Central Murray Regional Waste Management Group

ANNUAL REPORT

Year Ending 30th June 2003

Annual Report 2002/2003

Central Murray Regional Waste Management Group

ANNUAL REPORT 2002/2003

Member Councils Buloke Shire Council Gannawarra Shire Council Loddon Shire Council Rural City Council Wakool Shire Council

Central Murray Staff Karen Fazzani – Executive Officer Julie Slater – Regional Education Officer

Page 2 Annual Report 2002/2003

Chairperson’s Report

The past year has seen quite a few changes for the Central Murray Waste Management Group as a result of legislation passed by the Victorian Parliament in June 2002, and Council elections held in four of our five member Councils in March 2003. The later resulting in three new Directors being appointed to the Group. The changes to the legislation saw the Regional Waste Management Group change their constitution to include the Shire of Wakool as a full member of the Central Murray Regional Waste Management Group and give them full voting rights. During the past twelve months the Central Murray Regional Waste Management Group has been involved in a number of activities which have assisted the Group in continuing to enhance its aim to work with all sectors to achieve sustainable reductions in waste and improvements in the management of residual waste streams. The Regional Waste Management Plan was put on hold awaiting EcoRecycle ’s Solid Industrial Waste Strategy and Guidelines from the EPA. The review process will continue in 2003/2004 to update our Plan. The Group’s Education Trailer was officially launched by Minister Garbutt in Swan Hill on 1 August 2002 along with the upgraded Swan Hill Recycling Centre and Education Centre. Our Education Officer, Julie Slater, has been using the Trailer extensively to spread the message regarding the benefits of reducing, reusing, and recycling waste throughout our region. Stage Two of our Agricultural Waste Project is just about complete. Another asset to the region was officially launched on the first of April 2003 in the form of Martin’s Mobile Cranes new mobile scrap metal compactor, which will be used in the regular collection of waste metal from landfills in the Region Some of the Region’s Member Councils have been extremely proactive with their commitment to waste reduction. The year has seen a number of improvements made at landfills and transfer stations across the region. Finally, I would like to thank the past and present Board, particularly the Advisory members and staff, for their support over the past twelve months. The coming year will see more challenges in store for the Regional Waste Management Group including the staging of a Buy Green Expo in Swan Hill during August 2003.

Frank Maher Frank Maher Chairperson, CMRWMG

Page 3 Annual Report 2002/2003

Regional Achievements 2002/2003

Official launch by Minister Sherryl Garbutt of the Mobile Waste and Litter Education Centre, along with the upgraded Recycling Facility and Education Centre at Swan Hill.

36,500 drums were diverted from landfill through the drumMUSTER farm chemical container collection program.

Revised and adopted a 3 Year Business Plan with an Action Plan for 2003/2004

Updated and adopted the Regional Education Plan incorporating Communication activities

Monitored on-going regional scrap metal collection service

Involved in Waste Wise Schools Program

Maintained Central Murray Regional Waste Management Group website (www.cmrwmg.com.au)

Facilitated Gatekeepers Training Course for landfill operators in the region.

Produced three Regional Newsletters

New kerbside waste collection service implemented in the Loddon Shire Council.

New kerbside waste and recycling contract adopted by Buloke Shire Council to be implemented in July 2003.

Coordinated a Waste Wise workshop for tourism operators in the Central Murray region to encourage them to become Waste Wise

Finalisation of Stage 2 of Waste Wise Industry Program – Agricultural Waste Solutions Project

Promoted and utilised Mobile Waste and Litter Education Centre

Officially launched Regional Mobile Scrap Metal Compactor

Loddon Shire Council successful in EcoBuy Award for Excellence in Expenditure.

Page 4 Annual Report 2002/2003

Executive Officers Report

Reflecting on the past year of the Central Murray Regional Waste Management Group it has been a year of new challenges and review following changes to the Environment Protection Act legislation, an organisational status review, and a performance management and reporting audit as part of a case study, as well as municipal elections. Despite changes to the Management Group Directors and Advisory Committee through the year, achievements towards waste minimisation, diversion of waste to landfill, and increases in recyclable amounts were evident. Workshops and meetings were held with the grain, fruit and polystyrene industries as part of Stage 2 of the Agricultural Waste Project. Two case studies resulting from this project are due to be distributed in September/October 2003. The release of EcoRecycle Victoria’s statewide Solid Waste Strategy: Towards Zero Waste has set the waste reduction targets for the next five to ten years. The Group will be working towards the targets set for the rural area of 45% municipal waste reduction to landfill by 2008 and 65% by 2013. During the last 12 months, the Group has held meetings at different centres throughout the region, providing the opportunity to view a mobile waste oil facility at Birchip, inspect one of the latest balers at Barham, witness a mobile scrap metal compactor demonstration at , view the mobile waste and litter education trailer at Boort, and peruse the upgraded Swan Hill Recycling Centre and Education room at Swan Hill. A highlight during the year was the official launch of the mobile scrap metal compactor that will be utilised throughout the region to collect scrap metal from the landfill and transfer stations. I would like to formally acknowledge the terrific job Julie Slater does as the Group’s Regional Education Officer. The professional manner and enthusiasm Julie shows in all aspects of her position deserves to be recognised. As well as the on-going promotion of the Group’s activities and spreading the Reduce, Reuse and Recycle ethos throughout the Region, Julie has implemented and updated the Regional Education and Communication Plan, maintained and updated the Group’s website, and worked closely with Member Councils to help them implement their Education Plans. I am proud to say that one of our Group Members, the Loddon Shire Council won the inaugural EcoBuy Award for Excellence in Expenditure in recognition of the being the Council that had spent the most per capita amount on recycled products.

