ANNUAL REPORT 2008-09

Chipping Norton Lake Authority

National Library of Australia nla plc·an8008799-v Front Cover: View of the dam over the river at Liverpool, N.S. Wales Mason, Walter G. 1857, 1 print: wood engraving. National Library of Australia 30 October 2009 CHIPPING NORTON LAKEAUTHORITY

The Hon Tony Kelly ALGA MLC Minister for Lands Level 34 Governor Macquarie Tower 1 Farrer Place SYDNEY NSW 2000

2008/2009 Annual Report for Chipping Norton Lake Authority

Dear Mr Kelly

I have the pleasure of submitting to you, for presentation to Parliament, the Annual Report of the Chipping Norton Lake Authority for the year ended 30 June 2009.

The report has been prepared in accordance with the provisions of the Annual Reports (Statutory Bodies) Act, 1984, and the Public Finance and Audit Act, 1983.

Yours sincerely

Brian Dooley Minister's Delegate

Chipping Norton Lake Authority

CONTENTS

Introductory Remarks 1

Aims and Objectives of the Authority 2

Administration 2

Advisory Committee

Areas of the Department of Environment and Climate Change Relevant to the 3 Chipping Norton Lake Authority

Improvement Works: 4 General 4 Major Works 4 Liverpool Weir Remediation 4 Other Project Related Expenses 6 Dowling beach Development 6 Other Activities of the Authority: 7

Land Divestment 7

Leases and Licences 7 Community Access 7

Community Supportand Partnerships 8

Financial Report to 30 June 2009 Statement by Minister Independent Auditor's Report Audited Financial Report

Appendices:

A - Land Management and Divestment B - Geographical Names C - Provisional Budget 2009/2010 Locality Plan Aerial Photographs of Chipping Norton Lake Scheme Reporting Philosophy

Our report is characterised by openness and willingness to provide comprehensive information. We believe such detail should be publicly available. It reduces uncertainty enabling Government to assess the value of the Authority and be confident that its assets are being well managed.

INTRODUCTORY REMARKS

The responsibility for the administration and implementation of the "Chipping Norton Lake Authority Act 1977" was vested in the Minister for Lands by a special supplement of the Government Gazette in February 2005. The charter of the Authority is the environmental restoration of a section of the Georges River near Chipping Norton devastated by uncontrolled sand extraction, to establish a lake, rehabilitate waterways to provide foreshore parks and public recreation facilities and to develop wildlife refuges.

By agreement with the Department of Lands, through 2008-09 the Authority operated through the efforts of officers from the then Department of Environment and Climate Change. Responsibilities included the design and implementation of numerous works. Works, which included erosion control, sand mine rehabilitation, provision of access, picnic facilities and habitat restoration were undertaken in accordance with an approved Master Plan of the lake scheme.

Using royalty income collected from past extraction and filling operations, restoration was continued on the rehabilitation of foreshore and estuarine environments.

During the preceding 32 years, the Chipping Norton Lake Authority has been progressively restoring the degraded reach of the Georges River that extends between Milperra and Liverpool. The river and the associated foreshore parklands now represent a significant recreational amenity for hundreds of thousands of residents from central and western Sydney.

In 2008/2009 the Authority concluded designs and negotiations with Fairfield City Council and local stakeholders for the development of the Dowling Beach site on Floyd Bay at Lansvale.

Remediation works continued on the heritage and environmentally significant Liverpool We ir which is upstream and has an hydraulic relationship with the lake scheme. Funds were acquired for the remediation of the weir to safeguard against failure and major environmental damage to the river and the lake scheme. Considerable savings were achieved through the development of an innovative design that conserved a majority of the remaining convict built aspects of the weir.

The Authority's efforts were recognised in 2009 when the Liverpool Weir Remediation Project received the Environment and Heritage Excellence Award from the Sydney Division of Engineers Australia. The award was given for the protection of the natural environment, for conserving engineering heritage and remediating environmental damage.

As from July 2009 complete management of the affairs of the Authority will revert to the NSW Land and Property Management Authority. Discussions are in progress to facilitate the creation of a State Park under the Crown Lands Act that will provide a practical mechanism for ongoing management of the environment restored through the efforts of the Authority over preceding decades. AIMS AND OBJECTIVES OF THE AUTHORITY

The objective of the Authority's activities is to transform an environment previously devastated by poorly managed soil and sand extraction operations into an attractive regional recreational resource with improved ecological values.

The works considered necessary to achieve this transformation include:

The development of a lake system with adequate circulation to maintain water quality and sufficient area and depth to permit use for boating and other recreational activities;

>- The provision of rehabilitated habitats for the preservation of native wildlife;

>- The stabilisation of eroding foreshore areas, the construction of beaches and the provision of public access to lake foreshores via walkways, cycle tracks and roads;

>- The creation of landscaped parks and carparks on the lake foreshores for passive recreation and for sporting and other pursuits;

>- The construction of wharves, boat launching facilities, picnic facilities and amenities.

ADMINISTRATION

The Manager, Coast and Floodplain Programs of the then Department of Environment and Climate Change, Mr Brian Dooley, managed the affa irs of the Authority on behalf of the Minister as his formally appointed delegate.

Administration was conducted from the Wollongong Office of the Department of Environment and Climate Change. From July 2009 the affairs of the Authority will be managed by the Land and Property Management Authority.

The office address of the Chipping Norton Lake Authority is:

State Office Block

Level 3 84 Crown Street WOLLONGONG NSW 2500

(PO Box 867, Wollongong NSW 2520) Telephone No: (02) 4224 9633 Facsimile No: (02) 4224 9651

Business Hours: 8.30 am to 5.00 pm (Monday to Friday)

2 AREAS OF THE DEPARTMENT OF ENVIRONMENT AND CLIMATE CHANGE RELEVANT TO THE CHIPPING NORTON LAKE AUTHORITY GOVERNING ADMINISTRATIVE ARRANGEMENTS For 2008-09

Minister for Lands Han Tony Kelly

By Interim Agreement

Department of Environment and Climate Change (1)

Minister's Delegate Brian Dooley BE, M Eng Sc

Project Manager Natural Resource Officer Scott Renwick r--- Administration Cert Civil Eng Pam Outtrim

Various other Internal and External Resources

(1) Whilst the Minister for Lands retains responsibility for the Authority, discussions between the then Department of Lands and the then Department of Environment and Climate Change identified that the best and most cost effective method of concluding work on Authority projects was to have the same staff who had managed the Authority's affairs since 1995 continue v.ith that role. This recognised that the work of supporting the Authority was significant but did not require dedication of staff resources on a full time basis.

