West Gippsland Catchment Management Authority
Annual REPORT 04/05 Contents
SECTION 1 HIGHLIGHTS Achievement against key areas of focus 2 Chairs and CEO’s Report 8
SECTION 2 WGCMA Our purpose 11 Our organisation 11 Our operating environment 12 Overview of the region and map 13
SECTION 3 GOVERNANCE The Board and Sub-committees 14 Organisational structure 16 Statutory reporting 17 Report against Corporate Plan targets 19 Disclosure index 23
SECTION 4 MANAGEMENT Management Structure 24 Integrated Catchment Unit report 26 Corporate Services Unit report 26 Partnership Development Unit report 27 Operations Unit report 27
SECTION 5 CATCHMENT CONDITION RCS/RCIP update 28 Water report 30 Land report 33 Biodiversity report 36 Atmosphere and climate report 38 People and communities report 39 Production report 41 GINRF report card 42
SECTION 6 FINANCES Financial statementsManagement 46 Auditor General’s statementAuthority 45 1Section 1 Highlights Achievements against key areas of focus identified in our Strategic Plan
2 Each year the Board endorses an Action Plan aimed at delivering on the strategies included in our Strategic Plan. In the 2005/2005 year 150 actions were included in the Plan. In this Highlights Section we have detailed the results against some of these actions.
1 Meeting our Statutory Requirements 1.2.2 Ensure finalisation and ministerial sign off of RRHS
The final version of the West Gippsland River Health Strategy (RHS) was signed off by the Board in August 2004 and forwarded to the Minister for the Environment in February 2005 for its final endorsement.
The RHS has been used to develop the Water Program for the West Gippsland region during 2004-2005 which has successfully secured significant investment for river health across the region, in particularly the Thomson and Macalister Rivers, the Traralgon Creek and the Tarra River. Regional River Health Project Officer and Operations Manager discussing the RHS. 1.6.11 Implement works under White Paper initiative for Thomson River
The Thomson Macalister Rivers Repairing the Damage project has been successfully implemented during 2004-2005. All targets and milestones have been met for both on-ground and planing based activities with work continuing on the development of a Wetland Plan for the region and a community monitoring program in partnership with Waterwatch.
2 Delivering On Our Co-ordindation Activities Saving the Red Gums on the Thomson River. 2.1.4 Develop a strategic community education program for waterwatch
Waterwatch has undertaken to run several major regional community events annually to promote a specific waterway health message to the broader community. These activities provide the opportunity to promote the Waterwatch program to the wider community who are not interested in monitoring water quality & are above school age. They also provide opportunities to form closer relationships with partners – who may wish to be involved with specific events. 3 1West2 Gippsland Catchment Management Authority
Major events in 2004/2005 included: • A canoe tour of the Tarwin River which provided 70 participants with a first hand experience of the health and condition of the river. Six guest speakers also highlighted key issues for the health of the Tarwin River.
• Two “Catch a Carp” Days – at Lake Guthridge and Lake Narracan. Both events were very successful, and the Lake Narracan event attracted over 500 participants. The Lake Narracan event was run in partnership with Latrobe City and Yallourn Energy with prizes for both events donated by Alpine Country. Canoe tour on the Tarwin River.
2.3.1 Finalise the development of the Salinity Management Plan
The West Gippsland Salinity Management Plan was successfully completed and endorsed by the Board in June 2005. Development of the Salinity Management Plan during the year included a major component of stakeholder engagement this engagement included a series of workshops throughout the region at which a number of community and agency representatives provided input into the management actions in the plan. Those management actions will drive the implementation of the Salinity Management Plan over the next five years as it strives to meet the set resource condition targets. The plan is currently with the Department of Sustainability and Environment prior to seeking Ministerial endorsement. An example of salinity.
3 Providing Support In Our Region 3.6.1 Develop a regional policy framework for the support of seedbank
As the first step in developing the framework a forum was conducted with with over 30 people representing the key stakeholders in native vegetation restoration in the region. The day was aimed at identifying the strengths, weaknesses, opportunities and threats to the regions Seedbanks. The outcomes from the forum were a positive step forward for West Gippsland’s Seedbanks. The forum identified opportunities for seedbanks to work closer together sharing equipment, knowledge and
skills. It also identified the need for regional direction in areas of Harvesting seed. business planning, education, training and pricing.
3.7.2 Co-ordinate a review of the MID NRP
The WGCMA co-ordinated the Review of the Macalister Irrigation District Nutrient Reduction Plan (MID NRP). The MID NRP has been a key delivery tool for nutrient reduction activity and investment in the MID region since 1998. Representatives from the Gippsland Lakes Taskforce and key agencies steered the review of the plan that aimed to determine the effectiveness of past plan implementation and make
4 Hig lig ts
recommendations for the future. The review determined that on the whole the plan has been successful in meeting the SEPP target to reduce nutrient loads entering the irrigation drains and that investment has been accurately directed to nutrient reduction works such as on- farm extension and incentives for improved land management. Future directions for nutrient reduction includes the development of a Land and Water Management Plan for the MID that addresses a broad range of natural resource management issues. Continued extension and incentives and an assessment of the phosphorous drain store will also drive the nutrient reduction program. 1 Irrigation in the Macalister Irrigation District.
4 Influencing Our Operational Environment 4.3.4 Finalise and implement Traralgon Creek Action Plan
The Traralgon Creek Action Plan has formed the basis of the Neighbourhood Environment Improvement Plan for the Traralgon Creek being managed by the Latrobe City in partnership with the community and stakeholders of the Traralgon Creek catchment.
Priority river health related activities within the Traralgon Creek Action Plan have been implemented through the White Paper funded Traralgon Creek Riparian Improvement Project. Additional funding during 2005- 2006 will enable further riparian improvements along the Traralgon Work undertaken on the Traralgon Creek. Creek.
4.6.2 Maintain, develop and implement community focus of Regional Landcare Forum
The West Gippsland Catchment Management Authority Board values the important partnership between Landcare and the WGCMA. Current Landcare issues, trends and best practice in relation to catchment management are of ongoing interest to the board. As part of the Board’s plans to fulfil its obligations in this area it has constituted a Regional Landcare Forum.
The Regional Landcare Forum convened 4 times this year. It continues Guests at the Landcare Film launch. to provide an excellent opportunity for the voice of Landcare to be heard within a regional context. This year the Forum revisited and updated its Charter and provided input into the implementation of the Guests at the Landcare Film Launch Landcare Support Strategy and implementation of the findings of the Co-ordination and Facilitation Review undertaken by the WGCMA.
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5 Engaging Our Community and Regional Stakeholders 5.2.5 Examine ways of working with EGCMA more efficiently.
The West and East Gippsland CMAs have committed to exploring opportunities for sharing resources and creating efficiencies for our respective communities during 2004-2005. We agreed to the establishment of a joint Floodplain and Statutory Planning Team, a joint Water Quality Team and an Environmental Water Reserve Management Team. In addition to the above we have commenced the provision of the payroll and account keeping services for EGCMA through Axapta. Gippsland Statutory Planner & Gippsland Floodplain Officer. We understand these shared services are the first being undertaken in any serious way by Catchment Management authorities across Victoria and we believe we can establish a model which could encourage other CMAs to adopt this type of approach.
5.6.1 Endorsement of Indigenous Engagement Policy
During the development and recent accreditation of the RCS, the issue of indigenous engagement was highlighted as an area for further focus. Several Indigenous Communities have an interest in the WGCMA region. There are two traditional owner groups, namely the Kulin Nation, comprising the Bunurong, Wurundjeri and Taungurong clans, and the Gunai / Kurnai Nation with four of their five clans in the region: the Bratauolung, Brabiralung, Tatungalung and Braiakaulung. (Tindale, 1974) In the last part of 2004 the WGCMA Indigenous Engagement Policy and the associated Procedure were endorsed by our Board.
The policy will assist in establishing a framework for the WGCMA to better understand and address Indigenous Cultural Heritage Issues in relation to all activities that it undertakes in accordance with the relevant legislation and taking into account the views, aspirations, traditional Uncle Albert Mullett talking to WGCMA staff at the Knob values and practices of the local Indigenous Communities. Reserve in Stratford.
6 Developing a Capable and Caring Organisation 6.1.2 Review office and depot requirements to ensure that they are located to maximise outcome.
During the 2004-2005 year the Authority undertook a strategic review of our office and depot requirements to compare our existing arrangements to our future expectations.
In undertaking the review the consultants considered a number of possible combinations of office accommodation and depots from staying as we are to amalgamating all office and depots to one location. In addition they compared our current lease arrangements to the market to determine the cost effectiveness of our current leases.
6 Highlights
One of the clear outcomes of the review is that there is a need for the Authority to have an operational presence in the Latrobe Basin and that from an effectiveness and efficiency perspective it does not make sound business sense to have two depots in the Thomson Basin.
As our current lease are in line with market value the Authority has time to undertake further investigation to determine which of three options recommended by the consultant best meets the Authority’s future needs. This report is expected in the first half of the 2005-2006 financial year. 1 WGCMA – Yarram Depot.
6.1.3 Review Strategic Plan in view of the White Paper During 2004/2005 we had the release of the Government’s
“Our Water Our Future” policy paper. This was one of the most significant policy frameworks released in recent history and the Board undertook a workshop in August 2004 to ensure it understood the policy implications of the document for our CMA.
As a result of the workshop our five year Strategic Plan was updated to reflect the work required by the Government and reissued at the start of 2005.
Board strategic planning session.
7 Developing and Resourcing the Investment Plan for the Region 7.1.1 Review, refine and implement RCIP process
The Regional Catchment Investment Plan (RCIP) is the main process through which natural resource management projects are developed and funded by the Australian and Victorian Governments. Our task in the last financial year was to prepare the RCIP for 2005/2006. The plan was developed and lodged in accordance with the appropriate timelines.
The RCIP is developed and coordinated on behalf of the region by the West Gippsland Catchment Management Authority. The process is overseen by a multi-agency Working Group and is designed to facilitate and develop partnerships that help secure funding for the deliver the Water Portfolio Group at the RCIP workshop. Regional Catchment Strategy (RCS) and associated Action Plans. The RCIP facilitates a coordinated investment approach targeted at achieving agreed RCS priorities.
WGCMA staff and our community-based, asset-focused Portfolio Groups were then able to synthesise these ideas and use them to work with our partners and investors to develop an integrated package of regional projects. Investment through this process includes State and Australian Government funding totalling nearly $14M for 2005/2006.
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Chair’s and Chief Executive Officer’s Report As the lead in to this Annual Report we have provided some the region and provide some guidance for the restoration and examples of the significant achievements made by the West development of wetlands in the West Gippsland region. Gippsland Catchment Management Authority (WGCMA) and the Much of our attention in the last twelve months has been on West Gippsland community. We are very aware that the success initiatives and activities stemming from the Government’s policy of many of our programs is only possible with the support and paper “Our Water our Future”. This has included the assistance of the community and in view of this, working with our development of an operating strategy for the environmental water community continues to be a key aim of the WGCMA. We invest reserve in the Thomson and Macalister Rivers. This considerable resources in ensuring the effective operation of our has been achieved through the close working relationship that three community consultative committees and in the past year has been established with Melbourne Water, Southern Rural the WGCMA, in conjunction with committee members, has Water, and DSE on this matter. We look forward to working with further refined the operating charter for the committees. We these agencies in the successful implementation of the operating believe we now have a very sound system for ensuring the strategy and the annual watering plans. The past year has also WGCMA receives advice and input on the broad range of seen the commencement of an environmental flows study on the catchment management activities in which we are involved. Latrobe River.
