ANNUAL REPORT 2015 – 2016

CONTENTS

CEO’s Report 1 DECLARATION AND ATTESTATION 3 Our Organisation 4 Organisational Structure 6 Sports Venues 7 Commercial and membership 11 Objectives and Performance against Objectives 13 Corporate Services 14 5 Year Performance 14 Human Resources 16 Safety, Risk Management and Compliance 18 Information Technology 19 Legislative & Government Policy Compliance 20 Financial Overview and Disclosure 22 Disclosure Index 23 Protected Disclosures 25

CEO’s Report

The State Sport Centres Trust (SSCT) manages in excess of 1. participation to Support Financial Sustainability $345 million worth of sporting and recreational assets on behalf Visitation to the Hub continues to be strong with over of the Victorian Government. This group of facilities have 2.4 million visitors across its four facilities. The aquatic been referred to as the Sports Hub and comprises market performed well with a growth of 3.5% from previous Melbourne Sports and Aquatic Centre (MSAC), Lakeside year with strong utilisation of the facility by schools and Stadium, State Hockey Centre and the MSAC Institute Victorian clubs. Stadiums also had a strong year of Training (MIT). with improved participation across a number of sports. MSAC is the foundation facility of the State Sport Centres A highlight of the year was MSAC Stadium Events finishing Trust, offering state-of-the-art sport, fitness, and event 33% in front of budget. This was driven through strong usage facilities to millions of visitors every year and plays host to from the State Sporting Associations as well as several notable thousands of sports competitions, events and fitness activities. events (outlined below). This year over 2.4 million people visited a Melbourne Sports 2. major Events Hub venue, making it one of the busiest multi-purpose sports facilities in the country. The Events Team had an excellent year, finishing the year better than planned. There was strong usage of all facilities On behalf of the Victorian Government, the SSCT delivered from the State Sports Associations, as well as several notable approximately $3.4 million worth of capital works during the events including: 2015/16 financial year, ensuring the ongoing sustainability of physical assets and a continuing ability to meet – and surpass • Table & Oceania Cup – the expectations of users across all of our facilities. • Senior, Closed & Para Championships The asset management operations and maintenance of the • Squash Australian Open facilities has until now been the cornerstone of the SSCT’s • National Championships ongoing ability to deliver and support the Government’s key • Australian Wheelchair Football National Competition objectives. A new Executive Team has been appointed to start with the next financial year and a new Strategic Plan • Victorian Jiu Jitsu Championships is underway. The team aims to build upon the work done • Australian Schools Volleyball Cup previously whilst ensuring both the physical assets and • AASCF Cheerleading State Championships the services delivered meet the needs and expectations of • Australian Corporate Games sport, the State’s high performance pathways and visitors for the future. • Hockey Junior State Championships • Australian Netball League In line with the Sport & Recreation objectives, the SSCT achieved the following in the 2015/16 financial year: • Victoria State Championships • – NBL • Athletics Victoria – Zatopek • State Track & Field Athletics Championships.

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 1 CEO’s Report

3. support to Sport • (Badminton) Melbourne Sports Hub supports 34 sports tenants across • (Badminton) its facilities. During the 2015/16 financial year, our sporting • (Badminton) tenants and associations were supported by the SSCT with • Rowie Webster (Water ) approximately $3.668 million in rent discounts and subsidies • James Stanton-French(Water Polo) on access to facilities, funds that will go toward further • Rachael Lynch (Hockey) promoting and developing sport in Victoria. • Melissa Tapper (Table Tennis) 4. peak Pathways for Development • Morgan Mitchell (Athletics) • Damien Birkenhead (Athletics) Apart from hosting 300 club, regional, state and national sporting events during the 2015/16 financial year, the Melbourne • Genevieve LaCaze (Athletics) Sports Hub was home to fourteen State Sports Associations, • Brooke Stratton (Athletics) eight National Sporting Associations, and the home of the • Ryan Gregson (Athletics) State’s peak elite athlete training centre, the Victorian Institute • (Swimming) of Sport. The Hub provides an environment where athletes can • Daniela DiToro (Swimming) access the facilities they need to train, learn and grow, all in one world-class location. • (Athletics) • Australian Boomers (). 5. Representative Teams & Athletes At the end of the 2015/16 year the State Sport Centres Trust During the 2015/16 financial year, a number of representative enters an exciting time with a new Master Plan for all its teams and athletes used the Melbourne Sports Hub as a facilities, a renewed focus on supporting sports and athletes preparation ground for national and international competition. to achieve success, along with a new senior leadership team Notable teams to train at the Hub during the year were: dedicated to enhancing the facilities and experience for all our visitors. With these new changes in place, the years ahead will • provide opportunities to ensure all the Trust facilities deliver • Melbourne United to the highest standards expected for continuing the State • Australian Diamonds sporting success, and for Victorians to be proud of. • AFL Clubs – Hawthorn, Carlton, Richmond, I would like to acknowledge the skill and commitment • demonstrated by our Executive Management Group, our • New Caledonian Squash team retired Chair Gaye Hamilton and Acting Chair Jack Diamond • Hurricanes – NZ Rugby Team and the SSCT Trust Members Brett Moore, Danni Roche, Nicole • South Livingston, Kimberley Brown, Patricia Toop, Michael Taylor, Andrew Fried and Leigh Russell. I would also like to thank the • Melbourne Tigers. Minister for Sport, the Hon. John Eren, and the team at Sport & Melbourne Sports Hub was also the training centre for a Recreation Victoria for their support and assistance in enabling number of Australian Olympic and Paralympic athletes and the SSCT to continue to provide outstanding sports facilities teams in preparation for the 2016 Rio Olympic and Paralympic and community services to the people of Victoria. Games. Notable Olympian and Paralympian athletes and teams training at Melbourne Sports Hub were: • Mack Horton (Swimming)

• Koti Ngawati (Swimming) Mr. Phil Meggs • (Badminton) CEO SSCT

2 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT DECLARATION AND ATTESTATION

Accountable Officer’s declaration Standing Direction 4.5.5 – In accordance with the Financial Management Act 1994, I am Risk Management Framework pleased to present the Report of Operations for the State and Processes Sport Centres Trust for the year ending 30 June 2016. I, Phil Meggs certify that the State Sport Centres Trust has complied with the Ministerial Standing Direction 4.5.5 – Risk Management Framework and Processes. The State Sport Centres Trust Audit & Risk Committee verifies this.

Mr. Jack Diamond Interim Chairman 26 September 2016 Mr. Phil Meggs CEO/Accountable Officer 26 September 2016

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 3 Our Organisation

Establishment Functions The Melbourne Sports and Aquatic Centre is a statutory The key functions of the State Sport Centres Trust are authority established pursuant to the Melbourne Sports and as follows: Aquatic Centre Act 1994. The Centre opened for business on a. The management, operation and maintenance of the 27 July 1997. Melbourne Sports and Aquatic Centre and the State On 22 December 1999 the Melbourne Sports and Aquatic Netball Hockey Centre; Centre Act 1994 was amended by the Melbourne Sports and b. The care, improvement, use and promotion of the Aquatic Centre (Amendment) Act 1999. As outlined in section 1 Melbourne Sports and Aquatic Centre and the State of the Act, the main purpose of this Amendment was to: Netball Hockey Centre; a. Rename the Melbourne Sports and Aquatic Centre Trust as c. The efficient financial management of the Melbourne the State Sport Centres Trust; and Sports and Aquatic Centre and the State Netball b. Extend the powers of the Trust to enable it to manage the Hockey Centre; State Netball Hockey Centre and other sports, recreation d. The care, protection and management of the State Netball and entertainment facilities and services. Hockey Centre land, and Melbourne Sports and Aquatic As outlined in sections 14 and 15 of the Amendment, the Centre land, including maintaining the Melbourne Sports Melbourne Sports and Aquatic Centre and the State Netball and Aquatic Centre land and the facilities on the land to Hockey Centre are to be managed as independent Strategic a standard that complements Albert Park; Business Units, each producing a Business Plan and having e. Subject to the Act, the planning, development, separate and individual Financial Operation and Accounts. management, promotion, operation and use of other It is the Government and Trust’s policy that the Centres will sports, recreation and entertainment facilities and services not receive any cross subsidies for operation. in Victoria; The State Netball Hockey Centre opened for business on f. The development, management, promotion, operation and 29 January 2001 and was officially opened by the Premier use of facilities and services for the parking of vehicles and of Victoria, the Honourable on 16 March 2001. other necessary services to be used in conjunction with On 10 October 2004, the State Sport Centres Act was any of the facilities or services managed or operated by amended by the State Sport Centres (Amendment) Act 2004. the Trust; and As outlined in section 1 of the Act, the main purpose of this g. To accept appointment and act as a committee of amendment was to “include additional land in the land at the management of Crown lands. Melbourne Sports and Aquatic Centre and to provide additional management powers in relation to the Melbourne Sports and Aquatic Centre land”. Under the Act the relevant Minister is the Honourable John Eren MP, Minister for Sport. On 31 August 2011, State Sport Centres Trust was appointed as the Committee of Management of the Lakeside Oval Reserve under Section 14 (2) of the Crown Land (Reserves) Act 1978.

4 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT Range of Services Provided The Act outlines the range of services to be provided as sporting, educational, recreational, social and entertainment. The State Sport Centres Trust Vision, Purpose and Values are:

Our Vision We are the premier multi-sport facilities in Victoria. We enable sporting organisations and individuals to achieve their peak performance, reach their potential and deliver world class events.

Our Values Accountability and Pride We strive to uphold our reputation for excellence in every area of operations, acknowledging at all times our ownership of, and accountability for, our actions and their consequences. We work hard to leave a lasting positive impact on our community. Leadership and Motivation We lead by example, assisting and acknowledging the development and achievements of others. We choose to improve what we do each day because we want to be the best, and help others realise their potential. Honesty Our communication with every person is transparent and open. We conduct ourselves with the highest integrity, honouring our commitments and always recognising our responsibilities as custodians on behalf of the Victorian community. Care and Respect Driven by understanding, inclusion and equality, we celebrate diversity and are committed to providing a safe and supportive environment where our visitors and team can flourish without fear of discrimination, injury or judgement.

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 5 Organisational structure

Minister

SSCT

Audit & Risk Committee

CEO

General Manager General Manager General Manager General Manager Human Resources Facilities & Operations Commercial Corporate Manager Infrastructure & Services & Partnerships Services

Stakeholder Maintenance & Relationships: HR Systems Venue Operations Finance Asset Management Marketing & & Payroll Communication

Capital Projects Aquatics, Swim School Product Information Risk & Compliance & Building Works & Children’s Programs & Business Analysis

Car Park, Security, Governance & Catering Operations Retail Tenancies Cleaning & Signage Statutory Compliance

Customer Service, Technology Health & Wellness Memberships Infrastructure & Crèche

Event Sales & Bookings

6 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT Sports Venues

Total visitations across the three venues of SSCT had just Swim School over two million four hundred thousand during the 2015/2016 The Swim School had a successful year, up 2% against the set fiscal year. See below for the venue breakdown: budget and finished 7% up on the previous year due to the • 1,899,715 – MSAC maximisation of space and improved class structures. • 421,970 – SNHC Holding strong with enrolment numbers, in a market of • 93,872 – LS growing competitors, the Swim School delivered aquatic education to over 15,034 people across the following groups: Total – 2,415,557 • 2,088 Water Babies Melbourne Sports and • 6,666 Child Learn to Swim students Aquatic Centre (MSAC) • 538 Squad members

Aquatics • 259 Adult Learn to Swim students • 597 Private Lessons for students The aquatic casual market finished the year 2.5% up on budget, slightly improving on the previous year. Increases in family • 156 People with Disabilities and child casual market helped the decline in the adult swim • 1,813 Holiday Intensive students segment. The further increase in aquatic events and therefore the lack of available space being the main reason for the adult • 2,917 Schools Learn to Swim students. casual market decline. The aquatic event market performed well, exceeding budget by 17.5%, which was a growth of 3.5% from the previous year’s actual’s. Continued strong utilisation of the facility by schools and Victorian swimming clubs were the key drivers for this growth. The MSAC aquatic area also hosted several key National events which are listed below. • National Water Polo League finals • State Open & Age Swimming Championships • State Sprint Swimming Championships • Diving Age State Championships • Swimming Country Championships • Water Polo Pride Cup • Masters Swimming Nationals

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 7 Sports Venues

Children’s Programs Stadiums Children’s programs had several down periods over the year, The Stadium areas at MSAC, which includes the Basketball, creating a 4% short fall to budget for the 2015/2016 financial Badminton, Table Tennis and Squash halls performed well, year. This was a 0.4% drop from 2015/2016, School SplashOUT exceeding budget by $217 thousand. in December was down 35% from the previous year, due to the The stadiums casual market performed well finishing the year move of Swimming Victoria Age Championships limiting the 3% ahead of budget and 5% up on the previous year. Improved number of bookings. Casual SplashOUT in December, January usage within the Basketball, Table Tennis and Squash halls and February were down 12%, as cooler weather impacted the were the main drivers behind this increase. peak season. Stadium bookings achieved good results finishing the year The Children’s Programs team delivered a wide range of 6.5% in front of budget. This was largely driven by the programs and activities for schools and families to engage increased usage within the Table Tennis hall, which exceeded children in sport and recreation, promoting the benefits of a budget by $73 thousand for the year. healthy and active lifestyle, below indicates the participation achieved during the past year. MSAC Stadium Events finished the year 33% or $130 thousand in front of budget. This included strong usage from the State • 5,139 children enjoyed a birthday party experience Sporting Associations, as well as several notable events which • 13,032 students participated in our SportsOut and are listed below. WipeOut schools programs • Table Tennis National Hopes Challenge • 4,278 children attended the PlanetSport school • Table Tennis Veteran Championships holiday program • Table Tennis Australian Open & Oceania Cup • 42,509 enjoyed the fun and excitement of the • Table Tennis Senior, Closed & Para Championships SplashOut program • Squash Australian Open • 8,007 FlowRider participants • Badminton National Championships • Badminton Clendinnen Championships • Australian Wheelchair Football National Competition • Victorian Jiu JItsu Championships • UDO National Street Dance Championships • Australian Schools Volleyball Cup • AASCF Cheerleading State Championships • Australian Corporate Games • Melbourne Cheer Academy

8 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT State Netball Hockey Centre (SNHC) (LS) The SNHC casual market finished the year 4% in front Casual usage and bookings finished 35% better than budget of budget, a slight increase in Netball takings was the due to good use by school groups for casual bookings. contributing factor. Tenancies were 16.5% below budget, largely due to not finding a suitable tenant within the divided function space. Pitch and court bookings exceeded both budgets by 11.3% and improved on the previous year’s performance by 11%. Events finished the year 8% above budget, this was a further growth of 25% on last year’s actuals. A number of notable The events and bookings market performed strongly, closing events are listed below. the year 17% ahead of budget. Along with many regular bookings SNHC also hosted several notable events which • Athletics Victoria – Zatopek are listed below. • SMFC NPL Games • Hockey Junior Country Championships • State Track & Field Athletics Championships • Hockey State Finals • Melbourne World Challenge • Hockey Junior State Championships • Netball Maters Tournament • Football Federation of Victoria Dockerty Cup • Australian Netball League • Athletics All Schools T&F Championships • Gymnastics Victoria State Championships • National All Schools Championships • State Dodgeball Competition • International Champions Cup Exclusive training venue • Melbourne United – NBL • Aust Schools Volleyball Cup • Nickelodeon Slimefest

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 9 Sports Venues

Facilities Capital and asset upgrade Projects The Facilities and Infrastructure business unit delivers both In keeping with investment into ensuring sustainability of the Facility Management and Capital upgrade Improvements to physical assets and meeting user requirements during the year MSAC, SNHC and LS. 2015/2016 the Capital projects and asset upgrade works were committed to the tune of $3.4 million. In partnership, SSCT contracts product suppliers and trades to manage all aspects of the buildings performance including Environment Management the following: The Trust in keeping with its published strategic objectives has • Proactive and Reactive Maintenance maintained its drive to be a leader in environment management • Minor works practices through continuous improvement. • Project Management / Capital Works • Capital Planning • Asset Management • Environmental Management • Occupational Health and Safety • Risk Management.

