2014/15 ANNUAL REPORT In accordance with the Financial Management Act 1994, we are pleased to present the Mount Hotham Resort Management Board’s Annual Report for the year ending 31st October 2015.
Deborah Spring | Chairperson Mount Hotham Resort Management Board 13th January 2016
Jon Hutchins | Chief Executive Officer Mount Hotham Resort Management Board 13th January 2016
2 MT HOTHAM RESORT MANAGEMENT BOARD 2014-2015 ANNUAL REPORT
INTRODUCTION 4 OUR YEAR ROUND RESORT 37 Chair’s report 4 Visitor services 37 Chief Executive Officer’s report 5 Resort entry and parking 37 Board members 6 Marketing and customer services 37 Website 38 ABOUT THE RESORT 9 Communications and publications 38 Our history 9 Events 38 Our vision and mission 10 Regional marketing 39 Our strategy 10 Strategic partners 39 Nature and scope of activities 11 Walking trails 39 Financial summary 12 Key performance indicators 14 OUR ENVIRONMENT ON THE RIDGE 40 Sustainability 40 OUR CUSTOMER AND Threatened species and COMMUNITY FOCUS 18 biodiversity conservation 41 Our human resources and Environmental programs 41 organisational development 18 Environmental education 41 Organisational structure 19 Victorian Alps Nursery 42 Ski patrol and skier safety 20 Our strategic partnerships 42 Snow play 22 Cross-country skiing 22 OUR CORPORATE GOVERNANCE 43 Transit operations 23 Information and communication systems 43 Emergency management 43 OUR SERVICES 24 Community areas 44 Utilities 24 Risk management 44 Potable water 24 Statutory reporting 45 Wastewater 25 Solid waste management 26 INDEPENDENT AUDITOR’S REPORT 47 Gas operations 27 Asset management 28 FINANCIAL STATEMENTS 49 Geotechnical program 28 Capital works 29 DISCLOSURE INDEX 82 Fleet maintenance 30
OUR DEVELOPER SERVICES 31 Master Plan 31 Growth Development Plan 31 Native vegetation 32 Bushfire management 32 Leasing 33 Building services 33 Property sales 34 Statutory planning 35 Environmental health services 36
ANNUAL REPORT 2014/15 3 INTRODUCTION
CHAIR’S REPORT
It has been an exciting year for us with welcoming These include: ENVIRONMENTAL MANAGEMENT PLAN Jon Hutchins as our new CEO in January 2015. • Australia’s only Pygmy Possum Love Tunnel, Late this year we adopted our new Environmental It was sad to say goodbye to our long-standing • The Swindlers Valley pipeline project to protect Management Plan, which addresses six key issues: CEO Jim Atteridge, and we wish him well with his the resort’s major water course, and new endeavours. 1. Landfill operations – impacts on surface • The wastewater treatment project, which and groundwater, Jon has been involved in the Victorian Alpine provides Class A water for the snowmaking 2. Diesel fuel consumption, Region since 1998 with roles at Mt Buller, Mt system. Stirling and as Mt Hotham Resort Management 3. Climate change impacts, Board’s former Chief Financial Officer (2008- DEVELOPMENT GROWTH PLAN 4. Greenhouse gas emissions, 2013). Jon hit the ground running with his 5. Biodiversity conservation and threatened The Mt Hotham Development Growth Plan (Plan) approach to engage stakeholders and work species, and together to build the Mt Hotham brand. sets out a strategy for the physical (property) development of the Mt Hotham Resort. This 6. Cultural heritage. Winter season 2015 saw snowmaking put to good development is focussed upon the five-year A calendar of activities has been set to begin use, allowing there to be three lifts operating period commencing mid-2015. The document addressing these issues. over opening weekend. Natural snow fell in early builds upon the strategic planning, master July, kicking off what turned out to be a season planning and market research work previously MASTER PLAN to remember. Temperatures stayed low through undertaken by the Mt Hotham Resort Management August and September keeping snow on the Board (MHRMB) and several other Mt Hotham The purpose of the Master Plan is to facilitate ground until the very end of the season. stakeholders. smoother development approval but also to align the community with the strategic direction of the OUR UNIQUE MOUNTAIN It communicates priority property development resort. We believe the best way to develop the related activities to be undertaken to contribute resort is through alignment of all our stakeholders Mt Hotham is internationally recognised as one of to the success of all resort and Mt Hotham region around a common, collective purpose. the top 25 skiing mountains in the world and one stakeholders. of the top five cycling hill climbs in the world. The Our stakeholders include the Mt Hotham following attributes make Mt Hotham unique: Property development is one of many factors that community, our Indigenous owners the will contribute to the sustainable success of Mt • It is the highest alpine village in Australia, Gunaikurnai and the adjoining communities along Hotham. It is prompted by and responds to a wide the Great Alpine Road including Dinner Plain, • It has spectacular 360 degree views, range of interrelated factors including visitation Harrietville and Bright (Alpine Shire), Omeo, Swifts • It has the most challenging terrain in Australia, and occupancy levels, branding, marketing, Creek and Ensay (East Gippsland Shire), and • Its topography, with the Great Dividing Range, cultural dynamics, physical constraints, product adjoining land managers. and offering, existing conditions and competing forces. The Plan references a mix of non-property The Master Plan was presented to the Minister in • The Great Alpine Road is one of only two Great activities that we will undertake in order to September 2015. roads in Australia. stimulate future property, infrastructure and built- While the remote and high altitude location may form requirements. have impeded development in the past, there have been tremendous innovations in the past 15 years Deborah Spring | Chairperson to overcome these challenges while ensuring the Mount Hotham Resort Management Board marvellous natural environment is retained.
4 MT HOTHAM RESORT MANAGEMENT BOARD CEO’S REPORT
It has been a privilege to spend this year as the This approach was demonstrated in We achieved best practise levels for our financial incoming Chief Executive Officer with such support several of the key achievements for the year, audit and compliance, gas safety, Environment from Mt Hotham stakeholders and the resort which include: Protection Authority (EPA), Department of Health management staff and Board members. • Completing stage 2 of the Swindlers Valley and Human Services (DHHS), Emergency and Bushfire Management Plans, and a Victorian A large part of my career has involved working in the project; ahead of schedule and below budget, Auditor-General’s Office (VAGO) audit found mutual/co-operative financial sector, where smaller • Opening the Brabralung Trail with the MHRMB had a healthy operating surplus and was industry participants can compete successfully Gunaikurnai, our Indigenous land owners, in a strong financial position. against much larger players when they are prepared Parks Victoria and Dinner Plain/Alpine Shire, to co-operate and work together. We are in a similar • Establishing Australia’s first roundshot camera, Our 2016 budget has set annual service charges at a position at Mt Hotham where we compete not only minimal two per cent increase and maintained resort • Installing new entrance signage, bus stop on the mountain but also against other Australian pricing at similar rates to 2015 where possible. designs and sealing our road verges, mountains, island resorts, football, overseas snow Upcoming exciting challenges and opportunities: and mountain experiences and the beach in summer. • Reducing confusions and delays on the Great Alpine Road during extreme winter periods, • The construction of major facilities and car I have been overwhelmed by the enthusiasm • Accommodating record numbers of vehicles parks at the Asgaard and Tantani sites, and co-operation we have received from the Mt within the resort on two weekends of the • A $4.4 million investment by the Mt Hotham Hotham community and surrounds since I started season, Skiing Company in snowmaking for the in January 2015. Mt Hotham Resort Management Summit, Imagine and Canyon areas of Board (MHRMB) has laid the foundation for • Recording average visitation levels despite no Heavenly Valley, this co-operation in recent times with forums natural snowfalls during the peak July school to develop the resort’s Strategic Management holiday period, • The redesign of the Hotham Central and Plan and Master Plan. The Consultative Forum • Establishing the foundation for the Hotham Corral car park areas for safer pedestrian and has provided invaluable feedback and input Auto Corsa event despite not being able to hold vehicle flows, on providing more effective Board services for the event in 2015, • Opportunities for re-opening the Hotham leaseholders, commercial operators, surrounding • Continuing our native revegetation program in Airport for commercial flights from Adelaide, communities and most importantly guests. the resort with a record 60,000 native plants Melbourne and Sydney, We had record numbers attend our stakeholder produced by our Alpine Nursery, • Further design and consultation on the Falls forum at the MCG in May 2015, and our marketing • Trialling new hard waste collection and to Hotham Alpine Crossing as one of four meetings with commercial operators in August processing including organic waste recycling, iconic walks to attract summer trekkers from domestic and international markets, led to the “Awesome Conditions Apply” promotion • Upgrading car parking facilities with lighting at on key billboards in Melbourne. Other successful Whitey’s car park, and • Working with adjoining landholders on the communications this year included our Destination Great Alpine Road to deliver further guest • Successfully working with Mt Hotham Skiing Action Plan workshops and a market research attractions and experiences, Company to secure a strategic partnership presentation we held in conjunction with Tourism with Audi Australia including the launch of the • Installing disabled access on the Big Spur and North East. new Q7 Quattro alpine driving experience. Dargo Loop tracks and trails. MHRMB management and staff have also I am also pleased to report that we had a low I look forward to seeing these opportunities welcomed and supported me, and shown their accident rate of 1.77 per thousand skier days, and develop with the new Board in 2016. I would like enthusiasm for providing the best possible service that our ski patrol and medical centre performed to thank the outgoing Resort Management Board and experience for our guests. three miraculous lifesaving operations. for their support and confidence in our Executive Management team and staff as we continue Together, our entire workforce resolved that • The completion of three new developments to work with stakeholders to provide the best what drives us is: To Share The Amazing Alpine at Koomerang, The General Store/Mountain outcomes for Mt Hotham. Experience at Mt Hotham. Dreaming Apartments and Lawlers car park, As a management team we will: • A new trail head for the Alpine Crossing • Lead by example in a respectful and between Mt Hotham and Falls Creek, approachable way, • New shared trails designation and interpretive • Take ownership in what we do, and information on our tracks and trails, and • Be outward looking and innovative in our • A fivefold participation increase in the Disabled Jon Hutchins | Chief Executive Officer approach. Wintersports Association program. Mount Hotham Resort Management Board
ANNUAL REPORT 2014/15 5 INTRODUCTION
BOARD MEMBERS Our Board representatives come from a diverse range of backgrounds and industry experience.
DEBORAH SPRING | CHAIRPERSON
Deb has had broad experience as both a director and as a senior executive in the private, public and semi-government sectors across a diverse range of industries. These include energy, manufacturing, recycling, rail, technology, transport and logistics. Her board positions include the Alpine Resorts Co-ordinating Council, Federation University Australia and V/Line Corporation. Deb was appointed to the Board on 28th October 2011 and became Chairperson in 2013.
Previously, Deb was Chair of Banksia Environmental Foundation and Deputy Chair of Special Olympics – Victoria. Deb has a Master of Science in Mechanical Engineering and a Master in Business Administration (MBA) from Harvard Business School. Deb is a licensed professional engineer and a Graduate Member of the Australian Institute of Company Directors. She has been skiing at Hotham for over 25 years and has watched her three daughters advance from Mighty Mites to Mary’s Slide.
RON MASON | DEPUTY CHAIR
Ron is an experienced Urban and Environmental planner having practiced for nearly 40 years in government and private organisations in Victoria including the past 18 years as a planning consultant. Ron was the principal planner at Aurecon (Melbourne), leading one of the largest planning teams in Victoria until he retired in December 2009.
Since leaving Aurecon he has continued as a planning consultant in his own planning practice. As a planner, Ron has been involved in major tourist, environmental and strategic planning projects throughout Victoria and Tasmania. Ron has also been a member of several government Boards and Committees during his career in planning. He has been skiing at Mt Hotham for the past 30 years and is a Committee Member of Asgaard Alpine Club. Ron is also Chairperson of the Audit and Risk Committee, Sub to Audit and Risk Sub Committee and Chairperson of the Mount Hotham Master Plan Working Group. Ron was appointed to the Board on 30th April 2010 and became Deputy Chair in 2013.
NICOLE FEENEY
Nicole has been a member of the Board since 13th June 2007 and was Chairperson from 2010 to 2013. Between 2010 and 2013 she was also a member of the Alpine Resorts Co-ordinating Council. Nicole is a commercial disputes and construction lawyer at Lander & Rogers; is the immediate past Chair of the Litigation Lawyers Section of the Law Institute of Victoria (LIV) and represents the LIV on the Supreme Court Rules Committee and the County Court Building Cases Users Group.
Her board experience includes having been a director of UFS Dispensaries Ltd for six years, a not for profit company which owns and operates a number of pharmacies and associated businesses in and around Ballarat in Western Victoria. Nicole is a Graduate Member of the AICD. In 2001 Nicole was introduced to skiing and Mt Hotham. She loved the experience so much she became a member of the Anton Huette lodge in 2005 and later purchased an apartment at Hotham.
TIM PIPER
Tim is the Director for Victoria for the Australian Industry Group, which is one of the most influential industry associations in the country. He is a lawyer and former journalist and holds a MBA. Tim is also Chairman of the Industry Capability Network and the Manufacturing Skills and Training Taskforce. He also sits on a number of boards including the Victorian Leadership Group, the Victorian Manufacturing Council and the Industry Skills Consultative Council. Tim was appointed to the Board on 28th April 2001.
6 MT HOTHAM RESORT MANAGEMENT BOARD PETER HAGENAUER
Peter is a partner at Digital Frontier Partners, a specialist advice firm that helps clients to understand the capabilities, resources and organisational structure needed to deliver their products and services in the digital economy. He has over 25 years of experience in the Banking and Finance Sector, including more than ten years building and managing digital distribution channels supporting ANZ’s Global Markets businesses.
Peter has extensive experience in strategy development, programme management, project governance and sales management. He is a member of Asgaard Ski Club Mt Hotham, and has been skiing at Mt Hotham for the past six years. Peter was appointed to the Board on 4th June 2013 and also chairs the Mt Hotham Consultative Forum Committee.
DAVID ANSTEE
David has been skiing Mt Hotham for over 25 years, and the first time his children tasted snow was on the skier’s mountain. Currently serving as the Commercial Director of GreenSync and as a lecturer in post-graduate entrepreneurial studies at the University of Adelaide, David holds an MBA from London Business School and a bachelor of commerce from Melbourne.
He has a diverse career which includes investment banking, assistant cameraman for National Geographic in the Arctic, innovation manager and entrepreneur. When not skiing, David enjoys rock climbing, diving, farming and flying. David was appointed to the Board on July 7th, 2014.
STEPHEN CLEMENT
Stephen has broad experience in property and is a passionate skier. He is currently the Project General Manager at the Queensland Investment Corporation for the $575 million upgrade of the Eastland Shopping Centre and Ringwood Town Square. Prior to that he was Project Director for ING Real Estate for the mixed-use development at Docklands and was President of the Docklands Chamber of Commerce.
Stephen has worked in the property industry for 30 years and brings strong development and planning skills to the Board. He has a Graduate Diploma in Project Management, Bachelor of Structural Engineering and is a member of the Institute of Engineers Australia. Stephen was appointed on October 28th, 2014.
ANNUAL REPORT 2014/15 7 INTRODUCTION
AUDIT AND RISK SUB COMMITTEE ESTABLISHMENT OF BOARDS • To undertake research into alpine resort The Audit and Risk Sub Committee has Section 34 of the Alpine Resorts (Management) Act issues; responsibility for Internal and External Audit, 1997 established The Mount Hotham Alpine Resort • To contribute to and support the operation of Finances, Risk Management and monitoring Management Board. The inaugural Board officially the Council; the compliance with the Financial Management took over control of the Resort on April 30 1998. • To prepare and implement a Strategic Compliance Framework. The Board Members Prior to this, all Alpine Resorts were managed Management Plan for the resort; represented on this committee are Ron Mason collectively under the jurisdiction of the Alpine • To expend or apply revenue of the Board in (Chairperson), Stephen Clement and Peter Resorts Commission. accordance with a direction of the Minister Hagenauer. All Audit & Risk Sub Committee The current management structure comprises under section 36(1A); members are deemed independent under the an independent seven member skill-based Board Financial Management Act 1994. • To manage the Crown land in Mt Hotham by appointed by the Minister for Environment and acting as a Committee of Management under Climate Change and Water, that reports directly REMUNERATION SUB COMMITTEE the Crown Land (Reserves) Act 1978; to the Minister. The responsible Minister is the • To contribute, together with Tourism Victoria, The committee’s responsibility is to evaluate Hon Lisa Neville MP, Minister for Environment and established under the Tourism Victoria Act the remuneration of the CEO and oversight of Climate Change and Water. remuneration of staff within the resort. The 1992, and the Council, to the overall promotion current Remuneration Sub Committee Board of alpine resorts; FUNCTIONS OF THE BOARD AND representatives are Tim Piper (Chairperson), • To develop a tourism and marketing strategy CORPORATE GOVERNANCE Nicole Feeney, and Deb Spring. and to promote the resort; Section 38 of the Alpine Resorts (Management) Act • To provide services in the nature of: garbage MARKETING SUB COMMITTEE 1997 specifies the functions of the Board: disposal, water supply, gas, drainage, The Marketing Sub Committee was established in • To plan for the development, promotion, sewerage, electricity, roads, fire protection, September 2014 with its inaugural meeting held management and use, of each such alpine snowmaking, transport for the resort and in October 2014. Board Representatives are Peter resort in accordance with the object of the Act, to charge user pays contributions for the Hagenauer (Chairperson), Nicole Feeney, and • To develop and promote or facilitate the provision of those services; David Anstee. development or promotion by others of the use • To collect fees prescribed by the regulations of each such alpine resort in accordance with for the resort; CONSULTATIVE FORUM the object of the Act, • To attract investment for the improvement of Mt Hotham Consultative Forum was established • To manage each such alpine resort in the resort; and in July 2014. The Chair of the Forum is Peter accordance with the object of the Act; • To carry out any other function conferred on Hagenauer with community representatives from • To contribute to the development of the Alpine the Board by this or any other Act. Tourism North East (TNE), Mt Hotham Chamber Resorts Strategic Plan and other strategic of Commerce, Hotham Ski Association (HSA), Mt planning for alpine resorts as a whole; Hotham Skiing Company, and Alpine Shire.
MEETING ATTENDANCE *Attended as an observer.
Full Board Audit and Risk Remuneration Marketing Consultative Forum TOTAL MEETINGS HELD 10 6 3 6 3 Deborah Spring 10 - 3 1* Ron Mason 10 6 - - Nicole Feeney 9 - 3 6 Tim Piper 9 - 3 - 1* Peter Hagenauer 9 6 - 6 3 David Anstee 10 - - 6 Stephen Clement 9 6 - 1* 1*
8 MT HOTHAM RESORT MANAGEMENT BOARD ABOUT THE RESORT
OUR HISTORY
Mt Hotham Alpine Resort is set in a unique and Harrietville and Omeo from extreme natural landscape, an environment that a four-foot wide pack track to has been largely shaped by its European history, an eight-foot wide coach road in and a history that is unique to the region. 1883. The repercussions of this road upgrading have influenced the region and The history of Mt Hotham has been affected resort development to present times. by influences from both sides of the range. Mt Hotham (1861 metres) is amongst the four highest The Department of Crown Lands and Survey points in Victoria (Mt Bogong, Mt Feathertop, Mt assumed responsibility for Mt Hotham in 1962, Loch and Mt Hotham), atop the solid barrier that appointing a Committee of Management to forms the spine of the Great Dividing Range. Both co-ordinate Crown allotments, subdivisions the Ovens Valley to the north and Gippsland to the and provide basic services such as drinking south have played important influential roles in the water. During its 21-year tenure, the Committee history of the Mt Hotham region. encouraged resort development, such as lodge construction, the Zoo Cart transport system, the An Aboriginal presence existed in the Mt Hotham addition of towropes and the first chairlift, the region for many thousands of years before the Playground Chair installation. arrival of the first Europeans. The principal language groups in the Mt Hotham region included In 1983 the Alpine Resorts Act saw the formation the Gunaikurnai, Dhudhuroa, and the Jaitmathang. of the Alpine Resorts Commission (ARC) to (Burramys parvus), and a Heritage manage all Victorian Alpine Resorts permanently In 2012 a Land Use Agreement was signed with Overlay. In 2004 the 2020 Strategy reserved as Crown Land. Through the provision the Gunaikurnai under the Traditional Owners was released to guide long-term planning of adequate sewerage reticulation and treatment, Settlement Act (VIC) and Federal Native Title Act. and management of Victoria’s alpine resorts. reticulated electricity and gas and later the In 1851 the most influential event in the history connection of the resort to the state grid, the ARC In 2004 the lift company was acquired by MFS of the region occurred with the official discovery contributed to Mt Hotham’s development. limited. In 2009 the $8.4 million wastewater of gold. In that first year gold was discovered at recycling for snowmaking project was completed. Other development in subsequent years saw Omeo, where a few small diggings were opened. The Merlin Entertainment Group acquired the lift increased parking areas, the construction of the The gold discoveries on each side of the divide saw company in 2011. Hull Skiers Bridge, and the sealing of the Alpine a significant movement of traffic over the ranges Road between Omeo and Harrietville in 1998. Since the first travellers over the ranges strapped between the new fields. Diggers travelling over the timber planks onto their boots at the Mt St ranges in the vicinity of Mt Hotham were said to In 1995 BCR Management purchased Ski Tows Ltd Bernard Hospice during the 1880s, the Mt Hotham have discovered small quantities of gold, however and further developed the Resort including new area has been a skiing destination for tourists for these deposits were left in preference for the ski terrain and the Orchard, Keogh’s and Gotcha over 130 years. The area today still has a strong richer pickings and better climate offered by the chairs in 1997 as well as a 53-chalet development association with early heritage in providing a lower valleys. of Hotham Heights. unique recreational destination for visitors all year The early 1860s saw significant gold discoveries The ARC developed a much stronger commitment round. being made on the Upper Dargo and Cobungra to the environment during the mid-1990s, In 2012, the Alpine Resorts Strategic Management Rivers. These new fields saw the establishment of adopting the resorts’ first Environmental Plan was adopted and forms the foundation for more permanent populations in the shadow of Mt Management Plan in 1997. In the same year the Mt Hotham Strategic Management Plan 2013- Hotham. Principal mining camps and commercial the Alpine Resorts Planning Scheme was also 2018. centres on the Upper Dargo included Brocket introduced. (1866), Louisville (1866), and the establishment In 2014, MHRMB commenced community In 1998 separate management boards were of the Cobungra Township in 1883. This led to a consultation to develop a Master Plan for the created for the individual resorts and the Mt population of some 400 to 500 people in the hills resort. This plan is in the final stages of completion Hotham Resort Management Board (MHRMB) on the edge of what is now today’s resort. and serves as the basis for the future development assumed management of Mt Hotham. The Mt of the resort. Significant investments by lease holding Hotham airport was opened in 1999. companies on the Cobungra Diggings had far- In 2002 amendments were made to the Alpine reaching influences. Keen to attract business Planning Scheme, including revising provisions from the new gold mining boom, both Bright and for car parking and introducing an Environmental Omeo shires upgraded the Alpine Road between Significance Overlay for the Pygmy Possum
ANNUAL REPORT 2014/15 9 ABOUT THE RESORT
OUR VISION AND MISSION
OUR VISION THE CROWN OUR STAKEHOLDERS, INVESTORS AND ‘To share an amazing alpine experience’ By maintaining and managing the public assets DEVELOPERS of the resort, attracting investment for the Delivering consistency, certainty and confidence in OUR VALUES development and improvement of the resort, Mt Hotham by undertaking quality resort planning administering the crown leases and licences within and development, reliable utility services, effective We will: the resort, and ensuring legislative obligations are business and product development, clear and • Lead by example in a respectful and met; unambiguous land and lease management, and approachable way, efficient revenue collection; • Take ownership in what we do, and OUR ENVIRONMENT • Be outward looking and innovative in our By managing the rare and valuable biodiversity of OUR CORPORATE PERFORMANCE approach. the resort; By measuring our performance against a set of indicators as reported in this Annual Report. OUR MISSION OUR CUSTOMERS We are committed to achieve the purpose of the To deliver Australia’s premier alpine resort through By delivering quality transport, ski patrol, resort Victorian Alpine Resorts (Management) Act 1997, optimal management of this unique crown asset. entry sales, visitor information, traffic and parking and the vision for the resort as outlined in the Focusing on customer service and effective control, snow clearing, cross country trails and Alpine Resorts Strategic Plan 2012 and reiterated communication, MHRMB will achieve this mission urban amenities; in the our Strategic Management Plan 2013-2018. through providing quality services to: OUR PROPERTY By providing contemporary urban services of water supply, sewerage, drainage, gas supply and solid waste management;
OUR STRATEGY
The following seven program areas are the conduit OUR SERVICES OUR STRATEGIC PARTNERSHIPS between Mt Hotham’s operations, the governing We will provide services at a low, sustainable cost, We will enter strategic partnerships to access legislation and our strategic documents. whilst ensuring a positive customer experience. cost effective services and grow the resort in a Our infrastructure will support the resort’s sustainable manner. OUR CUSTOMER AND COMMUNITY FOCUS strategic direction of an incremental build-out of We will be the best in every dimension of customer accommodation to a sustainable 7,500 beds over OUR CORPORATE GOVERNANCE the next ten years. service through motivated, highly trained and We will ensure that strategic management, competent staff. planning, and resort management is delivered OUR DEVELOPER SERVICES through streamlined processes while meeting all OUR YEAR ROUND RESORT We will have the shortest planning and statutory obligations. We will identify and realise opportunities and development cycle at lowest cost in the Alps. experiences that attract visitors to Mt Hotham, and the associated private and public investments, OUR ENVIRONMENT ON THE RIDGE throughout the year. We will set the standard and be recognised for our environmental excellence and unique location.
