Sydney Harbour Foreshore Authority Annual Report 2007–08 Making the change to sustainable management is not just about being a good corporate citizen, it also makes good economic sense
Contents
At a glance 1 Managing hallmark events 24 Our people 38 Manage the business 14 Customers and stakeholders 26 Employee development 40 Investment plan reaches Community services 28 Workplace initiatives 40 year three 16 Social initiatives 28 Human resources 41 Business improvement 16 Indigenous initiatives 30 Corporate governance 44 Creating sustainable precincts 18 Education 30 Financial performance 50 Leadership in sustainability 20 Promoting our precincts 32 Appendix 113 Industry accolades 23 Our dynamic events 34 Index 123 Heritage management 24 Supporting other events 37 Contact us 125 At a glance Sydney Harbour Foreshore Authority owns and manages some of the State’s most significant assets, including Sydney’s heritage, cultural and entertainment precincts at The Rocks and Darling Harbour. It is also managing the renewal of Sydney’s newest harbour precinct, Barangaroo, on behalf of the NSW Government. With more than $1.5 billion of assets, the Authority manages significant commercial and retail leases and provides security, cleaning, building maintenance and other facility management services. It also cares for the public domain and 108 heritage buildings, of which 98 are State heritage listed, and undertakes tourism services, marketing and events that attract 41.5 million visitors every year. The Authority also owns White Bay Power Station, Rozelle railway yards and Ballast Point and manages major waterfront assets around Sydney Harbour on behalf of other agencies. Sydney Harbour Foreshore Authority was formed in 1999 under the Sydney Harbour Foreshore Authority Act 1998 to consolidate the work and functions of City West Development Corporation, Darling Harbour Authority and Sydney Cove Authority.
Achievements 41.5 million 41.5 million people* visited 2007–08 The Rocks and Darling Harbour. 80/20 Barangaroo Launched an 80/20 sustainability Commenced the first stage of strategy targeting a reduction of development of Barangaroo, carbon emissions of The Rocks and the city’s biggest urban renewal Darling Harbour by 80 per cent by project in a generation. 2020, with carbon neutrality across the Authority’s business operations by 2010. $46.5 million Invested $46.5 million in revitalising precincts including enhancing the 5 Stars uniqueness and value of The Rocks Gained Australia’s first 5 Star and Darling Harbour. Green Star Office Design rating for a heritage listed building at 88 George Street, The Rocks. $52.4 million Achieved a total operating lease revenue of $52.4 million from property in The Rocks, Darling Harbour and surrounds. 2,500 Aboriginal Shared expertise in archaeology, agreement sustainability, heritage and Signed a Principles of Cooperation interpretation with more than 2,500 agreement with the Metropolitan delegates at five key conferences. Local Aboriginal Land Council.
*The number of people movements recorded. See page 37 for details on how figures are calculated. Sydney Harbour Foreshore Authority Annual Report 2007–08 1 Our vision To make unique places in Sydney that the world talks about
Our purpose To create and sustain living places and great experiences
The Authority does this by: Managing places profitably and socially to deliver excellence in our role as manager for Sydney’s significant waterfront and other precincts, balancing visitor, community and commercial expectations. As custodian, to ensure the preservation and interpretation of our natural and cultural heritage.
Promoting places effectively to capitalise on the economic and cultural worth of our places, as core attractions for both visitors and Sydneysiders.
Developing places responsibly to demonstrate leadership in creating quality environments that are enriching, diverse, accessible and sustainable. To add value by redeveloping surplus government land through a highly-skilled organisation.
Managing the organisation efficiently to meet customer and stakeholder needs and expectations.
2 Sydney Harbour Foreshore Authority Annual Report 2007–08 Sustainability
The Authority recognises the effects of our way of life on the environment and has placed sustainability, social responsibility and economic viability at the very core of its management of Darling Harbour, The Rocks and Barangaroo.
Our commitment to developing sustainable management practices for our precincts as well as the organisation itself is encapsulated in two groundbreaking targets:
• to become carbon neutral in our occupied buildings, public domain and events by 2010
• to reduce the carbon emissions of The Rocks and Darling Harbour by a massive 80 per cent by 2020.
The organisation aims to achieve these by setting tangible goals not only for emission reductions, but also for other key areas of sustainability including the recycling or composting of 80 per cent of all waste and reducing potable water consumption by 80 per cent across all its precincts.
Making the change to sustainable management practices is not just about being a good corporate citizen, it also makes good economic sense. The Authority wants to play a leadership role in sustainability by making a real commitment to reducing its impact on the environment.
This symbol identifies the Authority’s key sustainability achievements and initiatives. These achievements are also referenced in the sustainability index on page 124.
Sydney Harbour Foreshore Authority Annual Report 2007–08 3 Our places Sydney Harbour Foreshore Authority is responsible for Sydney’s most historically and culturally significant waterfront locations. Lavender The Authority is responsible for the care, protection, Bay
management and promotion of this land and its Luna Park important buildings.
The Rocks and Circular Quay Kirribilli The Rocks is located at the northern part of the Sydney CBD occupying the peninsula between Circular Quay and the Harbour Ballast Point Sydney Harbour Bridge. It is the place where the first European settlers came Bridge ashore in 1788. In The Rocks, the Authority owns and maintains 94 heritage buildings. Walsh Bay It also manages 282 retail and commercial tenants including waterfront cafes, restaurants, bars and contemporary shopping, as well as 114 stallholders of The Rocks Market and 23 residential tenants. The Authority is committed to ensuring The Rocks is a vibrant place that offers a diversity of experiences for all our visitors while protecting and enhancing its heritage. With a growing residential population and Circular The an increasing workforce, The Rocks is changing from a tourist Quay Rocks destination to an intimate village with a new relevance to both locals Barangaroo and Sydneysiders. Balmain Farm Darling Harbour Cove Darling Harbour was created as a gift to the nation in celebration of Australia’s bicentenary. Since its opening in 1988, Darling Harbour White Garden Bay Island has continued to be a place of celebration for the people of Sydney, as well as a hugely popular tourist destination. At Darling Harbour, the Authority oversees the management of 159 tenancies comprising King waterfront cafes, restaurants and bars, contemporary shopping, Street CBD berths and many of Sydney’s top attractions. Wharf Pyrmont Elizabeth The Authority is committed to maintaining Darling Harbour as one Bay of the world’s best waterfront leisure, entertainment and business Woolloomooloo destinations for Sydneysiders and visitors alike. In addition to the many tenancies the Authority manages in The Rozelle Bay Rocks and Darling Harbour, the organisation is also responsible Rozelle Cockle for 21 tenancies at Pyrmont, Rozelle, Lilyfield and White Bay. Bay Blackwattle Barangaroo Lilyfield Bay Darling Barangaroo, formerly known as East Darling Harbour, is a 22-hectare Harbour waterfront site on the western side of Sydney’s CBD. Following Key relocation of stevedoring operations from the site in 2007, Barangaroo Ultimo Legislative boundaries (Sydney now provides a unique opportunity to support the future growth of Harbour Foreshore Authority Act 1998) Sydney’s CBD and return a vibrant public space to the community Glebe after more than 100 years of industrial use. Major owned or managed lands (Boundaries are indicative only) The renewal will involve up to $2.5 billion in construction between 2009 Annandale Land cared for, controlled and and 2020 and accommodate more than 15,000 workers. It will restore managed on behalf of other agencies an entire harbour headland and deliver the last link in a 14-kilometre foreshore walk from Woolloomooloo to Anzac Bridge. N
Barangaroo will be a new global benchmark in sustainable Leichhardt W E waterfront design. It will be designed, built and managed using world’s Sydney best practice sustainability principles and processes. Sustainability, S including minimising energy and water consumption and waste, along with bolstering social engagement and inclusion, will be central objectives for Barangaroo’s renewal.
4 Sydney Harbour Foreshore Authority Annual Report 2007–08 Sydney Harbour Foreshore Authority Annual Report 2007–08 5 Measuring our performance
Our success is measured by a balanced scorecard approach that values four key business outcomes: managing the business, customers and stakeholders, our people and financial performance. Within this framework, nine strategic objectives were developed for 2007–08 in line with the priorities of the NSW State Plan. In order for our results to be evaluated against our strategic planning, our performance has been reported under the four key outcomes, as well as corporate governance. A summary of our objectives, achievements and challenges for each key outcome can be found at the beginning of each section of this report.
Target Result Target Improvement Result Result Target Key Performance Indicators 2007–08 2007–08 achieved on 2006–07 2006–07 2005–06 2008–09 Manage the business – see page 14 Vacancy rate – proportion of the Authority’s lettable area that is vacant < 8% 7.5% ✔ No 1.0% 6.3% < 6% as at 30 June 2008 (excluding ground leases from lettable area) Development applications > 85% 88% No 91% 82% > 85% assessed within 40 days ✔ Percentage of debt outstanding for Same 90 days or more – as a proportion < 4% 0.9% ✔ 0.9% 0.4% < 4% result of yearly revenue
Annual sick days per employee < 4.5 days 6.49 days ✘ No 5.6 days 4.6 days < 4.5 days Annual reported safety incidents 0 0.09 ✘ No 0.07 0.11 0 per employee Reduction in greenhouse gas Energy Energy Energy Energy Energy ✔ No emissions and water consumption -6% -13.1% -16.3% -12 .1% -8% – based on the Authority’s year 2020 sustainability targets (reductions Water Water Water Water Water ✔ Yes measured from year 2000 base) -6% -25.7% -21.1% -11.7% -8%
Green power purchases – yearly electricity purchases from renewable sources for the Authority’s controlled > 600 cars 607 cars ✔ No 641 cars 317 cars > 600 cars sites expressed in terms of cars removed from the road
Authority fleet emissions – yearly CO² emissions of the Authority’s < 65 tonnes 62.2 tonnes ✔ Yes 66.1 tonnes 77.3 tonnes < 62 tonnes fleet based on fuel consumption
Paper usage per full-time Not Not employee – as recorded by < 50 kg 42 kg ✔ n/a < 50 kg collected collected the Authority’s printing devices
Customers and stakeholders – see page 26 Tenant sales turnover growth – percentage change in yearly tenant sales turnover based on 90 tenants > 3% 3.7% ✔ No 6.5% 6.0% > 3% supplying figures as per their lease agreement
Customer enquiry response time – average number of days taken to complete requests received through < 3 days 2.5 days ✔ No 1.1 days 1.2 days < 3 days the Authority’s customer request management system
The Rocks The Rocks $81.31 ✔ No $87.20 $111.59 Average international visitor spend > $80 > $85 – per visit to precinct based on 800 Darling Darling surveys conducted annually Harbour $79.92 ✘ No $90.13 $110.80 Harbour > $80 > $85 The Rocks The Rocks $105.90 ✔ Yes $99.18 $94.47 Average domestic visitor spend – > $100 > $105 per visit to precinct based on 800 Darling Darling surveys conducted annually Harbour $113.31 ✔ Yes $106.31 $110.92 Harbour > $100 > $105
6 Sydney Harbour Foreshore Authority Annual Report 2007–08 Target Result Target Improvement Result Result Target Key Performance Indicators 2007–08 2007–08 achieved on 2006–07 2006–07 2005–06 2008–09 Customers and stakeholders continued The Rocks The Rocks $62.82 ✔ Yes $61.69 $66.37 Average Sydneysider visitor spend > $55 > $60 – per visit to precinct based on 800 Darling Darling surveys conducted annually Harbour $61.92 ✔ Yes $57.84 $62.32 Harbour > $55 > $60 The Rocks The Rocks -2.2% ✘ No -2.1% 0.5% > 3% > 3% Darling Darling Change in visitor numbers Harbour 2.6% ✘ No 7.9% -1.5% Harbour compared to previous year > 3% > 3% All precincts All precincts 1% ✘ No 4.4% -0.8% > 3% > 3% Sydney Visitor Centres visitor 995,000 948,968 ✘ No 968,093 994,624 970,000 numbers The Rocks Discovery Museum > 90,000 98,615 ✔ Yes 87,056 26,382* > 96,000 visitor numbers The Rocks Market visitor numbers 1,400,000 1,405,802 ✔ Yes 1,371,200 1,233,962 1,445,000 Chinese Garden of Friendship 185,000 185,662 ✔ Yes 185,183 182,417 190,000 visitor numbers Sydney Convention and Exhibition Centre economic contribution – $474 $474 $478 $481 $493 based on Sydney Convention and ✔ No million million million million million Visitor Bureau estimated spend per type of delegate The Rocks The Rocks 2 hours 2 hours 2 hours > 2 hours ✔ Yes > 2 hours 56 minutes 48 minutes 42 minutes Average length of Sydneysider 30 minutes 30 minutes visitor stay – based on 800 surveys Darling Darling conducted annually Harbour 3 hours 2 hours Harbour ✔ Yes 3 hours > 2 hours 12 minutes 54 minutes > 2 hours 30 minutes 30 minutes The Rocks The Rocks 6 visits ✔ Yes 5 visits 4.7 visits Repeat visits – average number of > 5 visits > 5 visits visits to the precinct made within the past 12 months based on 800 Darling Darling surveys conducted annually Harbour 6.8 visits ✔ Same result 6.8 visits 6.6 visits Harbour > 6.5 visits > 6.5 visits Number of safety related incidents per 100,000 visitors – incidents The Rocks The Rocks 0.88 ✔ Yes 0.98 1.4 include lost person, lost property, < 5 < 5 first aid required, OH&S, property damage, threat, theft, assault, irregular activities, unauthorised Darling Darling activities, alarm activation and Harbour 0.39 ✔ No 0.28 0.25 Harbour complaints < 5 < 5 Our people – see page 38 Average number of training days > 3 days 3.86 days No 4.21 days 3.1 days > 3 days per employee ✔
Turnover for full and part-time < 15% 11.7% No 9.3% 9.1% < 15% permanent employees ✔
Financial performance – see page 50 Precinct earnings before interest, $12.382 $12.800 $15.718 $11.558 $4.928 tax, depreciation and amortisation ✔ No million million million million million (EBITDA)**
Precinct revenue growth > 4% 4.2% ✔ No 8.3% 3.2% > 4%
Expense overruns – percentage 0% -0.32% ✔ No -0.63% 0% 0% of expenditure above budget
Commercial EBITDA return on assets – the net return of the Authority’s commercial assets as > 8% 8.87% ✔ Yes 8.16% 7.60% > 8% a proportion of the total commercial asset value
*The Rocks Discovery Museum opened in December 2005 ** This excludes investment and property, plant and equiptment valuations, and defined benefit superannuation. Sydney Harbour Foreshore Authority Annual Report 2007–08 7 Chairman’s message
Sydney Harbour Foreshore Authority is one of the most dynamic organisations in the NSW Government and 2007–08 has been a particularly exciting year of change. The organisation has made an unprecedented shift towards sustainability, increased business profitability, invigorated its leadership and delivered countless benefits to our customers, visitors, tenants and stakeholders.
Sustainability enjoyment of street performance, and Corporate governance A growing consumer demand for worked with stallholders of The Rocks During the year, the Authority sustainable corporations and products Market to revitalise the shopping experienced a change in leadership has led the Authority to review its experience it offers. While we met with with the resignations of the former business practices during the past few some challenges along the way, an Chairman, Jon Isaacs, and the former years. In 2007–08, the Authority unwavering commitment to a fair CEO, Dr Robert Lang. I would like to placed environmental sustainability, outcome helped to deliver benefits thank both Jon and Robert for their social responsibility and economic to all stakeholders. enormous contribution to the Authority viability at the very core of its The Authority also progressed plans throughout a combined 16 years of operations for the first time. The for the world-class waterfront renewal service. The innovation, strategic highlight was making Darling Harbour of Barangaroo, the redevelopment of acumen and integrity that they brought and The Rocks the first precincts in Darling Walk at Darling Harbour and to the organisation and public service NSW to target eco-footprint the transformation of Ballast Point into were greatly admired by our Board reductions. In addition, the Authority a public harbourside park. On 1 May and employees. became only the second NSW 2008, the Authority also became With Jon’s departure an opportunity Government agency to pledge to responsible for a substantial part of for new leadership emerged, and I become carbon neutral. the day-to-day management of Callan was delighted to take over the reins as Other achievements included 88 Park in Lilyfield. Chairman on 1 January 2008. Two new George Street in The Rocks becoming Board members—Clive Craven and Financial performance the first State heritage listed building to Michael Gallagher—also joined the score a 5 Star Green Star Office Our business achievements contribute Board to fill existing vacancies and I Design rating and Workplace6 at to precinct longevity and this year would like to warmly welcome them Darling Harbour receiving Sydney’s included significant investments in The to the organisation. first Six Star Green Star Office Design Rocks and Darling Harbour. This was the third year of a five-year capital I would also like to introduce Robert rating. These projects and many more Domm as the new CEO of the demonstrate how the Authority is investment plan, which will see the greatest rejuvenation of these Authority, who commenced on 21 July positioning itself as a world-class 2008. Robert’s appointment will leader in sustainability. precincts in more than 20 years. Set against a backdrop of declining continue a strong tradition of Our places and customers revenue from land sales and section leadership within the Authority. He brings a demonstrated track record in The Rocks and Darling Harbour 94 development contributions, the investment has allowed the Authority heading large public agencies to the continued to attract Sydneysiders and organisation including as CEO of domestic and international visitors with to further progress towards a financially viable business model. Redfern Waterloo Authority and more than 41.5 million people enjoying General Manager of City our vibrant precincts during the year. In 2007–08, the Authority achieved a of Sydney. The Authority delivered outstanding robust 4.2 per cent growth in property place management and heritage revenue, which was another good I look forward to working with the conservation services, hosted many result given the previous year’s 8 per Board and the Authority’s employees fantastic events and supported cultural cent growth. Strong revenue growth in the year ahead as we endeavour to festivals and educational activities. combined with financial discipline deliver even better results for the people of New South Wales. The Authority also strengthened its allowed the Authority to achieve a approach to stakeholder engagement. positive year end result with precinct We introduced fresh marketing and earnings before interest, tax, brand initiatives for The Rocks and depreciation and amortisation of Darling Harbour to position them as $13 million and an overall surplus high value business and event of $45 million. destinations. We also worked with In the year ahead, the Authority’s key Michael Collins tenants to improve product mixes in challenge will be aligning operating the precincts, consulted with buskers expenditure and capital investments to Chairman and stakeholders to increase the local revenue growth amid the delivery of the Barangaroo renewal.
8 Sydney Harbour Foreshore Authority Annual Report 2007–08 CEO’s message
Sydney Harbour Foreshore Authority does what no other NSW Government agency can do. It is the only agency to offer such a Letter to the diverse range of services, including urban renewal, sustainable Minister place management, heritage conservation and education—and is leading the way in many of these fields. I was pleased to be appointed as Chief Executive Officer of this dynamic The Hon. Kristina Keneally MP organisation on 21 July 2008. Dr Robert Lang, who served as Chief Executive Minister for Planning Officer during 2007–08, handed me leadership of a strongly positioned and well Level 35 managed organisation, with a fine group of talented staff. I am also supported by Governor Macquarie Tower a highly professional and experienced Board. 1 Farrer Place Sydney NSW 2000 I would like to thank the Authority’s employees for their commitment and hard work during the past year. Our employees ensured that The Rocks and Darling Harbour continued to enrich the cultural life of Sydney and offered contemporary Dear Minister and heritage experiences that kept visitors coming back. In the coming years, I look forward to overseeing the urban renewal of I have pleasure in submitting Barangaroo. This project will attract new investment, commerce and the Sydney Harbour Foreshore employment to boost the NSW economy. It will also create a new harbour Authority Annual Report for the headland park and restore community access to the foreshore after more than year ended 30 June 2008. 100 years of industrial use. Barangaroo will be transformed into a vital part of the city’s CBD and will set an international benchmark for sustainable urban The report has been prepared waterfront renewal. in accordance with the Annual Reports (Statutory Bodies) I am confident that the Authority’s leadership team and employees have the vision and skill to continue to break new ground in urban renewal, sustainability, Act 1984, the Public Finance business performance and stakeholder engagement. and Audit Act 1983 and the regulations under those Acts.
Yours sincerely
Robert Domm Chief Executive Officer
Michael Collins Chairman Sydney Harbour Foreshore Authority
Robert Domm Chief Executive Officer Sydney Harbour Foreshore Authority
Sydney Harbour Foreshore Authority Annual Report 2007–08 9 Our Board
Michael Collins Chair, Audit and Risk Adjunct Professor, Faculty of Jon Isaacs FRICS Management Committee, Design Architecture and Building, BA (Hons), FAICD Sydney Harbour Foreshore University of Technology, Sydney Honorary Associate, Graduate Executive Coach, Stephenson Authority School of Government (Sydney) Adjunct Professor, Faculty of Mansell Group Deputy Chair, NSW State Built Environment, University Registered Valuer without Board member/member Lotteries of NSW limitations Chair, Sydney Harbour Foreshore Director, Order of Australia Board member/member Managing Director, Michael Authority (including Luna Park Foundation Association Collins and Associates Sydney Harbour Foreshore Reserve Trust) until 31 December Pty Limited Chair, PayPal Australia Pty Ltd Authority (including Luna Park 2007 Reserve Trust) Board member/member Chair, Business Benefits Chair, Cooks Cove Development International Pty Ltd Cooks Cove Development Chair, Sydney Harbour Foreshore Corporation until 31 December Corporation Authority (including Luna Park Chair, East West Foundation 2007 Reserve Trust) Cypress Lakes Golf and Country Heritage Council of NSW Independent Chair, Joint Chair, Cooks Cove Development Club Pty Ltd Advisory Board Sam Haddad, Director-General, Management Committee, Corporation NSW Olympic Committee Department of Planning, Rouse Hill Regional Centre became a member of the Chair, Audit and Risk Appointed as a Sydney Harbour Development Authority’s Board in October Management Committee, Foreshore Authority Board Director, Australian Technology 2005. Chris Johnson, Executive Sydney Harbour Foreshore member in February 2005 for a Park Precinct Management Ltd Director, Special Projects, Authority to 31 December 2007 period of three years. Independent Chair, Audit and Department of Planning, Reappointed in January 2008 Risk Management Committee, Redfern-Waterloo Authority attends the Board meetings for a period of three years. Business Link NSW Pty Ltd Chair, Audit and Compliance on his behalf. Committee, Redfern-Waterloo Independent Chair, Audit Authority to 31 December 2007 Clive Craven Committee of the NSW Gabrielle Trainor Australian Technology Park LLB, LLM, GAICD Aboriginal Land Council LLB, FAICD Precinct Management Ltd Board member/member Independent Chair, Risk Partner, John Connolly Parramatta Civic Place Advisory Management and Audit Sydney Harbour Foreshore and Partners Committee Authority (including Luna Park Committee, NSW Department Board member/member of Health Chair, Inter-Agency Working Reserve Trust) Sydney Harbour Foreshore Group on Callan Park Cooks Cove Development Member, Ambulance Service Authority (including Luna Park Corporation of NSW Advisory Committee Appointed as a Sydney Harbour Reserve Trust) (Deputy Chair) Foreshore Authority Board Chair, Corporate Governance Cooks Cove Development Independent Chair, Audit and member in February 2005 for Committee, Sydney Harbour Corporation Risk Management Committee a period of three years. Foreshore Authority Corporate Governance of the World Youth Day Appointed as Chair in January Audit and Risk Management Committee, Sydney Harbour Coordination Authority 2008 for a period of three years. Committee, Sydney Harbour Foreshore Authority Foreshore Authority Appointed as Chair in Victorian Urban Development Robert Domm September 2004 after serving Appointed as a Sydney Harbour Authority (VicUrban) as a Sydney Harbour Foreshore Foreshore Authority Board BA, LLB, MLLR, Graduate Commissioner, Australian Authority Board member since member in January 2008 for Diploma in Legal Practice Football League (NSW-ACT) February 1999. Reappointed as a period of three years. Board member/member Sydney Symphony Orchestra Chair in February 2005 for a Sydney Harbour Foreshore Chair, Docklands Place period of three years. Resigned Authority (including Luna Park Michael Gallagher Management and Municipal from the Authority’s Board in Reserve Trust) BSurv, BE (Civil) Committee December 2007. Cooks Cove Development Board member/member Breast Cancer Network Corporation Sydney Harbour Foreshore of Australia Robert Lang Redfern-Waterloo Authority Authority (including Luna Park St Ignatius College Council PhD, BE (Hons), BSc, FAICD, (CEO) Reserve Trust) Catholic Resources Trust, FIE (AUST), MIEEE, CPEng Australia Technology Park Cooks Cove Development Board of Management Board member/member (Managing Director) Corporation Public Interest Law Clearing Sydney Harbour Foreshore South Sydney Leagues Club Appointed as a Sydney Harbour House Authority (including Luna Park Appointed as a Sydney Harbour Foreshore Authority Board Hon Associate, Graduate Reserve Trust) Foreshore Authority Board member in January 2008 for a School of Government, Cooks Cove Development member in July 2008. period of three years. Sydney University Corporation Appointed as a Sydney Harbour Sydney Convention and Bonnie Boezeman AO Chris Johnson Foreshore Authority Board Visitors Bureau PMD diploma Harvard Business MCultHeritage, MArch (History member in December 2005 Appointed as a Sydney Harbour School, FAICD, FAMI and Theory), MBEnv, BArch for a period of three years. Foreshore Authority Board Board member/member Life Fellow, Royal Australian member in July 2003. Sydney Harbour Foreshore Institute of Architects Resigned from the Authority Authority (including Luna Park Member, Planning Institute in July 2008. Reserve Trust) of Australia – Certified Cooks Cove Development Practising Planner Corporation
10 Sydney Harbour Foreshore Authority Annual Report 2007–08 Left to right: Michael Collins, Bonnie Boezeman, Clive Craven, Michael Gallagher, Gabrielle Trainor and Robert Domm in front of 88 George Street, The Rocks. Absent: Chris Johnson
Sydney Harbour Foreshore Authority Annual Report 2007–08 11
Our structure and executive team
NSW Minister for Planning The Minister is responsible for the control and direction of the Authority.
Sydney Harbour Foreshore Authority Board The Board oversees the Authority’s policies, management and performance, sets strategic direction for the organisation and monitors compliance with statutory requirements. (see page 10)
Chief Executive Officer Robert Domm The CEO is responsible for the day-to-day management of the Authority in accordance with specific policies and general direction of the Board. Mr Domm was appointed CEO of the Authority on 21 July 2008. He also holds the role of CEO Redfern Waterloo Authority. Mr Domm holds a Bachelor of Arts, Bachelor of Laws, Master of Labour Law and Relations, and a Graduate Diploma of Legal Practice. Mr Domm has been admitted as a legal practitioner in the Supreme Courts of NSW, ACT and NT.
