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Wollongong Sportsground Trust Annual Report 2006,2007
) GENERAL INFORMATION
THE VENUES
WIN Stadium has been in the W ollongong Sporrsground Trust's care and control since t 986. The Sta dium is used for rugby league, soccer and rugby union games, as well as other special events. The adjacent WIN Entertainment Centre became the responsibiHty of the Trust when completed in September 1998. The Entertainment Centre hosts a rich va riety of events sll ch as basketball , tennis, boxing, music concerts, family shows, conferences, exhibitions and dinners.
CAPACITY OF VENUES
W IN Stadium has a total ca pacity of 20,000 public spectators. Of these, there are around 7,200 covered seats in the western, southern and northern grandstands, arollnd 4,300 uncovered seats and spaces in th e grandstand concourses, ,md a licensed capacity for a further 8,500 spectators on the eastern hill. The WIN Entertainment Centre has a total capacity of around 6,000 patrons. A rypica l concert set-up will have 3,500 to 5,000 seats, while the venue can be re configured to a more intimate space for as few as 500 patrons fo r dinners or small conferences. o ACCESS
The Wollongong Sportsground Trust's o ffLce is located in Levell of the WIN EtHertainment Centre. The office is open from 9am-5pm, Monday to Friday, and during major events. PUBLIC TRANSPORT
The Stadium and Entertainmenr Centre are located approximately 15 minutes walk from Wollongong Railway Station. There are also bus stops and taxi ranks just oursid e the ve nues on Crown Street. DISABLED PATRONS
Speci,d services are provided for disabled patrons including des ignated seming, parking, tactile signage and toilet facilities. Seating and pa rking spa ces can be reserved for even ts by phoning the Entertainment Centre Box Office on (02) 4220 2828. EVENT SCHEDULE
An event sch edule for both venues can be viewed on our website.
CONTACT INFORMATION
Office: WIN Entertainment Cen tre, C nr Crown and Harbour Streets, Wollongong NSW 2520
Postal Address< PO Box 3100, Wollongong NSW 2520
Telephone: (02) 4220 2800
Fascimile: (02) 4220 280 I
Email: [email protected]
W ebsite: wWVv·.wec.o rg.au
Page 2 Wollongong Sportsground Trust Annual Report 2006-2007
) CONTENTS
Letter to the Minister ...... 4
Foreword ...... •...... •...... 5
Chairman's Report ...... 6
General Mallager's Revie\v ...... 7
Wollongong Sportsground Trustees ...... •...... 8
Trust Charter/ Governance ...... 10
Code of Conduct (Trustees and Management) ...... II
B usiness Operations ...... 14 o Business Strategy ...... 16
Events Calendar· Entertainment Centre ...... 18
Events Calendar· WIN Stadium ...... 20
Event Highlights ...... 21
Hllll1an Resollrces ...... 22
Code of Conduct (Employees) ...... 25
Ethnic Affairs ...... 26
Environment ...... •...... 27
Finance ...... 28
Financial Indicators ...... ••••. .. ••...... 29
Performance Against Budget ...... 31
Independent Audit Report ...... 32
Statement by Members of the Trust ...... 37
Audited Financial Statements ...... 38
Index ...... 65
Wollongong Sportsground Trust Annual Report 2006-2007 Page 3 o LEITER TO THE MINISTER
WOLLON GONG S PORTSGROUND TRUST
Dear Minister West}
On behalf of the Woll ongong Sportsground Trust, I have pleasure in submitting to you its Annual Re port for me period 1st July 2006 to 30th June 2007 for presentati on to Parliament.
T he Report is sub mitted in accordance with Secti on 9A (a) of the Annual Re ports (Statu tory Bod ies) Act 1984.
Chris Christoudoulo Ll Chairman, Wollongong Sportsground Trust
Stuart Barnes General Manage r, Wollongong Sportsground Trust
CNR CROWN & HARBOUR STREETS POST OFFICE BOX 3/00 WOLLONGONG EAST NSW 2S20 TELEPHONE (02) 4220 2BOO FACSIMILE (02) 4220 280 I
Page 4 Wollongong Sportsg round Trust Annua l Report 2006·2007 o FOREWORD
New South Wales
Noreen Hay Member for Wollongong
It is with great pleasure that I acknowledge the hard work of the W oll ongong Sportsground Trust in 2003/2004.
Attracting and hosting major events both nationally and internationally to Wollongong has been a maj or achievement for the Trust, WIN Stadium and the W1N Entertainment Centre, contributing many millions of dollars into our regional economy.
As the Member for Wollongong and a local resident I have attended many events both at the WIN Entertai nment Centre and WIN Stadium, the highligh t of which we re two fantas tic Rugby World Cup ga mes attracting capacity crowds, international teams, supporters and world wide media coverage.
I was also privileged to be invited to officiate at the draw for the Fed Cup Tennis play- off tie, in 2003, between Australia and Columbia at the WECo culminating in an A ustralian victory.
Families in this region also have had the opportunity to part icipate in enhanced programmes with a va ri ety of events slich as "D isney on lee" and the Wiggles.
It was no surprise that the Wollo ngong Sportsground Trust won the U1awarra Tourism Award for its activiti es surrounding the World Cup Rugby program me. I am aware of the Trust's vision and master plan) particularly to rep lace the westen) stand, and I wish them welL If their future endeavours are as successful as those to clate, we are in for a ve ry exciting time.
I congratu late the Trllst, Management and all staff for the ongoing success of the WIN Sports and Entertain ment Centres as world~class facili ties.
No reen Hay, MP
Member fo r Wol longong
2/1 11 Crown Street Wollongong, NSW 2500 Ph, (61-2) 4226 5700 Fax, (61 -2) 4226 9963
WoJlongong Sportsground Tru st Annual Report 2006-2007 Page 5 CHAIRMAN'S REPORT 2006/2007 will be remembered as a year of contrasts for the Trust.
in August 2006, the Trust and the St George lIlawarra Dragons formally signed off our 5 year agreement to host 7 Dragons ga mes at WIN Stadium per N RL season. Due to a need to play the majoriry of home games at Kogarah in the first half of the calendar year of 200 7, we only hosted 4 of the NR L games in this fin ancia l yea r. fu a consequence, revenue to the Trust from the Dragons in this fin ancial year was significantl y dimin ished. O n the fl ip side, th e Trust was able to secure a new signage arrange men t with Energy Australia to add to our growing list of companies who wish to advertise on the exterior of our ven ues.
The overall fi nancial position, whilst down on last year, remained sound. Due to good management, once again, we continued to operate without any operational grants from the State Governmen t.
As reported last year, the Request for Proposals (RFP) document, seeking private sector in terest in the development of the site was processed during rhe fina ncial year. U nfortunately, our hope of attracting a proposal which would see the construction of a new Western G randstand fell short. Whilst a proposal W W ith lessons learnt fro m the fir st RFP process and a new W ollongong C ity Centre Loca l En vironment Plan now gaze tted and offering greater development options on this site, the Trust is very hopeful of generating interest in the site and providing a new Western G randstand. The Trust is now seeking permiss ion from the State Government to return to the market with a formal Tender process. A new W es tern G randstand and associated commercial developmen ts remains a number one priori ty for the Trust. During this year, the Trust undenook a Management Review where it looked at the current Management structure to ensure that it was oper Cl ting efficiently and effectively, give n our current business climate and future needs. The extensive process decided that the current structure be retained but produced some new objectives for the Manage men t Team. In M T he Trust has appreciated the support of the new Min ister fo r Sporr and Recreation , The Hon. G raham W es t, who has shown great interes t in tbe affa irs of the Trusr. As we look forward to 2008 and the celebrations of the 101h Anniversa ry of the open ing o f the WlN Entertai nment Centre, the T rusr is hopeful that next year it will be able to secure some mi nor capital works fund ing to improve a number of im portant faci lities on its site. In what has someti mes been a cha ll enging year, special thanks needs to go to the managers and staff, who have put in extra effort, particularl y when ollr resources have been quite stretched , and to my fe llow Trust members fo r their continued active support during th e yea r. Further I would like [Q thank representatives of the Department of Sport and Recreation , along with the Member for W ollongong, Noreen Hay, and the Minister for the Illawarra, David Campbell, who continue to provide ongoing valuable support. C hris C hristoudoulou C hairperson, W ollongong Sportsground T rust Page 6 W ollongong Sportsground Trust Annua l Report 2006-2007 GENERAL MANAGER'S REVIEW In 2006/07 the Trust hosted 93 events at the WEe and WIN Stadium, over 105 days. High lights of the year included a vari ed concert program with performances from a range international and Australian anists including Pink (w ith a new concerr attend,lI1ce record of 5,637 people), Rogue Traders, INXS (twice), the Veronicas, Dwight Yoakum, Chris Isaak, George Benson, Human Nature and the Little Britain show, to name a few. The Family Events program was again strong with Disney on Ice, Southern Stars, the Wigg les, Wakakiri, Class Act, Wollongong Eisteddfod and Rock Eisteddfod events entertaining young and old ali ke. In new initiatives, the Ocracy theatre company prese nted their production of Andrew Lloyd Webbers' Cats to over 3,000 people and the Trust also produced and hosted the inaugural "A Wollongong Christmas - Carols in the C ity'" [0 .. capacity crowd in the W EC, raising money fo r the Salvation Army. It was pleasing to see the business events sector well represenred with the inaugural lllawarra on Show (Business Expo) and both the Illawarra Tourism and the Business Awards joining the conference and retail show events at the \X' EC . A review of the Premiers Room Function Centre has led to some chcmges in decor, facilities and marketing to strengthen. th is part of the Trust's business. At WlN Stadium, as well as hosting just four of the Dragons NRL home ga mes, the newly formed Illawarriors Rugby Union team represented the reg ion in the Sydney Rugby Competition, Sydney FC held two of theif pre-season cup ga mes there and the Supercross Masters event was again presented, creating a varied Stadium program. In association with the Dragons, the Trust negotiated new Beer and Spirit supplier agreements, with Fosters and Diageo being successful and now offering increased support of this orga nisation. Nestle Peters were sllccessfu l in obtaining the lee C ream rights and join Fosters, Diageo, Robert T imms and Coca Cola in supplying the Trust properties. W e continue to support the group looking at a local A League football team (Great South Football), very aware that an A League team playing out of WIN Stadium would make a significanr contribution to both the Trust and to the Region. Operationally, the highlights o f the year included t.he insmllation of a new ticket access sys tem in the WEC, including wireless scanners connected to a computeri sed control system, the olltsourcing of our Audio Visual and Technica l services and investigating energy and milities to crea te cost savings and improved enviro nmental practices. The presentation of the varied and extensive program of events at Trust venues would not be possible without the small group of hard-working and passionate managers and staff, who, together with O UT catering, ticketing and merchandising partners and the large army of cas uals employed at our venues, all contribute to our success, by making these venues come alive. W e have begun the preparations for the WEe's 10 ~h Ann iversary celebrations on and around th e 3rd September 2008 and for the many Trust, managers and staff who have been here the whole 10 years, this will be an extremely sign ificant occasion. O n behalf of the staff and the community I thank the Trust members, for their selfless contribution to the manage ment of these venues and for their continued guidance. Stuart Barnes General Manager, Wollongong Sporrsgrollnd Trust Wollongong Sportsground Trust Annual Report 2006-2007 Page 7 o WOLLONGONG SPORTSGROUND TRUSTEES Chris Christodoulou BA - Chairperson • Firsr appoin ted as a Trust Member in 1998, Chairperson since March 2005 • Deputy Assisrant Secretary of Unions NSW • Board Member of Sydney O lym pic Park Aurhority since Ju ly 2001 • Member of Correctional Service Industry AdvisOlY Council since 200 I • De puty Member of the Long Service Leave BU ilding & Construction lndusny Pay ments Committee since 1999 • Formerly Director of Health Employees Superannuation Trust • Formerly C hairperson of Health and Community Services Industry Training Board Bill Barnetson BA • First appointed as a Trust Member 1992 - Chairman from 1996 to 2005 • Formerly a Senior Executive officer in the NSW Publ ic Service, • Formerly a Councillor and Deputy Lord Mayor, Wollongong C ity Council, serving as Chairman of Finance and Planning • Held a wide range of public offices including Director of lIIawarra County Council , Chairman of a Public Risk Insurance Co-operative and foundation Chair and fo r a further three years National Chairman of the Australi an Public Risk Association • Served on a number of cultural and tourism boards including the South Coast National Parks & W ildli fe Advisory Committee and the SOLithern Catchment Management Boa rd Judith Henderson • Fi rst appointed as a Trust Member in March 2005 • Has extensive experience as a consultant in the private, public and non-government sectors in Austra lia and internationally • Currently runs her own consulting bus iness in areas slich as strategic planning and development) business strategy) planning) government relations and knowledge management to small and large enterprises Ian Hunt • First appointed as a Trust Member in March 2005 • Formerly a Councillor and Deputy Lord Mayor, Woll ongong City Council, including serving as the Chairman of the Sports Liaison Comtnittee • Currenrly Chair of rhe Dalton Park Board of Managemenr • Currently works as a tax Consultant and Accountant in local private practice