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ALPINE RESORTS CO-ORDINATING COUNCIL ANNUAL REPORT 2015–2016 Authorised and published by the Alpine Resorts Co-ordinating Council 8 Nicholson Street East Melbourne, Victoria 3002 Copyright © The State of Victoria, Alpine Resorts Co-ordinating Council 2016. This works is licensed under a Creative Commons Attribution 4.0 Australia. You are free to re-use the work under that licence, on the condition that you credit the State of Victoria as author. The licence does not apply to any images, photographs or branding, including the Victorian Government logo and the Alpine Resorts Co-ordianting Council logo. To view a copy of this licence, visit http://creativecommons.org/licenses/by/3.0/au/deed.en ISSN 1838-3866 (print) ISSN 2205-099X (online) A PDF copy of this document is available at www.arcc.vic.gov.au For further information on this publication contact the Alpine Resorts Co-ordinating Council, phone (03) 9637 9642. Acknowledgements: Photo Credit: Falls Creek Alpine Resort Management Board Disclaimer: This publication may be of assistance to you but the State of Victoria and the Alpine Resorts Co-ordinating Council and their employees do not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or other consequence which may arise from you relying on any information in this publication. ABN 87 537 598 625 Level 2, 8 Nicholson Street East Melbourne VIC 3002 1710 OctoberOctober 20162014 PO Box 500 East Melbourne VIC 8002 T: 03 9637 9642 F: 03 9637 8024 The Hon. LilyRyan D’Ambrosio Smith MP MP [email protected] www.arcc.vic.gov.au MinisterMinister for Energy,Environment Environment and Climat ande ClimateChange Change PO BoxBox 500 EASTEAST MELBOURNE VIC 80028002 Dear Minister,Minister ALPINEAlpine Resorts RESORTS Co-ordinating CO-ORDINATING Council COUNCIL 2013–14 2015–16 Annual ReportANNUAL REPORT In accordanceaccordance with the Financial Management ActAct 1994,, II amam pleasedpleased to presentpresent the Annual Report of the Alpine Resorts Co-ordinatingCo-ordinating CouncilCouncil for the yearyear ending 30 June 2016.2014. The attached 2015-162013–14 AnnualAnnual ReportReport highlightshighlights thethe keykey activitiesactivities andand programsprograms undertakenundertaken byby CouncilCouncil duringduring the past yearyear and outlines the progressprogress made on the tasks and projectsprojects outlined in our currentcurrent CorporateCorporate Plan. I trust thatthat youyou findfind thethe enclosedenclosed rreporteport informatiinformativeve andand useful.useful. Yours sincerely Yours sincerely Michael Marasco BillChairperson Jaboor ChairpersonEncl. REFERENCE: NP/24/3041 ALPINE RESORTS CO-ORDINATING COUNCIL Contents Chairperson’s Report 3 Summary of Achievements in 2015–16 4 Key Activities and Programs 4 Performance Indicators 10 Financial Summary of Operational Results and Financial Position 13 The Council 14 Organisational Structure and Corporate Governance Arrangements 16 Other Information 24 Risk Management Compliance Attestation 30 Gifts, Benefits and Hospitality Framework Attestation 31 Financial Statements 32 Declaration by Council Chairperson, Accountable Officer and Chief Finance and Accounting Officer 33 Auditor-General’s Report 34 Comprehensive Operating Statement 36 Balance Sheet 37 Statement of Changes in Equity 38 Cash Flow Statement 39 Notes to the Financial Statements 40 Disclosure Index 69 In accordance with the relevant provisions of the Financial Management Act 1994, this report covers the period 1 July 2015 to 30 June 2016. 2 ANNUAL REPORT 2015-2016 Chairperson’s Report Throughout the 2015/16 financial year, the Council Against this back drop of change, the Council continued to co-ordinate the implementation and has continued its leading work in providing delivery of key actions within the Victorian Alpine research to assist industry’s forward planning with Resorts Strategic Plan 2012 (2012 Plan). commissioning the University of Tasmania’s report The 58 actions within the 2012 Plan have been on the potential impacts of climate change at resort allocated to a range of industry, agency, Alpine level and a new industry economic significance Resort Management Boards (ARMB) and department study, facilitating the finalisation of the draft master partners and it is pleasing to note that the majority plans for Falls Creek and Mt Hotham ARMBs, the of these are either complete or are on track for re-branding and relaunch of the co-operative ‘Snow completion within the timeframes of the 2012 Plan. Victoria’ winter marketing campaign and achieving the Council’s various Business Plan outputs. One of the Actions (Nos 21), relating to progressing climate adaptation planning, has and will form the The ongoing enhancement