Page 5 Annual Report 2002/2003 Executive Officers Report (continued..,)

At an operational level, the first full year of consistent and reliable data collection has been collated for the Region, with Member Councils contributing to the quarterly standardised data collection program. On behalf of the Group I attended various workshops, seminars and conferences pertaining to waste management including Association Meetings, Cluster Meetings, Waste 2002 Conference and Technical Tour, Buy Green Expo, and Bioenergy Seminar. I also toured and visited landfill and transfer stations throughout the Region including closed landfill sites. I would like to take this opportunity to acknowledge the contribution made by ex- directors Vivienne Davidson, Olly Jane and Bill Maher during their time with the Central Murray Regional Waste Management Group. I also wish to extend my sincere thanks and appreciation to my new Chairperson, the Directors, Member Council Officers and the Regional Education Officer of the Central Murray Regional Waste Management Group for their on- going support and assistance. Looking ahead to 2003/2004 will see the Group revisit its Regional Waste Management Plan as part of the next stage in meeting the statewide diversion targets. I am confident that with the continued support and commitment from Member Councils and staff 2003/2004 will be another successful, if not challenging year.

Karen Fazzani Executive Officer Central Murray Regional Waste Management Group

Page 6 Annual Report 2002/2003

Regional Education Officer (REO) Report

The past 12 months have been extremely busy on the education front, due largely to our new mobile waste and litter education trailer which has been an overwhelming success participating in nine events and visiting 19 schools since its launch in August 2002.

A new Regional Education Plan for the period July 2002 to June 2005 has also been adopted by the Central Murray Regional Waste Management Group, with the first 12 month Action Plan completed.

This new Plan continued to recognise the nine key areas identified in the original Regional Education Plan, with the priorities identified as Community Information, Waste Wise Businesses, Waste Wise Schools, and Litter Prevention. Community Information The REO continued to produced regular fortnightly newspaper columns on different facets of the Waste Wise program for inclusion in The Buloke Times and Guardian newspapers. In addition, 11 media releases were issued during the year promoting Waste Wise messages and/or activities.

The Group’s new Mobile Waste and Litter Education Trailer was officially launched by former Environment Minister, Sherryl Garbutt (attended by more than 100 people), and was utilised at nine events within the region to promote the Waste Wise message.

This included the Barham Show, Donald Show, Kerang Show, Wycheproof Show, Croc Fest (Youth Festival – Swan Hill), North Central Landcare Festival, Swan Hill-Murray Downs Field Days, Community Green Waste Day, and the Robinvale Community Mulcher Launch. Waste Wise Businesses Alcheringa Aged Care Hostel received Waste Wise accreditation as a result of their involvement in the Group’s Waste Wise Health Care Sector program, while Swan Hill Hospital also undertook a significant waste audit which resulted in additional measures to reduce and recycle waste materials.

A workshop was held for tourism businesses across the region in March, which attracted six tourism operators, and interest from an additional 13.

As a result the Barham Caravan and Tourist Park has now achieved accreditation, with three other operators implementing significant waste reduction and recycling initiatives. Waste Wise Schools A total of 22 schools (and one pre-school) participated in the Waste Wise Schools program during 2002/2003, many receiving a visit from the Central Murray mobile Waste and Litter Education Trailer, others undertaking excursions to waste management facilities, and most incorporating the Waste Wise program into their school operations and/or curriculum. Page 7 Annual Report 2002/2003 Regional Education Officers Report (continued..,)

Litter Prevention Litter Prevention Taskforces undertook litter reduction projects at Lake Boga, Sea Lake, and Bridgewater during the 2002/2003 financial year.

In addition, the Swan Hill Litter Prevention Taskforce received a grant for $5000 to undertake a cigarette butt project. Council Waste and Litter Education Programs All five Central Murray member Councils developed and implemented an Action Plan for the 2002/2003 financial year, resulting in some excellent waste and litter outcomes including an environmental theatre tour within Loddon Shire, and stronger involvement in the EcoBuy program. Waste Wise Residents A comprehensive Waste Wise Directory was produced and distributed to all households across the Central Murray region during 2002/2003 (20,000 copies).

In addition, a fridge magnet was developed (5,000) advising residents what materials can/can’t be recycled to try and reduce contamination levels in kerbside recycling collections. Community/Special Interest Groups Nine community groups in the Central Murray region completed projects funded as part of EcoRecycle Victoria’s community participation grants program. These were the 1st Donald Scout Club, Charlton Lions Club, Cohuna Apex Club, East Wimmera Health Service, Golden Rivers Tourism, Kerang Lions Club, Murray Mallee Organic Group Inc, Quambatook Community Development Committee, and the Robinvale-Euston Rotary Club.

