Parks Annual Report 2016–17 Acknowledgement of Country

Aboriginal people, through their rich culture, have been connected to the land and sea, for tens of thousands of years. Parks Victoria respectfully acknowledges Aboriginal Traditional Owners, their cultures and knowledge and their continuing connection to and cultural obligation to care for their Country.

Parks and waterways

Parks Victoria manages many sites such as piers, waterways, ports, bays, historic buildings, trails, urban parks, small conservation reserves and large national and state parks. For the sake of brevity, these are collectively referred to in this document as ‘parks’, unless a specific type of site is stated. For further information about Parks Victoria and the parks it manages visit www.parks.vic.gov.au or call 13 1963. Copyright © State of Victoria, Parks Victoria 2017 Level 10, 535 Bourke Street, VIC 3000 ISSN 1448 – 9082 ISSN 1448 – 9090 (online) Published on www.parks.vic.gov.au

2 About Parks Victoria Contents

About Parks Victoria 4 Shaping Our Future 6 Healthy Parks Healthy People 7 Chairman’s message 8 Chief Executive Officer’s message 9 Our achievements 10 Strengthening Parks Victoria 12 Connecting people and parks 13 Conserving Victoria’s special places 19 Providing benefits beyond park boundaries 25 Enhancing organisational excellence 31 Compliance and disclosures 41 Compliance with the Australian/New Zealand Risk Management Standard 53 Financial report 54

Parks Victoria Annual Report 2016–17 3 About Parks Victoria

Who we are What we manage

Parks Victoria commenced operations on 12 December The network of parks that we manage includes 1996 as a statutory authority to manage Victoria’s national parks, marine parks and sanctuaries, diverse parks system. In recent years, the area that we wilderness areas, state and metropolitan parks, care for has increased to 18 per cent of the State or thousands of Aboriginal cultural places and post- 4.11 million hectares. European heritage sites, and around 70 per cent of Victoria’s coastline. Parks Victoria is also the Local We manage the estate in partnership with Traditional Port Manager for Port Phillip Bay, Western Port and Owners, government and non-government organisations, Port Campbell and the Waterways Manager for the park neighbours, friends’ groups and the broader Yarra and Maribyrnong rivers. community. Established under the Parks Victoria Act 1998, our functions are: Our ministers • to provide services to Victoria and its agencies for The responsible ministers for the reporting period were: the management of parks, reserves, and other land, under control of the State • from 1 July 2016 to 30 June 2017, the Hon Lily D’Ambrosio MP, Minister for Energy, • to provide services to Victoria and its agencies Environment and Climate Change for the management of waterways land (within the meaning of the Water Industry Act 1994) for • from 1 July 2016 to 30 June 2017, the purposes of conservation, recreation, leisure, the Hon Luke Donnellan MP, Minister for Ports. tourism or water transport • with approval of our Ministers, to provide services Regional boundaries to the owner of any other land used for public purposes, for the management of that land. Our organisation manages land and facilitates on- In carrying out our functions, we act in an water recreation across five regions: environmentally sound and responsible manner. • Melbourne Metropolitan Parks • Melbourne Marine and Maritime • Northern Victoria • Western Victoria • Eastern Victoria

Optimised map

4 About Parks Victoria Parks network Assets

Parks Victoria manages Parks Victoria’s built asset portfolio has an estimated 4 .1 million replacement value of hectares $1.8 billion This equals 18% and includes

46visitor centre buildings 757 shelters 830 toilets 512 viewing lookouts

45 national parks 58 playgrounds 26 state parks 15,500 kilometres of road (approx.) 60 other parks 1,321 pedestrian and vehicular bridges 30 metropolitan parks 3,700 kilometres of walking track (approx.) 2,700 natural features and conservation reserves 124 sporting facilities 202 piers and jetties 130 water access points 70% 1181 navigations aids of Victoria’s coast 13 marine national parks 11 marine sanctuaries

Visitation

Each year, Parks Victoria welcomes 106 million visits to the Parks Victoria estate, including

42.3 million 39 million 24.7 million to national and state parks to piers and jetties to metro parks

Parks Victoria Annual Report 2016–17 5 Shaping Our Future

Parks Victoria is a world-class park service ensuring healthy parks for healthy people.

