Sydney Harbour Foreshore Authority Annual Report 2008–09 Darling Harbour is even more important now to the people of Sydney than it was 21 years ago. Families come here and it still costs them nothing to enjoy themselves. Sydney is also more ethnically diverse and you see that here. We should celebrate this. – The Hon. Neville Wran AC QC

Speaking with people involved in Darling Harbour’s creation gave me an appreciation of the political will and determination needed to make this massive project a reality. Twenty-one years later, we’ve celebrated the vibrant destination it’s become. – Shelly Rowell, Special Projects Officer

Contents

At a glance 1 Community services 24 Employee development 32 Business effectiveness 14 Indigenous initiatives 25 Human resources 33 Place management efficiency 16 Education 25 Workplace initiatives 35 Creating sustainable precincts 17 Building stakeholder Corporate governance 36 Leadership in sustainability 18 relationships 26 Financial performance 42 Heritage management 20 Outstanding events 28 Appendix 105 A year of industry recognition 21 Supporting the community 29 Index 116 Customers and stakeholders 22 Organisational health 30 Contact us 117 Sydney Convention and Organisational reforms 32 Exhibition Centre 24 Achievements 2008–09

2.6 hectares Farmers’ market 21st celebrations Opened a 2.6-hectare harbourside Launched The Rocks Farmers’ Commemorated Darling Harbour’s park at Ballast Point in Birchgrove Market and an expanded 21st Anniversary weekend market Mariners’ Church $33.1 million Completed a major refurbishment 1.57 million Invested $33.1 million in community of the heritage Mariners’ Church Attracted around 1.57 million services in our precincts in The Rocks. people* to events at The Rocks and Darling Harbour Rewarding jobs Carbon neutral Completed an organisational Made all Authority buildings Industry awards restructure to better align functions, carbon neutral Received eight industry awards for increase productivity and create sustainability, heritage conservation, more rewarding jobs $48 million organisational development, engineering and architecture Generated $48 million in revenue from property in The Rocks, Darling Harbour and surrounds

 At a glance Sydney Harbour Foreshore Authority owns and manages some of the State’s most significant assets, including Sydney’s heritage and cultural precincts at The Rocks and Darling Harbour.

With more than $1.1 billion in assets and around The Authority also owns sites at White Bay Power 230 employees, the Authority manages significant Station, Rozelle railway yards and Ballast Point and commercial and retail leases, provides security, manages other major waterfront assets around cleaning, building maintenance and other facility Sydney Harbour on behalf of other agencies. management services, and cares for the public Sydney Harbour Foreshore Authority was formed in domain and more than 140 heritage items. 1999 under the Sydney Harbour Foreshore Authority The Authority also operates tourism and marketing Act 1998 to consolidate the work and functions of services and holds significant events in The Rocks City West Development Corporation, Darling Harbour and Darling Harbour each year. Between them, the Authority and Sydney Cove Authority. precincts attract more than 40 million visitors annually.

*The number of people movements recorded. See page 29 for details on how figures are calculated.

Sydney Harbour Foreshore Authority Annual Report 2008–09 1 Our vision To make unique places in Sydney that the world talks about

2 Sydney Harbour Foreshore Authority Annual Report 2008–09 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 conservation 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.

Sydney Harbour Foreshore Authority Annual Report 2008–09 3 Lavender Our places Bay Sydney Harbour Foreshore Authority is responsible for Sydney’s most historically and culturally significant waterfront locations. These responsibilities include the care, protection, management and promotion Sydney of this land and its important buildings. Harbour Kirribilli Walsh Bay Bridge

The Rocks and Circular Quay The Rocks is located at the northern part of the Sydney CBD occupying the peninsula between Circular Quay and the Harbour Bridge. It is the place where the first European settlers came ashore in 1788. In The Rocks, the Authority owns and maintains 94 heritage Barangaroo The buildings. It also manages 290 retail and commercial Balmain Circular tenants including waterfront cafes, restaurants, bars and Rocks Quay contemporary shopping, as well as 21 residential tenants Farm and around 200 stallholders of The Rocks Markets. Cove The Authority is committed to ensuring The Rocks is a vibrant place that offers a diversity of experiences for all our White Garden visitors while protecting and enhancing its heritage. With a Bay Island growing residential population and an increasing workforce, The Rocks is changing from a tourist destination to an King intimate village with a new relevance to both locals Street CBD Wharf and Sydneysiders. Pyrmont

Darling Harbour Woolloomooloo Darling Harbour was created as a gift to the nation in Rozelle celebration of Australia’s bicentenary. Since its opening Rozelle Bay Cockle in 1988, Darling Harbour has continued to be a place of Bay celebration for the people of Sydney, as well as a hugely Blackwattle popular tourist destination. At Darling Harbour, the Rozelle Bay Lilyfield railway yards Authority oversees the management of 137 tenancies Darling comprising waterfront cafes, restaurants and bars, Harbour contemporary shopping, berths and many of Sydney’s top attractions. Ultimo

The Authority is committed to maintaining Darling Glebe Harbour as one of the world’s best waterfront leisure, entertainment and business destinations for Sydneysiders and visitors alike. Key Annandale Major owned or managed lands (Boundaries are indicative only) The Authority also owns sites at White Bay Power Station, N Rozelle railway yards and Ballast Point; is responsible for Leichhardt 21 tenancies at Pyrmont, Rozelle, Lilyfield and White Bay; W E and manages Luna Park Reserve Trust. Sydney S

4 Sydney Harbour Foreshore Authority Annual Report 2008–09 Lavender Bay

Luna Park

Sydney Harbour Kirribilli Bridge Ballast Point Walsh Bay Park

Barangaroo The Balmain Circular TheRocks Quay Rocks Farm Cove

White Garden Bay Island

King Street CBD White Bay Wharf Power Station Pyrmont

Woolloomooloo

Rozelle Rozelle Bay Cockle Bay

Blackwattle Bay Lilyfield Darling Harbour Darling Harbour Ultimo

Glebe

Key Key Annandale Major owned or managed lands (Boundaries are Major indicative owned only) or managed lands (Boundaries are indicative only)

N N Leichhardt W E W E Sydney Sydney S S

Sydney Harbour Foreshore Authority Annual Report 2008–09 5 Our performance 2008–09 Each year, the Authority sets very high standards to drive business performance. In 2008–09 the majority of our targets were successfully met, however the global financial crisis had a significant influence on our achievements during the year. The table below shows our results under our four key business outcomes: business effectiveness, stakeholder and customer satisfaction, organisational health and financial performance. Further information about our strategic objectives and their alignment to the NSW State Plan, as well as our achievements and challenges, can be found at the beginning of each section of this report.

Target Result Target Improvement Result Result Target Key Performance Indicators 2008–09 2008–09 achieved on 2007–08 2007–08 2006–07 2009–10 Business effectiveness – see page 14 Retail vacancy rate – proportion of the Authority's retail properties that are < 5.3% 1.55% Yes 1.8% 4.1% < 5.3% vacant as at 30 June 2009 (excluding ✓ ground leases from lettable area) Commercial vacancy rate – proportion of the Authority's commercial properties that are vacant < 9.9% 17.84% – No 15.9% 2.3% < 9.9% as at 30 June 2009 (excluding ground leases from lettable area) Percentage of debt outstanding for 90 days or more – as a proportion of < 4% 1.6% ✓ No 0.9% 0.9% < 2% yearly revenue Annual sick days per employee < 4.5 days 7.6 – No 6.5 5.6 < 4.5 days Annual reported safety incidents 0 0.12 No 0.09 0.07 0 per employee – Reduction in greenhouse gas Energy Energy Energy Energy Energy -11% Yes emissions and water consumption -19.3% ✓ -13.1% -16.3% -14% – based on the Authority's year 2020 sustainability targets (reductions Water Water - Water Water Water -19% Yes measured from year 2000 base) -39.6% ✓ -25.7% -21.1% -23%

Green power purchases – yearly electricity purchases sourced from renewable sources for the Authority’s > 600 cars 548 cars – No 607 cars 641 cars > 600 cars controlled sites expressed in terms of cars removed from the road Authority fleet emissions – yearly CO2 emissions of the Authority’s fleet < 62 tonnes 56.5 tonnes ✓ Yes 62.2 tonnes 66.1 tonnes < 56 tonnes based on fuel consumption Paper usage per full-time Not employee – as recorded by < 50 kg 32 kg Yes 42 kg < 35 kg ✓ collected the Authority’s printing devices Customers and stakeholders – see page 22 Tenant sales turnover growth – percentage change in yearly tenant sales turnover based on 90 tenants > 3% -5.3% – No 3.7% 6.5% > 3% supplying figures as per their lease agreement

Customer enquiry response time – average number of days taken to complete requests received through < 3 days 2.1 days ✓ Yes 2.5 days 1.1 days < 3 days the Authority’s customer request management system

The Rocks The Rocks $93.04 ✓ Yes $81.31 $87.20 Average international visitor spend > $85 > $85 – per visit to precinct based on 800 Darling Darling surveys conducted annually Harbour $82.47 – Yes $79.92 $90.13 Harbour > $85 > $85 The Rocks The Rocks $98.41 – No $99.18 $99.18 Average domestic visitor spend – > $105 > $105 per visit to precinct based on 800 Darling Darling surveys conducted annually Harbour $110.24 ✓ Yes $106.31 $106.31 Harbour > $105 > $105

6 Sydney Harbour Foreshore Authority Annual Report 2008–09 Target Result Target Improvement Result Result Target Key Performance Indicators 2008–09 2008–09 achieved on 2007–08 2007–08 2006–07 2009–10 Customers and stakeholders continued The Rocks The Rocks $60.93 No $62.82 $61.69 > $60 ✓ > $60 Average Sydneysider visitor spend – per visit to precinct based on 800 Darling Darling surveys conducted annually Harbour $59.92 – No $61.92 $57.84 Harbour > $60 > $60

The Rocks The Rocks 0.4% Yes -2.2% -2.1% > 3% – > 3%

Darling Darling Change in visitor numbers Harbour -2.4% No +2.6% -7.9% Harbour compared to previous year – > 3% > 3%

All precincts All precincts -1.5% No 1% 4.4% > 3% – > 3%

Sydney Visitor Centres visitor > 970,000 1,031,658 Yes 948,968 968,093 > 1,000,000 numbers ✓

The Rocks Discovery Museum > 96,000 90,495 No 98,615 87,056 > 90,000 visitor numbers –

The Rocks Markets visitor numbers > 1,445,000 1,535,911 ✓ Yes 1,405,802 1,371,200 > 1,500,000

Chinese Garden of Friendship > 190,000 176,499 No 185,662 185,183 > 180,000 visitor numbers –

Sydney Convention and Exhibition Centre economic contribution – > $493 $466 > $398 based on Sydney Convention and No $474 million $478 million million million – million Visitor Bureau estimated spend per type of delegate

The Rocks 3 hours 2 hours 2 hours > 2 hours > 2 hours Yes 7 minutes ✓ 56 minutes 48 minutes 30 minutes Average length of Sydneysider 30 minutes visitor stay – based on 800 surveys Darling conducted annually Harbour 3 hours 3 hours > 2 hours No 3 hours > 2 hours 7 minutes ✓ 12 minutes 30 minutes 30 minutes The Rocks 5.3 visits No 6 visits 5 visits > 5 visits Repeat visits – average number of > 5 visits ✓ visits to the precinct made within the past 12 months based on 800 Darling surveys conducted annually Harbour 7 visits ✓ Yes 6.8 visits 6.8 visits > 6.5 visits > 6.5 visits

Number of safety related incidents The Rocks 0.93 No 0.88 0.98 < 3 per 100,000 visitors – incidents < 5 ✓ include lost person, lost property, first aid required, OHS, property damage, threat, theft, assault, Darling irregular activities, unauthorised Harbour 0.41 ✓ No 0.39 0.28 < 3 activities, alarm activation and < 5 complaints

Organisational health – see page 30 Average number of training days > 3 days 1.86 No 3.86 days 4.21 days > 3 days per employee –

Turnover for full and part-time < 15% 10.6% Yes 11.7% 9.3% < 15% permanent employees ✓

Financial performance – see page 42

Precinct earnings before interest, $4.928 $8.946 $11.914 $15.718 $2.551 tax, depreciation and amortisation No million million ✓ million million million (EBITDA)*

Property revenue growth > 4% -1.7% – No 3.7% 8.2% 2.5%

Percentage expenditure reduction > 1% 1.3% Yes 0.4% -4.1% > 5% on previous year ✓

*This excludes investment and property, plant and equipment valuations, and defined benefit superannuation.

Sydney Harbour Foreshore Authority Annual Report 2008–09 7 Message from the Chairman

At the beginning of the financial year no one could have predicted the extent of the economic turmoil that was to come. As we all now know, it was a crisis that unfolded rapidly and wreaked havoc on Australian economies and global financial markets. No organisation was left untouched and certainly Sydney Harbour Foreshore Authority felt the impact.

The challenging financial environment Barangaroo created by the global financial crisis and In March 2009 the Barangaroo Delivery the NSW Government response have had Authority was established by the NSW flow-through effects for the Authority. In Government to provide the operational and response, the Board and management have policy capabilities necessary to complete reviewed operational priorities throughout an urban renewal project of this scale. the year to ensure that we are doing our After playing a significant role in reinforcing part to meet the Government’s broader the Government’s vision for the site over the policy and financial objectives. past five years—including in early planning, Considering the extent to which the feasibility, international design competition, operational environment has changed concept plan and the site’s renaming—the in the past year, I am very proud that the Authority proudly handed the project to the Authority’s Board, management and Barangaroo Delivery Authority. employees have met these challenges It is testament to the skill of the Authority’s head on. Together we have re-positioned team that this massive project stayed under the Authority to ensure future growth and the Authority’s stewardship for the entire to improve the complex array of services master planning and urban design process. to our main stakeholders—the people of The confidence from Government in that this great harbour city. expertise is reflected in the decision to A celebration of Sydney allow the Authority to manage a ground breaking consultation process for the Bays Both The Rocks and Darling Harbour are Precinct—an area four times the size cornerstones for the Government’s drive of Barangaroo. for increased visitation. As part of this, the Authority is involved in an amazing range New place making of festivals and events celebrating Sydney Alongside these significant projects, we year-round which are focused on achieving must not overlook other initiatives which, increased visitation to these precincts. although smaller in scale, will have an For Darling Harbour, the year has been a equally enduring effect on Sydney’s cultural time of reflection and celebration as the heritage and public domain. Initiatives, such precinct, in its modern form, truly came of as the creation of Jack Mundey Place in The age. A milestone by anyone’s terms, Darling Rocks and the renaming of a section of Harbour’s 21st Anniversary is a fitting Hickson Road as the Hungry Mile, were reminder of the vision and determination championed by the Authority. Both are needed by Government to create this prime examples that place making should world-class public space. Who would have reflect the evolving cultural heritage thought in 1988 that 21 years later nearly of a community. 28 million people would visit the precinct Without doubt, the Authority’s achievements each year? this year would not have been possible Ballast Point without the commitment of the Board, management and employees, and I would This year also saw the completion of a like to personally thank them for their new harbourside park at Ballast Point in outstanding contribution. I look forward to Birchgrove. The Authority’s extensive working with them in the coming year as the restoration of the former industrial site has Authority refocuses on The Rocks and returned the area to nature, and to the Darling Harbour and the strategic public, with foreshore walks, access for development opportunities that lie cyclists and picnic spaces. within them. The park’s design draws equally from the area’s rich history and the importance of a sustainable future. There can be no doubt that the community has instantly fallen in love with Ballast Point and their response is already repaying the Authority’s many years of hard work. Michael Collins Chairman

8 Sydney Harbour Foreshore Authority Annual Report 2008–09 Message from the CEO

Twelve months ago, having just been appointed as CEO, I would never have imagined what lay ahead. However I am delighted to report that the Authority’s performance over the past year has been outstanding—delivering the best in place management, sustainability and world-class events.

Business effectiveness Retaining engaged employees also The Authority opened the stunning remained a priority. A diversity of 2.6-hectare harbourside park at training, development and healthy Ballast Point to community acclaim, lifestyle programs were offered to staff, keeping the site’s heritage alive in a and timely newsletters and briefings contemporary recreational space. kept everyone informed of changes. A major refurbishment of the historic Mariner’s Church in The Rocks was Corporate governance also completed and new visitors were The Authority’s Board continued to attracted to the cobblestone laneways provide visionary leadership that with the vibrant farmers’ and designer steered the organisation through markets. At Darling Harbour, the 21st these unusual times. anniversary celebrations gave As always, change presents everyone a chance to reflect on how opportunities, and we focused on dynamic and culturally-inspired this innovative business improvements waterfront precinct truly is. and a contemporary approach to Sustainability also remained high on engaging with tenants and the agenda and the Authority met its stakeholders. target to become carbon neutral in all buildings that it occupies in The Rocks Financial performance and Darling Harbour, 12 months As would be expected, the Authority ahead of schedule. was affected by the global financial crisis during the year, with our Stakeholders and customers managed assets and local businesses Investment in community services suffering from the decline in hit $33.1 million during the year. international tourism and reduced This included providing safe and consumer spending. well-maintained public spaces in To counter the effects, the Authority The Rocks and Darling Harbour, maintained its strong capital educational services like The Rocks investment program and closely Discovery Museum and spectacular managed property, employee and events that were enjoyed by around administration expenses to deliver a 1.57 million people. healthy surplus result. Fire Water was a standout event in The Rocks, recreating the burning of the Future directions convict ship the Three Bees which In the year ahead, I believe the sank in Sydney Cove in 1814. It gave benefits of recent changes will visitors a captivating new way of become more apparent. The experiencing the heritage precinct, organisation has adapted extremely and as with all Authority events, well and has the leadership skills and included an Indigenous component to employee passion to keep doing what show respect for traditional it does best—providing exceptional landowners. place management and venue services, leading the way in Organisational health sustainability and delivering world- To better align functions, improve class events. business efficiencies and create more rewarding jobs, an in-depth organisation review took effect in March 2009. The new structure will allow the Authority to best meet the challenges that lie ahead, and continue to lead the way in asset and Robert Domm place management. Chief Executive Officer

Sydney Harbour Foreshore Authority Annual Report 2008–09 9 Left to right: Michael Collins, Clive Craven, Bonnie Boezeman, Michael Gallagher, Gabrielle Trainor, Tom Gellibrand and Robert Domm in The Rocks

10 Sydney Harbour Foreshore Authority Annual Report 2008–09 Our Board

Michael Collins Gabrielle Trainor Bonnie Boezeman AO FRICS LLB, FAICD PMD diploma Harvard Business Honorary Associate, Graduate Partner, John Connolly School, FAICD, FAMI Letter to the School of Government (Sydney) and Partners Board member/member Minister Registered Valuer without Board member/member Sydney Harbour Foreshore limitations Sydney Harbour Foreshore Authority (including Luna Park Managing Director, Michael Authority (including Luna Park Reserve Trust) Collins and Associates Reserve Trust) Cooks Cove Development The Hon. Kristina Keneally MP Pty Limited Cooks Cove Development Corporation Minister for Planning Board member/member Corporation Chair, Audit and Risk Level 35 Chair, Sydney Harbour Corporate Governance Management Committee, Governor Macquarie Tower Foreshore Authority (including Committee, Sydney Harbour Sydney Harbour 1 Farrer Place Luna Park Reserve Trust) Foreshore Authority Foreshore Authority Sydney NSW 2000 Chair, Barangaroo Barangaroo Delivery Authority Deputy Chair, NSW Delivery Authority Victorian Urban Development State Lotteries Chair, Cooks Cove Authority (VicUrban) Director, Order of Australia Dear Minister Development Corporation Commissioner, Australian Foundation Association Chair, Passenger Cruise Football League (NSW-ACT) Chair, PayPal Australia Pty Ltd I have pleasure in submitting Terminal Steering Committee Sydney Symphony Orchestra Chair, Business Benefits Redfern-Waterloo Authority Chair, Docklands Place International Pty Ltd the Sydney Harbour Foreshore Australian Technology Park Management and Municipal Chair, East West Foundation Authority Annual Report for the Precinct Management Ltd Committee Cypress Lakes Golf and Country year ended 30 June 2008. Parramatta Civic Place Breast Cancer Network Club Pty Ltd Advisory Board Advisory Committee of Australia NSW Olympic Committee The report has been prepared Appointed as a Sydney St Ignatius College Council ARS Musica Australia in accordance with the Annual Harbour Foreshore Authority Catholic Resources Trust, Appointed as a Sydney Harbour Reports (Statutory Bodies) Board member in February Board of Management Foreshore Authority Board 2005 for a period of three years. Public Interest Law Clearing member in February 2005 for Act 1984, the Public Finance Appointed as Chair in January House a period of three years. and Audit Act 1983 and the 2008 for a period of three years. Hon Associate, Graduate Reappointed in January 2008 regulations under those Acts. School of Government, for a period of three years. Robert Domm Sydney University BA, LLB, MLLR, Graduate Appointed as a Sydney Harbour Michael Gallagher Diploma in Legal Practice Foreshore Authority Board BSurv, BE (Civil) Yours sincerely Board member/member member in December 2005 Board member/member Sydney Harbour Foreshore for a period of three years. Sydney Harbour Foreshore Authority (including Luna Park Reappointed in December Authority (including Luna Reserve Trust) 2008 for a period of Park Reserve Trust) three years. Cooks Cove Development Cooks Cove Development Corporation Corporation Tom Gellibrand South Sydney Leagues Club Appointed as a Sydney Harbour Appointed as Sydney Harbour Bachelor of Applied Science Foreshore Authority Board in Applied Geography Foreshore Authority Chief member in January 2008 for Michael Collins Executive Officer andB oard Master of Town and Country a period of three years. member in July 2008. Planning Chairman Graduate Diploma in Public Clive Craven Administration. LLB, LLM, GAICD Board member/member Board member/member Sydney Harbour Foreshore Sydney Harbour Foreshore Authority (including Luna Park Authority (including Luna Park Reserve Trust) Reserve Trust) Cooks Cove Development Corporation Cooks Cove Development Robert Domm Corporation Heritage Council of NSW Chief Executive Officer Chair, Corporate Governance Central Sydney Planning Committee, Sydney Harbour Committee Foreshore Authority Hunter Development Corporation Audit and Risk Management Tom Gellibrand, Deputy Committee, Sydney Harbour Director-General, Plan Making Foreshore Authority and Urban Renewal, Department Appointed as a Sydney Harbour of Planning, attends Board Foreshore Authority Board meetings on behalf of the member in January 2008 for Department’s Director-General. a period of three years.

Sydney Harbour Foreshore Authority Annual Report 2008–09 11 Left to right: Robert Domm, Diana Talty, Debra Dawson, Ian Kelly, Catherine Gallagher, Bob Deacon and Egle Garrick at Ballast Point Park

12 Sydney Harbour Foreshore Authority Annual Report 2008–09 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 37)

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. 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. He is currently a Board member of Sydney Harbour Foreshore Authority (including Luna Park Reserve Trust), Cooks Cove Development Corporation and South Sydney Leagues Club. He is a former Chief Executive Officer of Redfern-Waterloo Authority and City of Sydney.

