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Falls Creek Alpine Resort Management Board 2017 Annual

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Falls Creek Alpine Resort Management Board 2017 Annual ANNUAL REPORT 2017 FALLS CREEK ALPINE RESORT MANAGEMENT BOARD 2 • SECTION 1: YEAR IN REVIEW Contents Letter to the Minister 2 FINANCIAL STATEMENTS How the 2017 Financial Statements are Structured 32 Chair’s Report 4 Declaration and Auditor’s Report CEO's Report 6 Declaration by the Board Chair and Accountable Officers 33 Independent Auditor’s Report 34 Resort Profile 8 Financial Statements Vision, Mission and Principles 9 Comprehensive Operating Statement 36 Balance Sheet 37 Year at a glance 10 Cash Flow Statement 38 Statement of Changes in Equity 39 Enhancing the Visitor Experience Notes to the Financial Statements and Building Partnerships 12 1. About this Report 40 The basis on which the financial statements Developing the Resort and have been prepared and compliance with Broadening Access Opportunities 14 reporting regulations 2. Funding Delivery of Our Services 41 Delivering Resort Services and Infrastructure 16 Revenue recognised from taxes, grants, sales of goods and services and other sources Respecting the Alpine Environment 19 3. The Cost of Delivering Services 42 Operating expenses of FCRM Sustainability and Climate Adaptation 20 4. Key Assets Available to Support Service Delivery 46 Organisational Structure 22 Infrastructure and other assets utilised in fulfilling objectives Board Profile 23 5. Other Assets and Liabilities 48 Working capital balances, and other Board Committees 24 key assets and liabilities 6. How We Financed Our Operations 52 OH&S and Human Resources 26 Borrowings, cash flow information, leases and assets pledged as security Compliance Items 28 7. Risks, Contingencies and Valuation Judgements 55 Attestations 31 Financial risk management, contingent assets and liabilities as well as fair value determination Disclosure Index 70 8. Other Disclosures 64 FALLS CREEK ANNUAL REPORT 2017 • 3 Chair’s Report Management has worked extensively with As in 2016, property investment has its North East Victorian regional partners on continued its strong upward trend in 2017. growing visitation via participation on The increased turnover in property sales regional Boards, committees and working and price growth reflects favourably on groups to drive further diversification and investor confidence and demonstrates activation opportunities into the region. the attractiveness of the resort as both an Resort management staff are to be investment and lifestyle destination choice. congratulated for their efforts in this regard. The Board was extremely pleased to see Whilst the winter season is a clear economic the culmination of all these initiatives lead driver of the resort, the work undertaken to the resort being bestowed a major tourism by the Board, community and stakeholders award in 2017. Falls Creek Resort won in driving all seasons visitation has once bronze in the Victorian Tourism Industry again resulted in a record “Green Season” Council and RACV Victorian Tourism Awards over the summer of 2016/17 at Falls Creek. most prestigious category of “Major Tourist Building off this increasing visitation has Attraction”. The honour of such recognition seen new activations across the mountain belongs to the entire resort community and bike park, lakeside aquatic activities and the stakeholders, as it reflects the outstanding contribution made by all in making Falls Creek ever-popular Falls to Hotham Crossing alpine such a great destination. walking track and surrounding trails across The 2017 year can be the High Plains and Alpine National Park. Following the announcement of proposed Consequently, the vibrancy and sustainability changes to the Board structure for the characterised as one of the village on an all seasons basis is Alpine Resort Management Boards, several of consolidation and contributing to improved resilience and long-term Board Members – Mark Anderson vitality for the local and regional community. (9 years’ service), Roger Kilby (7 years’ service) and Lisa Logan (4 years’ service) finished their engagement. During the year, the Board, community terms on 31 December 2017. and stakeholders have also tackled the The announcement in January 2017 challenges presented by climate change. The material contribution made by each regarding the Alpine resort futures project Ongoing priorities have been evaluating outgoing director cannot be understated. saw considerable stakeholder engagement On behalf of my fellow Board members, the adaptation strategies, implementing programs undertaken on proposed governance reforms management team, stakeholders and the to enhance infrastructure resilience, and climate adaptation. broader community I thank them for assessing the application of alternative their service. The Falls Creek