Asset Management Continued audit and assessment of the building condition and the completion of the reported reactive maintenance items, were a main focus for the team. Improvement of underperforming plant equipment and maximisation of the asset life while minimising down time was the second. Compliance with BCA, Health Department, RLSSA and other regulatory bodies has been achieved as part of the regular cyclical and reactive maintenance of the Venues. Continued investment into the ongoing venue maintenance ensures that the venues meet the expectation of the user and operator.

10 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT Commercial And membership

MEMBERSHIP Our gym and wellness activities extend beyond our facilities. In 2015/16, our users participated in a number of key sporting Melbourne Sports Hub is proud to provide a wide range of events as part of TeamMSAC. These included events services to our thousands of members – from access to our such as the Portsea Swim, the Father’s Day Bike Ride and premier facilities to unique product and service offerings. the Technogym Global Challenge. The team had several In 2015/16, Melbourne Sports Hub sold 1,526 new and renewed podium finishes. platinum packages into our membership base. The platinum As one of the few venues in the area, our services also include membership gives full access to all classes, our aquatics areas occasional crèche, allowing parents of young children, including and the MSAC gym. It also allows members access to reduced top athletes and aspiring athletes, the opportunity to focus on prices for services including crèche. their training. In addition to this, we welcomed members from the most Overall, our Gym and Wellness Centre is a highly valued vulnerable parts of our community, who gained access to our service. Surveys conducted during the year show that more facilities through special memberships delivered in partnership than 60% of members use both our aquatic and dry facilities with the local council. (such as gym or wellness zone), and of those who attend Our Flexi membership was reviewed early in the year and the classes more than 70% attend more than one class each week. planned changes to the model were not implemented as a Our membership base is active and engaged. result of the review. This led to a $125,554 shortfall in revenue Financially, the gym, health & wellness membership area for the membership line. The current flexi membership base performed close to budget, missing it narrowly after a greater of 7,572 compared to a 2015/16 budget membership of 8,600. than expected impact of the Grand Prix and a slow period in Winter. GYM AND WELLNESS AND ASSOCIATED SERVICES VISITOR SERVICES Melbourne Sports Hub offers an exciting mix of fitness and Melbourne Sports Hub welcomes more than 2.4 million wellness services to our members, athletes and the community. visitors each year from casual users to members and regular Our large MSAC gym is equipped with contemporary, participants in various sports. The business places great cloud-connected cardio equipment along with a full suite of importance on servicing those visitors with a high level of resistance machines and weights. Our fully trained staff offer professionalism and integrity, and during the year our customer guidance, assessments and personalised programs to ensure service delivery was an area of focus with training. our thousands of users become the best they can be. We offer more than 100 group classes each week across aquatics (cardio), wellness (yoga, Pilates and reformer Pilates) and cardio. The program also includes classes targeted specifically at the older demographic. Over the year, we delivered more than 5,438 classes and welcomed 43,513 participants in these.

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 11 Commercial And membership

MARKETING AND COMMUNICATIONS SPONSORSHIP & CORPORATE The marketing and communications team provides support for PARTNERSHIPS Melbourne Sports Hub and all its business units. The key focus The Business Development team maintained sponsorship for the business unit in 2015/16 was on the strengthening of relationships during the year and maximised our opportunities our digital presence, in particular our social media assets, and with current partners for the promotion of the Melbourne developing content and promotional activities in support of our Sports Hub. key sporting partners. We continued to receive great support from major partners The team was strengthened with resources and the results and supporters, with support allowing us to deliver a number are now showing with significant media activity and vastly of community events including our Summer pool program. improved engagement online. The majority of activities focused on promoting facilities as premier sporting facilities Through our partnership with the Melbourne Bike Share and celebrating the success of the many top athletes who call station, MSAC also continued to offer our patrons and the Melbourne Sports Hub home – a focus that ultimately seeks local community a bike share station. We provided bicycles to deliver growth in participation. for almost 4181 riders throughout the year – an increase of 2.3% on the previous year. General marketing and communications work included a wide range of campaigns, collateral and communications pieces aimed at driving sales and increasing retention rates. CATERING Melbourne Sports Hub’s motto is “Developing Champions in RETAIL Life” and our food offering fuels those champions. A key focus for the catering division was on the continued review of the Melbourne Sports Hub continues to deliver solid retail returns. food offering and the development of a long-term strategy Across the venue we delivered retail revenue of $606 thousand to align catering to the overall business objectives. which is down on 2014/15 by 7%. In May 2016, a new Healthy Food Policy was developed. It Several new retail opportunities are currently underway to is set to be implemented in 2016/17 and will see our venues deliver an exciting retail environment servicing all sports transformed into a showcase of best practice for healthy food played at MSAC and strong financial results for 2016/17. offerings in major venues. The division had ambitious financial targets for the year, based on plans to redevelop the main café at MSAC. The redevelopment did not proceed, and as a result, MSAC Catering delivered behind budget. SNHC narrowly missed budget targets and LS Catering performed above budget.

12 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT Objectives and Performance against Objectives

Through the Vision and Mission of the State Sport Centers Trust, the following key objectives were identified in the 2015/16 Business Plan.

BUSINESS OBJECTIVE STATUS/RESULTS VARIATION/EXPLANATION

Achieve Platinum Membership base of 3,534 Not achieved Total active Platinum members just over 2,500 and a 10% increase in retention on 2014/15 – retention improved 2.0% on last year’s figures

Remodel Flexi membership to increase revenue Not achieved Changes did not get approval by 28% on 2014/15

Increase retail sales through expanded presence Not achieved Not achieved due to closure of store during across all venues refurbishment and colder than normal weather conditions. Retail was not implemented into Achieve growth of 30% on 2014/15 gym area

Redevelop catering offering to align with Not Achieved Adoption of the “Healthy Choices” policy is in Business objective ‘Developing Champions in Life’ the planning phase, implementation to occur September – January 2016 / 2017

Increase Aquatic events to $732,000 Achieved

Increase Swim School revenue to $1.93 million Achieved

Secure new events across MSAC, SNHC & LS Achieved to $150,000

Successfully renegotiate the EBA 2015 Achieved EBA approved March 2016

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 13 Corporate Services

5 YEAR PERFORMANCE

SSCT Financial History – Five Years (Accrual)

($ THOUSAND) 2016 2015 2014 2013 2012

Income 22,752 21,827 22,370 21,923 21,707

Expenses 33,274 31,808 31,359 28,461 29,149

Net Result -10,522 -9,981 -8,989 -6,538 -7,442

$’000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

-5,000

-10,000 2015 2014 2013 2012 2011

INCOME EXPENSES NET RESULT

14 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT SSCT Financial History – Five Years (Cash Only)

($ THOUSAND) 2016 2015 2014 2013 2012

Income 22,752 21,827 22,370 21,923 21,707

Expenses 23,966 22,665 22,435 20,942 19,237

Net Result -1,214 -838 -65 981 2,470

$’000 24,000

22,000

20,000

18,000

16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

-2,000 2014 2013 2012 2011 2010

INCOME EXPENSES NET RESULT

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 15 Corporate Services

HUMAN RESOURCES Workforce profile Our Human Resources team provides SSCT with structure and SSCT is committed to incorporating the principles of diversity, the ability to support business needs through management of respect, equity and merit into our equal employment the organisation’s most valuable resources …its employees. opportunity (EEO) and anti-discrimination programs and strategies for employees and prospective employees. To support this, the Human Resources business unit comprises the key branches of Workforce Planning and Strategy, The SSCT is also committed to the employment and selection Recruitment, Compliance, Employee Relations, Employee for jobs based on merit and free from discrimination. This seeks Welfare, Learning and Development, Policy and Payroll. to select the person who has the skills, knowledge, personal qualities and experience that best fit the job requirements Key achievements regardless of their race, age, gender or sexual preference. • Negotiation, approval and implementation of EBA 2015 Equal opportunity is actively promoted within the State Sport Centres Trust by: • E-Learning tools to close the gap on compliance training • creating an environment free of discrimination and • Records management software program implementation harassment to meet standards • providing clear and accountable policies and practices • Structured training roll out; identifying and fulfilling career and educational pathways • developing equity strategies and plans • Upskill of SSCT staff to facilitate training at the MSAC • developing diversity programs to increase access to the Institute of Training workplace for under-represented groups • Roll out of new SSCT uniform • providing SSCT’s employees with comprehensive learning and awareness programs on equity issues • Maintaining a workforce shift from 80% casual staff to 73% permanent across Trust; a commitment made to meet • Providing effective solutions to resolve complaints. financial targets in EBA 2015 negotiations The total number of personnel employed by the State Sport • Implementation of centralised rostering process across Centre’s Trust as at 30 June 2016 was 435. SSCT business units; focus on qualifications and ensuring Our youngest employee is 16 and our oldest employee is 75. rosters are driven by the business needs We have 6 staff with self-identified disabilities.

16 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT Staff Profile by Position Qualifications of staff that provide activity supervision

2016 MALE FEMALE TOTAL 2016 2015 NO. OF STAFF NO. OF STAFF Executive Officers >100k 4 1 5 First Aid 331 282 Full time 31 20 51 Pool Lifeguard 164 136 Part time 85 94 179 Advanced Resuscitation 56 46 Casual 58 67 125 CPR 400 343 Total paid 178 182 360

Total active 215 220 435

Full time equivalent 177

2015 MALE FEMALE TOTAL

Executive Officers >100k 4 1 5

Full time 34 23 57

Part time 77 75 152

Casual 64 76 140

Total paid 179 175 354

Total active 210 213 423

Full time equivalent 183

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 17 Corporate Services

Safety, Risk Management • The ongoing commitment to the Operational Risk and Compliance Committee. The Committee contains representatives from each work area and meets on a regular basis to consult, SSCT has a Risk Management Framework and Workplace report and monitor issues of health and safety for both Health and Safety Management System, these have been staff, contractors and customers. developed and implemented within a position guided by VMIA, Victorian OH&S legislation and International standards. Injuries per 1000 visits These are assisting the Trust to develop organisational wide capabilities in risk and safety management. The systems 2016 2015 ensure consistent, efficient and effective management of risk in the achievement of SSCT’s strategic and business objectives MSAC 0.46 0.34 as well as providing a safe and healthy environment for employees, contractors, customers and other visitors. SNHC 0.10 0.09 SSCT aims to meet the requirements of the management system with high workforce engagement through the LS 0.39 0.31 development of safety culture and leadership programs, preventative reporting and assessment alongside industry based initiatives and tools in the application of safety and Days Lost risk management. 29 days were lost due to work related injuries in 2015/2016 The positive implementation of the management systems (2014: 49) has been achieved through the following activities in the No time was lost to industrial disputes in 2015/2016 (2014: 0) 2015/2016 year: • Assessment of strategic risks during annual business planning that have been supplemented to the Risk Management Framework with management strategies recorded and monitored. This task is vital within the organisation’s increasingly complicated and expanded business activities. • Monitoring of risk and safety culture; the alignment of organisational culture with risk culture through the monitoring of behaviours demonstrated by staff. This has allowed the business to understand the level of cultural engagement across the organisation while promoting positive, risk aware and safe behaviours at work. • Preventative and continuous improvement focused reporting throughout the business; allowing monitoring of potential risk and opportunity to facilitate improvement and change in behaviour, process and systems. Preventative reporting is monitored operationally through the relationship between hazard and near miss reporting and injury incidence (refer preventative reporting and hazard management ratio).

18 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT Information Technology Other major projects were planned in the 2015-16 financial year, and these projects have commenced and/or continue on into I.T. Services have begun increasing their availability of core the 2016-17 financial year: systems with the implementation of UPS infrastructure. This allows our core hardware to gracefully shutdown in the • Wireless Event Network case of emergency. • Desktop replacements on end of life cycle units I.T. Services has worked with the executive management • Major release update to Leisure Centre Management System. team and Business Area Managers to update and renew all I.T. Policies and procedures. I.T. Services has leveraged mobilisation for Executive and Management staff with the deployment of laptop computers, allowing staff to move fluidly between sites when required with all functionality still available. I.T. Services have maintained the IT operating systems with server and systems availability over 99.95% with the help of internal resources and the external managed services provider. Major projects, upgrades and achievements within the 2015-2016 financial year were: • Migration of the majority of mobile services to new government plans achieving savings across the fleet • Implementation of integration between Links and IMG for use with Hockey Victoria members allowing them swipe entry into SNHC • Infrastructure for additional backup storage at MSAC to allow for faster RTO in case of a disaster • Procurement and installation of additional Uninterrupted Power Supply infrastructure to replace and add UPS on all network infrastructure • Mobilisation of Executive and Management staff with the Microsoft Surface rollout • Server components upgraded to allow for faster execution and seamless performance • Replacing all DECT phone system handsets with mobiles.