Page 8 Wollongong Sportsground Trust Annual Report 2006-2007 o WOLLONGONG SPORTSGROUND TRUSTEES (cont) Kiril Jonovski • First appointed as a Trust Member in March 2005 • Deputy Lord Mayor, Wollongong City Counci !, and Chairperson of the Sporrs Liaison Committee • Commissioner of the NSW Local Government Grants Commission, Board Member of the Illawarra Reg ional Information Service, Tourism Wollongong, and the Lake IIIawarra Authority. Janice Kershaw • First appointed as a Trust Member in March 2005 • CounciLl or and fonner Deputy Lord Mayor, Wollongong City Council • Senior Officer with the NSW Office of State Revenue • Board Member and Chairperson of the lIIawarra Performing Arts Centre, Executive Member of the NSW Loca! Gove rnment Association Vicki Tiegs • First appointed as a Trust Member in March 2005 • Director Wap!es Marketing Group, former Director of Publicity WIN Television Network • Director TOllrism Wollongong, D irector lllawarra Academy of Sport • Vice~Pres i d e nt International Women's Day 1I1awarra TRUST MEETINGS During 2006/07 there were 12 General Meetings and 4 Committee Meetings held. Attendance by Trust Members at the General Meetings was as follows: Meetings Trust Members Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Attended Chris Christodoulou Y Y Y Y Y Y Y Y Y Y Y Y 12/12 Bill Barnetson Y Y N Y Y Y N Y Y Y Y N 9/12 Judith Henderson Y Y Y N Y Y Y Y Y Y Y Y 11/1 2 Ian Hunt Y Y Y Y Y Y Y Y Y Y Y Y 12/12 Kiril Jonovski N N N Y Y N N Y Y N Y N 5/12 Janice Kershaw Y Y Y Y Y N Y Y Y Y Y Y 11/12 Vicki Tiegs Y Y N Y Y Y Y N Y Y Y Y 10/12 Wollongong Sportsground Trust Annual Report 2006-2007 Page 9 TRUST CHARTER GOVERNANCE CHARTER/ CONSTITUTION OBJECTIVES The Wollongong Sportsground Trust IS In accordance with its Mission, the Trust's constituted under the provisions of the objectives are: Wollongong Sportsground Act, 1986. • Id entify and implement the most "An Act to constitute the Wollongong appropriate opportunities for the Trust's Sportsground Trust: to place Wollongong facilities, to e nsure the viab ility of the Showground and Brandon Park under the ca re, venues and to maximise reWrn o n assets to control and management of the T ru st, to the Trust and Government. dedicate Wollongong Showground partly for pub li c recreatio n and partly for tourist purposes, • Efficiently and effectively manage all Trust to dedicate Brandon Park for public recreation Affa irs and for other purposes," • Fully develop the Trust ve nues and facilities to meet our clients' needs VISION • To become ((first cho ice", I.n Regional The V ision Statement of the Wollongong NSW, of our id entified clients. Sportsground Trust is; 1\0 be the most successful , integrated spon s, entertainment, • Assume financial indepe ndence and conference and tourism destination in commercial sustainability. Australia", • Provide sign ificant regional, economic, community, social and image benefits to the MISSION lIIawarra. The Mission Statement of the Wollongong Sportsground Trust is: "to effectively o perate TRUST COMMITTEES and develop a successful and sustai nable integrated sports, entertainment, conference and In June 2005, the Trust estab li shed a Finance tourism destination that is highl y valued by its and Asset Management Committee and an stakeho ld ers, clients, patrons and the Events and Business Development Committee. com munity". The Finance and Asset Management Committee's role is to review the risks o f the Trust's financial and asset management activ ities, to assess advice from Trust Managers on these issues and to review the annual financial budget. The role of the Events and Business Development Committee is to assess the event procurement process, review proposals for Trust promotion of events, and to id entify other business development opportunities. Each Committees is composed of three Trustees and three Trust Managers. Each of the Committees met twice during 2006/07. Page 10 Wollongong Sportsground Trust Annua l Report 2006-2007 CODE OF CONDUCT - Trust Members and Managers CODE OF CONDUCT 3. Declare any priva te interest thar may impinge on a Trust decision. When an The people of New South W ales have a t ight to issue arises, the Trust member or manager expect the busin ess of the State to be conducted must as soon as practicable disclose full wi th efficiency, fairness, impartiality and and accurate deta il s of the interest or issue integrity. to the Trust. Trusteesh ip of State assets and public 4 . Depending on the seriousness of the emp loyment carries with it a particular conflict of interest, the Trust should obliga ti on to the public interest. rt requires dete rmine whether the Trust member o r standards of professional behaviour from manager should participate in any trustees and staff th at pro mo te and maintain discussion on the matte r, or in any fina l the public's confidence and trust in the wotk of decision,making. The Trust should record government agencies. the ir reasons fo r the determinatio n. T he W o ll ongong Sporrsg round Trust Code of With any seri ous conflict of inte rest, the Trust Conduct is designed to convey th e obliga ti ons member or manage r must not take pa rt in any and standards of behaviour expected of T tlIst discuss ion or decision relating [Q the issue or members and managers, and to resolve any interest, and not vote on the ma tter. ethical issues that may arise during the course of their duties. The Trust member or manager should be absent fro m the meeting room when any discuss ion o r The fo llowing excerpts from the TtlIst's C ode of vote is taking place and sho u ld not receive any Conduct high li ght the key elements, relevant Trust papers. This should also be recorded in the Trust mee ting minutes. CONFUCTS OF INTEREST The potential for a conflict of interest arises when a Trust member o r manage r is placed in a situation where private interests could influence o r appear to influence judgments made during the course of his/her professional duty to the Trust. ACCEPTANCE OF GIFTS OR BENEFITS To resolve any conflicts of inte rest that occur, Trust members and manage rs must not accept T fLi st members and managers fo ll ow th e gifts or benefits that could place them under an foll owing guidelines: actual or perce ived fin ancial or moral obligation [Q oth er organisatio ns or to individua ls. l. Disclose any interests to the Trust (which include positions and pecuniary interests) incorporati ons, partnerships or other FAIRNESS AND EQUITI businesses that may be relevant to the ac tivities of the Trust. A Trust member or Iss ues o r decisions considered by T ru st manager's interests could in cl ude those of members and manage rs sho uld be dealt wi th an associate or close relative. consistently promptly and fairly. This involves dealing with matte rs in accordance with 2. Register these in te rests in the T rust's approved procedures, in a no n,d iscriminatory Register of Pecuniary Interests. manner, and in conformity with natural justice. Wollongong Sportsground Trust Annual Report 2006·2007 Page 11 () CODE OF CONDUCT · Trust Members and Management DIS CRIMINA TION AND HARASSMENT PUBLIC COMMENT ON THE WORK OF THE TRUST Trust members or managers must not discriminate against or harass colleagues or Trust members or managers, as individuals, members of the public on any grounds have the right to make publi c comment and including sex, marital status, pregnancy, age, enter into public debate on political and social race, ethnic or national o rigin, physical or iss ues. However there are circumstances in intellectual impairment, homosexuality, trans- which this is inappropriate. For example, sex uality and HIV/ AIDS. situations where the public comment, although made in a public capacity, may appear to be an Such harass ment or discrimination could offi cial comment on behalf of the Trust. constitute an offence uncler the Anti Discrimina tion Act 1977 or va ri ous federal laws. In general, public comment is only to be made Tn addition, Trust members or manage rs must by the C hairman, General Manage r, Business not harass or discriminate on the grounds of Development & Marketing Manager or a Trust poli tical or religious convictio n. member nominated by the T rust. Trust members and managers must make Slire that the Trust workplace is free from all forms PROTECTECTING CONFIDENTIAL of harassment and discrimination. They should INFORMATION understand and apply the principles of equal employ ment opportunity and ensure that thei r Trust members or managers that have access to employees are informed of these principles. confidential and sensitive personal, cornme rcial and political information should take special Trust members and managers should take all caution to ensure that it is not disclosed necessary steps, such as training and other active without clear authority. Official info rmation measures, to prevent and deal with harass ment must only be used for the work-related purpose and discrimination in their wo rk area. intended and not for personal benefit. USE OF OFFICIAL FACILITIES AND EQUIPMENT T rust members and manage rs are expected to be efficient and economical in their use and manage ment of public resources. Unless express permission has been granted, Trust resources are not to be used for private purposes. OCCUPATIONAL HEALTH AND SAFElY The Trust members and manage rs are committed to the provision of a safe and healthy working environment for staff, clients, customers and the public. As a consequence of this, the Trust encourages all members of staff to regard accident prevention and working safely as a collective and individual responsibility. Page 12 Wollongong Sportsground Trust Annua l Report 2006-2007 ) SECONDARY EMPLOYMENT POST SEPARATION EMPLOYMENT The General Manager must have the offLcial Trust members o r managers should not lise approval of the C hairman and the other their position to obtain o pportunities for future managers, the approval of the General Manger, employment. T hey should not a llow themselves before they engage in any form of paid or their work to be influenced by plans for, o r employment olltside their offici al duties. offers of, employment outside the Trust. [f they do, there is a conflict of interest and the Managers must also carefully consider whether integrity of the individual and the Trust is at the organisation offering them secondary risk. employmenr may adversely affect the performance of theil' Trust duties and responsibilities or give rise to a conflict of interest. This principle applies whether they are working full~t im e) part~ time or only temporarily. POLITICAL AND COMMUNITY PARTICIPATION T f ust members and managers must make sure that any participatio n in party political activities does not conflict with their pri mary duty as a public employee to serve the government of the day in a politically neutra l manner. If Trust membe rs or managers become aware that a potential conflict has ar isen or might arise, they should info rm the Chairman immediately and may have to sto p the political activity or withdraw from the areas of the ir work where the conflict is occurring. HONOUR BOARD REPORTING CORRUPT CONDUCT The Wollongong Sportsground Trust has a Corrupt conduct can be ge nerally understood as policy of acknowledging members of the the d ishonest or partial exercise of public community who have contributed significantly official functions. It may also involve the to the estab lishment and development of the conduct of non-public officials which adversely Trust venues. affects th e honest and impartia l exercise of a public official's functions. For this purpose, the Trust's Honour Board currently includes the following inductees: A principal officer of a public authority is Mervyn Nixon, John Cleaty, Sid Hayes AM, req uired to report corrupt conduct or suspected Ack Wilton, Bi ll Barnetson, Laurie Ke lly, Peter corruptio n to the lndependent Commiss io n Bolt OAM, Bob Millward , Richie Hetherington Agai!1st Corruption (Secrion 11 of the and T.S. (Bob) Lowrie. Independent Commiss ion Against Corruption Act). The principal officer of the Wollongong Sportsgrou nd Trust is the Chairman. Wollongong Sportsground Trust Annual Report 2006-2007 Page 13 ) BUSINESS OPERATIONS The T fList operates two adj o ining venues, the auditorium, and 5 community events. 