Executive Manager Executive Director Acting Executive Director Executive Director Property and Asset Strategic Developments Marketing and Events Corporate Services Management Diana Talty was appointed Catherine Gallagher was Egle Garrick was appointed Bob Deacon was appointed to the position of Executive appointed to the position of to the position of Executive to the position of General Director, Major Projects on Marketing Manager on Director, Corporate Services on Manager, Darling Harbour on 30 May 2005. She joined the 15 August 2005 and seconded 16 February 2005. She joined 1 August 2002 and appointed Authority in January 2001. to the position of Acting the Authority in March 2003. to the position of Executive Ms Talty holds a Bachelor of Executive Director Marketing Mrs Garrick holds a Master of Manager of Property and Asset Arts (Honours) in Government and Events in June 2009. Ms Science and Society, Bachelor Management on 28 April 2008. and is a State Government Gallagher holds a Bachelor of Arts, Diploma of Mr Deacon holds an Associate representative on the Board of Arts and has extensive Librarianship and a Certificate Diploma in Real Estate of the Sydney Harbour experience in marketing, of Transport Management and Valuation and is a Fellow of the Federation Trust. communication and cultural is a graduate of the Australian policy in both the public and Institute of Company Directors’ Australian Property Institute. Responsible for: Mr Deacon has extensive private sectors. Diploma Course. She is a • Commercial development non-executive Director of the experience in property Responsible for: management, development, • Master planning training organisation MTC • Educational services and planning and construction. • Urban renewal Workplace Solutions and the tours • Project feasibilities Place Leaders Association. Responsible for: • Events • Current projects include: Responsible for: • Property management • Marketing – Darling Walk • External relations • Major businesses, including: • Sydney Visitor Centres – Bays Precinct – Sydney Convention and • Information, communications This position was previously Exhibition Centre – Cooks Cove and technology – Luna Park held by Charmaine Moldrich • Finance – Sydney Entertainment between 24 July 2006 and 29 • Procurement Centre May 2009. – car parks General Manager • Human resources Darling Harbour • Chinese Garden of General Manager Friendship Ian Kelly commenced at the The Rocks and • Asset services, including: Authority in October 2001 and Circular Quay – project services and capital was seconded to the position of works Acting General Manager Darling Debra Dawson was – sustainability Harbour on 7 April 2008. He was appointed to the position of General Manager, The Rocks – logistics and operations appointed to the position of General Manager of Darling and Circular Quay on – heritage and design Harbour on 28 August 2009. He 5 February 2007. Ms Dawson • Callan Park operations holds a Master of Architecture has extensive experience in and has many years experience place management, retail in architecture, planning, building management and marketing. conservation and urban design. Responsible for: Responsible for: • Place management • Place management • The Rocks Markets

Sydney Harbour Foreshore Authority Annual Report 2008–09 13 The Darling Walk redevelopment will be an exciting addition to Darling Harbour, offering campus- style office space for more than 5,000 workers and a new world- class public domain. Lend Lease is bringing quality architecture and urban design to the project, and sustainability features will be at the cutting-edge. – Sean Brasier, Project Development Manager

Working with Sydney Harbour Foreshore Authority on Darling Walk is a thrilling opportunity. It’s a project that will make a major contribution to Darling Harbour and the city. The parkland experience will be a first in Australia, with interactive water features, a nature playground and kiosks. – Luke Hogan, Site Manager, Lend Lease

14 Sydney Harbour Foreshore Authority Annual Report 2008–09 Business effectiveness Manage the business well and continually improve our internal processes so we do our job efficiently and sustain business growth.

• Made all Authority buildings • Generated $48 million in lease • Opened a new 2.6-hectare carbon neutral revenue in The Rocks, Darling harbourside park at Ballast See page 18 Harbour and surrounds Point in Birchgrove See page 16 See page 17 • Commemorated Darling Harbour’s 21st Anniversary • Completed a major • Received eight industry See page 16 refurbishment of the awards for sustainability, heritage Mariners’ Church heritage maintenance, • Launched The Rocks at 100 George Street organisational development, Farmers’ Market See page 16 engineering and architecture See page 16 See page 21

NSW Government Challenges • Continue to partner with Sydney State Plan priorities • Managing the divestment of assets Convention and Exhibition Centre and the Sydney Entertainment • P1 Increased business investment at Darling Harbour. Centre to identify cost-effective • P2 Maintain and invest in • Continuing to find innovative ways ways to reduce energy and infrastructure to deliver on our ambitious water consumption sustainability targets. • P3 Cutting red tape • Progress staged implementation • Assisting with the creation of • E3 Cleaner air and progress on of the harbour heat exchange the Barangaroo Delivery Authority greenhouse gas reductions program in The Rocks and the allocation of resources to • E8 More people using parks, provide finance, human resource • Continue the redevelopment of sporting and recreational facilities management, information Darling Walk and participating in the arts and technology, procurement and • Continue to manage the cultural activities communications support. consultation process to determine future land uses for Bays Precinct Authority strategic objectives Future directions 2009–10 • Partner with key stakeholders to • Prepare asset management create and enhance sustainable plans for all Authority-owned precincts assets to identify maintenance • Demonstrate leadership in social and management priorities and environmental sustainability • Review property management and integrate it into all our business business arrangements to minimise • Deliver the first phase of the current and future property Barangaroo project and continue to vacancies through early lease enhance the uniqueness and value renewals and holdovers of The Rocks and Darling Harbour as key core business precincts

Sydney Harbour Foreshore Authority Annual Report 2008–09 15 • White Bay Power Station Giving a village feel to the newly Place maintenance and conservation (see pedestrianised Jack Mundey Place, page 20). The Rocks Farmers’ Market offers management fresh produce direct from local Low vacancies, growers to local residents, CBD efficiency high rental return workers and visitors every Friday. In Investment plan reaches Although 2008–09 has brought June 2009, the Authority launched a year four difficulties due to the global financial joint initiative with the Department of crisis, the Authority has capitalised on Industry and Investment to showcase Sydney Harbour Foreshore Authority effective stakeholder relationships to producers from regional NSW at completed the fourth year of a renew tenancies and grow rents. the market. five-year revitalisation program for The Rocks and Darling Harbour. As at 30 June 2009, the Authority The much-loved 17-year-old weekend achieved a retail vacancy rate of market was also enhanced during the Projects totalling $9 million in The 1.55 per cent in The Rocks, compared year with additional stalls and a Rocks and $8 million in Darling to the average Sydney prime retail strip dedicated designers’ section including Harbour, were undertaken to upgrade vacancy rate of 5.3 per cent*. In The clothing, jewellery and accessories, buildings, enhance the public domain Rocks 13 new retail leases and 7 new hand painted ceramics, designer linen, and ensure the sustainability of both licences were signed, while 11 leases furniture, photography, prints and areas for tenants, visitors and and four licences were renewed. In original artwork. residents. Darling Harbour 13 leases and Changes to the market have been In addition to meeting financial licences were renewed. successful with an increase in and investment targets, the Authority While the commercial vacancy rate visitation to The Rocks of 37 per cent continues to focus on meeting the appears high (see page 6), this figure on Fridays, 20 per cent on Saturdays expectations of its tenants, visitors is skewed by one large vacant and 14 per cent on Sundays from and other stakeholders. Further building—Science House in The October 2008 to June 2009, compared investment projects will be undertaken Rocks. Science House is a unique to the same period in the year prior. in 2009–10, so that both precincts heritage building which only lends can maintain their leading position in itself to a particular type of tenant. Darling Harbour 21 years young Sydney’s entertainment, tourism and New Year’s Day 2009 marked the start retail sectors. The Authority achieved a 4.3 per cent growth in revenue from its leased of a milestone year for Darling Harbour Projects in The Rocks included: properties to $48 million in 2008–09. as the precinct celebrated its 21st • a major refurbishment of the anniversary. Following its controversial heritage Mariners’ Church at 100 The Rocks invests in transformation from post-industrial George Street including the return of long-term leases wasteland to waterfront entertainment the church’s original stained-glass hub, Darling Harbour was officially windows and the discovery and As a direct response to requests from opened in May 1988 as part of conservation of a 150-year-old tenants in The Rocks, the Authority Australia’s bicentenary celebrations. colonial street—Bethel Street developed a new policy in June 2009 to allow existing tenants to equitably Despite its early challenges, the • highlighting The Rocks’ heritage negotiate longer-term leases. renewal of Darling Harbour is now characteristics with energy-efficient, widely regarded as world-leading. low maintenance facade lighting on The new policy means that existing Today more than 180 tourism, retail Argyle Stores, Cleland Bond, 91 lessees have the opportunity to make and leisure businesses operate in George Street, 100 George Street a longer-term investment in the future the precinct, contributing an and 1–5 Hickson Road growth of their business. Eligibility for estimated $4 billion annually to renegotiation is assessed on a the State’s economy. • reconstructing a circa 1880 cable case-by-case basis against a broad hut under the southern pylon of the range of criteria, with a focus on As custodians of modern Darling Harbour Bridge. heritage protection and the long-term Harbour, the Authority marked the Projects in Darling Harbour included: maintenance of the property. precinct’s coming of age with a number of free public events, including • enhancing the Workers’ Memorial on a one-day cultural festival with more the Sydney Entertainment Centre Fresh approach at than 200 performers (see page 29), an lawn in time for the 2009 The Rocks Markets outdoor pictorial exhibition, a children’s International Day of Mourning Following significant stakeholder photography competition and two service in April consultation, The Rocks’ outdoor books charting its history and renewal. • continuing the Sydney Convention shopping icon was relaunched with a and Entertainment Centre interior fresh new look, including a new New life for chocolate factory farmers’ market, in September 2008. upgrade program (see page 24) The Lawson Menzies building at The revitalised market supports 212–218 Cumberland Street in The • relocating tenants in preparation Australian-made products, home- Rocks is set for a new chapter after the for the Darling Walk redevelopment grown creative talent and local Authority advertised for proposals to (see page 18) farmers. *Source CB Richard Ellis

16 Sydney Harbour Foreshore Authority Annual Report 2008–09 refurbish, restore and enhance the parks at Darling Harbour will also resource management, information historic building. The circa 1924 State be divested. technology, procurement and heritage-listed building has a rich The Authority will divest these communications. history and was once known as the properties through an open and ‘chocolate factory’ because it was built Ballast Point transformed competitive process that is expected for the public for the Cadbury chocolate company. to commence in early 2010. The The request for proposals was open divestment will allow the Authority to A new 2.6-hectare harbourside from April to July 2009. focus on delivering non-commercial park was opened at Ballast Point in and social projects for the community. Birchgrove in July 2009 providing Divestment of assets foreshore walks, access for cyclists In November 2008, the NSW and picnic spaces for local residents Government announced the Creating and visitors. divestment of a number of government The Authority’s restoration of the assets more suited to management by sustainable former industrial site incorporates the the private sector. This included some area’s rich history—from Aboriginal commercial assets and leases precincts occupation to its recent industrial belonging to Sydney Harbour New approach for Barangaroo past—into the park’s design through Foreshore Authority which will be information displays, art and poetry. divested by granting a concurrent In April 2009 Sydney Harbour lease for the remainder of the existing Foreshore Authority transferred Wind turbines, located at the top of lease term. responsibility for the design and one of the design pieces, are just one construction of the $4 billion of the park’s sustainable features. These assets include Darling Walk, redevelopment of Barangaroo to the Other environmental elements include Harbourside Shopping Centre, Ibis newly established Barangaroo Delivery decks and seating made of recycled Hotel, IMAX Theatre Complex, Novotel Authority (BDA). material, wetland areas to filter Darling Harbour, Novotel Rockford, stormwater before it enters the As BDA is expected to remain a small Sydney Aquarium and Sydney Wildlife harbour, and native trees, shrubs organisation, Sydney Harbour World in Darling Harbour and Old and grasses planted across the site. Sydney Holiday Inn, Park Hyatt and Foreshore Authority will continue to Shangri-La Hotel in The Rocks. The provide support as required, including Promontory and Harbourside car in the areas of finance, human

Ballast Point Park provides foreshore walks, access for cyclists and picnic spaces

Sydney Harbour Foreshore Authority Annual Report 2008–09 17 Darling Walk redevelopment New plan for Callan Park verified by independent carbon milestones A decision was announced by the management experts Climate Friendly. To achieve this target, energy The concept plan for the NSW Government in October 2008 consumption was cut by 16 per cent redevelopment of Darling Walk in to hand over the care, control and against year 2000 levels and Darling Harbour was approved in July management of Callan Park to renewable energy and a small amount 2008 and Lend Lease was selected to Leichhardt Council under a of carbon offsets were purchased. develop the 1.5-hectare site. 99-year lease. During the demolition phase, Around 40 hectares of the 60-hectare Sustainability in action Callan Park site will be transferred to 1.1 million litres of water from the The Authority is working towards Council including the site’s waterfront, Darling Walk lake was recycled for the 2020 targets set out in the playing fields and parkland. Under use in Darling Harbour’s parks and Sustainability Policy with efficient the transfer, the NSW Ambulance gardens. The Authority also conducted energy management through Services, NSW Writers Centre, Rozelle an archaeological dig at the site in technology, education, renewable Child Care Centre and low-cost early 2009 with assistance from the sources, district electricity generation accommodation for nurses and other Metropolitan Local Aboriginal Land systems and carbon offsets. Council (see page 25). The dig key workers will stay on site. revealed large quantities of shells, The Authority, on behalf of the NSW Projects and initiatives in progress an 1830s timber post and rail fence Government, is working with all include: and a 180-year-old sandstone street stakeholders to finalise the transfer • investigating a harbour-based heat and drain. boundaries. The draft land use plan, exchange system for The Rocks with which would have seen Sydney The Darling Walk project, which is the potential to save $3.6 million in University expand its floor space expected to be completed by late energy costs over 30 years and at Callan Park will not proceed. 2011, will include office space for reduce potable water consumption 5,000 workers, underground public by 100 per cent car parking, retail and leisure facilities, • conducting a feasibility study public open space, a children’s Leadership in on rainwater harvesting on playground and information about the sustainability Pyrmont Bridge site’s history. Lend Lease has also • plans to upgrade all public domain committed to achieving a Green Star Sustainability the best policy lighting in Darling Harbour to energy design rating and deliver best practice The Authority’s ambitious sustainability efficient lighting in sustainability. targets, which were released in • developing a sustainability November 2007, formed the basis of a procurement policy to encourage Bright future for Bays Precinct new Sustainability Policy adopted in the use of sustainable goods and The NSW Government launched an May 2009. innovative consultation process in services The policy aims to reduce the carbon June 2009 to give the community a • partnering with the Department of emissions of The Rocks and Darling say in the future of Sydney’s western Environment and Climate Change Harbour by a massive 80 per cent from harbour at Bays Precinct—in particular NSW (DECC) to offer tenants access 2000 levels by 2020, with carbon Glebe Island, White Bay and White Bay to the Energy Efficiency for Small neutrality across the Authority’s Power Station. Business Program which provides business operations by 2010. The consultation process, which will rebates for implementing energy- The Authority also aims to reduce be managed by the Authority, invites saving opportunities potable water consumption by 80 per Sydneysiders, community groups, • working with waste contractors to cent, to recycle or compost 80 per local businesses and councils to help increase the percentage of waste cent of all waste generated in its conceive the future of the area. diverted from landfill. precincts, and to procure 80 per cent The process includes an interactive of all products from recycled or Sustaining our soils website and forums, a public sustainable sources by 2020. submissions process, a community Sustainable horticulture trials have reference group and specific Positively neutral continued in Darling Harbour over the past year, including the recycling consultation with industry groups. In June 2009, the Authority became of green waste by returning it to During the second stage of the the first NSW Government agency to garden areas as mulch, and a consultation process, the community achieve carbon neutrality in all study to investigate a reduction will be invited to provide feedback on buildings that it occupies, reaching the in chemical use. the draft planning principles before milestone a year ahead of schedule. The three-month study, which was they are finalised. Both Sydney Visitor Centres and the completed in June 2009, included: Authority’s five office buildings in The Rocks and Darling Harbour are now • reducing soil hardness to carbon neutral—an achievement promote the rapid recovery of high use areas particularly after public events

18 Sydney Harbour Foreshore Authority Annual Report 2008–09 Sydney Convention and Exhibition Centre introduces more sustainability features

• improving water infiltration and In June 2009, the Authority was invited decrease by a further 14.5 per cent holding capacity of the soil by the council to participate in a on 2007–08 figures. • launching a mobile dosing unit workshop to begin this development. During the year the centre reduced to effectively apply soluble organic The workshop included senior waste to landfill by 14 per cent by matter through existing irrigation representatives from State government separating waste into more categories systems across Australia, the private sector to increase recycling opportunities. and NGOs. • using concentrated fish solution The centre has also developed to increase the population of Champions in the workplace GreenPower information sheets and beneficial micro-organisms provides detailed information to help The Authority established a cross- clients reduce energy usage during • brewing beneficial micro-organisms organisational group in November non-operational periods. In 2008–09 for application to lawns, trees and 2008 to help employees become more a number of events, including the gardens proactive about sustainability. The Gift Fair in February 2009, purchased group’s first green initiative—the • minimising the use of chemicals renewable energy from GreenPower. addition of a new ‘best representation to reduce risk to employees and the The centre has also changed its of sustainability’ category in the public. overnight cleaning process to monthly CEO’s Guiding Principles minimise additional electricity Following the success of the trials, the Award—was launched in March 2009, usage after hours. Authority will continue to implement and employees can now nominate the principles of sustainable colleagues in this category. 6 horticulture wherever possible. Shining stars at Workplace Water, waste and energy wise Workplace6, the first building with Precincts to get Green a 6 Star Green Star rating to be In 2008–09 Sydney Convention and completed in New South Wales, was Star treatment Exhibition Centre continued to opened in May 2009. The building is Following the successful uptake of increase water savings by refurbishing the final stage of the Authority’s green building practices and the six additional sets of toilet facilities with revitalisation of Darling Island and is prominence of the Green Star rating waterless urinals, low volume dual owned by the GPT Group, under system for commercial office and flush toilets and sensor taps. This, leasehold from the Authority. retail, the Green Building Council of together with the replacement Australia is now working to develop of the centre’s hot water boiler, has a rating tool for precincts and seen the building’s water usage communities.

Sydney Harbour Foreshore Authority Annual Report 2008–09 19 At the opening of Workplace6, Skilled stonemasons Sydney Harbour YHA and The Big Dig Green Building Council chief executive conserve facade Archaeology Education Centre is Romilly Madew commended the expected to open in late 2009 and will The Authority commenced work on a Authority for working closely with the include a 106-room hostel with 354 heritage conservation project at developers to set the benchmark for beds, public access to the site, the 107–109 George Street, The Rocks in future 6 Star Green Star buildings. reinstatement of Carahers and Cribbs late 2008. The project, which will lanes and extensive interpretation of The office development’s two new include conserving the sandstone the site’s history. international tenants—Google and facade, installing new slate roofing and Accenture—will occupy the majority of repairing joinery and plastering, is due White Bay Power Station the building’s commercial space and to commence in July 2009. bring several hundred additional The Authority carried out maintenance The 1860s building’s original stone workers into Darling Harbour. work at the heritage-listed White Bay carving has been reconstructed by Power Station in early 2009. Roof Reducing waste and increasing stonemasons at the NSW Department sheeting was secured and a number of Commerce using Sydney recycling of steel columns in the boiler house yellowblock stone sourced from the and the turbine hall were repaired to The Authority implemented a number Centenary Stone Program. The increase the structural integrity of of waste reduction and recycling carving, which has been modelled on the building. initiatives during the year including: photographs and drawings of the The future of the power station will be • recycling redundant office original, will be installed in the second considered as part of a community consumables, including ring binders, half of 2009 along with other new consultation process for the Bays through Reverse Garbage replacement stonework Precinct, which also includes White • using recycled rubble walls, Sydney Harbour YHA Bay and Glebe Island (see page 18). hardwood timber decking, seating well underway and aggregate for concrete, as well Heritage determinations Work began on the construction of as smart lighting and wind turbines Under delegation from the Heritage Sydney Harbour YHA and the adjacent at Ballast Point Park in Birchgrove Council and under the Heritage Act, education centre on an archaeological the Authority: • diverting a minimum of 50 per cent site in The Rocks in September 2008. of waste from landfill from the Once completed, the site, which is • assessed 27 Section 60 applications Authority’s waste facilities located between Cumberland and with an average processing time of • providing increased recycling Gloucester streets, will be home to three days. This is substantially facilities at Authority events including the largest archaeological urban faster than the statutory assessment collecting ground coffee beans from development in Australia. period of 40 days The Rocks Aroma Festival for reuse by the Authority’s horticulture team.

Heritage Bringing The Rocks to life During the year, the Authority At 100 George Street a small portal management developed storyboards and displays was cut into the side of the building for Argyle Street to coincide with the and a storyboard installed to Harbourside reconstruction creation of Jack Mundey Place. The highlight the colonial roadway, A historic cable hut was reconstructed stories of the Green Ban movement, footpath and retaining wall which by the Authority on the Dawes Point the subsequent ‘Battle for The were discovered during the Seawall underneath the southern end Rocks’ in the 1970s and the unionist building’s conservation works of the Harbour Bridge at the end of Jack Mundey are told on three in 2008. 2008. The small circular stone building large-scale glass panels in nearby Other works completed during the was dismantled and placed in storage Kendall Lane. A smaller glass panel in 2000 for the restoration of the year as part of The Rocks’ ongoing dedicating Jack Mundey Place itself interpretation strategy include Dawes Point Seawall which was was also unveiled by the former NSW completed in 2006. life-size silhouettes of mid-19th Premier Bob Carr in May 2009. century businessmen in the The building dates from about 1880 Stories of other famous local passageway alongside 73 George and was used for telecommunication characters, including the young Street and a display at 88 George across the harbour and possibly also Aboriginal Nanbaree, convict-turned- Street telling the history of Bushells observation for defensive purposes. businessman George Gannon and tea on the site in the early 1900s. Information panels, which will the Duke of Argyll, are also told in complete the project, are due to be footpath inlays and glass panels installed in the second half of 2009. around Jack Mundey Place.

20 Sydney Harbour Foreshore Authority Annual Report 2008–09 • processed 55 Section 57(2) Another Green Globe The major upgrade, which took place exemptions with an average Sydney Convention and Exhibition in mid-2007, included the installation processing time of two days, Centre was again recognised as a of more than 300 high quality outdoor well below the statutory processing Green Globe Benchmarked convention speakers for crowd control, emergency period of 14 days centre in July 2008. To meet the response and to extend the reach of • assessed two Section 140 requirements the centre was assessed on-stage sound systems. applications against a number of indicators including water savings, waste sent to APRIL • processed six Section 139 landfill, waste recycling, and paper, Sandstone scoops heritage award exceptions. cleaning and pesticide products. In Skilful sandstone conservation work Delegated determinations are listed in addition to having a sustainability at the former Mariners’ Church at the Appendix on page 106. policy in place, all 10 assessed 100 George Street in The Rocks won ‘Earthcheck’ indicators were found to The Authority also continued its a National Trust EnergyAustralia Award be above the baseline level. heritage maintenance program in The in April 2009. Rocks and Darling Harbour to ensure NOVEMBER The work, which has reinstated some all its heritage items are maintained to Authority wins Premier’s award of the church’s lost architectural the highest standard in accordance elements and will further protect with the Heritage Council’s guidelines. Sydney Harbour Foreshore Authority existing features, was a collaborative won a bronze award at the 2008 effort between the Authority, NSW Ongoing conservation Premier’s Public Sector Awards in Department of Commerce and management November for its organisational Gartner Rose. The Authority continued its program development strategy. The award, in to prepare Conservation Management the category of Delivering the Plan JUNE Plans (CMPs) for all assets listed on the – Workforce, commends the various Annual report goes one better programs on offer under the strategy— NSW State Heritage Register. The After winning an Australasian Reporting register lists 105 buildings and sites including healthy lifestyle, mentoring, and learning and development. Awards (ARA) Silver Award for its owned by the Authority. Under the 2006–07 annual report, the Authority’s NSW Heritage Act 1977, CMPs are Ongoing success for green building 2007–08 annual report went one step required to guide the conservation The Authority’s 5 Star Green Star further by achieving a prestigious Gold and future use of these heritage items. design for 88 George Street in The Award. The award recognises the In 2008–09 the program resulted in Rocks picked up more awards during Authority for meeting world best the preparation of 12 new and 13 the year, bringing the total number of practice annual reporting standards. revised CMPs. This completes the industry accolades to five. Amenities with winning architecture program and CMPs will now be In November 2008, the building was reviewed and revised over a five to The new amenities buildings at Ballast chosen as joint winner in the large seven year cycle or where major works Point Park received a commendation in commercial category at the BPN have taken place. In the coming year, the Small Project Architecture category Environ Sustainability Awards. Then 14 heritage items are scheduled for at the Australian Institute of Architects’ in June 2009, 88 George Street was a CMP update. 2009 NSW Architecture Awards. The highly commended in the adaptive buildings were built with the local reuse category at the Property Council environment in mind with one nestled A year of industry of Australia’s 2009 Innovation and below a sandstone cliff and another Excellence Awards. featuring sweeping harbour views. recognition Since its completion in late 2007, 88 George Street has also been JULY honoured at the National Trust Heritage Award winners Convention Centre wins World Travel Awards, the Engineers Australia • Sydney Convention Award Awards and the Australian Property and Exhibition Centre Institute Awards. Sydney Convention and Exhibition • The Authority’s organisational Centre picked up the World Travel Sound system one of state’s best development strategy Award for Australasia’s Leading Rutledge Engineering’s upgrade of Conference Centre for the third • 88 George Street Darling Harbour’s site sound system consecutive year in July 2008. won a 2008 NECA (National Electrical • Darling Harbour’s site The centre was chosen from a field and Communications Association) sound system of six finalists, including conference state award in the commercial – • Sandstone conservation centres in Auckland, Cairns, Melbourne medium project category in November at 100 George Street and Wellington. 2008. The project was also highly • Annual Report commended in the national NECA awards. • Ballast Point Park amenities

Sydney Harbour Foreshore Authority Annual Report 2008–09 21 The canoe building program is an excellent example of engendering cultural pride in younger generations. The project aligns perfectly with The Rocks Discovery Museum objectives, showing that Aboriginal Australia is a living, contemporary culture. It was a real buzz to see students so engaged in learning and interpreting this traditional craft. – Mel Loe, Educational Services and Tour Manager

We were proud to have the opportunity to share our cultural knowledge and contribute something historically valuable to the museum. We were also proud to be part of such a major project, which reflects positively on the local Redfern community. – Candice Donohue, Billy Sullivan and Daniel Drygala, Alexandria Park Community School students

22 Sydney Harbour Foreshore Authority Annual Report 2008–09 Stakeholders and customers Provide excellent service to our customers and address their needs and expectations.