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 19 Legislative & Government Policy Compliance

Freedom of Information Compliance with Building Act 1993 The Freedom of Information Act 1982 allows for the public Over the past year, nothing in the Building Act 1993 applies a right of access to documents held by the Trust. For the to the carrying out of works authorised by or in accordance 12 months to 30 June 2016 the Trust received one request for with the State Sport Centres Act or at the request of the information pursuant to the Freedom of Information Act 1982. Trust. The Trust has however undertaken to comply with the (2015: 0). specifications of the Building Act 1993 wherever applicable.

Making a Request National Competition Policy Access to documents may be lodged online at The Trust applies the principles of competitive neutrality to www.foi.vic.gov.au as detailed in s17 if the Freedom of all commercial operations in accordance with the Victorian Information Act 1982. Government Competitive Neutrality Policy, where it is in competition with private sector enterprises, but where the Access to charges may also apply once documents have been provision of services or facilities by the Trust is deemed to processed and a decision on access is made; for example be in the public benefit, the principles are not applied. photocopying and search retrieval charges. Further information regarding Freedom of Information can be found at www.foi.vic.gov.au Implementation of the Victorian Industry Participation Policy Categories of Documents In October 2003, the Victorian Parliament passed the Victorian Industry Participation Policy Act 2003, which requires the The Trust maintains records and files incorporating documents Trust to report on the implementation of the Victorian Industry relating to general administrative matters and the operation Participation Policy (VIPP). The Trust is required to apply of SSCT facilities. All records and files are maintained at the VIPP in all tenders over $3 million. During 2015/2016 the Trust’s premises at Albert Park and Royal Park. Trust did not commence or complete a contract to which the VIPP applied.

20 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT Consultancy Services Grant – Operational Funding (Grant)

Consultancies costing in excess of $100,000 Organisation Receipt ($)

Name Description: Number of 2016 2015 DHHS (SRV) 1,500,000 engagements DHHS (SRV) 500,000 Growth Professional 1 $270,700 N/A Mantra services DHHS (SRV) 300,000

Total 2,300,000 Consultancies costing less than $100,000 Number: 2 (2015: 2) Grant – Capital Funding (Grant) Total Amount: $10,067 (2015: $20,008) Organisation Receipt ($)

Additional Information Available DHHS (SRV) 3,400,000 on Request Total 3,400,000 Relevant information detailed in Financial Reporting Direction (FRD) 22F ‘Standard Disclosures in the Report of Operations’ under the Financial Management Act 1994 Section 3 is retained Government Advertising Expenditure by the Trust’s Accountable Officer and is available on request, The Trust did not undertake any campaigns with a media subject to the Freedom of Information Act 1982. spend of $150,000 or greater during 2015/16.

Disclosure of Grants Details of Information and Communication Technology (ICT) Expenditure and Transfer Payments The total ICT expenditure incurred during 2015/16 is $1,208,680 State Sport Centres Trust (excluding GST) with the details shown below. Operational Funding 2014/15 to 2017/18 a. Total entity ICT Business as Usual (BAU) expenditure State Sport Centres Trust (excluding GST) for the full 12 month reporting period Capital Funding 2014/15 to 2017/18 OPEX $806,200 State Sport Centres Trust CAPEX $248,181 Operational Budget Supplementation 2015/16 to 2016/17 b. Total entity ICT Non-Business as Usual expenditure State Sport Centres Trust (excluding GST) for the full 12 month period Facilities Master Plan 2015 OPEX & CAPEX $0

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 21 Financial Overview and Disclosure

Financial Review of Operations and Financial Condition

Five Year History The Trust made an operating deficit of $1.2 million, with a net deficit of $10.5 million when depreciation is taken into account in 2015/16.

SSCT 2016 SSCT 2015 SSCT 2014 SSCT 2013 SSCT 2012 $’000 $’000 $’000 $’000 $’000

Revenue 22,752 21,827 22,370 21,923 21,707

Operating Expenses 23,966 22,665 22,435 20,942 19,237

Depreciation 9,308 9,143 8,924 7,519 9,912

Net Result from transactions (10,522) (9,981) (8,989) (6,538) (7,442)

Total Assets 352,361 342,739 345,767 348,490 290,998

Total Liabilities 8,133 8,748 9,366 8,971 7,810

Operating Statement Changes in Equity The State Sport Centres Trust recorded an operating deficit The State Sport Centres Trust recorded an increase in equity of before depreciation of $1.2 million in 2015/16 which included $10.2 million in 2015/16. This position was due to the following Operational funding from government of $2 million for key factors: MSAC, SNHC and Lakeside Stadium. After taking account • Capital funding received of $3.4 million of a depreciation charge of $9.3 million for the year, the SSCT recorded a deficit of $10.5 million. • A net loss from transactions of $10.5 million • An asset revaluation increment of $17.4 million for land. Balance Sheet Major changes to the balance sheet include the following: Cash Flow • An increase in cash and deposits due to the timing of The State Sport Centres Trust recorded an increase in cash funding received in 2015/16 held of $0.75 million in 2015/16. This included the following key impact: • A decrease in receivables due to grant funding being received prior to year-end • A decrease in receivables due to grant funding being received prior to year-end. • A revaluation of $17.4 million for land performed throughout the financial year.

22 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT Disclosure Index

The Annual Report of the State Sport Centres Trust is prepared in accordance with all relevant Victorian legislations. This index has been prepared to facilitate identification of the Trust’s compliance with statutory requirements.

MINISTERIAL DIRECTIONS

LEGISLATION REQUIREMENT PAGE REFERENCE FRD 22F Manner of establishment and relevant Ministers 4 FRD 22F Objectives, functions, powers and duties 4 FRD 22F Nature and range of services provided 5

MANAGEMENT AND STRUCTURE

LEGISLATION REQUIREMENT PAGE REFERENCE FRD 22F Organisation structure 6

FINANCIAL AND OTHER INFORMATION

LEGISLATION REQUIREMENT PAGE REFERENCE FRD 29A Statement of workforce data 17 FRD 22F Summary of the financial results for the year 22 FRD 22F Significant changes in the financial position during the year 22 FRD 22F Major changes or factors affecting performance 22 FRD 22F Subsequent events 42 FRD 22F Application and operation of Freedom of Information Act 20 FRD 22F Compliance with building and maintenance provisions of Building Act 1993 20 FRD 22F Statement on National Competition Policy 20 FRD 22F Application and operation of the Protected Disclosure Act 2001 25 FRD 22F Details of consultancies over $100,000 and under $100,000 21 FRD 22F Statement of availability of other information 21 FRD 22F Occupational health and safety 18 FRD 15B Executive officer disclosures 60-61 FRD 10 Disclosure index 23 FRD 25B Victorian Industry Participation Policy Disclosures 20 FRD 8C Objectives and Performance Against Objectives 13 FRD 22E Employment and conduct principles 16 PAEC 87 Disclosure of Grants and Transfer Payments 21 SD 4.5.5 Risk management compliance attestation 3 FRD 22F Details of government advertising expenditure 21

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 23 Disclosure Index

FINANCIAL STATEMENTS FINANCIAL STATEMENTS REQUIRED UNDER PART 7 OF THE FMA

LEGISLATION REQUIREMENT PAGE REFERENCE SD4.2(c) Compliance with Australian accounting standards and other authoritative pronouncements 32 SD4.2(c) Compliance with Ministerial Directions 33 SD4.2(d) Rounding of amounts 34 SD4.2(c) Accountable officer declaration 3 SD4.2(f) Model Financial Report 32 SD4.2(b) Operating Statement 28 SD4.2(b) Balance Sheet 29 SD4.2(a) Statement of Changes in Equity 30 SD4.2(b) Cash Flow Statement 31

OTHER DISCLOSURES IN NOTES TO THE FINANCIAL STATEMENTS

LEGISLATION REQUIREMENT PAGE REFERENCE FRD 13 Disclosure of parliamentary appropriates 41 FRD21B Responsible person and executive officer disclosures 60-61 FRD 23 Superannuation liabilities and disclosures 62

CONSIDERED ACTS: • Freedom of Information Act 1982 20 • Protected Disclosures Act 2012 25 • Building Act 1993 20 • Victorian Industry participation Policy Act 2003 20 • Financial Management Act 1994

24 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT Protected Disclosures

Compliance with the Protected Reporting Procedures Disclosure Act 2012 (formerly, the Disclosures of improper conduct or detrimental action by the Whistleblowers Protection Act 2001) Trust or any of its employees and/or officers may be made to The Protected Disclosure Act 2012 encourages and assists the following officer: people in making disclosures of improper conduct by public The Protected Disclosure Coordinator and Officer: officers and public bodies. The Act provides protection to people who make disclosures in accordance with the Act Thomas Crookes and establishes a system for the matters disclosed to be General Manager Corporate Services investigated and rectifying action to be taken. 30 Aughtie Drive The Trust does not tolerate improper conduct by employees, Albert Park Victoria 3206 nor the taking of reprisals against those who come forward Email: [email protected] to disclose such conduct. It is committed to ensuring Tel: (03) 9926 1506 transparency and accountability in its administrative and management practices and supports the making of disclosures Alternatively, disclosures of improper conduct or detrimental that reveal corrupt conduct, conduct involving a substantial action by the Trust or any of its employees and/or officers mismanagement of public resources, or conduct involving a may also be made directly to the Independent Broad-based substantial risk to public health and safety or the environment. Anti-corruption Commission: The Trust will take all reasonable steps to protect people who Level 1, 459 Collins Street (North Tower) make such disclosures from any detrimental action in reprisal Melbourne VIC 3000 for making the disclosure. It will also afford natural justice to the person who is the subject of the disclosure to the extent it Telephone: 1300 735 135 is legally possible. Internet: www.ibac.vic.gov.au Email: (refer website above)

Further Information The Protected Disclosure Policy and Procedures, which outline the system for reporting disclosures of improper conduct or detrimental action by the Trust or any of its employees and/or officers are available for public perusal.

Disclosures under the Protected Disclosure Act 2012

2015/2016 NUMBER 2014/2015 NUMBER

The number of disclosures made by an individual to the Trust and notified to the Independent Broad-based Anti-corruption Commission:

Assessable disclosures 0 0

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 25 26 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT FINANCIALS

Comprehensive Operating Statement 28 Balance Sheet 29 Statement of Changes in Equity 30 Cash Flow Statement 31 Notes to the financial statements Note 1. Summary of significant accounting policies 32 Note 2. Going concern 47 Note 3. Income from transactions 47 Note 4. Expenses from transactions 48 Note 5. Cash and deposits 49 Note 6. Receivables 49 Note 7. Property, plant, and equipment 50 Note 8. Inventories 54 Note 9. Other non-financial assets 55 Note 10. Payables 55 Note 11. Provisions 56 Note 12. Other liabilities 57 Note 13. Leases 57 Note 14. Equity 58 Note 15. Capital expenditure commitments 58 Note 16. Cash flow information 59 Note 17. Contingent liabilities 59 Note 18. Responsible persons 60 Note 19. Superannuation 62 Note 20. Remuneration of auditors 62 Note 21. Financial instruments 63 Certification 72

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 27 Annual Financial Statements

Comprehensive Operating Statement For the Year Ended 30 June 2016

SSCT SSCT ($ THOUSAND) NOTES 2016 2015 Income from transactions Sale of goods and services 3(a) 20,294 20,069 Grants 3(b) 2,404 1,641 Interest 3(c) 54 117 Total income from transactions 22,752 21,827

Expenses from transactions Employee expenses 4(a) (12,388) (11,760) Depreciation 4(c) (9,308) (9,143) Other operating expenses 4(b) (11,578) (10,905) Total expenses from transactions (33,274) (31,808) Net result from transactions (net operating balance) (10,522) (9,981)

Other economic flows included in net result Increase (loss) / decrease (gain) in provision of doubtful debts 6(a) (1) (6) Net gain / (loss) arising from revaluation of long service liability (63) 31 Total other economic flows included in net result (64) 25 Net result (10,586) (9,956)

Other economic flows - other comprehensive income Changes in physical asset revaluation surplus 14 17,423 2,996 Total other economic flows - other comprehensive income 17,423 2,996 Comprehensive result 6,837 (6,960)

The comprehensive operating statement should be read in conjunction with the notes to the financial statements.

28 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT Balance Sheet As at 30 June 2016

SSCT SSCT ($ THOUSAND) NOTES 2016 2015 Assets Financial assets Cash and deposits 5 4,027 3,277 Receivables 6 996 3,199 Total financial assets 5,023 6,476

Non-financial assets Inventories 8 135 124 Other non-financial assets 9 268 207 Property, plant and equipment 7(a) 346,935 335,932 Total non-financial assets 347,338 336,263 Total assets 352,361 342,739

Liabilities Payables 10 2,906 2,463 Other liabilities 12 4,240 5,386 Provisions 11 987 899 Total liability 8,133 8,748 Net assets 344,228 333,991

Equity Accumulated deficit (76,151) (65,565) Physical asset revaluation surplus 14 138,195 120,772 Contributed capital 282,184 278,784 Total equity / Net worth 344,228 333,991 Commitments for expenditure 15 Contingent liabilities 17

The balance sheet should be read in conjunction with the notes to the financial statements.

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 29 Annual Financial Statements

Statement of Changes in Equity For the Year Ended 30 June 2016

PHYSICAL ASSET REVALUATION ACCUMULATED CONTRIBUTED ($ THOUSAND) NOTES SURPLUS DEFICIT CAPITAL TOTAL Balance at 1 July 2014 117,776 (55,609) 274,234 336,401 Net result for the year - (9,956) - (9,956) Other comprehensive income for the year 2,996 - - 2,996 Capital appropriations - - 4,550 4,550

Balance at 30 June 2015 120,772 (65,565) 278,784 333,991 Net result for the year - (10,586) - (10,586) Other comprehensive income for the year 14 17,423 - - 17,423 Capital appropriations - - 3,400 3,400

Balance at 30 June 2016 138,195 (76,151) 282,184 344,228

The statement of changes in equity should be read in conjunction with the notes to the financial statements.

30 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT Cash Flow Statement For the Year Ended 30 June 2016

SSCT SSCT ($ THOUSAND) NOTES 2016 2015 Cash flows from operating activities Receipts Receipts from customers 24,170 19,640 Receipts from Government 2,404 1,641 Interest received 61 128 Total receipts 26,635 21,409

Payments Payments to suppliers and employees (26,848) (24,733) Goods and Services Tax paid (received) to / (from) the ATO 451 (400) Total payments (26,397) (25,133) Net Cash flows from / (used in ) operating activities 16(b) 238 (3,724)

Cash flows from investing activities Payments for non-financial assets (2,888) (4,581) Net cash flow from / (used in) investing activities (2,888) (4,581)

Cash flows from financing activities Contributed capital from government 3,400 4,550 Net cash flows from financing activities 3,400 4,550 Net (decrease) / increase in cash and cash equivalents 750 (3,755) Cash and cash equivalents at beginning of financial year 3,277 7,032 Cash and cash equivalent at end of financial year 16(a) 4,027 3,277

This above cash flow statement should be read in conjunction with the notes to the financial statements.