Our purpose

At Parks Victoria, we inspire the community to conserve and enjoy Victoria’s unique natural and cultural heritage. Together, we care for Country and promote the value of our parks and waterways for the benefit of all Victorians and their visitors. As outlined in our long-term strategy Shaping our Future, Parks Victoria delivers these benefits by focussing our work across four strategic themes:

1. Connecting people 3. Providing benefits and parks beyond park boundaries

Improve the health and wellbeing of the Contribute to the safety, living standards and community through management of a parks wellbeing of Victorians. estate that is valued by the community.

2. Conserving Victoria’s 4. Enhancing organisational special places excellence

Increase the resilience of natural and cultural Focus on delivering our priorities to ensure assets in parks, and maintain ecosystem services continuous improvement and effective and in the face of climate change and other stressors. efficient delivery of services.

organisational ing exc nc elle ha nc En e

Connecting people and parks

Vision Conserving Providing benefits Victoria's Purpose special places beyond park boundaries

V i c s t t o n r e ia n m it P u m b m li o c c S ’s er ia vi or ce t v ic a s V lu rk es Pa

6 Shaping Our Future Healthy Parks Healthy People

By experiencing, understanding and benefitting from the values generated by parks, people invest in, advocate, care, and act for the health of parks.

Traditional Owners have long understood the integral Our commitments link between nature and human health and wellbeing, as expressed by the phrase ‘Care for Country and Supporting our vision, purpose and approach are six Country cares for you’. commitments that enable Parks Victoria to be a high- Parks Victoria’s adoption of Healthy Parks Healthy performing organisation. Our six commitments are: People builds on this traditional knowledge and • put safety first reflects an ever-growing body of research that • provide excellent customer service confirms that the time we spend connecting with nature has a positive impact on our health and • collaborate wellbeing. • lead innovation Healthy Parks Healthy People aims to unlock the • be accountable power of nature and parks for their preventative and • act with integrity. restorative health and wellbeing benefits, whilst also conserving biodiversity. Healthy Parks Healthy People is our approach. it has Our values become a global movement, and became part of Parks Victoria staff subscribe to the seven core values IUCN policy in 2016–17. of the Victorian Public Sector Code of Conduct. These values are: • responsiveness • integrity • impartiality • accountability • respect • leadership • human rights.

Healthy Choices program

Parks Victoria continued its partnership with Nutrition and the Department of Health and Human Services in 2016–17 to encourage improved nutrition for visitors to Parks Victoria-managed outlets and to staff. By putting health at the centre of our everyday lives through a place-based systems approach to prevention and health promotion, this increases access to healthy foods and drinks in the places where people spend their time. Healthy Choices Policy Guidelines for Parks is a settings-specific approach to implementing Healthy Choices that was developed and released in December 2016. All five Parks Victoria-managed food outlets are in the process of implementing the Healthy Choices guidelines. They were assessed using the Healthy Choices food and drink classification guide and recommendations for improvements were made.

Parks Victoria Annual Report 2016–17 7 Chairman’s message

A strengthened Parks Victoria will benefit all Victorians and park visitors.

In accordance with the Financial Management Act These learnings informed the development of 1994, I am pleased to present the 2016–17 Parks a business case and funding bid in the 2017 State Victoria Annual Report, my sixth and final report Budget, which resulted in a really positive outcome as Board Chair. for Parks Victoria (details of which are outlined on page 12 of this report). The benefits of this work 2016–17has been one of great achievement and will materialise in the 2017–18 year and for a number considerable progress for Parks Victoria. We have of years to come. seen off some challenges and proactively pursued an ongoing change process, which has included As I complete my tenure as Board Chair, I look back a further restructuring of our Executive team, and with great pride on our achievements during the the appointment of a new Chief Executive Officer, last six years, and feel great optimism about Parks Matthew Jackson, in February 2017. Under his Victoria’s future. leadership, together with the Board’s commitment to best-practice governance and outcomes, Parks Victoria is positioned to be a stronger, more sustainable organisation. We have continued to partner with key stakeholders, including our communities, Traditional Owners, volunteers and all levels of government, in order to achieve our objectives. The effort and commitment Andrew Fairley AM of our 968 staff to implement our vision to be a Board Chair 2011–2017 world-class park service for all Victorians and our visitors has been profound. A key example of our community engagement in 2016–17 was our Strengthening Parks Victoria project. An extensive consultation process identified the key priorities that we need to provide and deliver for our various communities, and provided the foundation for a report to the Minister in early 2017, which outlined seven key learnings.

