Parks Victoria Annual Report 2015–16 Acknowledgement of Country

Aboriginal people, through their rich culture, have been connected to the land and sea, for tens of thousands of years. Parks Victoria respectfully acknowledges Aboriginal Traditional Owners, their cultures and knowledge and their continuing connection to and cultural obligation to care for their Country.

Parks and waterways

Parks Victoria manages many sites such as piers, waterways, ports, bays, historic buildings, trails, urban parks, small conservation reserves and large national and state parks. For the sake of brevity, these are collectively referred to in this document as ‘parks’, unless a specific type of site is stated. For further information about Parks Victoria and the parks it manages visit www.parks.vic.gov.au or call 13 1963. Copyright © State of Victoria, Parks Victoria 2016 Level 10, 535 Bourke Street, Melbourne VIC 3000 ISSN 1448 – 9082 ISSN 1448 – 9090 (online) Published on www.parks.vic.gov.au

2 About Parks Victoria Contents

About Parks Victoria 4 Chairman’s message 8 Chief Executive’s message 9 Our achievements 10 Strengthening Parks Victoria 12 Connecting people and parks 13 Conserving Victoria’s special places 19 Providing benefits beyond park boundaries 25 Enhancing organisational excellence 31 Compliance and disclosures 42 Financial Report 58

Parks Victoria Annual Report 2015–16 3 About Parks Victoria

Who we are What we manage

Parks Victoria commenced operations on 12 December The network of parks that we manage includes 1996 as a statutory authority under the Parks Victoria national parks, marine parks and sanctuaries, Act 1998 to manage Victoria’s diverse parks system. wilderness areas, state and metropolitan parks, In recent years, the area that we care for has increased thousands of Aboriginal and post-European cultural to 18 per cent of the State or 4.11 million hectares. and heritage sites, and around 70 per cent of Victoria’s coastline. Parks Victoria is also the Local We manage the estate in partnership with Traditional Port Manager for Port Phillip Bay, Western Port and Owners, government and non-government Port Campbell and the Waterways Manager for the organisations, park neighbours, friends’ groups and Yarra and Maribyrnong rivers. the broader community. As stipulated in the Parks Victoria Act 1998, our functions are: Our ministers • to provide services to Victoria and its agencies for The responsible ministers for the reporting the management of parks, reserves, and other period were: land, under control of the State; and • from 1 July 2015 to 22 May 2016, the • with approval of our Ministers, to provide services Hon Lisa Neville MP, Minister for Environment, to the owner of any other land used for public Climate Change and Water purposes, for the management of that land. • from 23 May 2016 to 30 June 2016, In carrying out our functions, we do not act in a way the Hon Lily D’Ambrosio MP, Minister for that is not environmentally sound. Energy, Environment and Climate Change • from 1 July 2015 to 30 June 2016, the Hon Luke Donnellan MP, Minister for Ports.

Regional boundaries

Our organisation manages land and facilitates on-water recreation across four regions: Melbourne, Northern Region, Western Region, Eastern Region

4 About Parks Victoria Parks network Built assets

Parks Victoria manages Parks Victoria’s built asset portfolio has an estimated replacement value 4.1 million of $1.8 billion and includes hectares (18% of Victoria) 46 visitor centre buildings this includes 738 shelters 45 national parks 832 toilets 26 state parks 509 viewing lookouts 60 other parks 59 playgrounds 30 metropolitan parks 15,500 km of roads (approximately) 2,700 natural features and conservation reserves 1,336 pedestrian and vehicular bridges 3,700 km of walking tracks (approximately) Parks Victoria also manages 121 sporting facilities 209 piers and jetties 70% 110 water access points of Victoria’s coast 710 navigation aids this includes

13 marine national parks 11 marine sanctuaries

Visitation

Each year, Parks Victoria welcomes 98.5 million visits to the Parks Victoria estate, including

37.8 million 44.6 million 16 million visits to national parks visits to piers and jetties visits to metropolitan parks

Parks Victoria Annual Report 2015–16 5 Shaping Our Future

Parks Victoria is a world-class park service ensuring healthy parks for healthy people.

Parks Victoria delivers enduring benefits to park users and the community through expert stewardship of Victoria’s terrestrial and marine parks estate. As outlined in our long-term strategy, Shaping Our Future, Parks Victoria delivers these benefits by focussing our work across four strategic, integrated themes: 1. Connecting people Our purpose

and parks At Parks Victoria, we inspire the community to conserve and enjoy Victoria’s unique natural and We will contribute to the improved health and cultural heritage. Together, we care for Country wellbeing of the community through a park and promote the value of our parks and waterways network that is cherished by the community. for the benefit of all Victorians and their visitors. 2. Conserving Victoria’s organisational ing exc nc elle ha nc special places En e

We will do all we can to increase the resilience Connecting of natural and cultural values in parks, in the people face of climate change and other stressors, and parks whilst working to maintain and restore the health of parks and the special places within them. Vision Conserving Providing benefits Victoria's Purpose 3. Providing benefits special places beyond park boundaries

beyond park boundaries V i c s t t o n r e ia n m it P We will contribute to the wellbeing of Victorians u m b m li o c c S ’s beyond the boundaries of the parks we manage. er ia vi or ce t v ic a s V lu rk es Pa 4. Enhancing organisational excellence

We will create an interconnected, sustainable, resilient organisation that anticipates and adapts to economic, social and environmental changes.

6 Shaping Our Future Healthy Parks Healthy People

By experiencing, understanding and benefitting from the values generated by parks, people advocate, care, invest in, and act for the health of parks.

Traditional Owners have long understood the integral Our commitments link between nature and human health and wellbeing, as expressed by the phrase ‘Care for Country and Supporting our vision, purpose and approach are Country cares for you’. six commitments that support Parks Victoria Parks Victoria’s adoption of Healthy Parks Healthy to be a high-performing organisation. Our six People builds on this traditional knowledge and commitments are: reflects an ever-growing body of research that • Put safety first confirms the time we spend connecting with nature has a positive impact on our health and wellbeing. • Provide excellent customer service Healthy parks sustain our life and liveability. They • Collaborate improve our physical, mental and spiritual health and • Lead innovation wellbeing and generate income, jobs and economic productivity. • Be accountable Through our expert management of Victoria’s parks • Act with integrity estate, we foster the connection community has with Country and, in turn, foster community health, wellbeing and development. Our values

Healthy Parks Healthy People is our approach. Parks Victoria staff subscribe to the seven core values of the Victorian Public Sector Code of Conduct. These values are: • Responsiveness • Integrity • Impartiality • Accountability • Respect • Leadership • Human rights

Parks Victoria Annual Report 2015–16 7 Chairman’s message

I am delighted to present the 2015–16 Parks Victoria Annual Report, in accordance with the Financial Management Act 1994.

In 2015–16, Parks Victoria has once again proven Our long-term strategy, Shaping Our Future, its ability to deliver value to all Victorians. Our is undergoing a refresh and will also include a new commitment to being a world-class park service purpose statement developed by our staff across is demonstrated through the organisation’s the organisation. performance against annual objectives as outlined The Valuing Victoria’s Parks report was launched in in this report. September 2015 and has provided excellent data Parks Victoria’s strength comes from its talented that communicates the real value of our parks estate. and passionate team and our organisation’s ability Evaluating and promoting the benefits and services to attract, collaborate and work with partners. that Victoria’s parks provide – including clean air and Some of the partnerships that have allowed us to water, services to regional visitor economies and in deliver on our objectives this year include working preventative health – is an important platform to with Traditional Owners, volunteers, licensed tour drive investment into our parks. Basing our decisions operators and across all levels of government. The on research like this ensures that the Victorian common element in all of these partnerships, which community will derive the maximum economic, allows us to work so well together, is the shared environmental and social benefits from parks into desire to conserve and protect our treasured natural the future. and cultural landscapes and biodiversity to ensure An exciting new project, called “Strengthening Parks that they benefit everyone both now and into Victoria”, was also initiated this year. The project the future. will consult with the community to identify and We continue to place visitors at the heart of our report to government on the community’s vision for decision-making. Every two years, Parks Victoria Victoria’s parks. Strengthening Parks Victoria will conducts research into park visitor satisfaction and inform how the organisation can best manage our the perception of Parks Victoria as an agency. This parks, reserves, ports and waterways on behalf of year’s results speak for themselves, with the overall government in the years to come. satisfaction of our visitors being rated significantly Approaching its 20th anniversary in December 2016, higher than the previous survey. This result is Parks Victoria can be proud of the reputation it has a reflection of the hard work and dedication built as a world-leader in park management. I look of our staff, stakeholders and volunteers over forward to Parks Victoria’s future with great optimism the last two years. and excitement. In a bid to ensure that we are continuously improving, Andrew Fairley AM the Parks Victoria Board and Executive have undertaken Board Chair a process this year, to further define and map the organisation’s long term outcomes, and the strategies for achieving them. As the organisation matures and adapts to the ever-changing environment within which it operates, our strategy must also evolve to ensure that we can deliver and account for an efficient and effective service.

8 Chairman’s message Chief Executive’s message

Parks Victoria has successfully delivered on its objectives over the past year and moves forward more committed than ever to achieving our vision of being a world-class park service ensuring healthy parks for healthy people.

Our purpose is clear. At Parks Victoria, we inspire 2015–16 presented another busy year across the community to conserve and enjoy Victoria’s emergency preparedness and response. 721 Parks unique natural and cultural heritage. Together, we Victoria staff contributed to emergency management care for Country and promote the value of our parks throughout the year as part of the government’s and waterways for the benefit of all Victorians and All Hazards, All Emergencies approach. On Sunday their visitors. 20 December, lightning strikes ignited the Wye River-Jamiesons Creek Track Fire and response teams Parks Victoria collaborates with communities, partners worked tirelessly in steep and difficult terrain to and stakeholders. This approach is key to the successful fight the fire, which travelled to the shoreline. Parks delivery of our objectives. Without collaboration, Victoria made a tremendous contribution to the we would not have been able to achieve all that fire effort, including supporting the community in we have this year. recovery. The Executive team is deeply grateful to our Over 29,000 volunteers contributed more than staff for their efforts during the fire season this year. 220,000 hours of their time to help us deliver Our important safety journey continued in 2015–16. outcomes that benefit our parks across the state. As well as focusing on visitor and community safety, We are truly grateful for their vital contribution. we recognise that the overall health and wellbeing In 2015–16, we worked together with the Dja Dja of our staff is essential for the success of the Wurrung, Gunaikurnai and Yorta Yorta rangers to organisation. We are proud that in 2015–16, we manage Country and facilitated discussions between recorded significant reductions in staff injuries. other Traditional Owner groups to plan for the future Parks Victoria has undergone significant restructure joint management of parks. in recent years. Further improvements were made We continued to work with a wide variety of partners, to our Executive structure in 2015–16 to ensure including land owners and other government agencies, we are able to meet the diverse and increasing to protect our natural heritage and control invasive demands on our services both in Melbourne and species across the estate including on shared across the state. A new position, Chief Conservation boundaries as part of the Good Neighbour Program. Scientist, was recruited this year to identify science and knowledge opportunities to drive innovation Parks Victoria is one of the largest nature-based in park management and achieve our conservation tourism providers in Australia with 98.5 million outcomes. visits per year. This year, we worked with regional partners to progress planning and delivery across As an organisation we will continue to evolve, working the Walk Victoria’s Icons suite of long-distance in partnership with the community to deliver outcomes trails, helping to drive growth in Victoria’s regional that meet the diverse needs of Victorians, our visitors visitor economies. and the changing landscapes that we manage. Margaret Gillespie Acting Chief Executive

Note: Bradley Fauteux terminated his employment with Parks Victoria on 12 October 2016.

Parks Victoria Annual Report 2015–16 9 Our achievements

The year in review

Connecting people Conserving Victoria’s and parks special places Page 13 Page 19

Strategic directions Strategic directions • More people visiting parks more often • Focusing on the resilience of ecosystems, ecological communities and species • Encourage deeper connections of people to parks and their Country • Base our action on Aboriginal knowledge, contemporary science and risk 2015–16 highlights • Respecting and restoring our heritage • Over 98.5 million visits to Victoria’s parks estate 2015–16 highlights • Increased satisfaction of visitors to our • Adopted a landscape-scale approach parks by 4 per cent to planning, recognised by the IUCN as best practise • Over 3.8 million visits to the Parks Victoria website • Awarded the Nancy Millis Science in Parks Award for the ‘Biodiversity responses • 29,000 volunteers contributed to fire in the Mallee’ project 220,947 hours to Parks Victoria programs and activities • Completed a number of programs to manage pests, plants and animals, • Undertook numerous repairs and including regional predators, large herbivores improvements to the $1.8m built asset and weeds portfolio • Developed Aboriginal Cultural Heritage • Launched the Shipwreck Coast and Historic Heritage Assessment Apps Master Plan on 2 December 2015 to more effectively monitor and assess condition • Continued works on key projects including of heritage sites and places the Grampians Peaks Trail and Portarlington • Undertook projects that will help conserve and Safe Harbour protect the 12,000 formally registered • Received the 2015 National Aboriginal cultural heritage places and Disability Award for our work towards 3,000 historic places improving community access to our parks • Responded to over 106,700 phone calls and 15,800 emails for park information and assistance and bookings for campsites on the Parks Victoria estate • Employed 35 additional seasonal rangers to assist in provision of customer and park management services at key parks in peak periods

10 Our achievements Providing benefits beyond Enhancing organisational park boundaries excellence Page 25 Page 31

Strategic directions Strategic directions • Assist in keeping Victorians safe • Secure stable, flexible and sustainable revenue streams • Grow world-class nature-based tourism opportunities in parks • Outcomes-focused workforce that is flexible and reflects the communities it serves • Park ecosystems services contribute to productive, healthy and prosperous • Driving accountability and performance Victorian communities • Provide digital experiences and information • Aboriginal communities benefit from solutions to improve productivity and make connection to Country it easier for people to connect with parks

2015–16 highlights 2015–16 highlights • Contributed significantly to the • Continued to build the Safety First response to the Wye River-Jamiesons Track culture and reduce the number of safety fire in December 2015 incidents incurred by our people • Supported the response to numerous • Recorded significant reductions in the search and rescue incidents Total Reportable Injury Frequency Rate (TRIFR) (parks and marine-based) and the Lost Time Injury Frequency Rate (LTIFR) • Completed planned burns on 57,028 • Developed and delivered the Leadership hectares of Parks Victoria managed land Essentials Program to ensure our people leaders feel confident and equipped in their • Delivered community engagement ability to lead their teams programs aimed at promoting fire safety behaviour and community education • Developed a new Performance Management System to provide greater • 721 staff contributed to the preparedness, visibility and awareness of individual performance prevention and response to fire and other management emergency management situations • Initiated ParkConnect, a new Customer • Launched the Valuing Victoria’s Relationship Management (CRM) system Parks Report providing world-leading that meets our citizen/partner needs information about the value of Victoria’s parks to our communities and the economy • Replaced our telephony environment, transitioning to Skype for Business to ensure • Completed all projects under the Good ongoing, effective and modern communication Neighbour Program to ensure that Victoria’s with our customers and stakeholders parks and surrounding areas are maintained for the benefit of park users and their neighbours • Redeveloped our Intranet ‘Warnawi’ to provide improved information management • Delivered services that enabled 237,000 capability visitors to utilise camping and accommodation facilities Parks Victoria Annual Report 2015–16 11 Strengthening Parks Victoria

Just as our landscapes and nature adapt to change, so must we.

Strengthening Parks Victoria is a joint project with improvement, with the Shaping Our Future strategy1 the Department of Environment, Land, Water outlining the steps we will undertake to achieve and Planning (DELWP) to better understand the our objectives. community vision for parks, and how Parks Victoria The Strengthening Parks Victoria project will focus should modernise its management, service offering, on community and stakeholder engagement in workforce and governance to deliver on that vision. metropolitan and regional Victoria – talking to groups In December 2016, Parks Victoria will reach its 20th and individuals about the value parks play, as well anniversary. It is the perfect opportunity to reflect as exploring what services and experiences Parks on what parks mean to Victorians and our visitors, Victoria can offer to make a difference to communities, and to set the course for the coming decades. As regional economies and the environment. part of celebrating all that has been and could The Strengthening Parks Victoria report, which will be accomplished, we will prepare a report for the include a series of recommendations responding Minister for Energy, Environment and Climate to the community’s vision, will be developed by the Change on what the Victorian community hopes end of 2016. for its parks, and what we hope to do to become a world-class parks management agency. 1 Shaping Our Future is available to read online at: Parks Victoria must transform its business to become http://parkweb.vic.gov.au/about-us/who-we-are/vision,-purpose,-values adaptable to change, while also being better connected to communities as partners – to explore new ways of managing Country and natural and cultural heritage together. Strengthening Parks Victoria is the most recent step on this journey of change and

12 Strengthening Parks Victoria Connecting people and parks

We will contribute to the improved health and wellbeing of the community through a park network that is cherished by the community.

More people visiting parks more often 37.8 million Parks Victoria’s Healthy Parks Healthy People visits to national and state parks approach is backed by a growing body of evidence showing that more people in our parks, more often, increases the overall health and wellbeing of our community. 44.6 million Our most recent visitation information shows we visits to piers, bays and waterways welcomed over 98.5 million visits across the entire Parks Victoria estate including: • 37.8 million visits to national and state parks; • 16 million visits to major metropolitan parks; and 16 million • 44.6 million visits to piers, bays and waterways. visits to major metropolitan parks This reflects the long-term trend in increasing parks visitation, with an average annual growth of 2.3 per cent for terrestrial parks, and 3.8 per cent for piers and jetties since monitoring began. The total represents a 45 per cent increase from 2002–03 to 2014–15. Visitation figures are determined by Parks Victoria’s biennial Visitor Number Monitor, which will be conducted in 2016–17.

Seasonal ranger program

Over the 2015–16 summer, Parks Victoria employed 35 seasonal rangers to support permanent field staff in providing customer and park management services at key visitation parks, throughout the busy summer and Easter periods. Seasonal rangers participate in programs that assist park visitors to learn about the natural and cultural heritage of our parks, and participate in conservation and management activities to support our parks. Seasonal rangers contribute many varied skills to the parks they work in, such as Zhong Gan, who was based at Port Campbell, and gave 207 talks, mostly in Mandarin, to Chinese tourists at the Twelve Apostles over the summer period. Zhong also helped translate signage about the local wildlife. Twenty-five of the 2015–16 seasonal rangers continued their employment through autumn to assist with planned-burning activities.

Parks Victoria Annual Report 2015–16 13 Promoting our parks City liveability – valuing our urban Parks Victoria supports visitation to the parks parks network network by providing, timely and accurate Melbourne’s urban park network plays a key role information and bookings services. In 2015–16, in supporting the liveability of the city. Our urban Parks Victoria’s Information Centre responded parks connect us to natural and cultural heritage just to 106,776 phone calls and 15,818 emails from beyond our homes, they are essential to the survival the community requesting park information, of many species and provide spaces where we can assistance and bookings for campsites. relax, exercise and simply enjoy being outdoors within the city landscape. The recreational activities available in parks were actively promoted by Parks Victoria at 63 public and In 2015–16, Parks Victoria’s management of our community events throughout Victoria, including the urban parks, which in Melbourne includes facilitating highly popular Melbourne Boat Show, held annually on-water recreation across our bays and major in June and attended by more than 29,000 people. rivers, enabled major events such as the Formula 1 Ranger Roo, Parks Victoria’s engagement tool for Australian Grand Prix, Festival of Sails and Taste of very young children and their families, appeared Melbourne, and over 400 community events within at a number of events. the greater Melbourne area. Over 200 organised groups regularly used our parks for physical exercise In 2015–16, Parks Victoria distributed over 85,000 and hundreds of weddings took place in urban promotional guides, brochures and other marketing parks state wide. material to Visitor Information Centres and other public information outlets throughout Victoria. 307 advertisements were also placed in metropolitan and regional newspapers to inform local communities and the public about activities and services relevant to them. Parks Victoria also makes it easy for people to connect with parks through our digital platforms, servicing 3.8 million visits to the Parks Victoria website, over 51,000 Facebook likes and over 10,500 Twitter followers in 2015–16.

Promotion Reach Parks Victoria distributed over Parks Victoria makes it easy to connect with parks through our digital platforms with 85,000 guides, brochures and 3.8 million marketing material visits to the Parks Victoria website per year

106,776 51,249 10,536 15,818 307 phone calls to Facebook likes Twitter emails to the the Information followers Information advertisements placed Centre Centre

14 Connecting people and parks Delivering inspiring visitor experiences Providing access to parks for all Parks Victoria’s major works program develops, Improving park accessibility is a major objective maintains or improves park experiences to ensure for Parks Victoria. the safety of staff and visitors and to enhance the In December 2015, Parks Victoria was one of five visitor experience. recipients to receive the National Disability Award Some of the key projects we’ve undertaken during (Excellence in Community Accessibility) in recognition 2015–16 have included: of the valuable contribution made to improving the lives of people with disability in Australia. • restoration of stone shelters at Zumsteins and MacKenzie Falls picnic areas in the Grampians Work undertaken this year to ensure our parks are National Park to their original condition following inclusive has involved: their damage in the 2014 Grampians Northern • introduction of a Lasher Beach Wheelchair Complex fire at Wilsons Promontory National Park • upgrade and refurbishment works to the toilet • introduction of a motorized all terrain wheelchair block, camp sites, vehicle and walking access at (TrailRider) to Grants Picnic area at Dandenong Lake Catani Campground Ranges National Park • construction of the eastern and northern • supporting Blind Sports Victoria in the provision breakwaters at Portarlington Harbor. Works of organised group activities for vision impaired included upgrade of the existing commercial visitors to Point Nepean National Park and berths, with off-site fabrication of components Port Phillip Marine National Park completed and on-site piling commenced • development of an online resource, in partnership • replacement of the section between the beach with AMAZE, for visitation to Brimbank Park for and the pier head at Rosebud Pier, including children with Autism Spectrum Disorder contemporary standard hand rails, lighting and signage. • construction of visitor facilities in parks to take account of different cultural cooking requirements.

Parks Victoria Annual Report 2015–16 15 Planning park experiences of the future for the former Olinda Golf Course to provide Parks Victoria works in partnership with the recreational and tourism benefits for local residents community to develop long-term master plans and the wider Victorian community. The Olinda that will continue to deliver high quality park Precinct Plan received $110,000 in funding from the experiences for all Victorians. Victorian Government in November 2015.