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 31 Annual Financial Statements

Notes to the financial statements For the financial year ended 30 June 2016

Note 1. Summary of significant are not readily apparent from other sources. The estimates and accounting policies associated assumptions are based on professional judgements derived from historical experience and various other factors These annual financial statements represent the audited that are believed to be reasonable under the circumstances. general purpose financial statements for State Sport Centres Actual results may differ from these estimates. Trust (SSCT) for the period ending 30 June 2016. The report provides users with information about the SSCT’s stewardship Revisions to accounting estimates are recognised in the period of resources entrusted to it. in which the estimate is revised and also in future periods that are affected by the revision. Judgements and assumptions A. sTATEment of compliance made by management in the application of AASs that have significant effects on the financial statements and estimates These general purpose financial statements have been relate to: prepared in accordance with the Financial Management Act 1994 (FMA) and applicable Australian Accounting Standards • the fair value of land, buildings, plant and equipment (AAS) which include Interpretations, issued by the Australian (refer to Note 1 (J)); Accounting Standards Board (AASB). In particular, they are • Superannuation expense; (refer to Note 1 (G)); and presented in a manner consistent with the requirements of AASB 1049 Whole of Government and General Government • assumptions for employee benefit provision based on likely Sector Financial Reporting. tenure of existing staff, patterns of leave claims, future salary movements and future discount rates. Where appropriate, those AASs paragraphs applicable to not-for-profit entities have been applied. These financial statements are presented in Australian dollars, and prepared in accordance with the historical cost convention Accounting policies are selected and applied in a manner except for: which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that • non-financial physical assets which, subsequent to the substance of the underlying transactions or other events acquisition, are measured at a revalued amount being is reported. their fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent The annual financial statements were authorised for issue by impairment losses. Revaluations are made with sufficient Ms. Danni Roche, Chairman of SSCT Audit& Risk Committee, regularity to ensure that the carrying amounts do not Mr. Phil Meggs, Chief Executive Officer and Accountable materially differ from their fair value. Officer of SSCT, and Mr. Thomas Crookes, Chief Finance and Accounting Officer, on 26 September 2016. Consistent with AASB 13 Fair Value Measurement, SSCT determines the policies and procedures for recurring fair value B. bAsis of accounting preparation measurements such as property, plant and equipment, in and measurement accordance with the requirements of AASB 13 and the relevant Financial Reporting Directions. The accrual basis of accounting has been applied in the preparation of these financial statements whereby assets, All assets and liabilities for which fair value is measured or liabilities, equity, income and expenses are recognised in the disclosed in the financial statements are categorised within the reporting period to which they relate, regardless of when cash fair value hierarchy, described as follows, based on the lowest level is received or paid. input that is significant to the fair value measurement as a whole: Judgements, estimates and assumptions are required to be • Level 1 — Quoted (unadjusted) market prices in active made about the carrying values of assets and liabilities that markets for identical assets or liabilities

32 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT • Level 2 — Valuation techniques for which the lowest level The following business units are included in the SSCT’s input that is significant to the fair value measurement is reporting entity: directly or indirectly observable; and • Melbourne Sports and Aquatic Centre (MSAC), • Level 3 — Valuation techniques for which the lowest level incorporating MSAC Institute of Training and Lakeside input that is significant to the fair value measurement Stadium, is an independent Strategic Business Unit is unobservable. of SSCT. The unit is headed by the Director of SSCT, For the purpose of fair value disclosures, SSCT has determined established under s14 of the Act. classes of assets and liabilities on the basis of the nature, • State Netball Hockey Centre (SNHC), is an independent characteristics and risks of the asset or liability and the level Strategic Business Unit of SSCT. The unit is headed by of the fair value hierarchy as explained above. the Director of SSCT, established under s15 of the Act. In addition, SSCT determines whether transfers have occurred • SSCT was appointed as the committee of management between levels in the hierarchy by reassessing categorisation of the Lakeside Oval Reserve on 31 Aug 2011 under section (based on the lowest level input that is significant to the 14(2) of the Crown Land (Reserves) Act 1978. Therefore, fair value measurement as a whole) at the end of each details of the Lakeside Stadium financials have been reporting period. incorporated into MSAC. The Valuer-General Victoria (VGV) is the SSCT’s independent MSAC and SNHC produce a Business Plan and operate valuation agency. independently with separate and individual financial operations SSCT, in conjunction with VGV, monitors changes in the fair and accounts. It is the Government and SSCT’s policy that the value of each asset and liability through relevant data sources Centres will not receive any cross subsidies for operation. to determine whether revaluation is required. A description of the nature of the SSCT’s operations and its principal activities is included in the report of operations, C. Reporting entity which does not form part of these financial statements. The financial statements cover SSCT as an individual reporting entity. Objectives and funding SSCT is a statutory authority of the State of Victoria, SSCT’s overall objective is the management, operation and established pursuant to an order made by the Premier under maintenance of the Melbourne Sports and Aquatic Centre, State the State Sport Centres (Amendment) Act 2004 No. 70 (“Act”). Netball Hockey Centre, MSAC Institute of Training and Lakeside Stadium, as well as improve the quality of life to Victorians. Its principal address is: State Sport Centres Trust D. bAsis of consolidation 30 Aughtie Drive, In accordance with AASB 10 Consolidated Financial Statements: Albert Park VIC 3206 • The consolidated financial statements of SSCT include all The financial statements include all the controlled activities of reporting entities controlled by SSCT as at 30 June 2016; and the SSCT, which is a statutory authority established under the • The consolidated financial statements exclude bodies State Sport Centres (Amendment) Act 2004 No. 70 (“Act”). in SSCT’s portfolio that are not controlled by SSCT, and therefore are not consolidated.

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 33 Annual Financial Statements

Notes to the financial statements For the financial year ended 30 June 2016

Where control of an entity is obtained during the financial Current and non-current assets and liabilities are disclosed period, its results are included in the comprehensive operating in the notes, where relevant. In general, non-current assets or statement from the date on which control commenced. Where liabilities are expected to be recovered or settled more than control ceases during a financial period, the entity’s results are 12 months after the reporting period, except for the provisions included for that part of the period in which control existed. of employee benefits, which are classified as current liabilities Where entities adopted is similar accounting policies and their if SSCT does not have the unconditional right to defer the effect is considered material, adjustments are made to ensure settlement of the liabilities within 12 months after the end of consistent policies are adopted in these financial statements. the reporting period.

E. sCOpe and presentation of Cash flow statement financial statements Cash flows are classified according to whether or not they arise from operating, investing, or financing activities. This Comprehensive operating statement classification is consistent with requirements under AASB 107 The comprehensive operating statement comprises three Statement of Cash Flows. components, being ‘net result from transactions’ (or termed as ‘net operating balance’), ‘other economic flows included in net Statement of changes in equity result’, as well as ‘other economic flows – other comprehensive The statement of changes in equity presents reconciliations of income’. The sum of the former two, together with the net non-owner and owner changes in equity from opening balances result from discontinued operations, represents the net result. at the beginning of the reporting period to the closing balances The net result is equivalent to profit or loss derived in at the end of the reporting period. It also shows separately accordance with AASs. changes due to amounts recognised in the ‘comprehensive result’ and amounts related to ‘Transactions with owner in its ‘Other economic flows’ are changes arising from market capacity as owner’. remeasurements. They include: • gains and losses from disposals of non-financial assets; Rounding • revaluations and impairments of non-financial physical Amounts in the financial statements have been rounded to the and intangible assets. nearest $1,000, unless otherwise stated. Figures in the financial statements may not equate due to rounding. This classification is consistent with the whole of government reporting format and is allowed under AASB 101 Presentation F. Income from transactions of Financial Statements. Income is recognised to the extent that it is probable that the Balance sheet economic benefits will flow to the entity and the income can be reliably measured at fair value. Assets and liabilities are presented in liquidity order with assets aggregated into financial assets and non-financial assets. Interest Interest income includes interest received on bank term deposits and other investments and the unwinding over time of the discount on financial assets. Interest income is recognised using the effective interest method which allocates the interest over the relevant period.

34 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT Income from sale of goods and services The Department of Treasury and Finance (DTF) in its annual financial statements, disclose on behalf of the State as the Income from the sale of goods and services is recognised when: sponsoring employer, the net defined benefit liability related • SSCT no longer has any of the significant risks and rewards to the members of these plans as an administered liability. of ownership of the goods and services transferred to Refer to DTF’s annual financial statements for more detailed the buyer; disclosures in relation to these plans. • SSCT no longer has continuing managerial involvement to Depreciation the degree usually associated with ownership, nor effective control over the goods sold and services provided; All infrastructure assets, buildings, plant and equipment and other non-financial physical assets (excluding items under • the amount of income, and the costs incurred or to operating leases, assets held for sale, and land) that have be incurred in respect of the transactions, can be finite useful lives are depreciated. Depreciation is generally reliably measured; calculated on a straight-line basis, at rates that allocate • it is probable that the economic benefits associated with the asset’s value, less any estimated residual value, over its the transaction will flow to the SSCT. estimated useful life. Refer to Note 1 (J) for the depreciation policy for leasehold improvements. Sale of goods and services includes rental income which is recognised at the time the rent is billed. The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting Grants period, and adjustments made where appropriate. Income from grants (other than contributions by owners) is The following are typical estimated useful lives for the different recognised when SSCT obtains control over the contribution. asset classes for both current and prior years:

G. Expenses from transactions Expenses from transactions are recognised as they are Asset Useful Life incurred, and reported in the financial year to which they relate. 2016 2015 Buildings 15 – 110 years 15 – 110 years Employee expenses Plant and Equipment 5 – 40 years 5 – 40 years Refer to the section in Note 1(L) regarding employee benefits. Office Furniture 5 – 15 years 5 – 15 years These expenses include all forms of considerations (other than Computer Equipment 3 – 5 years 3 – 5 years superannuation which is accounted for separately) given by Gym Equipment 5 – 10 years 5 – 10 years SSCT in exchange for service rendered by employees or for the Other Equipment 2 – 40 years 2 – 40 years termination of employment. This includes wages and salaries, Leasehold Improvements 5 – 40 years 5 – 40 years fringe benefits tax, leave entitlements, termination payments and WorkCover premiums. Land is considered to have an indefinite life, is not depreciated. Depreciation is not recognised in respect of this asset because Superannuation its service potential has not, in any material sense, been The amount recognised in the comprehensive operating consumed during the reporting period. statement is the employer contributions for members of the defined contribution superannuation plans that are paid or payable during the reporting period.

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 35 Annual Financial Statements

Notes to the financial statements For the financial year ended 30 June 2016

Other operating expenses its recoverable amount, the difference is written off as another economic flow, except to the extent that the write-down can be Other operating expenses generally represent the day-to-day debited to an asset revaluation surplus amount applicable to running costs incurred in normal operations and include: that class of asset. Supplies and services If there is an indication that there has been a reversal in the estimate of an asset’s recoverable amount since the last Supplies and services are recognised as an expense in the impairment loss was recognised, the carrying amount shall reporting period in which they are incurred. The carrying be increased to its recoverable amount. The impairment amounts of any inventories held for distribution are expensed loss is reversed only to the extent that the asset’s carrying when distributed. amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no Bad and doubtful debts impairment loss had been recognised in prior years. Bad and doubtful debts are assessed on a regular basis (refer It is deemed that, in the event of the loss or destruction of an to Note 1(I) Financial assets – Impairment of financial assets). asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary H. Other economic flows included in the has been made. The recoverable amount for most assets is net result measured at the higher of depreciated replacement cost and Other economic flows are the change in the volume or value fair value less costs to sell. Recoverable amount for assets of assets or liabilities that does not result from transactions. held primarily to generate net cash inflows is measured at the higher of the present value of future cash flows expected to Net gain/(loss) on non-financial assets be obtained from the asset and fair value less costs to sell. Net gain/(loss) on non-financial assets and liabilities includes Refer to Note 1(J) in relation to the recognition and realised and unrealised gains and losses as follows: measurement of non-financial assets.

Revaluation gains/(losses) of non-financial Other gains/(losses) from other economic flows physical assets Other gains/(losses) from other economic flows include the Refer to Note 1(J) Revaluations of non-financial physical assets. gains or losses from the revaluation of the present value of the long service leave liability due to changes in the bond Net gain/(loss) on disposal of non-financial assets interest rates. Any gain or loss on the disposal of non-financial assets is I. Financial assets recognised at the date of disposal and is the determined after deducting the proceeds from the carrying value of the asset at Cash and deposits the time. Cash and deposits recognised on the balance sheet comprise Impairment of non-financial assets cash on hand and cash at bank, deposits at call and those highly liquid investments (with an original maturity of three All of SSCT’s non-financial assets are assessed annually for months or less), which are held for the purpose of meeting indications of impairment, except for inventories. short term cash commitments rather than for investment If there is an indication of impairment, the assets concerned purposes, and readily convertible to known amounts of cash are tested as to whether their carrying value exceeds their with an insignificant risk of changes in value. recoverable amount. Where an asset’s carrying value exceeds

36 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT For cash flow statement presentation purposes, cash and cash The amount of the allowance is the difference between the equivalents include bank overdrafts, which are included as financial asset’s carrying amount and the present value of borrowings on the balance sheet. estimated future cash flows, discounted at the effective interest rate. Receivables In assessing impairment of statutory (non-contractual) Receivables consist of: financial assets, which are not financial instruments, professional judgement is applied in assessing materiality • contractual receivables, such as debtors in relation to using estimates, averages and other computational methods goods and services, accrued investment income; and in accordance with AASB 136 Impairment of Assets. • statutory receivables, such as amounts owing from the Victorian Government and Goods and Services Tax (GST) J. Non-financial assets input tax credits recoverable. Inventories Contractual receivables are classified as financial instruments and categorised as loans and receivables (refer to Note 1(K) Inventories include goods and other property held either for Financial Instruments for recognition and measurement). sale, consumption or for distribution at zero or nominal cost, or Statutory receivables, are recognised and measured similarly for consumption in the ordinary course of business operations. to contractual receivables (except for impairment), but are not Inventories held for distribution are measured at cost, adjusted classified as financial instruments because they do not arise for any loss of service potential. All other inventories, including from a contract. land held for sale, are measured at the lower of cost and net Receivables are subject to impairment testing as described realisable value. Where inventories are acquired for no cost below. A provision for doubtful receivables is recognised when or nominal considerations, they are measured at current there is objective evidence that the debts may not be collected, replacement cost at the date of acquisition. and bad debts are written off when identified. Cost for all other inventory is measured on the basis of The average credit period for sales of goods and services and weighted average cost. for other receivables is 30 days. No interest is charged on other Bases used in assessing loss of service potential for inventories receivables for outstanding balances. held for distribution include current replacement cost and technical or functional obsolescence. Technical obsolescence Impairment of financial assets occurs when an item still functions for some or all of the tasks At the end of each reporting period, SSCT assesses whether it was originally acquired to do, but no longer matches existing there is objective evidence that a financial asset or group of technologies. Functional obsolescence occurs when an item no financial assets is impaired. All financial instrument assets, longer functions the way it did when it was first acquired. except those measured at fair value through profit or loss, are subject to annual review for impairment. Property, plant and equipment Receivables are assessed for bad and doubtful debts on a All non-financial physical assets are measured initially at cost regular basis. Those bad debts considered as written off by and subsequently revalued at fair value less accumulated mutual consent are classified as a transaction expense. Bad depreciation and impairment. Where an asset is acquired debts not written off by mutual consent and the allowance for for no or nominal cost, the cost is its fair value at the date doubtful receivables are classified as other economic flows in of acquisition. Assets transferred as part of a machinery of the net result. government are transferred at their carrying amount.