Executive Director Executive Director Executive Director Executive Director Tenant and Asset Major Projects Marketing and Visitor Corporate Services Management Services* Services Diana Talty was appointed Egle Garrick was appointed Bob Deacon was appointed to to the position of Executive Charmaine Moldrich was to the position of Executive the position of General Manager, Director, Major Projects on appointed to the position of Director, Corporate Services Darling Harbour on 1 August 30 May 2005. She joined the Executive Director, Marketing on 16 February 2005. She 2002 and seconded to the Authority in January 2001. and Visitor Services on 24 July joined the Authority in March position of Acting Executive Ms Talty holds a Bachelor of 2006. Ms Moldrich has more 2003. Mrs Garrick holds a Director Tenant and Asset Arts (Honours) in Government, than 20 years experience Master of Science and Society, Management Services on 28 and is a State Government in management, business Bachelor of Arts, Diploma of April 2008. Mr Deacon holds an representative on the Board development, marketing, Librarianship and a Certificate Associate Diploma in Real Estate of the Sydney Harbour sponsorship, events and of Transport Management and Valuation and is a Fellow of the Federation Trust. publicity. Ms Moldrich is on is a graduate of the Australian Australian Property Institute. the Board of CarriageWorks Institute of Company Directors’ Responsible for: Mr Deacon has extensive at Eveleigh. Diploma Course. experience in property • Commercial development Responsible for: Responsible for: management, development • Master planning and planning. • Urban renewal • Educational services • Administration services and tours Responsible for: • Project feasibilities • Corporate affairs and • Events governance • Commercial businesses • Current projects include: • Graphic design • E-services and information • Assets and facilities – Cooks Cove – Luna Park • Marketing technology • Planning, heritage and urban – Ballast Point • Sydney Visitor Centres • Finance and procurement design – Darling Walk • Human resources, culture • Project services – Callan Park and performance • Property portfolio General Manager • Planning assessment management The Rocks • Sustainability • Risk and logistics General Manager Darling Harbour Debra Dawson was appointed to the position Development Director Ian Kelly commenced at the of General Manager, The Barangaroo Authority in October 2001 and Rocks on 5 February 2007. was seconded to the position Ms Dawson has extensive Todd Murphy was appointed of Acting General Manager experience in place to the position of Development Darling Harbour on 7 April management, retail Director, Barangaroo on 1 April 2008. Mr Kelly holds the management and marketing. 2008. Mr Murphy holds a substantive position of Planning Responsible for: Bachelor of Architecture Heritage and Urban Design (Honours) and Master of Manager. He holds a Master of • Place management Urban Design. He has Architecture and has many extensive experience in the years experience in strategy and delivery of large architecture, planning, building complex urban renewal conservation and urban projects. design. Responsible for: Responsible for: • Urban renewal • Place management
*Andrew Kelly held this position from 16 February 2005 to 4 April 2008, after joining the Authority in August 2001.
12 Sydney Harbour Foreshore Authority Annual Report 2007–08 Left to right: Todd Murphy, Debra Dawson, Bob Deacon, Diana Talty, Ian Kelly, Robert Domm and Charmaine Moldrich. Absent: Egle Garrick
Sydney Harbour Foreshore Authority Annual Report 2007–08 13
Manage the business
Manage the business well and continually improve our internal processes so we do our job efficiently 80/20 and sustain business growth. Launched an 80/20 sustainability strategy NSW Government State • The draft land use plan for Callan targeting a reduction of Park in Lilyfield met with some carbon emissions of The Plan priorities community opposition. The Rocks and Darling Harbour • P1 Increased business investment Authority will consider all feedback by 80 per cent by 2020, • P2 Maintain and invest in and continue to consult with with carbon neutrality across infrastructure stakeholders as planning for the management and future uses of the Authority’s business • P3 Cutting red tape operations by 2010. Callan Park progresses. • E3 Cleaner air and progress on See page 20 greenhouse gas reductions Future directions 2008–09 • Continue the redevelopment of Authority strategic Barangaroo Barangaroo objectives • Continue work to renew Darling Commenced the first • Demonstrate leadership in social Walk in Darling Harbour and environmental sustainability stage of development of • Continue work to enhance the Barangaroo, the city’s most • Integrate innovation into continuous recreational experience offered significant urban renewal improvement to meet changing by Callan Park business needs project in a generation. • Continue the $50 million five-year See page 18 • Create and maintain commercially, plan to upgrade Sydney Convention socially and environmentally and Exhibition Centre sustainable precincts • Open the harbourside park at • Manage the impact of hallmark Ballast Point to the community 5 Stars events Gained Australia’s first 5 Star • Oversee the development of a YHA youth hostel and education centre at Green Star Office Design Challenges rating for a heritage listed the archaeological site on • The Rocks Market revitalisation Cumberland Street in The Rocks building in The Rocks. generated some concerns among • Launch The Rocks Farmers’ Market See page 20 existing stallholders and led the Authority to refine the improvement • Achieve Procurement Accreditation process to ensure a smooth under the NSW Government Agency transition for stallholders. This Accreditation Scheme 150-year-old included modifying the proposed • Install interpretation panels in Unearthed and preserved a new operating conditions, Jack Mundey Place 150-year-old intact street in establishing a stallholder advisory The Rocks. group and assisting existing See page 24 stallholders to improve their product offering.
14 Sydney Harbour Foreshore Authority Annual Report 2007–08
88 George Street shows that heritage buildings can include sustainable initiatives without losing the beauty and identity of the building
Sydney Harbour Foreshore Authority Annual Report 2007–08 15 • Restoring the historic 1910 Investment harbourmaster’s office at East Business Circular Quay, which has been listed plan reaches on the Authority’s Heritage and improvement year three Conservation Register and houses Evolution through innovation Portobello Caffé. Following an innovation drive to Sydney Harbour Foreshore Authority • Installing white and blue decorative encourage employees to submit their completed the third year of a five-year lighting between Circular Quay ideas on how to improve the business, revitalisation program for The Rocks station and George Street to help to a number of initiatives were and Darling Harbour. draw visitors into The Rocks and implemented during 2007–08. Projects totalling $16.5 million in The enhance safety and security at night. A touch screen was installed in The Rocks, and $20.3 million in Darling Rocks to display interactive wayfinding Projects in Darling Harbour Harbour, were undertaken to upgrade maps (see page 28) and blue tooth included: buildings, enhance the public domain technology was trialled in The Rocks and ensure the sustainability of both • A major upgrade of Darling Discovery Museum to allow visitors to areas for tenants, visitors and Harbour’s public domain sound download free information (see page residents. system to allow more visitors to 30). The Authority’s timesheet system enjoy live performances by In addition to meeting financial and was also automated via the extending the reach of on-stage investment targets, the Authority organisation’s intranet, corporate sound systems and to enhance continues to focus on meeting the templates and email signatures were crowd management and emergency expectations of its tenants, visitors and standardised and smart light switches response facilities. other stakeholders. Further investment which react to movement were fitted in projects will be undertaken in 2008–09 • Replacing and partially enclosing meeting rooms. so that both precincts can maintain escalators at the eastern end of The Authority will continue to their leading position in Sydney’s Pyrmont Bridge providing weather encourage the generation of ideas entertainment, tourism and protection for the public and across the organisation in 2008–09. retail sectors. a reliable connection with Market Street. Convention Centre thinks Projects in The Rocks included: • Improving lighting at Harbourside global, acts local • Creating a shared zone at Jack Car Park to eliminate dark areas Sydney Convention and Exhibition Mundey Place to improve pedestrian and increase safety for customers. Centre drives commercial visitation to safety and enhance the trading The new lighting is energy-efficient Darling Harbour, providing business for environment for local businesses and only switches on when natural the precinct’s hotels, retail areas and at the eastern end of Argyle Street. light drops below Australian major attractions. • A major refurbishment of The standard requirements. Sydney Harbour Foreshore Authority is Rocks Police Station allowing • Allocating seven green car now three years into a $50 million the NSW Police Force to return parking spaces in three of Darling five-year capital upgrade plan to to 132 George Street. Harbour’s public car parks for hybrid maintain the centre’s pre-eminent petrol-electric vehicles, which status in the Asia-Pacific region and produce less greenhouse gas increase Sydney’s share of the global emissions than standard vehicles. conference and exhibition market. In the future, the Authority may Working closer to home, the expand the initiative to include Convention Centre joined forces with car sharing networks. food rescue service OzHarvest in September 2007 to donate excess pre-packaged food. A not-for-profit organisation, OzHarvest delivers Visitation to Sydney Convention and Exhibition Centre surplus food to 118 charities throughout Sydney. Events Delegates Visitors 2007 2008 2007 2008
International 31 23 23,524 22,812
National 495 524 968,976 1,026,555
Total 526 547 992,500 1,049,367
16 Sydney Harbour Foreshore Authority Annual Report 2007–08 Green car parking spaces in Darling Harbour encourage the use of hybrid petrol- electric vehicles
Low vacancies, high rental return expressed a great deal of affection for Service Request Line which operates As at June 2008, the Authority the precinct and scored The Rocks an 24 hours, seven days a week and achieved a retail vacancy rate of average of 6.1 out of 10. Darling allows the Authority to identify key 1.78 per cent in The Rocks, compared Harbour scored an average of 6.8 out trends and issues within its precincts to the average Sydney retail strip of 10, with 62 per cent of tenants rating and respond accordingly. vacancy rate of 4.8 per cent*. In The the precinct as positive to excellent. Of the total number of requests Rocks 12 new retail leases were As a result of this feedback the received, 406 were complaints relating signed, 14 renewed and seven tenants Authority will: to various matters, including busking, exercised their options for a further • take time to meet with tenants less noise issues and the events of APEC term in accordance with the conditions formally to better understand Leaders Week. The Authority of their existing lease. In Darling concerns responded quickly and equitably, Harbour, 71 leases and licences with the majority of matters resolved were renewed. • proactively provide viable promptly and the remainder in alternatives to tenant proposals that The Authority achieved a total less than five working days. are unable to be implemented due operating lease revenue of $52.4 to practical or policy constraints The Authority also used feedback million across all its managed received during the year to improve properties in 2007–08. This reflects • tailor relevant information, including service delivery in its precincts. For a growth of 5.1 per cent, which to those who do not work in retail or example, feedback relating to cyclists exceeds the target for the year. tourism, and explore the option of a using the shared zone on Pyrmont tenant extranet. Bridge was used by the Authority to 2007 tenant survey results improve access for both pedestrians Excellence in customer service Now in its second year, the tenant and cyclists. satisfaction survey provides valuable The Authority responds efficiently and After an investigation by precinct information to help the Authority better effectively to feedback from tenants management and a meeting with the understand the changing and visitors. During the year a total of City of Sydney and the NSW environments of The Rocks and 11,446 reports, requests and Police, initiatives including additional Darling Harbour. complaints were captured in the signage, an awareness campaign for Authority’s Customer Request Approximately one in three Authority cyclists and extra police patrols were Management System. This system is tenants returned the 2007 tenant introduced. linked to a dedicated Customer survey. Overall, tenants in The Rocks
*Source: CBRE Market View
Sydney Harbour Foreshore Authority Annual Report 2007–08 17 The Rocks Market moves forward The Authority also continued to The Rocks Market has traded at the educate employees through Creating northern end of George Street every procurement workshops covering weekend for the past 16 years. During legislation, probity and processes. sustainable the past year, the Authority Nineteen significant tender processes precincts commenced revitalisation plans to were carried out by the Authority’s deliver a market that supports Procurement Team in 2007–08, Barangaroo setting a new Australian-made products and local resulting in successful contracts benchmark creative talent while minimising including demolition on the Major demolition works were environmental impact. Barangaroo site, building activities completed by the Authority at The proposed changes included within Sydney Convention and Barangaroo in the first half of 2008. increasing the number of stalls and Exhibition Centre, refurbishment The demolition works, which included improving the mix of products. These works at 100 George Street and the the removal of the former stevedoring changes generated some concerns conversion of Jack Mundey Place facilities from the 22-hectare site clear among existing stallholders and led into a shared zone. the way for the city’s biggest urban the Authority to refine the improvement The Authority also established renewal project in a generation. process to ensure a smooth transition contractor panels to assist with In May 2008, companies from across for stallholders. projects across varied disciplines the globe were invited to submit a bid An advisory group was established in including legal services, heritage to design and develop the first stage February to offer stakeholders the building conservation and of the landmark $2.5 billion project. opportunity to provide feedback on refurbishment and arborist Comprising four city blocks and public plans for expanding and improving the advisory services. open space at the southern end of market. The group has been involved The awarded contracts have ensured the site, the first stage will account in the recruitment of a new market that the Authority achieves the best for 83 per cent of the site’s manager and the planning for the value for money on competitive development area. introduction of an authentic farmers’ commercial terms. Sustainability practices, in terms of market and designers’ stalls in In 2008–09, the Authority will seek water, energy and waste technology September 2008 alongside the Procurement Accreditation under and environmental building design, market’s traditional arts, crafts the NSW Government Agency will be integral to the development and homewares. Accreditation Scheme. to ensure Barangaroo is a world benchmark in waterfront urban Alfresco dining on the menu Timely development application renewal. Outdoor licensed areas have become assessment Once completed, Barangaroo will a permanent fixture on the widened In 2007–08, the Authority assessed provide a large new foreshore park, footpaths on George Street in The 217 development applications, office space for 15,000 workers and Rocks following a review of the 60 modifications to development complete the NSW Government’s Authority’s outdoor seating policy applications and two Part 3A major 14-kilometre foreshore walk from which included a three month trial, project applications. Woolloomooloo to Anzac Bridge. assessments and community review. Of these, 273 were determined by Construction works are expected The initiative is part of the Authority’s the Authority under delegation from to begin in 2009 and be completed long-term revitalisation program for the NSW Minister for Planning and the by 2020. The Rocks which has included the Director-General of the Department widening of footpaths along George Darling Walk concept plan of Planning. The remaining six were Street, new interpretation signage on show major applications referred to the and lighting and the renewal of The Minister for determination. The concept plan for the Rocks Square. redevelopment of Darling Walk The value of work approved was Outdoor seating is designed to take in Darling Harbour was placed on $40.1 million in Darling Harbour, advantage of Sydney’s fine weather public exhibition from 16 January to $38.2 million in The Rocks and and The Rocks’ historic streetscapes 27 February 2008. Once revitalised, Circular Quay and $7.4 million in and proximity to the harbour. Darling Walk will create enhanced the Bays Precinct. linkages between the CBD and Progress in procurement Development application Darling Harbour including a visual During the year, the Authority determination times are shown in connection from the city through continued to develop its internal the chart on page 19. to Tumbalong Park. procurement and tender management processes and guidelines.
18 Sydney Harbour Foreshore Authority Annual Report 2007–08 The concept plan provides between The construction of the park follows • retention of the Ambulance Service, 64,000 and 68,000 square metres of years of careful planning, design, nurses accommodation, Writers commercial space; up to 5,000 square remediation and community Centre and Rozelle Child Care metres of retail space; 1,000 square consultation. The site has been razed Centre on the site. metres for cultural, recreation and back to bare rock to remove all Extensive community consultation was entertainment uses; car parking for contaminants from its former industrial undertaken during 2008 including: commercial tenants and the public; use, and will now be reshaped with and a new pedestrian pathway soil, plants and trees to create a • establishing a Community Reference through the site. natural headland form. The park is Panel including representatives from expected to open in early 2009. the Friends of Callan Park, The existing Darling Walk building is Leichhardt Council and the proposed for demolition in the second Plan for Callan Park University of Sydney half of 2008 with the new development expected to be completed in 2011. A draft land use plan for Callan Park • two community information sessions in Lilyfield was prepared in November • a telephone survey of 400 residents Transformation begins at 2007. The draft land use plan provides Ballast Point a framework for the ongoing Specialist mental health services relocated from Callan Park to the Construction began on a new management and future uses of Callan Concord Hospital campus in April harbourside park at Ballast Point in Park. The key proposals include: 2008. The Authority became Birchgrove in February 2008. Formerly • ongoing public ownership responsible for care, control and the site of a Caltex oil storage depot, • expansion of higher education management of a substantial part Ballast Point was acquired by the services on the site through the of the site on 1 May 2008. Services Authority on behalf of the NSW creation of a parkland campus provided by the Authority include Government in 2002. administration, security, grounds • a waterfront precinct with better Ballast Point Park will feature a configured open space and maintenance, public domain number of important environmental additional playing fields management and associated elements, including wetland areas to land management duties. filter stormwater before it enters the • a dedicated precinct for non- The NSW Government will consider harbour. The site’s rich history—from government organisations providing the views of the community and Aboriginal occupation to its recent a range of health and community stakeholders, including local industrial past—will also be interpreted services government, before making a in the park’s design. final decision on Callan Park.
Average determination times for development applications compared to local government
60
50
40
30 Average days 20
NSW local councils (net days) 10 City of Sydney (net days) The Authority (excluding major DAs) 0 The Authority (including major DAs) 2003–04 2004–05 2005–06 2006–07 2007–08*
*Data for NSW local councils and City of Sydney was unavailable at time of publishing.
Sydney Harbour Foreshore Authority Annual Report 2007–08 19 5 Stars for 88 George Street 6 Stars for Workplace6 Leadership in The former Bushells Tea Company The commercial office development warehouse at 88 George Street, The at Darling Island, Workplace6, is the sustainability Rocks, became the first State heritage first building in Sydney to be awarded Easy as 80/20 listed building to be awarded a 5 Star a 6 Star Green Star Office Design Darling Harbour and The Rocks Green Star Office Design rating from rating from the Green Building Council became the first precincts in NSW the Green Building Council of Australia of Australia. to target eco-footprint reductions, in December 2007. The waterfront site, opposite Star with Sydney Harbour Foreshore Key sustainable design features City Casino, will include black water Authority only the second NSW include windows that open to capture recycling, chilled beam air conditioning Government agency to pledge sea breezes, the installation of air technology, on-site sewage treatment, to become carbon neutral. exhausts on each floor to help roof-mounted solar panels and a The Authority’s 80/20 sustainability eliminate indoor air pollutants, water harbour heat exchange system which strategy, which was released in and energy efficient fixtures, and water will eliminate the need for a November 2007, aims to reduce the and energy sub-metering to let conventional rooftop cooling tower. carbon emissions of The Rocks and occupants better manage The on-site sewage treatment will Darling Harbour by a massive 80 per consumption. An innovative approach mean the building will produce more cent by 2020, with carbon neutrality to air conditioning using a future water than it uses and excess water across its business operations by 2010. district cooling system will also will be offered to the local community eliminate the need for a conventional for irrigation of parks and gardens.
The Authority will achieve this rooftop cooling tower and cut water 6 target with efficient energy Workplace will be owned by the GPT use and greenhouse gas emissions. Group, under leasehold from the management through technology, These features are expected to result education, renewable sources, district Authority. Due for completion in in water usage reductions of around January 2009, it is the final stage in electricity generation systems and 85 per cent and energy reductions of carbon offsets. the Authority’s revitalisation of Darling around 40 per cent. Island, which has delivered almost The Authority also aims to reduce This achievement was recognised at 2 hectares of new waterfront parks potable water consumption by 80 per a Green Building Council of Australia and a foreshore promenade for cent, to recycle or compost 80 per Breakfast with the Stars seminar in the community. cent of all waste generated in its March 2008. The council’s regular precincts and to procure 80 per cent breakfast seminars offer in-depth Green Globe benchmark of all products from recycled or case studies on Green Star certified Sydney Convention and Exhibition sustainable sources by 2020. projects to help others overcome the Centre was recognised as a Green challenges of ‘building green’. The Globe Benchmarked Convention Sustainability in action March seminar, which focused on a Centre. To meet the requirements The key targets in the Authority’s 80/20 new era of sustainability for Sydney, the centre was assessed against a sustainability strategy form the basis of attracted a record attendance of number of indicators including water the organisation’s ongoing sustainable 400 people. saving, waste sent to landfill, waste action plans. 88 George Street is the first of a recycling, paper products, cleaning The strategy will be implemented series of projects the Authority has in products and pesticide products. through five action plans concerning the pipeline to adapt many of its 94 Green Globe Asia Pacific is majority community, climate change, open heritage buildings in The Rocks to the owned by the not-for-profit Sustainable space, asset portfolio and highest sustainability standards. Tourism Cooperative Research Centre, procurement. which is the largest sustainable The action plans will address key tourism research organisation in sustainability issues in an adaptive the world. and holistic way while considering the unique places and buildings the Authority manages. The action plans will be integrated with management planning to deliver improved What is Green Star? sustainability outcomes. Green Star is a national rating system administered by the Green The Authority appointed a permanent Building Council of Australia. It is based on the environmental Corporate Sustainability Manager in management of a building including energy and water consumption April 2008 to champion its and emissions from building services. sustainability strategy.
20 Sydney Harbour Foreshore Authority Annual Report 2007–08 Alfresco dining along George Street allows visitors to enjoy The Rocks’ historic streetscapes
Sydney Harbour Foreshore Authority Annual Report 2007–08 21 Businesses in Green Star The Sustainable Development Fitout The tree with truly green partnership Guide provides mandatory rules and credentials Sydney Harbour Foreshore Authority suggested guidelines for remodelling Darling Harbour’s new 21-metre joined with nine of Australia’s leading commercial and retail premises. The Christmas tree, which was displayed landowners, investors and developers Green Building Users Guide helps for the first time in 2007, uses in February 2008 in a world first tenants to adopt a sustainable significantly less power than previous initiative—the Green Star Business approach to their ongoing use of trees. The tree is decorated with Partnership. a building. mirrors to reflect light and thousands The Green Star Business Environmental audits for tenants of light emitting diodes (LEDs) which Partnership developed by the Green are four times brighter than standard During the year, 11 businesses in The lights, yet use 90 per cent less power. Building Council of Australia commits Rocks volunteered to take part in an signatories to raising the independent environmental audit to Reducing waste and environmental performance of their assess their energy and water use, increasing recycling buildings by adopting a minimum transport needs and waste output. Green Star rating for all new properties The Authority implemented a number they own or occupy. The audits resulted in a detailed of waste reduction and recycling report and a list of ‘greenscale’ initiatives during the year including: Other Green Star Business Partnership recommendations for each business. signatories include Colonial First State, - automatically shutting down personal Businesses were also benchmarked computers at 7 pm each evening DB RREEF (now Dexus Property against other operators in the precinct Group), Insurance Australia Group, as well as similar businesses in - installing motion sensors in meeting Investa, Industry Superannuation the city. rooms to automatically turn lights off Property Trust, Mirvac, Multiplex (now when rooms are unoccupied Brookfield Multiplex), Stockland and The Rocks unites against plastic - installing dual flush cisterns in public Sydney Olympic Park Authority. The Rocks took a major step against toilets at Darling Harbour, reducing Switching to green offices plastic bags in July 2007 with more water use by 50 per cent than 70 businesses trading in their - purchasing 100 per cent Australian The Authority became a signatory to plastic bags for paper. The Authority recycled paper with recycled content the CitySwitch Green Office program distributed more than 45,000 paper greater than 80 per cent in May 2008 by committing to maintain bags and offered further stocks of the a minimum 4 star accredited tenancy recycled content paper bags through - using electronic communications Australian Building Greenhouse Sydney Visitor Centre. to issue expression of interests and Rating (ABGR). payslips Eco-friendly weed control The program is a partnership between - processing timesheets and leave the Sydney CBD, North Sydney and At the end of 2007, sustainable applications online Parramatta; the cities of Melbourne, horticultural trials commenced at Perth, Adelaide and Brisbane and Darling Harbour. Initiatives included - printing promotional flags and State Government agencies. The better plant selection with a focus on banners without specific dates ABGR measures the ongoing native plants, efficient use of irrigation wherever possible allowing them to performance of a building, in contrast water, the introduction of organic be re-used for around three years. to the Green Building Council of fertilisers, a full irrigation system audit Lights out for Earth Hour Australia’s Green Star rating which and on-site cultivation of efficient applies to building design. micro-organisms to eliminate the During Earth Hour the Authority turned need for chemicals. off all non-essential lighting and was The Authority has already achieved a joined by numerous tenants 5 star Australian Building Greenhouse Employees calculate their throughout The Rocks and Darling Rating at its head office in The Rocks. carbon footprint Harbour. In Sydney’s CBD, power use was reportedly down by 8.4 per cent. Green guides launched In October 2007 the Authority Two new sustainability guides were launched an online personal carbon released by the Authority in March footprint calculator for employees. The 2008 to help tenants make their calculator takes in information about businesses environmentally personal energy usage and reports sustainable and reduce the carbon how many tonnes of carbon dioxide an footprint of The Rocks and Darling individual is responsible for—this can Harbour. then be used as a basis for change.
22 Sydney Harbour Foreshore Authority Annual Report 2007–08 The Authority’s installations in The Rocks, including life-size steel characters in Suez Canal, won a National Trust Interpretation and Presentation Award in April 2008
Double success at Annual report wins again Industry Master Builders Awards After winning an Australasian Two of the Authority’s buildings were Reporting Awards (ARA) Bronze accolades awarded NSW Master Builders Awards Award for its 2005–06 annual report, Wins for sustainability for their extensive refurbishments. the Authority’s 2006–07 annual report and street art The ‘Excellence in Construction of went one step further by achieving a Australia’s most sustainable State Adaptive Re-Use of a Historic Building Silver Award. The award recognises heritage listed building and largest up to $5 million’ award recognised the that the Authority’s report provided heritage mural won National Trust 1914 Cleland Bond building in The quality coverage of most of the ARA Awards for the Authority in April 2008. Rocks, which has been transformed criteria for world best practice annual reporting, with outstanding disclosure The Authority’s restoration of the into premier commercial space without compromising its significant in at least one major aspect of former Bushells warehouse at its business. 88 George Street won the prestigious heritage value. EnergyAustralia Award for In the second award, Sydney Full marks for Conservation-Energy Management. Convention and Exhibition Centre corruption prevention As Australia’s first 5 Star Green Star was recognised in the ‘Excellence Sydney Harbour Foreshore Authority rated office design, 88 George Street in Construction of a Hospitality was awarded a Corruption Prevention sets a new benchmark for the adaptive Building up to $10 million’ category Network Award in recognition of the re-use and environmental for its Bayside Lounge development. tools and techniques the organisation sustainability of heritage buildings. The development is part of a five- has put in place to detect corruption The Authority also won the National year refurbishment program for and raise employee awareness of its Trust’s Interpretation and Presentation the centre and provides dining, governance obligations. Award for its installations in The Rocks. private conference and business retreat facilities. These include an online procurement These include a film about the wooden system and gifts register alongside a block streets of colonial Sydney and a program of ethics training for heritage mural on George Street, employees. which is the largest of its kind in Australia.
Sydney Harbour Foreshore Authority Annual Report 2007–08 23 • assessed three Section Bringing The Rocks to life Heritage 140 applications Following the incredible public management • processed three Section response to the life-like heritage mural 139 exceptions. at the entrance to The Rocks, the Intact street found frozen in time Authority commissioned a second Delegated determinations are listed mural in March 2008. Located in A 150-year-old street which has been in the Appendix on page 119. buried and forgotten for nearly 100 Gloucester Street, where the road years was discovered in The Rocks in The Authority also continued its terminates at the Cahill Expressway, April 2008. The extraordinary heritage maintenance program in The the black and white, full-scale mural archaeological site was unearthed Rocks and Darling Harbour to ensure is a reproduction of an original photo during the Authority’s refurbishment all its heritage items are maintained to of Gloucester Street as it was in 1901. the highest standard in accordance works at the heritage Mariners Church The mural is part of The Rocks’ with the Heritage Council’s guidelines. at 100 George Street. ongoing interpretation strategy which The discovery includes the remains of Ongoing conservation was developed to illustrate the historic Bethel Street—one of Sydney’s earliest management stories of the precinct for locals and visitors. It includes a number of roads—complete with a sandstone The Authority continued its program approaches to interpretation including curb, footpath and a two-metre high to prepare Conservation Management footpath inlays, wall-mounted glass retaining wall. Much of the street was Plans (CMPs) for all items in The Rocks panels and murals. demolished around 1909 when a listed on the State Heritage Register. purpose-built Coroner’s Court was The program resulted in the Other interpretive works completed constructed at 102 George Street. preparation of 26 CMPs in 2007–08, during the year include back-lit steel The Authority will incorporate the with a further 24 scheduled for plate figures of the 19th century find into the refurbished building so completion during 2008–09. members of The Rocks Push along Suez Canal and an interpretive panel that it can be preserved and visible The State Heritage Register lists 105 for the Horse Ferry Wharf, which to visitors. buildings and sites owned by the serviced ferry traffic at Dawes Point Authority. Under the NSW Heritage Act Youth hostel to keep dig site alive prior to the opening of Sydney Harbour 1977, CMPs are required to guide the Bridge in 1932. The construction of a 106-room conservation and future use of these youth hostel and archaeological centre heritage items. on a dig site in The Rocks was given the green light in early 2008. The Heritage management guide Managing development by YHA NSW will be assists tenants hallmark elevated to enable preservation and Following completion of an extensive viewing of the site’s historical artefacts refurbishment of the Argyle Stores and events including rare surviving remnants of Cleland Bond building complex in April Australia’s first European settlement 2007, a Heritage Management Guide APEC Leaders Week from the late 18th century. was published to highlight the history The Australian Government hosted Sydney Harbour YHA hostel and The and significance of the property and the week-long Asia-Pacific Economic Big Dig Archaeology Education Centre assist incoming tenants to develop Cooperation (APEC) Leaders Week are expected to open in late 2009. heritage sensitive fitouts. in Sydney in September 2007. The Authority collaborated with the Office Heritage maintenance Restoration complete on of Protocol and Special Events, a Under delegation from the Heritage 120-year-old ‘whip’ division of the NSW Department of Council and under the Heritage Act, A rare hydraulic ‘whip’ was restored Premier and Cabinet, to ensure that the Authority: and replaced in its original position the event was a resounding success, in the courtyard of the former Argyle and helped Sydney regain its status • assessed 45 Section 60 applications Stores building by the Authority. The as a major events city. with an average processing time whip, which was used like a goods lift, of seven days. This is substantially With APEC events held in and around was powered by high pressure water faster than the statutory assessment Darling Harbour and The Rocks, key resulting in a quick and jerky period of 40 days Authority employees were instrumental movement. Early hydraulic lifts had a in providing security, operational • processed 53 Section 57(2) significant impact on Sydney’s planning, stakeholder management, exemptions with an average architecture as they allowed the interagency coordination, processing time of two days, well construction of buildings up to eight communications and publicity support below the statutory processing storeys instead of three or four. both in the lead up to and during period of 14 days the event.