A key achievement in 2015–16 was the finalisation and Visitor Experience Framework (VEF) release of the master plan for the Shipwreck Coast between Princetown and Boat Bay, incorporating Parks Victoria’s Visitor Experience Framework (VEF) the Port Campbell National Park and Bay of Islands was developed to assist the organisation to deliver Coastal Park. The Shipwreck Coast master plan aims appropriate and targeted visitor experiences. The to provide prosperous and sustainable tourism, and rollout of the VEF was undertaken within the River ensure the protection and conservation of the fragile Red Gum and Greater Alps landscapes in 2015–16. ecology of this precious part of Victoria’s coastline. Over 900 sites are now recorded in the River Red Through diversifying the experiences on offer and Gum landscape, with 90 per cent of those validated investing in facilities, the master plan encourages and approved. Over 40 Visitor Experience Areas have long-term stays in the region and will increase local also been mapped which will be used for planning tourism and benefits to the local economy. The and priority setting. In the Greater Alps, over 330 master plan was developed in partnership with sites are recorded with over 70 per cent validated. the Corangamite and Moyne Shires and Tourism The full roll out of the VEF beyond 2015–16 will Victoria, and was endorsed and released by the continue with the focus on site validation across Minister on 2 December 2015. Parks Victoria’s 16 landscapes (see page 19 Other activity in 2015–16 included reaching the second for further information regarding landscape stage of the master plan for the Falls to Hotham scale planning). Alpine Crossing walk; developing a renewed Point Nepean National Park master plan; and developing the Westgate Park and Plenty Gorge master plans. Parks Victoria is also developing a precinct plan for the Point Cook Coastal Park homestead site and is working with Yarra Ranges Council to develop a plan

Education

Parks Victoria delivers face-to-face education Last year this included and interpretation programs to over 24,259 193,000 students visitors each year and more than 5,880 children attending Junior Ranger school holiday activities

16 Connecting people and parks Encourage deeper Partnerships for health Consistent with our Healthy Parks Healthy People connections of people to approach, a program was developed in partnership parks and their Country with Nutrition Australia and the Department of Health and Human Services to encourage improved nutrition for visitors to Parks Victoria managed outlets. Strengthen understanding of parks The Healthy Choices initiative aims to increase the Through Parks Victoria’s education and interpretation number of healthy choices available at locations programs, more than 30,000 children and their families where food is available. have the opportunity to come into parks and with Stronger partnerships with 60 health providers, our rangers, explore and learn about Victoria’s unique researchers, practitioners, planners and policy makers plants and animals first hand. The education and were formed through the collaborative event – interpretation program incorporates school excursions Parks for Healthy Communities Forum. Hosted by and school holiday programs through the Junior Parks Victoria, the Institute for Physical Activity and Ranger initiative. Parks Victoria staff also lead tours Nutrition (IPAN) and Health Nature & Sustainability at key parks. 193,173 visitors participated in tours Research Group at Deakin University, the forum in 2015–16 gaining a greater understanding of saw world-class academics presenting the latest Victoria’s natural and cultural heritage. evidence on parks for healthy communities and the implications for park planning and management. Engaging partners and volunteers Parks Victoria forged a strong partnership with MIND Parks Victoria works with many individuals and Australia for the provision of health and wellbeing community groups to foster improved environmental programs for young people at risk in parks. Through outcomes and visitor experiences in parks. In 2015–16, Parks Victoria’s support of their Typo Youth program, our extensive community network included over young people aged 14–18 years have benefitted 40 partner organisations involving volunteers and from participation in adventure activities in parks 104 friends’ groups delivering programs such as that has improved their self-confidence and general revegetation, habitat restoration, environmental wellbeing. These early intervention programs greatly monitoring, track and trail maintenance, heritage assist in preparing young people for the many site maintenance and invasive species control. challenges in life and help build self-resilience. Volunteering increases health and wellbeing of participants as well as increasing the interest and advocacy for parks in the community. Approximately 29,000 volunteers contributed 220,947 hours to Parks Victoria programs and activities in 2015–16, generating $6.6 million of in-kind labour to the economy.

Nature Play week

Parks Victoria created a new Australian record for ‘the most number of children participating in a nature treasure hunt in parks’ during Nature Play Week (6–14 April 2016). The Junior Ranger nature treasure hunt aimed to reconnect children with outdoor activity and the natural environment and attracted 341 children and their families across ten parks. Six of the ten participating parks had not been part of Parks Victoria’s school holiday program before, and as a result, attracted new families to the program with sixty-five per cent of the program participants having not previously participated in a Parks Victoria activity.

Parks Victoria Annual Report 2015–16 17 Key performance indicators

Definition of year end result:

Target met  Target has been met or exceeded within agreed timeframes. Target not met  Target has not been met – exceeds 5% variance. Target has not been met – within 5% variance. No result Recorded as NM = No measure

* Denotes also a Budget Paper 3 (BP3) performance measure.

Connecting people and parks

2014–15 2014–15 2015–16 2015–16 Year end Performance indicator target actual target actual status

Level of satisfaction of visitors to parks 68–73% NM 65–70% 84.9% 

The methodology for calculating this KPI was revised in May 2016. Under the previous methodology, the calculated result for 2015–16 was 76.5. The KPI is up significantly from a result of 71.6 in 2013–14 (when last measured) due to the change in methodology but also an increase in satisfaction with our regional parks. Eight of the twelve parks monitored showed increased levels of satisfaction from the last monitor due to increases in services and facilities from major investments, such as the Twelve Apostles improvement program and Brimbank Park playscape..

Number of visits to National, State, urban 54 54 56 and other terrestrial parks* (million) (million) (million) NM

This measure is determined by the Visitor Number Monitor, which was not conducted in 2015–16.

44 44 49 Number of visits to piers, jetties and bays* (million) (million) (million) NM

This measure is determined by the Visitor Number Monitor, which was not conducted in 2015–16.

39 41 Number of visits involving exercise No target (million) (million) NM

This measure is determined by the Visitor Number Monitor, which was not conducted in 2015–16.

Percentage of parks assets in average to excellent condition* 83% 87% 83% 88% 

This measure exceeded its target by 5 per cent. Parks Victoria has 31,021 active assets on the Asset Information System. The average condition rating of all assets is 2.53 (Scale: 1 being ‘excellent’ and 5 being ‘very poor’). Ninety per cent of new records (1,925) added since June 2015 are minor assets such as signs, culverts, park furniture and BBQ’s and have a condition rating of average to excellent.

Percentage of bay assets in average to excellent condition* 70% 80% 70% 82% 

The last twelve months included the commissioning of the new inner timber section to Rosebud Pier, new Portarlington inner concrete approach, upgrade of Mordialloc Pier timber inner approach, new Mornington Pier outer approach, ramp and low landings and the decommissioning of Brookes Jetty.

18 Connecting people and parks Conserving Victoria’s special places

We will do all we can to increase the resilience of natural and cultural values in parks in the face of climate change and other stressors, while working to maintain and restore the health of parks and the special places within them.

the benefits of managing parks within the broader Parks Victoria has adopted context of adjacent private and public land and is a landscape scale approach identified by the International Union for Conservation to planning of Nature (IUCN) as best practice. In 2015–16, work progressed on finalising the Parks Victoria’s 16 planning landscapes shown in multi-park management plan for the Greater Alpine the map below, group parks within areas of similar national parks. The plan covers the Alpine, Baw Baw, ecological and landform characteristics giving Errinundra, Mount Buffalo and Snowy River national consideration to Traditional Owner areas. Landscape parks, Avon Wilderness Park and Tara Range Park, scale – or multi-park management planning – as well as several areas not under the Parks Victoria includes the perspectives of Traditional Owners and Act 1998. More than 500 public submissions on the community in setting objectives for managing the draft plan were carefully considered and further biodiversity, Aboriginal and historic cultural heritage consultations undertaken on key issues where necessary. and visitor experiences. This approach acknowledges

Parks Victoria Annual Report 2015–16 19 Focusing on the resilience Protecting habitats from invasive weeds and animals of ecosystems, ecological Invasive weeds, pests and animals threaten the communities and species long-term health and condition of habitats across the State. Programs to manage and control these threats were conducted to minimise their impact Conservation planning on natural and cultural values. Conservation plans play a key role in supporting Investment is directed towards fulfilling legislative animal and plant management within Victoria’s obligations, maximising partnerships and ensuring landscapes. This process was redesigned in 2015–16, previous gains are maintained or improved through supported by partner agency Trust for Nature. Key eradication, containment and asset protection, with works focused on population control of high-risk a focus on early intervention where possible. invasive species and management of overabundant animal populations. Working at the most effective scale is critical to achieving long-term outcomes in invasive species management. Protection of threatened species Wherever possible, working at a landscape or park scale is adopted to control invasive or introduced species In 2015–16, we continued to work with the such as deer, foxes, goats, horses, pigs and rabbits. community and key partner agencies to actively manage threatened species and communities. Works Regional delivery of predator, large herbivore and providing benefits to threatened flora, fauna and weed management programs were largely completed vegetation communities are detailed in the sections in 2015–16. Following a review of practices, protocols that follow. for rabbit warren ripping in the Mallee were established to minimise impacts on cultural and natural values. Managing overabundant native animals Parks Victoria manages native animal populations Fire Ecology to promote their ongoing viability and minimise Management of Victoria’s bushfire risk on public their impact on ecosystems and other species within land continues to improve and adapt, with further our parks. This also allows us to meet community development of policies, guidelines and tools expectations and legislative obligations in protecting throughout 2015–16 to increase the effectiveness the natural environment. of bushfire management through science-based fire ecology planning. In 2015–16, Parks Victoria, in consultation with DELWP, revised the approach used for community Four strategic bushfire management plans (Alpine engagement in native animal management programs. and Greater Gippsland, Alpine and North East, These were successfully implemented in the Mallee Mallee and Murray Goulburn, and South Western) and Woodlands Historic Park. were finalised and published during 2015–16. Parks Victoria is working with DELWP to prepare and A Koala management program at Mt Eccles was also finalise monitoring, evaluation and reporting plans successfully implemented in late 2015. for all seven at-risk landscapes across Victoria. To ensure ongoing effectiveness, all fire-related monitoring in Victoria has been consolidated under a single framework – the Victorian Bushfire Monitoring Program. See page 25 for further information about strategic bushfire management.

20 Conserving Victoria’s special places Base our action on Research programs Parks Victoria’s work is also informed by contemporary Aboriginal knowledge, science and risk management through our research contemporary science and monitoring programs. and risk Research programs provide an understanding of ecosystems, habitat and species condition, as well Parks Victoria will inform our work with the most as the effects of our management. The Research appropriate evidence and experience, to restore, Partners Program, for instance, continues to deliver maintain and increase the resilience of our parks. collaborative research with universities and other research institutions to address critical knowledge Traditional Owner collaboration gaps and ensure management decisions and actions are supported by high-quality data and science. We are proud to work with Traditional Owners in caring for Country. Incorporating and celebrating Research undertaken in 2015–16 to support and Traditional Owner knowledge, and building improve management of terrestrial, freshwater and understanding of the connection Aboriginal marine ecosystems for the benefit of all park users communities have with the land, is central to and the environment included: achieving success in jointly managed areas. Further • continued development of a rapid park health information about joint management partnerships check tool as an early warning for detecting and Traditional Owner settlement agreements symptoms of degradation in all terrestrial parks is available on page 29.

Biodiversity responses to fire in the Mallee

Biodiversity responses to fire in the Mallee is one of Australia’s most comprehensive research studies on how plants, animals and their habitats respond and recover from fire. In 2015–16 this study was awarded the prestigious Nancy Millis Science in Parks Award from Park Victoria. A ten year collaborative research project, led by La Trobe and Deakin Universities, researchers worked closely with Parks Victoria and DELWP to discover the effects of a single fire could last for well over a century, and that too-frequent fire events could put the survival of threatened plant and animal species at risk. The innovative research project has resulted in significant changes to the way fire and strategic planned burns are managed in Mallee ecosystems across Victoria and southern Australia. Based in the Murray Sunset and Hattah-Kulkyne national parks, this project was singled out for its outstanding contribution to managing protected areas and their sustainability.

Parks Victoria Annual Report 2015–16 21 • continuation of the long-term research to • weeds in the Alpine, Baw Baw, Chiltern-Mount understand the status and ecology of fauna Pilot, Grampians, Great Otway, Kinglake, Lower and habitat in the Central Highlands including Glenelg, Mornington Peninsula, Mount Buffalo, Yarra Ranges National Park Point Nepean and Yarra Ranges national parks • examination of how fire, habitat quality, grazing • the abundance and impact of foxes in various animals and introduced predators affect the parks as part of the cross-tenure Ark programs; distribution and abundance of native mammals deer in the Alpine, Kinglake and Wilsons Promontory in Wilsons Promontory National Park national parks; goats in the Grampians and Kinglake national parks and rabbits in the Mallee national • using sonar and video to map habitat in Wilson parks as part of the Mallee Bounceback program, Promontory Marine National Park. This created as well as in Wilsons Promontory National Park worldwide media interest and coverage for and Warby Range State Park. Parks Victoria. Monitoring of habitat condition and other native Monitoring programs flora and fauna populations included: Through our monitoring programs, Parks Victoria is • small mammals in Cobboboonee, Grampians, able to gather information about the condition and Great Otway, Lower Glenelg, Mornington status of our natural assets and ecological processes Peninsula and Wilsons Promontory national in our terrestrial and marine parks, as well as the effects parks, and arboreal mammals in Kinglake and of threats and other drivers. This provides a stronger Yarra Ranges national parks evidence base to better inform management decisions, • vegetation condition in the Great Otway, Mornington to respond to immediate needs and to plan Peninsula and Point Nepean national parks strategically in the longer-term. • the first surveys of subtidal reefs across depth In 2015–16, monitoring of threats and their impacts gradients at Wilsons Promontory Marine on terrestrial, freshwater and marine ecosystems, National Park, as part of the national Integrated which includes work undertaken as part of our Signs Marine Observing System (IMOS) Autonomous of Healthy Parks program, focused on: Underwater Vehicle (AUV) program.

22 Conserving Victoria’s special places Compliance programs Aboriginal heritage Through its compliance program, Parks Victoria helps Aboriginal heritage places have spiritual, social visitors understand and comply with regulations in and ceremonial significance. Initiatives undertaken parks to ensure that threats to parks, assets and in 2015–16 to manage Aboriginal heritage in our public safety are minimised. A number of significant parks included: investigations and operations were conducted in • Aboriginal rock art conservation in the Grampians 2015–16, including a major investigation into illegal National Park and Black Range State Park. This harvesting of firewood from parks in Northern involved a partnership of the Barengi Gadjin Land Victoria resulting in the prosecution of a number Council, Martang Aboriginal Corporation, Eastern of offenders. Maar Aboriginal Corporation, Parks Victoria and Authorised Officers also supported the Game Aboriginal Victoria (AV) Management Authority at the opening of the duck • The North West Burials Conservation Project in season and in a number of operations in parks aimed Murray Sunset National Park. This involved a at illegal deer hunting. partnership of the Ngintait, Latji Latji and Nyeri Nyeri Traditional Owners, Parks Victoria and AV Respecting and restoring • Development of an Aboriginal Cultural Heritage our heritage Assessment Tool Smartphone App, which aims to improve our ability to monitor and assess the condition of our cultural historic sites. Parks Victoria is responsible for approximately 12,000 formally registered Aboriginal cultural heritage places and 3,000 historic sites. Our cultural Bringing heritage to life landscapes and built heritage tells the story of our Works completed in 2015–16 on Victoria’s many continued connection with the land and supports historic heritage sites included development of a a strong and cohesive Victorian community. We Historic Heritage Assessment and Management work in partnership with key heritage bodies and Smartphone App, heritage maintenance works at local communities, to preserve, and to promote use, Mount Buffalo Chalet to repair facades and re-stump access and enjoyment of these special places, while the building (scheduled to be completed in 2017) respecting cultural heritage values for all users now and a heritage conservation project at McNamara’s and into the future. Hut (Dinner Plain) in the Alpine National Park, working with volunteers from the Victorian High Country Huts Association.

Culture and heritage

Parks Victoria is responsible for approximately and 12,000 3,000 formally registered Aboriginal historic places cultural heritage places

Parks Victoria Annual Report 2015–16 23 Key performance indicators

Definition of year end result:

Target met  Target has been met or exceeded within agreed timeframes. Target not met  Target has not been met – exceeds 5% variance. Target has not been met – within 5% variance. No result Recorded as NM = No measure

Conserving Victoria’s special places

2014–15 2014–15 2015–16 2015–16 Year end Performance indicator target actual target actual status

Percentage of the parks estate in which the impact from key threats is stable or reduced – weeds No target 80% 79% NM

This KPI will be measured with the State of the Parks reports – the survey is not scheduled until late 2016.

Percentage of the parks estate in which the impact from key threats is stable or reduced – pest animals No target 48% 47% NM

This KPI will be measured with the State of the Parks reports – the survey is not scheduled until late 2016.

Percentage of parks with national and state significant historic heritage values in good to excellent condition No target 47% 46% 46% 

Area of parks estate under joint or co-management agreements with Traditional Owners (hectares)* 643,513 643,513 643,513 643,513 

Total area of estate managed (million hectares)* 4,106 4,106 4,106 4,104

The total area of estate managed by Parks Victoria has reduced slightly primarily through the correction of You Yangs Regional Park (1,866 hectares) which is Committee of Management land, not Assigned land. Other minor additions and corrections resulted in a financial year net reduction of 2,200 hectares. As a result of the changes, Parks Victoria currently manages 4,104,200 hectares of assigned land.

Number of hectares treated to minimise the impact of pest plants, pest animals and overabundant native animals in parks 1.1 1.7 1.1 1.1 managed by Parks Victoria (million) (million) (million) (million) 

24 Conserving Victoria’s special places Providing benefits beyond park boundaries

We will contribute to the wellbeing of Victorians beyond the boundaries of the parks we manage.

Assist in keeping All Hazards, All Emergencies Parks Victoria is a committed agency in Victoria’s Victorians safe All Hazards, All Emergencies approach to emergency management. Parks Victoria commits around a quarter of its workforce capacity to support emergency During the year, our staff supported all agencies and preparedness, preparation and response efforts, the emergency services in the planning, prevention and to minimise the impacts of incidents and suppression of fire, search and rescue incidents, on communities, industries and economies. local port incidents, responding to Cetacean stranding and entanglements in nets, and a significant All parks are prepared Blue-Green Algal Bloom in the Murray River. Victoria takes a landscape approach to strategic bushfire management, which informs fire operations Bushfire education undertaken by DELWP and Parks Victoria. Plans are Through effective engagement and education, developed to manage bushfire risk on public land Parks Victoria assisted communities to prepare for using world-leading technology to simulate bushfires bushfires and other emergencies; including advising and to understand the level of risk for each community. communities living within a 200 metre boundary Staff work closely with communities and stakeholders of all fuel reduction works, delivering ‘pop up’ to prioritise assets and values for protection. information sessions to encourage people to stay away from the parks on hot, dry and windy days Preventing bushfires and attending numerous local events to engage with communities and distribute bushfire Parks Victoria continued to support DELWP in the related information. delivery of its fuel management program, including planned burning and mechanical fuel treatment to reduce the risk and severity of bushfires across Victoria. Parks Victoria leads the Melbourne Fire and Emergency Program on behalf of the Victorian Government, to improve bushfire preparedness in Melbourne’s urban areas.

Reducing fire risk at Arthurs Seat State Park

As part of the fuel treatment program in 2015–16, Parks Victoria undertook a project in Arthurs Seat State Park to reduce the bushfire risk to neighbours and the community. A small but important area of elevated fuel (Coast Tea-tree) was treated in steep terrain near houses by mulching rather than burning. A “Spider” excavator with special articulated legs was used to undertake this work, which meant that the works could be carried out safely in this terrain. This method reduced the impacts from smoke on wine grape growers and tourism, and delivered improved environmental outcomes such as maintaining logs on the ground for habitat.

Parks Victoria Annual Report 2015–16 25 Responding to bushfire Grow world-class The severity of the 2015–16 bushfire season was regarded as below average for public land areas. nature-based tourism 460 bushfires were recorded, with an area burnt opportunities in parks of 6,010 hectares. The most significant bushfire Nature-based tourism makes a significant recorded was the Wye River-Jamieson Track fire contribution to Victoria’s visitor economy, attracting that was started by lightning on 19 December thousands of local, interstate and international 2015. Under severe weather conditions, the fire visitors to areas across the State. Every year, parks breached control lines on Christmas Day, burning contribute over $1.4 billion to local economies and 2,520 hectares of national park and private property, support nearly 14,000 jobs. including approximately 160 houses.

Parks Victoria played a key role supporting Camping and accommodation communities during and after this event. This year, Parks Victoria processed more than 99,000 bookings for camping and accommodation in parks, Emergency recovery representing more than 171,000 overnight stays for In 2015–16, Parks Victoria continued to deliver 237,400 visitors. emergency recovery programs including: • repairing and reinstating the You Yangs Regional Working with licensed tour operations Park damaged in the February 2015 storm event Parks Victoria continues to work with approximately • rebuilding a section of the iconic 4WD route 430 licensed tour operators to improve the along the Deddick Trail in the Snowy River opportunities to provide tourism on public land as National Park that was destroyed in the February well as the quality of their products. This includes 2015 storm provision of park information, access to education material including language translations, improved • fire recovery work at the Grampians National systems and processes to reduce the burden on small Park including at Mackenzies Falls, Stapylton business, capacity management at high traffic sites Campground and Zumsteins Pise Cottages in peak periods and compliance exercises to target • fire recovery work relating to the Wye River- unlicensed operators. Jamiesons Track fire, including leading the on Parks Victoria engages with prospective tour operators ground works to stabilize and rehabilitate over to assist in identifying appropriate locations and activities 200km of control lines to facilitate the licensing process. Parks Victoria also • developing and implementing the recovery seeks out and engages with other State based program for Chiltern-Mt Pilot National Park operators to increase the awareness of Victorian following the Barnawartha-Indigo Road fire parks as a destination. during December 2015.

26 Providing benefits beyond park boundaries Events Tourism In 2015–16, Parks Victoria issued more than 1,200 permits that facilitated community and commercial Parks Victoria directly feeds into Victoria’s events, filming and photography on Parks Victoria’s economic activities, generating estate. Community events continue to represent the largest proportion of events held on Parks Victoria managed areas, with the majority of event permits $1.4 billion issued for the Melbourne Region. Major events held in regional Victoria include Lorne Mountain to Surf, through park tourism Peaks Challenge Falls Creek, Cycling Australia Junior supporting 14,000 jobs Mountain Climb Championships, Buffalo Stampede at Mount Buffalo and Adventurethon Anglesea. Each of these events help to drive significant economic Parks Victoria provides camping and activity in regional communities. accommodation for more than The last 12 months has seen the introduction of centralised venue management software within Parks Victoria, to support the administration of events held on the Parks Victoria estate. This software supports 237,400 a more professional approach to event management visitors and a higher level of customer service. servicing over 99,000 bookings each year

Walk Victoria’s Icons The Walk Victoria’s Icons suite of long-distance trails Parks Victoria continues to work offers an extensive array of immersive nature-based with approximately experiences, via short, medium and long distance walks through some of the State’s most well-known tourism destinations. From initial planning stages through to the licensed tour delivery of on-ground works, Walk Victoria’s Icons 430 operators aims to facilitate world-class walking experiences with a flow of benefits to regional economies. In 2015–16, actions across three walks – the Great Ocean Walk, Grampians Peaks Trail and Falls to Hotham Alpine Crossing, were as follows: • near completion of works to a 1.4 kilometre section of track at the southern end of the Grampians Peaks Trail known as the Piccaninny • track re-alignments, accommodation improvements, new toilets, new trail heads and interpretive signage along the Great Ocean Walk • reaching the second stage of the Falls to Hotham Alpine Crossing master plan.

Parks Victoria Annual Report 2015–16 27 Park ecosystems services Good Neighbour Program The Good Neighbour Program seeks to control invasive contribute to productive, species on the public/private land interface. Through healthy and prosperous effective community engagement and control measures, the Good Neighbour Program ensures that Victoria’s Victorian communities parks and surrounding areas are maintained for the benefit of parks users and neighbours. Health and wellbeing All of the component projects of the Good Neighbour Parks Victoria enables Program (approximately 140) were completed in 2015–16. $198.9 million Partnerships Partnerships continued to be important in the of avoided health costs through management of invasive species. During the year, physical activity in parks Parks Victoria partnered with the Australian Deer Association and the Sporting Shooters Association of Australia (Victoria) through our coordinated volunteer Clean air and water hunter program. Control projects were delivered in the Dandenong Ranges, Alpine, Kinglake and The Victorian parks estate stores Wilsons Promontory national parks and planning commenced for a deer and goat control program 270 million in the Grampians National Park. tonnes of carbon

which is around 9 times Victoria’s annual greenhouse gas emissions

Valuing Victoria’s Parks

In collaboration with DELWP, the Valuing Victoria’s Parks Report was launched in September 2015, providing world-leading information about the value of Victoria’s parks to our communities and the economy. Valuing Victoria’s Parks is based on best practice environmental accounting that quantifies the benefits that parks and their ecosystems provide. The report demonstrates that our parks have a significant impact on the State’s economy, including $1.4 billion per year through park related tourism, $83 million per year for water filtration services and conservatively up to $28 million uplift in amenity value for Melbourne residents alone, representing some 12,000 residences adjoining parks in Melbourne.