3 IMPROVEMENT WORKS General

Gross pollution entering the Lakes via stormwater systems collects in foreshore vegetation resulting in major impacts on the amenity of the Lake Scheme. Since 2003/04, the Authority has had an agreement with the Georges River Combined Councils Committee (GRCC) and the Department of Corrective Services for the collection and disposal of gross pollution within the Lakes Scheme. Under arrangements agreed with the Authority, the GRCCC Riverkeeper Program coordinated the project utilising participants in the Corrective Services Periodic Detention Program. The Authority provided in-kind support during 2008-09.

During the year the Authority spent $7,000 on hydrographic surveys to monitor changes in river bed levels. The surveys confirmed the creation of the lake scheme has not generated instabilities in the bed of the lakes or the Georges River

Major Works

Liverpool Weir Remediation I nvestigations by the Authority revealed EngineersAustralia SydneyDivision that the Liverpool Weir was under threat of catastrophic failure. The heritage listed ENGINEERING EXCELLENCE weir was built in 1836 by convict iron gangs AWARDS to a design by renowned colonial bridge designer, David Lennox. The weir is one of 2009 the few remaining Colonial engineering :Environment arufJ-{eritage structures of its type of State Heritage 'Exce[Jence Award" 'Presentea to Significance. CliipyingNorton Lake Autliority The Liverpool Weir Remediation Project Joint Xntrant: J\.ntoun Civil'EllBineerinn received the Environment and Heritage LiveryooCWeir'R.emeatatiJJn Excellence Award from the Sydney Division of Engineers Australia for the protection of the natural environment, for conserving our • ProudlySponsoml by engineering heritage and for remediating �s --...... ,.. /' -- environmental damage.

The weir is no longer important for securing a water supply for the settlement of Liverpool or as a river crossing. Under other circumstances significant environmental benefits would be gained from the removal of a weir that no longer serves such purposes.

4 However in the case of Liverpool Weir and aside from its engineering heritage significance, there would be major environmental and associated infrastructure costs if the river upstream of the weir was to be lowered by 3'h metres as a result of weir failure or removal.

The cost for restoring weir integrity, based on tenders received for a conventional design, was of the order of $2.5 million which was well beyond available funds. The actual remediation cost which was incurred through the development of an alternative innovative redesign was reduced to $1 .06 million.

-- -

Liverpool Weir Remediation Design

Works were satisfactorily completed using this revised design. If the weir had failed, the environmental cost to remediate 20 kilometres of exposed riverbed and banks and modify associated infrastructure would have been some $20 million.

The weir ranks high as a civil engineering heritage resource. Replacement with a new structure would have resulted in a significant loss of colonial engineering heritage.

Infrastructure such as the Liverpool Weir Fishway, which was also built by the Authority, and various wharves and stormwater outlets would need to have been modified or lowered by up to 3.5 metres to accommodate a new water level. There would be a loss of more than 5 kilometres of recreational waterway in western Sydney.

5 The weir displays the progression of engineering construction methodology and materials used in the various additions and repairs made to the weir by successive generations since 1836. The recording of the historic fabric undertaken during remediation has provided a greater understanding of colonial engineering.

liverpool Weir Following Remediation December 2008

Overall, the Authority spent $1 ,567,000 on investigation, design, tendering, heritage recording, remediation, landscaping, weed management and other minor works on the Liverpool Weir.

Dowling Beach Development

The Development of Dowling Beach was delayed during 2008-09 while negotiations with Fairfield City Council were continued and designs and cost estimates were completed. The availability of funding was confirmed once the full cost of the Liverpool Weir Remediation Project was established.

During 2008-09 the Authority and Fairfield City Council entered into an agreement whereby Council is to complete the Dowling Beach Development as agent for the Authority during 2009-10. Fairfield City Council will provide construction supervision at no cost to the Authority as its contribution to the project. The Authority has allocated up to $297,000 in the coming year for Dowling Beach Development.

Other Project Related Expenses

Other project related expenses totalling $29,000 were spent during 2008-09 on, preparing management plans, designs, reports, tender documents, licences and supervision.

6 OTHER ACTIVITIES OF THE AUTHORITY Land Divestment

Land held under Authority title includes the bed of the Georges River and Lakes within the Scheme boundary.

The Authority has also previously purchased private land, spending over $3.9 million to date. No land purchase was made during 2008/2009.

Once restored, the administration of individual parcels of land is transferred by gazettal to the Department of Lands (now land and Property Management Authority) at no charge. Details of parcels of land that have been or are proposed to be divested to the Minister for Lands are listed in Appendix A.

The Minister for Lands has appointed Fairfield City Council, Bankstown City Council and Liverpool City Council as trustees of divested public lands within their respective areas.

The names given to various developments in the Chipping Norton Lake Scheme are selected with regard to the history of the area and are listed at Appendix B. Names selected are generally those of the early 19th century settlers, eminent people associated with the area and names of Aboriginal origin.

Leases and Licences

The Authority administered management of extraction and filling operations for the rehabilitation of the Heron and Hollywood Park sites under lease agreements which commenced in May 1993.

Commercial operations under the Authority's control on these sites included sand extraction and the receipt of fill for rehabilitation both of which ended prior to 2008-09.

Rock for riverbank stabilisation works within the scheme was sourced from the Sandy Point Quarry which was operated by the Authority under lease from the Department of Lands. During the year the Authority also produced rock for the Liverpool Weir Remediation.

