Introduction Corporate Services Cont. Land Management & Enviro Services Cont. Chair Report 2 Information & Communication 20 Capital Works Program 32 Chief Executive Officer’s Report 3-4 Emergency Management 21 Property Management & Development 33-34 Board Members 5-6 Legislative Compliance 23-24 Utilities About the Resort Risk Management Potable Water 35 Our History 7 Risk Management 22 Wastewater 36 Our Vision & Our Mission 8 Landfill, Litter Reduction & Solid Waste 37 Our Strategy 9 Nature & Scope of Activities 10 Public Access, Safety & Education Business Undertakings Extraordinary Events 11-12 Ski Patrol & Skier Safety 25-27 Financial Summary 13 Snow Play & Cross Country 27-28 Business & Product Development 38-39 Key Performance Indicators’ 14-16 Transit Operations 29-30 Gas Operations & Alpine Nursery 40

Corporate Services Land Management & Enviro Services Financial Statements 41-57 Our Workforce & Development 17-18 Environment Stewardship 31 Disclosure Index 58 Organisational Structure 19 Geotech Works Program 31

In accordance with Financial Management act 1994, we are pleased to present the Mount Hotham Resort Management Board’s Annual Report for the year ending 31st October 2013.

Deborah Spring Jim Atteridge Chairperson Chief Executive Officer

Mount Hotham Resort Mount Hotham Resort Management Board Management Board 20 December 2013 20 December 2013 Chair’s Report Chair’s Chair’s Report Welcome to the Mount Hotham Alpine Resort Management Board Annual Report for the 2012-13. On behalf of the Board I am pleased to provide you with the Chair’s report for this year.

I am delighted to be newly appointed as happy to extend a warm welcome to Board Members attended the annual the Chair of Mt Hotham Resort Peter Hagenauer as the newest Board Hotham Ski Association (HSA) opening Management Board. I look forward to Member. weekend function in June 2013 at The working closely with Management, staff, General Store. We thank them for their stakeholders and businesses who ensure I would like to farewell outgoing Board hospitality. Mt Hotham is an exciting and fresh place member, Debbie Goodin who was our to visit. Board Deputy Chair and Audit & Risk Chairperson. Debbie resigned from the Acknowledgements Board on 27th April 2013 and I would Thank you for your contributions and Operations like to thank her for her contributions. feedback over the past year. The Board Dry conditions over the 2012-2013 appreciates the time and effort our community has taken to provide us with summer brought challenges to Mt Hotham Board Undertakings and the surrounding areas with the this vital information. Hotham continues to The draft Mt Hotham Strategic shine as a reflection of your support. Harrietville/Feathertop Fire impacting us Management Plan 2013-2018 was for 6 nervous weeks. Mt Hotham staff & released for public consultation with one community, CFA and Department of I acknowledge the contributions and workshop held in Melbourne and four on services of both the former and current Environment & Primary Industries (DEPI) Mt Hotham. An invitation for submissions crews worked hard to defend the Board members over the past year. My was also extended to the general public. fellow Board Members are driven and mountain and have been praised for their We had a fantastic response with our efforts. Their determination and willpower focused on getting the job done. Working stakeholders and community showing with them is a pleasure. ensured that the Resort saw no loss of the enthusiasm they hold for our infrastructure or life. mountain. I would sincerely like to thank our CEO, Jim Atteridge whose dedication to the While disappointing snow falls were Our Community experienced this season, this didn’t hinder Resort is steadfast. His management Without our community, we would not the positive outlook of our staff and team and the staff of the Mt Hotham have the strong sense of ownership, guests and ensured our visitors enjoyed Alpine Resort Management Board I praise which is prevalent on the mountain their visit to our resort. Unfortunately, for their constant enthusiasm, throughout the year. In particular, lower visitor numbers produced a commitment and devoted service ongoing communication with disappointing financial result. throughout the whole year. This stakeholders ensures we have a commitment is unrelenting, no matter constructive dialogue as to how we can Winter 2013 was the third year of our what is dealt to them. provide a mutually beneficial future for innovative on-line resort entry system, the Hotham resort. which this year was adopted by Mt Baw Baw Alpine Resort. The advanced system Our Annual Stakeholders meeting was allows guests to save time by pre- held at Holmesglen Conference Centre purchasing resort entry allowing them in Melbourne on 30th April 2013. The more time to enjoy the snow. briefing shared information about the Management’s undertakings for the prior Board Appointments year and future plans for the Resort. This Deborah Spring I sincerely thank Nicole Feeney for her event provided the Board and Executive Chairperson professionalism and enthusiasm during staff with an opportunity to converse with her term as Chair of the Board and stakeholders and seek feedback. The congratulate Ron Mason on his Board plans to repeat the meeting in Mount Hotham Resort Management Board appointment as Deputy Chair. I am also 2014.

ANNUAL REPORT 2012/13 ANNUAL REPORT 2012/13

22 Chief Executive Officer’s Report Reflecting over the past twelve months, Mt Hotham has had both a mixture of trials and tribulations. Collectively the team work and determination from our staff, businesses and stakeholders makes our mountain the product which proudly stands today. This report documents the achievements in operations and financial records for the 2012-13 financial year.

I would firstly like to  Hotham’s first ‘Fancy Dress Charity Hotham Emergency Management Plan start by praising my was activated, with the main focus on key Fun Run’ raised over $1700 for staff on the incredible infrastructure for the mountain in Camp Quality. effort they gave the anticipation of potential impact from the mountain whilst Harrietville/Feathertop Fire. under immense Staff Update Continuously the mountain was under a pressure during the In 2013 we bid farewell to some key staff ‘Watch & Act Alert’ from the CFA Harrietville/ members. highlighting the significance of the incident Feathertop Bushfire and its effect on the Resort. particularly on The Mt Hotham community was very Jon Hutchins, Chief Financial Officer has 31.1.13 where they fortunate to have the prompt response of been with Mt Hotham for the past 5 stood courageously the Mt Hotham/Dinner Plain CFA, Resort years. He introduced Mt Hotham to our delivering the whole nine yards. Their Management & Lift Company Staff on online ticket-less Resort Entry system professionalism made all the difference 31st January when the fire flared up again ‘Alpine Easy Access’, which was also when dealing with this natural disaster, and the Resort came under sudden ember adopted this year by Mt Baw Baw Alpine encapsulating their unwavering attitude attack. Two separate sections ‘Heavenly Resort. I thank Jon for his contribution “Not today, not any day”. Mt Hotham is Valley’ and ‘Blue Ribbon’ were burning and wish him all the best for his future richer for the energy given by the very intensely. The crews fought for 3 endeavours. people who love and respect this diverse harrowing hours before we could receive mountain. air support due to the unpredictable strong Larry Doyle, our long serving Ski Patrol winds. It was a battle we were determined Director & Gas Services Officer decided to win and consequently succeeded. Highlights of 2012-2013 Include: to retire from his full time position. Larry has over 30 years of service with the  Native Title ‘Heads of Agreement’ Following on from that experience one Resort having seen the transformation of week later the fire entered the Dargo was signed by MHRMB and the the previous ‘Lands Department’ and Gunaikurnai. Valley and once more threatened the ‘Alpine Resorts Commission’ (ARC) to Resort from an adjacent direction. Resort  No infrastructure loss from the 2013 the current Mt Hotham Resort Management Staff aided by ‘Phos-Chek’ a Harrietville/Feathertop Fire. Management Board. I thank Larry for his fire retardant applied the substance to our unwavering loyalty to not just the RMB  Mt Hotham Strategic Management urban area, which subsequently repelled but also the Mt Hotham/Dinner Plain the fire attack early the next day. Plan final submission has been CFA. I am proud to say he will be opting submitted to the Minister’s office via to work with Ski Patrol as a seasonal Even after all the countless hours DEPI following very successful public patroller throughout future winters. provided by the Department of consultations held at Melbourne and Environment & Primary Industries (DEPI) Hotham, bringing positive I extend a wholehearted welcome to and CFA, it wasn’t until the Alpine area submissions from the community. Abigail Adams who has joined our received rainfall that the fire threat was  The final Enterprise Bargaining Executive Team in the role of Chief finally averted. Finance and Accounting Officer. Abigail Agreement was approved by Fair previously was General Manager Work Australia, Department of Natural disasters such as this event can Corporate Services at the Mt Buller Treasury & Finance (DTF) and be extremely challenging on everyone. Resort Management Board for 3 years. Department of Environment & Many staff whilst supporting the Resort Her knowledge and experience of Alpine Primary Industries (DEPI) after also had the added pressure of their own Resorts has been beneficial in taking on several months of negotiations by properties under threat. Again I would the new position at Hotham. management and staff. sincerely like to thank every person who was involved. I strongly believe it is the  Successful audits of our ‘Gas’ and Harrietville/Feathertop Fire team we fight side by side with, who truly ‘Emergency Management Plan’. As you are all aware, the Harrietville/ make the difference.  3rd consecutive year of ‘unqualified’ Feathertop Fire had a major impact on Auditor Generals annual audit of our Mt Hotham’s 2013 summer season with Mt Hotham Resort Management Board is operations. scheduled projects for the Resort blessed with an exceptional team in Management team coming to a grinding particular – Jenny Molloy, General  Adoption of the ‘Building Standards halt for over 6 weeks. Manager who held the ‘fort’ at the of Occupancy Guideline’ & the beginning of this fire event whilst I was ‘Bushfire Protection Compliance On the 21st January 2013 fire ignited away and former RMB Board Member Guidelines’ by the Board. from a lightning strike near the township Andrew Lean who gave up his time to of Harrietville. It was initially believed to travel to Hotham and keep our  Adoption of the ‘Municipal Fire be contained; however events over the stakeholders & community well informed Management Plan’ by the Board. following 24 hours indicated that the fire via media alerts. was determined as uncontrolled. Mt  Breast Cancer Network Australia's Pink Lady Weekend Fundraiser.

3 MOUNT HOTHAM ALPINE RESORT MANAGEMENT BOARD CEO’sReport Great Alpine Road Closure Winter 2013 subject to specified terms and conditions. Once the bushfires had ceased, the Alpine Winter season 2013 was a difficult and The Minister’s endorsement and areas had significant rainfall over the challenging one for the Resort. confirmation of the Board’s power to enter subsequent weeks. This caused Expectations were high at the beginning into the Agreement was provided by letter substantial landslips due to the burnt of the year; however the snowfall proved on 24th January 2013 and the Agreement landscape not being able to absorb the to be much lower than expected resulting was signed by all parties on 4th March amount of water present. Over the coming in a drop of visitation numbers than we 2013. months leading up to winter the Great have seen in recent years. Nonetheless, The formal instrument to give effect to the Alpine Road (GAR) was closed as a result the Mount Hotham Resort Management terms of the Agreement is an Indigenous of the bushfire and landslips. Ensuring the team kept a positive attitude throughout Land Use Agreement (ILUA) which must safety of the public travelling up and down the winter months with Hotham’s first be registered under the Native Title Act the mountain was paramount. In that time ‘Fancy Dress Charity Fun Run’ being a 1993. The ILUA was prepared in VicRoads implemented the removal of fire highlight. The event raised over $1700 collaboration with Native Title Services affected trees from 2003, 2006 & 2013 for Camp Quality. Victoria and after consultation with the bushfires. This was a successful project Gunaikurnai people it was signed by the Board and the Gunaikurnai Land and with minimal interruption throughout the The ‘Controlled Traffic Management winter season due to the work they Waters Aboriginal Corporation Plan’ was exercised a small number of (GLAWAC) on 23rd May 2013. accomplished felling the timber throughout times throughout the winter season. On the end of summer. VicRoads work will the inclement weather days the RMB The National Native Title Tribunal continue along the GAR for a short worked in conjunction with VicRoads duration at the end of 2013. confirmed that the agreement was contractors “Stadelmann’s” to registered on the Register of Indigenous progressively clear the GAR of road Sadly we had to cancel two much-loved Land Use Agreements on 12th August accidents and snow drifts. This 2013. events ‘Nissan 4WD Beyond Hotham’ and successful process enabled the road to ‘Cool Summer Festival’ due to the fire stay open with only limited delays. activity and road closures. Although it was Amendments to the ‘Traditional Owners a difficult decision made by the event Settlement Act’ (TOSA) were passed in organisers, it was imperative the safety of Road Safety Parliament on 17th February 2013 and visitors and staff came first. Winter 2013 was the first season the are now in operation. The amendments to chain determination was implemented. Part 4 of this Act which deals with the The determination proved to be a classification of land use activities now The Green Season - Spring/ success. The results were reflected by provides greater certainty for investment Summer/ Autumn the considerable decline of traffic and development in the alpine resorts. Hotham is a summer bushwalking incidents reported on the GAR. The main destination; therefore consistent concern for traffic incidents were visitors Our Board maintenance of the walking tracks is a not abiding by the roadside signage in Congratulations to our newly appointed priority. Continual improvements to poor weather conditions. Chairperson Deborah Spring who has signage and tracks are completed as part brought an energetic approach to her new of the tracks and trails maintenance Ski Field Safety role, with Ron Mason stepping up as works. The section of the Huts Walk Deputy Chair. I would like to thank Nicole between Derrick and Spargo’s huts was An accident rate of 0.95 per 1000 visitor Feeney for her proficiency and direction improved with clearer definition of the days and 1.30 per 1000 skier days was during her time as Chairperson and we route. recorded in 2013 which is considerably are grateful she has remained as a lower than the industry norm of 2 per current Board Member. Welcome to Fire impact on the tracks and trails was 1000 skier days. These figures were Peter Hagenauer who was appointed for minimal with 700m of Cobungra Ditch down by 35% from the previous year. the first time as a Board Member at Mt burnt and the loss of only one track Hotham. He is no stranger to the marker post. At the request of the Board, The Board promotes the use of helmets mountain, being a lodge member for the fire retardant foil was placed around both on the slopes which is evident with the past 5 years. Derrick and Spargo’s hut to protect mandatory helmet use by all RMB staff. against ember and direct bushfire attack. They support any safety campaign that I thank the Board for their commitment to Fortunately the fires didn’t reach these moves the industry forward in the Mt Hotham. We collectively strive for areas. awareness of helmet safety whilst success and encourage a bright future for engaging in Alpine recreation activity. our Resort. Despite 7 weeks directly lost to bushfire The Board remains dedicated to our activity, the tracks and trails crew stakeholders and visitors by committing completed the trail marker signage and to a safe and enjoyable environment in laid base materials in the remaining steep our Resort. sections of the Hotham – Dinner Plain trail. Native Title Jim Atteridge MHRMB has been engaged in The official adoption of a designated Chief Executive Officer Bushwalking season which begins from negotiations with the State and the the Melbourne Cup long weekend and Gunaikurnai in relation to a native title claim by the Gunaikurnai People since Mount Hotham Resort continues until the end of May was Management Board introduced in 2012. As part of our summer September 2010. marketing we offered visitors a chance to be taken on free guided tours out along In November 2012 the Board was the Cobungra Ditch track. Even with an presented with the ‘Heads of Agreement’ interrupted summer period the visitor dealing with the public works and numbers were still encouraging. approved the terms of the agreement

ANNUAL REPORT 2012/13

4 Board Members The Alpine Resorts (Management) Act 1997 (the Act) came into force on 30 April 1998 when the responsibility for the day-to-day management of the Mt Hotham Alpine Resort was transferred to the Mt Hotham Alpine Resort Management Board. Our Board representatives come from a diverse range of backgrounds and industry experience. Deborah Spring Nicole Feeney Committees including the Victorian (Chairperson) (Chairperson until Manufacturing Council, the Industry Skills Consultative Committee and the Victorian Deb has had broad 4th June 2013) WorkCover Advisory Committee. He has experience as a Nicole has been a also been an Australia Day Ambassador senior executive in member of the and was the recipient of the Centenary the private, public Board since 2007 Medal for services to the business and semi- and was Chairman community. government sectors from 2010 to 2013. Between 2010 and across a diverse Helen Moran range of industries. These include energy, 2013 she was also a member of the Helen has been manufacturing, recycling, petro- Alpine Resorts Co-ordinating Council. associated with Mt chemicals, rail, technology, transport and Nicole is a commercial disputes and Hotham since 1985 logistics. Her board positions include construction lawyer at Lander & Rogers; and currently is the Ambulance Victoria, University of Ballarat, is the immediate past Chair of the Head of Victoria - Special Olympics and the Banksia Litigation Lawyers Section of the Law Midway Attractions Environmental Foundation (Chair). Deb Institute of Victoria (LIV) and represents at Merlin has a Master of Science in Mechanical the LIV on the Supreme Court Rules Entertainments Engineering and a Master in Business Committee & the County Court Building Group. Helen has been involved in Administration from Harvard Business Cases Users Group. Her board General Management of resort School. Deb is also a licensed experience includes having been a operations and played a key role in professional engineer and a Graduate director of UFS Dispensaries Ltd for 6 development projects undertaken by Member of the Australia Institute of years, a not for profit company which Australian Alpine Enterprises Pty Ltd at Company Directors. She has been skiing owns and operates a number of the resort since 1995 providing invaluable at Hotham for over 20 years and has pharmacies and associated businesses experience in the areas of planning, watched her three daughters advance in and around Ballarat in Western administration and management. She from Mighty Mites to Mary's Slide. Victoria and she is a Graduate Member of the Australian Institute of Company brings a high level of marketing, Ron Mason Directors. In 2001 Nicole was introduced organisational and communication skills and experience in resort management (Deputy Chair) to skiing and Mt Hotham. She loved the experience so much she became a and development of business initiatives Ron was the member of the lodge Anton Huette in to the Board. principal planner at 2005 and later purchased an apartment Aurecon Peter at Hotham. (Melbourne), leading Hagenauer one of the largest Tim Piper Peter is a partner at planning teams in Tim is the Victorian Digital Frontier Victoria until he Director of the Partners, a specialist retired in December 2009. He has over Australian Industry advice firm which 30 years tourism and planning experience Group which is one helps clients to in Government and private organisations of the most understand the and has undertaken key consultant influential industry capabilities, projects for State and Local Government associations in the resources and organisational structure authorities and the private sector. He was country. He is a needed to deliver their products and Chair of the South East Water lawyer and former journalist and holds a services in the digital economy. He has Environment Advisory Committee from Master of Business Administration. Tim over 25 years of experience in the 2004 to 2009 and has been skiing at Mt is also Chairman of the Industry Banking and Finance Sector, including Hotham for the past 30 years. Ron is a Capability Network, the Manufacturing more than ten years building and member of Asgaard Ski Club and has a Skills and Training Taskforce, and the managing digital distribution channels strong connection to the mountain. Ron EPA’s HazWaste Panel. He also sits on supporting ANZ's Global Markets was appointed Deputy Chair on the 4th a number of senior Government businesses. He has June 2013.

5 MOUNT HOTHAM ALPINE RESORT MANAGEMENT BOARD About Board The extensive experience in strategy development, programme management, Meeting Attendance project governance and sales Board Audit & Risk Remuneration management. Peter is a member of Total Asgaard Ski Club. He and his family have Meetings Held 10 6 5 been skiing at Hotham for the past 5 Deborah Spring 10 2* 5 years. Ron Mason 10 6 - Debra Goodin Nicole Feeney 10 - 5 (Deputy Chair until Tim Piper 9 - 5 27th April 2013) Debbie holds a Helen Moran 8 5 - Bachelor of Peter Hagenauer 5* 3* - Economics degree, Debbie Goodin 5* 3* - is a Chartered * On the Board or relevant Committee for Accountant, is a a limited time Fellow of Leadership Victoria, a qualified insolvency Establishment of Boards  To contribute to the development of practioner and Member of the Institute of The Mount Hotham Alpine Resort the Alpine Resorts Strategic Plan and Company Directors. In addition to running Management Board was established by other strategic planning for alpine a management consultancy business, Section 34 of the Alpine Resorts resorts as a whole; Debbie is also a director of Community (Management) Act 1997. The inaugural  To undertake research into alpine CPS Australia Limited and City West Board officially took over control of the Water Limited. Debbie has held senior resort issues; Resort on 30 April 1998. Prior to this, all executive roles in operations, finance,  To contribute to and support the Alpine Resorts were managed project delivery and general operation of the Council; collectively under the jurisdiction of the administrative in both the public and Alpine Resorts Commission. The  To prepare and implement a Strategic private sectors. Debbie and her family are current management structure Management Plan for the resort; keen skiers. comprises an independent six member  To expend or apply revenue of the Audit and Risk Sub Committee skill-based Board appointed by the Board in accordance with a direction of The Audit and Risk Sub Committee has Minister for Environment and Climate the Minister under section 36(1A); responsibility of Internal & External Audit, Change and reports directly to the  To manage the Crown land in Mt Finances, Risk Management and Minister. The responsible Minister for Hotham by acting as a Committee of monitoring the compliance with the the 1 November 2012 to 31 October Management under the Crown Land Financial Management Compliance 2013 reporting period was the Hon (Reserves) Act 1978; Framework. The Board Members Ryan Smith MP, Minister for represented on this committee are Ron Environment and Climate Change from  To contribute, together with Tourism Mason, Helen Moran and Peter 2 December 2010. Victoria, established under the Tourism Hagenauer. Deb Spring was a member of Victoria Act 1992, and the Council, to the committee until she was appointed Functions of The Board and the overall promotion of alpine resorts; Chairperson of the Mount Hotham Resort Corporate Governance  To develop a tourism and marketing Section 38 of the Alpine Resorts Management Board on the 5th June strategy and to promote the resort; 2013. Debbie Goodin was a member of (Management) Act 1997 specifies the  To provide services in the nature of: the committee until her resignation from functions of the Board: garbage disposal, water supply, gas, the Board on the 27th April 2013. Peter  To plan for the development, drainage, sewerage, electricity, roads, Hagenauer joined the committee when he promotion, management and use, of fire protection, snowmaking, transport was appointed as a Board member on the each such alpine resort in for the resort and to charge user pays 4th June 2013. All Audit & Risk Sub accordance with the object of the contributions for the provision of those Committee members are deemed Act; services; independent under the Financial  To develop and promote or facilitate Management Act 1994.  To collect fees prescribed by the the development or promotion by regulations for the resort; others of the use of each such alpine Remuneration Sub Committee  To attract investment for the The current Remuneration Sub resort in accordance with the object improvement of the resort; and Committee Board Representatives are of the Act; Tim Piper (Chairperson), Nicole Feeney,  To manage each such alpine resort  To carry out any other function and Deb Spring. Debbie Goodin was a in accordance with the object of the conferred on the Board by member of the committee until her Act; this or any other Act. ANNUAL REPORT 2012/13 resignation on the 27th April 2013.