• Consolidated the Authority’s • Consulted with the Metropolitan • Produced events in The Rocks corporate, government, tourism Land Council for all of the and Darling Harbour attended and educational websites into Authority’s Aboriginal initiatives by around 1.57 million people* four new sites See page 25 See page 28 See page 24 • Expanded online customer • Invested $33.1 million in privilege programs for The community services in our Rocks and Darling Harbour to precincts more than 36,500 members See page 24 See page 26

NSW Government Challenges Future directions 2009–10 State Plan priorities • Increased pedestrian and cycle • Continue to review and refresh • R3 Reduced levels of anti-social traffic on Pyrmont Bridge has the Authority’s event program behaviour necessitated a program of traffic • Continue to improve precinct calming and education. The • R4 Increased participation and functionality and presentation Authority is working with City of integration in community activities Sydney to ensure the safety of all • Better align the Authority’s name • S8 Increased customer satisfaction bridge users. and brand with that of its precincts with Government services • International and domestic visitation • Continue to build and progress the • F2 Increased employment and to Sydney again decreased in Authority’s relationship with its key community participation for people 2008–09 due to the global financial stakeholders with disabilities crisis. To counter the effects, the • Progress plans to expand the • E8 More people using parks, Authority focussed on new ways Sydney Convention and Exhibition sporting and recreational facilities to attract visitors to its precincts Centre and Sydney Entertainment and participating in the arts and including a new public winter Centre cultural activities event and a new weekly farmers’ market in The Rocks, and a one- Authority strategic objectives off free cultural event to bring the community back to Darling • Deliver outstanding customer Harbour. service that demonstrates the Authority’s commitment to make living places and great experiences • Partner with our stakeholders to develop mutually beneficial relationships to care for the foreshore at the heart of Sydney

*The number of people movements recorded. See page 29 for details on how figures are calculated.

Sydney Harbour Foreshore Authority Annual Report 2008–09 23 Investment in social and non- Sydney Community commercial activities Convention and services During the year, the Authority spent $19.9 million on social and non- Exhibition Centre Sharing Pyrmont Bridge safely commercial activities as place manager of Sydney’s significant Convention Centre planning for In recent times there has been a steady increase in pedestrian and waterfront precincts and custodian of long-term future cycle traffic on Pyrmont Bridge as some of the city’s most valued natural Sydney Convention and Exhibition more commuters walk or cycle to and cultural heritage. Centre drives commercial visitation to work. A number of new cycleways are This operational expenditure provided Darling Harbour, providing business also planned for the city including one safe, secure, clean and well for the precinct’s hotels, retail areas on King Street that connects with the maintained public spaces for 40.85 and major attractions. In 2008–09 the bridge. The Authority has been liaising million people*. It also delivered number of events held at the centre with the City of Sydney to ensure the heritage maintenance; environmental increased from 547 to 564 (see table community is educated about safety in planning; event management for below), however the effect of the the shared cycle and pedestrian zone social, community and celebratory global financial crisis on the events on Pyrmont Bridge. activities; two visitor information industry resulted in an 18 per cent In late 2009 the Authority will centres; and educational services decrease in delegate numbers. implement a program of traffic calming including The Rocks Discovery Sydney Harbour Foreshore Authority is and education initiatives to reflect the Museum. committed to maintaining the centre’s contemporary use of the bridge and In addition, the Authority’s total capital pre-eminent status in the Asia-Pacific ensure that it continues to serve expenditure in social programs and region and increasing Sydney’s share Sydney as part of a sustainable non-commercial activities was of the global conference and exhibition transport future. $13.2 million during 2008–09. This market. A five-year $50 million capital included the construction of a new upgrade plan commenced in 2006–07 Fewer websites, greater harbourside park at Ballast Point, and has already seen the completion accessibility installing facade lighting in The Rocks of the Bayside Terrace, the Bayside Following a 12-month project to and maintaining CCTV in The Rocks Gallery and an upgrade to exhibition consolidate the Authority’s portfolio of and Darling Harbour. hall lighting. corporate, government, tourism and The Authority also maintains two During 2008–09, $1.15 million was educational websites, three new sites significant semi-commercial assets, allocated to planning, design and early went live in October 2008. The new the Chinese Garden of Friendship and works for the Parkside major upgrade sites provide easy to navigate Sydney Convention and Exhibition scheduled for 2009–11. The upgrade information sources for the Authority, Centre, which generate more than will create multi-functional spaces and The Rocks and Darling Harbour that $466 million each year for the NSW a seamless transition through the comply with the NSW Government economy. interior of the building. An additional Website Style Directive. $4.26 million was spent on replacing A decline in website hits occurred and upgrading furniture, fixtures and during the consolidation process (see equipment. table on page 25). The Authority’s server was also replaced in June 2009 to significantly increase web speed.

Visitation to Sydney Convention and Exhibition Centre

Events Delegates Visitors 2 0 0 8 2009 2008 2009

International 23 26 22,812 21,668

National 524 538 1,026,555 837,145

Total 547 564 1,049,367 858,813 *The number of people movements recorded. See page 29 for details on how figures are calculated.

24 Sydney Harbour Foreshore Authority Annual Report 2008–09 Continuous improvement for In 2008–09 the Authority consulted Students and teachers demonstrated people with disabilities and collaborated with the Land Council traditional building techniques learnt on all Aboriginal initiatives and though a canoe building program The Authority’s Plan for People with Aboriginal aspects of two key projects. supported by the Authority, the NSW Disabilities focuses on improving Department of Primary Industries, NSW readily identifiable physical access The Land Council was invited to take Parks and Wildlife Service, the Tribal issues, improving staff training, part in the Darling Walk redevelopment Warrior Association and the integrating Disability Discrimination project (see page 18 for more details) Metropolitan Local Aboriginal Land Act (DDA) compliance and formalising and participated fully in an Aboriginal Council in 2007. complaints procedures. cultural heritage assessment in July 2008. As part of this assessment, the Projects completed or in progress Authority also consulted the Aboriginal The Rocks Dreaming during the year included: Heritage Information Management The Authority worked closely with • installing accessible toilets System of the Department of Tourism NSW during 2008–09 to associated with the Workplace6 Environment and Climate Change. promote one of Sydney Learning development at Darling Island in Adventures’ Indigenous programs, The Land Council also provided Pyrmont to service the adjacent The Rocks Dreaming. historical information for the book, Metcalf Park A History of Sydney’s Darling Harbour The program was included in Tourism • upgrading The Rocks Mobility and the ‘Transformation’ exhibition; Australia’s National Indigenous Tourism Access Map, which is available at recorded a Welcome to Country for the Product Manual and the program www.therocks.com 2008 New Year’s Eve soundtrack; and partner, Dunghutti-Yuin Grandmother Margret Campbell, met with key • continuing to provide disability provided guidance on all Indigenous industry employees at a Tourism awareness and inclusive customer content at the Australia Day NSW new product workshop. service training for frontline staff Spectacular and Celebrate! event in May 2009. The Land Council’s Cultural • ensuring our corporate website Educational Officer, Allen Madden was Ongoing involvement meets accessibility standards. also interviewed for a short film and respect celebrating Darling Harbour’s 21st Where possible all Authority events Anniversary. are scheduled to commence with an Indigenous Acknowledgement of Country to initiatives Aboriginal tour guides recognise that the event is taking place For the first time in 2008–09 the in the Country of the traditional Principles of cooperation Authority carried out a targeted landowners. After signing a Principles of recruitment campaign to employ two In addition, whenever possible, a Cooperation agreement in March Aboriginal tour guides for Sydney senior representative from the 2008, the Authority and the Learning Adventures’ Indigenous Metropolitan Aboriginal Land Council Metropolitan Local Aboriginal Land programs. is invited to undertake a Welcome to Council met in July 2008 to establish Country ceremony. The Authority is ongoing procedures for consultation Bark canoe hits the road also committed to including Aboriginal on Aboriginal initiatives. An exhibition of traditional indigenous and Torres Strait Islander artists in bark canoes, built by students of event programs where possible. Alexandria Park Community School, An Events Cultural Policy which reflects was displayed at the Daring Harbour the society we live in and shows 21st anniversary event, Celebrate!, respect for people from culturally and in May 2009. linguistically diverse backgrounds is expected to be finalised in 2009.

Visits to the Authority’s websites

Websites 2006–07 2007–08 2008–09 Sydney Harbour 639,793 849,167 639,878 Foreshore Authority The Rocks 997,668 1,217,652 864,893

Darling Harbour 711,023 1,147,272 925,985

Total 2,348,484 3,214,091 2,430,756

*The number of people movements recorded. See page 29 for details on how figures are calculated.

Sydney Harbour Foreshore Authority Annual Report 2008–09 25 This included: Of the total number of requests Education • featuring the Authority’s heritage received, 442 were complaints relating to various matters, including busking, The Rocks Discovery Museum and sustainability initiatives with a focus on 88 George Street at the noise issues and the removal of The Rocks Discovery Museum brings New Zealand Institute of Quantity rubbish. The Authority responded the history of The Rocks, its people Surveyors Annual Conference in quickly and equitably, completing and their stories to life in four June 2008 maintenance requests in an average of permanent exhibitions. The free 2.6 days. • presenting a paper on planning museum attracted 90,495 people The Authority also used feedback in 2008–09 with visitors giving an in Pyrmont to the International Planning History Society in Chicago received during the year to improve average satisfaction score of service delivery in its precincts. 8.1 out of 10. in July 2008 With international tourists making up • delivering the 2008 Archaeology Reaching our target audience of Sydney course at the University an average of two thirds of museum The online customer privilege of Sydney visitors, the decrease in international programs, Rewards@TheRocks and arrivals to Sydney due to the economic • delivering a presentation on the Club Darling Harbour continued to crisis is reflected in the museum’s historical development of Circular grow, with more than 36,500 2008–09 visitation figures. Quay at Sydney Architecture members—an increase of 14.6 per A new school holiday program, HMS Festival in October 2008 cent on 2007–08. SMS technology has Discovery, opened in January 2009 to • presenting on sustainable been integrated into the programs to replace the highly successful Kids Dig. development at the Urban allow members to send discount Between January and June 2009, 580 Waterfront Conference in vouchers to their mobile phone. children aged four to 12 participated in Dubai in November 2008. The Authority has also established HMS Discovery—an interactive a presence in the social networking role-play experience simulating the media environment with profiles voyage of a supply ship from England Building for each precinct on Facebook to Australia in 1792. Parents rated the and Twitter. program highly with 99 per cent saying stakeholder they would recommend it to others. In Darling Harbour seasonal brand relationships campaigns included: During the year the museum’s • an Expect Endless Nights mini- reception space was upgraded and Excellence in customer service guide with food and beverage offers materials in the resource centre were The Authority responds efficiently aimed at 18–39 year olds in updated and expanded. A temporary and effectively to feedback from October and November 2008 exhibition, ‘A Rocky Slum?’, which tenants and visitors. During the year projects the work of photographer • a summer school holiday brochure a total of 11,219 reports, requests and Charles Bertie onto the museum’s complaints were captured in the • a 21st anniversary campaign whitewashed reception wall, was also Authority’s Customer Request including a 21 reasons booklet of opened in January 2009. Management System. This system is tenant offers, publication of the book A history of Sydney’s Darling Sharing our expertise linked to a dedicated Customer Service Request Line which operates Harbour and a children’s The Authority presented papers and 24 hours, seven days a week and photography competition. keynote speeches on archaeology, allows the Authority to identify key planning, sustainability and heritage at trends and issues within its precincts a number of national and international and respond accordingly. industry conferences during the year.

Participants in Authority educational programs

Program Number of people attending

90,495 The Rocks Discovery Museum 98,615

800* Kids Dig 2,294

580 HMS Discovery* N/A

*HMS Discovery replaced Kids Dig in January 2009 2007–08 2008–09

26 Sydney Harbour Foreshore Authority Annual Report 2008–09 Darling Harbour’s 21st anniversary was marked with a huge multicultural party, Celebrate!

Seasonal brand campaigns in Praise from industry peers Maximising global tourism The Rocks included: Two Authority-designed Avant Card The Authority secured more than • ‘the longest story’ press advertising postcards—one promoting Darling 110 scheduled appointments with key combining Authority and tenant Harbour’s children’s photography contacts through attendance at four events into imaginative itineraries competition and the other promoting inbound tourism tradeshows. As a • the creation of a monthly what’s on The Rocks Aroma Festival—were result, the Authority distributed more outdoor and online guide selected by independent advertising than 20,000 copies of Sydney Visitor agency judges as the national Avant Pass, The Rocks Map and Darling • two for one offers to encourage Card May 2009 and June 2009 Harbour Map; provided a subscription to Rewards@ postcards of the month respectively. familiarisation of Sydney Learning TheRocks (resulting in 2,300 Adventures’ The Rocks Dreaming voucher downloads and a 20 per Attracting local business program; and initiated contracting cent increase in program and events opportunities for new stakeholder membership as at June 2009) Despite the year heralding difficult products. • an eight page guide to The Rocks times in the business events sector, As a direct result of tradeshow distributed with The Sydney Morning the Authority continued to position participation, Australia’s largest Herald in June 2009 The Rocks and Darling Harbour as inbound Korean tour operator, Hana • quarterly distribution of 70,000 high value business and event Tour, committed to featuring Sydney copies of The Rocks Experience destinations. In February 2009, the Leaning Adventures’ Finding Your magazine to tenants, hotels, Authority exhibited at the Australian Feet program in their brochures and subscribers and via targeted Incentive Meetings and Events Expo offering it as a daily itinerary option. direct mail. alongside three Darling Harbour tenants. The Authority also produced a 16-page guide to convention, incentive and venue hire opportunities in both precincts.

Sydney Harbour Foreshore Authority Annual Report 2008–09 27 Christmas chair tree in The Rocks DECEMBER Outstanding The Rocks’ Christmas chair tree events Christmas in The Rocks was The Authority develops, manages and celebrated with a unique Christmas delivers a calendar of public events in chair tree which gained significant The Rocks and Darling Harbour each media coverage and raised $1,000 for year. These events are fully funded by the Starlight Children’s Foundation. the Authority and many have been The tree sculpture in The Rocks taking place annually for almost Square was made using wooden two decades. chairs provided by the public with the Authority donating $5 to the foundation JULY for every chair received. Coffee festival goes green Darling Harbour Christmas In addition to coffee, chocolate, tea More than 16,000 people* attended OCTOBER and spice, the 11th annual Aroma Darling Harbour’s annual Christmas Festival in The Rocks promoted Feel the rhythm of Fiesta concert and fireworks display. Visitors sustainability to more than 117,000 Darling Harbour’s 18th annual Latin also enjoyed carols by the tree with people* by composting coffee dance and music festival, Fiesta, some of Sydney’s best a cappella grounds and tea leaves, using brought together more than 70 free groups in the lead up to Christmas. GreenPower and providing recycling live performances plus dance classes, Welcoming in 2009 facilities. The record crowd—a 23.2 DJs and Latin-inspired food over the The New Year started with a bang in per cent increase on the previous October long weekend. Despite Darling Harbour with more than year—enjoyed more than 100 coffee inclement weather, the event attracted 200,000 people* enjoying free roasters, tea blenders, chocolatiers almost 290,000 people*—a 3 per cent entertainment and two themed and spice producers. increase on 2007. fireworks displays heralding the start of Darling Harbour’s 21st Anniversary. SEPTEMBER NOVEMBER Moon Festival returns to the Markets by Moonlight JANUARY Chinese Garden On Friday nights in November 64,000 Our nation’s day by the harbour The traditional Chinese Moon Festival people* attended The Rocks Markets On Australia Day, Rocksong brought was celebrated for the second time at by Moonlight enjoying free live 70 Australian singers and songwriters the Chinese Garden of Friendship in performances by Australian funk, soul from all genres of music to nine September. With the two initial events and pop bands, an open-air bar and outdoor stages in The Rocks. Despite selling out, an additional date was night markets. At this year’s event heavy rain later in the day, more than scheduled to meet demand and more crowds were drawn further into The 115,000 people* attended the event. than 1,000 people enjoyed lion and Rocks with the stage located in The dragon dancing, a sound and light Rocks Square, market stalls in Playfair More than 170,000 people* gathered show and food from the Golden Street and Jack Mundey Place and the in Darling Harbour for the annual Century restaurant. bar in Playfair Street. Australia Day Spectacular combining family entertainment, a harbour parade, an international food fair and Attendance at the Authority’s events an evening of pyrotechnics and music. 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 2006–07 2007–08 2008–09 *See page 29 for details on how figures are calculated.

28 Sydney Harbour Foreshore Authority Annual Report 2008–09 APRIL The celebrations continued throughout Darling Harbour Hoopla! May with Harbourlight—a live jet ski Supporting the show on Cockle Bay. Following the When the circus came to town over the popularity of Celebrate!, the first community Easter long weekend more than Saturday performance of Harbourlight The Authority provided approximately 185,000 people (see below for how saw visitation to the precinct increase $800,000 of in-kind support to visitors are counted) were entertained by 19 per cent compared to a non- community groups and charities by the world’s top circus acts on three event Saturday in May. through venue hire, banner promotions, outdoor stages in Darling Harbour. This production equipment and other year’s annual event also included new JUNE services during the year. The Authority ticketed evening and school holiday worked closely with community and shows in the big top. Show-stopping jazz and blues commercial groups to coordinate Over the June long weekend Sydney numerous events in The Rocks and voted with its feet to make the 19th Darling Harbour, including: Hoopla at Darling Harbour annual Darling Harbour Jazz and Blues • Millers Point Festival Festival one of the most successful yet, with more than 300,000 people (see • Chalk Urban Art Festival below for how visitors are counted) • Sydney Festival – iiNet Films Afloat turning out to catch world-class free live performances and the new ticketed • Sydney Harbour Week Festival Jazz Club. Visitation to the • Seniors Week 2009 festival was up 22 per cent on • Cultural festivals from around the last year. world including India, Greece, A tale of a ghostly convict ship Indonesia, Thailand, Nepal, An explosive new winter event lit up Malaysia, Korea, Brazil, Egypt The Rocks in June by re-creating the and Lebanon. burning of the convict ship the Three • Sydney International Boat Show Bees which sank in Sydney Cove in MAY 1814. In addition to the artistic re- • Australian International Motor Show The party of the year enactment, visitors were treated to • Chinese Chamber Music Festival floating lantern workshops, fire Darling Harbour’s 21st Anniversary was • Rider Spoke by Blast Theory. sculptures and haunting live music. marked with Celebrate!—a one-off The Authority also contributed multicultural event. More than 84,000 As one of the cornerstones of Events $738,000 through sponsorships, people (see below for how visitors are NSW’s inaugural Vivid Sydney festival, including: counted) enjoyed the free party which Fire Water attracted almost 90,000 brought together 200 cultural people (see below for how visitors are • $275,000 to the National Trust performers, 15 singers, 120 dancers counted) and significant media • $200,000 to Sydney Festival Limited and 11 bands. attention for its three night run. • $125,000 to the City of Sydney for New Year’s Eve fireworks. Monthly people movements in Darling Harbour and The Rocks

3.0 How visitors are counted 2.5 Electronic people counters are installed in key locations in Darling Harbour and The Rocks. The counters emit an infrared beam 2.0 and each time a pedestrian breaks the beam a people movement is registered. Calibration and expansion calculations are 1.5 applied to raw counts to ensure that final figures estimate total pedestrian flow. These figures include repeat visits made 1.0 by visitors, workers and residents. Darling Harbour recorded approximately 27.6 million people movements in 0.5 2008–09, a decrease of 2.4 per cent

People movements (millions) on 2007–08. The Rocks recorded approximately 13.3 0.0 million people movements in 2008–09, an increase of 0.5 per cent on 2007–08.

Darling Harbour The Rocks

Sydney Harbour Foreshore Authority Annual Report 2008–09 29 Achievements

Open spaces and gardens provide an escape – a bit of nature in a built-up environment. For people living in apartments nearby, Darling Harbour is like our backyard, where our children can run around and play and where we can relax and enjoy the harbour. There’s always something to see and do. – Lyndal Halstead, local resident

Caring for parks and gardens in The Rocks and Darling Harbour, and the Chinese Garden of Friendship, is about creating a tranquil space for workers, visitors to the city and local residents. Whether you have 15 minutes, an hour or a day, it’s a chance to get away from the hustle and bustle and enjoy the surroundings. – Joe Ficarra, Horticulturist

30 Sydney Harbour Foreshore Authority Annual Report 2008–09 Achievements

Organisational health Attract, retain and grow our highly competent people.