24 Sydney Harbour Foreshore Authority Annual Report 2007–08 World Youth Day During the year, the Authority used its experience in major events including APEC Leaders Week to plan for the events of World Youth Day in July 2008. This hallmark event involved The Rocks and Darling Harbour and presented Barangaroo to a worldwide audience for the first time. Barangaroo provided the focal point for the celebrations as up to 150,000 pilgrims converged on the site for a number of key ceremonies and events during the week-long Catholic celebration.
Darling Harbour Fiesta. Sydney Harbour Foreshore Authority Annual Report 2007–08 25
Customers and stakeholders
Provide excellent service to our customers and $40.4 million address their needs and expectations. Invested $40.4 million in NSW Government State Challenges community services in our precincts. Plan priorities • An interim busking policy introduced for The Rocks and Circular Quay See page 28 • R3 Reduced levels of anti-social behaviour generated some concerns among Aboriginal buskers. These were • R4 Increased participation and resolved through collaboration with 1.7 million integration in community activities Sydney Metropolitan Australian • F1 Improved health and education Aboriginal Street Theatre Around 1.7 million people* for Aboriginal people Association. attended events at Darling Harbour and The Rocks. • F2 Increased employment and • International and domestic visitation community participation for people to Sydney decreased in the year to See page 36 with disabilities March 2008*. The rising cost of fuel has affected medium and long haul • E8 More people using parks, air travel and domestic trips by road sporting and recreational facilities and air while the strong Australian Aboriginal and participating in the arts and dollar has reduced the country’s cultural activities agreement price competitiveness. Signed a Principles of Authority strategic Future directions 2008–09 Cooperation agreement objectives with the Metropolitan Local • Celebrate Darling Harbour’s 21st • Deliver outstanding customer Aboriginal Land Council. anniversary year with a series of service that demonstrates the special events See page 30 Authority’s commitment to make • Explore initiatives to increase the living places and great experiences sustainability of all future events • Partner with our stakeholders to using The Rocks Aroma Festival 2,500 develop mutually beneficial 2008 as a benchmark relationships to care for the delegates foreshore at the heart of Sydney Shared expertise in archaeology, sustainability, heritage and interpretation with more than 2,500 delegates at five key conferences. See page 32
*The number of people movements recorded. See page 37 for details on how figures are calculated.
*Source: Tourism Research Australia
26 Sydney Harbour Foreshore Authority Annual Report 2007–08
Left to right: Metropolitan Local Aboriginal Land Council CEO Allen Madden and Chairman Rob Welsh with Authority employee Tania McGregor, Chairman Michael Collins and CEO Robert Lang at the signing of the Principles of Cooperation agreement in March 2008 Promoting reconciliation and an understanding of the spiritual and cultural ties of Indigenous Australia
Sydney Harbour Foreshore Authority Annual Report 2007–08 27 Busking boost for The Rocks The interactive screen, located outside Community and Circular Quay Sydney Visitor Centre on Playfair In May 2007, the Authority acquired Street, includes a tenant directory, services administrative responsibility for event calendar and wayfinding More CCTV cameras for The Rocks busking in The Rocks and Circular technology to illustrate how to get from one point to another in the precinct. Sydney Harbour Foreshore Authority Quay from the City of Sydney. As a added a further 11 closed circuit result, the Authority developed an television cameras to its original interim policy in conjunction with the network of 16 in The Rocks and Sydney Metropolitan Australian Social Circular Quay in 2007–08. The Aboriginal Street Theatre Association. initiatives cameras allow the Authority to keep a The policy provides 16 busking constant watch on crowd numbers and pitches, including one site dedicated Investment in social and non- dispatch rangers quickly in emergency to Aboriginal performers. The policy commercial activities also regulates busking activities in the situations. During the year, the Authority spent public domain to minimise stakeholder $22.6 million on social and non- At Darling Harbour, the Authority owns concerns such as the amplification commercial activities as place and monitors a comprehensive of music. network of 122 CCTV cameras. manager of Sydney’s significant During the trial, which continued until waterfront precincts and custodian The Rocks calmed by traffic October 2007, the Authority monitored of some of the city’s most valued management plan the impact of the busking pitches natural and cultural heritage. and encouraged feedback from A traffic management trial was This operational expenditure stakeholders. Changes were made undertaken in The Rocks on Friday provided safe, secure, clean and to finalise the policy which was and Saturday nights between October well maintained public spaces for approved in May 2008. 2007 and February 2008 to reduce 41.5 million people*. It also delivered antisocial behaviour by car User friendly websites heritage maintenance; environmental enthusiasts. The trial included the planning; event management for Over the past year the Authority has partial closure of George, Alfred and social, community and celebratory worked to consolidate its portfolio of Pottinger streets and Hickson Road. activities; two visitor information corporate, government, tourism and High visibility policing was also present centres; and educational services educational websites to provide easy on George Street and Hickson Road. including The Rocks Discovery to navigate information sources that Museum. The traffic management plan was comply with the NSW Government developed by City of Sydney in Website Style Directive. The new In addition, the Authority’s total capital partnership with the Roads and Traffic sites are expected to go live in expenditure in social programs and Authority, NSW Police, Sydney October 2008. non-commercial activities was Harbour Foreshore Authority, State $17.8 million during 2007–08. This The table below shows that visits Transit Authority and The Rocks included investing in a new public to the Authority’s websites have Chamber of Commerce. domain sound system at Darling continued to increase over the Harbour and creating a shared The trial received widespread support past three years. from local residents, businesses and pedestrian zone at Jack Mundey visitors and a further trial of the traffic Interactive exploring Place in The Rocks. management plan will commence in A pilot state-of-the-art touch screen The Authority also maintains two August 2008 for a period of 12 months. kiosk was unveiled in The Rocks in significant semi-commercial assets, February 2008 to deliver information to the Chinese Garden of Friendship and visitors on demand—24 hours a day, Sydney Convention and Exhibition seven days a week. Centre, which generate more than $474 million each year for the NSW economy.
Visits to the Authority’s websites
Websites 2005–06 2006–07 2007–08 Sydney Harbour 261,705 639,793 849,167 Foreshore Authority The Rocks 970,407 997,668 1,217,652
Darling Harbour 688,430 711,023 1,147,272
*The number of people movements recorded. See page 37 for details on 28 Sydney Harbour Foreshore Authority Annual Report 2007–08 how figures are calculated. The Chinese Garden of Friendship is one of the city’s most valued cultural heritage attractions and was enjoyed by 185,662 visitors during the year
Investing in the community Continuous improvement for • installing a prototype interactive The Authority provided people with disabilities screen at The Rocks Centre to approximately $650,000 of in-kind The introduction of a formalised Plan provide easily accessible precinct support to community groups and for People with Disabilities, including information charities through venue hire, banner procedures and actions to comply with • upgrading The Rocks Mobility promotions, production equipment the Disability Discrimination Act 1992 Access map, which is available at support and other services during the (DDA), has improved the way the www.therocks.com year. The Authority’s Venue Hire Team Authority manages disability and • partnering with Tourism NSW and worked closely with community groups discrimination issues across its other public recreation providers to to coordinate various events including precincts and within the organisation. establish a trial website to provide a Buddha’s Birthday Celebrations and The Authority has focused not only on one-stop information site for those the Indian, Thai, Lebanese, Korean, physical access issues, but also on with a disability. Brazilian, Armenian, Egyptian, staff training, integrating DDA Disability Discrimination Act and Japanese, Greek, Indonesian and compliance and complaints Building Code of Australia training was Malaysian festivals. procedures with actions reported on also provided for all employees. A further $740,000 was contributed by all divisional managers twice a year. through sponsorships, including: Projects completed or in progress • $275,000 to the National Trust during the year included: • $150,000 to Sydney Festival Limited • installing disability compliant lifts • $125,000 to the City of Sydney for and ground floor toilets at 88 and New Year’s Eve fireworks 100 George Street in The Rocks • $7,000 to Summer Down Under • general access improvements – Wheelchair Sports Association. including removal of kerb and road level changes on Argyle Street in The Rocks
Sydney Harbour Foreshore Authority Annual Report 2007–08 29 Stringy-bark canoes, or nowey, were Indigenous originally used by the Cadigal people Education for fishing, travel, trade and The Rocks Discovery Museum initiatives communication on the waters of The Rocks Discovery Museum brings Principles of cooperation Sydney Harbour. the history of The Rocks, its people and The value of environmental and Using traditional materials and methods their stories to life in four permanent social sustainability in Aboriginal culture the students built a full-scale canoe, exhibitions. The free museum attracted has been recognised with the signing of which was paddled on Darling Harbour 98,615 people in 2007–08, exceeding a Principles of Cooperation agreement on Australia Day 2008, and a half-scale the Authority’s target by 9 per cent. between Sydney Harbour Foreshore model which is now exhibited in The Visitors rated the museum highly Authority and the Metropolitan Local Rocks Discovery Museum with with an average satisfaction score Aboriginal Land Council. interactive educational material. of 8.3 out of 10. The agreement, which was formally The project was also supported by In its first full year of operation, the signed by the chief executives and the NSW Department of Primary museum’s Kids Dig school holiday chairpersons of both organisations in Industries, the Tribal Warrior Association program attracted 2,294 children aged March 2008, promotes reconciliation and the Metropolitan Local Aboriginal four to 12. Of those who took part in the and an understanding of the spiritual Land Council. The Authority will provide simulated archaeological dig site and cultural ties of the Land Council. support to Alexandria Park Community experience, 92 per cent were first-time Its aim is to help ensure that Aboriginal School to continue the program. visitors to the museum. Parents rated issues are given proper consideration Supporting the Tribal Warrior Kids Dig highly with 99 per cent saying in the Authority’s activities while they would recommend it to others. recognising the organisation’s In August 2007 the Authority contributed statutory obligations. $10,000 to the Tribal Warrior Association Bluetooth technology was trialled at to help provide training, employment the museum during the 2007–08 Bark canoe re-establishes tradition and life opportunities for Aboriginal summer period after the idea was In 2007, the Authority contributed people. submitted through the Authority’s $5,000 towards a program to innovation register. Known as BlueZone, The not-for-profit association was the Bluetooth trial aimed to enhance the re-establish traditional Aboriginal originally set up by elders to train stringy-bark canoe construction at visitor experience by providing free Aboriginal skippers and crew on the content. During the trial, 55 per cent of Alexandria Park Community School harbour while educating the public in Sydney’s inner south. The program, visitors with Bluetooth enabled phones on cultural cruises. As part of the responded to an invitation sent to their which has since become part of the sponsorship the Authority took a school curriculum, aims to revive mobile to receive a free audio tour and number of teachers on its Sydney wallpaper images. ancient Aboriginal skills and encourage Learning Adventures’ Bangabaoui cross-cultural learning in the school’s Aboriginal cultural cruise, which is mostly Indigenous year 8 class. operated by the Tribal Warrior Association.
Participants in Authority educational programs
Program Number of people attending
The Rocks 98,615 Discovery Museum 87,056
Kids Dig 2,294
634*
Sydney Learning 19,500 Adventures 14,700
Technical Insight 18 Tours (groups) 10
*Kids Dig launched in April 2007 2006–07 2007–08
30 Sydney Harbour Foreshore Authority Annual Report 2007–08 A traditional Aboriginal smoking ceremony was performed at The Rocks Discovery Museum to launch the nowey canoe exhibit
Sydney Harbour Foreshore Authority Annual Report 2007–08 31 Place management behind inbound tour operators and the scenes Promoting our wholesalers and negotiated contracts Technical Insight Tours were for selling its tourism products, conducted for 18 groups during the precincts including Technical Insight Tours, year, an 80 per cent increase on New look for The Rocks and Sydney Learning Adventures and The 2006–07. The specialist tours provide Darling Harbour Rocks Pub Tour. an invaluable insight into how the New brand campaigns were launched Following the event, the Authority Authority delivers excellence in place for both The Rocks and Darling distributed 6,000 copies each of The management, waterfront development, Harbour in October 2007. Key Rocks Map, Darling Harbour Map and sustainable public spaces, tourism components of the ongoing the Sydney Visitor Pass to a number of promotion and income generation campaigns include metropolitan inbound tourism providers. A within a government framework. press, posters, flags, banners, taxi familiarisation of Sydney Learning The groups included government backs, train stations and online Adventures’ Bangabaoui Aboriginal officials, precinct development advertising. cultural cruise is also planned for Singapore school teachers in authorities, tourism organisations and The Rocks branding aims to reconnect November 2008 as a direct result conference delegates from Singapore, Sydneysiders with the precinct by of meetings held at Australian Tourism China, Korea, Malaysia and Japan. creating a sense of intimacy, intrigue Exchange. The Authority also provided and authenticity with the theme personalised tours for ministers and ‘A story around every corner’. Attracting local business senior government officials from and events China, Japan, Korea and the US, and In Darling Harbour the new brand accompanied the Russian President, focuses on the precinct’s vibrant Several marketing activities were Vladimir Putin, on a harbour cruise atmosphere with the theme ‘Expect undertaken during the year to position during APEC Leaders Week in Everything’, which targets two distinct The Rocks and Darling Harbour as September 2007. markets—18 to 39 year olds and high value business and event families. destinations. In May 2008, the Sharing our expertise Reaching our target audience Authority participated in the Australian The Authority presented papers and Events Expo. During the event, the In conjunction with the fresh brand keynote speeches on archaeology, Authority created a database of 100 campaigns, new marketing initiatives sustainability, heritage and meeting and event buyers and held an were developed to help tenants interpretation to more than 2,500 inaugural familiarisation of Darling communicate with their target delegates at five industry conferences Harbour meetings, incentives, audience. during the year. conferences and events (MICE) An online customer privilege program, products for high-end corporate This included: ‘Rewards@TheRocks’, was launched organisations. • providing a tour of harbourside in December 2007 to provide heritage sites and The Rocks The Authority continued to promote its members with free access to exclusive Discovery Museum for delegates at website www.sydneyforevents.com.au discount offers and special deals. the Australasian Archaeology as a key directory of conference and Conference at Sydney University in In Darling Harbour, a new monthly event venues in Darling Harbour and September 2007 ‘What’s On’ program was implemented The Rocks. Hits to the website grew by in November 2007 to communicate more than 11 per cent during 2007–08. • promoting the 5 Star Green Star event listings and discounts to 18 to sustainable refurbishment of 39 year olds and families through the Keeping customers coming back 88 George Street to international Darling Harbour website, precinct Promotion of the Authority’s unique industry professionals at the Green signage and Avant Cards. incentive, Sydney Visitor Pass, Cities Conference in February 2008 continued throughout the year, with • featuring 88 George Street and Maximising global tourism 65,000 passes provided to business Workplace6 at the Breakfast with the The Authority secured more than 120 and leisure tourism visitors. The pass Stars event in March 2008 scheduled appointments with buyers offers exclusive leisure, dining and • sharing expertise in planning, from around the world at Australian shopping benefits, encouraging heritage and sustainability at the Tourism Exchange, Australia’s activity in the precincts. A special Planning Institute of Australia foremost tourism trade event in June edition of the pass was also distributed national congress in April 2008. 2008. The Authority initiated to 2,000 delegates and accredited relationships with journalists during APEC Leaders Week in September 2007.
32 Sydney Harbour Foreshore Authority Annual Report 2007–08 Darling Harbour’s striking new brand campaign grabs attention all around the city, including at train stations
Sydney Harbour Foreshore Authority Annual Report 2007–08 33 Fiesta DECEMBER Our dynamic Festive facades in The Rocks events Christmas 2007 lit up The Rocks with a stunning light display on three of the Authority’s heritage buildings on The Authority develops, manages George Street. Historic photographs, and delivers a calendar of free public maritime artwork and festive imagery events in The Rocks and Darling were projected onto the facade of the Harbour each year. These events are Orient Hotel, the original police station fully funded by the Authority and many (now Christie’s) and the Union Bond have been taking place annually for Store building throughout December. almost two decades. Christmas carols and street theatre were also performed in The Rocks Square every weekend in December. JULY A richer aroma in The Rocks OCTOBER Expanding from all things coffee to Flamboyant Fiesta Christmas facade lighting also include tea, chocolate and spice, Darling Harbour’s 16th annual Latin the 10th annual Aroma Festival in The dance and music festival, Fiesta, filled Rocks brought more than 95,000 the precinct with dancers, singers and people* to Sydney’s heritage quarter performers over the 2007 October long in July 2007—a 7 per cent increase on weekend. The event, which took place last year’s event. The festival included across three main stages, also more than 25 coffee roasters, plus the included free salsa classes and an new Chocolatiers’ Boulevard and array of Latin food stalls and attracted Spice Bazaar. more than 278,000 people*. In 2008 the Aroma Festival will aim to set the benchmark for all future Authority events with a series of green NOVEMBER initiatives including composting of Markets by Moonlight coffee grounds and tea leaves, the use Over five Fridays in November 2007, of GreenPower and increased The Rocks Markets by Moonlight recycling. Sounds of Christmas in attracted record crowds to the northern Darling Harbour end of George Street. In total more Darling Harbour’s 2007 Christmas than 87,000 people* attended the concert entertained 23,000 people* SEPTEMBER Friday night street parties to enjoy the with traditional carols from around the Chinese Garden hosts the free live music, food stalls, outdoor bar world at the Cockle Bay Aquashell on Moon Festival and night markets. 1 December. The concert included the China’s Moon Festival lit up Darling lighting of the Darling Harbour Harbour’s Chinese Garden of Christmas tree on the Convention Markets by Moonlight Friendship for the first time with a Centre Forecourt by a Starlight Wish special ticketed evening event on Child and a fireworks finale. 22 and 23 September 2007. The Moon Festival is pivotal in the Chinese calendar and celebrates the full moon New Year’s Eve during its brightest period. By holding Sydneysiders and visitors flocked to the festival in the garden, the Authority Darling Harbour to welcome in 2008 brought the celebration into the CBD with free entertainment all evening and for the first time. spectacularSydney fireworks displays Harbour at 9 pm More than 500 people enjoyed and midnight. More than 205,000 traditional food, dancing, firework Foreshorepeople* welcomed in Authority’sthe New Year in effects and a sound and light show BoardDarling Harbour, members an increase of 17 driveper with a VIP opening night including key cent on last year. members of the Chinese community the organisation and two sell-out public shows. towards excellence in sustainability, The Moon Festival will return to the Chinese Garden in September 2008. business growth*The number ofand people movements innovation. recorded. See page 37 for details on how figures are calculated. 34 Sydney Harbour Foreshore Authority Annual Report 2007–08 The inaugural Moon Festival at the Chinese Garden of Friendship brought this important Chinese festival to the heart of the city for the first time
Sydney Harbour Foreshore Authority Annual Report 2007–08 35 JANUARY APRIL Australia Day by the water School holiday fun Record crowds headed to The Children were captivated by free Rocks and Darling Harbour for performances by Beasties’ animated two of Sydney’s biggest Australia petting zoo and two giant snails ridden Day parties on 26 January 2008. by imps known as ‘Gastropodia’, both At The Rocks, 142,000 people* of which featured in Darling Harbour enjoyed free performances by during the April school holidays. headline acts including Evermore. MAY–JUNE At Darling Harbour, free family Chinese Garden special events concerts, face painting, harbour parades, fireworks and the renowned In 2007–08 a number of new event Australia Day Spectacular drew more and marketing initiatives were trialled than 240,000 people* to Tumbalong in the Chinese Garden of Friendship. Park, Palm Grove and every vantage Australia Day The flagship Moon Festival was point around Cockle Bay— an followed up with a program of events increase of 10 per cent on last year. in May and June including traditional Chinese music, the Art of Penjing MARCH guided tour and bonsai demonstration Sydney joins the circus FEBRUARY–MAY and Jazz and Yum Cha in the Garden, More than 180,000 people* attended which reached more than 80 per Entertainment in Hoopla, Australia’s premier free cent capacity. The Rocks Square outdoor circus and street theatre Shoppers and diners were entertained festival, in Darling Harbour over the with a full program of weekend events 2008 Easter long weekend. World- JUNE in The Rocks Square between class acts brought acrobatics, World-class jazz and blues February and May 2008. Puppeteers stilt-walking and juggling to four open The 17th Darling Harbour Jazz and took centre stage in February, March air stages while a circus playground Blues Festival, the largest event of celebrated tragic fashion, April entertained kids of all ages. entertained the kids and May brought its kind in the Southern Hemisphere, retro back to The Rocks. brought 247,000 people* to the precinct over the 2008 June long weekend, an increase of 20 per cent on last year. Visitors were treated to free jazz workshops and performances by 40 bands.
Attendance at the Authority’s events
300,000
250,000
200,000
150,000 People movements* 100,000
50,000
0 Aroma Festival Fiesta Markets by Moonlight Christmas Concert, Darling Harbour New Eve, The Year’s Rocks Eve, Darling NewYear’s Harbour Australia The Day, Rocks Australia Darling Day, Harbour Hoopla Jazz and Blues Festival Events 2005–06 2006–07 2007–08
*The number of people movements recorded. See page 37 for details on how figures are calculated. 36 Sydney Harbour Foreshore Authority Annual Report 2007–08 SEPTEMBER JANUARY Supporting Record crowds at Darling Harbour Sydney Festival Water Fools other events Darling Harbour hosted a large As part of the month-long Sydney number of community festivals in Festival program in January 2008, September 2007. On one weekend French entertainers Ilotopie lit up In addition to its own events, the alone, crowds flocked to Chalk the Cockle Bay with two free Authority provides free, or at-cost, Walk, Earth from Above and festivals performances of Water Fools watched facilities and support for numerous from Korea, Brazil and China. This by more than 30,000 people.* cultural and community events. The abundance of community events saw Authority also derives revenue from 104,000 visitors* on Sunday 23 services to commercial events in The September—a 49 per cent increase on Rocks and Darling Harbour. MARCH an average Sunday in September. Sydney Harbour Week Sydneysiders of all ages participated JULY–DECEMBER in more than 40 events on and around OCTOBER Earth from Above the harbour during the first week in Australian International The Authority sponsored an March. Sydney Harbour Foreshore Motor Show exhibition of world-renowned Authority joined with NSW Maritime, photographs, Earth from Above, in As a must-see event for car lovers, the NSW National Parks and Wildlife Darling Harbour between July and 11-day Australian International Motor Service, Sydney Harbour Federation December 2007. The free exhibition of Show attracted more than 250,000 Trust and local businesses to large-scale photographs by Yann people to the Sydney Convention and coordinate the celebration. Arthus-Bertrand communicates the Exhibition Centre in October. pressing need for the world to adopt more sustainable environmental and APRIL social practices. DECEMBER–JANUARY NSW Seniors Week SkyView observation wheel The Authority worked in partnership A 46-metre SkyView observation with the Department of Ageing, AUGUST wheel towered over Darling Harbour’s Disability and Home Care to produce Sydney International Boat Show Chinese Garden Forecourt for a trial a dedicated Seniors Week brochure. More than 82,000 people attended the period between December 2007 and The brochure promoted a range of 2007 Boat Show at Sydney Convention January 2008. The Australian-owned attraction, retail and dining deals to and Exhibition Centre with thousands ferris wheel took 100,000 people to encourage seniors to visit Darling more visiting Darling Harbour to view the top of Darling Harbour in Harbour during the 50th annual the boats in Cockle Bay Marina. December alone. NSW Seniors Week in April. Approximately one third of visitors were from outside Sydney, including country NSW, interstate or overseas.
Monthly people movements in Darling Harbour and The Rocks
3.0 How visitors are counted Electronic people counters are installed 2.5 in key locations in Darling Harbour and The Rocks. The counters emit an infrared beam and each time a pedestrian breaks 2.0 the beam a people movement is registered. Calibration and expansion 1.5 calculations are applied to raw counts to ensure that final figures estimate total pedestrian flow. These figures include 1.0 repeat visits made by visitors, workers and residents.