During the past year the WGCMA Board endorsed a Local We have also been involved in the development of a revised Government engagement strategy and invested funds in its funding model for all Catchment Management Authorities (CMAs) implementation. It was determined that our engagement with and the development of the Statement of Obligations (SOO) for Local Government should be around the discussion of significant CMAs. These are extremely important initiatives that were issues for our communities and one of the target areas has been detailed in the Government’s policy and will hopefully clarify the native vegetation. In this context we have funded Greening responsibilities of CMAs and ensure that we have the necessary Australia to organize and deliver a regional forum on native resources to carry out these responsibilities. We look forward to vegetation which will occur in the first quarter of the 2005/2006 our continued involvement in these projects and the production financial year. of a SOO and funding model that meets ours and the Governments needs. Another key aim for the WGCMA during the last year has been to strengthen our relationships with the indigenous community Another of the initiatives from the “Our Water Our Future” paper and we have undertaken indigenous cultural heritage and native is the development of Sustainable Water Strategies (SWSs) title training for our Board and staff. We have also commenced across the State. We will be involved in the development of discussions with our indigenous community about the Central and Gippsland SWSs and are keen to ensure that issues development of an engagement protocol and we have agreed to relevant to our region are addressed appropriately in both the establishment of an indigenous advisory group. We believe strategies. In this context we are supporting a regional project these initiatives will ensure that the WGCMA is including the that will ensure all the relevant stakeholders in our region have needs of the indigenous community in our catchment the knowledge to provide regional input into both these management activities. strategies. This project is being funded from the Water for Growth initiative and will be project managed by the DSE Our Regional Catchment Strategy (RCS) was formally endorsed Regional Water Manager. and launched by the Minister for Environment, John Thwaites on 17 September at Noojee on the Latrobe River. The RCS is now The WGCMA received significant funding through the “Our Water being used as the over aching guide for the development of a Our Future” initiative for restoration works on the Thomson and range of regional action plans and in the development of our Macalister rivers and additional funding from the Healthy Rivers annual Regional Catchment Investment Plan. Over the remaining initiative for the Tarra River and the Traralgon Creek. This meant part of last financial year our activities around the RCS have been that our on-ground program for 2004/2005 at close to focused on its communication to the community to ensure the $5,000,000 was the largest ever tackled by the WGCMA and we RCS is understood and delivered on. We will be further investing are pleased to report that it was successfully implemented. This in these activities in the next twelve months. has in part been due to some changes to our operations structures which have seen the introduction of consistent As mentioned above, the WGCMA has developed and endorsed processes and procedures across the whole of the West a number of plans in the past twelve months including the Gippsland region and because of the commitment of our crews Regional River Health Strategy, the Water Quality Action Plan and and their ability to project manage a number of private the West Gippsland Salinity Management Plan. These plans have contractors who have supported our works program this year. now been lodged with the Department of Sustainability and Environment (DSE) for consideration and endorsement by the Partnerships are critical to the success of catchment Minister. We have also commenced the development of a management activities in our region and we continue to work on Regional Wetlands Plan which will detail the existing wetlands in our partnerships with Landcare and Waterwatch and have been
8 Highlights
proud to support Waterwatch’s development of a Gippsland Communication about the WGCMA and the catchment Environment Education resource -“Catchments and estuaries to management activities being undertaken in the West Gippsland the coast” which was funded through the Gippsland Lakes Region has also been a key focus for us in the past twelve Taskforce. We also provide support to the Gippslandcare initiative months. During the year the Board endorsed a Communications which has established a successful region wide delivery model and Marketing strategy for the WGCMA and we undertook a for a land protection project funded through the Natural Heritage major communications task in April 2005 which saw a two page Trust and the National Landcare Program. supplement on catchment management activities in the region included in all local papers. The feedback we have from this We have also agreed to work in partnership with DSE, activity has been very positive and we will be looking1 to Watermark and Field and Game Australia to examine the strengthen and increase investment in our communications rehabilitation requirements of Hearts Morass near Sale and to activities in the next financial year. explore the possibilities for returning the Morass to public ownership. The Morass is a significant wetland in the region and Whilst it is very pleasing to reflect on the achievements over the its purchase would ensure that the wetlands on the lower last twelve months it is important to acknowledge that there are Latrobe River and adjacent to Lake Wellington are being many challenges to consider in the next twelve months including: managed to ensure their effectiveness as wetlands. • Considering and addressing the Government’s Environmental Sustainability Framework In the past twelve months we have grasped a number of • Continuing the successful implementation of the Native opportunities to optimize the available resources in greater Vegetation Plan Gippsland and we have embarked on a number of shared • Commencing the development of the Land and Water arrangements with East Gippsland CMA including shared Management Plan for the Macalister Irrigation District. environmental water reserve, floodplain, drainage, statutory • Developing projects for funding under the National Water referrals and water quality services. In addition we are sharing Initiative. financial, human resource and payroll services including shared • Developing an Action Plan to secure the future of Corner software. We have also agreed to share resources with and Nooramunga Inlet Gippsland Coastal Board in the development of the Gippsland • Working with the Gippsland Lakes Taskforce to seek Estuaries Coastal Action Plan. These types of arrangements long term funding for the rehabilitation and protection the maximize the investment in our region and we will continue to Lakes. look for these opportunities. It is clear from these few examples that there is significant work Many of the sharing of resources and integration of effort for the WGCMA and the West Gippsland Community to ensure opportunities are raised in our Gippsland Integrated Natural we are managing and sustaining the catchment for future Resources Forum (GINRF) which is financially supported by East generations. We are sure that if the Board, staff and the and West Gippsland CMAs. GINRF includes all of the key community maintain their commitment at existing levels then we agencies and organisations involved in natural resource will take many steps towards achieving this goal in the next year. management in our region and as well as assisting integration of We thank all of you for your efforts and look forward to working effort GINRF provides a collective report on the environmental with you into the future. health of assets in Gippsland. The third annual report card was produced this year and is included later in the Annual Report as an update on the health of our catchment.
We have now had twelve months experience with our new integrated financial and project management system – Axapta and we are starting to see some of the monitoring and reporting benefits from the introduction of this system. There are at least seven other CMAs planning to use Axapta now and as at the end of June four had implemented it. The progress with Axapta has Elizabeth Clay Geoff Hocking prompted us to consider other systems improvements and a Chair Chief Executive Officer number of CMAs have agreed to collectively purchase an electronic document management system. We will be looking to implement this new system in the first half of 2005/2006. Within the WGCMA we have also completed a roll out of our Geospatial Information System and all project officers now have access to this system which will assist them in defining and managing their projects.
9 2 Section 2 WGCMA West Gippsland Catchment Management Authority
10 Our Purpose Our Organisation Why are we here? Who are we? The State Government has established a catchment The WGCMA has been established to provide integrated management system to effectively implement integrated management of land and water resources within the catchment management as a tool for ecologically Region. The Authority was established on 1 July 1997 sustainable development of our natural resource based following a Statewide review of catchment management industries, the protection of land and water resources and structures and is one of 10 such organisations in Victoria. the conservation of natural and cultural heritage. The Board As part of this system, Catchment Management The WGCMA is directed by a skills based Board Authorities (CMAs) were created to maximise community appointed by Government and is responsible for strategic involvement in this system and ensure transparency in and policy direction for the integrated management of decision making on these issues. land, biodiversity and water through South, Central and West Gippsland. It operates under the legislative base of The West Gippsland Catchment Management Authority the Catchment and Land Protection Act 1994 and the (WGCMA) vision and mission are as follows: Water Act 1989.
Vision These Acts define the main purposes of the WGCMA as The WGCMA will, with our community, provide a satisfying follows: environment to work and live where land, water and • To set up a framework for the integrated biodiversity can be sustained and enhanced so that both management and protection of the catchment present and future generations can experience and enjoy • To encourage community participation in the our region which will be valued and recognised by our management of land and water resources community as one of Australia’s premier regions. • To set up a system of controls on noxious weeds and pest animals Mission We will achieve this vision by engaging our community in Within this framework, one of the WGCMA’s primary role the development of plans and programs that will enable a is engaging with the community to develop and sustainable balance between the human need to utilise implement the Regional Catchment Strategy. The Regional the natural resources of the region and our responsibilities Catchment Strategy is an integrated framework for land to ensure that these resources remain available for future and water management in the region. It outlines the generations. priority issues for the region through broad consultation with our community and other stakeholders.
11 2West Gippsland Catchment Management Authority
The Regional Catchment Strategy is the over-arching The release of the State Government’s White Paper “Our strategy for the development, management and Water Our Future” has outlined the importance of CMAs conservation of land and water resources in the region and the key role CMAs have as the Caretakers of River and is formally reviewed every 5 years. Health and as the Operational Manager of the Environmental Water Reserve. The latter is a new role that One of the mechanisms the region has put in place to aid has come about because the Government has agreed to integrated catchment management is the establishment of create an Environmental Water Reserve for rivers and the Gippsland Integrated Natural Resource Forum. This aquifers across Victoria. Forum is jointly funded by the West and East Gippsland CMAs and the Australian Government through the Natural The White Paper has introduced a number of policy Heritage Trust and has members from all agencies or changes for our Authority and our region. industry involved in natural resource management across Gippsland. We will continue to use this Forum to achieve The region is also subject to social, economic and the resource condition targets in the Regional Catchment environmental trends that will affect how we manage our Strategy. natural resource base into the future. Implementation Committees and These include: Portfolio Groups • Expanding urban fringe The WGCMA has three geographically based • Increasing demand on water yield implementation committees that are the key to the • Climate change influencing weather patterns, WGCMA’s community engagement framework. They sea levels and flooding provide strategic advice on resource management • Land subsidence from extractive industries priorities, activities and issues. These groups are an • Intensification of the traditional primary industry important conduit for local community input in to the base WGCMA and they also have an integral role in the • Diversification of agribusiness development of the Regional Catchment Investment Plan. • Changing economics and politics of agriculture To ensure we have region wide input on key issues facing • Industrial restructure and downsizing the West Gippsland region we have allocated all • Ageing of the farming community Implementation Committee members to asset based Portfolio Groups. These Groups are based around the Our region has a unique landscape consisting of rolling following assets: hills, wetlands, mountain ranges, extensive floodplains and • Water coastal areas. This diversity is attractive to tourism and • Land and Production recreation and the close proximity to Melbourne places • Biodiversity continual pressure on the environment as a result of urban • People and Communities sprawl. Our Operating Environment The region’s high rainfall and natural waterways have also been placed under pressure to provide high quality water Natural resource management is subject to changing to meet the residential demands of Melbourne and the trends due to increased understanding, the ongoing increased use of water for intensive farming, agriculture, development of new conceptual frameworks, the advent urban and industrial use. or recognition of new threats, and changes in our capacity to deal with these as well as existing threats. Gippsland has a variety of primary industries particularly grazing, dairying, intensive horticulture and vegetable Australia is a signatory to a number of international production. This production has brought an increase in agreements on the environment and is a participant to the secondary and tertiary industries that have significantly Ramsar Convention for the protection of wetlands of contributed to the increase of Gross Domestic Product for international significance for migratory wading birds. the region. Australia has a number of intergovernmental agreements on issues such as the environment, salinity, and water A further major industry in Gippsland is forestry including reform. Policy frameworks are developed by State and plantation development and forestry products ranging Federal Governments to reflect the current thinking and from paper production to timber and wood chip exports. provide interpretation to resource managers at a regional The region also boasts major fossil fuel deposits that are level. mined to produce most of Victoria’s electricity.
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Principles Of Value Overview of the Region We value that all the activities we undertake are relevant, 2 Total Land Area: 17,685 km transparent, accountable and reliable. In undertaking our activities we will act with integrity, fairness and credibility. Population: 169,094 We will share knowledge and information, be prepared to Tenure: Total Public Land 40% (Parks 15.5% & State accept change and seek to continuously improve the Forests 22.5%) activities in which we are involved. Highest Point: Mt. Howitt 1738 metres We value and encourage participation of the community River Basins: Latrobe, Thomson and South Gippsland and other key stakeholders. Biggest Employment Sector: Agriculture, Forestry2 We are committed to integrated natural resource and Fishing management and targeted investment that is focused on long-term outcomes for our region. Traditional Custodians: Gunai/Kurnai (Bratauolung, Brabiralung, Tatungalung, Our partners and alliances are of the utmost importance to Braiakaulung) Kulin (Bunurong, Wurundjeri, Taungurong) our operation and the development and implementation of * Tindale 1974 the natural resource management priorities and plans. Municipalities: Latrobe City, Wellington, Baw Baw, South Gippsland and We look to operate in an environment that is based on Bass Coast Shire. Plus small areas of Mansfield and East mutual respect, open communication, sharing of success, Gippsland. and the acknowledgement of achievements. Bioregion: Key Areas Of Focus Gippsland Plain, Highlands Southern Fall, Strzelecki To deliver on our vision and mission we undertake a range Ranges, Wilson’s Promontory, Victorian Alps, East of activities from providing a leading role in developing the Gippsland Lowlands Marine Bioregions: Central Victoria, strategic direction for natural resource management in the Flinders, Twofold Shelf and Victorian Embayments region to undertaking operational works for river health and Wetlands of International Importance: water quality. We also act as a regulatory body for the Gippsland Lakes and Corner Inlet Ramsar Sites region’s floodplains and waterways. Our well established ability to undertake operational work distinguishes us from West Gippsland Region provides: other CMAs and provides us with the ability and flexibility 20% of Australia’s milk production, 95% Victoria’s to tackle priority projects when identified. The field staff electricity (85% of Victoria’s generation capacity) 100% have helped the CMA develop strong links with our Victoria’s gas (offshore), 66% of Australia’s oil (off shore) community and networks that assist us in our work. 27% of Melbourne’s water.