In addition, the Barham community undertook a calico bag project to reduce the number of plastic shopping bags used within their local community. Waste Wise Events Seven events in the Central Murray region incorporated public place recycling during the 2002/2003 financial year. These were the Gold Rush Sled Dog Races, Golden Rivers Food and Produce Festival, John Farnham Concert (Cohuna), Kerang Show, Redgum Festival (), Swan Hill Wine Show, and the Swan Hill-Murray Downs Field Days.

In addition, swimming pools across Gannawarra Shire used recycling bins during the 2002/2003 pool season for the first time. Communications Newsletters were produced and distributed to key stakeholders in August, December and April featuring news and information about the Group’s activities.

In addition, the Group continued to develop its website – www.cmrmwg.com.au - which contains information about its’ activities and ways that businesses, community groups, schools and residents within region can be Waste Wise. Julie Slater Regional Eduation Officer Central Murray Regional Waste Management Group Page 8 Annual Report 2002/2003 COMPLIANCE INDEX

The Annual Report for the Central Murray Regional Waste Management Group is prepared in accordance with the Financial Management Act 1994 and the Directions of the Minister for Finance. This index facilitates identification of the Group’s compliance with the Directions of the Minister for Finance by listing references to disclosure in this financial report.

Clause Disclosure Page Report of Operations Charter & purpose 9.1.3 (i) (a) Manner of establishment and Relevant Minister 10 9.1.3 (i) (b) Objectives, functions, powers and duties 10 9.1.3 (i) (c) Services provided and persons or sections of community served 12 Management & structure 9.1.3 (i) (d) (i) Names of governing board members and Executive Officer 12 9.1.3 (i) (d) (iii) Chart setting out organisational structure 14 9.1.3 (i) (e) Workforce data and application of merit & equity principles 14 9.1.3 (i) (f) Application and operation of FOI Act 1982 14 Financial and other information 9.1.3 (ii) (a) Summary of financial results with previous four year comparatives 15 9.1.3 (ii) (c) Operational & budgetary objectives for the year and performance against those objectives 10 9.1.3 (ii) (e) Events subsequent to balance date 15/23 9.1.3 (ii) (g) Consultancies < $100,000 - Number and total cost of consulting engagements 15 9.1.3 (ii) (h) Extent of compliance with Building Act 1993 15 9.1.3 (ii) (i) Statement that information listed in Part 9.1.3 (iv) is available on request 15 9.1.3 (ii) (j) Compliance Index 9 9.1.3 (ii) (k) Statement on implementation and compliance with National Competition Policy 15 9.8.2 (i) A statement of Occupational Health and Safety (OHS) matters 15

Financial Statements Preparation 9.2.2 (ii) (a) Statement of preparation on an accrual basis 19

9.2.2 (ii) (b) Statement of compliance with Australian Accounting Standards and associated pronouncements 19

9.2.2 (ii) (c) Statement of compliance with accounting policies issued by the Minister for Finance 19

Statement of financial operations 9.2.2 (i) (a) A statement of financial operations for the year 16 9.2.3 (ii) (a) Operating revenue by class 16 9.2.3 (ii) (e) Depreciation 19 9.2.3 (ii) (f) Bad and doubtful debts 19 9.2.3 (ii) (i) Auditor-General’s fees 23 Statement of financial position 9.2.2 (i) (b) A statement of financial position for the year 17 Assets 9.2.3 (iii) (a) (i) Cash at bank or in hand 21 9.2.3 (iii) (a) (iii) Receivables, including trade debtors, loans and other debtors 21 9.2.3 (iii) (a) (iv) Other assets, including prepayments 17 9.2.3 (iii) (a) (vi) Property, plant & equipment 17 Liabilities 9.2.3 (iii) (b) (iii) Trade and other creditors 22 9.2.3 (iii) (b) (v) Provisions, including employee benefits 22 Equity 9.2.3 (iii) (d) Reserves (Retained surplus) 17 Statement of cash flows 9.2.2 (i) (c) A statement of cash flows for the year 18 Notes to the financial statements 9.2.2 (iv) Notes to Financial Statements 19-25 9.2.3 (iv) (d) Government grants received or receivable and source 19-20 9.2.3 (iv) (e) Employee superannuation funds 20 9.4.2 Transactions with responsible persons and their related parties 20 9.7.2 Motor vehicle lease commitments 25

Page 9 Annual Report 2002/2003 REPORT OF OPERATIONS

Charter and Purpose The Central Murray Regional Waste Management Group was established pursuant to the Environment Protection Act 1970 and has the powers conferred by Section 50F of the Act. The Group is accountable to the Minister for Environment and Conservation, the Hon. Sherryl Garbutt M.P. (20/10/99 – 30/11/02). Minister for Environment, the Hon. John Thwaites M.P. (30/11/02 - 30/6/03) The objective of the Group is to facilitate and foster best practices in waste management in the region pursuant to its functions and powers under the Act. The functions of the Group are: (a) To plan for municipal waste management in the region (b) To coordinate the waste management activities of its Members (c) To promote, commission and undertake research into waste management; (d) To advise the Members on best practices in municipal waste management; (e) To promote improved waste management technologies; (f) To promote and coordinate relevant community education in the region; (g) To mediate disputes between the Members. (h) To do anything that is necessary or convenient to enable the Group to perform its functions.

