Trailer, 3. St. Columba’s PS Upgrade the Education trailer to respond to 4. Lumen Christi PS the shift to Resource Smart Schools. 5. Ballarat Grammar Classroom activities 6. Teacher Environment Network PD Deliver ResourceSmart - Waste 7. St. Thomas More PS 8. Pleasant St PS 9. Caledonian PS 10. Yuille Park Community College 11. Maryborough Education Centre 12. St. Aloysius PS 13. Ballarat North PS 14. Bacchus Marsh PS 15. Redan PS 16. Clunes PS 17. Teesdale PS 18. Creswick PS 19. Creswick North PS 20. St. Augustine’s Creswick 21. Ballan PS Upgraded “Little Green Wagon” in use from Oct 08 Waste Wise Businesses and Organisations Highlands Sustainability Grow Ongoing Coordinate three breakfast sessions and one “Pigs & Pastries” Achieving Business Network membership by workshop/site visit per year. Efficiencies Aug 08 10% per year Sovereign Hill incl. tour Nov 08 Waste Wise Business Award at annually Sponsor a Business Award Category that Sponsor of ‘Towards Zero Waste’ Award Award Ballarat emphasises waste reduction and Regional sustainability in the Ballarat Regional 14 entrants in the TZW Award Business Business Awards. Awards held Encourage and support Award Ceremony to annually in be ResourceSmart. August

PAGE 24 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

COMMUNITY ENGAGEMENT PROGRAM Objective KPI Timing Actions Achievements 2008-09 Waste Wise Business Number of 5 new each year Support Existing Waste Wise Businesses in 1. Avoca Business & Tourism Inc Participation Organisations their transition to ResourceSmart. participating Support business across all sectors to Due to the uncertainty of the transition to become ResourceSmart. Audit report will be RS promotion of WW has not being a submitted to Sustainability Victoria to capture priority. learning outcomes Report submitted to SV All organisations annually Provide training and support. 1. Sovereign Hill recertified 2. Hepburn Health Service Gold Level Due to the uncertainty of the transition to RS many organisations are waiting until this process becomes clear Waste Wise Events & Event Venues Major Events and Venues 4 Events Annually Develop a priority list of major event venues List submitted to SV in Highlands Region (e.g. Princes Park Maryborough) Certified major events are: Support venues to adopt sustainable 1. RACV Energy Breakthrough practices 2. Great Victorian Bike Ride Support events to implement sustainable 3. Rainbow Serpent Festival initiatives with an emphasis on waste 4. Meredith Music Festival reduction/recycling initiatives 5. Golden Plains Festival Bin Cap trailer, banner and mobile bill board 6. MooraFest available for events. 7. Ballan Autumn Festival This may include a major CFA fire event. 8. Ballan YOUTH Carnivalé Promote Sustainable Living Foundation on- line event kit. Report submitted to SV Litter Prevention & Reduction Adopt a Shopping Strip Two December 2008 Engage school and retail traders in the 1. Ballarat Grammar Junior School project. APS group (Anti Pollution Squad)/ Develop support materials. Howitt St Shops Conduct Pre and post assessment and 2. Pleasant St PS Junior School evaluation. Council/ Pleasant St

PAGE 25 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

COMMUNITY ENGAGEMENT PROGRAM Objective KPI Timing Actions Achievements 2008-09 LESS Litter Toolkit for 100% of June 2010 Promote Secondary Schools Litter Toolkit. Project completed all secondary school Secondary Schools Highlands (75% by June The Toolkit was developed during 05/06 and campuses in Highlands Regional have secondary 09) is being distributed to Regional Secondary received the toolkit and support as required schools receive Schools via a series of workshops the Toolkit

Illegal dumping Incidences of May 2009 The HRWMG as lead organisation will SV grant application unsuccessful. illegal dumping coordinate a “Whole of Government” project EPA grant $12,500 received reduced by to combat illegal dumping including Project held over to 09/10 10%. compliance officers from the member councils. A minimum of two existing sites of repeated illegal dumping per municipality will be nominated for investigation using resources purchased as part of the project. In addition the methodology developed will be used on new dumping sites as necessary. The involvement of all public land managers will be included. Public Communication Community Information 4 Displays Annually Ensure community understanding and MooraFest Displays support for the HRWMG vision by providing a comprehensive range of presentations and displays. Community Presentations 4 Presentations Annually Guest speaking at community meetings such There have been no requests. as Probus, Rotary etc. Media Communication Positive media Annually Develop networks with media outlets in Media coverage was obtained for Waste coverage of Highlands Region to assist in the promotion Wise certifications at identified events of events and the work of the RWMG. • Ross Creek PS Events for promotion in 2008/09 are, • Hepburn Shire Council ResourceSmart Certification, Regional Waste • Avoca Business and Tourism Management Plan, and Sustainability • Hepburn Health Service Breakfasts. • Sovereign Hill The launch of BlinkyBulb received extensive coverage.

PAGE 26 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

COMMUNITY ENGAGEMENT PROGRAM Objective KPI Timing Actions Achievements 2008-09 “Junk Mail” 4 issues per Quarterly Production of a quarterly regional newsletter Spring 2008 “We are ResourceSmart” Year for distribution to Stakeholders. Summer 2008/09 “Going for GOLD!” Autumn 2009 “BlinkyBulb” Recycled Roadshow Display May 2009 In conjunction with Calder Regional Waste Launched April 2009 (Joint project with Calder developed Management Group, develop a mobile “Race into Recycling” slogan and artwork RWMG) project will focus display of products manufactured using on promoting products recyclates as their raw product. The display from recycled materials would be themed in the product streams Household, Business and Construction, to suit respective audiences. Fluorescent Tube Trial project June 2009 Liaison with Rotary to: Project established Recycling delivered • identify collection points and process TV ad and promotional items developed. Project • develop marketing and promotion A partnership project • develop and deliver collector training Launched World Environment Day 5 June with Rotary District 9870 2009 (Preserve Planet Earth www.blinkybulb.com.au Water & Environment Committee.)