Community Access

Sections of the Scheme are progressively made available to the public as they are completed. The lake waterway is open for recreational use. Various boating groups, including the Harrington Park Radio Yacht Club, Liverpool Boating Association, University of Western Sydney, Westfield Sports High School, Naval Cadets from Nuship Kanimbla and Sailability, utilise the Lakes for sailing, canoeing and rowing. "The Boatshed" at Angle Park, provides a venue for

7 regular functions which are conducted on the lake in association with the sport of sailing. Additional boating access for rowing sculls at Wharf Road, Lansvale is also available.

Boat ramp facilities including trailer parking and beach access arising from the construction of Dowling Beach on Floyd Bay will be fully developed in the coming year.

P'1.OYD B"V

Dowling Beach Development

Community Support and Partnerships

The partnership arrangement for the removal of gross pollution over an indefinite term was continued between the Authority and the Georges River Combined Councils Committee (GRCCC).

The Georges Riverkeeper continues to coordinate a work force of Periodic Detainees under the supervision of Corrective Services Officers to remove pollution. The relevant local council disposes of the pollution at no cost to the program.

The Georges River Environmental Education Centre operates out of Central Avenue Chipping Norton. The centre offersprograms and activities to supportteachers and school students (K-12) as well as providing assistance to TAFE and university students studying Education for Environmental Sustainability. The Authority has supported the Centre with resources including historical flood records, aerial images, monitoring equipment and models of the lake scheme.

8

Chipping Norton Lake Authority

Financial Report

For the financial year ended 30 June 2009

Financial Report Contents

Statement by Minister 2

Independent Auditor's Report 3-4

Income Statement 5

Statement of Recognised Income and Expense 6

Balance Sheet 7

Cash Flow Statement 8

Notes to and forming part of the financial report 9-19

Chipping Norton Lake Authority

STATEMENT BY MINISTER

Certificate under Section 41 C (1B) and (1C) of the Public Finance and Audit Act 1983

Pursuant to the Public Finance and Audit Act, 1983, I declare that in my opinion:

(a) The accompanying financial report exhibits a true and fair view of the financial position of the Chipping Norton Lake Authority as at 30 June 2009, and transactions for the year ended.

(b) The financial report has been prepared in accordance with:

• The applicable Australian Accounting Standards, which include Australian Accounting Interpretations; and

• The requirements of the Public Finance and Audit Act 1983, the Public Finance and Audit Regulation 2005 and the Treasurer's Directions.

(c) There are no circumstances which would render any particulars included in the financial report to be misleading or inaccurate.

Minister for Lands

Dated: 19 October 2009

2

GPO BOX 12 Sydney NSW 2001

INDEPENDENT AUDITOR'S REPORT

Chipping Norton Lake Authority

To Members of the New South Wales Parliament

I have audited the accompanying financial report of the Chipping Norton Lake Authority (the Authority), which comprises the balance sheet as at 30 June 2009, the income statement, statement of recognised income and expense and cash flow statement for the year then ended, a summary of significant accounting policies and other explanatory notes.

Auditor's Opinion

In my opinion, the financial report:

• presents fairly, in all material respects, the financial position of the Authority as at 30 June 2009, and its financial performance for the year then ended in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations)

• is in accordance with section 41 B of the Public Finance and Audit Act 1983 (the PFftA Act) and the Public Finance and Audit Regulation 2005.

My opinion should be read in conjunction with the rest of this report.

The Minister's Responsibility for the Financial Report

The Minister for Lands is responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the PFftA Act. 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; and making accounting estimates that are reasonable in the circumstances.

Auditor's Responsibility

My responsibility is to express an opinion on the financial report based on my audit. I conducted my audit in accordance with Australian Auditing Standards. These Auditing Standards require that I comply with relevant ethical requirements relating to audit engagements and plan and perform the audit 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 procedures selected depend on the auditor's 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, the auditor considers internal controls relevant to the Authority'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 Authority's internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Minister for Lands, as well as evaluating the overall presentation of the financial report. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

My opinion does not provide assurance:

• about the future viability of the Authority, • that it has carried out its activities effectively, efficiently and economically, or • about the effectiveness of its internal controls.

Independence

In conducting this audit, the Audit Office of New South Wales has complied with the independence requirements of the Australian Auditing Standards and other relevant ethical requirements. The PFfrA Act further promotes independence by:

• providing that only Parliament, and not the executive government, can remove an Auditor·General, and

• mandating the Auditor·General as auditor of public sector agencies but precluding the provision of non·audit services, thus ensuring the Auditor·General and the Audit Office of New South Wales are not compromised in their role by the possibility of losing clients or income.

Peter Achterstraat Auditor·General

20 October 2009 SYDNEY Chipping Norton Lake Authority Start of audited fi nancial report

Income Statement for the year ended 30 June 2009

2009 2008 $'000 $'000 NOTE Revenue Revenue 3 68 384 Other income 4 315 153 Total revenue 383 537

Expenses Project expenses 1,670 416 Other operating expenses 60 107 Total expenses 5 1,730 523

(1,347) 14 SURPLUS/(DEFICIT) FOR THE YEAR

The above income statement is to be read in conjunction with the attached notes

5 Chipping Norton Lake Authority

Statement of Recognised Income and Expense for the year ended 30 June 2009

2009 2008 NOTE $'000 $'000

Surplus/(deficit) for the year (1,347) 14

TOTAL INCOME AND EXPENSE (1,347) 14 RECOGNISED FOR THE YEAR

The above statement of recognised income and expense is to be read in conjunction with the attached notes

6 Chipping Norton Lake Authority

Balance Sheet as at 30 June 2009

NOTE 2009 2008 $'000 $'000 Current assets Cash and cash equivalents 6 401 1,784 Receivables 7 2 25 Total current assets 403 1,809

Total assets 403 1,809

Current liabilities Payables 8 17 76 Total Current Liabilities 17 76

Total liabilities 17 76

Net assets 386 1,733

Equity Retained surplus 9 386 1,733 Total equity 386 1,733

The above balance sheet is to be read in conjunction with the attached notes

7 Chipping Norton Lake Authority

Cash Flow Statement for the year ended 30 June 2009

NOTE 2009 2008 $'000 $'000 Cash flows from operating activities

Receipts from customers & government 281 804 Payments to suppliers (1,723) (636) Interest received 59 149 Net cash flows from operating activities 10 (1,383) 317