People movements (millions) 0.5 Darling Harbour recorded approximately 28.27 million people movements in 2007–08, an increase of 2.6% on 2006–07. 0.0 The Rocks recorded approximately 13.23 million people movements in 2007–08, a decrease of 2.2% on 2006–07. Darling Harbour The Rocks
*The number of people movements recorded. See explanation above. Sydney Harbour Foreshore Authority Annual Report 2007–08 37
Our people
Attract, retain and grow our highly Language competent people. Five employees selected NSW Government State Future directions 2008–09 to undertake a language Plan priorities • Implement initiatives that will allow aide program. • S8 Increased customer satisfaction the Authority to successfully meet See page 41 with government services NSW Government objectives, including the delivery of Barangaroo • F2 Increased employment and and financial commitments community participation for people with disabilities • Develop further EEO activities Management including the creation of an identified Fourteen employees Authority strategic Aboriginal Tour Guide position and completed a management the implementation of a language development course. objectives aide program See page 40 • Be an employer of choice that • Continue to recognise employee attracts, retains and grows achievements through the annual competent and engaged staff to Star Awards and monthly CEO’s achieve the best results for our Guiding Principle Awards Mentoring customers and stakeholders Fourteen mentors and mentees participated in Challenges the mentoring program. • With an average employee age of See page 40 under 35 years, the Authority has implemented a number of initiatives to stabilise employee turnover, including learning and development, Team sport leadership and job rotation Thirty employees regularly opportunities. participated in Authority- sponsored team sports. See page 40 Safety Week Safety Week activities held to educate employees about occupational health and safety. See page 40
38 Sydney Harbour Foreshore Authority Annual Report 2007–08
Employees enjoy a range of learning and development opportunities, fitness programs, team sports and on-site massages that promote a happy and healthy workplace
Sydney Harbour Foreshore Authority Annual Report 2007–08 39 Safety Week Through the program, employees Employee In recognition of the importance of have access to discounted gym safety in the workplace, the Authority’s membership and fitness classes, development conducted its inaugural Safety Week lunchtime competitive sport, a quit Continual learning from 17–21 September 2007. The smoking program, flu vaccinations, health audits and assessments and As at June 2008, the Authority had a highlight of the week was a mock the Authority’s fleet bicycles. During total of 248 permanent and temporary OH&S prosecution trial, which taught 2007–08, 53 employees chose to employees. The Authority continued its more than 150 employees about receive the free flu vaccination while focus on employee development, with OH&S responsibility. 30 employees regularly participated each spending an average of four Other Safety Week activities included: in Authority-sponsored team sports. days in training during the year. • workplace inspections by the OH&S Employees were also encouraged to Twenty-three employees commenced Committee participate in the 2008 NSW Corporate a management development program, • launch of the new Healthy Lifestyle Games and other sporting events which allows them to work towards a Program website such as the City to Surf and the Diploma of Business. Of those who Sydney to Wollongong bike ride. participated in the program in 2007, • free health checks including blood 14 graduated. pressure and cholesterol Star Awards 2007 Another 30 employees participated in • distribution of safety posters and The Authority’s fourth annual Star a project management program with fact sheets. Awards were held in 2007 to recognise and celebrate the outstanding six people working towards a Opportunities for interns Certificate IV in Project Management contribution of employees. Over 175 as a result of the course. The program The Authority hosted four student employees attended the awards night aligns with the Authority’s project interns during the year to create a with many receiving recognition in management framework and equips mutually beneficial link with young categories such as customer service, employees with effective project people, raise awareness of the leadership, sustainability, innovation management skills. diverse career opportunities within and precinct promotion. the organisation and support public The Employee of the Year award went Other training and development education. programs included: to CRMS Administrator, Paul Norris Interns from the University of Sydney, recognising his excellence in delivering • customer service training for University of NSW, The Netherlands on his promises. The Team of the Year employees at the Chinese Garden University of Applied Sciences and award was won by the Events team. of Friendship and Sydney Hong Kong Baptist University were Visitor Centres placed in the Authority’s educational Employee fundraising • disability awareness workshop services and tours, marketing, The Authority’s employees participated planning assessment, heritage and • fraud and corruption prevention and in a number of social activities to raise finance teams. awareness training money for various charities, including The planning assessment intern Australia’s Biggest Morning Tea for the • online training for Microsoft Office program is held annually to provide a Cancer Council and ‘Movember’ to programs. planning student with 12 months’ work raise money for men’s health issues, specifically prostate cancer and Maximising potential with mentors experience as part of their degree. depression. The Authority’s ongoing internal mentoring program helps staff to In August 2007, employees purchased maximise their leadership potential Workplace an adolescent wheelchair for the and increase personal performance Children’s Hospital at Westmead by and career satisfaction. initiatives raising $1,300 for the Day of Difference Foundation. Also in August the Enjoying a healthy lifestyle A group of 14 mentors and mentees Authority’s City to Surf team, the SHFA participated in the mentoring program The Authority’s Healthy Lifestyle Swifts, raised almost $2,000 for the in 2007–08. Feedback from all Program provides improved employee MS Society. participants was extremely positive, retention and attraction, stress with many noting that they now have resilience, a happier and healthier The Authority’s Healthy Lifestyle clearer career goals, have successfully workplace, improved work Program sponsored a team in the obtained other positions within the performance, team cohesion, reduced Spring Cycle held in October 2007 Authority or have improved their risk of lifestyle diseases and reduced to raise funds for the MS Society. networking skills. insurance premiums.
40 Sydney Harbour Foreshore Authority Annual Report 2007–08 Equity principles also continue to be Ethnic affairs Human promoted through the Authority’s The Authority continued to develop Code of Conduct, induction sessions and implement initiatives to cater to resources for new employees and ethics training. people from culturally and linguistically Equal opportunity for all The Authority collects EEO data diverse (CALD) backgrounds. The The Authority promoted equal regularly for the Department of Premier organisation’s workforce also reflects employment opportunity (EEO) in and Cabinet’s workforce profile, which the social diversity of the general a range of projects including: measures performance in meeting workforce and significantly, this NSW Government employment diversity is represented at all levels. • development of a five-year EEO benchmarks for employees from EEO Management Plan During 2007–08 expressions of minority groups. The data also informs interest were called from employees • improving website accessibility for planning and development of EEO to undertake a language aide customers from various EEO groups initiatives. program. The program recognises • providing disability access training Trends in the representation of EEO employees who speak a second for refurbishment project managers groups among Authority employees language and assists the Authority and customer service and are shown in the table on page 42. in improving customer service for maintenance employees to improve international visitors. Upcoming EEO activities include: access to the Authority’s services Five successful applicants were • employing an Aboriginal Tour Guide and precincts. selected to undertake an online An internal audit was conducted by • implementing a language aide National Accreditation Authority Deloitte Touche Tohmatsu to review all program for Translators and Interpreters Ltd recruitment files. It was found that all • conducting an online survey to (NAATI) preparation program which selection panels were correctly formed ensure employee data is correctly will commence in 2008–09. and merit selection was achieved. captured.
CEO Guiding Principles Award winners 2007–08 The CEO’s Guiding Principles Awards were continued this year to promote a culture of excellence in service delivery, leadership and innovation based on ten guiding principles.
Month Recipient Guiding principle
July James Manser Leadership – taking responsibility for mistakes and successes
August Luisa Properzi Customer service – understanding and meeting customer expectations
September Stan Berriman Integrity – commitment to fairness and integrity in all activities
Teamwork – working together, seeking advice and recognising individual strengths October Glenda Munro and synergy of the team
November Robert Eadie Leadership – taking responsibility for mistakes and successes
December Sal Sharah Excellence – setting and achieving high standards
January Emma Donohue Integrity – commitment to fairness and integrity in all activities
February John Mitchell Integrity – commitment to fairness and integrity in all activities
People – trusting and supporting each other and respecting people for their character March Lesley Holland and their ideas
April Sara Beven Excellence – setting and achieving high standards
May Peter Wyborn Excellence – setting and achieving high standards
June Wayne Burgess Customer service – understanding and meeting customer expectations
Sydney Harbour Foreshore Authority Annual Report 2007–08 41 Employees at the Sydney Visitor in September 2007. The Authority Key activities undertaken in 2007–08: Centres combined can speak also facilitated 13 ethnic and cultural • releasing expressions of interest for 16 languages other than English, festivals within its precincts in 2007–08 short-term vacancies exceeding five including French, Spanish, Turkish, including the Brazilian, Thai and Indian days, with emphasis on supporting Italian, German, Cantonese, Mandarin, festivals. women applicants Thai, Greek and Taiwanese. Employees are encouraged to use Women in the workplace • offering part-time and work from their language skills to improve The Authority is committed to the NSW home opportunities to women communication with international and Government Action Plan for Women returning from maternity or local customers whose first language and the government’s efforts to parental leave is not English. promote workplaces that are equitable, • maintaining the female ratio on The Authority introduced traditional safe and responsive to all aspects of the Executive Team women’s lives. Chinese text brochures to promote the • releasing a maternity leave kit to Chinese Garden of Friendship and the assist women during pregnancy, Moon Festival event held in the garden maternity leave and when returning to work. Trends in the representation of EEO groups as at 30 June 2008
People People People Aboriginal from racial, with whose Total Percentage Number and Torres ethnic, People a disability Employee Number first number of of total of Strait ethno- with a requiring status of men language employees employees women Islander religious disability work was not people minority related English groups adjustment Permanent 197 54% 109 88 1 48 14 0 0 full-time Permanent 19 5% 6 13 0 4 8 0 0 part-time Temporary 18 5% 9 9 0 6 5 0 0 full-time Temporary 5 1% 1 4 0 2 1 0 0 part-time
Casual 7 30% 54 56 0 30 12 0 0
SES 5 1% 2 3 0 2 0 0 0
Board 5 1% 3 2 0 0 0 0 0 members
LWOP 2 1% 1 1 0 1 0 0 0
Senior 7 2% 4 3 0 0 0 0 0 officers
Total 368 189 179 1 93 40 0 0
Percentage - 100% 51% 49% 0.3% 25% 11% 0% 0%
Number of Chief Executive Service (CES) and Senior Executive Service (SES) positions
2002–03 2003–04 2004–05 2005–06 2006–07 2007–08
Number of CES/SES positions 5 5 5 5 5 5 Number filled by females 2 2 3 3 3 3 Positions at SES Level 7* 1 1 1 1 1 1 Positions at SES Level 4 4 4 4 4 4 4 *This position was held by Dr Robert Lang, CEO of Sydney Harbour Foreshore Authority on a total remuneration package of $327,600 per annum. A performance bonus was not paid and Dr Lang met the performance criteria outlined in his performance agreement.
42 Sydney Harbour Foreshore Authority Annual Report 2007–08 Industrial relations changes included a variation to the code incorporates the principles of The Joint Consultative Committee method of payment of annual leave ethical or responsible decision-making continued to be a productive loading and alterations to certain and respect for the law, government mechanism in discussing and grades in the Professional Officer, and community. The code also offers disseminating information. There were Administrative Officer and Operation guidance in situations where a person no industrial disputes lodged by the Officer classifications. may be unsure of the appropriate NSW Public Service Association with There were no exceptional movements course of action. Matters dealt with in the Industrial Relations Commission in wages, salaries or allowances, the code include conflicts of interest, of NSW. There was no working time except for increases awarded across copyright and licenses, internal client lost due to industrial disputes during the public sector by the Industrial information, secondary employment, the year. Relations Commission of NSW. political participation, corrupt conduct The Crown Employees (Sydney and reporting breaches of the code. Code of Conduct Harbour Foreshore Authority 2007) Ethics training for all employees Award was ratified. A major change of The Authority’s Code of Conduct continued throughout 2007–08. the Award was the replacement of the embodies the public sector values working hours clause with a flexible of integrity, diligence, economy, working hours agreement. Other efficiency and accountability. The
Employee numbers by category
30 June 2006 30 June 2007 30 June 2008 People People People Total whose whose Total whose first Total Salary scale number first first Women number of Women language number of Women of language language employees was not employees employees was not was not English English English
Salaries below clerical officer 0 0 1 0 0 0 0 0 0 grade 1; 21 year old or equivalent
Salaries from clerical officer grade 1; 21 year old rate to below 8 6 5 8 5 4 3 3 0 minimum clerk grade 1 rate or equivalent
Grade 1–2 or 31 19 8 42 19 14 39 17 7 equivalent Grade 3–5 or 36 21 7 41 27 10 40 24 8 equivalent Grade 6–9 or 65 42 9 64 37 17 65 42 10 equivalent Grade 10–12 or 42 14 2 52 20 28 54 18 11 equivalent Above Grade 12 43 11 2 40 13 7 47 15 4 or equivalent
Total number of equivalent employees in 225 113 34 247 121 80 248 119 40 established positions*
* Figures do not include casual employees. Part-time employees are counted individually.
Sydney Harbour Foreshore Authority Annual Report 2007–08 43
Corporate governance
Lead the organisation towards excellence in sustainability, innovation and business growth. New Chair Successfully appointed NSW Government State Challenges a new Chairman and two Plan priorities • The departure of the Chairman and new Board members. • S8 Increased customer satisfaction the need to fill two existing Board See page 46 with government services vacancies required a smooth leadership transition. The Authority Authority strategic objectives achieved this by implementing • Demonstrate leadership in social succession plans and an effective Award and environmental sustainability induction program.
winners • Integrate innovation into continuous Future directions 2008–09 Received a Corruption improvement to meet changing business needs • Ensure corporate structure Prevention Network Award. will deliver on the Authority’s See page 48 • Create and maintain commercially, financial goals socially and environmentally sustainable precincts • Progress with delivery of the first phase of Barangaroo as Minimising a sustainable precinct risk Achieved an average audit score of 3.4 out of 5 for risk mitigation systems. See page 49
44 Sydney Harbour Foreshore Authority Annual Report 2007–08
This is an artist’s impression of Barangaroo. The site will be designed in detail as the project progresses.
The Authority’s Board will oversee the transformation of Barangaroo, which will set an international benchmark for urban waterfront renewal
Sydney Harbour Foreshore Authority Annual Report 2007–08 45 Role of the Board The Chief Executive Officer is Sydney Harbour Foreshore Authority’s responsible for the day-to-day Proportion of time spent on various Board matters Board, which meets monthly, is management of the Authority in comprised of independent non- accordance with specific policies executive members, appointed in and general direction of the Board. 5 1 accordance with the Sydney Harbour Robert Domm was appointed as Chief Executive Officer on 21 July Foreshore Authority Act. The Board 4 2 oversees the Authority’s policies, 2008, following the resignation of management and performance, sets Robert Lang. strategic direction for the organisation Corporate Governance Committee and monitors compliance with statutory requirements. The Board A Corporate Governance Committee periodically seeks independent has been established as a standing assessment of its own performance committee of Sydney Harbour 3 and monitors organisational Foreshore Authority’s Board. The performance against strategic committee assists the Board to Activity Time objectives. This is achieved both achieve strategic leadership, good 1 Board process 3% through written reports from governance and sustainability in management and direct interaction order to enhance the Authority’s 2 Strategy and policy 27% with senior management at Board and performance. 3 Corporate governance 44% committee meetings. The committee also establishes mechanisms and policies for achieving 4 Management and The Board’s role in managing risk is business performance 19% critical to the success of the accountability of the Board and organisation. The Board must approve management. 5 Financial reports 7% all major decisions, with detailed Committee members at financial feasibility studies required for 30 June 2008 were: every major project proposal. Where • Clive Craven, Chair • conducting the cyclical review of necessary, the Board seeks appropriate Board policies and independent professional advice to • Gabrielle Trainor making recommendations to the assist it in its decision making. The • Robert Lang, Chief Executive Board on amendments to policies proportion of time spent by the Board Officer of the Authority, who on various matters is shown in the resigned on 20 July 2008. • assisting the Chairman in chart opposite. establishing Board and Executive The Corporate Governance Committee succession plans During 2007–08, the Board’s is responsible for: membership changed following the • ensuring an effective Director retirement of Chairman Jon Isaacs. • establishing and maintaining a induction program is in place for On 1 January 2008, Mike Collins was Corporate Governance Manual new Board members and making appointed as Chairman and was • reviewing the Annual Plan of recommendations to the Board on joined on the Board by new members Strategic Discussions to be appropriate Director education Clive Craven and Michael Gallagher undertaken by the Board opportunities who filled existing vacancies. Board • reviewing the codes of conduct for • identifying and specifying the roles members’ details are shown on the Authority and for the Board to of management and the Board. page 10. provide an ethical framework for the The Code of Conduct for Board organisation and to address Audit and Risk Management Members prescribes procedures for procedures for reporting any illegal Committee disclosing and dealing with conflicts or unethical behaviour The Authority’s Audit and Risk of interest. Each Board member is Management Committee manages • recommending to the Board an kept up-to-date with organisational the organisation’s risk exposure. appropriate performance review and developments and structure and The committee’s objective is to evaluation process for the CEO, the members are issued with a complete provide independent assurance Board and its members and making set of the Authority’s policies. and assistance to the Board on recommendations regarding the Authority’s risk and fraud identified skills gaps management, control and compliance • reviewing the Authority’s framework, and its external sustainability performance accountability requirements.
46 Sydney Harbour Foreshore Authority Annual Report 2007–08 The Authority works to maintain commercially, socially and environmentally sustainable precincts, including Darling Harbour
Sydney Harbour Foreshore Authority Annual Report 2007–08 47 Committee members at 30 June 022008 Knowledge management The Authority has developed an online were: The knowledge management tools program to assist in fraud and • Bonnie Boezeman, Chair framework, developed in 2006–07, corruption prevention and improve the continued to assist in the improvement transparency of internal processes. • Clive Craven of business performance by capturing, This includes an online procurement • Jim Mitchell.** developing and sharing knowledge in system and gifts register. Supporting these tools has been a program of The Audit and Risk Management the organisation. ethics and fraud awareness Committee is responsible for: Initiatives implemented during the year workshops facilitated by Deloitte • reviewing the Executive’s risk included: Touche Tohmatsu for all employees. management framework and • reviewing the Authority’s electronic The award demonstrates the procedures for managing the data management system Authority’s commitment to integrity Authority’s financial and business • recording and archiving of 225 internally and in its dealings with the risks, including fraud boxes of Cross City Tunnel files and public and other organisations. • ensuring that the Authority maintains 192 boxes of procurement, heritage an effective control framework for and property records Privacy Management Plan assets, liabilities, revenues and • developing an online training tool The Authority has developed a Privacy expenditures to educate staff on records Management Plan in response to the • reviewing the annual financial management responsibilities Privacy and Personal Information Act statements and advising the Board and processes. 1998. The Act aims to protect the on actions taken in response to audit privacy of individuals from recommendations and adjustments Overseas travel inappropriate collection, storage, use and disclosure of personal information There was no overseas travel • ensuring that the Executive by NSW public sector agencies. considers legal and compliance during the year. risks as part of the Authority’s risk The plan is based on 12 information Fraud prevention assessment and management principles that establish standards for arrangements In September 2007, the Authority was using personal information in an open awarded a Corruption Prevention and accountable manner. The • acting as a forum for communication Network Award in recognition of the information protection principles apply on risk and audit matters between tools and techniques the organisation to all employees, consultants and the Board, senior management and has put in place to detect corruption contractors engaged by the Authority. internal and external auditors. and raise staff awareness of its The Privacy Management Plan is Further information about risk governance obligations. available on the Authority’s website. management and insurance is on page 49. There were no privacy complaints received during 2007–08.
Board and committee meeting attendance during 2007–08
Corporate Governance Audit and Risk Board meetings Board members Committee meetings Committee meetings Possible Attended Possible Attended Possible Attended Jon Isaacs 8 8 n/a n/a n/a n/a Rob Lang 13 13 4 4 n/a n/a Bonnie Boezeman 13 13 2 2 4 4 Gabrielle Trainor 13 11 4 3 n/a n/a Michael Collins 13 13 n/a n/a 2 2 Chris Johnson* 13 12 n/a n/a n/a n/a Clive Craven 5 5 2 2 2 2 Michael Gallagher 5 5 n/a n/a n/a n/a Jim Mitchell** n/a n/a n/a n/a 4 4
* Chris Johnson attended on behalf of Sam Haddad **Jim Mitchell is a former NSW Deputy Auditor-General and sits on the committee to provide public sector governance and statutory account expertise. He is not a Board member. 48 Sydney Harbour Foreshore Authority Annual Report 2007–08 Risk management and insurance The Authority also maintains a Credit card certification Sydney Harbour Foreshore Authority’s program of internal audits to assess The Authority has a Corporate Credit ongoing risk management program the effectiveness of controls and Card Policy, which complies with has been effective in managing the systems to mitigate risk. During the Treasurer’s Directions. Cardholders risk exposure of the Authority while year, the Authority achieved an are required to observe the policy and contributing to organisational average assessment score of 3.4 out complete a reconciliation form each objectives. of 5 for its internal audits, which were month. The Authority’s Chief Financial conducted by Deloitte Touche Officer or Chief Executive Officer Each year the Authority identifies Tohmatsu. business risks which are documented authorises recoupment. in its business plan. An operational risk The Authority carries a comprehensive The Authority currently has eight credit management plan is also developed range of insurance cover through the cards on issue with a combined limit and implemented as a key component Treasury Managed Fund (TMF). This of $34,000. of major projects, events and activities. insurance covers property, public liability, directors’ insurance and other Legislative changes and The Authority faces risk relating to contingencies. Unlike private sector departures failing to achieve key project insurance policies, the TMF has limited There were no changes to Sydney objectives, budgets and deadlines; exclusions. In particular, all properties failing to meet government standards, Harbour Foreshore Authority’s owned or managed by the Authority legislation during 2007–08. laws and regulations; failing to achieve are covered for their replacement income or expenditure targets; value. The Authority’s insurance Specialised consultants unsatisfactory delivery of services to premium has reduced again this year The Authority engages consultants for internal and external customers and due to a favourable claims ratio damage to the organisation’s specialised work only where there is performance and the transfer of no in-house expertise. reputation and brand. insurance liabilities for a selected Two forums, the Board Audit and Risk number of new leases. The Authority has used consultants in Management Committee and the specialist areas such as engineering, The Authority carries no officers’ technology and business systems Executive Sustainability and Risk professional liability insurance, but all Committee, both convened four times analysis, planning, property, design public service officers are covered by and environment. in 2007–08 to address risk a State indemnity against claims that management. do not involve negligence. Two consultants whose fees were The work of individual employees is more than $30,000 were engaged monitored through monthly feedback Freedom of information during the year as shown in the table sessions with managers. Individual The Freedom of Information Act 1989 below. These fees totalled $150,535. and team risk management programs enables a member of the public to Twelve consultants whose fees were deal with information security, access documents held by the up to $30,000 were also engaged, occupational health and safety, Authority. During the year the Authority with fees totalling $133,440. business continuity planning, processed 36 freedom of information accounting, leave management requests. Details of these requests are and payroll. shown in the Appendix on page 113.
Consultants engaged during 2007–08 with fees over $30,000
Consultant name Description Total
Business Catalyst Consulting Business process improvement and IT strategies $39,200
CB Richard Ellis Pty Ltd Financial modelling and risk assessment $111,335
Total $150,535
Sydney Harbour Foreshore Authority Annual Report 2007–08 49 Financial performance
Stabilise the business financially so we can Investment continue to achieve our important work. Completed the third year of NSW Government State Challenges a five-year capital investment Plan priorities • With declining revenue from land plan for The Rocks and • P1 Increased business investment sales and section 94 development Darling Harbour. • P2 Maintain and invest in contributions, the Authority’s capital See page 16 infrastructure investment plan for the precincts allowed it to further progress towards Authority strategic objectives a financially viable business model. • Consolidate and grow the business Future directions 2008–09 Property profitably to achieve financial sustainability • Complete year four of the five-year revenue revitalisation plan for The Rocks and Achieved a robust 4.2 per • Progress the current five-year capital Darling Harbour cent growth in property plan on time, within budget and with agreed returns • Effectively align operating revenue building on the expenditure and capital investments previous year’s 8 per to revenue growth amid the delivery cent growth. of the Barangaroo renewal See page 8 $45 million Achieved a positive year end result with precinct earnings before interest, tax, depreciation and amortisation of $13 million and an overall surplus of $45 million. See page 54
Contents Trading entities explained In March 2006, changes to the NSW Government’s employment legislation Sydney Harbour brought all State employees under employment by the NSW Government in the Foreshore Authority 52 service of the Crown. To reflect this change, Sydney Harbour Foreshore Authority was split into three separate entities. Office of the Sydney Harbour Employees (except casual employees) are employed by the NSW Government to Foreshore Authority 88 work in the Office of the Sydney Harbour Foreshore Authority. Casual employees are employed by the Sydney Harbour Foreshore Authority Casual Staff Division. Sydney Harbour Foreshore For all activities apart from employment, the Authority trades and operates as Authority Casual Sydney Harbour Foreshore Authority. Staff Division 104 The financials in this report are shown according to these three trading entities.
50 Sydney Harbour Foreshore Authority Annual Report 2007–08 Good financial performance allows the Authority to create and maintain commercially, socially and environmentally sustainable precincts
Sydney Harbour Foreshore Authority Annual Report 2007–08 51 Sydney Harbour Foreshore Authority Financial Statements For the year ended 30 June 2008
Statement by the Chairman and the Chief Executive Officer on the adoption of the financial statements for the year ended 30 June 2008 Certificate Under Section 41C of the Public Finance and Audit Act 1983. Pursuant to Section 41C (1B) of the Public Finance and Audit Act 1983 and in our capacity as Chairman and Chief Executive Officer of Sydney Harbour Foreshore Authority, we declare that in our opinion: 1. The accompanying financial statements exhibit a true and fair view of the financial position of Sydney Harbour Foreshore Authority as at 30 June 2008 and transactions for the year ended on that date. 2. The statements have been prepared in accordance with the provisions of the Public Finance and Audit Act 1983, the Public Finance and Audit Regulation 2005 and the Treasurer’s Directions. Further, we are not aware of any circumstances that would render any particulars included in the financial statements to be misleading or inaccurate.
Michael Collins Robert Domm Chairman Chief Executive Officer Sydney Harbour Foreshore Authority Sydney Harbour Foreshore Authority
14 October 2008 Sydney
52 Sydney Harbour Foreshore Authority Annual Report 2007–08 Sydney Harbour Foreshore Authority INDEPENDENT AUDITor’s REPORT For the year ended 30 June 2008
Sydney Harbour Foreshore Authority Annual Report 2007–08 53 Sydney Harbour Foreshore Authority For the year ended 30 June 2008
54 Sydney Harbour Foreshore Authority Annual Report 2007–08 Sydney Harbour Foreshore Authority
START OF AUDITED FINANCIAL STATEMENTS INCOME STATEMENT For the year ended 30 June 2008
Consolidated Authority Notes 2008 2007 2008 2007 $’000 $’000 $’000 $’000
Revenue from continuing operations 3 154,799 155,750 154,799 155,750 Other income 4 48,599 2,872 48,599 2,872 Property related expenses 5 (74,223) (71,001) (74,223) (71,001) Employee benefits expense 5 (28,904) (25,494) (28,904) (25,494) Depreciation and amortisation expense 5 (17,656) (15,260) (17,656) (15,260) Finance costs 5 (863) (872) (863) (872) Other expenses 5 (36,615) (34,371) (36,615) (34,371)
Surplus before income tax equivalent 45,137 11,624 45,137 11,624 Income tax equivalent 6 (262) (1,208) (262) (1,208) Surplus for the year after income tax equivalent 44,875 10,416 44,875 10,416
The above income statement is to be read in conjunction with the attached notes.
Sydney Harbour Foreshore Authority Annual Report 2007–08 55 Sydney Harbour Foreshore Authority Balance Sheet As at 30 June 2008
Consolidated Authority Notes 2008 2007 2008 2007 $’000 $’000 $’000 $’000
Current assets Cash and cash equivalents 7 85,395 73,499 85,395 73,499 Trade and other receivables 8 13,846 7,025 13,846 10,215 Inventories 9 963 971 963 971 Total current assets 100,204 81,495 100,204 84,685
Non-current assets Trade and other receivables 8 38 64 38 64 Inventories 9 9,824 4,090 9,824 4,090 Investment property 10 515,902 487,630 515,902 487,630 Property, plant and equipment 11 1,009,600 577,555 1,009,600 574,365 Intangible assets 12 436 639 436 639 Total non-current assets 1,535,800 1,069,978 1,535,800 1,066,788 Total assets 1,636,004 1,151,473 1,636,004 1,151,473
Current liabilities Trade and other payables 13 38,786 34,470 43,761 39,026 Prepaid lease revenue 14 5,129 4,844 5,129 4,844 Other 15 3,003 2,210 3,003 2,210 Provisions 18 17,676 20,433 12,701 15,877 Total current liabilities 64,594 61,957 64,594 61,957
Non-current liabilities Trade and other payables 13 - - 1,640 356 Prepaid lease revenue 14 425,955 403,198 425,955 403,198 Other 15 100,107 2,441 100,107 2,441 Borrowings 16 10,000 10,000 10,000 10,000 Provisions 18 89,840 356 88,200 - Total non-current liabilities 625,902 415,995 625,902 415,995 Total liabilities 690,496 477,952 690,496 477,952 Net assets 945,508 673,521 945,508 673,521
Equity Accumulated funds 19a 709,517 667,642 709,517 667,642 Asset revaluation reserve 19b 235,991 5,879 235,991 5,879 Total equity 945,508 673,521 945,508 673,521
The above balance sheet is to be read in conjunction with the attached notes.
56 Sydney Harbour Foreshore Authority Annual Report 2007–08 Sydney Harbour Foreshore Authority STATEMENT OF CHANGES IN EQUITY For the year ended 30 June 2008
Consolidated Authority Notes 2008 2007 2008 2007 $’000 $’000 $’000 $’000
Balance at the beginning of the financial year 673,521 662,226 673,521 662,226 Gain on revaluation of property, plant and equipment 19b 230,112 5,879 230,112 5,879 Net income/(expense) recognised directly in equity 903,633 668,105 903,633 668,105
Surplus for the year 44,875 10,416 44,875 10,416 Total recognised income and expense for the year 948,508 678,521 948,508 678,521
Contributions to New South Wales Government 19a (3,000) (5,000) (3,000) (5,000)
Balance at the end of the year 945,508 673,521 945,508 673,521
The above statement of changes in equity is to be read in conjunction with the attached notes.
