Caring with Respect
Fremantle Cemetery Board
Annual Report
For the year ended 30 June 2003
Hon. T.G. Stephens BA MLC Minister for Local Government and Regional Development; the Kimberley, Pilbara and Gascoyne 11th Floor, Dumas House 2 Havelock Street WEST PERTH WA 6005
In accordance with Section 66 of the Financial Administration and Audit Act 1985, we hereby submit for your information and presentation to Parliament, the Annual Report of the Fremantle Cemetery Board for the financial year ended 30 June 2003.
The Annual Report has been prepared in accordance with the provisions of the Financial Administration and Audit Act 1985.
We wish to advise that the Financial Statements contained in the attached report have been audited by the Office of the Auditor General and contain the relevant audit opinions.
Mark K Holt Chief Reporting Officer
21 August 2003
CONTENTS
Page
HIGHLIGHTS 1
MANAGEMENT 2
MEETINGS 2
BOARD REMUNERATION 2
MEMBERS OF THE BOARD 3
OPERATIONS REPORT & OVERVIEW OF YEAR 5
CORPORATE GOVERNANCE 8
STATEMENT OF COMPLIANCE WITH RELEVANT WRITTEN LAW 9
STATEMENT OF FINANCIAL PERFORMANCE 14
STATEMENT OF FINANCIAL POSITION 15
STATEMENT OF CASH FLOW 16
NOTES TO FINANCIAL ACCOUNTS 17
EVENTS OCCURRING AFTER REPORTING DATE 29
STATEMENT OF COMPLIANCE WITH RELEVANT WRITTEN LAW 29
STATUTORY REPORTING COMPLIANCE CERTIFICATION 30
ANNUAL ESTIMATES 32
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HIGHLIGHTS
• Strong Financial Result
- $344,893 net operating surplus
- WA Treasury Corporation borrowings reduced to $2,054,654.
• Strong Performance Growth
- Number of funerals conducted increased by 240 over the year
- Total number of funeral services conducted was 2773 - highest ever
- There was a 24% increase in the number of families who chose Condolence Lounge catering.
• Other
- New products, especially memorial options were introduced
- Five Board Members, including three long-serving members, retired on 30 June 2002
- Government decision to bring Fremantle Cemetery under the management of the Metropolitan Cemeteries Board announced on 13 May 2003, to become effective 1 July 2003.
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MANAGEMENT
FREMANTLE CEMETERY BOARD 30 June 2003
BOARD
Mrs J Hobson, Chairperson (appointed 1 July 2002) Ms E Blackburn OAM (appointed 1 July 2002) Mr K Chipper (appointed 30 March 1994) Ms J Newman (appointed 1 July 2002) Mrs R Marlborough (appointed 1 July 2002) Mr D Whittington (appointed 1 July 2002) Rev M Wilson (appointed 27 November 1996)
MANAGEMENT TEAM
Brian Adams Chief Executive Officer Mark Holt Client Services Manager & Principal Accounting Officer Rod Walker Operations Manager Helen Gammond Executive Assistant
MEETINGS
Board meetings were held on a monthly basis, on the fourth Thursday of each month. Six special meetings were held during the year. Attendance by Board Members at meetings held during the financial year were as follows:
Max No of Meetings No. Attended Mrs J Hobson 18 18 Ms E Blackburn 18 14 Mr K Chipper 18 15 Ms J Newman 18 16 Mrs R Marlborough 18 17 Mr D Whittington 18 17 Rev M Wilson 18 17
BOARD REMUNERATION
Board Members receive an attendance fee of $123 per meeting. However, the Chairman receives an attendance fee of $185 in recognition of the additional time required to fulfil Board requirements.
DECLARATIONS OF INTEREST
Board Members have disclosed pecuniary interests as required.
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MEMBERS OF THE BOARD
The Fremantle Cemetery Board consists of seven people appointed by the Minister for Local Government. For the year 2002/03 the Board Members were:
Mrs Jean Hobson Chairperson
Mrs Hobson was appointed Chairperson of the Board for a one year term in July 2002. She is a former Fremantle City Councillor, having served for nine years between 1983 and 1992, including a term as Deputy Mayor. Mrs Hobson has been a member of many Fremantle based organisations, including the Fremantle Hospital Management Board (1985-1993) a member of the Fremantle Library Advisory Committee (current) and a member of the Fremantle Education Centre Board.