• Five successful applicants • Ten employees obtained a • Fifty-four mentors and undertook the National Diploma of Business from mentees participated in Accreditation Authority for Chifley Business School the mentoring program Translators and Interpreters Ltd See page 32 See page 32 (NAATI) preparation program • New internal communication • Thirty employees regularly See page 33 tools were introduced to participated in Authority- provide regular, reliable sponsored fitness activities information to employees See page 35 See page 32

NSW Government Challenges State Plan priorities • Reducing employee excess • S8 Increased customer satisfaction recreational leave balances. with government services • Implementing the Authority’s • F2 Increased employment and organisational realignment. community participation for people • Maintaining efficiency and managing with disabilities workloads following the NSW Mini- • P4 More people participating in Budget recruitment freeze. education and training throughout their life Future directions 2009–10 • Communicate the 2009–10 Authority strategic objectives Business Plan to engage employees • Be an employer of choice that in the process and the future of the attracts, retains and grows organisation competent and engaged staff to • Develop position descriptions for achieve the best results for our all roles in line with public sector customers and stakeholders capability framework by March 2010

Sydney Harbour Foreshore Authority Annual Report 2008–09 31 The second publication, Broadcast Delivering Employee Alert, is an email bulletin which is used to communicate important or urgent organisational development news announcements as necessary.

reforms and engagement Maximising potential Streamlined structure Continual learning with mentors The Authority began an organisation As at June 2009, the Authority had a The Authority’s ongoing internal review in November 2008 with a total of 221 permanent and temporary mentoring program helps staff to restructure taking effect in March employees. The Authority continued its maximise their leadership potential 2009. The review identified a need to focus on employee development, with and increase personal performance better align functions, to eliminate each spending an average of two days and career satisfaction. In 2008–09, duplication and inefficiencies, to in training during the year. a group of 54 mentors and mentees participated in the program. create more varied and rewarding jobs Ten employees obtained a Diploma and to improve career progression. of Business from Chifley Business Workplace safety The new structure will ensure that the School after completing a The Authority established a new OHS organisation can meet the challenges management development program. Consultative Committee in 2008 with of the future and continue to be a A series of staff recognition of prior representatives from across the leader in asset and place learning opportunities were provided organisation, including casual management and deliver to Authority tour guides at the Chinese employees. During the year all outstanding events. Garden of Friendship tea house. As Authority-owned precincts were at June 2009, two staff graduated with Planning assessment transfer subject to an OHS assessment at least a Certificate III in Tourism (Guiding), once, with new initiatives such as the As part of widespread reforms to the two were awarded a Certificate IV educational program HMS Discovery NSW planning portfolio, the Authority’s in Tourism (Guiding), one gained a at The Rocks Discovery Museum planning functions and planning staff Certificate III in Hospitality and subject to rigorous assessment by were transferred to the Department of another one gained a Certificate IV committee members. Planning in November 2008. All in Hospitality. development applications previously In 2008–09 three home-based Two employees were also selected to worksite assessments were carried out assessed by the Authority are now attend the Committee for Economic assessed by the Department of to facilitate employees with a genuine Development of Australia NSW 2009 need and approval to work from home. Planning or the City of Sydney, Copland Program which seeks to including applications associated with develop emerging leaders. The Authority conducted its second trading out for major events. annual Safety Week in October 2008. Other employee training and Activities included: Reducing excess leave development programs included: • launch of the OHS E-learning In November 2008, the Crown • writing and public relations skills package Employees (Public Service Conditions • speed reading of Employment) Reviewed Award 2006 • workplace inspections by the OHS was amended with a requirement for • disability awareness and inclusive Committee all employees to reduce their customer service workshops • daily release of safety tips and recreation leave to less than eight • online compliance modules fact sheets. weeks by January 2010. including OHS and fraud In line with this, the Authority awareness Internship opportunities commenced a program to develop • online training for Microsoft Office The Authority hosted three student leave plans for employees with excess programs. interns during the year to raise recreation leave. Access to flex leave is awareness of the diverse career now restricted for any employees with Communicating internally opportunities within the Authority and support public education. a balance of more than eight weeks Two new internal communication tools recreation leave without an approved were introduced in February 2009 to Interns from The University of Sydney, leave plan. provide employees with relevant, The University of NSW and the Hong timely and accurate information by Kong Baptist University were placed email. Employees are encouraged to in the Authority’s marketing and contribute to the weekly e-newsletter finance teams. New Horizons which includes organisational updates, employee achievements, social club announcements, human resources and information technology news.

32 Sydney Harbour Foreshore Authority Annual Report 2008–09 NSW Government employment Ethnic affairs Human resources benchmarks for employees from EEO The Authority continued to develop minority groups. The data also informs Equal opportunity for all and implement initiatives to cater to planning and development of EEO people from culturally and linguistically In 2008–09 the Authority continued to initiatives. Trends in the representation diverse (CALD) backgrounds. The promote equal employment of EEO groups among Authority organisation’s workforce also reflects opportunity (EEO) through a range of employees are shown in the the social diversity of the general projects including: table below. workforce and significantly, this • releasing a five-year EEO During 2008–09 the Authority reached diversity is represented at all levels. Management Plan a number of EEO goals including the During 2008–09 five successful • improving website accessibility for employment of two Aboriginal tour applicants undertook the National customers from various EEO groups guides and the completion of online Accreditation Authority for Translators data collection for EEO purposes. • providing disability awareness and Interpreters Ltd (NAATI) training and undertaking a disability In 2009–10 the Authority will preparation program. The program audit to maintain and improve incorporate cultural awareness recognises employees who speak a access to the Authority’s services into all position descriptions when second language and assists the and precincts. implementing the NSW Public Sector Authority in improving customer Capability Framework and add equity service for international visitors. Equity principles also continue to be to the online compliance training for Employees at the Sydney Visitor promoted through the Authority’s new employees Code of Conduct, induction sessions Centres speak 16 languages other for new employees and ethics training. than English and are encouraged to The Authority collects EEO data use their language skills to improve regularly for the Department of Premier communication with international and and Cabinet’s workforce profile, which local customers whose first language measures performance in meeting is not English.

Trends in the representation of EEO groups as at 30 June 2009

People from People Aboriginal racial, People 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 related was not people minority adjustment English groups

Permanent 159 48% 89 70 1 38 22 1 0 full-time

Permanent 19 6% 4 15 0 4 0 0 0 part-time

Temporary 20 8% 10 10 0 6 3 0 0 full-time

Temporary 0 0% 0 0 0 2 0 0 0 part-time

Casual 97 28% 55 42 3 32 14 0 0

SES 5 2% 2 3 0 1 0 0 0

Board 5 2% 3 2 0 0 0 0 0 members

LWOP 2 1% 1 1 0 0 0 0 0

Senior 17 5% 14 3 0 8 0 0 0 officers

Total 324 100% 178 146 4 91 39 1 0

Percentage - - 55% 45% 1% 28% 12% 0.30% 0%

Sydney Harbour Foreshore Authority Annual Report 2008–09 33 Employee numbers by category

30 June 2009 30 June 2008 30 June 2007

People People People whose Salary scale Total whose first Total whose first Total first number of Women language number of Women language number of Women language employees was not employees was not employees was not English English English

Salaries below clerical officer 0 0 0 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 0 0 0 3 3 0 8 5 4 minimum clerk grade 1 rate or equivalent

Grade 1–2 or 35 12 5 39 17 7 42 19 14 equivalent

Grade 3–5 or 28 20 7 40 24 8 41 27 10 equivalent

Grade 6–9 or 69 44 5 65 42 10 64 37 17 equivalent

Grade 10–12 or 50 17 5 54 18 11 52 20 28 equivalent

Above Grade 12 or 45 12 3 47 15 4 40 13 7 equivalent

Total number of equivalent employees in 227 105 25 248 119 40 247 121 80 established positions*

* Figures do not include casual employees. Part-time employees are counted individually.

Number of Senior Executive Service (SES) positions

2008–09 2007–08 2006–07 2005–06 2004–05 2003–04

Number of SES positions 4 5 5 5 5 5 Number filled by females 3 3 3 3 3 2 Positions at SES Level 4 3 4 4 4 4 4 Positions at SES Level 7* 1 1 1 1 1 1 * This position was held by Mr Robert Domm, CEO of Sydney Harbour Foreshore Authority, on a total remuneration package of $357,300 per annum. A performance bonus was not paid and Mr Domm met the performance criteria outlined in his performance agreement.

34 Sydney Harbour Foreshore Authority Annual Report 2008–09 Women in the workplace Ethics training for all employees Employee fundraising The Authority is committed to the NSW continued quarterly throughout The Authority’s employees participated Government Action Plan for Women 2008–09 with all new employees in a number of social activities to raise and the Government’s efforts to completing introductory online training money for various charities, including promote workplaces that are and attending an in-house ethics Australia’s Biggest Morning Tea for the equitable, safe and responsive to all training session within three months Cancer Council, Walk to Work day, aspects of women’s lives. of commencing employment. Healthy Breakfast Day and the Pink Key activities undertaken in 2008–09 Ribbon Breakfast. Employees also include: pledged more than $2,000 to the Workplace Salvation Army’s Victorian Bushfire • offering part-time and work from Appeal in February 2009. home opportunities to women initiatives The Authority also arranges quarterly returning from maternity or Enjoying a healthy lifestyle parental leave blood donation sessions for The Authority’s Healthy Lifestyle employees in conjunction with the • maintaining the female ratio on the Program aims to improve employee Red Cross. executive and senior management retention and performance by team reducing stress and the risk of lifestyle CEO Guiding Principles Award • providing a maternity leave kit to diseases. Employees have access to The monthly CEO’s Guiding Principles assist women during pregnancy, discounted gym membership and Awards were continued this year to maternity leave and when returning fitness classes, lunchtime competitive promote a culture of excellence in to work. sport, flu vaccinations and health service delivery, leadership and assessments and can use the innovation. In March 2009 a new Industrial relations Authority’s fleet bicycles. sustainability category was introduced The Joint Consultative Committee During 2008–09, 38 employees chose to align with the Authority’s continued to be a productive to receive the free flu vaccination while environmental policies. mechanism in discussing and up to 30 employees participated in disseminating information. There were weekly Authority-sponsored activities no industrial disputes lodged by the such as yoga and group fitness. NSW Public Service Association with Employees also participated in the the Industrial Relations Commission of 2009 NSW Corporate Games in March NSW. There was no working time lost with representatives in triathlon, due to industrial disputes during ten-pin bowling, basketball, soccer, the year. golf and snooker. There were no exceptional movements in wages, salaries or allowances, Star Awards 2008 except for increases awarded across The Authority’s fifth annual Star the public sector by the Industrial Awards were held in 2008 to recognise Relations Commission of NSW. and celebrate the outstanding contribution of employees. More than Code of conduct 185 employees attended the awards The Authority’s Code of Conduct night with staff recognised in embodies the public sector values of categories such as customer service, integrity, diligence, economy, leadership, sustainability, innovation efficiency and accountability. The and precinct promotion. The Employee code incorporates the principles of of the Year award went to operations ethical or responsible decision-making manager Stan Berriman and the Team and respect for the law, government of the Year award was won by Planning and community. The code also offers Assessment. guidance in situations where a person may be unsure of the appropriate course of action. Matters dealt with in the code include conflicts of interest, copyright and licenses, internal information and information on clients, secondary employment, political participation, corrupt conduct and reporting breaches of the code.

Sydney Harbour Foreshore Authority Annual Report 2008–09 35 When you walk in a city anywhere in the world and you see the care and maintenance of its artistic and cultural symbols, it gives you much pleasure. You feel great respect not only for the traditions, but also for the devoted people who Restoring 107–109 George contribute to their restoration. Street is about safeguarding – Ruben Varsi, Stonemason our heritage for future generations. It’s exciting to reinstate lost elements like this carving, which has been missing for 60 years. We are working with the stonemasons of NSW Public Works, who have supported this traditional craft for many years. – Lucy Burke-Smith, Heritage Officer

36 Sydney Harbour Foreshore Authority Annual Report 2008–09 Corporate governance Lead the organisation towards excellence in sustainability, innovation and business growth.

• Appointment of Chief • Improved processes to prevent • Strengthened internal Executive Officer fraud and increase fraud procurement processes by See page 38 awareness among employees centralising all procurement • Enhanced risk management See page 39 activities with a value of processes $30,000 or more See page 38 See page 41

NSW Government State Challenges Future directions Plan priorities • Responding to changed • Consolidate the Authority’s role as • S8 Increased customer satisfaction Government priorities and the a future place manager for with government services 2008–09 Mini-Budget. Barangaroo • Overseeing the transfer of • Continue to manage the Authority strategic actions responsibility for the design and consultation process to determine • Demonstrate leadership in social construction of Barangaroo to the future land uses for Bays Precinct and environmental sustainability new Barangaroo Delivery Authority. • Integrate innovation into continuous improvement to meet changing business needs • Create and maintain commercially, socially and environmentally sustainable precincts

This is an artist’s impression of Barangaroo. The site will be designed in detail as the project progresses.

Sydney Harbour Foreshore Authority Annual Report 2008–09 37 Role of the Board Corporate Governance • ensuring an effective Director Sydney Harbour Foreshore Authority’s Committee induction program is in place for new Board members and making Board, which meets monthly, is A Corporate Governance Committee recommendations to the Board on comprised of independent non- has been established as a standing appropriate Director education executive members and the Chief committee of Sydney Harbour opportunities Executive Officer, appointed in Foreshore Authority’s Board. The accordance with the Sydney Harbour committee assists the Board to • identifying and specifying the roles Foreshore Authority Act. The Board achieve strategic leadership, good of management and the Board. oversees the Authority’s policies, governance and sustainability in management and performance, sets order to enhance the Authority’s Audit and Risk Management strategic direction for the organisation performance. Committee and monitors compliance with The committee also establishes The Authority’s Audit and Risk statutory requirements. The Board mechanisms and policies for achieving Management Committee manages the periodically seeks independent accountability of the Board and organisation’s risk exposure. The assessment of its own performance management. committee’s objective is to provide and monitors organisational independent assurance and performance against strategic Committee members at assistance to the Board on the objectives. This is achieved both 30 June 2009 were: Authority’s risk and fraud through written reports from • Clive Craven, Chair management, control and compliance management and direct interaction framework, and its external with senior management at Board • Gabrielle Trainor accountability requirements. and committee meetings. • Robert Domm, Committee members at 30 June The Board’s role in managing risk is Chief Executive Officer. 2009 were: critical to the success of the The Corporate Governance Committee organisation. The Board must approve is responsible for: • Bonnie Boezeman, Chair all major decisions, with detailed • establishing and maintaining a • Clive Craven financial feasibility studies required for Corporate Governance Manual every major project proposal. Where • Jim Mitchell.** necessary, the Board seeks • reviewing the Annual Plan of independent professional advice to Strategic Discussions to be assist in its decision making. The undertaken by the Board proportion of time spent by the Board • reviewing the codes of conduct for Proportion of time spent on various Board matters on various matters is shown in the the Authority and for the Board to chart opposite. provide an ethical framework for The Code of Conduct for Board the organisation and to address 5 1 Members prescribes procedures for procedures for reporting any illegal disclosing and dealing with conflicts or unethical behaviour 4 2 of interest. Each Board member is kept • recommending to the Board an up-to-date with organisational appropriate performance review developments, structure and the and evaluation process for the Authority’s policies. CEO, the Board and its members The Chief Executive Officer is and making recommendations regarding identified skills gaps responsible for the day-to-day 3 management of the Authority in • reviewing the Authority’s accordance with specific policies and sustainability performance general direction of the Board. Activity Time • conducting the cyclical review of 1 Board process 5% Robert Domm was appointed as Chief appropriate Board policies and Executive Officer on 21 July 2008, making recommendations to the 2 Strategy and policy 24% following the resignation of Robert Board on amendments to policies Lang. Board members’ details are 3 Corporate governance 32% shown on page 11. • assisting the Chairman in 4 Management and establishing Board and Executive business performance 31% succession plans 5 Financial reports 8%

**Jim Mitchell is a former NSW Deputy Auditor-General and sits on the Audit and Risk Management Committee to provide public sector governance and statutory account expertise. He is not a Board member. 38 Sydney Harbour Foreshore Authority Annual Report 2008–09 The Audit and Risk Management Key initiatives implemented during Fraud prevention Committee is responsible for: 2008–09 include: The Authority has developed online • reviewing the Executive’s risk • consolidating the Authority’s fraud awareness training as part of its management framework and websites fraud prevention program. The Authority’s fraud awareness procedures for managing the • completing an online stall booking performance is independently Authority’s financial and business system for The Rocks Markets and assessed by Deloitte Touche risks, including fraud The Rocks Farmers’ Market Tohmatsu against criteria established • ensuring that the Authority • installing new high-powered by the NSW Auditor General. In maintains an effective control web servers 2008–09 the Authority again showed framework for assets, liabilities, an improvement in performance on revenues and expenditures • launching a new ICT service desk previous years, with Deloitte • reviewing the annual financial • archiving 700 boxes of files at the recommending that the Authority statements and advising the Board NSW Government Repository continue its work in targeting employee on actions taken in response to • scanning all incoming invoices for awareness of fraud and ethical audit recommendations and email to individual proponents. behaviour. adjustments • ensuring that the Executive Overseas travel Privacy Management Plan considers legal and compliance The Authority’s Chairman, Michael The Authority has developed a Privacy risks as part of the Authority’s risk Collins, attended the Advance Global Management Plan in response to the assessment and management Australians Asia 50 Summit in Privacy and Personal Information arrangements Shanghai from 27 March to 1 April Protection Act 1998. The Act aims to • acting as a forum for 2009 as part of the NSW Government protect the privacy of individuals from communication on risk and audit delegation. Mr Collins delivered a inappropriate collection, storage, use matters between the Board, senior presentation on Barangaroo to an and disclosure of personal information management and internal and international audience of business by NSW public sector agencies. The external auditors. leaders. Privacy Management Plan is available on the Authority’s website. Further information about risk The Authority’s design studio management and insurance is on manager, Michael Donohue, travelled The plan is based on 12 information page 40. to Singapore from 3 to 7 November principles that establish standards for 2008 as part of production of the using personal information in an open Knowledge management hardback book A history of Sydney’s and accountable manner. The Darling Harbour. information protection principles apply As part of the Authority’s to all employees, consultants and organisational restructure the records contractors engaged by the Authority. team was incorporated into the Information Communication and There were no privacy complaints Technology (ICT) department. received during 2008–09. Knowledge management now plays a key role in the ICT security policy and ICT strategic planning.

Board and committee meeting attendance during 2008–09

Corporate Governance Audit and Risk Board meetings Board members Committee meetings Committee meetings Possible Attended Possible Attended Possible Attended Robert Domm 14 14 3 3 n/a n/a Bonnie Boezeman 14 14 n/a n/a 4 4 Gabrielle Trainor 14 12 3 3 n/a n/a Michael Collins 14 14 n/a n/a n/a n/a Chris Johnson* 12 9 n/a n/a n/a n/a Tom Gellibrand* 2 2 n/a n/a n/a n/a Clive Craven 14 14 3 3 4 4 Michael Gallagher 14 14 n/a n/a n/a n/a Jim Mitchell** n/a n/a n/a n/a 4 4

* Attended on behalf of Sam Haddad **Jim Mitchell is a former NSW Deputy Auditor-General and sits on the Audit and Risk Management Committee committee to provide public sector governance and statutory account expertise. He is not a Board member.

Sydney Harbour Foreshore Authority Annual Report 2008–09 39 02

The community is being consulted on the future of Bays Precinct which includes White Bay Power Station

Risk management The Authority faces risk relating to The Authority also maintains a and insurance failing to achieve key project program of internal audits to assess objectives, budgets and deadlines; the effectiveness of controls and Sydney Harbour Foreshore Authority’s failing to meet government standards, systems to mitigate risk. During ongoing risk management program laws and regulations; failing to achieve the year, the Authority achieved has been effective in managing the income or expenditure targets; an average assessment score of risk exposure of the Authority while unsatisfactory delivery of services to 3.3 out of 5 for its internal audits, contributing to organisational internal and external customers; and which were conducted by Deloitte objectives. damage to the organisation’s Touche Tohmatsu and the Internal Each year the Authority identifies reputation and brand. Audit Bureau. business risks which are documented Two forums, the Board Audit and Risk The Authority carries a comprehensive in its business plan. This year, the Management Committee and the range of insurance cover through the Authority revised its organisational- Executive Sustainability and Risk Treasury Managed Fund (TMF). This wide risk report, linking risks to the Committee, both convened four times insurance covers property, public Authority’s four key business in 2008–09 to address risk liability, directors’ insurance and other outcomes: business effectiveness, management. contingencies. stakeholder and customer satisfaction, organisational health and financial The work of individual employees is Unlike private sector insurance performance. An operational risk monitored through monthly feedback policies, the TMF has limited management plan is also developed sessions with managers. Individual exclusions. In particular, all properties and implemented as a key component and team risk management programs owned or managed by the Authority of major projects, events and activities. deal with information security, are covered for their replacement occupational health and safety, value. The Authority’s insurance business continuity planning, premium has reduced again this accounting, leave management year due to a favourable claims ratio and payroll. performance and the transfer of insurance liabilities for a selected number of new leases.

40 Sydney Harbour Foreshore Authority Annual Report 2008–09 The Authority carries no officers’ Progress in procurement Specialised consultants professional liability insurance, but all During the year, the Authority The Authority engages consultants public service officers are covered by continued to strengthen its internal for specialised work only where there a State indemnity against claims that procurement and tender management is no in-house expertise. do not involve negligence. processes and guidelines, culminating The Authority has used consultants in in the centralisation of all procurement Freedom of information specialist areas such as engineering, activities with a value of $30,000 or technology and business systems The Freedom of Information Act 1989 more. The Authority also continued analysis, planning, property, design enables a member of the public to to educate employees through and environment. access documents held by the procurement workshops covering Authority. During the year the Authority legislation, probity and processes. The Authority has also used processed 10 freedom of information consultants in specialist areas such Ten significant tender processes requests. Details of these requests are as sustainability, property, planning, were undertaken in 2008–09, resulting shown in the Appendix on page 106. design and risk management. in successful contracts including Four consultants whose fees were Credit card certification building activities within Sydney Convention and Exhibition Centre, more than $30,000 were engaged The Authority has a Corporate refurbishment works at the ASN Co. during the year as shown in the table Credit Card Policy, which complies Building and 39–43 Argyle Street in below. These fees totalled $280,738. with NSW Treasury’s Treasurer’s The Rocks and the upgrade of facade Seven consultants whose fees were Directions. Cardholders are required lighting on key buildings within up to $30,000 were also engaged, to observe the policy and complete The Rocks. with fees totalling $154,964. a reconciliation form each month which is authorised by the Authority’s The Authority continued to use its Chief Financial Officer or Chief established contractor panels to assist Executive Officer. with projects across varied disciplines including legal services, heritage The Authority currently has four credit building conservation and cards on issue with a combined limit refurbishment and arborist advisory of $11,000. services. The Authority also made extensive use of State Contracts Legislative changes Control Board (SCCB) whole-of- and departures government contracts. The awarded The Barangaroo Delivery Authority contracts and SCCB contracts have Act 2009 amended the foreshore area ensured that the Authority achieves the map in Schedule 1 of the Sydney best value for money on competitive Harbour Foreshore Authority Act 1998 commercial terms. to excise the area of land known as Barangaroo.

Consultants engaged during 2008–09 with fees over $30,000

Consultant name Description Total

CB Richard Ellis Pty Ltd (engaged on three separate occasions) Financial and divestment strategy $234,470

PricewaterhouseCoopers (engaged once) Financial and risk analysis $46,268

Total $280,738

Sydney Harbour Foreshore Authority Annual Report 2008–09 41 We chose The Rocks Markets because we heard it was the best in Sydney. The diverse range of products available adds greatly to a day out in The Rocks. We have an easy relationship with Cathy and the Authority’s stallholder booking system is the best we’ve used. – John Chaston, stallholder

The Rock Markets attracts visitors, creates job opportunities and showcases up and coming artisans and designers. It is a special place for both the community and stallholders because of its commercial benefits and charming character. It’s creative Sydney winding along a cobblestone laneway. – Cathy Levins, The Rocks Markets Place Manager

42 Sydney Harbour Foreshore Authority Annual Report 2008–09 Financial performance Maximise value from asset divestment, maximise return from assets and operations and reduce employee excess annual leave

• Completed the fourth year of a • Achieved a positive year end • Successfully transferred assets five-year capital investment plan result with precinct earnings and liabilities to the new for The Rocks and Darling before interest, tax, depreciation Barangaroo Delivery Authority Harbour and amortisation of $8.9 million See page 17 See page 16 and an overall surplus of $37.2 million See page 47

NSW Government State Challenges Future directions 2009–10 Plan priorities • Like many Sydney organisations, • Implement the asset divestment P1 Increased business investment the Authority has been affected strategy in line with the NSW by the global financial crisis, with Government’s timelines Authority strategic objectives managed assets and local • Maximise the Authority’s net • Consolidate and grow the business businesses suffering from the revenue streams decline in international tourism profitably to achieve financial • Reduce all recreational leave sustainability and reduced consumer spending. To counter the effects, the Authority balances to below 40 days • Revitalise and activate our precincts has maintained a strong capital by progressing the current five-year investment program, totalling capital plan on time, within budget $34 million. The Authority has and with agreed returns also closely managed property, employee and administration expenses to ensure that a healthy surplus result was achieved.