6,000 seat indoor W IN Entertainment Centre (WEC) and the 20,000 capacity outdoor WIN For 2006/07, the WEe's total event days were Stadium. The venues are hired by event 73, while total attendance was a disappointing promoters and sporting teams to stage a var iety 184,105 (down 25% from last yea r). The result of entertainment, sporting, business and was mainly due to a very quiet event calendar at community events throughollt the year. both venues in the first three months of 2007. The T fll st ra ises revenue from these eve nts main ly through venue hire fees, event costs WlNSTADlUM recovered from hirers, signage fees, catering commiss ions, merchandising and ticketing fees . WIN Stadium hosted only 1 trial and 3 home games of the NRL St. George-Illawarra Dragons ENTERTAINMENT CENTRE in this financial year, attracting 41,896 fa ns at an average of 10,474 per game (down 15% In 2006/07 the WEC hosted 17 home games from the previous year). The low number of of the NBL Wollongong Hawks basketball ho me games was due to the scheduling of tea m, attracting 57,058 fa ns at an average of building works at the D ragons other home 3,356 per ga me (down 9% from the previous ground at Kogarah, Sydney. season). T he Stad ium played host to 2 ALeague Australian music promoters hired the WEC for Football Sydney Fe trial ga mes, the Steelers 18 days to stage concerts by international and Ju niors games, Tooheys League rugby league national artists including INXS, Rogue Traders, fin als se ri es, a Rugby Super 14 Waratahs v Pink, The Veronicas, LIVE, Shannon Noll, Brumbies trial game, the local rugby union Dwight Yoakam, C hris Isaak, George Benson fina ls and several community events. and Paul Stanley. The Stadium also welcomed back dirt bikes Conce rt attendances totaled 41,790 patrons, with the staging of the Nokia SuperCross with an ave rage concert size of 2,275 (si milar to Masters Finals round. This event was again we ll last year). A highlight was the conce rt by the attended and rnay return in the near future. you ng US star, Pink, breaking the house record by attracting 5,637 fa ns to the WEC in May For 2006/07, W1N Stadium's total event days 2007. were 32, while total attendance was 95,579 (down 36% from last year). This poor result Family shows were again popular, with 14 was due to the movement of Dragons games shows put on by Disney on lee, Hi-5 and The from this fin ancial yea r to 2007/08. Wiggles. Local schools also staged another successful season of rock eisteddfods, musical presentations and dance spectaculars. The OTHER BUSINESS OPERATIONS family show market attracted a total attendance this year of 57,794 patrons (up 3% In additio n to major events at the venues, the from last year). Trust raises reve nue through several businesses that operate on the site. Sporting highlights included three ga mes by the Sydney Swifts netball team and a Shannan The Five Islands Brewing Company (F IBC) Taylor fight night. occupies a space ar the eastern end of the WEe for its restaurant and micro-brewery. Stad ium The remainder of the WEe's event calendar Physiotherapy leases a small bUilding in the was filled wi th 1 conference, 5 days of trade south-west corner of WIN Stadium as a sports expos and reta il shows, 6 major dinners in the medicine and phys iotherapy practice. Page 14 Wollongong Sportsground Trust Annual Report 2006-2007 ) BUSINESS OPERATIONS (cont.) In the latter months of this financial year, the The WEC also continues to allow loca l artists to Trust undertook a market review of the FIBC display their works in the foyers. This program Guaranteed Return. assists the art community with low-cosr display space for the promoti on of new and emerging Inside the northern grandstand at WIN loca l artistic talents. Stadium , the Trust manages a fu nction area, the Premiers Room, that is hired out for small events slI ch as business meetings, staff training RISK MANAGEMENT AND INSURANCE seminars, dinne rs, parties and exhibitions. Eac h year, the T rust identifies the major ri sks In 2006/07, the Premiers Room hosted 94 tha t could im pact negatively on the achievement such events, with total attendance of 8,183 of its business objectives, and develops a range of (down 23% fro m last yea r). The Room is also strategies to mitiga te these risks. For 2007-08, used to host the corporate cl ients of the the foc us will be on rhe following key strateg ies, Dragons, Hawks and other sporting reams on game days. • Continued building relationshi ps with event clients to increase the occupancy of bo th venues COMMUNITY SUPPORT • Improving the cos t~ ffect ive n ess of service delivery to increase yields from all events The Trust is very aware that it has an important • In creasing client sa ti sfacti on with the part to play in the Wollongong and Illawarra ve nues, services and fac ili ties communities. Despite its statu s as a • Progress ing the Development Mas ter Plan Government Trad ing Enterprise, the T ru st fo r the site, including replacement of the believes tha t it should, wherever possible, western grandstand and the establishment support the local community and the people of other commercial facilities that it services. In September 2003, The T rust moved its During the 2006/2007 Financial Year, the Trust insurance require ments to the Treasury gave direct conu nunity support to a numbe r of Managed Fund (TMF). The Trust's contribution organisatio ns to ass ist the m with their events o r to the TMF in 2006-07 was $ 125,644. fund rais ing. Th is support is mainly through the provision of free tickets for sporti ng and entertainment events that were then used as Oecupational Health and Safery prizes in raffles o r aucti ons. T here were no lost time injuries fo r the yea r. AU minor injuries and safety in cidents were logged Several comrnunity events take place at the for further investigmion . WEC and WIN Stad iu m each year, with the Trust recovering its costs but with reduced ra tes The Trust has established an Occupational for hiring the ve nues. The follow ing Heal th a nd Sa fety Com m i ttee wi t h o rganisations/events be nefited from this service: representatives from all departments which meets monthly to address O H&S issues, discuss • St Mary's Star of the Sea Coll ege previo us month's inc idents, ca rry o ut • Xmas Party for Special Kids inspections and identify improvement plans. • KidsW ish C hari ry Xmas Party • Inaburra School Performance Nigh t • St John the Baptist lralian Festival • Na ti onal Field of Women • Wollongong Sym phony O rchestra • Ilhn.varra Tourism Awards • Reconciliation Debutantes Ball • Caro ls in the C ity WolJongong Sportsground Trust Annual Report 2006-2007 Page 15 ) BUSINESS STRATEGY MAJOR CHALLENGES At WIN Stadium, the business issues are different, but no less challenging. The Trust is The T tllst operates the Entertainment Centre largely reliant on one major hirer, the NRL St and WI N Stad ium within an extremely George- Illawarra Dragons. The commercial challenging business enviro nment. U nder its success of the Stadium is directly tied to the Charter, the T TList does not usually create nor Dragons long-term tenancy there, continued promote events itself} but hires the facilities to financia l strength and successfu l on-field other parties to stage events. performance. As a result, the Trust's commercial slIccess is It is pleasing to note that in 2006 the Trust largely dependent on the health and activity signed a 5 year tenancy Agreement with the levels of the Australian event industry, event Dragons. This Agreement effectively secures promoters and locally-based national sporting future revenues and usage for the venue from teams and event organisers. When they are the Drago ns and their affiliated rugby league unhealthy, the Trust also suffers. teams until the end of2011. Since opening in 1998, the Entertainment Centre The Drago ns and other users ex pect that the has strugg led to be financially self-sustainable Stadium facilities will be continually improved for a number of reasons. Due to in complete to meet rising league, media, patron and player funding of the Centre's o riginal constru ctio n expectations. For th is reason, the Trust is and fit~ O llt, the Trust took on a significant planning for the replacement of the Western amount of debt. Thankfully, this debt has now Grandstand, and the upgrading of the playe r been signifi ca ntly reduced due to a NSW facilities in the southern grandstand. Government grant in late June 2006. To summari se, the key challenges facing the However, the T fllst still faces a range of Trust in the Stadium are: business issues in at tra cting events to the Enterta inment Centre including: • Completing the Deve lopment Master Plan for the future business development of the • Id entifying target markets and building site, including replacement of the ageing strong relationships with event organisers western grandstand, and developme nt options for part of the No.2 G round to • Working in an industry that suffers ups create non-event based revenue and downs in the international concert touring market • Working with the anchor tenant, the St George-Ill awarra Dragons, to continually • O ptimising th e use of in-house labour to improve the operations and financial reduce cl ient costs and improve event returns from their games each season contributio n margins • Attracting major league soccer (football) • Attracting major events to Wollongong back to the Stadium, including support ing and overcoming pe rceptions of its moves to have a W ollongong/South Coast proximity to Sydney, being an team playing in the national A League impediment to strong ticket sales com petition. • Continually reducing operatio nal costs • Exploring opportunities for an increase in whilst maintaining service level standards different usage and hirers, including attracting local, national and internatio nal • Encouraging the creati on and development ru gby union matches of locally-based eve nts • Reducing o pera ti onal costs wh ilst ma intaining service level standards Page 16 W ollongong Sportsground Tru st Annual Report 2006-2007 BUSINESS STRATEGY (cont.) CORE BUSINESS STRATEGIES and improve long~term profitability continues for the 2007/08 financial year and beyond. As identified in the T fUSt'S Business Plan, the intention is to concentrate on the following core Firstly, internal resources of the Trust are being business strateg ies during 2007/080 re~focused on strengthe ning business relationships with medium~yield event clients. Events & Program Delivery Several markets are being specifically targeted Host a varied and appropriate program of events including seco nd ~tier music, major sports, at the ve nue, which appeal to a wide range of conferences, exhibitions, meetings, functions, markets. retail sales and sc hool/education events. Financial Secondly, strategies are being developed to Improve the positive financial returns from the reduce a range of expenses including casual T rllst business units to fund future business labour, facili ty maintenance, electricity, water developments, maintain current facilities and to and waste removal. It is hoped these changes consolidate the position of the Trust being self will deliver lower o ngoing costs, attract more sufficient. event promoters a nd improve event contribution margins in the short to medium Business O pportunities term. Maximise business opportunities for growth, including a close liaison with the community Thirdly, the Trust is continuing ta plan fo r the and its peak o rganisations, to create business commercial redevelopment of its' site. With the activity for the T rust, including spo nsorshi p, Entertainment Centre now recognized as one of grants and signage/advertising. the best regional facilities in NSW, the focus is now on bringing WIN Stadium up to the level Facilities & Resources of a nati onal and international standard venue Optimise the li se of the Trust's fac ilities and to ensure it can remain competitive in attracting resources, in the most cost efficient manner, significant sporting events. creating the optimum reve nue. Fo r that reasan, a Req uest for Propos" Is (R FP) Human Resources was launched 111 2006 to uncover some Continue ta improve the quali ty of Trust staff innovative development concepts from the and setvices to provide world.-c lass service to private sector that wi ll replace the Western patrons and clients, in the most cost-efficient Grandstand and provide other commercial manner possible. facili ti es on the site. Marketing This process delivered o nl y one proposal, but it Develap new markets for all of the business was consid ered insufficient to enSllre value for units of the Trust to ensure maximum usage of money. W ith a new C ity Centre LEP now in its venues af the most profitable kind. place, the Trust intends to return to the market in the near future. Action Plans and Perforrnance Indicators fo r the above strategies fo rm a key part of the However, it should be noted that contributions Bus iness Plan implementation and moni toring. to operational revenues from this sort of development are expected to be at least 3-4 yea rs away. FUTURE DIRECTIONS With the uncertainties surrounding the Australi an concert tour market, the Trust continues to review all its business activities. A mu lti-pronged strategy designed to lift revenues Wollongong Sportsground Trust Annual Report 2006-2007 Page 17 ) 0 EVENTS CALENDAR 2006"()7 WIN ENTERTAINMENT CENTRE No. Date Event Attendance Event Days 16/07/2006 2006 Brida l Expo 2,757 2 21/07/2006 Shan nan Taylor Fight N ight 1,778 3 27/07/2006 2006 Rock Eisteddfod & J-Rock (2 Shows) 4,360 2 4 30/07/2006 Sydney Swifts v Hunter Jaegers 1,597 5 4/ 08/2006 Sydney Swifts v Melb. Kestrels 1,821 6 9/08/2006 The Veronicas 2,268 1 7 25/08/2006 Wabkirri 2006 1,969 8 1/09/2006 Southern Stars 2006 (4 Shows) 10,953 2 9 4/09/2006 lNXS 4,088 1 10 7/09/2006 Deputy Principals Dinner 400 11 20/09/2006 Illawarra Tourism Awards 397 1 12 22/09/2006 Rogue Traders 3,7 12 13 24/09/2006 HAWKS v ADELAlDE 4,369 1 14 26/09/2006 St Mary's Graduation Mass 1,000 15 8/10/2006 HAWKS v MELB TIGERS 3,492 1 16 14/10/2006 David Suzuki 1,591 1 17 16/10/2006 HAWKS v NZ BREAKERS 3,259 1 18 17/ 10/2006 LIVE with Shannon Noll 2,210 19 20/10/2006 HAWKS v BRISBAN E 3,946 20 21/10/2006 W ollongong Symphony O rchestra Concert 1,998 1 21 27/10/2006 Class Act 2006 (4 Shows) 7,076 2 22 29/10/2006 Dwight Yoa kam 1,767 1 23 3/11/2006 Dave Hughes ~ Comedy Show 1,755 24 4/ 11/2006 HAWKS v TOWNSVILLE 3,397 25 8/11/2006 HAWKS v CAIRNS 3,020 26 12/11/2006 Hi-5 - Live Action Heroes (2 Shows) 5, 141 27 14/ 11/2006 Pink Floyd Experience 982 1 28 17/11/2006 lBe Business Awards Dinner 965 29 20/11/2006 Chris Isaa k - Best of Tour 2006 3,241 1 30 21/11/2006 Sf Mary's Graduation Dinner 598 1 3 1 24/ 11/2006 KidzWish Xmas Concert 2,000 32 24/11/2006 KidzW ish Fundra ising Dinner 258 33 27/11/2006 Special Kids Xmas Parry 1,000 34 2/12/2006 HAW KS v SOUTH DRAGONS 3,766 1 35 8/12/2006 In naburra School Presentation N ight 1,300 36 10/ 12/2006 HAWKS v SINGAPORE 3,028 1 37 14/12/2006 Wiggles 2006 - 'Racing to the Rainbow' (2 Shows) 7,257 1 38 20/12/2006 HAWKS v ADELAIDE 3,058 1 39 23/12/2006 A Wollongong Christmas - Carols in the City 4,000 1 Page 18 Wollongong Sportsground Trust Annu a l Report 2006-2007 ) EVENTS CALENDAR 2006-07 WIN ENTERTAINMENT CENTRE (cont.) No. Date Event Attendance Event Days 40 31/12/2006 HAWKS v SOUTH DRAGONS 3,418 41 5/01/2007 HAWKS v MELBOURNE TIGERS 3,402 42 13/01/2007 HAWKS v WEST SYDNEY 3,213 1 43 17/01/2007 HAWKS v TOWNSVILLE 3,194 44 22/01/2007 HAWKS v SYDNEY KINGS 3,388 1 45 27/01/2007 HAWKS v NZ BREAKERS 3,055 1 46 2/02/2007 HAWKS v SINGAPORE 3,270 1 47 7/02/2007 HAWKS V PERTH 2,783 48 25/02/2007 Little Britain· LIVE 2,874 49 14/03/2007 Weird AI Yankovic 1,1l6 1 50 28/03/2007 INXS with Simple Mi nds 2,074 1 51 30/03/2007 George Benson & At Jarreau 1,064 1 52 13/04/2007 Paul Stanley 1,034 1 53 4/05/2007 2007 Wollongong Home Show 3,055 3 54 11/05/2007 CATS (3 Shows) 3,545 2 55 23/05/2007 PINK 5,637 I 56 26/05/2007 Reconciliation Elders Debutanrs Ban 300 57 30/05/2007 Illawarra on Show Business Expo 500 1 58 6/06/2007 2007 W'gong Eisteddfod 500 1 59 13/06/2007 Disney on Ice 2007· 'Finding NeOla' (10 Shows) 20,538 5 60 22/06/2007 Network 21 Conference 2,000 3 61 29/06/2007 Syd ney Swifts v Canberra Darters 2,571 1 Totals 184.105 73 WIN ENTERTAINMENT CENTRE· EVENT DAYS COMPARISON 35 - - 30 . 