Our operational objectives and performance against those objectives are summarised below:

Objectives Results a) This year saw the implementation of twelve months of actions from the Regional Waste Management Plan. The Business Plan was updated and the Action Plan for 2003/2004 developed and adopted. These plans form the basis of actions for the next twelve months including performance targets for municipal waste reduction. Hard waste collections were held in Loddon and Buloke Shires. Waste Reduction and Recycling programs such as drumMUSTER were supported and promoted. Achievements included: Reduction in waste to landfill across the Region. Increase in recyclables collection within the Region. Increase in diversion of specialist waste streams to landfill (scrap metal/concrete,/drums) b) The Central Murray Regional waste Management Group is not currently involved in any direct operation of garbage or recycling contracts or any management of landfills in the region. The member councils directly control the garbage and recycling contracts as well as the landfills with the Group encouraging liaison and discussion between Councils, providing opportunities to share and rationalise services and promoting best practice waste management. The review of the Business Plan/Action Plan provided the opportunity for the member Councils to attend discussion workshops and to co-ordinate their activities in waste management through the workshops and Group meeting held throughout the year. Presentations were made to Member Councils.

Page 10 Annual Report 2002/2003

Two drumMUSTER Training Courses and one Landfill Gatekeepers Course was held for landfill operators within the Region. The Executive Officer and Regional Education Officer both undertook Professional Development Training. Data collection methods have improved across the Region. Landfill Rehabilitation Schedule was updated. Reviewed Landfill Closure Schedule. Updated Infrastructure Priority List. c) Numerous press releases and items published in local newspapers. Inspection of landfills and recycling facilities. Involved in major drumMUSTER collection in the region. Agricultural Waste Solutions Project (Grain Waste and Fruit Waste Forums held and met with representatives from EPS Industry) Ongoing monitoring of regional scrap metal collection Attendance at compactor demonstration, Waste 2002 Conference, Bioenergy Seminar, Buy Green Expo and Oil Recycling Forum Distributed Waste Wise Directory to all households in Central Murray Region. d) & e) Advising Group members of best practice in relation to waste management through: Information dissemination including: Monthly Regional Updates Quarterly Regional Newsletter Regional Group Meetings and Advisory Committee Meetings Numerous press releases and items published in local newspapers EcoRecycle Bulletins DrumMUSTER – farm chemical drum collections Household Chemical Collections EcoRecycle Best Practice Kerbside Recycling Collection Inspection of various landfills and transfer stations within the region Statewide Solid Industrial Waste Strategy: Towards Zero Waste f) Employment of Regional Education Officer Implementation of the Waste Wise Schools Program Adoption and implementation of Community Education Plan Adoption and implementation of Communication Plan Continued promotion and use of Mobile Waste and Litter Education Centre

Page 11 Annual Report 2002/2003 Central Murray Average Household Generation Rates Year Garbage Recyclables Total Waste Diversion rate kg per household kg per household Generation (%) 2000-2001 913.77 165.22 1078.97 15.3 2001-2002 600.44 219.6 820.04 26.77 2002-2003 607.2 229.48 836.68 27.43 2002-2003 607.2 271.7 878.90 30.9 * * Includes scrap metal

Note: figures include data for Buloke, Gannawarra, Loddon, Swan Hill Rural City Council and Wakool Shires

Next years projects include: Review and update Regional Waste Management Plan Continue to improve standardised quarterly data collection across the region. Utilisation of Mobile Waste and Litter Education Centre Behaviour Change Survey Plastic Bag Campaign Silage Wrap and Baling Twine Recycling Program Facilitate a farm chemical drum collection (drumMUSTER) Ensure Landfill Rehabilitation is carried out as per schedule Oversee completion of Infrastructure Projects Facilitate a regional waste oil collection Assist in household chemical collection Implement Infrastructure Projects

The communities served by the Group are: Buloke Shire Council Gannawarra Shire Council Loddon Shire Council Swan Hill Rural City Council Wakool Shire Council (NSW)

Management and Structure Directors of the Central Murray Regional Waste Management Group are: Cr Vivienne Davidson, Chairperson Buloke Shire Council (18/12/97 to 13/03/03) Cr Leo Tellefson, Deputy Chair Buloke Shire Council (9/4/03 to 30/06/03) Cr Olly Jane Gannawarra Shire Council (20/5/02 to 13/03/03) Cr Neville Goulding Gannawarra Shire Council (7/5/03 to 30/6/03) Cr Frank Maher, Chairperson Loddon Shire Council (18/12/97 to 30/6/03) Cr Bill Maher Swan Hill Rural City Council (1/7/00 to 13/3/03) Cr Suellen Tomamichel Swan Hill Rural City Council (28/4/03 to 30/06/03) Cr Noel Tyres Wakool Shire Council (18/12/97 to 30/6/03) Page 12 Annual Report 2002/2003 Members of the Advisory Committee of the Group are: Mr Martin Duke Buloke Shire Council Mr Steven Walsh/Brent Heitbaum Gannawarra Shire Council Mr David Fry Loddon Shire Council Mr John Sherrard Swan Hill Rural City Council Mr Geoff Barker Wakool Shire Council

Executive Officer of the Group is Ms Karen Fazzani Regional Education Officer of the Group is Ms Julie Slater

Management Committee Meetings The Central Murray Regional Waste Management Group constitution requires the Management Committee to meet at least once every 3 months. During 2002/2003 the Management Committee met as follows: Monday 19th August 2002 at Boort Monday 18th November 2002 at Birchip Monday 17th February 2003 at Barham Wednesday30th April 2003 Business Plan/Action Plan Workshop at Charlton Monday 19th May 2002 at Kerang As well as attending all of the above Management Committee Meetings, the Advisory Committee also met officially five times during the year to deal with specific issues referred from the Management Committee.