6 Our History The Mt Hotham Alpine Resort is set in a unique and extreme natural landscape, an environment that has been largely shaped by its European history, a history that is unique to the region and the State.

The history of Mt Hotham has been resort. Significant investments by lease Board assumed management of Mt affected by influences from both sides of holding companies on the Cobungra Hotham. the range. Mt Hotham (1861m) is amongst Diggings had far reaching influences. Keen In 1995 BCR Management purchased Ski the top ten highest points in Victoria, atop to attract business from the new gold Tows Ltd and further developed the Resort the solid barrier that forms the spine of the mining boom, both Bright and Omeo shires including new ski terrain and the Orchard, Great Dividing Range. Both the Ovens upgraded the Alpine road between Keogh’s and Gotcha chairs in 1997 as well Valley to the north and Gippsland to the Harrietville and Omeo from a 4ft wide pack as a 53 chalet development of Hotham south have played important influential track to an 8ft wide coach road in 1883. Heights. The Mt Hotham airport was roles in the history of the Mt Hotham The long-term repercussions of this road opened in 1999. region. upgrading, would influence the region and resort development to present times. In 2002 amendments were made to the It must be acknowledged that human Alpine Planning Scheme, including revising habitation of the area did not begin with the The Resort provisions for car parking and introducing arrival of the first Europeans, and that an an Environmental Significance Overlay for aboriginal presence in the high country had The Department of Crown Lands and the Pygmy Possum (Burramys parvus), existed in the Mt Hotham region for many Survey assumed responsibility for Mt and a Heritage Overlay. In 2004 the 2020 thousands of years previously. The Hotham in 1962, appointing a committee of Strategy was released to guide long term principal language groups in the Mt Management to co-ordinate Crown planning and management of Victoria’s Hotham region included the Gunailkurnai, allotments, subdivisions and provide basic Alpine Resorts. Dhudoroa and the Jaitmathang. services such as drinking water. During its 21-year tenure, the Committee encouraged In 2004 the lift company was acquired by resort development, such as lodge Gold MFS limited. In 2009 the $8.4m project for construction, the Zoo Cart transport In 1851 the most influential event in the recycled waste water for snow making was system, the addition of tow ropes and the history of the region (and the nation) completed. first chairlift, the Playground Chair occurred with the official discovery of gold. installation. In 2011 the Merlin Entertainment Group In that first year gold was discovered at acquired the lift company. Omeo, where a few small diggings were In 1983 the Alpine Resorts Act saw the opened. The gold discoveries on each side formation of the Alpine Resorts Since the first travellers over the ranges of the Divide saw a significant movement Commission (ARC) to manage all Victorian strapped timber planks onto their boots at of traffic over the ranges between the new Alpine Resorts permanently reserved as the Mt St Bernard Hospice during the fields. Diggers travelling over the ranges Crown Land. The ARC contributed to the 1880s, the Mt Hotham area has been a in the vicinity of Mt Hotham were said to development through the provision of skiing destination for tourists for over 130 have discovered small quantities of gold, adequate sewerage reticulation and years. The area today still has a strong however these deposits were left in treatment, reticulated electricity and gas association with early heritage in providing preference for the richer pickings and and later the connection of the resort to the a unique recreational destination for better climate offered by the lower valleys. State grid. Other development in visitors all year round. subsequent years saw increased parking The early 1860s saw significant gold areas, construction of the Hull Bridge, and discoveries being made on the Upper completion of the sealing of the Alpine Dargo and Cobungra rivers. These new Road between Omeo and Harrietville in fields saw the establishment of more 1998. permanent populations in the shadow of Hotham. Principal mining camps and The ARC developed a much stronger commercial centres on the Upper Dargo commitment to the environment during the included, Brocket (1866), Louisville (1866), mid 1990s, adopting the Resort’s first and the establishment of the Cobungra Environmental Management Plan in 1997. Township in 1883.This saw a population of In the same year the Alpine Resorts some 400 to 500 people in the immediate Planning Scheme was also introduced. In hills on the edge of what is now today's 1998 separate management boards were created for the individual Resorts and the Mt Hotham Alpine Resort Management

7 MOUNT HOTHAM ALPINE RESORT MANAGEMENT BOARD Our Vision High on Hotham– Australia’s Premier Alpine Experience.

Our Mission To deliver Australia’s premier Alpine Resort through the optimal management of this unique Crown Asset.

Underpinned by focus on customer service and effective communication, the Board will achieve this mission through quality services to:

The Crown

By maintaining and managing the public assets of the Resort, attracting investment for the development and improvement of the Resort, administering the Crown leases and licenses within the Resort, and ensuring legislative obligations are met;

Our Environment

By managing the rare and valuable biodiversity of the Resort;

Our Customers

By directly providing quality delivery to our recreational customers of: transport, ski patrol, resort entry sales, visitor information, traffic and parking control, snow clearing, cross country trails and urban amenities;

Our Property

By providing contemporary urban services of water supply, sewerage, drainage, gas supply and solid waste management;

Our Stakeholders, Investors and Developers

Delivering consistency, certainty and confidence in Mt Hotham by undertaking quality Resort planning and development, reliable utility services, effective Business and Product Development, clear and unambiguous land and lease management, and efficient revenue collection;

Our Corporate Performance

By measuring through a set of corporate performance indicators developed and published in this Corporate Plan and reported against in our Annual Report.

The Board is committed to achieve the purpose of the Act, and the Vision for the Resort as outlined in the Alpine Resorts Strategic Plan 2012 and reiterated in the Board’s Strategic Management Plan 2006.

ANNUAL REPORT 2012/13

8 Our Strategy The following six broad issues have been identified to help realise the vision.

Climate Change Mt Hotham will remain strongly committed to a snow tourism industry and proactively plan for the impacts of climate change. Mt Hotham will remain viable for snow based recreation until at least 2020. Investment at Mt Hotham is already focusing on broader bi- season (white and green) recreational opportunities.

Resort Use and Visitation Mt Hotham provides the highest quality winter alpine experience in Australia. We facilitate safe access to our alpine environment for recreational use through both the winter and non winter seasons. Mt Hotham has experienced significant growth over the past two decades; contrary to slow growth trends in this industry. Such substantial growth in visitation requires significant additional development of infrastructure, accommodation and skiing services.

Environmental Management All current and future management and development of Mt Hotham will seek to be undertaken within an ecologically sustainable framework. Mt Hotham’s Environmental Management Plan which in addition to flora, fauna, pest and weed management programs, is strengthened by the adoption of the EPA Victoria’s Ecological Footprint methodology and the inclusion of a water conservation program, will help move the resort towards sustainability. The Mt Hotham Alpine Resort has also invested in a sustainable future by continued operation of the Victorian Alpine Nursery to ensure the future supply of plant stock for all revegetation of the Alpine Resorts.

Development of Mt Hotham Mt Hotham will continue to enhance the visitor experience by providing an attractive, ecologically sustainable mountain village that has local character and a distinct sense of place in the landscape. Design guidelines and the Alpine Resorts Planning Scheme are identified as key tools to improve the urban design of the resort. Planning scheme amendments to the Alpine Resorts Planning Scheme has seen significant private investment in the Resort.

Vibrant Mt Hotham Mt Hotham is a vibrant economic entity making a strong contribution to Victoria and our local region. Mt Hotham is a major contributor to the regional communities providing both employment and financial benefits. It generates substantial commercial activity in sub alpine towns throughout the year.

Stewardship of Mount Hotham The Board actively embraces the stewardship role it holds at Mt Hotham and will work co-operatively with our local alpine and sub- alpine communities. The relationship with surrounding land managers will be strengthened to recognise synergistic relationships and maximise the diversity of experiences available to visitors. Indigenous Australians will be consulted as part of the planning processes. Opportunities also exist for further cooperation between each resort.

9 MOUNT HOTHAM ALPINE RESORT MANAGEMENT BOARD Nature and Scope of Activities Mt Hotham Alpine Resort is one of Victoria’s premier alpine recreation destinations. It holds the unique position of being the highest Ski field alpine village in Australia with a summit elevation of 1861 metres.

The Resort is located toward the southern end tourist destination during winter months. The designed and implemented an annual four of the Great Dividing Range, approximately Resort has developed historically as a resort wheel drive event that encourages attendees to 365km north east of Melbourne and 520 km for “serious” skiers with a total of 13 lifts drive sustainably within the Alps. The event south west of Canberra. The Resort currently servicing 76 runs of which 6 are green; 34 are known as “Beyond Hotham” is run in has 4,375 beds and 85 Lessees. blue; 25 are black and 11 are double black. conjunction with Parks Victoria and the Victoria Police and provides information sessions, Access from Melbourne to the Resort is “Green” season product development is a tagalong tours, social networking and rare generally by the Great Alpine Road, either from challenge which must be met if business access to the region. The event is another the west via Wangaratta and Harrietville or from endeavours and private sector investment is excellent example of a successful working the east via Bairnsdale and Omeo. Hotham to be viable outside the “White” or winter relationship between our partners and regional commercial airport at Horsehair Plain, season. Over the last five summer colleagues. approximately 20 km south east of Mt Hotham, construction period’s three new hero walking provides an alternative to road travel. The trails have been developed within the resort to Many of our access trails and cross country airport has greatly increased the accessibility of increase the tourism product offer for Hotham. tracks double as walking and mountain bike the Resort to Victorian, interstate and overseas The Hotham to Dinner Plain Trail, Cobungra tracks during summer months. The Alpine visitors and has the capacity to provide Ditch Trail, and the Three Huts Walk when fishing experience is certainly achievable from commuter jet links with major Australian capital combined with the iconic Razorback/Mt Hotham and has been significantly enhanced cities during the ski season. Feathertop Walk, will offer guests to Hotham with completion of the Three Huts Walk, the full social spectrum of walks for all abilities providing easy access to an otherwise difficult to Mt Hotham is located at the headwaters of four and levels of fitness. The Hotham to Dinner get to Swindlers Creek. major rivers. Terrain in the Resort area ranges Plain Trail is an excellent example of the in elevation from 1060 to 1861 metres. The Ensuring the consistent and reliable delivery of Board working closely with the Alpine Shire Resort covers an area of approximately 3450 core services is necessary to maintain the and Parks Victoria to create a quality non hectares, the majority of which is Crown Land ongoing daily viability of the Resort and to winter Alpine product. and is bounded on all sides by the Alpine provide the foundation on which all other National Park. As such it comprises in total less Mine sites have been rediscovered within businesses operating within the Resort than 0.6% area of the Alpine National Park. The Hotham Village that have the potential to be rely. The level of these services is ski field comprises 245 hectares, or 7% of the developed into a fully integrated tourism determined annually in the budget total Resort area. The urban area of the village product including walks, tours and process. covers approximately 15 hectares, and is in interpretation. This development has the The scope of activities the Board area less than .003% of the adjoining National potential to add to the suite of green season facilitates is as follows: Park. products available at Hotham.

The primary attraction of Mt Hotham is as a The Resort Management Board have

Utilities Business Undertakings Water, Sewerage, Drainage, Waste Management, Snow Making Gas supply and Victorian Alpine Nursery. Infrastructure, Plant/Vehicle and Workshop. Land Management and Environmental Services Business and Product Development Property Development, Environmental, Stewardship, Property Product Development, Business Development, Weather and and Leasing, Licenses, Planning, Building, Health, Capital Works Snow Reporting, Walking Trail Products. and Operations. Corporate Services Public Access, Safety and Education Strategic, Business and Resort Master Planning, Administration, Ski Patrol, Public Infrastructure, Visitor Safety, Village Mainte- Stakeholder Management, Emergency Management, Human nance, Car Parks and Roads, Resort Entry & Visitor Information, Resources, Board Administration, Compliance, Corporate Traffic Control, Transport, Trails and Snow play, Snow Clearing, Governance, Risk Management Facilitation, OH&S, Financial Cross Country Trails and Public Liability Insurance. Management and Information Technology. Risk Management ANNUAL REPORT 2012/13 Risk Register, Asset Maintenance and Risk Management.

10 Extraordinary Events

Harrietville/Feathertop Fire until the CFA arrived on the mountain; aircraft and by vehicles within the The Harrietville/Feathertop Fire was including an area under Ettamogah village area & around the critical ignited by lightning strike on 21st Lodge which was extinguished by infrastructure of the Resort including January 2013 near the township of MHRMB personnel before significant the Sewerage Treatment Plant, Potable Harrietville. Over 30,000 hectares were damage occurred. Water UF Plants, Higgi Water Tanks burnt including areas of the Mount etc. Back burning from the GAR Hotham Alpine Resort. In early February 2013 the main fire between the Sewerage Treatment Plant front crossed the GAR to the north of towards Dinner Plain was undertaken On 31st January, a flare up saw three the Resort and entered the Dargo to protect the vital infrastructure. spot fires ignite over 8 kilometres from catchment. The fire affected both sides Aircraft placed Phos-Chek across the the main front to within the resort of the GAR between Harrietville and top of Little Higginbotham between the boundary. The Heavenly Valley ski field Diamantina Hut. Within the Resort Higgi Water Tanks and the Big D fence area of Purgatory Spur and Race Gully boundary, areas around Wangaratta line. On the north side of Little below the chairlift came under ember Ski Lodge and the VicRoads Depot at Higginbotham Phos-Chek was also laid attack as well as a spot fire that ignited Mt St. Bernard were affected by high around the boundary of the Alpine near Blue Ribbon ski field and moved intensity fire activity however due to the Heights apartments to the swales upslope towards the Hotham Village outstanding efforts of the CFA and under Corral car park in the village. directly threatening the Alpine Club of Department of Environment & Primary Victoria and Edelweiss lodges. The fire Industries (DEPI) no infrastructure was Subsequently the fire came within reached the Great Alpine Road (GAR) lost. The fire track originally cut behind meters of the lodges at the base of opposite Moritz where it jumped the the Davenport Village in 2003 was Gallows Court with no prevail. The fire road and spotted into the Davenport recut resulting in the MHRMB now spotted on ‘The Drift’ ski field area Village. working to form this into a long term though it was suppressed quickly by maintained trail. Resort personnel. The third fire flared near the north face of a section of Eagle Ridge (up to the On 8th February the fire front took a The sheer determination provided by Loch Track); however the fire did not run up the south side of Davenport staff, mountain businesses, CFA and enter the Orchard ski field (nor the Village area and south west of Mount DEPI to prepare the mountain for a Resort’s potable water supply). Higginbotham directly threatening the direct attack succeeded with no loss of southern area of the Resort. To protect property or infrastructure. MHRMB MHRMB and Mt Hotham Skiing the Village from fire attack Phos-Chek would like to thank everyone who was Company (MHSC) staff worked tirelessly was applied across the ridgelines at the involved for their exceptional efforts. to extinguish embers within the village south side of Davenport Village by

11 MOUNT HOTHAM ALPINE RESORT MANAGEMENT BOARD Extraordinary Events Extraordinary Extraordinary Events cont.

Great Alpine Road Closure and the general public. To ensure a safe the 2003, 2006 & 2013 bushfires. This Following the bushfire Hotham passage for future traffic travelling the project was beneficial with minor experienced substantial rainfall over the GAR critical road works were completed interruption throughout the winter period subsequent weeks leading to dangerous to repair and stabilise the road, and to due to the work they accomplished landslips along the Great Alpine Road also replace culverts, guard rail and fire leading up to the snow season. With (GAR) between Harrietville and Mt affected signage. Collectively VicRoads limited time to complete an enormous Hotham. This extreme rain event caused and the Department for Environment & task it was understandable they finished major disruption once again to the access Primary Industries (DEPI) carried out the work merely one week before the from the mountain’s Harrietville approach the removal of fire affected trees which season’s opening weekend. impacting on staff, businesses, lodges were deemed dead or hazardous from

ANNUAL REPORT 2012/13 ANNUAL REPORT 2012/13

1212 Financial Summary Significant changes to financial position during the year Revenues from rendering services dropped by 4.5% due to declining property valuations affecting site rental by 13% compared to 2012, and decreased winter visitation as a result of poor snow falls by 23% compared to the 10 year average. Expenditures dropped by 4% overall and closing cash increased by 21% mainly due to deferral of spending on significant repairs and maintenance items. This deferral occurred due to the impact of the bushfires surrounding Mt Hotham on resources in the summer months, and the ARMB’s management of spending during the slow winter season.

Financial Summary 2009 2010 2011 2012 2013 ($,000) ($,000) ($,000) ($,000) ($,000) Total Assets 89,593 90,796 79,305 79,891 80,179 Total Liabilities 3,328 3,796 3,309 3,576 3,311 Net Assets 86,265 87,000 75,996 76,315 76,868

Assets are compromised by date Land 59,468 59,468 41,815 41,815 41,815 Financial 2,528 3,167 2,288 4,009 4,424 Other Non-Financial 27,597 28,161 35,202 34,067 33,940 Total Assets 89,593 90,796 79,305 79,891 80,179 Five Year Revenue and Expenditure Overview Revenue ($,000) 2009 2010 2011 2012 2013 ($,000) ($,000) ($,000) ($,000) ($,000) Site Rental 1,855 1,752 1,644 1,733 1,512 Annual Service Charges 3,025 3,069 3,288 3,659 3,863 Capital Ingoings 52 233 42 143 24 Visitors 2,319 2,293 2,254 2,785 2,334 Grants 10 25 100 134 87 Other Sources 1,873 1,853 1,941 1,945 2,271 Total Revenue 9,134 9,225 9,268 10,399 10,091

Expenditure ($,000) 2009 2010 2011 2012 2013 ($,000) ($,000) ($,000) ($,000) ($,000) Operating Expenses 8,002 7,339 7,711 8,311 7,975 Depreciation 961 1,021 991 1,355 1,240 Finance Expenses 132 98 114 120 115 Support Payments 149 233 252 181 210 Total Expenditure 9,244 8,691 9,068 9,967 9,540 Net Operating Result (110) 534 200 599 551 Consultancies There were 13 projects undertaken for the Board by consultants. The following table lists the consultants engaged in 2012-13 where total remuneration was $10,000 or above.

Consultant Project Expenditure 2013 On Tap Consulting Pty Ltd Leasing and property consulting $ 122,628 Paul Rooney Electrical Contractor SCADA systems, automated tunnel heating $ 52,630 Solutions H2O Sewage consultant $ 47,067 MJS Omeo Earthworks Landfill cell maintenance $ 43,179 Rose and Barton EBA negotiations $ 38,527 Alpine Building Permits & Consultants Building permits/survey and consulting $ 40,090 Hays Specialist Recruitment Temp Finance Officer to relieve workload while CFO position was vacant $ 19,610 Mt Hotham Chain Services Road traffic services $ 17,145 4 Site Australia Waste removal $ 15,260 White Family Trust Environmental management $ 15,143 Data Integration Solutions Vaporiser Plant Room, Wastewater Treatment Plant & Tunnel Heating $ 13,860 Yabbi Pond Pty Ltd Potable water compliance $ 13,594 Total $ 438,732

13 MOUNT HOTHAM ALPINE RESORT MANAGEMENT BOARD KeyIndicators’ Performance Major Contracts The Board did not enter into any contracts greater that $10 million during the reporting period.

Disclosure of Government Advertising Expenditure Mt Hotham Management Board did not have any advertising campaigns with a media spend of $150,000 or greater.

Key Performance Indicators’ The Boards overall performance has continued to be strong and productive in a year with some extraordinary challenges.