10 MT HOTHAM RESORT MANAGEMENT BOARD NATURE AND SCOPE OF ACTIVITIES
Mt Hotham Alpine Resort is one of Victoria’s The Brabralung Trail (Mt Hotham to Dinner RISK MANAGEMENT premier alpine recreation destinations. It holds the Plain), Cobungra Ditch Trail, and the Three Huts Risk register, asset maintenance and risk unique position of being the highest ski field alpine Walk, when combined with the iconic Razorback/ management. village in Australia with a summit elevation of 1861 Mt Feathertop Walk, offer guests the full social metres. spectrum of walks for all abilities and levels BUSINESS UNDERTAKINGS of fitness. The Brabralung Trail is an excellent Mt Hotham is located toward the southern end of example of the Board working closely with the Gas supply and the Victorian Alpine Nursery. the Great Dividing Range, approximately 365 km Alpine Shire and Parks Victoria to create a quality north east of Melbourne and 520 km south west of non-winter alpine product. Canberra. The resort currently has 4,804 beds and BUSINESS AND PRODUCT DEVELOPMENT 85 Lessees. Mine sites have been rediscovered within Hotham Product development, business development, Village that have the potential to be developed into weather and snow reporting, walking trail products Access from Melbourne to Mt Hotham is generally a fully integrated tourism product including walks, and the website. by the Great Alpine Road, either from the west via tours and interpretation. This development has Wangaratta and Harrietville or from the east via the potential to add to the suite of green season Bairnsdale and Omeo. Hotham commercial airport PUBLIC ACCESS, SAFETY AND EDUCATION products available at Mt Hotham. at Horsehair Plain, approximately 20 km south Ski patrol, public infrastructure, visitor safety, east of Mt Hotham, provides an alternative to road Ensuring the consistent and reliable delivery of village maintenance, car parks and roads, resort travel. The airport, until recently, greatly increased core services is necessary to maintain the ongoing entry and visitor information, traffic control, the accessibility of the resort to Victorian, daily viability of Mt Hotham and to provide the transport, trails and snow play, snow clearing, interstate and overseas visitors. It has the foundation on which all other businesses operating cross-country trails and public liability insurance. capacity to provide commuter jet links with major within the resort rely. The level of these services is
Australian capital cities during the ski season. determined annually in the budget process.
Mt Hotham is located at the headwaters of four MHRMB facilitates the following activities at Mt major rivers. Terrain in the resort area ranges in Hotham: elevation from 1060 to 1861 metres. The resort covers an area of approximately 3450 hectares, UTILITIES the majority of which is Crown Land and is Water, sewerage, drainage, waste management, bounded on all sides by the Alpine National Park. snowmaking infrastructure, plant/vehicles and The ski field comprises 320 hectares, or seven per workshops. cent of the total resort area. The urban area of the village covers approximately 15 hectares, and is LAND MANAGEMENT AND in area less than 0.003 per cent of the adjoining ENVIRONMENTAL SERVICES National Park. Property development, environmental The primary attraction of Mt Hotham is as a tourist stewardship, property and leasing, licences, destination during winter months. The resort has planning, building, health, capital works and developed historically as a resort for “serious” operations. skiers with a total of 13 lifts servicing 76 runs of which six are green; 34 are blue; 25 are black and CORPORATE SERVICES 11 are double black. Strategic, business and resort master planning, Summer events are also growing in popularity administration, stakeholder management, in the green season and include walking and emergency management, human resources, mountain bike tracks, cycling, ascend running, board administration, compliance, corporate four wheel driving, music festivals and outdoor governance, risk management facilitation, OH&S, adventures for kids. With the Falls to Hotham financial management and information technology. Alpine Crossing track now completed, it joins the Australian Alps Walking Track. Mt Hotham is also part of the 7 Peaks Ride and the Audax cycling events.
ANNUAL REPORT 2014/15 11 ABOUT THE RESORT
FINANCIAL SUMMARY
2015 resulted in a surplus of $496,546 (2014 $1,032,892). MHRMB focused on creating an amazing alpine experience through marketing initiatives and service deliverables during the year. Investment in the resort increased with the completion of two major developments during 2015 indicating an increase in consumer confidence in the resort. Net assets have increased in 2015, mainly attributable to the $7 million of capital contributions received on the Swindlers Valley project. The pipe works were completed during the year and capitalised with the inlet structure scheduled for completion in 2016.
2010/11 2011/12 2012/13 2013/14 2014/15 OPERATIONS Property revenue/FECA* $58.59 $64.14 $63.81 $66.62 $68.08 Infrastructure and admin costs/FECA* $70.01 $80.50 $79.10 $78.33 $77.05 Village, visitor and marketing costs/visitor day $9.18 $7.19 $10.07 $9.03 $11.15
RESORT INVESTMENT Total village size (FECA) 84,177 84,068 84,228 84,270 84,941 Total CAPEX (‘000) includes Geotech and WIP $2.39m $0.62m $1.02m $3.34m $5.19m
FINANCIAL Outstanding debtors as % of revenue 5.55% 9.35% 7.51% 8.29% 6.47% Closing cash (‘000) (includes term deposits) $1,774 $3,021 $3,665 $9,657 $6,338 Operating cash flow/total assets 1.50% 2.21% 2.17% 2.70% 2.12% Current assets/current liabilities 1.84 2.49 3.16 5.47 3.40
FINANCIAL SUMMARY ($,000) Total assets 79,305 79,891 80,179 88,443 88,666 Total liabilities 3,309 3,576 3,311 3,562 3,288 Net assets 75,996 76,315 76,868 84,881 85,378
ASSETS ARE COMPRISED BY DATE Land 41,815 41,815 41,815 41,815 41,815 Financial 2,288 4,009 4,424 10,559 7,036 Other non-financials 35,202 34,067 33,940 36,069 39,815 Total assets 79,305 79,891 80,179 88,443 88,666
FIVE YEAR REVENUE AND EXPENDITURE OVERVIEW ($,000) - REVENUE Site rental 1,644 1,733 1,512 1,421 1,440 Annual service charges 3,288 3,659 3,863 4,193 4,343 Capital ingoings 42 143 24 177 134 Visitors 2,254 2,785 2,334 2,665 2,731 Grants 100 134 65 60 74 Other sources 1,941 2,112 2,293 2,362 2,065 Total revenue 9,268 10,566 10,091 10,878 10,787
EXPENDITURE ($,000) Operating expenses 7,711 8,311 7,975 8,146 8,414 Depreciation 991 1,355 1,240 1,233 1,373 Finance expenses 114 120 115 110 105 Support payments 252 181 210 356 398 Total expenditure 9,068 9,967 9,540 9,845 10,290
NET OPERATING RESULT 200 599 551 1,033 497
*FECA – fully enclosed covered area (m2)
12 MT HOTHAM RESORT MANAGEMENT BOARD There were 32 consultants engaged in projects with MHRMB for 2014-15. We engaged 16 consultancies (each valued less than $10,000), for a total of $61,928. The following table lists the 16 consultants where total remuneration was $10,000 or above.
CONSULTANCIES Project Expenditure ($) Somerset Capital Financial comparison presentation 10,000 Surface Consulting Swindlers Valley project consulting 84,525 Rose & Barton Legal advice 14,388 Yabbie Pond Pty Ltd Potable water compliance 23,050 On Tap Consulting Pty Ltd Leasing and property consultant 120,594 Shabbadu Pty Ltd Marketing audit 37,350 Solutions H2O Sewerage consultant 48,527 Alpine Building Permits & Consultants Building permits/survey and consulting 31,207 Hansen Master Plan consultant 66,469 Fish & Nankivell CEO appointment 30,199 Blizzard Consulting Development Plan 15,000 Ecowise (ASL Laboratory Group) Potable water and sewerage testing and monitoring compliance 27,493 GoCreative Website hosting 38,336 Getting to Next Hotham Regional Development Growth Plan 10,000 Norton Rose Fulbright Award modernisation 23,520 Biosis Research Environmental survey across resort 23,089
Subtotal (greater than $10,000) 16 603,746
Subtotal (less than $10,000) 16 61,928
TOTAL CONSULTANTS 32 665,674
MAJOR CONTRACTS MHRMB did not enter into any contracts greater than $10 million during the reporting period.
DISCLOSURE OF GOVERNMENT ADVERTISING EXPENDITURE MHRMB did not have any advertising campaigns with a media spend of $150,000 or greater.
ANNUAL REPORT 2014/15 13 ABOUT THE RESORT
KEY PERFORMANCE INDICATORS
MHRMB’s overall performance has continued to be strong.
2010/11 2011/12 2012/13 2013/14 2014/15 CUSTOMER SERVICE Total visitor days (Winter) 318,311 411,495 264,527 332,281 313,341 Market share (Victorian majors visitor days) 28.81% 32.39% 25.07% 28.52% 26.95% Accident rate/’000 visitor days (Hotham Historical average) 1.25 1.06 0.95 1.51 1.77
OPERATIONS Property revenue/FECA* $58.59 $64.14 $63.81 $66.62 $68.08 Infrastructure and admin costs/FECA* $70.01 $80.50 $79.10 $78.33 $77.05 Village, visitor and marketing costs/visitor day $9.18 $7.19 $10.07 $9.03 $11.15
ENVIRONMENTAL MANAGEMENT Potable water quality (compliance with Australian Drinking Water Guidelines as reported to DHHS) 98.1% 96% 100% 100% 100% Wastewater quality (compliance with Licence Limits as reported to EPA) Compliant 75% 100% 62.5% 89% Solid waste – kilograms (winter period) per visitor day 0.53 0.62 0.68 0.54 0.5
RESORT INVESTMENT Total village size (FECA)* 84,177 84,068 84,228 84,270 84,941 Total CAPEX (‘000) (includes Geotech and WIP) $2.39m $0.62m $1.02m $3.34m $5.19m
FINANCIAL Outstanding debtors as % of revenue 5.55% 9.35% 7.51% 8.29% 6.47% Closing Cash (‘000) (includes term deposits) 1,774 3,021 3,665 9,657 6,338 Operating cash flow/total assets 1.50% 2.21% 2.17% 2.70% 2.12% Current assets/current liabilities 1.84 2.49 3.16 3.47 3.40
*FECA – fully enclosed covered area (m2)
14 MT HOTHAM RESORT MANAGEMENT BOARD
ECONOMIC KEY PERFORMANCE INDICATORS
2012/13 2013/14 2014/15 E.1 NET CASH FLOW Net operating cash flow plus net investing cash flow as reported in cash flow statement (81,401) (3,414,660) (4,234,193)
E.2 NET ACCRUAL SURPLUS Net profit before allocation to reserves as reported in the Statement of Financial Performance 551,362 1,032,892 496,546
E.3 BUSINESS CYCLE SUSTAINABILITY Ratio of total financial assets less net accounts payable less total accrued employee entitlements to snow drought reserve target 4.610 3.789 4.336
E.4 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. 0.42 0.26 0.25
E.5 ALL SEASON RESORT Ratio of non-winter visitors to winter visitors 0.82 0.79 0.90
E.6 AVERAGE VISITOR SPEND Ratio of total revenues to total visitors (winter and non-winter) 56.92 49.84 48.2
ANNUAL REPORT 2014/15 15 ABOUT THE RESORT
ECONOMIC KEY PERFORMANCE INDICATORS Theme, indicator and measurements.
VALUING CULTURE AND HERITAGE S1 Indigenous employment opportunities. Indigenous capacity building, engagement, training and/or employment targets.
2015 actions – Close continued working relationship with Gunaikurnai including opening Brabralung Trail.
CULTURAL HERITAGE MANAGEMENT INITIATIVES S2 Respect for culture and heritage. Cultural heritage management initiatives.
2015 actions – Interpretive Indigenous signage on the tracks and trails continued.
COMMUNITY STRENGTH S3a Supporting community participation – events. Community participation in resort sponsored events, programs and activities.
2015 actions – Volunteer ski patrol, 3rd annual Camp Quality fundraiser and sponsorship and donations.
S3b Supporting community participation – consultation. Opportunities provided to the community to contribute to decisions that affect them.
2015 actions – Consultation for strategic planning, Resort Master Plan, ESTA street numbering project, lodge managers’ annual workshop, head lessees briefing, and annual stakeholder meeting at MCG plus follow up/debrief meeting.
S4 Accessible on-mountain key community services. Summer and winter presence of key community services, emergency services, medical services and grocery store.
2015 actions – Medical centre (fully subsidised accommodation), subsidy to police station and emergency services. Subsidised after hours medical services and equipment purchases for medical centre.
WORKPLACE QUALITY S5 On-mountain worker accommodation. Number of beds provided by major employers.
2015 actions – Subsidy on worker housing, staff choice of housing, flexible working hours, staff training for multi-skilling and capacity building, worker transport (summer), staff training program, alpine ecology course training and subsidised staff passes.
VISITOR FULFILMENT S6 Equitable access for Victorians. Enabling actions that facilitate culturally diverse patronage and access for disabled, socially disadvantaged and economically disadvantaged Victorians.
2015 actions – Locals’ ski pass, free guides for people with visual disability, free gate entry to local school students, tertiary student subsidy, free skidoo and other transport for people with mobility issues or a 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 continuing development summer products. Increase in participation in Disabled Wintersport Australia.
S7 Availability of a range of accommodation. Publicly bookable beds per accommodation type.
2015 actions – Broad range of accommodation types: 2 to 5-star.
16 MT HOTHAM RESORT MANAGEMENT BOARD ENVIRONMENTAL KEY PERFORMANCE INDICATORS
2012/13 2013/14 2014/15 N1. COMPLIANCE WITH WATER LICENCE CONDITIONS a) Safe Water Drinking Act standards 100% 100% 100% b) EPA licence conditions 100% 62.5% 89% c) GMW licence conditions 100% 100% 100%
N2. POTABLE WATER CONSUMPTION a) Winter total potable water usage 47.3 ML 57.0 ML 61 ML b) Annual total potable water usage 79.9 ML 97.1 ML 102 ML c) Winter total potable water usage/visitor 0.18 kl/vol 0.17 kl/vol 0.20 kl/vol
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) 0% 0% 0%
N4. GREENHOUSE GAS EMISSIONS Greenhouse gas emissions from electricity, diesel and ULP consumption by MHRMB activities 1909.66 t 1992.77 t 2262.0 t
N5. SOLID WASTE DISPOSED TO LANDFILL Solid waste disposed to landfill based on truck tonnage figures a) Annual tonnage 221.5 t 232.6 t 180.9 t b) Winter tonnage 179.8 t 181.2 t 155.7 t c) Winter tonnage/visitor days 0.68 kg/vol 0.54 kg/vol 0.50 kg/vol
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% 100%
ANNUAL REPORT 2014/15 17 OUR CUSTOMER AND COMMUNITY FOCUS
OUR HUMAN RESOURCES AND ORGANISATIONAL DEVELOPMENT
MHRMB’s aim is to provide effective ongoing OCCUPATIONAL HEALTH AND RESORT MANAGEMENT TEAM management of organisational development, SAFETY COMMITTEE The day to day running of the organisation is OH&S, WorkCover, human resource management, There were no days lost due to injury. There were undertaken by the CEO and a small year round emergency management, administrative systems no major OH&S issues in this reporting period. work force, which is supplemented by seasonal and processes. It is also essential that we organise staff and volunteer ski patrollers. All staff The OH&S Committee held 10 meetings during the our human resources in a way that delivers the members are employed under the Mt Hotham 2014/2015 reporting period and has been actively most effective service to the community and our Resort Management Enterprise Agreement 2013. engaged in: visitors, whilst recognising our obligations to staff. The CEO is contracted under Government Sector • Writing policy and procedures, including Executive Remuneration Panel guidelines. EQUAL EMPLOYMENT OPPORTUNITY management and action plans; MHRMB is an equal opportunity employer and • Conducting workplace inspections; TRAINING AND DEVELOPMENT all appointments and promotions are merit- • Facilitating training sessions; MHRMB encourages staff to keep up to date with based and based on the principles of the Public • Reviewing the OH&S Management System. their knowledge and skills in a variety of work Administration Act 2004. areas. Staff members undertook the following MHRMB has fulfilled its obligations under section GIFTS, BENEFITS AND HOSPITALITY training and courses in 2014-15: 7, public sector values, of the Public Administration ATTESTATION • First Aid Level II; Act 2004, upholding responsiveness, integrity, • Annual CPR updates; I, Jon Hutchins of Mt Hotham Resort Management impartiality, accountability, respect, leadership Board (MHRMB) certify that MHRMB has policies • Hazardous area authority training for bus and and human rights. and procedures in place that are consistent with heavy vehicle drivers; the minimum requirements and accountabilities • Safety Management Course for bus operators; INDUSTRIAL RELATIONS outlined in the Gifts, Benefits and Hospitality • Water Treatment modules; There were no industrial disputes during the Policy Framework issued by the Public Sector • Payroll, Superannuation and Taxation update reporting period. Standards Commissioner; staff are informed seminars; about these gifts, benefits and hospitality The MHRMB’s Enterprise Agreement 2013 was • Australian CFO Leadership Program training; policies and procedures; and the Audit and Risk ratified by Fair Work Australia on September 4, • CPA and Payroll Management course modules; Committee reviews the operation of the policies 2013 and will end in September 2016. • Apprentice Mechanic TAFE course training; and procedures at least once a year to ensure • Emergency and Risk Management training; The Agreement is premised on recognising transparent reporting of accepted gifts, benefits Mt Hotham as a remote, hazardous and isolated and hospitality. • Equipment Operator Competency training; work environment. The need to attract and retain • Fork Lift Training; the best, most competent, flexible, willing staff is • OH&S Training; essential in providing a seamless customer service • Annual Ski Patrol refresher units; and that enhances the visitor experience. • Fire Warden training. A number of these courses were either held Jon Hutchins | Chief Executive Officer OCCUPATIONAL HEALTH AND onsite, locally or via online training. Other Mount Hotham Resort Management Board SAFETY (OH&S) organisations including on mountain businesses OH&S is a significant component of our Risk and other Victorian alpine resorts were involved. Management policy and we are totally committed to establishing a healthy and safe work environment FULL TIME WORKFORCE for our staff, contractors and visitors by: 2013-14 2014-15 • Encouraging individuals to practice work safety Management by providing information, instruction and training; administration 8F/4M 9F/4M • Provide safe plant and systems of work; and Resort operations 2F/9M 1F/9M • Ensure compliance with legislative requirements and current industry standards.
18 MT HOTHAM RESORT MANAGEMENT BOARD ORGANISATIONAL STRUCTURE
The Alpine Resort 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]. This year a comprehensive review of the organisation was undertaken to ensure the most effective, efficient and safe delivery of Mt Hotham’s services. This resulted in a new organisational structure being adopted for permanent staff. As at October 2015 the organisation had the following structure:
BOARD
CHIEF EXECUTIVE OFFICER
Chief Manager Manager General Financial & Technical & Innovation Manager Accounting Environmental and Guest Officer Services Services
FT Staff 2 FT Staff 9 FT Staff 1 FT Staff 3 PT Staff 1 PT Staff 5 PT Staff 2
ANNUAL REPORT 2014/15 19 OUR CUSTOMER AND COMMUNITY FOCUS
SKI PATROL AND SKIER SAFETY
SNOWFALL AND LIFT OPERATIONS THE PATROL SEARCH AND RESCUE
After a slow start, season 2015 turned into a The Hotham Ski Patrol is made up of paid and Although there were no extended searches beyond decent winter with good snow cover across much volunteer members. For the winter 2015 season the resort boundary, there were three significant of the resort from mid-July onwards. Snowmaking there were: 23 paid patrollers (13 full time, 10 part- events this season. One involved an eight-year-old really proved its’ worth this year, as there was time), 39 volunteer patrollers (35 qualified plus 4 who had split from his lesson on The Cornice in virtually no natural snow until early July. Major trainees), and 4 trail crew (volunteers). very poor visibility, became disorientated, and was areas on Imagine and the Summit were unavailable later located in the trees between Joyce Brockhoff until significant natural snow fell however there Hut and Lindsay’s Bridge. ACCIDENTS were lifts open from opening weekend. The season Another involved a five-party team who had received less snowfall than the 10-year average The patrol attended to approximately 940 callouts, deliberately gone out of bounds near Golden Point (298 cm) but with little rain, and good overnight with 441 (66 per cent) requiring further treatment but had drifted too far to the east and rang the ski freezes during spring, the snowpack maintained at the medical centre. The accident rate per patrol when they realised they were lost. and many lifts operated until the official closing on thousand skier days was 1.77 per thousand skier 27th September. days, which is above previous years but well below The third was in the Dargo bowl area where a male the accepted international average of 2.4 per snowboarder had ridden into an icy gully and was Opening weekend saw three lifts operating on thousand skier days. unable to climb out without the assistance of the machine-made snow (Big D, Playground and patrol using crampons, ice axes and ropes. All Summit Trainer) while the Village Chair opened Most accidents attended were for minor injuries three incidents were resolved within an hour of the on 27th June during the school holidays. Heavenly at the beginner areas of the Summit and Big D, ski patrol being notified. Valley Chair opened for Snake Gully ski run followed by the high traffic area of Slalom Gully only (due to snowmaking) on 6th July. The first however there were also more major trauma In recent years there have been fewer patrons significant natural snowfall began on 10th July events than we have attended to for some years. accidently leaving the ski area than in the past. and delivered 73 cm of fresh snow, which allowed Several of these occurred in our more challenging Enhanced boundary lines and more stringent the Summit and Road Runner to open, along with terrain and some required rope extrication from visibility criteria for the opening of certain lifts and many other non-snowmaking runs. The Drift, difficult-to-access locations. runs may have contributed to this reduction. Gotcha, and Keogh’s/Orchard opened in late July, The two most significant events for the winter were while Blue Ribbon opened on 8th August for the medical condition collapses where the casualties AVALANCHE HAZARD resort to become100 per cent operational. ceased breathing. On both occasions there was Small to moderate sized overnight snowfalls There were three substantial snowfalls before 7th a patroller on scene within seconds, CPR was throughout winter meant there was minimal risk August and three significant but smaller events commenced immediately, and extra personnel and of avalanche. Control work was only necessary on before the end of August. The total snowfall was equipment arrived within a minute. The cause of three mornings. 248 cm while the highest recorded base was 112 the collapse of one of the gentlemen is unknown but the other had suffered an acute myocardial cm on 12th August. Although not a huge base, SCHOOL TALKS the temperature remained cold during the peak infarction (heart attack). Both casualties resumed Patrol continued the School Education program season, which helped maintain the snowpack and breathing at the scene, regained consciousness with weekly presentations delivered to visiting delivered great surface conditions for the busiest while being transported to the medical centre, and school groups. The focus was on snow safety and part of the winter. Classic spring conditions have now made full recoveries. accepted/expected slope use. prevailed throughout September. Cold nights, sunny days, light winds and softening snow being SCHOOL HOLIDAYS JUNIOR OPEN DAY the norm. The June/July school holidays proved very Blue Ribbon closed on 28th August. Gotcha, challenging with many guests and limited open The junior open day program proved very popular Keoghs/Orchard closed on 14th September, while terrain causing congested runs. With the Summit in its second year of operation. Three groups of up all other lifts remained open until the end of the being closed there were many lower level riders to 12 school children from the Dinner Plain School season. mixing with others of higher ability on the Village (and other local children) spent four hours learning Loop and Snake Gully. During this time the ski about all things ski patrol. patrol maintained a high presence in the busy They were shown several skills throughout the day areas and extra personnel were tasked with and participated in the sweep of the mountain on mountain awareness shifts. closing. The children loved the experience, and it was great public relations for the patrol.
