annual report2015 - 2016 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators Contents

Message to the Minister 3 Visitor Centre 22 Disclosures & Legal Compliance 54 Agency Overview 4 Visitor Risk 22 Human Resources 54 Chairman’s Overview 4 Case Study: Rottnest Carnivale 23 Compliance with Public Sector Message from the Chief Executive Officer 6 CONSERVATION AND IMPROVED ACCESS Standards and Ethical Codes 55 Operational Structure 8 TO CULTURAL HERITAGE 27 Government Building Training Policy 55 Rottnest Island context and significance 8 Case Study: Conservation of Olive Tree 29 Unauthorised use of credit cards 55 Enabling Legislation 8 PROTECTION OF THE UNIQUE Financial Summary 56 Responsible Minister 8 ENVIRONMENT 32 Other Financial Disclosures 57 Organisational Chart 8 Terrestrial Management 32 Pricing Policies 57 Administrative Legislation 9 Sustainability 33 Capital Investment 57 Other Key Legislation 9 Environmental Management 33 Board and Committee Remuneration 57 Board Members 9 Marine Management 34 Other Legal Requirements 58 Declaration of Interest 12 PROFESSIONAL RELATIONSHIPS Disability Access and Inclusion Directors’ and Officers’ Liability Insurance 12 WITH STAKEHOLDERS 35 Plan Outcomes 58 Finance and Audit Committee 12 Aboriginal community 35 Compliance with Public Sector The Rottnest Island Chamber Island based stakeholders 35 Standards and Ethical Codes 59 of Commerce 12 Media – Local, National & International 35 Recordkeeping Plan 59 Agency Performance 13 Research Programs 37 Occupational Safety, Health Performance Management Framework 13 Volunteer oganisations 37 and Injury Management 59 Rottnest Island Authority’s Outcome-Based Case Study: Wadjemup Bidi 39 Injury Management System 60 Management Framework 13 Case Study: Aboriginal Burial Ground 45 Data Definitions 60 Shared Responsibilities with Other Agencies 13 FINANCIAL SUSTAINABILITY 48 Advertising 61 Reporting Framework 14 Accounting and Cash Flow 48 Financial Estimates 2016/17 61 Report on Operations 15 Rottnest Island Authority Utilities 49 Corporate Snapshot – Highlights 15 Operating Budget 2016/17 61 Significant Issues & Trends 53 IMPROVED VISITOR EXPERIENCES 16 Certification of Financial Statements 62 Significant Issues Impacting the Agency 53 Recreation holiday services Independent Audit Opinion 63 and facilities 16 Rottnest Island Management Park & Emergency Services 20 Plan 2014-19 53 Financial Statements 65 Transport services 22 Economic Viability 53 Key Performance Indicators 110

2 Rottnest Island Authority Annual Report 2015-2016 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators Message to the Minister

To the Hon Colin Barnett MLA Premier of Western Australia

In accordance with the provisions and specifically section 61 (1) of the Financial Management Act 2006 and in fulfilment of the obligations imposed on the Authority by the Rottnest Island Authority Act 1987, and other relevant legislation, we hereby submit for your information and presentation to Parliament the Annual Report of the Rottnest Island Authority for the year ended 30 June 2016.

John Driscoll Hamish Beck Chairman Deputy Chairman

19 September 2016 19 September 2016

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Chairman’s Overview

It is with very great pleasure that I introduce Top line findings from visitor surveys environment or the Rottnest experience. this year’s RIA Annual Report. For the indicate an increased number of boating It is therefore particularly pleasing that first time in the Island’s history, visitor visitors to an estimated 210,000 a year; all conservation targets have been met or numbers have exceeded 610,000 – an and a high degree of enjoyment in a day exceeded, and annual visitor satisfaction increase of almost 90,000 visitors for the or stay on the Island – 98% in the last levels maintained at 97%. year. Representing a 17% increase over last quarter. The changes we have introduced Our continuing subscription to the year, this outstanding achievement is the in long-entrenched booking methods have rigorous global standard for travel and result of a whole of agency effort, and in been enthusiastically taken up, including tourism organisations, Earthcheck particular a focus on destination marketing, the 18 month booking window. We are provides a robust framework for ensuring combining the efforts of the Authority’s seeing more people book on-line and a sustainable future for Rottnest Island sales and marketing team with those of the make last minute bookings for weekend – environmental, social and financial. Island’s major businesses partners. get-aways which represents a change in This year we have received Silver level the Rottnest peak period holiday culture. The RIA has achieved a profit of $2.42m certification – a most commendable for the financial year, whilst meeting and For locals the Island’s appeal is always achievement. in many cases exceeding key performance the bays and beaches, spending time with indicators across the board. Pleasing family and friends, and just getting away New businesses approved to operate on progress is being made towards some from it all to enjoy the simple pleasures in the Island this year include sky diving, significant new developments on the life. This year, we have seen a huge social snorkel tours and helicopter charters. Island including early planning of the media focus on quokkas– snapping a We continue to encourage new businesses expansion of Hotel Rottnest, in addition to quokka selfie a must, particularly amongst to consider operating on the Island, significant progress towards the glamping international visitors. 355 quokka selfies provided these are compatible with our or upmarket camping at Pinky Beach. news articles were published globally this RIMP and direction for Rottnest. year, repesenting a media value of over Three years ago, we launched the Rottnest The outsourcing of bus transport to $5.6m and a potential audience of Is brand which has steadily gained traction ADAMS and Rottnest Express, in line 613 million people. and increased presence in the market. with the RIMP’s Guiding Principles, has Rottnest is now firmly within a wider range As outlined in the Board’s 20 year vision, achieved an increase in visitor satisfaction of Western Australians' consideration and current Rottnest Island Management with additional services available to meet set for a day trip or extended stay. An Plan 2014-2019 (RIMP), a clear objective peak visitor demand. The roll-out of increased focus on social media and digital is that growth in visitors on the Island our Boating Management Strategy has marketing has had outstanding results. must not occur at the expense of the this year involved a review of regulation

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amendments; site developments at the Hon Peter Collier, Minister for Foundation obtained funding for the Finally, I would like to thank the Authority’s Narrow Neck and Stark Bay; and fuel Aboriginal Affairs, who made the Walk Trail of $532,800 from BHP Billiton, hard working and dedicated staff led by CEO, jetty decking repairs. announcement of $500,000+ Lotterywest the largest ever corporate contribution Paolo Amaranti. Your efforts in preserving funding for Phase Two of the Burial to Rottnest Island. I sincerely thank the Rottnest for future generations, whilst Conservation and protection of the Island’s Ground; and the Hon John Day, Minister veritable army of Rottnest Voluntary Guide improving the experience of current day cultural heritage remains a priority. It was for Culture & the Arts who met with actor Association (RVGA) who are the face of visitors is, I am sure, appreciated by all once again a privilege for me to officiate Martin Clunes during the filming of the Rottnest for many of our visitors, and West Australians. at the Dawn Ceremony on Rottnest. This prestigious Islands of Australia BBC/ITV whose selfless devotion to Rottnest Island year we were most fortunate to hear from series featuring Rottnest Island, sponsored represents tens of thousands of hours a Vietnam veteran, Ken Carter. I take this by Screenwest. of contribution to the visitor experience. opportunity to thank Ken most sincerely This year the RVGA celebrate their 30 year for sharing with us his experiences in My Board colleagues and I were pleased anniversary. I extend sincere thanks to the representing our country at a time of to welcome to our meeting on 27th May Rottnest Society, Winnits, Conservation public indifference and even hostility. the Premier of Western Australia, the Hon Australia’s Green Army; Railway, Nursery John Driscoll Colin Barnett MLA as the new Minister for My Board colleagues and I acknowledge and corporate volunteers for their valued Chairman Tourism. We look forward to him visiting the work behind the development of the contribution to the Island’s natural and the Island in an official capacity later Cultural Landscape Management Plan built environments. this year. and the RIA achieving finalist in the State I would like to take this opportunity to Heritage Awards this year for Outstanding This year, more than ever, Island thank my Board colleagues for another Contribution by a Public Organisation. businesses have worked together – year of hard work and shared passion. marketing collaboratively and supporting Not only did we see the Hon Dr Kim I thank Steve Lauder who resigned in the RIA’s destination marketing efforts. Hames MLA back on the golf course, but October 2015 for his contribution to the The results in the outstanding increase in once again as the Minister for Tourism. Board, as member and latterly as Vice- visitors for the year speak for themselves. Our thanks for his dedication to Rottnest Chairman, and welcome with pleasure Island. Dr Hames officiated at the formal I would like to recognise the outstanding Hamish Beck who joined us in March 2016. opening of the Cathedral Rocks section of efforts of the Rottnest Foundation which Hamish has a strong interest in Rottnest the Walk Trail and seal viewing platform has this year attracted more than a Island, and brings to the Board a wealth of in October 2015. We were also pleased to million dollars in grants. In addition to experience in asset management, tourism welcome to the Island during the year, the $500,000 Lotterywest grant, the and commercial development.

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Message from the Chief Executive Officer

The year in review coincides with year two both ferry operators to offer heavily During the year, we have progressed the of the Rottnest Island Management Plan discounted same day return ferry Wadjemup Walk Trail by a further 10.5km, (RIMP) 2014-2019. I am pleased to report tickets, and with all Island businesses bringing the total completed to 31 kms, that we have successfully performed or to offer the majority of the activities of a projected 45kms. Following substantially progressed the targets we free of charge to visitors. consultation with the Whadjuk Working set ourselves under the five key RIMP Integrated marketing campaigns Party, the Trail is to be known as Wadejmup strategies: Improved Visitor Experiences; supported both Rottnest Carnivale Bidi, with Aboriginal section names. Conservation & Improved Access to and Rottnest Island New Year's Eve Cultural Heritage; Protection of the Unique Terrestrial conservation as part of the Trail fireworks, focusing heavily on print, Environment; Professional Relationships has included abatement of erosion threat radio and social media and website with Stakeholders and Financial to 0.6km of coastal access; 3.33 ha of advertising. A focus on weddings was Sustainability. restoration, and closure of 5.5 km of highlighted via Channel 9’s Rottnest ad hoc tracks. Our rangers attended Operational highlights for the year include: Reno and Just Add Water segments. to 463 wildlife incidents. • Hosting the Global Eco Asia Pacific • Our contribution to tourism included Tourism Conference for 180 delegates a significant increase to 98 travel Our Volunteer Fire & Rescue Service was on 16 November 2015; works programs media familiarisation visits in support increased to 25 for the peak bushfire and roof remedial work and services of Tourism WA and Tourism Australia, season, with 108 training nights conducted upgrades in Kingstown, Bathurst and in addition to hosting travel/lifestyle across a range of fire operations North Thomson. shows, such as Better Homes & competencies. Incidences attended • 120 events during the year including Gardens, Just Add Water, Sunrise, totalled 53. major events such as Channel Swim; Today Tonight. We attended the Our work in the area of cultural heritage Hotel Concerts attracted 68,918 Australian Tourism Exchange 2016 continues to be acknowledged as finalists visitors contributing to our record (ATE) - Australia’s largest annual travel in the 2015 State Heritage Awards. An breaking visitation during the year of and tourism business-to-business outstanding achievement, 30 years in 611,934. Two tactical events on the event. Around 1,200 Australian seller Island designed to encourage lapsed delegates from approximately 500 the making, was the completion of Phase and non-visitors to the Island were companies; 700 key buyer delegates One of the appropriate recognition of Rottnest Carnivale, introduced in from more than 30 countries, as well as the Aboriginal Burial Ground, a number 2014; and a first for the Island – New 80 international and Australian media one priority towards our commitment to Year’s Eve fireworks. We worked with attend this global event. Reconciliation and Closing the Gap.

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We have been fortunate in attracting One hundred and fifty seven utility be commercially unviable without significant funding this year including provider obligations were assessed by the significant volunteer support, $4.8m towards our renewable energy auditor during the year, and a public notice this year benefited from a busy project; $210,000 from Tourism WA issued by the ERA in respect to two minor bee weekend with 20 Railway $ and Commonwealth Tourism Demand and three moderate non-compliances. volunteers – from the Public 1.84m Driver Infrastructure Program and In response, significant financial Transport Authority and Brookfield $15,000 private sponsorship for the Walk commitment in the region of $680,000 Rail who carried out the huge task increased revenue on prior year Trail; over $200,000 in-kind volunteer is to be made to the improvement of of replacing 100 aging wooden contribution from the RVGA, Green Army, capital projects over the 2015-2016 and sleepers with steel ones. Rottnest Society, Winnits and corporate 2016-2017 financial years. All in all, it has been a busy, volunteers. Through the auspices of the A $6m upgrade to our Waste Water productive and successful year. Rottnest Foundation, we have received Treatment plant is nearing completion I take this opportunity to thank grants of $528,000 from BHP Billiton, and which will provide around 80mL per year the Board for their continued $500,000 from Lotterywest for Phase 2 $ management support; my staff of irrigation water, directly replacing 3.6m repair of the Aboriginal Burial Ground. and contractors, Programmed potable water, currently produced at a Facilities Management for a year increased profit from prior year Back of house, we have carried out long cost of $12.13kL. overdue utility services mapping; and which saw the highest number of negotiated with the Department of Water I add my thanks to those of the Chairman visitors to the Island ever in its one to change our groundwater abstraction for the contribution during the year of hundred year history as a tourism licence to protect the integrity of the our stakeholders such as the Rottnest destination. freshwater lens including development Island Chamber of Commerce; Boating of a Groundwater Licence Operating Western Australia (BWA), and our many Strategy. Nine production bores have volunteer organisations - the Rottnest $ been transitioned to monitoring bores Voluntary Guides Association (RVGA), 1.06m in accordance with targets. Work has who this year contributed 20,000+ Paolo Amaranti progressed on a 600kW solar farm and voluntary hours providing our visitors salary savings from prior year Chief Executive Officer dynamic resistor due for commissioning with tours and associated services; the later this calendar year, with an anticipated Rottnest Foundation, Rottnest Society, Demand Side Management System to be the Winnits, Scouts and corporate integrated in summer 2016-2017. volunteers. Our heritage train, which would

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Operational Structure Organisational Chart

Rottnest Island context and Enabling Legislation significance Rottnest Island Authority Members (Board) The Rottnest Island Authority was The Rottnest Island Authority operates established under the terms of the a major holiday and recreation facility Rottnest Island Authority Act 1987 (the within an A-class reserve according to Act) and administers the Rottnest Island the Rottnest Island Authority Act 1987 Regulations 1988. Chief Executive Officer (the Act). The Minister for Tourism is Under the Act, members of the Rottnest responsible for administering the Act Island Authority Board are appointed by on behalf of the Western Australian the Governor to oversee the management Government and ultimately the people of and control of Rottnest Island. Executive Services Western Australia. The Chief Executive Officer is responsible Under Section 11 of the Act, the control and for the day-to-day operations of Rottnest management of the Island is vested in the Island, subject to the control of the Board, Rottnest Island Authority for the purpose and is supported by a core permanent staff of enabling it to: of 90 and temporary staff as required to a) provide and operate recreational and meet seasonal demands. General Manager General Manager General Manager General Manager Governance, Sales, Marketing Environment, holiday facilities on the Island; Project and Strategy and and Product Heritage, Risk Responsible Minister Contract Services b) protect the flora and fauna of the Support Development and Safety Island; and The Minister responsible for the Rottnest Island Authority is the Hon Colin Barnett c) maintain and protect the natural MLA, Premier; Minister for Tourism. environment and the man-made resources of the Island and, to the extent that the Authority’s resources allow, repair its natural environment.

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John Driscoll Chairman Administrative Legislation John Driscoll joined the board in 2010 and professionalism in the industry. He is Chair was appointed Chairman of the Board in to the Senior Advisory Panel of Marketing for The Rottnest Island Authority administers July 2012. John’s qualifications include a the Curtin Business School, past Chairman the Rottnest Island Authority Act 1987. Bachelor’s Degree in Economics and a Master of the Communications Council of Western of Business Administration. He became Australia, Chairman of Trinity College and a Other Key Legislation Chairman and Chief Executive Officer of Board Member of Wheelchair Sports WA. Marketforce in 2003 following a 15-year Key legislation impacting on our John has been holidaying at Rottnest for career with Marketforce, commencing as operations includes; almost 50 years and is an active member of Group Media Director in 1989, and reached • Financial Management Act 2006 Rottnest Island’s boating community. the position of Managing Director in 2000. • Public Sector Management Act 1994 He is a past Committee Member of the John’s standing as one of the State’s leading Rottnest Channel Swim Association and has • State Supply Commission Act 1991 marketers is reflected in his commitment to been a regular competitor in this signature Board Members support organisations dedicated to improving Island event.

The Authority’s governing body, the Board, is appointed by the Governor on Deputy Chairman to October 2015 the nomination of the Minister for Tourism Stephen Lauder for terms not exceeding three years and Stephen Lauder was appointed in July 2012. He is a Fellow of the Australian Institute of members may be re-appointed. Members Stephen is an experienced and passionate Company Directors and previously a State are selected according to their experience Western Australia-based businessman who winner of the Ernst and Young Entrepreneur relevant to the Authority’s operations. has over 25 years of business operational of the Year Award. More recently, Stephen has Profiles of the members of the Board of the and investment experience. Through his been a regional judge for this award in 2012, Authority, together with details of meeting private boutique investment company Clover 2013 and 2014. attendance, are set Capital, he has investments in the hospitality, Stephen Lauder has a solid business out as follows: property, financial services and private background with a focus on strategic equity sectors. direction and operational reforms. As a Stephen Lauder is the founder and owner member of the RIA Finance and Audit of AHS Hospitality, Australia’s largest committee of Rottnest Island Authority, provider of outsourced labour services to the he brings a wealth of private enterprise Australian accommodation hotel industry, experience to the Authority. employing over 4000 staff nationally.

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Robert Suzanne Hamish Beck Deputy Chairman – from March 2016 McDonald Hunt

Hamish Beck was appointed Member and Rob McDonald was appointed in 2011. Suzanne Hunt was appointed in May 2010. Suzie Deputy Chairman in 2016. He is Principal/ Rob spent 32 years working in a variety of has over 30 years’ experience in the construction Managing Director of Beck Advisory, different roles across the State public sector, industry, is a registered Architect with the a development advisory and asset including more than 20 years in senior Architects Board of WA and the Architects management business. His involvement executive positions. His previous positions Registration Council of the UK, an AIA A+ with the property industry spans over include Executive Director, WA Police; Chief Practice Member, a member of the RIBA and 25 years with substantial experience Executive Officer, State Supply Commission; the Australian Consulting Architects. Suzie was in tourism development, commercial Director, State Treasury; and Director of recently appointed a Fellow of the Australian Institute of Architects, one of only 7 females in development and asset management of Finance, WA Police. WA. Her practice Suzanne Hunt Architect Pty commercial buildings. Rob is a CPA and MAICD. He is the Chair of Ltd is a multi-awarding winning architectural Hamish is also Chairperson of the Swan the Board of the South Metropolitan Health and interior design practice specialising in both River Trust, Member of the Cathedral Service and Chair of the Board of the Ability contemporary and heritage projects in WA. Treasure Precinct Civic Space Management, Centre. Rob also provides consultancy Suzie has experience in architectural and interior Committee Member of the Ralph and Patricia services in the areas of public sector design, documentation, contract administration Sarich Neuroscience Institute Tenant Group. management. and strategic management on conservation He was formerly on the Board, and Chair Rob is Chairman of the Rottnest Island and adaptive reuse projects for local and state of the Fundation of the Art Gallery of Authority Finance and Audit Committee. government authorities and on private sectors Western Australia. projects both in WA and in the UK. She has sat Hamish is a recreational user of the river and on the Development Committee of the Heritage ocean through sailing, fishing and boating Council of WA, the Enquiry By Design for the Town of Cottesloe and was for a number of years pursuits and has a strong interest in the government appointed heritage advisor to Rottnest Island. the Town of Cottesloe and City of Subiaco. She currently sits on the City of Melville’s Urban Design Advisory Panel, the Australian Institute of Architects (AIA) Chapter Council and the AIA (WA) Gender Equity committee.

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Sally Dr Peter Hollis Hick Sally Hollis was appointed in December 2010. Dr Peter Hick was appointed in August Sally is a tourism and hospitality professional 2011. He is a retired CSIRO Environmental who has held senior roles at State and National Geoscientist who specialised in spectral levels in peak tourism industry organisations over and biophysical research for terrestrial and the past 20 years. aquatic environments. He has specialist skills in the understanding of the environmental As a founding Director and National Manager, effects of resource extraction, mining and Sally was instrumental in the development of agriculture, coastal geomorphology and has the Australian Tourism Accreditation Program. written more than 140 publications with a She was the inaugural CEO at Tourism Council strong environmental perspective. WA and has been a member of many advisory boards including: Dept of Environment & His PhD was awarded in the field of Marine Conservation; Pacific Asia Travel Assn; Tourism Physics and his recent research has WA; WA Hospitality & Tourism Training Council; concentrated on the statistics of localised WA Indigenous Tourism Operators Committee; effects of climate and biodiversity. Disability Services Tourism Industry Group; Dept Peter, as a keen boating enthusiast and of Consumer & Employment Protection Holiday yachtsman, had significant involvement in Accommodation Review Committee. developing the boating management strategy As Senior Projects Manager at Tourism Council for the Island and the feasibility of a marina WA she has recently managed the upgrade of at Rottnest. He has published books on the national online accreditation system and sailing and maritime history and supports the developed Marine Tourism Accreditation for WA expansion of the heritage and history values Tour Operators. of the Island.

Sally is, with her young family, a regular holidaymaker on Rottnest Island, a competitor in the Swim Thru Rottnest and participant in the Channel Swim.

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Number of applicable Meetings Member First Appointed Designation meetings for 2015-16 attended

John Driscoll December 2010 10 10 Chairman appointed by the Governor on the nomination of the Minister under S6(1)(a) of the Act.

Stephen Lauder (R) July 2012 2 2 Deputy Chairman appointed by the Minister under S6(3) of the Act.

Member appointed under S6(2)(b) of the Act – a person who has practical knowledge of and Suzanne Hunt May 2010 10 9 experience in the preservation of buildings of historic value. Member appointed under S6(2)(a) of the Act – a person who has practical knowledge of and Sally Hollis December 2010 10 9 experience in the conservation of the environment.

Robert McDonald July 2011 10 10 Member appointed under S6(2)(c) of the Act – a person who is of sound commercial experience.

Member appointed under S6(2)(d) of the Act – a person who is a regular user of the Island for Peter Hick August 2011 10 8 recreational purposes.

Hamish Beck March 2016 4 3 Deputy Chairman appointed by the Minister under S6(3) of the Act.

Term Concluded / Resignation: Stephen Lauder

Declaration of Interest Directors’ and Officers’ Finance and Audit Committee The Rottnest Island Chamber Liability Insurance of Commerce The Board has a disclosure of interest The objective of the Finance and Audit process outlined in the Rottnest Island An insurance premium has been taken out Committee is to report and, where The Rottnest Island Chamber of Authority Act 1987. Board members to indemnify Board members against any appropriate, make recommendations Commerce works cooperatively with the declare interests on appointment and liability incurred under sections 13 or 14 to the Board on financial, audit and risk RIA to enhance the visitor experience; and from time to time as matters arise. of the Statutory Corporations (Liability related matters to monitor financial cooperatively increase visitor numbers in a of Directors) Act 1996. management and to ensure risk sustainable manner. management is effective.

The Committee met on 11 occasions during the year.

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Performance Management Framework

The Rottnest Island Authority’s (RIA) performance management framework is structured in accordance with the requirements of the State Government’s Outcome-Based Management Framework for public sector agencies.

The RIA is classified as a Public Non-Financial Corporation by the Department of Treasury which implies that it is required to be self-funding and not rely on State Budget funding for its commercial operating expenses. The RIA is therefore required to act in a commercial manner to fulfil its functions.

Rottnest Island Authority’s Outcome-Based Management Framework

Through its performance management framework the RIA contributes to the Government Goal of Social and Environmental Responsibility – ensuring that economic activity is managed in a socially and environmentally responsible manner for the long-term benefit of the State.