2009/2010 2010/2011 2011/2012 2012/2013 Actual Actual Actual Actual Customer Service

Total Visitor Days 376,483 318,311 411,495 264,527

Market Share (Victorian majors visitor days) 30.6% 28.8% 32.4% 25.1%

Accident Rate/’000 visitors (Hotham Historical average) 1.53 1.25 1.06 0.95

Operations

Property Revenue/FECA* $57.65 $58.59 $64.14 63.81

Infrastructure and Admin Costs/FECA $67.36 $70.01 $80.50 79.10

Village, Visitor and Marketing costs/Visitor Day $7.38 $9.18 $7.19 $10.07

Resort Investment

Total Village Size (FECA*) 83,621 84,177 84,068 84,228

Total CAPEX (‘000) (includes WIP) $1.50m $2.39m $0.62m $1.02m

Environmental Management

Potable Water Quality (Compliance with Australian Drinking Water Guidelines as reported to DHS) 100% 98.1% 96% 100%

Waste Water Quality (Compliance with Licence Limits as Reported to EPA) - discharge point 1 100% N/A 100% 100% - discharge point 2 96% Compliant 90% 100%

Solid Waste - kgs (winter period) per visitor day n/a 0.53 0.62 0.68

Financial

Outstanding Debtors as % of revenue 10.51% 5.55% 9.35% 7.51%

Closing cash (‘000) $2,196 $1,774 $3,021 $3,665

Operating Cash Flow/Total Assets 2.19% 1.50% 2.21% 2.17%

Current Assets/Current Liabilities 1.88 1.84 2.49 3.18

*FECA - Fully enclosed covered area (m2)

ANNUAL REPORT 2012/13

14 Economic Key Performance Indicators

Key Performance Indicators 2011/2012 2012/2013

E1. Net Cash Flow

Net Operating Cash flow plus Net Investing Cash Flow as reported in Cash Flow Statement 1,390,602 719,260

E2. Net Accrual Surplus

Net Profit before allocation to Reserves as reported in the Statement of Financial Performance 599,341 551,362

E3. Business Cycle Sustainability

Ratio of Total Financial Assets less Net Accounts payable less Total Accrued Employee Entitlements to Snow Drought Reserve Target 3.37 4.63

E4. Asset Cycle Sustainability

Ratio of Total Financial Assets less Net Accounts payable less Total Accrued Employee Entitlements less Snow Drought Fund to Total Accumulated Depreciation of all Assets 0.38 0.43

E5. All Season Resort

Ration of non winter visitors to winter visitors 0.72 0.81

E6. Average Visitor Spend

Ratio of total revenues to total visitors (winter and non winter) 38.83 56.92 Social Key Performance Indicators

Theme, Indicator & Measurements 2013 Actions

Valuing Culture and Heritage - S1 Indigenous employment opportunities Close working relationship with Gunaikurnai. Indigenous capacity building, engagement, training and/or employment targets.

Cultural Heritage Management Initiatives - S2 Respect for culture and heritage Interpretive Indigenous signage project in progress. Cultural heritage management initiatives.

Community Strength - S3a Supporting community participation – events Volunteer Ski Patrol, 1st Annual Camp Quality Fundraiser, ‘Breast Cancer Network Australia’ Pink Lady Weekend, Easter Weekend Community participation in Resort sponsored events, Geebung Polo match participation & sponsorship and donations. programs and activities.

— S3b Supporting community participation – consultation Consultation for strategic planning, Lodge managers’ annual Opportunities provided to the community to contribute to decisions workshop, Head lessees briefing, and annual Homesglen that affect them stakeholder meeting plus follow up/ debrief meeting.

— S4 Accessible on-mountain key community services Medical Centre (Fully subsidised accommodation), subsidy to Summer and winter presence of key community services, Emergency, Services; Medical Police station and Emergency service. Services; Grocery Store

Workplace Quality -S5 On-mountain worker accommodation Subsidy on worker housing, staff choice of housing, flexible working hours, staff training for multi-skilling and capacity building, Number of beds provided by major employers . worker transport (summer), staff training program-needs basis, Alpine Ecology course training and subsidised staff passes.

Visitor Fulfilment -S6 Equitable access for Victorians Locals’ ski pass, free guides for people with visual disability, free Enabling actions that facilitate culturally diverse patronage and access for disabled, gate entry to local school students, Tertiary student subsidy, free socially disadvantaged and economically disadvantaged Victorians Skidoo & other transport for people with mobility issues/disability, free inter-village bus service, two entries– servicing east and west mountain, free resort entry in summer, graphic signage system throughout village, Omeo to Bright Alpine Bus Link and development of summer product.

S7 Availability of a range of accommodation Broad range of accommodation types – 2-5 star. Publicly bookable beds per accommodation type

15 MOUNT HOTHAM ALPINE RESORT MANAGEMENT BOARD KeyIndicators’ Performance Environmental KPI’s 2011/2012 2012/2013 N1. Compliance with Water Licence Conditions a) Safe Water Drinking Act standards 96% 100% b) EPA licence conditions 75% 100% c) GMW licence conditions 100% 100%

N2. Potable Water Consumption a) Winter total potable water usage 63.8 ml 47.3 ml b) Annual total potable water usage 96.4 ml 79.9 ml c) Winter total potable water usage/visitor 0.143 kl/vd 0.18 kl/vd

N3. Renewable Energy Consumption by Board

Renewable energy as a proportion of total energy consumption (Joules) by Board related activities per annum Unit: % (Joules / Joules). 1% 0%

N4. Greenhouse Gas Emission

Greenhouse gas emissions from electricity, LPG, diesel and ULP consumption by MHRMB activities 1740.03 t 1909.00 t*

N5. Solid Waste Disposed to Landfill

Solid waste disposed to landfill based on truck tonnage figures 1st July to 30th June a) Annual tonnage 268.2 t 221.5 t b) Winter tonnage 200.8 t 179.8 t c) Winter tonnage/visitor days 0.62 kg/vd 0.68 kg/vd

N6. Activities Implemented that Protect Threatened Species Population and Communities

Activities implemented within threatened species action management plans to protect threatened species populations and communities 100% 100%

N7. Extent of Good Quality of Habitat within the Resort

Extent of good quality of habitat within the resort measured as Habitat hectare (per EVC) within Offset sites within the resort. a) EVC Sub Alpine Woodland– 0.52ha– gain target of 0.06 habitat hectares by 2018 0.06hh gain 0.03hh gain b) EVC Sub Alpine Wet Heathland and Sub Alpine Woodland– 3.1ha– gain target of

0.29 habitat hectares by 2022 n/a n/a

*Pump house figures estimate only

ANNUAL REPORT 2012/13

16 Our Workforce & Organisational Development Managed by our Corporate Services department, our objective is to provide effective ongoing management of organisational development, OH&S, Workcover, human resource management, emergency management, administrative systems and processes. It is also essential that the Board organise its human resources in a way that will deliver the most effective service to the community and our visitors, whilst recognising its obligations to our staff.

Equal Employment Opportunity Occupational Health and Safety  Conducting training sessions; The Board is an equal opportunity employer (OH&S)  Reviewing the OH&S Management and all appointments and promotions are merit OH&S is a significant component of our Risk System. based and based on the principles of the Public Management policy and the Board is totally Administration Act 2004. committed to establishing a healthy and safe work environment for our staff, contractors and Gifts, Benefits and Hospitality The Board has fulfilled its obligations under visitors by: Attestation section 7, public sector values,  Encouraging individuals to practice work I, Jim Atteridge of Mt Hotham Resort of the Public Administration Act 2004, upholding safety by providing information, instruction Management Board certify that the MHRMB responsiveness, integrity, impartiality, and training; has policies and procedures in place that are accountability, respect, leadership and human consistent with the minimum requirements and  Provide safe plant and systems of work; rights. accountabilities outlined in the Gifts, Benefits and and Hospitality Policy Framework issued by the Industrial Relations  Ensure compliance with legislative Public Sector Standards Commissioner; staff are informed about these gifts, benefits and There were no industrial disputes during the requirements and current industry standards. hospitality policies and procedures; and the reporting period. Audit and Risk Committee reviews the operation of the policies and procedures at The Mt Hotham Resort Management Board’s Occupational Health and Safety least once a year to ensure transparent Enterprise Agreement 2013 was rectified by Fair Committee reporting of accepted gifts, benefits and Work Australia on the 4th September 2013. There was no lost time due to injury. hospitality.

The Agreement is premised on recognising The OH&S Committee meets on a regular Hotham as a remote, hazardous and isolated basis and has been actively engaged in: work environment. The need to attract and retain the best, most competent, flexible, willing  Writing policy and procedures, including Jim Atteridge staff is essential in providing a seamless management and action plans; Chief Executive Officer customer service that enhances the visitor  Conducting workplace inspections; Mount Hotham Resort Management Board experience. 31st October 2013

17 MOUNT HOTHAM ALPINE RESORT MANAGEMENT BOARD Our OrganisationOur Worksafe Audit Mt Hotham Resort Management Enterprise  Confined Entry Space Refresher; Agreement 2013. In September 2012 the Board was audited on  Water Treatment, various courses including its Occupational Health and Safety UV disinfection; Management Systems. The outcome of which Training and Development  Payroll, Superannuation and Taxation was the development of the Safety Training and development at Mt Hotham update seminars; Improvement Plan 2012 – 2015. This plan will Resort Management encourages our staff to be reviewed each time a workplace inspector keep up to date with their knowledge and  Apprentice Mechanic TAFE course training; visits the resort. skills in a variety of work areas.  Chainsaw certificates;

The Board continues to meet the actions arising Training undertaken in 2012-2013 was  Return to work training; in the Safety Improvement Plan. productive for staff through the following  Authorised Officer training; The OH&S Committee held 4 meetings for the courses: 2012/2013 reporting period. There were no  Conflict Resolution; major OH&S issues in this reporting period.  First Aid Level II;  Cert IV in harvesting & hauling;  Resort Management Team  Annual CPR updates; OHS managers and supervisors 6 day course; and The day to day running of the organisation is  Hazardous area authority training for bus  Dogging course. undertaken by the Chief Executive Officer and a & heavy vehicle drivers; small year round work force, which is  Alpine Ecology Course; supplemented by seasonal staff and volunteer A number of these courses were either held ski patrollers. All staff are employed under the  Crown Land Law; onsite, locally or via online training. Other organisations either on mountain businesses or other Victorian Alpine Resorts were involved. Full-time Workforce 2011-12 2012-13

Management/ Administration 8F/7M 9F/6M

Resort Operations 3F/8M 4F/7M

ANNUAL REPORT 2012/13 ANNUAL REPORT 2012/13

1818 Organisational Structure The Alpine Resorts Management Boards act on behalf of the Crown (S35) in carrying out its functions and powers. A Board may employ any persons it considers necessary for the purposes of the Act (S41).

As at October 2013 the Board has the following structure:

BOARD

Jim Atteridge Chief Executive Officer

Tom Pelly Jenny Molloy Abi Adams Nicole Epema Manager Technical General Manager Chief Financial Manager Resort Services & Enviro & Accounting Operations Officer

Mick Cherry Fiona Hammond Transit Operations Technical Admin Bree Burgmann Kevin Raymond Maintenance Executive Assistant & Manager IT & Financial Supervisor Casual Supervisor Administration Officer Communications Controller Seasonal

Gavin Moody Gordon Thomas Trevor Taylor Angela Melaney Cherie Mance Transit Operators Manager Manager IT Administration Special Projects Finance Officer Seasonal Plant & Resources Administration Officer

Administration Kerry Steven Gribble Ski Patrol Claire Stevens Rodney Hodson Assistant Plant Operator Director Kondraschek Payroll Officer Solid Waste Seasonal Property & Records P/T Supervisor

Seasonal Andrew Swift Solid Waste Ski Patrollers Cultural Heritage Snow & Trail Paid & Volunteer Operators Clearers Officer Seasonal

Shane Scott Bev Lawrence Guest Service Manager Environmental Officers Workshop Supervisor Seasonal

Orme Kewish Vehicle Andrew Keily Manager Accountability Mechanic Waste Water Seasonal

Eddie Maguire Rebecca Read Apprentice Alpine Nursery Mechanic

Regina Losch Andrew Swift Nursery Assistant Tracks & Trails P/T

Track Crew Andrea Jordan Seasonal Nursery Assistant P/T

19 MOUNT HOTHAM ALPINE RESORT MANAGEMENT BOARD Information Technology Information & Communication Systems Information systems provide a vital service for all functions of the Board in operating a modern and efficient resort.

Included in the responsibilities of the Resort Entry to be purchased and control of Skier Bridge tunnel heating Information Technology function are: efficiently on smartphones and tablet and Dargo River UV discharge. devices.  Communication systems including  Online sales of Season Passes and Additional Systems Upgrades voice, data and internet; Group Resort Entry purchases are With the expanding technologies in use by  Electronic data storage and backup; automatically transferred to the Point the MHRMB, many systems received  Information system software and Of Sale and Licence Plate additional upgrades throughout the year. hardware maintenance and renewal; reconciliation software. This upgrade These upgrades include transition from completes the integration of all  General system controls and data; Microsoft XP to Windows 7 & 8 Desktop elements of the resort entry payment Workstations. Upgraded GIS and Graphic  Security; and and vehicle reconciliation process. Design software and computers.  Mobile systems management.  Assistance with the implementation of Alpine Easy Access Resort Entry System Downtime During the year the following projects for Mt Baw Baw alpine resort . were successfully integrated into the All systems were operated with sufficient Board’s management systems: back ups and maintenance and service Mobile LPR Vehicle Mounted routines to enable a 100% operating Camera System capability during the year. Resort Entry – Alpine Easy Integration of a mobile licence plate Access Refinements recognition parking inspectors vehicle. 2013 Statistics for The vehicle enables efficient Resort Entry www.mthotham.com.au monitoring throughout the car parks whilst providing Resort Entry payment Website information increasing compliance . The website received a new layout and Further expansion of the Alpine Easy visual refresh. Access Resort Entry System incorporating: SCADA Systems (supervisory Annual Visits control and data acquisition) 1,376,325 7% increase from 2012  Further expansion to the resort wide Scalable website redesign of SCADA network. Additional monitoring alpineeasyaccess.com.au enabling Highest Days 23,349 - 31 January Bushfires 17,171 - 5 July 2013

Highest Week 77,198 - 30 June - 6 July

2013 Statistics for m.mthotham.com.au Mobile Site

Annual Visits 228,729 20% increase from 2012

ANNUAL REPORT 2012/13

20 Emergency Management & Community Areas Emergency Management information sharing and the building of Cultural Diversity The Mt Hotham Resort Management Board’s collective knowledge. The Board has maintained the signage (MHRMB) Emergency Management Plan, as The Mt Hotham Municipal Fire Management systems which use graphic symbols to advise required under the Emergency Management Planning Committee (MFMPC) was formally Resort users of important features about Act 1986, continues to meet the needs of the established in 2011. The Committee is a Resort use. This has been particularly Mt Hotham community. The Resort subcommittee of the Emergency appropriate in alerting non-English speaking Emergency Management Committee Management Planning Committee and the visitors to the existence of safety hazards and (MEMC) conducts formal meetings twice a terms of reference endorsed were based on to any limitations on the use of particular year and assists with the planning and those in Part 6A of the Emergency areas within the resort and is in line with the coordination of emergency services for both Management Manual of Victoria. Government’s Multicultural Policy. response and recovery within the Resort. Membership of the Mt Hotham MFMPC The Committee comprises Board staff, consists of MHRMB, CFA, DEPI and Parks Women Victoria Police, Victorian State Emergency Victoria. The Board has appointed three female senior Service, Country Fire Authority, Department managers and a number of full and part time of Human Services, Resort stakeholders and Over a period of twelve months the female employees. The Board is committed other agencies as required. In conjunction Committee met on a regular basis to develop to providing equal opportunity advancement with the Alpine Shire (Dinner Plain EMP) and the Mt Hotham Municipal Fire Management for all employees and has adopted a the Committee of the Mt Hotham Airport Plan (MFMP). Subsequent activities included recruitment structure based on a merit based EMP, the Mt Hotham Resort EMP undertaking a stakeholder analysis, selection process. The Board is also Committee have a Memorandum of developing a communications strategy, committed and will continue to facilitate Understanding (MOU) for the sharing of identifying and assessing fire risks of concern balance where possible between work and resources for both response and recovery within the Resort and assigning appropriate family responsibilities for all employees. This during an emergency. treatments to address them. is consistent with the Government’s Office of Women’s Policy. Municipal Fire Management Plan The Municipal Fire Management Plan was Victoria has a long history of community, adopted by the Board on the 12th April 2013. Youth government and organisations working The Board employs a work experience youth cooperatively to combat the threat of bushfire. as the opportunity arises and actively However, recent challenges such as the Access and Diversity encourages participation by the Alpine decade of dry conditions, an increase in Indigenous Affairs Leadership School. The Board also provides people living in high risk areas and the The Board is committed to working closely regular environmental and safety student occurrence of a number of major fires, with the local Indigenous community in talks throughout the winter season. The prompted the need for increased coordination developing partnerships to achieve Aboriginal Board proactively seeks trade based and cooperation to secure fire safety across aspirations for land, culture, heritage, family apprentices and is in line with the the state. and community. The Board liaises with Government’s vision for young people. various leaders and councils in both capital In response to these challenges the Victorian works and planning projects within the Records Management Government established an Integrated Fire Resort. There is also an opportunity to MHRMB is committed to cataloging and filing Management Project (IFMP) Framework for explore the development of Indigenous records according to the Public Records Act Victoria in 2008. IFMP aims to achieve a cultural tourism through interpretation of 1973. Ongoing training with the Public consistent and effective means for fire walks and sites. We look forward to working Records Office of Victoria was undertaken in management planning within Victoria through closely with the Mt Hotham Indigenous the 2012-13 financial year. a commitment to cooperation, including community on our future projects.

21 MOUNT HOTHAM ALPINE RESORT MANAGEMENT BOARD RiskManagement Risk Management Policy The objective is to provide operational services of the workshop, fleet management and maintenance, transport, car parking and traffic control, snow clearing, cross country and ski field safety, public amenities, visitor safety, resort entry, snow play, insurance (public liability) and plant/vehicle workshop (part) to ensure visitors and staff of the resort have a safe and enjoyable experience.

Risk Management These processes are to ensure that there is effective control of risk areas and processes within A full review of the Risk Management the risk management framework to ensure the level of risk is satisfactory to the Board. Framework has been initiated by the Audit Resulting from this progress the Audit and Risk Sub Committee has endorsed the risk and Risk Sub Committee during the year management program for the Chair’s attestation in this annual report of operations. and as a result management are taking actions to ensure that the Mt Hotham Resort I, Deborah Spring certify that the Mt Hotham Resort Management Board has risk management Management Board has practices of risk processes in place consistent with the Australian/New Zealand Risk Management Standard identification and management that are and an internal control system is in place that enables the executive to understand, manage and consistent with Australian/New Zealand satisfactorily control risk exposures. The Audit and Risk Sub Committee verifies this assurance Standard ISO 31000:2009. The review and that the risk profile of the Mt Hotham Resort Management Board has been critically consists of a full analysis of risks associated reviewed within the last 12 months. with the operations of the Resort by staff, management and the Board.

Outcomes of the risk review highlighted the safety of visitors in the hazardous alpine Deborah Spring environment is critical along with other risk Chairperson areas in regard to water supply, treatment of waste products, bush fires and Mount Hotham Resort Management Board management information systems. In 31st October 2013 addition to the inherent risks an assessment is being made of existing relevant controls to I, Jim Atteridge certify that the Mt Hotham Resort Management Board has complied provide a priority of areas seeking attention with Ministerial Direction 4.5.5.1—Insurance. and resources to minimise the risks of adverse events at the resort. The risk management plan is also being incorporated into the annual financial reporting process to ensure adequate resources are allocated and prioritised to Jim Atteridge maintain the controls necessary for the Chief Executive Officer secure management of the Resort. Mount Hotham Resort Management Board 31st October 2013

ANNUAL REPORT 2012/13 ANNUAL REPORT 2012/13

2222 Statutory Reporting Corporate Plan a. to act as a committee of management of Privacy Act 1988 (Commonwealth) Section 53 of the Alpine Resorts any Crown land deemed to be The Federal Government introduced the (Management) Act 1997 requires the Board to permanently reserved under the Crown Privacy (Private Sector) Amendment Act 2000 prepare an annual Corporate Plan. The Land (Reserves) Act 1978; which amends the Privacy Act 1988 Corporate Plan must be approved by the b. to contribute, together with Tourism (Commonwealth). The main aim of this Minister each year. Victoria, established under the Tourism legislation, which came into effect on 21st The Corporate Plan must include: Victoria Act 1992, and the Council, to the December 2001, is to give more control over the way private organisations collect, use, i. A statement of corporate intent in overall promotion of alpine resorts; disclose and store information. accordance with Section 54 of the Act; c. to develop a tourism and marketing ii. A Business Plan containing the information strategy for and to promote each such required by the Minister; alpine resort and to collect and expend Mt Hotham Resort Management Board prides voluntary contributions from commercial itself in handling personal information with iii. Estimates of the receipts and expenditure undertakings in each such alpine resort for extreme care and diligence. In order to comply of the Board for the period of the plan. this purpose; with the Privacy (Private Sector) Amendment d. to provide services in the nature of : Act, Mt Hotham Resort Management has The Business Plan is also developed on an adopted the MHRMB Privacy Policy that is  garbage collection; annual basis to specify the annual objectives of complied with at all times. the Board and to measure the performance of  water supply; the organisation against the objectives  gas; National Competition Policy identified within the Corporate Plan.  drainage; Competitive neutrality seeks to enable fair The Board has identified and has structured its  sewerage; competition between Government and private Corporate Plan on a set of core  electricity; sector businesses. Any advantages or responsibilities. These are:  roads; disadvantages that Government businesses  Utilities;  fire protection; may experience, simply as a result of  Public Access, Safety and Education; Government ownership, should be neutralised.  snowmaking; and  Corporate Services; The Mt Hotham Resort Management Board  transport.  Environmental Land Management & continues to implement and apply this principle Services; e. for each such alpine resort and to charge in its business undertakings.  Business & Product Development; and contributions for the provision of those services;  Business Undertakings. The Board is one of five independent Alpine f. to collect fees prescribed by the Resort Management Boards within Victoria. It regulations for each such alpine resort; has established its own pricing regime within Obligations of the Board g. to attract investment for the improvement the ceiling prescribed by the Alpine Resort As a Committee of Management under the of each such alpine resort in respect of (Management) Regulations 2009. The Board, Crown Lands (Reserves) Act 1978, the Board which the Board is established; as the independent manager of the Resort’s has obligations to manage the land in h. to carry out any other function conferred assets, purchases services and goods in line accordance with the purpose for which the on the Board by or under this or any other with Government Board Purchasing land has been reserved and may exercise the Act; and guidelines. The Mt Hotham Resort powers conferred to Committees of i. to perform the board’s function in an Management Board complies with the Management under that Act. environmentally sound way. Governments policies for National Competition Policy.