PAGE 27 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

STRATEGY and PERFORMANCE MONITORING PROGRAM Objective KPI Timing Actions Achievements 2008-09 Regional Waste New RWMP January 2009 Website to support consultation and Preliminary studies and Research Management Plan submitted for submissions. completed:

approval by Develop a new RWMP in accord with the • Kerbside Organics Feasibility

EPA legislative requirements, incorporating Study. Education and Litter Strategies. • Kerbside and TS bin audit. The RWMP should identify and investigate • Community Attitudes Survey the business viability for future regional infrastructure, to include: • Landfill Owner Survey. • Materials Recovery Facilities with Website completed. particular emphasis on Construction and Demolition. • Organics Processing to facilitate further diversion of garden waste and organics from the kerbside stream. Waste recovery stations (transfer stations) and infrastructure and equipment to reduce the burden of transport costs on rural communities. RWMP Annually in Review and update the RWMP Not Applicable

reviewed and February updated Community Perceptions Improve April 2011 Conduct a statistically valid community Study completed Community survey on understanding, attitude and Benchmarks knowledge of appropriate actions to take on waste and litter issues. Commercial and Report May 2009 Analyse the types and sources of business Project was not eligible for funding from the Industrial (C&I) Waste to presented waste to Smythesdale Regional Landfill to Sustainability Victoria Regional TZW Landfill better understand their needs – audit the Support Program. waste stream. Collect accurate data to identify priority industries/waste streams including consultation with major collectors.

PAGE 28 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

STRATEGY and PERFORMANCE MONITORING PROGRAM Objective KPI Timing Actions Achievements 2008-09 Waste Contract Statistical Introduce as Assist Member Councils to ensure that all Central Goldfields Tenders let in 2008/09. Benchmarks returns to tenders waste contracts require the contractor to member advertised provide regular statistical returns. The Councils by measures will be consistent within the region waste services to allow for benchmarking. providers. Work with Member Councils to maintain the current database of physical and financial performance indicators for contract and facility performance in Highlands Region. Collection of benchmark data and performance indicators will utilise the templates provided by Sustainability Victoria. Sustainability Victoria Number of Annually Provide support to ensure that all Member Completed. Site visit to City of Ballarat to Local Government Data reviews and Councils submit accurate survey results in full assist staff in completing survey. Collection Survey reworks by and on time. Ensure that all Member Councils regional office understand the benefits of the survey program and actively participate. ResourceSmart To be certified December 2009 Develop a Sustainability Policy and Resource Environmental Policy and Resource Smart Government Resource Smart Smart Government Action Plan for the Group. Action Plan adopted by HRWMG Board 25/08/08

5 Star Sustainability Assessment not yet available from Sustainability Victoria

PAGE 29 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

ORGANISATIONAL SYSTEMS and OPERATIONS Objective KPI Timing Actions Achievements 2008-09 Governance Internal Audit Internal Audit Two per year Internal auditor to review and report to the Internal Audit presented December 2008. Reports to Board (acting as an Audit Committee). Budget only allowed for one audit Board Audit Committee Chair Exemption Annually in Seek Department of Treasury and Finance Exemption received. Exemption Received September exemption for the appointment of an external Chair of an Audit Committee. Charter of Corporate C. of Corp. Gov. April 2009 Review the Charter of Corporate Reviewed and corrected. Governance Reviewed Governance. Draft Business Plan Business Plan 30 July each Submitted for ministerial approval Business Plan approved. approved year Annual Report Approved by the As required by Submitted and reported as received by the Reported as received. Auditor General the Financial Minister for Environment and Climate Change and endorsed Management to Parliament. by the DSE Act 1994 – normally the 15 October Training and Professional Development Directors Induction Every Director Annually in Conduct a New Directors Induction Program Director’s induction completed 29 January undertakes an January and provide each new Director with 2009. All Directors attended. induction prior to Handbook with Constitution, Charter of their first Board Corporate Governance, Contact details and Meeting Minutes and Agendas for previous year. Board Self Assessment 70% overall Annually in May Board Self Assessment Review to evaluate Not undertaken in 2008/09 approval the Groups performance. (Nous Group) Conferences and Directors, REO As available Attend Conferences and Seminars Various SV forums attended by EO, REO, Seminars and EO as appropriate to skills development and training Chairman, Board Members as appropriate approved by the needs analysis. All training/information AVRWMG meetings, REO Gatherings Executive sessions organised by Sustainability Victoria VAEE ResourceSmart – AuSSI Vic are considered compulsory for the nominees. training.

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Benchmarking Services A range of kerbside service cost and performance comparators are maintained to both compare the effectiveness in service delivery between the member Councils and to establish benchmarks for broader comparison from the Sustainability Victoria Municipal Survey. The comparators use the most recently available survey data from Sustainability Victoria. Table 7 Regional Kerbside Service Comparators

CENTRAL GOLDFIELDS (Mass for recycling are BALLARAT MOORABOOL HEPBURN estimates) PYRENEES GOLDEN PLAINS COMPARATOR 07/08 06/07 05/06 07/08 06/07 05/06 07/08 06/07 05/06 07/08 06/07 05/06 07/08 06/07 05/06 07/08 06/07 05/06 Average Annual Cost of Kerbside Waste per Tenement $78.49 $61.62 $57.70 $73.44 $67.37 $69.07 $70.01 $69.91 $59.80 $56.64 $52.75 $51.97 $70.15 $72.79 $62.38 $91.26 $85.38 $75.05 Average Annual Mass Kerbside Waste per Tenement (kg) 468 459 586 463 401 409 363 310 430 403 405 407 375 376 461 698 649 671 Average Annual Cost of Kerbside Recycling per Tenement $28.52 $40.87 $32.60 $63.69 $56.05 $55.05 $66.50 $61.43 $54.74 $30.70 $30.06 $28.42 $54.21 $34.75 $29.22 $38.44 $38.30 $35.85 Average Annual Mass Kerbside Recycling per Tenement (kg) 248 235 231 266 261 257 270 217 226 103 92 90 158 156 149 194 184 170 Average Annual Cost of Kerbside Services per Tenement $107.01 $102.49 $90.30 $137.12 $123.42 $124.12 $136.51 $131.34 $114.54 $87.34 $82.81 $80.39 $124.37 $107.54 $91.60 $129.70 $123.68 $110.90 Diversion Rates 35% 34% 28% 36% 39% 39% 43% 41% 34% 20% 18% 18% 30% 29% 24% 22% 22% 20%

PAGE 31 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

Financial Summary 2009 2008 2007 2006 2005 2004 $ $ $ $ $ $ Revenue 356,199 313,713 393,396 471,087 283,600 238,645 Expenditure 412,587 307,092 633,569 215,916 205,283 213,453 Operating Result (56,388) 6,621 (240,175) 255,171 78,317 25,192 Current Assets 301,742 353,330 319,786 589,136 324,749 242,051 Non Current Assets 19,310 21,542 33,103 3,895 4,914 6,306 Current Liabilities 34,335 31,767 16,405 16,374 8,177 5,186 Non Current Liabilities Nil Nil Nil Nil Nil Nil Net Assets 286,717 343,105 336,484 576,657 321,486 243,171

Retained Profits 51,623 108,011 101,390 341,563 86,392 8,075

Total Equity 286,717 343,105 336,484 576,657 321,486 243,169

Significant changes in financial position during the year There were no significant changes in the financial position of the Group during the year.