As part of the development of this strategic plan we have Mt. Howitt identified seven Key Areas of Focus under which we have identified a number of strategies which we will pursue
during the course of this strategic plan. Macalister The seven Key Areas of Focus are: 1. Meeting our statutory requirements. Mt. Matlock LICOLA 2. Delivering on our co-ordination activities. Thomson Mt. Difficult 3. Providing support in our region. River Avon Perry Lake Thomson
R 4. Influencing our operational environment. iver Latrobe Lake Glenmaggie LAKES ENTRANCE Tanjil 5. Engaging our community and regional The Three Sisters MAFFRA ERICA River HEYFIELD STRATFORD takeholders. Tyers River Blue Rock Lake LOCH SPORT River Moondarra Reservoir R River iver SALE Lake Wellington 6. Developing a capable and caring organisation. ROSEDALE WARRAGUL Lake Narracan
r River e 7. Developing and resourcing the investment plan iv R TRARALGON Merriman Moe MOE for the region. MORWELL Creek Mt. Worth elll rw o CHURCHILL WESTERN M SEASPRAY PORT BAY KORUMBURRA MIRBOO NORTH Mt. Tassie Tarra SAN West Branch R REMO Beech Hill iver B A S S S T R A I T LEONGATHA ch Franklin R. . ran Powlett R st B Albert Ea Agnes R. River YARRAM . R in rw WONTHAGGI a INVERLOCH T FOSTER
0 10 20 30 40 50
Scale of Kilometres 13 3 Section 3 Governance The Board and sub-committees
14 The Board & Sub-committees Front row: S. Davey, H. Wardell (deputy Chair), E. Clay (Chair), J. Gurling, J. Liley Middle row: B. Harrington, K. Lamb, N. Maud, T. Edgar, D. Sinnott Back row: A. Hume, R. Bennett, K. Young
Member Date First Appointed Number of Meetings Attended 2004-2005
Elizabeth Clay 1 July, 2000 11/11 Hanna Wardell 1 July, 2000 10/11 Bill Harrington 10 October, 2002 11/11 Sylvia Davey 1 July, 2000 11/11 Ken Lamb 1 July, 1997 10/11 Rasa Bennett 1 July, 2003 10/11 Jane Gurling 1 July, 2000 11/11 Kevin Young 1 July, 2003 11/11 Noel Maud 1 July, 2003 11/11 Joan Liley 1 July, 2003 10/11 Des Sinnott 1 July, 2003 11/11 Tony Edgar 1 July, 2003 8/11 Angus Hume 21 February, 2005 5/5 Neville Penrose 1 July, 2003 2/2 resigned 30 August 2004
Audit Sub-committee 5 Meetings Corporate Sub-committee 6 Meetings
D. Young (Independent Chair) S. Davey (Chair) M. Clamp (Independent member) B. Harrington H. Wardell J. Liley R. Bennett K. Young
Renumeration Sub-committee 2 Meetings Catchment Policy Sub-committee 4 Meetings
K. Young (Chair) K. Lamb (Chair) E. Clay D. Sinnott D. Sinnott N. Maud A. Hume
15 3West2 Gippsland Catchment Management Authority
Organisational Structure Community
Portfolio Groups Biodiversity, Land & Production, People & Communities, Water
South Gippsland Bass Latrobe Baw Baw Wellington Implementation Committee Implementation Committee Implementation Committee
Renumeration Audit Corporate Catchment Policy Committee Committee Sub Committee Sub Committee
WGCMA Board
Implementation Committee Membership
South Gippsland Bass Latrobe Baw Baw Wellington David Meikle Peter Freeman Brian Frawley Chair Chair Chair Anne Davie David Balfour Alex Arbuthnot Ern Cattach Malcolm Boyce Wayne Bath Ian Dench Tim Bowman Jocelyn Connell Mike Carnell Richard Crooke Dick Chester Anwyn Martin Matthew Gleeson Jane Hildebrant Jon Christopher Helen Garrety George Kermode David Sutton Rebecca McGuigan Gary Hammer Jeanette Harding Barbara Johnson Jim Mount David MacAulay Ken Savage Geoff Pettifer Ross Williamson Phil Whiteman Judy Traill Paul Smith Kevin Roberts Peter Gault Kieran Kennedy Ian Onley Jeff Amos
Portfolio Group Membership
Biodiversity Land and Production People & Communities Water Ian Dench David MacAulay Anne Davie Peter Freeman Chair Chair Chair Chair Jeff Amos Ern Cattach Kieran Kennedy Jon Christopher Mike Carnell Jeanette Harding Anwyn Martin David Meikle Ross Williamson Tim Bowman Paul Smith Malcolm Boyce Richard Crooke David Balfour David Sutton George Kermode Ken Savage Barbara Johnson Helen Garretty Matthew Gleeson Phil Whitman Kevin Roberts Rebecca McGuigan Geoff Pettifer Dick Chester Wayne Bath Ian Onley Jim Mount Jocelyn Connell Gary Hammer Alex Arbuthnot Brian Frawley Jane Hildebrant Peter Gault Judy Traill
16 Governance
Statutory Reporting private sector businesses on the same footing. Establishing Legislation Where appropriate, competitively neutral price adjustments The WGCMA operates under the Water Act 1989 and the to outputs were made. Catchment and Land Protection Act 1994. The Hon John Thwaites, Deputy Premier, Minister for Water Consultancies and Major Contracts and Minister for the Environment was the responsible There were no individual consultancies over $100,000 during Minister during the reporting period. the reporting period. There were 55 consultancies below $100,000 each, at a total cost of $1,377,359 during the Merit and Equity The Public Administration Act 2004 specifies a number of 2004/2005 reporting period. There were no major3 contracts employment and conduct principles that must be observed during the reporting period. by public sector organisations and their employees. Health and Safety The WGCMA is committed to the principles of equal The Board complies with the provisions of the Occupational employment opportunity (EEO). Health & Safety Act 1985 and is committed to providing and maintaining a safe work environment that does not pose Employment decisions are based on merit where employees health and safety risks to employee, visitors and volunteers. are treated fairly and reasonably and have appropriate venue There was 1 notifiable incident reported to the Victorian to redress against any unfair and unreasonable treatment. Workcover Authority resulting in 5 hours lost time during the The WGCMA recruits, promotes and trains employees on reporting period. the basis of merit and open competition without prejudice or O.H. & S. Committee discrimination. 6 Meetings Freedom of Information F. Donohue (Chair) P. Taylor In the reporting period there were no requests for M. Gibson B. Skewes information. Workplace representatives from Leongatha Depot, Cowwarr The Authority is considered to be a “Government Agency” Depot, Maffra Depot, Yarram Depot, Leongatha Office and under the terms of the Freedom of Information Act 1982. Landcare. There is also a representative from the employer. Accordingly, it is required to comply with the procedures that Whistleblowers Protection Act have been prescribed under which members of the public There have been no disclosures made to the WGCMA and may gain access to information held by agencies. A decision no disclosures referred to the Ombudsman. Nor have there to release information is made by either the Principal Officer been any disclosures or referrals by the Ombudsman. or an Authorised Officer. The Whistleblowers Protection Act 2001 came into effect on Information Retained and Available 1 January, 2002. The Act is designed to protect people who Information relevant to Financial Reporting Direction 22 of disclose information about serious wrongdoing within the the Financial Management Act 1994 is held at the Authority’s Victoria Public Sector and to provide a framework for the office and is a available on request, subject to the Freedom investigation of these matters. of Information Act 1982 and Privacy Act 2000. The protected disclosure co-ordinator for the WGCMA is our The Information Privacy Act 2000 establishes a regime for Business Manager, Kaye Fox Disclosures of improper the responsible collection and handling of personal conduct by the WGCMA or its employees may be made to information in the Victorian public sector. The Authority the following: complies with the 10 Information Privacy Principles. Further Kaye Fox: Protected Disclosure Co-ordinator information is available at the Privacy Victoria website West Gippsland Catchment Management Authority www.privacy.vic.gov.au P.O. Box 1374 TRARALGON 3844 Building Act Compliance Telephone: (03) 5175 7800 Fax: (03) 5175 7899 The WGCMA has met its obligations under the Building Act Email: [email protected] 1993 for new and existing buildings. The Ombudsman Victoria National Competition Policy Level 22, 459 Collins Street Competitive neutrality is a guiding principle of the MELBOURNE 3000 National Competition Policy. It requires that Telephone: 9613 6222 Toll Free: 1800 806 314 Government owned businesses should compete with
17 3West2 Gippsland Catchment Management Authority
Cultural Diversity, Women, Youth and Indigenous Affairs West Gippsland Catchment Management Authority has continued a number of initiatives to provide support to cultural diversity and the involvement of women, youth and the indigenous community in our activities.
Specific examples of progress during 2004/2005 include: • Endorsement of a framework to guide our indigenous partnership activities. In addition, both Native Title and Cultural Heritage Training have been undertaken by most CMA staff and Board members. A regional forum “of the elders” has also been held and this will form the basis of an Indigenous Advisory Group to the CMA, an agreement/protocol for program activities within the region as well as employment opportunities.
This will continue the CMA’s commitment to ongoing engagement with indigenous groups in the region to engage in catchment management activities. • Continued support for Waterwatch and Junior Landcare which actively engages the youth of the region in environmental education and participation. • The active recruitment of women to our Implementation Committees and Portfolio Groups. • The continued recognition of people and communities as an asset class within our Regional Catchment Strategy.
The ongoing implementation of the Regional Catchment Strategy and the work of the Partnership Development Unit within the WGCMA will see these linkages further strengthened.
Statement of Workforce Data The Authority employed 86 people in 2004/2005, compared to 77 people in 2003/2004. The breakdown of staff for the Authority in 2004/2005 is as follows:
2004/2005 2003/2004
Executive Officers (salary greater than $120,000) 1 1 Senior Management (salary less than $120,000) 4 6 Administration staff 6 5 Finance staff 4 4 Operational staff 71 61 TOTAL NUMBER OF STAFF 86 77 TOTAL NUMBER OF FULL TIME EQUIVALENT 73.37 69.1
Male 43 40 Female 43 37 TOTAL 86 77
Summary of Financial Results The financial result for the year is in line with our expectations. The increase in funds received on previous years can largely be attributed to funds received through the White Paper environment contribution and funds being held on behalf of the Department of Sustainability and Environment for the Bushtender and Carbon Tender program. The latter has contributed to approximately $700,000 to our surplus for the year. The remainder of the surplus relates to funds being received late in the financial year because of our extended investment planning process.
2000/01 2001/02 2002/03 2003/04 2004/05
Income 9,221,888 8,605,053 9,230,954 14,833,86320,452,282 Expenditure 7,160,727 8,033,935 9,467,711 13,509,85418,339,532 Surplus 2,061,161 571,122 (236,753) 1,323,2972,112,750
18 Governance
Report Against Corporate Plan Targets As part of the development of the Strategic Plan we have identified seven key areas of focus under which we have identified a number of strategies. To assist in ensuring the Board and Staff have a clear understanding about what is to be achieved in each financial year in relation to the Strategic Plan an Action Plan for the specific financial year is prepared and progress reported on a quarterly basis as the year progresses. This Action Plan was detailed in full in the Corporate Plan approved by the Minister. During the year there were no significant events on issues that impacted on our ability to undertake the requirements of this action plan. The table below provides a summary of the achievements for 2004/2005. 3
Meeting our Statutory Requirements
Action to Support Strategic Plan Target/Measure Comment
Launch Regional Catchment Launch in July 2004. Successfully launched on Strategy. 17 September 2004.
Ensure finalisation and Ministerial Lodged with the Minister Regional River Health signoff of Regional River Health by end September 2004. Strategy endorsed by the Strategy. Board in January 2005 and is awaiting Ministerial endorsement.
Implement the outcomes of the New flood levels declared Process agreed by both Gippsland Lakes Flood Level by March 2005. CMA Boards. Levels are still Modelling Project. to be declared.
Environmental flow determination Project scoped and Commenced in October for Latrobe River and associated commenced by September 2004. wetlands. 2004.
Ensure effective delivery of 24km Exotic vegetation 100% completed. 2004/2005 Stream Restoration removed, 50km riparian Program in South Gippsland Basin. fencing, 50 km revegetation.
Implement works under White Paper Thomson Dam – 30km Completed. initiative for Thomson River. indigenous vegetation protected and enhanced.
Lower Thomson – 5km Completed. bank protection.
Heyfield wetlands – 10ha Completed. wetland enhanced.
19 3West2 Gippsland Catchment Management Authority
Delivering on our Co-ordination Activities
Action to Support Strategic Plan Target/Measure Comment
Develop a strategic Community Develop and implement at Two canoe tours completed Education Program for Waterwatch. least 2 major events per and two “catch a carp” days year. conducted.
Finalise the development of the Plan sent to the Minister by Plan endorsed by Board and Salinity Management Plan. December 2004. forwarded to Minister.
Review and develop West Gippsland Submit Plan to DSE by Gippsland Water Quality Water Quality Management Plan. October 2004. Action Plan endorsed by Board and forwarded to DSE.
Review and promote Landcare Review completed by May Review completed. Support Strategy. 2005.
Facilitate and assist the Lead and facilitate the Participation in the development of new wetland establishment of at least development of three proposals and the rehabilitation of one wetland per annum. wetlands. existing ones.
Providing Support in Our Region
Action to Support Strategic Plan Target/Measure Comment
Facilitate a stormwater workshop for Workshop held by March Meeting with Shires and EPA local councils. 2005. held in March 2005 and three workshops being planned for Sept 2005.
Develop a regional policy framework Workshop by October Workshop held on 26 for the support of seedbanks. 2004. October, 2004.
Draft policy by January A paper detailing the issues 2005. was prepared and needs analysis is now being undertaken.
Co-ordinate the review of the MID Complete review by Review completed. NRP. October 2004.
20 Governance
Influencing Our Operation Environment
Action to Support Strategic Plan Target/Measure Comment
Develop and deliver on agreed Fishing Complete delivery of Projects completed. Funds projects. 2003/2004 projects by December 2004.