The Board’s obligations under the Alpine The Board is also responsible for ensuring the Resorts (Management) Act 1997 are to effective compliance with relevant federal, Victorian Industry Participation Policy discharge it’s functions effectively and state Acts and legislation applying to the resort. (VIPP) efficiently. The Victorian Industry Participation Policy Additionally;- section 34(7) imparts to the (VIPP) was established in 2001 to actively Board the following attributes and authorities: Fair Trading Act encourage greater local industry From 1st June 2004 new regulations under the a. is a body corporate with perpetual participation in major Victorian Government Fair Trading Act 1999 came into effect. succession; and procurement contracts, projects and b. has a common seal; and infrastructure, investment attraction and c. may sue and be sued in its corporate The Fair Trading (Recreational Services) community facilities grants. name; and Regulations 2004 make it possible for suppliers of recreational services to obtain d. may acquire hold and dispose of real and The Victorian Industry Participation Policy Act consent from customers to waive their rights personal property; and 2003 (VIPP Act) was introduced in October under the Act, including their right to take legal e. may do and suffer all acts and things that a 2003. Under the Act, Mt Hotham Resort action against the supplier if they die or are body corporate may by law do or suffer. Management Board implements policies to injured while using the services. tenders over $1 million as required for s.35 of the Alpine Resorts (Management) Act Regional Victoria. The Minister for 1997: In compliance with the Fair Trading Manufacturing Exports and Trade is In carrying out its functions and powers, each (Recreational Services) Regulations 2004 Mt responsible for introducing the strengthened Board acts on behalf of the Crown. Hotham Alpine Resort Management has VIPP which took effect from 1st July 2009. installed warning signs at both resort entry There were no tenders for this reporting period. gates to alert visitors to the fact that they are s.38 of the Alpine Resorts (Management) Act being asked to agree to waive their rights 1997 lists some of the key functions of the under the Fair Trading Act 1999. Boards:

23 MOUNT HOTHAM ALPINE RESORT MANAGEMENT BOARD LegislativeCompliance Freedom of Information without fear of reprisal. It aims to ensure  Be responsible for carrying out, or appointing Mt Hotham Resort Management Board is openness and accountability by encouraging an investigator to carry out, an investigation referred to the public body by the considered to be a ‘Government Agency’ under people to make disclosures and protecting them when they do. Ombudsman; the terms of the Freedom of Information Act  1982. Accordingly, it is required to comply with Be responsible for overseeing and coordinating an investigation the procedures that have been prescribed The PD Act was part of a package of integrity under which members of the public may gain reforms introduced by the Victorian where an investigator has been appointed; access to information held by agencies. Government, which also established the  Appoint a welfare manager to support the Independent Broad-based Anti-corruption whistleblower and to protect them from any Commission (IBAC). reprisals; A decision to release information is made by  Advise the whistleblower of the progress of either the Principal Officer or an Authorised an investigation into the disclosed matter; Officer. An application fee of $25.70 applies at MHRMB has established procedures for the the time of publication. The Board has protection of persons from detrimental action  Establish and manage a confidential filing determined that the Authorised Officer for the in reprisal for making a protected disclosure system; Resort is the General Manager. about MHRMB or its employees. You can  Collate and publish statistics on disclosures access MHRMB’s procedures on our website made; at www.mthotham.com.au The Freedom Of Information Officer:  Take all necessary steps to ensure the identity of the whistleblower and the identity Ms Jenny Molloy Previous to the Whistleblowers Protection Act of the person who is the subject of the PO Box 188, Bright 3741 disclosure are kept confidential; and 2001 being repealed, MHRMB used a Ph: 03 5759 3550 Fax: 03 5759 3693 system, based on guidelines issued by the  Liaise with the Chief Executive of the public Email: [email protected] Ombudsman, to deal with disclosures of body. improper conduct or detrimental action by the Relevant Information MHRMB or its employees. The detailed How to make a 'Protected Disclosure' procedures were communicated to all The following is retained by the accountable MHRMB is committed to the aims and employees and Board members. Under officer and is available to the relevant Minister, objectives of the PD Act and values integrity and s104(b)-(j) of the Whistleblowers Protection Members of Parliament and the public on accountability in its administrative and Act 2001, there were nil disclosures made request: management practices. It fully supports the during the 2012-13 financial year. Disclosures processes of disclosure that reveal corrupt FRD 22D Statement of Availability of other of improper conduct or detrimental action by information: conduct, mismanagement of public resources MHRMB, or its employees, previously would or conduct involving a substantial risk to public  Statement declaring pecuniary interests be referred to: health and safety, or the environment. completed by all relevant officers;  Details of publications produced and where Protected Disclosure Coordinator: You can make a protected disclosure about available; Ms Jenny Molloy MHRMB, its Board Members, Officers or  Details of changes in prices, fees, charges, PO Box 188, Bright 3741 employees by contacting the MHRMB rates and levies; Ph: 03 5759 3550 Fax: 03 5759 3693 Protected Disclosure Coordinator, DEPI or  Details of any major external reviews; IBAC on the contact details provided below. Email: [email protected]  Details of major research and development activities; A disclosure about improper conduct or Protected Disclosure Contacts  Details of overseas visits; detrimental action by MHRMB, or its Mt Hotham Resort Management (MHRMB)  Details of major promotional, public relations employees, previously could be made directly Jenny Molloy - General Manager to the Ombudsman: and marketing activities; PO Box 188, Bright 3741  Details of assessments and measures Ph: 03 5759 3550 Fax: 03 5759 3693 undertaken to improve occupational health The Ombudsman Victoria Email: [email protected] and safety of employees; Level 9, 459 Collins Street (North Tower)  General statement on industrial relations Melbourne Victoria 3000 (DX 210174) and details of time lost through industrial Independent Broad-Based Anti-Corruption accidents and disputes; and www.ombudsman.vic.gov.au Commission (IBAC) Victoria  Major committees sponsored, purposes of Email: [email protected] Level 1, North Tower, 459 Collins Street, committees and achievements. Ph: 03 9613 6222 Melbourne Victoria 3001 Toll Free: 1800 806 314 GPO Box 24234, Melbourne Victoria 3000 Protected Disclosure Act 2012 (and the www.ibac.vic.gov.au The Protected Disclosure Coordinator is Whistleblowers Protection Act 2001 - repealed) Ph: 1300 735 135 responsible for the following: The Whistleblowers Protection Act 2001 was Email: see the website above for the secure repealed and replaced with the Protected  Receive all disclosures forwarded from the email disclosure process, which also provides Disclosure Act 2012 (PD Act) on 10th February protected disclosure officers; for anonymous disclosures. 2013. As the change of legislation occurred  Receive all phone calls, emails and letters midway through the 2012-13 financial year, this from members of the public or employees Disclosures under the Protected Disclosure disclosure complies with the requirements of the seeking to make a disclosure; Act 2012 PD Act and the Whistleblowers Protection Act  Impartially assess each disclosure to In 2012-13 there were no disclosures received. 2001, for each of the relevant time periods. determine whether it is a public interest disclosure;

Mt Hotham Resort Management Board  Refer all public interest disclosures to the ANNUAL REPORT 2012/13 (MHRMB) is subject to the PD Act which Ombudsman; enables people to make disclosures about improper conduct within the public sector

24 Ski Patrol & Skier Safety Whilst we received close to average snow falls, it was punctuated by warmer than average temperatures, and more than average rainfall significantly impacting the snow cover.

Snow Falls and Lift Operations temperatures which resulted in very Avalanche Control Season 2013 received close to average substantial snow loss. The consistent and often large snowfalls snow falls, however, it was punctuated by in late July through to mid August warmer than average temperatures, and The presence of open and flowing necessitated 6 mornings of Avalanche more than average rainfall. Less than creeks in critical areas was often the Control work. Significant hazard was ideal snowmaking conditions also cause of some lifts being closed, rather mitigated on several occasions and the prevailed during the early part of the than lack of cover on the runs avalanche prone areas were opened for season, which had a compounding effect themselves. Snowmaking proved itself the public in a timely manner. All control on the snow cover, and resulted in fewer again, and enabled some areas to be work was carried out without the use of than usual operational days. opened when there was insufficient explosives. A total of less than 15 hours natural snow. At times, The Summit was was paid for control work. The first lifts opened on June 22, and the closed due to no snow, while Heavenly season closed on September 21. Valley was open for limited runs. Incidents ‘Heavenly Valley’ opened on July 8. From Although marginal conditions prevailed in July 16 to July 18, more then 80mm of The season was marred by many weeks many areas of the resort for a rain fell, which washed away all of the of marginal snow cover; however, good substantial period of the season, accident natural snow and forced the closure of all surface conditions prevailed in the open averages were down on previous years. lifts on July 19. The following day heavy areas for the majority of the winter. The The accident rate per thousand skier days snow began to fall, and on July 21 period from late July until early was 1.30 which is well below the accepted ‘Heavenly Valley’ reopened, and September delivered great conditions average of 2 per 1000 skier days and remained open until September 17. across the majority of the resort. down 35% on last year. The patrol Consistent snowfalls during August saw attended to 599 callouts with 301 requiring The highest recorded snow base was on ‘Blue Ribbon’ open (for three weeks) on further treatment at the Medical Centre. August 23 at 143 cm, and the biggest August 9 and ‘Keogh’s/Orchard’ open (for Very few accidents occurred in the storm delivered 81cm over a seven day 12 days) on August 20. The last week of marginal area’s, and none stand out as period. The total snowfall was 302 cm, August and the first week of September being directly related to the poor snow and the total rainfall was 438 mm. received way above average

25 MOUNT HOTHAM ALPINE RESORT MANAGEMENT BOARD SkierSafety Ski Patrol & Skier Safety Cont. cover. There was a concerted focus on the bowl on the south side of Swindlers volunteer trainee ranks mid season. hazard mitigation and signage in the Spur. There were three new Trail Crew recruits marginal areas. Runs were often for this season. ‘Upgraded’ to reflect the conditions, and Patrol New Procedures at times, ‘Patrol and Guest Services’ Area Supervisors W.O.D. upgraded to Expert personnel were stationed at lifts to inform Each day, a supervisor was allocated to The entrance to ‘Wall of Death’, below the guests. An unprecedented amount of one part of the resort for the whole day. ‘The Funnel’ was permanently upgraded person hours was invested preparing They oversaw daily operations and to ‘Expert’ with appropriate signage marginal areas with rope lines, signage training in that area. This ensured placed below the ‘Playground Trail’. etc, before opening them up for use by continuity and completion of any tasks New Signs and Directional Banners the patrons. and undoubtedly resulted in a better and An assortment of new hazard marking more consistent product for the guests. equipment was imported and trialed. In There were very few major incidents. Some fine tuning of the role is needed. The most notable being a rope general it presented a more professional evacuation from behind ‘Burrumbeep Ski Open Day looking mountain and greatly reduced set Club’ for an adolescent who sustained a An open day was held in July to up and maintenance time, however some significant lower leg fracture. He later exhibit a variety of the skills of it proved not fit for purpose. The most required helicopter evacuation. There of the Ski Patrol, with the intention of suitable equipment has now been was also a significant lower leg fracture attracting suitable potential recruits to identified. the patrol. 25 people attended the sustained on ‘Lower Sundowner’ that Temporary Toboggan Slopes required a doctor on scene, and a local ‘Open Day’, and we enjoyed our biggest To compensate for insufficient snow in youth sustained a femur fracture at the turn out for the induction program for the snow play area at Wire Plain during ‘Blue Ribbon’ load area. many years. early season, toboggan slopes were Search and Rescue Training Program Overhaul constructed and maintained at various The training program saw a major locations to facilitate the high number of Three successful ‘Beyond the Boundary’ overhaul which has proved substantially non skier visitors to the resort. No searches were performed. Each party more efficient, yet still as effective. This accidents were reported at any of the had deliberately gone out of bounds and has enabled us to take on more trainees temporary snow play areas. had then become disorientated. for next year than we have for many The first was for a lone skier who was seasons. School Talks found in upper Swindlers creek, before Patrol continued the School Education Gotcha/Keogh’s/Orchard area had Snow Stake Reads program. 15 after hour’s presentations opened for the season. He had rung for Reading of the snow stakes at 5.30 were delivered to visiting school groups. assistance when he became unsure of each morning after snowfalls was The focus is on snow safety, and his position. reintroduced, resulting in more accurate accepted/ expected slope use. reporting for the marketing department. The second involved two skiers who had 2 patrollers were involved on an as left the top of Orchard late in the day and Keystone needs basis. A total of 19 hours. were reported missing by their children at The ski patrol exchange with Keystone 8.30 pm. They were found at 12.30 am, in Trail Crew had a US patroller come to Hotham and the valley between Middle Spur and As well as helping enormously with one of the Hotham patrollers given the Swindlers Spur. equipment maintenance, the Trail Crew opportunity to go to Keystone. The The third was a brief search for four men program proved a great stepping stone exchange program gives patrollers the who had intended to ride out of bounds for those who were not yet up to the on chance to learn and exchange ideas and behind Golden Point. They became lost snow skills standard. Two ‘Trail Crew’ is beneficial to all participants. and also called for assistance. A ski members from last season gained the patroller on snowmobile located them in necessary experience and joined the

Mt Hotham Natural Snow Base

250

200

150

100 Depth(cm)

50

0 6-Jun 6-Jul 6-Aug 6-Sep 6-Oct

Year 2000 Year 2013 10 Year Average ANNUAL REPORT 2012/13

26 Ski Patrol & Skier Safety Cont.

Winter 2011-12 2012-13 Ski Patrol 2011-12 2012-13

Days for Winter 113 108 Paid Ski Patrol Staff 20 19 Night Skiing Nights 30 24 Paid Ski Patrol Staff Shifts 1,126 942 Maximum Natural Snow Depth (cm) 203 128 Total Accumulated Snowfall (cm) 395 299 Volunteer Ski Patrol Staff 23 33 Visitor Days 403, 635 264,674 Volunteer Ski Patrol Shifts 248 234 Skier Days (Approx) 326,598 193,212 Accident Rate per 1000 Visitor Days 1.06 0.95 Volunteer Ski Patrol Trainees 7 8 Accident Rate per 1000 Skier Days 1.45 1.30 Days Attended by Ski Patrol Trainees 166 155 Incidents Attended by Ski Patrol 928 599

Incidents referred to Medical Centre Cross Country Ski Patrol Shifts 24 12 by Ski Patrol 498 301

Snow Play This year our Snow Play and toboggan area at Wire Plain was very popular with families visiting from all over the state.

Snow play is an important part of Mt Hotham’s alpine experience as many family groups, extended family groups and lots of first timers who are visiting our toboggan area.

The site at Wire Plain is protected from extreme weather conditions and provides a beautiful area for families and non- skiers who are enjoying the snow for the first time or regular guests to the mountain.

The Board supports a private operator hiring toboggans, kids snowmobiles and providing a safe environment for other related snow play activities. The Board has maintained the snow play area for the past two winters through building and grooming a toboggan slope during the season, and providing a bus system to transport visitors to and from the village centre.

The Board plans to expand facilities in the snow play area by firstly developing a strategic plan for the site and seeking ways to fund basic infrastructure development including, electricity and water supply, toilets, and a day centre.

27 MOUNT HOTHAM ALPINE RESORT MANAGEMENT BOARD CrossCountrySkiing Cross Country Skiing The Mount Hotham Resort Management Board provides a free cross country trail system.

Despite being a difficult year with snow Cross country skiers were able to ski Plain/ Christmas Hill trails which were fall, the cross country trails held up right through to Dinner Plain for a better equipped for the conditions extremely well. reasonable portion of the winter. resulting in a quite successful day for Mt Hotham Resort Management Board’s Although, the ‘Hotham to Dinner Plain’ participants. groomers did an outstanding job of snow race was unable to be held on the usual farming, harvesting and generally getting track due to lack of snow on the race snow where the trails needed it. date, the race was deferred to the Wire

ANNUAL REPORT 2012/13 ANNUAL REPORT 2012/13

2828 Transit Operations Transit Operations consists of the internal Village Bus Transport System and car parking assistance for day and overnight visitors. The transport system operates between 6.30AM and 2.00AM (3.00AM on Fridays for late arrivals) seven days a week during the designated snow season.

Transport and Traffic Control the village accommodation area Driving Authority. Ten new drivers Parking assistance and direction is every 10 minutes during peak times successfully completed the 2 day provided to day and overnight visitors which we proudly reached. With all Hazardous Area Bus Driving course between 7.00AM and 2.00AM buses in operation, the Village conducted by National Industrial (3.00AM on Fridays) with additional Transport has the capacity to Skills Training (Wodonga TAFE) in staff and buses rostered for busy transport in excess of 11,200 June. All participants completed the arrival nights. The transport system patrons per day. We estimate that course attaining a high level of interfaces with the parking control to over the entire season we have over competence. provide guests with a seamless 1.1 million individual passenger service throughout the village whether trips. The extreme conditions that All Transit Operations staff are multi they are arriving for the day or an we operate in demand a high level skilled and operate as bus drivers or overnight visit. of driving skill, adaptability and safe car parkers as required. Three operating practices. Parking Regulation Enforcement We have a fleet of seven 70 officers monitored the day and passenger Mercedes urban transit Transit Operations has a staff of 20 overnight parking areas to ensure buses providing customer transport comprised of experienced returning compliance with the resorts parking throughout the village including long staff and new recruits. Our staff regulations. Overall compliance term car parks and the cross country come from a wide range of continues to improve, assisting the areas. These buses have been backgrounds and experience and safe and efficient functioning of the winterised to ensure that they are are aged from 25 years to 64 years. resort. able to function in alpine conditions. Customer service experience and Due to the layout of the village and good inter-personal skills are highly No major accidents or major the extreme weather conditions the regarded. This depth provides a breakdowns were reported this transport service operates 19 hours wealth of life experience and season reflecting the skill of the per day to ensure the safety and knowledge to draw on. All staff are drivers, management systems and the comfort of resort visitors. Our bus required to have as a minimum: a high level of maintenance and operating hours are longer than any Medium Rigid Licence, Victorian interaction provided by the work shop other ski resort in Australia. Our KPI Taxi Directorate Drivers mechanics. is to provide a bus at each stop within Accreditation and Hazardous Area

29 MOUNT HOTHAM ALPINE RESORT MANAGEMENT BOARD TransitOperations Fleet Maintenance our capability to maintain containment faults and were issued with Roadworthy Staff at the Mount Hotham Resort lines and areas around the village and Certificates before the winter season Management workshop maintain a large resort and provide protection of our commenced. No defects were found on fleet of vehicles and plant in full infrastructure. any of the Mount Hotham Resort readiness for a variety of tasks Management Board’s buses. throughout the year. Core services The MHRMB workshop was up-graded include transport, garbage collection, to include additional work bays to the Snow Clearing snowmobiles for winter access and side of the workshop. These bays will Immediately after snowfalls, areas within larger plant for clearing and cross be utilized as an oversnow workspace. country trails grooming. the village including day and overnight Utilizing space from the gas car parks, bus stops, loading zones and vaporisation plant, this will greatly some pedestrian and skier access areas This year the introduction of two MK4 enhance the oversnow maintenance were initially cleared and further 0305 Mercedes Benz buses for Winter capabilities and gives the workshop an monitored by MHRMB to assist guests, had great advantages. The new buses additional area to work on fleet commercial operators and staff. to Hotham gave patrons increased vehicles as required. space and more head room for travel. Overall, there were 2,680 hours of snow Bus drivers also received better Other renovations to the workshop ergonomics and comfort. clearing operations within the 2013 included the relocation of the welding winter season; lower than the 3,459 bays. Moving these bays to the end of hours for 2012. This is a reflection of the Two of the MK4 0305 Mercedes Benz the building reduces and isolates risk below average snowfalls for the 2013 buses were vinyl wrapped completely in of injury to workshop personal. For a season, all effort was put in to Renault advertising. This was great OH & S standing point, this makes it a maintaining, collecting and carting exposure for Renault as these buses safer place of work. farmed snow from stock piles. were used daily for guest village transport. Future renovations to the workshop Snow Clearing Hours will include the relocation of the Hours Weekly safety checks and preventative amenities and tearoom facilities. maintenance on buses and other fleet 4000 vehicles continue to be successful in The workshop is looking at introducing reducing breakdowns and increased the two additional MK4 buses to the fleet 3500 overall reliability of the fleet. Periodic to further enhance the MHRMB’s maintenance was carried out on heavy transport capabilities during the Winter 3000 3459 plant and light fleet vehicles to prevent period. unscheduled breakdowns and ensure 2500 2680 reliability throughout the Winter season. Annually an external audit is 2000 conducted on the buses, where tests Over the Summer the Mount Hotham 1995 include a dynamic test, break rolling 1500 Resort Management Board purchased resistant and visual inspections. This additional light plant during the fire determines most defects and faults. 0 period. This new equipment enhanced This year all buses received no visual Year 2011 2012 2013