Net increase/(decrease) in cash and cash equivalents (1,383) 317 Cash at the beginning of the financial year 1,784 1,467 Cash and cash equivalents at the end of the year 6 401 1,784

The above cash flowstatement is to be read in conjunction with the attached notes

8 Chipping Norton Lake Authority

Notes to and forming part of the financial report for the year ended 30 June 2009

NOTE 1 - REPORTING ENTITY

The Chipping Norton Lake Authority (the Authority) was established pursuant to the "Chipping Norton Lake Authority Act 1977 No 38", and the responsibility for its administration was vested in the Minister for Lands by Public Sector Employment and Management Order under the Public Sector Employment and Management act 2002 signed by the Premier on 10th August 2005.

Section 6 - Schedule 2 of the Act, defines development works carried out by the Authority:

Establishment of a lake and recreation grounds and works incidental thereto including:

(a) extraction and removal of sand and other material, (b) removal, construction, reconstruction or relocation of lands, islands, roads, services, buildings, structures, wharves, jetties, beaches, protective works and other works or materials, and (c) works for the protection of the environment

The Authority primarily operates in New South Wales, Australia. The office is located at 84 Crown Street Wollongong, NSW 2500.

The Authority is a Statutory Body and a separate reporting entity. There are no other entities under its control.

The Authority is a not-for-profit entity (as profit is not its principal objective) and it has no cash­ generating units.

The Authority's activities are near finalisation, with substantial achievements to objectives. Consideration is still being given to ceasing activity and winding up the Authority.

This financial report was authorised for issue by the Minister on the date on which the accompanying Statement was signed.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of preparation

The Authority's financial report is ageneral purpose financial report which has been prepared in accordance with:

• The applicable Australian Accounting Standards, which include Australian Accounting Interpretations; • The requirements of the Public Finance and Audit Act 1983; and • The Public Finance and Audit Regulation 2005 and the Treasurer's Directions.

All amounts are rounded to the nearest one thousand dollars and are expressed in Australian currency.

9 Chipping Norton Lake Authority

Notes to and forming part of the financial report for the year ended 30 June 2009

(b) Statement of compliance

The financial report and notes comply with the Australian Accounting Standards, which include Australian Accounting Interpretations.

(c) Significant accounting judgements, estimates and assumptions

(i) Significant accounting judgement

In the preparation of the financial statements, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements. Actual results may vary from these estimates.

Key judgements are disclosed as partof accounting policies notes.

(ii) Significant accounting estimates and assumptions

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Judgements made by management in the application of the Australian Accounting Standards that have significant effects on the financial statements and estimates, with a significant risk of material adjustments in the next year are disclosed, where applicable, in the relevant notes to the financial statements.

(d) Revenue recognition

Revenue is measured at the fair value of the consideration or contribution received or receivable. Additional comments regarding the accounting policies for the recognition of revenue are discussed below:

(i) Contributions from Government and other bodies are generally recognised as income when the Authority obtains control over the assets comprising the contributions. Control over contributions is normally obtained upon the receipt of cash.

(ii) Sale of Goods: Revenue from the sale of goods is recognised as revenue when the Authority transfers the significant risks and rewards of ownership of the assets.

(iii) Rendering of Services: Revenue is recognised when the service is provided or by reference to the stage of completion (based on labour hours incurred to date).

(iv) Investment Income: Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement.

(v) Rental Revenue: Rental revenue is recognised in accordance with AASB 117 Leases on a straight-line basis over the lease term.

(e) Employee benefits and other provisions

(i) Salaries & wages, annual leave, sick leave and on-costs

10 Chipping Norton Lake Authority

Notes to and forming part of the financial report for the year ended 30 June 2009

The Authority does not employ staff but utilises the personnel services of Department of Environment and Climate Change (DECC). The Authority has no employee obligations under this arrangement.

(ii) Other provisions

Other provisions exist when: • the Authority has a present legal or constructive obligation as a result of a past event; • it is probable that an outflow of resources will be required to settle the obligation; and • a reliable estimate can be made of the amount of the obligation.

If the effect of the time value of money is material, provisions are discounted at a pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the liability.

(f) Insurance

The Authority's activities are insured through the NSW Treasury Managed Fund scheme of self insurance for Government agencies. The premium expense is determined by the Liability Fund Manager based on past experience and the insurance coverage is reviewed periodically to ensure that it is adequate.

(g) Accounting for the goods and services tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except:

• The amount of GST incurred by the Authority as a purchaser that is not recoverable from the Australian Taxation Office is recognised as part of the cost of acquisition of an asset or as part of an item of expense. • Receivables and payables are stated with the amount of GST included.

Cash flows are included in the cash flow statement on a gross basis. However, the GST components of cash flows arising from investing and financing activities which is recoverable from, or payable to, the Australian Taxation Office are classified as operating cash flows.

(h) Maintenance

The day-to-day servicing or maintenance costs are charged as expenses as incurred.

(i) Receivables

Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. These financial assets are recognised initially at fair value, usually based on the transaction cost or face value. Subsequent measurement is at amortised cost using the effective interest method, less an allowance for any impairment of receivables. Any changes are accounted for in the Income Statement when impaired, derecognised or through the amortisation process.

Short term receivables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial.

Terms and conditions - Accounts are generally issued on 30 day terms.

11 Chipping Norton Lake Authority

Notes to and forming part of the financial report for the year ended 30 June 2009

Payables

These amounts represent liabilities for goods and services provided to the Authority and other amounts, including interest. Payables are recognised initially at fair value, usually based on the transaction cost or face value. Subsequent measurement is at amortised cost using the effective interest method. Short-term payables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial.

Ul Comparative information

Except where an Australian Accounting Standard permits or requires otherwise, comparative information is disclosed in respect of the previous period for all amounts reported in the financial statements.