The RIA’s key performance indicators and audited results for 2015-16 are explained in more detail in the Key Performance Indicators section towards the end of this report.

Rottnest Island Authority’s Desired Outcome Key Performance Indicators Services Provided to the Community

Effectiveness • Visitor satisfaction with the Rottnest Island experience 1. Recreational and holiday services • Health of Island’s natural environment • Health of Island’s cultural heritage Rottnest Island visitors enjoy recreational and holiday experiences in healthy, natural and cultural environments. Efficiency • Average cost of recreational and holiday services 2. Natural environment and cultural provided per visitor heritage management • Average cost of natural environment and cultural heritage management per reserve hectare

Shared Responsibilities with Other Agencies

The Rottnest Island Authority does not share any key service-related responsibilities with other agencies. However, it does work in partnership with other Government providers servicing Rottnest Island including the Western Australia Police, Department of Health, Department of Education, Department of Transport, Department of Parks and Wildlife, Department of Fisheries and Department of Fire and Emergency Services.

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Reporting Framework Guiding Principles Under the provisions of Rottnest Island Authority 1987 Act (the Act), the annual operations of the RIA are guided by a five • Rottnest Island will be vibrant, unique • The RIA 'generally' should not be in year management plan. The latest Rottnest and best-in-class business as a commercial provider Island Management Plan 2014-2019 • Products, facilities, services and • The main market for Rottnest Island (RIMP) following public comment, was functions will be provided that meet or will remain Western Australians with presented to the Hon Kim Hames, Minister exceed market expectations and will be a focus on growing the national and for Tourism in December 2014, and based on achieving a commercial rate international visitation segments approved by Cabinet. For the first time, the of return RIMP also forms part of a 20 year vision for • Development will be consistent with the Island. Rottnest Island's heritage conservation • Business competition that benefits management planning, development Rottnest Island visitors will be The RIMP sets out five strategic policy outside the Settlement Area may be encouraged objectives within a framework of Guiding considered Principles. • Strategic decisions will be supported • The future cost of Rottnest Island to by business cases Government will be minimised 1. Improved Visitor Experiences

2. Conservation & Improved Access to Cultural Heritage

3. Protection of the Unique Environment

4. Professional Relationships with Stakeholders

5. Financial Sustainability

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Report on Operations

Operations undertaken to perform the Corporate Snapshot – Highlights • Customer service training with an functions of the RIA are many and varied: external consultant continued with very • Highest ever number of visitors in positive results • providing and operating a range of 2015-2016 exceeding 610,000 for the holiday accommodation and facilities first time • Visitor satisfaction at an all-time high of 98% in the last quarter of the • providing recreational services • All time high visitor satisfaction with financial year including tours and hire products such recreational holiday services and as bicycles facilities (94%) and accommodation • Marked increase in positive user • managing the Island’s A-Class reserve (83%) generated feedback (Trip Advisor/Yelp) including the natural environment and • $11m investment into capital • Environmental Management System cultural heritage expenditure projects implemented and audited for Earth Check. • maintaining the Island’s built assets • Phase One of Aboriginal Burial Ground including commercial buildings and completed Our annual report this year is designed infrastructure such as roads and paths; • Earthcheck Silver accreditation around the five major policy objectives 840+ moorings and other boating of the Rottnest Island Management Plan • Eco Global Certification facilities and an airport 2014-2019 (RIMP): • Global Sustainable Tourism • supplying and distributing utilities • Improved Visitor Experiences Council Tick including power, gas, water as well • Conservation & Improved Access to as wastewater and solid waste • 10.5 kms of the Wadjemup Walk Trail Cultural Heritage management completed • Protection of the Unique Environment • providing various community services • Recognised as one of ten sustainable • Professional Relationships with such as fire and emergency services tourism destinations globally Stakeholders • facilitating and hosting community • Hosted the Global Eco Asia Pacific • Financial Sustainability. events ranging from the world’s largest Tourism Conference open-water swim to private weddings • REVPAR - $165.24 up by 8.1% on We have for the first time included a • facilitating and hosting commercial last year number of case studies which illustrate services and government operations • Staff reductions of 19% for the year how the agency works as a whole across such as education, police and health from 110 to 90 full-time equivalents the range of its responsibilities. services.

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Improved Visitor Experiences

Rottnest Island is a favourite holiday destination, and again this financial year, Visitor Satisfaction almost all visitors (97%) feel their visit 2015-16 2014-15 2013-14 2012-13 2011-12 2010-11 to the Island met or exceeded their expectations. Recreation holiday 94 92 91 92 89 81 Rottnest Island is a services and facilities Satisfaction with recreational holiday “must visit tourism services and facilities and accommodation Accommodation 83 81 75 80 77 72 destination” for the local, have recorded all-time high ratings, at national and international 94% and 83% respectively. off as a “must-do” this year. Celebrities Positive results for the year include tourism markets, resulting An outstanding level of success has been such as Hugh Jackman and Martin Clunes occupancy up 2% on FY14/15. Visitor in increased visitation and achieved this year in attracting additional have added their famous faces to the bookings increased by 4% through the visitors. An increase of 17.2% over the last visitor yield. phenomenon while hundreds of daily reservations team. Customer complaints financial year brought the total to over Tweets continue to spread quokka mania decreased significantly down by 15%. 610,000 for the first time in the Island’s around the world. history. In addition we achieved revenue Bookings made on line for RIA $1.7m above forecast. Recreation holiday services accommodation continues to grow and exceeded 50% with the majority of the A focus on destination marketing with and facilities balance being taken over the phone particular emphasis on web-based Accommodation through the Fremantle Reservations Team. 69% technologies and social media, in addition Accommodation remains the RIA’s most to increased marketing cooperation with The RIA continues to focus on making the important commercial business generating annual occupancy average Island businesses, and effective PR/media Island accessible to as many user groups over $16 million in 2015-16. The operation of serviced accommodation have contributed to the unprecedented as possible with accommodation rates comprises 289 self-contained units, (up 2%) increase in visitors. An unexpected bonus varying according to season and day. a 164 bed dormitory style facility and was the international focus on the Island’s Competitively priced accommodation 50 bed hostel at Kingstown. The recently iconic species, quokkas. First reported packages, many of which include reduced upgraded Camping Ground close to Pinky as the “happiest animal on earth” in the ferry rates are available for much of the Beach has 43 sites and with the addition Huffington Post in 2012, the quokka has year with registered users being the first of volunteer camp hosts has become increasingly become a celebrity species to receive information by email at time increasingly popular with families. on social media, with quokka selfies taking of launch.

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Improvements to accommodation during Since 2013 the RIA has been progressively Boating visitors 2015-16, include the following works: upgrading roof structures and replacing Rottnest Island continues to be a favourite • Replacement of roofs at Kingstown, roof sheeting on Rottnest Island destination for a burgeoning number of Governors Circle, Bathurst and North structures. As at 30 June 2016, guest private boat owners. The RIA manages Thomson accommodation at Longreach, Geordie, 849 private moorings, 41 hire moorings, 24,935 Fay’s, Kingstown, South Thomson, • Replacement of electrical circuits at 4 emergency moorings and 1 courtesy Bathurst and North Thomson Bays has bookings or 86,513 room nights Bathurst mooring. The Authorised Users sharing been completed, with Central Thomson system increases the availablity of • Replacement of BBQs in 100 units at 11,421 bookings or 46% due for completion by 30 August 2016 (the moorings to 1,608. Admissions for the year Geordie, Longreach & Fays Bay of total bookings created equivalent of 340 standard roofs in total). totalled 1,246. There continues to be more were booked online. • Repainting of Longreach back row units The upgrades have also incorporated new demand than supply for moorings with a • Replacement of curtains in 43 Bathurst colour bond ultra metal roof sheeting current waitlist of 461. and 9 Governors Circle units designed for marine environments or, for The estimated number of boating visitors the heritage buildings, new short sheet • Replacement of window blinds in has increased to 210,000 annually as a galvanized roof sheeting to preserve the Kingstown Barracks dormitories result of research which represents an fabric of these heritage listed structures. In • Repair of cork floors in 16 units across increase of 25,000 over the previous addition to roof works the electrical wiring the Island estimate of 185,000. 50,163 in the roof cavities and wider electrical • Supply of additional pillows and doonas distribution network has been upgraded. Our Boating Management Strategy 2014 calls answered which will gradually replace blankets in Funding of $16m for these works has works within the framework of the RIMP all units been provided by the State Government and responds to tasks set by the boating • Units 815 and 816 substantially with expenditure of approximately $10m visitor surveys of 2010. It recognises upgraded as part of Rottnest Reno to date. The project is expected to be the Authority’s duty of care to carry promotion with Channel 9 completed in 2018, during which time out maintenance and repairs, to ensure • Units 302-315 (Bathurst) upgraded the remaining resident, commercial and safety of its own existing marine facilities public structures will be remediated. This and to plan to meet increasing demands • Units 507 and 508 North Thomson- is a significant project that will not only for moorings and marine facilities while ocean view upgraded. 2.73 mins ensure the structural integrity of roof and protecting the marine environment, visitor electrical infrastructure but also longevity safety and amenities. average wait time well into the future.

Rottnest Island Authority Annual Report 2015-2016 17 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

Actions designed to facilitate boating on number of passengers and nature of their bays within the Marine Reserve. These Rottnest Island this year include: visit, fees are calculated and invoiced improvements coincided with the release according to a three tier admission fee of a Department of Transport Boating Aquatrash structure. Forty four charter vessels have Guide to Rottnest Island. The RIA through our service contractor registered with the RIA. 25,000 Sanctuary markers Programmed Facilities Management more boating visitors operated Aquatrash again in the summer Fortnightly newsletter Due to increasing costs associated with season. Boaters were able to dispose of Provides information relevant to boating maintaining the sanctuary zones the their rubbish without coming to shore. on the Island including works; renewal decision was made to phase out some dates; upcoming events; improvements to intermediate markers. The co-ordinates Beach anchor points facilities, and seasonal tips. defining the boundaries are shown on In collaboration with Club Marine and marine charts and in the RIA’s Marine and Fuel Jetty Boating Western Australia (BWA) ten Boating Guide. A new style of in water beach anchor points have been installed Work is proposed on the the process of marker buoys to assist marine users in 849 for visitors to the Reserve. Five points are assessing and evaluating a replacement defining the sanctuary zones within the located just south of the Hotel Jetty in Fuel Jetty. Drawing on the wealth of Rottnest Reserve are being introduced. Thomson Bay and five at the most eastern knowledge from our stakeholders to identify private moorings Special packages end of Geordie Bay. the features most desirable n a replacement jetty, ideas under consideration are the Distributed at Club Marine Mandurah Boat Bus stops benefits of floating v fixed, jetty fingers, Show 9-11 October 2015. Additional bus stops are being installed at universal access, wheelchair lift, high Winter discounts Catherine Bay, Strickland and Stark Bays volume low pressure potable water Works have begun at Catherine Bay on the Marine hire facilities are available through refreshment point, to name a few. set down area. an online booking system. throughout Meetings winter, with attractive low season rates 461 Charter Vessels perfect for calm sunny winter days. The CEO held regular meetings with Following representation and extensive The facilities are rented on a 24hrs basis moorings waitlist Boating WA executive throughout the year. consultation with Marine Tourism WA 10.00am to 10.00am the following day (Charter Vessels) the RIA made changes Navigational Aids and bookings can be made up to 3 months to Regulations to simplify the recording Worked with Department of Transport advance. Information about discount hire and collection of admission fees. Upon and Boating Western Australia to improve facilities and discounted accommodation registering their visit together with the the navigational aids into and around four packages are sent by eDM to the database.

18 Rottnest Island Authority Annual Report 2015-2016 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

Hire Services (Pedal & Flipper) Functions & Events Attendance at the inaugural New Year’s Pedal & Flipper hired out 69,000 bikes The RIA facilitates a busy Functions & Eve fireworks was estimated to be 10,000 during 2015-16 and over 2,100 recreational Events program which attracted 68,912 at what has traditionally been a relatively items to visitors ranging from a gel seat visitors to the Island during the year. quiet time for Rottnest. Overwhelmingly cover to make riding more comfortable, to positive feedback was received for what This year’s Rottnest Channel Swim, 68,912 paddleboards, wetsuits or tennis racquets. was a spectacular skyshow that could be sponsored by Karma Resorts for the seen from the mainland. visitors attended events Approximately 8,000 mask, snorkel and second year, is the Island’s most significant fin sets were hired out to enable visitors annual event, attracting over 2,500 Other new events were the inaugural to explore the beauty of Rottnest Island entrants. An estimated 10,000 people Port to Pub swim in March which was underwater. are involved in the event as entrants, considered a huge success by the family and friends, support crew and organisers with over 1500 competitors; Electric bikes have proved extremely spectators. Coordinated by the Channel and a jet ski fund raiser. popular with some visitors choosing an Swim Association, the event involves easier way to explore the Island in half the considerable logistical effort across time. Child trailers and tandems continue 89,627 the agency. to be popular choices. more visitors Pedal & Flipper while providing visitors with bikes, the most popular method of Record high visitor numbers experiencing Rottnest Island; supports up 17% on prior year. our vehicle-free Island ethos by providing Island events and RIA engaged contractors with bikes and cargo trailers in the shoulder and low season, to ensure use of % vehicles is kept to a minimum. 97 visitor satisfaction

2015 Wadjemup Cup winning team

Rottnest Island Authority Annual Report 2015-2016 19 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

Park & Emergency Services

July July July 1 million 2013-2014 2014-2015 2015-2016 Marine Patrols (hours) 808 292 1143.5* website hits for the year Terrestrial patrols (hours) 450 91 324*

Website traffic up 18%. Wildlife responses 223 201 463 Marine Incident responses 53 63 8 Medical assistance responses 9 17 12 Total warning notices issued 733 1082 799 Total Infringements issued 106 85 192 229 *Note: This year marine and terrestrial patrols are reported as vessel / vehicle hours, not staff hours. positive TripAdviser reviews

Including 11 Certificates of Excellence.

REVPAR $165.24

Up 8.4%

Some members of the Rottnest Island Fire & Emergency Rescue Volunteers

20 Rottnest Island Authority Annual Report 2015-2016 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

Emergency preparedness and response Defender light tanker appliance from DFES capability for the Island are coordinated to provide enhanced response capability; through the Rottnest Island Local and acquisition of W.A. EMERGENCY Emergency Management Committee RADIO NETWORK (WAERN) capability in (LEMC). This committee met four times in all fire trucks to put the Island fire brigade 300,000 2015-2016. on a par with DFES mainland crews. WiFi users The Rottnest Island Voluntary Fire & Rescue Service (RIVFS) is a Private Fire Up from 197,000 in June 2015. Brigade managed and led by a Fire & The splash page has been viewed • Exercise RIMAM 15 (cliff rescue / DFES mobilisation). Emergency Services Manager employed over 700,000 times. Exercises Conducted • Exercise SALT (RIA / PFM drinking water quality under contract by the RIA. desktop exercise). During 2015-2016 RIVFS membership • Medical assistance to the Nursing Post; 26 was almost entirely renewed with • Fire alarm activation (Rottnest Hotel); 18 % 15 new applications since 1 July 2015 • Toilet lock-in (rescue); 2 18 and 14 resignations in the same period. • Rubbish fire; 2 Membership currently totals 19, increase in Facebook 'Likes' with 13 active members; 3 probationary • Scrub fire; 1 Incidents / call outs Now 79,166 likes, up from 67,223 members and a reserve/support. • Road crash (cyclist vs bus); 1 in June 2015. 108 training nights were held during • Assist police (search & rescue); 1 the year. • Special service call (aircraft hazardous condition); 1 Improvements during the year include • Boat / vessel fire. 1 RIA VHF network capability to local • TOTAL INCIDENTS: 53 police and Nursing post ambulance % • Carnivale 2015; 103 as part of whole-of-Island emergency • 2015 New Year’s Eve fireworks coverage; radio enhancement; FESM ROTTNEST increase in Twitter followers • 2015 New Year’s Eve midnight flare watch coverage; accredited by Department of Fire & Events • 2016 Australia Day flare watch coverage; Emergency Services (DFES) to deliver Now 6,102 followers, up from • 2016 Rottnest Channel Swim; 3,000 in June 2015. 8 x volunteer firefighter training packages • 2016 Port to Pub Swim. on the Island; acquisition of a Landrover

Rottnest Island Authority Annual Report 2015-2016 21 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

Transport services Visitor Risk In embracing modern enterprise risk management as a way of improving Successful outsourcing of the Tours and The RIA operates in a very complex, decision making processes and Transport business to industry leader challenging and competitive tourism consistency and ensuring long term % ADAMS resulted in an expanded visitor market. To ensure Rottnest Island remains financial sustainability, a study in 170 service which included double the number relevant and maintains its status as a 2015-2016 by PricewaterhouseCoopers of buses being available to meet demand in ‘must-visit tourism destination’, it is increase in Instagram followers (PwC) has provided a “health check” and peak period with high visitor satisfaction. necessary to provide best-in-class tourism gap analysis of the RIA’s Risk Management Now 27,000 followers, up from products, experiences and services. Framework. It has provided a roadmap for 9,987 in June 2015. Visitors are now able to choose from a variety of tours: Grand Island Tour; Risk Management plays a critical part in implementation of recommendations to Discovery Tour; Island Explorer at market reaching this target and ensuring risks enhance our risk management practices. competitive pricing. are identified, managed, reviewed and Web based improvements communicated appropriately. The RIA Visitor Centre maintains a strategic risk register which Additional enhancement of visitor focus on includes over 250 risk issues which have the Rottnest Island website included the The Rottnest Island Visitor Centre is the 10 Apps been identified across the whole of our launch of a “plan your stay” function. first stop for visitors arriving on Rottnest, operations and are managed to comply 5 new this year providing general information, taking Four additional Rottnest Island Apps – with ANZ/NZS ISO 31000:2009. bookings for Island tours and welcoming provide visitors with the opportunity to over 23,750 arrivals with accommodation At present, under the terms of the learn about the Island’s rich and varied bookings. Facilities & Utilities Support Services history from Aboriginal occupation to over contract with Programmed, PFM are 100 years of tourism and everything in Two additional self select ticket machines contractually responsible for managing between, including European settlement, have been added to the Visitor Centre; risks associated with most of the agricultural industry, military installations and an ATM service has been introduced tourism facilities on the Island, but RIA and our journey towards sustainable Snapchat following BankWest’s removal of its ATM. remains ultimately accountable for the tourism. An additional App was also created June 2016 reputational and consequential damage launched for Rottnest Carnivale with relating to all risks, according to its 2009 strong usage. Already 500 followers. Risk Framework. The RIA also retains responsibility for managing all Heritage and Environment risks.

22 Rottnest Island Authority Annual Report 2015-2016 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

R o ttnest Carnivale

Rottnest Island Authority Annual Report 2015-2016 23 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

Rottnest Carnivale

Rottnest Carnivale was launched in Event activities are either free of 7,279 October 2014 as a peak season opener. charge (where gold coin donations are The intention of this event is to bring new encouraged) or at special Telethon prices visitors attended the event and lapsed visitors to the Island and give just for the day, which would then allow for visitors a taste of the best that Rottnest part-proceeds to go to Telethon. An increase of 61% over the 4,521 from the previous year. has to offer. After success in 2014 & 2015 this event is now an annual event in the Reason For Event Rottnest Island calendar. 1) To bring lapsed and non-visitors back As well as showcasing all existing to Rottnest Island businesses and events on the Island, the 2) Raise awareness of all that the Island RIA also invests in bringing over additional % has to offer 54 fun activities to create the carnival atmosphere. The majority of the activity is 3) Raise funds for our major charity of visitors had not been to the aimed at families (extra reasons to come partner Telethon Island for over 2 years and enjoy the day). 4) Encourage repeat visitation

To encourage visitation we work with Rottnest Carnivale is supported by an both ferry operators and offer heavily integrated marketing campaign focusing discounted same day return ferry tickets heavily on print, radio, social media and $29 from Fremantle and $39 from Hillarys. website advertising. % In addition to the low-cost ferries, the 45 majority of the activities on the Island are free or significantly subsidised by the RIA of visitors said they would visit and Island businesses. Rottnest Island again in the Rottnest Carnivale supports Telethon. next 12 months This association adds a depth of purpose to the event and gives the entire Island and visitors another reason to support this event.

24 Rottnest Island Authority Annual Report 2015-2016 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

Rottnest Carnivale print advertising $15,000 donation to Telethon

17% of visitors had never been to the Island

80% of visitors said they would come to the event in 2016

Rottnest Island Authority Annual Report 2015-2016 25 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

26 Rottnest Island Authority Annual Report 2015-2016 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

Conservation And Improved Access To Cultural Heritage

Developed in 2015, the Rottnest Although we have only just started to • Two photographic albums from the Island/Wadjemup Cultural Landscape work with this document, it has provided 1920s donated to the RIA provide Management Plan (CLMP) is a strategic valuable guidance in several of our work photographs of Rottnest Island from document that identifies the significance achievements this year, including scopes this early period of holiday making at a of the Island as a cultural landscape and of works for the Signal Station and time when the Island was managed by puts in place provisions for the care and Head Gardener’s Cottage leading to the the Rottnest Island Board Rottnest Island is an management of the heritage values of the conservation of these significant buildings. • Entry statement/shelter for Oliver Hill internationally recognised Island as a whole. Secondary and tertiary Achievement related to Conservation and with new interpretation and trial of new tourism destination attracting plans, including conservation management improved access to Cultural Heritage for bus tour for Adams increased local, national plans, interpretation plans and heritage 2015-2016 include: • 50th Anniversary of the Anglican resource management plans underpin and international visitation, • Finalist in Heritage Council Awards for Chapel exhibition in Salt Store this plan. Together this suite of plans based on natural and cultural the CLMP (Contribution by a public or • 120th Anniversary of the opening of assists the RIA in conserving, promoting heritage values. private organisation) and Capturing 1896 Wadjemup Lighthouse exhibition and supporting the cultural heritage of the Enemy with Scooplight Theatre in Salt Store Rottnest Island/Wadjemup. (Interpretation project) • Significant contribution to Wadjemup The development of the Rottnest • UWA student Braden Miller working Walk Trail through signage and major Island/Wadjemup Cultural Landscape with Cultural Heritage Unit on an contribution through management Management Plan, followed the Internship and Masters' program, of Trail Head Signage tender and UNESCO World Heritage guidelines and both involving World War II heritage on appointment of designers – Publik comprehensive stakeholder feedback. Rottnest Island. The reports that will • Coordinated and managed an inaugural It was a first, not only for the Island but for result from both projects will benefit and successful Artists Retreat in Western Australia and provides important RIA and provide valuable information August 2015 featuring the artist direction in the conservation and improved to work from as far as risk assessment Ken Wadrop access to cultural heritage on the Island. and interpretation and conservation • Archival/heritage advice support for potential the TV show “Islands of Australia” filmed on Rottnest Island in May 2016

Rottnest Island Authority Annual Report 2015-2016 27 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

• Assistance, support and participation • Support and liaison with Senior in the Channel 7 TV presentation on the Archaeologist, Dr Charles Dortch in history of Rottnest for Today Tonight relation to archaeological finds that segment on Rottnest Island as part of pre date the sea level rise of the “Lost Perth” series 7,000 years ago • Archaeological Survey of Garden Lake • Addition of four oral histories including and the Nursery by Archae-aus. one from Gordon Briglin, searchlight • Part conservation of the Aboriginal electrical engineer from World War II Hospital as part of Phase 1 of and Ivan Rutherford, long term resident Aboriginal Burial Ground works and businessman on Rottnest. Total oral histories: 92 • Management of scope of works and Removal of acrylic paint costing prepared for Signal Station; • Completed the Heritage Inventory Head Gardener’s Cottage on the of buildings and sites of heritage western edge of the Aboriginal significance and uploaded onto the Burial Ground. A thorough heritage State Heritage Office website. This assessment was made on the Head is a major step towards creating a Gardener’s Cottage. As a management comprehensive heritage asset list for tool, it provides the history and the Island’s state heritage listed and significance of the place and locates highly significant heritage buildings. it in the context of history of Rottnest Island and Western Australia. The Assessment was placed on the Register of Heritage Places in August 2015 • Managing conservation painting of the Sea Wall and cottage with Volunteering Preparing for limewash WA and of stonemasons in poulticing and removing damaging acrylic paint from the Museum and painting the significant building white lime wash

28 Rottnest Island Authority Annual Report 2015-2016 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

Conservation of Olive Tree

Rottnest Island Authority Annual Report 2015-2016 29 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

Olive Tree at Hotel Rottnest – Olea europaea In 2008, the olive at the Hotel Rottnest was identified as being over 100 years in age, By the end of 2015, the Hotel olive appeared to be dying. Further advice was sought and in reasonable health and showing typical foliage condition. In 2012, the Olive Leaf Bioprime Dicot - Glutathione, a natural tripeptide hormone, was applied in late February Bug was detected and for three years the tree was treated annually against this 2016 following radical pruning. The tree responded almost immediately and has shown debilitating sap-sucking insect. However a gradual decline in the condition of the steady improvement since then. We look forward to spring growth as evidence that this tree has been noticeable. significant tree has been saved.