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 37 Annual Financial Statements

Notes to the financial statements For the financial year ended 30 June 2016

Non-financial physical assets such as Crown land and heritage Revaluations of non-current physical assets assets are measured at fair value with regard to the property’s Non-financial physical assets are measured at fair value on highest and best use after due consideration is made for any a cyclical basis, in accordance with the FRDs issued by the legal or physical restrictions imposed on the asset, public Minister for Finance. A full revaluation normally occurs every announcements or commitments made in relation to the five years, based upon the asset’s government purpose intended use of the asset. Theoretical opportunities that may classification but may occur more frequently if fair value be available in relation to the asset are not taken into account assessments indicate material changes in values. Independent until it is virtually certain that the restrictions will no longer valuers are generally used to conduct these scheduled apply. Therefore, unless otherwise disclosed, the current use revaluations. Certain infrastructure assets are revalued using of these non-financial physical assets will be their highest and specialised advisors. Any interim revaluations are determined best uses. in accordance with the requirements of the FRDs. Revaluation The fair value of plant, equipment and vehicles, is normally increases or decreases arise from differences between an determined by reference to the asset’s depreciated asset’s carrying value and fair value. replacement cost. Net revaluation increases (where the carrying amount of a The cost of constructed non-financial physical assets includes class of assets is increased as a result of a revaluation) are the cost of all materials used in construction, direct labour recognised in ‘other economic flows – other comprehensive on the project, and an appropriate proportion of variable and income’, and accumulated in equity under the asset revaluation fixed overheads. surplus. However, the net revaluation increase is recognised in the net result to the extent that it reverses a net revaluation For the accounting policy on impairment of non-financial decrease in respect of the same class of property, plant physical assets, refer to Note 1(H) Impairment of non- and equipment previously recognised as an expense (other financial assets. economic flows) in the net result. More details about the valuation techniques and inputs used in Net revaluation decrease is recognised in ‘other economic determining the fair value of non-financial physical assets are flows – other comprehensive income’ to the extent that a credit discussed in Note 7 Property, plant and equipment. balance exists in the asset revaluation surplus in respect of the Leasehold improvements same class of property, plant and equipment. Otherwise, the net revaluation decreases are recognised immediately as other The cost of a leasehold improvement is capitalised as an asset economic flows in the net result. The net revaluation decrease and depreciated over the shorter of the remaining term of the recognised in ‘other economic flows – other comprehensive lease or the estimated useful life of the improvements. income’ reduces the amount accumulated in equity under the asset revaluation surplus. Restrictive nature of Crown land Revaluation increases and decreases relating to individual During the reporting period, SSCT also holds Crown land assets in a class of property, plant and equipment, are offset that SSCT intends to preserve because of their unique against one another in that class but are not offset in respect environmental attributes. of assets in different classes. The asset revaluation surplus is As there are limitations and restrictions imposed on Crown land not transferred to accumulated funds on derecognition of the use and/or disposal, they may impact the fair value of those relevant asset. assets, and should be taken into account when the fair value is determined.

38 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT Other non-financial assets Loans and receivables category includes cash and deposits (refer to Note 1(I)), term deposits with maturity greater than Prepayments and accrued income three months, trade receivables, loans and other receivables, Other non-financial assets include accrued income and but not statutory receivables. prepayments. Prepayments which represent payments Financial liabilities at amortised cost in advance of receipt of goods or services or that part of expenditure made in one accounting period covering a term Financial instrument liabilities are initially recognised on extending beyond that period. Accrued income must be the date they are originated. They are initially measured at recorded in the accounting period in which it is earned rather fair value plus any directly attributable transaction costs. than in the subsequent period in which it will be received. Subsequent to initial recognition, these financial instruments are measured at amortised cost with any difference between K. Financial instruments the initial recognised amount and the redemption value being recognised in profit and loss over the period of the interest Financial instruments arise out of contractual agreements bearing liability, using the effective interest rate method. that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Due to the Financial instrument liabilities measured at amortised cost nature of SSCT’s activities, certain financial assets and include all of SSCT’s contractual payables, deposits held and financial liabilities arise under statute rather than a contract. advances received, and interest bearing arrangements other Such financial assets and financial liabilities do not meet than those designated at fair value through profit or loss. the definition of financial instruments in AASB 132 Financial Instruments: Presentation. For example, statutory receivables L. Liabilities arising from taxes, fines and penalties do not meet the definition of financial instruments as they do not arise under Payables contract. However, guarantees issued by the Treasurer on Payables consist of: behalf of SSCT are financial instruments because, although authorised under statute, the terms and conditions for each • contractual payables, such as accounts payable and financial guarantee may vary and are subject to an agreement. including deferred income from concession notes. Accounts payable represent liabilities for goods and Where relevant, for note disclosure purposes, a distinction is services provided to SSCT prior to the end of the financial made between those financial assets and financial liabilities year that are unpaid, and arise when SSCT becomes that meet the definition of financial instruments in accordance obliged to make future payments in respect of the with AASB 132 and those that do not. purchase of those goods and services; and The following refers to financial instruments unless • statutory payables, such as goods and services tax and otherwise stated. fringe benefits tax payables. Categories of non-derivative financial instruments Contractual payables are classified as financial instruments and categorised as financial liabilities at amortised cost. Statutory Loans and Receivables payables are recognised and measured similarly to contractual Loans and receivables are financial instrument assets with fixed payables, but are not classified as financial instruments and not and determinable payments that are not quoted on an active included in the category of financial liabilities at amortised cost, market. These assets are initially recognised at fair value plus because they do not arise from a contract. any directly attributable transaction costs. Subsequent to initial measurement, loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 39 Annual Financial Statements

Notes to the financial statements For the financial year ended 30 June 2016

Provisions (ii) Long service leave Provisions are recognised when SSCT has a present obligation, Liability for long service leave (LSL) is recognised in the the future sacrifice of economic benefits is probable, and the provision for employee benefits. amount of the provision can be measured reliably. Unconditional LSL is disclosed in the notes to the financial The amount recognised as a provision is the best estimate of statements as a current liability, even where SSCT does the consideration required to settle the present obligation at not expect to settle the liability within 12 months because reporting date, taking into account the risks and uncertainties it will not have the unconditional right to defer the surrounding the obligation. Where a provision is measured settlement of the entitlement should an employee take using the cash flows estimated to settle the present obligation, leave within 12 months. its carrying amount is the present value of those cash flows, The components of this current LSL liability are measured at: using a discount rate that reflects the time value of money and risks specific to the provision. • nominal value – if SSCT expects to wholly settle within 12 months; and When some or all of the economic benefits required to settle a provision are expected to be received from a third party, the • present value – if SSCT does not expect to wholly settle receivable is recognised as an asset if it is virtually certain that within 12 months. recovery will be received and the amount of the receivable can Conditional LSL is disclosed as a non-current liability. be measured reliably. There is an unconditional right to defer the settlement of the entitlement until the employee has completed the Employee benefits requisite years of service. This non-current LSL liability is Provision is made for benefits accruing to employees in respect measured at present value. of wages and salaries, annual leave and long service leave for Any gain or loss following revaluation of the present value services rendered to the reporting date. of non-current LSL liability is recognised in the ‘net result (i) Wages and salaries, annual leave from transactions’, except to the extent that a gain or loss arises due to changes in bond interest rates for which it is Liabilities for wages and salaries, including non-monetary then recognised in the net result as an other economic flow benefits annual leave, are all recognised in the provision (refer to Note 1(H)). for employee benefits as ‘current liabilities’, because SSCT does not have an unconditional right to defer settlements (iii) Termination benefits of these liabilities. Termination benefits are payable when employment is Depending on the expectation of the timing of settlement, terminated before the normal retirement date, or when liabilities for wages and salaries and annual leave are an employee decides to accept an offer of benefits in measured at: exchange for the termination of employment. SSCT recognises termination benefits when it is demonstrably • nominal value – if SSCT expects to wholly settle within committed to either terminating the employment of 12 months; or current employees according to a detailed formal plan • present value – if SSCT does not expect to wholly settle without possibility of withdrawal or providing termination within 12 months. 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.

40 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT On-costs related to employee expenses In the event that lease incentives are given to the lessee, the aggregate cost of incentives are recognised as a reduction On-costs such as payroll tax, and workers compensation are of rental income over the lease term, on a straight-line basis recognised separately from the provision for employee benefits. unless another systematic basis is more representative of the time pattern over which the economic benefit of the leased Other liabilities asset is diminished. Other liabilities include deferred revenue and other revenue received in advance. Revenue received in advance is presented N. Equity in the subsequent accounting periods in which the services or obligations have been performed. Contributed capital Consistent with the requirements of AASB 1004 Contributions, M. Leases contributions by owners (that is, contributed capital and its A lease is a right to use an asset for an agreed period of time repayment) are treated as equity transactions and, therefore, in exchange for payment. do not form part of the income and expenses of SSCT. Leases are classified at their inception as either operating Additions to net assets which have been designated as or finance leases based on the economic substance of the contributions by owners are recognised as contributed agreement so as to reflect the risks and rewards incidental capital. Other transfers that are in the nature of contributions to ownership. Leases of property, plant and equipment are to or distributions by owners have also been designated as classified as finance infrastructure leases whenever the terms contributions by owners. of the lease transfer substantially all the risks and rewards of ownerships from the lessor to the lessee. All other leases are O. Commitments classified as operating leases. Commitments for future expenditure include operating and capital commitments arising from contracts. These Finance Lease commitments are disclosed by way of a note (refer to note 15 SSCT does not hold any finance leases. Capital expenditure commitments) at their nominal value and are inclusive of the GST payable. Operating Lease In addition, where it is considered appropriate and provides SSCT as lessee additional relevant information to users, the net present values of significant individual projects are stated. These future Operating lease payments are recognised as an expense in expenditures cease to be disclosed as commitments once the comprehensive operating statement on a straight-line the related liabilities are recognised on the balance sheet. basis over the lease term. The leased asset is not recognised in the balance sheet. SSCT does not hold any operating leases P. Contingent assets and contingent as lessee. liabilities SSCT as lessor Contingent assets and contingent liabilities are not recognised Rental income from operating leases is recognised on in the balance sheet, but are disclosed by way of note refer a straight-line basis over the term of the relevant lease. to Note 17 Contingent liabilities and, if quantifiable, are measured at nominal value. Contingent assets and contingent All incentives for the agreement of a new or renewed operating liabilities are presented inclusive of GST receivable or lease are recognised as an integral part of the net consideration payable respectively. agreed for the use of the leased asset, irrespective of the incentive’s nature or form or the timing of payments.

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 41 Annual Financial Statements

Notes to the financial statements For the financial year ended 30 June 2016

Q. Accounting for the Goods and Services R. Foreign currency balances/ Tax (GST) transactions Income, expenses and assets are recognised net of the amount All foreign currency transactions during the financial year are of associated GST, except where GST incurred is not recoverable brought to account using the exchange rate in effect at the from the taxation authority. In this case, the GST payable is date of the transaction. Foreign monetary items existing at the recognised as part of the cost of acquisition of the asset or as end of the reporting period are translated at the closing rate part of the expense. at the date of the end of the reporting period. Non-monetary assets carried at fair value that are denominated in foreign Receivables and payables are stated inclusive of the amount of currencies are translated to the functional currency at the rates GST receivable or payable. The net amount of GST recoverable prevailing at the date when the fair value was determined. from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet. Foreign currency translation differences are recognised in other economic flows and accumulated in a separate component of Cash flows are presented on a gross basis. The GST components equity, in the period in which they arise. of cash flows arising from investing or financing activities which are recoverable from, or payable to the taxation authority, are S. Events after the reporting period presented as an operating cash flow. There has not arisen in the interval between the end of Commitments and contingent assets and liabilities are also the financial year and the date of signing these financial stated inclusive of GST (refer to Note 1(O) and Note 1(P)). statements, any item, transactions or event of a material and unusual nature likely to affect significantly the operations of the SSCT, the results of those operations, or the state of affairs of the SSCT, in subsequent financial years.

42 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT T. Australian Accounting Standards issued that are not yet effective Certain new Australian accounting standards (AAS) have been published that are not mandatory for the 30 June 2016 reporting period. DTF assesses the impact of all these new standards and advises SSCT where applicable. As at 30 June 2016, the following standards and interpretations had been issued by the AASB but were not yet effective. They become effective for the first financial statements for reporting periods commencing after the stated operative dates as detailed in the following table. SSCT has not and does not intend to adopt these standards early.