20 MT HOTHAM RESORT MANAGEMENT BOARD TRAINING TRAIL CREW VOLUNTEER PATROL There were three new trainees and nine trainees The volunteer Trail Crew program again proved The Volunteer Patrol contributed a total of 418 in total at the start of the season. The recently enormously helpful with on slope equipment shifts for the winter (including trainee and cross overhauled training program proved very effective maintenance. It is also a great stepping-stone into country shifts). The 300 qualified patroller shifts and trainees progressed at a faster rate than past the volunteer ski patrol. There were four Trail Crew account for approximately 20 per cent of all patrol years. members in 2014-15. shifts. Four people passed the ski patrol induction this year and will begin training next winter. Four patrollers attended the Steep Snow and Ice Rescue Course facilitated by the Victoria Police SNOW STAKE READS and held at Mt Hotham. Two patrollers attended Reading of the snow stakes at 5.30 each morning SNOWMOBILES the New Zealand Avalanche Safety Stage One after snowfalls continued, resulting in accurate The purchase of a new four-stroke snowmobile course in Wanaka NZ. reporting for the lift company’s marketing mid season was much needed. Mt Hotham now has department. three snowmobiles capable of performing all tasks.
WINTER 2012/13 2013/14 2014/15 Days for winter 107 114 113 Night skiing nights 24 20 30 Maximum natural snow depth (cm) 128 149 112 Total accumulated snowfall (cm) 299 286 248 Visitor days 264,527 332,281 313,341 Skier days (approximate) 224,116 246,684 250,276 Accident rate per 1000 skier days 0.95 1.18 1.77 Incidents attended by ski patrol 599 841 940 Incidents referred to medical centre by ski patrol 301 471 441
SKI PATROL Paid ski patrol staff 19 20 22 Paid ski patrol shifts 942 1167 1193 Volunteer ski patrol staff 33 33 31 Volunteer ski patrol shifts 234 347 289 Volunteer ski patrol trainees 8 6 8 Ski patrol trainee shifts 155 128 118 Cross country ski patrol shifts 12 14 11
ANNUAL REPORT 2014/15 21 OUR CUSTOMER AND COMMUNITY FOCUS
SNOW PLAY
The snow play and toboggan area located at Wire MHRMB supports a private operator hiring 2015 saw the introduction of Husky Sled Dog Plain has proved to be a very popular attraction toboggans; kid’s snowmobiles and delivering a Tours operating out of the Wire Plain area. Howling for families of all ages. First time visitors come safe environment for other related snow play Husky Sled Dog Tours were conducted on both from far and wide to experience this fun alpine activities. Two of the many services the Board the Dargo Loop and Possum Flat Trails. The recreation. It is an activity that anyone can provides are grooming of the toboggan area ever-increasing demand for non-skiing/boarding enjoy and at a low cost. The site at Wire Plain is (weather permitting) and providing an intra village activities ensured good patronage of this exciting protected from extreme weather conditions and bus system for transporting visitors. new snow based experience. provides a beautiful area for families and non- skiers who are enjoying the snow for the first time.
CROSS-COUNTRY SKIING
MHRMB provides a free cross-country trail system. SHARED MULTI-USE TRAIL NETWORK With this year’s late snowfall, the cross-country A complete re-branding of the cross-country trail trails held up extremely well for the rest of the network was undertaken during the summer prior season. Our groomers utilised a variety of tactics to the 2015 winter season. This project involved including snow farming and harvesting to ensure renewing all trail signage infrastructure, maps and the best coverage of the trails throughout the communications. Key areas and trails had been season. identified for additional activities including snow Mt Hotham boasts Australia’s only Snowsports shoeing, fat biking, sled dog and snowmobile Competition Biathlon range. This year saw the tours complementing the traditional Japanese team training at the range. At this stage cross-country skiing trail usage. they are looking forward to returning in 2016 along with the Korean and USA team. After spending winter 2015 training at Mt Hotham, Damon Morton from the Australian team has now qualified for the World Championships and Darcie Morton has qualified for the Winter Olympics.
We had good levels of cross-country skier participation over the seasons’ racing calendar. The Hotham to Dinner Plain “Pub to Pub” cross- country ski race was one of many events utilising the extensive trail network.
22 MT HOTHAM RESORT MANAGEMENT BOARD TRANSIT OPERATIONS
The topographical layout of the resort requires the and from the ski area and other venues within the Medium Rigid Licence, Victorian Taxi Directorate provision of an efficient and effective transport resort. Drivers Accreditation and Hazardous Area Driving and car parking service. The resort transport and A number of changes were made to bus stopping Authority. parking service is provided between the hours of points throughout the village bus route during the A number of our employees completed the 6:30 am and 2:00 am (3:00 am Friday, for late 2015 winter with a view to improving visitor safety Hazardous Area Bus Driving Course at the Friday night arrivals). The service is provided for and guest service. Whilst not all improvements commencement of the winter season with in-house both day and overnight visitors with peak loads were received with full support, the majority of training conducted prior to the commencement of being influenced by lift opening times, Friday night feedback received was positive. The operations the season. A further seven staff worked closely arrivals, and increased weekend visitation. The bus team will continue to review transport and parking with transit operations staff to provide extra guest transport network extends from Hotham Central services with a view to increasing guest safety information and ensure compliance with permit to Whiskey Flat with parking services extending to whilst providing the best possible service. and parking regulations. Loch car park and at Ski Patrol request providing A prototype bus shelter was trialled at bus No major incidents or breakdowns were transport from Loch car park to the village stop number six outside the General Store and reported this season, reflecting the skill of the precinct. feedback was sought prior to rolling out the drivers, management systems and the high With the addition of a nine seater Volkswagen shelters throughout the village. The shelter proved level of maintenance provided by the workshop transporter fitted with a wheel chair lift, MHRMB very popular with guests and more shelters will be mechanics. was better positioned to provide contemporary installed as part of the summer capital works. MHRMB’s bus service was accredited under Part 2 ambulant services to an increasing number of The transit operations team consists of more of the Public Transport Competition Act 1995 (Vic) mobility impaired visitors. than twenty (returning and new) seasonal that ceased on 31st December 2010, and is now Working closely with Disabled Wintersport employees. Our staff members bring a wide range ‘deemed to be’ accredited under Part 4 of the Australia and a number of accommodation of experiences from varied backgrounds. All staff Bus Safety Act 2009. operators, we were able to provide transport to are inducted in house and require as a minimum: a
ANNUAL REPORT 2014/15 23 OUR SERVICES
UTILITIES
Key utility services provided by MHRMB include: • DHHS Risk Management Plan, the disposal of • A reliable supply of potable water that putrid-rotting waste at the Cobungra landfill conforms to Australian Drinking Water in accordance with the EPA best practise Guidelines, guidelines for Landfills Exempt from Licencing (LEFL) and the storage and supply of Liquid • The collection and processing of wastewater to Petroleum Gas (LPG) throughout the village in comply with EPA licence conditions, compliance with the Gas Safety Act 1997.
POTABLE WATER
The source of the village water supply is the upper UV treatment and at two of several designated June 1 to September 30 2015. This equates to 0.20 reaches of Swindlers Creek. A catchment area consumer tap points throughout the resort. kL per visitor day. of 177 hectares with a number of small spring Monthly sampling is also taken from the raw water As part of the proposed construction of the an fed tributaries flowing into a raw water weir. weir prior to UV treatment. No E. coli was detected inlet structure associated with the replacement Water flows under gravity from the weir to the in any samples collected during the reporting of the Swindlers Valley pipeline replacement raw water pump house. It is then pumped up the period achieving 100 per cent compliance with the project, MHRMB was successful in gaining a rising main to storage tanks on the summit of Mt drinking water quality standards. A copy of the licence from GMW to conduct works for the inlet. Higginbotham. The stored raw water flows to one 2014-2015 Drinking Water Annual Report can be The inlet structure comprises of a headwall five of two ultra violet (UV) facilities for disinfection found on the website at www.mthotham.com.au metres in height within the streambed, which will immediately prior to distribution for customer use. effectively work as a dam with a holding capacity MHRMB holds an annual diversion licence with To ensure the supply of safe, high quality drinking of approximately two megalitres. MHRMB will work Goulburn Murray Water (GMW) for the extraction water to consumers and to meet regulatory with GMW to review our current diversion license of water from Swindlers Creek. MHRMB consumed compliance, weekly drinking water samples are to reflect the new raw water supply and diversion an annual total of 102 megalitres of water for the collected and tested for E. coli and turbidity. point in the future. reporting period, 60 megalitres during the period Samples are taken at two points: immediately after
POTABLE WATER CONSUMPTION
25000 kL
20000 kL
15000 kL
10000 kL
5000 kL
0 kL
Jul-15 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Aug-15 Sep-15 Oct-14
24 MT HOTHAM RESORT MANAGEMENT BOARD WASTEWATER
There have been several changes and upgrades A second dosing point was installed for alum and at the Mt Hotham Wastewater Treatment Plant caustic to improve flocculation and settling in the (WWTP) during 2015, which have led to an overall clarifier. This will improve the feedwater quality for improvement in plant performance. the ultrafiltration plant and lead to longer run time and less down time. The aeration system saw a major upgrade with the installation of actuated valves to control air As part of the annual maintenance program all the delivery to the bioreactor tanks that are controlled aeration tanks, digester and the gravity thickener by dissolved oxygen probes in the tanks. The three were cleaned and inspected. PDA blowers now all feed into the one manifold The biosolids dewatering program (waste sludge with the air being distributed by the actuated from the treatment process) at the Cobungra valves. Before this upgrade the system was split evaporation pan continued with a complete drying with two blowers feeding different parts of the of all biosolids from season 2013. Biosolids from aeration system. season 2014 are currently in the evaporation pan. As a result of the upgrade we now have 100 per Dewatering involves treating the biosolids to a cent duty back up with the blowers, which means stage where they are greater-than 65 per cent that in the event of a major breakdown, processes solids and sterilised through application of lime will not be disrupted. One blower running the whole and UV radiation. This dry product will then be plant during the peak winter load as opposed to mixed with soil and utilised for landfill cell capping. the previous system of two blowers also achieves The key objectives of Mt Hotham WWTP are to improved overall power efficiency. continually work towards improving The Return Activated Sludge (RAS) well also saw overall operational efficiency, effluent a major upgrade with new pumps installed in the quality and biosolids reuse in well; new variable speed drives to run the pumps; compliance with our EPA licence. pipework and a new flow meter installed outside the RAS well. Historically the RAS has run on a timer pin system that involves a lot of calculated estimates.
This new system now runs in a continuous RAS flow mode through winter where the RAS return can be set as a percentage of the WWTP in-flow and the flows matched to each other. This means the biology is being returned more during peak loads and less on lower loads improving overall treatment efficiency.
ANNUAL REPORT 2014/15 25 OUR SERVICES
SOLID WASTE MANAGEMENT
MHRMB is responsible for the collection and The solid waste staff demonstrated the recycling Total waste to landfill for the 2014/15 year was disposal of household putrescible waste generated procedures conducted by MHRMB on the mountain 181.2 tonnes. This is a reduction on previous within the resort boundaries, from Wangaratta Ski and explained where the final product is transported. years and a great result considering the increased Club (near Dargo Road) through to and including visitation for the 2015 winter and is representative MHRMB continues to improve its waste the Mother J’s snow clearing station. of MHRMB and the community’s commitment to management systems and would like to waste minimisation. The 2015 winter season saw a number of changes to acknowledge the efforts of the community in the waste collection service including the relocation support of our waste collection and recycling To assist the community in the coming year, two of a number of garbage hutches to facilitate safer initiatives. During 2015 winter MHRMB undertook hard waste and green waste collections will be access and the conducting a trial daily wheelie bin a number of surveys through both the collection conducted during the green season. collection service in the Davenport Village Precinct. and sorting of the waste streams within the resort. This trial saw the installation of wheelie bins in a The community and MHRMB have again diverted LITTER REDUCTION PROGRAM number of hutch locations. Wheelie bins were then more than 38 tonnes of organic material from During May 2015, MHRMB commissioned an transported by snow mobile to the road for handling landfill with 11 new participants in the program external contractor to assist with the recovery of by MHRMB waste compactor vehicle. The trial from previous years. 30 tonnes of organics was rubbish from the Dargo River catchment below was well received by operators in the Davenport collected and transported to Western Composting the resort. The exposed ridgetop location of the area and has provided valuable insight into future Technologies in Shepparton for processing. Further village along with prevailing northerly winds has collection options for the resort. to MHRMB’s commitment to the reduction of waste historically seen litter and dumping of rubbish into We put an emphasis on community education. to Landfill, a new initiative for 2015 saw MHRMB the remote Dargo catchment. A crew of eight spent Winter 2015 started with our staff participating divert a further two tonnes from landfill by the five days collecting and bagging resort rubbish into in the lodge manager’s meeting held at the Mt recycling of polystyrene and recycling collection stockpiles before a helicopter was used over an Hotham CFA station. Staff provided information bags. Whilst the total tonnage diverted is not afternoon to lift it out. Significant items collected on all aspects of the waste collection service large, the m³ reduction is quite significant with included an old rusted fridge, a large truck tyre, with particular attention to the recycling and an estimated 20m³ of polystyrene and 25m³ of ski field equipment including padding and broken organics collection, as well as support and ongoing recycling collection bags being removed from landfill. conducts and signage. information to both lodges and commercial Our ongoing collection of comingled recyclables Regular roadside litter collections and operators throughout the resort. saw a further 4.5 tonnes of aluminium cans, P.E.T maintenance of the public place bins continued for MHRMB again held an open day at the transfer plastics and H.D.P.E plastics baled, 79 tonnes of winter and immediately following the snowmelt. station, for the general public, during the winter co-mingled recyclables collected for processing A large amount of litter was collected minimising season. and 37 tonnes of cardboard collected and baled the impact on the environment. Further to this for the year. the annual community “Clean-up Hotham day” was conducted on the 20th October, with support PERCENTAGES OF RECYCLED AND WASTE 2015 coming from MHRMB, Mt Hotham Skiing Company and a number of other stakeholders. Cardboard 8% During winter, 13 kilograms of cigarette butts Putricible waste 59% Co-mingled 24% collected from public place bins were sent to TerraCycle where they will be recycled into shipping pallets. Every kilogram sent by MHRMB attracts points towards our nominated charity, Camp Quality.
Organics 9%
26 MT HOTHAM RESORT MANAGEMENT BOARD LANDFILL OPERATIONS The site is located on land with a Segment A levels. To date organics have been transported Cobungra Landfill is situated approximately 30 groundwater table. A 50 metre groundwater to Western Composting in Shepparton for kilometres from the resort along the Great Alpine monitoring observational bore was installed at the processing. In July 2015 MHARMB staff attended Road. It is approximately two hectares in size and site in 2012 with initial sampling for groundwater an open day at a community composting has been operating since the early 1980s. It is also quality conducted. In November 2014, MHRMB facility in Mallacoota by East Gippsland Shire. In the only landfill operated by a resort management commissioned a second round of sampling September, MHRMB held approximately three board. The site receives putrescibles and inert which yielded results similar to 2012. Slightly tonnes of organic material and established a trial waste from general and commercial resort elevated levels of heavy metals and nitrates were at Cobungra Landfill utilising a windrow technique. operations. Hard waste and hazardous materials recorded against ANZECC water quality guidelines The aim of the trial is to establish the requirements are not received at the landfill, which is closed to for Segment A groundwater. Further works is for composition of materials and time the public. An area of the site is used for receiving required to determine if these elevated levels considerations with regards to the environmental and treating bio-solids from operations at the can be attributing to contamination or naturally constraints of the site if a permanent facility was to sewerage treatment plant. The site is exempt, occurring background levels. be established. under the small towns exemption, from stringent Since 2010, MHRMB has collected organic food licensing requirements with the EPA. waste generated at the resort with increasing
GAS OPERATIONS
LPG is a clean, efficient and cost effective energy A regulator malfunction occurred during May We received 558.28 tonnes of LPG to service source. MHRMB owns, operates and maintains the 2015; an unforeseen and isolated incident that customers across the resort under contract with LPG system at Mt Hotham. As a provider of gas, resulted in the loss of commercial supply to some Origin Energy during the reporting period. In we are required to meet obligations under the Gas customers within the resort for a period of five to comparison, 512 tonnes was delivered in 2014 and Safety Act and associated Regulations. Energy six hours. Customers were kept informed by staff 642 tonnes in 2013. Safe Victoria acts as regulator and conducts of the situation. There were access constraints The price of the supply to Mt Hotham’s LPG an annual audit of the facilities and operations to some properties to arrange for re-supply, consumers fell by 26 per cent as the world price requiring MHRMB to develop and implement a gas however staff were able to ensure all affected for petroleum products decreased. Our price is set safety case as the central mechanism in acquitting customers were resupplied by the following day. against the world price with a fixed margin. safety obligations. The malfunctioning regulator was replaced with no further incidents during the reporting period.
TONNES OF LPG USED ACROSS THE RESORT
2013
2014
2015
TONNES 100 200 300 400 500 600 700
ANNUAL REPORT 2014/15 27 OUR SERVICES
ASSET MANAGEMENT
The provision of compliant and well-maintained infrastructure and development. been installed over the past 35 years to various infrastructure and equipment is a critical success standards. In the previous ten years much work As much infrastructure is underground, we are factor for the resort, particularly given the resort’s has been undertaken on locating, identifying, conscious of providing a sense of progress for geographic and climatic profile. undertaking inspections and logging these key stakeholders through balanced provision of visible infrastructure elements. Key objectives of our capital works programs community facility or aesthetic improvements. have been to augment infrastructure to meet MHRMB is responsible for key utility services and development demand and provide enhancement to infrastructure including potable water, sewerage, village aesthetics, guest services and operational LPG and stormwater systems. These systems have capacity through improvement to long-term
GEOTECHNICAL PROGRAM
Since 1998, MHRMB has been working designed to have a hydraulic flow capacity of degree bends, that were installed creating a new cooperatively with the Department of 46m3/second. pipeline almost 500 metres in length. Environment, Land, Water and Planning (DELWP) A three-phase low risk approach had been adopted Pipes were bedded, haunched and backfilled in a to manage land stability risks across the resort. for the project; stage one design and preliminary progressive nature with additional considerations The land stability program has identified and works were completed during 2013-14. Stage two and works conducted to ensure sufficient support mitigated a range of risks identified through works included: was given to structures associated with the village the land stability survey conducted by Snowy chairlift surface and groundwater management Mountain Engineering Corporation in 1997. • Removal of utility services (optic fibre; copper communications; low voltage electrical; in the excavation areas. Works included the The latest geotechnical project follows on from potable water and snow making water), construction of a temporary inlet, permanent the corrugated iron pipeline to divert water in outlet structure and reconnection of services • Replacement of the main pipeline with a 2.1 Swindlers Valley. This had been installed in the including reinstatement and final grading to the metre reinforced concrete pipeline with rubber 1980s diverting Swindlers Creek underground valley floor for winter 2015. Straw and jute mesh ring joints, commencing from the outlet within the vicinity of the Heavenly Valley ski field were laid to stabilise earthworks. Works associated and progressing upstream towards the inlet area and was severely degraded. with sealing, public lighting and revegetation works location, at Whitey’s car park was also completed. The Swindlers Valley pipeline replacement project • Replacement of valley services in a progressive saw MHRMB receive $6.02 million dollars in manner behind the newly placed pipeline, funding from the Victorian Government with a total • Construction of a temporary inlet and project budget of $7.6 million. permanent outlet structure for the pipe, and We sought expert judgement and consultation in • Re-establishment of the site with native the design development of the pipeline and inlet vegetation. control structure to ensure a 100-year lifespan and to accommodate flows from Slalom/Snake Gully Extons Pty Ltd was awarded the contract to and Upper Swindlers catchments for current and complete pipe-laying works with our project team future extreme hydrological events. completing remaining site works. A specially purchased six-wheel drive Mack truck and We undertook comprehensive catchment analysis modified forklift were used to lift and transport the calculating total peak flows at the Upper Swindler’s concrete pipes to the job site. The construction catchment output location (36m3/second). consisted of four 3000 mm diameter pipes Taking into account additional flows from Slalom tapering to a further 208, 2100 mm diameter pipes Gully catchment, the overall pipeline has been including eight which were fabricated with five
28 MT HOTHAM RESORT MANAGEMENT BOARD CAPITAL WORKS
Each year MHRMB adopts a capital works program, 5. Village aesthetics; boundary pole line in areas and improved signage. which is prioritised from a comprehensive 10-year 6. Geotech/land stability; and Utility services were installed or upgraded to program. The value of the annual program depends 7. Risk management. Slatey’s Shed including drainage works along the on available surplus, previous year’s depreciation Great Alpine Road and sealing the verge from the and availability of external funding grants, as from During the current reporting period a focus on workshop to Slatey’s shed, improving car parking time to time the Board secures third party funds for village aesthetics saw Australia’s first 360-degree facilities and reduce stormwater sedimentation specific projects. roundshot web camera commissioned on the Hull Skier Bridge just prior to winter 2015 and a runoff. Several fire hydrants were upgraded in the Projects are selected to meet the highest priorities prototype bus shelter design was tested at the Davenport Village area. based on seven key drivers: General Store where verge sealing to the bus stop The fleet asset replacement program continued, 1. Asset replacement; was also completed. New signage and rock wall the skid steer loader was replaced, the coaster 2. Infrastructure maintenance and development; at Hull skier’s bridge and a trail head sculpture bus was replaced by an AWD 12 seater Volkswagon 3. Opportunistic; installed at Loch car park. Works commenced Transporter and we purchased a new three tonne on improving ski field safety by upgrading the 4. Regulatory; forklift.