(k) In-kind contributions

In-kind contributions are recorded as revenue and expense in the Income Statement at fair value.

(I) New Australian accounting standards issue

Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2009 reporting period. In accordance with the NSW Treasury mandate (TC 09/03), the Authority did not early adopt any of these accounting standards and interpretations that are not yet effective.

It is considered that the impact of these new standards and interpretations in future years will have no material impact on the financial statements of the Authority.

12 Chipping Norton Lake Authority

Notes to and forming part of the financial report for the year ended 30 June 2009

NOTE 3 - REVENUE 2009 2008 $'000 $'000 Contributions received from: Contributions - in cash 2 300 Contributions - in kind (i) 66 84 68 384

(i) In kind contributions are provided by the Department of Environment and Climate Change NSW for accounting, management and engineering services.

NOTE 4 - OTHER INCOME Interest 59 121 Other 256 32 315 153

NOTE 5 - EXPENSES 2009 2008 $'000 $'000 Other operating expenses External audit fees (i) 8 7 In kind work undertaken 66 84 Fees for service 1,297 97 Stores, materials and minor equipment 193 65

Plant I vehicle expenses 23 209 Contract services 115 37 Insurance 19 18 Accommodation and related expenses 2 5

Other 7 1 Total 1,730 523

(i) Audit fees cover auditing of the financial report by the Audit Office of New South Wales. The auditors received no other benefits.

13 Chipping Norton Lake Authority

Notes to and forming part of the financial report for the year ended 30 June 2009

2009 2008 NOTE 5 - PROJECT EXPENSES $'000 $'000

Chipping Norton Lake 7 127 Howard Park 54 Heron Park 1 39 Hollywood Park 5 Liverpool Weir 1,567 2 Sandy Point Quarry - sawn rock 189 Other project related cost 95 Total 1,670 416 Administration 60 107 Total 1,730 523

NOTE 6 - CURRENT ASSETS - CASH AND CASH EQUIVALENTS 2009 2008 Current assets - Cash and Cash equivalents $'000 $'000 Cash at bank and on hand 401 1,784 Also refer Note 13 (a) - Financial Instruments 401 1,784

NOTE 7 - CURRENT ASSETS - RECEIVABLES 2009 2008 $'000 $'000 Accounts receivable 25

Goods & services tax recoverable 2

Also refer Note 13 (a) - Financial Instruments 2 25

NOTE 8 - CURRENT LIABILITIES - PAYABLES 2009 2008 $'000 $'000 Accrued expenses 17 56 Security deposit 20 Also refer Note 13 (a) - Financial Instruments 17 76

14 Chipping Norton Lake Authority

Notes to and forming part of the financial report for the year ended 30 June 2009

NOTE 9 - CHANGES IN EQUITY

Reta ined Surplus Total equity 2009 2008 2009 2008 $'000 $'000 $'000 $'000 Balance at the beginning 1,733 1,719 1,733 1,719 of the financial year Surplus! (deficit) for the year (1 ,347) 14 (1,347) 14 Balance at the end of the 386 1,733 386 1,733 financial year

NOTE 10 - NOTES TO THE CASH FLOW STATEMENT

(a) Cash

For the purpose of the Cash Flow Statement, cash includes cash on hand and in banks.

Cash at the end of the financial year as shown in the Cash Flow Statement is reconciled to the Balance Sheet in Note 6.

(b) Reconciliation of surplus/(deficit) for the year to net cash flows from operating activities 2009 2008 $'000 $'000 Surplus! (deficit) for the year (1,347) 14 (Increase) / decrease in receivables 23 479 Increase! (decrease) in payables (59) (176) Net cash flows from operating activities (1,383) 317

NOTE 11 - COMMITMENTS FOR EXPENDITURE 2009 2008 $'000 $'000 (a) Other expenditure commitments Not later than 1 year 272 Total (including GST) 272

Commitments relate to work to be carried out on the Dowling beach development and Rowley's point road upgrade projects.

(b) Operating lease commitments

The Authority did not have any operating lease payable commitments at balance date.

(c) Finance Lease Payable Commitments

The Authority did not have any finance lease payable commitments at balance date.

15 Chipping Norton Lake Authority

Notes to and forming part of the financial report for the year ended 30 June 2009

NOTE 12 - CONTINGENT LIABILITIES/ASSETS

The Authority is not aware of any material contingent liability (2008- nil). Apart from the amounts disclosed in Note 13, there are no known contingent assets at balance date.

NOTE 13 - FINANCIAL INSTRUMENTS

The Authority's principal financial instruments are outlined below. These financial instruments arise directly from the Authority's operations or are required to finance the Authority's operations. The Authority does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

The Authority's main risks arising from financial instruments are outlined below, together with the Authority's objectives, policies and processes for measuring and managing risk. Further quantitative and qualitative disclosures are included throughout this financial report.

The Authority's Minister has overall responsibility for the establishment and oversight of risk management and reviews and agrees policies for managing each of these risks. Risk management policies are established to identify and analyse the risks faced by the Authority, to set risk limits and controls and to monitor risks. Compliance with policies is reviewed by the Authority's Minister on a continuous basis.

(a) Financial instrument categories

Financial Assets Note Category Carrying Carrying Amount Amount

Class: 2009 2008

$'000 $'000

Cash and cash 6 N/A 401 1,784 equivalents l Receivables 7 Loans and receivables (at 2 25 amortised cost)

Financial Note Category Carrying Carrying Liabilities Amount Amount

Class: 2009 2008

$'000 $'000 2 Payables 8 Financial liabilities 17 76 measured at amortised cost

Noles I.Excludes statutory receivables and prepayments (i.e. not within scope of AASB 7). 2.Excludes unearned revenue (i.e. not within scope of AASB 7).