Standard/ Summary Applicable to Annual Interpretation Reporting Period Beginning On AASB 15 Revenue from AASB 15: 01 January 2018 Contracts with Customers • establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers, with revenue recognised as ‘performance obligations’ are satisfied; and • will apply to contracts of NFP entities that are exchange transactions. AASB 1004 Contributions will continue to apply to non-exchange transactions until the Income for NFP project is completed. AASB 9 Financial AASB 9 was reissued in December 2014 and now incorporates: 01 January 2018 Instruments • the classification and measurement requirements for financial assets (including limited amendments) and for financial liabilities, and the recognition and derecognition requirements for financial instruments (representing the first phase of the three phase project that replaces AASB 139); • requirements for impairment of financial assets (representing the second phase); and • hedge accounting (representing the third phase). AASB 16 Leases The key changes introduced by AASB 16 include the recognition of most 01 January 2019 operating leases (which are currently not recognised) on balance sheet. AASB 1056 AASB 1056 replaces AAS 25 Financial Reporting by Superannuation Plans and Superannuation Entities applies to large superannuation entities regulated by the Australian Prudential Regulation Authority and to public sector superannuation entities. In relation to the matters it specifically addresses, AASB 1056 applies in place of the requirements of other AASs. On matters that AASB 1056 does not specifically address, the other AASs apply.

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 43 Annual Financial Statements

Notes to the financial statements For the financial year ended 30 June 2016

AASB 2010-7 The requirements for classifying and measuring financial liabilities were added 01 January 2018 Amendments to to AASB 9. The existing requirements for the classification of financial liabilities Australian Accounting and the ability to use the fair value option have been retained. However, where Standards arising from the fair value option is used for financial liabilities the change in fair value is AASB 9 (December 2010) accounted for as follows: • the change in fair value attributable to changes in credit risk is presented in other comprehensive income (OCI); and • other fair value changes are presented in profit and loss. If this approach creates or enlarges an accounting mismatch in the profit or loss, the effect of the changes in credit risk are also presented in profit or loss. AASB 2014-1 Amends various AASs to reflect the AASB’s decision to defer the mandatory 01 January 2018 Amendments to application date of AASB 9 to annual reporting periods beginning on or after Australian Accounting 1 January 2018 as a consequence of Chapter 6 Hedge Accounting, and to Standards [Part E amend reduced disclosure requirements. Financial Instruments] AASB 2014-7 Amends various AASs to incorporate the consequential amendments arising 01 January 2018 Amendments to from the issuance of AASB 9. Australian Accounting Standards arising from AASB 9 AASB 14 Regulatory AASB 14 permits first-time adopters of Australian Accounting Standards who 01 January 2016 Deferral Accounts conduct rate-regulated activities to continue to account for amounts related to rate regulation in accordance with their previous GAAP. AASB 15 Revenue from The core principle of AASB 15 requires an entity to recognise revenue when the 01 January 2018 Contracts with Customers entity satisfies a performance obligation by transferring a promised good or service to a customer. AASB 2014-5 Amends the measurement of trade receivables and the recognition of dividends. 01 January 2017 Amendments to Trade receivables, that do not have a significant financing component, are to be Australian Accounting measured at their transaction price, at initial recognition. Standards arising from Dividends are recognised in the profit and loss only when: AASB 15 • the entity’s right to receive payment of the dividend is established; • it is probable that the economic benefits associated with the dividend will flow to the entity; and • the amount can be measured reliably. AASB 2015-8 This Standard defers the mandatory effective date of AASB 15 from 1 January 01 January 2018 Amendments to 2017 to 1 January 2018. Australian Accounting Standards – Effective Date of AASB 15

44 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT AASB 2016-3 This Standard amends AASB 15 to clarify the requirements on identifying 01 January 2018 Amendments to performance obligations, principal versus agent considerations and the timing Australian Accounting of recognising revenue from granting a licence. The amendments require: Standards – Clarifications • s promise to transfer to a customer a good or service that is ‘distinct’ to be to AASB 15 recognised as a separate performance obligation; • for items purchased online, the entity is a principal if it obtains control of the good or service prior to transferring to the customer; and For licences identified as being distinct from other goods or services in a contract, entities need to determine whether the licence transfers to the customer over time (right to use) or at a point in time (right to access). AASB 2014-4 Amends AASB 116 Property, Plant and Equipment and AASB 138 Intangible 01 January 2016 Amendments to Assets to: Australian Accounting • establish the principle for the basis of depreciation and amortisation as Standards – Clarification being the expected pattern of consumption of the future economic benefits of Acceptable Methods of an asset; of Depreciation and prohibit the use of revenue based methods to calculate the depreciation or Amortisation [AASB 116 amortisation of an asset, tangible or intangible, because revenue generally & AASB 138] reflects the pattern of economic benefits that are generated from operating the business, rather than the consumption through the use of the asset. AASB 2014-9 Amends AASB 127 Separate Financial Statements to allow entities to use the 01 January 2016 Amendments to equity method of accounting for investments in subsidiaries, joint ventures Australian Accounting and associates in their separate financial statements. Standards – Equity Method in Separate Financial Statements [AASB 1, 127 & 128 AASB 2015-6 The Amendments extend the scope of AASB 124 Related Party Disclosures 01 January 2016 Amendments to to not-for-profit public sector entities. A guidance has been included to assist Australian Accounting the application of the Standard by not-for-profit public sector entities. Standards – Extending Related Party Disclosures to Not-for- Profit Public Sector Entities [AASB 10, AASB 124 & AASB 1049] AASB 2016-4 The standard amends AASB 136 Impairment of Assets to remove references 01 January 2017 Amendments to to using depreciated replacement cost (DRC) as a measure of value in use for Australian Accounting not-for-profit entities. Standards – Recoverable Amount of Non-Cash- Generating Specialised Assets of Not-for-Profit Entities

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 45 Annual Financial Statements

Notes to the financial statements For the financial year ended 30 June 2016

In addition to the new standards and amendments above, the • AASB 2015-9 Amendments to Australian Accounting AASB has issued a list of other amending standards that are Standards – Scope and Application Paragraphs [AASB 8, not effective for the 2015-16 reporting period (as listed below). AASB 133 & AASB 1057] In general, these amending standards include editorial and • AASB 2015-10 Amendments to Australian Accounting references changes that are expected to have insignificant Standards – Effective Date of Amendments to AASB 10 impacts on public sector reporting. and AASB 128 • AASB 1056 Superannuation Entities • AASB 2016-1 Amendments to Australian Accounting • AASB 1057 Application of Australian Accounting Standards Standards – Recognition of Deferred Tax Assets for Unrealised Losses [AASB 112] • AASB 2014-1 Amendments to Australian Accounting Standards [PART D – Consequential Amendments arising • AASB 2016-2 Amendments to Australian Accounting from AASB 14 Regulatory Deferral Accounts only] 2 Standards – Disclosure Initiative: Amendments to AASB 107 • AASB 2014-3 Amendments to Australian Accounting Standards – Accounting for Acquisitions of Interests in Notes: Joint Operations [AASB 1 & AASB 11] 1. For the current year, given the number of consequential amendments • AASB 2014-6 Amendments to Australian Accounting to AASB 9 Financial Instruments and AASB 15 Revenue from Contracts Standards – Agriculture: Bearer Plants [AASB 101, AASB with Customers, the standards/interpretations have been grouped 116, AASB 117, AASB 123, AASB 136, AASB 140 & AASB 141] together to provide a more relevant view of the upcoming changes. • AASB 2015-2 Amendments to Australian Accounting 2. This Standard or Amendment may not be relevant to Victorian not-for-profit entities when operative. Standards – Disclosure Initiative: Amendments to AASB 101 [AASB 7, AASB 101, AASB 134 & AASB 1049] • AASB 2015-5 Amendments to Australian Accounting Standards – Investment Entities: Applying the Consolidation Exception [AASB 10, AASB 12, AASB 128] 2

46 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT Note 2. Going concern The financial statements of SSCT have been prepared on a going concern basis. The trustees of the State Sport Centres Trust are of the opinion that SSCT will be able to pay its debts as and when they fall due. The Department of Health and Human Service has confirmed that both operational and capital funding granted to SSCT by the previous government will be honoured in the amount of $22.2 million until the expiry of the funding agreement in 2017/2018.

Note 3. Income from transactions MSAC SNHC SSCT MSAC SNHC SSCT 2016 2016 2016 2015 2015 2015 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 (a) Sale of goods and services Sale of goods and services 17,854 2,440 20,294 17,507 2,562 20,069 Total sale of goods and services 17,854 2,440 20,294 17,507 2,562 20,069

(b) Government Grant Specific and general purpose grants 2,404 - 2,404 1,641 - 1,641 Total grants 2,404 - 2,404 1,641 - 1,641 20,258 2,440 22,698 19,148 2,562 21,710

(c) Interest Interest from cash and deposits 45 9 54 87 30 117 Total Interest 45 9 54 87 30 117

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 47 Annual Financial Statements

Notes to the financial statements For the financial year ended 30 June 2016

Note 4. Expenses from transactions

MSAC SNHC SSCT MSAC SNHC SSCT 2016 2016 2016 2015 2015 2015 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 (a) Employee expenses Salaries, wages, annual leave and long service leave expenses 9,746 820 10,566 9,305 774 10,079 Defined contribution superannuation expense 863 60 923 834 54 888 Other employee expenses 868 31 899 732 61 793 Total employee expenses 11,477 911 12,388 10,871 889 11,760

(b) Other operating expenses Cleaning and chemical expenses 1,502 429 1,931 1,532 422 1,954 Other operating supplies expenses 2,053 90 2,143 1,459 89 1,548 Utilities and energy expenses 1,990 189 2,179 1,854 218 2,072 Cost of goods sold expenses 1,386 327 1,713 1,432 380 1,812 Maintenance expenses 943 205 1,148 926 151 1,077 IT & Telecommunication expenses 676 130 806 644 111 755 Insurance expenses 391 63 454 424 78 502 Sports rebate expenses 761 9 770 779 - 779 Security expenses 395 39 434 369 37 406 Total other operating expenses 10,097 1,481 11,578 9,419 1,486 10,905

(c) Depreciation Depreciation of property, plant & equipment Buildings 4,775 1,011 5,786 4,775 1,012 5,787 Plant and equipment 3,205 317 3,522 3,045 311 3,356 Total depreciation 7,980 1,328 9,308 7,820 1,323 9,143 Total Expenses 29,554 3,720 33,274 28,110 3,698 31,808

48 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT Note 5. Cash and Deposits For the purposes of the cash flow statement, cash assets includes cash on hand and in banks, and short-term deposits which are readily convertible to cash on hand, and are subject to an insignificant risk of change in value, net of outstanding bank overdrafts.

MSAC SNHC SSCT MSAC SNHC SSCT 2016 2016 2016 2015 2015 2015 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 Cash at bank 3,188 839 4,027 2,284 993 3,277 Total Cash and Deposits 3,188 839 4,027 2,284 993 3,277

Note 6. Receivables

MSAC SNHC SSCT MSAC SNHC SSCT 2016 2016 2016 2015 2015 2015 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 Current receivable Contractual Trade debtors 846 61 907 2,761 19 2,780 Less Provision for doubtful contractual receivables (a) (33) - (33) (32) - (32) Interest receivable 4 3 7 2 3 5 817 64 881 2,731 22 2,753 Statutory GST Receivable 96 19 115 364 82 446 Total Current Receivables 913 83 996 3,095 104 3,199 Total Receivables 913 83 996 3,095 104 3,199

(a) Movement in the provision for doubtful contractual receivables Balance at beginning of the financial year (32) - (32) (26) - (26) Increase in provision recognised in operating statement (1) - (1) (6) - (6) Balance at end of the financial year (33) - (33) (32) - (32)

(b) Ageing analysis of contractual receivables Please refer to Note 21 (Table 21.4) for the ageing analysis of contractual receivables.

(c) Nature and extent of risk arising from contractual receivables Please refer to Note 21 for the nature and extent of risk arising from contractual receivables.

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 49 Annual Financial Statements

Notes to the financial statements For the financial year ended 30 June 2016

Note 7. Property, plant, and equipment

MSAC SNHC SSCT MSAC SNHC SSCT 2016 2016 2016 2015 2015 2015 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 (a) Classification by ‘public administration’ purpose group - carrying amount Land at fair value 66,881 32,864 99,745 54,935 27,386 82,321 Buildings at fair value 210,873 32,608 243,481 216,183 33,237 249,420 Plant & equipment at fair value 3,175 217 3,392 3,739 298 4,037 Work in Progress at cost 220 97 317 128 26 154 Net carrying amount of PPE 281,149 65,786 346,935 274,985 60,947 335,932

(b) Gross carrying amount and accumulated depreciation Crown Land At fair value (a) 66,881 32,864 99,745 54,935 27,386 82,321 66,881 32,864 99,745 54,935 27,386 82,321 Buildings At fair value (b) 240,889 38,366 279,255 239,074 37,748 276,822 Less: Accumulated depreciation (30,016) (5,758) (35,774) (22,891) (4,511) (27,402) 210,873 32,608 243,481 216,183 33,237 249,420 Plant & equipment at fair value At fair value 14,592 2,944 17,536 14,645 2,944 17,589 Less: Accumulated depreciation (11,417) (2,727) (14,144) (10,906) (2,646) (13,552) 3,175 217 3,392 3,739 298 4,037 Capital Work in Progress At cost 220 97 317 128 26 154 220 97 317 128 26 154 Total property, plant and equipment 281,149 65,786 346,935 274,985 60,947 335,932

(a) Fair value assessments have been performed for land as per Valuer-General Victoria vacant land indexation factors for the Financial Year ended – 30/06/2016. The decision was made that movements are material (more than 10%) for a managerial revaluation. The land revaluation surplus $17,423,597 has been adjusted on 30 June 2016. (b) The fair value of buildings belonging to the SSCT was assessed as at 30 June 2016 based on the building cost indexation factors that were published by the Department of Treasury and Finance, Victoria. The net movements for buildings since the last formal valuation conducted in 2012 was 10%. Management decided that the revaluation adjustment would be conducted in 2016-2017 as part of the next scheduled full revaluation. (c) The net movements for land since the last formal valuation conducted in 2012 was greater than 10%, hence a managerial revaluation was conducted in June 2016. The fair value of the land was revalued by applying the relevant compounded indexation factors and as a result the land value increased by $17,423,597.