Capex Allocation at 1 Nov 2014 Funding Received 2014 Expenditure Expenditure YTD ASSET REPLACEMENTS Office Systems & Equipment $18,000 $- $3,485 $17,342 Fire Hydrants $7,000 $- $- $9,183 Fleet, Plant & Equipment Replacement $438,000 $- $- $475,111 Medical Centre Equipment $30,000 $- $- $30,340 Gas Regulator Train $- $- $- $12,074 Nursery Hot House Evaporative Units $- $- $- $8,579 Minor Items under 10k $10,000 $- $- $13,045 Sub Total for Asset Replacements $503,000 $- $3,485 $565,674
STRATEGIC INITIATIVES Trail Design & Concepts $35,000 $- $- $27,066 Digital Tour Guide $10,000 $- $- $7,045 Trail Head Signs $20,000 $- $- $11,618 Lock Trail Head signs $15,000 $12,432 $3,484 Short Walks $10,000 $- $- $8,554 Hotham DP Trail Indigenous Interps $10,000 $- $- $7,831 Sub Total Strategic Initiatives $100,000 $- $12,432 $65,599
INFRASTRUCTURE DEVELOPMENT Bus Shelters $45,000 $- $- $26,505 Slatey Shed Utilities &Services Connections $160,000 $- $- $98,744 Village Aesthetics including Welcome to Hotham Signage & Round Shot Web Camera $190,000 $- $- $148,045 Verge Sealing along the Great Alpine Road $400,000 $- $- $538,627 Ski Field & Safety Infrastructure $18,000 $- $- $17,271 Deferred Projects $153,000 $- $- $1,482 Sub Total Infrastructure Developments $966,000 $- $- $830,674
GEO-TECHNICAL GAR Batter Works Fountains $50,000 $(50,000) $- $- Swindlers Valley Drainage $7,526,544 $(7,154,544) $2,707,925 $3,699,690 Total Geo-Technical Expenditure $7,576,544 $(7,204,544) $2,707,925 $3,699,690
TOTAL CAPITAL EXPENDITURE $9,145,544 $(7,204,544) $2,723,842 $5,161,637
ANNUAL REPORT 2014/15 29 OUR SERVICES
FLEET MAINTENANCE
MHRMB workshop mechanics maintain a large costs, unplanned breakdowns and ensures better fleet of vehicles, plant and equipment in full trade in prices before it depreciates past its readiness for a variety of tasks throughout the optimum replacement value. This year saw the year. purchase of a new electric forklift for the garbage recycle shed. The forklift has seen an increase The MK4 0305 Mercedes Benz buses that in movability in the shed and has a zero per cent were commissioned for winter 2015 performed emission. Another new addition was a replacement well this season. Weekly safety checks and track system to the garbage collection oversnow preventative maintenance on buses and other fleet vehicle. The track system is to improve traction vehicles continued to be successful in reducing over bitumen surfaces and provide minimal impact breakdowns and increased reliability. Record car to areas of poor snow levels. numbers in the resort over August weekends saw all buses operating smoothly accommodating An external audit is conducted annually on the guests transport needs. Periodic maintenance buses, where tests include dynamic, break rolling was carried out on heavy plant and light vehicles resistant and visual inspections. All buses passed, to prevent unscheduled breakdowns and ensure receiving their roadworthy certificate. This is a reliability throughout winter. testament to the effective summer works program that the workshop staff members carry out every MHRMB has a fleet upgrade program to replace year. items on a regular schedule to reduce maintenance
30 MT HOTHAM RESORT MANAGEMENT BOARD OUR DEVELOPER SERVICES
Mt Hotham has significant recreational attributes the provision of a diversity of winter activities roles, based on expectations of resort users afforded by its unique location and environment. and experiences, and visitors, and It also has substantial future development • Focus on expanding opportunities for summer/ • Ensure visitors are seamlessly directed to opportunities, including available land for ski non-winter season activities and experiences in their intended destination to reduce travel area expansion, opportunity for enhanced and a sustainable way, time, thereby increasing their recreational augmented snowmaking capabilities and potential • Encourage new commercial development enjoyment of the resort. to further develop winter and summer amenities. opportunities, which builds upon substantial During this reporting period the focus has been MHRMB’s approach to sustainable growth and asset investment, on the preparation of a Master Plan and the development of the resort is founded on the vision • Facilitate a new ‘village heart’ at Mt Hotham resolution of the planning impediments associated “to share an amazing alpine experience” and a Village to accommodate new commercial, with Bushfire Management Overlay and native strategy that will: leisure and recreational hub for the resort, vegetation offset provisions. • Maintain and build upon its functional role as a • Ensure Davenport Village, Wire Plain and preeminent winter tourist destination through Whiskey Flat precincts perform supporting MASTER PLAN
Hansen Partnership was engaged to develop the The work completed so far has resulted in the were also conducted. The outcomes of these Master Plan for Mt Hotham in January 2014. The development of: consultation sessions were synthesized and have aim of the plan is to ensure future development • An overall vision for Mt Hotham’s development, been incorporated into the plan development. of Mt Hotham proceeds within the context of a • An analysis of the existing conditions of Mt This work now forms the basis of, and is contained clearly documented and strategically supported Hotham and the designation of five activity within the draft Prescient Development Plan which policy framework. Once finalised the Mount node precincts: Hotham Central, Over Snow, was presented to the Minister in September 2015. Hotham Master Plan will provide certainty for Davenport, Wire Plain and Whiskey Flat, The final Master Plan will not seek to nominate stakeholders and investors and confidence for fixed or mandatory outcomes, rather provide a government that Mt Hotham’s functional role and • An overall Mt Hotham Resort Framework Plan flexible ‘road map’ to guide future development future opportunities are appropriately managed to guide the functional roles of designated initiatives. and coordinated. precincts within the resort, and • Specific vision statements and Framework As prescribed by the Alpine Resorts Strategic The Master Plan will guide and facilitate future Plans for each of the five designated precincts. Plan 2012, other elements of the Master Plan development and the ongoing evolution of Mt deal with an Infrastructure Plan, Environmental Hotham as one of Victoria’s premier alpine resorts. In the development of the Mt Hotham Master Plan, Management Plan, Native Vegetation Provisions, This includes a continued winter season focus and public comment and feedback was sought through and a Fire and Emergency Management Plan. expanded, as well as economically sustainable, a series of workshops in Melbourne and on the year round activity. mountain. Specific agency consultation sessions
GROWTH DEVELOPMENT PLAN
In response to the first area of focus, the to implement the Master Plan. Underpinning the Board developed a Development Growth Plan, “To share an amazing alpine experience” Development Growth Plan is the concept of co- which centred on a common vision, direction creation with stakeholders. and purpose in the form of an authentic belief The Development Growth Plan has been prepared statement, which is: to outline the parameters, timelines and processes
ANNUAL REPORT 2014/15 31 OUR DEVELOPER SERVICES
NATIVE VEGETATION
In Victoria, a permit is required to remove, The Guidelines are applied alongside other The establishment of arrangements to assist the destroy or lop native vegetation. The removal of requirements of the planning scheme when the securing of offsets for development in alpine areas native vegetation is primarily regulated by the responsible authority considers an application for continues to be the subject of ongoing discussions Victoria Planning Provisions. These regulations a permit to remove native vegetation. A permit to between the DELWP and the resort management are known as the native vegetation permitted remove native vegetation does not replace any boards. Due to the highly localised occurrence clearing regulations. The Permitted clearing requirements under the Flora and Fauna Guarantee of many native species in alpine resorts a range of native vegetation – Biodiversity assessment Act 1988 and the Commonwealth Environment of options is being explored to enable species guidelines (the Guidelines) are an incorporated Protection and Biodiversity Conservation Act 1999. specific offsets to be secured. A review of the document within all Victorian Planning Schemes If a permit to remove native vegetation is granted, native vegetation permitted clearing regulations and outline how impacts on Victoria’s biodiversity an offset that makes an equivalent contribution was announced earlier this year. MHRMB has are assessed when an application to remove native to Victoria’s biodiversity will be required. Offset participated in targeted consultations as part of vegetation is lodged. requirements are determined in accordance with the review. the Guidelines.
BUSHFIRE MANAGEMENT
MHRMB continues to maintain the Mt Hotham 1. BAL-40 construction in accordance with Community Bushfire Emergency Management, AS3959. which was endorsed by the CFA on 28th May 2014. 2. Determined by a fire safety engineer that the The endorsement of this plan gave practical effect building will be capable of withstanding an to the modified standards of the Schedule to the equivalent level of predicted bushfire attack and Bushfire Management Overlay. levels of exposure. (The definition of fire safety The modified standards apply where an application engineer under the Building Regulations means to construct a building or carry out works is a registered building practitioner in the category accompanied by a letter from the CFA stating that, of engineer, class of fire safety engineer). in its view, MHRMB has implemented satisfactory 3. Determined using an alternative methodology emergency management arrangements aimed to the satisfaction of the relevant fire authority. at prioritising the protection of human life. Buildings must also be provided with defendable The modified requirements then provide that space to the satisfaction of the CFA. construction of works must be one of the following:
32 MT HOTHAM RESORT MANAGEMENT BOARD LEASING
The Alpine Resorts Leasing Policy, including the standardised lease documentation, provides the framework for the leasing of Crown Land in alpine resorts. The policy takes into account probity, conflict of interest, public interest and competition requirements and is based on the principles of demonstrated public and economic benefit, transparent lease allocation and process, appropriate lease terms and conditions, consistent lease documentation and approval processes.
Since the adoption of the Alpine Resorts Leasing Policy in 2002, 35 new leases have been issued in the Alpine Standard Lease form with an average lease term of 26 years. This represents 40 per cent of the leased or occupied sites within the resort.
BUILDING SERVICES
MHRMB has a legislative obligation under s212 of A total of 14 buildings were inspected with the the Building Act 1994 to administer the provisions majority of issues identified relating to minor of the Act, the Building Regulations 2006 and deficiencies in exit signage, door furniture and the Building Code of Australia within its area of smoke alarm/detector coverage. jurisdiction. During the last reporting period we Building Permits were issued for five premises: continued the engagement of the services of Mr Phillip Davern to fulfil the role of Municipal Building • Gravbrot – fire system upgrade Surveyor in order to carry out its responsibilities • Blue Ribbon – escape stairs under the legislation. • Wangaratta – minor internal works The inspection program continued its focus on • General Store – new apartments ensuring existing buildings achieve a satisfactory • Hotham Central – new fit out of One Tree level of fire and life safety. Providing guidance on Sports. the administrative obligations imposed on owners and managers to maintain nominated essential safety measures within their building has also been a priority. During the inspection process the Fully Enclosed Covered Area (FECA) of all buildings was measured for rating purposes.
ANNUAL REPORT 2014/15 33 OUR DEVELOPER SERVICES
PROPERTY SALES
Real estate sales turnover has declined since the for the same period last year. been in the $175,500 to $290,000 price bracket peak in 2005, which produced an annual sales and the year to date median price of 2015 sales is Turnover in real estate sales for the last 18 years is volume of $18.3 million. In the eleven years since $143,000, which represents an average unit price shown graphically below. to 2015 sales volume has ranged from $3.8 million per square metre of $3,193. The number of sales to $14 million per calendar year. The 2015 year-to- The median price for property transactions for for 2015 has made a recovery and is up compared date total of $6.4 million compares to $3.8 million the previous ten years from 2005 to 2014 has to previous years.
HOTHAM SALES VOLUME 1998-2015
$20,000,000 $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
HOTHAM PROPERTY SALE NUMBERS
MEDIAN NUMBER OF SALES 300000 80
70 250000 60 200000 50
150000 40
30 100000 20 50000 10 0 0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
34 MT HOTHAM RESORT MANAGEMENT BOARD STATUTORY PLANNING
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 the Minister’s behalf by the DELWP. We have referral authority powers in relation to servicing and land stability and can also provide comments on planning applications more generally as the land manager.
There were five amendments to the Alpine Resorts Planning Scheme this year:
AMENDMENTS TO THE ALPINE RESORTS PLANNING SCHEME
AMENDMENT NUMBER DATE DESCRIPTION VC124 2 Apr 15 Changes to the responsible authority for all new planning permit applications for use and development of land for the purpose of wind energy facilities to Minister for Planning.
VC119 30 Apr 15 Applies to all planning schemes to extend 2009 bushfire recovery planning permit timeframes for continued use buildings for temporary accommodation to 30 September 2018. 2009 bushfire replacement buildings to extend the timeframe for submitting a site plan to 30 September 2017
VC125 11 Jun 15 Amending wind energy facility to reference guidelines and updating the application requirements to address the electricity transmission or distribution system. Amending land use terms to change the definition of wind energy facility to include the use of the transmission or distribution system of power lines to connect the wind energy facility to the electricity network.
VC128 8 Oct 15 Applies to all planning schemes and reference to the updated policy and planning guidelines for development of wind energy facilities in regards to renewable energy in Victoria.
VC101 29 Oct 15 Makes changes to the Victoria Planning Provisions (VPP) and all planning schemes. The amendment updates reference and incorporated documents, ensuring that up to date policy is reflected in the planning system and removing ambiguity about the status of some policies; ensures that the VPP and planning schemes are up to date and correct by removing expired provisions, clarifying the wording of other provisions and correcting errors and omissions; ensures the VPP and all planning schemes include the correct names of government departments where their titles have changed, and ensures that referral and notice requirements to bodies under sections 55 and 52(1) (c) of the Planning and Environment Act 1987 are accurate.
ANNUAL REPORT 2014/15 35 OUR DEVELOPER SERVICES
ENVIRONMENTAL HEALTH SERVICES
MHRMB continues its contract with the Indigo The issue of food catering for school groups INSPECTIONS Shire Council’s Environmental Health Officers was streamlined last year and all lodges and In total 54 accommodation facilities were to carry out regulatory duties under the caterers complied with all food safety (program) inspected for overcrowding, maintenance and Food Act 1984, Public Health and Wellbeing Act requirements. Two premises were identified, (the cleanliness of facilities, number of fixtures 2008, Public Health and Wellbeing Regulations General Store and Isobar) which require structural available and refuse collection and disposal. 2009 and Tobacco Act 1987. This service requires improvements. Renovations are already planned full compliance and a high standard of public for these premises during the coming off-season. Throughout the season the majority of health within the resort with assessments and accommodation facilities inspected were found to be satisfactory. The only premise that requires inspections undertaken on food premises, COMPLAINTS accommodation facilities, health premises, follow up is the one used for staff accommodation We did not receive a food related complaint during educational visits to ensure tobacco compliance and was accommodating more staff than what was this season. and the investigation of received complaints. approved. Their report is outlined below. FOOD SAMPLING COMPLAINTS FOOD PREMISES No food sampling was conducted this year. One complaint was received during this season; During the 2015 season 21 food premises were an overcrowding issue was reported in a ski lodge. registered with MHRMB via Indigo Shire falling TOBACCO ACT COMPLIANCE It was not possible to inspect the lodge after either into a Class 1, Class 2, Class 3 or Class 4 risk Tobacco education visits were provided to the complaint was received, but we managed category. tobacco retailers, licensed premises and eating to discuss the complaint with the manager and establishments. Two retailers were educated on consequently a letter was issued. This issue will be MOUNT HOTHAM FOOD PREMISES sales to minors, signage and visibility of tobacco followed up when the lodge applies for the 2016 registration. Category 1 1 products. Both premises had to be re-inspected to address a signage non-compliance issue. Both Category 2 18 premises addressed the non-compliance issue GASTRO OUTBREAKS Category 3 0 during the season. No outbreaks were reported this year. Category 4 2 PRESCRIBED ACCOMMODATION HEALTH PREMISES TOTAL 21 REGISTRATION The Public Health and Wellbeing Regulations 2009 Accommodation facilities are required to be control potential infectious diseases that may registered under the Public Health and Wellbeing NON-REGISTERED FOOD PREMISES occur in the above premises. These regulations set Act 2008 as prescribed accommodation if out the requirements that proprietors of premises Ten lodges were informed that they could require payment is made for a person or persons to be registered under the Public Health and Wellbeing an additional food registration in future if they accommodated. For the 2015 season there were Act 2008 must observe. All premises are required keep on providing food to their guests. a total of 52 accommodation facilities registered. to be maintained in a clean hygienic manner. There are still some inconsistencies with regards ROUTINE INSPECTIONS to the registration of members’ only lodges. Two premises were registered in 2015. Both premises were visited and were found to comply. All 21 registered food premises were inspected No complaints were received during this season. and five follow up inspections were conducted NON-REGISTERED PRESCRIBED for the premises that did not comply. Additionally ACCOMMODATION PREMISES a mobile/temporary premises (Café Play), Two lodges, which may require a prescribed registered with another municipality was also accommodation registration, were identified and inspected with the results to be entered on the inspected during the 2015 season. Both clubs statewide electronic Streatrader system for this have been officially informed that they require a type of food business. registration if they continue to operate the way Throughout the season the majority of food they are operating (i.e. accepting school groups). premises inspected were found to be satisfactory These lodges will be contacted prior to the 2016 and we are of the opinion that the standard of food season to verify if they require a prescribed safety has improved during the last 12 months. accommodation registration.
36 MT HOTHAM RESORT MANAGEMENT BOARD OUR YEAR ROUND RESORT
VISITOR SERVICES
THE GREAT ALPINE ROAD requiring assistance with breakdowns, accidents AFTER HOURS GUEST SERVICES HUT MHRMB’s staff again played an active role in and snow chain issues were able to continue on MHRMB operated a new after hours visitor the assistance of managing the Great Alpine their journey. The Officer also coordinated vehicle information service from the hut located in the Road during the winter season. Staff members recovery in a timely manner with guests being Corral Day car park for winter 2015. It operated were stationed in chain fitting bays during peak transported to their destination. This proactive from 4pm until late (midnight on busy nights) traffic times to welcome guests, provide visitor approach ensured visitors were prepared and well allowing visitors to be directed to a central point information and ensure visitor vehicles were ready informed for entering and exiting the resort whilst for all of their enquiries. The hut enjoyed good to safely begin their journey up the mountain. successfully preventing road closures along the patronage in its first year providing a concierge Great Alpine Road. type service, directing arriving visitors to their MHRMB additionally contracted the services of a accommodation and answering any enquiries they Road Safety Patrol Officer, to ensure that visitors had.
RESORT ENTRY AND PARKING
‘Alpine Easy Access’ is the resort’s online resort for greater customer utilisation. The creation of Record vehicle numbers were encountered on entry payment system, and is in its fifth year additional disabled spaces closer to ski field and multiple weekends during the season in the car of deployment. With the customisation of the additional bus zones saw strong usage throughout parks for 2015. The resort has approximately 1500 system being the focus of the previous years, the the ski season. designated car spaces within the village transport focus for the 2015 winter season had been on Major car park upgrades had been carried out over area. Numbers of in excess of 1850 vehicles had revising the village car parking. Continuing the the summer period with Whitey’s car park gaining been recorded with additional areas being cleared complete overhaul of car parking signage and an additional 80 spaces. Further bitumen sealing of snow and managed as car parks on these peak communication implemented in 2014, we focused of roadside parking and installation of additional weekends. on reworking some of the existing parking zones street lighting were also completed prior to winter.
MARKETING AND CUSTOMER SERVICES
MHRMB marketing team enjoyed a busy Tourism Victoria and the Alpine Resorts The research revealed three core segments year with many new marketing incentives Coordinating Council (ARCC) have recently (recent visitors, lapsed and new visitors) and three undertaken throughout the year. The Board completed a Victorian Snow Resort Segmentation segments that represent an opportunity to grow formed a Marketing Sub Committee to steer the Study to understand the mindset and decision- visitation to Victorian snow resorts. strategic direction of marketing within MHRMB. making behaviours and perceptions of Victoria as a We have been working closely with Tourism The first undertaking of the committee was to snow destination in the domestic market. North East (TNE) to run information sessions and commission an extensive audit of the marketing The project was undertaken by Sweeney E&Y workshops based on this market research. TNE activities undertaken by the mountain as a whole. Research and included 2,000 online interviews facilitated two Destination Action Plan workshops This independent report identified areas of of 18-69 year olds located in Victoria, New South for winter and summer product development with improvement and opportunities to be undertaken Wales, Queensland and South Australia, and six input from many stakeholders. by MHRMB in its strategic marketing. focus groups conducted in Melbourne and Sydney.
ANNUAL REPORT 2014/15 37 OUR YEAR ROUND RESORT
WEBSITE
MHRMB operates the website www.mthotham. Mt Hotham was the first Australian ski resort to Statistics for www.mthotham.com.au com.au in collaboration with the Mount Hotham install a high definition 360 degree Roundshot Annual Visits 1,169,633 Skiing Company and other mountain stakeholders. web camera. The camera uploads images to the The website had an increase of 90,000 visits website at varying intervals throughout the day Highest Visitation Day 23,723 on 12th July from the previous year with extensive upgrading giving a complete overview of the resort from the of pages based on a newly created style guide for Hull Skier Bridge on the Summit. The camera was 2015. very popular, receiving a total of 144,000 visits since we installed it on the site in June. COMMUNICATIONS AND PUBLICATIONS
We undertook a number of new initiatives for 2015. • Quarterly Stakeholder News Letters, • Guided Bushwalks - with Andrew Swift’s wealth These include: • Tracks and Trail Summer Guides, of knowledge he recites tales of the gold rush era, and • Multicultural Visitor Guides in Hindi and • A weekly “What’s On” Flyer, Simplified Chinese, • “Awesome Conditions Apply” billboards • Ski Patrol Talks - provided throughout the displayed on two major freeways in Melbourne • Disabled Winter Visitor Guides, winter season to schools and organised for the month of September. A joint initiative in • Multi-Use Shared Trail Guides, groups, collaboration with Mt Hotham Skiing Company. • Coming to Hotham Visitor Guides, • Environmental Talks - provided throughout the year to schools and organised groups, EVENTS
BEYOND HOTHAM Whiskey Flat car park. We congratulate The General HOTHAM AUTO CORSA An eight-day program was delivered for 2015 with a Store for hosting a fantastic event and look forward MHRMB is deeply disappointed that event revised format consisting of two days of daytrips and to supporting it into the future. organisers had to postpone the anticipated Hotham a six-day camping tour. Participation numbers were Auto Corsa Alpine Tarmac Rally, scheduled to take down on previous years due to limited tours being ADVENTURE KIDS FESTIVAL place on 14th November 2015. The 241-corner on offer. Major capital works programs being carried In its first year at Mt Hotham, adventure-seeking tarmac trek has an elevation gain of around 1300 out saw limited staffing resources available to act as kids and their families converged on the Big metres finishing at the summit of Mount Hotham, tour guides. A static delivery model is being adopted D Kids Snowzone over the Australia Day long totalling 171 competitive kilometres. for future participants allowing four-wheel driving weekend (24-26 January) for a nature-based Recognising the needs of the regulatory authorities enthusiasts to partake in self-guided tours of the active getaway. With the aim of promoting outdoor and local communities, event organisers Auto region with monthly Tag Along Tours being offered. activity and adventure play among kids aged 4 to Corsa Group expended considerable time, effort 12, the festival proved that the iPad generation still and resources planning for the event, particularly COOL SUMMER FESTIVAL enjoys the best of the outdoors. towards developing a rigorous safety process The General Store entertained the crowds far and to meet the unique requirements of the event. wide with an event that encapsulates the mountain’s AUDI SPONSORSHIP Despite the efforts of VicRoads, the Australian atmosphere. The festival ran for three days over A touch of red was added to Hotham Central through Auto Sport Alliance (AASA) and Auto Corsa Group, two stages showcasing the best in Australian music, our new sponsorship with Audi. The sponsorship the event’s insurance and sanctioning approval both local and interstate. The sun shone the entire saw the renaming of the Village Quad Chair to was unable to be in place in time. We look forward weekend to the comfort of close to 600 patrons Quattro Chair and part of the car park allocated to to hosting the event in 2016. and campers. Many local accommodation providers Audi vehicles. Audi also introduce the new Q7 at Mt were involved as well as a camping ground located at Hotham with snow and mud drive experiences.
38 MT HOTHAM RESORT MANAGEMENT BOARD REGIONAL MARKETING
In association with the other Victorian alpine resorts, we have contributed to promotion of the alpine region and the snow industry through ARCC, Snow Victoria and TNE. STRATEGIC PARTNERS
Many organisations with an association to Mt Hotham have contributed to the resort. We appreciate the support of Audi, Smith, and K2. WALKING TRAILS
With a growing range of uses, in winter and Sections of the track and trail network have also trail now crowns the suite of heritage based summer, Mt Hotham’s track and trail network is been upgraded to become more suitable to trail iconic tracks and trails that Mount Hotham has undergoing significant upgrades to cater for a running, including the Cobungra Ditch and The Big completed in recent years. The project received broader range of activities across both the green Spur trails. funding from Alpine Shire and assistance from and white seasons. A number of improvements in Parks Victoria and GLaWAC. The Dinner Plain Mile High Trail running event saw maintenance and upgrades have been undertaken over 90 competitors from across Victoria utilising in this area. some of the resorts’ tracks and trails including the SHARED TRAIL NETWORK Brabralung trail and The Cobungra Ditch. This season all old cross-country trail signs on The TRAIL MARKETING Big Spur, Wire plain and Whiskey Flat areas were The free, guided bushwalking program has BRABRALUNG TRAIL replaced with the cypress post track markers, (as continued for the fourth year in a row. Tours introduced to the summer trail network in recent The 2014/15 construction season saw the have been conducted over long weekends, years). These markers have included updated introduction of interpretive signage along the offering attendees further historical insight into directional, advisory and locality information; also Brabralung Trail (former Hotham-Dinner Plain Mt Hotham’s iconic tracks and trails. Continuing ‘Share the Snow’ has been placed on signage at Trail), as part of an Aboriginal signage plan that under the banner of “Gold, Graves and Perilous key locations for the multi-use of the trail network was undertaken with the Traditional Owners and Journeys”, a diverse range of participants have during the heavy visitor use. The role-out of the registered Aboriginal parties to provide content gleamed an insight into the remarkable history of Shared Track and Trails Signage Plan will form the and design for the trail. the region. basis of a consistent winter and summer standard The Brabralung Trail was officially opened with a across all shared tracks and trails network. Track Notes and Track and Trails Guides continue traditional smoking ceremony on the 25th March to be published and updated with new content and Improvements have also begun at trailhead at the Dinner Plain trailhead. The Gunaikurnai Land are made available on the mountain and at regional locations with the introduction of sculptural picnic and Waters Aboriginal Corporation (GLaWAC) visitor information centres. tables to enhance the environment. Fabricated approved the name Brabralung Trail in December by Richard Walker of High Country Forge, Smoko, TNE’s promotion of the resort for The 7 Peaks 2014. Brabralung is the name of the Gunaikurnai they are of similar design style to the interpretive Trail Running has seen a number of the tracks Clan for this region of Gippsland, translated as signage along the Cobungra Ditch. upgraded for use by trail runners. Three routes Male, Berry Worcat (female), meaning ‘the people’. (green, blue and black) have been chosen, using The 12 km surfaced trail provides cycling, walking the existing track and trail network, with 7 Peaks and trail running in the summer months and cross- directional signage placed along the routes. country skiing during the winter. The Brabralung
ANNUAL REPORT 2014/15 39 OUR ENVIRONMENT ON THE RIDGE
In order to achieve the functions outlined within An Environmental Management Plan (Plan) was the Alpine Resorts (Management) Act 1997 as developed and endorsed by the Board. The Plan well as environmental regulatory compliance; we lists prescribed targets and actions until 2018. We sought to implement a revised Environmental will report annually against the Plan and review the Management System (EMS) in late 2014. SoE and Plan targets and actions in 2018.