Complete delivery of Two projects completed one 2004/2005 projects by commenced. June 2005. 3 Finalise and implement Traralgon Ratification of Plan Plan incorporated in NEIP. Creek Action Plan. through NEIP process with Latrobe City Council by December 2004.
Commence Was commenced. implementation of Plan by March 2005.
Participate in Marine and Coastal Plans aligned with RCS Participated in workshops Parks Management Plan development. and RRHS. and provided input.
Provide the necessary input in to the WGCMA position Position paper prepared and major recycling feasibility study developed by March lodged. outlined in the White Paper. 2005.
Maintain, develop and implement Review the Charter by Charter ratified at December community focus of Regional November 2004. forum and received Board Landcare Forum. endorsement in February 2005.
Engaging Our Community and Regional Stakeholders
Action to Support Strategic Plan Target/Measure Comment
Review and update Implementation By December 2004 Review complete and Committee Charter. Charter updated.
Development of Local Government Scope endorsed by Presented and endorsed by Engagement Strategy and commence Board in August 2004 Board implementation.
Examine ways of working with EGCMA Water Quality position Joint position filled. more efficiently. advertised and filled by September 2004
Other areas of Have agreed to share four collaborating agreed by other positions. October 2004
Complete Communication Strategy. Completed by Strategy endorsed by Board. September 2004
Endorsement of Indigenous. Endorsed by Board by Board endorsed policy in Engagement Policy. September 2004 November.
21 3West2 Gippsland Catchment Management Authority
Developing a Capable and Caring Organisation
Action to Support Strategic Plan Target/Measure Comment
Review office and depot requirements Review completed by Report completed in to ensure that they are located to September 2004. December 2004. maximise outcomes.
Review Strategic Plan in view of the Completed by November Revised Plan was endorsed White Paper. 2004. by the Board in November.
Establish and implement the 04/05 Completed by 30 June Completed 13 out of 16 policy and procedure development 2005. reviews. program.
Address issues from Annual Audit Ensure all issues Completed 101 of 120 Plan and report. identified are addressed actions. within specified timeframes.
Developing and Resourcing the Investment Plan for the Region
Action to Support Strategic Plan Target/Measure Comment
Review, refine and implement RCIP Review by August 2004. Review conducted. process. Submit RCIP by due date. Achieved.
Report to Board on outputs of RMP. Quarterly reports Axapta to produce in provided to Board. 2005/2006.
Engage with key State and Federal Funding application for Achieved. contacts for flood mitigation and flood one priority area study funding. submitted by November 2004.
Engage and build relationships with Two workshops to Multiple meetings held with NHT program leaders at State and discuss regional issues NHT and State investors. Federal level. and investment opportunities.
22 Governance
Disclosure Index The 2004/05 Annual Report of the West Gippsland Catchment Management Authority is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the authorities’ compliance with statutory disclosure requirements.
FRD Disclosure Page3 22 Manner of establishment and the relevant Ministers 17 22 Objectives, functions, powers and duties 11-13 22 Nature and range of services provided 11-13 22 Organisational structure, names and functional areas of responsibility 26 & of senior officers 24-17 22 Names of board members (major committees - objectives and achievements can be here or in a statement of further info available- see note below) 15 22 Statement of workforce data for current and previous financial year 18 22 Merit and equity 17 15 Executive officer disclosures 59 22 5 year summary of the financial results 18 22 Significant changes in financial position during the year 18 22 Objectives and performance against objectives 19-22 22 Major changes or factors affecting performance 19 22 Subsequent events which will affect operations in future years 58 22 Details of consultancies > $100,000 17 22 Details of consultancies - total No. and cost < $100,000 17 12 Disclosure of major contracts 17 22 Application and operation of FOI Act 1982 17 22 Application and operation of the Whistleblowers Protection Act 2001 17 22 Compliance with building and maintenance provisions of Building Act 1993 17 22 Statement on NCP 17 22 OHS 17 10 Disclosure index 23 22 Statement of availability of other information* 17
23 4 Section 4 Management Management structure
24 Chief Executive Officer Executive Assistant Geoff Hocking
Corporate Services Finance Team Leader HR Team Leader Manager Risk Management Team Leader Kaye Fox GIS/CAMS Co-ordinator
RCS Project Officer Partnership Development MERGe Project Leader 2 Community Development Officers Manager Strategic Natural Resource Management Co-ordinator Martin Fuller Regional Landcare Co-ordinator 4 Landcare Networks Regional Waterwatch Co-ordinator
River Health Project Officer Water Reform Officer Environmental Water Resources Officer Biodiversity, Conservation & Bushcare Officer Integrated Catchment Salinity & Nutrients Officer Manager Gippsland Floodplain Officer Wayne Gilmour Rural Drainage Officer Gippsland Water Quality Officer Gippsland Statutory Planner
Project Management Co-ordinator Yarram Supervisor - Operations Manager South Gippsland Supervisor Mal Gibson Cowwarr Supervisor Maffra Supervisor
25 4West2 Gippsland Catchment Management Authority
Integrated Catchment Unit The first full year of restructured natural resource The Corporate Services Unit comprises the planning and management arrangements within the following functions: WGCMA saw the attainment of several major achievements and substantial progress in a number of Finance: other areas. Financial management, responsibility for the Authority’s business services, reporting and analysis. Of particular note was the completion, to draft stage, awaiting final Government approval, of the River Health Risk: Strategy, the Gippsland Water Quality Plan, the Salinity Business risk including occupational health and safety, Management Plan, several Bioregional Biodiversity building services and asset management Action Plans and Environmental Flow Operating Strategies for the Thomson and Macalister Rivers. A Human Resources: number of smaller studies, such as the Woranga Organisational behaviour, recruitment, personnel and Waterway and Drainage Study, a review of the payroll Macalister Irrigation District Nutrient Reduction Plan, a Groundwater Flows Study and the Tarra River Surface Information Management: Water/Groundwater Interaction Study, were also Corporate administrative support, customer enquiries, completed. library, information technology and Geospatial Information System. Work has commenced on a Regional Wetlands Plan and studies for the development of a Macalister River The WGCMA has given greater emphasis this year on Floodplain Management Plan and a Latrobe River our Risk Framework. A Risk Team Leader has been Environmental Flows Plan. appointed and a risk register has been established. The Authority has also undertaken the following audits as The Unit worked closely with the East Gippsland part of its internal audit program: Catchment Management Authority to develop collaborative management arrangements and the two • Asset management and maintenance policies organizations now share a Gippsland Floodplain Officer, and procedures review. a Gippsland Water Quality Officer, a Gippsland Statutory • Occupational health and safety management Planner and a Rural Drainage Officer. These officers are framework review. line-managed through the WGCMA but operate, via a • Financial and project management system Service Agreement, across the whole of Gippsland, review. from Warragul to the NSW border. • Financial compliance framework compliance audit.
Corporate Services Unit Another key piece of work has been the implementation of our Information Management Strategy which was The Business Unit was restructured at the beginning of finalised last year. The Authority has implemented an this year, as part of an organisational restructure, and Information Management Policy, undertaken a data renamed the Corporate Services Unit. management strategy and undertaken a tender process to select and deliver an electronic document management system.
26 Management
Partnership Development Operationally we have a key vision to protect areas of high value, maintaining river reaches that are presently Unit in an ecologically healthy condition while working The West Gippsland Catchment Authority’s Partnership toward an overall improvement to both water quality Development Unit (PDU) is a diverse group that covers and habitat value in our river systems across the region. a wide spectrum functions within the organisation. Programs are coordinated across the region using the A major focus of the unit is the establishment and boundaries of the three river Basins that make up the maintenance of critical alliances and partnerships. West Gippsland Catchment region. 4 These include strong community links through Landcare and Waterwatch. The WGCMA also supports three Funding for works has been derived from a number of Implementation Committees and four Portfolio Groups sources, but predominantly through catchment that provide community-based strategic advice and investment via the Healthy waterways program and direction to the WGCMA Board and staff and ensure White Paper Initiatives. Landholder partnerships do and that natural resource management outcomes are closely will continue to be a significant contributor to the entire linked to community expectations. This is further program. A partnership approach involving the supported by the unit hosting the support base for the community, environmental groups, landholders and Gippsland Integrated Natural Resources Forum (GINRF). government agencies allows for the coordinated effort that continues to be required to achieve the complex The PDU also plays a very important role in coordinating goals and actions identified as operational outputs. working relationships with, and securing investment from, both State and the Australian Government Overall achievement for the period has resulted in the through the region’s integrated investment process completion of 83km of steam restoration being known as the Regional Catchment Investment Process completed including the construction of 60km of (RCIP). The PDU is responsible for coordinating this fencing and the planting of 120000 trees. A high light process on behalf of the region. being the completion of willow reduction works to a 27km section of the upper Macalister above and below Underpinning the PDU’s activities and direction is the Licola. Regional Catchment Strategy. Its renewal and rollout are a major body of work undertaken through the Unit. Operations Unit The focus of the Operations unit is to provide on ground project outcomes for the Authority, aimed predominately at improvements to water quality and river health within the West Gippsland Catchments.
Works are prioritised under a number of action plans developed under the direction of the Regional Catchment Strategy. The West Gippsland River Health Strategy is the key plan, which focuses on the protection of the best environmental, social and economic river assets.
27 5 Section 5 Catchment Condition RCS/RCIP Update
28 As mentioned earlier in the Annual Report the West Gippsland Regional Catchment Strategy was launched and endorsed by the Minister in September 2004. The Regional Catchment Strategy identifies seven asset classes where the region will try to influence catchment management in West Gippsland.
Our annual investment plan is based around these asset classes and our achievements in each of these areas in 2004-2005 are detailed below. It should be noted that in the last financial year the region did not have any projects focussed on the Infrastructure Asset Class.
Hanna Wardell (Deputy Chair) Sen Judith Troeth and John Thwaites, Minister for Water at the launch of the West Gippsland Regional Catchment Strategy
29 5West2 Gippsland Catchment Management Authority
Water
Summary of Asset The Water program is driven by the follow aspiration which emerged as part of the RCS development:
Catchments treated with respect, and the use of water for production, consumption and waste disposal balanced with the needs of the environment, the outcomes being healthy river systems and coastal waters.
The program includes all those projects which seek to protect and improve the region’s water asset class. It is structured to align with the West Gippsland Regional Catchment Strategy and River Health Strategy and the Victorian Governments White Paper Securing Our Water Future Together.
Summary of Highlights The WGCMA is working towards protecting and improving this asset primarily through large scale river restoration work across each of the three river basins. This includes a variety of on-ground programs across the three river basins and the development of strategic planning documents including the regional River Health Strategy, Water Quality Plan and Operating Strategies for the management of the environmental water reserve along the Thomson and Macalister Rivers.
Significant investment has been placed in this asset class through the Regional Catchment Investment Plan. Projects and their achievements are outlined below.
30 Catchment Condition
Project Proposed Outputs Achievements
Regional River This project sets the strategic Board endorsed version of the RHS Health Strategy priorities for investment in river submitted to the Minister for Environment (RHS). health related activities across West for final endorsement. Gippsland. The Strategy has guided the development and Development of RCIP project bids for implementation of all other projects stream restoration projects based on RHS within the Water Asset class. priorities. 5 Stream Restoration This project contributes towards the 36km of exotic vegetation removed. Projects (Thomson, outputs identified in the RHS for Latrobe, South priority rivers across the three river Gippsland). basins. Improvements to river health are achieved through the removal of exotic vegetation, revegetation with indigenous 72km of riparian land fenced and vegetation and fencing to eliminate revegetated with indigenous vegetation. cattle access and in-stream stabilisation works to bed and banks.
Thomson Macalister This project aims to complement 30km of remote exotic vegetation removal Rivers – Repairing our environmental water reserve (upper Thomson). the Damage. management role along the 32km of exotic vegetation maintenance Thomson and Macalister Rivers (upper & middle Macalister). through improved riparian corridors 6km of exotic vegetation removal (middle and in-stream health. In addition to Macalister). on-ground works feasibility 18km of riparian revegetation (upper & investigations and studies and the middle Macalister). development of monitoring 12km of fencing (middle Macalister). programs are planned to inform 5km of bank stabilisation and remnant future works. protection (lower Thomson). 10ha of Wetland enhanced (Heyfield). Recreational Fishing access investigation along the Thomson & Macalister rivers, Development of a community river health monitoring program. Feasibility study for the Heart Morass. Commenced the development of the Wetland Plan.
Traralgon Creek This project aims to improve the 12km of exotic vegetation removed. Riparian health of the riparian corridor along 24km of riparian land revegetated with Improvement. the Traralgon Creek. indigenous vegetation. 24km of fencing established.
31 5West2 Gippsland Catchment Management Authority
Project Proposed Outputs Achievements
Tarra River – South This project aims to maintain and 6km of exotic vegetation removed. Gippsland’s improve the representative and 12km of riparian land revegetated with Representative River. ecologically healthy values of the indigenous vegetation. Tarra River as identified in the 12km of fencing established. Victorian River Health Strategy and the West Gippsland RHS. This will be achieved through improvements to riparian vegetation, in-stream habitat and fencing to exclude stock access to the river.