28 Providing benefits beyond park boundaries Providing opportunities In northern Victoria, the Yorta Yorta Traditional Owner Land Management Board commenced for Aboriginal communities development of a joint management plan for Barmah to benefit from connection National Park. Parks Victoria has provided advice to the Board regarding park planning processes. to Country A workshop involving representatives of the Yorta Yorta Nations Aboriginal Corporation, Parks Victoria Parks Victoria is committed to building stronger and DELWP was undertaken to establish the scope relationships with Traditional Owners and actively of the Joint Management Plan. supports opportunities for Traditional Owners to Representatives of the Yorta Yorta Traditional Owner manage Country and express their aspirations of Land Management Board also participated formalised partnerships and respectful engagement. in engaging with the broader community at Community Open House events in Echuca and Joint management partnerships Shepparton hosted by Parks Victoria for the River and Traditional Owner settlement Red Gum Management Plan in April 2016. agreements Further progress was made during the year in Traditional Owner – partnerships working with Traditional Owner corporations and Parks Victoria continued to work with other Traditional the respective Traditional Owner land management Owner groups during 2015–16, including on the boards to implement Traditional Owner settlement following aboriginal heritage projects: agreements and joint management partnerships. • commenced high level engagement to establish In north-central Victoria, the Dhelkunya Dja Land a partnership approach with the Gariwerd Native Management Board has developed a joint management Title Claim Group, which includes Barengi Gadjin plan for areas including Greater Bendigo and (most Land Council, Gunditj Mirring Traditional Owners of) Kara Kara national parks and Kooyoora and Aboriginal Corporation, Eastern Maar Aboriginal Paddys Ranges state parks. Dja Dja Wurrung rangers Corporation. The area includes Grampians and Parks Victoria field staff continued to work National Park and Black Range State Park. together in those parks to look after Country. • provided support to Dja Dja Wurrung Clans In East Gippsland, the Gunaikurnai Traditional Owner Aboriginal Corporation to review and update Land Management Board (with the involvement their Dhelkunya Dja Country Plan, which covers of the Gunaikurnai Land and Waters Aboriginal jointly managed areas including Greater Bendigo, Corporation, Parks Victoria and DELWP) continued and (most of) Kara Kara national parks and to develop a joint management plan for areas Kooyoora and Paddys Ranges state parks. including Mitchell River, Tarra-Bulga, The Lakes and Snowy River (New Guinea Caves) national parks, Lake • facilitated a workshop to review the draft Tyers State Park and Gippsland Lakes Coastal Park. master plan for Point Nepean National Park Gunaikurnai rangers and Parks Victoria field staff with representatives of Bunurong Land Council, continued to work together in those parks to care Bunurong Land and Sea Association Inc and for Country. Boon Wurrung Foundation.

Parks Victoria Annual Report 2015–16 29 Key performance indicators

Definition of year end result:

Target met  Target has been met or exceeded within agreed timeframes. Target not met  Target has not been met – exceeds 5% variance. Target has not been met – within 5% variance. No result Recorded as NM = No measure

Providing benefits beyond park boundaries

2014–15 2014–15 2015–16 2015–16 Year end Performance indicator target actual target actual status

Number of staff available for deployment in bushfire suppression 650 662 650 721 

20 Tourist nights attributable to parks No target NM (million) NM

Data is not currently collected on this measure. This KPI will be removed from the 2016–17 reporting framework.

Number of visits to parks through licensed tour operators No target 381,000 390,000 444,059 

User fees are paid in arrears for the last twelve months. Parks Victoria is currently collecting the trip returns and user fees for 2015–16 as part of the licensing period. The 2015–16 actual result is correct as of 31 August 2016.

30 Providing benefits beyond park boundaries Enhancing organisational excellence

We will create an interconnected, sustainable, resilient organisation that anticipates and adapts to economic, social and environmental changes.

Secure stable, flexible Financial position – income statement For the 2015–16 financial year, Parks Victoria and sustainable revenue received $239.5 million in revenue, which was streams $17 million higher than budgeted. This additional revenue primarily relates to delivery of future large scale programs including the Grampians Peaks Trail Overall financial position development and fire recovery efforts across the state Parks Victoria achieved a net result from transactions to assist communities to recover from significant fire surplus of $16.2 million for the 2015–16 financial impacts in late 2015. year. This surplus exceeded budget expectations and Expenditure in the 2015–16 financial year was was primarily due to additional revenue received slightly below budget partly due to savings achieved towards the end of 2015–16, mostly tied to specific in operating costs such as transport and office purpose projects which will be delivered in 2016–17 accommodation. Expenditure on core operations and beyond. Our commercial revenue performance across the Parks Victoria estate was in line with also exceeded budget expectations, and was driven budget expectations. Overall expenditure levels by strong demand for camping and accommodation, were similar to the previous year and represent particularly in Eastern Victoria. a continued focus on achieving cost efficiencies A key focus of the year was strengthening Parks and fiscal responsibility. Victoria towards a financially sustainable future. In this regard, significant work was undertaken Financial position – balance sheet in conjunction with DELWP to identify and develop Total assets at the end of the 2015–16 financial year appropriate funding models to support Parks Victoria’s were $2.3 billion, an increase of $359 million from core operations. We also continued to focus the previous year. This primarily reflects the impact on development of our financial management from the physical revaluation of Parks Victoria’s asset capabilities and introduced new programming and base performed during the year and undertaken budgeting systems, which are assisting improved every five years. decision making over resource allocation. Financial assets also increased during the year to $128.9 million reflective of the increased operating cash flows primarily due to the higher than anticipated operating surplus.

Parks Victoria Annual Report 2015–16 31 Five year financial summary

($’000) 2016 2015 2014 (i) 2013 (i) 2012

Revenue from Government 97,672 76,773 96,834 102,567 122,055

Total income from transactions 239,515 203,284 225,710 235,839 251,999

Total expenses from transactions 223,352 209,510 220,250 252,446 249,743

Net Result from transactions 16,163 (6,226) 5,460 (16,607) 2,256

Net Result 13,848 (7,797) 5,271 (17,109) (803)

Comprehensive result 336,980 (5,651) 6,169 (15,700) (803)

Net cash flow from operating activities 32,002 9,833 4,369 (16,952) 12,367

Total assets 2,278,746 1,919,220 1,926,991 1,916,797 1,851,560

Total liabilities 64,348 53,252 56,420 70,389 149,585

(i) During the financial year ended 30 June 2015, Parks Victoria revised its accounting treatment for a number of items and as a result amendments were required to be made to the 2014 and 2013 prior period comparatives.

Cash flows Leases and licences Total cash and investment at the end of the year was In 2015–16, Parks Victoria finalised 45 commercial $111.2 million, made up of cash and cash equivalent agreements including leases, licences, consents and of $16.2 million and investment of $95 million, of which permits, and provided ongoing management support $63.3 million related to the unspent component of for more than 600 commercial agreements across specific purpose grants Parks Victoria received to the state. undertake various projects in 2016–17 and beyond. The remaining balance of $47.9 million represents cash and cash equivalents required to meet other short term current liabilities as they fall due.

32 Enhancing organisational excellence An outcomes-focused • commencement of safety walk and talks by the executive team as a means to demonstrate visible workforce that is flexible safety leadership and provide opportunities to and reflects the communities engage and build trust with the workforce it serves • approval of two key procedures for the management of safety risks, and the safety planning and execution of work Safety First – Zero Injuries • a second all staff ‘Stop for Safety’ day to reflect Parks Victoria’s highest priority is the health, safety on our achievements as an organisation and to and wellbeing of its staff. The Safety First Zero Injuries launch new systems that ensures the way work program is a transformational initiative to build is performed is consistent, transparent, visible and a high performance culture of safety at Parks Victoria known throughout the organisation. which commenced in December 2014. The program has a number of achievement phases over a two-year Safety performance period, ending in December 2016, focusing on Parks Victoria continues to monitor our safety developing workplace culture and personal safety performance by tracking when injuries have occurred capabilities. Key deliverables realised during through the indicators of total recordable injury 2015–16 include: frequency rate (TRIFR) and lost time injury frequency • 2 day safety leadership training executed for over rate (LTIFR), measured over a 12 month rolling average. 280 managers and leaders The recording of the organisation’s performance has • 1 day behavioural based safety training provided been able to provide tangible evidence of the efforts for over 800 employees undertaken to reduce injuries. • commencement of an audit program to review In 2015–16, improved performance resulted in performance, focusing on due diligence and a 38 per cent reduction in TRIFR and a 25 per cent legislative compliance reduction in LTIFR. • a safety summer campaign that covered seven key topics in 14 weeks to keep safety front of mind

Stop for Safety

Stop for Safety 2 was held on 22 June 2016 to raise awareness about our safety performance as part of the Safety First Zero Injuries campaign. Parks Victoria’s safety journey started in late 2014, following a review of the organisation’s safety performance and attitudes towards safety. Stop for Safety 2 aimed to celebrate achievements; reflect on the safety journey to date; and set new goals for the future. A big focus of Stop for Safety 2 was on mental health and wellbeing, which is as important as physical safety.

Parks Victoria Annual Report 2015–16 33 Safety management The number of incidents reported in 2015–16 is significantly higher than in past years. This difference can be attributed to two main initiatives, one being the online OHS system that is in its second full year of operation, and secondly the safety leadership and behavioural training that has been provided as part of the Safety First program. Reporting of incidents are now seen as opportunities for continuous improvement, which with good management action, has reduced and prevented more serious events from taking place.

Number of reported incidents

Year 2013–14 2014–15 2015–16

Incidents 87 217 508

Rate per 100 FTEs 9.63 22.65 51.1

Number of ‘lost time’ standard claims

Year 2013–14 2014–15 2015–16

Claims 28 27 23

Lost Time Injury 26.58 24.9 18.9 Frequency Rate

Average cost per claim

Year 2013–14 2014–15 2015–16

Average cost $22,460 $35,126 $40,607

34 Enhancing organisational excellence High performing people Strategic partnerships Parks Victoria’s strategic partnerships program and high performing supports organisational performance, by providing culture opportunities to learn about and share best practise park management internationally.

Learning and development In 2015–16, Parks Victoria hosted our annual Staff Exchange Program with the Singapore National Parks 2015–16 saw the delivery of the management Board (NParks) which is facilitated by a Memorandum development program ‘Leadership Essentials’. of Understanding. At the request of Department of Comprised of multiple modules to address the Premier and Cabinet, Parks Victoria also successfully capability gaps of Parks Victoria line managers, hosted two international delegations with partner the program focused on increasing the effectiveness organisations with the outcome being industry of people managers, more effectively contribute to knowledge and information exchange. The delegates personal and team performance, preferred behaviours, were protected area managers from NParks and Aichi good governance and good operational delivery. Prefecture in Japan. Parks Victoria participated in Leadership Essentials has not only managed the the International Ranger Federation World Ranger current workforce issues and risks, but has increased Congress in Colorado in May 2015 with support for the accountability and transparency of effective three staff members to attend. people management at Parks Victoria. Parks Victoria influenced the development of the The overall outcome of the program has been 2017–2020 International Union for Conservation improved confidence and capacity for people leaders for Nature (IUCN) Oceania Regional Programme to lead their staff, and commitment to build high which includes important actions to further build performing teams. partnerships between the environment and health sectors. Performance management system A new online performance management system and framework was developed during 2015–16. The main outcome of this project is to create increased visibility and awareness of individual performance management in Parks Victoria as well as implement a better system for storing, accessing and reporting on individual performance management information.

Parks Victoria Annual Report 2015–16 35 Merit, equity and diversity Our organisational Parks Victoria is committed to maintaining a workplace that is free from harassment, structure discrimination and bullying. The Parks Victoria’s Chief Executive is appointed These principles are documented in the Victorian by the Parks Victoria Board, and is approved by Government’s merit and equity standards and the Minister for Energy, Environment and Climate embodied in the Public Administration Act 2004. Change. The Board reviews the performance of the Parks Victoria communicates and adheres to the Chief Executive on an annual basis. principles set out in the Act. During 2015–16, Chris Rose was Acting Chief As an employer, Parks Victoria ensures that: Executive from 1 July 2015 until Bradley Fauteux commenced as Chief Executive on 16 November 2015. • decisions are based on merit Bradley Fauteux terminated his employment with Parks • staff are treated fairly and reasonably Victoria on 12 October 2016. • equal employment opportunity is provided During 2015–16, we made changes to our executive • there are reasonable avenues of redress against management structure and accompanying divisional unfair or unreasonable treatment. structure by introducing new positions and realigning others. The purpose of this work was to ensure Parks Victoria is structured in a way which demonstrates Encouraging females in leadership accountability, is modern, and allows the organisation fire roles to be successful now and into the future. Throughout April and May 2016, Parks Victoria staff participated in workshops to explore how Parks Victoria and DELWP can increase the participation of women in fire and emergency leadership roles and better value the skills and experience within both organisations. The workshops helped identify short and long term strategies to improve gender equity in fire and emergency roles. These strategies will inform the Women in Fire and Emergency Roles Action Plan.

36 Enhancing organisational excellence Organisational structure at 30 June 2016.

Parks Victoria Board Andrew Fairley Chair Audit Risk & Finance & Compliance Commercial Committee Committee Prof. Rob Wallis Andrew Grant Committee Chair Committee Chair

Workplace Safety Aboriginal & Human Resources Engagement Committee Committee Ross Passalaqua Natalie O’Brien Committee Chair Committee Chair

Board and Executive Secretary

Chief Regional Director Conservation (3 month rotation) Scientist Mark Norman

Finance & Commercial Regional Victoria Jennifer Rebeiro, Kylie Trott, Executive Director Executive Director (Acting)

Public Affairs Visitor Engagement & Strategic & Conservation Chief Executive Communications David Major, Bradley Fauteux Alannah Gottschalk, Executive Director Executive Director

Business & Infrastructure Melbourne Services Chris Hardman, Jennifer Rebeiro, Executive Director Executive Director

Strategic Legal & Governance Accountability & Business Margaret Gillespie, Development Executive Director & Chief Legal counsel Fran Horsley, Executive Director

Parks Victoria Annual Report 2015–16 37 Workforce profile

Fixed term Ongoing and casual Number Full time Part time FTE FTE (headcount) (headcount) (headcount) 30 June 2016 965 854 111 908.1 102.3

30 June 2015 941 839 102 886.8 82.9

June 2016 June 2015 Fixed term Fixed term Ongoing & Workcover Ongoing & Workcover and casual and casual Number Number FTE FTE FTE FTE (headcount) (headcount) Gender Male 637 627.1 53.1 640 632 43.1 Female 328 281.0 49.2 301 254.8 39.8

Age Under 25 6 6 11.4 3 3 4 25–34 138 131 41.3 110 105.2 36.3 35–44 270 246.9 23.2 253 231.7 21 45–54 268 255.6 12.6 268 256.3 6.8 55–64 250 239.3 12.8 263 251.4 13.8 Over 64 33 29.3 1 44 39.2 1

Classification Grade 1 2 0.8 6.4 2 1 5 Grade 2.1 61 56.8 49.9 58 54.5 51.9 Grade 2.2 110 101.6 1 109 98.9 1 Grade 2.3 130 119.3 2 156 146.7 1 Grade 3 123 116.5 5 97 91.5 3.4 Grade 4 161 152.7 12.4 153 145.5 6.6 Grade 5 110 102.2 7.8 103 93.3 8 Grade 6 109 101.9 6.8 104 98.9 1 Grade 7 84 81.5 8 84 81.7 3 Grade 8 57 56.8 2 57 56.8 2 Executives 18 18 1 18 18 0 Total 965 908.1 102.3 941 886.8 82.9

38 Enhancing organisational excellence Executive officers There were a total of 19 Parks Victoria executive officers at 30 June 2016. Of these, all but one were classified as ‘ongoing’. All executive officers are employed with remuneration over $100,000.

30 June 2016 30 June 2015 Fixed Term Ongoing 2016 Total Ongoing 2015 Total

Executive E01 1 1

Executive E02 4 4 3 3 Executive E03 1 13 14 15 15 Total 1 18 19 18 18

Driving accountability Managing risk and increasing accountability and performance In 2015–16, work was undertaken to review the Parks Victoria Act 1998, in the context of the Renewing the strategic direction of Parks Victoria effectiveness of the ‘purchaser-provider’ model. was a major focus for the Board and Executive in 2015–16. As a prelude to the refresh of the Shaping Tools, systems and risk management approaches Our Future strategy – to be released in December 2016 were also developed over the year to better enable in conjunction with Parks Victoria’s 20th anniversary the organisation to ‘partner for performance’. – a new framework was completed containing ten Achieving this objective has resulted in the: year outcomes and three year directions tied to • development of 31 new procedures existing strategic themes, and five new strategic focus areas linked to the theme of “Enhancing • updating key IT systems organisational excellence”. • conducting 10 risk workshops to assist managers Parks Victoria staff also came together to develop in understanding and managing risks a new purpose statement over April, May and June • using VAGO self-assessment questions to better 2016. Through team and Executive workshops, understand Parks Victoria’s risks and control and significant collaboration using the internal environment. communications platform, Yammer, a purpose statement was written, complementing Parks Victoria’s existing Vision and Healthy Parks, Healthy People approach. Also accompanying the Shaping Our Future strategy, Parks Victoria made a significant commitment to building ongoing accountability and transparency over 2015–16 with investment in improved performance measurement and reporting. The outcomes of the first year of this work program has been a refreshed set of performance metrics and improved clarity in reporting lines.

Parks Victoria Annual Report 2015–16 39 Disruption management is a strategic risk for Parks Provide digital experiences Victoria. At an Executive meeting in December 2015, this risk was analysed and discussed in depth in the and information solutions context of El Nino and the approaching fire season. to improve productivity This led to work being undertaken to strengthen the controls to manage this risk. and make it easier for Initiatives to drive accountability and enhance our people to connect with reputation with our customers and stakeholders parks through open and transparent approaches included: • a review of the control framework to raise awareness and consider enhancing controls Improving visitor experiences to reduce both the possibility and the impact through technology of losses through fraud 2015–16 saw phase 1 of ParkConnect, a new Customer Relationship Management (CRM) solution • conflicts of interest training undertaken that meets the citizen/partner management needs of in one region the organisation. This project will run over a number • an update of the Gifts, Benefits and Hospitality of years, migrating the organisation from its current procedure approved by the Board, requiring siloed systems to a single shared system. The initial formal declarations of any items over $50 rollout will commence during August 2016. • drafting of provisions to enable Parks Victoria A rollout of a new communication system, which to publish all new major contracts, leases included a transition from a traditional telephone and licences (subject to information that network to Skype for Business, was implemented is commercial-in-confidence) throughout 2015–16. The new system is an effectual • updated information about our protected way for staff to communicate with each other, their disclosure processes, and published the customers and stakeholders. It also reduces the need information on our external website. for travel. The introduction of a new organisational intranet called ‘Warnawi’ has improved Parks Victoria’s information management capabilities, helping staff to locate information effectively and efficiently.

40 Enhancing organisational excellence Key performance indicators

Definition of year end result:

Target met  Target has been met or exceeded within agreed timeframes. Target not met  Target has not been met – exceeds 5% variance. Target has not been met – within 5% variance. No result Recorded as NM = No measure

Enhancing organisational excellence

2014–15 2014–15 2015–16 2015–16 Year end Performance indicator target actual target actual status

Reduction on previous year of Total Reportable Injury Frequency Rate (TRIFR) 34 39 29.3 23.6 

This KPI is measured as Total Reportable Injuries per million hours worked.

Employee engagement index 65 59 65 63

Workplace wellbeing index 89* 87* 90 NM

This KPI is measured using the Victorian Public Sector Commission People Matters Survey, which Parks Victoria undertook in May 2016. A wellbeing index was not provided in the 2016 results.

Working capital ratio 1.06:1 1.75:1 1.63:1 2.17:01 

Total revenue in addition to general appropriations 33.60 40.25 33.32 42.181 

Parks Victoria Annual Report 2015–16 41 Compliance and disclosures

Disclosure index

Parks Victoria’s 2015–16 Annual Report is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of Parks Victoria’s compliance with statutory disclosure requirements.

Legislation Requirement Page(s)

Report of operations

Charter and purpose

FRD 22G Manner of establishment and the relevant Ministers 4 FRD 22G Purpose, functions, powers and duties 4, 44 FRD 22G Initiatives and key achievements 10–11 FRD 22G Nature and range of services provided 4–7

Management and structure

FRD 22G Organisational structure 36–37

Financial and other information FRD 8D, SD 4.2(k) Performance against output performance measures 18, 24, 30, 41

FRD 10A Disclosure index 42 FRD 12A Disclosure of major contracts 52 FRD 15C Executive officer disclosures 39, 103 FRD 22G Employment and conduct principles 36 FRD 22G Occupational health and safety policy 33–34 FRD 22G Summary of the financial results for the year 31–32 FRD 22G Significant changes in financial position during the year 31–32 FRD 22G Major changes or factors affecting performance 36, 38, 44 FRD 22G Subsequent events 111 FRD 22G Application and operation of Freedom of Information Act 1982 48 FRD 22G Compliance with building and maintenance provisions of Building Act 1993 50 FRD 22G Statement on National Competition Policy 50 FRD 22G Application and operation of the Protected Disclosure Act 2012 49 FRD 22G Details of consultancies over $10 000 51 FRD 22G Details of consultancies under $10 000 52 FRD 22G Statement of availability of other information 49 FRD 24C Reporting of office based environmental impacts 53–54 FRD 22G Disclosure of government advertising expenditure 52 FRD 22G Disclosure of ICT expenditure 55 FRD 25B Victorian Industry Participation Policy disclosures 50 FRD 29A Workforce Data disclosures 38 SD 4.5.5 Risk management compliance attestation 56 SD 4.2(g) Specific information requirements 13–41 SD 4.2(j) Sign off requirements 8

42 Compliance and disclosures Legislation Requirement Page(s)

Financial report

Financial statements required under Part 7 of the FMA

SD4.2(a) Statement of changes in equity 61 SD4.2(b) Operating statement 50 SD4.2(b) Balance sheet 60 SD4.2(b) Cash flow statement 62

Other requirements under Standing Directions 4.2

SD4.2(c) Compliance with Australian accounting standards and other authoritative pronouncements 64 SD4.2(c) Compliance with Ministerial Directions 64 SD4.2(d) Rounding of amounts 77 SD4.2(c) Accountable officer’s declaration 112

Other disclosures as required by FRDs in notes to the financial statements

FRD 11A Disclosure of Ex gratia Expenses 111 FRD 21B Disclosures of Responsible Persons, Executive Officers and other Personnel 102–104 (Contractors with Significant Management Responsibilities) in the Financial Report FRD 102 Inventories 84 FRD 103F Non Financial Physical Assets 85–93 FRD 104 Foreign Currency 109 FRD 106 Impairment of Assets 71 FRD 109 Intangible Assets 94 FRD 110 Cash Flow Statements 97 FRD 112D Defined Benefit Superannuation Obligations 99–101 FRD 113A Investments in Subsidiaries, Jointly Controlled Entities and Associates (Pending revision) 104 FRD 114A Financial Instruments – General Government Entities and Public Non Financial Corporations 105–110 FRD 119A Transfers through Contributed Capital 96

Legislation

Freedom of Information Act 1982 48 Building Act 1993 50 Protected Disclosure Act 2012 49 Victorian Industry Participation Policy Act 2003 50 Financial Management Act 1994 112

Parks Victoria Annual Report 2015–16 43 Legislative framework Parks Victoria’s responsibilities for the provision of services to the State are set out in a Management Services Agreement (MSA) between Parks Victoria, Under the Parks Victoria Act 1998, Parks Victoria the DELWP Secretary and the Minister for Energy, is responsible for providing services to the State Environment and Climate Change. Parks Victoria’s and its agencies for the management of parks, services are delivered within state policy and reserves, other land under the control of the State, contractual agreements, and in accordance with and waterways (within the meaning of the Water statutory responsibilities and statutory delegations. Industry Act 1994) for the purposes of conservation, The MSA sets out the principles for the delivery recreation, leisure, tourism or water transport. Parks of park management services, lists the land to be Victoria’s responsibilities also extend to recreational managed and sets out the key functions of Parks boating in Port Phillip and Western Port as a local Victoria and DELWP. port manager under the Port Management Act 1995, and as waterways manager under the Marine Safety The current MSA includes a commitment to engage Act 2010. strategically and work in partnership with all networked organisations. DELWP is the designated With the approval of the Minister for Energy, lead for fire on public land. Environment and Climate Change, Parks Victoria may provide services for the management of land to the owner of any other land used for public purposes. The Parks Victoria Act 1998 requires Parks Changes to areas managed Victoria to act in an environmentally sound manner Under the MSA, the Minister for Energy, Environment in carrying out its functions. Parks Victoria is appointed and Climate Change advises Parks Victoria of any as a committee of management of various reserves changes to the land managed by Parks Victoria. pursuant to the Crown Land (Reserves) Act 1978. The total area of estate managed by Parks Victoria Parks Victoria is the committee of management for reduced slightly in 2015–16 primarily through a range of reserves including Albert Park, Werribee the correction of You Yangs Regional Park (1,866 Park, Yarra Bend, several gardens in the Dandenong hectares), which is Committee of Management Ranges, and piers and jetties in Port Phillip and land, not assigned land. Other minor additions and Western Port. We also manage: corrections resulted in a net reduction of 2,200 • areas under the National Parks Act 1975 – hectares in 2015–16. approximately 3.45 million hectares As a result of the changes, Parks Victoria currently • reserved and unreserved Crown land including manages 4,104,200 hectares of assigned land, down conservation and other reserves, metropolitan from 4,106,000 hectares in 2014–15. parks, regional parks and historic areas • recreational and other activities on waterways land in the metropolitan area as defined in the Water Industry Act 1994 • a number of other areas under leases or other arrangements (including reservoir parks).