ANNUALANNUAL REPORT REPORT 2012/132012/13

3030 Environment Stewardship Sustainability conducted by wildlife biologist Dean Heinze areas of upper Swindlers Creek had to be The Board remains committed to investigating three sites are regularly monitored; Mt Little delayed because of fire activity. Work funded opportunities to reduce the impact of activities Higgibotham and the east of Mt Higgibotham, by the East Gippsland CMA targeting willows and operations on the sensitive alpine both above and below the Great Alpine Road in the Dargo catchment of the resort was also environment. Emphasis is placed on waste within the resort and the west Mt Higgibotham deferred until summer 2013-14. Further work water discharge, water consumption, waste site in the adjacent Alpine National Park. The by Board staff to removal willows, particularly minimization and greenhouse gas emissions. monitoring results in 2010 and 2011 had around the areas of Wire Plain, are planned for revealed some of the lowest numbers of 2013-14. Waste water discharge is monitored for quality Mountain Pygmy-Possums recorded at the and quantity with the Board seeking to improve east and west Mt Higgibotham sites. The Ten remote sensing cameras to monitor Class A water reclamation each year. Water trend continued in 2012 and has led the Board populations of wild dogs, foxes and cats within consumption is constantly monitored to implement actions to reverse what appears the resort. This informs decisions to within the SCADA system. The Board works to to be a substantial population decline. implement shooting or trapping programs to improve waste recycling rates for cardboard, Additional predator control work was reduce numbers of predators. The Board co-mingled and organic material each year to undertaken during summer 2012-13 in continues to support and contribute funding to minimize the waste sent to landfill at addition to the baiting program. Planning on a 1080 baiting program within the resort and Cobungra. More information on these several projects to improve habitat and surrounding Alpine National Park. programs can be found within the relevant increase habitat connectivity has begun. Utilities section of this report. Geotech Works Board staff cared for a Long-Footed Potoroo Land Stability Program The Board collates data from consumption of which had been struck by a vehicle along the Since 1998 the MHRMB has been working electricity bi annually, and unleaded and diesel Great Alpine Road just outside the resort cooperatively with DEPI to manage land fuel annually for comparison and to determine during winter. The female was successfully stability risks across the resort. The land greenhouse gas emissions for the reporting treated in Omeo and released back to the area stability program has identified and mitigated a period. A breakdown of consumption data and in October 2013. Staff discovered a second range of risks during this period, ranging from greenhouse gas emissions is shown in the individual at the release site, most likely a the replacement of the failing retaining wall at table on the opposite page. In the reporting breeding pair. This was a wonderful result for the rear of the Arlberg, replacement of the period the Board installed an automated this endangered species. system to the pavement heating for the Great potable water supply pump station, due to Alpine Road Tunnel resulting in an 89% In May 2012, the Broad-Tooth Rat was listed major rock stability issue above the site, reduction in electricity consumption when on the Flora and Fauna Guarantee Act. The rebuilding of the Slatey Cutting bus shed due compared to 2011-12 and an annual savings Broad-Tooth Rat is typically found in cool to failed footings and a range of other high of over $20,000. areas at higher elevations where there is risks identified through the land stability survey significant rainfall in areas of dense vegetation conducted by Snowy Mountains Engineering Threatened Species and Biodiversity with little to no overstorey such as sedgelands Corporation in 1997. Conservation and heathlands. The resort is known to provide suitable habitat for this species. The current high risk land stability issue that The Victorian Alps is of special ecological the Board is working on is the replacement of value. Alpine ecosystems have a significant the Swindlers Valley storm water pipeline. number of threatened and endemic species. Environmental Programs Protected by the Flora and Fauna Guarantee In December 2012, the environment Act 1988 and Commonwealth Environment department purchased a hand held Garmin The existing corrugated steel pipeline was Protection and Biodiversity Conservation Act GPS to assist in mapping and collation of an installed in the mid 80’s; following a high 1999, the resort contains a number of listed ongoing database of all invasive weed control intensity rainfall event in 2010. endangered species. The Board works to work. Minimal revegetation works were completed with a focus on treatment or preserve threatened species and biodiversity The pipeline has exhibited significant loss of removal of invasive species for summer 2012- within the resort through environmental structural integrity, sections of the pipeline have 13. Several known English Broom sites were programs particularly ongoing invasive weed collapsed and the invert of the pipe is targeted below the Great Alpine Road within and pest animal programs. significantly rusted in many sections. The the village and along Swindlers Creek. The overall condition of the pipeline has been old quarry site on Mt Little Higgibotham was The Board continues to support ongoing assessed as poor. The risk profile of the treated for willows, Salix cineria. A proposed scientific research to monitor the Mountain pipeline has been assessed as high by GHD project with the Mount Hotham Skiing Pygmy-possum (Burramys parvus) population. and the replacement of the pipeline is now a Company to remove willows from the ski field As part of an annual trapping program priority project.

Swindlers Valley ski run is a key link, providing return access to the Hotham Village from Heavenly Valley and Orchard. The MHRMB is committed to working with DEPI and the State Government to replace this pipeline to ensure that this key asset does not fail.

During the current reporting period, the MHRMB staff and Coffey Geosciences have worked on the design and have developed a program to replace pipeline. The Board formally advised the Minister of the measures taken to manage the risks and the proposed action to replace the pipeline. The Board will continue to manage the risk in accordance with its prepared risk mitigation strategies.

31 MOUNT HOTHAM ALPINE RESORT MANAGEMENT BOARD CapitalWorks Capital Works

Each year the Board adopts a capital completed. At Slateys Shed new floor the reduced energy costs for the winter works program which is prioritized from heating and a concrete floor was 2013 period a two year payback for this a comprehensive 10 year program. installed. Ongoing works in relation to the project is expected. For the period July 1 Works are funded from the Boards multi service trench extending from the to September 30 2012, the road heating surplus so investment in capital works workshop to Slateys Shed continues. consumed 102,784 kWhours of electricity varies from year to year. From time to Works in the reporting period related to at a cost of $30,046. For the same period time the Board secures third party funds the extension of the multi service trench in 2013, 30,407kWh at a cost of $6,005 for specific projects. Projects are across the workshop precinct with some was incurred by the Board. selected to meet the highest priorities services run in to the workshop. based on seven key drivers: Limited works continued on the Work was completed relating to the construction of the Hotham Dinner Plain  Asset Replacement; installation of an automated control trail due to fires, however several track system to manage the heating of the marker signage was installed and some  Infrastructure Maintenance and paved road at the Hull Skier Bridge to regular trail maintenance conducted. Development; optimise energy use at the site. Based on  Opportunistic;  Regulatory; Budgeting and Total Expenditure for Year Ended 31st October 2013 CAPEX External Expenditure  Village Aesthetics; allocation as at funding year to  Geotech/Land Stability; and Dec 2012 ($) received ($) date ($) Asset Replacement  Risk Management. IT desktop replacement and software upgrades 19,500 22,877 There were limited capital works IT – Alpine Easy Access 13,500 11,500 projects within the reporting period due Sponsorship vehicles 40,000 30,405 to budget constraints and the summer Dog Harrow 3,000 3,000 fire event and several projects have Snowmobile (insurance claim) 10,000 (6,022) 15,707 been deferred until 2013-14. This table Solar lights – chain fitting bay (insurance claim) 0 (3,309) 4,309 shows the breakdown of budgeting and Gernie pressure washer (insurance claim) 0 (7,230) 8,230 expenditure for the reporting period. Moritz gas metres 0 38,172 Garbage hutches (budgeted from OPEX) 0 13,875 Several assets were replaced in the Deferred purchases 40,000 0 reporting period through insurance Unbudgeted items (buses and firefighting equipment) 0 56,064 claims to the item value. These included Asset replacement sub totals 126,000 204,139 solar lights at the Black Hole chain fitting bay, a snowmobile and the Gernie hot Infrastructure wash. Several budgeted purchases were deferred and unbudgeted Management salaries 150,000 131,172 purchases included the opportunistic Slateys Shed, Grit Bay (deferred) 39,000 3,384 acquisition of five buses and equipment Garbage machine upgrade 15,000 37,071 including brushcutters and pumps for Landfill capping and tipping stage 1 40,000 42,918 fire fighting purposes. Hull Skier Bridge electronic heating automation 15,000 47,215 Staff Car Park Upgrade 18,000 19,905 The other key asset replacement work Slateys Shed slab and floor heating 39,000 42,878 was associated with the relocation of Slateys multi services trench 225,000 167,305 gas metres at Moritz due to a high (reduced scope of works, deferred til 2014) pressure pipeline having been installed Hotham Dinner Plain Trail 40,000 (10,000) 24,908 in a non-ventilated space. The metres Workshop extension bays 75,000 79,003 had be inappropriately installed within Workshop gas boiler relocation 20,000 52,549 the car park area and the Board was Deferred projects 105,000 0 advised by Energy Safe Victoria the Swindlers Valley pipe replacement 217,227 127,738 situation did not comply with guidelines Infrastructure sub totals 998,227 776,046 and would be required to be relocated to an external wall. Intangible Assets Ultima Lot 1 - right to lease & develop land parcel 42,208 Costs for capping and tipping were associated with the removal and transport of suitable clay material and Total CAPEX Year Ending 31st October 2013 ($) 1,124,227 1,022,393 earthworks at the Cobungra landfill. In addition a dog harrow was purchased to enable staff to turn the solar drying Consumption by direct Board activities biosolids at the site. An upgrade to the Electricity Diesel fuel Unleaded fuel Greenhouse gas garbage PB200 Kassbohrer (kat) was (kWh) (litres) (litres) emissions (tonnes) completed including a complete refurbishment of the mechanical system 2012/13 946,384* 143,448 16,791 1909.0* and installation of a garbage collection 2011/12 950,224 133,525 17,036 1740.0 body. The vehicle was operational for 2010/11 1,006,838 127,810 21,737 1906.8 winter 2013. *Pump house figures estimate only

ANNUAL REPORT 2012/13 The workshop received an extension creating two new kat bays and works to relocate the gas vaporisation room were

32 Property Management & Development One of the key legislative objectives of the Board is the development of Mount Hotham in a manner that is sustainable and compatible with the environment.

Native Vegetation resorts. The policy approved in 2002 Indigenous Land Use Agreement (ILUA) The Board coordinated an all resorts takes into account probity, conflict of which must be registered under the response to the Native Vegetation interest, public interest and competition Native Title Act 1993. The ILUA was Review project undertaken by the requirements and is based on the prepared in collaboration with Native Department of Environment and Primary principles of demonstrated public and Title Services Victoria and after Industries in 2012. In May, 2013 the economic benefit, transparent lease consultation with the Gunaikurnai Government released reforms to allocation and process, appropriate lease people it was signed by the Board and regulations for the permitted clearing of terms and conditions, consistent lease the Gunaikurnai Land and Waters native vegetation to deliver better documentation and approval processes. Aboriginal Corporation (GLAWAC) on environmental outcomes and reduce Since the adoption of the Alpine Resorts 23rd May 2013. confusion and costly green tape for Leasing Policy, 23 new leases have The National Native Title Tribunal landholders and farmers. The been issued in the Alpine Standard development and implementation of a confirmed that the agreement was Lease form with an average lease term registered on the Register of Indigenous strategic offset approach has of just over 27 years. This represents commenced with the following key Land Use Agreements on 12th August 25% of the leased or occupied sites 2013. principles: within the Resort. i. Developers of alpine resorts will Amendments to the ‘Traditional Owners follow standard approval process Building Services Settlement Act’ (TOSA) were passed in under the Planning and Environment The Board has a legislative obligation Parliament on 17th February 2013 and Act 1987 for activities that impact on under s212 of the Building Act 1993 to are now in operation. The amendments native vegetation. administer the provisions of the Act, the to Part 4 of this Act which deals with the ii. Developers of alpine resorts will set Building Regulations 2006 and the classification of land use activities now out their long-term offset Building Code of Australia within its area provides greater certainty for investment requirements associated with alpine of jurisdiction. During the past 12 and development in the alpine resorts. resort master plans. months, the Board engaged the services iii. Offsets on Crown land will be set of Mr Phillip Davern to fulfil the role of Environmental Health Services aside specifically for developments Municipal Building Surveyor in order to on alpine resorts. carry out its responsibilities under the (Report by Indigo Shire Council) iv. Developers of alpine resorts will have legislation. Food Premises the option of purchasing the required During the 2013 season 20 food offsets from the state government An inspection program focussed on premises were registered with Council with minimum transaction costs. ensuring existing buildings achieve a falling either into a Class 1, Class 2 or v. Offsets for developments of alpine satisfactory level of fire and life safety Class 3 risk category. It is anticipated resorts will meet equivalent has been undertaken with a number of that the number of food registrations will regulatory standards as elsewhere lodges and apartment buildings increase during the next ski season. across Victoria. inspected for compliance. Providing During the routine prescribed guidance on the administrative accommodation inspections it was The details of this approach will be obligations imposed on owners and observed that various ski lodges finalised during the 2013-14 reporting managers to maintain nominated provided food (either continental period. essential safety measures within their breakfast or starter kits for guests), building, has also been a priority. Bushfire Management which would require food registration. It was explained to these lodges that The Bushfire Management Overlay A total of twenty (20) buildings were Council would review this practice and (BMO) of the planning scheme is a inspected with the majority of issues provide advice before the next ski planning control that aims to implement identified relating to minor deficiencies in season to be able to determine if and the State planning policy for bushfire, the exit signage, door furniture and smoke what type of food registration is objective of which, is to strengthen alarm/detector coverage. required. community resilience to bushfire. Native Title Mount Hotham Food Premises The Country Fire Authority, the MHRMB has been engaged in Category 1 1 Department of Transport, Planning and negotiations with the State and the Category 2 17 Local Infrastructure, the Department of Gunaikurnai in relation to a native title Category 3 2 Environment and Primary Industries and claim by the Gunaikurnai People since Total 20 the Resort Management Boards have September 2010. been working collaboratively to develop a All 20 registered food premises were schedule to the Bushfire Management In November 2012 the Board was inspected and 6 follow up inspections Overlay (BMO) which will establish an presented with the ‘Heads of Agreement’ were conducted for the premises that alternative approach to prioritising the dealing with the public works and did not comply. Throughout the season protection of human life at the alpine approved the terms of the agreement the majority of food premises inspected resorts. A draft schedule has been subject to specified terms and conditions. were found to be satisfactory. However, developed and is intended to be included The Minister’s endorsement and Council identified several premises, in the planning scheme as an confirmation of the Board’s power to which require extensive structural amendment in the 2013-14 reporting enter into the Agreement was provided improvements. Council will inform these period. by letter on 24th January 2013 and the businesses that a registration will not be Agreement was signed by all parties on granted unless these upgrades are Leasing 4th March 2013. completed before the next registration The Alpine Resorts Leasing Policy, The formal instrument to give effect to including the standardised lease the terms of the Agreement is an documentation, provides the framework for the leasing of Crown Land in alpine

33 MOUNT HOTHAM ALPINE RESORT MANAGEMENT BOARD Property Management & Development& PropertyManagement period. Council needs to be satisfied that Property Sales all the relevant requirements of the Food Real estate sales have declined since the peak in 2006 which produced an annual turn- Act 1984 with respect to the premises over of $17.9M. In the seven years since sales volume has ranged from $5.9M to have been complied with. This is in $13.9M per calendar year. The year to date (October 2013) total of $4.2M compares to accordance with section 38D(2)© of the $4.7M for the same period last year. Turnover in real estate sales for the last 15 years is Food Act 1984. shown graphically below. Five businesses were selected to participate in a random sampling program Mt Hotham Property Sales of both food samples. These samples were forwarded to an analysis laboratory $18,000,000 for testing. All food samples were $16,000,000 satisfactory. $14,000,000 Tobacco Act Compliance Tobacco education visits were provided to $12,000,000 tobacco retailers, licensed premises and eating establishments. New legislation $10,000,000 has come into force as of 1st December 2012 surrounding tobacco plain $8,000,000 packaging. Retailers are now responsible for ensuring all tobacco products that they $6,000,000 buy, sell or offer for sale meet the tobacco $4,000,000 plain packaging and new heath warning requirements. $2,000,000

Accommodation $0 Accommodation facilities are required to Year be registered under the Public Health and 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 YDT Wellbeing Act 2008 as prescribed accommodation if payment is made for a person or persons to be The median price for property transactions for the last eight years from 2005 to 2012 accommodated. For the 2013 season has been in the $180,000 to $300,000 price bracket and the year to date median price there were a total of 53 accommodation of $180,000 for 2013 similar to last year, but the average unit price per square metre of facilities registered and inspected. It is $3,100 is a slight increase on last year’s figure of $2,900. The number of sales is also anticipated that the Department of Health down compared to previous years. Details are shown graphically below. will make some changes or clarify the definitions of the various types of prescribed accommodation. This may Mt Hotham Property Sales affect the number and type of premises to Median No. of be registered during the next ski Price Sales season. Council will keep all operators $350,000 and the MHRMB informed about these 100 changes under the Public Health and $300,000 Wellbeing Act 2008. One issue which will 90 need to be clarified before next ski season 80 $250,000 is the issue of rooming houses. Rooming 70 houses are administered under the Public $200,000 60 Health and Wellbeing Act 2008 and the 50 Residential Tenancies (Rooming House $150,000 Standards) Regulations 2012. 40 $100,000 30 The protection of the health of the many patrons that use Mt Hotham on a yearly $50,000 20 basis is paramount and as such, it is 10 essential that Environmental Health $0 0 Officers carry out regulatory duties to Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 ensure full compliance and a high Median Price No. of Sales standard of public health. The Environmental Health team of Indigo Shire Council have again been pleased to Statutory Planning provide this service to the MHRMB. The Alpine Resorts Planning Scheme sets out the policies and requirements for the use, development and protection of land at Mt Hotham. The Minister for Planning is both the planning authority and responsible authority for the scheme, which is administered on his behalf by the Department of Planning and Community Development (DPCD). The Board has referral authority powers in relation to servicing and land stability and it can also provide comments on planning applications more generally as the land manager.

In 2012-13 only 2 planning permit applications were processed with a total estimated construction value of $0.5M. ANNUAL REPORT 2012/13

34 Utilities Under the Alpine Resorts (Management) Act 1997 the Board is responsible for the provision of a range of key infrastructure services that support the safe and reliable operation of the resort.

Key utility services provided by the Board software and incorporates local roads to meet regulatory compliance, weekly include a reliable supply of potable water and tracks as well as land data for all drinking water samples are collected and that conforms to Australian Drinking properties. The GIS is evolving into a tested for E. coli and turbidity. Samples Water Guidelines, the collection and comprehensive management tool and are taken at two points; immediately after processing of wastewater to comply with will continue to be upgraded and UV treatment and at two of several EPA license limits and the DHS Risk enhanced as more data is collected. In designated consumer tap points Management Plan, the disposal of 2013, the Board entered into an throughout the resort. Monthly sampling is putrescible waste at the Cobungra landfill agreement with the Department of also taken from the raw water weir prior to in accordance with the EPA best practise Environment and Primary Industries for UV treatment. No E. coli was detected in guidelines for landfills (BEPM) and the spatial data sharing and has received any of the 53 samples from the drinking storage and supply of LPG throughout the access to high resolution aerial water reticulation system during the village in compliance with the Gas Safety photography dated December 2011 and reporting period achieving 100 per cent Act 1997. LIDAR mapping data. This information compliance with the drinking water quality has already proved valuable for several standards. A copy of the 2012-2013 proposed projects. Drinking Water Annual Report can be Asset Management found on the website at The provision of compliant and well www.mthotham.com.au maintained infrastructure and equipment Potable Water The source of the village water supply is is a critical success factor for the resort, The Board holds a licence with Goulburn the upper reaches of Swindlers Creek. A particularly given the resorts geographic Murray Water for the extraction of water catchment area of 177 hectares with a and climatic profile. Key objectives of our from Swindlers Creek. The Board number of small spring fed tributaries capital works programs have been to consumed an annual total of 79.9 flowing into Swindlers Weir. Water flows, augment infrastructure to meet megalitres of water for the reporting under gravity from the weir to the raw development demand, provide period, 47.3 megalitres during the period water pump house. It is then pumped up enhancement to village aesthetics, guest 1st June to 30th September 2013. This the rising main to storage tanks on the services and operational capacity through equates to 0.18kL per visitor day. In summit of Mt Higginbotham. The stored improvement to long term infrastructure comparison, during 2011-12 the Board raw water flows to one of two ultra violet and development. As much infrastructure consumed an annual total of 96.5 (UV) facilities for disinfection is underground, the Board has also been megalitres, 69.9 megalitres during winter immediately prior to distribution for conscious of providing a sense of at a rate of 0.14 kL per visitor day. The customer use. progress for stakeholders through lower consumption was likely due to balanced provision of visible community reduced visitation at the resort. facility or aesthetic improvement in the To ensure the supply of safe, high resort. quality drinking water to consumers and

Significantly, the Board is responsible for key utility services and infrastructure including potable water, sewerage, LPG and stormwater systems. These utility Total Winter Water Consumption systems have been installed over the past within Mt Hotham Alpine Resort 35 years to various standards. In the previous ten years much work has be KL KL per/ undertaken on locating, identifying, Days undertaking inspections and logging these 80,000 key infrastructure elements. 0.185 75,000 0.180 During this period there has also been 0.175 extensive work performed on upgrading, 70,000 0.170 extending and replacing components of 0.165 these systems as required. The work 65,000 undertaken by the Boards staff has been 0.160 60,000 supplemented by independent 0.150 engineering consultants who have 55,000 0.145 provided detailed reports to inform the decision making process as they 0.140 50,000 determine the priorities for upgrade and 0.135 repair. 0 0 Year 2010/11 2011/12 2012/13 The majority of the Boards underground assets were mapped in 2003-04 and this KL for Winter KL Per/ Visitor Days data has been used to develop the basis of the Boards Asset Management System. This Geographic Information System (GIS) is based on auto desk map

35 MOUNT HOTHAM ALPINE RESORT MANAGEMENT BOARD Wastewater Wastewater The Wastewater Treatment Plant at Mt Hotham has seen several changes over the past 12 months which has led to an improvement of the plant operation and overall discharge quality of effluent and biosolids.