Recreational Fishing This project aims to improve Improved access to the Morwell River at Enhancement recreational fishing access and Apex and Primrose Parks. Project. facilities across West Gippsland. Preliminary design and planning for boardwalks along the Tarwin River including community consultation.
Water Quality Plan. This project identifies those riverine The WGCMA board endorsed Gippsland reaches with water quality issues Water Quality Action Plan has been and sets targets for management submitted to DSE River Health for approval. actions to improve the identified This represents the culmination of several priority reaches. years of investment and work within the region.
Management of the This project provides resourcing for Completion of the Operating Strategy for the Environmental Water the implementation of the Thomson and Macalister Rivers. Reserve. Environmental Water Reserve Submission of the bulk entitlement (EWR) and achievement of the application for the Thomson River. responsibilities associated with the Commenced the development of a operational management of the monitoring program for the Thomson and EWR as defined in the Victorian Macalister Rivers. Government White Paper ‘Securing Commenced the environmental flow Our Water Future Together’ assessment for the Latrobe River. Commenced the development of new guidelines for the development of Stream Flow Management Plans. Continued development of the Yarram Groundwater Management Plan.
32 Catchment Condition
Land
Summary of Asset The Land program includes all those projects that seek to protect and improve the regions land asset class. The Land program has strong links to all other programs and projects and reflects the integrated nature of natural resource management in the West Gippsland region. The strong economic, social and environmental benefits of our land assets include the rich soils in the landscape that support highly productive agriculture and horticulture. Mineral and energy resources include coal, gas and oil and the landforms contain materials such as gravel, sand, rock and clay. The landscape5 amenity is highly valued particularly the diversity of rural and natural landscapes from the alpine meadows, mountainous forested wilderness, rainforests, lowland wetlands to the estuaries and coasts.
The Floodplain and Drainage program is a key component of this Asset Group and the CMAs core statutory functions. The program is driven by a Regional Floodplain Management Plan (Dec. 2000) and Regional Drainage Plan (Dec. 2000) and primarily affects land prone to riverine (urban and rural), localised rural flooding and rural drainage areas.
Summary of Highlights Highlights of the Land Program in 04/05 are well represented in the success of the Salinity, Gippslandcare, Pest Plant and Animal and Soil projects. The integrated approach across all projects has resulted in increased community education and understanding of natural resource management issues and mitigation methods. There has been on-ground practice change achieved through revegetation and weed control activities. Our technical knowledge about salinity management has increased with the completion of the West Gippsland Salinity Management Plan that has resulted in a targeted salinity management program.
Of significant note is the completion of the Gippsland Lakes Flood Level Modelling Project which resulted in new flood level estimates for the Gippsland Lakes system. The project was a joint venture between East and West Gippsland CMA and a number of other stakeholders. It is of significant benefit for land use and emergency management planning for the Gippsland Lakes area.
Project Proposed Outputs Achievements
Completion of the Stakeholder consultation Final version of the West Gippsland Salinity West Gippsland undertaken to review and advise Management Plan endorsed by the CMA Salinity Management on management actions within Board. Plan. the action plan. Drafting of final version of the plan.
The dryland salinity Report and mapping of ground Groundwater flow systems report complete project commenced the water flow systems with and presentation of the document made to implementation of the recommended future dryland interested stakeholders. five year road map to salinity actions. Urban salinity report finalised and forwarded investigate the extent of The extent and significance of to local government authorities the dryland salinity urban salinity reviewed and Bore monitoring analysis produced problem and produce a appropriate management options Report developed on the appropriate salt management and determined. tolerant crops and pastures for rehabilitating extension program to Monitoring of the dryland salinity saline land. mitigate the emerging bore network in Sth Gippsland. issue. Review of past salt tolerant pasture trials to establish future management recommendations for living with salt options.
33 5West2 Gippsland Catchment Management Authority
Project Proposed Outputs Achievements
The irrigation salinity Safe salinity model created that 276 farmers engaged in capacity building project focus is on determines soil and pasture activities. community education to effects of irrigating with saline 2 irrigation efficiency courses run. improve irrigation water. A calibrated model that can Safe salinity model created. efficiency to reduce the be used to determine the soil impact of salinity. The salinity and pasture effects of project has increased irrigating with saline water. technical knowledge of Community capacity building irrigation salinity issues undertaken through a series of to support the field days, landholder enquiries extension program. and irrigation efficiency courses.
The investigation and The project targets high value The installation of two ground water pumps installation of land experiencing significant loss completed. groundwater pumps to of production due to the impacts One investigation for the establishment of a control irrigation salinity of salinity. The program consists new groundwater pump finalised. are supported by a of an initial investigation prior to technical working group consideration of installation of a and community pump. committee
The soil management Engage the community in Four Whole Farm Plan courses run that program in 04/05 improved whole farm planning engaged 51 landholders. delivered whole farm courses and targeted soil Soil extension advice provided to 40 planning courses extension activities. landholders. throughout the region Scope of Soil Health Strategy developed. and has started the process for determining a targeted approach to erosion control. The soil extension project responds to community requests for soil management advice and has scoped a management plan to develop a targeted soil health strategy in 05/06.
34 Catchment Condition
Project Proposed Outputs Achievements
Gippslandcare On-ground works and community A total of 270 projects completed aimed at supported 300 education to address controlling controlling soil erosion, decreasing nutrient landholders to deliver soil erosion, decreasing nutrient run-off, reducing the impact of salinity, on-ground land run-off, reducing the impact of improving pasture production and repairing management practice salinity, improving pasture our waterways. 407,000 seedlings were change. Gippslandcare production and repairing our planted, 90ha of land was direct seeded represents four waterways. using 167kg of indigenous seed and 5 Landcare networks 202,302 km fencing was erected. encompassing 80 9 field days. Landcare groups and 3 training events. 4000 farming families.
The Pest Plant and The project responds to Rabbit control in coastal plains in Animal project has two landholder enquiries and conjunction with 74 landholders. Monitoring aspects of promotes education through and evaluation through two surveys with implementation. A awareness raising activities such Landcare groups. Incentives for pest community based as training and field days and the control assessed and distributed. project that responds to production of educational landholder enquiries material. and promotes education through awareness raising activities such as training and field days and the production of educational material.
The pest, plants and Compliance, extension, treatment Extension and compliance work completed animals compliance and and eradication activities across on 42 properties for priority weed control. 24 extension project is priority pest plant and animal statewide prohibited weed sites treated. 13 focussed on targeted infested areas. Good Neighbour projects completed. Phase weed control with an 1 of Noxious weed review completed. emphasis on weeds Wild Dog Action Plan launched. 127 listed as noxious and properties with high priority pest infestations those identified in Local inspected. Fox target zones engaged via Weed Plans. phone contact, mail outs and bait sales.
Macalister River `Delivery of flood planning maps Project to be delivered during 2005/06. Flood Study. and risk assessment for the Macalister River downstream of Lake Glenmaggie to the Thomson River confluence.
35 5West2 Gippsland Catchment Management Authority
Biodiversity
Summary of Asset The Biodiversity program in West Gippsland encompasses all those projects that aim to protect, enhance and restore the regions biodiversity asset class. The Biodiversity program works closely with the land and water asset classes to achieve multiple outcomes in natural resource management. There are six terrestrial and five marine bioregions within the West Gippsland boundaries extending from the Alps bioregion to the Twofold Shelf marine bioregion. The West Gippsland region is home to a number of nationally and state listed threatened and endangered species. The main threats to biodiversity in West Gippsland are land clearing, habitat fragmentation, invasion of pest plant and animal species and the inappropriate use of our natural resources.
Summary of Highlights Stage One of the Noxious Weed Review was completed in early 2005. Stage One of the review focused the 101 currently declared noxious weeds for the West Gippsland. A steering committee assessed the currently declared weeds and determined a ranking for them in line with the definitions in the Catchment and Land Protection Act 1994. Following the steering committee’s assessment the list was distributed for public comment. The list is currently awaiting endorsement from the Minister before moving into Stage Two of the review.
2004 / 2005 saw the completion of 9 Landscape Zone - Biodiversity Action Plans for the Gippsland Plains Bioregion. Plus the Strategic Overview for the Strzelecki Bioregion was also completed in 2004 /2005.
The CMA held a forum for the regions Seedbanks in October. The forum was the first step in developing a regional network of Seedbanks. It was the first time that the key stakeholders were together to discuss issues, share ideas and plan for the future. The forum was well attended and a number of key actions are currently being followed up by the CMA.
Project Proposed Outputs Achievements
Native Vegetation Strategic Pilot project using GIS to locate 20 hectares have been mapped. Investment Project focussed potential sites for revegetation within Potential revegetation sites have on the implementation of the the Macalister Irrigation District. 53 been located, mapped and site Native Vegetation Plan as hectares mapped. management plans developed for well as coordinating each site. Project is continuing into biodiversity projects for the 2005 – 06. region. Reconciling endangered and Endangered and rare ecological threatened ecological vegetation vegetation classes for the Latrobe classes with property owners to City have been identified. Contact target remnant protection projects. made with landowners through an 594 hectares mapped. information pack. 120 hectares mapped. Over 20 site visits were conducted focussing on management actions to protect threatened or rare vegetation. Project continuing into 2005-06.
4 Media releases. 4 Media releases produced.
36 Catchment Condition
Project Proposed Outputs Achievements
Protect, Enhance & Restore 138 people to receive information on 440 people undertook training and is delivered by Greening remnant vegetation protect and to education on managing remnant Australia. The project undertake education and training on vegetation. focussed on delivering on managing remnant vegetation. ground outcomes and capacity building. 12 Media articles to raise awareness 20 Media articles generated to raise on remnant vegetation protection. awareness on remnant vegetation 5 Ensure 2 landowners covenant 50 management. hectares of remnant vegetation 7 sites covering 123 hectares have through Trust for Nature. been approved and the covenanting process is progressing.
130 hectares of priority vegetation to 350 hectares of priority vegetation be fenced. has been approved for fencing.
25 hectares of priority vegetation to 25 hectares of revegetation works be enhanced through revegetation. have been approved.
Regional Remnant Protect 4 capacity building activities on the 5 capacity building activities were and enhancement program importance of remnant vegetation. conducted in the form of field trips. was delivered by Trust for Nature focussing on 25 visits to landholders to improve 25 visits to landholders were permanent protection of land management. conducted, site management plans remnant vegetation. were developed to improve land management techniques.
350 hectares of vegetation under 250 hectares of remnant vegetation permanent protection. have begun the process for covenanting their land (this process can take up to 2 years).
Nationally Threatened 84 sites to be surveyed, mapped and 82 sites were surveyed and Species Project focussed on decision support tools to be mapped. data collection, protection developed. and the development of recovery plans for the 10 recovery plans to be implemented. 9 recovery plans were nationally threatened species implemented. that occur in West Gippsland. Conduct ecological burns on 150 Ecological burn has been hectares of suitable habitat. postponed to 2005 – 06 due to unforeseen circumstances.
60 hectares of weed control. 60 hectares of weed control in priority areas was conducted.
37 5West2 Gippsland Catchment Management Authority
Atmosphere and Climate
Summary of Asset The Atmosphere and Climate Program is driven by the following aspiration which emerged as part of the RCS development:
Innovative clean industries adding value to our resources, reducing Australia’s contribution to greenhouse emissions and climate change.
It includes: • Rainfall • Climate • Air Quality
Summary of Highlights The Atmosphere and Climate asset class is an emerging asset class that is gaining increased focus. Whilst no direct investment was provided through the Regional Catchment Investment Plan, the WGCMA in partnership with the and local Government was successful in developing and attracting investment in a pilot project called “Climate Change Impacts and Adaptation in Gippsland” funded through the Department of Sustainability and Environment’s Victorian Greenhouse Policy Unit.
Project Proposed Outputs Achievements
Climate Change Impacts and This project sets out to understand the Project to be delivered during the Adaptation in Gippsland. potential impacts of climate change on 2005/2006. the Gippsland region, to explore the current understanding of adaptation to climate change across the region, and to lay the groundwork for possible responses.
38 Catchment Condition
People and Communities
Summary of Asset The People and Communities Program is driven by the following aspiration which emerged as part of the Regional Catchment Strategy development:
Cohesive, liveable communities respecting cultural heritage both ancient and contemporary, supported by diverse and resourced based enterprises, invigorated by visitors and new residents, with strong networks of informed and skilled5 people who care for our communities and nature.
It includes: • The region’s community centres • Community based Environment Groups such at the region’s 71 Landcare groups, Coastcare Groups and Trust for Nature • Educational bodies such as Monash University, Churchill Campus and the Institute of Land and Food Resources, Melbourne University McMillan and Warragul campuses. • The region’s heritage areas and locations such as Jack Smith Lake, and Knob Reserve Port Albert, Long Jetty at Port Welshpool, Walhalla Historic Area, Wonthaggi State Coal Mine
Summary of Highlights The WGCMA is working towards protecting and improving this asset primarily through its partnership activities. This includes supporting community driven initiatives such as Waterwatch, Coastcare, Landcare and the Gippsland Integrated Natural Resources Forum.