44 Compliance and disclosures Parks Victoria’s Board Andrew Grant (Deputy Chair) Andrew is the Managing Director of Tasman The Parks Victoria Board has responsibility Environmental Markets and has an extensive for the governance of Parks Victoria. On the background in natural resource management and recommendation of the Minister for Energy, business. He is the Chair of the Carbon Market Environment and Climate Change, Board members Institute and has executive and board experience are appointed by the Governor in Council for a with organisations including the Royal Botanic period not exceeding three years. Members are Gardens, Earthwatch, the Cooperative Research eligible for reappointment. The Board operates Centre for Greenhouse Accounting and the Banksia in accordance with the provisions of the Parks Environmental Foundation. He has held several Victoria Act 1998. management positions in Parks Victoria and is a former Chair of the Port Phillip and Western Port The Board is responsible for directing and monitoring Catchment Management Authority. the business of Parks Victoria and is accountable to the Minister for its overall performance. It Natalie O’Brien delegates day-to-day responsibility for operations Natalie has a background in senior management and administration to the Chief Executive. in tourism, marketing and events and is currently During 2015–16: the CEO of the Melbourne Food and Wine Festival. She has previously held roles in both State and local • Ms Deborah Cheetham resigned from the Board government as well as positions on advisory boards effective 25 July 2015 into government. As well as being a Director of • Mr Dennis Cavagna’s term expired 25 July 2015 Parks Victoria she is a Director of People and Parks Foundation. • Prof Andrew Vizard’s term expired on 25 October 2015 Robert Wallis • Ms Kate Vinot, Ms Rosemary Hehir, Ms Christine Professor Robert Wallis is Professor of Research Trotman and Mr Darrell Wade were appointed to Development at Federation University Australia. the Board on 10 November 2015. He has a background in ecology, natural resource management, sustainable development and As at 30 June 2016, the Board members were: environmental education. Robert has held senior Andrew Fairley AM (Chairman) academic positions including Pro Vice Chancellor (Rural and Regional) and Head of School (Ecology Andrew has had a distinguished association and Environment) at Deakin University. He has with ecotourism, conservation, parks and resort extensive board and committee experience and management over many years. He is currently Deputy currently chairs a number of Audit and Risk Chair of Tourism Australia. He was a director of the Committees. He is a Fellow of the Australian world renowned resort Turtle Island in Fiji for over Institute of Company Directors. 20 years. He has been a Director of the International Ecotourism Society (Washington DC) and a Director of Ecotourism Australia. Andrew practises as a specialist equity lawyer with Hall and Wilcox. He is Chair of Equip, a $7.5 billion industry super fund operating in the energy and water sector. He chairs the Sir Andrew Fairley Foundation, the Luke Batty Foundation and he is the Consul General for Finland in Victoria.

Parks Victoria Annual Report 2015–16 45 Ross Passalaqua Mr Darrell Wade (resigned 18 July 2016) Ross is a Company Director and business consultant Darrell is the Co-founder of Intrepid Travel and Chief with broad commercial, operational, and technical Executive Officer of the Intrepid Group, a global experience across multiple sectors including the provider of adventure travel experiences. Mr Wade tourism, safety, services, petrochemicals, transport is also a member of the World Travel and Tourism and logistics industries in Australia and overseas. Council, and a Director of the Melbourne Accelerator Following an early career in consulting engineering, Programme. As well as a passion for travel, Mr Mr Passalaqua undertook corporate roles involving Wade has a long-standing interest in social and safety and risk analysis, sales and marketing, business environmental concerns that has formed an integral development, and senior operations and commercial part of his company’s ‘responsible travel’ philosophy. management with primarily the Shell Group of Most recently, he has turned his attention to how the Companies. Mr Passalaqua then developed tourism travel industry contributes to the problem of climate management and development expertise as CEO at change, and in particular the growing impact of Falls Creek Alpine Resort. Mr Passalaqua currently carbon emissions from passenger aircraft. holds other board roles with South East Water Corporation, the North East Victoria Tourism Board Ms Christine Trotman and with Disabled Wintersport Australia. He also Christine is the Chief Executive Officer of Cooinda provides independent safety consulting and coaching Hill, a disability support service based in the Latrobe services through the DuPont organisation. Valley. She has held management and executive roles in health and education, and has tertiary Ms Rosemary Hehir (resigned 8 August 2016) qualifications in nursing, health education, business Rosemary is a Director on the Board of Lifeworks and and accounting. Ms Trotman has extensive board and a member of Melbourne Health’s Human Research committee experience and is currently a member Ethics Committee. She was previously Chief Executive of the East Gippsland Water Audit and Risk Officer of YWCA Victoria and a Board Director Committee and Uniting Care Gippsland Audit of Social Housing Victoria. Ms Hehir has a highly and Risk Committee. successful track record as CEO, senior executive and non-Executive Board Director in both the public Board attendance and not-for-profit sectors, particularly in strategy development and leadership of major transformation Total meeting attendance in 2015–16 within complex, high profile organisations. Mr Andrew Fairley 9/10 Ms Kate Vinot Mr Ross Passalaqua 10/10 Ms Kate Vinot is the Director of City Strategy Mr Andrew Grant 9/91 and Place at the City of Melbourne where she 1 has portfolio responsibility for strategic planning, Ms Natalie O’Brien 7/9 business improvement, sustainability, community Prof Robert Wallis 9/91 engagement and the Smart City office. Kate has 2 degrees in engineering, economics and business Mr Darrell Wade 4/7 administration. She has held senior and executive Ms Rosemary Hehir 4/73 roles in water utilities, contracting, manufacturing Ms Kate Vinot 5/72 and management consulting, as well as a number of board and committee roles in the water sector, Ms Christine Trotman 7/72 environmental sustainability and aged care. Ms Vinot Prof Andrew Vizard 1/24 is a Fellow of Engineers Australia. Ms Vinot brings deep experience in strategy, sustainability, risk Mr Dennis Cavagna 1/24 management, as well as systems and governance. Ms Deborah Cheetham 0/15

46 Compliance and disclosures Board Committees The Audit, Risk and Compliance Committee oversees and advises on matters of accountability and internal controls affecting the operations of The Parks Victoria Board established the Aboriginal Parks Victoria as required by the Standing Directions Engagement Committee to assist with the of the Minister for Finance under the Financial recognition and promotion of the significance of Management Act 1994. The role of the Committee Aboriginal engagement and cultural heritage, and is to assist the Board in the effective discharge of its the importance of knowledge sharing with the responsibilities in overseeing the areas of statutory community. The Committee reviews, monitors and reporting, internal controls, risk management makes recommendations to the Board on a suite (including insurance and legal proceedings), of organisational strategies from an Aboriginal compliance and the internal and external audit engagement perspective and monitors how well functions. All members of the Committee are these strategies are implemented. independent. The Committee, supported by Parks During 2015–16, the Committee consisted of Natalie Victoria’s senior managers, comprises Professor Rob O’Brien (Chair), Professor Andrew Vizard (until Wallis (Committee Chair), Andrew Fairley, Dr. Dennis March 2016), Professor Robert Wallis, Christine Cavagna (until October 2015), Ross Passalaqua Trotman (from November 2015) and Darrell Wade (until November 2015), Christine Trotman (from (from November 2015). The Committee met twice November 2015), Kate Vinot (from November 2015) in 2015–2016. Two external Committee members and Carol Pagnon (external committee member). have been appointed to the Committee and will The Committee met four times in 2015–16. commence as members of the Committee in 2016–17 financial year; Denise Lovett and Mick Harding. Audit Risk and Compliance Committee Attendance Aboriginal Engagement Committee Attendance Total meeting attendance in 2015–16 Prof Robert Wallis 4/4 Total meeting attendance in 2015–16 Mr Andrew Fairley 3/4 Prof Robert Wallis 2/2 Ms Christine Trotman 3/3 Ms Natalie O’Brien 1/1 Ms Kate Vinot 3/3 Mr Darrell Wade 1/1 Mr Dennis Cavagna 1/1 Ms Christine Trotman 1/1 Mr Ross Passalaqua 1/1 Prof Andrew Vizard 1/1

1 Mr Andrew Grant, Ms Natalie O’Brien and Prof Robert Wallis’terms expired on 25 October 2015. They were reappointed on 10 November 2015 and attended one meeting between appointments with observer status. 2 Ms Kate Vinot, Ms Christine Trotman and Mr Darrell Wade were appointed on 10 November 2015. 3 Ms Rosemary Hehir was appointed on 10 November 2015 and was granted a leave of absence from 19 May – 31 July 2016. 4 Prof Andrew Vizard and Mr Dennis Cavagna’s terms expired on 25 October 2015. 5 Ms Deborah Cheetham resigned effective 25 July 2015.

Parks Victoria Annual Report 2015–16 47 The Finance and Commercial Committee The Committee, which is supported by Parks reviews, monitors and makes recommendations on Victoria senior managers, comprises Ross Passalaqua performance against financial budgets and plans. (Committee Chair), Professor Andrew Vizard (until The Committee is also responsible for supporting October 2015), Andrew Grant (until October 2015), and enhancing the commercial competence and Natalie O’Brien, Kate Vinot (from November 2015), cultural profile of Parks Victoria and making and Rosemary Hehir (from November 2015). The recommendations on current and future commercial Committee met three times in 2015–16. activities in line with the strategic direction of the organisation. During 2015–16, the Committee Workplace Safety and HR consisted of Andrew Grant (Chair), Ross Passalaqua, Committee Attendance Andrew Fairley (until November 2015), Darrell Wade (from November 2015) and Rosemary Hehir (from Total meeting attendance in 2015–16 November 2015). The Committee met four times Ms Natalie O’Brien 3/3 in 2015–16. The Committee was renamed and its terms of reference were amended by the Board and Mr Ross Passalaqua 3/3 in 2016–17, the Committee will be known as the Ms Kate Vinot 2/2 Visitor Experience and Commercial Committee. Ms Rosemary Hehir 1/2 Finance and Commercial Mr Andrew Grant 1/1 Committee Attendance Prof Andrew Vizard 1/1 Total meeting attendance in 2015–16 Mr Andrew Grant 4/4 Freedom of information Mr Ross Passalaqua 3/3 The Freedom of Information Act 1982 allows the Mr Darrell Wade 2/3 public the right of access to information contained in Ms Rosemary Hehir 2/3 documents held by Parks Victoria. In 2015–16, Parks Victoria received 33 requests for documents and Mr Andrew Fairley 0/1 information under the Act. Of the 33 requests: The Workplace Safety and Human Resources Committee is the appointed remuneration • 17 were decided by Parks Victoria committee with responsibility for determining the • three were courtesy consultations from organisation’s policy and practice for executive other agencies remuneration and packages under the Victorian Public Sector Commission Policy. The Committee • eight are yet to be finalised reviews, monitors and makes recommendations • three were dealt with outside the FOI process to the Board on the following issues: • one did not meet the requirement under • workplace health and safety the Act and was not processed • setting of performance measures and review • one lapsed. of the performance of the Chief Executive • compliance with executive remuneration requirements • human resources policies.

48 Compliance and disclosures Freedom of Information requests are made in Parks Victoria has established procedures for the writing describing the documents requested and protection of persons from detrimental action in including the payment of the $27.90 application reprisal for making a protected disclosure about fee. Application forms and information about how Parks Victoria or its employees. One can access Parks to make a request can be found on Parks Victoria’s Victoria’s procedures on its website at www.parks. website at www.parks.vic.gov.au. Requests should vic.gov.au. For further information, contact the be sent to the Freedom of Information Officer, Chief Legal Counsel, Parks Victoria, Level 10, 535 Parks Victoria, Level 10, 535 Bourke Street, Bourke Street, Melbourne 3000. Alternatively contact Melbourne 3000. the Independent Broad-Based Anti-Corruption Commission (IBAC) Victoria, Level 1, North Tower, 459 Collins Street, Melbourne Victoria 3000 Protected disclosures or via www.ibac.vic.gov.au

The Protected Disclosure Act 2012 (PD Act) enables Statement of availability people to make disclosures about improper conduct of other information by public officers and public bodies. The PD Act aims to ensure openness and accountability by The following information is available on request, encouraging people to make disclosures and subject to the Freedom of Information Act 1982: protecting them when they do. • a statement that declarations of pecuniary A protected disclosure is a complaint of corrupt or interests have been duly completed by all improper conduct by a public officer or a public body. relevant officers Parks Victoria is a “public body” for the purposes of • details of shares held by a senior officer as the PD Act. nominee, or held beneficially in a statutory authority or subsidiary (Note–Parks Victoria does Improper or corrupt conduct involves substantial: not issue shares nor does it hold shares in any • mismanagement of public resources; or joint venture or subsidiary) • risk to public health or safety or the environment; • details of publications produced by the agency or about itself, and how these can be obtained • corruption. • details of changes in prices, fees, charges, rates and levies charged by the agency The conduct must be criminal in nature or a matter for which an officer could be dismissed. • details of any major external reviews carried out on the agency One can make a protected disclosure about Parks Victoria or its board members, officers or employees • details of major research and development by contacting the Independent Broad-Based Anti- activities undertaken by the agency Corruption Commission (IBAC) on the contact details • details of overseas visits undertaken, including provided below. a summary of the objectives and outcomes Please note that Parks Victoria is not able to receive of each visit protected disclosures. • details of major promotional, public relations and marketing activities undertaken by the agency to develop community awareness of the entity and its services • details of assessments and measures undertaken to improve the occupational health and safety of employees

Parks Victoria Annual Report 2015–16 DRAFT 49 • a general statement on industrial relations within • local value-added activity commitment the agency, and details of time lost through of 100 percent industrial accidents and disputes • sourcing commitment toward maintenance and • a list of the agency’s major committees; the support services across pilot and phase purposes of each committee; and the extent one stages. to which the purposes have been achieved Regional Victorian project valued at $2.3 million over • details of all consultancies and contractors multiple stages and due for completion 2017–18: including: consultants or contractors engaged; • retention of five existing full-time employee roles services provided; and expenditure committed (jobs) to for each engagement. • creation of three full-time annualised employee equivalent opportunities (jobs) Building Act 1993 • local value-added activity commitment of 66.4 percent Parks Victoria does not currently comply with the building and maintenance provisions of the Building • sourcing supplier commitment for reinforcing Act 1993. Actions to address the issues preventing steel cages, structural steel, precast concrete, compliance will continue to be undertaken fibreglass (mesh). throughout 2016–17. New projects commenced in 2015–16 to which VIPP applied, included one regional Victorian project in the Victorian industry early planning stages, due for completion in 2017–18 financial year, valued at $1.2 million. participation policy (VIPP)

Departments and public bodies are required to comply National competition with the Victorian Industry Participation Policy Act 2003, which applies to all tenders over $3 million policy in metropolitan Melbourne and $1 million in Parks Victoria continues to implement and apply regional Victoria. competitive neutrality in its business undertakings. In 2015–16, Parks Victoria was fully compliant with It ensures fair competition between government this policy. and private sector businesses and removes any advantages or disadvantages that government During the financial year ending 30 June 2016, businesses may experience as a result of Parks Victoria undertook two projects with government ownership. VIPP application, valued at $6.9 million, one in metropolitan Melbourne and one in regional Victoria. The projects are due for completion in the 2016–17 and 2017–18 financial year, with highlights of VIPP commitments comprising: Melbourne metropolitan project valued at $4.6 million and due for completion 2016–17: • retention of one existing full-time employee role (job) • creation of eight full-time annualised employee equivalent opportunities (jobs)

50 Compliance and disclosures Consultancy expenditure

In 2015–16, there were 18 consultancies where the total fees payable to the consultants were $10,000 or greater. The total expenditure incurred during 2015–16 in relation to these consultancies is $423,116.28 (excl. GST). Details of individual consultancies can be viewed below.

Details of consultancies over $10,000 Total approved Expenditure Future project fee 2015–16 expenditure Purpose of (excluding (excluding (excluding Consultancy consultancy Start date End date GST) GST) GST) Parking & Traffic Car Parking 22/07/2015 30/06/2016 $16,750.00 $16,750.00 $- Consultants Congestion Levy University Of Tasmania ERM ANP Peatland Fire 13/11/2015 OPEN $57,842.00 $52,584.00 $5,258.40 – Research Office Risk Mitigation Commercialisation Unit Deakin University RPP Research – 06/06/2016 30/06/2016 $27,710.00 $20,000.00 $- RPP Terrestrial $7,710.00 LPC Consulting (Vic) PMO– Programming 22/04/2016 30/06/2016 $18,500.00 $18,500.00 $- Pty Ltd Process Review Randstad Pty Ltd Recruitment & 11/05/2016 OPEN $20,000.00 $19,100.04 $899.96 Retention Peter James Parkinson Employee Relations 15/06/2016 OPEN $26,320.00 $- $19,400.00

Kathryn Mary 15/06/2016 $3,920.00 $- O'Loughlin United Hr Solutions 04/02/2016 $3,000.00 $- Pty Ltd Fivenines Consulting Management 11/05/2016 30/06/2016 $12,250.00 $12,250.00 $- Pty Ltd & Leadership Development Program Coral Communications C&M Media 17/03/2016 30/06/2016 $11,880.00 $11,880.00 $- Pty Ltd Monitoring Ernst & Young Understanding 30/05/2016 OPEN $90,000.00 $70,024.00 $19,976.00 Sustainable Service Delivery Strategic Project Financial Management 03/09/2015 30/06/2016 $41,098.00 $41,000.00 $- Partners Operations 13/11/2015 $97.97 $- Ernst & Young Taxonomy Vendor 28/02/2016 28/06/2016 $28,155.00 $28,155.00 $- Management Ernst & Young Local Ports Berths & 09/11/2015 30/06/2016 $37,910.00 $37,910.00 $- Moorings Fee Review Biosphere Pty Ltd DYR Threatened 24/05/2016 30/06/2016 $14,000.00 $14,000.00 $- Species Management La Trobe University RTN Mallee Kangaroo 29/04/2016 24/06/2016 $28,000.00 $27,818.00 $- Management Edelman PR consultancy 1/12/2015 30/06/2016 $60,000.00 $60,000.00 $-

Department Large Herbivore 20/07/2015 OPEN $72,000.00 $22,727.27 $49,272.73 Environment Land Containment Water & Planning

Parks Victoria Annual Report 2015–16 51 Details of consultancies under $10,000 In 2015–16, there were five consultancies where the total fees payable to the consultants were less than $10,000. The total expenditure incurred during 2015–16 in relation to these consultancies is $21,265.68 (excl. GST).

Total approved Expenditure Future project fee 2015–16 expenditure Purpose of (excluding (excluding (excluding Consultancy consultancy Start date End date GST) GST) GST) Ernst & Young Australian Immigration 30/12/2015 30/06/2016 $6,458.00 $6,458.10 advice and assistance regarding Chief Executive engagement Wakelin Associates Bcc Projects & Planning 07/12/2015 30/06/2016 $1,065.00 $1,063.58 $1.42 Pty Ltd Tract Consultants Technical Assessments, 05/05/2016 30/06/2016 $8,000.00 $8,000.00 $- Unit Trust Planning Advice Required For Private Sector Investment The Big Picture Business Affairs & 13/08/2015 30/06/2016 $4,950.00 $4,950.00 $- Strategic Services Innovation Operating Intellagama Pty Ltd Research & draft 24/06/2016 26/06/2016 $9,400.00 $9,400.00 $- position paper for Melbourne Region

Major contracts Government advertising

With the exception of the contract referred to below, expenditure Parks Victoria has disclosed all contracts greater than Parks Victoria did not have any advertising expenditure $10 million in value, which were entered into during worth $100,000 or greater (exclusive of GST) during the year ended 2015–16. 2015–16. Contractual details have not been disclosed for those contracts that have been exempted from the Freedom of Information Act 1982 and/or Government guidelines. The contractual details with Fleet Partners for fleet management services were published on 20 July 2016. Details of contracts that have been disclosed can be viewed on the internet at www.contracts.vic.gov.au.

Capital Projects and Major Works The Mornington Pier Outer Breakwater and Wave Attenuator project reached practical completion in 2015–16. The total project cost was $15.4 million, and was funded through the Department of Economic Development, Jobs, Transport and Resources as a local ports project.

52 Compliance and disclosures Environmental performance

Parks Victoria’s intention is to progressively improve The data below is reported on a calendar year basis the scope and accuracy of our environmental to help avoid the impact of “data lag” which is the reporting as part our ongoing commitment to difference between the time of consumption and the environmental sustainability improvements. time of bill issue and payment. Energy, water and sustainability data is only produced The 2014 figures provided have been adjusted to and reported on a calendar year basis, therefore the accommodate improved data since last reporting. data below is as at the end of December 2015.