Alpine Resort Management energy solutions and significantly reducing Board (FCRM), community and stakeholders landfill offtake from the resort. More work In light of these changes, I am honoured to actively participated in providing their is to be done on further reducing the resort's be Chair until the new Board is appointed. considerable expertise, alpine resort carbon footprint and this will be a major focus As such I would like to thank my fellow Board knowledge and insights. I would like to take for the Board and management team. members for their continued commitment and devotion to the resort. Their contribution to this opportunity to thank all who participated The Land Management division has strategy and work undertaken through the for recognising the importance of their undertaken a comprehensive review and four main committees is integral to assisting contribution and collaboration in the process. calibration of the resort's environmental management in executing the best possible The Victorian Alps are a tremendous management plan, with this document outcomes for all stakeholders. being central to initiatives and key asset to the State. Measuring its value, The Finance, Risk and Audit Committee performance indicators being established be that ecologically with their tremendous (FRAC), played a vital role in working for the targeting of initiatives in this regard. biodiversity, to the importance this natural with management in implementing the I would like to congratulate the team for their asset plays in driving tourism and outdoor new financial and enterprise resource work in this area. recreation is often overlooked. planning software, associated policies and One of the Boards many responsibilities are The importance of the Alpine Resorts to work practices, as well as completing an “for the development, promotion, management the Victorian state economy was however extensive review of the asset register and and use of the resort”. To this end, the 2016 highlighted this year with the release of related policies, together with providing risk Master Plan is the guiding document and the management and compliance oversight. the Alpine Resorts Co-ordinating Council's Board and management were pleased to “Victorian Alpine Resorts Economic Study”. The Planning and Land Management have received endorsement of the plan by It is extremely pleasing to note that Falls Committee (PLMC), chaired by Roger the Minister for Energy, Environment and Creek, as an All Seasons Alpine Resort, Kilby has overseen a busy year for Climate Change (Hon Lily D'Ambrosio MP) is the largest economic contributor to the lease renewals, whilst also working with during 2017. management on reviews relating to site state in the Alpine sector. However, more The implementation program and initiatives rental and service charges, streamlining importantly, the contribution from all the encompassed within this document are now design and site guidelines, the adoption resorts continues to grow. progressing and evident by substantial public of a new Environmental Management Plan This positive momentum was further and private investment across the resort. and framework, and approving exciting captured by record visitation during the 2017 Complementing this has been broad based developments for the village in the snow season, which saw in excess of 1.6m investment by stakeholders via multimillion coming years. visitor days recorded across the Victorian dollar refurbishments and enhancements to The Arts and Culture Development Committee alpine resort sector. This was the highest accommodation, food, beverage and retail (ACDC), chaired by Lindy Allen has built recorded level of visitation since statistics offerings significantly boosting the visitor on its first year of achievements, with the were first collected back in 1984. experience and village amenity. successful launch of the Artist in Residence 4 • SECTION 1: YEAR IN REVIEW program. Furthermore, in collaboration with The Board also wishes to thank the Victorian to what the future holds for the resort. the Faculty of the Victorian College of the Arts Government for its support during the year and We look forward to 2018 being another and the Melbourne Conservatorium of Music to the guidance and direction received from pivotal year in the resort's evolution. (VCA & MCM) the committee established and the Department of Environment, Land, Water I’d like to thank all stakeholders, the awarded the inaugural Falls Creek Resort and Planning. We also wish to thank the Alpine community and resort visitors for their Indigenous Artist Award. In just its first year, Resorts Co-ordinating Council under the continued support and making Falls Creek the overwhelming application for residency Chairmanship of Mr Bill Jaboor, and his team. Australia’s best All Season Alpine Resort. and artists
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