Significant investment has been placed in this asset class through the Regional Catchment Investment Plan. Project and some achievements are outlined below.
Project Proposed Outputs Achievements
Gippsland Integrated This project supports the Gippsland Successful production of the Natural Resources Forum. Integrated Natural Resources Forum Natural Resources Report Card (GINRG) which oversees the 2005. production of the annual Natural Resources Report Card, facilitates Successful conference held regional NRM workshops and hosts a regional conference. Progress towards regional partnership projects: Regional Sustainability Covenant project and Climate Change impacts and adaptation project.
Coast Action/Coastcare The project supports the development 30 Coastcare Groups supported On-ground Works. of Coast Action/Coastcare in the region through the employment of a through the employment of Facilitator, Coastcare Coordinator. providing for the continuing engagement of volunteers working in 50 Community events held over 30 coastal community groups. attended by over 3000 people.
12 Coastal restoration projects undertaken by community groups.
39 5West2 Gippsland Catchment Management Authority
Project Proposed Outputs Achievements
Supporting Landcare This project supports volunteer 8.5 FTE Coordinators and Networks in West Landcare Networks and groups to Facilitators have supported and Gippsland. deliver healthy landscapes and assisted 71 group and four sustainable communities throughout Landcare Networks to: the WGCMA region. The project will • Develop 22 Landcare Action Plans also increase community capacity to • Secure over $500,000 worth change and sustain community led of funding for on-ground developments in NRM by increased work through Evnvirofunds. networking, building local leaders and • Run 9 major events improving partnerships. • Supported region-wide Landcare project that has delivered the protection of 76 ha. of riparian vegetation and 76 ha. of erosion remediation.
Monitoring Evaluation and This project extends the work of Project Monitoring Evaluation and Reporting for Gippsland's MERGe, a partnership project Reporting (MER) Framework Natural Resources. completed during 2003/2004 across developed. West and East Gippsland CMA regions. This project will support the Action Plan MERs to be implementation of the Monitoring, developed during 2005/2006. Evaluation and Reporting Framework by facilitating regional partners' use of, and input to, the Framework.
Regional Catchment This project will assess the status of WGCMA is actively working with Strategy Targets. resource condition and management both State and Commonwealth targets in existing action plans and partners to help develop a those under development against the National Monitoring and regional needs identified in the West Evaluation Framework. Gippsland RCS. The project has seen the development of a database to identify key targets to use to measure resource condition change into the future.
Regional Catchment Refinement and implementation of the West Gippsland Regional Strategy - Communication RCS Communication Plan to ensure Catchment Strategy successfully Plan. that a range of stakeholders launched during July 2004. understand their roles in implementing the RCS and supporting action plans, Regional Catchment Strategy investing in the RCS, informing the briefings of a broad range of ongoing review and refinement of the stakeholders has been ongoing RCS including targets and reporting on through out the 2004/2005 year. the achievement of targets in the RCS.
West Gippsland The West Gippsland Waterwatch Through the employment of Waterwatch. program provides innovative education 3.5FTE Waterwatch Coordinators programs for over 80 schools across and Facilitators community the region and equips over 100 ownership of water quality and motivated volunteers and community river health monitoring has been groups with the equipment, skills and strengthened. During 2004/2005 knowledge to monitor the health of their Waterwatch: waterways. Waterwatch contributes to • Worked with 40 community the development of a better informed groups that monitors over. and environmentally conscious 100 sites throughout the region community prepared to support • Worked with 80 schools. regional Natural Resource Managers • Ran four major Waterwatch efforts for an improved environment. events that attracted over 2000 participants.
40 Catchment Condition
Production
Summary of Asset Production is the foundation of the West Gippsland economy. The Production program includes all those projects that seek to protect and improve the region's production asset class. Production is an asset class that is a major contributor to the community and a significant user of natural resources. Production is an asset class that we aim to support in order to make it more ecologically sustainable than it currently is. Whilst there are only a small number of projects depicted in this program, it is expected that with further development of the RCS and ongoing recruitment of investors, that the links to other programs will be strengthened and formalised. 5 Summary of Highlights Supporting the Production program is the integrated Effluent Management and Nutrient and Sediment Reduction projects. These projects achieved significant contact with over 300 landholders and over 100 industries to assist them with improved production practices. Both projects are supported by a strategic approach to education and capacity building so that long term change is achieved.
Project Proposed Outputs Achievements
A compliance focus in the The project proposed to undertake 300 345 dairy farms audited and Effluent Management audits on dairy farms across West follow-up site visits conducted project ensures that Gippsland. A major awareness raising through the nutrient reduction landholders meet legislative campaign supported the project in the Water program. requirements for effluent implementation of this project to inform Landholders received educational management. landholders of their legislative materials at field days, on-site requirements for effluent management. and through the media. A database was also developed to record, monitor and assess project achievements.
The Industry and commercial Shire Stormwater Management Plans 137 stormwater pollution issues Nutrient and Sediment identified areas for sediment and identified, incidents reported and reduction project targets industrial nutrient control and this project targeted premises visited. In total 86 and commercial businesses compliance and educational works in stormwater audits were to improve nutrient and those areas. completed and follow-up risk and sediment input into warning notices issued. Strong stormwater. focus on engagement with local councils and the automotive industry. Educational material developed and distributed.
41 5West2 Gippsland Catchment Management Authority
GINRF Report Card Catchment condition reporting in the West Gippsland CMA region is developed in partnership with East Gippsland CMA and other regional stakeholders as part of the Gippsland Integrated Natural Resources Forum. The Natural Resources Report Card is produced each year, featuring a diverse range of assets from the Gippsland region. Our Catchment condition reporting will be enhanced in future years with the development of the Monitoring, Evaluation and Reporting Plan for our Regional Catchment Strategy which will be in draft form by January 2006. The assets are rated both for their environmental condition and for how well government, industry and community are responding to protect and enhance these assets (stewardship). The Report Card links assets to the Regional Catchment Strategy by rating for land, water, biodiversity and air values, (resource condition) as well as considering planning, management actions & monitoring, evaluation and reporting (stewardship).
42 Catchment Condition 5
43 6 Section 6 Finances
44 45 62Statement of Financial Performance for the year ended 30 June 2005
Note 2004/05 2003/04 $ $ Revenue from Ordinary Activities 3
State Government Contributions 12,697,994 8,200,939 Commonwealth Government Contributions 5,006,389 5,157,994 Partnership Contribution 1,798,894 494,147 Investment Income 318,188 339,995 Proceeds from Asset Sales 496,130 551,940 Miscellaneous 134,687 89,848 Total Revenue from Ordinary Activities 20,452,282 14,834,863
Expenses from Ordinary Activities 4
Employee Benefits 4,287,592 3,919,678 Suppliers 12,521,365 8,773,318 Depreciation 557,815 492,537 Written down value of Assets sold 435,327 329,763 Write Off Works Structures 537,433 - Total Expenses from Ordinary Activities 18,339,532 13,515,296
Net Result for the Reporting Period 11 2,112,750 1,319,568
Total Revenue, Expenses and Valuation 2,112,750 1,319,568 Adjustments recognised directly in equity
Total changes in equity other than those resulting 2,112,750 1,319,568 from transactions with the Victorian State Government as owner
The above Statement of Financial Performance should be read in conjunction with the accompanying notes
46 Finances
Statement of Financial Position for the year ended 30 June 2005
2004/05 2003/04 Note $ $
Current Assets Cash Assets 5a 193,915 845,081 Other Financial Assets 5b 8,125,000 7,275,000 Receivables 6 3,052,117 430,787 Inventories 7 24,919 171,644 Pre-Paid Expenses 40,992 52,710 Total Current Assets 11,436,943 8,775,222
Non-Current Assets Property, Plant & Equipment 8 2,350,246 3,124,318 Total Non-Current Assets 2,350,246 3,124,318
TOTAL ASSETS 13,787,189 11,899,540
Current Liabilities
Payables 9 1,064,465 1,031,470 Employee Benefits 10 423,775 341,868 Total Current Liabilities 1,488,240 1,373,338
Non-Current Liabilities
Employee Benefits 10 250,826 204,590 Total Non-Current Liabilities 250,826 204,590
TOTAL LIABILITIES 1,739,066 1,577,928
NET ASSETS 12,048,123 10,321,612
EQUITY Contributed Capital 12 8,281,442 8,281,442 Reserves 13 3,432,317 2,145,414 Accumulated Surplus 65 334,365 334,365 TOTAL EQUITY 12,048,124 10,761,221
The above Statement of Financial Position should be read in conjunction with the accompanying notes.
47 62Statement of Cash Flows for the year ended 30 June 2004
2004/05 2003/04 Note $ $ CASH FLOWS FROM OPERATING ACTIVITIES
Receipts Government Contributions (Inclusive of GST) 17,310,705 11,991,826 Interest Received 303,909 339,995 Other Receipts 757,962 459,086 18,372,576 12,790,907 Payments To Employees (2,996,555) (2,695,170) To Suppliers and Other Payments (Inclusive of GST) (14,554,011) (8,018,108) (17,550,566) (10,713,278)
Net Cash generated from Operating Activities 14(b) 822,010 2,077,629
CASH FLOW FROM INVESTING ACTIVITIES
Payments for Non-Current Assets (1,021,000) (1,261,908) Proceeds from Sale of Non-Current Assets 397,824 551,940 Net Cash Used in Investing Activities (623,176) (709,968)
(Decrease) in Trust monies held 0 (209,371) Net Cash Generated from /(Used in) Financing Activities 0 (209,371)
NET INCREASE IN CASH HELD
Opening Cash 8,120,081 6,961,791 Net Increase/(Decrease) in Cash Held 198,834 1,158,290 Closing Cash 14(a) 8,318,915 8,120,081
The above Statement of Cash Flows should be read in conjunction with the accompanying notes
48 Finances
Notes to and forming part of the Financial Statements for the year ended 30 June 2005
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
PRINCIPAL ACTIVITIES The Authority’s principal activities are :-
Direct Service Delivery Waterway Management, Floodplain and Regional Drainage Management, Water Quality Co-ordination and Bushcare Facilitation, Funding Facilitation, Grants Administration, Landcare Support, Regional Catchment Strategy Review and Renewal, Community Engagement on Environmental Issues.
Partnership Business Department of Sustainability and Environment and the Department of Primary Industry Salinity Control, Sustainable Agricultural & Land Management, Pest Plants & Animals, Soil Health. Southern Rural Water Irrigation Management, Nutrient Management, Flow Management. Other Key Stakeholders Water Authorities, Local Government, Community Groups e.g. Landcare, Environment Protection Authority, Power Generation Companies and Other Industries.
The financial statements are a general purpose financial report prepared in accordance with the requirements of the Financial Management Act 1994, applicable Australian Accounting Standards and other mandatory professional reporting requirements.
The financial report has been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets which, as noted, have been shown at valuation. The accounting policies adopted in preparing the financial statements are consistent with previous years, except where otherwise stated.
All amounts shown in the financial statements are expressed to the nearest dollar.
1.1 Investments Investments are brought to account at cost with interest revenue recognised in the operating statement when it is earned.
1.2 Inventories Inventories comprise stores and materials used in the construction of new works and for the repair and maintenance of existing assets. Costs are assigned to inventory quantities on hand at balance date based on average cost.
Due to a change in purchasing procedures inventories for Chemicals, Nursery Stock and Fencing Materials were all expensed directly against projects during the financial year ended 30 June 2005. Rock was physically surveyed at 30 June, 2005 and valued at the lower of cost and net reliasable value.
1.3 Income Recognition Grants and contributions for capital works from all sources are treated as operating revenue and disclosed in the operating statement as Government Contributions at the time of invoicing. In accounting for the sale of fixed assets, gross proceeds from sales are included as operating revenue. Other Revenue is brought to account when services have been provided.
1.4 Employee Entitlements The calculation of employee entitlements includes workcover, superannuation and payroll tax oncosts.
Wages and Salaries, Annual Leave and Sick Leave Liabilities for wages and salaries are recognised, and are measured as the amount unpaid at current pay rates in respect of employees’ services up to balance date. Annual Leave provision is calculated at remuneration rates expected to apply when the obligation is settled including future increases in remuneration rates. Non-vesting sick leave is not expected to exceed current and future sick leave entitlements and, accordingly, no liability is recognised in these financial statements.
49 62Notes to and forming part of the Financial Statements for the year ended 30 June 2005
Long Service Leave A liability for long service leave is recognised and is measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given to expected future wages and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using interest rates on national Government guaranteed securities with terms to maturity that match, as closely as possible, the estimated future cash flows. The nominal amount of long service leave expected to be paid in the next financial year is included as a current liability.
Superannuation The purpose of a superannuation scheme is to accumulate assets to meet members’ benefits as they accrue. The Authority contributes in respect of its employees to a number of superannuation schemes administered by the Local Authorities Superannuation Board, the Government Superannuation Office and a number of private schemes. An actuary, acting on behalf of the trustees of the Local Authorities Superannuation Board, determined a funding shortfall in the Local Authorities Superannuation Fund defined benefit plan of $127,000,000 as at 31 December 2002. The Authority's share of the shortfall is currently $46,115. Refer Note 9. The statutory contributions made to these schemes by the Authority make up the superannuation expense for the reporting period and are detailed in Note 20.