Trading entities explained Contents In March 2006, changes to the NSW Government’s employment legislation brought all State employees under employment by the NSW Government in the service of Sydney Harbour the Crown. To reflect this change, Sydney Harbour Foreshore Authority was split into three separate entities. Foreshore Authority 44 Employees (except casual employees) are employed by the NSW Government to Office of the Sydney work in the Office of the Sydney Harbour Foreshore Authority. Casual employees Harbour Foreshore Authority 80 are employed by the Sydney Harbour Foreshore Authority Casual Staff Division. For all activities apart from employment, the Authority trades and operates as Sydney Harbour Foreshore Sydney Harbour Foreshore Authority. Authority Casual Staff Division 96 The financials in this report are shown according to these three trading entities.

Sydney Harbour Foreshore Authority Annual Report 2008–09 43 Sydney Harbour Foreshore Authority Financial Statements For the year ended 30 June 2009

Statement by Members of the Board of Sydney Harbour Foreshore Authority on the adoption of the financial statements for the year ended 30 June 2009 Pursuant to Section 41C (1B) of the Public Finance and Audit Act 1983 and in accordance with a resolution of the members of the Board 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 and financial performance of Sydney Harbour Foreshore Authority as at 30 June 2009; and 2. The financial statements have been prepared in accordance with the Australian Accounting Standards and Interpretations and 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

8 October 2009 Sydney

44 Sydney Harbour Foreshore Authority Annual Report 2008–09 Sydney Harbour Foreshore Authority

Sydney Harbour Foreshore Authority Annual Report 2008–09 45 Sydney Harbour Foreshore Authority

46 Sydney Harbour Foreshore Authority Annual Report 2008–09 Sydney Harbour Foreshore Authority

START OF AUDITED FINANCIAL STATEMENTS INCOME STATEMENT For the year ended 30 June 2009

Consolidated Authority Notes 2009 2008 2009 2008 $’000 $’000 $’000 $’000

Revenue from continuing operations 3 146,517 145,856 146,517 145,856 Other revenue 4 67,101 54,546 67,101 54,546 Property related expenses 5 (70,643) (71,227) (70,643) (71,227) Employee related expenses 5 (29,220) (27,486) (33,791) (28,904) Depreciation and amortisation expense 5 (18,380) (17,656) (18,380) (17,656) Finance costs 5 (916) (863) (916) (863) Other expenses 5 (57,226) (36,615) (57,226) (36,615)

Surplus before income tax equivalent 37,233 46,555 32,662 45,137 Income tax equivalent 6 - (262) - (262) Surplus for the year after income tax equivalent 37,233 46,293 32,662 44,875

The above Income Statement is to be read in conjunction with the accompanying notes.

Sydney Harbour Foreshore Authority Annual Report 2008–09 47 Sydney Harbour Foreshore Authority Balance Sheet As at 30 June 2009

Consolidated Authority Notes 2009 2008 2009 2008 $’000 $’000 $’000 $’000

Assets Current assets Cash and cash equivalents 7 55,595 85,395 55,595 85,395 Trade and other receivables 8 7,679 13,846 7,679 13,846 Inventories 9 934 963 934 963 Total current assets 64,208 100,204 64,208 100,204

Non-current assets Trade and other receivables 8 38 38 38 38 Investment property 10 597,755 515,902 597,755 515,902 Property, plant and equipment 11 617,092 1,019,424 617,092 1,019,424 Intangible assets 12 430 436 430 436 Total non-current assets 1,215,315 1,535,800 1,215,315 1,535,800 Total assets 1,279,523 1,636,004 1,279,523 1,636,004

Liabilities Current liabilities Trade and other payables 13 29,778 38,786 35,260 43,761 Prepaid lease revenue 14 5,164 5,129 5,164 5,129 Provisions 16 15,079 17,676 9,597 12,701 Other liabilities 18 3,190 3,003 3,190 3,003 Total current liabilities 53,211 64,594 53,211 64,594

Non-current liabilities Trade and other payables 13 - - 6,614 1,640 Prepaid lease revenue 14 424,389 425,955 424,389 425,955 Borrowings 15 10,000 10,000 10,000 10,000 Provisions 16 6,614 89,840 - 88,200 Other liabilities 18 911 100,107 911 100,107 Total non-current liabilities 441,914 625,902 441,914 625,902 Total liabilities 495,125 690,496 495,125 690,496 Net assets 784,398 945,508 784,398 945,508

Equity Accumulated funds 19(a) 742,154 709,517 742,154 709,517 Asset revaluation reserve 19(b) 42,244 235,991 42,244 235,991 Total equity 784,398 945,508 784,398 945,508

The above Balance Sheet is to be read in conjunction with the accompanying notes.

48 Sydney Harbour Foreshore Authority Annual Report 2008–09 Sydney Harbour Foreshore Authority STATEMENT OF RECOGNISED INCOME AND EXPENSE For the year ended 30 June 2009

Consolidated Authority Notes 2009 2008 2009 2008 $’000 $’000 $’000 $’000

Surplus/(deficit) for the year 37,233 46,293 32,662 44,875

Net increase/(decrease) in property, plant and equipment asset revaluation reserve 19(b) (55,109) 230,112 (55,109) 230,112 Superannuation actuarial gains/(losses) 17(b) (4,571) (1,418) - - Net income/(expense) recognised directly in equity (59,680) 228,694 (55,109) 230,112

Total recognised income and expense for the year (22,447) 274,987 (22,447) 274,987

Effect of change in accounting policy Surplus for the period as reported in 2008 44,875 Change of policy – actuarial loss recognised directly in equity 1,418 Restated surplus for the period 46,293

The above Statement of Recognised Income and Expense is to be read in conjunction with the accompanying notes.

Sydney Harbour Foreshore Authority Annual Report 2008–09 49 Sydney Harbour Foreshore Authority CASH FLOW STATEMENT For the year ended 30 June 2009

Consolidated Authority Notes 2009 2008 2009 2008 $’000 $’000 $’000 $’000

Cash flows from operating activities Receipts from customers 166,435 168,755 166,435 168,755 Payments to suppliers and employees (154,098) (138,131) (154,098) (138,131) Grants paid (125) (125) (125) (125) Interest and other finance costs paid 2,655 4,992 2,655 4,992 Income tax equivalent paid (261) (1,219) (261) (1,219)

Net cash flows from operating activities 24(b) 14,606 34,272 14,606 34,272

Cash flows from investing activities Payments for property, plant and equipment (23,237) (33,513) (23,237) (33,513) Proceeds from sales of property, plant and equipment - 33,530 - 33,530 Payments for investment property (10,837) (12,991) (10,837) (12,991) Payments for intangible assets (118) (137) (118) (137) Net cash flows from investing activities (34,192) (13,111) (34,192) (13,111)

Cash flows from financing activities Repayment of borrowings (5,793) (3,139) (5,793) (3,139) Security deposits and bonds 49 27 49 27 Forward deposits and retentions (1,470) (1,153) (1,470) (1,153) Contributions to New South Wales Government paid (3,000) (5,000) (3,000) (5,000) Net cash flows from financing activities (10,214) (9,265) (10,214) (9,265)

Net increase/(decrease) in cash and cash equivalents (29,800) 11,896 (29,800) 11,896

Cash and cash equivalents at the beginning of the financial year 85,395 73,499 85,395 73,499

Cash and cash equivalents at the end of the financial year 24(a) 55,595 85,395 55,595 85,395

The above Cash Flow Statement is to be read in conjunction with the accompanying notes.

50 Sydney Harbour Foreshore Authority Annual Report 2008–09 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

Note 1 – Reporting entity Sydney Harbour Foreshore Authority (the Authority), as a reporting entity, comprises all entities under its control: • Cooks Cove Development Corporation (CCDC) • Office of the Sydney Harbour Foreshore Authority (the Office) • Sydney Harbour Foreshore Authority Casual Staff Division (Casual Staff Division). This consolidated financial report for the year ended 30 June 2009 was authorised for issue by the Authority’s Board on 8 October 2009.

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 requirement 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 2009 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. The New South Wales Government’s Mini-Budget 2008/2009 included a proposal to divest commercial leases to the private sector by way of a 99 year lease. The proposed divestment, excluding the Darling Walk lease, is expected to be completed by September 2010. The members of the Board believe that the proposed divestment has not impacted the Authority’s financial position. 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. Intercompany transactions, balances and unrealised gains on transactions between entities are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted 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 measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances, rebates and amounts collected on behalf of third parties. Revenue is recognised for the major business activities as follows: (i) Sale of goods and services Revenue is recognised when the Authority 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 revenue 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 2008–09 51 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

d) Employee benefits (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 twelve 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 at 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 5.50% 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.

e) 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.

f) 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.

g) Insurance The Authority holds insurance policies 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.

h) Goods and services tax (GST) Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the Australian Taxation Office. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the Australian Taxation Office is included with other receivables or payables in the balance sheet. 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.

52 Sydney Harbour Foreshore Authority Annual Report 2008–09 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009 i) 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. j) Capitalisation threshholds 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. k) Revaluation of physical non-current assets Physical non-current assets are valued in accordance with the “Valuation of Physical Non-Current Assets at Fair Value” Policy and Guidelines Paper (TPP 07-1). This policy adopts fair value in accordance with AASB 116 Property, Plant and Equipment and AASB 140 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. However, land under a prepaid long-term lease, irrespective of whether upfront lease income was received, that continues to receive a rental stream is measured at fair value as investment property. Property, plant and equipment is measured on an existing use basis, where there are no feasible alternative uses in the existing natural, legal, financial and socio-political environment. However, in the limited circumstances where there are feasible alternative uses, assets are valued at their highest and best use. 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 three 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. The last revaluation was completed on 30 June 2009 and was based on an independent assessment. Non-specialised assets with short useful lives are measured at depreciated historical cost, as a surrogate for fair value. When revaluing non-current assets by reference to current prices for assets newer than those being revalued (adjusted to reflect the present condition of the assets), the gross amount and the related accumulated depreciation are separately restated. For other assets, any balances of accumulated depreciation at the revaluation date in respect of those assets are credited to the asset accounts to which they relate. The net asset accounts are then increased or decreased by the revaluation increments or decrements. Revaluation increments are credited directly to the asset revaluation reserve, except that, to the extent that an increment reverses a revaluation decrement in respect of that class of asset previously recognised as an expense in the surplus/deficit, the increment is recognised immediately as revenue in the surplus/deficit. Revaluation decrements are recognised immediately as expenses in the surplus/deficit, except that, to the extent that a credit balance exists in the asset revaluation reserve in respect of the same class of assets, they are debited directly to the asset revaluation reserve. As a not-for-profit entity, revaluation increments and decrements are offset against one another within a class of non-current assets, but not otherwise. Where an asset that has previously been revalued is disposed of, any balance remaining in the asset revaluation reserve in respect of that asset is transferred to accumulated funds. l) 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. m) 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 by 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.

Sydney Harbour Foreshore Authority Annual Report 2008–09 53 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

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 2008–09 and 2007–08: buildings and improvements 2.5–20% plant and equipment 2.5–20% Motor vehicles 10–20% Furniture and fittings 10–20% iT equipment 33%

n) 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 are satisfied.

o) 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.

p) 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.

q) 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, fit-out 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.

r) 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 revenue or other expenses.

s) 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 a period of three 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.

54 Sydney Harbour Foreshore Authority Annual Report 2008–09 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009 t) 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. Collectability 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. The amount of the impairment loss is recognised in the income statement within other expenses. When a trade receivable for which an impairment allowance had been recognised becomes uncollectible in a subsequent period, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against other expenses in the income statement. u) Inventories 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. v) Trade and other 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. w) 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. x) 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; and • 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. y) 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. z) Change in accounting policy When the presentation or classification of items in the financial report is amended, comparative amounts are reclassified unless the reclassification is impracticable. When comparative amounts are reclassified, the Authority discloses: (a) the nature of the reclassification (b) the amount of each item or class of items that is reclassified (c) the reason for the reclassification.

Sydney Harbour Foreshore Authority Annual Report 2008–09 55 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

According with NSW Treasury policy, the Authority has changed its policy on the recognition of superannuation actuarial gains and losses. Such actuarial gains and losses are now recognised outside of profit or loss in the ‘statement of recognised income and expense’.P reviously, actuarial gains and losses were recognised through profit or loss. Both options are permissible under AASB 119 Employee Benefits. The change in policy has been adopted on the basis that recognition outside profit or loss provides reliable and more relevant information as it better reflects the nature of actuarial gains and losses. This is because actuarial gains/losses are re-measurements, based on assumptions that do not necessarily reflect the ultimate cost of providing superannuation. Recognition outside profit or loss also harmonises better with the Government Finance Statistics / GAAP comprehensive income presentation for the whole of government and general government sector, required under AASB 1049 Whole of Government and General Government Sector Financial Reporting. A comprehensive income presentation will also be available at the entity level from 2009/10 under AASB 101 Presentation of Financial Statements. The change in accounting policy increases 2009 ‘surplus for the year’ from $32.662 million to $37.233 million (2008: from $44.875 million to $46.293 million), by excluding from surplus the superannuation actuarial loss line item (2009: $4.571 million, 2008: $1.418 million). This item is now recognised in the ‘statement of recognised income and expense’ rather than the ‘income statement’.

aa) New Australian Accounting Standards issues Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2009 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 127 Consolidated and Separate Financial Statements (1 July 2009) • AASB 2008-3 Amendments to Australian Accounting Standards arising from AASB 3 and AASB 127 [AASBs 1, 2, 4, 5, 7, 101, 107, 112, 114, 116, 121, 128, 131, 132, 133, 134, 136, 137, 138 & 139 and Interpretations 9 & 107] (1 July 2009) • AASB 8 Operating Segments (1 January 2009) • AASB 2007-3 Amendments to Australian Accounting Standards arising from AASB 8 [AASB 5, AASB 6, AASB 102, AASB 107, AASB 119, AASB 127, AASB 134, AASB 136, AASB 1023 & AASB 1038] (1 January 2009) • AASB 101 Presentation of Financial Statements (1 January 2009) • AASB 2007-8 Amendments to Australian Accounting Standards arising from AASB 101 (1 January 2009) • AASB 2007-10 Further Amendments to Australian Accounting Standards arising from AASB 101 (1 January 2009) • AASB 123 Borrowing Costs (1 January 2009) • AASB 2007-6 Amendments to Australian Accounting Standards arising from AASB 123 [AASB 1, AASB 101, AASB 107, AASB 111, AASB 116 & AASB 138 and Interpretations 1 & 12] (1 January 2009) • AASB 1039 Concise Financial Reports (1 January 2009) • AASB 2008-1 Amendments to Australian Accounting Standard - Share Based Payments: Vesting Conditions and Cancellations [AASB 2] (1 January 2009) • AASB 2008-2 Amendments to Australian Accounting Standard - Puttable Financial Instruments and Obligations arising on Liquidation [AASB 7, AASB 101, AASB 132, AASB 139 & Interpretation 2] (1 January 2009) • AASB 2008-5 Amendments to Australian Accounting Standards arising from the Annual Improvements Project [AASB 5, 7, 101, 102, 107, 108, 110, 116, 118, 119, 120, 123, 127, 128, 129, 131, 132, 134, 136, 138, 139, 140, 141, 1023 & 1038] (1 January 2009) • AASB 2008-6 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project [AASB 1 & AASB 5] (1 July 2009) • AASB 2008-7 Amendments to Australian Accounting Standards – Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate [AASB 1, AASB 118, AASB 121, AASB 127 & AASB 136] (1 January 2009) • AASB 2008-8 Amendments to Australian Accounting Standards - Eligible Hedged Items [AASB 139] (1 July 2009) • AASB 2008-9 Amendments to AASB 1049 for Consistency with AASB 101 (1 January 2009) • AASB 2008-11 Amendments to Australian Accounting Standard – Business Combinations Among Not-for-Profit Entities [AASB 3] (1 July 2009) • AASB 2009-1 Amendments to Australian Accounting Standards – Borrowing Costs of Not-for-Profit Public Sector Entities [AASB 1, AASB 111 & AASB 123] (Ending 30 April 2009) • AASB 2009-2 Amendments to Australian Accounting Standards – Improving Disclosures about Financial Instruments [AASB 4, AASB 7, AASB 1023 & AASB 1038] (Ending 30 April 2009) • Interpretation 15 Agreements for the Construction of Real Estate (1 January 2009) • Interpretation 16 Hedges of a Net Investment in a Foreign Operation (1 October 2008) • Interpretation 17 Distributions of Non-cash Assets to Owners (1 July 2009) • Interpretation 18 Transfers of Assets from Customers (Ending 1 July 2009) It is considered that the impact of these new Standards and Interpretations in future periods, will have no material impact on the financial statements of the Authority.

56 Sydney Harbour Foreshore Authority Annual Report 2008–09 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

Consolidated Authority 2009 2008 2009 2008 $’000 $’000 $’000 $’000

Note 3 – Revenue from continuing operations Sydney Convention and Exhibition Centre revenue 64,113 68,476 64,113 68,476 Car parks revenue 18,033 14,095 18,033 14,095 Other major assets revenue 993 3,303 993 3,303 Operating lease revenue 48,049 47,558 48,049 47,558 Long term lease revenue 5,213 5,129 5,213 5,129 Development contributions 3,073 312 3,073 312 Sydney Visitor Centre sales 1,740 1,844 1,740 1,844 Marketing revenue 2,999 2,995 2,999 2,995 Other 2,304 2,144 2,304 2,144 146,517 145,856 146,517 145,856

Note 4 – Other revenue Fair value increment on investment properties (refer note 2(r)) 64,011 40,881 64,011 40,881 Gain/(loss) on disposal of property, plant and equipment (481) (212) (481) (212) Gain/(loss) on disposal of investment property - 7,930 - 7,930 Interest revenue (refer note 4(a)) 3,571 5,947 3,571 5,947 67,101 54,546 67,101 54,546 a) Interest revenue is made up of the following: Interest from cash at bank 89 143 89 143 Interest from TCorp cash facility 2,002 2,802 2,002 2,802 Interest from TCorp term deposits 1,480 3,002 1,480 3,002 3,571 5,947 3,571 5,947 Note 5 – Expenses Property related expenses: Sydney Convention and Exhibition Centre expenses 49,176 50,495 49,176 50,495 Car parks expenses 4,752 3,768 4,752 3,768 Other major assets expenses 373 356 373 356 Non-recoverable expenses 10,714 12,749 10,714 12,749 Other expenses 5,628 3,859 5,628 3,859 70,643 71,227 70,643 71,227 Employee related expenses: Directors’ fees 210 178 - - Salaries and wages 22,430 20,631 - - Defined contribution superannuation expense 1,884 1,780 - - Defined benefit superannuation expense/(revenue) 33 (19) - - Other employee related expenses 4,663 4,917 - - Personnel services expenses - - 33,791 28,904 29,220 27,487 33,791 28,904

Sydney Harbour Foreshore Authority Annual Report 2008–09 57 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

Consolidated Authority 2009 2008 2009 2008 $’000 $’000 $’000 $’000

Depreciation and amortisation expense: Depreciation of property, plant and equipment 16,995 15,762 16,995 15,762 Amortisation of leased assets 1,263 1,554 1,263 1,554 Amortisation of intangible assets 122 340 122 340 18,380 17,656 18,380 17,656 Finance costs: Interest on borrowing not at fair value through profit or loss 6,368 3,998 6,368 3,998 Government guarantee levy 81 70 81 70 Interest expense on leased assets 177 123 177 123 6,626 4,191 6,626 4,191 Amount capitalised (5,710) (3,328) (5,710) (3,328) Finance costs expensed 916 863 916 863

Other expenses: Administration 8,746 7,571 8,746 7,571 Barangaroo project costs (refer note 27) 21,882 2,032 21,882 2,032 Fair value decrement on property, plant & equipment (other) 3,296 - 3,296 - Sydney Visitor Centre sales – cost of goods sold 893 913 893 913 Insurance 593 570 593 570 Consultants 117 139 117 139 Auditor’s remuneration 198 219 198 219 Impairment expense on receivables 144 34 144 34 Marketing and advertising 8,476 8,479 8,476 8,479 Affordable housing levy - 1,214 - 1,214 Repairs and maintenance 12,756 15,319 12,756 15,319 Grants – City of Sydney 125 125 125 125 57,226 36,615 57,226 36,615

Reconciliation of total maintenance expense: Maintenance expense – contracted labour and other (refer note 5) 12,756 15,319 12,756 15,319 Employee related maintenance expenses 2,015 1,906 - - Personnel services relating to maintenance - - 2,015 1,906 Total maintenance expense 14,771 17,225 14,771 17,225

58 Sydney Harbour Foreshore Authority Annual Report 2008–09 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

Consolidated Authority 2009 2008 2009 2008 $’000 $’000 $’000 $’000

Note 6 – Income tax equivalent Surplus before income tax equivalent: 37,233 46,555 32,662 45,137 Prepaid revenue (4,879) (4,801) (4,879) (4,801) Fair value (increment)/decrement on investment property (64,011) (40,881) (64,011) (40,881) Notional taxable surplus/(loss) (31,657) 873 (36,228) (545) Income tax equivalent calculated at 30% of notional taxable surplus/(loss) - 262 - 262 - 262 - 262

Note 7 – Cash and cash equivalents Cash at bank and on hand 6,276 4,272 6,276 4,272 NSW Treasury Corporation – Hour Glass short-term cash facility 49,319 21,123 49,319 21,123 NSW Treasury Corporation – short-term deposits - 60,000 - 60,000 55,595 85,395 55,595 85,395

Note 8 – Trade and other receivables Current Rental debtors 1,574 914 1,574 914 Sundry debtors 1,620 2,904 1,620 2,904 Lease incentives 840 994 840 994 Goods and services tax recoverable 1,037 4,609 1,037 4,609 Prepayments and accrued revenue 2,780 4,505 2,780 4,505 7,851 13,926 7,851 13,926 Less: allowance for impairment of receivables (172) (80) (172) (80) 7,679 13,846 7,679 13,846 Non-current Security bond 38 38 38 38 38 38 38 38

Movement in the allowance for impairment of receivables Balance as at 1 July (80) (167) (80) (167) Amounts written off during the year 19 27 19 27 Amounts recovered during the year 61 140 61 140 Increase/(decrease) in allowance recognised in profit or loss (172) (80) (172) (80) Balance as at 30 June (172) (80) (172) (80)

Sydney Harbour Foreshore Authority Annual Report 2008–09 59 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

Consolidated Authority 2009 2008 2009 2008 $’000 $’000 $’000 $’000

Note 9 – Inventories Current Trading stock 934 963 934 963 934 963 934 963

Note 10 – Investment property Balance at the beginning of the financial year (at fair value) 515,902 487,630 515,902 487,630 Capitalised expenditure 14,337 12,991 14,337 12,991 Disposals - (25,600) - (25,600) Transfer from property, plant and equipment 3,800 - 3,800 - Transfer to property, plant and equipment (295) - (295) - Net gain/(loss) from fair value adjustments 64,011 40,881 64,011 40,881 Balance at the end of the financial year (at fair value) 597,755 515,902 597,755 515,902

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 Department of Lands, 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 and by the capitalisation of income approach.