Major changes or factors affecting performance There were no major changes or factors affecting performance during the year.

PAGE 32 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

Statement of Legislative Compliance Whistleblowers Protection The Whistleblowers Protection Act 2001 came into effect on 1 January 2002. The Act is designed to protect people who disclose information about serious wrongdoing within the Victorian Public Sector and to provide a framework for the investigation of these matters. The protected disclosure co-ordinator for the Department of Sustainability and Environment acts as an agent for HRWMG to receive disclosures under the Act, and applies DSE procedures in managing disclosures. There were no disclosures under the Act, in relation to HRWMG during the year. Disclosures of improper conduct by the Authority or its employees may be made to the following: Jennifer Berensen Protected Disclosure Coordinator Department of Sustainability and Environment PO Box 500 East Melbourne Vic 3002 Telephone: 03 9637 8697 Facsimile: 03 9637 8128 Email: Jennifer. [email protected]

The Ombudsman Victoria GPO Box 469 Melbourne Vic 3001 Telephone: 03 9613 5212 Toll free: 1800 500 509 Occupational Health and Safety The Occupational Health and Safety Act 1985 provides the legislative basis for two interrelated approaches to the management of occupational health and safety (OH&S). These are: • a risk management approach to hazard control; and • consultation between the employer and their staff. The Occupational Health and Safety Policy outlines the Group’s approach in OH&S risk management. This policy also provides details on the consultative mechanisms for managing OH&S in the workplace. Highlands Regional Waste Management Group (RWMG) will provide and maintain a working environment for all staff and visitors, which is safe and without risk to their health. This commitment is embodied in the Highlands RWMG Occupational Health & Safety Policy which is Attachment 3 to the Charter of Corporate Governance. The following principles in the management of OH&S are utilised by the Highlands RWMG: • Highlands RWMG supports the implementation of a systematic approach to risk management in accordance with the SafetyMAP risk management system. • The assessment and provision of appropriate workplace first aid facilities assists the organisation in reducing the severity of injury and illness within the workplace and in maintaining a safe and healthy work environment. • The provision of a smoke-free working environment is necessary to ensure that staff and visitors to Highlands RWMG’s workplace are not troubled by the adverse effects of active or passive smoking. • Good work practices and workstation design will enhance work efficiency and minimize the risk of occupational injury. • Personal protective equipment is provided to staff when other methods of hazard control are not able to provide the necessary protection from a workplace risk.

PAGE 33 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

• Staff will be provided with appropriate eye protection where required to afford necessary protection from workplace hazards. • Highlands RWMG is committed to establishing precautionary procedures that protect staff and clients from infection within the Group’s site(s). This is achieved by providing materials necessary to practice infection control in the workplace and information and educational programs regarding infection control in the workplace. • The provision of occupational rehabilitation following a work related injury or illness will facilitate the recovery and early resumption to duty of a staff member. • Reporting and investigation of work related injuries, illnesses and 'near misses' will help prevent similar occurrences in the future. • Trauma debriefing services should be provided to staff members who may be affected as a result of a traumatic incident which occurs on Highlands RWMG premises or as a result of its operations. No matters have arisen during the year and no WorkCover claims have been lodged Industrial Relations No matters have arisen during the year so no time was lost. Building Act HRWMG did not undertake any building works, which fall within the provisions of the Building Act 1993. National Competition Policy The national competition reform agenda has resulted in a greater emphasis on the encouragement of competition in the community. Competitive neutrality is a principle of the National Competition Policy and requires that, as far as practicable, government owned businesses compete with private sector businesses on the same footing. Highlands RWMG, as the independent manager of, and investor in Highlands RWMG’s assets, purchases services and goods in line with the Victorian Government Purchasing guidelines. In doing this, the Highlands RWMG applies the following principles: (i) Value for money (ii) Open and fair competition (iii) Accountability (iv) VIPP policy The Highlands RWMG adheres to the principles of the National Competition Policy to ensure that any business competition with private entities takes place in an environment where Central Murray RWMG has no competitive advantage. The Environment Protection Act 1970 specifically precludes Highlands RWMG from undertaking waste management activity that is being carried out on a commercial basis anywhere in Victoria. The Highlands RWMG strictly adheres to relevant provisions of the Environment Protection Act 1970 in relation to this issue. Overseas Travel No HRWMG director or staff member participated in overseas travel during the reporting year. Merit and Equity The Public Administration Act 2004 specifies a number of employment and conduct principles that must be observed by public sector organisations and their employees. HRWMG is committed to the principles of merit and equity in human resource management. The Group ensures that: • Decisions are based on merit; • Our employee is treated fairly and reasonably; • Equal employment opportunity is provided; • There are reasonable avenues of redress against unfair or unreasonable treatment.

PAGE 34 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

Our Employees must: • Act with impartiality; • Display integrity, including avoiding real or apparent conflicts of interest; • Show accountability for actions; • Provide responsive service. The Group has two employees, Mr. Philip Clingin and Ms. Rosemary Angus. Work Force Data 2008/2009 2007/2008 Total Employees 2 2

Senior Management (salary less than $120,000) 1 1 Male 1 1 Female 1 1 Full Time 2 2 Part Time 0 0 Equivalent Full Time (EFT) 2 2 Age 25-34 0 0 Age 35-44 0 0 VPS 4 1 1 VPS 6 1 1

Cultural Diversity HRWMG is committed to policies, programs and strategies aimed at delivering culturally appropriate services. Disclosure of Major Contracts HRWMG did not enter into any contracts greater than $10 million in value during the reporting period. Consultancies over $100,000 No new consultancies with a value greater than $100,000 were undertaken during the reporting period. Consultancies under $100,000 Two consultancies with a total value of $22,450 were undertaken during the reporting period. Freedom of Information The authority is considered to be a 'Government Agency' under the terms of the Freedom of Information Act 1982. Accordingly, it is required to comply with the procedures that have been prescribed under which members of the public may gain access to information held by agencies. A decision to release information is made by the Chair of the Board. The authority has determined that the Authorised Officer is the Executive Officer. Contact details are: Mr Philip Clingin Executive Officer Highlands Regional waste Management Group PO Box 1067, Ballarat, 3354 [email protected] Ph. 5333 7770 F.O.I. requests are to be submitted in writing accompanied by a $23.40 enquiry fee. Further charges may be payable. F.O.I. fees and charges are not subject to GST. Further information regarding Freedom of Information can be found on FOI Online, www.foi.vic.gov.au. No requests were made in 2008-09 for information under the Freedom of Information Act 1982. Declaration In accordance with Direction 9.1.3(iv) of the Financial Management Act 1994, the Highlands Regional Waste Management Group will make all relevant information, such as declarations of pecuniary interest and details of overseas visits, etc, available to the Minister on request.