(b) Credit risk

Credit risk arises when there is the possibility of the Authority's debtors defaulting on their contractual obligations, resulting in a financial loss to the Authority. The maximum exposure to credit risk is generally represented by the carrying amount of the financial assets (net of any allowance for impairment). Credit risk arises from the financial assets of the Authority, including cash, receivables and Authority deposits. No collateral is held by the Authority. The Authority has not granted any financial guarantees. Credit risk associated with the Authority's financial assets, other than receivables, is managed

16 Chipping Norton Lake Authority

Notes to and forming part of the financial report for the year ended 30 June 2009

through the selection of counterparties and establishment of minimum credit rating standards.

(i) Cash and cash equivalents

Cash comprises cash on hand and in banks.

(ii) Receivables - trade debtors

All trade debtors are recognised as amounts receivable at balance date. Collectibility of trade debtors is reviewed on an ongoing basis. Procedures as established in the Treasurer's Directions are followed to recover outstanding amounts, including letters of demand. Debts which are known to be uncollectible are written off. An allowance for impairment is raised when there is objective evidence that the entity will not be able to collect all amounts due. This evidence includes past experience, and current and expected changes in economic conditions and debtor credit ratings. No interest is earned on trade debtors.

The credit risk is the carrying amount (net of any allowance for impairment). The carrying amount approximates net fair value. Sales are made on 30 day terms.

Total Past due but not Considered impaired ($'000) im paired ($'000) ($'000)

2009

< 3 months overdue 2 - -

3 months - 6 months overdue - - -

> 6 months overdue - - -

2008

< 3 months overdue 25 - -

3 months - 6 months overdue - - -

> 6 months overdue - - -

The ageing analysis excludes statutory receivables, as these are not within the scope of AASB7.

(e) Liquidity risk

Liquidity risk is the risk that the Authority will be unable to meet its payment obligations when they fall due. The Authority continuously manages risk through monitoring future cash flows and maturities planning to ensure adequate holding of high quality liquid assets. The objective is to maintain a balance between continuity of funding and flexibility through the use of overdrafts, loans and other advances.

During the current and prior years, there were no defaults or breaches on any payables. No assets have been pledged as collateral. The Authority's exposure to liquidity risk is deemed insignificant based on prior periods' data and current assessment of risk.

The liabilities are recognised for amounts due to be paid in the future for goods or services received, whether or not invoiced. Amounts owing to suppliers (which are. unsecured) are settled in accordance with the policy set out in Treasurer's Direction 219.01. If trade terms are not specified, payment is made no later than the end of the month following the month in which an invoice or a statement is received. Treasurer's

17 Chipping Norton Lake Authority

Notes to and forming part of the financial reportfor the year ended 30 June 2009

Direction 219.01 allows the Minister to award interest for late payment. The rate of interest applied during the year was [Nil]% (2008 : [Nil]%).

The table below summarises the maturity profile of the Authority's financial liabilities, together with the interest rate exposure.

Maturity analysis and interest rate exposure of financial assets and liabilities

Fixed Intcrest Rate Maturities

Weighted Floating 1 year I to 5 More Non Total average Interest or less Years Than 5 Interest Carrying effective Rate Years Bearing amount Interest Maturities 1 yr or less as per the Rate Balance Sheet

$000 $000 $000 $000 $000 $000

30 June 2009 Fillallcial Assets

Cash 4.57% 401 40 1 Receivables N/A 2 2 To tal Fillallcial 401 2 403 Assets I I I

Fillallcial Liabilities ----- I - ! Payables N/A 17 17

To tal Fillallcial - 17 17 Liabilities I I I I Fixed Interest Rate Maturities

Weighted Floating I year I to 5 More Non Total average Interest or less Years Than 5 Interest Carrying effective Rate Years Bearing amount Interest Maturities 1 yr or less as per the Rate Balance Sheet $000 $000 $000 $000 $000 $000

30 June 2008 FillallcialAssets Cash 6.9% 1,784 I I 1,784 Receivables N/A 25 25 Total Fillallcial 1,784 25 1,809 Assets I I I Fillallcial Liabilities I I Payables N/A - I 76 I 76

To tal Fillallcial - 76 76 Liabilities I I I

(d) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The Authority's exposure to market risk is minimal as it has no borrowings and has no investments in NSW Treasury Corporation hour glass facilities. The Authority has no exposure to foreign currency risk and does not enter into commodity contracts.

18 Chipping Norton Lake Authority

Notes to and forming part of the financial report for the year ended 30 June 2009

The effect on profit and equity due to a reasonably possible change in risk variable is outlined in the information below, for interest rate risk and other price risk. A reasonably possible change in risk variable has been determined after taking into account the economic environment in which the Authority operates and the time frame for the assessment (i.e. until the end of the next annual reporting period). The sensitivity analysis is based on risk exposures in existence at the balance sheet date. The analysis is performed on the same basis for 2008. The analysis assumes that all other variables remain constant.

(e) Interest rate risk

As the Authority has no interest bearing liabilities its exposure to interest rate risk is minimal. The Authority does not account for any fixed rate financial instruments at fair value through profit or loss or as available for sale. Therefore for these financial instruments a change in interest rates would not affect profit or loss or equity.

(f) Fair Value

The amortised cost of financial instruments recognised in the balance sheet approximates the fair value, because of the short term nature of the financial instruments.

NOTE 14 - AFTER BALANCE DATE EVENTS

There are no significant events subsequent to balance sheet date .

End of audited financial report

19

APPENDIX A LAND MANAGEMENT AND DIVESTMENT

Sites owned and occupied by the Chipping Norton Lake Authority

Town/Suburb Area(ha) Local Govt Area Current Use Chipping Norton 121.37 Liverpool City Waterway Lakes Development Lansvale 37.46 Fairfield City Waterway Lakes Development Moorebank 38.36 Liverpool City Waterway Lakes Development TOTAL 197.19

The sites listed above comprises the bed of the Georges River and Chipping Norton Lake.