Amounts recognised in profit and loss for investment properties Rental revenue 39,223 41,099 39,223 41,099 Direct operating expenses arising from investment properties that generate rental revenue (5,261) (4,065) (5,261) (4,065) Direct operating expenses arising from investment properties that did not generate rental revenue (176) (259) (176) (259) Total 33,786 36,775 33,786 36,775

60 Sydney Harbour Foreshore Authority Annual Report 2008–09 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

Consolidated Authority 2009 2008 2009 2008 $’000 $’000 $’000 $’000

Note 11 – Property, plant and equipment Land and buildings At gross value 568,660 943,634 568,660 943,634 Accumulated depreciation (19,705) (22,466) (19,705) (22,466) Carrying amount at fair value 548,955 921,168 548,955 921,168

Plant and equipment At gross value 89,175 92,432 89,175 92,432 Accumulated depreciation (41,678) (39,191) (41,678) (39,191) Carrying amount at fair value 47,497 53,241 47,497 53,241

Leasehold improvements At gross value 399 - 399 - Accumulated depreciation (80) - (80) - Carrying amount at fair value 319 - 319 - Leased assets At gross value 4,048 4,596 4,048 4,596 Accumulated amortisation (2,172) (2,036) (2,172) (2,036) Carrying amount at fair value 1,876 2,560 1,876 2,560 Art and artefacts At gross value 8,219 8,178 8,219 8,178 Accumulated depreciation - - - - Carrying amount at fair value 8,219 8,178 8,219 8,178

Work in progress 10,226 34,277 10,226 34,277

Total property, plant and equipment 617,092 1,019,424 617,092 1,019,424

At gross value 680,727 1,083,117 680,727 1,083,117 Accumulated depreciation and amortisation (63,635) (63,693) (63,635) (63,693) Total property, plant and equipment 617,092 1,019,424 617,092 1,019,424

Sydney Harbour Foreshore Authority Annual Report 2008–09 61 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

Consolidated Authority 2009 2009 $’000 $’000

a) 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 921,168 921,168 Additions 103,027 103,027 Net transfer from plant and equipment 6,308 6,308 Net transfer to investment properties (3,505) (3,505) Disposals (410,000) (410,000) Net revaluation decrement (58,405) (58,405) Depreciation expense (9,638) (9,638) Carrying amount as at 30 June 548,955 548,955 Plant and equipment Carrying amount as at 1 July 53,241 53,241 Additions 8,384 8,384 Disposals (541) (541) Transfer to intangibles (2) (2) Transfer to land and buildings (6,308) (6,308) Depreciation expense (7,277) (7,277) Carrying amount as at 30 June 47,497 47,497 Leasehold improvements Carrying amount as at 1 July - - Additions 399 399 Depreciation expense (80) (80) Carrying amount as at 30 June 319 319 Leased assets Carrying amount as at 1 July 2,560 2,560 Additions 609 609 Disposals (30) (30) Amortisation expense (1,263) (1,263) Carrying amount as at 30 June 1,876 1,876 Art and artefacts Carrying amount as at 1 July 8,178 8,178 Additions 41 41 Depreciation expense - - Carrying amount as at 30 June 8,219 8,219 Work in progress Opening balance 34,277 34,277 Additions 37,905 37,905 Capitalised and transferred to fixed assets (36,318) (36,318) Expensed (25,638) (25,638) 10,226 10,226 Property, plant and equipment 617,092 617,092

62 Sydney Harbour Foreshore Authority Annual Report 2008–09 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

Consolidated Authority 2008 2008 $’000 $’000

b) 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 505,733 505,733 Additions 194,349 194,349 Revaluation increment 230,112 230,112 Disposals - - Depreciation expense (9,026) (9,026) Carrying amount as at 30 June 921,168 921,168 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 Additions - - Depreciation expense - - Carrying amount as at 30 June 8,178 8,178 Work in progress Opening balance 24,347 21,157 Additions 52,257 52,257 Capitalised and transferred to fixed assets (35,622) (35,622) Expensed (6,705) (3,515) 34,277 34,277 Property, plant and equipment 1,019,424 1,019,424

Sydney Harbour Foreshore Authority Annual Report 2008–09 63 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

Consolidated Authority 2009 2008 2009 2008 $’000 $’000 $’000 $’000

Note 12 – Intangible assets Cost (gross carrying amount) 1,440 1,287 1,440 1,287 Less accumulated amortisation (1,010) (851) (1,010) (851) Carrying amount 430 436 430 436

Carrying amount at the beginning of the financial year 436 639 436 639 Additions 118 137 118 137 Disposal (4) - (4) - Transfer from plant and equipment 2 - 2 - Amortisation expense (122) (340) (122) (340) Carrying amount at the end of the financial year 430 436 430 436

Note 13 – Trade and other payables Current Trade creditors 10,453 14,146 10,453 14,146 Sundry creditors and accruals 9,644 13,437 9,644 13,437 Refundable security deposits and bonds 883 835 883 835 Income tax equivalent payable - 262 - 262 Forward deposits 8,352 9,822 8,352 9,822 Accrued interest 105 105 105 105 Payable – annual leave - - 2,526 2,644 Payable – long service leave - - 2,956 2,331 Payable – accrued salaries, wages and on-costs 341 179 341 179 29,778 38,786 35,260 43,761 Non-current Payable – long service leave - - 1,027 480 Payable – superannuation - - 5,587 1,160 - - 6,614 1,640 Note 14 – Prepaid lease revenue Current Prepaid lease revenue (refer note 2(c)) 5,164 5,129 5,164 5,129 5,164 5,129 5,164 5,129 Non-current Prepaid lease revenue (refer note 2(c)) 424,389 425,955 424,389 425,955 424,389 425,955 424,389 425,955

64 Sydney Harbour Foreshore Authority Annual Report 2008–09 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

Consolidated Authority 2009 2008 2009 2008 $’000 $’000 $’000 $’000

Note 15 – 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 2009 the maturity profile of borrowings was: Not later than one year (current liabilities) - - - - Later than one year but not later than five years 10,000 5,000 10,000 5,000 Later than five years - 5,000 - 5,000 10,000 10,000 10,000 10,000 Note 16 – Provisions Current Annual leave 2,526 2,644 - - Long service leave 2,956 2,331 - - 5,482 4,975 - -

Contributions to NSW Government - 3,000 - 3,000 Provision for Sharing Sydney Harbour Access Program 1,370 2,038 1,370 2,038 Provision for property development expenses 3,500 - 3,500 - Other 4,727 7,663 4,727 7,663 9,597 12,701 9,597 12,701

15,079 17,676 9,597 12,701 Non-current Long service leave 1,027 480 - - Superannuation (refer note 17) 5,587 1,160 - - Provision for property development expenses - 88,200 - 88,200 6,614 89,840 - 88,200

Sydney Harbour Foreshore Authority Annual Report 2008–09 65 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

Movements in provisions Movements in each class of provision during the financial year, other than employee benefits, are set out below: Contributions Sharing Property Other Total to NSW Sydney development Government Harbour expenses Access Program $’000 $’000 $’000 $’000 $’000

2009 Carrying amount at the beginning of financial year 3,000 2,038 88,200 7,663 100,901 Additional provisions recognised - 500 89,974 1,771 92,245 Amount used during the year (3,000) (1,168) - - (4,168) Amount written off / transferred to other NSW agency - - (174,674) (4,707) (179,381) Carrying amount at the end of the financial year - 1,370 3,500 4,727 9,597

Consolidated Authority 2009 2008 2009 2008 $’000 $’000 $’000 $’000

Aggregate employee benefits and related on-costs Short-term Annual leave 2,526 2,644 - - Long service leave 35 82 - - 2,561 2,726 - - Long-term Long service leave 3,948 2,729 - - Superannuation 5,587 1,160 - - 9,535 3,889 - -

Total 12,096 6,615 - -

In accordance with the NSW Treasury circular TC09/04 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.

66 Sydney Harbour Foreshore Authority Annual Report 2008–09 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

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 2009 and the funds held at the reserve account at Pillar Administration are: a) Defined Benefit Scheme as at 30 June 2009 (AASB 119 Employee Benefits)

SASS SANCS SSS Total Member numbers Contributors 8 11 3 22 Deferred benefits - - 5 5 Pensioners - - 15 15 Pensions fully commuted - - 1 1

$ ’000 $ ’000 $ ’000 $ ’000 Accrued liability (2,383) (553) (13,142) (16,078) Estimated reserve account balance 1,677 267 8,547 10,491 (706) (286) (4,595) (5,587)

Future Service Liability (580) (240) (249) (1,069) Surplus in excess of recovery available from schemes - - - - Net asset/(liability) (706) (286) (4,595) (5,587)

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)

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 2008–09 67 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

b) Defined Benefit Scheme (AAS 25 Financial Reporting by Superannuation Plans) Reconciliation of the assets and liabilities recognised in the balance sheet SASS SANCS SSS Total 30 June 2009 30 June 2009 30 June 2009 30 June 2009 $ ’000 $ ’000 $ ’000 $ ’000 Present value of defined benefit obligations (2,383) (553) (13,142) (16,078) Fair value of fund assets 1,677 267 8,547 10,491 (706) (286) (4,595) (5,587) Surplus in excess of recovery available from schemes - - - Unrecognised past service cost - - - - Net asset/(liability) disclosed in balance sheet as at 30 June 2009 (706) (286) (4,595) (5,587)

SASS SANCS SSS Total 30 June 2008 30 June 2008 30 June 2008 30 June 2008 $ ’000 $ ’000 $ ’000 $ ’000 Present value of defined benefit obligations (2,035) (447) (10,751) (13,233) Fair value of fund assets 1,696 279 10,098 12,073 (339) (168) (653) (1,160) 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) (1,160)

SASS SANCS SSS Total 30 June 2007 30 June 2007 30 June 2007 30 June 2007 $ ’000 $ ’000 $ ’000 $ ’000 Present value of defined benefit obligations (2,550) (486) (10,692) (13,728) Fair value of fund assets 2,164 334 11,294 13,792 (386) (152) 602 64 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 64

SASS SANCS SSS Total 30 June 2006 30 June 2006 30 June 2006 30 June 2006 $ ’000 $ ’000 $ ’000 $ ’000 Present value of defined benefit obligations (1,869) (453) (10,921) (13,243) Fair value of fund assets 1,727 351 10,158 12,236 (142) (102) (763) (1,007) Surplus in excess of recovery available from schemes - - - - Unrecognised past service cost - - - - Net asset/(liability) disclosed in balance sheet as at 30 June 2006 (142) (102) (763) (1,007)

SASS SANCS SSS Total 30 June 2005 30 June 2005 30 June 2005 30 June 2005 $ ’000 $ ’000 $ ’000 $ ’000 Present value of defined benefit obligations (1,842) (493) (11,586) (13,921) Fair value of fund assets 1,582 282 8,594 10,458 (260) (211) (2,992) (3,463) Surplus in excess of recovery available from schemes - - - - Unrecognised past service cost - - - - Net asset/(liability) disclosed in balance sheet as at 30 June 2005 (260) (211) (2,992) (3,463)

All Fund assets are invested by SAS Trustee Corporation at arm’s length through independent fund managers.

68 Sydney Harbour Foreshore Authority Annual Report 2008–09 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

Movement in net liability/asset recognised in balance sheet SASS SANCS SSS Total 30 June 2009 30 June 2009 30 June 2009 30 June 2009 $ ’000 $ ’000 $ ’000 $ ’000 Net asset/(liability) at start of year (339) (168) (653) (1,160) Net revenue/(expense) recognised in the income statement (69) (29) 65 (33) Actuarial gains/(losses) recognised in year (403) (119) (4,049) (4,571) Contributions 105 30 42 177

Net asset/(liability) disclosed in balance sheet as at 30 June 2009 (706) (286) (4,595) (5,587)

SASS SANCS SSS Total 30 June 2008 30 June 2008 30 June 2008 30 June 2008 $ ’000 $ ’000 $ ’000 $ ’000 Net asset/(liability) at start of year (386) (152) 602 64

Net revenue/(expense) recognised in the income statement (106) (31) 156 19

Actuarial gains/(losses) recognised in year 45 (13) (1,450) (1,418) Contributions 108 28 39 175 Net asset/(liability) disclosed in balance sheet as at 30 June 2008 (339) (168) (653) (1,160)

Total expense recognised in income statement

SASS SANCS SSS Total 30 June 2009 30 June 2009 30 June 2009 30 June 2009 $ ’000 $ ’000 $ ’000 $ ’000

Current service cost (76) (23) (49) (148) Interest cost (128) (28) (687) (843) Expected return on Fund assets 135 22 801 958 Actuarial (losses)/gains recognised in year - - - - Past service cost - - - - Movement in adjustment for limitation on net asset - - - - Curtailment or settlement (gain)/loss - - - - Revenue/(expense) recognised (69) (29) 65 (33)

SASS SANCS SSS Total 30 June 2008 30 June 2008 30 June 2008 30 June 2008 $ ’000 $ ’000 $ ’000 $ ’000 Current service cost (113) (28) (50) (191) Interest cost (159) (30) (668) (857) Expected return on Fund assets 166 27 874 1,067 Actuarial (losses)/gains recognised in year - - - - Past service cost - - - - Movement in adjustment for limitation on net asset - - - - Curtailment or settlement (gain)/loss - - - - Revenue/(expense) recognised (106) (31) 156 19

The superannuation expense recognised in the Income Statement is included in the line item ‘defined benefit superannuation expense/(revenue)’. Superannuation actuarial losses of $4.571 million (2008: $1.418 million) are separately identified in the ‘statement of recognised income and expense’.

Sydney Harbour Foreshore Authority Annual Report 2008–09 69 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

Amount recognised in the statement of recognised income and expense SASS SANCS SSS Total 30 June 2009 30 June 2009 30 June 2009 30 June 2009 $ ’000 $ ’000 $ ’000 $ ’000 Actuarial (gains)/losses 403 119 4,049 4,571

SASS SANCS SSS Total 30 June 2008 30 June 2008 30 June 2008 30 June 2008 $ ’000 $ ’000 $ ’000 $ ’000 Actuarial (gains)/losses (45) 13 1,450 1,418

The cumulative amount of actuarial losses recognised in the ‘statement of recognised income and expense’ since 1 July 2004 is $3.558 million. Before 1 July 2004 and the adoption of AEIFRS, it is not practical to determine the cumulative actuarial gains/losses as if the new policy had always been applied, given that the actuarial gains and losses were not separately identified and accumulated, and the superannuation expense was calculated on a different basis.

Expected rate of return on assets The expected return on assets assumption is determined by weighting the expected long-term return for each asset class by the target allocation of assets to each class. The returns used for each class are net of investment tax and investment fees.

Actual return on plan assets

SASS SANCS SSS Total 30 June 2009 30 June 2009 30 June 2009 30 June 2009 $ ’000 $ ’000 $ ’000 $ ’000 Actual return on plan assets (173) (31) (984) (1,188)

SASS SANCS SSS Total 30 June 2008 30 June 2008 30 June 2008 30 June 2008 $ ’000 $ ’000 $ ’000 $ ’000 Actual return on plan assets (126) (17) (703) (846)

70 Sydney Harbour Foreshore Authority Annual Report 2008–09 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

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 2009 2008 Discount rate at 30 June 5.59% p.a. 6.55% p.a. Expected return on plan assets at 30 June 8.13% p.a. 7.80% p.a. Expected salary increases 3.50% p.a. 3.50% p.a. 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 2009 2.30 2.50 0.93 2008 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 2009 2008

Expected rate of return on fund assets 7.80% 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 2008–09 71 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

Consolidated Authority 2009 2008 2009 2008 $’000 $’000 $’000 $’000

Note 18 – Other liabilities Current Finance lease liability 1,091 1,175 1,091 1,175 Revenue in advance 2,099 1,828 2,099 1,828 3,190 3,003 3,190 3,003 Non-current Finance lease liability 911 1,451 911 1,451 Revenue in advance - 1,779 - 1,779 Payable to other NSW agency - 96,877 - 96,877 911 100,107 911 100,107 Note 19 – Equity reconciliation a) Accumulated funds Balance at the beginning of the financial year 709,517 667,642 709,517 667,642 Surplus/(loss) for the year 37,233 46,293 32,662 44,875 Contributions to New South Wales Government - (3,000) - (3,000) Superannuation actuarial gains/(losses) (4,571) (1,418) - - Decrease in net assets from equity transfers (refer note 20) (138,663) - (138,663) - Transfer from asset revaluation reserve 138,638 - 138,638 - Balance at the end of the financial year 742,154 709,517 742,154 709,517

b) Asset revaluation reserve Balance at the beginning of financial year 235,991 5,879 235,991 5,879 Increment/(decrement) on revaluation of property, plant and equipment (55,109) 230,112 (55,109) 230,112 Transfer to accumulated funds (138,638) - (138,638) - Balance at the end of financial year 42,244 235,991 42,244 235,991

Note 20 – Decrease in net assets from equity transfers At 31 March 2009 the Barangaroo site and all related assets and liabilities were transferred to the Barangaroo Delivery Authority. The result of this transfer is as follows: Transferred out Cash and cash equivalents 900 - 900 - Property, plant and equipment 410,025 - 410,025 - 410,925 - 410,925 -

Trade and other payables 793 - 793 - Provisions 174,674 - 174,674 - Other liabilities 96,795 - 96,795 - 272,262 - 272,262 - Net assets 138,663 - 138,663 -

72 Sydney Harbour Foreshore Authority Annual Report 2008–09 Sydney Harbour Foreshore Authority Notes to the financial statements Fo r the year ended 30 June 2009 Consolidated Authority 2009 2008 2009 2008 $’000 $’000 $’000 $’000

Note 21 – Commitments for expenditure a) Capital commitments Capital commitments contracted for at the reporting date, but not recognised in the financial statements, are payable as follows:

Not later than one year 3,456 16,539 3,456 16,539 Later than one year and not later than five years - 100 - 100 Later than five years - - - - Total including GST 3,456 16,639 3,456 16,639

The other expenditure above include GST of $0.314 million (contingent asset), expected to be recoverable from the Australian Taxation Office. b) Other expenditure commitments Other expenditure commitments contracted for at the reporting date, but not recognised in the financial statements, are payable as follows: Not later than one year 9,726 9,903 9,726 9,903 Later than one year and not later than five years 421 11,320 421 11,320 Later than five years - - - - Total including GST 10,147 21,223 10,147 21,223

The operational commitments above include GST of $0.922 million (contingent asset), expected to be recoverable from the Australian Taxation Office.

Note 22 – Leases a) Operating lease receivables Non-cancellable operating lease receivables not recognised in the financial statements are as follows: Not later than one year 34,155 36,962 34,155 36,962 Later than one and not later than five years 97,519 107,685 97,519 107,685 Later than five years 1,103,704 1,095,728 1,103,704 1,095,728 Total including GST 1,235,378 1,240,375 1,235,378 1,240,375

Operating lease receivables 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 receivables on rental properties include GST of $112.307 million (contingent liability) that is expected to be payable to the Australian Taxation Office. b) Operating lease payments Non-cancellable operating lease payments not recognised in the financial statements are as follows: Not later than one year 286 476 286 476 Later than one year and not later than five years 455 631 455 631 Later than five years - - - - Total including GST 741 1,107 741 1,107

Operating leases relate to property, information technology equipment, office equipment and motor vehicles. Lease terms are between two and five years. The operating lease commitments above include input tax credits of $0.067 million (contingent asset) that are expected to be recoverable from the Australian Taxation Office.

Sydney Harbour Foreshore Authority Annual Report 2008–09 73 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

Minimum future Present value of minimum lease payments future lease payments 2009 2008 2009 2008 $’000 $’000 $’000 $’000

c) Finance lease payments Not later than one year 1,204 1,346 1,161 1,288 Later than one and not later than five years 953 1,560 841 1,338 Later than five years - - - - Minimum lease payments 2,157 2,906 2,002 2,626 Less future interest payments (155) (280) - - Present value of minimum lease payments 2,002 2,626 2,002 2,626

Included in financial statements (refer note 18) Current lease liability 1,091 1,175 1,091 1,175 Non current lease liability 911 1,451 911 1,451 2,002 2,626 2,002 2,626

Finance leases mainly relate to audio visual equipment with lease terms between three to five years.

Note 23 – Contingencies a) Contingent assets Contingent assets exist in relation to GST on expenditure commitments and lease payments as disclosed in notes 21 and 22. A contingent asset also exists in relation to an amount of $21.907 million receivable from NSW Treasury. The payment to the Authority is forecast to be provided within one year of the Barangaroo Delivery Authority signing the development agreement with the Stage 1 successful Proponent. This is expected to take place in 2010–11. In addition, a contingent asset exists in relation to litigation proceedings. However the amount of this contingent asset cannot yet be determined, as it is subject to the outcome of the proceedings.

b) Contingent liabilities A contingent liabilitiy exists in relation to GST on lease receivables as disclosed in note 22. A contingent liability also exists for legal costs in relation to the litigation proceedings referred to above. However these costs cannot yet be reasonably estimated.

Note 24 – Notes to the statement of cash flows 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 2009 2008 2009 2008 $’000 $’000 $’000 $’000

Cash at bank and on hand 6,276 4,272 6,276 4,272 Investments (NSW Treasury Corporation) 49,319 81,123 49,319 81,123 55,595 85,395 55,595 85,395

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.

74 Sydney Harbour Foreshore Authority Annual Report 2008–09 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

b) Reconciliation of surplus after related income tax equivalent to net cash flows from operating activities Operating surplus after income tax equivalent 37,233 46,293 32,662 44,875 Non-cash flows in operating surplus: Depreciation and amortisation 18,380 17,656 18,380 17,656 Miscellaneous non cash revenue/expense (73,314) (55,012) (68,743) (53,594) Change in operating assets and liabilities Decrease/(increase) in inventories 29 (5,726) 29 (5,726) Decrease/(increase) in GST input tax credits - - - - Decrease/(increase) in receivables 4,656 (3,140) 4,656 (3,140) (Decrease)/increase in creditors 22,061 5,181 22,061 5,181 (Decrease)/increase in provisions 1,878 850 1,878 850 (Decrease)/increase in unamortised revenue 3,683 28,170 3,683 28,170 Net cash flows from operating activities 14,606 34,272 14,606 34,272

Note 25 – 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 an ongoing basis. a) Financial instrument categories

Note Category Carrying Carrying amount amount 2009 2008 $’000 $’000

Financial assets Class: Cash and cash equivalents 7 n/a 55,595 85,395 Receivables 8 loans and receivables at amortised cost 2,943 3,180

Financial liabilities Class: Payables 13 Financial liabilities measured at amortised cost 23,044 27,758 Borrowings 15 Financial liabilities measured at amortised cost 10,000 10,000 Other liabilities 18 Financial liabilities measured at amortised cost 3,190 99,503

Sydney Harbour Foreshore Authority Annual Report 2008–09 75 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

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 pm. 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 4.53% (2008: 6.45%). Receivables – Trade debtors All trade debtors are recognised as amounts receivable at balance date. Collectability 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 (2009: $1.446 million; 2008: $2.665 million) and debtors that are past due but not considered impaired (2009: $1.325 million; 2008: $0.435 million) together represent 94% 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

2009 < 3 months overdue 1,387 1,287 100 3 months – 6 months overdue 30 20 10 > 6 months overdue 80 18 62

2008 < 3 months overdue 354 314 40 3 months – 6 months overdue 90 70 20 > 6 months overdue 71 51 20

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 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.