Item 2015 calendar year Electricity produced by Parks Victoria from fossil 600,000 kilowatt hours fuelled generators Electricity produced from renewable energy technologies 14,332 kilowatts or .3 per cent of total consumption of grid sourced electricity Potable water produced by Parks Victoria Approximately 30ML p.a. Sub metering required (other than Tidal River) at sites were potable water provided (Gabo Island & Wilsons Promontory Lighthouse) Trucked in water Varies according to climatic conditions (12 Apostles, Arthurs Seat and Lake Eildon) Consumption to be included in future reports Water extracted from rivers, streams and bores Site register, metering and recording system required

Parks Victoria Annual Report 2015–16 53 Megawatts of purchased Megalitres of water Greenhouse gas emissions electricity consumed consumed from reticulated (metered) supply

4800 300 10450

4600 10400 200 2-e 4400 10350 100 Megalitres Megawatts

4200 CO Tonnes 10300

0 0 0 Calandar Calandar Calandar Calandar Calandar Calandar year 2014 year 2015 year 2014 year 2015 year 2014 year 2015

Flat greenhouse gas emissions

600

2-e) 400

200 (tonnes CO

Fleet GHG emissions 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015

Notes: • Purchased electricity consumption relates to both indoor and outdoor use, including for example public place lighting (not buildings only). • The electricity consumption data provided is sourced direct from our contracted electricity provider (AGL) through a web based facility (consumption from non AGL providers is statistically insignificant or unmetered). • Water consumption is recorded on Parks Victoria’s Finance and People system (FAP) at time of bill payment and relates to reticulated water supply only. • Climatic variables will influence energy and water consumption. • AGL normalise data to accommodate the lag between consumption and billing. A similar approach is being investigated for water and gas use. Data lag is a common challenge when time of use metering is not available. • Greenhouse gas emissions data includes the following emission sources: 1. Purchased electricity 2. Stationary LPG and Natural Gas consumption recorded on FAP at time of bill payment (calendar year date range) 3. Stationary diesel fuel use estimates where known (generators) 4. Fleet fuel consumption • To better capture stationary diesel/petrol fuel use point of use metering is required. • Greenhouse gas emissions associated with air travel are not currently being captured. It is recommended that Parks Victoria participate in the State Government travel contract as this provides significant discounts and free travel related greenhouse gas emission reports. • Fleet fuel consumption can vary significantly for a range of reasons including for example fire season severity. With recent change in fleet provider it is expected kilometre travelled data will be more readily available. Whilst kilometre travelled data can be unreliable due to drivers not entering accurate odometer readings, what data is available will be used to determine the average litres per 100km travelled value which provides a more objective measure of fleet efficiency. Annual fuel consumption only data is only important for greenhouse gas emission reporting. • Greenhouse gas emission factors are not static and can vary slightly from year to year particularly in the case of electricity generation.

54 Compliance and disclosures DataVic Access Policy Sponsorships

The DataVic Access Policy 2012 enables the sharing In line with the Victorian Government Sponsorship of government data at no, or minimal, cost to users. Policy and Parks Victoria’s Sponsorship Procedure, Parks Victoria continues to review its datasets to six sponsorship requests were approved totalling determine suitability for submission to DataVic. In the $28,813 ($25,481 was cash sponsorship and $3,332 interim, various data sets have been made available was in-kind sponsorship). The sponsorship was directly to special interest groups on an ad-hoc basis provided for four awards programs, one competition and digital maps, available to the public, are geo and one conference. referenced and able to be interacted and referenced accordingly. Other information has been supplied to various departments, such as DELWP, as the data owner or agency responsible for further distribution.

Information and communication technology (ICT) expenditure Parks Victoria had a total ICT expenditure of $11.4m in 2015–16, consisting of the following:

Business As Usual (BAU) ICT Expenditure $9.7 million

Non-Business As Usual (non-BAU) ICT Expenditure (Total = Operational expenditure & Capital Expenditure) $1.7 million

Operational Expenditure $0.6 million

Capital Expenditure $1.1 million

Notes: • “ICT Expenditure” refers to Parks Victoria’s costs in providing business-enabling ICT services. It comprises Business As Usual (BAU) ICT expenditure and NON-Business As Usual (Non- BAU) ICT expenditure. • “Non-BAU ICT expenditure” relates to extending or enhancing Parks Victoria’s current ICT capabilities. • “BAU ICT expenditure” is all remaining ICT expenditure which primarily relates to ongoing activities to operate and maintain the current ICT capability. • Includes Staff travel and allocation YTD numbers from Projects

Parks Victoria Annual Report 2015–16 55 Compliance with the Australian/New Zealand Risk Management Standard

56 Compliance and disclosures Gifts, Benefits and Hospitality Framework attestation

Parks Victoria Annual Report 2015–16 57 Financial report

Comprehensive Operating Statement 59 Balance Sheet 60 Statement of Changes in Equity 61 Cash Flow Statement 62 Table of Contents 63 Notes to Financial Statements 64 Statutory Certificate 112 Auditor’s Report 113

58 Financial report Comprehensive Operating Statement For the year ended 30 June 2016

2016 2015 Notes $’000 $’000 Continuing operations Income from transactions Parks and reserves trust funding 3 97,537 84,323 Government funding 4 97,672 76,773 Interest 5 2,720 3,279 Fair value of assets received free of charge 6 1,730 262 Insurance claims 7 2,057 2,269 Other income 8 37,799 36,378 Total income from transactions 239,515 203,284

Expenses from transactions Employee benefits expenses 9 116,674 106,165 Depreciation and amortisation 10 12,685 12,290 Contracts and external services 11 71,406 67,952 Other operating expenses 12 22,587 23,103 Total expenses from transactions 223,352 209,510 Net result from transactions (net operating balance) 16,163 (6,226)

Net gain/(loss) on non-financial assets 13(a) (460) (399) Net gain/(loss) on financial instruments 13(b) (216) 486 Other gains/(losses) from other economic flows 13(c) (1,639) (1,658) Total other economic flows included in net result (2,315) (1,571) Net result 13,848 (7,797)

Other economic flows – other comprehensive income Items that will not be reclassified to net result Actuarial gain/(loss) recognised in a year 13(d) (1,506) (280) Changes in physical asset revaluation surplus 23 324,638 2,426 Total other economic flows – other comprehensive income 323,132 2,146 Comprehensive result 336,980 (5,651)

The above Comprehensive Operating Statement should be read in conjunction with the accompanying notes.

Parks Victoria Annual Report 2015–16 59 Balance Sheet As at 30 June 2016

2016 2015 Notes $’000 $’000 Assets Financial assets Cash and deposits 14 16,230 25,956 Receivables 15 17,635 7,970 Investments and other financial assets 16 95,000 55,000 Total financial assets 128,865 88,926

Non-financial assets Inventories 17 168 180 Property, plant and equipment 18 2,145,158 1,825,221 Intangible assets 19 3,435 3,978 Superannuation defined benefits asset 29(c) – 135 Other non-financial assets 20 1,120 780 Total non-financial assets 2,149,881 1,830,294

Total assets 2,278,746 1,919,220

Liabilities Trade and other payables 21 25,169 17,599 Provisions 22 37,371 35,653 Superannuation defined benefits liability 29(c) 1,808 – Total liabilities 64,348 53,252

Net assets 2,214,398 1,865,968

Equity Accumulated surplus/(deficit) 104,640 92,300 Physical asset revaluation surplus 23 1,460,317 1,135,679 Contributed capital 24 649,441 637,989 Total equity 2,214,398 1,865,968

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

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

Physical Asset Accumulated Revaluation Surplus / Contributed Surplus (Deficit) Capital Total Notes $’000 $’000 $’000 $’000 Balance at 1 July 2014 1,133,292 100,377 636,902 1,870,571 Other comprehensive income 2,387 – – 2,387 Net results – (7,797) – (7,797) Actuarial gain/(loss) recognised in a year – (280) – (280) Contributed capital 24 – – 1,087 1,087 Balance at 30 June 2015 1,135,679 92,300 637,989 1,865,968

Balance at 1 July 2015 1,135,679 92,300 637,989 1,865,968 Other comprehensive income 324,638 – – 324,638 Net results – 13,848 – 13,848 Actuarial gain/(loss) recognised in a year – (1,506) – (1,506) Contributed capital 24 – – 11,452 11,452 Balance at 30 June 2016 1,460,317 104,640 649,441 2,214,398

The statement of changes in equity should be read in conjunction with the accompanying notes.

Parks Victoria Annual Report 2015–16 61 Cash Flow Statement For the year ended 30 June 2016

2016 2015 Notes $’000 $’000 Cash Flows from operating activities Receipts Receipts from parks charges 97,537 84,326 Receipts from government for operations 107,900 97,814 Receipts from government for Base Funding Review 6,419 6,419 Receipts from customers/other sources 34,992 43,870 Receipts from ATO relating to Goods and Services Tax 6,944 474 Interest received 2,599 3,202 Total receipts 256,391 236,105

Payments Payments to government for revenue collected from national parks (10,876) (10,241) Payments to suppliers and employees (213,513) (216,031) Total payments (224,389) (226,272) Net cash inflow from operating activities 25(c) 32,002 9,833

Cash Flows from investing activities Payments for property, plant and equipment (12,840) (15,843) Payments for other assets (investment with TCV)* (40,000) (55,000) Proceeds from sale of property, plant and equipment 1 – Net cash (outflow) from investing activities (52,839) (70,843)

Cash flows from financing activities Receipts from government – contributed capital 11,471 2,235 Repayment to government – Greener government buildings program (360) – Net cash inflow from financing activities 11,111 2,235 Net (decrease) in cash and cash equivalents (9,726) (58,775)

Cash and cash equivalents at the beginning of the financial year 25,956 84,731 Cash and cash equivalents at end of year 25(a) 16,230 25,956

* Reclassified from cash to investment The above Cash Flow Statement should be read in conjunction with the accompanying notes.

62 Financial report Contents of the notes to the financial statements

1 Background 64 2 Summary of significant accounting policies 64 3 Parks and reserves trust funding 80 4 Government funding 80 5 Interest 80 6 Fair value of assets received free of charge 80 7 Insurance claims 80 8 Other income 81 9 Employee benefits expenses 81 10 Depreciation and amortisation 81 11 Contracts and external services 81 12 Other operating expenses 82 13 Other economic flows included in net result 82 14 Cash and deposits 82 15 Receivables 83 16 Other financial assets 84 17 Inventories 84 18 Property, plant and equipment 85 19 Intangible assets 94 20 Other non-financial assets 94 21 Payables 95 22 Provisions 95 23 Physical asset revaluation surplus 96 24 Contributed capital 96 25 Cash flow information 97 26 Contingent liabilities and contingent assets 97 27 Commitments 98 28 Superannuation 98 29 Defined superannuation benefit 99 30 Volunteer resources provided free of charge 102 31 Auditor’s remuneration 102 32 Responsible persons and executive officer disclosures 102 33 Interest in other entities 104 34 Financial instruments 105 35 Committed funds 111 36 Ex-gratia payments 111 37 Post balance date events 111

Parks Victoria Annual Report 2015–16 63 Notes to the financial statements For the year ended 30 June 2016

1 Background a) Reporting entity

Parks Victoria is a not-for-profit individual reporting entity. Parks Victoria was formed as a public authority on 3 July 1998 under the Parks Victoria Act 1998. The Parks Victoria Act 1998 was given Royal Assent on 26 May 1998 and was proclaimed on 3 July 1998. The principal address is: Level 10/ 535 Bourke Street, Melbourne, VIC 3000 b) Objective and funding

The objective of Parks Victoria is to provide an outstanding park and waterway system, protected and enhanced, for people, forever. Parks Victoria receives the majority of its funding from the Victorian Government for the management of Victoria’s National/State Parks and Reserves and from the Parks and Reserves Trust for the management of metropolitan parks and waterways. The Trust is funded by a Parks charge levied on properties within the Melbourne metropolitan area. During the financial year Parks Victoria received approximately 68% (2015: 59%) of Trust funds. These general purpose financial statements have been prepared in accordance with the Financial Management Act 1994 and applicable Australian Accounting Standards, including Interpretations (AASs). AASs include Australian equivalents to International Financial Reporting Standards.

2 Summary of significant accounting policies a) General

Statement of compliance

The financial statements as at 30 June 2016 comply with the relevant Financial Reporting Directions (FRDs) issued by the Department of Treasury and Finance and relevant Standing Directions (SD) authorised by the Minister for Finance. Under Australian Accounting Standards (AASs), there are requirements that apply specifically to not- for-profit entities. Parks Victoria has analysed its purpose, objectives, and operating philosophy and determined that it does not have profit generation as a prime objective. Where applicable, the AASs that relate to not-for-profit entities have been applied. The financial statements were authorised for issue by the Board of Parks Victoria on 16 August 2016.

64 Financial report Notes to the financial statements For the year ended 30 June 2016 b) Basis of accounting preparation and measurement

The accrual basis of accounting has been applied in the preparation of these financial statements whereby assets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid. These financial statements are presented in Australian dollars, the functional and presentation currency of Parks Victoria. In the application of AASs, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on professional judgements derived from historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. 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. Judgements and assumptions made by management in the application of (AASs) that have significant effects on the financial statements and estimates relate to: • depreciation expenses for property, plant and equipment, refer to note 2(o) – Depreciation and amortisation, • fair value estimation, refer to note 2(f) (ii) Property, plant and equipment, • actuarial assumptions for defined benefit superannuation gains and losses, refer to note 2(i)(ii).vii.ii Superannuation. • provisions related to employee benefits refer to note, 2(i)(ii)Employee benefits. These financial statements have been prepared in accordance with the historical cost convention except for: • non-current physical assets which, subsequent to acquisition, are measured at a re-valued amount being their fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent impairment losses. Revaluations are made with sufficient regularity to ensure that the carrying amounts do not materially differ from their fair value; • the fair value of an asset other than land, antiques and work in progress is based on its depreciated replacement cost; • Defined benefit superannuation plan assets and obligations. Historical cost is based on the fair values of the consideration given at the time in exchange for assets. Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported. Consistent with AASB 13 Fair Value Measurement, Parks Victoria determines the policies and procedures for both recurring fair value measurements such as property, plant and equipment, financial instruments, and for non recurring fair value measurements such as non financial physical assets held for sale, in accordance with the requirements of AASB 13 and the relevant Financial Reporting Directions.

Parks Victoria Annual Report 2015–16 65 Notes to the financial statements For the year ended 30 June 2016 b) Basis of accounting preparation and measurement (continued)

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: • Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities, • Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; and • Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. For the purpose of fair value disclosures, Parks Victoria has determined classes of assets on the basis of the nature, characteristics and risks of the asset and the level of the fair value hierarchy as explained above. In addition, Parks Victoria determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. The Valuer-General Victoria (VGV) is the Department’s independent valuation agency. Parks Victoria, in conjunction with VGV, monitors changes in the fair value of each asset and liability through relevant data sources to determine whether revaluation is required. Consistent with the accounting requirement, Parks Victoria reviews its agreements with other entities to determine the nature of its arrangements. Investments in associates are accounted for using the equity method of accounting, after initially being recognised at cost. Under this method, where applicable, Parks Victoria’s share of the profits or losses of associates is recognised in net result as other economic flows and its share of movements in reserves is recognised in reserves (non-owner equity) in both the comprehensive operating statement and the statement of changes in equity. The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2016 and the comparative information presented for the year ended 30 June 2015. c) Asset recognition and measurement

Parks Victoria only recognises assets on land it controls as the committee of management. Parks Victoria also manages other assets on behalf of the Crown. Those assets and any new assets constructed by Parks Victoria on behalf of the Crown are recognised in the asset register of the Department of Environment, Land, Water and Planning.

66 Financial report Notes to the financial statements For the year ended 30 June 2016 d) Scope and presentation of financial statements

(i) Comprehensive operating statement

The comprehensive operating statement comprises three components, being ‘net result from transactions’, ‘other economic flows included in net result’, as well as ‘other economic flows – other comprehensive income’. The sum of the former two, together with the net result from discontinued operations, represents the net result. The net result is equivalent to profit or loss derived in accordance with AASs. This classification is consistent with the whole of government reporting format and is allowed under AASB 101 Presentation of Financial Statements.

(ii) Balance sheet

Assets and liabilities are presented in liquidity order with assets aggregated into financial assets and non-financial assets. Current and non current assets and liabilities are disclosed in the notes, where relevant. In general, non current assets or liabilities are expected to be recovered or settled more than 12 months after the reporting period, except for the provisions of employee benefits, which are classified as current liabilities if the entity does not have the unconditional right to defer the settlement of the liabilities within 12 months after the end of the reporting period.

(iii) Statement of changes in equity

The statement of changes in equity presents reconciliations of non owner and owner changes in equity from opening balances at the beginning of the reporting period to the closing balances at the end of the reporting period. It also shows separately changes due to amounts recognised in the ‘Comprehensive result’ and amounts related to ‘Transactions with owner in its capacity as owner’.

(iv) Cash flow statement

Cash flows are classified according to whether or not they arise from operating activities, investing activities or financing activities. This classification is consistent with requirements under AASB 107 Statement of cash flows.

Parks Victoria Annual Report 2015–16 67 Notes to the financial statements For the year ended 30 June 2016

(e) Financial assets

(i) Cash and deposits

Cash and deposits recognised on the balance sheet comprise cash on hand and cash at bank, deposits at call and those highly liquid investments (with an original maturity of three months or less), which are held for the purpose of meeting short term cash commitments rather than for investment purposes, and readily convertible to known amounts of cash with an insignificant risk of changes in value. For the purpose of the Cash Flow Statement, cash assets include cash on hand and highly liquid investments with short periods to maturity that are readily convertible to cash on hand at Parks Victoria’s option and are subject to insignificant risk of changes values, net of outstanding bank overdrafts.

(ii) Receivables

Receivables consist of: • statutory receivables, which include predominantly amounts owing from the Victorian Government and GST input tax credits recoverable; and • contractual receivables, which include mainly debtors in relation to goods and services, and accrued investment income. Receivables that are contractual are classified as financial instruments and categorised as loans and receivables. Statutory receivables are not classified as financial instruments. Receivables are recorded initially at fair value and subsequently measured at amortised cost, using the effective interest method, less impairment. Compensation from third parties for items of property, plant and equipment that were impaired, lost or given up are recognised as a receivable when the receipt of the reimbursement becomes “virtually certain.” Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A provision for doubtful debts is established when there is objective evidence that Parks Victoria will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial. The amount of the provision is recognised in the Comprehensive Operating Statement. Bad debts are written off in the period in which they are incurred. The average credit period on sales of goods or provision of services is 30 days.

(iii) Other financial assets

Other financial assets are recognised and derecognised on trade date where purchase or sale of an investment is under a contract whose terms require delivery of the investment within the time frame established by the market concerned, and are initially measured at fair value, net of transaction costs. Parks Victoria classifies its other financial assets between current and non-current assets based on the purpose for which the assets were acquired. Management determines the classification of its other financial assets at initial recognition. Parks Victoria assesses at each balance sheet date whether a financial asset or group of financial assets is impaired.

68 Financial report Notes to the financial statements For the year ended 30 June 2016 f) Non-financial assets

(i) Inventories

Inventories comprise stores and materials and are valued at the lower of cost and net realisable value. Costs are assigned to inventory on hand at balance date on a first in, first out basis. Net realisable value represents the estimated selling price less all estimated costs of completion and costs to be incurred in marketing and selling distribution.

(ii) Property, plant and equipment

All non-current physical assets are measured initially at cost and subsequently revalued at fair value, except Work in Progress (WIP), less accumulated depreciation and impairment. Where an asset is acquired for no or nominal cost, the cost is its fair value at the date of acquisition. Assets transferred as part of a machinery of government change are transferred at their carrying amount. More details about the valuation techniques and inputs used in determining the fair value of non-financial physical assets are discussed under note 18 Property, plant and equipment. Property, plant and equipment represent non-current assets used by Parks Victoria, comprising: • Crown land, land and land improvements. • Buildings and building improvements. • Piers, jetties and river improvements. • Plant, equipment, machinery and vehicles. • Antiques. • Works in progress. Items with a cost or value of $5,000 (2015: $5,000) or more, and a useful life of more than one year are recognised as an asset. All other assets acquired are expensed. Non-current physical assets such as national parks and other Crown land are measured at fair value with regard to the property’s highest and best use after due consideration is made for any legal or constructive restrictions imposed on the asset, public announcements or commitments made in relation to the intended use of the asset. Theoretical opportunities that may be available in relation to the asset are not taken into account until it is virtually certain that the restrictions will no longer apply. Therefore, unless otherwise disclosed, the current use of these non-financial physical assets will be their highest and best use. The fair value of other non-current physical assets that Parks Victoria intends to preserve because of their unique historical, cultural or environmental attributes, is measured at the replacement cost of the asset less, where applicable, accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset and any accumulated impairment. Land under declared roads acquired prior to 1 July 2008 is measured at fair value. Land under declared roads acquired on or after 1 July 2008 is measured initially at cost of acquisition and subsequently at fair value. The fair value methodology applied by the Valuer-General Victoria is based on discounted site values for relevant municipal areas applied to land area under the arterial road network, including related reservations. The fair value of infrastructure systems and plant, equipment and vehicles, is normally determined by reference to the asset’s depreciated replacement cost. The cost of constructed non-financial physical assets includes the cost of all materials used in construction, direct labour on the project, and an appropriate proportion of variable and fixed overheads. For accounting policy on impairment of non-financial assets, refer to note 2(g) – Impairment of non-financial assets .

Parks Victoria Annual Report 2015–16 69 Notes to the financial statements For the year ended 30 June 2016 f) Non-financial assets (continued)

Revaluations of non-current physical assets Non-current physical assets measured at fair value are revalued in accordance with FRD 103F Non-Financial Physical Assets issued by the Minister for Finance. This revaluation process normally occurs every five years, based upon the asset’s Government Purpose Classification, but may occur more frequently if fair value assessments indicate material changes in value. Revaluation increases or decreases arise from differences between an asset’s carrying value and fair value. Net revaluation increases are credited directly to equity in the physical asset revaluation surplus, except to the extent that an increase reverses a net revaluation decrease in respect of that class of property, plant and equipment previously recognised as an expense (other economic flows) in the net result, the increase is recognised as income (other economic flows) in determining the net result. Net revaluation decreases are recognised immediately as expenses (other economic flows) in the net results, except to the extent that a credit balance exists in the physical asset revaluation surplus in respect of the same class of property, plant and equipment in which case they are debited to the physical asset revaluation surplus. Revaluation increases and decreases relating to individual assets within a class of property, plant and equipment are offset against one another within that class but are not offset in respect of assets in different classes. A full revaluation of non-financial physical assets was conducted in June 2016 in accordance with the Financial Reporting Directions (FRDs) issued by the Minister of Finance. The useful lives and residual values of the respective assets were adjusted to reflect the most recent assessment performed by the Valuer-General Victoria (VGV). The next scheduled full revaluation will be conducted in June 2021. The Valuer-General provides guidance to asset valuers on the valuation rationale and appropriate level of “Community Service Obligation” discount of 70% and 90% were applied to the assets.

(iii) Crown land

Crown land is measured at fair value with regard to the property’s highest and best use after due consideration is made for any legal or constructive restrictions imposed on the land, public announcements or commitments made in relation to the intended use of the land. Theoretical opportunities that may be available in relation to the asset are not taken into account until it is virtually certain that the restrictions will no longer apply. The financial statements list the location and values of Crown land over which Parks Victoria is the committee of management note 18(c). This Crown Land remains the property of the State of Victoria. Crown Land is used for heritage and environmental conservation, recreation, leisure, tourism and navigation.

70 Financial report Notes to the financial statements For the year ended 30 June 2016 f) Non-financial assets (continued)

Restrictive nature of antiques and artwork Crown land and infrastructures During the reporting period, Parks Victoria held antiques and artworks, Crown land and infrastructure. Such assets are deemed worthy of preservation because of the social rather than financial benefits they provide to the community. The nature of these assets means that there are certain limitations and restrictions imposed on their use and/or disposal.

(iv) Intangible assets

Intangible assets are initially recognised at cost. Subsequently, intangible assets with finite useful lives are carried at cost less accumulated amortisation and accumulated impairment losses. Costs incurred subsequent to initial acquisition are capitalised when it is expected that additional future economic benefits will flow to Parks Victoria. Intangible assets include business systems and IT software. g) Impairment of non-financial assets

All non-financial assets are assessed annually for indications of impairment, except for: • Inventories, refer note 2(f) (i). If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written off by charge to the Comprehensive Operating Statement except to the extent that the write-down can be debited to the physical asset revaluation surplus account. If there is an indication that there has been a reversal in the estimate of an asset’s recoverable amount since the last impairment loss was recognised, the carrying amount shall be increased to its recoverable amount. The impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised in prior years. It is deemed that, in the event of the loss or destruction of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made. The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell.