The Waste Water Treatment Plant colloidal particles. This clear water is totally dry (>65% solids) and sterilised (WWTP) at Mt Hotham is an activated then treated with ultraviolet light and through application of lime and UV sludge system comprised of three chlorine to remove any remaining radiation. This dry product will then be phases: Primary, Secondary and Tertiary pathogens. This is now Class A mixed with soil and utilised for landfill cell Treatment. wastewater which is pumped up to Loch capping. storage dam to be reused in the Primary Treatment snowmaking system. The winter season of 2013 had quite a Primary treatment happens in the inlet few challenges for the Mt Hotham Waste works where a CST wastewater screen During the last reporting period the UF Water Treatment Plant. Lower visitation to separates the unwanted inorganic solids plant had a validation conducted on the the resort and regular large rain events from the organic solids and water to be chlorine contact tank and other saw the system running at low treated. This screen prevents a lot of upgrades with the UV unit pre winter temperatures which reduced the rate of wear and tear on the WWTP, reducing that saw it run well all season with biological digestion, leading to higher than pump wear, ragging build-up and overall minimal down time. desired ammonia levels. effluent quality. Inorganic solids are collected, bagged and transferred to The scheduled maintenance program During the reporting period the Cobungra landfill. last summer saw all the aeration tanks, Wastewater Treatment Plant received a the digester and the gravity thickener total inflow of 84,707kL; with 67,514kL emptied and cleaned and the aeration treated to secondary treatment quality and Secondary Treatment systems repaired where necessary. It is 13,457kL to Class A standard. The secondary treatment phase is the hoped in this year’s annual maintenance biological treatment phase where the to change all the diffusers in tank 3 and The Board holds a licence in accordance wastewater is mixed in aeration tanks include a new alum dosing point at the with section 20 of the Environmental with bacterial biology. Through the end of tank 5 for improved flocculation of Protection Act 1970 for licensed activities aerobic and anaerobic processes the organics in the clarifier. in relation to sewerage treatment. The biosolids consume organic matter and Board lodged its Annual Performance remove nitrates and ammonia Last summer also saw improvements to Statement (APS) to the EPA biologically. Phosphorous is removed the solar sludge drying, as it was demonstrating 100 per cent compliance of biologically and through chemical changed from two smaller evaporation license conditions had been met. The flocculation. After the aeration tanks the pans to one bigger one. A very good APS can be viewed in due course on the water goes through to the clarifier where result was achieved from the two smaller EPA website. The sewerage treatment the biosolids settle out and the secondary pans, however the bigger one is showing plant was inspected by the Environmental effluent is drawn off the top. improved drying at a faster rate, allowing Protection Agency in August 2013 with no us to bring our annual maintenance issues identified. Tertiary Treatment program forward by up to a month. The tertiary treatment phase is an Key challenges for the coming year will be ultrafiltration facility (UF plant) where the The aim is to treat the sludge (biosolids to continually work towards improving secondary effluent is passed through a wasted from the WWTP system over the overall operational efficiency, effluent system of membranes that remove fine winter season) to a stage where they are quality and biosolids reuse. This means increasing the amount of reclaimed water sent up to Loch dam (Swindlers catchment) and therefore decreasing the Treated Wastewater 2012/13 discharge to environment (Dargo catchment) as much as possible.

18,000 The aim of Mt Hotham Waste Water 16,000 Treatment Plant is to achieve as close as possible to 100% reuse of both 14,000 wastewater and waste biosolids, to the 12,000 point where everything that enters the 10,000 WWTP is recycled back to the environment in the least disruptive and 8,000 most environmentally friendly manner Flows (Kilolitres kL) Flows (Kilolitres 6,000 possible.

4,000

2,000

0

Year Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13

ANNUAL REPORT 2012/13 Inflows Dargo Effluent Class A

36 Solid Waste Management Cobungra landfill is situated approximately 30 kilometres from the resort along the Great Alpine Road surrounded by native vegetation. It is approximately 2 hectares in size and was commissioned in the early 1980’s.

Landfill spoil was removed from the site in early will encourage better behaviour next year Cobungra landfill receives putrescibles 2013 and the site rehabilitated with with signage. additional future planting planned. and inert waste generated from general The public place dual bin systems resort operations including some To extend the lifespan of the site the provided by North East Victorian Regional commercial operations. Hazardous Board have engaged in a community Waste Management Group were materials are not received at the landfill. education program to inform strategically placed throughout the resort An area of the landfill site is used for stakeholders of the waste management again this year. The bins internal flaps receiving bio-solids from the operations at issues facing the resort community were removed for 2013 with a positive the sewerage treatment plant. The site is including limited space availability, result from the public utilising them more a landfill exempt from licencing (LEFL) transport costs if the site is required to than the trial in 2012. There were some and is closed to the public. close and the increase in levy fees for security issues that will result in bins waste being deposited to the site. By being chained and locked in place next The Board has previously completed an increasing our recycling levels and year. Staff conducted a waste audit of all environmental risk assessment of the site growing the organics program the Board public place bin stations. Unfortunately, and recognises the likely highest risk to can mitigate many of these issues. waste continues to contain recyclables the environment within the site is however recycling bins generally contamination of groundwater and gases Litter Reduction Program contained little contamination. moving through the soil to the surrounding The Board conducts a regular roadside vegetated environment. The site falls litter collection program which is carried Solid Waste within an area designed as Segment A for out every winter and an intensive This season solid waste employed two groundwater quality in the State program upon snow melt. Large Environment Protection Policy full time and one part time Solid Waste collections of litter each year reflect the Officers. (Groundwater of Victoria). Two ground impact this has on the environment. water monitoring bores continued to be Collection staff did notice a reduction in measured for standing water levels and Mt Hotham Resort Management Board is litter from last year likely due to the responsible for the collection of future monitoring of groundwater quality to reduced visitor numbers. The annual complement existing data is proposed. putrescible waste, comingled recyclables “Clean up Hotham Day” was held on the (plastics 1-7, LPB, glass, alum/steel 23rd October. Staff from the Board and After a full feature survey of the site in cans), paper/cardboard and food MHSC along with other Hotham organics. 2012, the Board identified a long term community locals took part. In addition plan for use within the site. To realise this staff conduct bi-annual litter collection Over the year 25 compactor loads of plan a significant amount of low days at the Cobungra landfill site. permeability clay would be required to be putrescible waste were delivered to externally sourced for cell construction The Board maintains public place bins landfill. The Solid Waste Team collected and capping. A local spoil site that had be including waste, recycling and cigarette 49 tonnes of comingled recyclables, 24.6 created by VicRoads during the “butt” bins which were well used again tonnes of baled cardboard, 23.3 tonnes construction of the Great Alpine Road was this year; although snow build up on the of organic food waste and 5,240 litres of identified and the relevant authorities butt bins often result in visitors placing used cooking oil (to be recycled into bio- approached to use this resource. The them on top rather than on the bin. Staff diesel).

The ‘Living Bin’ Program The ‘Living Bin’ was yet again promoted at Mt Hotham with biodegradable green waste bags introduced along with the old style bags. The new bags were received with great enthusiasm, resulting in nearly doubling the collection rate of organic waste last season. The ‘Living Bin’ was nominated for the ‘Banksia Sustainability Awards 2013’ as a finalist for the ‘Waste Minimisation Award’ which ‘recognises leadership and innovation in reusing, reducing, recycling or recovering waste through the application of new and innovative developments, technologies or processes’. Congratulations everyone on bringing the program into its 4th season.

Mt Hotham Resort Management Board would like to thank the commercial operators, lodge managers and mountain staff for their fantastic effort. Our aim is to continue increasing our organic and recycling rates whilst reducing waste to landfill.

37 MOUNT HOTHAM ALPINE RESORT MANAGEMENT BOARD Business and Product Development and Product Business Business and Product Development

Commercial Partners plan. It is expected that this exercise will everyone involved and those already Many organisations with an association draw substantially upon much of the registered. with Mt Hotham have contributed to the Resort and the Board appreciates the work that has already been Even though Beyond Hotham had this support of Renault, Bolle, K2 and done to develop the planning scheme major setback for 2013, the team looks Patagonia. amendment C17 in 2006. The forward to the event in 2014 with more expectation is to complete this work enthusiasm than ever. Resort Development during the 2013-14 reporting period. Within the Alpine Resorts Planning Cool Summer Festival 2013 Scheme the achievement of the Board’s Events Unfortunately due to the Harrietville/ strategic direction for the development of Beyond Hotham 2013 Feathertop Bushfire the Cool Summer Festival also suffered the same fate as the Resort is defined in a set of strategic Mt Hotham Resort Management Beyond Hotham. The festival was land use objectives for the Resort as Beyond Hotham was set to break a follows: cancelled as it was impossible to run the record for the most registered entries in event without compromising the safety of  To reinforce the role of the Resort as its 6th year of the program, with lots of patrons attending. a year round destination by providing exciting and new area to discover for a range of recreation and tourist those willing participants. However due to Mt Hotham looks forward to seeing the facilities, residential accommodation, local bush fires, major rain events and festival held again in 2014 with even commercial activities and support road closures caused by landslips more music, dancing and family fun. services. blocking access to the mountain for  To ensure that use and development several weeks, this was not possible. Walking Trails within the Resort benefits both With many areas affected by bushfires “Tania and Bruce loved the bridge, the present and future users, whilst ditch, this heritage hut. It sparks the maintaining a high quality and sections completely closed to access around Mt Hotham the decision was imagination! I know those people of environment. yesteryear were hardier than me.”  made that there was not enough tracks To conserve and protect the natural left open to host the event for this year. 11th January 2013 environmental systems within the Having exhausted all options the event Spargo’s Hut Log Book Resort so as to minimise disturbance was cancelled much to the regret of to rare and endangered flora, fauna and communities.  To enhance skier, pedestrian and vehicle activity at desirable levels related to the accessibility and capacity of ski fields, services, commercial activity and development of trailheads.  To ensure that services are planned and co-ordinated to meet the needs of future development.  To ensure that appropriate and well located car parking facilities and appropriate public transport are provided to meet visitor needs. The recently approved Alpine Resorts Strategic Plan 2012 has recognised that some regulatory impediments are restricting the realisation of economic opportunities that relate to:  Planning and leasing systems – where strategic (master) planning needs to be given a stronger role.  Native vegetation offsets – which need better interpretation in the alpine resort setting.  Bushfire – where there is an apparent conflict between the policy desire to promote green season visitation and the desire not to place people at risk in fire-prone locations. Master Planning Work has commenced by the establishment of a steering committee to oversee the appointment of a suitable consultant and the development of the ANNUAL REPORT 2012/13

38 Business and Product Development Cont.

Walking Trails (continued) season to the traditional ‘Snow Season’. Visitor Communication The continuation of the Free Summer “Congrats to the track and bridge builders,  Website - an important communication Bushwalking program saw large splendid job. Started skiing at the age of tool, the website has continued to improve 4, now 44, first time to Spargo’s Hut.” attendances to walks that weren’t impacted on by fires or poor weather, over the year to help better inform visitors. 31st January 2013 with 30 attending the morning of the  Ski Patrol Talks - provided throughout the Spargo’s Hut Log Book opening season walk and 28 in the winter season to schools and organised afternoon. groups. Despite the January/February bushfires,  Environmental Talks - provided throughout Mt Hotham’s new iconic tracks & trails Works on the Hotham – Dinner Plain the year to schools and organised groups. continue to attract large numbers of walking and bicycle trail had to be walkers to the resort during the summer. postponed due to bushfire activity.  Andrew Swift’s Historical Talks - with Easter 2013 recorded 136 groups of However opportunity arose to install a Andrew’s wealth of knowledge he recites walkers out along Mt Loch/Machinery number of heavy track marker posts tales of the gold rush era. Spur Track, and 137 groups of walkers on along the trail and at significant the Davenport Access Track to the Silver junctions. These new signs have been Publications Produced Brumby, Huts Walk and Cobungra Ditch. well received by the public.  The average group size was 3 persons. Mt Hotham Village Guide;  Regional Marketing Mt Hotham Cross Country Guide; Marketing under the Iconic Tracks & Trails  Mt Hotham/Dinner Plain Walks Brochure; banner has seen the formalization of the In association with the other Alpine Bushwalking Season which begins from Resorts the Board has contributed to  Beyond Hotham Program & Flyer; and the Melbourne Cup long weekend and promotion of the alpine region and the snow industry through BART, Snow  Walking Track Notes - Cobungra Ditch continues until the end of May. This Walking Track and The Huts Walk. offers a distinct alternative recreational Australia and Tourism North East.

39 MOUNT HOTHAM ALPINE RESORT MANAGEMENT BOARD Business Undertakings Business Business Undertakings

Gas Operations Victorian Alps Nursery in the Bogong High Plains particularly for LPG propane is a clean, efficient and The Victorian Alps Nursery propagates a the Langford’s aquaduct and the cost effective energy source. The Board large diversity of alpine and sub-alpine rehabilitation of bogs at Dingo Dell in operates and maintains the LPG storage species for rehabilitation and restoration Mount Buffalo National Park. Work this facility at Mt Hotham. Energy Safe projects at all major Victorian ski resorts, year continued within wetlands at Dinner Victoria conducts an annual audit of the Mt Buffalo, the Victorian Alpine National Plain and is showing great results. facility and regular maintenance checks Parks, Kosciuszko National Park and of the cathodic protection, LPG leak NSW National Parks and ski areas. In addition to alpine areas, the nursery survey and tank regulator. The Gas Specialising in the production and has continued to supply the Upper Safety Act requires gas companies to propagation of alpine flora makes the Ovens Landcare group with trees and develop and implement a safety case as nursery unique in Australia. Staff at the shrubs to rehabilitate willow removal the central mechanism in acquitting their nursery can provide assistance to work on the Ovens River around Bright safety obligations. The Board engaged a customers to obtain information on and Germantown Streamside reserve. consultant to develop the Boards Gas available species and advice on Safety Case in 2013 and an audit of rehabilitation projects. The nursery continues to also work with operations conducted by Energy Safe the Alpine Shire to create an alpine Victoria in October 2013 found there Highlights for the year included a total of garden at the new Alpine Children's were no non compliances against the over 20,000 plants sold during the year; Centre in Bright. Act. over 6,500 for the Mount Hotham Ski Company for a rehabilitation project on Origin Energy is the supplier of LPG to one of the ski runs and 5,000 to Mount the Board. The Board and Origin work Buller Ski Company for rehabilitation of together to ensure improvements are the Burnt Hut Chair area. The nursery made and maintenance schedules of the continues to supply Parks Victoria with system are conducted. crew, seed collection and plants for bogs

LPG purchased by the Mount Hotham Resort

Litres

1,500,000 1,490,185 1,465,167

1,202,380 1,265,963 1,000,000

500,000

0 Year 2009/10 2010/11 2011/12 2012/13

Annual 1,202,380 1,490,185 1,465,167 1,265,963 Winter 894,287 1,161,363 1,071,642 972,799

40 41 MOUNT HOTHAM ALPINE RESORT MANAGEMENT BOARD Auditor General’s Auditor Letter

42 Comprehensive Operating Statement For the financial year ended 31st October 2013 Continuing operations Note 2013 2012 Income from transactions $ $ Government Contributions 87,166 134,411 Rendering of Services 9,170,907 9,575,969 Interest 126,856 87,326 Fair Value of assets and services received free of charge or for nominal consideration - 83,827 Sale of rights to lease and develop Crown Land 60,000 - Other Revenue 646,637 517,045 Total income from transactions 2 10,091,566 10,398,578 Expenses from transactions Infrastructure services 3,200,361 3,540,045 Village operations 1,708,946 1,694,145 Visitor services 718,873 903,424 Administration 3,462,270 3,227,745 Marketing 237,195 361,963 Board costs 97,738 119,476 Interest Expense 114,820 119,871 Total expenses from transactions 3 9,540,204 9,966,669 Net result from transactions (net operating balance) 551,362 431,909 Other economic flows included in net result Net gain/(loss) on non financial assets - 167,522 Net result from continuing operations 551,362 599,431

Other economic flows - other comprehensive income Total other economic flows - other comprehensive income 551,362 599,431 Comprehensive result 551,362 599,431

The above Comprehensive Operating Statement should be read in conjunction with the notes to the financial statements. Balance Sheet As at 31st October 2013 Note 2013 2012 $ $

ASSETS Financial Assets Cash assets 4,17 3,665,499 3,021,214 Receivables 5,17 758,469 987,925 Total Financial Assets 4,423,968 4,009,139 Non Financial Assets Inventories 6 139,850 97,072 Prepayments 236,006 188,525 Property, Plant & Equipment 7 75,378,888 75,596,653 Total Non Financial Assets 75,754,744 75,882,250 TOTAL ASSETS 80,178,712 79,891,389 LIABILITIES Liabilities Payables 8,17 872,394 1,103,285 Borrowings - Treasury Corporation of Victoria 17 1,701,643 1,776,617 Provisions 9 737,304 695,478 TOTAL LIABILITIES 3,311,341 3,575,380 NET ASSETS 76,867,371 76,316,009 EQUITY Contributed Capital 32,866,328 32,866,328 Asset Revaluation Reserve 36,785,194 36,785,194 Accumulated Earnings 7,215,849 6,664,487 NET WORTH 76,867,371 76,316,009 Commitments for expenditure 11 Contingent assets and contingent liabilities 12

The above Balance Sheet should be read in conjunction with the notes to the financial statements.

43 MOUNT HOTHAM ALPINE RESORT MANAGEMENT BOARD Financial Statements Financial Statement of Changes in Equity For the financial year ended 31 October 2013

Note Physical Asset Accumulated Contributions by Total Revaluation Surplus Surplus Owners $

Balance at 1 November 2011 36,785,194 6,065,056 32,866,328 75,716,578

Net result for the year - 599,431 - 599,431 Balance at 31 October 2012 36,785,194 6,664,487 32,866,328 76,316,009

Net result for the year - 551,362 - 551,362 Balance at 31 October 2013 36,785,194 7,215,849 32,866,328 76,867,371

The above Statement of Changes in Equity should be read in conjunction with the notes to the financial statements.

Cash Flow Statement For the financial year ended 31 October 2013

Note 2013 2012 $ $

Cash Flows from Operating Activities Receipts from Government 199,411 - Receipts from other entities 9,972,590 9,967,706 Payments to suppliers and employees (8,400,943) (8,165,391) Interest received 83,852 87,326 Interest paid (113,535) (119,871) Net Cash provided by Operating Activities 10 1,741,375 1,769,770

Cash Flows from Investing Activities Payments for property, plant & equipment (1,022,776) (620,766) Proceeds from sale of non-current assets - 241,598 Net Cash used in Investing Activities (1,022,776) (379,168)

Cash Flows from Financing Activities Repayment of Finance leases - (73,865) Repayment of Borrowings from Treasury Corporation Victoria (74,312) (69,961) Net Cash used in Financing Activities (74,312) (143,826)

Net Increase/(Decrease) in Cash Held 644,287 1,246,776

Cash at the beginning of the Financial Year 3,021,213 1,774,437

Cash at the end of the Financial Year 4 3,665,499 3,021,213

The above Cash Flow Statement should be read in conjunction with the notes to the financial statements.