PAGE 35 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

The Information Privacy Act 2000 The Information Privacy Act 2000 establishes a regime for the responsible collection and handling of personal information in the Victorian public sector. The HRWMG complies with the Ten Information Privacy Principles: IPP 1 Collection Collect only personal information that is necessary for performance of functions. Advise individuals that they can gain access to personal information. IPP 2 Use and disclosure Use and disclose personal information only for the primary purpose for which it was collected or a secondary purpose the person would reasonably expect. Use for secondary purposes should have the consent of the person. IPP 3 Data quality Make sure personal information is accurate, complete and up to date. IPP 4 Data security Take reasonable steps to protect personal information from misuse, loss, unauthorised access, modification or disclosure. IPP 5 Openness Document clearly expressed policies on management of personal information and provide the policies to anyone who asks. IPP 6 Access and correction Individuals have a right to seek access to their personal information and make corrections. Access and correction will be handled mostly under the Victorian Freedom of Information Act. IPP 7 Unique identifiers A unique identifier is usually a number assigned to an individual in order to identify the person for the purposes of an organisation's operations. Tax File Numbers and Driver's Licence Numbers are examples. Unique identifiers can facilitate data matching. Data matching can diminish privacy. IPP 7 limits the adoption and sharing of unique identifiers.

IPP 8 Anonymity Give individuals the option of not identifying themselves when entering transactions with organisations, if that would be lawful and feasible.

IPP 9 Transborder data flows Basically, if your personal information travels, your privacy protection should travel with it. Transfer of personal information outside Victoria is restricted. Personal information may be transferred only if the recipient protects privacy under standards similar to Victoria's IPPs.

IPP 10 Sensitive information The law restricts collection of sensitive information like an individual's racial or ethnic origin, political views, religious beliefs, sexual preferences, membership of groups or criminal record. Statement of Availability of Other Information The following documents are available on request from the Highlands RWMG Office: • a statement that Declarations of Private Interests have been completed by all relevant officers, • shares held by a senior officer, • publications produced by the entity about itself, and how these can be obtained, • changes in prices, fees, charges, rates and levies charged, • major external reviews carried out on the entity, • major research and development activities undertaken, • Overseas travel undertaken including a summary of the objectives and outcomes of each visit,

PAGE 36 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

• major promotional, public relations and marketing activities undertaken by the entity to develop community awareness of the entity and its services, • assessments and measures undertaken to improve the OHS of employees, • a general statement on IR within the entity and details of time lost through industrial accidents and disputes, and • a list of major committees sponsored by the entity, the purposes of each committee and the extent to which the purposes have been achieved Implementation of the Victorian Industry Participation Policy In October 2003, the Victorian Parliament passed the Victorian Industry Participation Policy Act 2003 which requires public bodies and departments to report on the implementation of the Victorian Industry Participation Policy (VIPP). Departments and public bodies are required to apply VIPP in all tenders over $3 million in metropolitan Melbourne and $1 million in regional Victoria. The Group advertised no tenders at or over $1 million in 2008-09. Attestation on compliance with the Australian/New Zealand Risk Management Standard

I, Noel Perry certify that the Highlands Regional Waste Management Group 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 Highlands RWMG verifies this assurance and that the risk profile of the Highlands RWMG has been critically reviewed within the last 12 months.

Cr. Noel Perry APM Chairperson 11 September 2009

PAGE 37 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

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PAGE 38 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

Audited Financial Report

PAGE 39 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

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VAGO Victorian Auditor-General's Office

INDEPENDENT AUDITOR'S REPORT

To the Members of the Board, Highlands Regional Waste Management Group

The Financial Report The accompanying financial report for the year ended 30 June 2009 of the Highlands Regional Waste Management Group which comprises an operating statement, balance sheet, statement of changes in equity, cash flow statement, a summary of significant accounting policies and other explanatory notes to and forming part of the financial report, and the statement by chairperson and accountable officer has been audited.

The Board Members Responsibility for the Financial Report The Board Members of the Highlands Regional Waste Management Group are responsible for the preparation and the fair presentation of the financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the financial reporting requirements of the Financial Management Act 1994. This responsibility includes: • establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error • selecting and applying appropriate accounting policies • making accounting estimates that are reasonable in the circumstances.

Auditor's Responsibility As required by the Audit Act 1994, my responsibility is to express an opinion on the financial report based on the audit, which has been conducted in accordance with Australian Auditing Standards. These Standards require compliance with relevant ethical requirements relating to audit engagements and that the audit be planned and performed to obtain reasonable assurance whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The audit procedures selected depend on judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, consideration is given to internal control relevant to the group’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group's internal control. An audit also includes evaluating the appropriateness of the accounting policies used, and the reasonableness of accounting estimates made by the Board Members, as well as evaluating the overall presentation of the financial report. I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion.

Level 24, 35 Coli ins Street, Melbourne Vie. 3000 Telephone 61 38601 7000 Facsimile 61 38601 7010 Email [email protected] Website www.audit.vic.gov.au

Auditing in the Public Interest VAGO Victorian Auditor-General's Office

Independent Auditor's Report (Continued)

Matters Relating to the Electronic Presentation of the Audited Financial Report This auditor's report relates to the financial statements published in both the annual report and on the website of the Highlands Regional Waste Management Group for the year ended 30 June 2009. The Board Members of the Highlands Regional Waste Management Group are responsible for the integrity of the website. I have not been engaged to report on the integrity of the website. The auditor's report refers only to the statements named above. An opinion is not provided on any other information which may have been hyperlinked to or from these statements. If users of this report are concerned with the inherent risks arising from electronic data communications, they are advised to refer to the hard copy of the audited financial report to confirm the information included in the audited financial report presented on the Highlands Regional Waste Management Group website. Independence The Auditor-General's independence is established by the Constitution Act 1975. The Auditor- General is not subject to direction by any person about the way in which his powers and responsibilities are to be exercised. The Auditor-General, his staff and delegates comply with all applicable independence requirements of the Australian accounting profession.