Meeting Attendance Attended Held Cr Vivienne Davidson/Cr Leo Tellefson 4 5 Warren Hemopo/Col Stephens/Martin Duke 7 9 Cr Olly Jane/Neville Goulding 5 5 Steven Walsh/Brent Heitbaum 8 9 Cr Frank Maher 4 5 Warren Hemopo/David Fry 6 9 Cr Bill Maher/Suellen Tomamichel 1 5 John Sherrard 7 9 Cr Noel Tyres 2 5 Geoff Barker 7 9

Landfill Levy The landfill levy is a Statewide levy paid by those disposing of material into various licensed landfills throughout the State. The distribution of the landfill levy to the Central Murray Regional Waste Management Group was $148,457.55 during 2002/2003. This funding has been used directly on funding the administration of the Group and particularly the full time Executive Officer and Regional Education Officer.

Page 13 Annual Report 2002/2003 The Central Murray Group applied these funds to: Executive Officer including on-costs $ 24,775 [balance funded by grant] Regional Education Officer including on-costs $ 33,003 [balance funded by grant] Auditing $ 3,000 Office Rental and expenses $ 10,390 Insurance $ 5,133 Vehicle Lease, Operations and Maintenance $ 22,552 Meeting Expenses $ 5,941 Other Administration $ 25,219 Education Program Costs $ 18,445 [balance funded by grant] $148,458

Organisational Structure

Central Murray Regional Waste Management Group

Management Committee Advisory Committee (Directors)

Executive Officer

Education Officer

Workforce The Central Murray Regional Waste Management Group employs two staff, an Executive Officer and Regional Education Officer.

Merit and Equity Victorian Public Service merit and equity principles are applied by the Central Murray Regional Waste Management Group in the appointment and management of staff in accordance with Government directives.

Freedom of Information There were no requests under the Freedom of Information Act 1982 during the reporting period.

Page 14 Annual Report 2002/2003 Financial and Other Information Financial Results Summary

Five Year Financial Summary

2003 2002 2001 2000 1999 $ $ $ $ $ Total Revenue 281,441 234,155 271,893 169,834 111,090 Total Expenditure 236,469 273,461 212,906 168,056 84,892 Net Cash Flow from Operations 44,972 (39,306) 58,987 1,778 26,198 Total Assets 265,365 230,641 208,099 142,240 134,686 Total Liabilities 63,041 77,699 15,851 8,979 3,203 Net Assets 202,324 152,942 192,248 133,261 131,483

Events subsequent to balance date There have been no events subsequent to the balance date of 30 June 2003, which may significantly effect operations in subsequent years.

Consultancies There were one consultant engaged for the year to 30 June 2003 for a total cost of $24,830 (2002 $43,960)

Building Act 1993 The Central Murray Regional Waste Management Group did not undertake any building works which fall within the provisions of the Building Act 1993, as its offices are leased.

Statement In accordance with Direction 9.1.3(iv) of the Financial Management Act 1994 a Statement that declaration of pecuniary interest, which include details of shares held, have been duly completed by relevant officers is available on request.

National Competition Policy The Central Murray Regional Waste Management Group adheres to the principles of the National Competition Policy.

Occupation Health and Safety No matters have arisen during the year and no Workcover claims have been lodged.

Whistleblowers Protection Act The Whistleblowers Protection Act 2001 came into effect on 1 January 2002. The Act is designed to protect people who disclose information about serious wrongdoing within the Victorian Public Sector and to provide a framework for the investigation of these matters.

The protected disclosure coordinator for the Department of Sustainability and Environment (DSE) acts as an agent for the Group to receive disclosures under the Act, and applies DSE procedures in managing disclosures.

Page 15 Annual Report 2002/2003

Financial Statements

Statement of Financial Performance For the year ended 30 June 2003

Notes 2003 2002 $ $ Revenue from Ordinary Activities Landfill Levy 148,458 72,068 Member Council Contribution 20,500 17,211 Other Revenue 2 112,483 144,876 281,441 234,155

Expenditure from Ordinary Activities Employee Expenses 119,645 135,523 Other Expenditure 3 106,163 135,625 Depreciation 6,251 2,313 232,059 273,461

SURPLUS/(DEFICIT) FOR THE YEAR 49,382 (39,306)

The above Statement of Financial Performance should be read in conjunction with the accompanying notes.