Parks Victoria Annual Report 2015–16 71 Notes to the financial statements For the year ended 30 June 2016 h) Leased assets

A lease is a right to use an asset for an agreed period of time in exchange for payment. Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement to reflect the risks and rewards incidental to ownership. Leases of property, plant and equipment are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership from the lessor to the lessee. All other leases are classified as operating leases. All of Parks Victoria’s leases are currently classified as operating leases.

(i) Operating leases

(i) Parks Victoria as lessee Operating lease payments, including any contingent rentals, are recognised as an expense in the Comprehensive Operating Statement on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern of the benefits derived from the use of the leased asset. The leased asset is not recognised in the Balance Sheet. i) Liabilities

(i) Payables

Payables consist of: • contractual payables, such as accounts payable, and unearned income including deferred income. Accounts payable represents liabilities for goods and services provided to Parks Victoria to the end of the financial year that are unpaid, and arise when Parks Victoria becomes obliged to make future payments in respect of the purchase of those goods and services; and • statutory payables, such as goods and services tax and fringe benefits tax payables. Contractual payables are classified as financial instruments and categorised as financial liabilities at amortised cost. Statutory payables are recognised and measured similarly to contractual payables, but are not classified as financial instruments and not included in the category of financial liabilities at amortised cost, because they do not arise from a contract. Payables are non-interest bearing and have an average credit period of 30 days.

(ii) Employee benefits

(i) Wages and salaries and sick leave Liabilities for wages and salaries that are expected to be settled wholly within 12 months of the reporting date are measured at their nominal amounts in respect of employees’ services up to the reporting date. The nominal basis of measurement uses employee remuneration rates that the entity expects to pay as at each reporting date and does not discount cash flows to their present value. Non-vesting sick leave is not expected to exceed current and future sick leave entitlements, and accordingly, no liability has been recognised. Liabilities for wages and salaries that are not expected to be settled wholly within 12 months of the reporting date are measured at present value.

72 Financial report Notes to the financial statements For the year ended 30 June 2016 i) Liabilities (continued)

(ii) Annual leave and long service leave Annual leave and long service leave entitlements expected to be settled wholly within 12 months of the reporting date are recognised as a provision for employee benefits in the Balance Sheet at their nominal values. Annual leave and long service leave entitlements not expected to be settled wholly within 12 months of the reporting date are recognised at the present value of the estimated future cash outflows to be made by Parks Victoria in respect of services provided by employees up to reporting date. Consideration is given to expected future employee remuneration rates, employment related on-costs and other factors including experience of employee departures and periods of service. In the determination of annual and long service leave entitlement liabilities, Parks Victoria use the wage inflation and discount rates released by the Department of Treasury and Finance.

(iii) Classification of employee benefits as current and non-current liabilities Employee benefit provisions are reported as current liabilities where Parks Victoria does not have an unconditional right to defer settlement for at least 12 months. Consequently, the current portion of the employee benefit provision can include both short-term benefits (those benefits expected to be settled within 12 months of the reporting date), which are measured at nominal values, and long-term benefits (those benefits not expected to be settled wholly within 12 months of the reporting date), which are measured at present values. Employee benefit provisions that are reported as non-current liabilities also include long-term benefits such as non-vested long service leave (i.e. where the employee does not have a present entitlement to the benefit) that do not qualify for recognition as a current liability, and are measured at present values. The non-current liability for long service leave represents entitlements accrued for employees with less than seven (7) years of continuous service, where Parks Victoria has the right to defer the liability.

(iv) Termination benefits Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. Parks Victoria recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after the end of the reporting period are discounted to present value.

(v) Performance payments Performance payments for Parks Victoria’s Executive Officers are based on a percentage of the annual salary package provided under their contracts of employment. A liability is recognised and is measured as the aggregate of the amounts accrued under the terms of the contracts at balance date. Since the performance payments earned are paid upon completion of annual performance reviews, the total amount is classified as a current liability.

Parks Victoria Annual Report 2015–16 73 Notes to the financial statements For the year ended 30 June 2016 i) Liabilities (continued)

(vi) On costs related to employee benefits On costs such as payroll tax, and workers compensation are recognised separately from the provision for employee benefits.

(vii) Superannuation (i) Defined accumulation plans Contributions are made by Parks Victoria to employee superannuation funds and are charged as expenses when incurred. (ii) Defined benefit plans A liability or asset in respect of defined superannuation benefit plans is recognised in the Balance Sheet and is measured as the difference between the present value of employees accrued benefits at the end of the reporting period and the net market value of the superannuation plan’s assets at that date. The present value of benefits as accrued benefits is based on expected future payments which arise from membership of the plans at the end of the reporting period. Consideration is given to expected future salary levels, resignation and retirement rates. Expected future payments are discounted using rates of Commonwealth Government bonds with terms to maturity that match, as closely as possible the estimated future cash outflows. The amount brought to account in the Comprehensive Operating Statement in respect of superannuation represents the contributions made to the superannuation plan, adjusted by the movement in the defined benefit plan liability or asset. All actuarial gains and losses are recognised in the Other Comprehensive Income (OCI) in the reporting period in which they occur. Parks Victoria only recognises the liability for Vision Super defined benefit plans. Parks Victoria does not recognise the defined benefit liability in respect of any other plans because the entity has no legal or constructive obligation to pay future benefits relating to its employees. Disclosure of superannuation contributions by Parks Victoria is provided in Note 28.

(iii) Provisions

Provisions are recognised when Parks Victoria has a present obligation as a result of a past event, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably. The amount recognised as a liability is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows, using a discount rate that reflects the time value of money and risks specific to the provision. When some or all of the economic benefits required to settle a provision are expected to be recognised from a third party, the receivable is recognised as an asset if it is virtually certain that recovery will be received and the amount of the receivable can be measured reliably.

(iv) Deferred revenue

Deferred revenues represent the portion of reciprocal government and external grants/funding for conditions which at the end of financial year had not been performed (refer to note [2(k)]).

74 Financial report Notes to the financial statements For the year ended 30 June 2016 j) Contributed capital

Consistent with the requirements of AASB 1004 Contributions, Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities and FRD 119 A Transfers through Contributed Capital, appropriations for additions to the net assets base have been designated as contributed capital and do not form part of the income and expenses of the entity. Other transfers that are in the nature of contributions or distributions have also been designated as contributed capital. k) Income recognition

Amounts disclosed as income are, where applicable, net of returns, allowances and duties and taxes. Parks Charge income is recognised when invoiced by Parks Victoria. Other income, including external grants/funding, is recognised when earned or on receipt, depending on which ever occurs earlier. Compensation from third parties for items of property, plant and equipment that were impaired, lost or given up are recognised in profit or loss when the receipt of the reimbursement becomes “virtually certain.” Where government and external grants/funding are reciprocal, income is recognised as performance occurs under the grant. Non-reciprocal grants are recognised as income when the grant is received or receivable. Conditional grants may be reciprocal or non-reciprocal depending on the terms of the grant. Where government funding is reciprocal, income is recognised as performance occurs under the grant. Non-reciprocal grants are recognised as income when control over the grant is obtained. A deferred revenue balance is recognised when funding has been received though eligibility criteria have not yet been met. A liability is also recognised where the entity has a present obligation to return grant funding under the agreements and it is probable that an outflow of economic resources will be required. l) Interest income

Interest income includes unwinding over time of discounts on financial assets and interest received or receivable on bank term deposits and other investments. Interest income is recognised on a time proportionate basis that takes into account the effective yield on the financial asset.

Parks Victoria Annual Report 2015–16 75 Notes to the financial statements For the year ended 30 June 2016 m) Resources provided and received free of charge or for nominal consideration

Contributions of resources including volunteer resources and assets received free of charge or for nominal consideration are recognised at their fair value. Contributions in the form of services are only recognised at their fair value. Contributions in the form of services are only recognised when a fair value can be reliably determined and the services would have been purchased if not donated. n) Grants and other payments

Grants and other payments to third parties are recognised as an expense in the reporting period in which they are paid or payable. They include transactions such as: grants, subsidies, other transfer payments made to State owned agencies, local government, non-government schools and community groups. o) Depreciation and amortisation

Depreciation is applied to completed fixed assets including buildings and building improvements, piers, jetties and river improvements, land improvements and plant, equipment, machinery, and vehicles. Land is not depreciated. Works in Progress is valued at cost and depreciation commences on completion of the works. Depreciation is calculated on a straight-line basis to systematically write off the cost or revalued amount (net of residual value) of each non-current asset over its expected useful life to the entity. Depreciation rates are reviewed annually and, if necessary, adjusted to reflect the most recent assessments of the useful lives and residual values of the respective assets. Where assets have separate identifiable components that have distinct useful lives and/or residual values, a separate depreciation rate is determined for each component. The expected useful life of each asset category is as follows:

2016 2015 Expected Life Expected Life Asset category (Years) (Years)

Buildings and building improvements 5 to 100 5 to 100 Piers, jetties and river improvements 6 to 100 6 to 100 Land improvements 1 to 100 1 to 100 Plant, equipment, machinery and vehicles 1 to 10 1 to 10 Antiques 100 100

Amortisation is calculated on a straight-line basis to systematically write off the cost or revalued amount of each intangible asset over its expected useful life to the entity. Amortisation rates are reviewed annually and, if necessary, adjusted to reflect the most recent assessments of the useful lives and residual values of the respective assets. The expected useful life of each Intangible assets category (computer software) is 10 years (2015: 10 years).

76 Financial report Notes to the financial statements For the year ended 30 June 2016 p) Contracts, external services and other operating expenses

Supplies and services are recognised as an expense in the reporting period in which they are incurred. q) Finance costs

Finance costs (mainly bank charges) are recognised as expenses in the period in which they are incurred. r) Commitments

Commitments for future expenditure include operating and capital commitments arising from contracts. These commitments are disclosed by way of a note (refer to note 27) at their nominal value and inclusive of the Goods and Services Tax (GST) payable. In addition, where it is considered appropriate and provides additional relevant information to users, the net present values of significant individual projects are stated. These future expenditures cease to be disclosed as commitments once the related liabilities are recognised in the Balance Sheet. s) Contingent assets and contingent liabilities

Contingent assets and contingent liabilities are not recognised in the Balance Sheet, but are disclosed by way of a note and, if quantifiable, are measured at nominal value. Contingent assets and liabilities are presented inclusive of GST receivable or payable respectively. t) Goods and Services Tax

Revenues, expenses and assets are recognised net of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of expense. Receivables and payables are stated inclusive of GST. The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables. Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the ATO, is classified as operating cash flows and disclosed therein. u) Rounding of amounts

Amounts in the financial statements have been rounded to the nearest thousand dollars, unless otherwise stated. Figures in the financial statements may not equate due to rounding.

Parks Victoria Annual Report 2015–16 77 Notes to the financial statements For the year ended 30 June 2016

v) New accounting standards and interpretations

Certain new AASs have been published that are not mandatory for the 30 June 2016 reporting period. Parks Victoria assesses the impact of these new standards, their applicability and early adoption, where applicable. As at 30 June 2016, the applicable standards and interpretations (applicable to Parks Victoria) had been issued but were not mandatory for the financial year ending 30 June 2016. Parks Victoria has not early adopted these standards.

Applicable for annual reporting periods Impact on Parks Victoria's Standard/Interpretation Summary beginning on financial statements

AASB 9 Financial Instruments The key changes include the simplified 1 Jan 2018 The assessment has indicated that there requirements for the classification and is no expected impact as the Parks Victoria measurement of financial assets, a new does not carry assets that are classified as hedging accounting model and a revised available for sale. impairment loss model to recognise impairment losses earlier, as opposed to the current approach that recognises impairment only when incurred.

AASB 15 Revenue from Contracts The core principle of AASB 15 requires 1 Jan 2018 The changes in revenue recognition with Customers an entity to recognise revenue when the requirements in AASB 15 may result entity satisfies a performance obligation in changes to the timing and amount by transferring a promised good or service of revenue recorded in the financial to a customer. statements. The Standard will also require additional disclosures on service revenue and contract modifications. Parks Victoria is still assessing the impact of this standard.

AASB 2014–1 Amendments to Amends various AASs to reflect the 1 Jan 2018 This amending standard will defer the Australian Accounting Standards AASB’s decision to defer the mandatory application period of AASB 9 to the [Part E Financial Instruments] (AASB application date of AASB 9 to annual 2018–19 reporting period in accordance 116 & AASB 138) reporting periods beginning on or after with the transition requirements. 1 January 2018 as a consequence of Chapter 6 Hedge Accounting, and to amend reduced disclosure requirements.

AASB 16 Leases The key changes introduced by AASB 16 1 Jan 2019 The assessment has indicated that as include the recognition of most operating most operating leases will come on leases (which are current not recognised) Balance Sheet, recognition of lease. on balance sheet. Depreciation of lease assets and interest on lease liabilities will be recognised in the Comprehensive Operating Statement with marginal impact on the net result. Lease liabilities will cause net debt to increase.

AASB 2016–4 Amendments to The standard amends AASB 136 1 Jan 2017 The assessment has indicated that there Australian Accounting Standards Impairment of Assets to remove references is minimal impact. Given the specialised – Recoverable Amount of Non-Cash- to using depreciated replacement cost nature and restrictions of public sector Generating Specialised Assets of (DRC) as a measure of value in use for assets, the existing use is presumed to be Not-for-Profit Entities not-for-profit entities. the highest and best use (HBU), hence current replacement cost under AASB 13 Fair Value Measurement is the same as the depreciated replacement cost concept under AASB 136.

AASB 2015–6 Amendments to The Amendments extend the scope of 1 Jan 2016 The amending standard will result in Australian Accounting Standards – AASB 124 Related Party Disclosures to extended disclosures on the entity's Extending Related Party Disclosures not-for-profit public sector entities. A responsible persons and executive officer to Not-for-Profit Public Sector guidance has been included to assist the disclosures. management personnel Entities [AASB 10, AASB 124 & application of the Standard by not-for- (KMP), and the related party transactions. AASB 1049] profit public sector entities.

78 Financial report Notes to the financial statements For the year ended 30 June 2016 v) New accounting standards and interpretations (continued)

In addition to the new standards and amendments above, the AASB has issued a list of other amending standards that are not effective for the current reporting period (as listed below). In general, these applicable standards include editorial and references changes that are expected to have insignificant impacts on public sector reporting. AASB 2010–7 Amendments to Australian Accounting Standards arising from AASB 9 AASB 2014–5 Amendments to Australian Accounting Standards arising from AASB 15 AASB 2014–7 Amendments to Australian Accounting Standards arising from AASB 9 AASB 2016–3 Amendments to Australian Accounting standards – Clarification to AASB 15 AASB 2015–2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101 [AASB 7, AASB 101, AASB 134 & AASB 1049] AASB 2016–2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 107

Parks Victoria Annual Report 2015–16 79 Notes to the financial statements For the year ended 30 June 2016

2016 2015 $’000 $’000 3 Parks and reserves trust funding

Parks charges 87,537 84,323 Additional funding from parks and reserves trust 10,000 – Total parks and reserves trust funding 97,537 84,323

The parks and reserves trust funding is a charge levied on commercial and domestic properties throughout the Melbourne and metropolitan area. Parks Victoria receives approximately 68% (2015: 59%) of these trust funds annually. This funding is then invested into the management and control of parks and waterways within the metropolitan area for the purposes of conservation, recreation, leisure, tourism and navigation.

4 Government funding

National / state parks and reserves funding 52,780 40,781 Parks Victoria Base Review Funding 6,419 6,419 Government grants for special projects 13,945 6,565 Program Initiatives (including tracks and trails and Good Neighbour programs) 684 733 Project fire – fighter funding 8,512 7,453 Major works funding provided by the Department of Environment, Land, Water and Planning 6,580 3,494 (DELWP) Major works funding provided by the Department of Economic Development, Jobs, Transport 8,752 11,328 and Resources (DEDJTR) Total government funding 97,672 76,773

5 Interest

Interest from financial assets categorised as cash and deposits and other financial assets:

Interest on bank deposits and other financial assets 2,720 3,279 Total interest 2,720 3,279

6 Fair value of assets received free of charge Australian Grand Prix Corporation (AGPC) assets transferred from the Department of Economic Development, Jobs, Transport and Resources (DEDJTR) 1,730 262 Total fair value of assets received free of charge 1,730 262

7 Insurance claims

Insurance claims 2,057 2,269 Total insurance claims 2,057 2,269

80 Financial report Notes to the financial statements For the year ended 30 June 2016

2016 2015 $’000 $’000 8 Other income

Accommodation / camping fees 8,910 8,531 Funding sponsored by external parties 916 1,022 Rent, leases and licences 7,698 7,337 External sales 3,602 3,196 Berthing / mooring fees 481 447 Cave tour fees 1,180 1,087 Fire suppression costs, recovered from DELWP (note 9) 10,516 8,481 Other 4,496 6,277 Total other income 37,799 36,378

9 Employee benefits expenses

Salaries, wages, annual leave and long service leave 89,997 83,292 Termination benefits 567 144 Fire suppression costs (note 8) * 10,516 8,481 Superannuation – defined and accumulation plans** 8,577 7,770 Payroll Tax 4,766 4,344 Fringe Benefits Tax 500 420 Other on-costs 1,751 1,714 Total employee benefits 116,674 106,165

* Parks Victoria’s salaries & wages expenses relating to fire suppression program. ** Parks Victoria’s contributions, in respect of its employees (including salary sacrifice) refer note 28.

10 Depreciation and amortisation

Depreciation Land improvements 2,291 2,706 Buildings and building improvements 3,951 3,612 Piers, jetties and river improvements 5,430 4,989 Plant and equipment, machinery & vehicles 153 192 Antiques 26 – Total depreciation 11,851 11,499

Amortisation Intangibles 834 791 Total amortisation 834 791 Total depreciation and amortisation 12,685 12,290

11 Contracts and external services

Operational services and major works 42,841 43,132 Other external services 28,565 24,820 Total contracts and external services 71,406 67,952

Parks Victoria Annual Report 2015–16 81 Notes to the financial statements For the year ended 30 June 2016

2016 2015 $’000 $’000 12 Other operating expenses

Materials 5,342 4,689 Transport 5,620 6,042 Insurance premiums 10,588 11,334 Payments for works sponsored by external parties 412 695 Other 625 343 Total other operating expenses 22,587 23,103

13 Other economic flows included in net result a) Net gain/(loss) on non-financial assets Disposal of property, plant and equipment (460) (399) Total net gain/(loss) on non-financial assets (460) (399) b) Net gain/(loss) on financial instruments Provision for doubtful debts (107) (28) Interest income (loss) arising from advances from government – Greener government building program (109) 514 Total net gain/(loss) on financial instruments (216) 486 c) Other gains/(losses) from other economic flows Net gain/(loss) arising from revaluation of long service liability due to changes in the bond interest rates (1,639) (1,658) Total other gains/(losses) from other economic flows (1,639) (1,658) Total other economic flows included in net result (2,315) (1,571)

Other economic flows – other comprehensive income d) Items that will not be reclassified to net result Net gain/(loss) arising from revaluation of superannuation defined benefit plans (1,506) (280) Total other economic flows – other comprehensive income (1,506) (280)

14 Cash and deposits

Cash and deposits 16,230 25,956 Total cash and deposits – current 16,230 25,956 a) Risk exposure Park Victoria’s exposure to interest rate risk is discussed in note 34(f). The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of cash and deposits and other financial assets mentioned in note 34(d).

82 Financial report Notes to the financial statements For the year ended 30 June 2016

2016 2015 Non- Non- Current Current Total Current Current Total $’000 $’000 $’000 $’000 $’000 $’000 15 Receivables

Statutory Amount owing from Victorian Government* 11,679 – 11,679 3,632 – 3,632 GST input tax credit recoverable 2,398 – 2,398 1,119 – 1,119 Total receivables – statutory 14,077 – 14,077 4,751 – 4,751

Contractual Debtors 2,671 – 2,671 2,171 – 2,171 Provision for doubtful debts (530) – (530) (432) – (432) Other receivables 1,373 44 1,417 1,425 55 1,480 Total receivables – contractual 3,514 44 3,558 3,164 55 3,219 Total receivables 17,591 44 17,635 7,915 55 7,970

* The amounts recognised from the Victorian Government represent funding for all commitments incurred through the appropriations and are drawn from the Consolidated Fund as the commitments fall due. [Appropriations are amounts owed by the Victorian Government as legislated in the Appropriations Act. Due to the existence of a legislative instrument, the appropriation receivable to an entity is statutory in nature, and hence not in the scope of the financial instrument standards.] 2016 2015 $’000 $’000 a) Movement in the provision for doubtful debts Balance at the beginning of the year (432) (421) Increase in provision recognised in the net result (107) (28) Reversal of provision written off during the year as uncollectible 9 17 Balance at the end of the year (530) (432) b) Aging analysis of contractual receivables Refer to table under note 34(d) for the ageing analysis of receivables (except statutory receivables). c) Nature and extent of risk arising from contractual receivables Refer to note 34(d) for the nature and extent of risks arising from contractual receivables.

Parks Victoria Annual Report 2015–16 83 Notes to the financial statements For the year ended 30 June 2016

2016 2015 $’000 $’000 16 Other financial assets

Investments Australian dollars term deposit > 3 months 95,000 55,000 Total other financial assets – current 95,000 55,000 a) Risk exposure Park Victoria’s exposure to interest rate risk is discussed in note 34(f). The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of cash and deposits and other financial assets mentioned in note 34(d) .

17 Inventories

Stock on Hand (at lower of cost & net realisable value) 168 180 Total Inventories 168 180

84 Financial report Notes to the financial statements For the year ended 30 June 2016

2016 2015 $’000 $’000 18 Property, plant and equipment a) Classification by public safety and environment-carrying amounts Crown land, land and land improvements* At fair value 1,900,796 1,650,865 Accumulated depreciation (9) (9,399) Net book value – Crown land, land, and land improvements 1,900,787 1,641,466

Buildings and building improvements At fair value 96,837 84,079 Accumulated depreciation (5) (14,589) Net book value – Buildings and building improvements 96,832 69,490

Plant, equipment, machinery & vehicles At fair value 7,977 7,900 Accumulated depreciation (7,510) (7,357) Net book value – Plant, equipment, machinery & vehicles 467 543

Piers and jetties and river improvements At fair value 130,329 100,054 Accumulated depreciation (236) (17,128) Net book value – Piers, jetties and river improvements 130,093 82,926

Antiques and artworks At fair value 4,643 3,704 Closing balance – Antiques and artworks 4,643 3,704

Works in progress At cost 12,336 27,092 Closing balance – Works in progress 12,336 27,092

Net carrying amount of property, plant and equipment 2,145,158 1,825,221

* Depreciation relates to land improvements only.

Parks Victoria Annual Report 2015–16 85 Notes to the financial statements For the year ended 30 June 2016

18 Property, plant and equipment (continued) b) Classification by public safety and environment – carrying amounts

Buildings Crown land, land and building Plant, equipment, Piers, jetties and river & land improvements improvements machinery & vehicles improvements Antiques Works in progress Total 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Opening balance 1,641,466 1,643,746 69,490 73,015 543 734 82,926 86,664 3,704 1,278 27,092 15,064 1,825,221 1,820,501 Additions 493 191 1,645 96 77 1 – – – – 12,016 14,666 14,232 14,955 Disposals (7) (1) (155) (9) – – (245) (454) (52) – – – (460) (465) Net revaluation increments/ decrements 261,909 – 28,616 – – – 33,095 – 1,017 2,426 – – 324,638 2,426 Depreciation expense (2,291) (2,706) (3,951) (3,612) (153) (192) (5,430) (4,989) (26) – – – (11,851) (11,499) Asset transfer in / out of assets under construction 314 236 288 – – – 19,549 1,705 – – (20,442) (2,638) (291) (697) Other adjustments (1,097) – 899 – – – 198 – – – – – (1) – Machinery of government asset transfer out – – – – – – – – – – (6,330) – (6,330) – Closing balance 1,900,787 1,641,466 96,832 69,490 467 543 130,093 82,926 4,643 3,704 12,336 27,092 2,145,158 1,825,221

Crown land, land and land improvements An independent valuation of Parks Victoria’s land and land improvements was performed by the Valuer-General Victoria to determine the fair value of the land and land improvements. The valuation was determined by reference to the amounts for which assets could be exchanged between knowledgeable willing parties in an arm’s length transaction. Unrestricted fair value was determined by direct reference to recent market transactions on arm’s length terms for land in comparable proximity to the subject property and allowing for shape, size, location and other relevant factors specific to the land being valued. Allowance of the Community Service Obligation (CSO) was applied to determine the restricted fair value of the land in light of a multitude of factors surrounding these assets, including historical significance, cultural value and planning restrictions restrictions on public purpose zoned land. The effective date of the valuation is 30 June 2016. The next scheduled full revaluation for this purpose group will be conducted in June 2021.