8 Chairman’s message Chief Executive’s message

To deliver on the community’s vision, Parks Victoria’s operations must keep pace with their needs.

Since starting with the team in February 2017, I have for Health. Growing scientific evidence and been inspired by the diversity of our work and by the generations of traditional knowledge show that talent, commitment and knowledge of our people, spending time in nature is good for our mind, body as one of the largest nature-based tourism providers and soul. Contact with nature is critical for our in Australia, with over 106 million visits to our parks physical, mental, social and spiritual health. each year. This Statement underpins Parks Victoria’s Healthy Parks Victoria continues to undergo significant change Parks Healthy People philosophy that aims to unlock and restructure, which brings with it many positives the power of nature and parks for their preventative but also many challenges and opportunities. Further and restorative health and wellbeing benefits, while improvements to our executive structure were made conserving biodiversity. For Parks Victoria, Healthy in 2016–17 to ensure we continue to provide our Parks Healthy People is the very foundation of how services efficiently and effectively to the community, we manage parks and gives us the opportunity our partners and to government, while also raising to improve the health of both our parks and the profile of Parks Victoria’s estate. communities. While the knowledge and commitment of our staff Our commitment to working in partnership cannot be questioned, it is vital that we have the with Traditional Owners was affirmed with the right systems and processes in place to collect and finalisation of the Managing Country Together share that knowledge with each other, our partners, approach. This will enable the organisation to government and the wider public. Our relationships respond to the expansion of joint management with government, stakeholders, volunteers, arrangements across the State, build our capacity to Traditional Owners and the community are also vital engage effectively and appropriately with Traditional in ensuring effective outcomes for all. Owners and comply with legislative obligations for cultural heritage management. We believe that this This approach will assist in ensuring our actions approach represents leadership across government and decisions are underpinned by an evidence- in delivering existing commitments and positions based approach and in turn provide us with the us as a world-class parks agency operating under authority to develop and pursue the programs we international best-practice standards. know will deliver more effective and efficient park services and enable our organisation to deliver This annual report provides an outline of our service on existing commitments, while building solid delivery and key achievements in our 20th year of foundations required for our future sustainability operation (2016–17), and I look forward to more and performance. to come in the 2017–18 period and beyond, which promises to be an exciting time for Parks Victoria. A significant outcome for Parks Victoria was the announcement of $31.8 million from the State Budget. This funding will deliver up to 60 rangers to enhance front-line capacity, a significant upgrade and transformation of our online and social media platforms, and further development of our asset management system. A further significant commitment by the State Government of Victoria was the signing of a Joint Matthew Jackson Statement between the Minister for Energy, Chief Executive Officer Environment and Climate Change and Minister

Parks Victoria Annual Report 2016–17 9 Our achievements The year in review

Connecting people Conserving Victoria’s and parks special places Page 13 Page 19

Strategic directions Strategic directions

• More people having outstanding • Improve the resilience of ecosystems, experiences in parks ecological communities and species • Foster lifelong connections of people to parks • Conserve and restore ecological processes and their Country of priority habitats • Provide engaging ways to connect with and • Base our actions on Aboriginal knowledge, enhance individuals’ experience while in parks contemporary science and risk • Provide quality infrastructure for visitors • Promote enjoyment and understanding to enjoy of our natural and cultural heritage, and conserve and manage important sites with the community 2016–17 highlights • Partner with Traditional Owners in caring for Country and protection of cultural • Over 106 million visits • Construction of places and landscapes to Victoria’s parks estate a Changing Places facility at Arthurs • Almost 3.9 million visits Seat State Park to the Parks Victoria 2016–17 highlights website • Two major works projects recognised • Engaged 221,794 • Reinstated the • Treated over 1.1 million at the 2016 National volunteering hours regulations prohibiting hectares to minimise Landscape Architecture across 150 parks dogs to protect all impacts of pest plants Awards in Canberra: to deliver park services, wildlife, including and animals, including activities and programs • Parks and Open Space threatened species like trial goat and deer – Award of Excellence: Hooded Plovers and control projects with • Distributed over 67,500 MacKenzie Falls Gorge White-footed Dunnarts volunteers promotional guides, Walk within the Mornington brochures and other • Enforcement capability Peninsula National Park marketing material • Land Conservation: enhanced with 40 Landscape Architecture • Completed the Wilsons Authorised Officers now • Launched the Learning Award – Shipwreck Promontory Conservation trained to safely deal in Nature Strategic Plan Coast Master Plan Action Plan (CAP) and with aggressive and 2017–2021 commenced the next uncooperative offenders • Delivered education and • Finalist in the Premier’s six CAPs across our interpretation activities • Mt Eccles National Park Sustainability Awards 16 landscape districts to over 217,000 visitors was renamed, restoring for Working Beyond • Developed smartphone the Boundaries Program apps for Historic Heritage traditional name, at Werribee Park Assessment and Cultural National Park • Parks Victoria and Heritage Assessment AMAZE receive the • Contributed to the issue runner up award for of over 300 permits to Community Inclusion research partners to at the 2016 Annecto identify and address key Awards for the Brimbank issues in our parks Park social scripts for autism project