03/04 . 04/05 25 0 05/ 06 0 06/01 20 15 10 5 0 Music-majo r Mu~ic- ~ lhcr FamilyE'"Cnl S Sport-major Sp ort- other Exhib .l Trnde C: o n' .IS eminar ~ DinnerslDances lJ awks C o mmu n il~ Sh olls Wollongong Sportsground Trust Annual Report 2006-2007 Page 19 ) EVENTS CALENDAR 2006-07 WINSTADlUM No. Date Event Attendance Event Days 1 6/08/2006 Sydney FC v Perd, Glory 6,005 2 11/08/2006 Sydney FC v Adelaide 3,524 3 12/08/2006 Tooheys League Elimination Final 1,494 4 13/08/2006 Tooheys League Qualifying Final 1,232 5 19/08/2006 T oaheys League Minor Semi Final 1,867 6 20/08/2006 T oaheys League Major Semi Final 1,386 1 7 26/08/2006 DRAGONS v SHARKS 15,297 I 8 27/08/2006 T oaheys League Final 1,868 9 2/09/2006 IlIawarra Junior RL Grand Finals 3,777 10 3/09/2006 Tooheys League Grand Final 4,718 1 II 10/09/2006 Dragons Juniors Home Semi Final 509 1 12 23/09/2006 lDRU Grand Final 1,540 13 14/LO/2006 SuperCross Masters 6,426 14 22/10/2006 National Field of Women 500 15 30/11/2006 WorkChoices Union Meeting 10,000 16 3/12/2006 Ita lian Festiva l 1,000 1 17 20/01/2007 Waratahs v Btumbies 3,726 1 18 23/02/2007 Steelers ] lIniors v Souths 300 19 24/02/2007 DRAGONS v BULLDOGS Trial Game 6,402 20 17/03/2007 Steelers Juniors v Wests 300 21 24/03/2007 Steelcrs Juniors v Newcastle 300 1 22 31/03/2007 DRAGONS v COWBOYS 9,307 1 23 5/04/2007 Steelers Juniors v Wests 300 1 24 7/04/2007 IIlawa rriors v Eastern Suburbs 325 1 25 21/04/2007 Dragons Premier League v Wests 300 26 6/05/2007 Illawarriors v Sydney Uni 289 1 27 12/05/2007 CRL Championship Illawarra v Monaro 538 1 28 18/05/2007 DRAGONS v TITANS LO,890 1 29 20/05/2007 Illawarriors v West Harbour 347 1 30 2/06/2007 CRL Fina l - lIIawarra v Newcastle 504 1 31 10/06/2007 Illawaniors v Manly 250 32 24/06/2007 IilawarrioTs v Gordon 358 Totals 95,579 32 Page 20 Wollongong Sportsground Trust Annua l Report 2006~2007 EVENT HIGHLIGHTS CONCERTS RUGBY LEAGUE This year saw the live concert activity stay the The Stadium hosted onl y 1 trial and 3 home same as last year with a total of L8 concerts. games of the NRL St George-illawarra Dragons Highlights included major music/comedy during the 2006/07 financial year, attracting concerts from INXS (twice), Rogue Traders, 41,896 spectators or an average of 10,474 per Little Britain and Pink which attracted a game, which was a decrease of 15% on the combined total of 18,385 fans, at an ave rage previous year. 3,677 per concert. The Premiers Room continued to allow the Other memorable performances wefe delivered Dragons to grow and improve their corporate by The Veronicas, LIVE, Shannon Noll, Dwight hospitality program, with the games attracting Yoakam, Dave Hughes, Chris Isaak, George an average of 955 guests per ga me. Benson with Al Jarreau, and Paul Stanley. FOOTBALL (SOCCER) FAMILY SHOWS The Stadium hosted 2 pre-season trial games of It was aga in pleasing to see Disney on lee return the ALeague Footba ll Sydney FC, attracting to the WEC for the sixth yea r running. The 9,529 spectators or an average of 4,765 per 'Finding Nemo' production proved very popular game. with the young and the YOllng~at,heartJ selling 20,538 tickers to 10 shows over 5 days. O ther high lights included The Wiggles 'Racing to the Rainbows' and the Hi-5 'Live Action Heroes' shows se lling a combined 12,398 tickets to 4 shows. Musica l performances by local schools including Wakakirri , Southern Stars, Class Act and the Rock Eisteddfod Challenge filled out the remainder of the family event ca lendar which remained solid with a total of 15 evenr days this year. RUGBY UNION WIN Stadium hosted an increased number of BASKETBALL Rugby Union matches this year. The new regional team ca lled The IIlawarriors played 5 The 1MB Wollongong Hawks had a challenging home ga mes in the Sydn ey~based competiti on. season on and off the court. The 17 NBL home The lLlawarrior put up brave competition in the gan1 es attracted 57.058 spectators, at an average face of strong opponents from the Sydney of 3,356 per game, which was down 9% on last teams. season. The NSW Waratahs retumed for a pre-season The number of Hawks corporate supporters Super 14 trial agai nst the ACT Brumbies. This catered for by the WEe this year was an average January fixtu re is now becoming a regular event of 146 per game. at WIN Stadium, and is well supported by the local Rugby Union fans. The IIIawarra District Rugby Union also staged their Grand Final at the Stadium in September. Wollongong Sportsground Tru st Annual Report 2006-2007 Page 21 HUMAN RESOURCES STAFF STRUCTURE PERMANENT TRUST EMPLOYEES AND POSITIONS HELD DURING 2006/ 07 The Trust employed I I full time and 2 part rime staff d u ring 2006/07. General Manager ...... Stuart Barnes 04/05 05/06 06/07 Business Manager...... , ...... Peter Lanyon Managemen t 4 4 4 Staff 8 9 9 Events & Marketing Manager ...... Milton O'Brien Operations Manager ...... Bill White In add ition to the above positions, the Trust utilises casual and contract staff for events and Event Services Coordinator ...... Sean Keaveny the provislon of other services. Venue Services Coordinator...... Lenny Fa irclough Casual event staff are employed directly by the Trust to fill the fo llowing roles: Groundsman ...... Michael Barsby • Security, crowd control Apprentice Groundskeeper ...... Grant Melbert • Operational set-ups, pull-downs • Rigging G rounds Assistant ...... Howard Morris • Sound and ligh ti ng technicians • Ushering Events & Marke ting Officer...... Corrina Matasic* • Event clean ing Reception is t/Admin. Assistant ...... Roslyn Young Contract staff are used by the Trust to provide the following venue services: Accounts/Admin Officer (p/t) ...... Joanne Kocovski • Catering (Delaware North Companies) Day Cleaner (P/t) ...... C hristine Daly • Ticketing (Ticketek) • Merchandising (Playbill) 'Maternity Leave in 2007- Lynd a Starkey replaced • Building Painting (Programmed Maintenance Services) • Repairs and Maintenance (va rio us) ORGANISATION CHART General Manager Business Events & Marketing Operations Manager Manager Manager Accounts/Admin. Events & Marketing Venue Services Event Services Groundsman Officer (p/t) Officer Coordinator Coordinator I I Receptionist/ Day Apprenrice Grounds Admin. Assistan t Cleaner (p/ t) Groundskeeper Assistant Page 22 Wollongong Sportsground Trust Annual Report 2006~2007 ) () HUMAN RESOURCES MANAGEMENT QUALIFICATIONS TRAINING Stuart Barnes has been General Manager since The management and staff training conducted 1997 ancl has over t\;venty years experience in during the year included, venue and event management. He is also on the boards of the lilawana Business Chamber, • The Genera l Manager and Operations Tourism Wollongong, St Mary's Star of the Sea Manager attended the 2007 Venue College and Wollongong City Employment Managers Association Conference. T raining. Stuart's qualifications include Diplomas in Teaching and Public Sector • The Event Services Coordinator attended Management. Microsoft Excel training. Peter Lanyon has been Business Manager since • The Groundsman attended variolls 1998 and has over ten years experience in Turfgrass Association training courses fi nance, ad ministration and business development. Peter's qualifications include a • T he Accounts/Admin. Officer attended Bachelor of Commerce and a Master of seminars on the new Work Pla ce Business Administration. Arrangements and Payroll Tax. Milton O'Brien has been Events & Marketing • Several casual operations staff undertook Manager since 1998 and has over twenty years mobile equipment training and experience in the broadcasting, communica tion accreditation. and events industry. Milton's qualifications include Diplomas in Marketing /Business and • Casual security staff attended security, Frontline Management. crowd and traffic control courses. Bill White has been Operations Manager since • All office staff attended Events Perfect 200 I and has over ten years experience in venue venue booking software training. security, rna nagement and operations. • All staff attended Emergency Evacuation Trai ning for the venues. INDUSTRIAL RELATIONS There were no industrial disputes during 2006- 07 Employees of the Trust are employed under the Wollongong Sportsground Trust Australian Workers Union (State) Award. EXECUTIVE REMUNERATION Year ending 2006 2007 Number of Executive Officers with remuneration equal to or exceeding equiva lent of SES Level 1 o o Number of Executive Officers with remuneration equal to or exceeding equivale_nt of SES Leve l 5 o o Wollongong Sportsground Trust Annual Report 2006~2007 Page 23 ) HUMAN RESOURCES EQUAL EMPLOYMENT OPPORTUN11Y (EEO) The T rust is committed to the implementation of its' Equal Employ ment O pportu nity (EEO) Pol icy, and observes EEO principles in its' recruitment of staff, workplace practi ces and development of training programs. The follow ing tables provide statistical EEO information on the Trust's perma nent workforce. The Trust also employs arollnd 120 casuals, 350/0 of which are women. Table A. Trends in the Representation of EEO Groups % of Total Staff Benchmark EEO Group 2005/06 2006/07 OrT.rget Women 50% 31% 33% Aboriginal people and Torres Strait Islanders 2% 0% 0% People whose first language was not English 20% 0% 0% People with a d isa bility 12% 0% 0% People with a disability requiring work-related adjustment 7% 0% 0% Table B. Trends in the Distribution of EEO Groups Distribution Index Benchmark EEO Group 2005/06 2006/07 O r Target Women LOO n/a n/a Aboriginal people and Torres Strait Islanders 100 People whose fi rst language was not Engli sh 100 People with a disabili ty 100 People with a d isability requiring work-related adjustment 100 FREEDOM OF INFORMATION For the period of 1 July 2006 to 30 June 2007, the T rllst received no requests under the Freedom of Information Act 1992 (FaTAct). Requests under the FaT Act must be in writing to the General Manager and accompanied by an application fe e of $30.00. Page 24 Wollongong Sportsground Trust Annual Report 2006-2007 CODE OF CONDUCT - Employees CODE OF CONDUCT • While employed at the Trust, to not accept any employment with another In line with th e Trustee's and Management o rga nisation that is a supplier of Code of Conduct, a similar Policy bas been competitor of the T flls t, o r any other developed for Trust employees. The aim of the employment that is in conflict with your Policy is to ensure all staff observe the highest position at the Trust; standards of ethics, integrity and behaviour during their employment with the Trust. • To dress in an appropriate manner and to ensure that appearance is presentab le , Key elements of the Code of Conduct include clean, neat and tidy; the following' • To not make any unauthorised state lnents • Compliance with all Trust policies, to the media abo ut the Trust's business procedures, rules, regulations and (requests for media statements are to be contracts; referred to the General Manager) • Compliance with all reasonable and legal • No discrimination or harassment of co instructio ns of managers; workers, customers, clients or rn e rnbers of the public on any grounds including sex, • To be honest and fair in dealings with marital status, pregnancy, age, race, ethnic cust0 l11 erS , clien ts, co-workers, Trust or national origing, physical or inte llectual management and the general publicj impairment, political or religio us conviction, homosexuality, transsexual ity, • To maintain punctllalityj and HIV/AlDS; • To observe Occupational Health & Safety • N o fighting in the workplace; rulesj • N o swearing in the workplace; • To respect the Trust's ownership of all Trust funds, equipment, supplies, books, • No drugs or alcohol in the workplace. records and property; Breaches of the Code of Conduct are dealt • U nless express permission has been with in accordance with the Trust' s granted, Trust equipment, facil ities o r D iscipline and Terminatio n Po licy. resources are not to be used for private purposes; • The Trust's computing and Internet fa cili ties should not be used to access, TIMES FOR PROVISIONS OF SERVICE download, transmit o r d isplay material which mi ght be offensive to co-workers or Trust Management endeavours to acknowledge the public, and is not relevant to their correspondence within seven working days, work. although detailed responses may vary according to the nature of the enquiry. • To maintain during employment with the Trust and after the termination of If requested, the Trust will prov ide fina ncial employment, the confidentiality of any settlement advances with hirers immed iately confidential information, records, o r other after the event. O thcf'Alise, settlements and materi als acq uired during the course of balances are generally settled within five employment with the Trust; worki ng days of the event. Wollongong Sportsground Trust Annual Report 2006· 2007 Poge 25 ) ETHNIC AFFAIRS ETHNIC AFFAIRS POLlCY In line wi th NSW Government policy, the 2. Community Harmony W ollongong Sportsground Trust has prepared an Ethnic Affairs Priority Statement (EAPS). • Support the use of sport and entertainment as a mechanism to improve community rela tions The Wollongong Sportsgrou nd Trust and va luing of cu ltural diversities recogn ises the cu ltural and linguistic dive rsity of the people of New South Wales. The Trust • Develop a work environment that is also acknowledges and va lues the rich benefits harmonious and sensitive to religious beliefs these people bring to a community, and wi ll provide the opportunity for all people to • Address racia l vilification issues in the work participate in and contribute to the Trust's and event environment activities. • Use a broader range of materials when After consultation with management and staff developing communication materials and in June 2003, the Trust prepared an EAPS that other publications aims to improve the management and delivery of services to people from culturally and • Develop venue signage that is sensitive to the linguisti ca lly diverse grou ps. needs of linguistically d iverse groups The Trust es pecially recognises the diversity of • All staff will be aware of Government and its' event pa trons and cl ients, and the Trust's anti~ h arassment and anti~ Implementation Plan is designed to improve discrimination policies and practices their enj oyment at all sports, entertainment and other events, as well as their interaction with venue staff. 