Ms Estelle Blackburn OAM
Ms Blackburn was appointed to the Board in July 2002 for a term expiring on 30 June 2003. She has a background of political, legal and investigative journalism, the focus of much of her research over the past decade taking her into Fremantle’s history, including Fremantle Cemetery. She has been honoured with an Order of Australia Medal for community service and a national Walkley Award for the greatest contribution to journalism.
Mr Kim Chipper
Mr Chipper was first appointed to the Board on 30 March 1994 for a period of three years. On 30 March 1997 he was re-appointed for a term expiring on 30 June 2001. His term was subsequently extended to 30 June 2003. Mr Chipper commenced as a funeral director in 1969 with the family firm Chippers started by his grandfather in 1889, rising to managing director in 1979. He is past president of both the Western Australian Funeral Directors Association and the Australian Funeral Directors Association, an active member of the Royal Freshwater Bay Yacht Club, Ferrari Club Australia and other organisations. He holds a Commissioner of Declarations appointment.
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Mrs Ros Marlborough
Mrs Marlborough was appointed to the Board in July 2002 for a one year term. A school teacher by profession she taught children for over 20 years at Roebourne Primary School and the Kim Beazley School for children with special needs. Ros is an active member of her local community, she received a Certificate of Appreciation from the Education Department for voluntary work at the White Gum Valley Primary School and is a recipient of an Outstanding Achievement Award from the ALP. Ros is married with one child.
Ms Jan Newman
Ms Newman was appointed to the Board in July 2002 for a period of one year. She is a member of the Australian Association of Social Workers, with a background of cross-cultural social work. Currently she is active in various community arts and history projects and is a member of the boards of two community-funded welfare organisations. Initiated and helped to coordinate development of the Fremantle Primary Heritage Garden which acknowledges the Old Alma Street Cemetery, Fremantle’s first burial ground.
Mr Donald Whittington
Mr Whittington was appointed to the Board in July 2002 for a one year term. For nine years he was a Fremantle City Councillor, including three years as Deputy Mayor and six years as Chairman of Planning & Development. He has also been actively involved in several community organisations in the City of Fremantle. He founded his own herbs and spices business in 1975 and is still engaged in the development of an Australian herbs and spices industry. He is a Commissioner for Declarations
Reverend Marie Wilson Reverend Wilson was first appointed to the Board on the 27 November 1996 to March 1997 and she was re-appointed for a term expiring on 30 June 2001. This term was subsequently extended to 30 June 2003. She is a Minister in the Uniting Church and has 17 years Parish experience in Perth and was Minister at Wesley Fremantle before being appointed Chaplain at Penrhos College. She is a member of Rotary and has been involved in a variety of community organisations in Victoria, South Australia and the North West of Western Australia as well as in Perth.
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OPERATIONS REPORT & OVERVIEW OF YEAR
The year commenced on a high note with news from the Minister that Fremantle Cemetery Board would continue as an independent self funded statutory authority, following a decision from the Machinery of Government Review.
The financial year 2002/03 was a successful trading year. The number of funerals conducted was just under last year’s record total but revenue received reached an all time high, yet the cost of services was down on last year. Before extraordinaries, a net surplus of $344,893 was achieved.
There were a total of 2,764 funerals conducted during the year. The following graph highlights a 40 percent growth in funerals conducted at Fremantle Cemetery over the last seven years
Total Funeral Services 1996 - 2003
3000 2500 2000 1500 1000 500 0
96/97 97/98 98/99 99/00 00/01 01/02 02/03
Of the 2,764 funeral services, 2,358 were cremations and 406 were burials. Cremation services represented 85% of all services.
The Board continued the previous strategy of utilising freed up capital to improve the standard of grounds and facilities at Fremantle Cemetery. This extra capital came from a deliberate policy of lengthening the term of a Treasury loan (for the Crematorium complex), thereby freeing up cash for onsite improvements. Almost $400,000 was spent on capital improvements during the year. Projects included:
• new memorial gardens and niche walls
• beautification by paving walkways in older monumental areas
• creation of an all weather Heritage Trail
• new water bore and power supply to the eastern part of the cemetery grounds.