Page 16 Annual Report 2002/2003

Statement of Financial Position As at 30 June 2003

Notes 2003 2002 $ $ CURRENT ASSETS Cash Assets 4 165,212 139,684 Receivables 5 61,598 54,153 Prepayments 9,007 6,551 TOTAL CURRENT ASSETS 235,817 200,388

NON-CURRENT ASSETS Property, Plant and Equipment 6 29,548 30,253 TOTAL NON CURRENT ASSETS 29,548 30,253

TOTAL ASSETS 265,365 230,641

CURRENT LIABILITIES Payables 7 58,258 74,582 Provisions 8 4,783 3,117 TOTAL LIABILITIES 63,041 77,699

NET ASSETS 202,324 152,942

EQUITY Contributed Capital 10a 192,248 192,248 Accumulated Surplus/(Deficit) 10b 10,076 (39,306) TOTAL EQUITY 202,324 152,942

The above Statement of Financial Position should be read in conjunction with the accompanying notes.

Page 17 Annual Report 2002/2003

Statement of Cash Flows For the year ended 30 June 2003

Notes 2003 2002 $ $ CASHFLOWS FROM OPERATING ACTIVITIES Receipts from Operations (Inclusive of GST) 273,997 252,639 Payments to suppliers & employees (Inclusive of GST) (242,923) (215,970) NET CASH INFLOW FROM OPERATING 9 31,074 36,669 ACTIVITIES

CASHFLOWS FROM INVESTING ACTIVITIES Payments for Property Plant & Equipment (5,546) (27,618) NET CASH OUTFLOW FROM INVESTING (5,546) (27,618) ACTIVITIES

NET MOVEMENT IN CASH 25,528 9,051

Cash at beginning of the financial year 139,684 130,633

Cash at the end of the financial year 4 165,212 139,684

The above Statement of Cash Flows should be read in conjunction with the accompanying notes.

Page 18 Annual Report 2002/2003

Notes to the Financial Statements for the year ended 30th June 2003

Note 1: SUMMARY OF SIGNFICANT ACCOUNTING POLICIES

1.1 Establishment of Reporting Entity The Central Murray Regional Waste Management Group (the ‘Group’) was established on 18 December 1997.

1.2 Basis of Accounting The financial report has been prepared for distribution to Waste Management Group representatives, Environment Protection Authority, EcoRecycle Victoria and the Minister for Environment and Conservation. The financial statements are a general purpose financial report prepared in accordance with the requirements of the Financial Management Act 1994, the directions of the Minister for Finance under this Act, applicable Australian Accounting Standards and other mandatory professional reporting requirements. The financial statements have been prepared on an accrual basis, and under the historical cost convention.

1.3 Property, Plant and Equipment Non-current assets are included at cost and are depreciated on a straight-line basis over their estimated useful life to the Group.

1.4 Income Recognition Landfill Levy Revenue from the Landfill Levy is accrued as it is earned and brought to account in the period to which it relates.

The amount of $148,457.55 recognised for the 2002/2003 financial year is based on actual receipts during the year and estimates obtained from the Environment Protection Authority in July 2003.

Grants Grants are recognised on receipt unless there is a clear agreement regarding the amount that will be received, in which case the amount of the grant receivable in respect of the current financial year is brought to account on an accrual basis.

Members Contribution Member Councils contribution reflects amounts received from the member Councils by the Group in the period to which it relates.

1.5 Leases Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred.

1.6 Bad and Doubtful Debts A provision is made for any doubtful debts, based on a review of all outstanding receivables at balance date. Bad debts are written off in the period in which they are identified.

1.7 Cash For the purposes of the statement of cash flows, cash includes cash at bank and short term investments.

1.8 Goods and Services Tax Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense.

Receivables and payables are stated with the amount of GST included.

The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the statement of financial position. Page 19 Annual Report 2002/2003 1.9 Employee Benefits Wages and Salaries including Annual Leave Liabilities for wages and salaries and annual leave are recognised, and are measured as the amount unpaid at the reporting date at current pay rates in respect of employee services up to that date.

Sick Leave No provision has been made for sick leave as it is non-vesting.

Long Service Leave The Central Murray Regional Waste Management Group has only been in existence since 1997, no employee has accrued entitlement to Long Service Leave.

Superannuation The Central Murray Regional Waste Management Group contributed in respect of its employees to the Local Authorities Superannuation Fund, LASPLAN, in Victoria. In accordance with statutory requirements, the Central Murray Regional Waste Management Group contributed 9% of salaries for the year. The amount of superannuation paid to the scheme during the year was $9,584. There were no outstanding contributions at the end of the year.

1.10 Change in Accounting Policy Contributed Capital For the reporting period ended 30 June 2002 the Group deemed all its accumulated surplus of $192,248 as the opening balance for contributed capital. This accounting treatment was required to comply with Urgent Issues Group Abstract 38 Contributions by Owners Made to Wholly-Owned Public Sector Entities and Accounting and Financial Bulletin No: 39 Accounting for Contributed Capital and No: 40 Establishment of Opening Balances and Formal Designation for Contributed Capital. The change in accounting policy resulted in the recognition, in the statement of financial position, as at 1 July 2001 of an opening balance of $192,248 as contributed capital (30 June 2001 Nil) and Nil amount for accumulated surplus (30 June 2002 $192,248).