Sydney Harbour Foreshore Authority Annual Report 2007–08 57 Sydney Harbour Foreshore Authority CASH FLOW STATEMENT For the year ended 30 June 2008
Consolidated Authority Notes 2008 2007 2008 2007 $’000 $’000 $’000 $’000
Cash flows from operating activities Receipts from customers 168,755 164,539 168,755 164,539 Payments to suppliers and employees (138,131) (127,599) (138,131) (127,599) Grants paid (125) (100) (125) (100) Interest and other finance costs paid 4,992 3,742 4,992 3,742 Income tax equivalent paid (1,219) (411) (1,219) (411) Net cash flows from operating activities 22b 34,272 40,171 34,272 40,171
Cash flows from investing activities Payments for property, plant and equipment (33,513) (24,184) (33,513) (24,184) Proceeds on sale of property, plant and equipment 33,530 - 33,530 - Payments for investment property (12,991) (10,657) (12,991) (10,657) Payments for intangible assets (137) (140) (137) (140) Net cash flows from investing activities (13,111) (34,981) (13,111) (34,981)
Cash flows from financing activities Repayment of loans (3,139) - (3,139) - Security deposits and bonds 27 95 27 95 Forward deposits and retentions (1,153) 1,562 (1,153) 1,562 Contributions to New South Wales Government paid (5,000) (11,000) (5,000) (11,000) Net cash flows from financing activities (9,265) (9,343) (9,265) (9,343)
Net increase/(decrease) in cash and cash equivalents 11,896 (4,153) 11,896 (4,153)
Cash and cash equivalents at the beginning of the financial year 73,499 77,652 73,499 77,652
Cash and cash equivalents at the end of the financial year 22a 85,395 73,499 85,395 73,499
The above cash flow statement is to be read in conjunction with the attached notes.
58 Sydney Harbour Foreshore Authority Annual Report 2007–08 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
Note 1 – Reporting entity Sydney Harbour Foreshore Authority (the Authority) as a reporting entity, comprises all entities under its control. These are: • Cooks Cove Development Corporation • Office of the Sydney Harbour Foreshore Authority • Sydney Harbour Foreshore Authority Casual Staff Division. This consolidated financial report for the year ended 30 June 2008 was authorised for issue by the Authority’s Board on 14 October 2008. Note 2 – Statement of significant accounting policies a. Basis of preparation The Authority’s financial report is a general purpose financial report which has been prepared in accordance with: • applicable Australian Accounting Standards and Australian Accounting Interpretations • the requirements of the Public Finance and Audit Act 1983. Set out below is a summary of the significant accounting policies adopted by the Authority. Historical cost convention These financial statements have been prepared under the historical cost convention, as modified by the revaluation of available- for-sale financial assets, financial assets and liabilities at fair value through profit or loss, certain classes of property, plant and equipment and investment property. Critical accounting judgements and key sources of estimation uncertainty In the application of the Authority’s accounting policies, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are recognised, or in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The Authority has assessed its profit status for the financial year ended 30 June 2008 and determined its status as not-for-profit for financial reporting purposes. The financial report is presented in Australian Dollars rounded to the nearest thousand. b. Principles of consolidation Controlled entities are all those entities over which the Authority has the power to govern the financial and operating policies so as to obtain benefits from its activities. All inter-entity balances and transactions between entities in the economic entity, including any unrealised profits or losses, have been eliminated on consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistencies with those policies applied by the parent entity. c. Revenue recognition The Authority recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity, and specific criteria have been met for each of the Authority’s activities as described below. The amount of revenue is not considered to be reliably measurable until all contingencies relating to the sale have been resolved. The Authority bases its estimates on historical results, taking into consideration the type of customer, the type of transaction, and the specifics of each arrangement. Revenue is recognised for the major business activities as follows: i. Sale of goods and services Revenue is recognised when the consolidated entity transfers the significant risks and rewards of ownership of the assets and obtains control of the assets that result from sales. ii. Grants and contributions Contributions and grants are recognised as revenue when the Authority obtains control over the asset comprising the contributions. iii. Lease revenue Lease income from operating leases is recognised on straight-line basis over the lease term. The lease payments received in advance are recorded as a liability and recognised as revenue over the lease term. iv. Investment revenue Investment revenue is recognised on an accrual basis using the effective interest method.
Sydney Harbour Foreshore Authority Annual Report 2007–08 59 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
d. Employee benefits and other provisions i. Wages and salaries, annual leave and sick leave Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to be settled within 12 months of the reporting date are recognised in respect of employees’ service up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled. ii. Long service leave The liability for long service leave is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the discount method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. Provisions made in respect of employee benefits which are not expected to be settled within 12 months are measured as the present value of the estimated future cash outflows to be made by the consolidated entity in respect of services provided by employees up to reporting date. The government bond rate of 6.45% was applied for discounting purposes. The outstanding amounts of payroll tax, workers’ compensation, insurance premiums and fringe benefits tax, which are consequential to employment, are recognised as liabilities and expenses when the employee benefits to which they relate have been recognised. iii. Retirement benefit obligations All employees of the Authority are entitled to benefits from the Authority’s superannuation plan on retirement, disability or death. The Authority has a defined benefit plan and a defined contribution plan. The defined contribution plan receives fixed contributions from the Authority and the Authority’s legal or constructive obligation is limited to these contributions. Contributions to the defined contribution fund are recognised as an expense as they become payable. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available. A liability or asset of defined benefits superannuation plans is recognised in the balance sheet, and is measured as the present value of the defined benefit obligation at the reporting date less the fair value of the superannuation fund’s assets at that date and any unrecognised past service cost. The present value of the defined benefit obligations is based on expected future payments which arise from membership of the fund to the reporting date, calculated annually by independent actuaries using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. Past service costs are recognised immediately in income, unless the changes to the superannuation fund are conditional on the employees remaining in service for a specified period of time (the vesting period). In this case, the past service costs are amortised on a straight-line basis over the vesting period. Contributions to the defined contribution fund are recognised as an expense as they become payable. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available. iv. Provisions Provisions are recognised when the Authority has a present obligation as a result of a past event, it is probable that the Authority will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the reporting date. The discount rate used to determine the present value reflects current assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense. e. Finance costs Finance costs incurred for the construction of any qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Other finance costs are expensed. f. Insurance The Authority’s insurance policies are held covering property, public liability, workers compensation, directors’ liability and other contingencies. These insurance covers are conducted through the NSW Treasury Managed Fund Scheme of self insurance for government agencies. The premium is determined by the Fund Manager based on past claim experience and the insurance coverage is reviewed periodically to ensure that it is adequate.
60 Sydney Harbour Foreshore Authority Annual Report 2007–08 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
g. Accounting for the goods and services tax (GST) Income, expenses and assets are recognised net of the amount of GST, except where: • the amount of GST incurred by the entity as a purchaser that is not recoverable from the Australian Taxation Office is recognised as part of the cost of acquisition of an asset or as part of an item of expense • receivables and payables are stated with the amount of GST included. Cash flows are included in the cash flow statement on a gross basis. However, the GST components of cash flows arising from investing and financing activities which is recoverable from, or payable to, the Australian Taxation Office are classified as operating cash flows. h. Acquisitions of assets The cost method of accounting is used for the initial recording of all acquisitions of assets controlled by the Authority. Cost is the amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire the asset at the time of its acquisition or construction or, where applicable, the amount attributed to that asset when initially recognised in accordance with the specific requirements of other Australian Accounting Standards. Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and revenues at their fair value at the date of acquisition. Fair value means the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction. Where settlement of any part of cash consideration is deferred, its cost is the cash price equivalent, that is, the deferred payment amount is effectively discounted at an asset-specific rate. i. Capitalisation thresholds The Authority’s policy is to capitalise all costs incurred in property development. Property, plant and equipment and intangible assets costing $5,000 and above individually (or forming part of a network costing more than $5,000) are capitalised. j. Revaluation of physical non-current assets Physical non-current assets are valued in accordance with Australian Accounting Standards and NSW Treasury Policy. The fair value of land under a prepaid long-term lease is negligible and as such it is recorded at $1 in the asset register. However, land under a prepaid long-term lease, irrespective of whether an upfront lease income was received, that continues to receive a rental stream is measured at fair value as investment property. Fair value of property, plant and equipment is determined based on the best available market evidence, including current market selling prices for the same or similar assets. Where there is no available market evidence, the asset’s fair value is measured at its market buying price, the best indicator of which is depreciated replacement cost. Land and buildings, including open spaces and roads, are revalued at least every five years or with sufficient regularity to ensure that the carrying amount of each asset does not differ materially from its fair value at reporting date. k. Property, plant and equipment Land and buildings are measured at fair value less depreciation recognised after the date of revaluation. Plant and equipment is stated at historical cost less accumulated depreciation. l. Depreciation of property, plant and equipment Depreciation is provided for on a straight-line basis for all depreciable assets so as to write off the depreciable amount of each asset as it is consumed over its useful life to the Authority. Estimates of remaining useful lives are made on a regular basis for all assets, with annual reassessments for major items. Land is not a depreciable asset. Depreciation of art and artefacts is not recognised because the useful life and the net amount to be recovered at the end of the useful life cannot be reliably measured. The decision not to recognise depreciation for these assets is reviewed annually. The following depreciation rates were applied in 2007–08 and 2006–07: Buildings and improvements 2.5–20% Plant and equipment 2.5–20% Motor vehicles 10–20% Furniture and fittings 10–20% IT equipment 33%
Sydney Harbour Foreshore Authority Annual Report 2007–08 61 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
m. Major inspection costs When each major inspection is performed, the labour cost of performing inspections for faults is recognised in the carrying amount of an asset as a replacement of a part, if the recognition criteria is satisfied. n. Restoration costs The estimated cost of dismantling and removing an asset and restoring the site is included in the cost of an asset, to the extent it is recognised as a liability. o. Maintenance Day-to-day servicing costs or maintenance are charged as expenses as incurred, except where they relate to the replacement of a part or component of an asset, in which case the costs are capitalised and depreciated. p. Leased assets i. Leases Leases of property, plant and equipment, where the Authority as lessee has substantially all the risks and rewards of ownership, are classified as finance leases. Finance leases are capitalised at the lease’s inception at the fair value of the leased property or, if lower, the present value of the minimum lease payments. The corresponding rental obligations, net of finance charges, are included in other short-term and long-term payables. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the income statement over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The property, plant and equipment acquired under finance leases are depreciated over the shorter of the asset’s useful life and the lease term. Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Authority as lessee are classified as operating leases. Payments made under operating leases are charged to the income statement on a straight-line basis over the period of the lease. ii. Lease incentives Lease incentives include upfront cash payments to the lessee or the reimbursement or assumption by the Authority, as the lessor, of costs of the lessee (such as relocation costs, leasehold improvements, fitout contributions and costs associated with a pre-existing lease commitment). Alternatively, the initial period of the lease term may be agreed to be rent-free or at a reduced rent, and shall be recognised, in accordance with the Australian Accounting Interpretations. iii. Operating lease incentives Operating lease incentives represent a reduction of rental income over the lease term on a straight-line basis. q. Investment properties Investment property, principally comprising freehold office buildings, is held for long-term rental yields and is not occupied by the Authority. Investment property is carried at fair value, which is based on active market prices, adjusted, if necessary, for any difference in the nature, location or condition of the specific asset. If this information is not available, the Authority uses alternative valuation methods such as recent prices in less active market or discounted cash flow projections. These valuations are reviewed annually by a member of the Australia Property Institute. Changes in fair values are recorded in the income statement as part of other income. r. Intangible assets IT development and software Costs incurred in developing products or systems, and costs incurred in acquiring software and licenses that will contribute to future period financial benefits through revenue generation and/or cost reduction, are capitalised to software and systems. Costs capitalised include external direct costs of materials and service, direct payroll and payroll related costs of employees’ time spent on the project. Amortisation is calculated on a straight-line basis over periods generally ranging from three to five years. The useful lives of intangible assets are assessed to be infinite. Intangible assets are measured initially at cost and subsequently at fair value only if there is an active market. As there is not an active market for the Authority’s intangible assets, the assets are carried at cost, less any accumulated amortisation. IT development costs include only those costs directly attributable to the development phase and are only recognised following completion of technical feasibility and where the group has an intention and ability to use the asset.
62 Sydney Harbour Foreshore Authority Annual Report 2007–08 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
s. Trade receivables Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less allowance for impairment. Collectibility of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off by reducing the carrying amount directly. An allowance account is used when there is objective evidence that the Authority will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments are considered indicators that the trade receivable is impaired. The amount of the impairment allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial. t. Inventories i. Trading stock Trading stock are stated at the lower of cost and net realisable value. Cost of stock are determined after deducting rebates and discounts. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make sales. ii. Inventories held for resale Properties developed for sale is stated at the lower of cost and net realisable value. Cost is aligned by specific identification and includes the cost of acquisition, and the development and borrowing costs during development. When development is completed borrowing costs and other holding charges are expensed as incurred. Borrowing costs included in properties developed for sale are those costs that would have been avoided if the expenditure on the acquisition and development of the properties had not been made. Borrowing costs incurred while active development is interrupted for extended periods are recognised as expenses. u. Payables These amounts represent liabilities for goods and services provided to the Authority and other amounts. Payables are recognised initially at fair value, usually based on the transaction cost or face value. Subsequent measurement is at amortised cost using the effective interest method. Short-term payables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial. v. Borrowings Borrowings are initially recognised at fair value, net of transactions costs. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the income statement, over the period of the borrowings, using the effective interest method. Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in other income or other expenses. Borrowings are classified as current liabilities unless the Authority has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. w. Contributions to New South Wales Government and tax equivalents i. Income tax equivalent The Authority is subject to paying tax equivalents which are calculated based on the accounting profit model, where the prevailing company tax rate is applied to the accounting profit. The Authority has obtained approval from the Office of State Revenue to exclude the following additional items from its accounting profit for the purpose of calculating its tax liability: - amortised leased income for long-term leases entered into before 1 January 2007 - unrealised movements in the fair value of the Authority’s investment properties. In accordance with the NSW Treasury requirements under the Tax Equivalent Regime, the Authority does not practice tax effective accounting. ii. Contributions to New South Wales Government Contributions to New South Wales Government are set by negotiation between shareholders and the Board and management of the Authority with the ultimate determination reserved for shareholders. Consideration is given to the Authority’s working capital, investment capital requirements, provision of social and non-commercial activities and an appropriate contingency for financial flexibility.
Sydney Harbour Foreshore Authority Annual Report 2007–08 63 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
x. Comparative information Except when an Australian Accounting Standard permits or requires otherwise, comparative information is disclosed in respect of the previous period for all amounts reported in the financial statements. y. New Australian Accounting Standards issues Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2008 reporting period. The Authority did not early adopt any of these Accounting Standards and Interpretations that are not yet effective: • AASB 3 Business Combinations (1 July 2009) • AASB 8 and AASB 2007-3 Operating Segments (1 January 2009) • AASB 101 and 2007-8 Presentation of Financial Statements (1 January 2009) • AASB 123 and 2007-6 Borrowing Costs (1 January 2009) • AASB 127 Consolidated and Separate Financial Statements (1 January 2009) • AASB 1004 Contributions (1 July 2008) • AASB 1049 Whole of Government and General Government Sector Financial Reporting (1 July 2008) • AASB 1050 Administered Items (1 July 2008) • AASB 1051 Land Under Roads (1 July 2008) • AASB 1052 Disaggregated Disclosures (1 July 2008) • AASB 2007-9 Amendments to Australian Accounting Standards arising from the Review of AASs 27,29 and 3; • AASB 2008-1 Amendments to Australian Accounting Standard – Share Based Payments: Vesting Conditions and Cancellations • AASB 2008-2 Amendments to Australian Accounting Standard – Puttable Financial Instruments and Obligations arising on Liquidation • Interpretation 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities (1 January 2009) • Interpretation 12 Service Concession Arrangements (1 January 2009) • Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities (1 July 2008). It is considered that the impact of these new Accounting Standards and Interpretations in future periods, except for AASB 1051 Land Under Roads, for which an assessment will be conducted in 2008–09, will have no material impact on the financial statements of the Authority.
64 Sydney Harbour Foreshore Authority Annual Report 2007–08 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
Consolidated Authority 2008 2007 2008 2007 $’000 $’000 $’000 $’000
Note 3 – Revenue from continuing operations Sydney Convention and Exhibition Centre revenue 68,476 66,453 68,476 66,453 Car parks revenue 14,095 12,661 14,095 12,661 Other major assets revenue 3,303 3,724 3,303 3,724 Operating lease revenue 52,363 49,820 52,363 49,820 Long-term lease revenue 5,129 4,844 5,129 4,844 Development contributions – Section 94 - 3,035 - 3,035 Development contributions 312 303 312 303 Grants - 205 - 205 Sydney Visitor Centre sales 1,844 1,989 1,844 1,989 Marketing revenue 2,995 3,060 2,995 3,060 Interest revenue 5,947 4,431 5,947 4,431 Other 335 5,225 335 5,225 154,799 155,750 154,799 155,750 Interest revenue is made up of the following: Interest from cash at bank 143 109 143 109 Interest from TCorp cash facility 2,802 4,322 2,802 4,322 Interest from TCorp term deposits 3,002 - 3,002 - 5,947 4,431 5,947 4,431
Note 4 – Other income Fair value increment on investment properties (refer Note 2q) 40,881 - 40,881 - Fair value increment on property, plant and equipment - 2,845 - 2,845 Gain/(loss) on disposal of property, plant and equipment (212) 27 (212) 27 Gain/(loss) on disposal of investment property 7,930 - 7,930 - 48,599 2,872 48,599 2,872 Note 5 – Expenses Property related expenses: Direct operating expenses 19,605 17,216 19,605 17,216 Others 54,618 53,785 54,618 53,785 74,223 71,001 74,223 71,001
Employee benefits expense: Directors’ fees 178 172 178 172 Employee related expenses 28,726 25,322 - - Personnel services expenses - - 28,726 25,322 28,904 25,494 28,904 25,494
Sydney Harbour Foreshore Authority Annual Report 2007–08 65 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
Consolidated Authority 2008 2007 2008 2007 $’000 $’000 $’000 $’000
Depreciation and amortisation expense: Depreciation of property, plant and equipment 15,762 14,352 15,762 14,352 Amortisation of leased assets 1,554 641 1,554 641 Amortisation of intangible assets 340 267 340 267 17,656 15,260 17,656 15,260
Finance costs: Interest on borrowing not at fair value through profit or loss 3,998 662 3,998 662 Government guarantee levy 70 91 70 91 Interest expense on leased assets 123 119 123 119 4,191 872 4,191 872 Amount capitalised (3,328) - (3,328) - Finance costs expensed 863 872 863 872
Other expenses: Administration 9,604 9,324 9,604 9,324 Fair value decrement on investment properties - 1,769 - 1,769 Sydney Visitor Centre sales – cost of goods sold 913 1,088 913 1,088 Insurance 570 972 570 972 Consultants 139 149 139 149 Auditor’s remuneration 219 176 219 176 Impairment expense on receivables 34 34 34 34 Marketing and advertising 8,478 8,711 8,478 8,711 Affordable housing levy 1,214 14 1,214 14 Repairs and maintenance 15,319 12,034 15,319 12,034 Grants: City of Sydney 125 100 125 100 36,615 34,371 36,615 34,371
Reconciliation of total maintenance expense: Maintenance expense – contracted labour and other (refer Note 5) 15,319 12,034 15,319 12,034 Employee related maintenance expenses 1,906 1,597 - - Personnel services relating to maintenance - - 1,906 1,597 Total maintenance expense 17,225 13,631 17,225 13,631
66 Sydney Harbour Foreshore Authority Annual Report 2007–08 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
Consolidated Authority 2008 2007 2008 2007 $’000 $’000 $’000 $’000
Note 6 – Income tax equivalent Surplus before income tax equivalent: 45,137 11,624 45,137 11,624 Prepaid revenue (4,801) (4,864) (4,801) (4,864) Fair value (increment)/decrement on investment property (40,881) 1,769 (40,881) 1,769 Actuarial losses/(gains) re superannuation 1,418 (1,071) 1,418 (1,071) Other unrealised gains (asset additions) - (3,433) - (3,433) Notional taxable surplus 873 4,025 873 4,025 Income tax equivalent calculated at 30% of notional taxable surplus 262 1,208 262 1,208 262 1,208 262 1,208
Note 7 – Cash and cash equivalents Cash at bank and on hand 4,272 5,116 4,272 5,116 NSW Treasury Corporation – Hour Glass short-term cash facility 21,123 68,383 21,123 68,383 NSW Treasury Corporation – short-term deposits 60,000 - 60,000 - 85,395 73,499 85,395 73,499
Note 8 – Trade and other receivables Current Rental debtors 914 736 914 736 Sundry debtors 3,898 2,937 3,898 6,127 Goods and services tax recoverable 4,609 1,724 4,609 1,724 Prepayments and accrued revenue 4,505 1,795 4,505 1,795 13,926 7,192 13,926 10,382 Less: allowance for impairment (80) (167) (80) (167) 13,846 7,025 13,846 10,215 Non-current Security bond 38 - 38 - Superannuation (refer Note 17) - 64 - - Receivable from subsidiary – superannuation - - - 64 38 64 38 64 Movement in impairment allowance Balance as at 1 July (167) (153) (167) (153) Amounts written off during the year 27 9 27 9 Amounts recovered during the year 140 95 140 95 Increase/(decrease) in allowance recognised in profit or loss (80) (118) (80) (118) Balance as at 30 June (80) (167) (80) (167)
Sydney Harbour Foreshore Authority Annual Report 2007–08 67 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
Consolidated Authority 2008 2007 2008 2007 $’000 $’000 $’000 $’000
Note 9 – Inventories Current Inventory held for resale – trading stock 963 971 963 971 963 971 963 971 Non-current Inventory held for resale – properties 9,824 4,090 9,824 4,090 9,824 4,090 9,824 4,090
Note 10 – Investment property Balance at the beginning of the financial year (at fair value) 487,630 474,939 487,630 474,939 Additions from subsequent expenditure 12,991 10,657 12,991 10,657 Disposals (25,600) - (25,600) - Transfer from property, plant and equipment - 3,803 - 3,803 Net gain/(loss) from fair value adjustments 40,881 (1,769) 40,881 (1,769) Balance at the end of the financial year (at fair value) 515,902 487,630 515,902 487,630
Property interests held under operating leases, including 99 year leases, are classified and accounted for as investment property. The fair value of land under a prepaid long-term lease is negligible and as such it is recorded at $1 in the asset register (TPP 06–3). However the fair value will increase (or re-emerge) towards the end of the lease term as the effect of the encumbrance diminishes. Land under a prepaid long-term lease, irrespective of whether an upfront lease revenue was received, that continues to receive a rental stream, will be measured at fair value per AASB 140 Investment Property. The fair value of the Authority’s investment property at the end of the financial year has been arrived at on the basis of a valuation carried out at that date by Jones Lang LaSalle, independent valuers not related to the consolidated entity. The valuation, which conforms to Australian Valuation Standards, was arrived at by reference to market evidence of transaction prices for similar properties.
Net revenue derived from investment properties Rental revenue 41,099 40,001 41,099 40,001 Direct operating expenses arising from investment properties that generate rental revenue (4,065) (5,759) (4,065) (5,759) Direct operating expenses arising from investment properties that did not generate rental revenue (259) (10) (259) (10) Total 36,775 34,232 36,775 34,232
68 Sydney Harbour Foreshore Authority Annual Report 2007–08 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
Consolidated Authority 2008 2007 2008 2007 $’000 $’000 $’000 $’000
Note 11 – Property, plant and equipment a. Land and buildings At gross value 933,810 509,349 933,810 509,349 Accumulated depreciation (22,466) (13,440) (22,466) (13,440) Carrying amount at fair value 911,344 495,909 911,344 495,909
Plant and equipment At gross value 92,432 81,003 92,432 81,003 Accumulated depreciation (39,191) (33,847) (39,191) (33,847) Carrying amount at fair value 53,241 47,156 53,241 47,156
Leased assets At gross value 4,596 4,132 4,596 4,132 Accumulated amortisation (2,036) (2,167) (2,036) (2,167) Carrying amount at fair value 2,560 1,965 2,560 1,965
Art and artefacts At gross value 8,178 8,178 8,178 8,178 Accumulated depreciation - - - - Carrying amount at fair value 8,178 8,178 8,178 8,178
Work in progress 34,277 24,347 34,277 21,157
Total property, plant and equipment 1,009,600 577,555 1,009,600 574,365
At gross value 1,073,293 627,009 1,073,293 623,819 Accumulated depreciation and amortisation (63,693) (49,454) (63,693) (49,454) Total property, plant and equipment 1,009,600 577,555 1,009,600 574,365
Sydney Harbour Foreshore Authority Annual Report 2007–08 69 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
Consolidated Authority 2008 2008 $’000 $’000
b. Reconciliations Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the financial year are set out below. Land and buildings (includes open spaces and roads) Carrying amount as at 1 July 495,909 495,909 Additions 194,349 194,349 Revaluation increment 230,112 230,112 Depreciation expense (9,026) (9,026) Carrying amount as at 30 June 911,344 911,344 Plant and equipment Carrying amount as at 1 July 47,156 47,156 Additions 13,033 13,033 Disposals (212) (212) Depreciation expense (6,736) (6,736) Carrying amount as at 30 June 53,241 53,241 Leased assets Carrying amount as at 1 July 1,965 1,965 Additions 2,058 2,058 Adjustments 91 91 Amortisation expense (1,554) (1,554) Carrying amount as at 30 June 2,560 2,560 Art and artefacts Carrying amount as at 1 July 8,178 8,178 Carrying amount as at 30 June 8,178 8,178 Work in progress Opening balance 24,347 21,157 Additions 52,257 52,258 Capitalised and transferred to fixed assets (35,622) (35,622) Expensed (6,705) (3,515) 34,277 34,277
Property, plant and equipment 1,009,600 1,009,600
70 Sydney Harbour Foreshore Authority Annual Report 2007–08 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
Consolidated Authority 2007 2007 $’000 $’000
c. Reconciliations – prior year Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the financial year are set out below.