Buildings and improvements, piers, jetties and river improvements An independent valuation of Parks Victoria’s buildings and improvements, piers, jetties and river improvements was performed by the Valuer-General Victoria to determine the fair value. The valuation was determined based on the depreciated replacement cost of the assets. The effective date of the valuation is 30 June 2016. The next scheduled full revaluation for this purpose group will be conducted in June 2021.

Plant, equipment, machinery & vehicles Plant and equipment are valued using the depreciated replacement cost method. Depreciation is calculated on a straight-line basis to systematically write-off the cost of each asset over its expected useful life to the entity.

Antiques An independent valuation of Parks Victoria’s antiques were performed by the Valuer-General Victoria to determine the fair value. The valuation was determined based on the market approach. The effective date of the valuation is 30 June 2016. The next scheduled full revaluation for this purpose group will be conducted in June 2021.

86 Financial report 18 Property, plant and equipment (continued) b) Classification by public safety and environment – carrying amounts

Buildings Crown land, land and building Plant, equipment, Piers, jetties and river & land improvements improvements machinery & vehicles improvements Antiques Works in progress Total 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Opening balance 1,641,466 1,643,746 69,490 73,015 543 734 82,926 86,664 3,704 1,278 27,092 15,064 1,825,221 1,820,501 Additions 493 191 1,645 96 77 1 – – – – 12,016 14,666 14,232 14,955 Disposals (7) (1) (155) (9) – – (245) (454) (52) – – – (460) (465) Net revaluation increments/ decrements 261,909 – 28,616 – – – 33,095 – 1,017 2,426 – – 324,638 2,426 Depreciation expense (2,291) (2,706) (3,951) (3,612) (153) (192) (5,430) (4,989) (26) – – – (11,851) (11,499) Asset transfer in / out of assets under construction 314 236 288 – – – 19,549 1,705 – – (20,442) (2,638) (291) (697) Other adjustments (1,097) – 899 – – – 198 – – – – – (1) – Machinery of government asset transfer out – – – – – – – – – – (6,330) – (6,330) – Closing balance 1,900,787 1,641,466 96,832 69,490 467 543 130,093 82,926 4,643 3,704 12,336 27,092 2,145,158 1,825,221

Crown land, land and land improvements An independent valuation of Parks Victoria’s land and land improvements was performed by the Valuer-General Victoria to determine the fair value of the land and land improvements. The valuation was determined by reference to the amounts for which assets could be exchanged between knowledgeable willing parties in an arm’s length transaction. Unrestricted fair value was determined by direct reference to recent market transactions on arm’s length terms for land in comparable proximity to the subject property and allowing for shape, size, location and other relevant factors specific to the land being valued. Allowance of the Community Service Obligation (CSO) was applied to determine the restricted fair value of the land in light of a multitude of factors surrounding these assets, including historical significance, cultural value and planning restrictions restrictions on public purpose zoned land. The effective date of the valuation is 30 June 2016. The next scheduled full revaluation for this purpose group will be conducted in June 2021.

Buildings and improvements, piers, jetties and river improvements An independent valuation of Parks Victoria’s buildings and improvements, piers, jetties and river improvements was performed by the Valuer-General Victoria to determine the fair value. The valuation was determined based on the depreciated replacement cost of the assets. The effective date of the valuation is 30 June 2016. The next scheduled full revaluation for this purpose group will be conducted in June 2021.

Plant, equipment, machinery & vehicles Plant and equipment are valued using the depreciated replacement cost method. Depreciation is calculated on a straight-line basis to systematically write-off the cost of each asset over its expected useful life to the entity.

Antiques An independent valuation of Parks Victoria’s antiques were performed by the Valuer-General Victoria to determine the fair value. The valuation was determined based on the market approach. The effective date of the valuation is 30 June 2016. The next scheduled full revaluation for this purpose group will be conducted in June 2021.

Parks Victoria Annual Report 2015–16 87 Notes to the financial statements For the year ended 30 June 2016

18 Property, plant and equipment (continued) c) Crown land, land and land improvements at fair value, where Parks Victoria is a Committee of Management

2016 2015

2016 Area 2016 2015 Area 2015 Crown land (Hectares) $’000 (Hectares) $’000 Location Albert Park 210 909,375 210 859,385 Bays assets 2,638 91,039 2,638 62,244 Buchan Caves Reserve 2 50 2 390 Coolart 88 2,625 88 9,480 Dandenong Police Paddocks 495 185,470 495 164,670 Dandenong Ranges Gardens 61 1,669 61 1,360 Dandenong Valley 7 3,700 7 3,420 Daylesford 1 1,007 1 1,056 Devilbend Reservoir 997 18,060 997 39,990 Eildon Water Reserve 533 1,600 533 1,280 Happy Valley 16 54 16 29 Herring Island 3 10,500 3 9,600 Hopkins River 51 140 51 261 Lighthouse Reserves 428 2,421 428 2,170 Lower Homebush Reserve 40 34 40 1 Maribyrnong Valley 22 7,380 22 6,090 Mt Dandenong Observatory Reserve 5 1,466 5 2,160 Olinda Golf Course 34 1,030 34 510 Peach Tree Creek 34 102 34 60 Plenty Gorge 212 14,810 212 9,484 Point Cook / Cheetham 4 1,110 4 720 Point Gellibrand Heritage Park 17 17,020 17 27,967 Port Campbell 1 115 1 73 Princes Wharf 1 460 1 10 Queenscliff (Not including Bays Assets) 148 4,180 148 1,800 Rosebud depot 1 892 1 600 Sailors Falls 1 2 1 1 San Remo 1 600 1 450 Sandringham Boat Harbour 10 6,720 10 5,180 Serendip Sanctuary 227 1,365 227 1,670 Vaughan Springs 95 465 95 180 Werribee Park 164 7,380 164 15,600 Westgate 34 33,400 34 28,467 Williamstown 146 33,780 146 13,151 Yarra Bend Park 268 361,650 268 210,600 Yarra Valley 125 112,400 125 111,010 You Yangs 1,967 6,111 1,967 5,880 Total crown land at fair value 9,087 1,840,182 9,087 1,596,999

88 Financial report Notes to the financial statements For the year ended 30 June 2016

18 Property, plant and equipment (continued) c) Crown land, land and land improvements at fair value, where Parks Victoria is a Committee of Management (continued)

2016 2015 Land and land improvements $’000 $’000 Total land and land improvements at fair value 60,606 44,468 Total Crown land, land and land improvements 1,900,787 1,641,466 d) Fair value measurement hierarchy for assets as at 30 June 2016

Fair value measurement Carrying at end of reporting period using: amount as at 30 Jun 2016 Level 1 Level 2 Level 3 $’000 $’000 $’000 $’000 Specialised land at fair value Crown land, land and land improvements 1,900,787 – – 1,900,787 Total of land at fair value 1,900,787 – – 1,900,787

Specialised building at fair value Buildings and building improvements 96,832 – – 96,832 Total of building at fair value 96,832 – – 96,832

Plant, equipment, machinery and vehicles at fair value Plant, equipment, machinery and vehicles 467 – – 467 Total of plant, equipment, machinery and vehicles at fair value 467 – – 467

Infrastructure at fair value Piers, jetties 121,682 – – 121,682 Total of infrastructure at fair value 121,682 – – 121,682

Infrastructure at fair value River improvements 8,411 – – 8,411 Total of infrastructure at fair value 8,411 – – 8,411

Antique assets at fair value Antiques and artworks 4,643 – 4,643 – Total of cultural assets at fair value 4,643 – 4,643 – Grand total 2,132,822 – 4,643 2,128,179

Parks Victoria Annual Report 2015–16 89 Notes to the financial statements For the year ended 30 June 2016

18 Property, plant and equipment (continued) d) Fair value measurement hierarchy for assets as at 30 June 2016 (continued)

Fair value measurement Carrying at end of reporting period using: amount as at 30 Jun 2015 Level 1 Level 2 Level 3 $’000 $’000 $’000 $’000 Specialised land at fair value Crown land, land and land improvements 1,641,466 – – 1,641,466 Total of land at fair value 1,641,466 – – 1,641,466

Specialised building at fair value Buildings and building improvements 69,490 – – 69,490 Total of building at fair value 69,490 – – 69,490

Plant, equipment, machinery and vehicles at fair value Plant, equipment, machinery and vehicles 543 – – 543 Total of plant, equipment, machinery and vehicles at fair value 543 – – 543

Infrastructure at fair value Piers, jetties 77,348 – – 77,348 Total of infrastructure at fair value 77,348 – – 77,348

Infrastructure at fair value River improvements 5,578 – – 5,578 Total of infrastructure at fair value 5,578 – – 5,578

Antique assets at fair value Antiques and artworks 3,704 – 3,704 – Total of cultural assets at fair value 3,704 – 3,704 – Grand total 1,798,129 – 3,704 1,794,425

Parks Victoria, according to the accounting policy, determines whether transfers have occurred between the levels in the hierarchy based on the lowest level of input that is significant to the fair value measurement at the end of the reporting period.

90 Financial report Notes to the financial statements For the year ended 30 June 2016

18 Property, plant and equipment (continued)

Total of specialised land and total of specialised buildings The independent valuation (fair value) of specialised land was determined by the Valuer-General Victoria (VGV). The valuation of the land was determined by analysing comparable sales and allowing for size, topography, location and other relevant factors. The valuation of the land was adjusted for Community Service Obligation (CSO) which accounts for any legal or constrictive restrictions imposed on the assets such as current zoning, covenants, use, public announcements or commitments made in relation to the intended use of the land. The CSO adjustment is a reflection of the valuer’s assessment of the impact of restrictions associated with an asset to the extent that is also equally applicable to market participants. As adjustments of CSO are considered as significant unobservable inputs, specialised land would be classified as Level 3 assets. The value of specialised buildings was determined by the VGV after deducting allowances for any physical deterioration and functional and economic obsolescence already occurred or expired (depreciated replacement cost). As depreciation adjustments are considered as significant, unobservable inputs in nature, specialised buildings are classified at Level 3 fair value measurements.

Plant, equipment, machinery and vehicles Plant, equipment, machinery and vehicles are valued using the depreciated replacement cost method. This cost represents the replacement cost of the plant, equipment, machinery and vehicles after applying depreciation rates on a useful life basis. Replacement costs relate to costs to replace the current service capacity of the asset. As depreciation adjustments are considered as significant, unobservable inputs in nature, these assets are classified at Level 3 fair value measurements. No revaluations were performed for the financial period ending 30 June 2016.

Infrastructure Infrastructure comprising of piers,jetties and river improvements. Infrastructures are valued using the depreciated replacement cost method. This cost generally represents the replacement cost of piers, jetties and river improvements after applying depreciation rates on a useful life basis. The value of infrastructure (piers, jetties, river improvements) was determined by the VGV after deducting allowances for any physical deterioration and functional and economic obsolescence already occurred or expired (depreciated replacement cost). As depreciation adjustments are considered as significant, unobservable inputs in nature, specialised buildings are classified at Level 3 fair value measurements.

Antique assets For artwork, valuation of the assets is determined by a comparison to similar examples of the artists work in existence throughout Australia and research on prices paid for similar examples offered at auction or through art galleries in recent years. For sculptures, valuation of the assets is determined by a comparison to similar examples of the sculptures work in existence throughout Australia and research on prices paid for similar examples offered at auction or through art galleries in recent years. Antique assets are classified at Level 2 fair value measurements as their values are based on significant inputs and market values that are directly or indirectly observable.

Parks Victoria Annual Report 2015–16 91 Notes to the financial statements For the year ended 30 June 2016

18 Property, plant and equipment (continued) e) Reconciliation of level 3 fair value

Plant, Antique – Equipment, Paintings, Machinery Piers, Jetties Furniture, Specialised Specialised and and River Silverware Total Level Land Buildings Vehicles Improvements & Ceramics 3 Assets 2016 Opening balance 1,641,466 69,490 543 82,926 – 1,794,425 Purchases (sales) 800 1,778 77 19,304 – 21,959 Transfers in (out) of Level 3 (1,097) 899 – 198 – –

Gains or losses recognised in net results Depreciation expense (2,291) (3,951) (153) (5,430) – (11,825) Impairment loss – – – – – – Subtotal 1,638,878 68,216 467 96,998 – 1,804,559

Gains or losses recognised in – – – – – – other economic flows – other comprehensive income Revaluation 261,909 28,616 – 33,095 – 323,621 Subtotal 261,909 28,616 – 33,095 – 323,621 Closing balance 1,900,787 96,832 467 130,093 – 2,128,179

2015 Opening balance 1,643,746 73,015 734 86,664 1,278 1,805,437 Purchases (sales) 426 87 1 1,251 – 1,765 Transfers in (out) of Level 3 – – – – (1,278) (1,278)

Gains or losses recognised in net results Depreciation expense (2,706) (3,612) (192) (4,989) – (11,499) Impairment loss – – – – – – Subtotal 1,641,466 69,490 543 82,926 – 1,794,425 Closing balance 1,641,466 69,490 543 82,926 – 1,794,425

92 Financial report Notes to the financial statements For the year ended 30 June 2016

18 Property, plant and equipment (continued) f) Description of significant unobservable inputs to Level 3 valuations as at 30 June 2016

Valuation technique Significant unobservable inputs

Specialised Land Market approach Community service Obligation (CSO) adjustment

Specialised Buildings Depreciated replacement cost (1) Cost per building and (2) Useful life of buildings

Plant, Equipment, Machinery and Vehicles Depreciated replacement cost (1) Cost per unit and (2) Useful life of plant and equipment, machinery and vehicles

Piers/Jetties Depreciated replacement cost (1) Cost per pier/jetty and (2) Useful life of piers, jetties

River Improvements Depreciated replacement cost (1) Cost per river improvement and (2) Useful life of river improvements g) Description of significant unobservable inputs to Level 3 valuations as at 30 June 2015

Valuation technique Significant unobservable inputs

Specialised Land Market approach Community service Obligation (CSO) adjustment

Specialised Buildings Depreciated replacement cost (1) Cost per unit and (2) Useful life of buildings

Plant, Equipment, Machinery and Vehicles Depreciated replacement cost (1) Cost per unit and (2) Useful life of plant and equipment, machinery and vehicles

Piers and Jetties Depreciated replacement cost (1) Cost per peir/jetty and (2) Useful life of piers, jetties

River Improvements Depreciated replacement cost (1) Cost per river improvement and (2) Useful life of river improvements

Parks Victoria Annual Report 2015–16 93 Notes to the financial statements For the year ended 30 June 2016

2016 2015 $’000 $’000 19 Intangible assets

Computer software Gross carrying amount Gross carrying amount opening balance 8,206 7,510 Additions – internal development 291 696 Closing balance 8,497 8,206

Accumulated amortisation and impairment Opening balance (4,228) (3,437) Amortisation expense (834) (791) Closing balance (5,062) (4,228) Net book value at the end of financial year 3,435 3,978

20 Other non-financial assets

Prepayments 1,120 780 Total other non-financial assets 1,120 780

94 Financial report Notes to the financial statements For the year ended 30 June 2016

2016 2015 Non- Non- Current Current Total Current Current Total $’000 $’000 $’000 $’000 $’000 $’000 21 Payables

Statutory FBT payable 126 – 126 132 – 132 Other taxes payables 350 – 350 365 – 365 Total payables – statutory 476 – 476 497 – 497

Contractual Unsecured creditors and accruals 22,475 – 22,475 14,723 – 14,723 Advances from (DEWLP – Greener Government Building Program) 360 1,752 2,112 360 2,004 2,364 Other payables 106 – 106 15 – 15 Total payables – contractual 22,941 1,752 24,693 15,098 2,004 17,102 Total payables 23,417 1,752 25,169 15,595 2,004 17,599

(a) Maturity analysis of contractual payables Refer to table under note 35(e) for the maturity analysis of contractual payables.

(b) Nature and extent of risk arising from contractual payables Refer to note 35(e) for the nature and extent of risks arising from contractual payables. 2016 2015 Non- Non- Current Current Total Current Current Total $’000 $’000 $’000 $’000 $’000 $’000 22 Provisions

Employee benefits Annual Leave expected to be taken within the next 12 months 5,135 – 5,135 4,874 – 4,874 Annual Leave expected to be taken after the next 12 months 1,482 – 1,482 1,676 – 1,676 Long service leave – unconditional and expected to be taken 2,152 – 2,152 2,053 – 2,053 within 12 months Long service leave – unconditional and expected to be taken 20,338 – 20,338 19,589 – 19,589 after 12 months Long service leave – conditional – 2,500 2,500 – 1,964 1,964 Total employee benefits 29,107 2,500 31,607 28,192 1,964 30,156

Employee benefit On-costs Annual Leave entitlements 1,168 – 1,168 1,156 – 1,156 Long service leave – unconditional and expected to be taken 396 – 396 378 – 378 within 12 months Long service leave – unconditional and expected to be taken 3,740 – 3,740 3,602 – 3,602 after 12 months Long service leave – conditional – 460 460 – 361 361 Total employee related On-costs 5,304 460 5,764 5,136 361 5,497 Total employee benefits and related on-costs 34,411 2,960 37,371 33,328 2,325 35,653

Parks Victoria Annual Report 2015–16 95 Notes to the financial statements For the year ended 30 June 2016

2016 2015 $’000 $’000 23 Physical asset revaluation surplus

Movements: Opening balance 1,135,679 1,133,292 Revaluation & disposal of Parks Victoria assets: Disposal of crown land and land improvements – (4) Disposal of buildings and building improvements – (13) Disposal of piers, jetties and river improvements – (22) Revaluation of crown land, land and land improvements 261,910 – Revaluation of buildings and building improvements 28,616 – Revaluation of piers, jetties, and river improvements 33,095 – Revaluation of antiques and artworks 1,017 2,426 Net revaluation increment/(decrement) on Parks Victoria assets 324,638 2,387 Total physical asset revaluation surplus 1,460,317 1,135,679

24 Contributed capital

Opening balance 637,989 636,902 Addition to net asset base from DELWP 17,782 2,335 Redemption of capital to DELWP – (1,248) Assets transferred to DELWP (6,330) – Net movement in contributed capital 11,452 1,087 Total contributed capital 649,441 637,989

96 Financial report Notes to the financial statements For the year ended 30 June 2016

2016 2015 $’000 $’000 25 Cash flow information a) Reconciliation of cash and deposits Cash and deposits 16,230 25,956 Investments and other financial assets 95,000 55,000 Balance cash deposit and investments 111,230 80,956 b) Non-cash financing and investing activities – – c) Reconciliation of net results for the period to net cash flows Net results for the period 13,848 (7,797) Non-cash movements: Actuarial gain (loss) recognised in a year (1,506) (280) Depreciation and amortisation 12,685 12,290 Provision for doubtful debts 107 28 Net assets (received) provided free of charge (1,730) (262) Net (gain) / loss on sale of non-current assets 460 399 Others 857 –

Change in operating assets and liabilities: Decrease / (increase) in trade debtors (3,873) 8,312 Decrease / (increase) in inventories 13 12 Decrease / (increase) in superannuation defined benefit & other assets 1,602 297 (Decrease) / increase in other provisions 1,718 2,092 (Decrease) / increase in trade creditors 7,821 (3,658) (Decrease) / increase in other operating liabilities – (1,600) Net cash inflow (outflow) from operating activities 32,002 9,833 d) Credit card and merchant facilities Total credit card facility 2,000 2,000 Total credit card facility used/(Liability) (273) (219) Total merchant facility (daily limit) 330 330

26 Contingent liabilities and contingent assets a) Contingent liabilities Parks Victoria is currently being investigated by Aboriginal Affairs Victoria into an incident. This may result in Parks Victoria being fined or prosecuted. Legal proceedings have not commenced yet, so the quantum of any damage cannot be quantified. A number of public liability compensation claims have been lodged with Parks Victoria. Parks Victoria has forwarded those claims to its insurer Victorian Managed Insurance Authority (VMIA) to be assessed . Six of those claims have been proceeded to formal litigation at present. Parks Victoria’s public liability exposure towards these compensation claims is limited to its normal insurance excess – $5,000 per claim or $30,000 if all six claims are prosecuted successfully. b) Contingent assets Parks Victoria has lodged insurance claims for compensation for the reinstatement and replacement of buildings and infrastructure which sustained damages due to fire, floods and storm activities with it insurer Victorian Managed Insurance Authority (VMIA). At 30 June 2016 , Parks Victoria has $65k (2015: $1.9m) in claims outstanding with VMIA that are currently being assessed.

Parks Victoria Annual Report 2015–16 97 Notes to the financial statements For the year ended 30 June 2016

2016 2015 $’000 $’000 27 Commitments a) Capital commitments Value of commitments for capital expenditure at 30 June 2016 for the supply of works, services and materials not provided for in the financial statements:

Not later than one year 1,653 994 Later than one year but not later than five years – – Later than five years – – Total capital commitments (inclusive of GST) 1,653 994 Less GST recoverable from Australian Taxation Office (150) (90) Total capital commitments (exclusive of GST) 1,503 904 b) Lease commitments Operating leases relate to buildings, motor vehicles, computers and property and plant equipment with lease terms of between three to ten years, with an option to extend for a further three years. Total expenditure contracted for at balance date but not provided for in the financial statements in relation to non-cancellable operating leases is as follows:

Not later than one year 10,409 10,364 Later than one year but not later than five years 15,441 19,826 Later than five years 96 784 Total non-cancellable operating leases (inclusive of GST) 25,946 30,974 Less GST recoverable from Australian Taxation Office (2,359) (2,816) Total non-cancellable operating leases (exclusive of GST) 23,587 28,158

28 Superannuation

Parks Victoria contributes, in respect of its employees (including salary sacrifice), to the superannuation schemes as follows:

Type of 2016 2015 Scheme scheme $’000 $’000 Defined benefit plans: Vision Super Defined 877 1,050 Other Defined 1,434 1,504

Accumulation plans: Vision Super Accumulation 2,882 3,088 Vic Super Accumulation 1,648 1,995 Other Accumulation 1,786 2,290 Total contributions to all funds 8,627 9,927

Employees engaged from 1 January 1994 are entitled to benefits under accumulation funds. Employees have the opportunity to make personal contributions to the funds at a self-nominated rate or amount. The minimum employer contribution to the fund, pursuant to the Superannuation Guarantee Charge was 9.50 per cent in 2016 (2015 9.50 per cent). As at the reporting date, there were no outstanding contributions payable to the above funds. However there is a separate provision made in regards to defined benefits plan (refer note 29(c)).

98 Financial report Notes to the financial statements For the year ended 30 June 2016

29 Defined superannuation benefit

Parks Victoria makes employer superannuation contributions in respect of employees engaged up until the 31st December 1993 to the Vision Super superannuation fund (the Fund). This Fund has two categories of membership, accumulation and defined benefit, which are funded differently. The defined benefit section provides lump sum benefits based on years of service and final average salary. Obligations for contributions to the Fund are recognised in the Comprehensive Operating Statement when they are made or due. Employees contribute at rates between 0 to 7.5 per cent of their superannuation salary. Parks Victoria contributes to the fund based on its commitments under the Employee Participation Agreement and Contribution Policy with the trustee of the fund.