ANNUAL REPORT 2012/13

44 Notes to the Financial Statements For the year ended 31 October 2013

Note 1 judgements, estimates and assumptions Committee of Management of any Crown about carrying values of assets and Land deemed to be permanently reserved Summary of Significant liabilities that are not readily apparent under the Crown Lands Reserve Act 1978. Accounting Policies from other sources. The estimates and associated assumptions are based on Service Charges revenue is brought to The financial statements consist of a experience and various other factors that account when a rate/tariff is levied or Comprehensive Operating Statement, are believed to be reasonable under the determined for service charges leviable Balance Sheet, Statement of Changes in circumstance, the result of which form under Section13 of the Alpine Resorts Equity, Cash Flow Statement and the basis of making the judgements. (Management) Act 1997. notes accompanying the financial Actual results may differ from these statements. The general purpose financial estimates. It also required management Grants and contributions for capital works report complies with the requirements of to exercise its judgement in the process from all sources are recognised as the Australian Accounting Standards of applying the Board's accounting operating revenue in accordance with (AASs), which include interpretations policies. The estimates and underlying issued by the Australian Accounting AASB 1004. Any grants and contributions assumptions are reviewed on an ongoing received from the Victorian State Standards Board, and the requirements of basis. the Financial Management Act (1994) and Government that are deemed as being in the relevant Financial Reporting the nature of owner's contributions are d) Financial assets Directions (FRDs) issued by the accounted for as Equity - Contributed Department of Treasury & Finance, and Cash Assets Capital in accordance with FRD119 the Alpine Resort (Management) Act Cash Assets, including cash equivalents, Contributions by owners. 1997 and interpretations and other comprise cash on hand and cash at mandatory professional requirements. bank, deposits at call and highly liquid Government Contributions recognised as investments with an original maturity of revenue in 2013 amounted to $87,166 The accounting policies set out below three months or less, which are readily (2012 $134,411). have been consistently applied to all convertible to known amounts of cash years presented. and are subject to insignificant risk of Gate entry revenue (including from the changes in value. sale of season passes) is recognised when The financial report has been prepared on received and when the entitlement is in the an accrual basis and going concern basis, Receivables current financial year. Season pass using the historical cost convention, Receivables consist predominantly of receipts received for an entitlement to except for certain assets which, as noted, debtors in relation to goods and services, resort entry in current and/or subsequent have been shown at valuation. accrued investment income and GST financial years are proportioned to the year input tax credits recoverable. of entitlement. The reporting period covered in the financial statements is 1 November 2011 A provision for doubtful debts is made Revenue from the sale of rights to lease to 31 October 2013. when there is objective evidence that the and develop Crown Land is recognised debts may not be collected and bad upon granting the right to commence The following is a summary of the debts written off when identified (refer to works from the Board, or on the execution significant accounting policies adopted by Note 1(g)). of a contract of sale, following approval by the Board in the preparation of the the Minister for Environment and Climate financial report. The policies have been e) Inventories Change, which ever occurs first. applied, unless otherwise stated. Inventories comprise stores, goods for Interest revenue is recognised using the resale and goods for use. All inventories effective interest method which allocates a) Classification between financial and are valued at the lower of cost and net the interest over the relevant period. non-financial realisable value. In the determination of whether an asset Stores - comprise of stores and materials Infringement notices are recognised as or liability is financial or non-financial, used in the construction of new capital revenue when the penalty has been consideration is given to the extent of works and for the repair and imposed. assets ability to be converted into liquid maintenance of existing assets. (cash) funds. Goods for resale - comprise goods A provision for doubtful debts is recognised procured or developed for resale and when collection in full for infringement b) Basis of preparation include LPG gas and horticultural penalties is no longer probable. Under the AASs, there are requirements products. that apply specifically to not-for-profit Goods for use - comprise goods g) Receivables entities that are not consistent with IFRS procured or stored for use in operations Debtors are carried at amounts due. requirements. The Board has determined and include diesel and unleaded fuel. Where necessary interest is charged on it does not have profit generation as a overdue debts in accordance with the prime objective. f) Revenue Recognition Penalty Interest Rates Act or in Consequently, where appropriate, the Revenue is recognised in accordance accordance with relevant legislation and/or Board has elected to apply options and with AASB 118. Income is recognised as lease terms. The Board’s stated terms in exemptions within the AASs that are revenue to the extent it is earned. respect of amounts receivable are applicable to not-for-profit entities. payment in full within 30 days. Site rental is recognised under the terms c) Critical accounting estimates and conditions of each lease and in The preparation of these financial accordance with the Board's role as a statements in conformity with AASs required management to make

45 MOUNT HOTHAM ALPINE RESORT MANAGEMENT BOARD Financial Statements Financial Notes to the Financial Statements For the year ended 31 October 2013

Note 1 Summary of This non current LSL liability is Direction FRD 103D - Non-current physical measured at present value. assets. Significant Accounting Policies The most recent valuation was undertaken (continued) (iii) Termination benefits as at 31 October 2011. The fair value of Bad and Doubtful Debts Termination benefits are payable when buildings, roads and infrastructure has A provision is made for any doubtful employment is terminated before the been determined by reference to the debts, based on a review of all normal retirement date, or when an assets depreciated replacement cost outstanding receivables at balance date. employee accepts redundancy in recognising the residual value apparent in Bad debts are written off in the period in exchange for these benefits. The Board the valuation. which they are identified. The Board recognises termination benefits when it considered that a $39,086 provision was is demonstrably committed to either Revaluation increments are credited to a necessary for bad or doubtful debts as at terminating the employment of current revaluation reserve and decreases are 31 October 2013. (2012 - $432) employees according to a detailed recognised as an expense in the formal plan without possibility of comprehensive operating statement. To h) Employee Benefits withdrawal or providing termination the extent that a revaluation decrease benefits as a result of an offer made to (i) Wages and salaries, annual leave and reverses a revaluation increment encourage redundancy. Benefits falling time in lieu leave previously credited to and still included in due more than 12 months after balance the balance of the asset revaluation Liabilities for wages and salaries, sheet date are discounted to present reserve, the decrease is debited directly to including non-monetary benefits, annual value. that reserve up to the value of that prior leave and accumulating time in lieu leave increment. expected to be settled within 12 months of (iv) Employee benefits on-costs the reporting date are recognised in the Employee benefits on-costs (payroll tax, The revaluation of buildings and provision for employee benefits in respect workers compensation, superannuation, infrastructure has been accounted for of employee services up to the reporting annual leave and LSL accrued while on using the net method whereby the date, classified as current liabilities and LSL taken in service) are recognised accumulated depreciation at the date of measured at their nominal values. separately from provision for employee the valuation is eliminated against the benefits. carrying amount of the asset with the net Those liabilities that are not expected to difference adjusted directly to the reserve. be settled within 12 months are recognised in the provision for employee i) Property, Plant and Equipment Valuation of Land benefits as current liabilities, measured at Acquisition present value of the amounts expected to Property plant and equipment include The Board undertook a revaluation of its be paid when the liabilities are settled land, buildings, infrastructure, plant, land assets for 31 October 2011 using the using the remuneration rate expected to equipment, furniture and motor vehicles. 'fair value' methodology. apply at the time of settlement. Items with a cost or value in excess of The revaluation was performed by the $1,000 and a useful life to the Board of Valuer-General Victoria. Under fair value (ii) Long service leave more than one year are capitalised. All the Board's interest in the Crown's Liability for long service leave (LSL) is other assets acquired are expensed. leasehold land is measured based on a recognised in the provision for employee direct market comparison approach, Property plant and equipment are benefits. whereby the subject properties are brought to account at acquisition cost or compared to recent land sales. Broad area Current Liability - unconditional LSL in the case of assets acquired at no land values have been applied to the other (representing 5 or more years of cost, at a fair value determined by the areas of the Board's controlled area based continuous service for VPS staff) is Board in conjunction with the grantor, at on comparable sales evidence disclosed as a current liability even where the date they are first made available for methodology. The addition of these values the Board does not expect to settle the use. represents the fair value of the land assets liability within 12 months because it will under the Board's control. The figures do not have the unconditional right to defer Valuation of Property, Plant and not include any improvement values. the settlement of the entitlement should Equipment an employee take leave within 12 months. Subsequent to the initial recognition as Sale of Property, Plant and Equipment assets, all non-current physical assets The components of this current LSL In accounting for the sale of Property, are measured at fair value. Property, liability are measured at: Plant and Equipment only the net profit/ Plant and Equipment are measured at Present Value - component that the Board (loss) on disposal is shown on the fair value. Revaluations are made with does not expect to settle within 12 comprehensive operating statement as sufficient regularity to ensure that the months; and required under AASs. carrying amount of each asset does not Nominal value - component that the differ materially from its fair value at the Depreciation of Non-Current Assets Board expects to settle within 12 months. reporting date. Values are assessed Depreciation is calculated on a straight line Non current liability - conditional LSL annually and supplemented by basis to write off the cost or revalued (representing less than 5 years of independent assessments. All assets amount of each non-current asset item continuous service for VPS staff) is are tested for indication of impairment (excluding land) over its expected useful disclosed as a non-current liability. There on an annual basis. Such assets are life to the Board recognising the residual is an unconditional right to defer the tested to ascertain whether the carrying value at the end of the expected life settlement of the entitlement until the amount exceeds their recoverable apparent in the valuation. amount. Revaluations are conducted in employee has completed the requisite ANNUAL REPORT 2012/13 years of service. accordance with Financial Reporting

46 Notes to the Financial Statements For the year ended 31 October 2013

Note 1 Summary of In the Boards' view, asset values do not Operating leases are charged to the exceed their recoverable amount from comprehensive operating statement in Significant Accounting their continued use and their subsequent the period in which they are incurred, as Policies (continued) disposal and as such, no adjustment to this represents the pattern of benefits i) Property, Plant and Equipment these values was made in the reporting derived from the leased assets. cont. period. Additions to non-current assets in the o) TCV borrowings Borrowings are initially measured at fair financial year are depreciated from their j) Payables value, being the cost of the borrowings, respective dates of acquisition. Liabilities are recognised for amounts to be paid in the future for goods or services net of transaction costs. Estimates of remaining useful lives of all received, whether or not billed to the Subsequent to initial recognition, non-current asset items are made on a Board. The carrying amount of accounts borrowings are measured at amortised regular basis with an annual review of all payable approximates net fair value. cost with any difference between the major non-current assets. k) Cash Flow Statement initial recognised amount and the Depreciation rates currently applied to For the purpose of the cash flow redemption value being recognised in net each class of asset are as follows: statement, cash includes cash on hand, result over the period of the borrowing Buildings 1.67% cash at bank and "highly liquid using the effective interest method. Infrastructure Assets 1.25% to 10% investments" net of any bank overdraft. Plant & Equipment 5% to 34% Cash at the end of the financial year as p) Interest Expense Interest expenses are recognised as shown in the cash flow statement is expenses in the period in which they are The above rates for Infrastructure and reconciled to the related items in the incurred. Interest expenses include Plant & Equipment assets have Balance Sheet. (see Note 4) remained unchanged from the previous interest on Treasury Corporation of year. l) Goods and Services Tax Victoria loan. Revenues, expenses and assets are Impairment of assets recognised net of the amount of goods q) Commitments Commitments are disclosed at their Assets are assessed in the normal and services tax (GST), except where the nominal value and inclusive of the goods course of operations for indicators of amount of GST is not recoverable from and services tax (GST) payable. impairment, except for: the Australian Taxation Office (ATO). In addition, where it is considered - Financial Assets In these circumstances the GST is appropriate and provides additional - Inventories recognised as part of the cost of relevant information to users, the net - Non-current assets held for sale acquisition of the asset or as part of an present values of significant individual item of expense. If there is an indication of impairment, projects are stated. the assets concerned are tested as to Receivables and payables are stated with whether their carrying value exceeds the amount of GST included. r) Contingent assets and contingent their recoverable amount. Where an liabilities asset's carrying amount exceeds its The net amount of GST recoverable from, Contingent assets and contingent recoverable amount, the difference is or payable to, the ATO is included as a liabilities are not recognised in the written off by a charge to the current asset or current liability in the balance sheet, but are disclosed by way comprehensive operating statement Balance Sheet. of a note and, if quantifiable, are except to the extent that the write-down measured at nominal value. Contingent can be debited to an asset revaluation Cash flows arising from operating assets and liabilities are presented reserve amount applicable to that class activities are disclosed in the cash flow inclusive of GST receivable or payable of asset. statement on a gross basis - i.e. inclusive respectively. of GST. The GST component of cash The recoverable amount for most assets flows arising from investing and financing s) Rounding is measured at the higher of depreciated activities which is recoverable or payable Unless otherwise stated, amounts are replacement cost and fair value less to the taxation authority is classified as rounded to the nearest dollar. costs to sell. Recoverable amount for operating cash flows. assets held primarily to generate net t) Comparatives Where necessary, comparative amounts cash inflows is measured at the higher m) Contributed Capital have been reclassified to comply with of the present value of future cash flows Contributions to the Board are recognised presentation in the current year. expected to be obtained from the asset as contributed capital with the approval of the Minister for Finance and when the and fair value less costs to sell. It is There have not been any changes in transfer satisfies the definition of deemed that, in the event of a loss of an comparative amounts from prior year contribution by owners as per FRD119 asset, the future economic benefits audited financial report. arising from the use of the asset will be Contributions by owners. replaced unless a specific decision to Contributed capital is disclosed in the u) AASs issued that are not yet the contrary has been made. Statement of changes in Equity and effective Note 10. Certain new AASs have been published An impairment loss on a revalued asset that are not mandatory for the 31 n) Leases is credited directly to equity under the October 2013 reporting period. The A distinction is made between finance heading Asset Revaluation Reserve. Board assesses the impact of these new leases, which effectively transfer from the However, to the extent that an standards and advises of their lessor to the lessee substantially all the impairment loss on the same class of applicability and early adoption where risks and benefits incidental to ownership asset was previously recognised in the applicable. comprehensive operating statement, a of leased non-current assets, and reversal of that impairment loss is also operating leases under which the lessor recognised in the comprehensive effectively retains substantially all such operating statement. risks and benefit.

47 MOUNT HOTHAM ALPINE RESORT MANAGEMENT BOARD Financial Statements Financial Notes to the Financial Statements For the year ended 31 October 2013 Note 1 Summary of Significant Accounting Policies (continued) As at 31 October 2013, the following standards and interpretations (applicable to departments) had been issued but were not mandatory for the financial year ending 31 October 2013. The Board has not early adopted these standards.

Standard/ Summary Applicable for Impact on Interpretation annual reporting financial statements periods beginning on

AASB 9 This standard simplifies requirements for the 1-Jan-15 Subject to AASB's further modifications to AASB 9, Financial instruments classification and measurement of financial assets together with the anticipated changes resulting from resulting from Phase 1 of the IASB’s project to replace the staged projects on impairments and hedge IAS 39 Financial Instruments: Recognition and accounting, details of impacts is assessed as Nil. Measurement (AASB 139 Financial Instruments: Recognition and Measurement).

AASB 10 This Standard forms the basis for determining which 1-Jan-14 Not-for-profit entities are not permitted to apply this Consolidated Financial entities should be consolidated into an entity's financial Standard prior to the mandatory application date. Statements statements. AASB 10 defines 'control' as requiring exposure or rights to variable returns and the ability to Subject to AASB's final deliberations on ED 238 and affect those returns through power over an investee, any modifications made to AASB 10 for not-for-profit which may broaden the concept of control for public entities, the entity will need to re-assess the nature of sector entities. its relationships with other entities, including those that are currently not consolidated. The AASB has issued an exposure draft ED 238 Consolidated Financial Statements - Australian Impact is assessed as Nil. Implementation Guidance for Not-for-Profit Entities that explains and illustrates how the principles in the Standard apply from the perspective of not-for-profit entities in the private and public sectors.

AASB 11 This Standard deals with the concept of joint control, 1-Jan-14 Not-for-profit entities are not permitted to apply this Joint Arrangements and sets out a new principles-based approach for Standard prior to the mandatory application date. determining the type of joint arrangement that exits and the corresponding accounting treatment. The new Subject to AASB's final deliberations and any categories of joint arrangements under AASB 11 are modifications made to AASB 11 for not-for-profit more aligned to the actual rights and obligations of the entities, the entity will need to assess the nature of parties to the arrangement. arrangements with other entities in determining whether a joint arrangement exists in light of AASB 11.

Impact expected to be minimal.

AASB 12 The Standard requires disclosure of information that 1-Jan-14 Not-for-profit entities are not permitted to apply this Disclosure of Interest in enables users of financial statements to evaluate the Standard prior to the mandatory application date. Other Entities nature of, and risks associated with, interest in other Impacts on the level and nature of the disclosures will entities and the effects of those interest on the financial be assessed based on the eventual implications statements. This Standard replaces the disclosure arising from AASB 10, AASB 11 and AASB 128 requirements in AASB 127 Separate Financial Investments in Associates and Joint Ventures. Statements and AASB 131 Interest in Joint Ventures. The exposure draft ED 238 proposes to add some Impact expected to be minimal. implementation guidance to AASB 12, explaining and illustrating the definition of a "structured entity" from a not-for-profit perspective.

AASB 13 This Standard outlines the requirements for measuring 1-Jan-13 Disclosure for fair value measurements using Fair Value Measurement the fair value of assets and liabilities and replaces the unobservable inputs are relatively detailed compared existing fair value definition and guidance in other AASs. to disclosure for fair value measurements using AASB 13 includes a 'fair value hierarchy' which ranks observable inputs. Consequently, the Standard may the valuation technique inputs into three levels using increase the disclosures required assets measured unadjusted quoted prices in active markets for identical using depreciated replacement cost. assets or liabilities; other observable inputs; and unobservable inputs. Impact expected to be minimal.

AASB 128 This revised Standard sets out the requirements for the 1-Jan-14 Not-for-profit entities are not permitted to apply this Investments in Associates application of the equity method when accounting for Standard prior to the mandatory application date. and Joint Ventures investments in associates and joint ventures. The AASB is assessing the applicability of principles in AASB 128 in a not-for-profit context.

As such, the impact will be assessed after the AASB's deliberation.

AASB 1053 This Standard establishes a differential financial 1-Jul-13 The Victorian Government is currently considering the Application of Tiers of reporting framework consisting of two tiers of reporting impacts of Reduced Disclosure Requirements (RDRs) Australian Accounting requirements for preparing general purpose financial for certain public sector entities and has not decided if Standards statements. RDRs will be implemented to the Victorian Public Sector.

Impact expected to be minimal.

ANNUAL REPORT 2012/13

48 Notes to the Financial Statements For the year ended 31 October 2013 Note 2: Revenue 2013 2012 Revenue $ $ Government grants Department of Environment & Primary Industries 65,000 - Alpine Shire Council contribution to Hotham Dinner Plain Trail1 12,166 134,411 Department of Transport, Planning & Local Infrastructure 10,000 - 87,166 134,411 Rendering of Services Site rental 1,396,596 1,595,538 Service charges 3,862,576 3,659,069 Transport contribution 115,308 137,646 Gas trading operations 1,368,417 1,268,071 Gate entry 2,334,250 2,784,901 Horticultural supplies 93,760 130,744 9,170,907 9,575,969

Interest 126,856 87,326

Fair value of assets and services received free of charge or for nominal consideration Sponsorship Vehicles - 83,827

Sale of rights to lease and develop Crown Land 60,000 -

Other Revenue Infringement Revenue 334,100 148,522 Service Charges - Infrastructure fee 23,992 142,508 Other Income 288,545 226,015 646,637 517,045

Total income of transactions 10,091,565 10,398,578

1 There has been an adjustment to 2012 revenues of $144,411. This was a contribution to Hotham Dinner Plain Trail from Alpine Shire for $134,411 and is attributable to works for the years 2008 to 2012, however the invoice and payment were not transacted until FY 2013. Given the matching principle 2012 was adjusted in accordance with the Boards accounting policies. There was also a minor adjustment to sundry revenue for $10,000 for the same issue. The other side of this transaction increased 2012 receivables balances by the same amount. Note 3: Expenses Included in Expenses are : Depreciation charge for the period : Buildings 215,219 217,570 Infrastructure 752,431 839,256 Plant, equipment and motor vehicles 272,230 298,009 1,239,880 1,354,835 Employee Benefits Expense Salaries, wages and other on costs 3,309,896 3,431,901 Superannuation 274,600 262,972 3,584,496 3,694,874 Audit Fees Audit of Financial Statements - Victorian Auditor-General's Office 24,685 23,966 Internal Auditor 9,290 25,818 33,975 49,784 Other costs including Maintenance 615,917 678,803 Energy (including LPG purchases for resale) 1,330,301 1,378,729 Marketing 183,435 206,073 Consultants and Contractors 576,990 598,380 Communications 67,786 63,359 Accommodation - Staff 97,303 114,611 Support Payments (Alpine Resorts Co-ordinating Council) 210,247 181,215 Insurance 290,610 261,790 Interest 114,820 119,872 Legal 142,428 189,879 Licenses, monitoring and testing 136,323 109,372 Training related costs 152,400 105,066 Equipment and safety related costs 137,761 152,136 Consumables 102,438 83,000 Bad and doubtful debts 39,503 432 Other 483,591 624,461 4,681,854 4,867,178

Total expenses from transactions 9,540,205 9,966,669

49 MOUNT HOTHAM ALPINE RESORT MANAGEMENT BOARD Financial Statements Financial Notes to the Financial Statements For the year ended 31 October 2013

Note 4: Cash Assets 2013 2012 $ $ Cash at bank and on hand 18 3,665,499 3,021,214 3,665,499 3,021,214

Note 5: Receivables Current Trade debtors 18 637,259 988,357 Infringement debtors 117,292 - Other receivables 43,004 - Less provision for doubtful debts (39,086) (432) 758,469 987,925

Where necessary interest is charged on overdue debts in accordance with the Penalty Interest Rates Act or in accordance with relevant legislation and/or lease terms. The carrying value of debtors approximates fair value.

In 2013 the Mt Hotham Resort Management Board changed its accounting policy for the recognition criteria of infringement revenue, it is now recorded when the penalty has been imposed. Previous years it was recorded when received.

Movement in doubtful debts Balance at the beginning of the year (432) - New provisions recognised (39,097) (432) Amounts written off as uncollectible 443 - Balance at the end of the year (39,086) (432)

All debtors have been reviewed by management at period end and a provision for doubtful debts has been raised to reflect collectability of infringement debtors of $39,086 (2012 $432).

Note 6: Inventories Current Fuel 29,912 15,697 Gas 66,407 39,900 Inventory 43,532 41,475 139,850 97,072

Note 7: Property, Plant & Equipment Land At Valuation 31 October 2011 41,815,000 41,815,000 41,815,000 41,815,000 Intangible Right to lease and develop land parcel 42,208 - Less accumulated amortisation - - 42,208 - Buildings At Valuation 31 October 2011 5,522,000 5,522,000 Less accumulated depreciation (377,637) (174,635) 5,144,363 5,347,365 At Cost 1,121,914 954,516 Less accumulated depreciation (62,489) (50,272) 1,059,425 904,244 6,203,788 6,251,609 Infrastructure At Valuation 31 October 2011 25,606,920 25,606,920 Less accumulated depreciation (1,397,847) (770,996) 24,209,073 24,835,924 At Cost 2,414,783 1,922,352 Less accumulated depreciation (211,088) (85,508) 2,203,695 1,836,844 26,412,768 26,672,768 Plant, Equipment & Motor Vehicles At Fair Value 3,071,534 2,909,832 Less accumulated depreciation (2,378,630) (2,132,979) 692,903 776,853 Capital Works in Progress 212,222 80,423 Total 75,378,888 75,595,653

50 Notes to the Financial Statements For the year ended 31 October 2013

Note 7.1: Property, Plant & Equipment Reconciliations of the carrying amounts of each class of asset at the beginning and end of the current financial year are set out below.