3. Economic and Cultural Opportunities The fo llowing ill ustrates the Trust's EAPS • Provide improved employment opportunities strategy in the three key resu lt areas: for people from cu lturally d ive rse backgrounds 1. Social Justice • Provide improved industty related train ing opportunities for people from culturally • Develop Trust polic ies and programs that diverse backgrounds are responsive ~1Il d sensitive to linglllstic, cultural, racial and religious diversity • Develop and support initiatives that support and utilise cross cultural skills of employees • Develop policies and procedures to inform staff about access to interpreters and translators Page 26 Wollongong Sportsground Trust Annual Report 2006-2007 ENVIRONMENT WASTE REDUCTION AND PURCHASING POLICY (WRAPP) The NSW Government's Waste Reduction and • Increasing the range and quantity of Purchasing Policy (WRAPP) requires all srate recycled content materials being government age ncies, including the Woll ongong purchased Sportsground Trust, to develop and implement a WRAPP plan to reduce waste in four scheduled • Rais ing staff aware ness about the WRAPP areas: The waste reduction component of the WRAPP • paper products Plan req uires that the Trust minimises the • office equipment and components creation of waste, and that wastes they genera te • vegetation mate ri al; and are separated for collection and recycli ng. • constru ction and demolition material. In deve loping its WRAPP Plan, the Trust will, It also requires that priority be given to buying materials with recycled content where they are (a) assess the nature and sources of waste, cost and pe rformance competitive. and (b) develop strategies for minirn ising waste, WRAPP plans provide in formation on strategies and the reuse and recycling of waste each age ncy will undertake to reduce waste and created. increase purchases of recycled content products and provide data on, Regarding the materials buying component of d1e WRAPP Plan, the Trust will, • total quantities of scheduled wastes be ing generated and recycled; and (a) assess current purchases of recycled products, materials and equipment • total quantities of materials beLng (b) review its' product purchasing practices, pu rchased which conta in recycled content. sta ndards and specifica ti ons to re move impediments to the purchase of preferred The Woll ongong Sportsground Trust is products, and committed to implementing a WRAPP Plan at (c) identifY preferred products to be its faci li ties, and to reporting on progress. purchased under its new purchasing plans. The Plan includes strategies to reduce waste and increase purchases of recycled content products. During 2006-07, the Trust's major WRAPP o utcomes included: Strategies target key areas of activity such as: • Refined the post~event cleaning • Inclusion of WRAPP pri nciples in operations to better collect and dispose of corporate plans and operational policies tecyclable waste, including the and practices implementation of dual coll ecti o n facil ities and cardboard collection and • Including contract specifications requiring recycling. the supply of recycled content products • Im proved business po licies and • Improving was te avoidance and recycling procedures to include WRAPP objectives. systems • Contin ued education and awareness for • Establishing data collection sys tems staff, contractors and the public regarding recyclable waste and the importance of reducing land fill. Wollongong Sportsground Trust Annual Report 2006-2007 Page 27 ) FINANCE OPERATING RESULT co mpared to $451,008 last year. Tbe nett decrease of 31% ..vas due mainly to the reductions in the For 2006/07, the Trust delivered an operating number of Dragons games and the lower public loss of ($ 1,208,776) compared to an operating patronage and level of corporate catering at Hawks profit of $71,063 in 2005/06. Excluding the games. effects of Government grants and depreciation, there was a nett operating profit of $63,241, Ticketing compared to a nett operating profit of Ticketing selvices at the venues are provid ed by $434,496 last year. Ticketek Pty Ltd under an eleven year contract. The nett operating profit for 2006/07 was an The sbare of ticketing fees to the Trust for 2006/07 unfavourable variation of $246,166 over the was $237,770 compared to $268,987 last year. budgeted operating profit of $309,398. This variation was mainly due to a poor events dialY Advertising and movement of several Dragons games out of Advertising revenue arises from the sale of signage this financial year. spaces on the interior and exterior of the venues. This year advertisi ng sa les generated $130, 184 compared to $122,375 in 2005/06. REVENUE Total reve nue for the year was $3,161,101 EXPENDITURE compared to $4,078,550 In 2005/06 (excluding Government grants). Excluding depreciation, the total expenditure for the year was $3,097,860 compared to $3,644,054 in The 22% decrease in total revenue was mainly 2005/06. related to reduced ticket and catering commissions, red uced venue hire and reduced Salaries cost recoveries from fewer events at both the In 2006/07, the sa laries paid to permanenr staff Entertainment Centre and WIN Stad ium. (see positions in Organisa ti on Chart on page 22) totalled $808,027 compared to $735,339 last year. Venue Hire Revenue from venue hire for the year was Cas ual Staff $690,455 compared to $986,731 in 2005/06. The wages paid to casual event staff (security, The decrease of 30% was mai nly due to the low ushers, cleaners, operations and technical) in number of Dragons games at W IN Stadium, 2006/07 was $674,991 compared to $782,674 in and fewer exhibition/retail sales and 2005/06. The majority of this cost was recovered conferences <='It the Entertainmenr Centre. frorn th e hirers of the venues. Cost Recovery Repairs and Maintenance Cost recovety from hirers of the venues was During the year, a total of $259,336 was spent on $1,043,998 compared to $1,301,533 in repairs and maintenance compared to $374,979 last 2005/06. The 19% decrease arose mainly from year. reductions in the number of Dragons games and other WEC events. The maintenance activity is performed by a mix of in~house staff, service contracts and trade Catering subcontractors under the control of the Operations Catering services at the venues are provided by Manager. Delaware North Companies Australi a Pty Ltd (DNC) under a ten yea r contract. The R&M expend iture in 2006/07 included $90,436 pa id to Programmed Maintenance Services The commissions paid to the TrLlsr by DNC on for building repainting. Due to the venues' location the sale of food and beverage was $3 11,241 by City Beach, the buildings are subject to Page 28 Wollongong Sportsground Trust Annual Report 2006-2007 FINANCE continuous attack by salt air and requ ire higher FUTURE OPERATING POSITION than normal surface maintenance. For the 2007/08 financial yea r, the Trust is Advertising, Marketing and Protnotion forecasting an operational profit of $384,684, Expend iture on advertising, marketing and excluding the effects of Government grants and promotion totalled $40,592 this year compared depreciation (See Page 31). to $69,885 last year. Total Revenue is expected to be slightly up Utilities compared to last year. Every ind ication is that The cost of electricity, gas and water was the concert market wi ll be relatively strong $200,536 in 2006/07, compared to $221,057 during 2007/08, but with short lead times, it is last yea r. The decrease was main ly related to difficult to forecast event numbers with any implementing successful programs to reduce great certainty. electri city at the Entertainment Centre. At the sa me time, the Trust is focused on Consultants containing, and where possible reducing, the There was no expenditure on consultants for fixed costs of running the venues, However, the 2006/07 year. overa ll Expenditure for the year is expected to increase by 3% compared to 2006/07. Cost of Printing Annual Reports The 2006/07 Annual Report was produced for a total external cost of $2,997, and is also available at \vww,wec.org.au. REVENUE AND EXPEDITURE DRIVERS Major Revenue Streams Comparison $1 ,200,000 +-~------ $1,000,000 +---~~~- $800,000 .03/04 . 04/05 $600,000 0 05/06 0 06/07 $400,000 $200,000 $0 Venue Hire Cost Recovery Catering Ticketing Advertising S800,000 Major Expenditure Accounts Comparison $700.000 l ------f~.~03~/:04~~.~04~/0:-5 $600.000 S500,000 0 05/06 0 06/07 1------$400,000 $300.000 $200,000 $100,000 10 Ch_ Salaries Casual Event Stafr R&l\J! Utilities Ins urance Adv,Mkt &Promo Wollongong Sportsground Trust Annua l Report 2006-2007 Page 29 FINANCE TIME FOR PAYMENT OF ACCOUNTS The Trust endeavours to comply with NSW Treasury requirements regarding prompt settl ement of all invoices received. Any delays in payment during the year were mainly due to disputed claims, missing invoices or shorHerm cash fl ow restrictions. Disputed claims are resolved as qU ickly as possible by prompt discussions with the staff member who placed the order and the supplier. If invoices are missing, new ones are requested, authorised and paid. Trust cas h ~ flow restrictions have occasionally led to payment oLltside of suppliers' trad ing terms, but where possible, suppliers are contacted and new payment terms agreed. The fo llowing schedules indicate the Trust's payment performance in 2006/07: Aged Accounts Analysis at the end of each quarter Current Between 30 Between 60 (ie within due Less rha n 30 and 60 days and 90 days More than 90 Total Payab le date) days overdue overdue overdue days overdue Quarter $ $ $ $ $ $ September 284,825 262,577 22,248 Quarter December 255,440 250,979 3,439 688 334 Quarter March 301,365 229,330 70,115 1,920 Quarter June 374,013 272,907 38,249 3,520 59,337 Quarter Accounts paid on time within each quarter Total Amount Q uarter Target % ActtIal % $ Paid September 100% 82% 811,128 988,530 Quarter December 100% 91% 630,851 693,481 Quarter March 100% 82% 407,756 498,397 Quarter June 100% 96% 367,662 383,776 Quarter Page 30 Wollongong Sportsground Trust Annual Report 2006-2007 FINANCE PERFORMANCE AGAINST BUDGET 2006/ 07 2006/ 07 2007/ 08 Revenue Budget Actual Budget Advertising 11 6,500 130,184 150,900 Catering commiss ions 408,555 311 ,241 408,950 Corporate spo nsorships 011Cl. WIN Na ming Rights) 194,000 276,378 225,000 Costs recovered from hirers 1,0 17,950 1,043,998 1,271,680 Interest 40,000 52,640 55,200 Merchandising commissio ns 45,500 36,9 15 40,100 Rent 119,000 130,249 126,960 T icketing charges, fees 235,400 237,770 253,300 Net Ticke t Sa les - WST Pro motions 155,304 100,000 Venue hire fees & commiss io ns 934,450 690,455 898,300 Other revenue 66,000 95,967 68,020 Total revenue 3,178,355 3,161,101 3,598,410 Expenditure Advertising 45,000 26,242 50,000 Amortisation of leased assets 27,340 20,648 20,422 Artist fees - WST Promotions Audit fees 24,000 24,500 24,000 Bank charges 1,400 1,960 2,000 Borrowing costs 7,622 27,341 23,409 Casual staff 582,235 674,991 699.600 Catering selvices - recovered from clients 12,028 Catering commissio ns· pa id to clients 3,450 Consultants C leaning materia ls 30,000 33,762 40,000 Co-Promotions Expenses/Buy-ins 164,452 70,000 Electricity and gas 159,000 152,763 160,000 Entertainment 17,000 14,368 17 ,000 Equipment hire 167,720 136,775 165,67 1 Genera l expenses 243,809 278,682 25 4,962 Insura nce 141 ,600 125,644 129,200 Legal fees 23,000 20,7 17 2[,000 Marketing and promoti 0l1 15,000 14 ,350 25,000 Provisio ns for leave entitlements 8,670 -17,883 50,000 Repalfs and maintenance 300,000 259,336 297,262 Sa laries and wages 780,000 808,027 826,400 Security ~ building 3,000 3,043 3,500 Playing Surface Maintenance 28,000 47 ,25t 42,000 Statio nery) printing and postage 21,600 18 ,95 3 25, 100 Supera nnuation 122,601 117,58J l37,340 Telephone 40,360 47,604 40,360 Ticketing staff 26,000 31,398 29,500 Travelling expense 4,000 2, 104 4,000 Water 50,000 47,773 56,000 Total expenditure 2,868,957 3,097,860 3,213,726 Net (deficiency}/sufplus 309,398 63,241 384,684 Note: This Income Statement exdudes the effects of Government Grants and DepreCiation. Wollongong Sportsground Trust Annual Report 2006-2007 Page 31 GPO BOX 12 Sydney NSW 2001 INDEPENDENT AUDITOR'S REPORT Wollongong Sportsground Trust and Controlled Entity To Members of the New South Wales Parliament I have audited the accompanying financial report of the Wollongong Sportsground Trust (the Trust) and the Trust's controlled entity (the consolidated entity), which comprises the balance sheet as at 30 June 2007, and the operating statement, statement of recognised income and expense and cash flow statement for the year then ended, a summary of significant accounting policies and other explanatory notes. The consolidated entity comprises the Trust and the entity it controlled at the year's end or from time to time during the financial year. Auditor's Opinion In my opinion, the financial report: • presents fairly, in all material respects, the financial position of the Trust and the consolidated entity as of 30 June 2007, and of its financial performance and its cash flows for the year then ended in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) • is in accordance with section 41 B of the Public Finance and Audit Act 1983 (the PF&A Act) and the Public Finance and Audit Regulation 2005 . Trustees' Responsibility for the Financial Report The Trustees are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the PF&A Act. This responsibility includes establishing and maintaining internal control relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances . Auditor's Responsibility My responsibility is to express an opinion on the financial report based on my audit. I conducted my audit in accordance with Australian Auditing Standards. These Auditing Standards require that I comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Trust's preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Trustees, as well as evaluating the overall presentation of the financial report. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. My opinion does not provide assurance: • about the future viability of the Trust or consolidated entity, • that they have carried out their activities effectively, efficiently and economically, or • about the effectiveness of their internal controls. Independence In conducting this audit, the Audit Office has complied with the independence requirements of the Australian Auditing Standards and other relevant ethical requirements. The PFftA Act further promotes independence by: • providing that only Parliament, and not the executive government, can remove an Auditor-General, and • mandating the Auditor-General as auditor of public sector agencies but precluding the provision of non-audit services, thus ensuring the Auditor-General and the Audit Office are not compromised in their role by the possibility of losing clients or income. ~. ~~V J P J Boulous CA Director, Financial Audit Services 19 October 2007 SYDNEY ) WOLLONGONG SPORTSGROUND TRUST AND ITS CONSOLIDATED DIVISION ABN 14 088 284 434 ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2007 WOLLONGONG SPORTSGROUND TRUST STATEMENT BY MEMBERS OF THE TRUST Pursuant to the requirements of the Public Finance and Audit Act, 1983, and in accordance with a resolution of the members of the Wollongong Sports ground Trust, we declare on behalf of the Trust that in our opinion: I the financial statements and notes, set out on pages 2 to 18 exhibit a true and fair view of the fmancial position of the Wollongong Sportsground Trust as at 30 June 2007 and transactions for the year then ended; and 2 the report has been prepared in accordance with the provisions of the Public Finance and Audit Regulation, 2005, and the Treasurer's Directions. Further, we are not aware of any circumstances which would render any particulars included in the financial statements to be misleading or inaccurate . .. c~ Chris Christodoulou Chairman General Manager Dated 19th October 2007 Annual Financial Report 06-07 1 ) WOLLONGONG SPORTSGROUND TRUST INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2007 Consolidated WST Note 2007 2006 2007 2006 $ $ $ $ Advertising - signage 130,184 122,375 130,184 122,375 Catering commissions 311,241 451,008 311,241 451,008 Corporate sponsorships 276,378 209,720 276,378 209,720 Cost recoveries 1,043,998 1,301,533 1,043,998 1,301,533 Grants received - Operating subsidy 78,000 78,000 Grants received 815,000 815,000 Financial income 52,640 47,587 52,640 47,587 Merchandising commissions 36,915 39,941 36,915 39,941 Rent 130,249 116,659 130,249 116,659 Ticketing charges, fees 237,770 268,987 237,770 268,987 Ticket Sales (Net) 155,304 401,378 155,304 401,378 Venue hire fees & commissions 690,455 986,731 690,455 986,731 Other revenue 95,967 132,631 95,967 132,631 Total revenue 3,161,101 4,971,550 3,161,101 4,971,550 Advertising 26,242 47,575 26,242 47,575 Amortisation of leased assets 20,648 27,341 20,648 27,341 Artist Fees 176,000 176,000 Audit fees 9 24,500 24,000 24,500 24,000 Casual staff 674,991 782,674 507,035 Catering services - clients 12,028 21,469 12,028 21,469 CommissionslRebates 3,450 17,094 3,450 17,094 Cleaning 33,762 30,737 33,762 30,737 Co-Promotion ExpenselBuy-ins 164,452 112,432 164,452 112,432 Depreciation 1,272,017 1,256,433 1,272,017 1,256,433 Electricity & gas 152,763 158,388 152,763 158,388 Entertainment 14,368 17,815 14,368 17,815 Equipment hire 136,775 180,541 136,775 180,541 Financial expenses 29,302 73,330 29,302 73,330 General expenses 278,68 1 290,031 223,201 270,448 Insurance 92,214 111,608 92,214 111,608 Legal fees 20,717 21,509 20,717 21,509 Marketing & promotion 14,350 22,310 14,350 22,3 10 Personnel Services 1,671,626 568,970 Playing surface maintenance 47,251 53,843 47,251 53,843 Provision for leave entitlements (17,883) 50,931 35,821 Repairs & maintenance 259,336 374,979 259,336 374,979 Salaries & wages 808,027 735,339 523,678 Security - Building 3,043 3,361 3,043 3,361 Stationery, printing and postage 18,953 22,394 18,953 22,394 Superannuation 117,581 117,754 79,777 Telephone 47,604 40,868 47,604 40,868 Ticketing staff 31,398 29,555 31,398 29,555 Travelling expense 2,104 4,987 2,104 4,987 Water rates 47,773 62,669 47,773 62,669 Workers compensation insurance 33,430 32,520 23,520 Total expenses 4,369,877 4,900,487 4,369,877 4,900,487 (Loss)/profit for the year (1,208,776) 71,063 (l ,208,776) 71,063 The income statement is to be read in conjunction with the notes to the financial statements set out on pages 6 to 18. Annual Financial Report 06-07 2 WOLLONGONG SPORTSGROUND TRUST STATEMENT OF RECOGNISED INCOME AND EXPENSE FOR THE YEAR ENDED 30 JUNE 2007 Consolidated WST 2007 2006 2007 2006 (Loss )/profit for the year (1,208,776) 71,063 (1,208,776) 71,063 Total recognised income and expense for the year (1,208,776) 71 ,063 (1,208,776) 71,063 The statement of recognised income and expense is to be read in conjunction with the notes to the financial statements set out in pages 6 to 18. Annual Financial Report 06-07 3 WOLLONGONG SPORTSGROUND TRUST BALANCE SHEET AS AT 30 JUNE 2007 Consolidated WST Note 2007 2006 2007 2006 $ $ $ $ Assets Cash and cash equivalents 2 912,734 1,344,045 912,734 1,344,045 Trade and other receivables 3 318,016 718,561 322,932 726,773 Total current assets 1,230,750 2,062,606 1,235,666 2,070,818 Property, plant and equipment 4 49,661,058 50,848,885 49,661,058 50,848,885 Total non-cnrrent assets 49,661,058 50,848,885 49,661,058 50,848,885 Total assets 50,891,808 52,911,491 50,896,724 52,919,703 Liabilities Trade and other payables 5 1,098,218 1,538,552 1,311,962 1,773,474 Borrowings 6 36,160 196,735 36,160 196,735 Employee benefits 7 123,418 151,570 Deferred revenue 8 255,550 233,467 255,550 233,467 Total current liabilities 1,5 13,346 2,120,324 1,603,672 2,203,676 Borrowings 6 15,999 70,198 15,999 70,198 Employee benefits 7 85,410 75,140 Deferred revenue 8 2,880,000 3,040,000 2,880,000 3,040,000 Total non-current liabilities 2,981,409 3,185,338 2,895,999 3,110,198 Total liabilities 4,494,755 5,305,662 4,499,671 5,313,874 Net assets 46,397,053 47,605,829 46,397,053 47,605,829 Eqnity Retained earnings 1O 30,557,293 31,766,069 30,557,293 31,766,069 Asset revaluation reserve 10 15,839,760 15,839,760 15,839,760 15,839,760 Total equity 46,397,053 47,605,829 46,397,053 47,605,829 The balance sheet is to be read in conjunction with the notes to the financial statements set out on pages 6 to 18. Annual Financial Report 06-07 4 ) WOLLONGONG SPORTSGROUND TRUST CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2007 Consolidated WST Note 2007 2006 2007 2006 $ $ $ $ Cash flows from operating activities Cash receipts from customers 3,545,523 4,048,235 3,545,523 4,048,235 Cash paid to suppliers and employees (3,703,813) (3,433,172) (3,703,813) (3,433,172) Interest received 52,640 47,587 52,640 47,587 Proceeds from Government Grants 893,000 893,000 Interest paid (6,050) (71,397) (6,050) (71,397) Net cash from operating activities 14 (111 ,700) 1,484,253 (111,700) 1,484,253 Cash flows from investing activities Acquisition of property, plant and (104,837) (208,245) (104,837) (208,245) equipment Proceeds from sale of property, plant and 30,909 30,909 equipment Net cash used in iuvesting activities (104,837) (177,336) (l04,837) (177,336) Cash flows from financing activities Repayment of borrowings (637,648) (637,648) Payment of finance lease liabilities (214,774) (85,429) (214,774) (85,429) Net cash used in financing activities (214,774) (723,077) (214,774) (723,077) Net (decrease)/increase in cash and cash (431,311) 583,841 (431,311) 583,841 equivalents Cash and cash equivalents at 1 July 1,344,045 760,204 1,344,045 760,204 Cash and cash equivalents at 30 June 2 912,734 1,344,045 912,734 1,344,045 The cash flow statement is to be read in conjunction with the notes to the financial statements set out on pages 6 to 18. Annual Financial Report 06-07 5 WOLLONGONG SPORTSGROUND TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007 1 Significant accounting policies The Wollongong Sportsground Trust is domiciled in Australia. The consolidated fmancial report of the Trust for the financial year ended 30 June 2007 comprise the Trust and the Wollongong Sportsground Trust Division (together referred to as the 'consolidated entity'). The financial report was authorised for issue by the Trust members on the 19 October 2007. (a) Statement of compliance The financial report is a general purpose financial report which has been prepared in accordance with Australian Accounting Standards ("AASBs") and the provisions of the Public Finance and Audit Act 1983, the Public Finance and Audit Regulations 2005 and the Treasurer's directions. International Financial Reporting Standards ("IFRSs") form the basis of Australian Accounting Standards ("AASBs") adopted by the AASB, and for the purposes of this report are called Australian equivalents to IFRS ("AIFRS") to distinguish from previous Australian GAAP. (b) Basis of preparation Accounting standards available for early adoption have been deemed not applicable to the Trust. Therefore, the impact of not applying standards available for early adoption on the financial position and financial performance of the Wollongong Sportsground Trust has been determined as $nil. The financial report is prepared on the historical cost basis. The accounting policies set out below have been applied consistently to all periods presented in the consolidated financial report. (c) Basis of consolidation (i) Subsidiaries Wollongong Sportsground Trust Division is a division of the Government Service, established pursuant to Part 2 of Schedule I to the Public Sector Employment and Management Act 2002. It is a not-for-profit entity as profit is not its principal objective. It is consolidated as part of the NSW Total State Sector Accounts. It is domiciled in Australia and its principal office is at the corner of Crown and Harbour Streets, Wollongong, New South Wales. The Wollongong Sportsground Trust Division's objective is to provide personnel services to the Wollongong Sportsground Trust. The Wollongong Sportsground Trust Division commenced operations on 17 March 2006 when it assumed responsibility for the employees and employee-related liabilities of the Wollongong Sportsground Trust. The assumed liabilities were recognised on 17 March 2006 together with an offsetting receivable representing the related funding due from the former employer. Annual Financial Report 06-07 6 WOLLONGONG SPORTSGROUND TRUST NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007 1 Summary of siguificant accounting policies cont... (c) Basis of consolidation (cont'd) The financial statements of the Wollongong Sports ground Trust Division, a division of the Government Service, are included in the consolidated financial statements from the date when the Wollongong Sportsground Trust Division assumed responsibility for the employees and employee·related liabilities of the Wollongong Sportsground Trust until the date that responsibility ceases. (ii) Transactions eliminated on consolidation Intragroup balances and any unrealised gains and losses or income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. (d) Functional and presentation currency The consolidated financial statements are presented in Australian dollars, which are the consolidated entity's functional and presentation currencies. (e) Property, plant and equipment (i) Valuation ofphysical non-current assets atfair value As the Trust is considered to be a transitional entity under NSW Treasury's Policy and Guidelines Paper TPP 07-01, regarding the "Valuation of Physical Non-current Assets at Fair Value", it is required to value each class of physical non-current assets on the fair value basis. As a transitional entity, fair value for the Trust's assets is determined as depreciated replacement cost. Where parts of an item of plant and equipment have different useful lives, they are accounted for as separate items of plant and equipment. Valuations The Trust's valuation offreehold land of $16,1 50,000 and buildings of $37,327,595 is based on an independent valuation performed as at I July 2003 by W J Smith of the State Valuation Office, which management considers is still fair value . (ii) Leased assets Leases in terms of which the consolidated entity assumes substantially all the risks and rewards of ownership are classified as finance leases. (iii) Operating leases Payments made under operating leases are expensed on a straight line basis over the telm of the lease, except where an alternative basis is more representative of the pattern of benefits to be derived from the leased property. Annual Financial Report 06-07 7 ) WOLLONGONG SPORTSGROUND TRUST NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007 1 Summary of siguificant accounting policies cont ... (e) Property, plaut and equipmeut (cout'd) (iv) Subsequent costs The consolidated entity recognises in the carrying amount of an item of plant and equipment the cost of replacing part of such an item when that cost is incurred if it is probable that the future economic benefits embodied within the item will flow to the consolidated entity and the cost of the item can be measured reliably. All other costs are recognised in the income statement as an expense as incurred. (v) Depreciation Depreciation is charged to the income statement on a straight-line basis over the estimated useful lives of each part of an item of plant and equipment. Land is not depreciated. The estimated useful lives in the. current and comparative periods are as follows : Buildings 40 years Computer Hardware - Leased 3 years Plant and equipment 4-10 years Motor vehicles 3 to 10 years The residual value, the useful life and the depreciation method applied to an asset are reassessed at least annually. (vi) Capitilisation threshold Property, plant and equipment costing $1 ,000 and above individually are capitilised. (I) Trade and