A Statement of the Environment (SoE) Report was developed outlining existing regulatory frameworks, using readily available operational data and existing knowledge of environmental values within MHRMB.
Based on information contained within the SoE, we identified six key issues: 1. Landfill management, 2. Diesel fuel consumption, 3. Climate change, 4. Greenhouse gas emissions, 5. Threatened species management, and 6. Cultural heritage values.
SUSTAINABILITY
MHRMB remains committed to investigating are working to improve waste recycling rates for opportunities to reduce the impact of activities and cardboard, co-mingled and organic material to operations on the sensitive alpine environment. minimise the waste sent to landfill at Cobungra. Emphasis is placed on wastewater discharge, During the 2014-15 reporting period MHRMB water consumption, waste minimization and consumed 1,130,922 kWh of electricity, 14,529 reducing electricity and fuel consumption. litres unleaded fuel, 170,727 litres diesel fuel and Wastewater discharge is monitored for quality and 3,814 tonnes of LPG. This resulted in 2,262 tonnes quantity and we seek to improve Class A water of greenhouse gas emissions being emitted by reclamation each year. Water consumption is real MHRMB activities. A comparison for consumption time monitored within the SCADA system. We figures for recent years is shown below.
Year Electricity (kWh) Diesel fuel (litres) Unleaded fuel (litres) Greenhouse Gas Emissions (tonnes) LPGas (GJ)
2014-15 1,130,922 170,727 14,529 2,262 3,814
2013-14 957,778 165,268 21,174 1,993 3,153
2012-13 941,476 143,448 16,791 1,910 3,255
40 MT HOTHAM RESORT MANAGEMENT BOARD THREATENED SPECIES AND BIODIVERSITY CONSERVATION
The Victorian Alps is of special ecological value programs including ongoing invasive weed and still below average. The Board are working in due to the restricted geographical occurrence of predator control programs. collaboration with DELWP to implement actions to alpine areas in Australia and the high biodiversity reverse this trend. MHRMB continues to support ongoing scientific values found in these areas. Alpine ecosystems research to annually monitor the Mountain During December 2014, we commissioned a contain a significant number of threatened and Pygmy-possum (Burramys parvus) population. snapshot resort wide targeted survey to assess the endemic species protected by the Flora and Conducted by wildlife biologist Dean Heinze status of the Alpine Tree Frog population within the Fauna Guarantee Act 1988 and Commonwealth three sites are regularly monitored within the resort. The survey used the same sites targeted Environment Protection and Biodiversity resort, Mt Little Higginbotham and the east of Mt in a 2008 survey effort and added several new Conservation Act 1999. The resort and village Higginbotham, both above and below the Great locations. A total of 22 sites of artificial and natural area contain known habitat for a number of listed Alpine Road. The west Mt Higginbotham site in the water bodies were actively searched for adults and endangered species including the Mountain adjacent Alpine National Park is also monitored. In tadpoles, adults were identified at 13 of these sites. Pygmy-possum, Alpine Tree Frog and Alpine 2010, the east Mt Higginbotham site recorded the Tadpoles occurred at four sites, three with adults She-Oak Skink. We work to preserve threatened lowest population numbers in nearly 30 years of and one site without the presence of an adult. species and biodiversity through funding annual monitoring. While numbers have improved slightly, monitoring programs and environmental works the population estimates in November 2014 were ENVIRONMENTAL PROGRAMS
Ongoing programs to improve the condition of the cats and 3 foxes were removed using traps and forbs and shrubs was conducted at various sites alpine environment include revegetation of works shooting techniques. within Davenport Village to help delineate parking areas, general weed control within the village areas areas. The Cobungra Spoil site underwent further Environmental staff undertook weed control and and targeted control of invasive species across supplementary planting of 360 shrubs. We carried revegetation works at the batter created during the resort. out ongoing weed control during summer with the extension of Whitey’s car park. More than oxeye daisy, blackberry, English broom, apples and Monitoring of predator species using remote 5,400 grasses, forbs and shrubs were initially willows targeted. Staff members GPS the treated sensing cameras informs co-ordination of control planted, watered in and mulched with snow gum sites continually to build a database of control works. We continue to support the 1080-baiting chips sourced from the Hotham area. A further works. program in collaboration with Parks Victoria both 864 plants were put into this site in April and prior within the resort and the surrounding Alpine to snowfalls the site was thriving and putting on National Park. During the reporting period 13 good growth. Additional planting of 927 grasses, ENVIRONMENTAL EDUCATION
Environmental staff members value the of the captive breeding program. Tasmania waste staff at the recycle shed and a peek into the opportunity to share knowledge and experiences zerophilia berries, or mountain pepperbush was organics storage skips to see what really happens with interested school groups and the wider also collected and sent to the Victorian Alps to collected recycle and food waste. In addition, community. In March 2015 staff hosted a Nursery for propagation and eventual replanting in staff members make themselves available to community service morning with the students our revegetation sites. interested groups visiting Mount Hotham. A from The Alpine School to collect Pimelea number of talks were given to a range of groups, “Fairy Bread with the Garbos” was held again ligustrina (tall rice flower) seed. A favourite in the from primary school to TAFE students. during winter. Members of the community with diet of the Mountain Pygmy-possum, the seed is a focus on kids are annually invited to visit solid sent to Healesville Sanctuary for possum members
ANNUAL REPORT 2014/15 41 OUR ENVIRONMENT ON THE RIDGE
VICTORIAN ALPS NURSERY
The Victorian Alps Nursery propagates a large to Landcare/DELWP for an ongoing project at for the Ovens, Kiewa and Alpine areas. The forum variety of alpine and sub-alpine species for Reform Hill, Myrtleford and other projects around was attended by people from Wangaratta and rehabilitation and restoration projects at all major Bright; provision of plants to Tronoh Dredge Yackandandah through to Harrietville and was Victorian ski resorts, Mt Buffalo, Kosciuszko Committee for community works at Harrietville a great promotional vehicle to inform the local National Park and NSW National Parks. and the MHRMB for Whitey’s car park revegetation community of the work the nursery does. Specialising in the production and propagation of works at Mount Hotham; and provision of plants As a result of the growing profile of the Victorian alpine flora makes the nursery unique in Australia. and advise to the Australian National University Alps Nursery within the community there has Staff at the nursery can provide assistance to and Tawonga Zoo for studies and a breeding been increasing enquires and sales from local clients to obtain information on species and advise program related to the Mountain Katydid customers purchasing plants for garden, farm and on rehabilitation projects. (grasshopper). river restoration projects. In addition nursery staff Highlights for the year include propagation and In September 2015, a Native Seed Forum was attended two local markets for further exposure planting of 4000, trees, shrubs and grasses for held at the Ovens DELWP Conference Centre and sales of excess stock. With a lack of store beautification/revegetation works at Happy Valley focusing on seed collection and the importance of front for commercial operations, staff will look to Creek at Jubilee Park in Myrtleford funded by the having a seed bank. Guest speaker Owen Bassett, enhance the website to improve opportunities of Alpine Shire; provision of plants to establish native a forest scientist, discussed his studies around online sales by pre-arranged collection or postal alpine gardens at Tawonga Primary, Porepunkah Alpine Ash direct seeding projects post recent options within the coming year. Primary and Myrtleford High School funded by fires and toured the nursery informing staff the Community For Nature grants; provision of plants Victorian Alps Nursery holds the only seed bank
OUR STRATEGIC PARTNERSHIPS
The Board has been creating partnerships with MHRMB has enhanced communications with on mountain stakeholders along with surrounding stakeholders to create an open platform to help communities to build awareness of all activities build visitation to Mt Hotham for both winter and and open communication between us all. green season.
The Consultative Forum has created an During the year, Audi Australia with the Mt opportunity for major stakeholders, Dinner Plain Hotham Skiing Company and MHRMB formed a and Alpine Shire to communicate and share partnership in regard to advertising, signage and knowledge. The Forum meets three times a year to promotion within the resort and on the resort keep everyone up to date as to what is happening. digital platforms.
Discussions and agenda items: This partnership extended to an Audi Snow Drive • Master Plan update Experience to coincide with the launch of the new Audi Q7 – Quattro. This entailed daily flights, • Hotham Corsa event progress demonstration driving, lunch, and snow activities • Hotham Central pedestrian safety project for up to 40 guests of Audi Australia. • Motor Neuron Disease Fundraiser • Tracks and Trails for Mt Hotham, Dinner Plain, Harrietville and Falls Creek • Destination Action Plan meetings with Tourism North East for both summer and winter
42 MT HOTHAM RESORT MANAGEMENT BOARD OUR CORPORATE GOVERNANCE
INFORMATION AND COMMUNICATION SYSTEMS Effective information systems are vital in operating a modern and efficient resort. Our information technology function includes: • Communication systems including voice, data and internet, • Electronic data storage and backup, • Information system software, hardware maintenance and upgrades, • General system controls, • Data security, and • Mobile systems management.
SYSTEM DOWNTIME All systems operated with sufficient back-ups, maintenance and service routines to enable a 100 per cent operating capability throughout the year.
EMERGENCY MANAGEMENT
MHRMB’s Municipal Emergency Management of the municipal response to an aircraft crash Plan (MEMP), as required under the Emergency landing, in which MHRMB staff participated. Management Act 1986, continues to meet the needs of the Mt Hotham community. The resort MUNICIPAL FIRE MANAGEMENT PLAN Municipal Emergency Management Committee Mt Hotham Municipal Fire Management Planning (Committee) conducts formal meetings Committee (MFMPC) was formally established twice a year and assists with the planning and in 2011. It is a subcommittee of the MEMP its coordination of emergency services for response terms of reference are based on Part 6A of the and recovery within the resort. The Committee Emergency Management Manual of Victoria. comprises MHRMB staff, Victoria Police, Victorian Members are: MHRMB, CFA, DELWP and Parks State Emergency Service (SES), CFA, DHHS, Victoria. resort stakeholders and other agencies as required. The Committee has a Memorandum The Resort’s Municipal Fire Management Plan of Understanding with the Alpine Shire (Dinner (MFMP) was developed through the risk-based Plain) and Mt Hotham Airport for the sharing of planning process described by ISO 3100: 2009 resources for during an emergency. Risk Management – Principles and Guidelines. As a subset of the MFMP, the Community Bushfire Committee members reviewed and reprioritised Emergency Management Plan (BEMP) draws on major emergency risks in line with the new the risk assessment and risk analysis process Community Emergency Risk Assessment already undertaken through the broader fire Guidelines facilitated by the SES. The application management planning process. of the MEMP was also tested during 2014/2015. The Mount Hotham Airport conducted a field test
ANNUAL REPORT 2014/15 43 OUR CORPORATE GOVERNANCE
COMMUNITY AREAS
ACCESS AND DIVERSITY INDIGENOUS line with the government’s multicultural policy. a merit-based selection process. We are also AFFAIRS Visitor welfare has been further enhanced with the committed to facilitate balance between work MHRMB is committed to working closely with introduction of Hindi and Mandarin versions of the and family responsibilities for all employees. This the local Indigenous community in developing Mount Hotham Village Guide. is consistent with the government’s Office of partnerships to achieve Aboriginal aspirations for Women’s Policy. land, culture, heritage, family and community. We DISABLED VISITORS liaise with various leaders and councils in both In collaboration with Disabled Wintersport YOUTH capital works and planning projects within the Australia (DWA) the resort has increased visitor MHRMB employs a work experience youth as resort. There is also an opportunity to explore access with the production of a village guide the opportunity arises and actively encourages the development of Indigenous cultural tourism specifically for disabled users, the increase of participation by the Alpine Leadership School. through interpretation of walks and sites. We look disabled parking facilities, and the purchase of a We also provide regular environmental and safety forward to working closely with the Mt Hotham modern wheelchair-friendly VW transporter for student talks throughout the winter season. We Indigenous community on our future projects. on-mountain use. These initiatives resulted in a seek trade-based apprentices in line with the fivefold increase in visitation by disabled visitors government’s vision for young people. CULTURAL DIVERSITY during the 2015 season. MHRMB has maintained the signage systems, RECORDS MANAGEMENT which use graphic symbols to advise resort WOMEN MHRMB is committed to cataloguing and filing users of important features about resort use. Our executive management team has a gender records according to the Public Records Act 1973. This has been particularly appropriate in alerting balance of 50 per cent female and 50 per cent non-English speaking visitors to the existence male. We are committed to providing equal of safety hazards and to any limitations on the opportunity advancement for all employees use of particular areas within the resort and is in and have adopted a recruitment structure on
RISK MANAGEMENT
RISK MANAGEMENT POLICY Outcomes of the review highlighted the safety and Risk Subcommittee verifies this assurance Our aim is to ensure visitors and staff members of visitors in the hazardous alpine environment and that the risk profile of the MHRMB has been have a safe and enjoyable experience. We do this along with other risk areas in regard to water critically reviewed within the last 12 months. by providing operational services including fleet supply, treatment of waste products, bush fires management and maintenance, transport, car and management information systems. The risk parking and traffic control, snow clearing, cross management plan is also being incorporated into country and ski field safety, public amenities, the annual financial reporting process to ensure Deborah Spring | Chairperson visitor safety, resort entry, snow play, insurance adequate resources are allocated and prioritised Mount Hotham Resort Management Board (public liability) and plant/vehicle workshops. for the secure management of the resort. 31st October 2015 The Audit and Risk Subcommittee has endorsed I, Jon Hutchins certify that the Mt Hotham Resort RISK MANAGEMENT REVIEW the risk management program for the Chair’s Management Board has complied with Ministerial attestation in this annual report of operations. Direction 4.5.5.1—Insurance. The Audit and Risk Subcommittee has initiated a full review of the Risk Management Framework I, Deborah Spring certify that Mt Hotham during the year and as a result management are Resort Management Board (MHRMB) has risk taking actions to ensure that the practices of risk management processes in place consistent with identification and management are consistent with the Australian/New Zealand Risk Management Australian/New Zealand Standard ISO 31000- Standard AS/NZS ISO 31000-2009 and an Jon Hutchins | Chief Executive Officer 2009. internal control system is in place that enables Mount Hotham Resort Management Board the executive to understand, manage and 31st October 2015 satisfactorily control risk exposures. The Audit
44 MT HOTHAM RESORT MANAGEMENT BOARD STATUTORY REPORTING
CORPORATE PLAN e. May do and suffer all acts and things that a • To collect fees prescribed by the regulations Section 53 of the Alpine Resorts (Management) body corporate may by law do or suffer. for the resort; Act 1997 requires MHRMB to prepare an annual S.35 of the Alpine Resorts (Management) Act 1997: • To attract investment for the improvement of Corporate Plan. The Minister must approve the In carrying out its functions and powers, each the resort; and Corporate Plan each year. Board acts on behalf of the Crown. • To carry out any other function conferred on The Corporate Plan must include: the Board by this or any other Act. 1. A statement of corporate intent in accordance SECTION 38 OF THE ALPINE RESORTS with Section 54 of the Act; (MANAGEMENT) ACT 1997 SPECIFIES THE FAIR TRADING ACT FUNCTIONS OF THE BOARD: 2. A Business Plan containing the information From 1st June 2004 new regulations under the Fair required by the Minister; • To plan for the development, promotion, Trading Act 1999 came into effect. management and use, of each such alpine 3. Estimates of the receipts and expenditure of The Fair Trading (Recreational Services) Regulations resort in accordance with the object of the Act, the Board for the period of the plan. 2004 make it possible for suppliers of recreational • To develop and promote or facilitate the services to obtain consent from customers to The Business Plan is also developed on an annual development or promotion by others of the use waive their rights under the Act, including their basis to specify objectives and to measure the of each such alpine resort in accordance with right to take legal action against the supplier if they performance of the organisation against the the object of the Act, die or are injured while using the services. objectives identified within the plan. Our Corporate • To manage each such alpine resort in Plan is structured on a set of core responsibilities: In compliance with the Fair Trading (Recreational accordance with the object of the Act; • Our Customer and Community Focus; Services) Regulations 2004 MHRMB has installed • To contribute to the development of the Alpine warning signs at both resort entry gates to alert • Our Year Round Resort; Resorts Strategic Plan and other strategic visitors to the fact that they are being asked to • Our Services; planning for alpine resorts as a whole; agree to waive their rights under the Fair Trading • Our Developer Services; • To undertake research into alpine resort Act 1999. • Our Environment of the Ridge; issues; • Our Strategic Partnerships; and • To contribute to and support the operation of PRIVACY ACT 1988 (COMMONWEALTH) the Council; • Our Corporate Governance. The Federal Government introduced the Privacy • To prepare and implement a Strategic (Private Sector) Amendment Act 2000, which Management Plan for the resort; amends the Privacy Act 1988 (Commonwealth). OBLIGATIONS OF THE BOARD • To expend or apply revenue of the Board in The main aim of this legislation, which came into As a Committee of Management under the Crown accordance with a direction of the Minister effect on 21st December 2001, is to give more Lands (Reserves) Act 1978, we have obligations to under section 36(1A); control over the way private organisations collect, manage the land in accordance with the purpose use, disclose and store information. for which the land has been reserved and may • To manage the Crown land in Mt Hotham by exercise the powers conferred to Committees of acting as a Committee of Management under MHRMB prides itself in handling personal Management under that Act. the Crown Land (Reserves) Act 1978; information with extreme care and diligence. In • To contribute, together with Tourism Victoria, order to comply with the Privacy (Private Sector) MHRMB’s obligations under the Alpine Resorts established under the Tourism Victoria Act Amendment Act, we have adopted the MHRMB (Management) Act 1997 are to discharge its 1992, and the Council, to the overall promotion Privacy Policy. functions effectively and efficiently. of alpine resorts; Additionally; - section 34(7) imparts to the Board • To develop a tourism and marketing strategy NATIONAL COMPETITION POLICY the following attributes and authorities: and to promote the resort; Competitive neutrality seeks to enable a. Is a body corporate with perpetual succession; • To provide services in the nature of: garbage fair competition between government and and disposal, water supply, gas, drainage, private sector businesses. Any advantages or b. Has a common seal; and sewerage, electricity, roads, fire protection, disadvantages that government businesses may snowmaking, transport for the resort and experience, simply as a result of government c. May sue and be sued in its corporate name; to charge user pays contributions for the ownership, should be neutralised. MHRMB and provision of those services; continues to implement and apply this principle in d. May acquire hold and dispose of real and its business undertakings. personal property; and
ANNUAL REPORT 2014/15 45 OUR CORPORATE GOVERNANCE
We are one of five independent alpine resort RELEVANT INFORMATION Protected disclosure contacts management boards within Victoria. We have The following is retained by the accountable officer Mt Hotham Resort Management Board (MHRMB) established our own pricing regime within the ceiling and is available to the relevant Minister, Members Jenny Molloy - General Manager prescribed by the Alpine Resort (Management) of Parliament and the public on request: PO Box 188, Bright 3741 Regulations 2009. MHRMB, as the independent Ph: 03 5759 3550 manager of the resort’s assets, purchases FRD 22E Statement of Availability of other Fax: 03 5759 3693 services and goods in line with Government information: Email: [email protected] Board Purchasing guidelines. We comply with the • Statement declaring pecuniary interests Independent Broad-Based Anti-Corruption Government’s National Competition Policy. completed by all relevant officers; Commission (IBAC) Victoria • Details of publications produced and where Level 1, North Tower, 459 Collins Street, VICTORIAN INDUSTRY PARTICIPATION available; Melbourne Victoria 3001 POLICY (VIPP) • Details of changes in prices, fees, charges, GPO Box 24234, Melbourne Victoria 3000 The VIPP was established in 2001 to actively rates and levies; www.ibac.vic.gov.au encourage greater local industry participation • Details of any major external reviews; Ph: 1300 735 135 in major Victorian Government procurement Email: see the website above for the secure • Details of major research and development contracts, projects and infrastructure, investment email disclosure process, which also provides for activities; attraction and community facilities grants. anonymous disclosures. • Details of overseas visits; The Victorian Industry Participation Policy Act 2003 • Details of major promotional, public relations (VIPP Act) was introduced in October 2003. Under DISCLOSURES UNDER THE PROTECTED and marketing activities; the Act, MHRMB implements policies to tenders DISCLOSURE ACT 2012 over $1 million as required for Regional Victoria. • Details of assessments and measures In 2014-15 no disclosures were received. The Minister for Manufacturing Exports and Trade undertaken to improve occupational health and safety of employees; is responsible for introducing the strengthened DATAVIC ACCESS POLICY VIPP, which took effect from 1st July 2009. There • General statement on industrial relations and In August 2012 the Victorian Government released was one contract that commenced in 2013/14 details of time lost through industrial accidents the DataVic Access Policy, which enables the that met the regional threshold of over $1 million. and disputes; and sharing of government data at no, or minimal, cost A VIPP Plan was not required due to nil to limited • Major committees sponsored, purposes of to users. Government data from all agencies will contestability. The local content is 90 per cent. committees and achievements. be progressively supplied in a machine-readable format that will minimise access costs and FREEDOM OF INFORMATION HOW TO MAKE A ‘PROTECTED maximise use and reuse. MHRMB is considered to be a ‘Government DISCLOSURE’ Agency’ under the terms of the Freedom of MHRMB is committed to the aims and objectives Information Act 1982. Accordingly, it is required of the Act and values integrity and accountability to comply with the procedures that have been in its administrative and management practices. prescribed under which members of the public We fully support the processes of disclosure that may gain access to information held by agencies. reveal corrupt conduct, mismanagement of public A decision to release information is made by resources or conduct involving a substantial risk to either the principal officer or an authorised officer. public health and safety, or the environment. An application fee of $26.50 applies at the time You can make a protected disclosure about of publication. MHRMB has determined that the MHRMB, its Board members, officers or Authorised Officer for the resort is the General employees by contacting the MHRMB Protected Manager. Disclosure Coordinator, DELWP or IBAC on the Freedom of Information Officer contact details provided below. Ms Jenny Molloy PO Box 188, Bright 3741 Ph: 03 5759 3550 Fax: 03 5759 3693 Email: [email protected]
46 MT HOTHAM RESORT MANAGEMENT BOARD INDEPENDENT AUDITOR’S REPORT
ANNUAL REPORT 2014/15 47 INDEPENDENT AUDITOR’S REPORT
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48 MT HOTHAM RESORT MANAGEMENT BOARD FINANCIALS
Mt Hotham Alpine Resort Management Board
COMPREHENSIVE OPERATING STATEMENT FOR THE YEAR ENDED 31 OCTOBER 2015
Note 2015 2014 CONTINUING OPERATIONS $ $
INCOME FROM TRANSACTIONS Government Contributions 2 74,239 59,951 Site rental 1,307,329 1,291,433 Service charges 4,343,392 4,193,066 Transport Contribution 133,154 130,002 Gas trading operations 1,107,706 1,386,981 Gate entry 2,731,048 2,665,100 Horticultural supplies 111,999 106,675 Interest 185,435 163,051 Other Revenue 2 723,960 845,058 Total income from transactions 10,718,262 10,841,317
EXPENSES FROM TRANSACTIONS Infrastructure services 2,259,531 2,533,283 Village operations 1,727,767 1,601,947 Visitor services 974,595 830,658 Administration 3,199,954 3,024,530 Marketing 484,826 327,443 Board costs 146,907 132,317 Depreciation 1,372,785 1,233,267 Interest Expense 104,733 110,127 Total expenses from transactions 3 10,271,099 9,793,572
Net result from transactions (net operating balance) 447,164 1,047,745
OTHER ECONOMIC FLOWS INCLUDED IN NET RESULT Net gain/(loss) on non financial assets 68,764 36,332 Net gain/(loss) arising from revaluation of long service liability (i) (19,382) (51,185) Total other economic flows included in net result 49,382 (14,853)
Net result from continuing operations 496,546 1,032,892
Other economic flows - other comprehensive income - -
Total other economic flows - other comprehensive income 496,546 1,032,892
COMPREHENSIVE RESULT 496,546 1,032,892
(i) Revaluation gain/(loss)due to changes in bond rates. The above Comprehensive Operating Statement should be read in conjunction with the notes to the financial statements.