50 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT (c) Movements in carrying amount of property plant and equipment for SSCT (i) LAND BUILDINGS PLANT & EQUIPMENT WORK IN PROGRESS AT FAIR VALUE AT FAIR VALUE AT FAIR VALUE AT COST MSAC SNHC SSCT MSAC SNHC SSCT MSAC SNHC SSCT MSAC SNHC SSCT $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 Balance at 1 Jul 2014 54,935 24,390 79,325 218,972 33,560 252,532 4,712 448 5,160 474 7 481 Fair value of assets ------received free of charge or for nominal considerations Additions - - - 3,623 850 4,473 89 - 89 - 19 19 Transfer/Disposals - - - 346 - 346 - - - (346) - (346) Revaluation of PPE - 2,996 2,996 ------Impairment of assets ------Depreciation - - - (6,758) (1,173) (7,931) (1,062) (150) (1,212) - - - Balance at 30 Jun 2015 54,935 27,386 82,321 216,183 33,237 249,420 3,739 298 4,037 128 26 154

Land Buildings Plant & equipment Work in progress at fair value at fair value at fair value at cost MSAC SNHC SSCT MSAC SNHC SSCT MSAC SNHC SSCT MSAC SNHC SSCT $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 Balance at 1 Jul 2015 54,935 27,386 82,321 216,183 33,237 249,420 3,739 298 4,037 128 26 154 Fair value of assets ------received free of charge or for nominal considerations Additions/Deductions - - - 1,823 618 2,441 283 - 283 21,315 12,213 33,528 Transfer/Disposals ------(21,224) (12,142) (33,366) Revaluation of PPE 11,947 5,477 17,424 ------Impairment of assets ------Depreciation - - - (7,133) (1,247) (8,380) (846) (82) (928) - - - Balance at 30 Jun 2016 66,882 32,863 99,745 210,873 32,608 243,481 3,176 216 3,392 219 97 316

(i) Fair value of assessments have been performed for land, as per Valuer-General Victoria vacant land indexation factors for the Financial Year ended – 30/06/2016. The decision was made that movements are material (more than 10%) for a management revaluation. The land revaluation surplus $17,423,597 has been adjusted on 30 June 2016. Fair value assessments have been performed for other classes of assets in this purpose group and the decision was made that movements were not material (equal to 10 per cent) for a full revaluation. The next scheduled revaluation for this purpose group will be conducted in 2017.

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 51 Annual Financial Statements

Notes to the financial statements For the financial year ended 30 June 2016

Note 7. Property, plant, and equipment (continued)

(d) Aggregate depreciation recognised as an expense during the year MSAC SNHC SSCT MSAC SNHC SSCT 2016 2016 2016 2015 2015 2015 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 Buildings (4,783) (1,011) (5,794) (6,758) (1,173) (7,931) Plant and equipment (3,197) (317) (3,514) (1,062) (150) (1,212) Total (7,980) (1,328) (9,308) (7,820) (1,323) (9,143)

Restricted assets The SSCT holds $343 million worth of properties listed as specialised land and specialised buildings. These specialised land and specialised buildings cannot be disposed of without formal ministerial approval.

(e) Fair value measurement hierarchy for assets as at 30 June 2016 CARRYING AMOUNT FAIR VALUE MEASUREMENT ($ THOUSAND) AS AT AT END OF REPORTING PERIOD USING: Level 1(i) Level 2(i) Level 3(i) 30-Jun-16 30-Jun-15 2016 2015 2016 2015 2016 2015 Land at fair value Specialised land 99,745 82,321 - - - - 99,745 82,321 Total of land at fair value 99,745 82,321 - - - - 99,745 82,321

Buildings at fair value Specialised buildings 243,481 249,420 - - - - 243,481 249,420 Total of buildings at fair value 243,481 249,420 - - - - 243,481 249,420

Plant & equipment at fair value Plant and equipment 3,392 4,037 - - - - 3,392 4,037 Total of plant, equipment 3,392 4,037 - - - - 3,392 4,037 and vehicles at fair value

(i) Classified in accordance with the fair value hierarchy, see Note 1(B).

52 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT Specialised land and specialised buildings The market approach is also used for specialised land, although is adjusted for the community service obligation (CSO) to reflect the specialised nature of the land being valued. 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. This approach is in light of the highest and best use consideration required for fair value measurement, and takes into account the use of the asset that is physically possible, legally permissible, and financially feasible. As adjustments of CSO are considered as significant unobservable inputs, specialised land would be classified as Level 3 assets. For the majority of the Department’s specialised buildings, the depreciated replacement cost method is used, adjusting for the associated depreciations. As depreciation adjustments are considered as significant, unobservable inputs in nature, specialised buildings are classified as Level 3 fair value measurements. An independent valuation of the SSCT’s specialised land and specialised buildings was performed by the Valuer General Victoria. The effective date of the valuation is 30 June 2012.

Plant and equipment Plant and equipment is held at fair value. When plant and equipment is specialised in use, such that it is rarely sold other than as part of a going concern, fair value is determined using the depreciated replacement cost method. There were no changes in valuation techniques throughout the period to 30 June 2016. For all assets measured at fair value, the current use is considered the highest and best use.

(f) Reconciliation of level 3 fair value SPECIALISED SPECIALISED PLANT & LAND BUILDINGS EQUIPMENT 2016 2015 2016 2015 2016 2015 Opening balance 82,321 79,325 249,420 252,532 4,037 5,160 Purchases (sales) - - 2,441 4,819 283 89 Gains or losses recognised in net result ------Depreciations - - (8,380) (7,931) (928) (1,212) Impairment loss ------Subtotal 82,321 79,325 243,481 249,420 3,392 4,037 Gains or losses recognised in other economic ------flows – other comprehensive income Revaluation 17,424 2,996 - - - - Subtotal 17,424 2,996 - - - - Closing balance 99,745 82,321 243,481 249,420 3,392 4,037 There were no transfers between levels throughout the period to 30 June 2016.

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 53 Annual Financial Statements

Notes to the financial statements For the financial year ended 30 June 2016

Note 7. Property, plant, and equipment (continued)

(g) Description of significant unobservable inputs to Level 3 valuations VALUATION TECHNIQUE SIGNIFICANT UNOBSERVABLE INPUTS

Specialised land Market approach Community Service Obligation (CSO) adjustment Specialised buildings Depreciated replacement cost Direct cost per square metre Useful life of specialised buildings Plant & equipment Depreciated replacement cost Cost per unit Useful life of vehicles

(i) CSO adjustments ranging from 75% to 80% were applied to reduce the market approach value for SSCT specialised land.

Note 8. Inventories

MSAC SNHC SSCT MSAC SNHC SSCT 2016 2016 2016 2015 2015 2015 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 Current Supplies and consumables - at cost 115 20 135 105 19 124 115 20 135 105 19 124

54 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT Note 9. Other Non-financial assets

MSAC SNHC SSCT MSAC SNHC SSCT 2016 2016 2016 2015 2015 2015 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 Current other assets Accrued income 130 - 130 53 - 53 Prepayments 120 18 138 138 16 154 Total other non-financial assets 250 18 268 191 16 207

Note 10. Payables

MSAC SNHC SSCT MSAC SNHC SSCT 2016 2016 2016 2015 2015 2015 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 Current Payables Contractual Trade creditors 1,565 144 1,709 1,069 64 1,133 Accrued expenses 830 159 989 524 134 658 2,395 303 2,698 1,593 198 1,791 Statutory Taxes payable 114 29 143 360 69 429 Superannuation payable 65 - 65 243 - 243 179 29 208 603 69 672 Total Payables 2,574 332 2,906 2,196 267 2,463

(a) Maturity analysis of contractual payables Please refer to Note 21 (Table 21.5) for the maturity analysis of contractual payables.

(b) Nature and extent of risk arising from contractual payables Please refer to Note 21 for the nature and extent of risk arising from contractual payables.

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 55 Annual Financial Statements

Notes to the financial statements For the financial year ended 30 June 2016

Note 11. Provisions

MSAC SNHC SSCT MSAC SNHC SSCT 2016 2016 2016 2015 2015 2015 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 Current Employee benefits (a) Annual leave Unconditional and expected to settle within 12 months 266 9 275 289 16 305 Unconditional and expected to settle after 12 months 93 10 103 65 - 65 Long service leave Unconditional and expected to settle within 12 months 320 19 339 246 - 246 Unconditional and expected to settle after 12 months - - - 50 4 54 PROVISIONS FOR ON-COSTS AND LIFE MEMBERSHIP Unconditional and expected to settle within 12 months 100 5 105 97 3 100 Unconditional and expected to settle after 12 months 17 2 19 21 - 21 Life memberships 5 - 5 6 - 6 Total current provisions 801 45 846 774 23 797

NON-CURRENT AND LIFE MEMBERSHIP Employee benefits (b) 108 8 116 80 1 81 Employee benefit on-costs 18 1 19 15 - 15 Life memberships 6 - 6 6 - 6 Total non-current provisions 132 9 141 101 1 102 Total provisions 933 54 987 875 24 899

(a) Employee benefits and on-costs Current employee benefits Annual leave 359 19 378 354 16 370 Long Service Leave 320 19 339 296 4 300

(b) Non-current employee benefits Long service leave entitlements 108 8 116 80 1 81 Total employee benefits 787 46 833 730 21 751

Current Employee benefit on-costs and life membership 122 7 129 124 3 127 Non-current Employee benefit on-costs and life membership 24 1 25 21 - 21 Total on-costs 146 8 154 145 3 148 Total employee benefits and on-costs 933 54 987 875 24 899

56 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT (c) Movement in provision on cost SSCT SSCT 2016 2015 ($ THOUSAND) $ ‘000 $ ‘000 Opening balance 136 127 Additional provisions recognised 3 9 Closing balance 139 136

Note 12. Other liabilities

MSAC SNHC SSCT MSAC SNHC SSCT 2016 2016 2016 2015 2015 2015 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 Current Deferred revenue 722 96 818 784 80 864 Advancement 950 - 950 1,500 - 1,500 Total current other liabilites 1,672 96 1,768 2,284 80 2,364

Non-current Advancement 2,472 - 2,472 3,022 - 3,022 Total Non-current other liabilites 2,472 - 2,472 3,022 - 3,022 Total other liabilites 4,144 96 4,240 5,306 80 5,386

Note 13. Leases

MSAC SNHC SSCT MSAC SNHC SSCT 2016 2016 2016 2015 2015 2015 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 Disclosure of operating leases Operating lease receivables Operating lease receivables relate to 25 tenants (19 in 2014-15) within the Trust’s precinct with lease terms between 2 years to 20 years Receivable no later than one year 675 - 675 515 - 515 Later than one year and not later than five years 1,359 - 1,359 874 - 874 Later than five years 3,281 - 3,281 507 - 507 5,315 - 5,315 1,896 - 1,896

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 57 Annual Financial Statements

Notes to the financial statements For the financial year ended 30 June 2016

Note 14. Equity

MSAC SNHC SSCT MSAC SNHC SSCT 2016 2016 2016 2015 2015 2015 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 Physical asset revaluation surplus The physical asset revaluation surplus is used to record increments and decrements on the revaluation of non-financial assets, as described in Note 1(j). Balance at beginning of financial year 78,732 42,040 120,772 78,732 39,044 117,776 Revaluation increments during the year 11,946 5,477 17,423 - 2,996 2,996 Balance at end of financial year 90,678 47,517 138,195 78,732 42,040 120,772

Note 15. Capital expenditure commitments The following commitments have not been recognized as liabilities in the financial statements. All amounts shown in the commitments note are nominal amounts inclusive of GST. SSCT has $348,240 commitments for capital works at the date of this report ($1,014,392 in 2014-2015). These commitments will be paid within a one year period.

MSAC SNHC SSCT MSAC SNHC SSCT 2016 2016 2016 2015 2015 2015 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 Capital expenditure commitments As at reporting date, SSCT had made the following commitments for capital expenditure (GST inclusive): Not later than one year 242 106 348 482 532 1,014 242 106 348 482 532 1,014

58 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT Note 16. Cash flow information

MSAC SNHC SSCT MSAC SNHC SSCT 2016 2016 2016 2015 2015 2015 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 (a) Reconciliation of cash Cash at bank and on hand 3,188 839 4,027 2,284 993 3,277 Term deposits ------Balance as per cash flow statement 3,188 839 4,027 2,284 993 3,277

(b) Reconciliation of net result for the period Net result for the period (9,240) (1,271) (10,511) (8,875) (1,106) (9,981)

Non-cash movements: Depreciation of property, plant & equipment 7,980 1,328 9,308 7,820 1,323 9,143

Movements in assets and liabilities: Decrease in receivables 2,181 21 2,202 (2,329) (41) (2,370) Decrease/(Increase) in inventories (10) (1) (11) 8 - 8 Decrease/(Increase) in other assets (59) (2) (61) 66 (3) 63 (Decrease)/Increase in provisions (5) 30 25 64 (14) 50 (Decrease)/Increase in payables 378 65 443 (545) 47 (498) (Decrease)/ Increase in other liabilities (1,162) 16 (1,146) (175) 36 (139) Net cash flows from operating activities 52 186 238 (3,966) 242 (3,724)

Note 17. Contingent liabilities a. Contingent liabilities There are no contingent liabilities as at 30 June 2016 (2015: $35,000)

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 59 Annual Financial Statements

Notes to the financial statements For the financial year ended 30 June 2016

Note 18. Responsible persons In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management Act 1994, the following disclosures are made regarding responsible persons for the reporting period. The persons who held the positions of Minister, Board Members and Accountable Officer of SSCT at any time during the reporting period were as follows:

Responsible Ministers Period The Honourable Mr. John Eren, MP, Minister for Sport 01/07/2015 - 30/06/2016 The Honourable Ms. Jill Hennessy, Minister for Health, Minister for Ambulance 01/07/2015 - 30/06/2016 The Honourable Mr. Martin Foley, Minister for Housing, Disability and Ageing 01/07/2015 - 30/06/2016 Members of the SSCT: Mr. Michael Taylor Chairman (finished 31 July 2015) Ms. Leigh Russell (finished 26 August 2015) Ms. Gaye Hamilton Chairman (commenced as Chairman Ms. Danni Roche 15 December 2015) (finished as Chairman 29 June 2016) Mr. Jack Diamond (commenced 26 April 2016) Mr. Brett Moore (commenced as Interim Chairman 30 June 2016) Mr. Andrew Fried (finished 23 October 2015) Ms. Patsy Toop (commenced 26 April 2016) Ms. Nicole Livingstone (finished 31 May 2016) Ms. Kimberley Brown (commenced 9 February 2016) Accountable Officer: Mr. Phil Meggs Chief Executive Officer (commenced 14 April 2016) Accountable Officer: Mr Simon Weatherill Chief Executive Officer (finished 27 November 2015) Remuneration relating to the Ministers is included in the financial statements of the Department of Premier and Cabinet. Remuneration of Board Members and Accountable Officer are included below in the remuneration of responsible persons. Remuneration received or receivable by the accountable officer in connection with the management of SSCT during the reporting period was in the range: $300,000 - 309,999 and $60,000 - $69,000 ($330,000 - $339,999 in 2014-15).

a. Remuneration of responsible persons The number of responsible persons whose income from the SSCT during the reporting period falls within the following bands is:

2016 2015 Remuneration Range: $0 - $9,999 6 - $10,000 - $19,999 4 6 $20,000 - $29,999 - 1 $60,000 - $69,999 1 - $300,000 - $309,999 1 - $310,000 - $329,999 - 1 Total Numbers 12 8 Total remuneration received, or due and receivable by Responsible Persons Total Remuneration 439,092 429,232 SSCT had no related party transaction in relation to the trust member’s related party in 2015-2016.