10 Our achievements Providing benefits beyond Enhancing organisational park boundaries excellence Page 25 Page 31

Strategic directions Strategic focus areas

• Assist in keeping Victorians safe • Improve stakeholder and community engagement • Grow world-class nature-based visitor economy opportunities in parks • Partner better with government to achieve • Actively promote and market the value valuable outcomes for Victorians of park ecosystem services in contributing • Engage meaningfully and respectfully to productive, healthy and prosperous with Traditional Owners Victorian communities • Model leadership and accountability as a primary focus 2016–17 highlights • Modernise Parks Victoria

• Healthy Parks Healthy • Over 102,250 bookings People approach at our camping and 2016–17 highlights becomes IUCN Policy accommodation sites, catering for over • Protecting Victoria’s • Received $31.8 million • Commenced the 230,000 visitors Biodiversity 2037 in funding as part of implementation of the Plan launch at World • Completed all 114 the Strengthening Parks Digital 2020 Strategy Conservation Congress projects in the Good Victoria project. • Established a new Neighbour Program • Supported the response • Celebrated our 20th Stakeholder and to numerous search and • Involved with seven anniversary with our Community Engagement rescue incidents (parks traditional burns and community and partners Framework and marine-based) related activities across • Won a Gold Quill • Increased the proportion the State • Completed planned ‘Excellence in of female staff in our burns on 31,929 • Issued more than 1,300 Communications Award’ workforce hectares of Parks Victoria permits to facilitate more for our Safety First Zero • Developing Parks managed land than 2,200 community Injuries initiative Victoria’s first Diversity and commercial events, • Delivered the Valuing • Launched ParkConnect, and Inclusion Plan filming and photography Nature workshop connecting Parks • Certified to operate at the 2016 World • Established a Parks Victoria’s information, Remotely Piloted Conservation Congress Victoria-led Health and systems, processes and Aircraft (RPA) for Wellbeing Specialist people with its customers • Contributed 24 per cent internal business. Group as part of the of our workforce to and stakeholders IUCN World Commission respond to fire and other • Won an OpenGov on Protected Areas emergency events award for Recognition • Supported DELWP in of Excellence for responding to 1,014 fires ParkConnect (13,529 hectares)

Parks Victoria Annual Report 2016–17 11 Strengthening Parks Victoria

Just as our landscapes and nature adapt to change, so must we.

Strengthening Parks Victoria was a joint 2016–17 A business case was developed and submitted for project with the Department of Environment, Land, funding consideration as part of the 2017–18 Water and Planning (DELWP) to better understand State Budget process. the community vision for parks, and how Parks This saw a positive outcome for Parks Victoria, Victoria should modernise its management, service with several significant budget announcements. offering, workforce and governance to deliver on Key outcomes for Parks Victoria in the 2017–18 that vision. Budget included: The Strengthening Parks Victoria project focused Unlocking the Benefits of Parks for Victorians: on community and stakeholder engagement in Strengthening Parks Victoria metropolitan and regional Victoria – talking to groups and individuals about the value parks hold, $31.8 million for: as well as exploring what services and experiences • 60 additional rangers Parks Victoria can offer to make a difference to communities, regional economies and the • upgrade of the Parks Victoria website environment. • establishment of an asset management system. Following a lengthy community consultation Enhancing Victoria’s liveability through process, a report was prepared for the Minister for improvements to the parks and reserves estate Energy, Environment and Climate Change on what the Victorian community hopes for its parks, and $22.8 million to: what we need to do to become a world-class parks • begin acquiring land for the establishment for management agency. three new urban parks at Werribee Township, The report, titled ‘Unlocking the Benefits of Parks for Cranbourne and Kororoit Creek Victorians: Strengthening Parks Victoria’ provided • incorporate Anglesea Heath into the Great Otway recommendations in the areas of community, workforce, National Park. stability and leadership, collaboration, partnering with Traditional Owners, and knowledge and evidence. The report was well-supported by the Minister for Energy, Environment and Climate Change, Lily D’Ambrosio.