2003 2002 $ $ Note 2: OTHER REVENUE EcoRecycle Victoria – Education Officer 22,917 36,667 drumMuster 4,843 19,842 EcoRecycle Victoria Grant 1,541 Landfill Rehabilitation Grant 19,110 Executive Officer Support 38,950 39,211 Waste Wise Industry Program 23,500 Gatekeepers Training Course/Defensive Car/Catering 2,756 199 Reimbursement Leading on Litter Grant 5,000 Community Participation Grants 6,500 Health Sector Workshop 1,463 Public Place Recycling Program 1,000 Mobile Education Centre Sponsorship 2,330 16,245 Worm Farms 1,431 504 Interest 4,642 4,135 Joint Projects (Labels, tourism, magnets) 3,418 Penalty Project Funding 1,155 112,483 144,876

Page 20 Annual Report 2002/2003

2003 2002 $ $ Note 3: OTHER EXPENSES FROM ORDINARY ACTIVITIES Auditors Remuneration 3,000 2,900 Office Expenses 44,812 14,903 Education Action Plan 11,356 16,653 Communication Plan 2,528 1,794 drumMUSTER 4,888 20,658 Community and Council Grants 65,353 Gatekeepers Training Course 1,800 Waste Wise Industry Project 24,830 9,938 Mobile Education Centre 5,535 1,567 Worm Farms 1,132 Organisational Status Audit 1,232 Sundry Expenses 5,050 1,859 106,163 135,625

2003 2002 $ $ Note 4: CASH ASSETS Cash at Bank 165,212 139,684 165,212 139,684

2003 2002 $ $ Note 5: RECEIVABLES Environment Protection Authority – Landfill Levy 49,055 33,757 GST Receivable 3,144 4,816 EcoRecycle Victoria – Waste Wide Industry Program 6,000 Swan Hill Rural City Council – Penalty Project Funding 1,155 Wakool Shire Council – Fridge Magnets 469 Gannawarra Shire Council – Fridge Magnets 469 Gannawarra Shire Council – Worm Farms 330 Interest on Short Term Investment 646 610 DrumMUSTER – Bronze Sponsorship 1,100 DrumMUSTER – Security Compound 5,950 EcoRecycle Victoria – Community Participation Grant 1,650 EcoRecycle Victoria – Mobile Trailer Grant 330 6,270 61,598 54,153

2003 2002 $ $ Note 6: PROPERTY PLANT & EQUIPMENT Plant and Equipment 38,708 33,163 Less Accumulated Depreciation (9,160) (2,910) 29,548 30,253 (b) Movements during the reporting year

Opening WDV Additions Disposals Depreciation Closing WDV Plant & Equip. 30,253 5,546 - 6,251 29,548

Page 21 Annual Report 2002/2003

2003 2002 $ $ Note 7: PAYABLES Education Officer 115 Distribution of Grant for Landfill Rehabilitation 32,354 34,955 Accruals – Audit Fee 3,300 3,190 Executive Officer and REO Wages 2,502 2,003 Buloke Shire Council – Rent and Photocopying 36 272 EO Travel and Phone Reimbursement 41 42 Keatings Removals – Freight 40 Charlton Post Office – Postage 31 AL & NF Stringer – Security Compounds 2,975 The Paper Shop – Newspapers 23 The Loddon Times – Advert 33 Highpoint Design – Trailer materials 52 Testra – Phone/Fax 195 279 Cohuna Farmers Weekly – Advert 32 ANZ Corporate Card – Expenditure 1,080 JLT – Workers Compensation Insurance 830 881 James Print – Waste Wise Directory 7,300 Litter Prevention Task Force Projects 2,282 8,800 Community Participation Grants 486 5,750 GST Liability (904) PAYG Withholding Payable 6,660 6,144 PAYG Vehicle Contribution 1,266 585 EPA Organisational Status Audit 1,232 Greenchip Pty Ltd – Final Progress Payment 4,898 Gannawarra Shire Council – Public Liability Insurance 3,080 58,258 74,582

2003 2002 $ $ Note 8: PROVISIONS Employee Benefits – Annual Leave 4,783 3,117 4,783 3,117

2003 2002 $ $ Note 9: RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO OPERATING SURPLUS Reconciliation of the operating result to the net cashflows from operations Operating result 49,382 (39,306) Add Depreciation 6,251 2,313 Changes in assets and liabilities Receivables (7,445) 16,589 Prepayments (2,456) (4,775) Employee Benefits 1,665 1,357 Creditors and Accruals (16,323) 60,491 Net cashflow from operating activities 31,074 36,669

Page 22 Annual Report 2002/2003

2003 2002 $ $ Note 10: CONTRIBUTED CAPITAL AND ACCUMULATED SURPLUS/(DEFICIT)

Contributed Capital Balance at the beginning of the financial the year 192,248 - Recognition of opening balance on adoption of UIG 38/AFRB 39 and 40. - 192,248 Balance at the end of the financial year 192,248 192,248

Accumulated Surplus/(Deficit) Balance at the beginning of the year (39,306) 192,248 Recognition of opening balance on adoption of UIG 38/AFRB 39 and 40 - (192,248) Net Surplus/(Deficit) 49,382 (39,306) Balance at the end of the financial year 10,076 (39,306)

Note 11: SUBSEQUENT EVENTS There have been no significant events which have occurred subsequent to 30 June 2003.