2016 2015 $’000 $’000 a) Reconciliation of the present value of the defined benefit obligation Balance at the beginning of the year 34,183 32,084 Current service cost 959 898 Plan expenses 322 292 Interest cost 896 1,120 Contributions by plan participants 322 319 Actuarial (Gain)/Loss 1,869 1,915 Benefits paid (3,755) (2,445) Present value of the defined benefit obligation at the end of the year 34,796 34,183 b) Reconciliation of the fair value of plan assets Balance at the beginning of the year 34,318 32,882 Return on plan assets 1,243 2,756 Employer contributions 860 806 Contributions by plan participants 322 319 Benefits paid (3,755) (2,445) Fair value of plan assets at the end of the year 32,988 34,318 c) Reconciliation of the assets and liabilities recognised in the balance sheet Present value of the defined benefit obligation 34,796 34,183 Less: fair value of plan assets (32,988) (34,318) Net superannuation liability/(asset) 1,808 (135)

Parks Victoria Annual Report 2015–16 99 Notes to the financial statements For the year ended 30 June 2016

29 Defined superannuation benefit (continued) Accumulation

Parks Victoria also made employer contributions to the Fund’s accumulated contributions category at the Superannuation Guarantee Contribution rate of 9.50 per cent (2015 9.50 per cent) of members salaries. Parks Victoria’s commitment to defined contribution plans is limited to making contributions in accordance with Parks Victoria’s minimum statutory requirements.

Funding arrangements

Parks Victoria makes employer contributions to the defined benefit category of the Fund at rates determined by the Trustee on the advice of the Fund’s Actuary. Parks Victoria’s funding arrangements comprise of three components which are detailed as follows: 1 Regular contributions – which are ongoing contributions needed to fund the balance of benefits for current members and pensioners, 2 Funding calls – which are contributions in respect of Parks Victoria’s obligations for any funding shortfalls that arise; and 3 Retrenchment increments – which are additional contributions to cover the increase in liability arising from retrenchments. Parks Victoria is also required to make additional contributions to cover the contribution tax payable on the contributions referred to above. Employees are also required to make member contributions to the Fund. As such assets accumulate in the Fund to meet member benefits as defined in the Trust Deed, as they accrue.

Employer contributions

Regular contributions On the basis of the results of the most recent actuarial investigation conducted by the Fund’s Actuary on 30 June 2016 , Parks Victoria makes employer contributions to the Fund’s Defined Benefit category at rates determined by the Fund’s Trustee. For the year ended 30 June 2016, this rate was 12.0 per cent of member’s salaries. In addition, Parks Victoria reimburses the Fund to cover the excess of the benefits paid as a consequence of retrenchment above the funded resignation or retirement benefit. (The funded resignation benefit is calculated as the Vested Benefit Index (VBI) multiplied by the benefit).

Funding calls The Fund is required to comply with the superannuation prudential standards. Under the superannuation prudential standard SPS 160, the Fund is required to target full funding of its vested benefits. There may be circumstances where: • a fund is in an unsatisfactory financial position at an actuarial investigation (i.e. its (VBI) is less than 100 per cent at the date of the actuarial investigation); or • a fund’s VBI is below its shortfall limit at any time other than at the date of the actuarial investigations. If either of the above occur, the fund has a shortfall for the purposes of SPS 160 and the fund is required to put a plan in place so that the shortfall is fully funded within three years of the shortfall occurring. There may be circumstances where the Australian Prudential Regulation Authority (APRA) may approve a period longer than three years. The Fund monitors its VBI on a quarterly basis and the Fund has set its shortfall limit at 97 per cent. In the event that the Fund Actuary determines that there is a shortfall based on the above requirement, Parks Victoria is required to make an employer contribution to cover the shortfall.

Shortfall amounts Parks Victoria has recognised a liability in the Balance Sheet in respect of its defined superannuation benefit arrangements at 30 June 2016. Where a surplus exists in the plan, Parks Victoria may be able to take advantage of it in the form of a reduction in the required contribution rate, depending on the advice of the plan’s actuary. If a deficit exists in the plan, Parks Victoria may be required to increase the required contribution rate, depending on the advice of the plan’s actuary consistent with the plan’s deed.

100 Financial report Notes to the financial statements For the year ended 30 June 2016

29 Defined superannuation benefit (continued)

2016 2015 $’000 $’000 d) Expense recognised in the comprehensive operating statement Service cost 1,280 1,217 Member contribution (322) (319) Net interest cost 17 – Plan expense 322 292 Total superannuation expense/(income) 1,297 1,190 e) Expense recognised in the other comprehensive income Actuarial (gain)/loss recognised in year 1,506 280 Total superannuation expense/(income) (Note 13d) 1,506 280 f) Fair value of plan assets The fair value of plan assets includes no amounts relating to: a) any of Parks Victoria’s own financial instruments; b) any property occupied by, or other assets used by, Parks Victoria. g) Expected rate of return on plan assets The expected return on plan assets assumption is determined by weighting the expected long-term return for each asset class by the target allocation of assets to each asset class and allowing for the correlations of the investment returns between asset classes. The returns used for each asset class are net of investment tax and investment fees. An allowance for administration expenses has also been deducted from the expected return. h) Principal actuarial assumptions at the balance sheet date Discount rate (gross of tax) 1.82% pa 2.66% pa Expected return on assets 6.50% pa 6.50% pa Average salary increase rate 3.00% pa 3.00% pa i) Sensitivity – Impact on Defined Benefit Obligation as at balance sheet date The following table shows the sensitivity of each significant actuarial assumption on the Defined Benefit Obligation as at 30 June 2016. It illustrates how the Defined Benefit Obligation would have been affected by changes in the assumptions that were reasonably possible at that date, by holding all other assumptions and data constant, but do not represent the best cases that could occur. Impact on Defined Benefit Obligation as at 30 June 2016 of: a) Increase in the Discount Rate of 1% p.a. (2,328) b) Decrease in the Discount Rate of 1% p.a. 2,649 c) Increase in the Salary Increase Rate of 1% p.a. 2,246 d) Decrease in the Salary increase Rate of 1% p.a. (2,079)

Parks Victoria Annual Report 2015–16 101 Notes to the financial statements For the year ended 30 June 2016

30 Volunteer resources provided free of charge

In 2016 volunteers across Parks Victoria’s managed estate contributed 220,947 hours of voluntary labour, which equates to just over 29,071 days with an estimated value of $7.7m (2015: 28,072 days, $7.4m)*. Volunteers include Friends Groups, Campground Hosts, individuals, school groups, corporate, other external organisations and special interest groups including Four Wheel Drive Victoria, Conservation Volunteers Australia & Bushwalking Victoria. Each year these groups and individuals provide invaluable support to Parks Victoria by dedicating their time to improve park conservation values and deliver visitor services across parks and reserves. The volunteers also play a role in increasing the interest and advocacy of parks in the community.

* Value is based on the hourly rate provided by the peak body for volunteering – Volunteering Australia.

2016 2015 $’000 $’000 31 Auditor's remuneration

Amounts paid/payable to: Victorian Auditor-General's Office for the audit of the financial statements 75 71

32 Responsible persons and executive officer disclosures a) Responsible persons The names of persons who were board members at any time during the financial year ended 30 June 2016 are as follows: Andrew Fairley 1 July 2015 to 30 June 2016 Deborah Cheetham 1 July 2015 to 25 July 2015 Andrew Grant 1 July 2015 to 30 June 2016 Dennis Cavagna 1 July 2015 to 25 October 2015 Andrew Vizard 1 July 2015 to 25 October 2015 Natalie O'Brien 1 July 2015 to 30 June 2016 Catherine Vinot 10 November 2015 to 30 June 2016 Robert Wallis 1 July 2015 to 30 June 2016 Christine Trotman 10 November 2015 to 30 June 2016 Rosemary Hehir 10 November 2015 to 30 June 2016 Darrell Wade 10 November 2015 to 30 June 2016 Ross Passalaqua 1 July 2015 to 30 June 2016

The name of the responsible Minister from 1 July 2015 to 22 May 2016 was Lisa Neville MP, Minister for Environment, Climate Change and Water. The name of the responsible Minister from 23 May 2016 to 30 June 2016 was Lily D’ Ambrosio Minister for Energy, Environment and Climate Change. Amounts relating to ministers are reported in the financial statements of the Department of Premier and Cabinet. For information regarding related party transactions of ministers, the register of members’ interests is publicly available from: www.parliament.vic.gov.au/publications/register of interests. The name of the accountable officer from 1 July 2015 to 15 November 2015 was C Rose. The name of the accountable officer from 16 November 2015 to 30 June 2016 was B Fauteux. b) Accountable Officer remuneration Remuneration received or receivable by the Accountable Officer in connection with the management of Parks Victoria during the reporting period was in the range: $280,000 to $289,999 (2015–16) $450,000 to $459,999 (2014–15) 2016 2015 $’000 $’000 c) Board members remuneration Total remuneration received or due and receivable by Board Members from the reporting entity was 189 204

2016 2015 Number Number The number of Board Members of the reporting entity included in this figure is as below: Income of: $0 to $9,999 3 – $10,000 to $19,999 4 1 $20,000 to $29,999 4 7 $30,000 to $39,999 1 1

102 Financial report Notes to the financial statements For the year ended 30 June 2016

32 Responsible persons and executive officer disclosures (continued) d) Executive officers remuneration The number of executive officers, other than Ministers and Accountable Officers, and their total remuneration during the reporting period are shown in the first two columns in the table below in their relevant income bands. The base remuneration of executive officers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, long-service leave payments, redundancy payments and retirement benefits. The total annualised employee equivalent provides a measure of full time equivalent executive officers over the reporting period. A number of employment contracts were completed during the year and renegotiated and a number of executives received bonus payments during the year. These bonus payments depend on the terms of individual employment contracts. Some contracts provide for an annual bonus payment whereas other contracts only include the payment of bonuses on the successful completion of the full term of the contract.

Total Remuneration Base Remuneration

2016 Number* 2015 Number 2016 Number* 2015 Number

$0 to $99,999 6 1 8 3 $100,000 to $119,999 1 2 – – $120,000 to $129,999 1 – 1 – $130,000 to $139,999 – – – 1 $140,000 to $149,999 – 1 1 – $150,000 to $159,999 – – 1 1 $160,000 to $169,999 1 – 2 4 $170,000 to $179,999 1 1 1 3 $180,000 to $189,999 2 5 7 4 $190,000 to $199,999 5 3 1 – $200,000 to $209,999 3 1 2 2 $210,000 to $219,999 2 3 – – $220,000 to $229,999 – 1 – – $280,000 to $289,999 – – – – $290,000 to $299,999 1 – – – $300,000 to $329,999 1 – 1 – $360,000 to $389,999 – – – – $390,000 to $399,999 1 – – – Total number of executives 25 18 25 18 Total annualised employee equivalent (AEE) (a) 17 17 17 17 Total amount ($ '000) 4,122 3,201 3,842 2,879

Note: (a) Annualised employee equivalent is based on working 38 ordinary hours per week over the reporting period. (b) Total Remuneration includes performance pay, payments made on termination such as long service leave, annual leave & redundancy. (c) Base Remuneration is exclusive of bonus payments, long service leave payments, redundancy payments and retirement benefits. * This table includes those officers who’s annual remuneration exceed $100,000. Current year executive numbers include six executive officers who departed during the period and had their entitlements paid out in accordance with their contracts. Base remuneration of executive officers whose contracts completed was under $100,000.

Parks Victoria Annual Report 2015–16 103 Notes to the financial statements For the year ended 30 June 2016

32 Responsible persons and executive officer disclosures (continued) 2016 2015 $’000 $’000 e) Other transactions of board members and board member-related entities Other transactions of board members and board member-related entities conducted at arm’s length. East Gippsland Water 21 – People and Parks Foundation – 371 Vic Roads – 16 Tourism Australia 8 12 Tourism Victoria – 34 Wannon Water 299 135 Federation University Australia – 15 South East Water Limited 276 – Melbourne Food and Wine 1 1 Festival City of Melbourne 556 – Total 1,161 584 f) Payments to other personnel During the year, Parks Victoria had no other personnel by way of contractors, charged with significant management responsibilities.

33 Interest in other entities

The People and Parks Foundation Limited was established in 2004 as a company limited by guarantee under the Corporations Act 2001. The People and Parks Foundation Limited is a registered charity with the Australian Charities and Not for Profits Commission and lists its purpose as advancing health, advancing natural environment and purposes beneficial to the general public and other analogous to the other charitable purposes. Parks Victoria provides in kind support and is the main fund provider to People and Parks Foundation Limited. There are six board members of People and Parks Foundation Limited, two of whom are also board members of Parks Victoria. Therefore Parks Victoria is deemed to have a significant influence. Parks Victoria’s share of the profits and losses in People and Parks Foundation Limited is Nil and its commitments are as below. Parks Victoria are not aware of any contingent assets or liabilities relating to the People and Parks Foundation Limited.

2016 2015 $’000 $’000 Not later than one year 220 – Later than one year but not later than five years – 220 Later than five years – – Total commitments (inclusive of GST) 220 220 Less GST recoverable from Australian Taxation Office (20) (20) Total commitments (exclusive of GST) 200 200

104 Financial report Notes to the financial statements For the year ended 30 June 2016

34 Financial instruments a) Financial risk management objectives Parks Victoria’s activities expose it primarily to the financial risks of changes in interest rates. Parks Victoria does not enter into derivative financial instruments to manage its exposure to interest rate risk. Parks Victoria does not enter into or trade financial instruments, including derivative financial instruments for speculative purposes as per the Victorian Governments Borrowing and Investment Powers Act 1987 and subsequent amendments. The policies for managing this risk is discussed in more detail below. b) Significant accounting policies Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 2 to the financial statements. The carrying amounts of Park Victoria’s financial assets and financial liabilities by category are in Table 34.1 below.

Table 34.1: Categorisation of financial instruments 2016 2015 Note Category $’000 $’000 Financial assets Cash and cash deposits 14 Loans and receivables (at amortised cost) 16,230 25,956 Receivables 15 Loans and receivables (at amortised cost) 3,558 3,219 Other financial assets 16 Investments (at fair value) 95,000 55,000

Financial liabilities Payables 21 At amortised cost 24,693 17,101

Note: (a) The amount of receivables disclosed here exclude statutory receivables (i.e. amounts owing from Victorian Government and GST input tax credit recoverable). For 2016 this was $14.1m ( 2015: $4.8m). c) Significant terms and conditions There are no other significant terms and conditions applicable to Parks Victoria, in respect of each class of financial asset, financial liability and equity instrument, except those required by FRD 114A Financial Instruments.

Parks Victoria Annual Report 2015–16 105 Notes to the financial statements For the year ended 30 June 2016

34 Financial instruments (continued) d) Credit risk Credit risk arises from the financial assets of Parks Victoria, which comprise cash and cash equivalents, trade and other receivables, and available-for-sale financial assets. Parks Victoria’s exposure to credit risk arises from the potential default of counter party on their contractual obligations resulting in financial loss to the agency. Credit risk is measured at fair value and is monitored on a regular basis. Credit risk associated with the agency’s financial assets is minimal because the main debtor is the Victorian Government. For debtors other than government, it is Parks Victoria’s policy to only deal with entities with high credit ratings and to obtain sufficient collateral or credit enhancements where appropriate. In addition, the agency does not engage in hedging for its financial assets and mainly obtains financial assets that are on fixed interest. The agency’s policy is to only deal with banks with high credit ratings. Provision for doubtful debts is recognised when there is objective evidence that Parks Victoria will not be able to collect a receivable. Objective evidence includes financial difficulties of the debtors default payments, debts which are more than 90 days overdue and changes in debtor’s credit ratings. Except as otherwise detailed in the following table, the carrying amount of contractual financial assets recorded in the financial statements, net of any allowances for losses, represents Parks Victoria’s maximum exposure to credit risk without taking account of the value of any collateral obtained.

Table 34.2: Credit quality of contractual financial assets that are neither past or due nor impaired

Financial Government Government institutions agencies agencies Double-A Triple-A Triple-B credit rating credit rating credit rating Other Total $’000 $’000 $’000 $’000 $’000 2016 Cash and deposits 16,230 – – – 16,230 Receivables (i) – – – 1,020 1,020 Investments and other financial assets – 95,000 – – 95,000 Total contractual financial assets 16,230 95,000 – 1,020 112,250

2015 Cash and deposits 5,834 20,122 – – 25,956 Receivables (i) – – – 979 979 Investments and other financial assets – 55,000 – – 55,000 Total contractual financial assets 5,834 75,122 – 979 81,935

Note: (i) The total amounts disclosed here exclude statutory amounts (e.g. amounts owing from Victorian Government and GST input tax credit recoverable).

106 Financial report Notes to the financial statements For the year ended 30 June 2016

34 Financial instruments (continued)

Financial assets that are neither past due nor impaired Currently Parks Victoria does not hold any collateral as security nor credit enhancements relating to any of its financial assets. As at the reporting date, there is $530k of receivables (2015 $432k) that have been assessed as impaired. There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and they are stated at the carrying amounts as indicated. The following table discloses the ageing only of financial assets that are past due but not impaired.

Table 34.3: Ageing analysis of financial assets(a)

Past due but not impaired

Not past Carrying due and not Less than 3 months– amount impaired 1 Month 1–3 months 1 year 1–5 years $’000 $’000 $’000 $’000 $’000 $’000 2016 Receivables (note a) 3,558 1,020 2,407 20 8 103 Total 3,558 1,020 2,407 20 8 103

2015 Receivables (note a) 3,219 979 1,962 64 149 65 Total 3,219 979 1,962 64 149 65

Note: (a) Ageing analysis of financial assets excludes statutory receivables (e.g. amounts owing from Victorian Government and GST input tax credit recoverable).

Parks Victoria Annual Report 2015–16 107 Notes to the financial statements For the year ended 30 June 2016

34 Financial instruments (continued) e) Liquidity risk Liquidity risk arises when Parks Victoria is unable to meet its financial obligations as they fall due. Parks Victoria operates under the Government fair payments policy of settling financial obligations within 30 days and in the event of a dispute, making payments within 30 days from the date of resolution. It also continuously manages risks through monitoring future cash flows and maturities planning to ensure adequate holding of high quality liquid assets and dealing in highly liquid markets. Parks Victoria’s exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of risk. Cash for unexpected events is generally sourced from liquidation of available-for-sale financial investments. The following table discloses the contractual maturity analysis for the Parks Victoria’s financial liabilities.

Table 34.4: Interest rate exposure and maturity analysis of financial liabilities

Maturity dates

Carrying Non Interest Less than 3 months– amount Bearing 1 month 1–3 months 1 year 1–5 years $’000 $’000 $’000 $’000 $’000 $’000 2016 Amounts payable 4,083 4,083 1,971 – 360 1,752 to other government agencies Other payables 20,610 20,610 20,610 – – – Total 24,693 24,693 22,581 – 360 1,752

2015 Amounts payable 4,790 4,790 2,427 – 360 2,004 to other government agencies Other payables 12,311 12,311 12,311 – – – Total 17,101 17,101 14,738 – 360 2,004

108 Financial report Notes to the financial statements For the year ended 30 June 2016

34 Financial instruments (continued) f) Market risk Parks Victoria’s exposures to market risk are primarily through interest rate risk with only insignificant exposure to foreign currency risk. A sensitivity analysis has been prepared for interest rate risk, as it is deemed as a significant market risk on the return to Parks Victoria. Objectives, policies and processes used to manage each of these risks are disclosed in the paragraphs below.

Interest rate risk The fair value interest rate risk is the risk that the fair value of a financial instrument will fluctuate because of changes in market interest rates. The carrying amount of financial assets that are exposed and its sensitivity to interest rates is set out in table 34.5.

Table 34.5: Interest rate market risk exposure

Interest rate risk

Net Result Net Result $’000 $’000 Financial assets: 2016 -50 basis points +50 basis points Other financial assets – based on actual 2015–16 closing balance Carrying amount $111.2m @ 30 June 2016 (556) 556

Financial assets: 2015 -50 basis points +50 basis points Other financial assets – based on actual 2014–15 closing balance Carrying amount $80.9m @ 30 June 2015 (405) 405

The interest rate risk analysis has been applied on the total of $111.2m, on the estimate that the minimum interest rate decrease will be 0.50 % and the maximum increase will be 0.50 % . Exposure to interest rate risk is reduced as funds are held in fixed interest term deposits. The weighted average cash interest rate earned for 2016 was 1.85% (2015 2.71%).

Foreign currency risk Parks Victoria is exposed to insignificant foreign currency risk through its payables relating to purchases of supplies and consumables from overseas. This is because of a limited amount of purchases denominated in foreign currencies and a short time frame between commitment and settlement.

Parks Victoria Annual Report 2015–16 109 Notes to the financial statements For the year ended 30 June 2016

34 Financial instruments (continued) g) Fair value The fair values and net fair values of financial assets and financial liabilities are determined as follows: • Level 1 – the fair value of financial assets and financial liabilities with standard terms and conditions and traded in active liquid markets are determined with reference to quoted market prices; and • Level 2 – the fair value is determined using inputs other than quoted prices that are observable for the financial asset or liability, either directly or indirectly; and • Level 3 – the fair value is determined in accordance with generally accepted pricing models based on discounted cash flow analysis using unobservable market inputs. Parks Victoria considers that the carrying amount of financial instruments assets and liabilities recorded in the financial statements to be a fair approximation of their fair values, because of the short-term nature of the financial instruments and the expectation that they will be paid or received in full. These assets and liabilities are valued at level 2.

Table 34.6: Comparison between carrying amount and fair value The carrying values and fair values of financial assets and liabilities at balance date are:

Total carrying amount Aggregate fair value as per balance sheet 2016 2015 2016 2015 $’000 $’000 $’000 $’000 Cash and cash equivalent 111,230 80,956 111,230 80,956 Receivables 3,558 3,219 3,558 3,219 Total financial assets 114,788 84,175 114,788 84,175 Payables (24,693) (17,101) (24,693) (17,101) Total financial liabilities (24,693) (17,101) (24,693) (17,101)

110 Financial report Notes to the financial statements For the year ended 30 June 2016

2016 2015 $’000 $’000 35 Committed funds

Total funds (refer note 14 & 16 ) 111,230 80,956

Committed cash and Investments Government asset and initiative funding 38,569 27,578 Point Nepean park establishment 4,853 5,421 Fire and flood programs (incl. insurance) 6,918 6,051 Sponsored works 10,236 5,803 Prepaid revenue – roofed accommodation and camping 1,787 1,528 Other liabilities 984 773 Total committed cash 63,347 47,154

These commitments are for complex projects that span greater than one financial year. Parks Victoria receives significant funding in advance from many sources and manages its cash to ensure its capacity to meet immediate financial commitments as they arise. The total committed cash balance forms part of contributed capital and accumulated surplus/ (deficit).

36 Ex-gratia payments

Forgiveness or waiver of debt (i) 9 17 Payment made to employees upon termination 200 12 Total Ex-gratia expenses 209 29 i) Refer to note 15(a). It represents the reversal of a provision for doubtful debts written off during the year as uncollectible.

37 Post balance date events

Parks Victoria is unaware of any events subsequent to the reporting date that will have a material impact on its financial position or future financial performance.

Parks Victoria Annual Report 2015–16 111 Statutory Certificate

112 Financial report Auditor’s Report

Parks Victoria Annual Report 2015–16 113 Auditor’s Report

To be supplied

114 Financial report

Parks Victoria Level 10, 535 Bourke Street, Melbourne, Victoria, Australia www.parks.vic.gov.au or call 13 1963