Auditor's Opinion In my opinion, the financial report presents fairly, in all material respects, the financial position of the Highlands Regional Waste Management Group as at 30 June 2009 and its financial performance and cash flows for the year then ended in accordance with applicable Australian Accounting Standards (including the Australian Accounting Interpretations), and the financial reporting requirements of the Financial Management Act 1994.

MELBOURNE D D R Pearson 14 September 2009 Auditor-General

Level 24, 35 Coli ins Street, Melbourne Vie. 3000 Telephone 61 38601 7000 Facsimile 61 38601 7010 Email [email protected] Website www.audit.vic.gov.au

Auditing in the Public Interest

Highlands Regional

Waste Management Group Financial Report for the

Year ended 30 June 2009

HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP

OPERATING STATEMENT

FOR THE REPORTING PERIOD ENDED 30 Notes 2009 2008 JUNE 2009 ($) ($) REVENUE FROM CONTINUING OPERATIONS

Revenue From Operating Activities

Government Grants received 2 107,938 64,778

Land fill levy 240,538 235,488

Project Income

Revenue From Non Operating Activities

Interest Revenue 7,723 12,926

Sundry Income 521

356,199 313,713

EXPENSES FROM ORDINARY ACTIVITIES

Administration costs 3 187,684 124,606

Employee Benefits 3 207,893 109,252

Depreciation 7 11,560 11,561

Executive Support - 55,473

Other expenditure 4 5,450 6,200

412,587 307,092

NET PROFIT / (LOSS) (56,388) 6,621

THE ABOVE OPERATING STATEMENT SHOULD BE READ IN CONJUNCTION WITH THE ACCOMPANYING NOTES.

PAGE 40 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP

BALANCE SHEET

AS AT 30 JUNE 2009 Notes 2009 2008

($) ($)

CURRENT ASSETS

Cash and Cash Equivalents 5 218,379 292,689

Receivables 6 83,363 60,641 TOTAL CURRENT ASSETS 301,742 353,330

NON - CURRENT ASSETS

Plant and Equipment 7 19,310 21,542

TOTAL NON - CURRENT ASSETS 19,310 21,542

TOTAL ASSETS 321,052 374,872

CURRENT LIABILITIES

Employee Benefits 8 12,525 4,118

Payables 9 21,810 27,649 TOTAL CURRENT LIABILITIES 34,335 31,767

TOTAL LIABILITIES 34,335 31,767

NET ASSETS 286,717 343,105

EQUITY

Contributed Capital 11 235,094 235,094

Retained Profits / (Accumulated Losses) 11 51,623 108,011

TOTAL EQUITY 286,717 343,105

THE ABOVE BALANCE SHEET SHOULD BE READ IN CONJUNCTION WITH THE ACCOMPANYING NOTES.

PAGE 41 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP

STATEMENT OF CHANGES IN EQUITY

FOR THE REPORTING PERIOD ENDED 30 JUNE 2009 CONTRIBUTED RETAINED CAPITAL EARNINGS TOTAL NOTES ($) ($) ($)

Balance 1 July 2008 235,094 108,011 343,105

Net result for the year - (56,388) (56,388)

BALANCE 30 JUNE 2009 235,094 51,623 286,717

THE ABOVE STATEMENT OF CHANGES IN EQUITY SHOULD BE READ IN CONJUNCTION WITH THE ACCOMPANYING NOTES.

PAGE 42 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP

CASH FLOW STATEMENT

FOR THE REPORTING PERIOD ENDED Notes 2009 2008

30 JUNE 2009 INFLOWS/(OUTFLOWS) INFLOWS/(OUTFLOWS)

($) ($)

CASH FLOWS FROM OPERATING ACTIVITIES

Land fill levy contributions 237,590 234,412

Grants received 89,962 64,778

Payments to suppliers and employees (400,257) (279,156)

Interest received 7,723 12,926

Sundry Income - 521

NET CASH FLOWS FROM OPERATING (64,982) 33,481 ACTIVITIES 10 (a)

NET CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Plant and equipment (9,328) -

CASH FLOW USED IN INVESTING ACTIVITIES -

NET (DECREASE)/INCREASE IN CASH HELD (74,310) 33,481

Cash and Cash equivalents at the beginning of 292,689 259,208 the financial year

CASH AND CASH EQUIVALENTS AT THE END 10 (b) 218,379 292,689 OF THE FINANCIAL YEAR

THE ABOVE CASH FLOW STATEMENT SHOULD BE READ IN CONJUNCTION WITH THE ACCOMPANYING NOTES.

PAGE 43 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 JUNE 2009

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Establishment of Reporting Entity The Governor-in-Council by Order published in the Government Gazette on 8th of May 1997 declared The Highlands Waste Management Region to be a region pursuant to section 50E of the Environment Protection Act 1970. The constitution of the Highlands Regional Waste Management Group took effect on the 18th of December 1997 by the publication of an Order by the Governor-in-Council in the Government Gazette. The operations of the Highlands Regional Waste Management Group covered in this report are for the year ended the 30th of June 2009. The comparative figures are for the year ended the 30th of June 2008. The Financial report was authorised for issue by the Executive Officer on 11th of September 2009.

1 Significant Accounting Polices

(a) Basis of Accounting The financial report has been prepared for distribution to Waste Management Group representatives, Sustainability Victoria and the Minister for Environment and Climate Change. The financial report of Highlands Regional Waste Management Group is a general purpose financial report that consists of an Operating Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and notes accompanying these statements. The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards including Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the requirements of the Financial Management Act 1994, and applicable Ministerial Directions. The financial report has been prepared on an accrual basis and going concern basis. The financial report has also been prepared under the historical cost convention. Appropriations and other revenues, which the Highlands Regional Waste Management Group controls to carry on its functions, have been included in this financial report. (b)Accounting Policies Unless otherwise stated all accounting policies are consistent with those of the prior year. Where appropriate, comparative figures have been amended to accord with current presentation and disclosure made of material changes to comparatives. Classification Between Current and Non-Current In the determination of whether an asset or liability is current or non-current, consideration is given to the time when each asset or liability is expected to be realised or paid. The asset or liability is classified as current if it is expected to be turned over within the next twelve months, being the Group’s operational cycle. Rounding Unless otherwise stated, amounts in the report have been rounded to the nearest dollar. (c) Revenue Recognition

(i) Landfill Levy Income Landfill levy revenue and other revenue reflect the amounts received and receivable for the financial period by the Group. (ii) Grants and Contributions Government grants and contributions are recognised as operating revenue upon receipt or when an entitlement is established, whichever is the sooner and disclosed in the operating statement as government contributions. (iii) Interest income Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.