Note 12: RESPONSIBLE PERSONS DISCLOSURE The names of persons who were responsible persons at any time during the reporting period are:

Responsible Minister The Honourable Sherryl Garbutt (1/07/02 to 30/11/02) Minister for Environment and Conservation The Honourable John Thwaites ( 1/12/02 to 30/6/03)

Governing Board Cr V. Davidson - Buloke Shire Council (1/07/99 to 13/03/03) Council Cr L.J. Tellefson - Buloke Shire Council (9/04/03 to 30/06/03) Council Cr O. Jane - Gannawarra Shire Council (20/05/02 to 13/03/03) Council Cr N. Goulding – Gannawarra Shire Council (7/05/03 to 30/06/03) Council Cr F. Maher - Loddon Shire Council (1/07/99 to 30/06/03) Council Cr W. Maher - Swan Hill Rural City Council (31/05/00 to 13/03/03) Council Cr S. Tomamichel – Swan Hill Rural City Council (28/04/03 to 30/06/03) Council Cr N. Tyers – Wakool Shire Council (18/12/97 to 30/06/03) Council

Accountable Officer Ms Karen Fazzani (1/07/01 to 30/06/03) Executive Officer

Note 13: REMUNERATION OF RESPONSIBLE PERSONS The number of responsible persons are listed below in the following relevant income bands:

2003 2002 Remuneration Range Number of responsible persons $0 8 5 The remuneration of the Accountable Officer who is not a member of the governing board is reported under Executive Officer Remuneration. The remuneration of the Minister is disclosed in the Financial Statements of the Department of Premier and Cabinet.

Page 23 Annual Report 2002/2003 Note 14: REMUNERATION OF EXECUTIVE OFFICERS There were no Executive Officers receiving in excess of $100,000.

2003 2002 $ $ Note 15: RELATED PARTY TRANSACTIONS Expense Transactions The aggregate amounts of the following expense transactions between the entity and related parties connected to responsible persons include:

Office Rent – Buloke Shire Council (1/07/02 to 30/06/03) 1,536 1,440 Public Liability Insurance – Gannawarra Shire Council 2,237 2,000

Note 16: FINANCIAL INSTRUMENTS

(a) Terms, conditions and accounting policies

Financial Statement Accounting Policy Terms & Conditions Instrument of Financial Position i) Financial Assets Receivables Note 5 Receivables are carried at nominal Credit terms for short term amounts due less any provision for receivables are 30 to 60 doubtful debts. A provision for days. doubtful debts is recognised when collection of the full nominal amount is no longer probable. ii) Financial Liabilities Payables Note 7 Liabilities are recognised for Trade liabilities are amounts to be paid in the future normally settled on 30 day for goods and services received, term. whether or not billed to the Group.

(b) Net fair values

Financial Instrument Total Carrying Amount as per Aggregate net fair value Statement of Financial Position 30 June 2003 30 June 2002 30 June 2003 30 June 2002 $ $ $ $ i) Financial Assets Cash 165,212 139,684 165,212 139,684

Receivables 61,598 54,153 61,598 54,153 Total Financial Assets 226,810 193,837 226,810 193,837 ii) Financial Liabilities Payables 58,258 74,582 58,258 74,582

Total Financial Liabilities 58,258 74,582 58,258 74,582 iii) The following methods and assumptions are used to determine the net fair value of financial assets and liabilities.

Cash: The carrying amount approximates fair value because of the short term to maturity.

Short term receivables and creditors: The carrying amount approximates fair value. Page 24 Annual Report 2002/2003

(c) Interest rate risk

Financial Floating Interest Fixed Non-interest Total Carrying Weighted Instruments Rate interest rate Bearing amount as per Average maturing in: Statement of Effective Over 1 to 5 Financial Position interest rate years 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 $ $ $ $ $ $ $ $ $ $ i) Financial Assets Cash 110,000 100,000 55,212 39,684 165,212 139,684 4.56% 4.64% Receivables 61,598 54,153 61,598 54,153 N/A N/A Total 110,000 100,000 116,810 93,837 226,810 193,837 ii) Financial Liabilities Payables 58,258 58,258 74,582 N/A N/A 74,582 Total 58,258 58,258 74,582 74,582

(d) Credit Risk

The Central Murray Regional Waste Management Group’s exposure to credit risk at balance date in relation to each financial asset is the carrying amount of those assets as indicated in the Statement of Financial Position.

Concentrations of credit risk on receivables – other debtors arise in the following industries:

Industry Credit risk exposure % 2002/2003 2001/2002 Government 100 61,598 54,153

2003 2002 $ $ Note 17: COMMITTMENTS

a) Non-cancellable operating lease commitments Payments are: Within one year 11,496 8,431 Greater than one year - 6,323 11,496 14,754

a) Commitments for expenditure contracted for as at 30th June 2003 but not recognised as a liability payable: Within one year - 25,062 - 25,062 The above commitment relates to Stage 2 of the Agricultural Waste Wise Industry Program

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