May 2008 – works commence at Hotel Rottnest on outside seating area

December 2008 – construction March 2013 – complete of raised seating structure leaf drop

Mid-1930s – Olive tree at Hotel Rottnest thought to have been planted

January 2012 – decline March 2014 – upgraded of canopy is evident – reticulation installed and treatment for Olive Leaf soil improvements made Bug, also evident in all other Island olive trees

30 Rottnest Island Authority Annual Report 2015-2016 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

February 2016 – treatment with Glutathione, a naturally occurring antioxidant and a root stimulating product, Bioprime Dicot

October 2014 – reduced October 2015 – February 2016 – canopy coverage evident treatment carried out treatment carried out

March 2015 – advice April 2016 – signs of leaf sought growth prior to winter period

Rottnest Island Authority Annual Report 2015-2016 31 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

Protection Of The Unique Environment

Terrestrial Management

A key initiative under the RIMP is our Terrestrial Conservation Action Plan The Rottnest Island (TCAP), which was launched this year. Reserve will be a protected It is based on the Nature Conservancy’s Freshwater Aquifer Lens Conservation Action Planning process, haven for indigenous flora Coastal Habitat which we used to identify the natural Limestone Heath and fauna: a unique place Wetlands values of the Rottnest Island Terrestrial Woodland/Heath where visitors can enjoy and Reserve, determine current and desired Settlement appreciate diverse nature- health, consider threatening processes, based experiences now and and identify priority conservation actions in the future. to enable resources to be directed where most needed. The TCAP is a platform for biodiversity conservation planning, developed, tested and applied with input from a variety of stakeholders, researchers and experts.

The Plan sets out conservation targets 3.33 ha for Quokkas; Limestone Heath; Coastal Habitat; Woodland and associated Heath restoration Community; and Wetlands. • Continued development of Rottnest • Undertaking seed collection, seed Island herbarium and flora species treatment, maintaining seed stores and of coastal dune, woodland/ Activity during the year related to the inventory plant propagation with volunteers woodland heath and wetland Plan includes: areas including a total of 12,529 • Abatement of contamination and • Control of Declared weeds in Reserve plants planted and 5.5km of • Wildlife Interaction Information unsustainable abstraction threat to ad-hoc tracks closed. Sessions and Wildlife Exclusion • Long-term shorebird (including wetlands through updating hydrological migratory birds) surveys • Viability surveys of focal system knowledge and incorporation conservation targets • Beach closure for Fairy Tern into current management practices breeding site

32 Rottnest Island Authority Annual Report 2015-2016 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

• Long-term frog monitoring The system itself has resulted in some Environmental Management • Targeted survey of islets for significant changes including: It has been a big year in environmental Napoleon’s Skink • Implementation of a risk based management in support of the delivery of management approach, where all • Bathymetry mapping of salt lakes major projects on the Island, including: activities and services on the Island • Google trekker image capture • Waste Water Treatment Plant, and use were risk assessed, resulting in a 12,970 • Development and implementation of of recycled waste water on the golf risk action plan to guide and Fauna Incident Reporting Tool course and sports oval – liaison with prioritise efforts plants propagated • Implementation of online web mapping regulators, stakeholders and project • Overhauling our polices to meet by the Green Army and Nursery for management of reserve assets. staff to facilitate approvals the EarthCheck standards. Volunteers to help revegetate a and licensing Threatened Ecological Samphire • Creation of new incident Sustainability • Development of a draft Nutrient Community. reporting tools Irrigation Management Plan and draft A key initiative under the RIMP is our • Development of various operational Recycled Water Management Plan, to EarthCheck Sustainability Accreditation and efficiency plans including solid ensure the risks of using treated waste which was achieved this year through the waste, greenhouse gas emissions, water for irrigation in public places and award of EarthCheck Silver Certification. inland waters, harmful substances, environmentally sensitive areas can be We started this journey in 2010 and social, cultural, conservation, managed maintained Bronze level certification for wastewater and air quality • Solar Farm Project – provision of advice 5 years before launching a Sustainability • Developing a draft set of Island and assistance in the development Action Plan in 2015 to improve our sustainability objectives, and 5, 10 and of a Construction Environmental approach to sustainability on the Island. Upgrade 20 year targets. These targets will be Management Plan to be submitted by The delivery of the Sustainability Action adopted once operational road maps contractor nursery facility on how to get there are finalised. Plan resulted in many key achievements, • Glass Crusher Project – to date 23 to increase production capacity most notable is the development of a tonnes of glass has been processed. to 40,000 seedlings, and addition Sustainability Management System Trials and market research are of grown-on area for designed in accordance with EarthCheck currently in progress to determine advanced plants. Sustainability Standards, the EarthCheck the optimal end use for the ten key sustainability performance areas, crushed product and ISO 14001 standards.

Rottnest Island Authority Annual Report 2015-2016 33 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

• Completion of a Hydrological Marine Management Assessment of ground water resources, The RIA’s Marine Management Strategy and development of a Ground Water (MMS) with a main focus of ensuring the Licence Operating Strategy designed unique marine environment of Rottnest to ensure sustainable abstraction, and Abatement Island is preserved and enhanced protection of groundwater dependent for future generations to enjoy, was of erosion threat environments on the Island. developed with a working group and to coastal habitat through closure subjected to extensive consultation of 0.6km of ad-hoc coastal access and community feedback. The main in conjunction with Wadjemup Walk Trail project. components of the MMS include a zoning plan outlining the additional sanctuary zones that were gazetted in 2007, and emphasise the importance of monitoring, scientific research, education programs, enforcement and compliance. • Reef Life Survey – an annual reef Green Army graduates fish and marine invertebrate survey conducted by members of the community

Electric vehicle • Continued seagrass monitoring by diving community group Western Australian Divers for Diversity Incorporated (WADDI) • Seagrass viability assessment workshop with key stakeholders to develop future monitoring program Glass crusher • New yellow water markers introduced this year to assist boat users to clearly identify sanctuary zones.

34 Rottnest Island Authority Annual Report 2015-2016 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

Professional Relationships With Stakeholders

Aboriginal community • Whadjuk working party consultation in • Department of Education maintains a 2015 regarding Walk Trail naming and campus of Beaconsfield on the Island Highlights for the year: again in February 2016 for Burial Ground • Department of Fire & Emergency • Completion of the RIA’s second • Appointment of an Aboriginal Services (DFES) Reconciliation Action Plan (RAP) Heritage Officer • The WA Health Department maintains 2012-15 and a third drafted Improved quality and • Planning for an Aboriginal Reference a Nursing Post on the Island. • $30,000 sponsorship and logistical increased acceptance of Group to be formed support for the 8th Wadjemup Cup, Media – Local, National & decisions through appropriate • Phase 1 of the Burial Ground completed an Aboriginal round-robin football International during the year. stakeholder involvement competition coordinated by the Clontarf Foundation Rottnest Island is a magnet for both and engagement in the RIA’s Island based stakeholders promotional and news media. The RIA • Hosted the Indigenous AFL all-stars decision-making process. in association with Island police and cultural day Effective working relationships are maintained with all Island-based health services provides news media • Engagement of an Aboriginal operated stakeholders. Regular communication with assistance on the Island in the form business as the RIA’s main supplier of includes ongoing dialogue; a weekly of transport and accessibility to key stationery and general office supplies rundown of activities and events, spokespersons. Ongoing close cooperation • Exhibition in Rottnest Island Museum: (This Week); and formalised collaborative with local media has resulted in an Wadjemup to Walyalup (Rottnest to planning, operational and debrief increase in positive media articles over the Fremantle): a history of Indigenous meetings, particularly in relation to major past few years, and for the past financial incarceration in Western Australia events on the Island such as Leavers; and year in particular. • Public Sector Commission 2015 the Rottnest Channel Swim. Engagement During the year, 26 lifestyle, documentary Aboriginal internship program with key stakeholders includes: and promotional film crews have been • RIA Heritage Officer guest speaker • Rottnest Island Chamber of Commerce supported with transport, escorted around at the Rottnest Society annual general • Western Australia Police (WAPol) which the Island together with expert knowledge, meeting, speaking on the topic of includes a police station located on the talent and interview opportunities. From Aboriginal Heritage on Rottnest Island Island manned by an OIC and up to time to time, such support has also • Aboriginal artist, Peter Farmer, engaged 4 resident officers included mutually beneficial promotion through the RIA’s social media networks. for sculpture for trail head of Walk Trail • Department of Transport intended – Mamong Dreaming to formalise what has been a long- standing relationship

Rottnest Island Authority Annual Report 2015-2016 35 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

$ Lifestyle TV shows • One Way Ticket to Oz featured prominently in the “Just Another 532,800 • Channel 7 - Today Tonight – Lost • Victoria’s Secret – featuring model Day in WA” TWA campaign and the Tourism Rottnest as part of the Lost Perth Series Bridget Malcolm. Australia campaign – There’s Nothing BHP Billiton funding • Channel 7 – Sunrise segments Like Australia. Travel & Tourism featuring quokkas and Island received for the Wadjemup Lifestyle shows such as “Islands of businesses During the year we hosted a total of Walk Trail. Australia”, which was supported by a 98 travel media familiarisations involving • Channel 9 – Wildlife with Tim Faulkner Screenwest grant, Echapees Belles, over 600 representatives. These include (named Conservationist of the Year BBC Downunder and iCable Hong Kong crews on behalf of Tourism Western in 2015) contribute to international exposure for Australia from Korea, Malaysian, UK, USA; tourism in Western Australia. • Channel 7 – Better Homes & Gardens NZ, Singapore, Indonesia; Carluccio’s $ with Dr Harry/quokkas Coorroborree and Tareq Taylor Cooking The RIA was represented at the 15 May 210,000 • Channel 10 – The Living Room – for Tourism Australia and travel shows 2016 - 19 May 2016 Australian Tourism Bondi Vet Destination WA: WA Weekender; Bound Exchange 2016 (ATE), Australia’s largest Tourism WA funding Round (Sydney); Lonely Planet (India); annual travel and tourism business-to- Commonwealth Tourism Demand • Channel 10 - Big Brother USA Influencer; Indonesia NHK (Hong business event. Around 1,200 Australian Driver Infrastructure Program • Channel 10 – AFL Stars cultural Kong) Mofu Pet; Rocky Travel; Foodision seller delegates from approximately orientation Malaysia Travel; CP International Sekai Hot 500 companies; 700 key buyer delegates received for the Wadjemup • Channel 10 – Studio 10 (quokka Walk Trail. Journal; Chinese film crew in association from more than 30 countries, as well as selfies!) with Rottnest Express. Filming was 80 international and Australian media • Channel 10 - Masterchef facilitated for Rottnest Island which attend this global event. • Echapees Belles – French lifestyle $ program (featuring Green Army team 15,000 leader) • Jarred Seng – 24 hr challenge private sponsorship • iCable Hong Kong • BBC Downunder received for the Wadjemup Walk Trail. • ITV/Buffalo Productions – Islands of Australia with Martin Clunes Rottnest Reno 2016 • Househunters International

36 Rottnest Island Authority Annual Report 2015-2016 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

Working cooperatively with our • Assessing population dynamics of Nursery Volunteers; corporate volunteers regional tourism organisation, the RIA Rock Parrot population, and increasing such as BHP Billiton; and Rottnest Island commissioned Experience Perth to numbers on Rottnest Island (Bold Railway Volunteers (RIRAC). distribute marketing material at: Park Bird Banding Group). The use of Winnits $ • Jan 30-31 Sydney Flight Centre Expo animal behaviour as a bio-indicator of 50,000 The Island’s longest-standing volunteer woodland restoration quality (ECU) • Feb 6-7 Melbourne Flight Centre Expo organisation is the Winnit Club, which • Marine biodiversity monitoring at in-kind ferry travel • Feb 20-21 Auckland Flight Centre Expo was founded in the summer of 1930-31. Rottnest Island with emphasis on Grey • Feb 26-28 Travel Revolution Fair, While the founding members initially came for volunteers courtesy Nurse Sharks (Aqua Research and Rottnest Express and Singapore together for annual sailing and camping, Monitoring Services). Rottnest Fast Ferries. they soon decided they wanted to give • Mar 11-13 MATTA Travel Fair, something back to their favourite Island. Kuala Lumpur. Volunteer oganisations Today it is virtually impossible to find a Research Programs The strong community appreciation of and spot on the Island that has not benefited $ + involvement with the Island is exemplified from the efforts of the Winnit Club. 200,000 In 2015-16 the RIA provided new permits by the number of people who volunteer on for 18 research projects. Current projects a regular basis to undertake a wide variety in-kind in progress include: of tasks including tours of the Island, • The RIA in partnership with University beach clean ups, dune rehabilitation, for over 18 months work by the Conservation Volunteers seed collection, tree planting, weeding, of New South Wales, Australian Nuclear – Green Army. Science and Technology Organisation fauna monitoring, maintenance and (ANSTO), and the Department of Water construction works and the provision of obtained funding for a collaborative interpretive tours. Volunteer assistance research project to further improve is estimated to total 35,000 volunteer $ our knowledge and understanding. hours each year, assisting in preserving 10,000 Research in collaboration with the and communicating the natural, cultural University of Western Australia is and recreational values of the Island. Nursery volunteers Donated by the Watson Family also in progress to gain a better Volunteer organisations include the for Salmon Bay shelter. understanding of the hydrological Rottnest Voluntary Guides Association dynamics of Rottnest’s wetland (RVGA); Rottnest Foundation; Winnits; system and the microbial mats and Conservation Volunteers Australia (Green microbialite communities Army); Rottnest Society; Scouts Australia;

Rottnest Island Authority Annual Report 2015-2016 37 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

Rottnest Island Voluntary Guides of all volunteers with an annual volunteer The Island’s largest volunteer group is the breakfast. Held in December, the breakfast Rottnest Voluntary Guides Association this year was hosted by board members, (RVGA) which this year celebrates its Rob McDonald and Peter Hick, with 30th anniversary. RVGA will hold several the Minister for Tourism, the Hon. Kim celebratory events which include a Hames, who thanked the volunteers and $ luncheon for seven of the Guides who highlighted the key achivements of the 20,000 year. An interactive Welcome to Country joined in 1986 and are still guiding. by Ingrid Cummings got everyone involved in gold coin public donations The knowledgeable and hardworking and was much enjoyed by the 120+ 300 member RVGA this year hosted for the Rottnest Island Museum. individual volunteers who attended. 60,000 visitors who enjoyed a range of walking tours and the tours at the Oliver Rottnest Foundation Hill Guns and the Wadjemup Lighthouse The Rottnest Foundation is an Volunteer at Visitor Centre service desk as well as the museum, Lomas Cottage incorporated voluntary body comprised and Boatshed. A rotational Meet & Greet of people who feel passionately about Guide is based at the Visitor Centre as a conserving Rottnest Island for future $ first point of contact helping visitors to generations to enjoy. The Foundation 19,000 enhance their experience of the Island. The Board has representation from a variety of RVGA has embarked on a Strategic Review community and business leaders, many to fund of its activities on the Island to further of whom have had considerable experience Fuel Jetty Concept Design enhance its tours, promote the visitor and direct involvement with Rottnest experience and its collaboration with the Island. The RIA’s ongoing involvement with from the Recreation Boat RIA and the ferry companies. the Foundation includes the secondment Scheme. of a funding officer. The RIA/RVGA provided educational RVGA guides celebrating 30 years service experiences and fun Island activities for To date the Rottnest Foundation has raised 4,700 primary school students and $520,440 to contribute to the conservation 300 teachers from 110 schools. of the Aboriginal Burial Ground and $1,123,013 towards the implementation of We provide support for the RVGA operating the Wadjemup Bidi Walk Trail. on Rottnest Island with a dedicated coordinator, and celebrate the contribution

38 Rottnest Island Authority Annual Report 2015-2016 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators Wadje mup Bidi

Rottnest Island Authority Annual Report 2015-2016 39 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

Wadjemup Bidi

The Rottnest Island ‘Wadjemup Interpretive signage includes: Bidi’ project is a major tourism and • 3x Audio Signs relaying Cultural 5.5km conservation initiative designed to Stories by Whadjuk Traditional greatly enhance the Rottnest Island Owners of new trail cut visitor experience. • A Mamong Dreaming sculpture by It has the potential to be an exceptional Aboriginal artist Peter Farmer at environmental, cultural and tourism Strickland Bay. show piece for Western Australia, 10,679 volunteer hours have and internationally recognised world contributed to the implementation class attraction. of the three officially opened trail Planning commenced in 1998, sections, equating to $320,370 of when it became clear that the in-kind support. Volunteers also help 2km unique environmental qualities of to promote and encourage visitor use Hand cranked interpretative audio of fencing removed Rottnest Island require protection and to maintain the trail into the future. and responsible management. The Volunteers grow plants for the project It improves beach access and Wadjemup Bidi is one of a number of in the Rottnest Nursery using seeds implements key facilities at priority initiatives the Rottnest Island Authority collected from the Island, increasing bays, providing incentives for boat and affiliated volunteer groups are using biodiversity and reducing risks from owners to leave their vessels and to achieve this goal. using imported plants. 50,213 seedlings explore the Island. have been planted to-date, 16km of The Wadjemup Bidi project, when A modern method of engaging the informal ad-hoc access (coastal and completed will be a 45km trail network $ community with Aboriginal culture, non-coastal) has been closed and that controls and manages visitor access 320,370 outlined in our Reconciliation Action 1,891m² of direct seeding has been by connecting Rottnest’s beautiful Plan, integration of interpretation along sown. Seedling survival rate measured in-kind support natural features to its cultural history in the trail, includes Aboriginal elements; using photo monitoring is reaching an environmentally sustainable manner. education about the Island’s cultural, 80-85%, attributed to the plants being A major part of the project involves historical and environmental values to grown using Island stock. rehabilitation of informal access tracks ensure visitors respect and protect the and previously damaged areas. Island and its history.

40 Rottnest Island Authority Annual Report 2015-2016 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

Directional signage, bin surrounds Sustainability Goals of the • Arrest deterioration in the Island and benches are made from recycled Walk Trail ecology, while improving and plastic materials. One bench seat enhancing the environment 19 Environmental saves approximately 16,000 recycled • Increase biodiversity by using • Decrease visitor impacts on the directional markers installed bags from landfill. Boardwalks and seedlings propagated from local natural environment, reducing interpretative signage are made using plants in the Island Nursery making a total of 104 markers. erosion composite fibre material which is • Foster appreciation of the cultural durable, corrosion resistant, has an • Revegetate denuded areas to significance, multiple histories estimated 30 year lifespan, is cost increase habitat for wildlife and environmental dynamics of efficient and UV stable. • Reduce or eliminate environmentally the Island through educative and damaging ad-hoc access whilst The purchase of a glass crusher two interpretative elements, encouraging increasing recreational amenity years ago, has contributed to reducing visitors to better understand, 2 glass waste on the Island, in addition protect and respect the Island. bus stops upgraded to providing a product considered suitable for trail surfacing. So far, 23 tonnes of glass have been processed. It is planned to use this for walking trail and surfacing applications, reducing the need to buy and bring materials to the Island and ferry glass off the Island.

An osprey sculpture by artist Fleur Marron has been installed along the Bickley Bay section. The RIA imposed a requirement that it be made from 80% recycled materials sourced from the Island; prompting visitors to be mindful that what they leave behind impacts the Island’s unique and fragile ecosystems.

Rottnest Island Authority Annual Report 2015-2016 41 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

Key milestones

1998 2012 A Rottnest Island Outer Bays plan highlighted The first stage of the Trail (Wadjemup Bidi) was concern that uncontrolled coastline access officially opened by the Hon. Dr Kim Hames for recreation activities had resulted in and Mrs Janet Holmes a Court, AC, Patron of the creation of numerous tracks causing the Rottnest Foundation. significant damage to the vegetation. Popular • Replacement of the West End Boardwalk bays were experiencing degradation at a with recycled and recyclable materials faster pace. • Closure of Parker Point uncontrolled beach access • Construction of micro-flush, composting toilet block.

2008 - 2010 2013 Research recommendations integrated Formation of a Steering Group - Rottnest into trail planning comprising consultation Foundation; the RIA, Winnit Club, Rottnest with numerous stakeholders and detailed Society, Conservation Volunteers Australia Cumulative totals environmental & cultural assessment. and any major sponsor(s) to facilitate the Aspects 2013-14 2014-15 2015-16 • Stage 1 Concept Report (2008) construction of a portfolio of projects over a five year period. • Sustainablity Visitor Capacity Study Length of trail 14.5 26.3 31 Edith Cowan University (ECU) (2009) Completion of the Bickley Bay (Ngank Yira • Stage 2 Site Development Plan (SDP) Bidi) 9.4 km trail which explores heritage sites Directional markers 31 85 104 (2010) including World War II coastal remains; the Shark shipwreck at Henrietta Rocks and the coastline Bench seats 4 13 17 • Interpretation Strategy (2010). to Porpoise Bay, inland past the airfield to the Interpretive signs 9 25 37 historic 9.2 inch guns at Oliver Hill. Composite structures 5 7 8 Bike racks 5 12 27 Bus Shelters 2 Shade shelters 2

42 Rottnest Island Authority Annual Report 2015-2016 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

2014 2016 The 9.7 km Lakes section (Gabbi Karniny The 5.9 km northern beaches section (Karlinyah Bidi) explores the Island’s unique salt lakes Bidi) and half of the Salmon Bay Section was ecosystem and visiting migratory birds, whilst co-funded by BHP Billiton in partnership with a 100m elevated boardwalk protects the the Rottnest Foundation with an amount of federally listed Samphire plant community. $532,800, the largest ever corporate donation. Construction includes Ricey Beach universal Funding from Department of Parks & Wildlife access; directional signage, shelters and picnic assisted with improvement and control of area; uncontrolled access closures, and bus beach access at Little Parakeet bay. stop upgrades; together with composite fibre beach access stairs at Catherine Bay and Little Armstrong Bay.