PAGE 44 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP

NOTES TO THE FINANCIAL STATEMENTS

(d) Employee Benefits (i) Employee Benefits Provision is made for benefits accruing to employees in respect of salaries, annual leave, long service leave and sick leave when it is probable that settlement will be required and they are capable of being measured reliably. Provisions made in respect of employee benefits expected to be settled within twelve months, are measured at their nominal values, using the remuneration rate expected to apply at the time of settlement. Provisions made in respect of employee benefits not expected to be settled within twelve months, are measured at their present value of the estimated future cash outflows to be made by the Group, in respect of services provided by employees up to the reporting date. (ii) Superannuation The amount charged to the operating statement in respect of superannuation represents the contributions made by the Group to the superannuation plan in respect to the current services of the current entity staff. Superannuation contributions are made to the plans based on the relevant rules of each plan. (e) Goods and Services Tax Revenues, expenses and assets are recognised net of goods and services tax (GST) except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In these circumstances the GST is recognised as part of the cost of acquisition of the asset or part of an item of expense. Receivables and payables are stated inclusive of GST. The net amount of GST recoverable from or payable to the ATO is included as a current asset or liability in the Balance Sheet. Cash flows arising from operating activities are disclosed in the Cash Flow Statement on a gross basis – i.e. inclusive of GST. The GST component of cash flows arising from investing and financing activities which is recoverable or payable to the taxation authority is classified as operating cash flows. (f) Cash & Cash Equivalents For the purpose of cash flow statement, cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other short term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. (g) Recognition and Measurement of Assets Acquisition The purchase method of accounting is used for all acquisitions of assets regardless of whether equity interests or other assets are acquired. Cost is measured as the fair value of the assets given, shares issued or liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition. Property, plant and equipment represent non-current assets comprising plant and equipment used by the Group in its operations. Items with a cost or value in excess of $1,000 and a useful life of more than one year are recognised as an asset. All other assets acquired are expensed. The carrying amount of plant and equipment is reflective of fair value given assets are of low value and have short useful lives. Repairs and Maintenance Routine maintenance, repair costs and minor renewal costs are expensed as incurred. Where the repair relates to the replacement of a component of an asset and the cost exceeds the capitalisation threshold, the cost is capitalised and depreciated. (h) Depreciation and Amortisation of non Current Assets Plant and Equipment – 30% per annum , diminishing value basis Motor Vehicles – 15% per annum, straight line basis (i) Receivables Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns and taxes paid. Trade receivables are recognised initially at fair value and subsequently measured at amortised cost, less allowance for doubtful debts. Collectibility of trade receivables is reviewed on an ongoing basis and debts which are unknown to be collectible are written off. No provision for doubtful debts has been raised because all trade receivables are considered collectible at the reporting date. (j) Administered Transactions Landfill Levy Revenue The Highlands Regional Waste Management Group was not involved in the administration of transactions regarding the collection and receipting of Landfill Levy Revenue on behalf of the Environment Protection Authority. (k) Provision for Restoration The Group has no obligation for the restoration of landfill locations.

PAGE 45 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 JUNE 2009 2009 2008 ($) ($) 2. GRANTS RECEIVED Sustainability Victoria Gap Funding 57,643 37,778 ‘Blinky Bulb’ – Partner Contributions 12,500 - Sustainability Victoria Project Contributions – Bin Audit 23,818 - – Organics Scoping Study - 25,000 Litter Prevention Grants 12,500 2,000 Education Trailer Renovation 1,477 - 107,938 64,778 3. ADMINISTRATION & EMPLOYEE BENEFITS ADMINISTRATION COSTS Accountancy 7,643 6,140 Advertising 8,033 4,662 Bank Charges 111 23 Business Plan 2,874 4,641 Conferences & Seminars 6,269 2,584 Projects - Litter Prevention 1,209 2,624 - Organics Scoping Study 13,384 11,260 - Kerbside Bin and RRC Audit 14,764 59,055 - Transfer Station Safety Gates 24,071 2,955 - Community Surveys & Investigations 20,000 - - Blinky Bulb 22,200 - - Regional Waste Management Plan 13,334 - Education Program - 5,414 Education Trailer Operating 2,773 1,372 Electricity & Gas 1,902 - General Expenses 4,452 2,491 Internal Audit 3,150 - Insurance 5,587 4,849 Legal Fees 2,000 - Printing, Stationery, Equipment & Consumables 5,180 409 Office Rent 15,088 6,240 Subscriptions & Registrations 1,540 1,186 Telephone 4,224 - Travel & Accommodation 4,634 7,552 WorkCover 3,262 1,149 187,684 124,606 EMPLOYEE BENEFITS Wages & Directors Fees 192,965 102,110 Superannuation 14,928 7,142 207,893 109,252

395,577 233,858 4. OTHER EXPENDITURE Audit Fees 5,450 6,200 5,450 6,200 5. CASH AND CASH EQUIVALENTS Cash at bank 218,379 292,689 218,379 292,689

PAGE 46 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 JUNE 2009 2009 2008 ($) ($) 6. RECEIVABLES Landfill levies 45,466 44,141 EBA Gap Funding 19,774 Other 18,123 16,500 83,363 60,641 7. NON CURRENT ASSETS

Plant and Equipment & Motor Vehicles At Fair Value 54,815 45,487 Less Accumulated Depreciation (35,505) (23,945) 19,310 21,542

Reconciliation Reconciliation of the carrying amounts of plant and equipment at the beginning and end of the current and previous financial year. Carrying amount at Beginning 21,542 33,103 Additions 9,328 - Depreciation Expense 11,560 11,561 Carrying Amount at End 19,310 21,542

8. PROVISIONS Employee Benefits – Annual Leave 12,525 4,118

Reconciliation Carrying amount at beginning of year 4,118 403 Provision made during the year 8,407 3,715 Settlement made during the year - Carrying amount at end of year 12,525 4,118

9. PAYABLES Audit Fees - 5,995 5,390 Other Payables 15,815 22,259 21,810 27,649 10. CASH FLOW STATEMENT (a) Reconciliation of the operating result to the net cash flows from operations Operating result – Profit\(Loss) (56,388) 6,621 Add: Depreciation 11,560 11,561 Operating Result before Depreciation (44,828) 18,182 Changes in assets and liabilities Decrease/(Increase) in receivables (22,722) (63) Increase/(Decrease) in payables / provisions 2,568 15,362 Net cash flow from operating activities (64,982) 33,481