There were no lands divested in 2008/2009

Propo sed Lands for Divestment during 2009/2010

Town/Suburb Area(ha) Local Govt Area Current Use Chipping Norton 121.37 Liverpool City Waterway Lakes Development Lansvale 37.46 Fairfield City Waterway Lakes Development Moorebank 38.36 Liverpool City Waterway Lakes Development TOTAL 197.19 Lands divested to the Crown to 30/6/2009

Town/Suburb Area(ha) Local Govt Area Current Use

Georges Hall 4.43 Bankstown City Garrison Point Beatty Reserve Kentucky Reserve Rabaul Road Lansvale 12.88 Fairfield City Cherrybrook Park Hoy Park Lakeside Walk Lansvale 0.40 FairfieldCity Eora Beach Chipping Norton 0.15 Liverpool City Norton Avenue Chipping Norton 12.76 Liverpool City South Park Lansvale 5.10 Fairfield City Strong Park Chipping Norton 4.00 Liverpool City Bulba-Gong Island Chipping Norton 11.15 Liverpool City Chauvel Park Chipping Norton 8.90 Liverpool City Angle Park (Part) Chipping Norton 14.47 Liverpool City Black Muscat Park Moorebank 8.37 Liverpool City Haigh Park (Part) Lansvale 4.09 Fairfield City Rowley park (Part) Willow Park Chipping Norton 3.52 Liverpool City Homestead Park (Part) Chipping Norton 1.21 Liverpool City Grand Flaneur Beach (Part) Chipping Norton 0.55 Liverpool City Westlake Point Chipping Norton 0.30 Liverpool City Agnes Healy Beach Lansvale 10.24 Fairfield City Howard Park Lansvale 14.70 Fairfield City Hollywood Park and Coot Island Chipping Norton 21.71 Liverpool City Heron Park Moorebank 2.40 Liverpool City Lake Moore Wetlands (Part) Chipping Norton 4.04 Liverpool City Homestead Park (Part) Chipping Norton 3.37 Liverpool City Thomas Moore Park Moorebank 0.75 Liverpool City Gandangara Island Moorebank 0.38 Liverpool City Ngamba Island Moorebank 0.20 Liverpool City Ngaku Island Chipping Norton 0.54 Liverpool City Daruk Island Chipping Norton 0.53 Liverpool City Grand Flaneur Beach (Part) Chipping Norton 0.80 Liverpool City Long Point Moorebank 5.20 Liverpool City Lake Moore Wetland (Part) Moorebank 0.20 Liverpool City Haigh Park Beach Chipping Norton 1.13 Liverpool City Angle Park (Part) TOTAL 158.47 APPENDIX B CHIPPING NORTON LAKE SCHEME GEOGRAPHICAL NAMES

No. Geographical Suburb Council Origin of Name on Name Assigned Plan

1 Cherrybrook Lansvale Fairfield Pre-existing name 2 Lakeside Walk Lansvale Fairfield Description of Development 3 Bulba-Gong Chipping Norton Liverpool Aboriginal name derived from "Bulba": Island & "Gong" bird 4 Strong Park Lansvale Fairfield W.M. Strong Grantee 1800 5 Hollywood Park Lansvale Fairfield Pre-existing name 6 Heron Park Chipping Norton Liverpool Bird of the area 7 Black Muscat Park Chipping Norton Liverpool Grape variety grown on area's farms 8 Homestead Park Chipping Norton Liverpool Brick and stone Homestead built by the Hon. William Long MLC in the 1800's 9 Angle Park Chipping Norton Liverpool James Angle Brickmaker and Grantee 1799 10 South Park Chipping Norton Liverpool Formerly Chippendale could be confused with suburb of same name 11 Bulba-Dibeen Moorebank Liverpool Aboriginal name derived from "Bulba" Island and "Dibeen" flock of birds 12 Thomas Moore Moorebank Liverpool Thomas Moore Shipbuilder and Grantee 1805. Liverpool Magistrate 1815 13 Haigh Park Moorebank Liverpool Louis Haigh former Mayor of Liverpool 1880 14 Chauvel Park Moorebank Liverpool Charles and Elsa Chauvel, Pioneer Australian film makers 15 Grand Flaneur Chipping Norton Liverpool Champion racehorse trained at this location. Won Melbourne Cup 1880 16 Rowley Park Lansvale Fairfield Thomas Rowley, Grantee 1798 17 Chipping Norton Chipping Norton Liverpool Name chosen by the Hon. W. Long Lake in 1880's 18 Lake Moore Moorebank Liverpool Thomas Moore, Grantee 1805 19 Hoy Park Lansvale Fairfield Timothy Hoy Brickmaker long term resident arrived in NSW in 1808 APPENDIX B Continued

No. Geographical Suburb Council Origin of Name on Name Assigned Plan 20 Howard Park Lansvale Fairfield Adjacent to Howard Street 21 Floyd Bay Lansvale Fairfield Cyril D. Floyd former Principal Engineer, Public Works 22 Dhurawal Bay Chipping Norton Liverpool Aboriginal tribal name 23 Willow Park Lansvale Fairfield Adjacent to Willow Close 24 Daruk Island Chipping Norton Liverpool Aboriginal tribal name 25 Long Point Chipping Norton Liverpool Early landowner William Long 26 Eora Beach Lansvale Fairfield Aboriginal tribal name 27 Coot Island Chipping Norton Liverpool Native bird common in area 28 Crescent Island Lansvale Fairfield Based on shape of island 29 Bass Island Cabramatta Fairfield Fish in the area 30 Gandangara Island Moorebank Liverpool Aboriginal tribal name 31 Ngamba Island Moorebank Liverpool Aboriginal tribal name 32 Ngaku Island Moorebank Liverpool Aboriginal tribal name 33 Westlake Point Chipping Norton Liverpool Wal Westlake, past Legal Officer, Assistant Director of Public Works 34 Ascot Point Chipping Norton Liverpool Close to Ascot Drive 35 Beatty Point Georges Hall Bankstown Admiral Sir David Beatty, Royal Navy, Lord of the Admiralty (1871-1936) 36 Lawrence Beach Chipping Norton Liverpool Original landowner in the area 37 Agnes Healey Chipping Norton Liverpool Nurse Agnes Healey, Pioneer of Beach Liverpool 38 Backwater Beach Moorebank Liverpool Local feature 39 Haigh Beach see Haigh Park 40 Angle Park Boat see Angle Park Ramp 41 Bradbury Wharf Cabramatta Fairfield Boatshed owner in the 1930's 42 Dowling Beach Lansvale Fairfield Mrs Dowling, pioneer of the area 43 Pod more Beach Lansvale Fairfield Nurse Podmore lived in the area 44 Shearer Park Lansvale Fairfield Mrs E. Shearer, Community Worker in this area 45 Howards Boat Cabramatta Fairfield Refreshment Rooms owner adjacent Ramp Lansdowne Bridge in 1930's APPENDIX C