12 Strengthening Parks Victoria Connecting people and parks

Improve the health and wellbeing of Victorian’s through the management of a parks estate that is valued by the community.

More people having In 2016–17, Parks Victoria’s parks and recreational activities were also promoted at 80 public events outstanding experiences throughout Victoria, including the 15th World in parks Congress on Public Health and the highly popular Melbourne Boat Show, held annually in June and attended by more than 21,000 people. Growing scientific evidence and generations of traditional knowledge show that an individual’s mind, body and soul benefit from having access to nature. Visitor Experience Framework In 2016–17, over 106 million visitors accessed Parks Victoria’s Visitor Experience Framework (VEF) Victoria’s parks. The visits were across the entire assists the organisation to deliver appropriate and Parks Victoria estate and included: targeted visitor experiences. • 42.3 million visits to national and state parks The rollout of the VEF continued in 2016–17: • 24.7 million visits to major metropolitan parks • Draft management plans were developed for 45 visitor experience areas in the River Red Gum • 39 million visits to piers and jetties. Landscape. This continues the long-term trend in increasing • Strategic planning was completed at Lake Eildon parks visitation, with a 7.6 per cent increase in total National Park to guide future levels of service and visitation compared to 2014–15. This includes an infrastructure requirements for five campgrounds, 11.9 per cent increase in visits to national and state six day visitor areas and the network of trails in parks, and a 54.3 per cent increase to metropolitan the Fraser visitor experience area. parks. Visitation to piers and jetties dropped 14.3 per cent. • Training was completed by staff in Western Victoria and validation is underway for all Parks Victoria’s website, www.parkweb.vic.gov.au, visitor sites in that region including the South has received almost 3.9 million visits; we have 65,490 West, , Great Otways and Grampians Facebook followers; and our Information Centre Landscapes. fielded over 128,923 phone calls to 13 1963 and responded to 17,766 emails from members of the The rollout will continue in 2017–18 with a focus public requesting park information and assistance on site validation across all other landscapes. and bookings for campsites.

Reach Parks Victoria encourages and enables visitation to parks by servicing 3.9 million visits to the Parks Victoria website per year

128,923 65,490 10,530 17,766 phone calls to the Facebook followers Twitter followers emails to the Information Centre Information Centre

Parks Victoria Annual Report 2016–17 13 Delivering our master planning program • Point Cook Coastal Park – Parks Victoria’s future Parks Victoria continues to develop long term master approach to planning and prioritising climate plans in partnership with the community to ensure change factors, was exemplified by inclusion the delivery of outstanding park experiences for of the Point Cook Coastal Park case study in all Victorians. Victoria’s Climate Change Adaptation Plan released in 2016. Delivery of the master planning program included: Delivery of Local Port Major Works included • Falls to Hotham Alpine Crossing Master Plan significant progress on the breakwater works – consultation on the draft was completed in (completed in May 2017) and commercial berthing early 2017, for finalisation in mid-2017 with jetty at Portarlington completed in December 2016. the project being delivered in partnership with Two contracts for the remaining works have been Tourism North East, Visit Victoria and Regional awarded, which are due for completion in late 2017. Development Victoria Maritime planning in 2016–17 included: •  National Park Master Plan Renewal – consultation was completed on a Discussion • collaboration with key stakeholders to develop a Paper in 2016 and the Draft Master Plan in early design response for the replacement of a section 2017. The final plan is prepared for release in of Middle Brighton Pier constructed in 1938 mid-2017. The revised plan places a stronger • investing in the environmental, social, and emphasis on the Park’s broader visitor economy technical requirements and costs for undertaking context, highlights the Park’s natural and cultural significant dredging in Williamstown, to ensure values and their relevance beyond the park; the viability of the clubs and businesses that and includes a more robust implementation operate within this location framework • supporting the implementation of the Portarlington • Albert Park Master Plan – consultation on the Safe Harbour by developing a sand management Vision and Concept Framework was completed plan for the harbour, and planning for access to in late 2016 the Eastern Breakwater with the Wadawurrung • Olinda Golf Course Precinct Plan – consultation Aboriginal Corporation and Bellarine Bayside on the draft was completed in 2016. The final Foreshore Committee of Management. plan was approved and released in May 2017 in collaboration with the Shire of Yarra Ranges. Funding has been allocated to implement key components of the precinct plan including a playspace and sportsground development