ANNUAL REPORT 2014/15 49 FINANCIALS
Mt Hotham Alpine Resort Management Board
BALANCE SHEET AS AT 31 OCTOBER 2015
Note 2015 2014 ASSETS $ $
FINANCIAL ASSETS Cash and Cash Equivalents 4,19 2,038,019 6,356,883 Receivables 5,19 697,913 902,181 Other Financial Assets 6,19 4,300,000 3,300,000 Total Financial Assets 7,035,931 10,559,064
NON FINANCIAL ASSETS Inventories 7 95,241 155,074 Prepayments (Current) 238,993 245,821 Property, Plant & Equipment 8 81,295,639 77,483,040 Total Non Financial Assets 81,629,872 77,883,935
TOTAL ASSETS 88,665,803 88,442,999
LIABILITIES Payables 9,19 922,593 1,057,917 Borrowings 10,19 1,544,880 1,629,551 Provisions 11 820,525 874,270 TOTAL LIABILITIES 3,287,997 3,561,738
NET ASSETS 85,377,806 84,881,261
EQUITY Accumulated surplus/(deficit) 8,745,284 8,248,739 Physical Asset Revaluation Surplus 36,785,194 36,785,194 Contributions by Owner 39,847,328 39,847,328
NET WORTH 85,377,806 84,881,261
Capital and forward Commitments 13 Contingent assets and contingent liabilities 14
The above Balance Sheet should be read in conjunction with the notes to the financial statements.
50 MT HOTHAM RESORT MANAGEMENT BOARD Mt Hotham Alpine Resort Management Board
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 OCTOBER 2015
Physical Asset Accumulated Contributions Total Revaluation Surplus Surplus by Owner
Balance at 1 November 2013 36,785,194 7,215,847 32,866,328 76,867,369
Contributions or Transfers by Owners 6,981,000 6,981,000 Net result for the year - 1,032,892 1,032,892
Balance at 31 October 2014 36,785,194 8,248,739 39,847,328 84,881,261
Contributions or Transfers by Owners - - - Net result for the year - 496,546 - 496,546
Balance at 31 October 2015 36,785,194 8,745,284 39,847,328 85,377,806
The above Statement of Changes in Equity should be read in conjunction with the notes to the financial statements.
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 OCTOBER 2015
Note 2015 2014 $ $ CASH FLOWS FROM OPERATING ACTIVITIES Receipts from Government 74,239 35,020 Receipts from customers and other entities 10,662,857 10,499,534 Payments to suppliers and employees (8,970,172) (8,111,269) Net GST received/(payable) 34,802 (81,092) Interest received 185,435 161,356 Interest paid (104,733) (111,088)
Net Cash provided by Operating Activities 12 1,882,428 2,392,460
CASH FLOWS FROM INVESTING ACTIVITIES Cash invested in Term Deposits (1,000,000) (2,500,000) Payments for non-financial assets (5,191,637) (3,343,452) Proceeds from sale of non-financial assets 75,017 36,332
Net Cash used in Investing Activities (6,116,621) (5,807,120)
CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from Capital contributions - 6,981,000 Repayment of Borrowings from Treasury Corporation Victoria (84,671) (74,956)
Net Cash (used in)/provided by Financing Activities (84,671) 6,906,044
Net Increase/(Decrease) in Cash Held (4,318,865) 3,491,384
Cash at the beginning of the Financial Year 6,356,883 2,865,499
CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR 4 2,038,019 6,356,883
The above Cash Flow Statement should be read in conjunction with the notes to the financial statements.
ANNUAL REPORT 2014/15 51 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2015
NOTE 1 SUMMARY OF SIGNIFICANT for issue by the Chairperson of Mount Hotham provisions based on likely tenure of existing ACCOUNTING POLICIES Resort Management Board on 11th December staff, patterns of leave claims, future salary Mount Hotham Alpine Resort Management 2015. movements and future discount rates (Refer Note 1(j)); and Board (MHRMB) is constituted under the Alpine In the determination of whether an asset or liability Resorts (Management) Act 1997 and has its is financial or non-financial, consideration is given - The value of infringement revenues in principal place of business located at Mount to the extent of the asset’s ability to be converted particular the amounts likely to be collected in Hotham, Victoria, Australia. into liquid (cash) funds. future periods and the amounts to be provided for under the bad debt provision (Refer Note These annual financial statements represent the Under the AASs, there are requirements that apply 1(h)). audited general-purpose financial statements for specifically to not-for-profit entities that are not These financial statements are presented in the Mount Hotham Alpine Resort Management consistent with IFRS requirements. Board for the year ending 31st October 2015. Australian dollars and prepared in accordance with The purpose of the report is to provide users the historical cost convention except for: b) BASIS OF ACCOUNTING PREPARATION with information about MHRMB’s stewardship of - Non-financial physical assets which, AND MEASUREMENT resources entrusted to it. subsequent to acquisition, are measured at a The accrual basis of accounting has been applied re-valued amount being their fair value at the The reporting period covered in the financial in the preparation of these financial statements date of the revaluation less any subsequent statements is 1st November 2014 to 31st October whereby assets, liabilities, equity, income and accumulated depreciation and subsequent 2015. expenses are recognised in the reporting period impairment losses. Revaluations are made with to which they relate, regardless of when cash is sufficient regularity to ensure that the carrying a) STATEMENT OF COMPLIANCE received or paid. amounts do not materially differ from their fair These general financial statements have been Judgements, estimates and assumptions are value. prepared in accordance with the Financial required to be made about the carrying value of The accounting policies set out below have been Management Act 1994 (FMA) and applicable assets and liabilities, income and expenses that applied in preparing the financial statements Australian Accounting Standards (AAS) which are not readily apparent from other sources. for the year ended 31st October 2015 and the include Interpretations, issued by the Australian The estimates and associated assumptions are comparative information presented for the year Accounting Standards Board (AASB). In particular, based on professional judgements derived from ended 31st October 2014. they are presented in a manner consistent with historical experience and various other factors AASB 13 Fair Value Measurement the requirements of the AASB 1049 Whole of that are believed to be reasonable under the Government and General Government Sector circumstances. Actual results may differ from Consistent with AASB 13 Fair Value Measurement, Financial Reporting. these estimates. the MHRMB determines the policies and procedures for both recurring fair value Where applicable, those AAS paragraphs Revisions to accounting estimates are recognised measurements such as property, plant and applicable to not-for-profit entities have been in the period in which the estimate is revised and equipment and financial instruments and for applied. also in future periods that are affected by the non-recurring fair value measurements such as Accounting policies are selected and applied in a revision. Judgements and assumptions made by non-financial physical assets classified as held for manner, which ensures that the resulting financial management in the application of AASs that have sale, in accordance with the requirements of AASB information satisfies the concepts of relevance significant effects on the financial statements and 13 and the relevant Financial Reporting Directions. and reliability, thereby ensuring that the substance estimates relate to: All assets and liabilities for which fair value is of the underlying transactions or other events is - The fair value of land, buildings, infrastructure, measured or disclosed in the financial statements reported. plant and equipment (Refer Note 1(i)) are categorised within the fair value hierarchy, These annual financial statements were authorised - Actuarial assumptions for employee benefit
52 MT HOTHAM RESORT MANAGEMENT BOARD b) BASIS OF ACCOUNTING PREPARATION c) REPORTING ENTITY and non-financial assets. AND MEASUREMENT CON’T The financial statements cover the Mount Hotham Current and non-current assets and liabilities described as follows, based on the lowest Resort Management Board (MHRMB) as an in (non-current being those assets or liabilities level input that is significant to the fair value individual reporting entity. expected to be recovered or settled more than 12 measurement as a whole: The MHRMB is an entity established under the months) are disclosed in the notes, where relevant. • Level 1 — Quoted (unadjusted) market prices in Alpine Resorts (Management) Act 1997. The net result is equivalent to profit or loss derived active markets for identical assets or liabilities Its principal address is: in accordance with AASs. • Level 2 — Valuation techniques for which the Mount Hotham Resort Management Board Cash flow statement lowest level input that is significant to the fair Great Alpine Road Cash flows are classified according to whether value measurement is directly or indirectly Mount Hotham VIC 3741 observable; and or not they arise from operating, investing, or MHRMB is a public body acting on behalf of financing activities. This classification is consistent • Level 3 — Valuation techniques for which the the Crown, and reporting to the Department of with requirements under AASB 107 Statement of lowest level input that is significant to the fair Environment, Land, Water and Planning (DELWP). cash flows. value measurement is unobservable. A description of the nature of the MHRMB’s Statement of changes in equity For the purpose of fair value disclosures, the operations and its principal activities is included MHRMB has determined classes of assets and The statement of changes in equity presents in the nature and scope of activities on page liabilities on the basis of the nature, characteristics reconciliations of non-owner and owner changes 12, which does not form part of these financial and risks of the asset or liability and the level of the in equity from opening balances at the beginning statements. fair value hierarchy as explained above. of the reporting period to the closing balance at the end of the reporting period. It also shows In addition, the MHRMB determines whether d) SCOPE AND PRESENTATION OF separately changes due to amounts recognised in transfers have occurred between levels in the FINANCIAL STATEMENTS the ‘comprehensive result’ and amounts related hierarchy by re-assessing categorisation (based to ‘transaction with owners in the capacity as Comprehensive operating statement on the lowest level input that is significant to the owners’. fair value measurement as a whole) at the end of The comprehensive operating statement each reporting period. comprises three components, being ‘net result Rounding of amounts from transactions’ (or termed as ‘net operating Amounts in the financial statements (including the The Valuer-General Victoria (VGV) is the MHRMB’s balance’), ‘other economic flows included in net notes) have been rounded to the nearest dollar, independent valuation agency. result’, as well as ‘other economic flows – other unless otherwise stated. Figures in the financial MHRMB, in conjunction with VGV, monitors comprehensive income’. The sum of the former statements may not equate due to rounding. changes in the fair value of each asset through two, together with the net result from discontinued relevant data sources to determine whether operations, represents the net result. e) INCOME FROM TRANSACTIONS revaluation is required. The net result is equivalent to profit or loss derived Income is recognised in accordance with AASB A fair value assessment is conducted annually in accordance with AASs. 118 Revenue. Income is recognised as revenue to to ensure that property, plant and equipment the extent that it is probable that the economic ‘Other economic flows’ are changes arising from reflects the fair value at the end of the year. The benefits will flow to the entity and the income can market measurements. They include: assessment considers all fair value indicators, be reliably measured at fair value. including land and building indices, the highest and • Gains and losses from disposals of non- Grants best use indicators and other relevant indicators. financial assets; and • Revaluations and impairments of non-financial Income from grants (other than contribution by In the event that the assessment triggers a change physical and intangible assets. owners) is recognised when the MHRMB obtains in value, adjustments are made to reflect the fair control over the contribution. MHRMB is deemed value of the asset. This classification is consistent with the whole of to have assumed control when the grant is government reporting format and is allowed under MHRMB has assessed Accounting Standard receivable or received. AASB 101 Presentation of Financial Statements. 2015-7 Amendments to Australian Accounting Standards – Fair Value Disclosures of Not-For- Balance sheet Profit Public Sector Entities and have decided to Assets and liabilities are presented in liquidity early adopt the reduced disclosure requirements. order with assets aggregated into financial assets
ANNUAL REPORT 2014/15 53 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2015
e) INCOME FROM TRANSACTIONS CON’T f) EXPENSES FROM TRANSACTIONS Depreciation rates currently applied to each class of asset are as follows: Contributions Expenses from transactions are recognised as they are incurred, and reported in the financial Any grants and contributions received from the Buildings 1.67%- 20% year to which they relate. Victorian Government that are deemed as being in Community and Village the nature of owner’s contributions are accounted Employee Expenses Infrastructure 1.25%- 20% for as Equity - Contributed Capital in accordance Refer to Note 3 regarding employee benefits. with FRD119A Transfers Through Contributed Roads and car parks 1.25%- 10% These expenses include all costs related to Capital. Water 1%- 30% employment (other than superannuation which Rendering of Services is accounted for separately) including wages and Sewerage 1.25%- 5 % Site rental is recognised under the terms and salaries, fringe benefits tax, leave entitlements, Gas 2%-6.67% conditions of each lease and in accordance with redundancy payments and WorkCover premiums. the MHRMB’s role as a Committee of Management Plant, Equipment and Motor Vehicles 5%- 50% Superannuation of any Crown Land deemed to be permanently The amount recognised in the comprehensive reserved under the Crown Lands Reserve Act 1978. The above rates for buildings, community and operating statement is the employer contributions village infrastructure, roads and car parks, water, Service Charge revenue is brought to account for members of both defined benefit and defined sewerage, gas and plant and equipment assets when a rate/tariff is levied or determined for contribution superannuation plans that are paid or have remained unchanged from the previous service charges leviable under Section 13 of the payable during the reporting period. Alpine Resorts (Management) Act 1997. year, however rates been updated to reflect the MHRMB does not recognise any defined benefit additional classification of assets. Gate entry revenue (including from the sale of liability in respect of the plan(s) because the entity Interest Expense season passes) is recognised when received and has no legal or constructive obligation to pay when the entitlement is in the current financial future benefits relating to its employees; its only Interest expenses are recognised as expenses in year. Season pass receipts received for an obligation is to pay superannuation contributions the period in which they are incurred. entitlement to resort entry in current and/or as they fall due. The Department of Treasury and Other operating expenses subsequent financial years are proportioned to the Finance discloses the State’s defined benefit Other operating expenses generally represent year of entitlement. liabilities in its disclosure for administered items. the day-to-day running costs incurred in normal Gas revenue is recognised when LPG has Depreciation operations and include: physically been delivered through a meter and All infrastructure assets, buildings, plant and the meter is read, invoiced to the customer and Supplies and services equipment and other non-financial physical assets collectability is reasonably assured and revenue Supplies and services costs which are recognised (excluding assets held for sale and land) that have can be measured reliably. as an expense in the reporting period in which finite useful lives are depreciated. Depreciation they are incurred. The carrying amounts of any Interest revenue is recognised using the effective is generally calculated on a straight-line basis, inventories held for distribution are expensed interest method, which allocates the interest over at rates that allocate the asset’s value, less any when distributed. the relevant period. estimated residual value, over its estimated useful life. Bad and doubtful debts Revenue from the sale of rights to lease and develop Crown Land is recognised upon granting The estimated useful lives, residual values and Refer to Note 1(h) for further description of Bad the right to commence works from MHRMB, or depreciation method are reviewed at the end of and doubtful debts. on the execution of a contract of sale, following each annual reporting period, and adjustments approval by the Minister of Environment, Land, made where appropriate. Water and Planning, whichever occurs first. Depreciation begins when the asset is available for Infringement notices are recognised as revenue use, that is, when it is in the location and condition when the penalty has been imposed. necessary for it to be capable of operating in the manner intended by management.
54 MT HOTHAM RESORT MANAGEMENT BOARD g) OTHER ECONOMIC FLOWS INCLUDED h) FINANCIAL ASSETS there is objective evidence that the debts may IN THE NET RESULT not be collected and bad debts written off when Cash and cash equivalents Other economic flows measure the change in identified. Cash and deposits recognised on the balance volume or value of assets or liabilities that do not A provision for doubtful debts is recognised when sheet comprise cash on hand and cash at bank, result from transactions. collection in full for Infringement penalties is no deposits at call and those highly liquid investments longer probable. Net gain/(loss) on non-financial assets (with an original maturity of three months or Net gain/(loss) on non-financial assets and less), which are held for the purpose of meeting A provision is made for any doubtful debts, liabilities includes realised and unrealised gains short term cash commitments rather than for based on a review of all outstanding receivables and losses as follows: investment purposes, and readily convertible to at balance date. Bad debts are written off in known amounts of cash with an insignificant risk of the period in which they are identified. MHRMB Revaluation gains/(losses) of non-financial changes in value. considered that an $88,919 provision was physical assets necessary for bad or doubtful debts as at 31st Refer to Note 1(i) Revaluations of non-financial Receivables October 2015 (2014: $72,398). physical assets. Receivables consist of;
Net gain/(loss) on disposal of non-financial - Contractual receivables, which include mainly i) NON-FINANCIAL ASSETS assets debtors in relation to goods and services and accrued investment income; and Inventories Any gain or loss on the sale of non-financial Inventories comprise goods for resale and goods assets is recognised at the date of disposal and is - Statutory receivables, which include for use. All inventories are valued at the lower of determined after deducting from the proceeds the predominantly amounts owing from the cost and net realisable value. carrying value of the asset at that time. Victorian Government and GST input tax credits recoverable. Goods for resale - comprise goods procured or Impairment of non-financial assets developed for resale and include LPG gas and Debtors are carried at amounts due. Where All assets are assessed annually for indications of horticultural products. necessary, interest is charged on overdue debts impairment, except for: in accordance with the Penalty Interest Rates Act Goods for use - comprise goods procured or • Financial assets 1983 or in accordance with relevant legislation stored for use in operations and include diesel and • Inventories and/or lease terms. unleaded fuel.
• Non-financial physical assets held for sale MHRMB’s stated terms in respect of amounts Property, Plant and Equipment receivable are payment in full within 30 days. If there is an indication of impairment, the assets Acquisition concerned are tested as to whether their carrying Bad and Doubtful Debts Property, plant and equipment include land, value exceeds their recoverable amount. Where Receivables are subject to impairment testing as buildings, roads and car parks, community and an asset’s carrying value exceeds its recoverable described below. village infrastructure, water, sewerage, gas, plant, amount, the difference is written-off as another equipment, furniture and motor vehicles. Items economic flow, except to the extent that the At the end of each reporting period, MHRMB with a cost or value in excess of $1,000 and a write-down can be debited to an asset revaluation assesses whether there is objective evidence that useful life to MHRMB of more than one year are surplus amount applicable to that class of asset. a financial asset or group of financial assets is capitalised. All other assets acquired are expensed. impaired. All financial instrument assets, except If there is an indication that there has been a those measured at fair value through profit or loss, All non financial physical assets are measured change in the estimate of an asset’s recoverable are subject to annual review for impairment. initially at cost and subsequently re-valued at amount since the last impairment loss was fair value less accumulated depreciation and recognised, the carrying amount shall be increased Receivables are assessed for bad and doubtful impairment. Where an asset is acquired for no or to its recoverable amount. The impairment loss debts on a regular basis. Those bad debts nominal cost, the cost is its fair value at the date of is reversed only to the extent that the asset’s considered as written off by mutual consent are acquisition. carrying amount does not exceed the carrying classified as a transaction expense. Bad debts not amount that would have been determined, net of written off by mutual consent and the allowance The cost of constructed non-financial physical depreciation or amortisation, if no impairment loss for doubtful receivables are classified as other assets includes the cost of all materials used in had been recognised in prior years. economic flows in the net result. construction, direct labour on the project, and an appropriate proportion of variable and fixed A provision for doubtful debts is recognised when overheads.