Provisional Budget 2009/2010 and Comparative Budget with Actual for 2008/2009 (Excludes any prior year accounting adjustments)

budget Actual budget 2009/2010 2008/2009 2008/2009 Notes INCOME $'000 $'000 $'000 1 N.S.W. Government Grant o o o 2 DECC 50 66 85 3 Interest 5 59 70 4 Miscellaneous Receipts 24 258 50 Total 79 383 205

DEVELOPMENT AND OTHER EXPENDITURE 2 Administration and Management Services 50 66 85 5 Audit, Insurance, Vehicle Accommodation 32 60 28 6 Chipping Norton Lake 0 7 5 7 Heron Park 0 1 0 8 Dowling Beach Development 297 0 424 9 Liverpool Weir Remediation 15 1567 1425 10 Other Proje ct related costs 20 29 Total 414 1730 1967

NET SURPLUS/(DEFICIT) (335) (1347) (1762)

Notes: 1. There were no Grants made to the Authority for the year 2. Contribution by the Department of Environment and Climate Change for accounting, management and engineering services provided free of charge is accounted as revenue and expense in the financial report. 3. Interest received on cash at bank. 4. Miscellaneous Receipts included insurance payout for storm damage to Liverpool Weir $208,000, income from rock sales and lease fees from Sandy Point Quarry. 5. Auditing, motor fleet, insurance costs and accommodation expenses. 6. Hydrographic survey of Lake Scheme and Georges River. 7. Signage and minor cleanup. Heron Park now administered by Liverpool City Council. 8. Access works in the form of boat ramp and car parking re-programmed for 2009/2010. 9. Remediation completed. Original design and tendering fees unbilled in previous year accounted. Works included new cut-off wall, repair or replacement of surface flagging and scour protection. Budget 2009-10 for finalisation of Heritage recording and reporting, signage and minor works contingency. 10. Expenditure includes cost of environmental and safety management, preparation of programs, reports, tender documents, rates, licence fees, supervision and finalising projects.

A, 1 Cherrybrook Pari< � 2 Lakeside Walk 11 3 Bulba·Gong 4 Strong Park s � 5 Hollywood Pari< 6 Heron Park 7 Black Muscat Park o 0.5 1km 8 Homestead Park 9 Angle Park 10 Sooth Park \ \' � ", 11 Bulba-Oibeen Key . "L 12 Thomas Moore Park ''''(- ���.:a" 13 Haigh Park Nonon la);e 4Y'"'-- m , ChIpping AoIhority / "" �t�� , ,..:' ,e bculdary(M dellnedby theAct) -�- 14 Chauv,l Park ..: � fD �, . " _ , fll _ _ 15 Grand Flaneur Beach NortonLake Sc::hemo -;.�' -. 0 '(. . . Chipping ' Rowley Park ...... " . <, ''''''-';:'-�A �. \ 1,�() \\ 16 . :s.W ' �.,' . ' . ail Chipping Norton Lake " - - l . CD " . .. 17 - 6]i ,.� , "-' " ' ... """" " fD . . v" .. - " . . ." , ' '. fD" . . � 18 Lake Moore _\ ", I ' Chippillg ke : ___ 0 ,· ·· ... � , . 0 Nort(mLa _" • , Hoy Park I • • 19 ' "0(." • ,, � ��i II) -';�.,/' ED.... " ;" � 25 Long Point •• ... � 0 1 I :0 26 Eora Beach Warwick Fam/ ... 27 Coot Island Racecourse • ; ' - - > : .: Crescent Island - .:'::.,..... 28 .: : ... Bass Island • I<.i" . fD 29 . . III " ' : � .... . 30 Gandangara Island \ , .. '. \. : 31 Ngamba I�and i ' DrIVe "Ii , : • \ • ' ___: O 32 Ngaku Island 1 'b k 33 WesUake Point :!O' : ': "' ;.\ " 34 Ascot Point ....· ./l 'r � , __ , _'- s · , 35 Beatty Reserve \\ " f , \., 36 lawrence Beach 37 Agnes Healey Beach " �.. :, Chipping Norton ...... ) ' / City of Liverpool 38 Backwater Beach ....; ....-� �.=.:� 39 Haigh Beach �--- - w��� r,,' 40 Angle Park Boat Ramp " - . "- . . - . ... /--''�'------'1:;[ ...''lJ., . , .... Bradbury Wharf <'; -. . I 41 :-- • .. ---Pl.�... � ,... ' $ ,;" '__ _ "' ; . __ 42 Dowling Beach Boat Ramp eTii. • t . �fD .at Podmore Beach " ( "il>C·': '''""P (!) .' , 43 \ '' .; :':': ';·; ' � 44 Shearer Park n.<'o'/;� ., .:, �. '"1 ' A 45 Howards Boat Ramp 'N� "" I!!t., .£ " ;;: '" «..� 46 Shearer Pari 49 Lake Moore Bird Watching Tower -'-

CIDPPING NORTON LAKE SCHEME

AERIAL PHOTOGRAPHS PRE AND CURRENT CHIPPING NORTON LAKE AUTHORITY

Unplanned Extraction Pre Lake Authority - November 1976

Chipping Norton Main Lake - June 2004 LIVERPOOL WEIR 1890

CHIPPING NORTON LAKE AUTHORITY

State Government Office Block Level 3, 84 Crown Street Wollongong NSW 2500

PO Box 867 Wollongong NSW 2520

Telephone 02 4224 9633 Facsimile 02 4224 9651

This report was produced in house with copies printed as required