Land and buildings (includes open spaces and roads) Carrying amount as at 1 July 507,462 507,462 Additions 14,840 14,840 Net transfer to plant and equipment (7,211) (7,211) Transfer to investments (3,176) (3,176) Revaluation decrement (8,190) (8,190) Disposals (133) (133) Depreciation expense (7,683) (7,683) Carrying amount as at 30 June 495,909 495,909 Plant and equipment Carrying amount as at 1 July 21,423 21,423 Additions 12,815 12,815 Disposals (169) (169) Transfer to investments (628) (628) Transfer to intangibles (135) (135) Net transfer from land and buildings 7,211 7,211 Revaluation increment 13,308 13,308 Depreciation expense (6,669) (6,669)
Carrying amount as at 30 June 47,156 47,156 Leased assets Carrying amount as at 1 July 1,765 1,765 Additions 841 841 Amortisation expense (641) (641) Carrying amount as at 30 June 1,965 1,965 Art and artefacts Carrying amount as at 1 July 4,298 4,298 Additions 306 306 Revaluation increment 3,574 3,574 Depreciation expense - - Carrying amount as at 30 June 8,178 8,178 Work in progress Opening balance 23,772 20,833 Additions 35,266 35,015 Capitalised and transferred to fixed assets (34,691) (34,691) 24,347 21,157 Property, plant and equipment 577,555 574,365
Sydney Harbour Foreshore Authority Annual Report 2007–08 71 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
Consolidated Authority 2008 2007 2008 2007 $’000 $’000 $’000 $’000
Note 12 – Intangible assets Cost (gross carrying amount) 1,287 1,149 1,287 1,149 Less accumulated amortisation (851) (510) (851) (510) Carrying amount 436 639 436 639
Carrying amount at the beginning of the financial year 639 599 639 599 Additions 137 140 137 140 Disposal - (23) - (23) Transfer from plant and equipment - 135 - 135 Review of depreciation rates - 55 - 55 Amortisation expense (340) (267) (340) (267) Carrying amount at the end of the financial year 436 639 436 639
Note 13 – Trade and other payables Current Trade creditors 14,146 8,001 14,146 8,001 Sundry creditors and accruals 13,437 13,171 13,437 13,171 Retention on contracts - 140 - 140 Security deposits and bonds 835 808 835 808 Income tax equivalent payable 262 1,219 262 1,219 Forward deposits 9,822 10,834 9,822 10,834 Accrued interest 105 197 105 197 Payable to subsidiary – annual leave - - 2,644 2,427 Payable to subsidiary – long service leave - - 2,331 2,129 Payable – accrued salaries, wages and on-costs 179 100 179 100 38,786 34,470 43,761 39,026 Non-current Payable to subsidiary – long service leave - - 480 356 Payable to subsidiary – superannuation - - 1,160 - - - 1,640 356 Note 14 – Prepaid lease revenue Current Unamortised revenue – upfront lease payment (refer Note 2c) 5,129 4,844 5,129 4,844 5,129 4,844 5,129 4,844 Non-current Unamortised revenue – upfront lease payment (refer Note 2c) 425,955 403,198 425,955 403,198 425,955 403,198 425,955 403,198
72 Sydney Harbour Foreshore Authority Annual Report 2007–08 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
Consolidated Authority 2008 2007 2008 2007 $’000 $’000 $’000 $’000
Note 15 – Other Current Finance lease liability 1,175 813 1,175 813 Revenue in advance 1,828 1,397 1,828 1,397 3,003 2,210 3,003 2,210 Non-current Finance lease liability 1,451 758 1,451 758 Revenue in advance 1,779 1,683 1,779 1,683 Payable to other NSW agency 96,877 ‑ 96,877 - 100,107 2,441 100,107 2,441
Note 16 – Borrowings Non-current Loans from NSW Treasury Corporation (unsecured) 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 As at 30 June 2008 the maturity profile of borrowings was: Not later than one year (current liabilities) ‑ ‑ ‑ - Later than one year but not later than five years 5,000 5,000 5,000 5,000 Later than five years 5,000 5,000 5,000 5,000 10,000 10,000 10,000 10,000
The Authority as at 30 June 2008 has a total $104m debt facility. The net fair value of these loans at balance date was $10m (2007: $10m). The weighted average effective interest rate for the year was 7.27% (2007: 7.51%) for loans.
Sydney Harbour Foreshore Authority Annual Report 2007–08 73 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
Note 17 – Superannuation The superannuation schemes for the Authority’s employees are: • State Authorities Superannuation Scheme (SASS) • State Superannuation Scheme (SSS) • State Authorities Non-contributory Superannuation Scheme (SANCS) These schemes are all defined benefit schemes – at least a component of the final benefit is derived from a multiple of member salary and years of membership. All the schemes are closed to new members. The assessed liability for the Authority at 30 June 2008 and the funds held at the reserve account at Pillar Administration are:
a. Defined Benefit Scheme as at 30 June 2008 (AASB 119 Employee Benefits)
SASS SANCS SSS Total Member numbers Contributors 7 10 3 20 Deferred benefits - - 5 5 Pensioners - - 15 15 Pensions fully commuted - - 1 1 $ ’000 $ ’000 $ ’000 $ ’000 Accrued liability (2,035) (447) (10,751) (13,233) Estimated reserve account balance 1,696 279 10,098 12,073 (339) (168) (653) (1,160) Future Service Liability (401) (182) (194) (777) Surplus in excess of recovery available from schemes - - - - Net asset/(liability) (339) (168) (653) (1,160)
Defined Benefit Scheme as at 30 June 2007 (AASB 119 Employee Benefits)
SASS SANCS SSS Total Member numbers Contributors 9 12 3 24 Deferred benefits - - 5 5 Pensioners - - 15 15 Pensions fully commuted - - 1 1 $ ’000 $ ’000 $ ’000 $ ’000 Accrued liability (2,550) (486) (10,692) (13,728) Estimated reserve account balance 2,164 334 11,294 13,792 (386) (152) 602 64 Future Service Liability (724) (230) (224) (1,178) Surplus in excess of recovery available from schemes - - - - Net asset/(liability) (386) (152) 602 64
The Future Service Liability (FSL) does not have to be recognised by the Authority. It is only used to determine if an asset ceiling limit should be imposed (AASB 119 para 58). No asset ceiling is imposed because there is no surplus in excess of recovery.
74 Sydney Harbour Foreshore Authority Annual Report 2007–08 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
b. Defined Benefit Scheme (AAS25 Financial Reporting by Superannuation Plans) Reconciliation of the assets and liabilities recognised in the balance sheet
SASS SANCS SSS 30 June 2008 30 June 2008 30 June 2008 $ ’000 $ ’000 $ ’000 Present value of defined benefit obligations (2,035) (447) (10,751) Fair value of fund assets 1,696 279 10,098 (339) (168) (653) Surplus in excess of recovery available from schemes - - - Unrecognised past service cost - - - Net asset/(liability) disclosed in balance sheet as at 30 June 2008 (339) (168) (653)
SASS SANCS SSS 30 June 2007 30 June 2007 30 June 2007 $ ’000 $ ’000 $ ’000 Present value of defined benefit obligations (2,550) (486) (10,692) Fair value of fund assets 2,164 334 11,294 (386) (152) 602 Surplus in excess of recovery available from schemes - - - Unrecognised past service cost - - - Net asset/(liability) disclosed in balance sheet as at 30 June 2007 (386) (152) 602
All Fund assets are invested by SAS Trustee Corporation at arm’s length through independent fund managers.
Movement in net liability/asset recognised in balance sheet
SASS SANCS SSS 30 June 2008 30 June 2008 30 June 2008 $ ’000 $ ’000 $ ’000 Net asset/(liability) at start of year (386) (152) 602 Net revenue/(expense) recognised in the income statement (61) (44) (1,294) Contributions 108 28 39 Net asset/(liability) disclosed in balance sheet as at 30 June 2008 (339) (168) (653)
SASS SANCS SSS 30 June 2007 30 June 2007 30 June 2007 $ ’000 $ ’000 $ ’000 Net asset/(liability) at start of year (142) (102) (763) Net expense recognised in the income statement (355) (79) 1,323 Contributions 111 29 42 Net asset/(liability) disclosed in balance sheet as at 30 June 2007 (386) (152) 602
Sydney Harbour Foreshore Authority Annual Report 2007–08 75 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
Total expense recognised in income statement
SASS SANCS SSS 30 June 2008 30 June 2008 30 June 2008 $ ’000 $ ’000 $ ’000 Current service cost (113) (28) (50) Interest on obligation (159) (30) (668) Expected return on plan assets 166 26 875 Net actuarial (losses)/gains recognised in year 45 (12) (1,450) Change in surplus in excess of recovery available from scheme - - - Past service cost - - - (Losses)/gains on curtailment and settlements - - - Total included in income statement (61) (44) (1,293)
SASS SANCS SSS 30 June 2007 30 June 2007 30 June 2007 $ ’000 $ ’000 $ ’000 Current service cost (87) (27) (47) Interest on obligation (110) (25) (630) Expected return on plan assets 134 26 756 Net actuarial (losses)/gains recognised in year (292) (53) 1,244 Change in surplus in excess of recovery available from scheme - - - Past service cost - - - (Losses)/gains on curtailment and settlements - - - Total included in income statement (355) (79) 1,323
Actual return on plan assets
SASS SANCS SSS 30 June 2008 30 June 2008 30 June 2008 $ ’000 $ ’000 $ ’000 Actual return on plan assets (126) (17) (703)
SASS SANCS SSS 30 June 2007 30 June 2007 30 June 2007 $ ’000 $ ’000 $ ’000 Actual return on plan assets 254 45 1,446
76 Sydney Harbour Foreshore Authority Annual Report 2007–08 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
Valuation method and principal actuarial assumptions at the reporting date i. Valuation method The Projected Unit Credit (PUC) valuation method was used to determine the present value of the defined benefit obligations and the related current service costs. This method sees each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation. ii. Economic assumptions
2008 2007 Discount rate at 30 June 6.55% p.a. 6.40% p.a. Expected return on plan assets at 30 June 7.80% p.a. 7.60% p.a. Expected salary increases 3.50% p.a. 4.0% p.a. to 2008; 3.5% p.a. thereafter Expected rate of CPI increase 2.50% p.a. 2.50% p.a.
Recommended contribution rates for the entity are:
SASS SANCS SSS Multiple of member contributions % member salary Multiple of member contributions 2008 2.30 2.50 0.93 2007 2.30 2.50 0.93
The method used to determine the employer contribution recommendations at the last actuarial review was the Aggregate Funding method. The method adopted affects the timing of the cost to the employer.
Under this method, the employer contribution rate is determined so that sufficient assets will be available to meet benefit payments to existing members, taking into account the current value of assets and future contributions.
The economic assumptions adopted for the last actuarial review of the Fund were:
Weighted average assumptions 2008 2007
Expected rate of return on fund assets 7.35% p.a. 7.35% p.a. Expected salary increase rate 4.00% p.a. 4.00% p.a. Expected rate of CPI increase 2.50% p.a. 2.50% p.a.
Nature of asset/liability If a surplus exists in the Authority’s interest in the Fund, the Authority may be able to take advantage of it in the form of a reduction in the required contribution rate, depending on the advice of the Fund’s actuary. Where a deficiency exists, the employer is responsible for any difference between the employer’s share of fund assets and the defined benefit obligation.
Sydney Harbour Foreshore Authority Annual Report 2007–08 77 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
Consolidated Authority 2008 2007 2008 2007 $’000 $’000 $’000 $’000
Note 18 – Provisions
Current Annual leave 2,644 2,427 ‑ - Long service leave 2,331 2,129 ‑ - 4,975 4,556 ‑ ‑
Contributions to New South Wales Government 3,000 5,000 3,000 5,000 Provision for Ballast Point – remediation and demolition ‑ 2,125 ‑ 2,125 Provision for Sharing Sydney Harbour Access Program 2,038 1,471 2,038 1,471 Other 7,663 7,281 7,663 7,281 12,701 15,877 12,701 15,877 17,676 20,433 12,701 15,877
Non-current Long service leave 480 356 ‑ - Superannuation (refer Note 17) 1,160 ‑ ‑ - Provision for property development expenses 88,200 ‑ 88,200 - 89,840 356 88,200 -
78 Sydney Harbour Foreshore Authority Annual Report 2007–08 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
Movements in provisions (other than employee benefits) Movements in each class of provision during the financial year, other than employee benefits, are set out below: Contributions Ballast Point Sharing Other Total to NSW Remediation Sydney Government and Harbour demolition Access Program $’000 $’000 $’000 $’000 $’000
2008 Carrying amount at the beginning of financial year 5,000 2,125 1,471 7,281 15,877 Additional provisions recognised 3,000 ‑ 567 88,582 92,149 Amount used (5,000) (2,125) ‑ ‑ (7,125) Carrying amount at the end of the financial year 3,000 ‑ 2,038 95,863 100,901
Consolidated Authority 2008 2007 2008 2007 $’000 $’000 $’000 $’000
Aggregate employee benefits and related on-costs Short-term Annual leave 2,644 2,427 ‑ ‑ Long service leave 82 151 ‑ ‑ 2,726 2,578 ‑ ‑ Long-term Long service leave 2,729 2,334 ‑ ‑ Superannuation 1,160 ‑ ‑ ‑ 3,889 2,334 - -
Total 6,615 4,912 ‑ -
In accordance with the NSW Treasury circular TC07/04 Accounting for Long Service Leave and Annual Leave and AASB 101 Presentation of Financial Statements, all annual leave and unconditional long service leave is presented as a current liability in the balance sheet.
Note 19 – Equity reconciliation a. Accumulated funds Balance at the beginning of the financial year 667,642 662,226 667,642 662,226 Surplus for the year 44,875 10,416 44,875 10,416 Contributions to New South Wales Government (3,000) (5,000) (3,000) (5,000) Balance at the end of the financial year 709,517 667,642 709,517 667,642 b. Asset revaluation reserve Balance at the beginning of financial year 5,879 ‑ 5,879 - Increment/(decrement) on revaluation of property, plant and equipment 230,112 5,879 230,112 5,879 Balance at the end of the financial year 235,991 5,879 235,991 5,879
Sydney Harbour Foreshore Authority Annual Report 2007–08 79 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
Consolidated Authority 2008 2007 2008 2007 $’000 $’000 $’000 $’000
Note 20 – Capital and lease commitments a. Capital commitments Contracted as at balance date 16,639 11,918 16,639 11,918 16,639 11,918 16,639 11,918
The capital commitments above include GST of $1,512,646 (contingent asset), expected to be recoverable from the Australian Tax Office.
b. Operating lease payable commitments Leasing arrangements Operating leases relate to information technology equipment, office equipment and motor vehicles. Most leases are for terms between two and three years. Future monthly payments are contracted for and are not included in these financial statements. Amounts stated are GST inclusive.
Not later than one year 335 503 335 503 Later than one year and not later than five years 66 290 66 290 Later than five years - - - - Total including GST 401 793 401 793
The operating lease commitments above include input tax credits of $36,441 (contingent asset) that are expected to be recoverable from the Australian Tax Office.
c. Operating lease receivable commitments Operating lease minimum revenue commitments in relation to non-cancellable leases, not recognised in the financial statements are receivable as follows: Not later than one year 36,962 32,488 36,962 32,488 Later than one and not later than five years 107,685 95,157 107,685 95,157 Later than five years 1,095,728 1,033,790 1,095,728 1,033,790 Total including GST 1,240,375 1,161,435 1,240,375 1,161,435
The revenue commitments relate to leases in rental properties. These are entered into at market rates and on commercial terms. Regular market valuations and tendering processes are carried out to ensure commercial arrangements are maintained. The lease commitments on rental properties include GST of $112,761,393 (contingent liability) that is expected to be payable to the Australian Taxation Office.
80 Sydney Harbour Foreshore Authority Annual Report 2007–08 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
Minimum future Present value of minimum lease payments future lease payments 2008 2007 2008 2007 $’000 $’000 $’000 $’000 d. Finance leases liabilities Finance leases mainly relate to audio visual equipment with lease terms between three and five years. Not later than one year 1,346 885 1,288 868 Later than one and not later than five years 1,560 775 1,338 703 Later than five years - - - - Minimum lease payments 2,906 1,660 2,626 1,571 Less future interest payments (280) (89) - - Present value of minimum lease payments 2,626 1,571 2,626 1,571
Included in financial statements (refer Note 15) Current lease liability 1,175 813 1,175 813 Non current lease liability 1,451 758 1,451 758 2,626 1,571 2,626 1,571
Note 21 – Contingent assets/liabilities a. Contingent assets Apart from the amounts disclosed in Note 20, there are no known contingent assets at balance date. b. Contingent liabilities In July 2004, the Land and Environment Court handed down a preliminary judgement awarding Walker Corporation Pty Ltd $60m for its compensation claim in relation to Ballast Point. Since December 2004, the Authority and Walker Corporation have jointly held a security investment of $41m with the Commonwealth Bank. In May 2005, the Authority appealed the Court’s decision, on grounds of errors in law. Judgment for the appeal was handed down on 27 July 2005 and set aside orders for the compensation claim in 2004. The Court of Appeal remitted outstanding matters of the appeal to the Land and Environmental Court which reheard the compensation matter in February 2006. On 4 April 2006, the Land and Environment Court ruled that the original valuation of $60m should stand. On 21 December 2006, the Court of Appeal allowed the Authority’s appeal and remitted the matter to the Land and Environment Court for assessment of the market value of the land, according to law. On 25 May 2007, the High Court granted Walker Corporation special leave to appeal the two Court of Appeal decisions. The matter was heard in the High Court on 6 November 2007. On 27 February 2008, the High Court ruled in favour of the Authority and awarded costs. The matter is now being remitted to the Land and Environment Court with land valuation to be redetermined. In the event the Walker Corporation loses its appeal, the deposit will be claimed by the Authority.
Sydney Harbour Foreshore Authority Annual Report 2007–08 81 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
Note 22 – Notes to the cash flow statement a. Reconciliation of cash For the purposes of the statement of cash flows, cash includes cash on hand, in banks and investments in money market instruments, net of outstanding bank overdrafts. Cash at the end of the financial year as shown in the statement of cash flows is reconciled to the related items in the balance sheet as follows: Consolidated Authority 2008 2007 2008 2007 $’000 $’000 $’000 $’000
Cash at bank and on hand 4,272 5,116 4,272 5,116 Investments (NSW Treasury Corporation) 81,123 68,383 81,123 68,383 85,395 73,499 85,395 73,499
The Authority manages bank accounts on behalf of the Luna Park Reserve Trust and NSW Maritime. This money does not belong to the Authority and is not included as a cash asset. b. Reconciliation of surplus after related income tax equivalent to net cash flows from operating activities
Operating surplus after income tax equivalent 44,875 10,416 44,875 10,416
Non-cash flows in operating surplus: Depreciation and amortisation 17,656 15,260 17,656 15,260 Miscellaneous non-cash revenue/expense (53,594) (10,749) (53,594) (10,749) Change in operating assets and liabilities: Decrease/(increase) in inventories (5,726) (110) (5,726) (110) Decrease/(increase) in GST input tax credits - (70) - (70) Decrease/(increase) in receivables (3,140) 19,719 (3,140) 19,719 (Decrease)/increase in creditors 5,181 1,016 5,181 1,016 (Decrease)/increase in provisions 850 1,559 850 1,559 (Decrease)/increase in unamortised revenue 28,170 3,130 28,170 3,130
Net cash flows from operating activities 34,272 40,171 34,272 40,171
82 Sydney Harbour Foreshore Authority Annual Report 2007–08 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
Note 23 – Financial instruments The Authority’s principal financial instruments are outlined below. These financial instruments arise directly from the Authority’s operations or are required to finance the Authority’s operations. The Authority does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. The Authority’s main risks arising from financial instruments are outlined below, together with the Authority’s objectives, policies and processes for measuring and managing risk. Further quantitative and qualitative disclosures are included throughout this financial report. The Audit and Risk Management Committee has overall responsibility for the establishment and oversight of risk management and reviews and agrees policies for managing each of these risks. Risk management policies are established to identify and analyse the risks faced by the Authority, to set risk limits and controls and to monitor risks. Compliance with policies is reviewed by the Audit and Risk Management Committee and internal auditors on a continuous basis. a. Financial instrument categories
Note Category Carrying Carrying amount amount 2008 2007 $’000 $’000
Financial assets Class: Cash and cash equivalents 7 n/a 85,395 73,499 Receivables 8 Loans and receivables at amortised cost 3,180 2,648
Financial liabilities Class: Payables 13 Financial liabilities measured at amortised cost 27,758 23,285 Other liabilities 15 Financial liabilities measured at amortised cost 99,503 1,571 Borrowings 16 Financial liabilities measured at amortised cost 10,000 10,000 b. Credit risk Credit risk arises when there is the possibility of the Authority’s debtors defaulting on their contractual obligations, resulting in a financial loss to the Authority. The maximum exposure to credit risk is generally represented by the carrying amount of the financial assets (net of any allowance for impairment). Credit risk arises from the financial assets of the Authority, including cash, receivables and deposits. No collateral is held by the Authority. The Authority has not granted any financial guarantees. Credit risk associated with the Authority’s financial assets, other than receivables, is managed through the selection of counterparties. Deposits held with NSW TCorp are guaranteed by the State. Cash Cash comprises cash on hand, bank balances and short-term deposits with major banks, and investments with NSW Treasury Corporation’s Hour-Glass facilities. The Authority’s investment is represented by a number of units of a management investment pool with each particular pool having different horizons and being comprised of a mix of asset classes appropriate to that investment horizon. NSW Treasury Corporation appoints and monitors the application of appropriate investment guidelines. This investment is generally able to be redeemed daily by 12 noon. The value of the investment held can increase as well as decrease depending on market conditions. The value of the above investment represents the Authority’s share of the value of the underlying assets of the facility, and those assets as stated at net value. The weighted average rate of return on these investments during the year was 6.45% (2007: 6.23%).
Sydney Harbour Foreshore Authority Annual Report 2007–08 83 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
Receivables – trade debtors All trade debtors are recognised as amounts receivable at balance date. Collectibility of trade debtors is reviewed on an ongoing basis. Procedures as established in the Treasurer’s Directions are followed to recover outstanding amounts, including letters of demand. Debts which are known to be uncollectible are written off. An allowance for impairment is raised when there is objective evidence that the entity will not be able to collect all amounts due. This evidence includes past experience, and current and expected changes in economic conditions. No interest is earned on trade debtors. Sales are generally made on 30 day terms. The Authority is not materially exposed to concentrations of credit risk to a single trade debtor or group of debtors. All debtors are assessed individually for impairments. Debtors that are not past due (2008: $2.665m; 2007: $1.755m) and debtors that are past due but not considered impaired (2008: $0.435m; 2007: $0.726m) together represent 97% of the total debtors. There are no debtors which are currently not past due or impaired whose terms have been renegotiated. The only financial assets that are past due or impaired are sales of services in the ‘receivables’ category of the balance sheet.
Total Past due Considered but not impaired impaired $’000 $’000 $’000
2008 < 3 months overdue 354 314 40 3–6 months overdue 90 70 20 > 6 months overdue 71 51 20
2007 < 3 months overdue 572 471 101 3–6 months overdue 142 121 21 > 6 months overdue 179 134 45
c. Liquidity risk Liquidity risk is the risk that the Authority will be unable to meet its payment obligations when they fall due. The Authority continuously manages risk through monitoring future cash flows and maturities planning to ensure adequate holding of high quality liquid assets. The objective is to maintain a balance between continuity of funding and flexibility through the use of overdrafts, loans and other advances. The Authority has a total debt facility of $104m as at 30 June 2008. The net fair value of these loans at balance date was $10m (2007: $10m). The weighted average effective interest rate for the year was 7.27% (2007: 7.51%) for loans. During the current and prior years, there were no defaults or breaches on any loans payable. No assets have been pledged as collateral. The Authority’s exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of risk. The liabilities are recognised for amounts due to be paid in the future for goods or services received, whether or not invoiced. Amounts owing to suppliers (which are unsecured) are settled in accordance with the policy set out in Treasurer’s Direction 219.01. If trade terms are not specified, payment is made no later than the end of the month following the month in which an invoice or a statement is received.
84 Sydney Harbour Foreshore Authority Annual Report 2007–08 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
The table below summarises the maturity profile of the Authority’s financial liabilities, together with the interest rate exposure. Maturity analysis and interest rate exposure of financial liabilities:
Weighted Interest rate Maturity dates average effective Fixed Variable Non- interest Nominal interest interest interest <1 year 1–5 >5 years rate amount rate rate bearing years $’000 $’000 $’000 $’000 $’000 $’000 $’000 2008 Payables: Trade and sundry creditors – 17,102 – – 17,102 16,496 303 303 Security deposits and bonds 6.88% 835 – 663 172 621 72 142 Forward deposits – 9,821 – – 9,821 9,677 144 - Other: Finance lease liability 8.61% 2,626 2,626 – – 1,175 1,451 - Loan payable to other NSW agency 6.43% 96,877 – 96,877 – – 96,877 - Borrowings: TCorp borrowings 7.27% 10,000 10,000 – – – 5,000 5,000 137,261 12,626 97,540 27,095 27,969 103,847 5,445 2007 Payables: Trade and sundry creditors – 11,643 – – 11,643 11,073 285 285 Security deposits and bonds – 808 – – 808 664 139 5 Forward deposits – 10,834 – – 10,834 10,399 435 - Other: Finance lease liability 6.26% 1,571 1,571 – – 813 758 - Borrowings: TCorp borrowings 7.51% 10,000 10,000 – – – 5,000 5,000 34,856 11,571 – 23,285 22,949 6,617 5,290
Notes: The amounts disclosed are the contractual undiscounted cash flows of each class of financial liabilities and therefore will not reconcile to the balance sheet.
Sydney Harbour Foreshore Authority Annual Report 2007–08 85 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
d. Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The Authority’s exposures to market risk are primarily through interest rate risk on the Authority’s borrowings and other price risks associated with the movement in the unit price of the Hour Glass Investment facilities. The Authority has no exposure to foreign currency risk and does not enter into commodity contracts. The effect on profit and equity due to a reasonably possible change in risk variable is outlined in the information below, for interest rate risk and other price risk. A reasonably possible change in risk variable has been determined after taking into account the economic environment in which the Authority operates and the time frame for the assessment (i.e. until the end of the next annual reporting period). The sensitivity analysis is based on risk exposures in existence at the balance sheet date. The analysis is performed on the same basis for 2007. The analysis assumes that all other variables remain constant. Interest rate risk Exposure to interest rate risk arises primarily through the Authority’s interest bearing liabilities. This risk is minimised by undertaking mainly fixed rate borrowings, primarily with NSW TCorp. The Authority does not account for any fixed rate financial instruments at fair value through profit or loss or as available for sale. Therefore for these financial instruments a change in interest rates would not affect profit or loss or equity. A reasonably possible change of +/- 1% is used, consistent with current trends in interest rates. The basis will be reviewed annually and amended where there is a structural change in the level of interest rate volatility. The Authority’s exposure to interest rate risk is set out below.
Carrying -1% 1% amount Profit Equity Profit Equity $’000 $’000 $’000 $’000 $’000
2008
Financial assets Cash and cash equivalents 85,395 (487) (487) 487 487 Receivables 3,180 - - - - Financial liabilities Payables 27,758 - - - - Other – loan payable to other NSW agency 96,877 969 969 (969) (969) Other – finance lease liability 2,626 - - - - Borrowings 10,000 - - - -
2007 Financial assets Cash and cash equivalents 73,499 (733) (733) 733 733 Receivables 2,648 - - - - Financial liabilities Payables 23,285 - - - - Other – finance lease liability 1,571 - - - - Borrowings 10,000 - - - -
86 Sydney Harbour Foreshore Authority Annual Report 2007–08 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
Other price risk – TCorp Hour Glass Exposure to ‘other price risk’ primarily arises through the investment in the TCorp Hour Glass Investment facilities, which are held for strategic rather than trading purposes. The Authority has no direct equity investments. The Authority holds units in the following Hour Glass investment trusts:
Facility Investment sectors Investment horizon 2008 2007 $’000 $’000 Cash facility Cash, money market instruments Up to 2 years 21,123 68,383
The unit price of the facility is equal to the total fair value of net assets held by the facility divided by the total number of units on issue. Unit prices are calculated and published daily. NSW TCorp as trustee for the above facility is required to act in the best interest of the unit holders and to administer the trusts in accordance with the trust deeds. As trustee, TCorp has appointed external managers to manage the performance and risks of each facility in accordance with a mandate agreed by the parties. However, TCorp acts as manager for part of the Cash Facility. A significant portion of the administration of the facilities is outsourced to an external custodian. Investment in the Hour Glass facilities limits the Authority’s exposure to risk, as it allows diversification across a pool of funds, with different investment horizons and a mix of investments. NSW TCorp provides sensitivity analysis information for the facility, using historically based volatility information. The TCorp Hour Glass investment facilities are designated at fair value through profit or loss and therefore any change in unit price impacts directly on profit (rather than equity).
Impact on profit/loss Change in 2008 2007 unit price $’000 $’000 Hour Glass investment – cash facility +/- 1% +/- 211 +/- 684 e. Fair value The Authority’s financial instruments are recognised at cost except for TCorp Hour Glass facilities. The Authority has not identified any financial instruments whose fair value differs materially from the carrying amount.