other receivables Trade and other receivables are stated at their cost. (g) Cash aud cash equivalents Cash and cash equivalents, comprises cash on hand and bank balances. (h) Borrowings Interest-bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost with any difference between cost and redemption value being recognised in the income statement over the period of the borrowings on an effective interest basis. (i) Employee benefits (i) Defined contribution superannuation funds Obligations for contributions to defined contribution superannuation funds are recognised as an expense in the income statement as incurred. Annual Financial Report 06-07 8 WOLLONGONG SPORTSGROUND TRUST NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007 1 Summary of significant accounting policies cont... (i) Employee benefits (cont'd) (ii) Long term service benefits The consolidated entity's net obligation in respect of long-term service benefits, other than defined contribution superannuation funds, is tbe amount of future benefits that employees have earned in return for their service in the current and prior periods. Long service leave entitlements have been valued using tbe short-hand method to approximate the present value. It is unlikely that the difference between tbe present value and the nominal value will be material. (iii) Wages, salaries and annual leave Liabilities for employee benefits for wages, salaries and annual leave that are expected to be settled within 12 months of the reporting date represent present obligations resulting from employees' services provided to reporting date, are calculated at undiscounted amounts based on remuneration wage and salary rates that the consolidated entity expects to pay as at reporting date including related on-costs, such as workers compensation insurance and payroll tax. Non-accumulating non-monetary benefits, such as cars, are expensed based on the net marginal cost to tbe consolidated entity as the benefits are taken by the employees. (j) Provisions A provision is recognised in the balance sheet when the consolidated entity has a present legal or constructive obligation as a result of a past event, and it is probable tbat an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to tbe liability. (k) Trade and other payables Trade and other payables are stated at their amortised cost. Trade payables are non-interest bearing and are normally settled on 60·day terms. (I) Revenue (i) Services rendered Revenue from services rendered is recognised in the income statement in proportion to the stage of completion of the transaction at balance date. (ii) Interest income Interest revenue is recognised in the income statement as it accrues, using the effective interest method. (iii) Rental income Rental income is recognised in the income statement on a straight line basis over the term of the lease. Lease incentives granted are recognised as an integral part of the total rental Income. Annual Financial Report 06-07 9 ) WOLLONGONG SPORTS GROUND TRUST NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007 1 Summary of significant accounting policies cont ... (iv) Deferred revenue - WIN naming rights The total contract value has been recognised as deferred revenue and is being amortised in equal instalments over the life of the contract, being 25 years. (v) Government grants Grants that compensate the consolidated entity for expenses incurred are recognised as revenue in the income statement on the systematic basis in the same periods in which the expenses are incurred. Other grants are recognised as income when received (m) Expenses (i) Operating lease payments Payments made under operating leases are recognised in the income statement on a straight line basis over the term of the lease. (ii) Finance lease payments Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest in the remaining balance of the liability. (iii) Borrowing costs Borrowing costs include interest and are recognised as expenses in the period in which they are incurred, using the effective interest method. (n) Income tax Under the NSW Treasury Commercial Policy Framework the Trust is included in the Tax Equivalent Regime for Government Business and therefore, under Treasury Policy Paper TPP 03-4, would prima facie have a tax equivalent liability to the Office of State Revenue calculated at 30% of accounting profit. However as the Trust has incurred an accounting loss, there is no tax equivalent liability payable. (0) Goods and services tax Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the balance sheet. Cash flows are included in the statement of cash flows on a gross basis. The GST components from cash flows arising from investing and financing activities which are recoverable from, or payable to, the A TO are classified as operating cash flows. Annual Financial Report 06-07 10 WOLLONGONG SPORTSGROUND TRUST NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007 1 Summary of siguificant accounting policies cont ... (p) Accouuting estimates aud judgements The preparation of the financial report in conformity with Australian Accounting Standards requires the making of estimations and assumptions that affect the recognised amounts of assets, liabilities, revenues and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. These accounting policies have been consistently applied by the consolidated entity. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. (q) Segment reporting The Trust's operations predominantly entail the management and promotion of the WIN Entertainment Centre and the Wollongong Showground (currently known as WIN Stadium). Annual Financial Report 06-07 11 ') WOLLONGONG SPORTSGROUND TRUST NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007 Consolidated WST 2007 2006 2007 2006 $ $ $ $ 2 Cash and cash eqnivalents Cash on hand 350 350 350 350 Bank balances 912,384 1,343,695 912,384 1,343,695 912,734 1,344,045 912,734 1,344,045 3 Trade and other receivables Trade receivables 318,016 596,021 322,932 604,233 Less: allowance for impairment of trade receivables (1,000) (1,000) Prepayments 123,540 123,540 318,016 718,561 322,932 726,773 4 Property, plant and equipment Freehold land At Fair value 16,150,000 16,150,000 16,150,000 16,150,000 Buildings At Fair value 37,327,595 37,327,595 37,327,595 37,327,595 Accumulated depreciation (4,398,710} (3,305,520} (4,398,710} (3,305,520} 32,928,885 34,022,075 32,928,885 34,022,075 Plant and Equipment At Fair value 1,610,800 1,449,955 1,610,800 1,449,955 Accumulated depreciation (1,117,759} (939,094} (I,117,759} (939,094) 493,041 510,861 493,041 510,861 Motor vehicles At Fair value 75,413 75,413 75,413 75,413 Accumulated depreciation (31,031} (l4,480} (31,031} (14,480) 44,382 60,933 44,382 60,933 Leased Plant and Equipment At Fair value 91,991 147,998 91,991 147,998 Accumulated amortisation (47,241} (42,982} (47,241} (42,982} 44,750 105,016 44,750 105,016 Total Property, Plant and Equipment Net book value 49,661,058 50,848,885 49,661,058 50,848,885 Reconciliations Reconciliations of the carrying amounts for each class of property, plant and equipment are set out below: Annual Financial Report 06-07 12 WOLLONGONG SPORTSGROUND TRUST NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007 4 Property, plant and eqnipment cont .... Consolidated WST 2007 2006 2007 2006 $ $ $ $ Freehold land Carrying amount at beginning of year 16,150,000 16,150,000 16,150,000 16,150,000 Carrying amount at end of year 16,150,000 16,150,000 16,150,000 16,150,000 Buildings Carrying amount at beginning of year 34,022,075 35,104,710 34,022,075 35,104,710 Additions 17,056 17,056 Depreciation {I,093,190) (1 ,099,691) (1,093,190) {1,099,691) Carrying amount at end of year 32,928,885 34,022,075 32,928,885 34,022,075 Plant and equipment Carrying amount at beginning of year 510,861 492,144 510,861 492,144 Transfer from leased assets 39,618 27,271 39,618 27,271 Additions 104,837 132,503 104,837 132,503 Depreciation {162,275) (141,057) {162,275) (141,057) Carrying amount at end of year 493,041 510,861 493,041 510,861 Motor vehicles Carrying amount at beginning of year 60,933 48,929 60,933 48,929 Additions 58,686 58,686 Disposals (30,997) (30,997) Depreciation (16,551) (15,685) {16,551 ) (15,685) Carrying amount at end of year 44,382 60,933 44,382 60,933 Leased plant and equipment Carrying amount at beginning of year 105,016 159,628 105,016 159,628 Transfer to plant and equipment (39,618) (27,271) (39,618) (27,271) Additions Amortisation (20,648) {27,341 ) (20,648) (27,341) Carrying amount at end of year 44,750 105,016 44,750 105,016 Consolidated WST 2007 2006 2007 2006 $ $ $ $ 5 Trade and other payables Trade payables 255,943 418,796 255,943 418,796 Accrued expenses 842,275 1,119,756 1,056,019 1,354,678 1,098,218 1,538,552 1,311,962 1,773 ,474 Annual Financial Report 06-07 13 WOLLONGONG SPORTSGROUND TRUST NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007 Consolidated WST 2007 2006 2007 2006 $ $ $ $ 6 Borrowings Current liabilities Finance lease liabilities 36,160 196,735 36,160 196,735 36,160 196,735 36,160 196,735 Non-current liabilities Finance lease liabilities 15,999 70,198 15,999 70,198 15,999 70,198 15,999 70,198 7 Employee benefits Current Liability for annual leave 97,440 128,368 Liability for long service leave 25,978 23,202 123,418 151 ,570 Non-current Liability for long service leave 85,410 75,140 Number of employees: Number of employees at year end 13 13 $ $ $ $ 8 Deferred revenue Current Income in advance 255,550 233,467 255,550 233,467 Non-current Income in advance 2,880,000 3,040,000 2,880,000 3,040,000 9 Auditors' remuneration Audit Office of New South Wales - audit offinancial reports 24,500 24,000 24,500 24,000 Annual Financial Report 06-07 14 WOLLONGONG SPORTSGROUND TRUST NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007 Asset revaluation Retained 10 Equity reserve earnings Total equity Consolidated Opening balance at 1 July 2005 15,839,760 31,695,006 47,534,766 Total recognised income and expense 71,063 71,063 Closing balance at 30 June 2006 15,839,760 31,766,069 47,605,829 Opening balance at 1 July 2006 15,839,760 31,766,069 47,605,829 Total recognised income and expense (1,208,7762 (1,208,776) Closing balance at 30 June 2007 15,839,760 30,557,293 46,397,053 Wollougong Sportsground Trust Opening balance at 1 July 2005 15,839,760 31 ,695,006 47,534,766 Total recognised income and expense 71,063 71,063 Closing balance at 30 June 2006 15,839,760 31,766,069 47,605,829 Opening balance at 1 July 2006 15,839,760 31 ,766,069 47,605,829 Total recognised income and expense (1 ,208,776) (1,208,776) Closing balance at 30 June 2007 15,839,760 30,557,293 46,397,053 Consolidated WST 2007 2006 2007 2006 $ $ $ $ 11 Finance lease commitments Finance lease liabilities oftbe consolidated entity are payable as follows: Leases as Lessee Less than one year 36,160 196,735 36,160 196,735 Between one and five years 15,999 70,198 15,999 70,198 52,159 266,933 52,159 266,933 12 a Operating lease commitments Non-cancellable operating lease rentals are payable as follows : Leases as Lessee Less than one year 18,753 17,048 18,753 17,048 Between one and five years 54,698 66,773 54,698 66,773 73,451 83,821 73 ,451 83 ,821 12b Expense commitmeuts Less than one year 82,831 79,075 82,831 79,075 Between one and five years 86,765 169,596 86,765 169,596 169,596 248,671 169,596 248,671 Annual Financial Report 06-07 15 ) WOLLONGONG SPORTSGROUND TRUST NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007 13 Financial instruments (a) Effective interest rates aud repriciug analysis In respect of income-earning financial assets and interest-bearing financial liabilities, the following table indicates their effective interest rates at the balance sheet date and the periods in which they reprice. Consolidated Effective Total 6 months 6-12 1-2 years 2-5 years More than Interest or less months 5 years Rate 2007 Note $ $ $ $ $ $ Cash and cash 2 4.17 912,734 912,734 equivalents Lease liabilities 11 7.84 52,159 18,211 17,949 7,024 8,975 964,893 930,945 17,949 7,024 8,975 Consolidated Effective Total 6 months 6-12 1-2 years 2-5 years More than Interest or less months 5 years Rate 2006 Note $ $ $ $ $ $ Cash and cash 2 4.1 1,344,045 1,344,045 equivalents Lease liabilities 11 7.61 266,933 171 ,835 24,900 43,376 26,822 1,610,978 1,515,880 24,900 43,376 26,822 Wollongong Sportsgrouud Trust Effective Total 6 months 6-12 1-2 years 2-5 years More than Interest or less months 5 years Rate 2007 Note $ $ $ $ $ $ Cash and cash 2 4. 17 912,734 912,734 equivalents Lease liabilities 11 7.84 52,159 18,211 17,949 7,024 8,975 964,893 930,945 17,949 7,024 8,975 Annual Financial Report 06-07 16 WOLLONGONG SPORTSGROUND TRUST NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007 13 Financial instrnments cont'd .... Wollongong Sportsgronnd Trust Effective Total 6 months 6-12 1-2 years 2-5 years More than Interest or less months 5 years Rate 2006 Note $ $ $ $ $ $ Cash and cash 2 4.1 1,344,045 1,344,045 equivalents Lease liabilities II 7.61 266,933 171,835 24,900 43,376 26,822 1,610,978 1,515,880 24,900 43,376 26,822 (b) Credit risk Exposure to credit and interest rate arises in the normal course of the consolidated entity's business. Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Credit evaluations are performed on all customers requiring credit over a certain amount. The consolidated entity does not require collateral in respect of financial assets At the balance sheet date there were no significant concentrations of credit risk. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the balance sheet. 