ANNUAL REPORT 2014/15 55 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2015
i) NON-FINANCIAL ASSETS CON’T individual assets in a class of property, plant and j) LIABILITIES equipment, are offset against one another in that Valuation of Property, Plant and equipment Payables class but are not offset in respect of assets in Non financial physical assets are measured at fair different classes. The asset revaluation surplus Payables consist of: value on a cyclical basis, in accordance with the is not transferred to accumulated funds on - Contractual payables, such as accounts Financial Reporting Directions (FRDs) issued by derecognition of the relevant asset. payable and unearned income including the Minister for Finance. A full revaluation normally deferred income from concession Valuation of Land occurs every five years, based upon the asset’s arrangements. Accounts payable represent government purpose classification but may occur MHRMB undertook a revaluation of its land liabilities for good and services provided to more frequently if fair value assessments indicate assets for 31st October 2011 using the ‘fair MHRMB prior to the end of the financial year material changes in values. Independent valuers value’ methodology. The Valuer-General Victoria that are unpaid, and arise when MHRMB are generally used to conduct these scheduled performed the revaluation. Under fair value the becomes obliged to make future payments in revaluations. Certain infrastructure assets are MHRMB’s interest in the Crown’s leasehold land respect of the purchase of those goods and re-valued using specialised advisors. Any interim is measured based on a direct market comparison services; and approach, whereby the subject properties are revaluations are determined in accordance with - Statutory payables, such as goods and services compared to recent land sales. Broad area land the requirements of the FRDs. tax and fringe benefits tax payables. values have been applied to the other values areas Revaluation increases or decreases arise from of MHRMB’s controlled area based on comparable Contractual payables are classified as financial differences between an asset’s carrying value and sales evidence methodology. The addition of these instruments and categorised as financial liabilities fair value. represents the fair value of the land assets under at amortised cost (Refer Note 1 (k)). Statutory payables are recognised and measured similarly The most recent valuation was undertaken as MHRMB’s control. The figures do not include any to contractual payables, but are not classified at 31st October 2011. The fair value of buildings, improvement values. as financial instruments and not included in the roads and infrastructure has been determined by Sale of Property, Plant and Equipment category of financial liabilities at amortised cost, reference to the assets depreciated replacement Any gain or loss on the disposal of non financial because they do not arise from a contract. cost recognising the residual value apparent in the assets is recognised at the date of disposal and valuation. Borrowings is the difference between the proceeds and the Net revaluation increases (where the carrying carrying value of the asset at the time. All interest bearing liabilities are initially measured amount of a class of assets is increased as a result at fair value of the consideration received, For the accounting policy on impairment of non- of a revaluation) are recognised in ‘other economic being the cost of the borrowings, net of directly financial physical assets, refer to impairment of flows – other comprehensive income’, and attributable transaction costs. The measurement non-financial assets under Note 1(g). accumulated in equity under the asset revaluation basis subsequent to initial recognition depends surplus. However, the net revaluation increase is More details about the valuation techniques and on whether MHRMB has categorised its interest- recognised in the net result to the extent that it inputs used in determining the fair value of non- bearing liabilities as either financial liabilities reverses a net revaluation decrease in respect of financial physical assets are discussed in Note 8.2 designated at fair value through profit or loss, or the same class of property, plant and equipment Property, Plant and Equipment. financial liabilities at amortised costs. previously recognised as an expense (other In MHRMB’s view, asset values do not exceed Subsequent to initial recognition, borrowings are economic flows) in the net result. their recoverable amount from their continued measured at amortised cost with any difference Net revaluation decrease is recognised in ‘other use and their subsequent disposal and as such, between the initial recognised amount and the economic flows – other comprehensive income’ to no adjustment to these values was made in the redemption value being recognised in net result the extent that a credit balance exists in the asset reporting period. over the period of the borrowing using the effective revaluation surplus in respect of the same class of interest method. Other non-financial assets property, plant and equipment. Otherwise, the net Provisions revaluation decreases are recognised immediately Prepayments Provisions are recognised when MHRMB has a as other economic flows in the net result. The Other non-financial assets include prepayments, present obligation, the future sacrifice of economic net revaluation decrease recognised in ‘other which represent payments in advance of receipt benefits is probable, and the amount of the economic flows – other comprehensive income’ of goods or services or that part of expenditure provision can be measured reliably. reduces the amount accumulated in equity under made in one accounting period covering a term the asset revaluation surplus. extending beyond that period. The amount recognised as a provision is the best estimate of the consideration required to Revaluation increases and decreases relating to
56 MT HOTHAM RESORT MANAGEMENT BOARD j) LIABILITIES CON’T Conditional LSL (representing less than five years and financial liabilities that meet the definition of of continuous service for VPS staff) is disclosed as financial instruments in accordance with AASB 132 settle the present obligation at reporting date, a non-current liability. There is an unconditional and those that do not. taking into account the risks and uncertainties right to defer the settlement of the entitlement surrounding the obligation. Where a provision is The following refers to financial instruments unless until the employee has completed the requisite measured using the cash flows estimated to settle otherwise stated. years of service. This non-current LSL liability is the present obligation, its carrying amount is the measured at present value. Loans and receivables present value of those cash flows, using discount Loans and receivables are financial instrument rate that reflects the time value of money and risks Any gain or loss following revaluation of the assets with fixed and determinable payments specific to the provision. present value of non current LSL liability is that are not quoted on an active market. These recognised in the ‘net result from transactions’, Employee Benefits assets are initially recognised at fair value plus any except to the extent that a gain or loss arises due directly attributable transaction costs. Subsequent Provision is made for benefits accruing to to changes in bond interest rates for which it is to initial measurement, loans and receivables are employees in respect of wages and salaries, annual then recognised in the net result as an –‘other measured at amortised cost using the effective leave and long service leave (LSL) for services economic flow’. rendered to the reporting date. interest method, less any impairment. (iii) Termination benefits (i) Wages and salaries, annual leave and time in Loans and receivables category includes cash lieu leave Termination benefits are payable when and deposits, term deposits with maturity greater employment is terminated before the normal Liabilities for wages and salaries, including non- than three months, trade receivables, and other retirement date, or when an employee decides monetary benefits, annual leave and accumulating receivables, but not statutory receivables. to accept an offer of benefits in exchange for the time in lieu leave, are all recognised in the provision termination of employment. MHRMB recognises Held-to-maturity financial assets for employee benefits as ‘current liabilities’, termination benefits when it is demonstrably If MHRMB has the positive intent and ability to because MHRMB does not have an unconditional committed to either terminating the employment of hold nominated investments to maturity, then right to defer settlements of these liabilities. current employees according to a detailed formal such financial assets may be classified as held- Depending on the expectation of the timing of plan without possibility of withdrawal or providing to-maturity. Held-to-maturity financial assets are settlement, liabilities for wages and salaries, annual termination benefits as a result of an offer made to recognised initially at fair value plus any directly leave and time in lieu leave are measured at: encourage voluntary redundancy. Benefits falling attributable transaction costs. Subsequent to • Nominal value – if MHRMB expects to wholly due more than 12 months after balance sheet date initial recognition held-to-maturity financial assets settle within 12 months: or are discounted to present value. are measured at amortised cost using the effective interest method, less any impairment losses. • Present value – if MHRMB does not expect to (iv) Employee benefits on-costs wholly settle within 12 months. Employee benefits on-costs (payroll tax, workers MHRMB makes limited use of this classification (ii) Long service leave compensation, superannuation, annual leave and because any sale or reclassification of more than an insignificant amount of held-to-maturity Liability for long service leave (LSL) is recognised LSL accrued while on LSL taken in service) are investments not close to their maturity would in the provision for employee benefits. recognised separately from provision for employee benefits. result in the whole category being reclassified Unconditional LSL (representing five or more years as available-for-sale. MHRMB would also be prevented from classifying investment securities of continuous service for VPS staff) is disclosed in k) FINANCIAL INSTRUMENTS the notes to the financial statements as a current as held-to-maturity for the current and the liability, even where the MHRMB does not expect Financial instruments arise out of contractual following two financial years. to settle the liability within 12 months because it agreements that give rise to a financial asset will not have the unconditional right to defer the of one entity and a financial liability or equity settlement of the entitlement should an employee instrument of another entity. Due to the nature take leave within 12 months. of MHRMB’s activities, certain financial assets and financial liabilities arise under statute rather The components of this current LSL liability are than contract. Such financial assets and financial measured at: liabilities do not meet the definition of financial • Nominal value if MHRMB expects to wholly instruments in AASB 132 Financial Instruments: settle within 12 months; and Presentation. • Present value if MHRMB does not expect to Where relevant, for note disclosure purposes, a wholly settle within 12 months. distinction is made between those financial assets
ANNUAL REPORT 2014/15 57 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2015
l) GOODS AND SERVICES TAX MHRMB AS LESSOR 3. Note 8.1 Reconciliation of the carrying amounts Income, expenses and assets are recognised net Rental income from operating leases is recognised of each class of asset has been reclassified of the amount of associated goods and services on a straight-line basis over the term of the Plant, Equipment and Motor Vehicles transfers tax (GST), except where the amount of GST is not relevant lease. to additions. recoverable from the taxation authority. In this 4. Note 8.2 Fair value measurement hierarchy for case, the GST payable is recognised as part of the o) COMMITMENTS assets and associated reconciliation of Level cost of acquisition of the asset or as part of the 3 assets has been further disaggregated to Commitments for future expenditure include expense. provide users with a greater understanding operating and capital commitments arising from of the class of assets for water, sewerage and Receivables and payables are stated inclusive contracts. These commitments are disclosed by gas. of the amount of GST receivable or payable. The way of note (refer to Note 13 Capital and forward net amount of GST recoverable from, or payable Commitments) at their nominal value and inclusive 5. Note 18(b) Payments to other personnel (i.e. to, the taxation authority is included with other of GST payable. contractors with significant management receivables or payables in the balance sheet. responsibilities) has been amended to reflect In addition, where it is considered appropriate and the exclusive of GST figure. Cash flows are presented on a gross basis. provides additional relevant information to users, The GST component of cash flows arising from the net present values of significant individual investing and financing activities, which are projects are stated. These future expenditures recoverable from, or payable to the taxation cease to be disclosed as commitments once the authority, are presented as an operating cash flow. related liabilities are recognised in the balance sheet. Commitments and contingent assets and liabilities are also stated inclusive of GST (refer to Note 1 (o) and Note 1 (p).) p) CONTINGENT ASSETS AND CONTINGENT LIABILITIES m) CONTRIBUTED CAPITAL Contingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed Contributions to MHRMB are recognised as by way of a note (refer to Note 14 Contingent contributed capital with the approval of the Assets and Liabilities) and, if quantifiable, are Minister for Finance and when the transfer measured at nominal value. Contingent assets and satisfies the definition of contribution by owners liabilities are presented inclusive of GST receivable as per FRD119A Transfers through Contributed or payable respectively. Capital. Contributed capital is disclosed in the Statement of changes in Equity. q) COMPARATIVES n) LEASES Where necessary, comparative amounts have been reclassified to comply with presentation in A lease is a right to use an asset for an agreed the current year. period of time in exchange for payment. There have been five occurrences where it was Leases are classified at their inception as either necessary to reclassify the comparative amounts operating or finance leases based on the economic from prior year audited financial report. These substance of the agreement so as to reflect the include: risks and rewards incidental to ownership 1. The Comprehensive Operating Statement There are no finance leases. amended to include the net gain/(loss) arising Operating leases are charged to the from revaluation of long service liability; this comprehensive operating statement in the period has also affected the Administration expenses in which they are incurred, as this represents the from transactions and Note 2 Employee pattern of benefits derived from the leased assets. Benefits Expense. 2. The Comprehensive Operating Statement has been amended to include government tax rebates.
58 MT HOTHAM RESORT MANAGEMENT BOARD r) AASS ISSUED THAT ARE NOT YET EFFECTIVE As at 31st October 2015, the following standards and interpretations had been Certain new AASs have been published that are not mandatory for the issued but were not mandatory for the financial year ending 31st October 2015. 31 October 2015 reporting period. MHRMB assesses the impact of these MHRMB has not early adopted these standards. new standards and advises of their applicability and early adoption where applicable.
Standard/Interpretation Summary Applicable for Impact on public sector annual reporting entity financial statements periods beginning on
AASB 2014-4 Amendments to Amends AASB 116 Property, Plant and Equipment and 1 Jan 2016 The assessment has Australian Accounting Standards – AASB 138 Intangible Assets to: indicated that there is no Clarification of Acceptable Methods expected impact as the • Establish the principle for the basis of depreciation of Depreciation and Amortisation revenue-based method is not and amortisation as being the expected pattern of used for depreciation and [AASB 116 & AASB 138] consumption of the future economic benefits of an asset; amortisation. • Prohibit the use of revenue based methods to calculate the depreciation or amortisation of an asset, tangible or intangible, because revenue generally reflects the pattern of economic benefits that are generated from operating the business, rather than the consumption through the use of the asset.
AASB 2015-6 Amendments to The Amendments extend the scope of AASB 124 Related 1 Jul 2016 The amending standard Australian Accounting Standards Party Disclosures to not-for-profit public sector entities. will result in extended – Extending Related Party Guidance has been included to assist the application of the disclosures on the entity’s Disclosures to Not-for-Profit Public Standard by not-for-profit public sector entities. key management personnel Sector Entities (KMP), and the related party transactions. [AASB 10, AASB 124 & AASB 1049]
In addition to the new standards and amendments • AASB 2014-3 Amendments to Australian • AASB 2015-2 Amendments to Australian above, the AASB has issued a list of other Accounting Standards – Accounting for Accounting Standards – Disclosure Initiative: amending standards that are not effective for Acquisitions of Interests in Joint Operations Amendments to AASB 101 [AASB 7, AASB 101, the 2014-15 reporting period (as listed below). [AASB 1 & AASB 11] AASB 134 & AASB 1049] In general, these amending standards include • AASB 2014-5 Amendments to Australian • AASB 2015-3 Amendments to Australian editorial and references changes that are expected Accounting Standards arising from AASB 15 Accounting Standards arising from the to have insignificant impacts on public sector • AASB 2014-6 Amendments to Australian Withdrawal of AASB 1031 Materiality reporting. Accounting Standards – Agriculture: Bearer • AASB 2015-4 Amendments to Australian • AASB 2010-7 Amendments to Australian Plants [AASB 101, AASB 116, AASB 117, AASB Accounting Standards – Financial Reporting Accounting Standards arising from AASB 9 123, AASB 136, AASB 140 & AASB 141] Requirements for Australian Groups with a (December 2010). • AASB 2014-7 Amendments to Australian Foreign Parent [AASB 127, AASB 128] # • AASB 2013-9 Amendments to Australian Accounting Standards arising from AASB 9 • AASB 2015-5 Amendments to Australian Accounting Standards – Conceptual Framework, (December 2014) Accounting Standards – Investment Entities: Materiality and Financial Instruments • AASB 2014-8 Amendments to Australian Applying the Consolidation Exception • AASB 2014-1 Amendments to Australian Accounting Standards arising from AASB 9 [AASB 10, AASB 12, AASB 128] # Accounting Standards [PART D – Consequential (December 2014) – Application of AASB 9 Amendments arising from AASB 14 Regulatory (December 2009) and AASB 9 (December Deferral Accounts only] # 2010) [AASB 9 (2009 & 2010)]
ANNUAL REPORT 2014/15 59 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2015
NOTE 2 INCOME FROM TRANSACTIONS 2015 2014 $ $ REVENUE GOVERNMENT GRANTS Sustainability Victoria 5,000 20,000 Government tax rebates 33,948 24,931 Alpine Shire Council contribution to Hotham Dinner Plain Trail 35,291 15,020
74,239 59,951
RENDERING OF SERVICES Site rental 1,307,329 1,291,433 Service charges 4,343,392 4,193,066 Transport Contribution 133,154 130,002 Gas trading operations 1,107,706 1,386,981 Gate entry 2,731,048 2,665,100 Horticultural supplies 111,999 106,675
9,734,628 9,773,257
Interest 185,435 163,051
OTHER REVENUE Infringement Revenue 240,870 231,643 Service Charges - Infrastructure fee 134,191 176,828 Marketing Revenue 175,090 115,742 Other Income 173,808 320,845
723,960 845,058
TOTAL INCOME FROM TRANSACTIONS 10,718,262 10,841,317
60 MT HOTHAM RESORT MANAGEMENT BOARD NOTE 3 EXPENSES 2015 2014 $ $ INCLUDED IN EXPENSES ARE:
DEPRECIATION CHARGE FOR THE PERIOD Buildings 221,804 218,724 Infrastructure 811,022 748,388 Plant, equipment and motor vehicles 339,960 266,155
1,372,785 1,233,267
EMPLOYEE BENEFITS EXPENSE Salaries, wages and other on costs 3,506,576 3,412,588 Superannuation 303,053 312,970
3,809,630 3,725,558
AUDIT FEES Audit of Financial Statements -Victorian Auditor-General’s Office 30,000 25,300 Internal Auditor 13,749 17,272
43,749 42,572
OTHER COSTS INCLUDING Maintenance 589,508 647,338 Energy 554,347 537,242 Cost of Goods Sold - Gas operations 505,566 765,133 Cost of Goods Sold - Horticultural operations 16,626 22,433 Marketing 93,761 125,811 Consultants and Contractors 807,256 533,330 Communications 66,861 58,959 Accommodation - Staff 137,604 104,989 Support Payments (Alpine Resorts Co-ordinating Council) 398,398 355,783 Insurance 315,713 308,920 Interest 104,733 110,126 Legal 89,385 90,774 Licenses, monitoring and testing 132,651 134,819 Training related costs 205,479 155,074 Equipment and safety related costs 184,606 138,609 Consumables 81,373 92,112 Bad and doubtful debts 63,151 34,504 Other 697,919 576,218
5,044,935 4,792,175
TOTAL EXPENSES FROM TRANSACTIONS 10,271,099 9,793,572
ANNUAL REPORT 2014/15 61 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2015
NOTE 4 CASH AND CASH EQUIVALENTS 2015 2014 $ $ Current Cash at bank 2,038,019 6,356,883
19 2,038,019 6,356,883
NOTE 5 RECEIVABLES 2015 2014 $ $ Current Trade debtors 497,596 718,648 Infringement debtors 241,924 211,232 Less provision for doubtful debts (88,919) (72,398) Other receivables 47,312 44,699
19 697,913 902,181
Where necessary interest is charged on overdue debts in accordance with the Penalty Interest Rates Act 1983 or in accordance with relevant legislation and/or lease terms. At 31 October 2015 the Penalty Interest Rate was 9.5% (2014 10.5%). The carrying value of debtors approximates fair value.
Ageing analysis of contractual receivable Please refer to Table 19.2 in Note 19 for the ageing analysis of contractual receivables.
Movement in doubtful debts Balance at the beginning of the year (72,398) (39,086) New provisions recognised (62,923) (34,216) Amounts written off as uncollectible 46,402 904
BALANCE AT THE END OF THE YEAR (88,919) (72,398)
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 $88,919 (2014 $72,398).
NOTE 6 OTHER FINANCIAL ASSETS 2015 2014 $ $ Current Term Deposits 1,000,000 3,000,000
19 1,000,000 3,000,000
Non-Current Term Deposits 19 3,300,000 300,000
TOTAL OTHER FINANCIAL ASSETS 19 4,300,000 3,300,000
62 MT HOTHAM RESORT MANAGEMENT BOARD NOTE 7 INVENTORIES 2015 2014 $ $ Current Supplies and consumables: Fuel 19,327 49,995 Inventory 15,008 15,008
34,335 65,003
Inventories held for sale: Gas 11,188 65,884 Plants 49,718 24,187
60,906 90,071
TOTAL INVENTORIES 95,241 155,074
ANNUAL REPORT 2014/15 63 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2015
NOTE 8 PROPERTY, PLANT & EQUIPMENT 2015 2014 $ $ Land At Fair Value 41,815,000 41,815,000
41,815,000 41,815,000
Land held for resale Right to lease and develop land parcel at Fair Value 42,208 42,208
42,208 42,208
Buildings At Fair Value 6,835,466 6,801,437 Less accumulated depreciation (880,655) (658,851)
5,954,811 6,142,586
Village and Community Infrastructure At Fair Value 4,281,308 4,134,383 Less accumulated depreciation (418,111) (288,468)
3,863,197 3,845,915
Roads and carparks At Fair Value 11,341,076 10,298,947 Less accumulated depreciation (710,381) (534,308)
10,630,695 9,764,639
Water At Fair Value 11,003,180 5,781,862 Less accumulated depreciation (875,328) (665,681)
10,127,851 5,116,181
Sewerage At Fair Value 6,882,284 6,882,284 Less accumulated depreciation (958,842) (718,133)
5,923,442 6,164,151
Gas At Fair Value 1,165,815 1,153,740 Less accumulated depreciation (200,054) (148,925)
965,762 1,004,815
Plant, Equipment and Motor Vehicles At Fair Value 3,852,181 3,733,265 Less accumulated depreciation (2,447,064) (2,594,396)
1,405,117 1,138,869
Capital Works in Progress at cost 567,556 2,448,676
TOTAL 81,295,639 77,483,040
64 MT HOTHAM RESORT MANAGEMENT BOARD NOTE 8.1 PROPERTY, PLANT AND 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.
2015 Carrying amount Additions Disposals at Cost Disposals Transfers Depreciation Carrying at start of year Accumulated Expense amount at end Depreciation of year
Land 41,815,000 - - - - - 41,815,000 Land held for sale 42,208 - - - - - 42,208 Buildings 6,142,586 - - - 34,030 (221,804) 5,954,811 Village and Community Infrastructure 3,844,107 - - - 148,733 (129,644) 3,863,197 Roads and carparks 9,764,639 - - - 1,042,129 (176,074) 10,630,695 Water 5,116,181 - - - 5,221,319 (209,648) 10,127,851 Sewage 6,164,151 - - - - (240,708) 5,923,442 Gas 1,004,815 - - - 12,074.17 (51,128) 965,762 Plant , Equipment & Motor Vehicles 1,140,679 614,472 (497,364) 491,111 - (343,779) 1,405,117 Capital Works in Progress 2,448,676 4,577,165 - - (6,458,286) - 567,556
77,483,040 5,191,637 (497,364) 491,111 - (1,372,785) 81,295,639
2014 Carrying amount Additions Disposals at Cost Disposals Transfers Depreciation Carrying at start of year Accumulated Expense amount at end Depreciation of year
Land 41,815,000 - - - - - 41,815,000 Land held for sale 42,208 - - - - - 42,208 Buildings 6,203,787 - - - 157,523 (218,724) 6,142,586 Village and Community Infrastructure 3,849,665 - - - 96,442 (102,000) 3,844,107 Roads and carparks 9,899,247 - - - 37,363 (171,971) 9,764,639 Water 5,289,411 - - - 10,124 (183,354) 5,116,181 Sewage 6,318,708 - - - 85,584 (240,141) 6,164,151 Gas 1,055,737 - - - - (50,922) 1,004,815 Plant , Equipment & Motor Vehicles 692,903 719,965 (6,035) - - (266,155) 1,140,679 Capital Works in Progress 212,222 2,623,488 - - (387,034) - 2,448,676
75,378,888 3,343,453 (6,035) - - (1,233,267) 77,483,040
ANNUAL REPORT 2014/15 65 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2015
NOTE 8.2 PROPERTY, PLANT AND EQUIPMENT Fair value measurement hierarchy for assets as at 31 October 2015
Carrying amount as Fair value measurement at end of at 31 October 2015 reporting period using: Level 1 (i) $ Level 2(i) $ Level 3(i) $ Land at fair value Specialised land 41,857,208 - - 41,857,208
TOTAL OF LAND AT FAIR VALUE 41,857,208 - - 41,857,208
Buildings at fair value Specialised buildings 5,954,811 - - 5,954,811
TOTAL OF BUILDINGS AT FAIR VALUE 5,954,811 - - 5,954,811
Village & Community Infrastructure at fair value Village & Community Infrastructure at fair value 3,863,197 - - 3,863,197
TOTAL OF VILLAGE & COMMUNITY INFRASTRUCTURE AT FAIR VALUE 3,863,197 - - 3,863,197
Roads & carparks at fair value Roads & carparks at fair value 10,630,695 - - 10,630,695
TOTAL OF ROADS & CARPARKS AT FAIR VALUE 10,630,695 - - 10,630,695
Water Assets at fair value Headworks - - - - Distribution works 937,906 - - 937,906 Treatment 112,920 - - 112,920 Water Storage 2,551,799 - - 2,551,799 Water Reticulation 897,911 - - 897,911 Drains 5,627,315 - - 5,627,315
TOTAL OF WATER ASSETS AT FAIR VALUE 10,127,851 - - 10,127,851
Sewerage Assets at fair value WWTP 2,368,134 - - 2,368,134 Sewer Pump wells 361,924 - - 361,924 Sewer Reticulation 867,784 - - 867,784 Ultra Filtration 2,325,600 - - 2,325,600
TOTAL OF SEWERAGE ASSETS AT FAIR VALUE 5,923,442 - - 5,923,442
66 MT HOTHAM RESORT MANAGEMENT BOARD NOTE 8.2 PROPERTY, PLANT AND EQUIPMENT CON’T
Carrying amount as Fair value measurement at end of at 31 October 2015 reporting period using: Level 1 (i) $ Level 2(i) $ Level 3(i) $ Gas Assets at fair value Gas Storage 523,959 - - 523,959 Gas Reticulation 401,268 - - 401,268 Customer Supply 40,535 - - 40,535
TOTAL OF GAS ASSETS AT FAIR VALUE 965,762 - - 965,762
Plant, Equipment & Vehicles at fair value Vehicles 650,543 - - 650,543 Plant & equipment 754,574 - - 754,574
TOTAL OF PLANT, EQUIPMENT & VEHICLES AT FAIR VALUE 1,405,117 - - 1,405,117
Notes: (i) Classified in accordance with the fair value hierarchy, see note 1 (b) Assets under construction are excluded from the table above as they are measured at cost. There have been no transfers between levels during the period.
SPECIALISED LAND AND SPECIALISED adjustments are considered as significant, Economic obsolescence has also been factored BUILDINGS unobservable inputs in nature, specialised into the depreciated replacement cost calculation. buildings are classified as Level 3 fair value The market approach is used for specialised land, Where it has not been possible to examine hidden measurements. although is adjusted for the community service works such as structural frames and floors, the obligation (CSO) to reflect the specialised nature An independent valuation of the Boards specialised use of reasonable materials and methods of of the land being valued. land and specialised buildings was performed by construction have been assumed bearing in mind The CSO adjustment is a reflection of the the Valuer-General Victoria. The valuation was the age and nature of the buildings, roads and valuer’s assessment of the impact of restrictions performed using the market approach adjusted carparks, water, sewerage and gas infrastructure associated with an asset to the extent that is also for CSO, The effective date of the valuation is 31 assets. October 2011. equally applicable to market participants. This An independent valuation of the Boards approach is in light of the highest and best use infrastructure, roads and car parks was performed consideration required for fair value measurement, VILLAGE AND COMMUNITY by Cosgraves & Eastoe Pty Ltd on behalf of the and takes into account the use of the asset that INFRASTRUCTURE, ROADS AND CAR Valuer-General Victoria. is physically possible, legally permissible, and PARKS, WATER, SEWERAGE AND GAS The valuation was performed based on the financially feasible. As adjustments of CSO are All village & community infrastructure, roads & depreciated replacement cost of the assets. The considered significant unobservable inputs in car parks, water, sewage & gas assets are valued effective date of the valuation is 31 October 2011. nature, specialised land are classified as Level 3 using the depreciated replacement cost method. fair value measurements. This cost represents the replacement cost of the All the Board’s specialised buildings use the building/component after applying depreciation depreciated replacement cost method, adjusting rates on a useful life basis. Replacement costs for the associated depreciations. As depreciation relate to costs to replace the current service capacity of the asset.
ANNUAL REPORT 2014/15 67 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2015
8.2 PROPERTY, PLANT AND EQUIPMENT CON’T
VEHICLES PLANT AND EQUIPMENT Vehicles are valued using the depreciated Plant and equipment is held at fair value. When replacement cost method. The Board acquires plant and equipment is specialised in use, such new vehicles and at times disposes of them that it is rarely sold other than as part of a going before the end of their economic life. The process concern, fair value is determined using the of acquisition, use and disposal in the market is depreciated replacement cost method. managed by experienced fleet managers in the There were no changes in valuation techniques Board who set relevant depreciation rates during throughout the period to 31 October 2015. use to reflect the utilisation of the vehicles. For all assets measured at fair value, the current use is considered the highest and best use.