Note 24 – Events after balance sheet date Darling Walk Development On 20 August 2008 the Authority entered into an agreement with a private sector entity to redevelop the site.
END OF AUDITED FINANCIAL STATEMENTS
Sydney Harbour Foreshore Authority Annual Report 2007–08 87 Office of The Sydney Harbour Foreshore Authority Financial Statements For the year ended 30 June 2008
Statement by the Chairman and the Chief Executive Officer on the adoption of the financial statements for the year ended 30 June 2008 Certificate Under Section 41C of the Public Finance and Audit Act 1983. Pursuant to Section 41C (1B) of the Public Finance and Audit Act 1983 and in our capacity as Chairman and Chief Executive Officer of Sydney Harbour Foreshore Authority, we declare that in our opinion: 1. The accompanying financial statements exhibit a true and fair view of the financial position of the Office of the Sydney Harbour Foreshore Authority as at 30 June 2008 and transactions for the year ended on that date. 2. The statements have been prepared in accordance with the provisions of the Public Finance and Audit Act 1983, the Public Finance and Audit Regulation 2005 and the Treasurer’s Directions. Further, we are not aware of any circumstances that would render any particulars included in the financial statements to be misleading or inaccurate.
Michael Collins Robert Domm Chairman Chief Executive Officer Sydney Harbour Foreshore Authority Sydney Harbour Foreshore Authority
14 October 2008 Sydney
88 Sydney Harbour Foreshore Authority Annual Report 2007–08 Office of The Sydney Harbour Foreshore Authority INDEPENDENT AUDITor’s REPORT For the year ended 30 June 2008
Sydney Harbour Foreshore Authority Annual Report 2007–08 89 Office of The Sydney Harbour Foreshore Authority INDEPENDENT AUDITor’s REPORT For the year ended 30 June 2008
90 Sydney Harbour Foreshore Authority Annual Report 2007–08 Office of The Sydney Harbour Foreshore Authority
START OF AUDITED FINANCIAL STATEMENTS Income Statement For the year ended 30 June 2008
Notes 2008 2007 $’000 $’000
Personnel services revenue 27,214 23,999 Employee related expenses 3 (27,214) (23,999) Surplus/(deficit) from continuing operations - -
The above income statement is to be read in conjunction with the attached notes.
Sydney Harbour Foreshore Authority Annual Report 2007–08 91 Office of The Sydney Harbour Foreshore Authority Balance Sheet As at 30 June 2008
Notes 2008 2007 $’000 $’000
Current assets Receivables 4 5,154 4,656 Total current assets 5,154 4,656
Non-current assets Receivables 4 1,640 420 Total non-current assets 1,640 420
Total assets 6,794 5,076
Current liabilities Payables 5 179 164 Provisions 6 4,975 4,556 Total current liabilities 5,154 4,720
Non-current liabilities Provisions 6 1,640 356 Total non-current liabilities 1,640 356
Total liabilities 6,794 5,076
Net assets - -
Equity Accumulated funds 8 - - Total equity - -
The above balance sheet is to be read in conjunction with the attached notes.
92 Sydney Harbour Foreshore Authority Annual Report 2007–08 Office of The Sydney Harbour Foreshore Authority STATEMENT of recognised income and expense For the year ended 30 June 2008
Notes 2008 2007 $’000 $’000
Net increase/(decrease) in equity - -
Net income and expense recognised directly in equity - -
Surplus/(deficit) for the year - -
Total income and expense recognised for the year - -
The above statement of recognised income and expense is to be read in conjunction with the attached notes.
Sydney Harbour Foreshore Authority Annual Report 2007–08 93 Office of The Sydney Harbour Foreshore Authority Cash flow Statement For the year ended 30 June 2008
Notes 2008 2007 $’000 $’000
Cash flows from operating activities Receipts from customers - - Payment to suppliers and employees - - Net cash flows from operating activities - -
Cash flows from investing activities Payments for property, plant and equipment - - Net cash flows from investing activities - -
Cash flows from financing activities Investment - - Dividend paid/received - - Net cash flows from financing activities - -
Net increase/(decrease) in cash held - - Cash at the start of the financial year - - Cash at the end of the financial year - -
The above cash flow statement is to be read in conjunction with the attached notes.
94 Sydney Harbour Foreshore Authority Annual Report 2007–08 Office of The Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
Note 1 – Reporting entity Office of the Sydney Harbour Foreshore Authority (the Office) is a Division of the Government Service, established pursuant to Part 1 of Schedule 1 to the Public Sector Employment Legislation Amendment Act 2006. It is a not-for-profit entity as profit is not its principal objective. It is consolidated as part of the NSW Total State Sector Accounts. It is domiciled in Australia and its principal office is at 66 Harrington Street, The Rocks, New South Wales. The Office’s only function is to provide personnel services to Sydney Harbour Foreshore Authority (the Authority). This financial report for the year ended 30 June 2008 was authorised for issue by the Authority’s Board on 14 October 2008. Note 2 – Statement of significant accounting policies a. Basis of preparation The Authority’s financial report is a general purpose financial report which has been prepared in accordance with: • applicable Australian Accounting Standards and Australian Accounting Interpretations • the requirements of the Public Finance and Audit Act 1983. Set out below is a summary of the significant accounting policies. Historical cost convention These financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets and liabilities at fair value. Critical accounting judgements and key sources of estimation uncertainty In the application of the Office’s accounting policies, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are recognised, or in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The Office has determined its status as not-for-profit for financial reporting purposes. The financial report is presented in Australian Dollars rounded to the nearest thousand. b. Revenue recognition Revenue is measured at the fair value of the consideration received or receivable. Revenue from the rendering of personnel services is recognised when the service is provided and only to the extent that the associated recoverable expenses are recognised. c. Receivables Receivables are recognised when it is probable that the future cash inflows associated with it will be realised and it has a value that can be measured reliably. It is derecognised when the contractual or other rights to future cash flows from it expire or are transferred. Receivables are recognised initially at fair value, usually based on transaction cost or face value. Receivables are subject to annual review for impairment. An allowance for impairment is established when there is objective evidence that the Office will not be able to collect all amounts due. The amount of the impairment loss is recognised in the income statement. d. Payables Payables represent liabilities for goods and services provided to the Office. Payables include accrued wages, salaries, and related on costs (such as payroll tax, fringe benefits tax and workers’ compensation insurance) where there is certainty as to the amount and timing of settlement. Payables are recognised at fair value, when a present obligation arises under a contract or otherwise. It is derecognised when the obligation expires or is discharged, cancelled or substituted. e. Employee benefit provisions and expenses i. Wages and salaries, annual leave and sick leave Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to be settled within 12 months of the reporting date are recognised in respect of employees’ service up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled.
Sydney Harbour Foreshore Authority Annual Report 2007–08 95 Office of The Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
ii. Long service leave The liability for long service leave is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the discount method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. Provisions made in respect of employee benefits which are not expected to be settled within 12 months are measured as the present value of the estimated future cash outflows to be made by the consolidated entity in respect of services provided by employees up to reporting date. The government bond rate of 6.45% was applied for discounting purposes. The outstanding amounts of payroll tax, workers’ compensation, insurance premiums and fringe benefits tax, which are consequential to employment, are recognised as liabilities and expenses when the employee benefits to which they relate have been recognised. iii. Retirement benefit obligations All employees of the Office are entitled to benefits from the Office’s superannuation plan on retirement, disability or death. The Office has a defined benefit plan and a defined contribution plan. The defined contribution plan receives fixed contributions from the Office and the Office’s legal or constructive obligation is limited to these contributions. Contributions to the defined contribution fund are recognised as an expense as they become payable. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available. A liability or asset of define benefits superannuation plans is recognised in the balance sheet, and is measured as the present value of the defined benefit obligation at the reporting date less the fair value of the superannuation fund’s assets at that date and any unrecognised past service cost. The present value of the defined benefit obligations is based on expected future payments which arise from membership of the fund to the reporting date, calculated annually by independent actuaries using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. Past service costs are recognised immediately in income, unless the changes to the superannuation fund are conditional on the employees remaining in service for a specified period of time (the vesting period). In this case, the past service costs are amortised on a straight-line basis over the vesting period. Contributions to the defined contribution fund are recognised as an expense as they become payable. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available. iv. Provisions Provisions are recognised when the Office has a present obligation as a result of a past event, it is probable that the Authority will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the reporting date. The discount rate used to determine the present value reflects current assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense. f. Comparative information Except when an Australian Accounting Standard permits or requires otherwise, comparative information is disclosed in respect of the previous period for all amounts reported in the financial statements.
96 Sydney Harbour Foreshore Authority Annual Report 2007–08 Office of The Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
g. New Australian Accounting Standards issues Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2008 reporting period. The Office did not early adopt any of these Accounting Standards and Interpretations that are not yet effective: • AASB 3 Business Combinations (1 July 2009) • AASB 8 and AASB 2007-3 Operating Segments (1 January 2009) • AASB 101 and 2007-8 Presentation of Financial Statements (1 January 2009) • AASB 123 and 2007-6 Borrowing Costs (1 January 2009) • AASB 127 Consolidated and Separate Financial Statements (1 January 2009) • AASB 1004 Contributions (1 July 2008) • AASB 1049 Whole of Government and General Government Sector Financial Reporting (1 July 2008) • AASB 1050 Administered Items (1 July 2008) • AASB 1051 Land Under Roads (1 July 2008) • AASB 1052 Disaggregated Disclosures (1 July 2008) • AASB 2007-9 Amendments to Australian Accounting Standards arising from the Review of AASs 27,29 and 31 • AASB 2008-1 Amendments to Australian Accounting Standard – Share Based Payments: Vesting Conditions and Cancellations • AASB 2008-2 Amendments to Australian Accounting Standard – Puttable Financial Instruments and Obligations arising on Liquidation • Interpretation 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities (1 January 2009) • Interpretation 12 Service Concession Arrangements (1 January 2009) • Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities (1 July 2008). It is considered that the impact of these new Accounting Standards and Interpretations in future periods will have no material impact on the financial statements of the Office of the Sydney Harbour Foreshore Authority.
Sydney Harbour Foreshore Authority Annual Report 2007–08 97 Office of The Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
2008 2007 $’000 $’000
Note 3 – Expenses Employee related expenses 27,036 23,827 Directors’ fees 178 172 Total employee related expenses 27,214 23,999
Note 4 – Receivables Current Receivable from parent entity – annual leave 2,644 2,427 Receivable from parent entity – long service leave 2,331 2,129 Receivable from parent entity – accrued salaries, wages and on-costs 179 100 5,154 4,656 Non-current Receivable from parent entity – long service leave 480 356 Receivable from parent entity – superannuation 1,160 - Superannuation (refer Note 7) - 64 1,640 420
Note 5 – Payables Accrued salaries, wages and on-costs 179 100 Payable to parent entity – superannuation - 64 179 164 Note 6 – Provisions Current Annual leave 2,644 2,427 Long service leave 2,331 2,129 4,975 4,556 Non-current Long service leave 480 356 Superannuation (refer Note 7) 1,160 - 1,640 356 Aggregate employee benefits and related on-costs Short-term Annual leave 2,644 2,427 Long service leave 82 151 2,726 2,578 Long-term Long service leave 2,729 2,334 Superannuation 1,160 - 3,889 2,334
Total 6,615 4,912
98 Sydney Harbour Foreshore Authority Annual Report 2007–08 Office of The Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
Note 7 – Superannuation The superannuation schemes for the Office’s employees are: • State Authorities Superannuation Scheme (SASS) • State Superannuation Scheme (SSS) • State Authorities Non-contributory Superannuation Scheme (SANCS) These schemes are all defined benefit schemes – at least a component of the final benefit is derived from a multiple of member salary and years of membership. All the schemes are closed to new members. The assessed liability for the Office at 30 June 2008 and the funds held at the reserve account at Pillar Administration are: a. Defined Benefit Scheme as at 30 June 2008 (AASB 119 Employee Benefits)
SASS SANCS SSS Total Member numbers Contributors 7 10 3 20 Deferred benefits - - 5 5 Pensioners - - 15 15 Pensions fully commuted - - 1 1 $ ’000 $ ’000 $ ’000 $ ’000 Accrued liability (2,035) (447) (10,751) (13,233) Estimated reserve account balance 1,696 279 10,098 12,073 (339) (168) (653) (1,160) Future Service Liability (401) (182) (194) (777) Surplus in excess of recovery available from schemes - - - - Net asset/(liability) (339) (168) (653) (1,160)
Defined Benefit Scheme as at 30 June 2007 (AASB 119 Employee Benefits)
SASS SANCS SSS Total Member numbers Contributors 9 12 3 24 Deferred benefits - - 5 5 Pensioners - - 15 15 Pensions fully commuted - - 1 1 $ ’000 $ ’000 $ ’000 $ ’000 Accrued liability (2,550) (486) (10,692) (13,728) Estimated reserve account balance 2,164 334 11,294 13,792 (386) (152) 602 64 Future Service Liability (724) (230) (224) (1,178) Surplus in excess of recovery available from schemes - - - - Net asset/(liability) (386) (152) 602 64
The Future Service Liability (FSL) does not have to be recognised by the Authority. It is only used to determine if an asset ceiling limit should be imposed (AASB 119 para 58). No asset ceiling is imposed because there is no surplus in excess of recovery.
Sydney Harbour Foreshore Authority Annual Report 2007–08 99 Office of The Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
b. Defined Benefit Scheme (AAS25 Financial Reporting by Superannuation Plans) Reconciliation of the assets and liabilities recognised in the balance sheet
SASS SANCS SSS 30 June 2008 30 June 2008 30 June 2008 $ ’000 $ ’000 $ ’000 Present value of defined benefit obligations (2,035) (447) (10,751) Fair value of fund assets 1,696 279 10,098 (339) (168) (653) Surplus in excess of recovery available from schemes - - - Unrecognised past service cost - - - Net asset/(liability) disclosed in balance sheet as at 30 June 2008 (339) (168) (653)
SASS SANCS SSS 30 June 2007 30 June 2007 30 June 2007 $ ’000 $ ’000 $ ’000 Present value of defined benefit obligations (2,550) (486) (10,692) Fair value of fund assets 2,164 334 11,294 (386) (152) 602 Surplus in excess of recovery available from schemes - - - Unrecognised past service cost - - - Net asset/(liability) disclosed in balance sheet as at 30 June 2007 (386) (152) 602
All Fund assets are invested by SAS Trustee Corporation at arm’s length through independent fund managers.
Movement in net liability/asset recognised in balance sheet
SASS SANCS SSS 30 June 2008 30 June 2008 30 June 2008 $ ’000 $ ’000 $ ’000 Net asset/(liability) at start of year (386) (152) 602 Net revenue/(expense) recognised in the income statement (61) (44) (1,294) Contributions 108 28 39 Net asset/(liability) disclosed in balance sheet as at 30 June 2008 (339) (168) (653)
SASS SANCS SSS 30 June 2007 30 June 2007 30 June 2007 $ ’000 $ ’000 $ ’000 Net asset/(liability) at start of year (142) (102) (763) Net expense recognised in the income statement (355) (79) 1,323 Contributions 111 29 42 Net asset/(liability) disclosed in balance sheet as at 30 June 2007 (386) (152) 602
100 Sydney Harbour Foreshore Authority Annual Report 2007–08 Office of The Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
Total expense recognised in income statement
SASS SANCS SSS 30 June 2008 30 June 2008 30 June 2008 $ ’000 $ ’000 $ ’000 Current service cost (113) (28) (50) Interest on obligation (159) (30) (668) Expected return on plan assets 166 26 875 Net actuarial (losses)/gains recognised in year 45 (13) (1,450) Change in surplus in excess of recovery available from scheme - - - Past service cost - - - (Losses)/gains on curtailment and settlements - - - Total included in income statement (61) (45) (1,293)
SASS SANCS SSS 30 June 2007 30 June 2007 30 June 2007 $ ’000 $ ’000 $ ’000 Current service cost (87) (27) (47) Interest on obligation (110) (25) (630) Expected return on plan assets 134 26 756 Net actuarial (losses)/gains recognised in year (292) (53) 1,244 Change in surplus in excess of recovery available from scheme - - - Past service cost - - - (Losses)/gains on curtailment and settlements - - - Total included in income statement (355) (79) 1,323
Actual return on plan assets
SASS SANCS SSS 30 June 2008 30 June 2008 30 June 2008 $ ’000 $ ’000 $ ’000 Actual return on plan assets (126) (17) (703)
SASS SANCS SSS 30 June 2007 30 June 2007 30 June 2007 $ ’000 $ ’000 $ ’000 Actual return on plan assets 254 45 1,446
Sydney Harbour Foreshore Authority Annual Report 2007–08 101 Office of The Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
Valuation method and principal actuarial assumptions at the reporting date i. Valuation method The Projected Unit Credit (PUC) valuation method was used to determine the present value of the defined benefit obligations and the related current service costs. This method sees each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation. ii. Economic assumptions
2008 2007 Discount rate at 30 June 6.55% p.a. 6.40% p.a. Expected return on plan assets at 30 June 7.80% p.a. 7.60% p.a. Expected salary increases 3.50% p.a. 4.0% p.a. to 2008; 3.5% p.a. thereafter Expected rate of CPI increase 2.50% p.a. 2.50% p.a.
Recommended contribution rates for the entity are:
SASS SANCS SSS Multiple of member contributions % member salary Multiple of member contributions 2008 2.30 2.50 0.93 2007 2.30 2.50 0.93
The method used to determine the employer contribution recommendations at the last actuarial review was the Aggregate Funding method. The method adopted affects the timing of the cost to the employer.
Under this method, the employer contribution rate is determined so that sufficient assets will be available to meet benefit payments to existing members, taking into account the current value of assets and future contributions.
The economic assumptions adopted for the last actuarial review of the Fund were:
Weighted average assumptions 2008 2007
Expected rate of return on fund assets 7.35% p.a. 7.35% p.a. Expected salary increase rate 4.00% p.a. 4.00% p.a. Expected rate of CPI increase 2.50% p.a. 2.50% p.a.
Nature of asset/liability If a surplus exists in the Office’s interest in the Fund, the Office may be able to take advantage of it in the form of a reduction in the required contribution rate, depending on the advice of the Fund’s actuary. Where a deficiency exists, the employer is responsible for any difference between the employer’s share of fund assets and the defined benefit obligation.
102 Sydney Harbour Foreshore Authority Annual Report 2007–08 Office of The Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2008
2008 2007 $’000 $’000
Note 8 – Accumulated funds Balance at the beginning of financial year - - Surplus for the year - - Balance at the end of financial year - -
Note 9 – Capital and lease commitments The entity has no capital or lease commitments at 30 June 2008 (None at 30 June 2007).
Note 10 – Contingent assets/liabilities The entity is not aware of any contingent assets or liabilities at 30 June 2008 (None at 30 June 2007).
Note 11 – Events after balance sheet date The Office has not identified any events or transactions that are material to require adjustments or disclosures in the financial report.
END OF AUDITED FINANCIAL STATEMENTS
Sydney Harbour Foreshore Authority Annual Report 2007–08 103 Sydney Harbour Foreshore Authority Casual Staff Division Financial Statements For the year ended 30 June 2008
Statement by the Chairman and the Chief Executive Officer on the adoption of the financial statements for the year ended 30 June 2008 Certificate Under Section 41C of the Public Finance and Audit Act 1983. Pursuant to Section 41C (1B) of the Public Finance and Audit Act 1983 and in our capacity as Chairman and Chief Executive Officer of Sydney Harbour Foreshore Authority, we declare that in our opinion: 1. The accompanying financial statements exhibit a true and fair view of the financial position of Sydney Harbour Foreshore Authority Casual Staff Division as at 30 June 2008 and transactions for the year ended on that date. 2. The statements have been prepared in accordance with the provisions of the Public Finance and Audit Act 1983, the Public Finance and Audit Regulation 2005 and the Treasurer’s Directions. Further, we are not aware of any circumstances that would render any particulars included in the financial statements to be misleading or inaccurate.
Michael Collins Robert Domm Chairman Chief Executive Officer Sydney Harbour Foreshore Authority Sydney Harbour Foreshore Authority
14 October 2008 Sydney
104 Sydney Harbour Foreshore Authority Annual Report 2007–08 Sydney Harbour Foreshore Authority Casual Staff Division INDEPENDENT AUDITor’s REPORT For the year ended 30 June 2008
Sydney Harbour Foreshore Authority Annual Report 2007–08 105 Sydney Harbour Foreshore Authority Casual Staff Division INDEPENDENT AUDITor’s REPORT For the year ended 30 June 2008
106 Sydney Harbour Foreshore Authority Annual Report 2007–08 Sydney Harbour Foreshore Authority Casual Staff Division
START OF AUDITED FINANCIAL STATEMENTS Income Statement For the year ended 30 June 2008
2008 2007 $’000 $’000
Personnel services revenue 1,690 1,495 Employee related expenses (1,690) (1,495) Surplus/(deficit) from continuing operations - -
The above income statement is to be read in conjunction with the attached notes.
Sydney Harbour Foreshore Authority Annual Report 2007–08 107 Sydney Harbour Foreshore Authority Casual Staff Division Balance Sheet As at 30 June 2008
Notes 2008 2007 $’000 $’000
Current assets Receivables - - Total current assets - -
Non-current assets Receivables - - Total non-current assets - -
Total assets - -
Current liabilities Payables - - Provisions - - Total current liabilities - -
Non-current liabilities Provisions - - Total non-current liabilities - -
Total liabilities - -
Net assets - -
Equity Accumulated funds 3 - - Total equity - -
The above balance sheet is to be read in conjunction with the attached notes.
108 Sydney Harbour Foreshore Authority Annual Report 2007–08 Sydney Harbour Foreshore Authority Casual Staff Division STATEMENT of recognised income and expense For the year ended 30 June 2008
Notes 2008 2007 $’000 $’000
Net increase/(decrease) in equity - -
Net income and expense recognised directly in equity - -
Surplus/(deficit) for the year - - Total income and expense recognised for the year - -
The above statement of recognised income and expense is to be read in conjunction with the attached notes.
Sydney Harbour Foreshore Authority Annual Report 2007–08 109 Sydney Harbour Foreshore Authority Casual Staff Division cash flow statement For the year ended 30 June 2008
Notes 2008 2007 $’000 $’000
Cash flows from operating activities Receipts from customers - - Payment to suppliers and employees - - Net cash flows from operating activities - -
Cash flows from investing activities Payments for property, plant and equipment - - Net cash flows from investing activities - -
Cash flows from financing activities Investment - - Contributions paid/received - - Net cash flows from financing activities - -
Net increase/(decrease) in cash held - - Cash at the start of the financial year - - Cash at the end of the financial year - -
The above cash flow statement is to be read in conjunction with the attached notes.
110 Sydney Harbour Foreshore Authority Annual Report 2007–08 Sydney Harbour Foreshore Authority Casual Staff Division Notes to the financial statements For the year ended 30 June 2008
Note 1 – Reporting entity Sydney Harbour Foreshore Authority Casual Staff Division (the Division) is a Division of the Government Service, established pursuant to Part 3 of Schedule 1 to the Public Sector Employment Legislation Amendment Act 2006. It is a not-for-profit entity as profit is not its principal objective. It is consolidated as part of the NSW Total State Sector Accounts. It is domiciled in Australia and its principal office is at 66 Harrington Street, The Rocks, New South Wales. The Division’s sole objective is to provide casual personnel services to Sydney Harbour Foreshore Authority (the Authority). This financial report for the year ended 30 June 2008 was authorised for issue by the Authority’s Board on 14 October 2008. Note 2 – Statement of significant accounting policies a. Basis of preparation The Division’s financial report is a general purpose financial report which has been prepared in accordance with Australian Accounting Standards and Australian Accounting Interpretations and the requirements of the Public Finance and Audit Act 1983. Set out below is a summary of the significant accounting policies adopted by the Division. Historical cost convention These financial statements have been prepared under the historical cost convention, as modified by the revaluation of available- for-sale financial assets, financial assets and liabilities at fair value through profit or loss, certain classes of property, plant and equipment and investment property. Critical accounting judgements and key sources of estimation uncertainty In the application of the Division’s accounting policies, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are recognised, or in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The Division has determined its status as not-for-profit for financial reporting purposes. The financial report is presented in Australian Dollars rounded to the nearest thousand. b. Revenue recognition Revenue is measured at the fair value of the consideration received or receivable. Revenue from the rendering of personnel services is recognised when the service is provided and only to the extent that the associated recoverable expenses are recognised. c. Receivables Receivables are recognised when it is probable that the future cash inflows associated with it will be realised and it has a value that can be measured reliably. It is derecognised when the contractual or other rights to future cash flows from it expire or are transferred. Receivables are recognised initially at fair value, usually based on transaction cost or face value. Receivables are subject to annual review for impairment. An allowance for impairment is established when there is objective evidence that the Division will not be able to collect all amounts due. The amount of the impairment loss is recognised in the income statement. d. Payables Payables represent liabilities for goods and services provided to the Division and other amounts. Payables include accrued wages, salaries, and related on costs (such as payroll tax, fringe benefits tax and workers’ compensation insurance) where there is certainty as to the amount and timing of settlement. Payables are recognised at fair value, when a present obligation arises under a contract or otherwise. It is derecognised when the obligation expires or is discharged, cancelled or substituted. e. Employee benefit provisions and expenses Provisions for annual leave, long service leave and sick leave are not recognised in line with the terms of employment for casual employees. The outstanding amounts of payroll tax, workers’ compensation insurance premiums, superannuation and fringe benefits tax, which are consequential to employment, are recognised as liabilities and expenses where the employee benefits to which they relate have been recognised.
Sydney Harbour Foreshore Authority Annual Report 2007–08 111 Sydney Harbour Foreshore Authority Casual Staff Division Notes to the financial statements For the year ended 30 June 2008
f. Comparative information Except when an Australian Accounting Standard permits or requires otherwise, comparative information is disclosed in respect of the previous period for all amounts reported in the financial statements. g. New Australian Accounting Standards issues Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2008 reporting period. The Division did not early adopt any of these Accounting Standards and Interpretations that are not yet effective: • AASB 3 Business Combinations (1 July 2009) • AASB 8 and AASB 2007-3 Operating Segments (1 January 2009) • AASB 101 and 2007-8 Presentation of Financial Statements (1 January 2009) • AASB 123 and 2007-6 Borrowing Costs (1 January 2009) • AASB 127 Consolidated and Separate Financial Statements (1 January 2009) • AASB 1004 Contributions (1 July 2008) • AASB 1049 Whole of Government and General Government Sector Financial Reporting (1 July 2008) • AASB 1050 Administered Items (1 July 2008) • AASB 1051 Land Under Roads (1 July 2008) • AASB 1052 Disaggregated Disclosures (1 July 2008) • AASB 2007-9 Amendments to Australian Accounting Standards arising from the Review of AASs 27,29 and 31 • AASB 2008-1 Amendments to Australian Accounting Standard – Share Based Payments: Vesting Conditions and Cancellations • AASB 2008-2 Amendments to Australian Accounting Standard – Puttable Financial Instruments and Obligations arising on Liquidation • Interpretation 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities (1 January 2009) • Interpretation 12 Service Concession Arrangements (1 January 2009) • Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities (1 July 2008). It is considered that the impact of these new Accounting Standards and Interpretations in future periods will have no material impact on the financial statements of Sydney Harbour Foreshore Authority Casual Staff Division.
2008 2007 $’000 $’000
Note 3 – Accumulated funds Balance at the beginning of financial year - - Surplus for the year - - Balance at the end of financial year - -
Note 4 – Capital and Lease Commitments The Division has no capital or lease commitments at 30 June 2008 (None at 30 June 2007).
Note 5 – Contingent assets/liabilities The Division is not aware of any contingent assets or liabilities at 30 June 2008 (None at 30 June 2007).
Note 6 – Events after balance sheet date The Division has not identified any events or transactions that are material to require adjustments or disclosures in the financial report.