14 Reconciliation of (Ioss)/ profit for the year to net cash flows from operating activities Consolidated WST 2007 2006 2007 2006 $ $ $ $ Cash flows from operating activities (Loss )/profit for the year (1 ,208,776) 71,063 (1,208,776) 71,063 Adjustments for: Profit on sale of asset 87 87 Amortisation of leased assets 20,648 27,341 20,648 27,341 Depreciation 1,272,017 1,256,433 1,272,017 1,256,433 Doubtful trade receivables expense 1,000 1,000 Operating profit before changes in working capital and provisions 83,889 1,355,924 83,889 1,355,924 Decrease/(increase)in trade and other 400,545 (169,629) 403,840 (169,629) receivables (Decrease)/increase in provisions and (17,883) 50,931 (175,779) employee benefits (Decrease )/increase in trade and other (440,334) 461,857 (461,512) 688,567 payables (Decrease) in income in advance (137,917) (214,830) (l37,917) (214,830) Net cash from operating activities (111,700) 1,484,253 (111,700) 1,484,253 Annual Financial Report 06-07 17 ) WOLLONGONG SPORTSGROUND TRUST NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007 15 Related parties Key managemellt personnel compensation Key management personnel have authority and responsibility for planning directing and controlling the activities of the Trust and the consolidated entity. Key management Personnel includes the most highly remunerated management employees for the Trust and the consolidated entity The key management personnel compensation are as follows: Consolidated WST 2007 2006 2007 2006 $ $ $ $ Short term employee benefits 418,335 389,111 Other long term benefits 64,037 10,002 Post employment benefits 36,959 34,652 519,331 433,765 Trust members The names of each person currently holding the posltton of member of Wollongong Sportsground Trust are Messrs C Christodoulou, WS Bametson, I Hunt, K Jonovski, and Ms J Kershaw, J Henderson and V Tiegs. No remuneration, superannuation or retirement payments were received by any member of the Trust during the financial period. No Trust member has entered into a contract with the Trust since the end of the previous financial year and there were no contracts involving members' interests subsisting at year end. 16 Economic dependency The Trust derives the ma]onty of its sports stadium rental income from the St GeorgelIllawarra Rugby League Football Club Ltd. The level of stadium income to the Trust is dependent on the continued tenancy arrangements with this club. The Trust also acknowledges financial and administrative support from the State Government. 17 Events snbsequent to balance date There has not arisen in the interval between the end of the financial year and the date of this report, any item, transaction or event, of a material and unusual nature likely, in the opinion of the members of the Trust, to affect significantly the operations of the Trust or the state of affairs of the Trust in future financial years. End of Audited Financial Statemeuts Annual Financial Report 06-07 18 WOLLONGONG SPORTSGROUND TRUST DIVISION ABN 79 554 335 501 ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2007 ) WOLLONGONG SPORTSGROUND TRUST DIVISION STATEMENT BY MEMBERS OF THE TRUST Pursuant to the requirements of the Public Finance and Audit Act, 1983, and in accordance with a resolution of the members of the Wollongong Sportsground Trust, we declare on behalf of the Trust that in our opinion: 1 the financial statements and notes, set out on pages 2 to 9 exhibit a true and fair view of the financial position of the Wollongong Sportsground Trust Division as at 30 June 2007 and transactions for the year then ended; and 2 the report has been prepared in accordance with the provisions of the Public Finance and Audit Regulation, 2005, and the Treasurer's Directions. Further, we are not aware of any circumstances which would render any particulars included in the financial statements to be misleading or inaccurate. Chris Christodoulou Stuart Barnes Chairman General Manager Dated 19 October 2007 Annual Financial Report 06-07 1 ) ) WOLLONGONG SPORTSGROUND TRUST DIVISION INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2007 Note 2007 17 March to $ 30 June 2006 $ Income Personnel Services 1,671,626 568,970 Total income 1,671 ,626 568,970 Casual Staff 674,991 275,639 Salaries 808,027 211,661 Leave provisions (17,883) 15,110 Payroll tax 55,480 19,583 Superannuation 117,581 37,977 Workers compensation insurance 33,430 9,000 Total expenses 1,671,626 568,970 Operating result 3 The income statement is to be read in coI\iunction with the notes to the financial statements set out on pages 6 to 9. Annual Financial Report 06-07 2 ) WOLLONGONG SPORTSGROUND TRUST DIVISION STATEMENT OF RECOGNISED INCOME AND EXPENSE FOR THE YEAR ENDED 30 JUNE 2007 2007 2006 (Loss )/profit for the year Total recognised income and expense for the year The statement of recognised income and expense is to be read in conjunction with the notes to the financial statements set out in pages 6 to 9. Annual Financial Report 06-07 3 WOLLONGONG SPORTS GROUND TRUST DIVISION BALANCE SHEET AS AT 30 JUNE 2007 Note 2007 2006 $ $ Assets Receivables 213,743 234,922 213,743 234,922 Liabilities Payables 4,916 8,212 Employee benefits 2 123,418 151 ,570 Total current liabilities 128,334 159,782 Non-current liabilities Employee benefits 2 85,409 75 ,140 Total non-current liabilities 85,409 75,140 Total liabilities 213,743 234,922 Net assets Equity Accumulated funds Total equity The balance sheet should be read in conjunction with the notes to the financial statements set out on pages 6 to 9. Annual Financial Report 06-07 4 ) WOLLONGONG SPORTSGROUND TRUST DIVISION CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2007 Note 2007 2006 $ $ Cash flows from operating activities Cash receipts from customers 1,692,805 334,048 Cash paid to suppliers and employees (l,692,8052 (334,0482 Net cash from operating activities 3 Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at 1 July Cash and cash equivalents at 30 June The cash flow statement is to be read in conjunction with the notes to the financial statements set out on pages 6 to 9. Annual Financial Report 06-07 5 WOLLONGONG SPORTS GROUND TRUST DIVISION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007 1 Summary of significant accounting policies The significant policies, which have been adopted in the preparation of this financial report are: (a) Reporting entity Wollongong Sportsground Trust Division is a division of the Government Service, established pursuant to Part 2 of Schedule I to the Public Sector Employment and Management Act 2002. It is a not-for-profit entity as profit is not its principal objective. It is consolidated as part of the NSW Total State Sector Accounts. It is domiciled in Australia and its principal office is at the comer of Crown and Harbour St's, Wollongong, NSW. The Wollongong Sportsground Trust Division's objective is to provide personnel services to the Wollongong Sports ground Trust. The Wollongong Sportsground Trust Division commenced operations on 17 March 2006 when it assumed responsibility for the employees and employee-related liabilities of the Wollongong Sportsground Trust. The assumed liabilities were recognised on 17 March 2006 together with an offsetting receivable representing the related funding due from the former employer. The financial report was authorised for issue by the Trust Members on 19"' October 2007. (b) Basis ofpreparation This is a special purpose financial report prepared in accordance with the requirements of Australian Accounting Standards, the Public Finance and Audit Act 1983, the Public Finance and Audit Regulation 2005, and specific directions issued by the Treasurer. Accounting standards available for early adoption have been deemed not applicable to the Division. Therefore, the impact of not applying standards available for early adoption on the financial position and financial performance of the Wollongong Sportsground Trust Division has been determined as $nil. The special purpose financial report has been prepared in accordance with the requirements of the recognition and measurement aspects of all Australian Accounting Standards, ("AASBs") and Interpretations adopted by the Australian Accounting Standards Board ("AASB"), and other authoritative pronouncements of the AASB that have a material effect. International Financial Reporting Standards ("IFRSs") form the basis of Australian Accounting Standards ("AASBs") adopted by the AASB, and for the purpose of this report are called Australian equivalents to IFRS ("AIFRS") to distinguish from previous Australian GAAP. Annual Financial Report 06-07 6 ) WOLLONGONG SPORTS GROUND TRUST DIVISION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007 1 Summary of siguificant accouutiug policies cont ... (b) Basis o/preparation (cont'd) The historical cost basis of accounting has been adopted and the financial report does not take into account changing money values or current valuations. The accrual basis of accounting has been adopted in the preparation of the financial report. Management's judgements, key assumptions and estimates are disclosed in the relevant notes to the financial report. All amounts are expressed in Australian currency. (c) Comparative illformatioll The comparative information for the Wollongong Sportsground Trust Division's financial report is for the period 17 March 2006 to 30 June 2006.. (d) Income Income is measured at the fair value of the consideration received or receivable. Revenue from the rendering of personnel services is recognised when the service is provided and only to the extent that the associated recoverable expenses are recognised. (e) Receivables A receivable is recognised when it is probable that the future cash inflows associated with it will be realised and it has a value that can be measured reliably. It is derecognised when the contractual or other rights to future cash flows from it expire or are transferred. A receivable is measured initially at fair value and subsequently at amortised cost using the effective interest rate method, less any allowance for doubtful debts. A short term receivable with no stated interest rate is measured at the original invoice amount where the effect of discounting is immaterial. An invoiced receivable is due for settlement within thirty days of invoicing. If there is objective evidence at year end that a receivable may not be collectable, its carrying amount is reduced by means of an allowance for doubtful debts and the resulting loss is recognised in the income statement. Receivables are monitored during the year and bad debts are written off against the allowance when they are determined to be irrecoverable. Any other loss or gain arising when a receivable is derecognised is also recognised in the income statement. Annual Financial Report 06-07 7 WOLLONGONG SPORTSGROUND TRUST DIVISION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007 1 Summary of significant accounting policies cont... (f) Pay abies Payables include accrued wages, salaries and related costs (such as payroll tax, fringe benefits tax and worker's compensation insurance) where there is a certainty as to the amount and timing of settlement. A payable is recognised when a present obligation arises under a contract or otherwise. It is derecognised when the obligation expires or is discharged, cancelled or substituted. A short-term payable with no stated interest rate is measured at historical cost if the effect of discounting is immaterial. (g) Employee benefit provisions and expenses Provisions are made for li abilities of uncertain amount or uncertain timing of settlement. Employee benefit provisions represent expected amounts payable in the future in respect of unused entitlements accumulated as at the reporting date. Liabilities associated with, but that are not, employee benefits (such as payroll tax) are recognised separately. Superannuation and leave liabilities are recognised as expenses and provisions when the obligations arise, which is usually through the rendering of service by employees. Long service leave entitlements have been valued using the short-hand method to approximate the present value. It is unlikely that the difference between the present value and the nominal value will be material. 2007 2006 $ $ 2 Employee benefits Current Liability for annual leave 97,440 128,368 Liability for long service leave 25,978 23,202 123,418 151,570 Non-current Liability for long service leave 85,409 75, 140 Annual Financial Report 06-07 8 WOLLONGONG SPORTSGROUND TRUST DIVISION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007 3 Reconciliation of (Ioss)/ profit for the year to net cash flows from operating activities 2007 2006 $ $ Cash flows from operating activities (Loss )/profit for the year Decrease/(increase)in trade and other receivables 21,179 (234,922) (Decrease )/increase in provisions and employee benefits (17,883) 226,710 (Decrease)lincrease in trade and other payables (3,296) 8,212 Net cash from operating activities End of Andited Financial Statements Annual Financial Report 06-07 9 INDEX Access ...... •...•...... •...... •...... ••...... •...... ••.•.•. 2 Annual Report ·Production Cost ...... •...... 29 Audited Financial Statements ..••.•...... 38 Budgets v Actual Performance ...... 31 Business Operations ...... •.•...... 14 Business Strategy ...... •..•...... 16 Chairman's Report ...... 6 Charter of Trust ...... 10 Code of Conduct (Trustees and Management} ...... 11 Code of Conduct (Employees) •....•...... 25 COffiluunity Support ...... 15 Conflict of Interest Policy ...... 11 Consultants. purpose and cost ...... 29 Corporate Direction in the Future ...... 16 Environmental Awareness ...... 27 Equal Employment Opportunity (EEO) ...... 24 Ethnic Affairs Priority Statement (EAPS) ....•.•..•...•...... •...... •....•.... 26 Event Highlights ...... 21 Events Calendar· Entertainluent Centre ...... 18 Events Calendar· WIN Stadiulu ...... 20 Executive Remuneration ...... 23 Expenditure ...... 28 Finance ...... 28 Financial Performance Indicators ...... 29 Freedolll of Inforl11ation ...... 24 Future Operating Position ...... 29 General Information ...... 2 General Manager's Review ...... 7 H uman Resources ...... 22 Independent Audit Report ...... 32 Industrial Relations ...... 23 Internet Web Address ...... 2 Letter to the Minister ...... 4 Major Problems and Issues ...... 16 Management Ilnprovement P lans ...... 17 Managers' Names, Experience and Qualifications ...... 23 Mission ...... 10 Objectives ...... 10 Operating Revenue and Expenditure ...... 28 Operating Result ...... 28 Organisation Chart ...... 22 Revenue ...... 28 Risk Manageluent and Insurance ...... 15 Tilne for PaYluent of Accounts ...... 30 T rustees' Names, Experience and Qualifications ...... 8 Training ...... 23 Waste Reduction and Purchasing Policy (\\TRAPP) ...... 27 Wollongong Sportsground Trust Annual Report 2006-2007 Page 49 )