RECONCILIATION OF LEVEL 3 FAIR VALUE ($)
2015 Opening balance Purchase (sales) Transfers in (out) Gains or losses Depreciation Impairment loss Subtotal Gains or losses recognised Subtotal Closing balance Unrealised gains/ of Level 3 recognised in net result in other economic flows- (losses) on non other comprehensive income -financial assets
Specialised land 41,857,208 - - - - - 41,857,208 - - 41,857,208 - Specialised buildings 6,142,586 34,030 - - (221,804) - 5,954,810 - - 5,954,810 - Village and Community Infrastructure 3,844,107 148,733 - - (129,644) - 3,863,197 - - 3,863,197 - Roads and car parks 9,764,639 1,042,129 - - (176,074) - 10,630,694 - - 10,630,694 - Headworks ------Distribution works 973,260 - - - (35,354) - 937,906 - - 937,906 - Treatment 124,690 - - - (11,770) - 112,920 - - 112,920 - Water Storage 2,626,600 - - - (74,800) - 2,551,800 - - 2,551,800 Water Reticulation 936,227 9,183 - - (47,499) - 897,911 - - 897,911 Drains 455,404 5,212,136 - - (40,225) - 5,627,316 - - 5,627,316 - WWTP 2,446,301 - - - (78,166) - 2,368,134 - - 2,368,134 - Sewer Pump wells 369,800 - - - (16,194) - 353,606 - - 353,606 - Sewer Reticulation 911,850 - - - (35,748) - 876,102 - - 876,102 - Ultra Filtration 2,436,200 - - - (110,600) - 2,325,600 - - 2,325,600 - Gas Storage 547,902 - - - (23,943) - 523,959 - - 523,959 - Gas Reticulation 415,300 12,074 - - (26,106) - 401,267 - - 401,267 - Customer Supply 41,614 - - - (1,079) - 40,535 - - 40,535 - Plant, Equipment & Vehicles 1,140,679 614,472 - - (343,779) - 1,411,370 (6,253) (6,253) 1,405,117 -
68 MT HOTHAM RESORT MANAGEMENT BOARD 8.2 PROPERTY, PLANT AND EQUIPMENT CON’T
RECONCILIATION OF LEVEL 3 FAIR VALUE ($)
2015 Opening balance Purchase (sales) Transfers in (out) Gains or losses Depreciation Impairment loss Subtotal Gains or losses recognised Subtotal Closing balance Unrealised gains/ of Level 3 recognised in net result in other economic flows- (losses) on non other comprehensive income -financial assets
Specialised land 41,857,208 - - - - - 41,857,208 - - 41,857,208 - Specialised buildings 6,142,586 34,030 - - (221,804) - 5,954,810 - - 5,954,810 - Village and Community Infrastructure 3,844,107 148,733 - - (129,644) - 3,863,197 - - 3,863,197 - Roads and car parks 9,764,639 1,042,129 - - (176,074) - 10,630,694 - - 10,630,694 - Headworks ------Distribution works 973,260 - - - (35,354) - 937,906 - - 937,906 - Treatment 124,690 - - - (11,770) - 112,920 - - 112,920 - Water Storage 2,626,600 - - - (74,800) - 2,551,800 - - 2,551,800 Water Reticulation 936,227 9,183 - - (47,499) - 897,911 - - 897,911 Drains 455,404 5,212,136 - - (40,225) - 5,627,316 - - 5,627,316 - WWTP 2,446,301 - - - (78,166) - 2,368,134 - - 2,368,134 - Sewer Pump wells 369,800 - - - (16,194) - 353,606 - - 353,606 - Sewer Reticulation 911,850 - - - (35,748) - 876,102 - - 876,102 - Ultra Filtration 2,436,200 - - - (110,600) - 2,325,600 - - 2,325,600 - Gas Storage 547,902 - - - (23,943) - 523,959 - - 523,959 - Gas Reticulation 415,300 12,074 - - (26,106) - 401,267 - - 401,267 - Customer Supply 41,614 - - - (1,079) - 40,535 - - 40,535 - Plant, Equipment & Vehicles 1,140,679 614,472 - - (343,779) - 1,411,370 (6,253) (6,253) 1,405,117 -
ANNUAL REPORT 2014/15 69 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2015
NOTE 9 PAYABLES 2015 2014 $ $ Current Trade creditors 125,187 581,759 Statutory payable 300,307 50,585 Accrued expenses 364,127 239,939 Other payables 132,971 185,634
19 922,593 1,057,917
All trade and other creditors are non-interest bearing. The carrying amount of creditors approximates fair value.
Ageing analysis of contractual payables Please refer to Table 19.2 in Note 19 for the ageing analysis of contractual payables
NOTE 10 TCV BORROWINGS 2015 2014 $ $
Current Fixed interest loan from TCV 90,378 84,669
Non-Current Fixed interest loan from TCV 1,454,502 1,544,882
TOTAL FIXED INTEREST LOAN FROM TCV 19 1,544,880 1,629,551
NOTE 11 PROVISIONS 2015 2014 $ $ Current provisions Employee Benefits (i) (note 11(a)) Annual leave Unconditional and expected to be settled within 12 months (ii) 201,331 167,171 Unconditional and expected to be settled after 12 months (iii) 69,464 71,449 Long service leave Unconditional and expected to be settled within 12 months (ii) 95,613 98,329 Unconditional and expected to be settled after 12 months (iii) 291,255 305,448 Provisions related to employee benefits on-costs Unconditional and expected to be settled within 12 months (ii) 45,293 70,177 Unconditional and expected to be settled after 12 months (iii) 56,971 73,935
Total current provisions 759,927 786,509
Non-Current Employee Benefits (i) 52,282 75,789 Provisions related to employee benefits on-costs 8,316 11,972
Total non-current provisions 60,598 87,761
TOTAL PROVISIONS 820,525 874,270
70 MT HOTHAM RESORT MANAGEMENT BOARD NOTE 11 PROVISIONS CON’T
11(A) EMPLOYEE BENEFITS AND RELATED ON-COSTS 2015 2014 $ $ Current Employee Benefits Annual Leave entitlements 265,460 218,214 Time off in Lieu entitlements 5,336 20,406 Unconditional Long Service Leave Entitlements 386,868 403,777
Non-current employee benefits Conditional Long Service Leave entitlements 52,282 75,789
Total Employee Benefits 709,945 718,186
Current on-costs 102,264 144,112 Non-current on-costs 8,316 11,972
Total on-costs 110,580 156,084
TOTAL EMPLOYEE BENEFITS AND RELATED ON-COSTS 820,525 874,270
(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.
11(B) MOVEMENT IN PROVISIONS 2015 $
Opening balance 874,270 Additional provisions recognised 36,467 Reductions arising from payments/other sacrifices of future economic benefits 21,109 Reductions resulting from re-measurement or settlement without cost 69,103
Closing balance 820,525
Current 759,928 Non-current 60,598
820,525
ANNUAL REPORT 2014/15 71 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2015
NOTE 12 RECONCILIATION OF NET RESULT TO NET 2015 2014 CASH FLOWS FROM OPERATING ACTIVITIES $ $
Net Results for the reporting period 496,546 1,032,892 Depreciation 1,372,785 1,233,267 Sale / Write down of Assets (68,764) (36,332)
Change in operating assets and liabilities Decrease/(increase) in receivables 204,268 (143,712) Decrease/(increase) in inventories 59,833 (15,224) Decrease/(increase) in prepayments 6,828 (9,815) Increase/(decrease) in payables (206,850) 496,344 Increase/(decrease) in accrued expenditure 71,525 (301,898) Increase/(decrease) in employee entitlements (53,745) 136,939
NET CASH INFLOW FROM OPERATING ACTIVITIES 1,882,428 2,392,460
NOTE 13 CAPITAL AND FORWARD COMMITMENTS 2015 2014 $ $ The Board has signed agreements for the construction and replacement of Swindlers Valley Pipe replacement project, walking trails and geo-technical work. The forward commitments on these works totals $1,272,259
Walking trails and geo-technical works Not later than one year 50,000 50,000 Later than one year but not later than five years 65,000 -
115,000 50,000
Swindlers Valley Pipe Replacement Project Not later than one year 1,157,259 4,535,474 Later than one year but not later than five years - 432,640
1,157,259 4,968,114
RMB 2016 capital works program Not later than one year 1,696,000 1,569,000
1,696,000 1,569,000
TOTAL CAPITAL AND FORWARD COMMITMENTS 2,968,259 6,587,114
The MHRMB and the Bright Medical Centre have an ongoing relationship to provide essential medical services in Mt Hotham. To aid this service the RMB provide adequate consulting rooms and the provision of essential assets to ensure Mt Hotham can provide an adequate medical service to its guests and residence.
72 MT HOTHAM RESORT MANAGEMENT BOARD NOTE 14 CONTINGENT ASSETS AND LIABILITIES
There are no unquantifiable contingent liabilities. (2014-Nil). There are no contingent assets (2014 Nil).
NOTE 15 FUTURE SITE RENT LEASE REVENUE 2015 2014 $ $ 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 87 Crown leases with site holders. The leases cover periods up to 75 years.
Non-cancellable operating lease receivables Not longer than 1 year 1,288,684 1,306,434 Longer than 1 year and not longer than 5 years 5,339,021 5,560,612 Longer than 5 years 16,793,325 16,559,831
23,421,029 23,426,877
NOTE 16 SUPERANNUATION
Employees of MHRMB 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 below 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 2015 2014 % $ $ State Superannuation fund - New/Revised Scheme (Defined Benefits) 9.4 - 10.2 21,839 11,675
State Superannuation fund (SERBS) (Defined Benefits) 10 11,377 12,112
AUSTSUPER (Accumulated Benefits) 9.5 39,830 33,454 VICSUPER (Accumulated Benefits) 9.5 247,983 161,391 OTHER FUNDS (Accumulated Benefits) 9.5 152,815 100,170
473,844 318,802
At reporting date there were outstanding contributions of $nil (2014 $27,540) payable to the above funds. No loans have been made to the Board from these funds.
ANNUAL REPORT 2014/15 73 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2015
NOTE 17 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 2014 to 3 Dec 2014 Lisa Neville, MP Minister for Environment, Land, Water and Property from 4 Dec 2014 to 31 Oct 2015
Board Deborah Spring, Board Member. Chairman of the Board from 1 Nov 2014 to 31 Oct 2015. Ronald Mason, Board Member. Deputy Chairman of the Board from 1 Nov 2014 to 31 Oct 2015. Nicole Feeney, Board Member from 1 Nov 2014 to 31 Oct 2015. Timothy Piper, Board Member from 1 Nov 2014 to 31 Oct 2015. Peter Hagenauer, Board Member from 1 Nov 2014 to 31 Oct 2015. David Anstee, Board Member from 1 Nov 2014 to 31 Oct 2015. Stephen Clement, Board Member from 1 Nov 2014 to 31 Oct 2015.
Accountable Officer James Atteridge, Chief Executive Officer and Accountable Officer from 1 Nov 2014 to 31 Dec 2014. Jonathan Hutchins, Chief Executive Offer and Accountable Officer from 19 Jan 2015 to 31 Oct 2015.
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 2015 was $424,417 (2014 - $323,849) The number of Responsible Persons whose remuneration from the Board was within the specified bands are as follows:
Total Remuneration Remuneration Bands 2015 2014 No. No. $ 0 - $ 9,999 6 7 $ 10,000 - $ 19,999 1 1 $ 150,000 - $159,999 1 - $ 210,000 - $219,999 1 - $ 270,000 - $279,999 - 1
Total Responsible persons 9 9
TOTAL REMUNERATION $424,417 $323,849
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.
74 MT HOTHAM RESORT MANAGEMENT BOARD NOTE 17 RESPONSIBLE PERSONS CON’T
Loans At 31 October 2015 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.(2014 - nil)
OTHER TRANSACTIONS:
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. and is a committee member of the club. Deborah Spring, Timothy Piper, Helen Moran, and Stephen Clement held no interest in property at Mt Hotham. James Atteridge (CEO) has interests in property at Razorback Apartments and Arlberg Hotel, Mt Hotham. Jonathan Hutchins (CEO) has interests in property at Moritz, Mt Hotham and is the secretary of the body corporate. 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 31/10/2015 $ $ $ Alpine Resort Coordinating Council - 388,818 - Anton Huette (Hotham Heights) Inc. 47,201 - 276 Arlberg Apartments (Habitat Apartments Aust Pty Ltd) 801,855 870 171,022 Asgaard Alpine Club Inc. 64,014 7,300 1,219 Chalet Hotham Body Corporate 97,264 - 449 Chalet Hotham # 22 405 - 58 Moritz Mt Hotham Pty Ltd 250,352 29,712 - Razorback Apartments 87,170 - - Razorback #1 307 2,343 -
TOTAL 1,348,568 429,043 173,024
ANNUAL REPORT 2014/15 75 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2015
NOTE 18 REMUNERATION OF EXECUTIVES AND PAYMENT TO OTHER PERSONNEL (I.E. CONTRACTORS WITH SIGNIFICANT MANAGEMENT RESPONSIBILITIES)
(a) 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.
Remuneration bands Total Remuneration Base Remuneration
2015 2014 2015 2014 No. No. No No. $0 - $99,999 1 - 1 - $100,000 - $109,999 - - 1 1 $110,000 - $119,999 1 1 - - $120,000 - $129,999 1 - 2 - $130,000 - $139,999 1 1 - 2 $140,000 - $149,999 - 2 1 1 $150,000 - $159,999 1 - - -
Total number of executives 5 4 5 4
Total annualised employment equivalents (AEE) 1 4.4 4 4.03 4
TOTAL AMOUNT $624,644 $544,007 $527,194 $512,504
1. Annualised employee equivalent is based on working 38 hours per week over the reporting period.
(b) Payments to other personnel (i.e. contractors with significant management responsibilities) Payments have been made to one contractor with significant management responsibilities, which are disclosed in the $10,000 expense band. This contractor is responsible for planning, directing or controlling, directly or indirectly, of the Boards Property Planning and Crown leasing department.
Expense band 2015 2014 No No $110,000 - $119,999 1 1
TOTAL EXPENSES (EXCLUSIVE OF GST) $109,304 $109,659
76 MT HOTHAM RESORT MANAGEMENT BOARD NOTE 19 FINANCIAL INSTRUMENTS
(a) Financial risk management objectives and policies Mount Hotham Alpine Resort Management Board’s principal financial instruments comprise of: • cash assets; • term deposits; • receivables; • payables; and • borrowings.
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, with respect to each class of financial asset and financial liability above are disclosed in Note 1 to the financial statements.
The main purpose in holding financial instruments is to prudentially manage the MHRMB’s financial risks in the government policy parameters.
The MHRMB’s main financial risks include credit risk, liquidity risk and interest rate risk. The MHRMB manages these financial risks in accordance with its financial risk management policy. The MHRMB uses different methods to measure and manage the different risks to which it is exposed.
Categorisation of financial instruments Contractual financial assets Contractual financial liabilities Total - loans and receivables at amortised cost
2015 $ $ $ Contractual financial assets Cash and deposits 2,038,019 - 2,038,019 (i) Receivables 497,596 - 497,596 Other receivables 47,312 - 47,312 Term Deposits 4,300,000 - 4,300,000
TOTAL CONTRACTUAL FINANCIAL ASSETS 6,882,927 - 6,882,927
Contractual financial liabilities (i) Accounts Payable - 622,286 622,286 Fixed Rate Borrowings - TCV - 1,544,880 1,544,880
TOTAL CONTRACTUAL FINANCIAL LIABILITIES - 2,167,166 2,167,166
2014 Contractual financial assets Cash and deposits 6,356,883 - 6,356,883 (i) Receivables 718,648 - 718,648 Other receivables 44,699 - 44,699 Term Deposits 3,300,000 3,300,000
TOTAL CONTRACTUAL FINANCIAL ASSETS 10,420,230 - 10,420,230
Contractual financial liabilities (i) Accounts Payable - 1,015,741 1,015,741 Fixed Rate Borrowings - TCV - 1,629,551 1,629,551
TOTAL CONTRACTUAL FINANCIAL LIABILITIES - 2,645,292 2,645,292
(i) The total amount disclosed here exclude statutory amounts (e.g. amounts owing from Infringements, Victorian government and GST input tax credit recoverable, and taxes payable)
ANNUAL REPORT 2014/15 77 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2015
NOTE 19 FINANCIAL INSTRUMENTS CON’T
(b) Interest Rate Risk Exposure
The MHRMB’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
Table 19.1 Weighted Average Carrying amount Fixed Interest Variable Non-Interest Interest Rate ($) ($) ($) Interest ($) Bearing ($) 2015 Financial Assets Cash 1.59% 2,038,019 - 2,036,691 1,327 (i) Receivables 544,909 - - 544,909 Other financial assets 2.56% 4,300,000 4,300,000 - -
6,882,927 4,300,000 2,036,691 546,236
Financial Liabilities (i) Accounts Payable 622,286 - - 622,286 Fixed Rate Borrowings - TCV 6.58% 1,544,880 1,544,880 - -
2,167,166 1,544,880 - 622,286
2014 Financial Assets Cash 2.16% 6,356,883 - 6,354,512 2,371 (i) Receivables 763,347 - - 763,347 Other financial assets 3.24% 3,300,000 3,300,000 - -
10,420,230 3,300,000 6,354,512 765,718
Financial Liabilities (i) Accounts Payable 1,015,741 - - 1,015,741 Variable Rate Borrowings - TCV 6.58% 1,629,551 1,629,551 - -
2,645,292 1,629,551 - 1,015,741
78 MT HOTHAM RESORT MANAGEMENT BOARD NOTE 19 FINANCIAL INSTRUMENTS CON’T
Table 19.2 Maturity Dates 2015 Weighted Average Nominal Amount Not past due & Less than 1-3 months More than 1-5 years > 5 years Interest Rate not impaired 1 month 3 months - 1 $ $ $ $ $ $ $ $
Financial Assets Cash 1.59% 2,038,019 ------(i) Receivables 544,909 544,909 544,909 - - - - Other financial assets 2.56% 4,300,000 - 1,000,000 1,300,000 1,500,000 - -
6,882,927 544,909 1,544,909 1,300,000 1,500,000 - -
Financial Liabilities (i) Accounts Payable 622,286 622,286 622,286 - - - - Fixed Rate Borrowings - TCV 6.58% 1,544,880 - - 22,045 68,333 528,391 926,112
2,167,166 622,286 622,286 2,045 68,333 528,391 926,112
2014 Financial Assets Cash 2.16% 6,356,883 ------(i) Receivables 763,347 763,347 763,347 - - - - Other financial assets 3.24% 3,300,000 - 500,000 500,000 2,000,000 300,000 -
10,420,230 763,347 1,263,347 500,000 2,000,000 300,000 -
Financial Liabilities (i) Accounts Payable 1,015,741 1,015,741 1,015,741 - - - - Variable Rate Borrowings - TCV 6.58% 1,629,551 - - 20,652 64,017 517,064 1,027,818
2,645,292 1,015,741 1,015,741 20,652 64,017 517,064 1,027,818
(i) The total amount disclosed here exclude statutory amounts (e.g. amounts owing from Infringements, Victorian government and GST input tax credit recoverable, and taxes payable)
ANNUAL REPORT 2014/15 79 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2015
NOTE 19 FINANCIAL INSTRUMENTS CON’T
(c) Credit Risk Exposures The credit risk on financial assets of the MHRMB 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.
(d) 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.
(e) Liquidity Risk Liquidity risk arises when the MHRMB is unable to meet its financial obligations as they fall due. The MHRMB 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. 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.
(f) Interest Rate Risk Exposure to interest rate risk is insignificant and might arise primarily through the MHRMB’s interest bearing liabilities. Minimisation of risk is achieved by mainly undertaking fixed rate or noninterest bearing financial instruments. For financial liabilities, the MHRMB mainly undertake financial liabilities with relatively even maturity profiles.
(g) 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.
Financial Assets Carrying Amount $ -1.0% Surplus -1.0% Equity 1.0% Surplus 1.0% Equity
2015 Cash exposed to variable interest rates and short term deposits 2,036,691 (20,367) (20,367) 20,367 20,367
2014 Cash exposed to variable interest rates and short term deposits 6,354,512 (63,545) (63,545) 63,545 63,545
80 MT HOTHAM RESORT MANAGEMENT BOARD NOTE 20 EX GRATIA EXPENSES
2015 2014 Forgiveness or waiver of debt $2,186 - Compensation for economic fees $44,915 -
TOTAL $47,101 -
There were two ex grata payments which related to termination payments
NOTE 21 SUBSEQUENT EVENTS The MHRMB was not aware of any subsequent events
ACCOUNTABLE OFFICERS AND CHIEF FINANCIAL AND ACCOUNTING OFFICERS Accountable officer’s and Chief Financial and Accounting officer’s declaration. The attached financial statements for the MHRMB have been prepared in accordance with Standing Directions 4-2 of the Financial Management Act 1994, applicable Financial Reporting Directions, Australian Accounting Standards including Interpretations, and other mandatory professional reporting requirements. We further state that, in our opinion, the information set out in the comprehensive operating statement, balance sheet, statement of changes in equity, cash flow statement and accompanying notes, presents fairly the financial transactions during the year ended 31 October 2015 and financial position of the MHRMB at 31 October 2015. At the date of signing we are not aware of any circumstances which would render any particulars included in the financial statements to be misleading or inaccurate. We authorise the attached financial statements for issue on 11th December 2015.
Deborah Spring | Chairman Jonathon Hutchins | Chief Executive Officer Fiona Hammond | Chief Financial and Accounting Officer 11th December 2015 11th December 2015 11th December 2015
ANNUAL REPORT 2014/15 81 DISCLOSURE INDEX
LEGISLATION REQUIREMENT PAGE NO Accountable Officers Declaration SD 4.2 (j) Sign off requirements 2
Charter and Purpose FRD 22F Objectives, functions, powers and duties 8 FRD 22F Manner of establishment and responsible Minister 8 FRD 22F Nature and range of services provided 11
Financial Information FRD 22F Operational and budgetary objectives 14-17 FRD 22F Summary of financial results 12 FRD 22F Major changes or factors affecting performance 12 FRD 22F Subsquent events 12 FRD 22F Significant changes in financial positionduring the year 12
Governace and organisational structure FRD 22F & SD 2.2(f) Organisational structure 19 FRD 22F Occupational health and safety policy 18 FRD 22F Employment and conduct principles 18 FRD 29 & 22F Workforce data disclosures 18
Other Information FRD 10 Disclosure index 84 FRD 25 Victorian Industry Participation Policy disclosures 46 FRD 22F Details of consultancies in excess of $10,000 13 FRD 22F Details of consultancies under $10,000 13 FRD 22F Disclosure of government advertising expenditure 13 FRD 12A Disclosure of major contracts 13 FRD 22F Application and operation of Freedom of Information Act 1992 46 FRD 22F Compliance with Building Act 1993 33 FRD 22F Statement on National Competition Policy 45 FRD 22F Application and operation of Protected Disclosures Act 2012 46 FRD 22F Summary of environmental performance 40-42 FRD 22F Statement of availabilty of other information 46 SD 4.5.5 Risk management compliance attestation 44 MRO Compliance with VicData access policy 46 SD 4.5.5.1 Insurance attestation 44 PC 2012/02 Gifts, benefits and hospitality attestation 18 SD 4.2(g) General Information requirements Entire Document
Legislation Alpine Resorts (Management) Act 1997 8 Building Act 1993 33 Financial Management Act 1994 2 Freedom of Information Act 1982 46 Protected Disclosures Act 2012 46 Victorian Industry Participation Policy Act 2003 46
Print and Design FRD 30B Standard requirements for the design and print of the annual report Entire Document
Acronyms FRD - Financial Reporting Direction SD - Standing Direction MRO - Model Report of Operations PC - Premier’s Circular
82 MT HOTHAM RESORT MANAGEMENT BOARD Cover 300gsm Ecostar Uncoated Text 140gsm Costar An electronic copy of this document is available at www.mthotham.com.au Designed by JDdesign Printed by PMI Copyright State of Victoria, Mt Hotham Resort Management Board, 2015. This publication is copyright. No part may be reproduced by any process except in accordance with the provision of the Copyright Act 1968. Print ISSN 2201-3482 Online ISSN 2201-3512