2015 The 10 km Salmon Bay (Wardan Nara Bidi) Japanese shipwreck, Kiryo Maru which sank includes a lookout, beach access stairs in 1984; a Fleur Marron sculpture which and interpretive signage at Fairbridge Bluff highlights the behaviours of the NZ Fur Seal, to protect geologically significant fragile whilst an audio sign provides interpretation limestone formations and provide access for of the local Aboriginal Whadjuk people’s the local surfing community. traditional connection to Kurrannup (waters past West End). Home to a colony of fur seals whose popularity with visitors had created informal tracks leading to dangerously friable limestone cliffs, the Cathedral Rocks section and seal viewing platform was officially opened by the Hon. Kim Hames, MLA Minister for Tourism, in October 2015. Interpretive information includes the

Rottnest Island Authority Annual Report 2015-2016 43 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

Sustainability Goals of the Walk Trail

Social Economic • Provide opportunities to develop • Encourage visitors to explore the • Increase revenue through improved new, high quality self-guided 50,213 terrestrial reserve outside the utilisation and enhancement of and tour products and services, settlement & observe wildlife in its existing assets increasing visitation to the Island plantings natural habitat • Trail construction has and will and expenditure across all • Improve visitor access, amenity, continue to provide economic Island businesses experience and safety by formalising opportunities for artists, traditional • Provide an all-year-round access to popular sites owners and construction and recreational low-cost experience, • Increase awareness, knowledge and environmental companies boosting visitation and expenditure appreciation of Aboriginal culture by • Provide long lasting (30 yr. estimated in the off-season. incorporating Aboriginal elements in lifespan) and sustainable trail $ interpretation infrastructure which reduces ongoing 1.12m maintenance and repair costs • Provide knowledge sharing and funds received networking opportunities, skill development and capacity building for volunteers & trainees • Strengthen partnerships between non-Government & Government organisations through combined management of a community project. 10,679 volunteer hours

44 Rottnest Island Authority Annual Report 2015-2016 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

Aboriginal Burial Ground

Rottnest Island Authority Annual Report 2015-2016 45 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

Aboriginal Burial Ground

The Island’s Aboriginal history spans Phase 1 of those works has this year is buried here, how they came to be many thousands of years from been completed and the Rottnest Island on Rottnest, what the impact of their $ Dreamtime to the recent past when it Authority is working with Lotterywest incarceration had on their communities 650,000 was used as an Aboriginal prison. It is funding through the Rottnest and links to other Aboriginal stories estimated that most Aboriginal people Foundation to implement Phase 2. across the Island. This will not mean State Government grant in Western Australia have an ancestor the place will be populated with signs, Phase 1 included the construction of a but a variety of traditional and digital that would have been imprisoned on perimeter path encompassing burials for Phase 1 of the strategies will make this information Aboriginal Burial Ground. Wadjemup, and some ten percent of identified through ground probing radar. available. The work is being partly those remain buried on the Island. The The path allows visitors and staff to funded by Rottnest Foundation in RIA understands that this association is access this area in a respectful way, partnership with Lotterywest and the not a happy one, and is committed to do giving people an obvious alternative RIA . Further funding is required for what it can to further Reconciliation. to walking across the middle of the Phase 2 and we are currently looking site. The work was carried out by a $ Since 1988, the RIA has sought to work for further funding partners to aid in 500,000 with Aboriginal community to effectively team of young Whadjuik men, carefully delivering this project recognize the burial ground associated ensuring protocols were followed at all Lotterywest grant with the Island’s history as a prison for times. As well as learning construction In Phase 3 of the concept plan, subject and landscaping skills, a number of to funding, is the development of a for Phase 2 of the around 100 years. Aboriginal Burial Ground. culturally appropriate activities gave the public art program to recognise country The conservation and acknowledgement young men the chance to learn more of the Aboriginal men and boys buried of the Wadjemup Aboriginal Burial about the history of the Island and of at the Burial Ground. Ground (Burial Ground) is an important their own culture. It was the team’s idea The site is a very sensitive one and step in aiding in the healing process to say thank you to the spirits through deeply important to Aboriginal people of the Western Australian Aboriginal traditional dance and a smoking $ across WA. The RIA and Rottnest 20,000 people and delivering a significant ceremony to clear away bad spirits for Foundation are working together to message of reconciliation from an accident free project and for giving ensure the momentum for the project Stronger Communities the State. them cultural and spiritual support. Federal Grant is maintained and are committed to A concept plan to recognise the Phase 2 will involve landscaping and providing social, cultural and economic for the Aboriginal Burial Ground. significance of the Burial Ground was storytelling providing visitors to the opportunities for Aboriginal people completed several years ago. site with more information about who throughout the project.

46 Rottnest Island Authority Annual Report 2015-2016 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

Rottnest Island Authority Annual Report 2015-2016 47 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

Financial Sustainability

Accounting and Cash Flow • Improve efficiencies in the use of • $15,000 private sponsorship power, gas, fuel and water. A report received for Walk Trail Measuring success: The commercial operations has been commissioned to review • $50,000 in-kind ferry travel from • Continued accounting net profit and on Rottnest Island generate thermal and gas energy efficiency Rottnest Express for conservation positive cash flow sufficient revenue streams and retrofit of accommodation units volunteers • Cost reduction strategies to includes upgrades to water and energy to allow for prudent • In-kind support from Green Army – contain costs efficiency fittings as part of upgrades. equivalent to 18 months works and re-investment into the revenue Energy production and fuel efficiencies • Increasing cost recovery from $200,000 generating asset base. non-commercial services and will improve through the Renewable • $19,000 from Department of infrastucture Energy (solar farm) project The non-commercial Transport Recreational Boat Scheme • Grant funding and sponsorship operations on Rottnest Island • Cease loss-making operations and/or to fund Fuel Jetty Concept Design commercialise functions: opportunities from commercial entities will be funded through a • Margaret River Chocolate Company and other support organisations • The Tours and Transport function sponsorship of Rottnest Foundation combination of cost recovery, received during the year: was privatised in November 2015 donating percentage of profit from contribution from commercial • $650,000 expended by RIA on and is operating effectively. chocolate quokkas operations, grants and Phase 1 of Burial Ground • Established Joint Executive for conservation • $500,000 funding received by sponsorships and use of third Committee and fortnightly Steering • In-kind $3,000 bathymetry mapping the Rottnest Foundation from party providers. The “user Group in conjunction with Horizon equipment loan from UWA. pays” principle will be applied Power to explore the feasibility Lotterywest for Phase 2 of Aboriginal Burial Ground wherever practicable. of a transfer of operation and/or ownership of Rottnest Island utilities • $528,000 funding received • Apply asset life-cycle costing when from BHP and $210,000 funding replacing or upgrading capital assets to received from Tourism WA (TDDI) achieve least long-term cost for Walk Trail

48 Rottnest Island Authority Annual Report 2015-2016 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

Utilities Gas to the Island has traditionally been All waste water is biologically treated at provided by Kleenheat gas. The current the Rottnest Island Waste Water Treatment Power – Electricity contract with Kleenheat gas is on a Plant. Conversion of the plant to a modern The RIA generates, distributes and retails month to month arrangement, pending Membrane Bio-Reactor system, better power under licence from the Economic clarification of a new Common Use suited to the Island fluctuations in demand Regulation Authority. Agreement (CUA) and strategic direction is underway and will be commissioned Total power generated during the year regarding provision of gas on the Island in late 2016. An important benefit of the was 4.9 GWh, of which 1.1 GWh (22.41%) into the future. upgrade is that the waste water will be of a suitable quality (subject to granting of was generated by the Island’s wind Water Services turbine, the balance supplied through the relevant licence) for irrigation of public The RIA provides potable water and treats diesel generation. open spaces, including the golf course, waste water on the Island, operating reducing the amount of water required under a Department of Water licence and Based on an energy index of 3.97 kWh from the aquifer and other sources. per litre of fuel, the wind turbine replaced the Environmental Protection Authority the consumption of 275,352 litres of guidelines. diesel fuel, saving the RIA an estimated 188,734 kL of potable water (including $520,600 for the year. 70,587 kL golf course irrigated water) Liquid Petroleum Gas were produced during the year, 90% from A mix of reticulated and bottled liquid desalination and the remainder from petroleum gas (LPG) is used to provide groundwater bores. Potable water is stored gas on the Island including the RIA’s in a series of tanks connected to the water accommodation facilities (e.g. hot water distribution network and undergoes a two systems and cooking facilities), as well stage chlorination process. as a range of appliances used by visitors and residents, such as barbecues. Most commercial businesses operating on the Island also utilise LPG for their operations. During the year 310,404 litres of gas were Wind turbine used on the Island.

Rottnest Island Authority Annual Report 2015-2016 49 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

Summary of utility services and infrastructure management provided by the RIA during 2015-16

Cost to Item Quantity Supplied Rottnest Island Prices the RIA

4,878,403 kWh $3,511,962 (including diesel generated (including diesel usage Power 3,785,255 kWh and wind $0.45/kWh and wind turbine) turbine generated $0.72/kWh 1,093,148 kWh)

118,147 kL (excluding golf Potable water $2,289,325 $3.49/kL course of 70,587 kL)

Waste 1567 tonnes of waste generated $746,164 – management (including inert waste)

$333.88 – Sewerage $94.88 – Drainage Waste water 73,661 kL $1,214,663 $762.62 – Waste Water Service Charge

Gas 310,404 L $647,627 $2.43/m3

Fuel supply for consumption (incl. barge transport to the Island) Desalination plant

Diesel 166,947 L $200,064 $1.66/L

Unleaded 81,730 L $96,671 $1.66/L

Premium 60,291 L $71,635 $1.61/L unleaded

50 Rottnest Island Authority Annual Report 2015-2016 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

Sustainable utility services power the Island’s water desalination • Since 2013, the Australian Nuclear • The RIA is moving towards a renewable plant. The RIA is working with Hydro Science and Technology Organisation energy model in stages. The ‘journey’ Tasmania to deliver the project which is (ANSTO) has been undertaking commenced several years ago expected to increase renewable energy research to assess groundwater quality, and the following major steps have penetration currently at around 23% residence times, and flow paths. We are been achieved to 45% working with regulators, stakeholders 4.9 GWh • For the past 10 years, the Island’s • Waste Water Treatment Upgrade: Since and project staff, on gaining approvals/ wind turbine has generated up to 2012, in order to reduce reliance on licence for the upgrade of the waste total power generated 30% of the Island’s electricity needs, the Wadjemup Aquifer, and protect water treatment plant and use of treated waste water on the golf course including 1.1 GWh generated by saving around 1,100 tonnes of fossil water sources the RIA has invested wind turbine. fuels annually in other water sources, supported • The Nutrient Irrigation Management • The development of the Rottnest Island by a hydrological assessment of Plan and the Recycled Water Water Energy Nexus Project (RIWREN). groundwater resources and preparation Management Plan are in draft phases, This project will substantially of a Groundwater Licence Operating while works approval has been contribute towards a sustainable future Strategy (GLOS). Abstraction from the accepted. Upgrade to Waste Water by increasing the amount of renewable aquifer is now capped at 20,000 kL Treatment Plant is to be commissioned energy used to create electricity on the per year, a significant reduction in late 2016 and will provide around Island, and more effectively integrating from the average of ~33,000kL 80 mL per year of irrigation water, the availability of renewable energy per year abstracted since 2007. directly replacing potable water which with electricity demand The Waste Water Treatment Plant is currently produced at a cost (to be commissioned in late 2016) of $12.13 kL. • The $3.8m Australian Renewable Abstraction will increase recovery of wastewater Energy Agency (ARENA) funding is ~65,000 kL of waste making possible the construction of from aquifer water annually a 600 kW solar farm, with associated capped at 20,000 kL. control systems, energy efficiency improvements, and technologies to better manage demand, including by using excess renewable energy to

Rottnest Island Authority Annual Report 2015-2016 51 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

Licensing Compliance Issues: To comply with Government regulations the RIA is required to maintain the following Compliance issues that were addressed licenses and conditions with regard to its utilities and major infrastructure. during the year included: • works on operating and monitoring bores to comply with the Groundwater Renewal Function Period Licence Operating Strategy • a sewage pump station overflow at Electricity Integrated Regional Licence 30 years Longreach Bay Electrical Contractors Licence (held by Facilities Manager) 1 year • the results of a landfill audit Communications Two-Way Apparatus Licences 1 year undertaken by DER on 31 March 2016

Communications Maritime Coast 1 year • Department of Water licensed abstraction limits. Communications Maritime Ship 1 year

Water Services Operating Licence (Potable, Drainage and Sewerage) 20 years

Waste Water Treatment Plant Licence 5 years

Licences to take Water (2) 10 years

Rottnest Island Railway – Captain Hussey 1 year accredited owner/operator accreditation licence

Thomson Bay Fuel Jetty – Pipeline licence 1 year

Land Fill Licence 3 years

Dangerous Goods Licence 3 years

Waste Water Treatment Plant Licence 5 years

Gas Trading and Distribution Exempt

52 Rottnest Island Authority Annual Report 2015-2016 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators Significant Issues & Trends

Significant Issues Impacting services (both commercial and free of Economic Viability The RIA will continue to restructure its the Agency charge), and the aggressive promotion operations to focus on: The economic viability of the Island and of the facilities and services available on • Destination marketing and revenue The RIA is challenged by several strategic the financial sustainability of the RIA as the Island. The ‘user pays’ principle will be issues that need to be managed to achieve an agency are paramount to the long-term • Improving the Island’s infrastructure adopted as much as practical to ensure its objectives. Being long term issues they success of Rottnest Island as a tourism including accommodation, utilities and their sustainable supply. will require equally long term solutions. and recreational destination. The following transport facilities An outline of the issues is provided below The Island’s unique heritage, landscapes strategies will be implemented to achieve • Vital infrastructure, such as along with brief description on how they and biodiversity are the very values that these desired outcomes. utilities, roads, jetties and amenities, are being managed and addressed. attract visitors to the Island, and the need to meet expectation of local and The RIA proposes to change its ‘business to maintain and enhance these values inbound tourists model’ to reflect the changes outlined in Rottnest Island Management will underpin the way forward. These the new RIMP. As a general principle, the • Sharing outsourcing of key functions Plan 2014-19 values will not be compromised during the RIA will not provide commercial products to provide a better financial return to implementation of the RIMP. The Rottnest Island Management Plan on the Island. The RIA’s main role will the RIA. 2014-19 (RIMP) is now in its second year of During its first full year of implementation be the Island’s ‘manager’, rather than an implementation. The RIMP addresses the significant progress was achieved. A operator or supplier of tourism services. challenges facing the Island’s management focus for the remaining period will be the However, it will continue to fulfill its in the context of a fluctuating economy implementation of major accommodation legislative functions. The RIA will also need and often fickle tourism market. Ever- developments and significant progress to identify new forms of revenue, based changing market and environmental towards sustainability by reducing non- on the economic health of the Island, to conditions affect the Island’s appeal and renewable resource usage and increasing replace any commercial revenues foregone competitiveness. Volatility in the world the economic viability of the Island. in the new model. economy; competition from overseas The challenges going forward will be markets and changing tourism trends are the economic climate and local and some of the factors that have to be taken national tourism trends which will impact into consideration. decisions about the timing and quality of The RIMP’s main objective is to increase developments as well as the acceptance of visitation through the provision of better the community for change on the Island. accommodation, infrastructure and

Rottnest Island Authority Annual Report 2015-2016 53 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators Disclosures & Legal Compliance

Human Resources

The complex nature of the RIA’s business is Workplace Behaviour The RIA continues to promote a workplace reflected in a wide variety of occupational In 2015-16 the RIA placed a large which encourages staff learning and groups within the organisation which range emphasis on effectively managing development. Staff received support for from customer service representatives to unhealthy workplace behaviour such as attendance at workshops and seminars, conservation officers, professionals and discrimination, harassment and bullying. study assistance for formal studies, administrators. The seasonal nature of the Actions included discussion forums on this professional development assistance, and business is an additional challenge for the topic which involved all staff and led by the conference attendance. RIA as it strives to match its workforce to CEO, a survey which 97 staff completed, Substantive Equality meet visitor demands. formal investigations into concerns raised, The RIA is committed to the elimination The RIA employed 72 (FTE) permanent, and the distribution of informational of systemic discrimination from all its 18 fixed term (FTE) and 15 casual staff material to staff through various forms policies, practices and services. The in 2015-16. The mix of employment types of communication outlining expected Human Resource Officer acts as a in the employee profile reflects the RIA’s behaviours and processes for dealing with Grievance Officer, to be the first point continued commitment to flexible work unhealthy workplace behaviour. A Grievance of contact to deal with complaints practices whilst at the same time meeting Resolution Policy and Workplace Issues and related to inappropriate and potentially the seasonal demands of the RIA’s Grievance Resolutions Guidelines were also unlawful behaviour. visitor services. developed to provide a framework for staff to better deal with these issues. Wellness June June Year ending Workforce Planning and Staff The health and wellbeing of employees is 2016 2015 Development of significant importance to the Rottnest Permanent 72 82 The RIA has a Workforce and Diversity Plan Island Authority and in 2015 a staff which helps identify current and future wellbeing program was created. Called Fixed Term 18 25 workforce needs. The plan incorporates “Bounce”, the program covers themes of Casual 15 26 strategies that respond to sector-wide physical health, financial benefit and social workforce issues and is combined with and emotional wellbeing. “Bounce” gives Employee Profile our Equal Opportunity Management Plan. RIA employees access to resources such During 2015-2016 recruitment processes Central to this plan are the priorities as an employee assistance program, free resulted in 13 appointments. 7 permanent to attract and retain appropriately sessions and seminars covering a wide or fixed-term staff elected to leave the RIA skilled staff, offer ongoing development range of topics such as superannuation, in 2015-2016, representing a 19% staff opportunities and identify emerging financial advice, discounted private health turnover from last financial year. leaders for succession planning. insurance and gym memberships.

54 Rottnest Island Authority Annual Report 2015-2016 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

The RIA promotes physical health and Compliance with Public Unauthorised use teamwork with the reimbursement of entry Sector Standards and of credit cards fees to various events such as the Rottnest Channel Swim, Race Around Rottnest Ethical Codes The Authority is required, under TI 903 and other events held on Rottnest Island The RIA strives to fully comply with all (13iv), to report the use of corporate and Perth. The “Bounce” program is used Public Sector Standards. The RIA focused credit cards for personal use. In the 2016 to raise awareness for important health its attention on continuing to implement a financial year there were five instances, issues and not for profit organisations such high standard of ethical decision making. totalling $548, where personal purchases as Dry July, Movember, Cancer Council, To achieve this, the RIA runs regular were inadvertently made. Of that total $74 Drink Responsibly and various others. Accountable and Ethical Decision Making was paid within five working days and $474 was paid after that period. In all Staff recognition & behavioural courses. Currently 88% of permanent and cases there was no grounds for disciplinary expectations fixed term staff have completed this course. action. The majority of the balance was In 2015 the RIA implemented an on-the- settled within the reporting period with a spot recognition program where staff Government Building $9 transaction settled within five working recognise their peers for their efforts. Training Policy days of the end of the reporting period. This program has been successful and complements the annual staff For the Financial Year 2015-16 there were achievement awards which are handed out no RIA contracts which met the financial every year in December. criteria of The Government Building Training Policy (the GBT Policy). However, The Rottnest Island Authority ensures as good practice the RIA still includes the Performance Agreements are completed commitment to employing construction for all fixed term and permanent apprentices and trainees in large contracts employees, outlining business objectives, which do not otherwise meet the criteria, learning and development priorities and for example within the Wastewater goals, and upholding RIA behavioural Treatment Plant upgrade contracts. values. 99% of all fixed term and permanent employees have completed an Note: The major facilities and utilities Individual Performance Agreement with contract (which includes maintenance) their direct manager for the 2015-16 year. was awarded in the 2014-15 year.

Rottnest Island Authority Annual Report 2015-2016 55 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

Financial Summary Target 2015-16 Result 2015-16 The Authority’s 2015-16 result shows an accounting profit of $2.42 million. The result is significantly impacted by $850k of government appropriations received for work Total cost of services - $41.8 million $39.5 million carried out in 2014-15 relating to asbestos mitigation and rectification of electrical Profit/(Loss) - $0.1 million $2.3 million non-compliances associated with the roofing rectification program. In 2015-16 a further $4.4 million was spent on this program. Net increase/(decrease) in cash held ($3.3 million) $2.6 million

The Authority’s operating revenue has increased by 6.2% this year during an ongoing difficult economic environment. This is mainly due to increases in the Authority’s main The following table of financial ratios highlight the Authority’s financial performance over income streams of accommodation $1.0 million and admission fees $0.9 million collected recent years: from ferry passengers.

One of the Authority’s key challenges remains the management of its operating costs, Financial Ratio 2016 2015 2014 2013 some of which continue to increase above the rate of inflation. In line with its approved financial strategies, the Authority has been and will continue to monitor and control its Operating revenue per visitor $99.02 $99.26 $99.33 $101.84 cost base which has resulted in stable operating expenditure levels. Profit margin percentage The Authority has also invested $9.4 million in works relating to essential infrastructure (Profit before depreciation and 13.0% 8.3% 12.3% 14.2% and holiday tourism facilities in order to improve visitor experiences and compliance extraordinary items as a % of revenue) matters. The significant increase on prior years includes $4.5 million on a new waste water Cash ratio 0.93 1.08 1.06 1.22 treatment plant. (Coverage of current liabilities with cash) The net cashflow for the 2015-16 financial year was a net inflow of $2.6 million. This inflow was mainly driven by the increase offset by the aforementioned spend on the waste water treatment plant which is fully funded from cash reserves.

56 Rottnest Island Authority Annual Report 2015-2016 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

Other Financial Disclosures For the year ended 30 June 2016

Pricing Policies Capital Investment • Works to improve the visitor experience at heritage sites including Oliver Hill The Rottnest Island Authority Act 1987 The RIA has invested $9.4 million during Battery Works, Wadjemup lighthouse; requires that overall revenue is adequate the 2015-16 financial year into the ongoing • Improvements to the nursery to to meet the Authority’s expenditure. upgrade of Rottnest Island’s holiday and support the ongoing revegetation Therefore, the Act allows the Authority to tourist facilities, infrastructure, compliance program and replacement of have a pricing policy whereby commercial and essential services. heritage trees; services are priced to recover the cost Investments include: of its commercial and non-commercial • Continuing the development of the • Continuing the upgrade and works to operations, such as environmental and Wadjemup Walk Trail. a new Waste Water Treatment Plant; cultural heritage management. Prices are • Continuing the refurbishment set to achieve these objectives, and are Board and Committee Remuneration regularly reviewed, taking into account and upgrade works to visitor accommodation; market sensitivities and competitiveness. ROTTNEST ISLAND AUTHORITY • Aboriginal Burial Ground Works; The prevailing fees and charges are either Type of Period of Gross/actual Position Name ‘unregulated’, such as accommodation • Commencement of a program of remuneration membership remuneration renewable energy infrastructure and recreational services, and only require Authority approval, or ‘regulated’, such as in conjunction with ARENA/Hydro Chair John Driscoll Annual Dec 2010 – Jun 2016 $29,650 Tasmania; admission and mooring fees, which are Deputy Chair Stephen Lauder Annual Jul 2012 – Oct 2015 $17,000 proposed by the Authority for approval by • Improvements to essential Deputy Chair Hamish Beck Annual Mar 2016 – Feb 2019 $1,167 Government. infrastructure including power Member Robert McDonald Annual Jul 2011 – Jun 2016 $14,000 generation and distribution, rubbish Several fees and charges were increased in truck, fire mains, ablution facilities, Member Suzanne Hunt Annual May 2010 – Jun 2016 $14,000 2015-16, mostly in line with the Consumer provision of potable water; Member Sally Hollis Annual Dec 2010 – Nov 2016 $14,000 Price Index, consistent with the Authority’s strategic objectives. • Improvements to visitor facilities Member Dr Peter Hick Annual Aug 2011 – Jul 2016 $14,000 including ablution facilities, replacement of ageing beds and other essential furniture;

Rottnest Island Authority Annual Report 2015-2016 57 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

Other Legal Requirements For the year ended 30 June 2016

Disability Access and Inclusion People with disabilities receive People with disabilities have the same People with disabilities have the same Plan Outcomes information from the Rottnest Island opportunities as other people to opportunities as other people to Authority in a format that will enable make complaints to the Rottnest participate in any public consultation by The RIA continued providing access-friendly them to access the information as Island Authority. the Rottnest Island Authority. services for people with disabilities in line readily as other people. with the seven outcomes of its Disability The RIA actively encourages people to Public consultation is advertised in Access and Inclusion Plan 2012-2017. The RIA supports the "You’re Welcome provide feedback and offers a variety of the media and on the RIA’s website. WA" access initiative. People can find means for this: telephone, post, email and Feedback can be provided in electronic People with disabilities have the same information about disabled access on fax or by completing the ‘contact us’ form or written format. opportunities as other people to access Rottnest Island on the RIA’s website at on the website. All formal complaints are the services of and any events organised People with disabilities have the www.rottnestisland.com registered and followed up appropriately in by the Rottnest Island Authority. same opportunities as other people order to achieve resolution. Alternative format information is provided to access employment at Rottnest All events and information about Rottnest via virtual tours of accommodation units People with disabilities receive the Island Authority. Island are developed with consideration and free audio podcasts and Apps about same level and quality of service from for people with special needs. The The RIA has inclusive and accessible the Island and its history. The website the staff of the Rottnest Island Authority RIA continued its commitment to the recruitment practices and provides complies with the State Government as other people. Companion Card program for Island tours, appropriate support to employees with Access Guidelines for Information, Services transport and bike hire. Providing a friendly and welcoming service disabilities to carry out their employment and Facilities. is one of the RIA’s values and operating responsibilities. The RIA encourages People with disabilities have the same principles. Regular staff training ensures employees to disclose their disability, opportunities as other people to access that customers receive the same level and provides flexible working arrangements the buildings and other facilities of the quality of service. where possible and is constantly striving to Rottnest Island Authority. improve disability education and awareness. The RIA’s Sustainable Development Guidelines require consideration of disability access for all proposals. Access-friendly accommodation is available for those requiring this facility as are motorised wheelchairs (gophers), adult 'trikes' and tandem bikes and a bus with wheelchair lift / coach with wheelchair hoist.