PAGE 47 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 JUNE 2009 2009 2008 ($) ($) (b) Reconciliation of cash Cash balance comprises: – Cash at bank 218,379 292,689 – Cash on Deposit - - Closing cash balance 218,379 292,689

11. EQUITY Contributed Capital Balance at the beginning of year 235,094 235,094 Transfer from retained earnings - - Balance at end of financial year 235,094 235,094

Retained Profits Balance at beginning of year 108,011 101,390 Transfers to contributed capital - - Profit / (Loss) for year (56,388) 6,621 Total available for appropriation 51,623 108,011 Balance at the end of year 51,623 108,011

12. FINANCIAL INSTRUMENTS

(a) Accounting Policies, Terms and Conditions

The Group’s accounting policies, including terms and conditions of each material class of financial asset and liability, both recognised and unrecognised at the balance date, are as follows:

Financial Note Accounting Policy Terms & Conditions Instruments Ref. (i) Financial Assets

Cash at Bank 5 Cash at bank is carried at Bank balance is at call earning principal amounts. interest at effective rate of 5% Interest is recognised as it is (2008 5%). earned.

Receivables 6 Amounts receivable are carried No interest is chargeable on late out at nominal amounts due. payment. (ii) Financial Liabilities

Payables 9 Liabilities are recognised for Liabilities are normally settled on amounts to be paid in the future 30 day term. for goods and services received, whether or not billed to the entity.

PAGE 48 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP

NOTES TO THE FINANCIAL STATEMENTS

(b) Interest Rate Risk

The Group’s exposure to interest rate risks and the effective interest rates of financial assets and liabilities both recognised and unrecognised are as follows:

Financial Floating Non-Interest Total carrying Weighted Instruments Interest Bearing amount as Average Rate per Balance Effective Interest Sheet Rate 2009 2008 2009 2008 2009 2008 2009 2008

(i) Financial Assets $ $ $ $ $ $ % % Cash & Bank 218,379 292,689 - - - - 218,379 292,689 5 5

Receivables - - - - 83,363 60,641 83,363 60,641 0 0

(ii) Financial Liabilities

Payables - - - - 21,810 27,649 21,810 27649 N/A N/A

(c) Net Fair Values The net fair values of the Group’s financial assets and financial liabilities are not expected to be significantly different from the class of asset and liability as disclosed above and recognised in the balance sheet as at 30 June, 2009.

(d) Financial Risk Management Objectives and Policies

The Group’s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. This note presents information about the Group's exposure to each of these risks, and the objectives, policies and processes for measuring and managing risk.

The Group's Board has the overall responsibility for the establishment and oversight of the Group's risk management framework. The Group's overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Group. The Group uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate and other price risks and ageing analysis for credit.

Risk management is carried out by the Board under policies approved for this purpose. The Board identifies and evaluates financial risks and then applies its written principles for overall risk management, covering specific areas such as interest rate risk, credit risk and liquidity risk.

(i) Risk Exposures The main risks the Group is exposed to through its financial instruments is as follows: (a) Market Risk

Market risk is the risk that changes in market prices will affect the fair value or future cash flows of the Group’s financial instruments. Market risk comprises of foreign exchange risk, interest rate risk and other price risk. The Group's exposure to market risk is primarily through interest rate risk. There is no exposure to foreign exchange risk and insignificant exposure to other price risks. Objectives, policies and processes used to manage these risks are disclosed in the paragraphs below:

(i) The Group's exposure to market interest rates relates to the investment of funds on the money market. The Group has minimal exposure to interest rate risk through its holding of cash assets. The Group manages its interest rate risk by restricting the investment of cash to deposits with major banks. (ii) The Group has no significant exposure to other price risk.

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HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP

NOTES TO THE FINANCIAL STATEMENTS

Market Risk Sensitivity Analysis The sensitivity analysis below has taken into consideration past performance, future expectations, economic forecasts and management's knowledge and experience of the financial markets. The Group believes that a movement of I % in interest rates is reasonable over the next 12 months.

Interest Rate Risk -1% +1% Carrying 30 June 2009 Amount Result Equity Result Equity

Financial Assets

Cash At Bank 218,379 (2,184) (2,184) 2,184 2,184

Total increase/(decrease) (2,184) (2,184) 2,184 2,184

(b) Credit Risk

Credit risk is the risk of financial loss to the Group as a result of a customer or counterparty to a financial instrument failing to meet its contractual obligations. Credit risk arises principally from the Group's receivables.

The Group’s exposure to credit risk is influenced by the individual characteristics of each customer. Receivable balances are, monitored on an on-going basis to ensure that exposure to bad debts is not significant. The Group has in place a procedure for the collection of overdue receivables.

(c) Liquidity Risk Liquidity Risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group's procedure is to settle financial obligations within 30 days and move to collections action after 60 days.

The group manages liquidity risk by maintaining adequate reserves and by continuously monitoring cash flows and matching the maturity profiles of financial assets and liabilities.

PAGE 50 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP

NOTES TO THE FINANCIAL STATEMENTS

2009 2008 YEAR ENDED 30 JUNE 2009 ($) ($) 13. EXPENDITURE COMMITMENTS Other expenditure commitments

Expenditure contracted for at balance date but not provided for in relation to amounts due for consultancy fees and service contracts - not later than one year - 46,703 - later than one year not later than two years - - - later than two years not later than five years - - - 46,703 14. SUPERANNUATION The Waste Management Group paid contributions as required to be made in accordance with any legislation.

15. CONTINGENT LIABILITIES The directors are unaware of any contingent liabilities as at the date of this report. 16. SUBSEQUENT EVENTS There have been no significant events that have occurred subsequent to 30 June 2009.

17. AUDITOR’S REMUNERATION

Amounts paid and payable to the Auditor-General pursuant to the Audit Act 1994, for the financial audit of the accounts for the year ended 30 June, 2009 amounted to $5,450.