76 Sydney Harbour Foreshore Authority Annual Report 2008–09 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

The Authority has a total debt facility of $104 million as at 30 June 2009. The net fair value of these loans at balance date was $10 million (2008: $10 million). The weighted average effective interest rate for the year was 7.39% (2008: 7.27%) 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. 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 exposure 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 2009 Payables: Trade and sundry creditors - 13,809 - - 13,809 13,183 313 313 Security deposits 4.80% 702 - 702 - 468 76 158 Casual bonds - 182 - - 182 182 - - Forward deposits - 8,351 - - 8,351 8,319 28 4 Borrowings: TCorp borrowings 7.39% 10,000 10,000 - - - 10,000 - Other: Finance lease liability 7.18% 3,190 3,190 - - 3,190 - - 36,234 13,190 702 22,342 25,342 10,417 475 2008 Payables: Trade and sundry creditors - 17,102 - - 17,102 16,496 303 303 Security deposits 6.88% 663 - 663 - 449 72 142 Casual bonds - 172 - - 172 172 - - Forward deposits - 9,821 - - 9,821 9,677 144 - Borrowings: TCorp borrowings 7.27% 10,000 10,000 - - - 5,000 5,000 Other: Finance lease liability 8.61% 2,626 2,626 - - 1,175 1,451 - Loan payable to other 6.43% 96,877 - 96,877 - - 96,877 - NSW agency 137,261 12,626 97,540 27,095 27,969 103,847 5,445 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 2008–09 77 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

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 2008. 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 2009 Financial assets Cash and cash equivalents 55,595 (485) (485) 485 485 Receivables 2,943 - - - - Financial liabilities Payables 23,044 - - - - Borrowings 10,000 - - - - Other – finance lease liability 3,190 - - - -

2008 Financial assets Cash and cash equivalents 85,395 (487) (487) 487 487 Receivables 3,180 - - - - Financial liabilities Payables 27,758 - - - - Borrowings 10,000 - - - - Other – loan payable to other NSW agency 96,877 969 969 (969) (969) Other – finance lease liability 2,626 - - - -

78 Sydney Harbour Foreshore Authority Annual Report 2008–09 Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

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 2009 2008 $’000 $’000 Cash facility Cash, money market instruments Up to 2 years 55,595 21,123 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 2009 2008 unit price $’000 $’000 Hour Glass investment – cash facility +/- 1% +/- 493 +/- 211 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 26 – Events after balance sheet date Public Sector Employment and Management (Departmental Amalgamations) Order 2009 The Administrative Order establishing thirteen new Super Departments issued on 27 July 2009, established Sydney Harbour Foreshore Authority as an agency within Division 2 of the Public Service Department Structure. The effect on the Authority is yet to be determined.

Arena Management Arena Management Pty Ltd was placed into voluntary administration and Receivers and Managers were appointed on 31 July 2009. Arena is a private company which had a lease agreement with the Authority to operate the Sydney Entertainment Centre. On 5 August, the Authority terminated the lease agreement.

Note 27 – Individually significant items Due to an administrative restructure during the year, the Barangaroo site was transferred to the Barangaroo Delivery Authority on 31 March 2009. As a result project costs incurred of $21.882 million were expensed.

END OF AUDITED FINANCIAL STATEMENTS

Sydney Harbour Foreshore Authority Annual Report 2008–09 79 Office of The Sydney Harbour Foreshore Authority

Statement by Members of the Board of Sydney Harbour Foreshore Authority on the adoption of the financial statements for the year ended 30 June 2009 Pursuant to Section 41C (1B) of the Public Finance and Audit Act 1983 and in accordance with a resolution of the members of the Board 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 and financial performance of the Office of the Sydney Harbour Foreshore Authority as at 30 June 2009 and transactions for the year ended on that date; and 2. The financial statements have been prepared in accordance with the Australian Accounting Standards and Interpretations and 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

8 October 2009 Sydney

80 Sydney Harbour Foreshore Authority Annual Report 2008–09 Office of The Sydney Harbour Foreshore Authority

Sydney Harbour Foreshore Authority Annual Report 2008–09 81 Office of The Sydney Harbour Foreshore Authority

82 Sydney Harbour Foreshore Authority Annual Report 2008–09 Office of The Sydney Harbour Foreshore Authority

START OF AUDITED FINANCIAL STATEMENTS Income Statement For the year ended 30 June 2009

Notes 2009 2008 $’000 $’000

Personnel services revenue 3 31,898 27,214 Employee related expenses 4 (27,327) (25,796) Surplus for the year 4,571 1,418

The above Income Statement is to be read in conjunction with the accompanying notes.

Sydney Harbour Foreshore Authority Annual Report 2008–09 83 Office of The Sydney Harbour Foreshore Authority Balance Sheet As at 30 June 2009

Notes 2009 2008 $’000 $’000

Assets Current assets Receivables 5 5,823 5,154 Total current assets 5,823 5,154

Non-current assets Receivables 5 6,614 1,640 Total non-current assets 6,614 1,640 Total assets 12,437 6,794

Liabilities Current liabilities Payables 6 341 179 Provisions 7 5,482 4,975 Total current liabilities 5,823 5,154

Non-current liabilities Provisions 7 6,614 1,640 Total non-current liabilities 6,614 1,640 Total liabilities 12,437 6,794

Net assets - -

Equity Accumulated funds 9 - - Total equity - -

The above Balance Sheet is to be read in conjunction with the accompanying notes.

84 Sydney Harbour Foreshore Authority Annual Report 2008–09 Office of The Sydney Harbour Foreshore Authority STATEMENT of recognised income and expense For the year ended 30 June 2009

Notes 2009 2008 $’000 $’000

Surplus/(deficit) for the year 4,571 1,418

Total recognised income and expense for the year Superannuation actuarial gains/(losses) 8(b) (4,571) (1,418) Net income and expense recognised directly in equity (4,571) (1,418) Total income and expense recognised for the year - -

Effect of change in accounting policy Surplus for the period as reported in 2008 - Change of policy – actuarial loss recognised directly in equity (1,418) Restated surplus for the period (1,418)

The above Statement of Recognised Income and Expense is to be read in conjunction with the accompanying notes.

Sydney Harbour Foreshore Authority Annual Report 2008–09 85 Office of The Sydney Harbour Foreshore Authority Cash flow Statement For the year ended 30 June 2009

Notes 2009 2008 $’000 $’000

Cash flows from operating activities Net cash flows from operating activities - -

Cash flows from investing activities Net cash flows from investing activities - -

Cash flows from financing activities 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 Statement of Cash Flows is to be read in conjunction with the accompanying notes.

86 Sydney Harbour Foreshore Authority Annual Report 2008–09 Office of The Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

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 2009 was authorised for issue by the Authority’s Board on 8 October 2009.

Note 2 – Statement of significant accounting policies a) Basis of preparation The Office’s financial report is a general purpose financial report which has been prepared in accordance with: • Australian Accounting Standards and Australian Accounting Interpretations • the requirement 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 twelve 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 2008–09 87 Office of The Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

(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 5.50% was applied for discounting purposes. The outstanding amounts of 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.

f) 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.

g) 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.

h) Change in accounting policy According with NSW Treasury policy, the entity has changed its policy on the recognition of superannuation actuarial gains and losses. Such actuarial gains and losses are now recognised outside of profit or loss in the ‘statement of recognised income and expense’. Previously, actuarial gains and losses were recognised through profit or loss. Both options are permissible under AASB 119 Employee Benefits. The change in policy has been adopted on the basis that recognition outside profit or loss provides reliable and more relevant information as it better reflects the nature of actuarial gains and losses. This is because actuarial gains/losses are remeasurements, based on assumptions that do not necessarily reflect the ultimate cost of providing superannuation. Recognition outside profit or loss also harmonises better with the Government Finance Statistics / GAAP comprehensive income presentation for the whole of government and general government sector, required under AASB 1049 Whole of Government and General Government Sector Financial Reporting. A comprehensive income presentation will also be available at the entity level from 2009/10 under AASB 101 Presentation of Financial Statements. The change in accounting policy increases 2009 ‘surplus for the period’ from nil to $4.571 million (2008: from nil to $1.418 million), by excluding from the surplus the superannuation actuarial loss line item (2009: $4.571 million, 2008: $1.418 million). This item is now recognised in the ‘statement of recognised income and expense’ rather than the ‘income statement’.

88 Sydney Harbour Foreshore Authority Annual Report 2008–09 Office of The Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

i) New Australian Accounting Standards issues Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2009 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 127 Consolidated and Separate Financial Statements (1 July 2009) • AASB 2008-3 Amendments to Australian Accounting Standards arising from AASB 3 and AASB 127 [AASBs 1, 2, 4, 5, 7, 101, 107, 112, 114, 116, 121, 128, 131, 132, 133, 134, 136, 137, 138 & 139 and Interpretations 9 & 107] (1 July 2009) • AASB 8 Operating Segments (1 January 2009) • AASB 2007-3 Amendments to Australian Accounting Standards arising from AASB 8 [AASB 5, AASB 6, AASB 102, AASB 107, AASB 119, AASB 127, AASB 134, AASB 136, AASB 1023 & AASB 1038] (1 January 2009) • AASB 101 Presentation of Financial Statements (1 January 2009) • AASB 2007-8 Amendments to Australian Accounting Standards arising from AASB 101 (1 January 2009) • AASB 2007-10 Further Amendments to Australian Accounting Standards arising from AASB 101 (1 January 2009) • AASB 123 Borrowing Costs (1 January 2009) • AASB 2007-6 Amendments to Australian Accounting Standards arising from AASB 123 [AASB 1, AASB 101, AASB 107, AASB 111, AASB 116 & AASB 138 and Interpretations 1 & 12] (1 January 2009) • AASB 1039 Concise Financial Reports (1 January 2009) • AASB 2008-1 Amendments to Australian Accounting Standard - Share Based Payments: Vesting Conditions and Cancellations [AASB 2] (1 January 2009) • AASB 2008-2 Amendments to Australian Accounting Standard - Puttable Financial Instruments and Obligations arising on Liquidation [AASB 7, AASB 101, AASB 132, AASB 139 & Interpretation 2] (1 January 2009) • AASB 2008-5 Amendments to Australian Accounting Standards arising from the Annual Improvements Project [AASB 5, 7, 101, 102, 107, 108, 110, 116, 118, 119, 120, 123, 127, 128, 129, 131, 132, 134, 136, 138, 139, 140, 141, 1023 & 1038] (1 January 2009) • AASB 2008-6 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project [AASB 1 & AASB 5] (1 July 2009) • AASB 2008-7 Amendments to Australian Accounting Standards – Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate [AASB 1, AASB 118, AASB 121, AASB 127 & AASB 136] (1 January 2009) • AASB 2008-8 Amendments to Australian Accounting Standards - Eligible Hedged Items [AASB 139] (1 July 2009) • AASB 2008-9 Amendments to AASB 1049 for Consistency with AASB 101 (1 January 2009) • AASB 2008-11 Amendments to Australian Accounting Standard – Business Combinations Among Not-for-Profit Entities [AASB 3] (1 July 2009) • AASB 2009-1 Amendments to Australian Accounting Standards – Borrowing Costs of Not-for-Profit Public Sector Entities [AASB 1, AASB 111 & AASB 123] (Ending 30 April 2009) • AASB 2009-2 Amendments to Australian Accounting Standards – Improving Disclosures about Financial Instruments [AASB 4, AASB 7, AASB 1023 & AASB 1038] (Ending 30 April 2009) • Interpretation 15 Agreements for the Construction of Real Estate (1 January 2009) • Interpretation 16 Hedges of a Net Investment in a Foreign Operation (1 October 2008) • Interpretation 17 Distributions of Non-cash Assets to Owners (1 July 2009) • Interpretation 18 Transfers of Assets from Customers (Ending 1 July 2009) It is considered that the impact of these new 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 2008–09 89 Office of The Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009 2009 2008 $’000 $’000

Note 3 – Personnel services revenue Employee related expenses (refer note 4) 27,327 25,796 Superannuation actuarial (gains)/losses 4,571 1,418 31,898 27,214 Note 4 – Employee related expenses Directors’ fees 210 178 Salaries and wages 20,792 19,190 Defined contribution superannuation expense 1,737 1,650 Defined benefit superannuation expense/(revenue)* 33 (19) Other employee related expenses 4,555 4,797 27,327 25,796

*Refer note 8b – superannuation actuarial losses of $4.571 million (2008: $1.418 million) are recognised in the statement of recognised income and expense’. Total defined benefit superannuation expense, including actuarial losses recognised in the ‘statement of recognised income and expense’ is $4.604 million (2008: $1.399 million).

Note 5 – Receivables Current Receivable – annual leave 2,526 2,644 Receivable – long service leave 2,956 2,331 Receivable – accrued salaries, wages and on-costs 341 179 5,823 5,154 Non-current Receivable – long service leave 1,027 480 Receivable – superannuation 5,587 1,160 6,614 1,640 Note 6 – Payables Accrued salaries, wages and on-costs 341 179 341 179 Note 7 – Provisions Current Annual leave 2,526 2,644 Long service leave 2,956 2,331 5,482 4,975 Non-current Long service leave 1,027 480 Superannuation (refer note 8) 5,587 1,160 6,614 1,640 Aggregate employee benefits and related on-costs Short-term Annual leave 2,526 2,644 Long service leave 35 82 2,561 2,726 Long-term Long service leave 3,948 2,729 Superannuation 5,587 1,160 9,535 3,889

Total 12,096 6,615

90 Sydney Harbour Foreshore Authority Annual Report 2008–09 Office of The Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

Note 8 – 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 2009 and the funds held at the reserve account at Pillar Administration are:

a) Defined Benefit Scheme as at 30 June 2009 (AASB 119 Employee Benefits)

SASS SANCS SSS Total Member numbers Contributors 8 11 3 22 Deferred benefits - - 5 5 Pensioners - - 15 15 Pensions fully commuted - - 1 1

$ ’000 $ ’000 $ ’000 $ ’000 Accrued liability (2,383) (553) (13,142) (16,078) Estimated reserve account balance 1,677 267 8,547 10,491 (706) (286) (4,595) (5,587) Future Service Liability (580) (240) (249) (1,069) Surplus in excess of recovery available from schemes - - - - Net asset/(liability) (706) (286) (4,595) (5,587)

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)

The Future Service Liability (FSL) does not have to be recognised by the Office. 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 2008–09 91 Office of The Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

b) Defined Benefit Scheme (AAS 25 Financial Reporting by Superannuation Plans) Reconciliation of the assets and liabilities recognised in the balance sheet SASS SANCS SSS Total 30 June 2009 30 June 2009 30 June 2009 30 June 2009 $ ’000 $ ’000 $ ’000 $ ’000 Present value of defined benefit obligations (2,383) (553) (13,142) (16,078) Fair value of fund assets 1,677 267 8,547 10,491 (706) (286) (4,595) (5,587) Surplus in excess of recovery available from schemes - - - Unrecognised past service cost - - - - Net asset/(liability) disclosed in balance sheet as at 30 June 2009 (706) (286) (4,595) (5,587)

SASS SANCS SSS Total 30 June 2008 30 June 2008 30 June 2008 30 June 2008 $ ’000 $ ’000 $ ’000 $ ’000 Present value of defined benefit obligations (2,035) (447) (10,751) (13,233) Fair value of fund assets 1,696 279 10,098 12,073 (339) (168) (653) (1,160) 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) (1,160)

SASS SANCS SSS Total 30 June 2007 30 June 2007 30 June 2007 30 June 2007 $ ’000 $ ’000 $ ’000 $ ’000 Present value of defined benefit obligations (2,550) (486) (10,692) (13,728) Fair value of fund assets 2,164 334 11,294 13,792 (386) (152) 602 64 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 64

SASS SANCS SSS Total 30 June 2006 30 June 2006 30 June 2006 30 June 2006 $ ’000 $ ’000 $ ’000 $ ’000 Present value of defined benefit obligations (1,869) (453) (10,921) (13,243) Fair value of fund assets 1,727 351 10,158 12,236 (142) (102) (763) (1,007) Surplus in excess of recovery available from schemes - - - - Unrecognised past service cost - - - - Net asset/(liability) disclosed in balance sheet as at 30 June 2006 (142) (102) (763) (1,007)

SASS SANCS SSS Total 30 June 2005 30 June 2005 30 June 2005 30 June 2005 $ ’000 $ ’000 $ ’000 $ ’000 Present value of defined benefit obligations (1,842) (493) (11,586) (13,921) Fair value of fund assets 1,582 282 8,594 10,458 (260) (211) (2,992) (3,463) Surplus in excess of recovery available from schemes - - - - Unrecognised past service cost - - - - Net asset/(liability) disclosed in balance sheet as at 30 June 2005 (260) (211) (2,992) (3,463)

All Fund assets are invested by SAS Trustee Corporation at arm’s length through independent fund managers.

92 Sydney Harbour Foreshore Authority Annual Report 2008–09 Office of The Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

Movement in net liability/asset recognised in balance sheet SASS SANCS SSS Total 30 June 2009 30 June 2009 30 June 2009 30 June 2009 $ ’000 $ ’000 $ ’000 $ ’000 Net asset/(liability) at start of year (339) (168) (653) (1,160) Net revenue/(expense) recognised in the income statement (69) (29) 65 (33) Actuarial gains/(losses) recognised in year (403) (119) (4,049) (4,571) Contributions 105 30 42 177

Net asset/(liability) disclosed in balance sheet as at 30 June 2009 (706) (286) (4,595) (5,587)

SASS SANCS SSS Total 30 June 2008 30 June 2008 30 June 2008 30 June 2008 $ ’000 $ ’000 $ ’000 $ ’000 Net asset/(liability) at start of year (386) (152) 602 64

Net revenue/(expense) recognised in the income statement (106) (31) 156 19

Actuarial gains/(losses) recognised in year 45 (13) (1,450) (1,418) Contributions 108 28 39 175 Net asset/(liability) disclosed in balance sheet as at 30 June 2008 (339) (168) (653) (1,160)

Total expense recognised in income statement

SASS SANCS SSS Total 30 June 2009 30 June 2009 30 June 2009 30 June 2009 $ ’000 $ ’000 $ ’000 $ ’000

Current service cost (76) (23) (49) (148) Interest cost (128) (28) (687) (843) Expected return on Fund assets 135 22 801 958 Actuarial (losses)/gains recognised in year - - - - Past service cost - - - - Movement in adjustment for limitation on net asset - - - - Curtailment or settlement (gain)/loss - - - - Revenue/(expense) recognised (69) (29) 65 (33)

SASS SANCS SSS Total 30 June 2008 30 June 2008 30 June 2008 30 June 2008 $ ’000 $ ’000 $ ’000 $ ’000 Current service cost (113) (28) (50) (191) Interest cost (159) (30) (668) (857) Expected return on Fund assets 166 27 874 1,067 Actuarial (losses)/gains recognised in year - - - - Past service cost - - - - Movement in adjustment for limitation on net asset - - - - Curtailment or settlement (gain)/loss - - - - Revenue/(expense) recognised (106) (31) 156 19

The superannuation expense recognised in the Income Statement is included in the line item ‘employee related expenses’. Superannuation actuarial losses of $4.571 million (2008: $1.418 million) are separately identified in the ‘statement of recognised income and expense’.

Sydney Harbour Foreshore Authority Annual Report 2008–09 93 Office of The Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

Amount recognised in the statement of recognised income and expense SASS SANCS SSS Total 30 June 2009 30 June 2009 30 June 2009 30 June 2009 $ ’000 $ ’000 $ ’000 $ ’000 Actuarial (gains)/losses 403 119 4,049 4,571

SASS SANCS SSS Total 30 June 2008 30 June 2008 30 June 2008 30 June 2008 $ ’000 $ ’000 $ ’000 $ ’000 Actuarial (gains)/losses (45) 13 1,450 1,418

The cumulative amount of actuarial losses recognised in the ‘statement of recognised income and expense’ since 1 July 2004 is $3.558 million. Before 1 July 2004 and the adoption of AEIFRS, it is not practical to determine the cumulative actuarial gains/losses as if the new policy had always been applied, given that the actuarial gains and losses were not separately identified and accumulated, and the superannuation expense was calculated on a different basis.

Expected rate of return on assets The expected return on assets assumption is determined by weighting the expected long-term return for each asset class by the target allocation of assets to each class. The returns used for each class are net of investment tax and investment fees.

Actual return on plan assets

SASS SANCS SSS Total 30 June 2009 30 June 2009 30 June 2009 30 June 2009 $ ’000 $ ’000 $ ’000 $ ’000 Actual return on plan assets (173) (31) (984) (1,188)

SASS SANCS SSS Total 30 June 2008 30 June 2008 30 June 2008 30 June 2008 $ ’000 $ ’000 $ ’000 $ ’000 Actual return on plan assets (126) (17) (703) (846)

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 2009 2008 Discount rate at 30 June 5.59% p.a. 6.55% p.a. Expected return on plan assets at 30 June 8.13% p.a. 7.80% p.a. Expected salary increases 3.50% p.a. 3.50% p.a. Expected rate of CPI increase 2.50% p.a. 2.50% p.a.

94 Sydney Harbour Foreshore Authority Annual Report 2008–09 Office of The Sydney Harbour Foreshore Authority Notes to the financial statements For the year ended 30 June 2009

Recommended contribution rates for the entity are:

SASS SANCS SSS Multiple of member contributions % member salary Multiple of member contributions 2009 2.30 2.50 0.93 2008 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 2009 2008

Expected rate of return on fund assets 7.80% 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. 2009 2008 $’000 $’000 Note 9 – Accumulated funds Balance at the beginning of financial year - - Surplus for the year 4,571 1,418 Superannuation actuarial gains/(losses) (4,571) (1,418) Balance at the end of financial year - -

Note 10 – Commitments for expenditure The entity has no expenditure commitments at 30 June 2009 (None at 30 June 2008).

Note 11 – Contingencies The entity is not aware of any contingent assets or liabilities at 30 June 2009 (None at 30 June 2008).

Note 12 – 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 2008–09 95 Sydney Harbour Foreshore Authority Casual Staff Division

Statement by Members of the Board of Sydney Harbour Foreshore Authority on the adoption of the financial statements for the year ended 30 June 2009 Pursuant to Section 41C (1B) of the Public Finance and Audit Act 1983 and in accordance with a resolution of the members of the Board 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 and financial performance of Sydney Harbour Foreshore Authority Casual Staff Division as at 30 June 2009 and transactions for the year ended on that date; and 2. The financial statements have been prepared in accordance with the Australian Accounting Standards and Interpretations and 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

8 October 2009 Sydney

96 Sydney Harbour Foreshore Authority Annual Report 2008–09 Sydney Harbour Foreshore Authority Casual Staff Division

Sydney Harbour Foreshore Authority Annual Report 2008–09 97 Sydney Harbour Foreshore Authority Casual Staff Division

98 Sydney Harbour Foreshore Authority Annual Report 2008–09 Sydney Harbour Foreshore Authority Casual Staff Division

START OF AUDITED FINANCIAL STATEMENTS Income Statement For the year ended 30 June 2009

2009 2008 Notes $’000 $’000

Personnel services revenue 3 1,893 1,690 Employee related expenses 4 (1,893) (1,690) Surplus/(deficit) for the year - -

The above Income Statement is to be read in conjunction with the accompanying notes.

Sydney Harbour Foreshore Authority Annual Report 2008–09 99 Sydney Harbour Foreshore Authority Casual Staff Division Balance Sheet As at 30 June 2009

Notes 2009 2008 $’000 $’000

Assets Current assets Total current assets - -

Non-current assets Total non-current assets - - Total assets - -

Liabilities Current liabilities Total current liabilities - -

Non-current liabilities Total non-current liabilities - - Total liabilities - -

Net assets - -

Equity Accumulated funds 5 - - Total equity - -

The above Balance Sheet is to be read in conjunction with the accompanying notes.

100 Sydney Harbour Foreshore Authority Annual Report 2008–09 Sydney Harbour Foreshore Authority Casual Staff Division STATEMENT of recognised income and expense For the year ended 30 June 2009

Notes 2009 2008 $’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 accompanying notes.

Sydney Harbour Foreshore Authority Annual Report 2008–09 101 Sydney Harbour Foreshore Authority Casual Staff Division cash flow statement For the year ended 30 June 2009

Notes 2009 2008 $’000 $’000

Cash flows from operating activities Net cash flows from operating activities - -

Cash flows from investing activities Net cash flows from investing activities - -

Cash flows from financing activities 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 accompanying notes.