of relationships focus of the Council’s work over the remainder of the facilitated by the Council with a range of industry life of the 2012 Plan. To this end, Council is working and government partners continues to foster co- with the department to ensure alignment of alpine operation, allowing the Council to fulfil its key role adaptation planning is within the parameters of the in assisting the industry’s continued development. new Victorian Climate Change Framework. I would like to take the opportunity to thank the ARMBs and staff in assisting the Council to deliver In this regard, the ARMBs have continued to show on its mission statement and I would also like to initiative in developing approaches to climate acknowledge the positive contribution of Council adaptation, especially through the expansion of members and the ARCC staff in ensuring the resort focussed ‘green season’ activity. This is successful operation of the Council. reflected in an increasing trend of 3.0% growth per annum in green season visitor numbers to the resorts over the summer period. Towards the end of 2015 the government announced the proposed amalgamation of the Mt Baw Baw ARMB and the Lake Mountain ARMB. At the same time, new board member appointments were made Bill Jaboor to all ARMBs and the Council, resulting in a change Chairperson of member composition for the Council part way through the financial year. In addition, a cabinet reshuffle early in 2016 resulted in a change of portfolio minister from the Hon Lisa Neville to the Hon Lily D’Ambrosio. The subsequent ‘machinery of government’ changes also saw an expanded role for the department in taking on the new energy portfolio. 3 ALPINE RESORTS CO-ORDINATING COUNCIL Summary of Achievements in 2015–16 Key Activities and Programs The Council also called tenders for the delivery of The Council continues to provide a mechanism for the Snow Victoria campaign, following the expiry of working through and promoting a collaborative previous arrangements, with contracts awarded at approach to resolve industry issues and act as vehicle Council’s December 2015 meeting. The continued for consultation with the Minister. engagement of a range of key industry stakeholders providing advice and direction for the co-operative Council has worked closely with a range of marketing campaign, through the Industry Steering stakeholders including its five Victorian Alpine Resort Committee, has resulted in a significant re- Management Boards (ARMBs), the Department of positioning and re-branding for the campaign. Environment, Land, Water and Planning (DELWP), the Minister’s Office, Tourism Victoria (TV), Regional Through the Victorian Alpine Resorts Development Development Victoria (RDV), the Alpine Resorts Program (VARDP), two capital projects were Industry Advisory Group (ARIAG) and key alpine submitted via DELWP for funding consideration as industry organisations and bodies. part of the state budget bid process. These included Falls Creek ARMB’s Altitude Training Facility and The focus for Council’s work has been provided by Mount Buller/Mount Stirling ARMB’s Water Storage its Corporate Plan 2015-16. The Corporate Plan 2015- Project. Both were unsuccessful in attracting state 16 includes the thirteen actions listed in the Alpine government funding for the 2016-2017 financial year Resorts Strategic Plan 2012 (2012 Plan) for which the Council is the lead agency. All but 3 of these Council continued to monitor the finalisation of the actions have been completed. Action 21; ‘Develop Falls Creek ARMB Master Plan and Mount Hotham and implement industry and resort specific climate ARMB Master Plan to ensure compliance with the adaptation plans’ is on track for initial scoping, 2012 Plan and to facilitate feedback provided by however it will survive the expiry of the 2012 Plan DELWP. itself. Actions 53 and 56; ‘Industry performance to Discussion continues with DELWP’s Climate Change be assessed against KPIs’ and ‘Monitor and report on Division on developing a cooperative approach to implementation of the Alpine Resorts Strategic plan implementing Council’s requirements to undertake 2012’, will both be completed at the expiry of the Action 21 of the 2012 Plan; ‘Develop and Implement 2012 Plan. Industry and Resort Specific Climate Adaptation The Council commissioned two pieces of research Plans. to assist forward planning for the industry. A report Over the course of the financial year the state on the ‘Long Term Viability of Victorian Alpine government announced the proposed amalgamation Resorts Medical Services’ was completed in June of the Lake Mountain ARMB and Mount Baw Baw 2016 and ‘The Potential Impacts of Climate Change ARMB. It also appointed new members to resorts on