18. RESPONSIBLE PERSONS DISCLOSURE

The names of persons who were responsible persons at any time during the reporting period are: Responsible Minister The Honourable Gavin Jennings 1/7/2008 – 30/6/2009 Minister for Environment and Climate Change Governing Board/Council Cr. Noel Perry 29/1/2009 – 30/6/2009 Chairperson Cr. Tom Sullivan 1/7/2008 – 30/6/2009 Deputy Chairperson Cr. Barry Rinaldi 1/7/2008 – 30/6/2009 Director Cr. Kevin Knight 1/7/2008 – 30/6/2009 Director Cr. William McClenaghan 1/7/2008 – 30/6/2009 Director Cr. Michael O’Connor 4/12/2008 – 30/6/2009 Director Cr. Benjamin Taylor 29/1/2009 – 30/6/2009 Director Cr. Stephen Jones 1/7/2008 – 19/11/2008 Chairperson Cr. David Vendy 1/7/2008 – 19/11/2008 Director Cr. Lysette Ashford 1/7/2008 – 19/11/2008 Director Accountable Officer

Mr. Philip Clingin 1/7/2008 – 30/6/2009 Executive Officer

19. REMUNERATION OF EXECUTIVE OFFICER The Executive Officer received total remuneration of $103,184 in accord with the Metropolitan and Regional Waste Management Groups Agreement 2007 Salary Grade 6.

PAGE 51 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP

NOTES TO THE FINANCIAL STATEMENTS

20. REMUNERATION OF RESPONSIBLE PERSONS

The remuneration of the Minister is disclosed in the financial statements of the Department of Premier and Cabinet. Remuneration received, or due and receivable by the Directors and Accountable Officer of the Highlands Regional Waste Management Group during the year ended 30 June 2008 in relevant income band: 2009 2008

$0 - $10,000 10 7

$20,000 – $30,000 0 1

$100,000 - $110,000 1 0

Total numbers 11 8

Total remuneration received or receivable by the Responsible Persons was $ 112,732 (2008 : $32,683)

21. RELATED PARTY TRANSACTIONS Revenue and expense transactions The Executive Officer’s services were paid under an agreement between the Group and a related entity of the officer which includes payments for office accommodation for the Group’s education officer. This agreement concluded on the 30 March 2008 and, in accord with a direction from the Minister for Environment and Climate Change, The Executive Officer is now a full time employee. On the 1 July 2008 the Group purchased all the office furniture, equipment and stock from the related entity of the officer for $7,483, based on an independent valuation. The Group continues to rent the office from the owners, Philip Andrew Clingin and Diane Eleanor Clingin, on an interim 3 monthly basis at $1,214 per month until, the outcome of the Ministers Review of Regional Waste Management Groups or new accommodation is found. The rental assessment was determined by a Certified Practising Valuer. The Executive Officer received salary and superannuation payments totalling $112,373 from 1 July 2008 to 30 June 2009. There were no other transactions of a revenue and expenditure nature with responsible persons and their related parties during the period. Amounts payable and receivable There were no other receivables or payables to responsible persons and their related parties during the period. Loans made to responsible persons and related parties No loans were made to responsible persons or their related parties during the year. Other transactions There were no other amounts attributable to other transactions with responsible persons and their related parties during the year.

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HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP

STATEMENT BY CHAIRPERSON and ACCOUNTABLE OFFICER

STATEMENT BY CHAIRPERSON, ACCOUNTABLE OFFICER AND FINANCE OFFICER

In our opinion:

(a) the accompanying financial report comprising the Operating Statement, Balance Sheet, Cash Flow Statement, Statement of Changes in Equity and notes to the financial statements, present fairly the results of the financial transactions of the Highlands Regional Waste Management Group for the year ended 30 June 2009 and sufficiently explain the financial position at that date; and (b) the financial report is prepared in accordance with mandatory reporting requirements including applicable Australian Accounting Standards and the requirements of the Financial Management Act 1994. At the date of signing this financial report, we are not aware of any circumstances that would render any particulars included in the financial report to be misleading or inaccurate.

Cr. Noel Perry Chairperson Highlands Regional Waste Management Group

Philip Clingin Accountable Officer and Finance Officer

Signed at Ballarat on the 11 September 2009

PAGE 53 HIGHLANDS REGIONAL WASTE MANAGEMENT GROUP - ANNUAL REPORT 2008-2009

Disclosure Index

The Annual Report of the Highlands Regional Waste Management Group is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the Group’s compliance with statutory disclosure requirements.

Legislation Requirement Page Reference Ministerial Directions Report of Operations – FRD Guidance Charter and purpose FRD 22B Manner of establishment and the relevant Ministers Page 44 FRD 22B Objectives, functions, powers and duties Page 2 FRD 22B Nature and range of services provided Page 2 Management and structure FRD 22B Organisational structure Page 3 Financial and other information FRD 10 Disclosure index Page 54 FRD 12A Disclosure of major contracts N/A FRD 15B Executive officer disclosures Page 51 FRD 22B,SD4.2(k) Operational and budgetary objectives and performance against objectives Page 20 FRD 22B Employment and conduct principles Page 33 FRD 22B Occupational health and safety policy Page 33 FRD 22B Summary of the financial results for the year Page 32 FRD 22B Significant changes in financial position during the year Page 32 FRD 22B Major changes or factors affecting performance Page 32 FRD 22B Subsequent events Page 51 FRD 22B Application and operation of Freedom of Information Act 1982 Page 34 FRD 22B Compliance with building and maintenance provisions of Building Act 1993 Page 33 FRD 22B Statement on National Competition Policy Page 33 FRD 22B Application and operation of the Whistleblowers Protection Act 2001 Page 33 FRD 22B Details of consultancies over $100,000 Page 34 FRD 22B Details of consultancies under $100,000 Page 34 FRD 22B Statement of availability of other information Page 35 FRD 24C Reporting of office-based environmental impacts Page 17 FRD 25 Victorian Industry Participation Policy disclosures Page 35 FRD 29 Workforce Data disclosures Page 34 SD 4.5.5 Risk management compliance attestation Page 35 SD 4.2(g) General information requirements Page 2 SD 4.2(j) Sign-off requirements Page 1 Financial Report Financial statements required under Part 7 of the FMA SD4.2(a) Statement of Changes in Equity Page 42 SD4.2(b) Operating Statement Page 40 SD4.2(b) Balance Sheet Page 41 SD4.2(b) Cash flow Statement Page 43 Other requirements under Standing Directions 4.2 SD4.2(c) Compliance with Australian accounting standards and other authoritative Page 44 pronouncements SD4.2(c) Compliance with Ministerial Directions Page 44 SD4.2(d) Rounding of amounts Page 44 SD4.2(c) Accountable officer’s declaration Page 53 SD4.2(f) Compliance with Model Financial Report Page 44 Other disclosures as required by FRDs in notes to the financial statements FRD 21A Responsible person and executive officer disclosures Page 51 FRD 110 Cash flow statements Page 43

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HIGHLANDS WASTE MANAGEMENT GROUP 2008 – 2009 Annual Report