102 Sydney Harbour Foreshore Authority Annual Report 2008–09 Sydney Harbour Foreshore Authority Casual Staff Division Notes to the financial statements For the year ended 30 June 2009

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 2009 was authorised for issue by the Authority’s Board on 8 October 2009.

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 Interpretation • the requirement 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.

Sydney Harbour Foreshore Authority Annual Report 2008–09 103 Sydney Harbour Foreshore Authority Casual Staff Division Notes to the financial statements For the year ended 30 June 2009

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.

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 2009 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 127 Consolidated and Separate Financial Statements (1 July 2009) • AASB 2008-3 Amendments to Australian Accounting Standards arising from AASB 3 and AASB 127 [AASBs 1, 2, 4, 5, 7, 101, 107, 112, 114, 116, 121, 128, 131, 132, 133, 134, 136, 137, 138 & 139 and Interpretations 9 & 107] (1 July 2009) • AASB 8 Operating Segments (1 January 2009) • AASB 2007-3 Amendments to Australian Accounting Standards arising from AASB 8 [AASB 5, AASB 6, AASB 102, AASB 107, AASB 119, AASB 127, AASB 134, AASB 136, AASB 1023 & AASB 1038] (1 January 2009) • AASB 101 Presentation of Financial Statements (1 January 2009) • AASB 2007-8 Amendments to Australian Accounting Standards arising from AASB 101 (1 January 2009) • AASB 2007-10 Further Amendments to Australian Accounting Standards arising from AASB 101 (1 January 2009) • AASB 123 Borrowing Costs (1 January 2009) • AASB 2007-6 Amendments to Australian Accounting Standards arising from AASB 123 [AASB 1, AASB 101, AASB 107, AASB 111, AASB 116 & AASB 138 and Interpretations 1 & 12] (1 January 2009) • AASB 1039 Concise Financial Reports (1 January 2009) • AASB 2008-1 Amendments to Australian Accounting Standard - Share Based Payments: Vesting Conditions and Cancellations [AASB 2] (1 January 2009) • AASB 2008-2 Amendments to Australian Accounting Standard - Puttable Financial Instruments and Obligations arising on Liquidation [AASB 7, AASB 101, AASB 132, AASB 139 & Interpretation 2] (1 January 2009) • AASB 2008-5 Amendments to Australian Accounting Standards arising from the Annual Improvements Project [AASB 5, 7, 101, 102, 107, 108, 110, 116, 118, 119, 120, 123, 127, 128, 129, 131, 132, 134, 136, 138, 139, 140, 141, 1023 & 1038] (1 January 2009) • AASB 2008-6 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project [AASB 1 & AASB 5] (1 July 2009) • AASB 2008-7 Amendments to Australian Accounting Standards – Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate [AASB 1, AASB 118, AASB 121, AASB 127 & AASB 136] (1 January 2009) • AASB 2008-8 Amendments to Australian Accounting Standards - Eligible Hedged Items [AASB 139] (1 July 2009) • AASB 2008-9 Amendments to AASB 1049 for Consistency with AASB 101 (1 January 2009) • AASB 2008-11 Amendments to Australian Accounting Standard – Business Combinations Among Not-for-Profit Entities [AASB 3] (1 July 2009) • AASB 2009-1 Amendments to Australian Accounting Standards – Borrowing Costs of Not-for-Profit Public Sector Entities [AASB 1, AASB 111 & AASB 123] (Ending 30 April 2009) • AASB 2009-2 Amendments to Australian Accounting Standards – Improving Disclosures about Financial Instruments [AASB 4, AASB 7, AASB 1023 & AASB 1038] (Ending 30 April 2009) • Interpretation 15 Agreements for the Construction of Real Estate (1 January 2009) • Interpretation 16 Hedges of a Net Investment in a Foreign Operation (1 October 2008) • Interpretation 17 Distributions of Non-cash Assets to Owners (1 July 2009) • Interpretation 18 Transfers of Assets from Customers (Ending 1 July 2009) It is considered that the impact of these new Standards and Interpretations in future periods will have no material impact on the financial statements of Sydney Harbour Foreshore Authority Casual Staff Division.

104 Sydney Harbour Foreshore Authority Annual Report 2008–09 Sydney Harbour Foreshore Authority Casual Staff Division Notes to the financial statements For the year ended 30 June 2009

2009 2008 $’000 $’000

Note 3 – Personnel services revenue Employee related expenses (refer note 4) 1,893 1,690 1,893 1,690

Note 4 – Employee related expenses Salaries and wages 1,638 1,440 Defined contribution superannuation expense 147 130 Other employee related expenses 108 120 1,893 1,690

Note 5 – Accumulated funds Balance at the beginning of financial year - - Surplus/(deficit) for the year - - Balance at the end of financial year - -

Note 6 – Commitments for expenditure The Division has no expenditure commitments at 30 June 2009 (None at 30 June 2008).

Note 7 – Contingencies The Division is not aware of any contingent assets or liabilities at 30 June 2009 (None at 30 June 2008).

Note 8 – 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

Sydney Harbour Foreshore Authority Annual Report 2008–09 105 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? 2007–08 2008–09 2007–08 2008–09 2007–08 2008–09

A1 New 0 0 36 10 36 10

A2 Brought forward 0 0 0 0 0 0

A3 Total to be processed 0 0 36 10 36 10

A4 Completed 0 0 30 7 30 7

A5 Discontinued 0 0 6 3 6 3

A6 Total processed 0 0 36 10 36 10

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? 2007–08 2008–09 2007–08 2008–09 2007–08 2008–09

B1 Request transferred out to another 0 0 0 0 0 0 agency (s.20)

B2 Applicant withdrew request 0 0 1 2 1 2

B3 Applicant failed to pay advance 0 0 2 0 2 0 deposit (s.22)

B4 Applicant failed to amend a request that would have been an 0 0 3 1 3 1 unreasonable diversion of resources to complete (s.25(1)(a1))

B5 Total discontinued 0 0 6 3 6 3

Section C – Completed applications

Number of completed FOI applications What happened to completed Personal Other Total FOI applications? 2007–08 2008–09 2007–08 2008–09 2007–08 2008–09

C1 Granted or otherwise available 0 0 10 4 10 4 in full C2 Granted or otherwise available in 0 0 13 2 13 2 part

C3 Refused 0 0 2 0 2 0

C4 No documents held 0 0 5 1 5 1

C5 Total completed 0 0 30 7 30 7

106 Sydney Harbour Foreshore Authority Annual Report 2008–09 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? 2007–08 2008–09 2007–08 2008–09 2007–08 2008–09

All documents requested were:

D1 Provided to the applicant 0 0 10 4 10 4

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 for 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 0 0 0 0 the reasons listed in D1–D6 above

D8 Total granted or otherwise 0 0 10 4 10 4 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? 2007–08 2008–09 2007–08 2008–09 2007–08 2008–09

Documents made available were:

E1 Provided to the applicant 0 0 13 2 13 2

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 for 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 13 2 13 2 available in part

Section F – Refused FOI applications

Number of refused FOI applications Why was access to the Personal Other Total documents refused? 2007–08 2008–09 2007–08 2008–09 2007–08 2008–09

F1 Exempt 0 0 1 0 1 0

F2 Deemed refused 0 0 1 0 1 0

F3 Total refused 0 0 2 0 2 0

Sydney Harbour Foreshore Authority Annual Report 2008–09 107 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

2007–08 2008–09 2007–08 2008–09 2007–08 2008–09

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 7 0 7 0 (Clause 6) G7 Documents affecting business affairs 0 0 7 1 7 1 (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 1 0 1 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)

108 Sydney Harbour Foreshore Authority Annual Report 2008–09 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

2007–08 2008–09 2007–08 2008–09 2007–08 2008–09 G22 Documents affecting the economy of the State (Clause 14) 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 14 2 14 2 exempt documents

Section H – Ministerial Certificates (s.59)

Number of Ministerial Certificates How many Ministerial Certificates were issued? 2007–08 2008–09

H1 Ministerial Certificates issued 0 0

Section I – Formal consultations

How many formal consultations were Number conducted? 2007–08 2008–09

I1 Number of applications requiring formal 2 0 consultation

I2 Number of persons formally consulted 2 0

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? 2007–08 2008–09 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)? 2007–08 2008–09

K1 Applications for notation 0 0

Sydney Harbour Foreshore Authority Annual Report 2008–09 109 Section L – Fees and costs

What fees were assessed and received for FOI applications Assessed costs Fees received processed (excluding applications transferred out)? 2007–08 2008–09 2007–08 2008–09

L1 All completed applications $2,610 $310 $2,610 $310

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? 2007–08 2008–09 2007–08 2008–09 2007–08 2008–09

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 2 0 2 – pensioner or child M4 Financial hardship discounts 0 0 0 0 0 0 – non-profit organisation

M5 Total 0 0 0 2 0 2

Section N – Fee refunds

How many fee refunds were granted as a result of significant correction of Number of refunds personal records? 2007–08 2008–09

N1 Number of fee refunds granted as a result of significant correction of personal records 0 0

Section O – Days taken to complete request

Number of completed FOI applications How long did it take to process completed Personal Other Total applications? (Calendar days) 2007–08 2008–09 2007–08 2008–09 2007–08 2008–09

O1 0–21 days – statutory determination period 0 0 28 6 28 6

O2 22–35 days – extended statutory determination period for consultation or retrieval of archived 0 0 2 1 2 1 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 30 7 30 7

110 Sydney Harbour Foreshore Authority Annual Report 2008–09 Section P – Processing time in hours

Number of completed FOI applications How long did it take to process Personal Other Total completed applications? 2007–08 2008–09 2007–08 2008–09 2007–08 2008–09

P1 0–10 hours 0 0 22 4 22 4

P2 11–20 hours 0 0 5 0 5 0

P3 21–40 hours 0 0 2 1 2 1

P4 Over 40 hours 0 0 1 2 1 2

P5 Total 0 0 30 7 30 7

Section Q – Number of reviews

How many reviews were finalised? Number of completed reviews

2007–08 2008–09

Q1 Internal reviews 9 2

Q2 Ombudsman reviews 2 0

Q3 Administrative Decisions Tribunal reviews 3 0

Section R – Results of internal reviews 2008–09

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 0 1 0 1

R2 Access deferred 0 0 0 0 0 0

R3 Exempt matter deleted from 0 0 1 0 1 0 documents

R4 Unreasonable charges 0 0 0 0 0 0

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 1 1 1 1

Sydney Harbour Foreshore Authority Annual Report 2008–09 111 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

Internal fitout of existing shop for wine retail, and external S60/08/026 39–43 Argyle Street, The Rocks 4 signage. S60/08/027 Greenway Lane and 47 Argyle Street, The Upgrade of distribution board, including temporary 7 Rocks removal of cobblestones and removal of brickwork to eastern wall of Gannon House

S60/08/028 39 Argyle Street, The Rocks Internal fitout of wine tasting venue, Wine Odyssey 2

S60/08/029 117 Harrington Street, The Rocks Internal fitout for cafe use 10

S60/08/030 98–100 George Street, The Rocks New colour scheme to building exterior 6

S65a/08/031 Hickson Road, Dawes Point, The Rocks Re-erection of Dawes Point Sentry Box 7

S60/08/032 Bay 5, 1–5 Hickson Road, The Rocks Modify existing cinema into a performance stage 3

S60/08/033 39–43 Argyle Street, The Rocks Basement access for plant and equipment maintenance 1

S60/08/034 93 George Street, The Rocks Minor maintenance and upgrading of fire services 5

S60/08/035 91 George Street, The Rocks Proposed new basement air extraction system 1

S60/08/036 88 George Street, (Level 1) The Rocks Internal office fitout 3

S60/08/037 Bay 2–3, Level 2, 1–5 Hickson Road, The Internal gallery and office fitout 1 Rocks S60/08/038 Bay 2–3, Level 3 and 4, 1–5 Hickson Internal alterations and additions 1 Road, The Rocks

S60/08/039 104 George Street, The Rocks Minor penetrations and fixings 1

S60/09/001 88 George Street, The Rocks Cafe fitout and change of use to ground floor 1

S60/09/002 96 Cumberland Street, The Rocks Painting to interiors, main bar, gaming and hallways 1

S60/09/003 47 George Street, The Rocks Removal of Westpac bank fitout 1

S60/09/004 16–18 Grosvenor Street, The Rocks External temporary signage 1

S60/09/005 12–20 Argyle Street, The Rocks Foxtel dish to rooftop 8

S60/09/006 91 George Street, The Rocks New shingle sign to George Street elevation 2

S60/09/007 17–31 Playfair Street, The Rocks Replacement of outdoor display cabinets and shingle 3 signage

S60/09/008 79.5 George Street, The Rocks Introduction of new internal colour scheme 1

S60/09/009 91 George Street, The Rocks Subdivision 8

S60/09/010 2–4 Kendall Lane, 12–20 Argyle Street Temporary installations for Smartlight festival 1 and 106-108 George Street, The Rocks

S60/09/011 117 Harrington Street, The Rocks Signage to Essex Street facade 1

S60/09/012 13–31 Playfair Street, The Rocks Signage and internal loose furniture 1

S60/09/013 NOT USED

S60/09/014 12–20 Argyle Street, The Rocks Fitout for kitchen, dining rooms, unisex toilet facilities and 6 external signage

Total = 27 3 day average

112 Sydney Harbour Foreshore Authority Annual Report 2008–09 Section 57(2) exemptions

Application Time number Address Summary (calendar days)

SHFA/08/37 233 George Street, The Rocks Removal of tenancy fitout 1

SHFA/08/38 Mercantile Hotel Temporary art installation – sonic well 1

SHFA/08/39 Zia Pina, 93 George Street Structural repairs 6

SHFA/08/40 100 Cumberland Street, The Rocks Removal of non-original fabric 5

SHFA/08/41 NOT USED Maintenance and repairs (standard exemption 7) 1

SHFA/08/42 37 George Street, The Rocks Installation of floor covering on stair landing 1

SHFA/08/43 103 George Street, The Rocks Painting 1

SHFA/08/44 157 Gloucester Street, The Rocks Repair to plasterboard ceiling 1

SHFA/08/45 Argyle Street Excavation 1

SHFA/08/46 Shop E12 Pod 4, Circular Quay Railway Fitout 5 Precinct SHFA/08/47 Shop W2a, Circular Quay Railway Modification to approved fitout 5 Precinct

SHFA/08/48 229 George Street, The Rocks Fitout Chinese takeaway 6

SHFA/08/49 24–30 Grosvenor Street, The Rocks Fitout Chinese takeaway 6

SHFA/08/50 229 George Street, The Rocks Temporary coffee counter 1

SHFA/08/51 24–30 Grosvenor Street, The Rocks Temporary coffee counter 1

SHFA/08/52 32–34 Grosvenor Street, The Rocks Temporary coffee counter 1

SHFA/08/53 233–235 George Street, The Rocks Temporary coffee counter 1

SHFA/08/54 Argyle Bridge EDB in south east abutment 6

SHFA/08/55 Pod E9, Circular Quay Railway Precinct Fitout master plan 1

SHFA/08/56 36–64 George Street, The Rocks Safe roof access system 2

SHFA/08/57 32–34 Grosvenor Street, The Rocks Modification to internal fitout 1

SHFA/08/58 12–20 Argyle Street, The Rocks Interpretative signage 1

SHFA/08/59 Circular Quay Railway Shop E8 Fitout 1

SHFA/08/60 81.5 George Street, The Rocks Internal picture hanging system 2

SHFA/08/61 37 George Street, The Rocks Lock to doors L1 3

SHFA/08/62 39–43 Argyle Street, The Rocks New penetration through floor, level 1 1

SHFA/08/63 Circular Quay Railway Shop W1 Fitout 3

SHFA/08/64 32–34 Grosvenor Street, The Rocks Fitout 1

SHFA/08/65 233–235 George Street, The Rocks Fitout 1

SHFA/08/66 24–30 Grosvenor Street, The Rocks Fitout 1

SHFA/08/67 229 George Street, The Rocks Fitout 1

SHFA/08/68 155 George Street, The Rocks Fitout 1

Sydney Harbour Foreshore Authority Annual Report 2008–09 113 Section 57(2) exemptions continued

Application Time number Address Summary (calendar days)

SHFA/08/69 96 Cumberland Street, The Rocks Temporary marquee on roof 1

SHFA/08/70 Shop E1, Circular Quay Railway Fitout 2

SHFA/08/71 233–235 George Street Toilet upgrade level 3 1

SHFA/08/72 32–34 Grosvenor Street Modification to existing approval s.57/07/40 1

SHFA/08/73 24–30 Grosvenor Street Modification to existing approval s.57/07/40 1

SHFA/08/74 233–235 George Street Modification to existing approval s.57/07/40 1

SHFA/08/75 229 George Street Modification to existing approval s.57/07/40 1

SHFA/08/76 Circular Quay Railway Pod 4 Shop Fitout 1 E6

SHFA/08/77 88 George Street, The Rocks Internal blinds to east elevation level 1 1

SHFA/09/01 10 Hickson Rd, The Rocks Removal of non-original fabric from window of level 3 1

SHFA/09/02 32–34 Grosvenor Street, The Modification to existing approval s.57/07/40 1 Rocks SHFA/09/03 24–30 Grosvenor Street, The Modification to existing approval s.57/07/40 1 Rocks SHFA/09/04 32–34 Grosvenor Street, The Modification to existing approval s.57/07/40 1 Rocks SHFA/09/05 24–30 Grosvenor Street, The Modification to existing approval s.57/07/40 1 Rocks

SHFA/09/06 47 Argyle Street, The Rocks Fixing of wall mounted menu board 1

SHFA/09/07 10 Hickson Rd, The Rocks Alteration of level 3 toilet configuration 1

SHFA/09/08 Pier 2/3 Walsh Bay Temporary event 4

SHFA/09/09 Pyrmont Bridge, Darling Harbour Painted signage to bitumous road deck 1

SHFA/09/10 86–88 George Street, The Rocks Temporary coffee cart to podium 1

SHFA /09/11 Additional information requested Landscaping (standard exemption 7) not determined in this financial 1 year

SHFA/09/12 100 George Street, The Rocks Application on epoxy paint to parapet 5

SHFA/09/13 12–20 Argyle Street, The Rocks Installation of door in non-original plaster board wall 1

SHFA/09/14 2–8 Kendall Lane, The Rocks Installation of interpretative graphics and loose furniture 1

SHFA/09/15 55 George Street, The Rocks Interpretative signage 1

SHFA/09/16 117–119 Harrington Street, The Key safe to non-original fabric of Essex Street facade 1 Rocks Total = 55 2 day average

Statutory processing period is 14 days

114 Sydney Harbour Foreshore Authority Annual Report 2008–09 Section 139 exception permits

Application number Address Summary

S.139-2008-02 George Street, The Rocks Excavate umbrella sockets along the George Street western footpath

S.139-2008-03 Argyle Street, The Rocks Excavate trenches and pits along the Argyle Street footpath and to install electrical turret boxes for Jack Mundey Place markets S.139-2008-04 The Rocks Police Station / MCA Excavate test pits in the MCA car park to locate any remains of the 1796 car park dockyard S.139-2008-05 Ballast Point Excavate the area around the south-eastern corner of the verandah at Menevia, Ballast Point S.139-2009-01 Circular Quay West Excavate and install a new sewer connection to The Rocks Police Station

S.139-2009-02 Gloucester Street, The Rocks Excavate the existing stormwater and sewer trenches from Gloucester Street along Longs Lane and onto the YHA Development Site

Section 140 excavation permits

Application Time number Address Summary (calendar days)

S140/08/002 Darling Walk Stormwater diversion and demolition works Darling Walk, 1 Darling Harbour S140/08/003 Darling Walk Basement and general construction Darling Walk, 2 Darling Harbour

Payment of accounts The following table summarises the Authority’s account performance during 2008–09. Although the target of 95 per cent of accounts paid on time was not achieved for the year, a new process is being implemented in 2009–10 to automate the scanning and tracking of all invoices received by the Authority. This is expected to improve payment performance.

Quarter Quarter Quarter Quarter Description ended ended ended ended Total 30.09.2008 31.12.2008 31.03.2009 30.06.2009 2008–09 Percentage of accounts paid on time % 92% 90% 92% 95% 92%

Total dollar of accounts paid on time $’000 51,184 46,581 41,941 46,936 186,642

Total dollar of accounts paid $’000 55,895 51,775 45,490 49,536 202,696

Sydney Harbour Foreshore Authority Annual Report 2008–09 115 Index

21st Anniversary, Darling Harbour 8, 9, 15, 16, 25–29 Industrial relations 35 Aboriginal culture 17, 18, 20, 22, 23, 25, 33 Information technology 39 Aims and objectives 6–7, 15, 23, 31, 37, 43 See also Websites Annual report cost inside back cover Investment plan 16, 43 Appendix 106 Jack Mundey Place 16, 20 Awards Key performance indicator reporting 6–7 industry awards 15, 21 Knowledge management 39 Employee awards 35 Leasing 15, 16 Ballast Point 8, 9, 12, 15, 17, 20, 21, 24 Legislative change 41 Barangaroo 8, 15, 17, 37, 41, 43 Map 4–5 Bays Precinct 18, 20, 40 Marketing 26–27 Board 12–13, 38–39 Mentoring 31, 32 Callan Park 18 Occupational health and safety 32 Carbon neutral 1, 15, 18 Organisation chart 13 Car parks 17 Organisation review 32 Chief Executive Officer 9, 11, 13, 38 Overseas travel 39 Chairman 8, 11 Payment of accounts 115 Charter 3 People movements 28–29 Chinese Garden of Friendship 24, 28, 32 See also Visitation figures Circular Quay 4 Planning assessment 32 Closed circuit television 24 Policies Code of conduct 35 Events cultural policy 25 Community services 23, 24, 29 Sustainability policy 18 Conservation Management Plans 21 Privacy management plan 39 Consultants 41 Procurement 37, 41 Contact information inside back cover Property 15, 16 Corporate governance 37 Pyrmont Bridge 18, 24 Audit and Risk Management Committee 38–40 Risk management 38–39, 40 Corporate Governance Committee 38 Social investment 24 Credit cards 41 Sponsorships 29 Customer service and feedback 26, 33 State Plan 6–7, 15, 23, 31, 37, 43 Darling Walk 14, 17, 18, 25 Sustainability 15, 18–19, 21, 28 Divestment 15, 17, 43 Strategic objectives 6–7 Disability management 25, 32 Sydney Convention East Darling Harbour see Barangaroo and Exhibition Centre 15, 19, 21, 23, 24 Educational programs 20, 26 Sydney Harbour YHA 20 Employee numbers 34 Sydney Visitor Centres 18, 33 Environment see Sustainability The Rocks Discovery Museum 22, 24, 26, 32 Equal employment opportunity 33 The Rocks Farmers’ Market 15, 16 Ethnic affairs 33 The Rocks Markets 16, 28, 39, 42 Events Tourism 25, 27, 43 Authority events 23, 28–29 Training 32–33 Conferences 26 Vacancy rates 16 Supporting the community 29 Vision 2 Executive team 12–13 Visitation figures 24, 26, 28–29 Farmers’ market see The Rocks Farmers’ Market See also People movements Financial statements 43–105 Waste 20 Fraud and corruption prevention 32, 37, 38–39 Websites 23, 24–25, 39 Freedom of information 41, 106–111 White Bay Power Station 18, 20, 40 Fundraising 35 See also Bays Precinct Healthy Lifestyle Program 21, 35 Women in the workplace 35 Heritage 17, 18, 20–21 Workplace6 19–20, 25 Human resources 33–35

116 Sydney Harbour Foreshore Authority Annual Report 2008–09

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 8am to 6pm, Monday to Friday ABN: 51 437 725 177

Sydney Visitor Centres 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 2008–09 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 $5,313.

Printed onSydney Sovereign Harbour Offset paperForeshore stock –Authority environmentally Annual accredited Report 2008–09 117