• replacement of old and unreliable machinery
• development and endorsement of architectural plans for a 616 crypt mausoleum
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Human Resources
The Board continued to employ 26 full time staff and later use was made of a contracted Marketing person. A new General Agreement for the 17 grounds and cremation staff came into force in February 2003, to replace the lapsed Certified Agreement. One staff member is covered by the Catering Award and another is contracted to the Board to September 2005.
Work for the Dole
The Board has supported Government initiatives by employing six Work for the Dole people throughout the year. An arrangement was negotiated with the Justice Department for Community Work Teams to spend one day a week beautifying the grounds. In all, some 900 hours was worked onsite via this process during the year. Another community based Work for the Dole scheme was utilised to paint an Australiana bush scene on a large concrete wall which is along one of the Cemeteries boundaries. This has had the desired effect of uplifting an isolated corner of the cemetery grounds.
Heritage Trail
On 18 June, the Minister for Local Government, the Hon Tom Stephens MLC officially opened Stage 1 of a Heritage Trail, in and about century old headstones. A special sign posted path, allowing wheelchair access, meanders amongst many old and historical headstones, which recount the history of infamous and famous characters who are buried at Fremantle Cemetery. A guide book “Heroes & Villains” contains 35 bibliographies and allows visitors to walk the trail at their own pace. The Board is committed to maintaining the Cemetery for future generations, and has planned further stages of the Heritage Trail.
Industry and Community Liaison
Fremantle Cemetery Board maintained its membership of two local Chamber of Commerce groups during the year and the opportunity was taken to expand the business community’s understanding of Fremantle Cemetery. Public groups, ranging from architectural and service groups to schools, university students and historical organisations have visited the Cemetery to study historical headstones and to carry out research on architectural themes.
The Board gave approval to a locally funded film organisation to record scenes for a full length movie, planned for release in December 2003. The film, about the Australian Band AC/DC attracted much local interest and the Premier himself will feature in the film. Filming occurred without incident, and was carried out with the utmost respect for Cemetery and its internal surroundings.
The Board continues to offer a wide range of advice to cemetery management authorities throughout Western Australia. A senior employee from a major regional cemetery authority received onsite training for a week at Fremantle Cemetery. The Board remained an active participant in the Cemeteries and Crematoria Association of WA (CCAWA) and Board Members are in tune with latest industry trends and development via membership to the Australian Cemeteries & Crematorium Association, and the Australian Horticultural Association.
During the year the Board created a website. Now all relevant information about the Cemetery is available online, including facilities and services offered. The public are also able to search the Cemetery’s records online to find grave locations and obtain other information about cremations and burials. Feedback has been received that the site is easy to navigate and searches are simple to make and of great value to the public.
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The Cemetery maintains nightly security patrols and security lighting is provided around all buildings and car parks. Three major acts of vandalism and break and entry occurred, as well as a major theft of Board property. Local Police assisted as necessary.
The Board waived cemetery fees worth $5,413 for victims of the Bali bombing tragedy.
Functional Review Taskforce
On 13 May 2003 Local Government Minister Tom Stephens announced that the management of Fremantle Cemetery would transfer to the Metropolitan Cemeteries Board from 1 July 2003. The amalgamation is the result of recommendations from the Functional Review Taskforce.
An amalgamation transition project, known as “Across the Board”, commenced in May with the involvement of management and staff of Fremantle Cemetery and their counterparts at the Metropolitan Cemeteries Board.
Although the announcement was received with sadness by many staff members at Fremantle Cemetery, it is to their credit that they were committed to maintaining a high standard of professionalism with a view to ensuring a smooth transition to the new arrangements post 30 June 2003.
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CORPORATE GOVERNANCE
The Cemetery is a public self funded trading enterprise with perpetual succession and was established on 1 January 1899 to manage the Fremantle Cemetery. The responsibilities of the Board are governed by the Cemeteries Act 1986, the Cremation Act 1929 and By-Laws gazetted on 23 October 2001.