Carrying amount at Additions Disposals Transfer Acc. Depreciation Revaluation Depreciation Carrying amount start of year adjustments movement Expense at end of year 2013 Land 41,815,000 41,815,000 Intangibles - 42,208 42,208 Buildings 6,251,609 167,397 (215,219) 6,203,788 Infrastructure Assets 26,672,768 492,432 (752,431) 26,412,768 Plant & Equipment 776,853 188,557 (277) (272,230) 692,903 Capital works in Progress 80,424 1,022,393 (890,594) 212,222 75,596,653 1,022,393 - (277) (1,239,880) 75,378,888

2012 Land 41,815,000 41,815,000 Buildings 6,482,927 (49,000) 30,920 4,332 (217,570) 6,251,609 Infrastructure Assets 27,049,327 462,696 (839,256) 26,672,768 Plant & Equipment 1,000,187 (81,046) 87,640 68,081 (298,009) 776,853 Capital works in Progress 40,913 620,766 (581,256) 80,424 76,388,355 620,766 (130,046) - 72,413 (1,354,835) 75,596,653

Note 8: Payables 2013 2012 $ $ Trade creditors 144,924 198,771 Accrued expenses 433,541 597,671 Other payables 293,930 306,844 18 872,394 1,103,285

All trade and other creditors are non-interest bearing. The carrying amount of creditors approximates fair value.

Note 9: Provisions Current Employee Benefits (i) (note 9(a)) Unconditional and expected to be settled within 12 months (ii) 298,286 297,358 Unconditional and expected to be settled after 12 months (ii) 219,847 183,679 Provisions related to employee benefits on-costs Unconditional and expected to be settled within 12 months (ii) 93,270 108,708 Unconditional and expected to be settled after 12 months (ii) 35,756 30,886 Total current provisions 647,159 620,631 Non-current Employee Benefits (i) 77,537 64,073 Provisions related to employee benefits on-costs 12,610 10,774 Total non-current provisions 90,147 74,847 Total Provisions 737,306 695,478

9(a) Employee Benefits and related on-costs Current Employee Benefits Annual Leave entitlements 203,539 211,050 Time off in Lieu entitlements 18,700 20,599 Unconditional Long Service Leave Entitlements 295,893 249,388 Non-current employee benefits Conditional Long Service Leave Entitlements 77,537 64,073 Total Employee Benefits 595,669 545,110 Current on-costs 129,026 139,594 Non-current on-costs 12,610 10,774 Total on-costs 141,636 150,368 Total employee benefits and related on-costs 737,304 695,478

(i) Provisions for employee benefits consist of amounts for annual leave and long service leave accrued by employees, not including on-costs. (ii) The amounts disclosed are nominal amounts. (iii) The amounts disclosed are discounted to present values.

51 MOUNT HOTHAM ALPINE RESORT MANAGEMENT BOARD Financial Statements Financial Notes to the Financial Statements For the year ended 31 October 2013

Note 10: Cash Flow Statement 2013 2012 $ $ Net Results for the reporting period 551,362 599,431

Depreciation 1,239,880 1,354,835 Sale / Write down of Assets - (268,228) Fair Value of assets and services received free of charge or for nominal consideration - 83,827

Change in operating assets and liabilities : Decrease/(increase) in receivables 229,456 (473,957) Decrease/(increase) in inventories (42,778) 82,800 Decrease/(increase) in prepayments (47,480) (19,273) Increase/(decrease) in payables (53,847) (66,666) Increase/(decrease) in accrued expenditure (177,044) 469,086 Increase/(decrease) in employee entitlements 41,827 7,483 Net Cash Inflow from operating activities 1,741,375 1,769,338

Note 11: Capital Commitments The Board has signed agreements for the construction of walking trails and geo-technical work. The forward commitments on these works totals $278,327.

Walking trails and geo-technical works Not later than one year 278,327 284,246 Later than one year but not later than five years - 121,820 278,327 406,066

Note 12: Contingent Assets and Liabilities There are no unquantifiable contingent liabilities. (2012-unquantifiable) There are no contingent assets (2012 Nil).

Note 13: Future Site Rent Lease Revenue Crown Land is recorded in the accounts of the Board at the Valuer-General's valuation. The Board has brought to account the rental revenue in relation to the leased sites and does not account for depreciation since the class of assets is defined as land. The Board, acting as a Committee of Management under Section 38 of the Alpine Resorts (Management) Act 1997, manages 84 Crown leases with site holders. The leases cover periods up to 99 years with expected annual rent revenue from these leases within the next year of $1,306,093.

Note 14: Superannuation Employees of Mt Hotham Resort Management Board are entitled to receive superannuation benefits and Mt Hotham Resort Management contributes to both defined benefit and defined contribution plans. The defined benefit plan(s) provides benefits based on years of service and final average salary.

There were no unfunded liabilities in regard to the Board's membership of defined benefit superannuation schemes. The Mt Hotham Resort Management Board has no responsibility for any unfunded superannuation liability in respect to the above defined benefit scheme. The Board does not recognise any defined benefit liability in respect of the plan(s) because the entity has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The Department of Treasury and Finance discloses the State's defined benefit liabilities in its disclosure for administered items.

Contribution details are shown in the following table: Type of Scheme Rate 2013 2012 % $ $ Government Superannuation Office (Defined Benefits) 9.4 - 10.2 18,101 19,115 New/Revised Scheme

Government Superannuation Office (Defined Benefits) 10 11,928 11,698 (SERBS)

Other (Accumulated Benefits) 9 - 9.25 244,571 232,159

Total contributions to all Funds 274,600 262,972

At reporting date there were outstanding contributions of $19,150 (2012 $21,737) payable to the above funds. No loans have been made to the Board from these funds. ANNUAL REPORT 2012/13 As of 1 July 2013 the superannuation guarantee rate increased from 9% to 9.25%.

52 Notes to the Financial Statements For the year ended 31 October 2013

Note 15: Responsible Persons Responsible Persons The names of persons who were Responsible Persons during the financial year were:

Responsible Minister Ryan Smith, MP Minister for Environment and Climate Change from 1 Nov 2012 to 31 Oct 2013

Board Deborah Spring, Board Member. Appointed Chairman of the Board since 5 June 2013 Ronald Mason, Board Member. Appointed Deputy Chairman of the Board since 4 June 2013 Nicole Feeney, Board Member. Chairman of the Board until 4 June 2013 Debra Goodin, Board Member, Deputy Chairman of the Board. Resigned 27 April 2013 Helen Moran, Board Member Timothy Piper, Board Member Peter Hagenauer, Board Member since 4 June 2013

Accountable Officer James Atteridge, Chief Executive Officer and Accountable Officer

Remuneration of Responsible Persons Remuneration received, or due and receivable by Responsible Persons in connection with the management of the Board for the financial period ended 31 October 2013 was $324,804 (2012 - $318,059)

The number of Responsible Persons whose remuneration from the Board was within the specified bands are as follows:

Total Remuneration 2013 2012 Remuneration Bands No. No. $ 0 - $9,999 7 6 $ 10,000 - $19,999 1 $260,000 - $269,999 1 $270,000 - $279,999 1 Total Responsible persons 8 8 Total Remuneration $324,804 $318,059

The relevant Minister's remuneration is reported separately in the financial statements of the Department of Premier & Cabinet.

Retirement Benefits of Responsible Persons There were no retirement benefits paid by the Board in connection with the retirement of Responsible Persons of the Board during the financial year.

Loans At 31 October 2013 there were no loans in existence that have been made, guaranteed or secured by the Board to a Responsible Person of the Board or a related party of a Responsible Person.(2012 - nil)

Other transactions: Helen Moran is the Head of Ski fields with Merlin Entertainments, the parent company of MHSC Pty Ltd, which has dealings with the Mount Hotham Alpine Resort Management Board. Helen is also an office holder with White Crystal Mt Hotham Pty Ltd, Hotham Heights Developments Limited, Mount Hotham Management and Reservations Pty Ltd, Higgi Drive Mount Hotham and is the Chairman of Alpine Resorts Tourism. All transactions are conducted on an arms length commercial basis between the two organisations and during the year the Board paid $12,461 (2012 - $8,576) to MHSC.

At reporting date the MHSC Pty Ltd owed $69,445 (2012 - $234,572) to the Board, being unpaid amounts for annual transport levy, gas, annual service charges and site rental.

Property Interests: Nicole Feeney has property interests at Chalet Hotham and is a member of Anton Huette (Hotham Heights) Inc.

Ronald Mason is a member of Asgaard Alpine Club Inc. and is a committee member of the club.

Peter Hagenauer is a member of Asgaard Alpine Club Inc.

Debra Goodin, Deborah Spring, Timothy Piper, and Helen Moran held no interest in property at Mt Hotham.

James Atteridge (CEO) has interests in property at Razorback Apartments and Arlberg Hotel, Mt Hotham.

53 MOUNT HOTHAM ALPINE RESORT MANAGEMENT BOARD Financial Statements Financial Notes to the Financial Statements For the year ended 31 October 2013

Note 15: Responsible Persons (continued) All transactions are conducted on an arms length commercial basis between the Board and the organisations listed below. During the year, the Board received/paid the following amounts:

The following additional transactions have been entered into with related party entities:

Revenue Expenditure Outstanding debtors at 31/10/2013 Alpine Resort Coordinating Council 604 199,621 - Australian Alpine Reservation Centre 4,010 967 - Anton Huette (Hotham Heights) Inc 46,866 - 16,777 Arlberg Apartments (Hotham Management Pty Ltd) 782,615 - 95,134 Asgaard Alpine Club Inc 40,269 - 621 Chalet Hotham Body Corporate 95,647 - 1,576 Chalet Hotham # 22 516 - 95 Higgi Drive Owners Corporation 5,800 - - Hotham Heights Developments Ltd 413,052 - - Moritz Mt Hotham Pty Ltd 105,764 26,915 - MHSC Pty Ltd 1,308,733 12,461 69,445 Razorback Apartments 81,316 - - Razorback #1 3,644 3,644 - Tantani Chalet 28,514 - 1,023 Zirky's Apartments Pty Ltd 274,823 - 2,500 Total 3,192,173 243,608 187,171

Note 16: Remuneration of executives The number of executive officers, other than responsible persons, and their total remuneration during the reporting period are shown in the first two columns in the table below in their relevant income bands. The base remuneration of executive officers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, long service leave payments, allowances, vehicles, redundancy payments and retirement benefits. The total annualised equivalent provides a measure of full time equivalent executive officers over the reporting period.

The increase between base remuneration and total remuneration is due to excessive leave being cashed out.

Total Remuneration Base Remuneration 2013 2012 2013 2012 Remuneration bands No. No. No. No. $100,000 - $109,999 $110,000 - $119,999 $120,000 - $129,999 1 2 2 $130,000 - $139,999 1 1 $150,000 - $159,999 1 Total number of executives 2 2 2 2 Total annualised employment equivalents (AEE)1 2 2 2 2 Total Amount $ 284,834 $ 253,734 $ 248,804 $ 244,959

1 Annualised employee equivalent is based on working 38 hours per week over the reporting period.

ANNUAL REPORT 2012/13

54 Notes to the Financial Statements For the year ended 31 October 2013

Note 17: Financial Instruments (A) Interest Rate Risk Exposure The Mount Hotham Alpine Resort Management Board's exposure to interest rate risk and the effective weighted average interest rate for classes of financial assets and financial liabilities is set out below:

Interest Rate Exposure Weighted Average Carrying Amount Fixed Interest Variable Non-Interest Interest Rate Interest Bearing 2013 $ $ $ $ $ Financial Assets Cash 3.34% 3,665,499 - 3,663,128 2,371 Receivables 758,469 - - 758,469 4,423,968 - 3,663,128 760,840 Financial Liabilities Accounts Payable 872,394 - - 872,394 Finance leases - - - - Fixed Rate Borrowings - TCV 6.58% 1,701,643 1,701,643 - - 2,574,037 1,701,643 - 872,394 2012 $ $ $ $ $ Financial Assets Cash 4.09% 3,021,214 - 3,018,792 2,422 Receivables 987,925 - - 987,925 4,009,139 - 3,018,792 990,347 Financial Liabilities Accounts Payable 1,062,313 - - 1,062,313 Finance leases - - - - Fixed Rate Borrowings - TCV 6.58% 1,776,617 1,776,617 - - 2,838,930 1,776,617 - 1,062,313

Maturity Dates Weighted Nominal Amount Less than 1 1-3 months More than 1-5 years > 5 years Average month 3 months - 1 Interest Rate 2013 $ $ $ $ $ $ Financial Assets Cash 3.34% 3,665,499 - - - - - Receivables 758,469 758,469 - - - - 4,423,968 758,469 - - - - Financial Liabilities Accounts Payable 872,394 872,394 - - - - Finance leases ------Fixed Rate borrowings - TCV 6.58% 1 ,701,643 - 47,448 142,344 759,168 752,683 2 ,574,037 872,394 47,448 142,344 759,168 752,683 2012 Financial Assets Cash 4.09% 3,021,214 - - - - Receivables 987,925 987,925 - - - 4,009,139 987,925 - - - Financial Liabilities Accounts Payable 1,062,313 1,062,313 - - - - Finance leases ------Variable Rate borrowings - TCV 6.58% 1,776,617 - 47,448 142,344 759,168 827,657 2,838,930 1,062,313 47,448 142,344 759,168 827,657

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

55 MOUNT HOTHAM ALPINE RESORT MANAGEMENT BOARD Financial Statements Financial Notes to the Financial Statements For the year ended 31 October 2013

Note 17: Financial Instruments (continued)

(B) Credit Risk Exposures The credit risk on financial assets of the Mount Hotham Alpine Resort Management Board which have been recognised on the balance sheet is the carrying amount, net of any provision for doubtful debts.

The Board's maximum exposure to credit risk at reporting date in respect to financial assets is limited to the carrying amount in the balance sheet.

(C) Net fair values of financial assets and liabilities The fair values and net fair values of financial assets and financial liabilities are determined as follows: (i) The fair value of financial assets and financial liabilities with standard terms and conditions and traded in active liquid markets are determined with reference to quoted market prices; and (ii) The fair value of other financial assets and financial liabilities are determined in accordance with generally accepted pricing models based on discounted cash flow analysis. The Board considers that the carrying amount of financial assets and financial liabilities recorded in the financial report to be a fair approximation of their fair values, because of the short-term nature of the financial instruments and the expectation that they will be paid in full.

(D) Liquidity Risk Liquidity risk arises when the Mount Hotham Alpine Resort Management Board is unable to meet its financial obligations as they fall due. The Mount Hotham Alpine Resort Management Board operates under the Government fair payments policy of settling financial obligations within 30 days and in the event of a dispute, make payments within 30 days from the date of resolution. It also continuously manages risk through monitoring future cash flows and maturities planning to ensure adequate holding of high quality liquid assets and dealing in highly liquid markets.

(E) Interest Rate Risk Exposure to interest rate risk is insignificant and might arise primarily through the Mount Hotham Alpine Resort Management Board’s interest bearing liabilities. Minimisation of risk is achieved by mainly undertaking fixed rate or noninterest bearing financial instruments. For financial liabilities, the Mount Hotham Alpine Resort Management Board mainly undertake financial liabilities with relatively even maturity profiles.

(F) Sensitivity disclosure analysis The following table details the sensitivity to movements in interest rates based on a parallel shift of -1% and +1% from market rates at year end.

Carrying Amount -1.0% -1.0% 1% 1% Financial Assets $ Surplus Equity Surplus Equity 2013 Cash exposed to variable interest rates 3,663,128 (36,631) (36,631) 36,631 36,631 and short term deposits 2012 Cash exposed to variable interest rates 3,018,792 (30,188) (30,188) 30,188 30,188 and short term deposits

Note 18: Subsequent Events No matters or circumstances have arisen since the end of the reporting period which may significantly affect the operations of the Board, the result of those operations, and the state of affairs of the Board in future years.

ANNUAL REPORT 2012/13

56 Notes to the Financial Statements For the year ended 31 October 2013

Certification of Financial Report In our opinion, the financial report of the Mount Hotham Alpine Resort Management Board, comprising the Comprehensive Operating Statement, Balance Sheet, Statement of Changes in Equity and Cash Flow Statement and notes to and forming part of the financial statements, for the year ended 31 October 2013 :

(a) Present fairly the financial transactions of the Mount Hotham Alpine Resort Management Board during the year ended 31 October 2013 and its financial position as at 31 October 2013; and

(b) Have been prepared in accordance with Standing Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions, Australian Accounting Standards and other mandatory professional reporting requirements.

At the date of signing we are not aware of any circumstances which would render any particulars included in the report to be misleading or inaccurate.

Deborah Spring CHAIRMAN 6 th December 2013

James Atteridge CHIEF EXECUTIVE OFFICER 6 th December 2013

Abigail Adams CHIEF FINANCIAL AND ACCOUNTING OFFICER 6 th December 2013

57 MOUNT HOTHAM ALPINE RESORT MANAGEMENT BOARD Disclosure Index Index Disclosure The Annual Report of the Mount Hotham Alpine Resort Management Board is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of our compliance with these statutory disclosure requirements.

Legislation Requirement Page ref. Accountable Officer’s Declaration SD 4.2(j) Sign off requirements IFC

Charter and purpose FRD 22D Objectives, functions, powers and duties 6 FRD 22D Manner of establishment and the relevant Ministers 6 FRD 22D Nature and range of services provided 10

Financial and Other Information FRD 22D Operational and budgetary objectives 13-15 FRD 22D Summary of the financial results 13 FRD 22D Major changes or factors affecting performance 11-12 FRD 22D Subsequent events 11-12 FRD 22D Significant changes in financial position during the year 13

Governance and Organisational Structure FRD 22D & SD 2.2(f) Organisation structure 19 FRD 22D Occupational health and safety policy 17 FRD 22D Employment and conduct principles 17 FRD 22D & 29 Workforce data disclosures 18 FRD 15B Executive officer disclosures 53-54

Other Information FRD 10 Disclosure index 58 FRD 22D & 25 Victorian Industry Participation Policy disclosures 23 FRD 22D Details of consultancies in excess of $10 000 13 FRD 22D Summary of consultancies under $10 000 13 FRD 22D Disclosure of government advertising expenditure 14 FRD 12A Disclosure of major contracts 14 FRD 22D Application and operation of Freedom of Information Act 1982 24 FRD 22D Compliance with Building Act 1993 33 FRD 22D Statement on National Competition Policy 23 FRD 22D Application and operation of Protected Disclosures Act 2012 24 FRD 24C Reporting of office-based environmental impacts N/A FRD 22D Statement of availability of other information 24 SD 4.5.5 Risk management compliance attestation 22 SD 4.5.5.1 Insurance attestation 22 PC 2012/02 Gifts, benefits and hospitality attestation 17 SD 4.2(g) General information requirements Entire Document

Financial Statements Required Under Part 7 of the Financial Management Act 1994 SD 4.2(f) Model Financial Reporting 41-57 SD 4.2(b) Operating Statement 43 SD 4.2(b) Balance Sheet 43 SD 4.2(a) Statement of Changes in Equity 44 SD 4.2(b) Cash flow Statement 44 SD 4.2(c) Accountable officer’s declaration 57 SD 4.2(c) Compliance with Australian standards and other authoritative pronouncements 41-57 SD 4.2(c) Compliance with Ministerial Directions 41-57 SD 4.2(d) Rounding of amounts 48

Legislation Alpine Resorts (Management) Act 1997 23 Building Act 1993 33 Financial Management Act 1994 41 Freedom of Information Act 1982 24 Protected Disclosures Act 2012 24 Victorian Industry Participation Policy Act 2003 23

Print and Design FRD 30 Standard requirements for the design and print of annual reports Entire Document

Acronyms FRD - Financial Reporting Direction ANNUAL REPORT 2012/13 SD - Standing Direction PC - Premier’s Circular

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59 MOUNT HOTHAM ALPINE RESORT MANAGEMENT BOARD Cover: 300 gsm Revive Laser is Published by Mount Hotham Copyright State of Victoria, 70% Recycled certified fibre. Alpine Resort Management Mount Hotham Alpine Resort Certified Carbon Neutral by the Board, Mount Hotham Victoria, Management Board 2013. DCC&EE under the National December 2013. This publication is copyright. Carbon Offset Standards An electronic copy of this No part may be reproduced by (NCOS). Revive Laser also document is also available on any process except in supports Landcare Australia. www.mthotham.com.au accordance with the provision Made in Australia by an ISO Designed by Mount Hotham of the Copyright Act 1968. 14001 certified mill. No Chlorines Alpine Resort Management. bleaching occurs in the recycling Printed by Courtney Colour Print: process. Graphics. ISSN 2201-3482 Text: 150 gsm Revive Laser is Cover Photo: Mount Hotham 100% Recycled, and is Alpine Resort Management Online: manufactured from FSC Board. ISSN 2201-3512 Recycled certified fibre, Certified Carbon Neutral by the DCC&EE under the National Carbon Offset Standards (NCOS). Revive Laser also supports Landcare Australia. Made in Australia by an ISO 14001 certified mill. No Chlorines bleaching occurs in the recycling process.