60 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT b. Remuneration of executive officers The number of executive officers, other than the Minister, Board Members and Accountable Officer who are included in remuneration of responsible persons, and their total remuneration during the reporting period are shown in the table below in their relevant income bands, where greater than $100,000. Base remuneration is exclusive of bonus payments, long service leave payments, redundancy payments and retirement benefits.

Total Remuneration Base Remuneration 2016 2015 2016 2015 Remuneration Range: $130,000 - $139,999 - - 1 1 $140,000 - $149,999 - 1 - 1 $150,000 - $159,999 - 1 1 - $160,000 - $169,999 1 - 1 1 $170,000 - $179,999 1 1 - - $180,000 - $189,999 1 - - - $220,000 - $229,999 - - - 1 $230,000 - $239,999 - - 1 - $240,000 - $249,999 - 1 - - $250,000 - $259,999 1 - - - Total Numbers 4 4 4 4 Total Annualised Employee Equivalents 4 4 4 4 Total Remuneration 777,665 $718,711 695,727 $659,558

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 61 Annual Financial Statements

Notes to the financial statements For the financial year ended 30 June 2016

Note 19. Superannuation Employees of SSCT are entitled to receive superannuation benefits. Contributions are made to the VicSuper Fund as the SSCT’s default fund, and to other funds elected by employees under Super choices legislation. Superannuation contributions paid or payable for the reporting period are included as part of employee expenses in the comprehensive operating statement of SSCT. The name, details and amounts expensed in relation to the major employee superannuation funds and contributions made by SSCT are shown in the table below. Other funds represent all other employee funds with a total contribution made below $10,000 for the year.

Paid contributions Contributions outstanding for the year for the year Total 2016 2015 2016 2015 2016 2015 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 Defined contribution plans: VicSuper 949 467 39 143 988 610 Hostplus Super 47 86 - 25 47 111 AustralianSuper 56 70 - 30 56 100 Rest Superannuation 8 42 - 2 8 44 Other funds 150 203 26 43 176 246 1,210 868 65 243 1,275 1,111 The difference between note 4 and note 19 is that note 19 includes both employee superannuation contribution and salary sacrifice contributions.

Note 20. Remuneration of auditors Audit fees paid or payable to the Victorian Auditor-General’s Office (VAGO) for the audit of the SSCT’s financial report is set out below in the following table:

SSCT SSCT 2016 2015 $ ‘000 $ ‘000 Victorian Auditor – General’s Office Audit of the financial report 39 38 39 38

62 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT Note 21. Financial instruments a. Financial risk management objectives and policies SSCT’s principal financial instruments comprise of; • cash and deposits; • receivables; (excluding statutory receivables) • payables (excluding statutory receivables); and other liabilities. 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 recognized, with respect to each class of financial asset, financial liability and equity instrument above are disclosed in Note 1 to the financial statements. The main purpose in holding financial instruments is to prudentially manage SSCT’s financial risks within the Government policy parameters. SSCT’s main financial risks include credit risk, liquidity risk, interest rate risk, SSCT manages these financial risks inaccordance with its financial risk management policy. The carrying amounts of SSCT’s contractual financial assets and liabilities by category are shown in table 21.1.

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 63 Annual Financial Statements

Notes to the financial statements For the financial year ended 30 June 2016

Note 21. Financial instruments (continued)

Table 21.1: Categorisation of financial instruments

Contractual financial assets Contractual financial loans and receivables liabilities at amortised cost Total 2016 $ ‘000 $ ‘000 $ ‘000 Contractual financial assets Cash and deposits 4,027 - 4,027 Receivables (i) 881 - 881 Total contractual financial assets 4,908 - 4,908

Contractual financial liabilities Payables (ii) - 2,687 2,687 Other liabilities - 3,422 3,422 Total contractual financial liabilities - 6,109 6,109

2015 Contractual financial assets Cash and deposits 3,277 - 3,277 Receivables (i) 2,753 - 2,753 Total contractual financial assets 6,030 - 6,030

Contractual financial liabilities Payables (ii) - 1,791 1,791 Other liabilities - 4,522 4,522 Total contractual financial liabilities - 6,313 6,313 (i) The total amount of financial assets disclosed here excludes statutory receivables. (ii) The total amount of financial liabilities disclosed here excludes statutory payables (i.e. Taxes payable).

64 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT Table 21.2: Net holding gain/(loss) on financial instruments by category The net holding gains or losses disclosed below in table 21.2 are determined as follows: • For cash and cash equivalents, loans or receivables and available for sale financial assets, the net gain or loss is calculated by taking the movement in the fair value of the asset, the interest income, plus or minus foreign exchange gains or losses arising from revaluation of the financial assets, and minus any impairment recognised in the net result; • For financial liabilities measured at amortised cost, the net gain or loss is calculated by taking the interest expense, plus or minus foreign exchange gains or losses arising from the revaluation of financial liabilities measured at amortised cost.

Total interest Net holding income / Fee income / Impairment gain/(loss) (expense) (expense) loss Total 2016 $’000 $’000 $’000 $’000 $’000 Contractual financial assets Financial assets – loans and receivables - 54 - - 54 Total contractual financial assets - 54 - - 54

2015 Contractual financial assets Financial assets – loans and receivables - 117 - - 117 Total contractual financial assets - 117 - - 117

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 65 Annual Financial Statements

Notes to the financial statements For the financial year ended 30 June 2016

Note 21. Financial instruments (continued)

b. Credit risk Credit risk arises from the contractual financial assets of SSCT, which comprise cash and deposits, non statutory receivables. SSCT’s exposure to credit risk arises from the potential default of a counter party on their contractual obligations resulting in financial loss to SSCT. Credit risk is measured at fair value and is monitored on a regular basis. For debtors other than the Government, it is SST’s policy to only deal with entities with high credit ratings of a minimum triple-B rating and to obtain sufficient collateral or credit enhancements, where appropriate. In addition SSCT doesn’t engage in hedging for its contractual financial assets and mainly obtains contractual financial assets that are fixed interest, except for cash and deposits, which are mainly cash at bank. Provision of impairment for contractual financial assets is recognised when there is objective evidence that SSCT will not be able to collect a receivable. Objective evidence includes financial difficulties of the debtor, default payments, debts which are more than 60 days overdue, and changes in debtor 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 SSCT’s maximum exposure to credit risk without taking account of the value of any collateral obtained.

Table 21.3: Credit quality of contractual financial assets that are neither past due nor impaired

Financial Government Government Other institutions agencies agencies (min BBB (AA- credit rating) (AAA credit rating) (BBB credit rating) credit rating) Total 2016 $’000 $’000 $’000 $’000 $’000 Cash and deposits 4,027 - - - 4,027 Trade debtors - - - 874 874 Interest receivable 7 - - - 7 Total contractual financial assets 4,034 - - 874 4,908

2015 Cash and deposits 3,277 - - - 3,277 Trade debtors - - - 2,748 2,748 Interest receivable 5 - - - 5 Total contractual financial assets 3,282 - - 2,748 6,030

66 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT Table 21.4: Ageing analysis of contractual financial assets

Past due but not impaired Carrying Not past due and Less than 3 months amount not impaired 1 month 1 - 3 months - 1 year 1 - 5 years 2016 $’000 $’000 $’000 $’000 $’000 $’000 Cash and deposits 4,027 4,027 - - - - Trade debtors 874 - 757 30 87 - Interest receivable 7 - 7 - - - Total 4,908 4,027 764 30 87 -

2015 Cash and deposits 3,277 3,277 - - - - Trade debtors 2,748 - 2,720 17 11 - Interest receivable 5 - 5 - - - Total 6,030 3,277 2,725 17 11 - c. Liquidity risk Liquidity risk is the risk that SSCT would be unable to meet its financial obligations as and when they fall due. SSCT 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. SSCT’s maximum exposure to liquidity risk is the carrying amounts of financial liabilities as disclosed in the face of the balance sheet. SSCT manages its liquidity risk by: • maintaining an adequate level of uncommitted funds that can be drawn at short notice to meet its short-term obligations; • careful maturity planning of its financial obligations based on forecasts of future cash flows. SSCT’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 carrying amount detailed in the following table of contractual financial liabilities recorded in the financial statements, represents SSCT’s maximum exposure to liquidity risk.

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 67 Annual Financial Statements

Notes to the financial statements For the financial year ended 30 June 2016

Note 21. Financial instruments (continued)

The following table 21.5 discloses the contractual maturity analysis of contractual financial liabilities:

Table 21.5: Maturity analysis of contractual financial liabilities

Past due but not impaired Carrying Less than 3 months amount Nominal amount 1 month 1 - 3 months - 1 year 1 - 5 years 2016 $’000 $’000 $’000 $’000 $’000 $’000 Payables 2,687 2,687 - 2,687 - - Other liabilities 3,422 3,422 950 - 550 1,922 Total 6,109 6,109 950 2,687 550 1,922

2015 Payables 1,791 1,791 - 1,791 - - Other liabilities 4,522 4,522 550 - 950 3,022 Total 6,313 6,313 550 1,791 950 3,022

d. market risk SSCT’s exposures to market risk are primarily through foreign currency risk and interest rate risk. Objectives, policies and processes used to manage each of these risks are disclosed below. Foreign currency risk SSCT is exposed to foreign currency risk mainly through receivables relating to the hire of SSCT’s venue by overseas clients, and payables relating to purchases of supplies and consumables from overseas. This is because of a limited amount of transactions denominated in foreign currencies and a relatively short timeframe between commitment and settlement. SSCT exposures are mainly against the US dollar (USD) and are managed through continuous monitoring of movements in exchange rates against the USD, and by ensuring availability of funds through rigorous cash flow planning and monitoring. Based on past and current assessment of economic outlook, it is deemed unnecessary for SSCT to enter into any hedging arrangements to manage the risk.

68 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT Interest rate risk 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. SSCT does not hold any interest bearing financial instruments that are measured at fair value, and therefore has no exposure to fair value interest rate risk. Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. SSCT has minimal exposure to cash flow interest rate risks through its cash and deposits, term deposits. SSCT manages this risk by management monitoring movement in interest rates on a daily basis and has concluded for cash at bank, as financial assets that can be left at floating rate without necessarily exposing SSCT to significant bad risk. The carrying amounts of financial assets and financial liabilities that are exposed to interest rates are set out in Table 21.6 and 21.7:

Table 21.6: Interest rate exposure of financial instruments

Weighted Fixed Variable average effective interest interest Non-interest Carrying interest rate rate rate bearing amount 2016 % $’000 $’000 $’000 $’000 Financial assets Cash and deposits 1.7% - 4,027 - 4,027 Receivables N/A - 7 874 881 Total financial assets N/A - 4,034 874 4,908

Financial liabilities Payables N/A - - 2,687 2,687 Other liabilities N/A - - 3,422 3,422 Total financial liabilities N/A - - 6,109 6,109

2015 Financial assets Cash and deposits 2% - 3,277 - 3,277 Receivables N/A - 5 2,748 2,753 Total financial assets N/A - 3,282 2,748 6,030

Financial liabilities Payables N/A - - 1,791 1,791 Other liabilities N/A - - 4,522 4,522 Total financial liabilities N/A - - 6,313 6,313

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 69 Annual Financial Statements

Notes to the financial statements For the financial year ended 30 June 2016

Note 21. Financial instruments (continued)

Table 21.7: Market risk exposure – Interest rate

Interest rate risk Carrying -1% -1% +1% +1% amount Net result Equity Net result Equity 2016 $’000 $’000 $’000 $’000 $’000 Cash and deposits 4,027 (40) (40) 40 40 Total (decrease)/increase 4,027 (40) (40) 40 40

2015 Cash and deposits 3,277 (33) (33) 33 33 Total (decrease)/increase 3,277 (33) (33) 33 33

e. Fair value The fair values and net fair values of financial instrument assets and liabilities are determined as follows: • Level 1 – the fair value of financial instrument with standard terms and conditions and traded in active liquid markets are determined with reference to quoted market prices; • 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. SSCT currently holds a range of financial instruments that are recorded in the financial statements where the carrying amounts are a reasonable approximation of fair value, either due to their short-term nature or with the expectation that they will be paid in full by the end of the 2015-16 reporting period. These financial instruments include:

Financial assets Financial liabilities Cash and deposits Payables: Receivables: For supplies and services • Sale of goods and services • Amounts payable to government • Other receivables • Other payable

Where the fair value of the financial instruments is different from the carrying amounts, the following information has been included to disclose the difference.

70 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT Table 21.8: Fair value of financial instruments measured at amortised cost

Carrying amount Fair value Carrying amount Fair value 2016 2016 2015 2015 $’000 $’000 $’000 $’000 Contractual financial assets Cash and deposits 4,027 4,027 3,277 3,277 Receivables 881 881 2,753 2,753 Total contractual financial assets 4,908 4,908 6,030 6,030

Contractual financial liabilities Payables 2,698 2,698 1,791 1,791 Other liabilities 3,422 3,422 4,522 4,522 Total contractual financial liabilities 6,120 6,120 6,313 6,313

STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT 71 Certification

In accordance with a resolution of the Trustees of the State Sport Centres Trust, we state that in our opinion: a. the information set out in the Comprehensive Operating Statement, Balance Sheet, Statement of Changes in Mr. Jack Diamond Equity, Cash Flow Statement and notes forming part Interim Chairman of the financial statements, presents fairly the financial Interim Chairman transactions of the Trust during the financial year ended 30 June 2016 and the financial position of the Trust as at 30 June 2016; b. the attached financial statements for the Trust have been prepared in accordance with Standing Direction 4.2 of the Financial Management Act 1994, applicable Financial Mr. Phil Meggs Reporting Directions, Australian accounting standards and Chief Executive Officer and Accountable Officer other mandatory professional reporting requirements; and State Sport Centres Trust c. at the date of this report we are not aware of any circumstances which would render any particulars included in the financial statements to be misleading or inaccurate.

Mr. Thomas Crookes Chief Finance and Accounting Officer State Sport Centres Trust

Melbourne Date: 26 September 2016

72 STATE SPORT CENTRES TRUST 2015-2016 ANNUAL REPORT

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