58 Rottnest Island Authority Annual Report 2015-2016 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

Compliance with Public Sector Recordkeeping Plan Occupational Safety, Health Standards and Ethical Codes and Injury Management The RIA’s Recordkeeping Plan was • Ensuring the RIA Induction The RIA continues to fully comply with all approved by the State Records Program provides new employees In accordance with the Occupational Public Sector Standards. Commission in December 2005. A with information regarding Safety and Heath Act 1984, the Authority review was undertaken and an updated their recordkeeping roles and and its Executive continues to be The RIA focused its attention on Recordkeeping Plan was provided to the responsibilities. committed to providing and maintaining continuing to implement a high standard State Records Office in June 2011. The a safe and healthy environment for its of ethical decision making. To achieve this, • Ensuring all new staff successfully next update to the Recordkeeping Plan will visitors, staff, volunteers and contractors the RIA runs an annual Accountable and complete an online Recordkeeping be provided to the State Records Office in where the risk of harm is as low as Ethical Decision Making (AEDM) course. Awareness Training course. December 2016. reasonably possible. 10 employees completed the Accountable • Providing all relevant employees with and Ethical Decision Making course in Within the RIA, recordkeeping compliance HPRM Records Management training. With the implementation of the Facilities, 2015 bringing the total of fixed term and is achieved by: • Regularly providing employees Utilities Support Services (FUSS) permanent employees to have completed • Maintaining the system infrastructure with information on contemporary management contract, the Work Health the course to 88%. at latest release levels to ensure recordkeeping practices. & Safety (WHS) function within the RIA has been largely included within its scope. equivalence with required standards. • Providing ongoing assistance to HPRM Risk Management has been retained as an • Regularly auditing the use of the users. internal planning function. HPRM recordkeeping system to ensure its effectiveness and efficiency in Improvements have been made to the meeting compliance and operational WHS and Visitor Risk Management (VRM) requirements. systems to better capture management of insurance and workers compensation related activities and policy related to health and wellbeing in addition to WHS legislation and the Occupational Health & Safety (OHS) committee.

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Injury Management System Actual results Results against target Measure The Authority has an injury management 2014-15 2015-16 Target Comment on result policy, which specifies that it will comply with all of the requirements of the Workers’ Number of fatalities 0 0 0 met target Compensation and Injury Management 0-10% reduction Lost Time Injury and/or disease incidence rate 1.80% 0.91% met target in 2015 Act 1981, including the development of over past 3 yrs effective return to work plans. 0-10% reduction Reduced LTI's Lost time injury and/or disease severity rate 10.10% 5.05% over past 3 yrs over past year In June 2016, a decision has been made Percentage of Injured workers returned to work to reinstate the Occupational Safety & (a) within 13 weeks Health Committee (OSHC) whose terms of greater than (b) within 26 weeks 100% 100% 100% achieved reference include: or equal to 80% Percentage of managers trained in Occupational safety, greater than 25%- limited training • Keep information on workplace 50% 25% hazards, general safety information and Health and Injury management responsibilities or equal to 80% achieved in 2015 reference material in a place readily • Ensure emergency procedures and accessible to employees; Data Definitions standard operating procedures are • Review all Incident/Hazard Reports Fatalities: Number of compensated work related fatalities. prepared and implemented; and Near-Miss Reports; • Monitor the safety performance of Lost time injury or disease: The number of lost time injury/disease claims where one • Ensure that corrective action is taken contractors and their compliance day/shift or more was estimated to be lost following accident investigations and with established procedures and on claims lodged in the financial year. reports; requirements; Severe Claims: The number of severe injuries (estimated 60 days or more lost from • Consider changes or intended changes • Monitor progress in meeting overall work). An injury resulting in death is considered to work practices or processes which targets and objectives; to have accounted for 60 days or more lost. may affect the safety and health of • Provide accurate and timely feedback employees; Severity Rate: The number of Severe Claims divided by the number of lost time injury/ to all employees on safety and health • Monitor and publish accident statistics; disease claims multiplied by 100. matters; • Carry out workplace inspections; Invalid Claims: Cancelled and Declined claims are excluded, however claims with actual • Promote safety and health awareness lost time recorded are included even though • Provide recommendations for generally. employee safety and health training; a subsequent approval may have been declined.

60 Rottnest Island Authority Annual Report 2015-2016 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

Advertising Financial Estimates 2016-17

As required under Treasurer’s Instruction 953 the annual financial estimates for the Advertising Agencies Nil Rottnest Island Authority for the 2016-17 financial year are provided in the following table: Market Research Painted Dog $155,490 Rottnest Island Authority Operating Budget 2016-17 Polling Nil Nil 2016-17 2015-16 Direct Mail Nil Nil $'000's $'000's Optimum Media Decisions Media Advertising $318,744 Income Scoop Publishing Revenue Social Media Nil Sales 150 189 Design Identity Creative $45,556 Provision of services 34,068 32,456 Commonwealth grants and contributions - - Interest revenue 800 780 Loss on disposal of non-current assets - - Other revenue 417 194 Total Income 35,435 33,619 Note: Expenses The RIA is responsible for destination marketing for the Island as a whole. Cost of sales 378 96 Employee benefits expense 10,796 11,588 Supplies and services 25,729 25,587 Depreciation and amortisation expense 5,289 4,966 Finance costs 300 264 Accommodation expenses 424 455 Loss on disposal of non-current assets - - Other expenses 1,048 332 Total Expenses 43,964 43,288

Profit/(Loss) before grants and subsidies from (8,529) 9,669 State Government Grants and subsidies from State Government 8,652 9,700 Services received free of charge 24 24 Profit/(Loss) for the period 147 55

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Certification of Financial Statements For the year ended 30 June 2016

The accompanying financial statements of the Rottnest Island Authority have been prepared in compliance with the provisions of the Financial Management Act 2006 from proper accounts and records to present fairly the financial transactions for the financial year ended 30 June 2015 and the financial position as at 30 June 2016.

At the date of signing we are not aware of any circumstances which would render the particulars included in the financial statements misleading or inaccurate.

John Driscoll Robert McDonald Craig Spence Chairman Member Chief Finance Officer 19 September 2016 19 September 2016 19 September 2016

62 Rottnest Island Authority Annual Report 2015-2016 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators

Independent Audit Opinion

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Independent Audit Opinion

64 Rottnest Island Authority Annual Report 2015-2016 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators Financial Statements Statement of Comprehensive Income For the year ended 30 June 2016

Note 2016 2015 Note 2016 2015 $000 $000 $000 $000

INCOME Revenue Sales 6 153 164 OTHER COMPREHENSIVE INCOME Provision of services 7 33,393 31,458 Items not reclassified subsequently Commonwealth grants and contributions 8 - 38 to profit or loss Interest revenue 9 806 821 Changes in asset revaluation surplus 33 8,836 (1,366) Other revenue 11 381 413 Total other comprehensive income 8,836 (1,366) TOTAL INCOME 34,733 32,894 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 11,256 (2,550) EXPENSES Cost of sales 6 87 162 See also note 43 ‘Schedule of Income and Expenses by Service’ Employee benefits expense 12 10,168 11,227 Supplies and services 13 26,884 23,565 The Statement of Comprehensive Income should be Depreciation and amortisation expense 14 4,644 4,496 read in conjunction with the accompanying notes. Finance costs 15 263 244 Accommodation expenses 16 444 473 Loss on disposal of non-current assets 10 233 69 Other expenses 17 1,092 1,061 TOTAL EXPENSES 43,815 41,297

Profit/(Loss) before grants and subsidies from (9,082) (8,403) State Government

Grants and Subsidies from State Government 18 11,467 7,166 Services received free of charge 19 35 53 PROFIT/(LOSS) FOR THE PERIOD 2,420 (1,184)

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Statement of Financial Position As at 30 June 2016

Note 2016 2015 Note 2016 2015 $000 $000 $000 $000

ASSETS LIABILITIES Current Assets Current Liabilities Cash and cash equivalents 34 5,610 2,921 Payables 29 10,685 4,926 Inventories 20 172 175 Borrowings 30 - 22 Receivables 21 1,803 1,402 Provisions 31 2,023 2,779 Other financial assets 22 15,750 7,840 Other current liabilities 32 11,757 11,211 Other assets 23 119 18 Total Current Liabilities 24,465 18,938 TOTAL CURRENT ASSETS 23,454 12,356 Non-Current Liabilities Non-Current Assets Provisions 31 652 671 Property, plant and equipment 24 227,351 215,160 Other non-current liabilities 32 961 1,099 Infrastructure 25 26,190 24,638 Total Non-Current liabilities 1,613 1,770 Intangible assets 27 1,663 1,874 TOTAL LIABILITIES 26,078 20,708 Receivables 21 96 100 NET ASSETS 254,926 243,670 Other financial assets 22 2,250 10,250 Total Non-Current Assets 257,550 252,022 EQUITY TOTAL ASSETS 281,004 264,378 Contributed equity 33 50,032 50,032 Reserves 33 197,268 188,432 Retained earnings 33 7,626 5,206 TOTAL EQUITY 254,926 243,670

The Statement of Financial Position should be read in conjunction with the accompanying notes.

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Statement of Changes in Equity For the year ended 30 June 2016

Contributed Retained Note Reserves Total Equity equity earnings $000 $000 $000 $000

Balance at 1 July 2014 33 50,032 189,798 6,390 246,220 Profit / (Loss) - - (1,184) (1,184) Other comprehensive income - (1,366) - (1,366) Total comprehensive income for the period - (1,366) (1,184) (2,550) Balance at 30 June 2015 50,032 188,432 5,206 243,670

Balance at 1 July 2015 50,032 188,432 5,206 243,670 Gain - - 2,420 2,420 Other comprehensive income - 8,836 - 8,836 Total comprehensive income for the period - 8,836 2,420 11,256 Balance at 30 June 2016 50,032 197,268 7,626 254,926

The Statement of Changes in Equity should be read in conjunction with the accompanying notes.

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Statement of Cash Flows For the year ended 30 June 2016

Note 2016 2015 Note 2016 2015 $000 $000 $000 $000

CASH FLOWS FROM OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Receipts Receipts Sale of goods and services 153 164 Proceeds from sale of non-current physical assets - 5 Provision of services 33,887 31,649 Proceeds from sale of investments - - Commonwealth grants and contributions - 38 Payments Interest received 912 822 Proceeds from sale of non-current physical assets - - GST receipts on sales 3,476 3,205 Purchase of non-current physical assets (9,405) (3,301) Other receipts 381 413 Net cash (used in) investing activities (9,405) (3,296)

Payments CASH FLOWS FROM FINANCING ACTIVITIES Employee benefits (11,072) (10,871) Receipts Supplies and services (21,573) (23,717) Proceeds from Borrowings - - Finance costs (264) (244) Payments GST payments on purchases (3,693) (2,797) Repayment of Borrowings (22) (116) GST payments to taxation authority (121) (351) Net cash (used in) financing activities (22) (116) Other payments (1,527) (1,031) Net cash provided by/(used in) operating activities 34 559 (2,720) CASH FLOWS FROM STATE GOVERNMENT Grants and subsidies from State Government 11,467 7,166 Net cash provided by State Government 11,467 7,166

Net increase in cash and cash equivalents 2,599 1,034 Cash and cash equivalents at the beginning of the period 21,011 19,977 CASH AND CASH EQUIVALENTS AT THE END 34 23,610 21,011 OF THE PERIOD

The Statement of Cash Flows should be read in conjunction with the accompanying notes.

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Notes to the Financial Statements For the year ended 30 June 2016

Note 1. Australian Accounting Standards Note 2. Summary of significant accounting policies General (a) General statement The Rottnest Island Authority’s (“the Authority”) financial statements for the year ended The Authority is a not-for-profit reporting entity that prepares general purpose 30 June 2016 have been prepared in accordance with Australian Accounting Standards. financial statements in accordance with Australian Accounting Standards, The term ‘Australian Accounting Standards’ includes Standards and Interpretations issued the Framework, Statements of Accounting Concepts and other authoritative by the Australian Accounting Standard Board (AASB). pronouncements of the AASB as applied by the Treasurer's Instructions. Several of these are modified by the Treasurer's Instructions to vary application, disclosure, The Authority has adopted any applicable, new and revised Australian Accounting format and wording. Standards from their operative dates. The Early adoption of standards Financial Management Act 2006 and the Treasurer's Instructions impose legislative provisions that govern the preparation of financial statements and take The Authority cannot adopt an Australian Accounting Standard early unless precedence over Australian Accounting Standards, the Framework, Statements of specifically permitted by TI 1101 Application of Australian Accounting Standards and Accounting Concepts and other authoritative pronouncements of the AASB. Other Pronouncements. Partial Exemption permitting early adoption of AASB2015-7 Amendments to Australian Accounting Standards – Fair Value Disclosures of Not-for-Profit Where modification is required and has had a material or significant financial effect Public Sector Entities has been granted. Aside from AASB 2015-7, there has been no early upon the reported results, details of that modification and the resulting financial adoption of any other Australian Accounting Standards that have been issued or amended effect are disclosed in the notes to the financial statements. (but not operative) by the Authority for the annual reporting period ended 30 June 2016. (b) Basis of preparation

The financial statements have been prepared on the accrual basis of accounting using the historical cost convention, except for land, buildings, infrastructure and artworks which have been measured at fair value.

The accounting policies adopted in the preparation of the financial statements have been consistently applied throughout all periods presented unless otherwise stated.

The financial statements are presented in Australian dollars and all values are rounded to the nearest thousand dollars ($’000).

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Notes to the Financial Statements For the year ended 30 June 2016

(b) Basis of preparation contd (e) Income

Note 3 ‘Judgements made by management in applying accounting policies’ discloses Revenue recognition judgements that have been made in the process of applying the Authority’s Revenue is recognised and measured at the fair value of consideration received or accounting policies resulting in the most significant effect on amounts recognised in receivable. Revenue is recognised for the major business activities as follows: the financial statements. Sale of goods Note 4 ‘Key sources of estimation uncertainty’ discloses key assumptions made Revenue is recognised from the sale of goods and disposal of other assets when concerning the future, and other key sources of estimation uncertainty at the end of the significant risks and rewards of ownership transfer to the purchaser and can be the reporting period, that have a significant risk of causing a material adjustment to measured reliably. the carrying amounts of assets and liabilities within the next financial year. Provision of Services (c) Reporting entity Revenue is recognised by reference to the stage of completion of the transaction. The reporting entity comprises the Rottnest Island Authority. For example, Visitor Accommodation revenue is recognised over the course of the (d) Contributed equity Visitors’ stay on the Island. Admissions income is recognised when the invoice is AASB Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public issued to the ferry companies. Other revenue, including Housing and Business rental Sector Entities requires transfers in the nature of equity contributions, other than income, is recognised as the service is provided. as a result of a restructure of administrative arrangements, to be designated by Interest the Government (the owner) as contributions by owners (at the time of, or prior to transfer) before such transfers can be recognised as equity contributions. Revenue is recognised as the interest accrues. Capital appropriations have been designated as contributions by owners by TI 955 Grants, donations, gifts and other non-reciprocal contributions Contributions by Owners made to Wholly Owned Public Sector Entities and have Revenue is recognised at fair value when the Authority obtains control over the assets been credited directly to Contributed equity. comprising the contributions, usually when cash is received. The transfers of net assets to/from other agencies, other than as a result of a Other non-reciprocal contributions that are not contributions by owners are recognised restructure of administrative arrangements, are designated as contributions by at their fair value. Contributions of services are only recognised when a fair value can owners where the transfers are non-discretionary and non-reciprocal. be reliably determined and the services would be purchased if not donated.

Gains Realised and unrealised gains are usually recognised on a net basis. These include gains arising on the disposal of non-current assets and some revaluations of non-current assets.

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Notes to the Financial Statements For the year ended 30 June 2016

(f) Property, plant and equipment and infrastructure Capitalisation/Expensing of assets Items of property, plant and equipment and infrastructure costing $5,000 or more are Land and buildings are independently valued annually by the Western Australian Land recognised as assets and the cost of utilising assets is expensed (depreciated) over their Information Authority (Valuation Services) and recognised frequently to ensure that useful lives. Items of property, plant and equipment and infrastructure costing less than the carrying amount does not differ materially from the asset’s fair value at the end of $5,000 are immediately expensed direct to the Statement of Comprehensive Income the reporting period. Where market-based evidence is available, the fair value of land (other than where they form part of a group of similar items which are significant in total). and buildings is determined on the basis of current market buying values determined by reference to recent market transactions. When buildings are revalued by reference to Initial recognition and measurement recent market transactions, the accumulated depreciation is eliminated against the gross Property, plant and equipment and infrastructure are initially recognised at cost. carrying amount of the asset and the net amount restated to the revalued amount.

For items of property, plant and equipment and infrastructure acquired at no cost or for Fair value of infrastructure has been determined by reference to the depreciated nominal cost, the cost is the fair value at the date of acquisition. replacement cost (existing use basis) as the assets are specialised and no market-based evidence of value is available. Land under infrastructure is included in land reported under Subsequent measurement note 24 ‘Property, plant and equipment. Independent valuations are obtained every 3 to 5 Subsequent to initial recognition as an asset, the revaluation model is used for the years for infrastructure. measurement of land, buildings and infrastructure and historical cost for all other When infrastructure is revalued, the accumulated depreciation is restated proportionately property, plant and equipment. Land, buildings and infrastructure are carried at fair value with the change in the gross carrying amount of the asset so that the carrying amount of less accumulated depreciation (buildings and infrastructure only) and accumulated the asset after revaluation equals its revalued amount. impairment losses. All other items of property, plant and equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses. The most significant assumptions in estimating fair value are made in assessing whether to apply the existing use basis to assets and in determining estimated economic life. Fair value of land and buildings is determined on the basis of existing use. This normally Professional judgement by the valuer is required where the evidence does not provide a applies where buildings are specialised or where land use is restricted. Fair value for clear distinction between market type assets and existing use assets. Refer to note 24 existing use assets is determined by reference to the cost of replacing the remaining ‘Property, plant and equipment’ and note 25 ‘Infrastructure’ for further information future economic benefits embodied in the asset, i.e. the depreciated replacement on revaluations. cost. Where the fair value of buildings is determined on the depreciated replacement De-recognition cost basis, the gross carrying amount and the accumulated depreciation are restated Upon disposal or de-recognition of an item of property, plant and equipment and proportionally. Fair value for restricted use land is determined by comparison with market infrastructure, any revaluation surplus relating to that asset is retained in the asset evidence for land with similar approximate utility (high restricted use land) or market revaluation surplus. value of comparable unrestricted land (low restricted use land).

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Notes to the Financial Statements For the year ended 30 June 2016

Asset revaluation surplus (g) Intangible assets The asset revaluation surplus is used to record increments and decrements on the Capitalisation/Expensing of assets revaluation of non-current assets as described in note 24 ‘Property, plant Acquisitions for intangible assets costing $5,000 or more and internally and equipment’. generated intangible assets costing $50,000 or more are capitalised. The cost of Depreciation utilising the assets is expensed (amortised) over their useful life. Costs incurred below these thresholds are immediately expensed directly to the Statement of All non-current assets having a limited useful life are systematically depreciated over Comprehensive Income. their estimated useful lives in a manner that reflects the consumption of their future economic benefits. Intangible assets are initially recognised at cost. For assets acquired at no cost or for nominal cost, the cost is their fair value at the date of acquisition. Depreciation is calculated using the straight line method, using rates which are reviewed annually. Estimated useful lives for each class of depreciable asset are: The cost model is applied for subsequent measurement requiring the asset to be carried at cost less any accumulated amortisation and accumulated Buildings 20 to 40 years impairment losses. Computers & Electronic Equipment 3 to 10 years Amortisation for intangible assets with finite useful lives is calculated for the period Furniture 3 to 5 years of the expected benefit (estimated useful life which is reviewed annually) on the

Plant & Vehicles 3 to 7 years straight line basis. All intangible assets controlled by the Authority have a finite useful life and zero residual value. Leasehold Improvements 10 to 15 years The expected useful lives for each class of intangible asset are: Infrastructure 5 to 50 years Software (a) 3 to 10 years Works of art and Cultural Heritage Assets controlled by the Authority are classified as property, plant and equipment. These are anticipated to have indefinite useful lives. Website Costs 3 to 5 years Their service potential has not, in any material sense, been consumed during the (a) Software that is not integral to the operation of any related hardware. reporting period and consequently no depreciation has been recognised.

Land is not depreciated.

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Notes to the Financial Statements For the year ended 30 June 2016

Computer software Software that is an integral part of the related hardware is recognised as property, annually to verify that the accumulated depreciation/amortisation reflects the level plant and equipment. Software that is not an integral part of the related hardware is of consumption or expiration of the asset’s future economic benefits and to evaluate treated as an intangible asset. Software costing less than $5,000 is expensed in the any impairment risk from falling replacement costs. year of acquisition. Intangible assets with an indefinite useful life and intangible assets not yet available Website costs for use are tested for impairment at the end of each reporting period irrespective of Website costs are charged as expenses when they are incurred unless they relate whether there is any indication of impairment. to the acquisition or development of an asset when they may be capitalised and The recoverable amount of assets identified as surplus assets is the higher of fair amortised. Generally, costs in relation to feasibility studies during the planning value less costs to sell and the present value of future cash flows expected to be phase of a website, and ongoing costs of maintenance during the operating phase derived from the asset. Surplus assets carried at fair value have no risk of material are expensed. Costs incurred in building or enhancing a website, to the extent that impairment where fair value is determined by reference to market-based evidence. they represent probable future economic benefits that can be reliably measured, are Where fair value is determined by reference to depreciated replacement cost, capitalised. surplus assets are at risk of impairment and the recoverable amount is measured. (h) Impairment of assets Surplus assets at cost are tested for indications of impairment at the end of each Property, plant and equipment, infrastructure and intangible assets are tested reporting period. for any indication of impairment at the end of each reporting period. Where there is an indication of impairment, the recoverable amount is estimated. Where the recoverable amount is less than the carrying amount, the asset is considered impaired and is written down to the recoverable amount and an impairment loss is recognised. Where an asset measured at cost is written down to recoverable amount, an impairment loss is recognised in profit or loss. Where a previously revalued asset is written down to recoverable amount, the loss is recognised as a revaluation decrement in other comprehensive income. As the Authority is a not-for-profit entity, unless an asset has been identified as a surplus asset, the recoverable amount is the higher of an asset’s fair value less costs to sell and depreciated replacement cost.