The Board’s mission is to provide the community with convenient and socially acceptable burials, cremations and memorial venues and services at reasonable cost.
The Fremantle Cemetery consists of 45.78 HA in two distinct fee simple titles. This land is bounded by Carrington Street, Leach Highway, Stock Road and Sainsbury Road. Approximately a quarter of this land is commercially leased.
The Board’s 10 Year Strategic Plan was reviewed and updated for costs during the year. This document guides the Board’s future development plans.
No Freedom of Information or Ombudsman queries were received during the year. Standard government reporting returns were all completed and filed on time.
Staff attended Public Sector training sessions, Australian Institute of Management courses and in house team building coaching, facilitated by a consultant.
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Statement of Compliance With Relevant Written Law
Enabling Legislation The administration of the Fremantle Cemetery Board is established under the Cemeteries Act 1986.
Legislation Administered ∗ The Cemeteries Act 1986 ∗ The Cremations Act 1929 as amended ∗ The Fremantle Cemetery Board Bylaws
Legislation Impacting on Board’s Activities ∗ Financial Administration and Audit Act 1985 ∗ Corporations (Western Australia) Act 1990 ∗ Public Sector Management Act 1994 ∗ Public and Bank Holidays Act 1972 ∗ Equal Opportunity Act 1984 ∗ Occupational Health, Safety and Welfare Act 1984 ∗ Workers Compensation and Assistance Act 1981 ∗ Industrial Relations Act 1979 (State) ∗ Industrial Relations Act 1988 (Federal) ∗ Minimum Conditions of Employment Act 1993 ∗ Workplace Agreement Act 1993 ∗ State Supply Commission Act 1991 ∗ The Income Tax Assessment Act 1936 ∗ The Occupational Superannuation Standards Act 1987 ∗ Official Corruption Commission Act 1988-94 ∗ Freedom of Information Act 1992 ∗ The Statutory Corporation (Liability of Directors) Act 1996 ∗ Labour Relations Legislation Amendment Act 1997 ∗ Environmental Protection Act 1984
In the financial administration of the Fremantle Cemetery Board we have complied with the requirements of the Financial Administration and Audit Act 1985 and every other relevant written law and exercised controls which provide reasonable assurance that the receipt and expenditure of moneys and the acquisition and disposal of public property and incurring of liabilities have been in accordance with legislative provisions.
At the time of signing we are not aware of any circumstances which would render the particulars included in this statement misleading or inaccurate.
______Mark K Holt REPORTING OFFICER 21 August 2003
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STATUTORY REPORTING COMPLIANCE CERTIFICATION, PUBLIC SECTOR STANDARDS AND CODE OF ETHICS
In accordance with the Public Sector Management Act 1994 I am reporting as follows:
1. In the administration of the Fremantle Cemetery Board, I have complied with the Public Sector Standards in Human Resource Management and the Western Australian Public Sector Code of Ethics.
2. I have put in place procedures designed to ensure each compliance and conducted appropriate internal assessments to satisfy myself that the statement in 1. is correct.
3. The application made for breach of standards review and corresponding outcomes for the reporting period are:
• number lodged – nil • number of breaches found, including details of multiple breaches per application – nil • number still under review – nil
Electoral Advertising
During 2002/03 the Board did not incur expenditure in relation to the class of expenditure specified under Section 1752E of the Electoral Act 1907.
Sustainable Energy
No direct heat savings initiatives were undertaken by the Board. However, the Board was able to change suppliers of natural gas and effect a 25% cost saving on substantially the same number of cremation services as last year. It has not been economical to measure greenhouse gas emissions from Cemetery operations.
Publications and Information
The following publications are available – Memorialisation Booklet; Memories in Bronze; Care and Maintenance of Bronze Memorials; Catholics May Choose Cremation; Questions People ask about Cremation ; Chapels Crematorium Complex Brochure; Plans of the Grave Areas and Memorial Gardens of Remembrance; Memorial Price Schedule; Schedule of Fees and Charges and the Fremantle Cemetery Board Annual Report.