END OF AUDITED FINANCIAL STATEMENTS
112 Sydney Harbour Foreshore Authority Annual Report 2007–08 Appendix
Freedom of information The following tables show details of freedom of information (FOI) requests received by the Authority.
Section A – New FOI applications
Number of FOI applications How many FOI applications were received, discontinued or Personal Other Total completed? 2006–07 2007–08 2006-07 2007–08 2006–07 2007–08
A1 New 0 0 9 36 9 36
A2 Brought forward 0 0 0 0 0 0
A3 Total to be processed 0 0 9 36 9 36
A4 Completed 0 0 9 30 9 30
A5 Discontinued 0 0 2 0 2 0
A6 Total processed 0 0 9 36 9 36
A7 Unfinished (carried forward) 0 0 0 0 0 0
Section B – Discontinued applications
Number of discontinued FOI applications Why were FOI applications Personal Other Total discontinued? 2006–07 2007–08 2006–07 2007–08 2006–07 2007–08
B1 Request transferred out to another 0 0 0 0 0 0 agency (s.20)
B2 Applicant withdrew request 0 0 0 1 0 1
B3 Applicant failed to pay advance 0 0 0 2 0 2 deposit (s.22)
B4 Applicant failed to amend a request that would have been an 0 0 0 3 0 3 unreasonable diversion of resources to complete (s.25(1)(a1))
B5 Total discontinued 0 0 0 6 0 6
Section C – Completed applications
Number of completed FOI applications What happened to completed Personal Other Total FOI applications? 2006–07 2007–08 2006–07 2007–08 2006–07 2007–08
C1 Granted or otherwise available 0 0 3 10 3 10 in full C2 Granted or otherwise available in 0 0 4 13 4 13 part
C3 Refused 0 0 1 2 1 1
C4 No documents held 0 0 1 5 1 1
C5 Total completed 0 0 9 30 9 30
Sydney Harbour Foreshore Authority Annual Report 2007–08 113 Section D – Applications granted or otherwise available in full
Number of FOI applications (granted or otherwise available in full) How were the documents made Personal Other Total available to the applicant? 2006–07 2007–08 2006–07 2007–08 2006–07 2007–08
All documents requested were:
D1 Provided to the applicant 0 0 2 10 2 10
D2 Provided to the applicant’s 0 0 0 0 0 0 medical practitioner
D3 Available for inspection 0 0 0 0 0 0
D4 Available to purchase 0 0 0 0 0 0
D5 Library material 0 0 0 0 0 0
D6 Subject to deferred access 0 0 0 0 0 0
D7 Available by a combination of any of 0 0 1 1 1 1 the reasons listed in D1–D6 above
D8 Total granted or otherwise 0 0 3 10 3 10 available in full
Section E – Applications granted or otherwise available in part
Number of FOI applications (granted or otherwise available in part) How were the documents made Personal Other Total available to the applicant? 2006–07 2007–08 2006–07 2007–08 2006–07 2007–08
Documents made available were:
E1 Provided to the applicant 0 0 4 13 4 13
E2 Provided to the applicant’s 0 0 0 0 0 0 medical practitioner
E3 Available for inspection 0 0 0 0 0 0
E4 Available to purchase 0 0 0 0 0 0
E5 Library material 0 0 0 0 0 0
E6 Subject to deferred access 0 0 0 0 0 0
E7 Available by a combination of any 0 0 0 0 0 0 of the reasons listed in E1–E6 above E8 Total granted or otherwise 0 0 4 13 4 13 available in part
Section F – Refused FOI applications
Number of refused FOI applications Why was access to the documents Personal Other Total refused? 2006–07 2007–08 2006–07 2007–08 2006–07 2007–08
F1 Exempt 0 0 1 1 1 1
F2 Deemed refused 0 0 0 1 0 1
F3 Total refused 0 0 1 2 1 2
114 Sydney Harbour Foreshore Authority Annual Report 2007–08 Section G – Exempt documents
Number of FOI applications (refused or access granted or otherwise available in part only) Why were the documents classified as exempt? (identify one reason only) Personal Other Total
2006–07 2007–08 2006–07 2007–08 2006–07 2007–08
Restricted documents:
G1 Cabinet documents (Clause 1) 0 0 0 0 0 0
G2 Executive Council documents (Clause 2) 0 0 0 0 0 0
G3 Documents affecting law enforcement and 0 0 0 0 0 0 public safety (Clause 4)
G4 Documents affecting counter terrorism 0 0 0 0 0 0 measures (Clause 4A)
Documents requiring consultation:
G5 Documents affecting intergovernmental 0 0 0 0 0 0 relations (Clause 5)
G6 Documents affecting personal affairs 0 0 0 7 0 7 (Clause 6) G7 Documents affecting business affairs 0 0 5 7 5 7 (Clause 7)
G8 Documents affecting the conduct 0 0 0 0 0 0 of research (Clause 8)
Documents otherwise exempt:
G9 Schedule 2 exempt agency 0 0 0 0 0 0
G10 Documents containing information confidential to Olympic Committees 0 0 0 0 0 0 (Clause 22)
G11 Documents relating to threatened species, Aboriginal objects or Aboriginal places 0 0 0 0 0 0 (Clause 23)
G12 Documents relating to threatened species 0 0 0 0 0 0 conservation (Clause 24)
G13 Plans of management containing information of Aboriginal significance 0 0 0 0 0 0 (Clause 25)
G14 Private documents in public library 0 0 0 0 0 0 collections (Clause 19)
G15 Documents relating to judicial functions 0 0 0 0 0 0 (Clause 11)
G16 Documents subject to contempt 0 0 0 0 0 0 (Clause 17)
G17 Documents arising out of companies and 0 0 0 0 0 0 securities legislation (Clause 18)
G18 Exempt documents under interstate FOI 0 0 0 0 0 0 legislation (Clause 21)
G19 Documents subject to legal professional 0 0 0 0 0 0 privilege (Clause 10)
G20 Documents containing confidential 0 0 0 0 0 0 material (Clause 13)
G21 Documents subject to secrecy provisions 0 0 0 0 0 0 (Clause 12)
Sydney Harbour Foreshore Authority Annual Report 2007–08 115 Number of FOI applications (refused or access granted or otherwise available in part only) Why were the documents classified as exempt? (identify one reason only) Personal Other Total
2006–07 2007–08 2006–07 2007–08 2006–07 2007–08 G22 Documents affecting the economy of the State (Clause 19) 0 0 0 0 0 0
G23 Documents affecting financial or property interests of the State or an 0 0 0 0 0 0 agency (Clause 15)
G24 Documents concerning operations 0 0 0 0 0 0 of agencies (Clause 16)
G25 Internal working documents 0 0 0 0 0 0 (Clause 9)
G26 Other exemptions 0 0 0 0 0 0 (e.g. clauses 20, 22A and 26)
G27 Total applications including 0 0 5 14 5 14 exempt documents
Section H – Ministerial Certificates (s.59)
Number of Ministerial Certificates How many Ministerial Certificates were issued? 2006–07 2007–08
H1 Ministerial Certificates issued 0 0
Section I – Formal consultations
How many formal consultations were Number conducted? 2006–07 2007–08
I1 Number of applications requiring formal 2 2 consultation
I2 Number of persons formally consulted 3 2
Section J – Amendment of personal records
Number of applications for amendment How many applications for amendment of personal records of personal records were agreed or refused? 2006–07 2007–08 J1 Agreed in full 0 0
J2 Agreed in part 0 0
J3 Refused 0 0
J4 Total 0 0
Section K – Notation of personal records
How many applications for notation of personal records Number of applications for notation were made (s.46)? 2006–07 2007–08
K1 Applications for notation 0 0
116 Sydney Harbour Foreshore Authority Annual Report 2007–08 Section L – Fees and costs
What fees were assessed and received for FOI applications Assessed costs Fees received processed (excluding applications transferred out)? 2006–07 2007–08 2006–07 2007–08
L1 All completed applications $500 $2,610 $500 $2,610
Section M – Fee discounts
Number of FOI applications (where fees were waived or discounted) How many fee waivers or Personal Other Total discounts were allowed and why? 2006–07 2007–08 2006–07 2007–08 2006–07 2007–08
M1 Processing fees waived in full 0 0 0 0 0 0
M2 Public interest discounts 0 0 0 0 0 0
M3 Financial hardship discounts 0 0 0 0 0 0 – pensioner or child M4 Financial hardship discounts 0 0 0 0 0 0 – non-profit organisation
M5 Total 0 0 0 0 0 0
Section N – Fee refunds
How many fee refunds were granted as a result of significant correction of Number of refunds personal records? 2006–07 2007–08
N1 Number of fee refunds granted as a result of significant correction of personal records 0 0
Section O – Calandar days taken to complete request
Number of completed FOI applications How long did it take to process completed Personal Other Total applications? 2006–07 2007–08 2006–07 2007–08 2006–07 2007–08
O1 0–21 days – statutory determination period 0 0 6 28 6 28
O2 22–35 days – extended statutory determination period for consultation or retrieval of archived 0 0 3 2 3 2 records (s.59B)
O3 Over 21 days – deemed refusal where no 0 0 0 0 0 0 extended determination period applies O4 Over 35 days – deemed refusal where 0 0 0 0 0 0 extended determination period applies
O5 Total 0 0 9 30 9 30
Sydney Harbour Foreshore Authority Annual Report 2007–08 117 Section P – Processing time in hours
Number of completed FOI applications How long did it take to process Personal Other Total completed applications? 2006–07 2007–08 2006–07 2007–08 2006–07 2007–08
P1 0–10 hours 0 0 7 22 7 22
P2 11–20 hours 0 0 1 5 1 5
P3 21–40 hours 0 0 1 2 1 2
P4 Over 40 hours 0 0 0 1 0 1
P5 Total 0 0 9 30 9 30
Section Q – Number of reviews
How many reviews were finalised? Number of completed reviews
2006–07 2007–08
Q1 Internal reviews 2 9
Q2 Ombudsman reviews 1 2
Q3 Administrative Decisions Tribunal reviews 0 3
Section R – Results of internal reviews 2007–08
Number of internal reviews
Personal Other Total Grounds on which the internal review Original Original Original Original Original Original was requested agency agency agency agency agency agency decision decision decision decision decision decision Upheld Varied Upheld Varied Upheld Varied
R1 Access refused 0 0 4 3 4 3
R2 Access deferred 0 0 0 0 0 0
R3 Exempt matter deleted from 0 0 0 0 0 0 documents
R4 Unreasonable charges 0 0 0 2 0 2
R5 Failure to consult with third parties 0 0 0 0 0 0
R6 Third parties’ views disregarded 0 0 0 0 0 0
R7 Amendment of personal records 0 0 0 0 0 0 refused R8 Total 0 0 4 5 4 5
118 Sydney Harbour Foreshore Authority Annual Report 2007–08 Determinations under the NSW Heritage Act 1977 The following tables summarise the determinations made by the Authority under delegation from the Heritage Council of NSW. This information is provided in accordance with general condition 11 of the delegations under section 169(3) of the NSW Heritage Act.
Section 60 applications
Application Address Summary Time in number calendar days
s.60/07/014 77.5 George Street, The Rocks Shop fitout 6
s.60/07/015 12–20 Argyle Street, The Rocks Erection of temporary canopy 12
s.60/07/016 1–5 Hickson Road, The Rocks Extension of non-original partition wall 1
s.60/07/017 12–20 Argyle Street, The Rocks Conservation works to hydraulic whip 4
s.60/07/018 12–20 Argyle Street, The Rocks Office fitout to level 2 7
s.60/07/019 Application withdrawn n/a
s.65a/07/020 33 Playfair Street, The Rocks Modifications to approved office fitout 3 s.60/07/021 121–127 Harrington Street, Internal partition walls 5 The Rocks
s.60/07/022 107 George Street, The Rocks Restaurant fitout 6
s.60/07/023 106 George Street, The Rocks Replacement of air conditioning system 5 s.60/07/024 12–20 Argyle Street, The Rocks Modification and acoustic treatment of existing 2 kitchen exhaust
s.60/07/025 86–88 George Street, The Rocks Painting of exterior facades 9
s.60/07/026 12–20 Argyle Street, The Rocks Modification to air conditioning system 8
s.60/07/027 86–88 George Street, The Rocks Signage 1 s.60/07/027A 100 George Street, The Rocks Conservation works to eastern and southern 4 sandstone facades s.60/07/028 32 Harrington Street, The Rocks Demolition of non-original structure to courtyard and 13 construction of new structure
s.60/07/029 30 Harrington Street, The Rocks Retail fitout 5 s.60/07/030 137–143a George Street, Repairs and maintenance to roof structure and membrane 5 The Rocks
s.60/07/031 12–20 Argyle Street, The Rocks Installation of safe roof access system 33
s.60/07/032 91 George Street, The Rocks Refurbishment of level 2 29
s.60/07/033 12–20 Argyle Street, The Rocks Repairs and maintenance of cobblestones to courtyard 1 s.60/07/034 110–128 Cumberland Street, Excavation for footings, lift pit, stairs and slab 15 The Rocks
s.60/08/001 157 Gloucester Street, The Rocks Installation of fall arrest system and dual flush toilet hardware 5 s.60/08/002 22–26 Playfair Street, The Rocks Repairs to kitchen floor of shop 14–15 1
s.60/08/003 White Bay Power Station, Rozelle Maintenance and security works including replacement of roof sheeting and structural elements, sheeting of external 32 windows s.65a/08/004 32 Harrington Street, The Rocks Modification to s.60/07/028 change in height of structure 1
s.60/08/005 1–5 Hickson Road, The Rocks Upgrade and modification of internal office fitout 9
s.60/08/006 157 Gloucester Street, The Rocks Installation of water tanks 13
s.65a/08/007 157 Gloucester Street, The Rocks Modification to s.60/08/001 – increase number of fall 1 arrest points s.60/08/008 140–142 Cumberland Street, Replacement of commercial signage 2 The Rocks
Sydney Harbour Foreshore Authority Annual Report 2007–08 119 Section 60 applications continued
Application Time number Address Summary calendar days
s.60/08/009 121–127 Harrington Street, Works to internal fitout 7 The Rocks
s.60/08/010 157 Gloucester Street, The Rocks Modification to lift car doors 3
s.60/08/011 77–85 George Street, The Rocks Conservation works to facade and roof-scape 12
s.60/08/012 89 George Street, The Rocks Signage 2
s.60/08/013 Argyle Bridge, The Rocks Structural and conservation works 2
s.60/08/014 1–5 Hickson Road, The Rocks Modification of non-original fire services 1 s.60/08/015 157 Gloucester Street, The Rocks Temporary film shoot location with minor and temporary building modifications 1
s.60/08/016 117 George Street, The Rocks Installation of air conditioning and kitchenette to level 2 4
s.60/08/017 12–20 Argyle Street, The Rocks Alterations and additions to internal non-original floor finishes 8
s.60/08/018 12–20 Argyle Street, The Rocks Installation of air conditioning and double glazing 7
s.60/08/019 Various locations, The Rocks Interpretative signage 2
s.60/08/020 Various locations, The Rocks Facade lighting 12
s.60/08/021 39–43 Argyle Street, The Rocks Conservation and base building works to interior 2
s.60/08/022 12–20 Argyle Street, The Rocks Facade stabilisation and re-roofing 5
s.60/08/023 Remains undetermined, awaiting additional information n/a
s.60/08/024 86–88 George Street, The Rocks Office fitout to levels 4 and 5 1 s.60/08/025 91 George Street, The Rocks Painting to external facade – introduction of new colour 2 scheme
120 Sydney Harbour Foreshore Authority Annual Report 2007–08 Section 57(2) exemptions
Application Time number Address Summary (calendar days)
s.57/07/21 45–47 Argyle Street, The Rocks Installation of ice machine (standard exemption 8) 3
s.57/07/22 Circular Quay Railway Station Shopfitout currency exchange (standard exemption 7) 8
s.57/07/23 Circular Quay Railway Station Shop fitout YumNuts (standard exemption 7) 2
s.57/07/24 29–31 Playfair Street, The Rocks Security grille and security alarm (standard exemption 7) 2
s.57/07/25 100 George Street, The Rocks Maintenance and repairs (standard exemption 7) 1
s.57/07/26 Pod 4 Shop 2–3 Circular Quay Fitout (standard exemption 7) 6
s.57/07/27 86–88 George Street, The Rocks Re-mounting of bookcases (standard exemption 7) 3
s.57/07/28 8 Kendall Lane, The Rocks Temporary furniture (standard exemption 7) 3
Chalk the Walk – temporary event (standard exemptions s.57/07/29 Pyrmont Bridge, Darling Harbour 1 7, 11 and 13) s.57/07/30 Circular Quay Railway Station Shop fitout pod 2 shop W4 (standard exemption 7) 6 s.57/07/31 155 George Street, The Rocks Works to L8 (standard exemption 8) 1
s.57/07/32 40 Gloucester Street, The Rocks Removal of non-original fabric (standard exemption 8) 1
32–34 Grosvenor Street, Office fitout to area containing non-significant fabric (standard s.57/07/33 1 The Rocks exemption 8)
s.57/07/34 155 George Street, The Rocks Partitions to non-significant tower (standard exemption 8) 1
s.57/07/35 70 George Street, The Rocks Modifications to existing air conditioning (standard exemption 8) 2
Removal of non-original flooring and acrylic wall paint. s.57/07/36 29 Playfair Street, The Rocks 5 Application of limewash (standard exemption 7)
s.57/07/37 155 George Street, The Rocks Demolition of non-significant partitions (standard exemption 8) 1
Trench 40m long x 0.5m deep x 0.5m wide for power to traffic s.57/07/38 Dawes Point Heritage Precinct 6 lights (standard exemptions 4 and 7)
s.57/07/39 12–20 Argyle Street, The Rocks Strengthening of structure (standard exemption 7) 5
s.57/07/40 Brooklyn Hotel and Federation Hall Modification to mail room (standard exemption 8) 2
s.57/07/41 155 George Street, The Rocks Works to levels 8 and 9 (standard exemption 8) 1
s.57/07/42 81.5 George Street, The Rocks Office fitout with loose furniture (standard exemption 7) 1
32–34 Grosvenor Street, Modifications to former retail space and former service area s.57/07/43 18 The Rocks (standard exemption 8)
s.57/08/01 157 Gloucester Street, The Rocks Replacement of sewer stack (standard exemption 7) 2
s.57/08/02 1–5 Hickson Road, The Rocks Replacement of non-original fabric (standard exemptions 7 and 8) 1
s.57/08/03 1–5 Hickson Road, The Rocks Laying of carpet (standard exemption 7) 1
s.57/08/04 Circular Quay Railway, Pod 2W8A Shop fitout (standard exemption 7) 1
s.57/08/05 Circular Quay Railway, Pod 2 W3 Shop fitout (standard exemption 7) 1 32–34 Grosvenor Street, Modification to approved internal refurbishment s.57/08/06 6 The Rocks (standard exemption 8)
s.57/08/07 1–5 Hickson Road, The Rocks Wireless internet access points (standard exemption 7) 3 s.57/08/08 106–108 George Street, Wireless internet access points (standard exemption 7) 2 The Rocks
s.57/08/09 Pier 2/3, Walsh Bay Temporary fitout for event (standard exemption 7) 1
s.57/08/10 40 Gloucester Street, The Rocks Removal of non-original fabric (standard exemption 8) 1
Sydney Harbour Foreshore Authority Annual Report 2007–08 121 Section 57(2) exemptions continued
Application Time number Address Summary (calendar days)
s.57/08/11 43–45 George Street, The Rocks Removal of shelving and installation of blind (standard 6 exemption 7) s.57/08/12 155 George Street, The Rocks Modification to existing signage (standard exemption 7) 2
s.57/08/13 233 George Street, Sydney Office fitout (standard exemption 7) 2
s.57/08/14 100 George Street, The Rocks Temporary removal of door reveal (standard exemption 7) 1
s.57/08/15 86–88 George Street, The Rocks Lintel repairs (standard exemption 7) 1
s.57/08/16 86–88 George Street, The Rocks Flooring to levels 4 and 5 (standard exemption 7) 2
s.57/08/17 22–26 Playfair Street, The Rocks Interpretation signage (standard exemption 13) 1
s.57/08/18 233 George Street, Sydney Temporary structure (standard exemption 7) 1 s.57/08/19 86-88 George Street, The Rocks Installation of balustrade for compliance 5 (standard exemption 7) s.57/08/20 Circular Quay Railway, Shop E7 Shop fitout (standard exemption 7) 3
s.57/08/21 12–20 Argyle Street, The Rocks New screed to kitchen floor (standard exemption 8) 4
s.57/08/22 12–20 Argyle Street, The Rocks Upgrade of toilet facilities (standard exemption 7) 4
s.57/08/23 12–20 Argyle Street, The Rocks Kitchen floor upgrade (standard exemption 8) 4
s.57/08/24 Pyrmont Bridge, Darling Harbour Signage (standard exemption 7) 4 s.57/08/25 143–143a George Street, Interpretive signage (standard exemption 13) 3 The Rocks s.57/08/26 32–34 Grosvenor Street, Landscaping (standard exemption 7) 1 The Rocks s.57/08/27 24–30 Grosvenor Street, Landscaping (standard exemption 7) 1 The Rocks s.57/08/28 233–235 George, The Rocks Landscaping (standard exemption 7) 1
s.57/08/29 229 George Street, The Rocks Landscaping (standard exemption 7) 1 s.57/08/30 103 George Street, The Rocks Replacement of timber lintel to rear at Nurses Walk 1 (standard exemption 7) s.57/08/31 233–235 George Street, Internal fitout (standard exemption 7) 1 The Rocks s.57/08/32 Pyrmont Bridge, Darling Harbour Maintenance (standard exemption 7) 1 s.57/08/33 135 George Street, The Rocks Removal and replacement of non-original fabric 1 (standard exemption 8) s.57/08/34 147 Sussex Street, Sydney Installation of tactile indicators (standard exemption 7) 1
s.57/08/35 1–5 Hickson Road, The Rocks Bay 5 shop fitout (standard exemption 7) 6
s.57/08/36 1–5 Hickson Road, The Rocks Provision of tactile indicators to bay 5 (standard exemption 7) 1
Payment of accounts The following table summarises the Authority’s account payment performance during 2007–08. In total, the Authority paid 95 per cent of accounts on time, meeting its target for the year.
Quarter Quarter Quarter Quarter Total Description ended ended ended ended 2007–08 30.09.2007 31.12.2007 31.03.2008 30.06.2008
Percentage of accounts paid on time % 96 96 95 94 95
Total dollar of accounts paid on time $’000 78,133 62,994 48,596 93,747 283,470
Total dollar of accounts paid $’000 81,526 65,388 51,424 99,400 297,738
122 Sydney Harbour Foreshore Authority Annual Report 2007–08 Index
88 George Street 14, 20, 23 Ethnic Affairs Priority Statement 41–42 Aboriginal culture 26, 30–31, 41 Events Aims and objectives 2–3, 6–7, 14, 26, 38, 50 Authority events 34–36 Annual report cost 125 Conferences 32 APEC Leaders Week see Events Hallmark events 24–25 Appendix 113 Supporting other events 37 Awards 23, 44 Executive team 12–13 Employee awards 40 Financial statements 50–112 Ballast Point 19 Fraud and corruption prevention 23, 48 Barangaroo 4, 14, 18, 25, 45 Freedom of information 49, 113–118 Board 10–11, 44, 46, 48 Fundraising 40 Callan Park 14, 19 Healthy Lifestyle Program 40 Car parks 16 Heritage 14, 16, 20, 23–24, 26, 32, 119–122 Chief Executive Officer 9, 10, 12, 46 Human resources 41–43 Chairman 8, 10, 44, 46 Industrial relations 43 Charter 2 Information technology 16, 28 Chinese Garden of Friendship 28–29, 34–35, 36, 42 see also Websites Circular Quay 4, 16, 26, 28 Innovation 16 Closed circuit television 28 Investment plan 16 Code of conduct 43 Jack Mundey Place 16, 28 Community services 26, 28–29, 37 Key performance indicator reporting 6–7 Conservation Management Plans 24 Knowledge management 48 Consultants 49 Legislative change 49 Contact information 125 Map 4–5 Corporate governance 44 Marketing 32–33 Audit and Risk Management Committee 46–48 Mentoring 38, 40 Corporate Governance Committee 46 Occupational health and safety 38, 40 Credit cards 49 Organisation chart 12 Customer service and feedback 17 Overseas travel 48 Darling Walk 18–19 Payment of accounts 122 Development applications 18–19 People movements 26, 36–37 Disability management 29 See also Visitation figures East Darling Harbour see Barangaroo Policies Educational programs 30–32 Busking policy 28 Employee numbers 43 Outdoor dining policy 18 Environment see Sustainability Traffic management plan 28 Equal employment opportunity 41–42 Privacy management plan 48
Sydney Harbour Foreshore Authority Annual Report 2007–08 123 Procurement 18 Property 17, 50 Sustainability index Risk management 49 88 George Street 20 Social investment 28 Aroma Festival 34 Sponsorships 29–30 Ballast Point 19 State Plan 6–7, 14, 26, 38, 50 Barangaroo 18 Sustainability 3, 14, 18, 20–22 Carbon neutral see Sustainability strategy See also Sustainability index Car park lighting 16 Strategic objectives 6–7 Chinese language brochures 42 Sydney Convention and Exhibition Centre 16, 20, 37 CitySwitch Green Office program 22 Sydney Visitor Centres 7, 22, 42 Community 29 Tenants 17 Earth from Above 37 The Rocks Discovery Museum 16, 30, 32 Eco-friendly weed control 22 The Rocks Market 4, 7, 14, 18 Energy see Sustainability strategy Tourism 33 EnergyAustralia Award 23 Tours, Technical Insight 30, 32–33 Green car parking spaces 16 Traffic management plan see Policies Green Cities Conference 32 Training 29, 38, 40 Green Star 22 Vacancy rates 17 NSW Master Builders Award 23 Vision 2 Portobello Caffé 16 Visitation figures 26, 36–37 Principles of Cooperation agreement 30 See also People movements Sydney Convention and Exhibition Centre 16 Waste 22 Sustainability strategy 20 Websites 28 Sydney Harbour YHA 24 Women in the workforce 42 Technical Insight Tours 32 Workplace6 20 Workplace6 20 World Youth Day see Events This symbol identifies the Authority’s key sustainability achievements and initiatives.
124 Sydney Harbour Foreshore Authority Annual Report 2007–08 Contact us
Sydney Harbour Foreshore Authority 66 Harrington Street, The Rocks NSW 2000 PO Box N408, Grosvenor Place NSW 1220 T: +61 2 9240 8500 or 1300 655 995 F: +61 2 9240 8899 E: [email protected] www.shfa.nsw.gov.au Reception open 8 am to 6 pm, Monday to Friday ABN: 51 437 725 177
Sydney Visitor Centre The Rocks Corner Argyle and Playfair streets, The Rocks NSW 2000 Darling Harbour 33 Wheat Road, Darling Harbour NSW 2000 (between Darling Walk and IMAX) T: 1800 067 676 (freecall within Australia) E: [email protected] www.sydneyvisitorcentre.com Sydney Visitor Centres open 9.30am to 5.30pm daily Closed on Christmas Day and Good Friday and closes at 4pm on New Year’s Eve.
Websites www.shfa.nsw.gov.au www.darlingharbour.com www.therocks.com www.barangaroo.com
Sustainable annual reporting To enhance the sustainability of the 2007–08 Annual Report, Sydney Harbour Foreshore Authority has produced it in an electronic format, available at www.shfa.nsw.gov.au. The report was written and designed in-house at Sydney Harbour Foreshore Authority. The total cost for external production and printing was $8,827.
Printed onSydney Onyx stock Harbour – 100% Foreshore recycled and Authority 100% Australian Annual Report 2007–08 125