1.5 Property, Plant & Equipment Property, Plant and Equipment are non-current assets comprising land, buildings, works including quarries, plant, equipment and motor vehicles, used by the authority in its operations.
Valuation of Property, Plant & Equipment The Authority has a policy of revaluing assets every 5 years. Works Structures other than Wombat Quarry were written off (for book keeping purposes) in the 04-05 Financial year as they are no longer under the management control of the Authority and that they no longer comply with current accounting practices. Land and Buildings were revalued as at 30 June 2001 by Central Gippsland Valuation Service. The Valuation was undertaken by Steven Bailey, Certified Practising Valuer determining the fair market value of the freehold interest with vacant possession.
Depreciation is calculated on a straight line valuation basis to write off the cost or revalued amount of each fixed asset item (excluding land) over its expected useful life. Additions to property, plant & equipment in the financial year are depreciated from their respective dates of acquisition. Works in progress are not depreciated until taken up as a fixed asset.
Depreciation rates currently applied to each class of asset are as follows :-
2004/05 2003/04 2004/05 2003/04 %% %%
Buildings 2.50 2.50 Furniture & Equipment 10.00-25.00 10.00-20.00
Plant & 5.00 -33.33 10.00-33.33 Corporate Vehicles 20.00 20.00 Equipment
Works 1.00 -20.00 1.00 -20.00 Freehold Land - - Structures
50 Finances
1.6 Cash For the purpose of the Statement of Cash Flows, cash includes cash on hand, cash at bank and short term investments used to fund the Authority’s working capital requirements.
Cash at the end of the financial year as shown in the Statement of Cash Flows is reconciled to the related items in the Statement of Financial Position. (refer Note 14)
1.7 Comparative Figures Comparative figures have been represented to facilitate comparison where classifications have been reviewed and to comply with revised Australian Accounting Standards
1.8 Change in Accounting Policy There were no changes in Accounting policy
1.9 Reserves A Reserve was created for the management of committed funding. The Reserve receives surplus funds to reflect outstanding project commitments in accordance with Note 23. This amount has been included in note 13(b).
NOTE 2 - IMPACTS OF ADOPTING AASB EQUIVALENTS TO IASB STANDARDS Following the adoption of Australian equivalents to International Financial Reporting Standards (A-IFRS), WGCMA will report for the first time in compliance with A-IFRS, when results for the financial year ended 30 June 2006 are released.
WGCMA was established to achieve the objective of government in providing services free of charge or at prices significantly below their cost of production for the collective consumption by the community, which is incompatible with generating profit as a principal objective. Consequently, where appropriate, WGCMA has applied those paragraphs in the accounting standards applicable to not- for-profit entities.
An A-IFRS compliant financial report will comprise a new statement of changes in equity in addition to the three existing financial statements, which will be renamed. The Statement of Financial Performance will be renamed as the Operating Statement, the Statement of Financial Position will revert to its previous title as the Balance Sheet and the Statement of Cash Flows will be simplified as the Cash Flow Statement. However, for the purpose of disclosing the impact of adopting A-IFRS in the 2004/05 financial report, existing titles and terminologies will be retained.
Disclosure and Presentation AASB 132 Finanical Instruments AASB 139 Financial Instruments: Recognition and Measurement AASB 4 Insurance Contracts AASB 1023 General Insurance Contracts (revised July 2004); and AASB 1038 Life Insurance Contracts (revised July 2004)
The comparative information for transactions affected by these standards will be accounted for in accordance with existing accounting standards.
WGCMA has taken the following steps in managing the transition to A-IFRS and has achieved the following scheduled milestones:
- Established a steering committee to oversee the transition to and implementation of A-IFRS - Established an A-IFRS project team to review the new accounting standards to identify key issues and the likely impacts resulting from the adoption of A-IFRS and any relevant Financial Reporting Directions as issued by the Minister for Finance - Participated in an education and training process for stakeholders to raise awareness of the changes in reporting requirements and the processes to be undertaken
51 62Notes to and forming part of the Financial Statements for the year ended 30 June 2005
This financial report has been prepared in accordance with current Australian accounting standards and other financial reporting requires (AGAAP). A number of differences between A-GAAP and A-IFRS have been identified, however none are expected to have a material impact on the Authority’s financial position and financial performance on the adoption of A-IFRS. Set out below are the key areas where accounting policies are expected to change on adoption of A-IFRS and the best estimate of the quantitative impact of the changes on net profit, net assets and total equity for the year ended 30 June 2005.
The estimates disclosed below are WGCMA’s best estimates of the quantitative impact of the changes as at the date of preparing the 30 June 2005 financial report. The actual effects of transition to A-IFRS may differ from the estimates disclosed due to: - Change in facts and circumstances - Ongoing work being undertaken by the A-IFRS project team; - Potential amendments to A-IFRS and interpretations; and - Emerging accepted practice in the interpretation and application of A-IFRS and UIG interpretations
(a) Revenue from Non-Operating Activities Although not impacting the net result of WGCMA, the adoption of A-IFRS will result in the reclassification ofproceeds from the sale of non-current assets from ‘revenue from non-operating activities’ to expenses from ordinary activities in the Statement of Financial Performance. As a consequence, revenue from non-operating activities decreased by $496K, other expenses decreased by $973K and a loss on sale of non-current assets of $477K was recognized for the financial year ended 30 June 2005.
(b) Impairment of Assets AASB136 Impairment of Assets requires assets to be assessed for impairment each year. Impairment testing will apply to all assets, other than inventories, financial assets and assets arising from construction contracts, regardless of whether they are measured on a cost or fair value basis. If indicators of impairment exist, the asset will need to be tested to ensure that the carrying value does not exceed its recoverable amount, which is the higher of its value-in-use and fair value less costs to sell. For not-for-profit entities, value-in-use of an asset is generally its depreciated replacement cost.
An assessment for impairment indicators was conducted on transition date, 1 July 2004, as well as for the financial year ending 30 June 2005. No indicators were identified to require an impairment test; therefore no impairment losses have been recognized.
It is not practicable to determine the impact of the change in accounting policy for future financial reports, as any impairment or reversal thereof will be affected by future conditions.
(c) Property, Plant and Equipment AASB116 Property, Plant and Equipment requires the capitalization of costs of dismantling and removing an asset and restoring the site on which the asset was created, together with the recognition of a provision at present value in accordance with AASB137 Provisions, Contingent Liabilities and Contingent Assets. These costs (and the related provisions) are not recognized under AGAAP and WGCMA currently expenses such costs as they are incurred.
WGCMA has not identified any assets that will require dismantling, removal or restoration which meet the requirements of recognition under AASB116 Property, Plant and Equipment and AASB137 Provisions, Contingent Liabilities and Contingent Assets.
52 Finances
(d) Employee Benefits Under existing Australian accounting standards, employee benefits such as wages and salaries, annual leave and sick leave are required to be measured at their nominal amount regardless of whether they are expected to be settled within 12 months of the reporting date. On adoption of A-IFRS, a distinction is made between short-term and long-term employee benefits and AASB 119 Employee Benefits requires liabilities for short-term employee benefits to be measured at nominal amounts and liabilities for long-term employee benefits to be measured at present value. AASB119 defines short-term employee benefits as employee benefits that fall due wholly within twelve months after the end of the period in which the employees render the related service. Therefore, liabilities for employee benefits are required to be measured at present value where they are not expected to be settled within 12 months of the reporting date.
There were no material impacts.
(e) Investments The Authority has elected to take advantage of the exemption for applying the Australian Accounting Standards AAS 132 and 139 until the year end 30 June 2006.
NOTE 3 – REVENUE FROM ORDINARY ACTIVITIES
2004-05 2003/04 $ $ OPERATING State Government Contributions CW 401 Tackling Pests 100,000 - CW402 Vegetation Management 451,267 13,000 CW 403 Catchment Planning 830,197 970,774 CW 502 Water Asset Investment & Evaluation 460,000 160,000 CW 503 Sustainable Irrigation 991,500 236,412 CW 505 River Health 9,518,518 6,744,813 Recreational Fishing Grants Program 92,876 75,940 Greenhouse Policy 50,000 - BushTender Project 203,636 - 12,697,994 8,200,939
Commonwealth Government Contributions Natural Heritage Trust Co-ordinators & Facilitators 1,543,500 1,839,912 Priority Projects 2,693,000 1,903,582 Foundation Funding - 1,414,500 National Landcare Program National Landcare Program 769,889 - 5,006,389 5,157,994
Accommodation Charges 12,320 21,230 Ancillary Trading 99,047 14,414 Miscellaneous 23,320 54,204 Partnership Contribution 1,798,894 494,147 1,933,581 583,995 Total Operating Revenue 19,637,964 13,942,928
NON OPERATING Investment Income 318,188 339,995 Proceeds from Asset Sales 496,130 551,940 Total Non Operating Revenue 814,318 891,935
Total Revenue from Ordinary Activities 20,452,282 14,834,863
53 62Notes to and forming part of the Financial Statements for the year ended 30 June 2005
NOTE 4 – EXPENSES FROM ORDINARY ACTIVITIES BY FUNCTION
2004/05 2003/04 $ $ Program Expenditure Administration 1,718,401 1,502,687 Governance Costs 233,809 165,052 Operations 16,387,322 11,847,555 Total Program Expenses 18,339,532 13,515,295
NOTE 5a – CASH ASSETS 2004-05 2003/04 $ $ Bank Account 192,605 843,821 Petty Cash Float 1,310 1,260 Total Cash 193,915 845,081
NOTE 5b – OTHER FINANCIAL ASSETS 2004/05 2003/04 $$ Investment – At Call 8,125,000 7,275,000 Total Investments 8,125,000 7,275,000
NOTE 6 – RECEIVABLES 2004/05 2003/04 $ $ Current Tariff Debtors - 28,868 Other Debtors 2,998,073 319,730 Accrued Income 54,044 82,189 Total Current Receivables 3,052,117 430,787
NOTE 7 – INVENTORIES 2004/05 2003/04 $ $ Fuel 3,661 5,271 Nursery Stock - 6,080 Rock Stockpile 21,258 136,015 Fencing Materials - 6,294 Chemical Stock - 17,985 Total Inventories 24,919 171,644
54 Finances
NOTE 8 – PROPERTY, PLANT & EQUIPMENT
AT COST 2004/05 2003/04 $ $
Corporate Vehicles 894,397 622,270 Less Accumulated Depreciation (121,922) (87,538) 772,475 534,732
Plant & Equipment 1,999,556 1,919,628 Less Accumulated Depreciation (1,082,375) (928,416) 917,181 991,212
Furniture & Equipment 615,484 506,251 Less Accumulated Depreciation (424,963) (354,013) 190,521 152,238
Works Structures 90,200 90,200 Less Accumulated Depreciation (4,572) (62) 85,628 90,138
Total At Cost 1,965,805 1,768,320
AT VALUATION Freehold Land 70,000 70,000
Buildings 337,172 337,172 Less Accumulated Depreciation (22,731) (14,446) 314,441 322,726
Works Structures - 1,481,324 Less Accumulated Depreciation - (78,443) - 1,402,881
Total At Valuation 384,441 1,795,607
Total Property, Plant & Equipment 2,350,246 3,563,927
Freehold Buildings Plant & Furniture & Corporate Works TOTAL Land Equipment Equipment Vehicles Structures
2005 $ $ $ $ $ $ $
Carrying amount at the start 70,000 322,726 991,212 152,238 534,732 1,493,021 3,563,929 Additions - - 330,060 109,233 703,449 - 1,142,742 Disposals - - (115,075) - (320,252) (435,327) Write-Offs (1,363,281) (1,363,281) Depreciation - (8,285) (289,016) (70,950) (145,454) (44,112) (557,817) Carrying amount at the end 70,000 314,441 917,181 190,521 772,475 85,628 2,350,246
55 62Notes to and forming part of the Financial Statements for the year ended 30 June 2005
NOTE 8 – PROPERTY, PLANT & EQUIPMENT - continued
Profit on Sale of Non-Current Assets 2004/05 2003/04 $$ Proceeds from Asset Sales 496,130 551,940 Less Written Down Value of Assets Sold (435,327) (329,763) Write down of Work Strucutres (1,363,280) Write back of Asset Revaluation Reserve 825,847 Less Write Off Works Structures (537,433) - Profit on Sale of Assets (476,630) 222,178
NOTE 9 – PAYABLES 2004/05 2003/04 $ $ Creditors 982,631 917,647 Unfunded Superannuation Liability 46,115 46,115 Accrued Expenses 35,720 67,708 Total Creditors and Accruals 1,064,466 1,031,470
NOTE 10 – EMPLOYEE BENEFITS 2004/05 2003/04 $ $ Current Long Service Leave 27,870 22,732 Annual Leave 395,905 319,136 Total Current Employee Provisions 423,775 341,868
Non-Current Long Service Leave 250,826 204,590 Total Non-Current Employee Provisions 250,826 204,590
NOTE 11 – ACCUMULATED SURPLUS 2004/05 2003/04 $ $ Accumulated Funds 1 July 334,365 334,365 Operating Result for the Reporting Period 2,112,750 1,319,568 Transfer to Reserves – Note 13(b) (2,112,750) (1,319,568) Accumulated Funds 30 June 334,365 334,365
56 Finances
NOTE 12 – CONTRIBUTED CAPITAL
2004/05 2003/04 $$ Contributed Capital 1 July 8,281,442 8,289,287 Adjustments resulting from change in Accounting Policy - (7,846) Contributed Capital 30 June 8,281,442 8,281,442
NOTE 13 – RESERVES 2004/05 2003/04 13(a) Asset Revaluation Reserve $ $ Balance at beginning of the year 825,846 825,846 De-recognition of work structures (825,846) - Balance at 30 June 0 825,846
13(b) Committed Funds Reserve $ $ Balance at 1 July 1,319,568 - Net transfers (to)/from accumulated surplus - Note 11 2,112,750 1,319,568 Balance at 30 June 3,432,318 1,319,568 Total Reserves as at 30 June 3,432,318 2,145,414
NOTE 14 – NOTES TO THE STATEMENT OF CASH FLOWS 14.(a) Cash at the end of the year, as shown in the Statement of Cash Flows is reconciled to the related items in the Balance Sheet as follows: 2004/05 2003/04 $ $ Investments 8,125,000 7,275,000 Cash Floats 1,310 1,260 Cash at Bank 192,605 843,821 8,318,915 8,120,081
14.(b) Reconciliation of Net Cash generated from Operating Activities to Operating Surplus
2004/05 2003/04 $$ Operating Surplus 2,112,750 1,319,568 Depreciation 557,815 492,537 Net Profit on Sale of Non-Current Assets (60,803) (222,178) Write off Non Write off Non Current Assets 537,433 - Increase/(Decrease) in Accounts Payable 32,996 585,621 Decrease/(Increase) in Receivables (2,621,330) (200,022) Decrease/(Increase) in Inventories 146,725 (4,078) Decrease/(Increase) in Prepayments (11,718) (2,852) Increase/(Decrease) in Provisions 128,143 109,033 Net Cash generated from Operating Activities 822,011 2,077,629
NOTE 15 – FUTURE EXPENDITURE LEASE COMMITMENTS As at 30 June 2005 the Authority had no Finance Lease Commitments and the following Operating Lease commitments 2004/05 2003/04 $$ Within the next 12 months 226,757 232,663 Between 2-5 years 422,943 542,698 Total Lease Commitments 649,700 775,361
57 62Notes to and forming part of the Financial Statements for the year ended 30 June 2005
NOTE 16 – EXPENDITURE DETAILS 2004/05 2003/04 $$ 16 (a) Audit Fees Auditor-General's fee for Audit of Financial 6,400 6,220 Total Audit Fees 6,400 6,220
16 (b) Bad Debts Bad Debts - 891 Total Bad Debts - 891
16 (c) Operating Lease Payments Operating Lease Payments 71,756 92,746 Total Operating Lease Payments 71,756 92,746
NOTE 17 – COMMITMENTS There were no outstanding Capital Commitments as at 30 June, 2005.