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FREMANTLE CEMETERY BOARD CERTIFICATION OF PERFORMANCE INDICATORS FOR THE YEAR ENDED 30 JUNE 2003
We hereby certify that the performance indicators are based on proper records, are relevant and appropriate for assisting users to assess the Fremantle Cemetery Board performance, and fairly represent the performance of the Fremantle Cemetery Board for the financial year ended 30 June 2003.
______MARK K HOLT AUTHORISED OFFICER 22 August 2003
AUDITOR GENERAL
INDEPENDENT AUDIT OPINION
To the Parliament of Western Australia
FREMANTLE CEMETERY BOARD PERFORMANCE INDICATORS FOR THE YEAR ENDED JUNE 30, 2003
Audit Opinion In my opinion, the key effectiveness and efficiency performance indicators of the Fremantle Cemetery Board are relevant and appropriate to help users assess the Board’s performance and fairly represent the indicated performance for the year ended June 30, 2003.
Scope The Board’s Role The Board was responsible for developing and maintaining proper records and systems for preparing performance indicators.
The Reporting Officer’s Role Following the abolition of the Board with effect from July 1, 2003 the Treasurer appointed a Reporting Officer under the provisions of section 70A of the Act, who was responsible for preparing and presenting the final performance indicators.
The performance indicators consist of key indicators of effectiveness and efficiency.
Summary of my Role As required by the Financial Administration and Audit Act 1985, I have independently audited the final performance indicators to express an opinion on them. This was done by looking at a sample of the evidence.
An audit does not guarantee that every amount and disclosure in the performance indicators is error free, nor does it examine all evidence and every transaction. However, my audit procedures should identify errors or omissions significant enough to adversely affect the decisions of users of the performance indicators.
D D R PEARSON AUDITOR GENERAL November 4, 2003
4th Floor Dumas House 2 Havelock Street West Perth 6005 Western Australia Tel: 08 9222 7500 Fax: 08 9322 5664 12
KEY PERFORMANCE INDICATORS
Outcome To meet the expectations of the community in relation to burial, cremation and memorial services – See Notes 1 and 2.
EFFECTIVENESS INDICATOR 1. Target (Effectiveness) To perform 100% of burials and cremations without incident
Performance Number of funerals for the year:
Burials 406 Cremations 2358
Number of funerals without incident:
Burials 404 (99.5%) Cremations 2358 (100%)
Percentage comparison to previous years:
Burials Cremations
1995/96 100.00% 99.87% 1996/97 99.80% 100.00% 1997/98 99.80% 99.95% 1998/99 99.52% 100.00% 1999/00 99.77% 100.00% 2000/01 99.53% 99.90% 2001/02 99.77% 99.95%
Comments There were 2 burial incidents during the year, which otherwise spoilt a perfect record.
EFFICIENCY INDICATOR
2. Target (Efficiency) To maintain total costs per funeral below a budget prediction of $980 and in line with the Board’s mission to provide funeral services at a reasonable cost.
Performance Costs per funeral were $900 for the 2002/03 year.
Comparative Costs 1995/96 $773 1996/97 $976 1997/98 $885 1998/99 $970 1999/00 $870 2000/01 $884 2001/02 $859
Comments: A consistent result.
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NOTES TO PERFORMANCE INDICATORS - YEAR ENDED 30 JUNE 2003
NOTE 1
In addition to minimising community costs, the Board consider it equally important to provide a quality service to the community. This is monitored through key indicators that measure the level of service in relation to community expectations.
The Board maintains an incident register and records incidents that occur at funerals. The performance of the Cemetery in relation to providing quality service can be measured by the ratio of incidents in comparison to previous years.
NOTE 2
Maintaining costs per funeral to a minimal level is considered an important objective to the Board as this provides information that enables regular monitoring of costs that are passed on to the community. This is consistent with the Cemetery’s overall objective of providing a quality service that is necessary to the community at a moderate cost.
The information for the key efficiency indicators has been extracted from financial and accounting records, and from records of funerals held. An abnormal item, being the Mausoleum Project No. 1 write off to operating expenditure ($210,425), is not included in the calculation to establish the cost per funeral.
The indicators provide information on the cost of providing the Cemetery’s primary service, and are therefore considered to be key indicators. The performance can be monitored by way of comparison to budget, previous performance and the performance of other cemeteries.