The risk of impairment is generally limited to circumstances where an asset’s depreciation is materially understated, where the replacement cost is falling or where there is a significant change in useful life. Each relevant class of assets is reviewed

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Notes to the Financial Statements For the year ended 30 June 2016

(i) Leases Finance lease rights and obligations are initially recognised, at the commencement of Initial recognition and measurement of financial instruments is at fair value which the lease term, as assets and liabilities equal in amount to the fair value of the leased normally equates to the transaction cost or the face value. Subsequent measurement item or, if lower, the present value of the minimum lease payments, determined at the is at amortised cost using the effective interest method. inception of the lease. The assets are disclosed as plant, equipment and vehicles under The fair value of short-term receivables and payables is the transaction cost or the face lease, and are depreciated over the period during which the Authority is expected to value because there is no interest rate applicable and subsequent measurement is not benefit from their use. Minimum lease payments are apportioned between the finance required as the effect of discounting is not material. charge and the reduction of the outstanding lease liability, according to the interest rate implicit in the lease. (k) Cash and cash equivalents For the purpose of the Statement of Cash Flows, cash and cash equivalent assets Operating leases are expensed on a straight line basis over the lease term as this comprise cash on hand and short-term deposits with original maturities of three represents the pattern of benefits derived from the leased assets. months or less that are readily convertible to a known amount of cash and which are (j) Financial instruments subject to insignificant risk of changes in value. In addition to cash and bank overdraft, the Authority has three categories of financial The Authority also has long-term deposits classified as Other Assets with original instrument: maturities of twelve months and over which are subject to insignificant risk of changes • Receivables; in value. • Term deposits; and (l) Accrued salaries • Financial Liabilities measured at amortised cost. Accrued salaries (see note 29 ‘Payables’) represent the amount due to staff but unpaid Financial instruments have been disaggregated into the following classes: at the end of the financial year. Accrued salaries are settled within a fortnight of the • Financial Assets financial year end. The Authority considers the carrying amount of accrued salaries to • Cash and cash equivalents be equivalent to its net fair value. • Receivables (m) Inventories • Term deposits • Financial Liabilities Inventories are measured at the lower of cost and net realisable value. Costs are • Payables; assigned by the weighted average cost method. • Finance Lease Liabilities. Inventories not held for resale are measured at cost unless they are no longer required, in which case they are measured at net realisable value.

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Notes to the Financial Statements For the year ended 30 June 2016

(n) Receivables (q) Provisions Receivables are recognised at original invoice amount less an allowance for any Provisions are liabilities of uncertain timing or amount and are recognised where uncollectible amounts (i.e. impairment). The collectability of receivables is reviewed there is a present legal or constructive obligation as a result of a past event and when on an ongoing basis and any receivables identified as uncollectible are written-off the outflow of resources embodying economic benefits is probable and a reliable against the allowance account. The allowance for uncollectible amounts (doubtful estimate can be made of the amount of the obligation. Provisions are reviewed at the debts) is raised when there is objective evidence that the Authority will not be able end of each reporting period. to collect the debts. The carrying amount is equivalent to fair value as it is due for Provisions – employee benefits settlement within 30 days. All annual leave and long service leave provisions are in respect of employees’ (o) Payables services up to the end of the reporting period. Payables are recognised at the amounts payable when the Authority becomes Annual leave obliged to make future payments as a result of a purchase of assets or services. The carrying amount is equivalent to fair value, as settlement is generally within Annual leave is not expected to be settled wholly within 12 months after the end of 30 days. the reporting period and is therefore considered to be ‘other long-term employee benefits’. The annual leave liability is recognised and measured at the present value of (p) Borrowings amounts expected to be paid when the liabilities are settled using the remuneration All loans payable are initially recognised at fair value, being the net proceeds rate expected to apply at the time of settlement. received. Subsequent measurement is at amortised cost using the effective interest rate method. When assessing expected future payments consideration is given to expected future wage and salary levels including non-salary components such as employer superannuation contributions as well as the experience of employee departures and periods of service. The expected future payments are discounted using market yields at the end of the reporting period on national government bonds with terms to maturity that match, as closely as possible, the estimated future cash outflows.

The provision for annual leave is classified as a current liability as the Authority does not have an unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period.

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Notes to the Financial Statements For the year ended 30 June 2016

Long service leave Purchased leave The liability for long service leave is not expected to be settled wholly within 12 The provision for purchased leave relates to Public Service employees who have months after the end of the reporting period is recognised and measured at the entered into an agreement to self-fund up to additional four weeks leave per calendar present value of amounts expected to be paid when the liabilities are settled using year. The provision recognises the value of salary set aside for employees and is the remuneration rate expected to apply at the time of settlement. measured at the nominal amounts expected to be paid when liabilities are settled. The liability is measured on the same basis as annual leave. When assessing expected future payments consideration is given to expected future wage and salary levels including non salary components such as employer Time in lieu superannuation contributions, as well as the experience of employee departures The flexible working hours provisions of the Authority’s enterprise bargaining and periods of service. The expected future payments are discounted using market agreement introduced the concept of annualised hours. At the end of the settlement yields at the end of the reporting period on national government bonds with terms to period, when actual hours worked exceed the average aggregate ordinary hours, the maturity that match, as closely as possible, the estimated future cash outflows. employee will be paid for the excess hours, or the employee will take time in lieu at a Unconditional long service leave provisions are classified as current liabilities as the mutually agreed time. Authority does not have an unconditional right to defer settlement of the liability Superannuation for at least 12 months after the end of the reporting period. Pre-conditional and The Government Employees Superannuation Board (GESB) and other fund providers conditional long service leave provisions are classified as non-current liabilities administer public sector superannuation arrangements in Western Australia in because the Authority has an unconditional right to defer the settlement of the accordance with legislative requirements. Eligibility criteria for membership in liability until the employee has completed the requisite years of service. particular schemes for public sector employees vary according to commencement Sick leave and implementation dates.

Liabilities for sick leave are recognised when it is probable that sick leave paid in the Eligible employees contribute to the Pension Scheme, a defined benefit pension future will be greater than the entitlement that will accrue in the future. scheme closed to new members since 1987, or the Gold State Superannuation Scheme Past history indicates that on average, sick leave taken each reporting period is (GSS), a defined benefit lump sum scheme closed to new members since 1995. less than the entitlement accrued. This is expected to continue in future periods. Accordingly, it is unlikely that existing accumulated entitlements will be used by employees and no liability for unused sick leave entitlements is recognised. As sick leave is non-vesting, an expense is recognised in the Statement of Comprehensive Income for this leave as it is taken.

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Notes to the Financial Statements For the year ended 30 June 2016

Superannuation (continued) Provisions – other

Employees commencing employment prior to 16 April 2007 who were not members Employment On-Costs of either the Pension Scheme or the GSS became non-contributory members of the Employment on-costs, including workers’ compensation insurance, are not employee West State Superannuation Scheme (WSS). Employees commencing employment benefits and are recognised separately as liabilities and expenses when the on or after 16 April 2007 became members of the GESB Super Scheme (GESBS). employment to which they relate has occurred. Employment on-costs are included From 30 March 2012, existing members of the WSS or GESBS and new employees as part of ‘Other expenses’ and are not included as part of the Authority’s ‘Employee have been able to choose their preferred superannuation fund provider. The Authority benefits expense’. The related liability is included in ‘Employment on-costs provision’. makes contributions to GESB or other fund providers on behalf of employees in (r) Superannuation expense compliance with the Commonwealth Government’s Superannuation Guarantee Superannuation expense is recognised in the profit or loss of the Statement of (Administration) Act 1992. Contributions to these accumulation schemes extinguish Comprehensive Income and comprises employer contributions paid to the GSS the Authority’s liability for superannuation charges in respect of employees who are (concurrent contributions), WSS, the GESBS, and other superannuation funds. not members of the Pension Scheme or GSS. (s) Assets and services received free of charge or for nominal cost The Pension Scheme and the pre-transfer benefit for employees who transferred to Assets or services received free of charge or for nominal cost that can be reliably the GSS are defined benefit schemes. These benefits are wholly unfunded and the measured are recognised as income at the fair value of the assets and/or the fair liabilities for future payments are provided at the end of the reporting period. The value of those services that the Authority would otherwise pay for. A corresponding liabilities under these schemes have been calculated separately for each scheme expense is recognised for services received. Receipts of assets are recognised in the annually by Mercer Actuaries using the projected unit credit method. Statement of Financial Position. The expected future payments are discounted to present value using market yields at Assets or services received from other State Government agencies are the end of the reporting period on national government bonds with terms to maturity separately disclosed under Income from State Government in the Statement of that match, as closely as possible, the estimated future cash outflows. Comprehensive Income. The GSS, the WSS, and the GESBS, where the current service superannuation charge (t) Comparative figures is paid by the Authority to the GESB, are defined contribution schemes. The liabilities Comparative figures are, where appropriate, reclassified to be comparable with the for current service superannuation charges under the GSS, the WSS, and the GESBS figures presented in the current financial year. are extinguished by the concurrent payment of employer contributions to the GESB.

The GSS is a defined benefit scheme for the purposes of employees and whole of government reporting. However, from an agency perspective, apart from the pre-transfer benefits, it is a defined contribution plan under AASB 119.

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Notes to the Financial Statements For the year ended 30 June 2016

Note 3. Judgements made by management in applying Note 4. Key sources of estimation uncertainty accounting policies Key estimates and assumptions concerning the future are based on historical experience The preparation of financial statements requires management to make judgements and various other factors that have a significant risk of causing a material adjustment to about the application of accounting policies that have a significant effect on the amounts the carrying amount of assets and liabilities within the next financial year. recognised in the financial statements. The Authority evaluates these judgements regularly. Estimated Depreciated Replacement Cost Operating lease commitments This methodology for the valuation of assets is considered the most appropriate for The Authority has entered into a lease for ICT Computer Equipment. It has been determined Rottnest Island as it is an ‘A’ Class Reserve which cannot readily be transacted and that the lessor retains substantially all the risks and rewards incidental to ownership of therefore, there is no market evidence, ruling out market valuation type methodologies. these Computers. Accordingly, these leases have been classified as operating leases. The buildings were accounted for by determining their depreciated replacement cost (DRC) via assessments undertaken by Landgate under the Valuation of Land Act 1978 and in accordance with the Valuer General’s Government Asset Valuation Policy 7.101 – measurement of asset values. The DRC technique estimates the current cost of reproduction or replacement of the buildings, on its current site, less deduction for physical deterioration and all relevant forms of obsolescence and optimisation. When assessing the value of land and improvements occupied by an entity, the assessment of the land component can have regard to the highest and best use of the land but the socio-political, legal, physical and economic restrictions affecting the properties ability to realise that potential and the economic constraint imposed on that use by the existing improvements is also taken into account. Consequently, some uncertainty exists as to the accuracy of its depreciation rates in respect of buildings. Long Service Leave Several estimations and assumptions used in calculating the Authority’s long service leave provision include expected future salary rates, discount rates, employee retention rates and expected future payments. Changes in these estimations and assumptions may impact on the carrying amount of the long service leave provision.

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Notes to the Financial Statements For the year ended 30 June 2016

Note 5. Disclosure of changes in accounting policy and estimates Future impact of Australian Accounting Standards not yet operative The Authority cannot early adopt an Australian Accounting Standard unless specifically Initial application of an Australian Accounting Standard permitted by TI 1101 Application of Australian Accounting Standards and Other The authority has applied the following Australian Accounting Standards effective, or Pronouncements. Consequently, the Authority has not applied early any of the following adopted, for annual reporting periods beginning on or after 1 July 2015 that impacted on Australian Accounting Standards that have been issued that may impact the Authority. Where applicable, the Authority plans to apply these Standards from their application date: the Authority. Operative AASB 2013-9 Amendments to Australian Accounting Standards – Conceptual for Framework, Materiality and Financial Instruments reporting Part C of this Standard defers the application of AASB 9 to 1 January periods beginning 2017. The application date of AASB 9 was subsequently deferred to 1 on/after January 2018 by AASB 2014 1. The Authority has not yet determined AASB 9 Financial Instruments 1 Jan 2018 the application or the potential impact of AASB 9. This Standard supersedes AASB 139 Financial AASB 2014-8 Amendments to Australian Accounting Standards arising from AASB Instruments: Recognition and Measurement, 9 (December 2014) – Application of AASB 9 (December 2009) and introducing a number of changes to accounting AASB 9 (December 2010) [AASB 9 (2009 & 2010)] treatments. This Standard makes amendments to AASB 9 Financial Instruments The mandatory application date of this Standard (December 2009) and AASB 9 Financial Instruments (December was amended to 1 January 2018 by AASB 2014 1 2010), arising from the issuance of AASB 9 Financial Instruments Amendments to Australian Accounting Standards. in December 2014. The Authority has not yet determined the The Authority has not yet determined the application or the potential impact of the Standard. application or the potential impact of AASB 9. AASB 15 Revenue from Contracts with Customers 1 Jan 2017 AASB 2015-3 Amendments to Australian Accounting Standards arising from the Withdrawal of AASB 1031 Materiality This Standard establishes the principles that the Authority shall apply to report useful information to This Standard completes the withdrawal of references to AASB 1031 users of financial statements about the nature, amount, in all Australian Accounting Standards and Interpretations, allowing timing and uncertainty of revenue and cash flows that Standard to effectively be withdrawn. There is no financial arising from a contract with a customer. The Authority impact. has not yet determined the application or the potential impact of the Standard.

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Notes to the Financial Statements For the year ended 30 June 2016

Operative Operative for for reporting reporting periods periods beginning beginning on/after on/after

AASB 16 Leases 1 Jan 2019 AASB 2014-1 Amendments to Australian Accounting Standards 1 Jan 2018 This Standard introduces a single lessee accounting Part E of this Standard makes amendments to AASB model and requires a lessee to recognise assets and 9 and consequential amendments to other Standards. liabilities for all leases with a term of more than 12 It has not yet been assessed by the Authority to months, unless the underlying asset is of low value. determine the application or potential impact of the The Authority has not yet determined the application or Standard. the potential impact of the Standard. AASB 2014-3 Amendments to Australian Accounting Standards 1 Jan 2016 AASB 1057 Application of Australian Accounting Standards 1 Jan 2016 – Accounting for Acquisitions of Interests in Joint Operations [AASB 1 & 11] This Standard lists the application paragraphs for each other Standard (and Interpretation), grouped where they The Authority establishes Joint Operations in pursuit of are the same. There is no financial impact. its objectives and does not routinely acquire interests in Joint Operations. Therefore, there is no financial impact AASB 2010-7 Amendments to Australian Accounting Standards 1 Jan 2018 on application of the Standard. arising from AASB 9 (December 2010) [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, AASB 2014-4 Amendments to Australian Accounting Standards – 1 Jan 2018 137, 139, 1023 & 1038 and Int 2, 5, 10, 12, 19 & 127] Clarification of Acceptable Methods of Depreciation and Amortisation [AASB 116 & 138] This Standard makes consequential amendments to other Australian Accounting Standards and Interpretations as a The adoption of this Standard has no financial result of issuing AASB 9 in December 2010. impact for the Model Authority as depreciation and amortisation is not determined by reference to revenue The mandatory application date of this Standard has generation, but by reference to consumption of future been amended by AASB 2012 6 and AASB 2014 1 to 1 economic benefits. January 2018. The Authority has not yet determined the application or the potential impact of the Standard.

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Notes to the Financial Statements For the year ended 30 June 2016

Operative Operative for for reporting reporting periods periods beginning beginning on/after on/after AASB 2014-5 Amendments to Australian Accounting Standards 1 Jan 2018 AASB 2014-10 Amendments to Australian Accounting Standards – 1 Jan 2016 arising from AASB 15 Sale or Contribution of Assets between an Investor and This Standard gives effect to the consequential its Associate or Joint Venture [AASB 10 & 128] amendments to Australian Accounting Standards This Standard amends AASB 10 and AASB 128 to (including Interpretations) arising from the issuance address an inconsistency between the requirements of AASB 15. The Authority has not yet determined the in AASB 10 and those in AASB 128 (August 2011), in application or the potential impact of the Standard. dealing with the sale or contribution of assets between AASB 2014-7 Amendments to Australian Accounting Standards 1 Jan 2018 an investor and its associate or joint venture. The arising from AASB 9 (December 2014) Authority has not yet determined the application or the potential impact of the Standard. This Standard gives effect to the consequential amendments to Australian Accounting Standards AASB 2015-1 Amendments to Australian Accounting Standards 1 Jan 2016 (including Interpretations) arising from the issuance – Annual Improvements to Australian Accounting of AASB 9 (December 2014). The Authority has not yet Standards 2012–2014 Cycle [AASB 1, 2, 3, 5, 7, 11, 110, determined the application or the potential impact of 119, 121, 133, 134, 137 & 140] the Standard. These amendments arise from the issuance of AASB 2014-9 Amendments to Australian Accounting Standards – 1 Jan 2016 International Financial Reporting Standard Annual Equity Method in Separate Financial Statements Improvements to IFRSs 2012–2014 Cycle in September [AASB 1, 127 & 128] 2014, and editorial corrections. The Authority has not yet determined the application or the potential impact This Standard amends AASB 127, and consequentially of the Standard. amends AASB 1 and AASB 128, to allow entities to use the equity method of accounting for investments in subsidiaries, joint ventures and associates in their separate financial statements. The Authority has not yet determined the application or the potential impact of the Standard.

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Notes to the Financial Statements For the year ended 30 June 2016

Operative Operative for for reporting reporting periods periods beginning beginning on/after on/after AASB 2015-2 Amendments to Australian Accounting Standards – 1 Jan 2016 AASB 2015-8 Amendments to Australian Accounting Standards – 1 Jan 2017 Disclosure Initiative: Amendments to AASB 101 Effective Date of AASB 15 [AASB 7, 101, 134 & 1049] This Standard amends the mandatory effective date This Standard amends AASB 101 to provide clarification (application date) of AASB 15 Revenue from Contracts regarding the disclosure requirements in AASB 101. with Customers so that AASB 15 is required to be Specifically, the Standard proposes narrow-focus applied for annual reporting periods beginning on or amendments to address some of the concerns after 1 January 2018 instead of 1 January 2017. The expressed about existing presentation and disclosure Authority has not yet determined the application or the requirements and to ensure entities are able to use potential impact of AASB 15. judgement when applying a Standard in determining AASB 2015-10 Amendments to Australian Accounting Standards – 1 Jan 2016 what information to disclose in their financial Effective Date of Amendments to AASB 10 & 128 statements. There is no financial impact. This Standard defers the mandatory effective date AASB 2015-6 Amendments to Australian Accounting Standards – 1 Jul 2016 (application date) of amendments to AASB 10 & 128 Extending Related Party Disclosures to Not-for-Profit that were originally made in AASB 2014-10 so that the Public Sector Entities [AASB 10, 124 & 1049] amendments are required to be applied for annual The amendments extend the scope of AASB 124 to reporting periods beginning on or after 1 January 2018 include application by not-for-profit public sector instead of 1 January 2016. The Authority has not yet entities. Implementation guidance is included to assist determined the application or the potential impact of application of the Standard by not-for-profit public AASB 2014-10. sector entities. There is no financial impact. AASB 2016-2 Amendments to Australian Accounting Standards – 1 Jan 2017 Disclosure Initiative: Amendments to AASB 107 This Standard amends AASB 107 Statement of Cash Flows (August 2015) to require disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes. There is no financial impact.

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Notes to the Financial Statements For the year ended 30 June 2016

Operative for reporting periods beginning on/after AASB 2016-3 Amendments to Australian Accounting Standards – 1 Jan 2018 Clarifications to AASB 15 This Standard clarifies identifying performance obligations, principal versus agent considerations, timing of recognising revenue from granting a licence, and, provides further transitional provisions to AASB 15. The Authority has not yet determined the application or the potential impact. AASB 2016-4 Amendments to Australian Accounting Standards 1 Jan 2017 – Recoverable Amount of Non-Cash-Generating Specialised Assets of Not-for-Profit Entities This Standard clarifies that the recoverable amount of primarily non-cash-generating assets of not-for- profit entities, which are typically specialised in nature and held for continuing use of their service capacity, is expected to be materially the same as fair value determined under AASB 13 Fair Value Measurement. The Authority has not yet determined the application or the potential impact.

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Notes to the Financial Statements For the year ended 30 June 2016

Note 6. Trading profit Note 8. Commonwealth grants and contribution 2016 2015 2016 2015 $000 $000 $000 $000 Sales 153 164 Department of Industry, Innovation, Science, Research - - Cost of Sales: and Tertiary Education Opening Inventory (28) (32) Department of Sustainability, Environment, Water, - 38 Purchases (92) (158) Population and Communities (120) (190) - 38 Closing Inventory 33 28 Cost of Goods Sold (87) (162) Note 9. Interest revenue Trading profit 66 2 2016 2015 $000 $000 Note 7. Provision of services Interest revenue 806 821 2016 2015 806 821 $000 $000 Accommodation charges 16,557 15,565 Interest revenue is sourced from cash and cash equivalents invested in interest bearing accounts. Facilities and tours 3,345 3,841 Admission fees 6,882 5,802 Note 10. Net gain/(loss) on disposal of non-current assets Lease and licence income 4,162 3,982 2016 2015 Utility charges 1,821 1,735 $000 $000 Housing rentals 626 533 Proceeds from disposal of non-current assets 33,393 31,458 Plant, vehicles and furniture - 5

Cost of disposal of non-current assets Plant, vehicles and furniture (233) (74) Net gain/(loss) (233) (69)

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Notes to the Financial Statements For the year ended 30 June 2016

Note 11. Other revenue Note 13. Supplies and services 2016 2015 2016 2015 $000 $000 $000 $000 Insurance Claims, fines and etc. 308 78 Contractors – Facilities Operations and Utilities 12,393 9,387 Non-Government grants 73 335 Contractors – Housekeeping 1,801 1,679 381 413 Contractors – Other 2,105 2,432 Administration expense 1,987 2,717 Note 12. Employee benefits expense Other Staffing Costs 455 534 Repairs and maintenance – Roofing Project 4,453 1,894 2016 2015 Repairs and maintenance – Other 2,115 3,440 $000 $000 Vehicle leasing 57 80 Wages and salaries (a) (c) 9,346 10,287 IT system development 166 220 Superannuation - defined contribution plans (b) 752 846 Marketing expenses 895 773 Superannuation - defined benefit plans (see note 31) 70 94 Other supplies & services costs 457 409 10,168 11,227 26,884 23,565

(a) Includes the value of the fringe benefit to the employee plus the fringe benefits tax component, leave entitlements including superannuation contribution component. (b) Defined contribution plans include West State, Gold State and GESB Super Scheme (contributions paid). (c) Includes redundancy expenses of $72,000 Employment on-costs expenses, such as workers’ compensation insurance and payroll tax are included at note 17 'Other Expenses'. Employment on-costs liability is included at note 31 'Provisions'.

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Notes to the Financial Statements For the year ended 30 June 2016

Note 14. Depreciation and amortisation expense Note 16. Accommodation expenses 2016 2015 2016 2015 $000 $000 $000 $000 Depreciation Lease rentals 352 407 Buildings 1,895 1,716 Cleaning 46 42 Computers and electronic equipment 259 265 Other accommodation expenses 46 24 Furniture 656 522 444 473 Plant and vehicles 308 544 Leasehold improvements 20 18 Note 17. Other expenses Infrastructure 1,195 1,148 Total depreciation 4,333 4,213 2016 2015 $000 $000 Amortisation Furniture, fittings and equipment maintenance 163 111 Intangible assets 311 283 Doubtful debts expense 30 30 Total amortisation 311 283 Employment on-costs (a) 680 773 Total depreciation and amortisation 4,644 4,496 Research and development 84 20 Other – Write-down of assets 33 28 Audit fees 102 99 Note 15. Finance costs 1,092 1,061 2016 2015 $000 $000 (a) Includes workers’ compensation insurance and payroll tax employment on-costs. The on-costs liability associated with the recognition of annual and long service leave liability is included at Finance lease charges - 5 note 31 'Provisions'. Superannuation contributions accrued as part of the provision for leave are Fees 263 239 employee benefits and are not included in employment on-costs. Finance costs expensed 263 244

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Notes to the Financial Statements For the year ended 30 June 2016

Note 18. Grants and subsidies from State Government Note 19. Services received free of charge 2016 2015 2016 2015 $000 $000 $000 $000 State Government Operating Grant 11,355 7,094 State Government Western Australian Planning Commission - 35 State Solicitors Office 35 53 Western Australian Police 12 - Total services received free of charge 35 53 Department of environment regulation - 31 Disability Services Commission 100 - Note 20. Inventories Department of planning - 6 11,467 7,166 2016 2015 $000 $000 State Government Operating Grant Current The State Government Operating Grant represents the contribution made under the Inventories held for resale Department of Treasury and Finance - Administered Transactions - Grants, Subsidies Visitors Centre Stock 27 21 and Transfer Payments, Item 15 - Rottnest Island Authority. Bike stock 6 7 33 28

Inventories not held for resale Materials 8 8 Fuels 131 139 139 147 Total Current 172 175

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Notes to the Financial Statements For the year ended 30 June 2016

Note 21. Receivables Note 22. Other financial assets 2016 2015 2016 2015 $000 $000 $000 $000 Current Current Term deposits 15,750 7,840 Receivables 606 516 Total current 15,750 7,840 GST receivable 785 271 Interest receivable 371 477 Non current Other receivables 75 214 Term deposits 2,250 10,250 Accrued Revenue 35 23 Total non-current 2,250 10,250 1,872 1,501 Allowance for impairment of receivables (69) (99) Total current 1,803 1,402 Note 23. Other assets 2016 2015 Non-Current $000 $000 Accrued Revenue 96 100 Current Total non-current 96 100 Prepayments 119 18 Total current 119 18 Reconciliation of changes in the allowance for impairment of receivables Balance at the start of period 99 69 Doubtful debts expense 30 30 Impairment losses reversed during the period - - Amounts written off during the period (60) - Balance at the end of period 69 99

The Authority does not hold any collateral or other credit enhancements as security for receivables.