Working Beyond Boundaries program at Werribee Park

Parks Victoria’s Working Beyond Boundaries program at Werribee Park is helping many of our culturally and linguistically diverse communities gain employment and language skills while connecting with their local park, to the benefit of both the people and the park. The program includes a thriving community garden program, complete with a horticultural educational facility. After lengthy discussions by AMES Australia with Parks Victoria and the local Somali community, the kitchen garden at Werribee Park welcomes local Somali community members, who will come to tend the gardens alongside the Karen community. The Somalis are also keen for some of their young adults to enter the traineeship program in parks and garden maintenance.

14 Connecting people and parks Foster lifelong connections Junior Ranger Program The Junior Ranger program was delivered in 58 parks of people to parks and attracting 10,208 participants. The Junior Ranger their Country website received 140,000 page views from 16,800 users. Over 65 per cent of users were new to the Parks Victoria supports and develops future site. Over 5,200 self-guided activities were uniquely park custodians by providing a wide range of downloaded. Currently, 5,500 subscribers receive learning and development opportunities through quarterly emails encouraging park visitation and education, interpretation and partnership programs. outdoor play. Development of programs such as Junior Ranger and A new Junior Ranger activity book was produced, Bush Kinder allow children to learn about our park focusing on fire, and a new sticker was developed ecosystems in an exciting and engaging ways. celebrating the turtle totem of the Yorta Yorta people. Seven delivery guides and a staff training Education and Interpretation program were developed to support consistent, high Parks Victoria delivered face-to-face education and quality delivery to the community. interpretation activities to 217,093 visitors across A partnership with Fisheries Victoria delivered joint 67 parks in 2016–17. Education and interpretation Learn to Fish – Junior Ranger activities at Werribee experiences are powerful tools to strengthen the and Albert Park attracting 120 children. connection of people of all ages to parks. The provision of inspirational and educational experiences for children builds the foundations for a lifelong Engaging partners and volunteers connection to parks. Over 2016–17, volunteers contributed over 221,794 hours of time to our programs and activities in On World Environment Day (Monday 5 June 2017) managing Victorian parks and reserves – equal Parks Victoria Chief Executive Officer Matthew to more than 29,183 days. The outstanding Jackson launched the Learning in Nature Strategic contributions of these volunteers were recognised Plan 2017–2021. The document outlines a new in December 2016 with 29 groups and individuals vision and direction for education and interpretation receiving Kookaburra Awards. There were 67 over the next four years, with a strong focus on nominees for this year’s awards, which are held connecting people with parks and fostering lifelong every two years and presented by Parks Victoria. connections between people and our natural spaces. Ranger-guided activities were delivered to 25,332 school children across 30 parks. The parkweb/ learning platform was updated to incorporate 32 self-guided excursions for schools, aligned with the new Victorian Curriculum, and four park excursion guides were developed.

Junior Ranger Bioblitz

In September 2016, Parks Victoria conducted its inaugural Junior Ranger bioblitz. Three hundred observations capturing 120 different species were made. The initiative utilised technology to augment the in-park experience, helping families discover and notice more of the animals and plants around them.