NOTE 18 – CONTINGENT LIABILITIES As at 30 June 2005 the Authority had no known Contingent Liabilities.
NOTE 19 – SUBSEQUENT EVENTS Since balance date the Authority is not aware of any subsequent events that would impact on the Financial Statement.
NOTE 20 – SUPERANNUATION The Authority contributes in respect of its employees, to the following superannuation schemes: Vision Defined Benefits Scheme Vision Super Government Superannuation Office - (Defined Benefits Fund) Numerous Private Schemes - (Accumulating Benefits Fund) VicSuper – (Accumulating Fund) Numerous Private Schemes - (Accumulating Benefits Fund)
Contribution details are shown as follows
Rate of 2004/05 Rate of 2003/04 Contribution $ Contribution $
Vision Defined Benefits Scheme 9.25% 18,594 9.25% 18,925 Vision Super 9.00% 201,037 9.00% 180,915 Government Superannuation Office 9.50% 6,335 9.50% 5,786 Government Superannuation Office 9.00% 4,578 9.00% 5,153 Vic Super 9.00% 26,700 9.00% 16,755 Private Schemes 9.00% 53,888 9.00% 47,504 Total Contribution to all Funds 311,132 275,038
58 Finances
NOTE 21 – RESPONSIBLE PERSONS RELATED DISCLOSURES The names of persons who were Responsible Persons at anytime during the financial year were : Elizabeth Clay Chairperson Sylvia Davey Board Member Jane Gurling Board Member Hanna Wardell Board Member Joan Liley Board Member Rasa Bennett Board Member Ken Lamb Board Member Noel Maud Board Member Des Sinnott Board Member Kevin Young Board Member Bill Harrington Board Member Angus Hume Board Member (This Member is a Departmental employee and does not receive remuneration from the Authority.) Tony Edgar Board Member (This Member is a Departmental employee and does not receive remuneration from the Authority.) Geoff Hocking Chief Executive Officer
Neville Penrose - Resigned 30 August 2004.
All Board Members are appointed until 30 June 2006.
Minister responsible for the Authority during the reporting period was: The Hon John Thwaites, Deputy Premier, Minister for Water, Minister for Environment The Minister’s remuneration is separately disclosed in the accounts of the Department of Premier and Cabinet.
Remuneration of Responsible Persons: 2004/05 2003/04 $ $ Total Remuneration received or due and receivable from the Authority in 272,981 246,202 connection with the management of the Authority
The Number of Responsible Persons whose remuneration from the Authority was within the specified bands as follows : $'000 2004/05 2003/04 1 – 10 10 10 10 – 20 1 1
There were no other transactions between the Authority and Responsible Persons and their relatedparties during the financial year. There were no loans in existence by the Authority to Responsible Persons or related parties at thedate of this report. There were no amounts paid by the Authority in connection with the retirement of ResponsiblePersons of the Authority during the financial year.
Executive Officers Remuneration The Number of Executive Officers whose remuneration from the Authority was within the specified bands were:
$'000 2004/05 2003/04 130 – 140 - 1 150 - 160 1 -
59 62Notes to and forming part of the Financial Statements for the year ended 30 June 2005
NOTE 22 – FINANCIAL INSTRUMENTS
22(a) Terms, Conditions and Accounting Policies
The Authority's accounting policies including the terms and conditions of each class of financial asset, financial liability and equity instrument, both recognised and unrecognised at balance date, are as follows:
Recognised Financial Instruments Statement of Accounting Policies Terms and Conditions Financial Position Notes
(I) Financial Assets
Receivables – Debtors and Other 5 Debtors are carried at the Credit is allowed for a 30 day debtors nominal amounts due less term. any provision for doubtful debts.
Other Financial Assets 4 These Short Term Deposits Short Term Deposits are at call are carried at their principal and effective interest rate of amounts. Interest revenue is 6.16%. recognised in the operating statement when it is earned.
(ii) Financial liabilities
Accounts Payable 8 Creditors and accruals are Settlement of creditors is recognised for future amounts normally effected within a 30 to be paid in respect of goods day term. and services received, The Local Authorities whether or not billed to the Superannuation liability has an authority. interest rate of 10%.
22(b) Interest Rate Risk The Authority's exposure to interest rate risks and the effective interest rates of financial assets and financial liabilities, both recognised and unrecognised at the balance date are as follows
Financial Floating Fixed Non-interest Total Carrying Amount Weighted Average Instruments Interest Rate Interest Rate Bearing per Statement of Effective Interest Rate Financial Position 2004/05 2003/04 2004/05 2003/04 2004/05 2003/04 2004/05 2003/04 2004/05 2003/04 $$$$$$$$$$
(I) Financial Assets
Cash 192,605 843,821 - - 1,310 1,260 193,915 845,081 2.77% 2.77% Receivables - - - - 3,052,117 430,787 3,052,117 430,787 - - Debtors Short Term 8,125,000 7,275,000 - - - - 8,125,000 7,275,000 6.16% 5.46% Deposits
(ii) Financial Liabilities
Creditors & - - 46,115 46,115 1,018,351 985,355 1,064,466 1,031,470 - - Accruals
The entity's exposure to interest rate risk would mainly arise from any financial assets and financial liabilities which are held to maturity and bear variable interest rates as their values will fluctuate according to changes in market rates.
60 Finances
NOTE 22 - FINANCIAL INSTRUMENTS (Continued)
22(c) Net Fair Values
The aggregate net fair values of financial assets and financial liabilities, both recognised and unrecognised at the balance date, are as follows:
Total Carrying Total Carrying Aggregate Fair Aggregate Fair Value Amount per Amount per Value Statement of Statement of Financial Financial Position Position
2004/05 2003/04 2004/05 2003/04 $$ $ $
(I) Financial Assets
Cash 193,915 845,081 193,915 845,081 Receivables – Debtors 3,052,117 430,787 3,052,117 430,787 Short Term deposits 8,125,000 7,275,000 8,125,000 7,275,000 Total Financial Assets 11,371,032 8,550,868 11,371,032 8,550,868
(ii) Financial Liabilities
Creditors and Accruals 1,064,466 1,031,470 1,064,466 1,031,470 Total Financial Liabilities 1,064,466 1,031,470 1,064,466 1,031,470
The following methods and assumptions are used to determine the net fair value of financial assets and financial liabilities:
Recognised Financial Instruments Cash, Cash Equivalents, Short-term Deposits, Receivables, Creditors & Accruals, Other Loans, Moneys held in trust and Short Term Borrowings
These financial instruments have a short-term to maturity. Accordingly, it is considered that carrying amounts reflect fair values.
22(d) Credit Risk Exposures
The Authority’s maximum exposure to credit risk at balance date for each class of recognised financial assets, other than cash and receivables is the carrying amount of those assets as disclosed in the statement of financial position.
61 62Notes to and forming part of the Financial Statements for the year ended 30 June 2005
NOTE 23 STATEMENT OF COMPLIANCE Program Commitments ****** Program Contribtions Unxepended $ Current Current Outgoings Total Total $ Revenue Recognised 1/ 7/ 03 Funding Funding Funding Years Year Total 4,883,333 4,366,780 12,067,872 21,317,985 5,255,787 8,043,448 13,299,235 8,018,750 8,018,750 8,018,750 13,299,235 8,043,448 21,317,985 5,255,787 12,067,872 4,883,333 4,366,780 Program B/ Fwd 03/ 04 04/ 05 Prior Corporate Services Program Water Land Program Biodiversity Program People & Communities Program Production 353,138 2,138,366 146,872 371,786 499,932 FUNDING OTHER PARTIES 2,210,491 Funds Administered 471,939 109,167 1,782,912 2,280,194 139,092 for Growth Water 5,723,861 1,562,508 6,629,052 609,177 8,006,706 87,412 2,073,386 3,128,390 0 1,081,000 1,070,757 208,644 2,342,911 and not available for day to CMA Operational Activity. **** Funding is committed soley to these projects 3,297,269 149,995 1,640,351 5,471,301 49,616 4,368,025 1,048,172 707,099 1,157,751 402,906 3,638,680 0 0 1,157,751 258,260 3,638,680 857,094 779,697 250,000 1,216,292 350,917 1,182,602 1,216,292 250,000 350,917 457,749 0 1,061,142 457,749 1,061,142 0 1,048,172 0 295,097 0 774,756 92,100 774,756 387,197 286,386 0 660,975 286,386 250,000 660,975 250,000
62 Finances
CERTIFICATION OF ACCOUNTS We certify that the attached Financial Statements for West Gippsland Catchment Management Authority have been prepared in accordance with the Standing Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions, Australian Accounting Standards and other mandatory professional reporting requirements. We further state that, in our opinion, the information set out in the Statement of Financial Performance, Statement of Financial Position, Statement of Cash Flows and notes to and forming part of the Financial Statements, presents fairly the financial transactions during the year 30 June 2005 and the financial position of the Authority as at 30 June 2005. We are not aware of any circumstances which would render any particulars included in the Financial Statements to be misleading or inaccurate.
Ms Elizabeth Clay Mr Geoff Hocking Accountable Officer Chair West Gippsland Catchment Management Authority West Gippsland Catchment Management Authority
Date
63 6 West Gippsland Catchment Contact Details
HEAD OFFICE 16 Hotham Street Traralgon 3844 Telephone: 5175 7800 Facsimile: 5175 7899
BRANCH OFFICE Cnr. Young & Bair Streets Leongatha 3959 Telephone: 5662 4555 Facsimile: 5662 5569
ALL CORRESPONDENCE P.O. Box 1374 TRARALGON 3844
EMAIL [email protected]
WEBSITE www.wgcma.vic.gov.au
64 HEAD OFFICE 16 Hotham Street Traralgon 3844 Telephone: 5175 7800 Facsimile: 5175 7899
BRANCH OFFICE Cnr. Young & Bair Streets Leongatha 3959 Telephone: 5662 4555 Facsimile: 5662 5569
ALL CORRESPONDENCE P.O. Box 1374 TRARALGON 3844
EMAIL [email protected]
WEBSITE www.wgcma.vic.gov.au