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Notes to the Financial Statements For the year ended 30 June 2016

Note 24. Property, plant and equipment 2016 2015 2016 2015 $000 $000 $000 $000 Land Leased Plant and Vehicles At fair value (i) 135,377 129,067 At cost - 755 135,377 129,067 Accumulated Depreciation - (755) Buildings - - At fair value (i) 81,218 85,175 Leasehold Improvements Accumulated depreciation - (4,396) At cost 318 292 81,218 80,779 Accumulated depreciation (222) (203) Computers and electronic equipment 96 89 At cost 1,661 1,564 Works of art Accumulated depreciation (1,336) (1,092) At fair value 26 26 325 472 26 26 Furniture Work in progress At cost 5,122 4,830 At cost 8,214 2,525 Accumulated depreciation (3,880) (3,224) 8,214 2,525 1,242 1,606 227,351 215,160 Plant and Vehicles (excl leased vehicles) At cost 5,032 3,744 (i) Land and Buildings were re-valued as at 1 July 2015 by the Western Australian Land Information Accumulated depreciation (4,179) (3,148) Authority (Valuation Services).The fair value of all land and buildings has been determined by 853 596 applying the market value and depreciated replacement cost method. Refer note 2(f) ‘Property, Plant, Equipment and Infrastructure’.

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Notes to the Financial Statements For the year ended 30 June 2016

Reconciliations of the carrying amounts of property, plant and equipment at the beginning and end of the reporting period are set in the table below.

Computers and Leasehold electronic Plant and improve- Works Work in Land Buildings equipment Furniture vehicles ments of art progress Total 2016 $000 $000 $000 $000 $000 $000 $000 $000 $000 Carrying amount at start of period 129,067 80,779 472 1,606 596 89 26 2,525 215,160 Additions - 13 110 277 556 27 - 9,405 10,388 Transfers (a) ------(3,859) (3,859) Other disposals - (215) ------(215) Adjustments - (8) 2 15 9 - - 143 161 Classified as held for sale ------Revaluation increments 6,310 2,544 ------8,854 Depreciation - (1,895) (259) (656) (308) (20) - - (3,138) Carrying amount at end of period 135,377 81,218 325 1,242 853 96 26 8,214 227,351

Computers and Leasehold electronic Plant and improve- Works Work in Land Buildings equipment Furniture vehicles ments of art progress Total 2015 $000 $000 $000 $000 $000 $000 $000 $000 $000 Carrying amount at start of period 128,777 79,411 261 1,780 939 108 15 3,446 214,737 Additions - 104 295 142 270 - 11 3,386 4,208 Transfers (a) 290 2,991 189 207 (59) - - (4,307) (689) Other disposals - (11) (8) (1) (11) (1) - - (32) Adjustments ------Classified as held for sale ------Revaluation increments ------Depreciation - (1,716) (265) (522) (543) (18) - - (3,064) Carrying amount at end of period 129,067 80,779 472 1,606 596 89 26 2,525 215,160

(a) The rest of the balance has been transferred to infrastructure.

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Notes to the Financial Statements For the year ended 30 June 2016

Note 25. Infrastructure Note 26. Fair Value Measurements 2016 2015 Assets measured at fair value: $000 $000 Fair Value At fair value 31,941 26,238 at end of Accumulated Depreciation (5,751) (1,600) Level 1 Level 2 Level 3 Period $000 $000 $000 $000 26,190 24,638 2016 The revaluation of infrastructure was conducted in June 2015 and was performed in Land (Note 24) - - 135,377 135,377 accordance with an independent valuation by Griffin Valuation Advisory. The effective Buildings (Note 24) - - 81,218 81,218 date of the valuation was 30 June 2015. Infrastructure (Note 25) - - 26,190 26,190 - - 242,785 242,785 Fair value for both revaluations was determined on the basis of depreciated replacement cost. Assets measured at fair value: 2016 2015 Fair Value at end of $000 $000 Level 1 Level 2 Level 3 Period Reconciliation $000 $000 $000 $000 Carrying amount at start of period 24,638 28,042 2015 Additions 2,776 2,797 Land (Note 24) - - 129,067 129,067 Revaluation Decrements (18) (1,366) Buildings (Note 24) - - 80,779 80,779 Adjustments 7 (3,625) Infrastructure (Note 25) - - 24,638 24,638 Disposals (18) (62) - - 234,484 234,484 Depreciation expense (1,195) (1,148) Carrying amount at end of period 26,190 24,638 There were no transfers between Levels 1, 2 or 3 during the current and previous periods.

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Notes to the Financial Statements For the year ended 30 June 2016

Fair value measurements using significant unobservable inputs (Level 3) Valuation Processes

Infra- There were no changes in valuation techniques during the period. Land Buildings structure $000 $000 $000 Transfers in and out of a fair value level are recognised on the date of the event or 2016 change in circumstances that caused the transfer. Transfers are generally limited to Fair Value at Start of Period 129,067 80,779 24,638 assets newly classified as non-current assets held for sale as Treasurer's instructions Additions - 13 2,776 require valuations of land, buildings and infrastructure to be categorised within Level 3 Adjustments - (8) 7 where the valuations will utilise significant Level 3 inputs on a recurring basis. Revaluation Increments / (Decrements) Land (Level 3 fair values) recognised in Profit or Loss - - - Revaluation Increments / (Decrements) Fair value for restricted use land is based on comparison with market evidence for land recognised in Other Comprehensive Income 6,310 2,544 (18) with low level utility (high restricted use land). The relevant comparators of land with low Disposals - (215) (18) level utility is selected by the Western Australian Land Information Authority (Valuation Depreciation Expense - (1,895) (1,195) Services) and represents the application of a significant Level 3 input in this valuation Fair Value at end of period 135,377 81,218 26,190 methodology. The fair value measurement is sensitive to values of comparator land, with Total gains or losses for the period included in higher values of comparator land correlating with higher estimated fair values of land. profit or loss, under “Other Gains” - - - Buildings and Infrastructure (Level 3 fair values) Fair value measurements using significant unobservable inputs (Level 3) Fair value for existing use specialised buildings and infrastructure assets is determined Infra- by reference to the cost of replacing the remaining future economic benefits embodied Land Buildings structure in the asset, i.e. the depreciated replacement cost. Depreciated replacement cost is $000 $000 $000 the current replacement cost of an asset less accumulated depreciation calculated on 2015 the basis of such cost to reflect the already consumed or expired economic benefit, or Fair Value at Start of Period 128,777 79,411 28,042 obsolescence, and optimisation (where applicable) of the asset. Current replacement Additions 290 104 2,797 cost is generally determined by reference to the market observable replacement cost of Adjustments - 2,991 (3,625) a substitute asset of comparable utility and the gross project size specifications. Revaluation Increments / (Decrements) recognised in Profit or Loss - - - Valuation using depreciation replacement cost utilises the significant Level 3 input, Revaluation Increments / (Decrements) consumed economic benefit/obsolescence of asset which is estimated by the Western recognised in Other Comprehensive Income - - (1,366) Australian Land Information Authority (Valuation Services). The fair value measurement Disposals - (11) (62) is sensitive to the estimate of consumption/obsolescence, with higher values of the Depreciation Expense - (1,716) (1,148) estimate correlating with lower estimated fair values of buildings and infrastructure. Fair Value at end of period 129,067 80,779 24,638 Total gains or losses for the period included in profit or loss, under “Other Gains” - - -

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Notes to the Financial Statements For the year ended 30 June 2016

Description and fair value as at 30 June 2016 Note 27. Intangible assets Fair value Fair value 2016 2015 Valuation Unobservable Description 2016 2015 $000 $000 technique(s) inputs $000 $000 Right to Receive the Rottnest Dome Building 778 778 Land $135,377 $129,067 Market Selection of Computer software at cost 2,891 2,888 Approach land with similar Accumulated amortisation (2,006) (1,792) approximate utility 1,663 1,874 Buildings $81,218 $80,779 Depreciated Consumed Reconciliation Replacement economic benefit/ Carrying amount at start of period 1,874 1,476 Cost Obsolescence Additions 100 686 of asset Disposals - (5) Infrastructure $26,190 $24,638 Depreciated Consumed Adjustments - - Replacement economic benefit/ Amortisation expense (311) (283) Cost Obsolescence of Carrying amount at end of period 1,663 1,874 asset

Note 28. Impairment of assets

There were no indications of impairment to Property, plant, equipment and vehicles, Infrastructure or Intangible assets at 30 June 2016.

The Authority held no goodwill or intangible assets with an indefinite useful life during the reporting period. At the end of the reporting period other than the right to receive the Rottnest Dome building, there were no intangible assets not yet available for use.

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Notes to the Financial Statements For the year ended 30 June 2015

Note 29. Payables Note 31. Provisions 2016 2015 2016 2015 $000 $000 $000 $000 Trade payables 10,336 4,473 Current Accrued expenses 53 37 Employee benefits provision Accrued salaries 296 416 Annual leave (a) 838 1,110 10,685 4,926 Long service leave (b) 807 1,138 Time in lieu 50 56 Note 30. Borrowings Superannuation (d) 160 221 2016 2015 Leave purchase 7 42 $000 $000 1,862 2,567 Other provisions Current Employment on-costs (c) 147 206 Finance lease liabilities (secured) - 22 Sinking fund provision 14 6 Total current - 22 161 212 2,023 2,779 Non-current Employee benefits provision Long service leave (b) 348 322 Super provision – long term 33 30 GESB Superannuation liability long term 240 290 621 642 Other provisions Employment on-costs (c) 31 29 31 29 652 671

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Notes to the Financial Statements For the year ended 30 June 2016

(a) Annual leave liabilities have been classified as current where there is no (d) Defined benefit superannuation plans unconditional right to defer settlement for at least 12 months after the end of the Pre-transfer reporting period. Assessments indicate that actual settlement of the liabilities is benefit - expected to occur as follows: Gold State 2016 2015 Superannuation $000 $000 Pension Scheme Scheme Within 12 months of the end of the reporting period 550 670 2016 2015 2016 2015 More than 12 months after the end of the 288 440 $000 $000 $000 $000 reporting period The amounts recognised in the 838 1,110 Statement of Comprehensive Income are as follows: (b) Long service leave liabilities Current service cost - - - - Long service leave liabilities have been classified as current where there is no Interest cost (unwinding of unconditional right to defer settlement for at least 12 months after the end of the the discount) 7 10 1 1 reporting period. Assessments indicate that actual settlement of the liabilities is Net actuarial losses/(gains) 23 29 (1) (1) expected to occur as follows: recognised Total included in Employee 2016 2015 benefits expense 30 39 - - $000 $000 (see note 12 ‘Employee benefits expense’) Within 12 months of the end of the reporting period 357 438 More than 12 months after the end of the 798 1,022 The amounts recognised in the reporting period Statement of Financial Position 1,155 1,460 are as follows: Present value of unfunded obligations 274 283 - 41 (c) The settlement of annual and long service leave liabilities Liability in the statement of The settlement of annual and long service leave liabilities gives rise to the payment of financial position 274 283 - 41 employment on-costs including workers' compensation insurance. The provision is the present value of expected future payments. The associated expense, apart from the unwinding of the discount (finance cost), is disclosed in note 17 'Other Expenses'.

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Notes to the Financial Statements For the year ended 30 June 2016

Pre-transfer benefit - Gold State Superannuation Pension Scheme Scheme 2016 2015 2016 2015 2015 2014 2013 2012 $000 $000 $000 $000 Historic summary $000 $000 $000 $000 Reconciliation of the unfunded liability Pension Scheme: recognised in the statement of financial Present value of unfunded obligation 283 284 299 312 position is as follows: Fair value of plan assets - - - - Liability at start of period 283 284 41 41 Deficit 283 284 299 312 Current service cost - - - - Interest cost (unwinding of the Pre-transfer Benefit - Gold State discount) 7 10 1 1 Superannuation Scheme: Net actuarial losses/(gains) Present value of unfunded obligation 41 41 39 59 recognised 23 29 (2) (1) Fair value of plan assets - - - - Benefits paid (39) (39) 40 - Deficit 41 41 39 59 Liability at end of period 274 283 - 41 Experience adjustments arising on plan liabilities: Reconciliation of the fair value of plan assets is as follows: Pension scheme 16 17 12 12 Pre-transfer Benefit - (1) 2 (3) 6 Fair value of plan assets at start of year - - - - Gold State Scheme Employer contributions 39 39 - - Benefits paid (39) (39) - - Employer funding arrangements for the defined benefit plans Fair value of plan assets at The amounts recorded for the Gold State Superannuation Scheme relate to the end of year - - - - scheme as a whole (i.e. The pre-transfer benefit component plus the concurrently funded benefit component). The principal actuarial assumptions used (expressed as weighted averages) were as follows: Employer contributions of $39,000 are expected to be paid to the Pension Scheme 2016 2015 in the subsequent annual reporting period. Discount rate 2.26% 2.74% Future salary increases 3.5% 4%

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Notes to the Financial Statements For the year ended 30 June 2016

Note 31. Provisions contd. Note 33. Equity Movements in other provisions 2016 2015 The Western Australian Government holds the equity interest in the Authority on $000 $000 behalf of the community. Equity represents the residual interest in the net assets of the Movements in each class of provisions during the financial Authority. The asset revaluation surplus represents that portion of equity resulting from year, other than employee benefits, are set out below: the revaluation of non-current assets. Employment on-cost provision Contributed Equity 2016 2015 Carrying amount at start of period 235 139 $000 $000 Additional provisions recognised 43 167 Balance at start of period 50,032 50,032 Payments/other sacrifices of economic benefits (100) (71) Contributions by owners - - Carrying amount at end of period 178 235 Distribution to owners - - Balance at end of period 50,032 50,032 Note 32. Other Liabilities Reserves 2016 2015 2016 2015 $000 $000 $000 $000 Asset revaluation surplus Current Balance at the start of period 188,432 189,798 Refundable deposits and bonds 11,526 10,907 Net revaluation increments Leases in advance 100 100 Land 6,310 - Deferred Income 39 39 Buildings 2,544 - Unclaimed money 95 104 Infrastructure (18) (1,366) General Provisions (3) 61 Balance at end of period 197,268 188,432 Total current 11,757 11,211

Retained Earnings 2016 2015 Non-current $000 $000 Deferred Income 428 466 Balance at start of period (a) 5,206 6,390 Leases in advance 533 633 Result for the period 2,420 (1,184) Total non-current 961 1,099 Balance at end of period 7,626 5,206 Total equity at end of period 254,926 243,670

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Notes to the Financial Statements For the year ended 30 June 2016

Note 34. Notes to the Statement of Cash Flows

Reconciliation of Cash Cash at the end of the financial year as shown in the Statement of Cash Flows is reconciled to the related items in the Statement of Financial Position as follows:

2016 2015 2016 2015 $000 $000 $000 $000 Cash and cash equivalents 5,610 2,921 Increase/(decrease) in liabilities: Other financial assets (current & non-current) 18,000 18,090 Current Payables (a) 5,758 599 23,610 21,011 Current Provisions (757) 399 Reconciliation of profit after income tax equivalent to net cash flows provided by/ Other liabilities 546 477 (used in) operating activities Non-current provisions (19) (172) Non-current liabilities (139) (139) 2016 2015 Net GST receipts/(payments) (b) (338) 57 $000 $000 (c) (Loss) before grants and subsidies from State Government (9,082) (8,403) Change in GST receivables/payables (205) (159) Net cash provided by/(used in) operating activities 559 (2,720) Non cash items (a) Note that the Australian Taxation Office (ATO) receivable / payable in respect of GST and the Depreciation and amortisation expense 4,644 4,496 receivable / payable in respect of the sale / purchase of non-current assets are not included in Net loss on disposal of property, plant and equipment 233 74 these items as they do not form part of the reconciling items. Doubtful debts expense 30 30 (b) This is the net GST paid / received, i.e. cash transactions. Services received free of charge 35 53 (c) This reverses out the GST in receivables and payables. WIP assets adjustments (166) -

(Increase)/decrease in assets: Current receivables (a) 113 (143) Current inventories 3 (74) Other current assets (101) 188 Non-current receivables 4 (3)

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Notes to the Financial Statements For the year ended 30 June 2016

Note 35. Commitments The commitments below are inclusive of GST where relevant. Capital expenditure commitments 2016 2015 Non-cancellable operating lease commitments 2016 2015 $000 $000 $000 $000 Capital expenditure commitments, being contracted capital Commitments in relation to leases contracted for at the expenditure additional to the amounts reported in the balance sheet date but not recognised as liabilities are financial statements, are payable as follows: payable as follows: Within 1 year 1,491 1,700 Within 1 year 218 404 Later than 1 year and not later than 5 years - - Later than 1 year and not later than 5 years 33 218 Later than 5 years - - Later than 5 years - - 1,491 1,700 251 622

Office accommodation is rented under commercial leases and rent is payable monthly The capital commitments include amounts for: in advance. The leases run for six years, with options of a further five years. The rentals Buildings 103 - are subject to review on predetermined dates based on either fixed percentage, CPI or Infrastructure 1,130 1,614 market review adjustments. Plant Equipment and Vehicles 80 21 Software Development - 26 Office equipment is leased over four year terms with charges payable monthly in Computers and Electronic Equipment - 14 advance. Options exist to continue leasing beyond the expiry date or to purchase at Furniture 178 25 residual value. 1,491 1,700 Finance Lease commitments 2016 2015 Other expenditure commitments 2016 2015 $000 $000 $000 $000 Minimum lease payment commitments in relation to finance Other expenditure commitments contracted for at the end leases are payable as follows: of the reporting period but not recognised as liabilities, are Within 1 year - 22 payable as follows: Later than 1 year and not later than 5 years - - Within 1 year 14,142 18,548 Minimum finance lease payments - - Later than 1 year and not later than 5 years 25,188 51,793 Less future finance charges - - Later than 5 years - - Present value of finance lease liabilities - 22 39,330 70,341

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Notes to the Financial Statements For the year ended 30 June 2016

Note 35. Commitments contd. During the 2015-2016 financial year the Authority finalised a contaminated site investigation for the Power Station site. The Authority was successful in applying for funding (February 2014) 2016 2015 from the Contaminated Sites Management Account (CSMA) to undertake further investigative $000 $000 work at Power Station site, this work and audit process was finalised with DER by August 2015. The present value of finance leases payable is as follows: DER have made the determination that due to the absence of other sources of contamination Within 1 year - 22 not subject to the investigation scope (e.g. Asbestos) the site will remain possibly Later than 1 year and not later than 5 years - - contaminated – investigation required. DER advised that although further groundwater Present value of finance lease liabilities - 22 monitoring was recommended in audit the current groundwater data, in conjunction with the planned removal of impacted soil during the future upgrades to the powerhouse is sufficient to Included in the financial statements as: indicate that there is no significant risk to the environment from the hydrocarbon impacts. Current (note 30 ‘Borrowings’) - 22 The Authority continues to invest in monitoring activities of other contaminated sites including Non-current (note 30 ‘Borrowings’) - - Thomson’s Bay (Remediated for Restricted Use) and the Landfill (possibly contaminated – - 22 investigation required). The Authority has the option to purchase leased assets at their agreed fair value on expiry of the lease. These leasing arrangements do not have escalation clauses, other than in the event Note 36. Contingent liabilities and contingent assets contd. of payment default. There are no restrictions imposed by these leasing arrangements on other The Authority continued to upgrade the existing Waste Water Treatment Plant (WWTP) during financing transactions. Certain finance leases have a contingent rental obligation; however the 2015-2016 financial year. The site is recognised as an environmental and potential a these are not material when compared to the total lease payments made. health risk due to long-term discharge of treated effluent into infiltration/evaporation ponds located adjacent to the plant. This practice has seen a measurable impact on the groundwater Note 36. Contingent liabilities and contingent assets quality immediately surrounding the WWTP. Sampling of bores has historically shown elevated Contingent liabilities nitrogen and phosphorus concentrations and also the presence of thermo-tolerant coliform. The following contingent liabilities are additional to the liabilities included in the The contaminated groundwater from the WWTP could potentially move in all directions from financial statements: the mounded WWTP location, including towards the coast and inland towards Herschel Lake Contaminated Sites and Garden Lake. The upgrade is predicted to improve (reduce) quantity and contaminant Under the Contaminated Sites Act 2003, the Authority is required to report known and concentration of effluent discharge with the intent to reduce discharge to the environment and suspected contaminated sites to the Department of Environment Regulation (DER). In ground water contamination. Decommissioning of discharge pond(s) will likely be required accordance with the Act, DER classifies these sites on the basis of the risk to human health, as part of conditions of a new WWTP operating licence. This will also likely require the RIA to the environment and environmental values. Where sites are classified as contaminated – undertake a contaminated sites investigation under the Contaminated Sites Act 2003. remediation required or possibly contaminated – investigation required, the Authority may There are no events that occurred after Statement of Financial Position date which would have a liability in respect of investigation or remediation expenses. materially affect the financial statements.

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Notes to the Financial Statements For the year ended 30 June 2016

Note 37. Events occurring after the end of the reporting period There are no events that occurred after Statement of Financial Position date which would materially affect the financial statements.

Note 38. Explanatory statement All variances between estimates (original budget) and actual results for 2016, and between the actual results for 2016 and 2015 are shown below. Narratives are provided for selected major variances, which are generally greater than:

5% and $825K for the Statements of Comprehensive Income.

Variance between Estimate Actual Actual Variance between actual results for 2016 2016 2015 estimate and actual 2016 and 2015 $000 $000 $000 $000 $000

INCOME Revenue Sales 189 153 164 (36) (11) Provision of services (a) 32,456 33,393 31,458 937 1,935 Commonwealth grants and contributions - - 38 - (38) Interest revenue 780 806 821 26 (15) Other revenues 194 381 413 187 (32) Total Income 33,619 34,733 32,894 1,114 1,839

EXPENSES Cost of sales 96 87 162 (9) (75) Employee benefits expense (1) (b) 11,588 10,168 11,227 (1,420) (1,059) Supplies and services (2) (c) 25,587 26,884 23,565 1,297 3,319 Depreciation and amortisation expense 4,966 4,644 4,496 (322) 148 Finance costs 264 263 244 (1) 19

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Notes to the Financial Statements For the year ended 30 June 2016

Note 38. Explanatory statement contd.

Variance between Estimate Actual Actual Variance between actual results for 2016 2016 2015 estimate and actual 2016 and 2015 $000 $000 $000 $000 $000

Accommodation expenses 455 444 473 (11) (29) Loss on disposal of non-current assets - 233 69 233 164 Other expenses 332 1,092 1,061 760 31 Total Expenses 43,288 43,815 41,297 527 2,518 Profit / (Loss) before grants and subsidies from State Government (9,669) (9,082) (8,403) 587 (679) Grants and subsidies from State Government (3) (d) 9,700 11,467 7,166 1,767 4,301 Services received free of charge 24 35 53 11 (18) Profit /(loss) for the period 55 2,420 (1,184) 2,365 3,604

Major Estimate and Actual (2016) Variance Narratives (1) Employee benefits expenses underspent by $1,420K (12%) primarily due to the vacant position and the actuarial adjustment to the AL and LSL. (2) Supplies and services increased by $1,297K (5%) due to the increased building maintenance costs (roofing projects). (3 Grants and subsidies increased by$1,767k (18%) primarily related to the additional grant for the roofing project.

Major Actual (2016) and Comparative (2015) Variance Narratives (a) Provision of services increased by $1,935K (6%) mainly due to the visitor numbers increased 18%. (b) Employee benefits expenses underspent by $1,059K (9%) primarily due to the vacant positions. (c) Supplies and services increase by $3,319K (14%) due to the increased building maintenance costs (roofing projects). (d) Grants and subsidies increased by$4,301K (60%) due to the additional grant for the roofing project.

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Note 39. Financial Instruments Note 39. Financial Instruments contd.

(a) Financial risk management objectives and policies Market risk Financial instruments held by the Authority are cash and cash equivalents, cash Market risk is the risk that changes in market prices such as foreign exchange rates equivalents, borrowings, finance leases, Treasurer’s advances, loans and receivables and interest rates will affect the Authority’s income or the value of its holdings of and payables. The Authority has limited exposure to financial risks. The Authority’s financial instruments. The Authority does not trade in foreign currency and is not overall risk management program focuses on managing the risks identified below. materially exposed to other price risks.

Credit risk The Authority is not exposed to interest rate risk on financial liabilities as all borrowings Credit risk arises when there is the possibility of the Authority’s receivables defaulting are finance leases at fixed interest rates. The table at note 39(c) details the interest on their contractual obligations resulting in financial loss to the Authority. rate sensitivity on cash and cash equivalents, all of which is invested in interest bearing accounts. The maximum exposure to credit risk at end of the reporting period in relation to each class of recognised financial assets is the gross carrying amount of those assets (b) Categories of financial instruments inclusive of any provisions for impairment as shown in the table at note 39(c) ‘Financial In addition to cash and cash equivalents, the carrying amounts of each of the Instrument Disclosures’ and note 2(n) ‘Receivables’. following categories of financial assets and financial liabilities at the end of the The Authority has policies in place to ensure that sales of products and services are reporting period are: made to customers with an appropriate credit history. In addition, receivable balances 2016 2015 are monitored on an ongoing basis with the result that the Authority’s exposure to $000 $000 bad debts is minimal. At the end of the reporting period there were no significant Financial Assets concentrations of credit risk. Cash & Cash Equivalents 5,610 2,921 Receivables (a) 1,114 1,231 Liquidity risk Term deposits 18,000 18,090 Liquidity risk arises when the Authority is unable to meet its financial obligations as they fall due. The Authority is exposed to liquidity risk through its trading in the normal Financial Liabilities course of business. Financial Liabilities measured at amortised cost 10,685 4,948 The Authority’s objective is to maintain a balance between continuity of funding and (a) The amount of receivables excludes GST recoverable from the ATO (statutory receivable) flexibility through the use of bank overdrafts, loans and finance leases. The Authority has appropriate procedures to manage cash flows by monitoring forecast cash flows to ensure that sufficient funds are available to meet its commitments.

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Notes to the Financial Statements For the year ended 30 June 2016

Note 39. Financial Instruments contd. (c) Financial Instrument Disclosures Credit Risk The following table discloses the Authority’s maximum exposure to credit risk, interest rate exposures and the ageing analysis of financial assets. The Authority’s maximum exposure to credit risk at the end of the reporting period is the carrying amount of the financial assets as shown below. The table discloses the ageing analysis of financial assets that are past due but not impaired and impaired financial assets. The table is based on information provided to senior management of the Authority. The Authority does not hold any collateral as security or other credit enhancements relating to the financial assets it holds.

Aged analysis of financial assets Past due but not impaired Not past Impaired Carrying due and not Up to 1 1 - 3 3 months 1 - 5 More than 5 financial Amount impaired month months to 1 year years years assets $000 $000 $000 $000 $000 $000 $000 $000

2016 Cash and cash equivalents 5,610 5,610 ------Receivables (a) 1,114 999 64 2 49 - - - Other financial assets 18,000 18,000 ------24,724 24,609 64 2 49 - - -

2015 Cash and cash equivalents 2,921 2,921 ------Receivables (a) 1,231 1,153 53 13 12 - - - Other financial assets 18,090 18,090 ------22,242 22,164 53 13 12 - - -

(a) The amount of receivables excludes the GST recoverable from the ATO (statutory receivable)

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Notes to the Financial Statements For the year ended 30 June 2016

Note 39. Financial Instruments contd.

Liquidity risk and interest rate exposure The following table details the Authority’s interest rate exposure and the contractual maturity analysis of financial assets and financial liabilities.The maturity analysis section includes interest and principal cash flows. The interest exposure section analyses only the carrying amounts of each item.

Interest rate exposure and maturity analysis of financial assets and financial liabilities Interest rate exposure Maturity dates Weighted Average Effective Fixed Variable Non- More Interest Carrying interest Interest Interest Nominal Up to 1 1 – 3 3 months 1 - 5 than 5 rate Amount rate rate Bearing amount month months to 1 year years years % $000 $000 $000 $000 $000 $000 $000 $000 $000 2016 Financial Assets Cash and cash equivalents 1.29 5,610 - 5,119 491 5,610 5,610 - - - - Receivables (a) 1,114 - - 1,114 1,114 1,114 - - - - Other financial assets 3.58 18,000 18,000 - - 18,000 6,000 3,250 6,500 2,250 - 24,724 18,000 5,119 1,605 24,724 6,000 3,250 6,500 2,250 -

Financial Liabilities Payables 10,685 - - 10,685 10,685 10,685 - - - - Finance lease liabilities ------10,685 - - 10,685 10,685 10,685 - - - -

(a) The amount of receivables excludes the GST recoverable from the ATO (statutory receivable)

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Notes to the Financial Statements For the year ended 30 June 2016

Note 39. Financial Instruments contd.

Interest rate exposure and maturity analysis of financial assets and financial liabilities Interest rate exposure Maturity dates Weighted Average Effective Fixed Variable Non- More Interest Carrying interest Interest Interest Nominal Up to 1 1 – 3 3 months 1 - 5 than 5 rate Amount rate rate Bearing amount month months to 1 year years years % $000 $000 $000 $000 $000 $000 $000 $000 $000

2015 Financial Assets Cash and cash equivalents 1.9 2,921 - 1,829 1,092 2,921 2,921 - - - - Receivables (a) 1,231 - - 1,231 1,231 1,231 - - - - Other financial assets 3.83 18,090 18,090 - - 18,090 - 1,250 6,590 10,250 - 22,242 18,090 1,829 2,323 22,242 4,152 1,250 6,590 10,250 -

Financial Liabilities Payables 4,926 - - 4,926 4,926 4,926 - - - - Finance lease liabilities 5.75 22 22 - - 22 11 11 - - - 4,948 22 - 4,926 4,948 4,937 11 - - -

(a) The amount of receivables excludes the GST recoverable from the ATO (statutory receivable)

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Notes to the Financial Statements For the year ended 30 June 2016

Note 39. Financial Instruments contd. Note 40. Remuneration of members of the accountable authority and senior officers Interest rate sensitivity analysis Remuneration of Members of the accountable authority The number of members of the accountable authority, whose total of fees, salaries, - 100 basis points +100 basis points superannuation, non-monetary benefits and other benefits for the financial year, fall Carrying within the following bands are: Amount Surplus Equity Surplus Equity 2016 2015 $000 $000 $000 $000 $000 2016 $ 0 – 10,000 2 - Financial Assets 10,001 – 20,000 4 5 Cash and cash equivalents 5,119 (51) (51) 51 51 20,001 – 40,000 1 1 Total Increase/(Decrease) (51) (51) 51 51 $000 $000 - 100 basis points +100 basis points Carrying Base remuneration and superannuation 103 109 Amount Surplus Equity Surplus Equity Annual leave and long service leave accruals - - 2015 $000 $000 $000 $000 $000 Other benefits - - The total remuneration of members of the Financial Assets Accountable Authority 103 109 Cash and cash equivalents 1,829 (18) (18) 18 18 Total Increase/(Decrease) (18) (18) 18 18 The total remuneration includes the superannuation expense incurred by the Authority in respect of members of the Accountable Authority. Fair values All financial assets and liabilities recognised in the Statement of Financial Position, No members of the Accountable Authority are members of the Pension Scheme. whether they are carried at cost or fair value, are recognised at amounts that represent a reasonable approximation of fair value unless otherwise stated in the applicable notes.

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Notes to the Financial Statements For the year ended 30 June 2016

Note 40. Remuneration of members of the accountable authority Note 41. Remuneration of auditor and senior officers contd. Remuneration paid or payable to the Auditor General in respect of the audit for the current Remuneration of Senior Officers financial year is as follows: The number of senior officers, other than senior officers reported as members of the 2016 2015 accountable authority, whose total of fees, salaries, superannuation, non monetary $000 $000 benefits and other benefits for the financial year fall within the following bands are: Auditing the accounts, financial statements and 104 102 2016 2015 performance indicators $ 60,001 – 70,000 - 1 The amounts disclosed above differ from the amounts recognised in note 17 ‘Other expenses’ and represent current and final audit fees for the current year financial statement. 80,001 – 90,000 - 1 130,001 – 140,000 - - 150,001 – 160,000 1 1 Note 42. Supplementary financial information 160,001 – 170,000 - - Write-offs approved by the Board 2016 2015 170,001 – 180,000 1 2 $000 $000 190,001 – 200,000 1 1 Amounts already provided for and written off as 60 95 200,001 – 210,000 1 - uncollectible 270,001 – 280,000 - 1 60 95 280,001 – 290,000 1 - Note 43. Schedule of income and expenses by service

Segment information has been disclosed by service. The two services of the Authority are: $000 $000 Service 1: Provision of Services to Visitors Base remuneration and superannuation 880 1,064 This service relates to the provision and operation of affordable recreational and holiday Annual leave and long service leave accruals 94 24 facilities with particular regard for the needs of persons usually resident in the State, and Other benefits 47 47 who wish to visit or stay on the Island as a family group. The total remuneration of senior officers 1,021 1,135 Service 2: Conservation of the Natural and Built Environment The total remuneration includes the superannuation expense incurred by the Authority This service relates to the maintenance and protection of the Island’s natural and built in respect of senior officers other than senior officers reported as members of the environment. The Authority operates within one geographical segment (the Western accountable authority. Australian public sector). No senior officers are members of the Pension Scheme.

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Notes to the Financial Statements For the year ended 30 June 2016

Conservation of Services to Visitors Total Environment 2016 2015 2016 2015 2016 2015 $000 $000 $000 $000 $000 $000

INCOME Revenue Sales 153 164 - - 153 164 Provision of services 33,356 31,348 37 110 33,393 31,458 Commonwealth grants and contributions - - - 38 - 38 Interest revenue 806 821 - - 806 821 Other revenues 297 380 84 33 381 413 Gains Total Income 34,612 32,713 121 181 34,733 32,894

EXPENSES Cost of sales 87 162 - - 87 162 Employee benefits expense 8,070 9,013 2,098 2,214 10,168 11,227 Supplies and services 25,775 22,486 1,109 1,079 26,884 23,565 Depreciation and amortisation expense 4,491 4,340 153 156 4,644 4,496 Finance costs 245 227 18 17 263 244 Accommodation expenses 417 442 27 31 444 473 Loss on disposal of non-current assets 217 40 16 29 233 69 Other expenses 930 1,022 162 39 1,092 1,061 Total Expenses 40,232 37,732 3,583 3,565 43,815 41,297 (Loss) before grants and subsidies from State Government (5,620) (5,019) (3,462) (3,384) (9,082) (8,403) Grants and subsidies from State Government 8,458 4,134 3,009 3,032 11,467 7,166 Services received free of charge 35 53 - - 35 53 Profit/(loss) for the period 2,873 (832) (453) (352) (2,420) (1,184)

Rottnest Island Authority Annual Report 2015-2016 109 Contents Message to the Minister Agency Overview Agency Performance Significant Issues & Trends Disclosures & Legal Compliance Key Performance Indicators Key Performance Indicators For the year ended 30 June 2016

We hereby certify that the performance indicators are based on proper records, are relevant and appropriate for assisting users to assess the Rottnest Island Authority’s performance and fairly represent the performance of the Rottnest Island Authority for the financial year ended 30 June 2015.

John Driscoll Robert McDonald Craig Spence Chairman Member Chief Finance Officer 19 September 2016 19 September 2016 19 September 2016

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Desired Outcome

Rottnest Island visitors enjoy recreational and holiday experiences in healthy natural and The RIA regularly reviews and amends its indicators to reflect changes in a variety cultural environments. of factors impacting the Island. These could be visitor and community priorities for Rottnest Island, or changes in technology that enable more sophisticated measures to The Rottnest Island Authority’s (RIA) key performance indicators (KPIs) provide a guide be implemented. to its performance regarding its stated outcome. State public sector policy requires effectiveness and efficiency indicators to demonstrate this performance. By their nature, The RIA also has a suite of operational and commercial indicators that are used to these indicators are very high level and attempt to encompass all the RIA’s operations and manage and improve its performance. As well as comparing results to an annual costs. For example, the efficiency indicators are required to include all relevant costs and target, comparisons to previous year’s results are included where available to enable corporate overheads for the two services respectively. performance trends to be identified. The relationship between the RIA’s KPIs and services to Government outcomes is outlined Effectiveness Indicators in the table below. 1. Visitor satisfaction with the Rottnest Island Experience Government Goal: Social and Environmental Responsibility An independent research company is engaged to survey the Island’s visitors. Visitors Ensuring that economic activity is managed in a socially and environmentally responsible are selected at random and requested to complete questionnaires. There were 1,810 manner for the long-term benefit of the State. completed questionnaires providing a confidence level of 95% with an error rate

Services Provided to of +/- 2.3%. Key Performance Indicators the Community This indicator summarises a range of aspects addressed in the survey. Respondents are Effectiveness asked to rate Rottnest Island based on their satisfaction or perception of: • Visitor Satisfaction with the Rottnest Island experience 1. Recreational and • Recreational and holiday services and facilities; • Health of Island’s natural environment holiday services. • General services and facilities such as public toilets and seating; • Health of Island’s cultural heritage 2. Natural • Accommodation facilities and services; environment and Efficiency • Natural environment and cultural heritage; and cultural heritage • Average cost of recreational and holiday services management • Safety and cleanliness of the Island. provided per visitor • Average cost of natural environment and cultural heritage Respondents are asked to provide an overall rating of their experience compared to management per Reserve hectare expectations of their visit to Rottnest Island.

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2015-16 2015-16 2014-15 2013-14 2012-13 2011-12 The RIA abstracts water from fresh and saline sub-surface sources for potable water Visitor Rating Target Result Result Result Result Result supply on the Island. To abstract from subsurface water sources the RIA is required to obtain a water abstraction licence under Rights in Water and Irrigation Act 1914 which is Met or exceeded 97% 97% 97% 97% 97% 97% administered by the Department of Water. expectations The RIA expanded its ground water abstraction scheme and constructed a waste water

treatment plant in the early 1990’s, as a result the Environmental Protection Authority Comments under the EP Act imposed a suite of Ministerial Statements with respect to commissioning, The level of satisfaction from people with visiting Rottnest Island continues to be operating and monitoring conditions required of the RIA for the construction and on-going consistently high at 97%. management of these activities.

2. Health of Rottnest Island’s Natural Environment Several of the RIA’s operations and facilities are subject to the Western Australian Health Act 1911 and are required to comply with various regulations, guidelines and licence This indicator is comprised of a suite of three indicators that aim to provide information conditions administered by the Department of Health. about the condition/health of the natural environment and provide an indication of the environmental performance of the RIA’s operations (including waste management, water This indicator measures the percentage of licence conditions that were compliant based utilities, accommodation etc). on the average of two assessments conducted during the year.

The results are calculated by RIA officers qualified in environmental management. These indicators comprise: 2015-16 2015-16 2014-15 2013-14 2012-13 • Percentage of conditions compliant with operating licences; Target Result Result Result Result • Percentage of EarthCheck benchmarks being met or exceeded; and 100% 85% 83% 92% 95% • Average viability rating of focal conservation targets (health of biodiversity).

2.1 Percentage of conditions compliant with operating licences Comments The RIA is the occupier of various prescribed premises as defined by the Environmental The percentage of conditions compliant with operating licences is based on an annual Protection Act 1986 (EP Act). The EP Act requires a premise that causes an emission assessments conducted during the year. Overall compliances improved from last year or alters the nature of volume of the waste, noise, odour or electromagnetic radiation (83% to 85%) mainly through improvements to public ablution facilities. Non-compliance above production or design capacity to hold a licence. Licences are usually subject to findings related to definition issues with wording of the landfill licence (e.g. types of waste various operating conditions to ensure the prescribed premises are at low risk of causing to be accepted), timing issues relating to the bore field upgrade, calibration errors, environmental harm or pollution. meter malfunctions and failures to report, and maintenance issues relating to the composting toilets.

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2.2 Percentage of EarthCheck benchmarks being met or exceeded 2.3 Average viability rating of focal conservation targets (health of biodiversity) The RIA is registered under the EarthCheck Sustainability program, a worldwide recognised and independent sustainability accreditation program for the tourism and The Nature Conservancy’s Conservation Action Planning (CAP) process has been applied hospitality industry. internationally to thousands of conservation estates. In 2011, the RIA adopted CAP as its standard for planning, implementing and measuring success of conservation practices on The RIA currently has accreditation to the Silver level and is progressing towards the Gold the Island. Through the CAP process, five Focal Conservation targets were established: level. This indicator measures the percentage of EarthCheck benchmarks that were met or exceeded. The benchmarks are approved by EarthCheck’s governing body (EC3 Global) 1. Woodland Health 3. Coastal Habitat 5. Quokkas and are based on industry sector and/or regional benchmarks relevant to the organisation 2. Limestone Health 4. Wetlands being assessed. Rottnest Island is mainly benchmarked against the world-wide tourism Indicators and acceptable ranges of variation were established for each focal target in industry. order to determine the current and desired viability status (or “health”) of each target. A positive result for each aspect is achieved when the measure meets or exceeds the These were established through a series of workshops, consultation with key stakeholders, benchmark. The overall result for the year is provided in the table below: environmental advisors and analysis of past research and monitoring data.

The viability ‘status’ reflects the ‘health’ of the associated conservation target which in more

2015-16 2015-16 2014-15 2013-14 2012-13 general terms, indicates the ability of a conservation target to withstand or recover from Target Result Result Result Result most natural or anthropogenic disturbances and thus to persist over long time periods. The rating scales of very good, good, fair or poor are based on a quantitative assessment 90% 91% 93% 86% 81% for each aspect. However, the quantitative measure for each aspect is different. The ratings for each aspect are then averaged to arrive at an overall rating. The results for

the year are provided in the table below: Comments

Of the benchmarks, 59% were at or above best practice, 32% were at or above baseline 2015-16 2015-16 2014-15 2013-14 2012-13 and 9% were below baseline. Aspects which require improvement include waste recycling, Target Result Result Result Result pesticide products and cleaning products. Good performance was achieved in the vehicle sector (tours and transport) where 100% at or above baseline was achieved. Rating Good Rating Good Rating Good Rating Good Rating Good (75%) (83%) (81%) (83%) (77%)

Comments

The overall target was successfully met and within an acceptable range of variation. The only areas scoring below a ‘good’ rating were nutrient levels in the salt lakes and seedling survival.

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3. Health of Rottnest Island’s Cultural Heritage This indicator comprises three aspects which are monitored by selected measures to Comments indicate the state of Rottnest Island’s cultural heritage. The results for the measures are Identification reported as a percentage of the ‘ideal state’. The measures are calculated by RIA staff There are 144 places on the RIA’s Heritage Asset Register; 61 are registered on the WA State qualified in cultural heritage management. The results for the measures of Rottnest Register of Heritage Places and 16 Aboriginal sites are registered with the Department of Island’s cultural heritage are listed below: Aboriginal Affairs (DAA) under the Aboriginal Heritage Act 1972. Performance in these areas 2015-16 2015-16 2014-15 2013-14 2012-13 was maintained at 89% of all 144 heritage places having Statements of Significance. Aspect Measure Target Result Result Result Results % % % % % Collections management has retained a focus of recording heritage collection items The proportion of resulting in 291 accessioned items (objects and photographs) for the year with a total of heritage listed places 2964 recorded on the database. It is estimated that the total number of items assessed 70-89 89 89 75 75 with statements of as being significant to the collection is approximately 3000. This total is adjusted annually significance based on the documentation of stored but un-accessioned artefacts and new acquisitions. Identification The proportion of collection heritage items Protection recorded on database 90-100 98 98 92 95 There were two developments that required heritage assessment during the year which were compared to currently fully compliant. known number of items The proportion of Conservation developments that The RIA continues to maintain and repair its heritage buildings and structures. The 61 State Protection follow heritage legal 90-100 100 100 63 82 registered HCWA places were assessed individually with 31 in a good condition, 24 in a fair requirements and condition and 6 considered to be in poor condition. The total average condition score for the conservation policies 61 places for 2015-16 was 75% indicating that collectively the places are in a fair condition. The proportion of State- registered places meeting 75-89 75 76 75 75 There are 61 State-registered HCWA places and 16 State-registered DAA places (total condition targets 77). Of these 77 places, only 1 (1.3 %) still has a conservation plans ten years old or less. Conservation The proportion of State- The RIA’s targets are approved by its governing body in relation to its functions under the registered places with Rottnest Island Authority Act 1987, including the conditions imposed on the RIA by the Act. >30 1 10 10 13 conservation plans 10 or For example, the RIA is only required to restore built structures to the extent to which its less years old resources allow (s.11(2)(c)). A review of the Kingstown Barracks is planned for 2016-17 and effective implementation of the Cultural Landscape Management Plan (CLMP) will support the ongoing conservation of Rottnest Island heritage places. The purpose of the CLMP is to establish the principles to guide the management and care of Rottnest Island as a location with a high degree of heritage significance to the people of Western Australia.

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Efficiency Indicators

Service One: Recreational and Holiday Services Service Two: Natural Environment and Cultural Heritage Management

This indicator reflects the cost of providing Rottnest Island’s recreational and holiday This indicator concerns the cost of managing Rottnest Island’s natural environment and services on a per visitor basis. The term ‘visitors’ is determined from the number of people cultural heritage. Its purpose is to track the level of resources applied to these functions. arriving by commercial ferry services only. The indicator is intended to track the level of The indicator is calculated by dividing the total cost of managing the natural environment resources used to service Rottnest Island visitors. and cultural heritage by the Rottnest Island Reserve’s total area of 5,669 hectares. The indicator is calculated by dividing the total annual cost of providing all holiday and The Reserve refers to the land and waters defined in Part 1 of the Rottnest Island recreation related services to visitors, by the number of visitors for the year. Authority Act 1987.

2015-16* 2015-16 2014-15 2013-14 2012-13 2011-12 2015-16* 2015-16 2014-15 2013-14 2012-13 2011-12 Title Title Target Result Result Result Result Result Target Result Result Result Result Result

Average cost Average cost of recreational of natural and holiday $120 $103 $114 $114 $108 $104 environment services and cultural $552 $633 $630 $591 $587 $790 provided per heritage visitor management per Reserve *Target based on the annual budget allocated to this service. hectare Comments: *Target based on the annual budget allocated to this service. Rottnest Island visitor numbers increased significantly this year with services continuing to be provided efficiently resulting in a lower cost per visitor service. Comments: Costs were above expectations principally due to additional grant funds being received and expended on improvements. The land and marine mass remain constant resulting in a higher expenditure per hectare.

Rottnest Island Authority Annual Report 2015-2016 115 Telephone: (08) 9432 9300 Rottnest Island Authority proudly supports: Facsimile: (08) 9432 9301

Postal Address: PO Box 693, Fremantle WA 6959

Web: rottnestisland.com Email: [email protected]