Parks Victoria Annual Report 2016–17 15 Other key achievements in 2016–17 included: Provide engaging ways to • Parks Victoria developed an innovative online connect with and enhance volunteer management system, ParkConnect. ParkConnect promotes both park and affiliated individuals’ experience group volunteer opportunities to the wider while in parks community. Over 40 groups have been trained and are now using the system. Improved equity of access for all visitors is a key • Parks Victoria managed 63 Campground Host objective for Parks Victoria. Consistent with these Volunteers across 14 parks, the largest intake objectives and its legislative obligations, Parks Victoria since its inception. developed a Disability Action Plan which outlines a wide range of actions to improve accessibility and • The Volunteer Track Ranger program was inclusion for people with a disability. expanded from one location to three for the first time in seven years, with 30 Volunteer Parks Victoria continued to work with AMAZE, the Track Rangers aiding hikers at the Great Alpine, peak body for people on the autism spectrum, Grampians and Wilsons Promontory national parks. to develop a new visitor resource (Illustrated stories, known as ‘social scripts’) at . The resource assists children on the autism spectrum to more easily enjoy being in the parks and nature. Social scripts are also available in Brimbank Park. A Changing Places facility was constructed as part of a new visitor amenities building at Arthurs Seat State Park to support visitors with special needs who visit may visit the park and other park locations in the Mornington Peninsula region. The Changing Places facility is designed for visitors with high support needs who cannot use standard accessible public

16 Connecting people and parks toilets. The facility comprises of an electric height- In October, Parks Victoria received awards for two adjustable adult change bench, a ceiling hoist, a fully of its major works projects at the 2016 National accessible toilet, shower and wash basin. This is the Landscape Architecture Awards in Canberra: first Changing Places facility constructed in parks • Parks and Open Space – Award of Excellence: managed by Parks Victoria. MacKenzie Falls Gorge Walk

Seasonal Ranger Program • Land Conservation – Landscape Architecture Award: Shipwreck Coast Master Plan. Seasonal employees are engaged to increase Parks Victoria’s capacity in high-visitor-use parks. They are Other key projects undertaken in 2016–17 included: employed to provide general service delivery and • upgrade works at Chalet targeted education and interpretation programs across the five regions. • Portarlington Safe Harbour In 2016–17, 37 seasonal rangers were employed, • implementation of safer swimming and boating including 23 employees new to Parks Victoria. zones at Western Port and the Bellarine Peninsula.

Asbestos management program Provide quality The Asbestos Management Program implements infrastructure for systems and processes to manage the risk of asbestos visitors to enjoy safely at an organisational level. Highlights from the 2016–17 Asbestos Program include: Parks Victoria has improved its overall quality of • assessment of approximately 1,500 assets to built assets, including upgrades, replacements and identify asbestos removals. Parks Victoria has improved its internal processes by implementing ParkView Assets, an • development of a centralised asbestos register improved user interface and a new mobile app • approval of key procedures for the management enabling real-time condition assessments and of asbestos and waste management. asset validation. In partnership with the community, Parks Victoria has delivered major infrastructure projects on time and within budget, such as Grampians Peaks Trail, Shipwreck Coast Master Plan Stage 1, development of Junction Oval, relocation of Albert Park Depot and contributed to the construction of Arthurs Seat Skylift. An expanded technical assessment program was completed across the state, including: • approximately 1,600 assets • 77 bridges and crossings on public roads • 58 playgrounds/playground structures • annual dam inspection and monitoring program for 11 nominated sites. These assessments will inform the development of the strategic capital investment programs for the asset portfolio.

Parks Victoria Annual Report 2016–17 17 Key performance indicators

Definition of year end result:

Target met  Target has been met or exceeded within agreed timeframes Target not met  Target has not been met – exceeds 5% variance Target has not been met – within 5% variance No result Recorded as NM = No measure

* Denotes also a Budget Paper 3 (BP3) performance measure. Connecting people and parks

2015–16 2015–16 2016–17 2016–17 Year end Performance indicator target actual target actual status

Level of satisfaction of visitors to parks 65–70% 84.9% 80–85% NM

Number of visits to Parks Victoria managed estate (millions) 98 NM 98–100 106 

There was a significant increase in visitation compared to the previous result in 2014–15. The result includes 42.3 million visits to national parks (up 28 per cent) and 24.7 million (up 44 per cent) to major metropolitan parks.

Number of visits to National, State, urban and other terrestrial parks* (millions) 54 NM 54–55 67 

Number of visits to piers and jetties (millions) 44 NM 44–45 39

Total participation in Parks Victoria guided Interpretation and Education activities No target NM 24,000 37,100 

This figure does not include interactions at Buchan Caves. With Buchan Cave tours included, total interaction is 224,613 participants. This measure exceeded target by over 13,000 participants.

Number of volunteer hours contributed to Parks 185,000– 185,000– Victoria programs and activities 220,000 220,947 220,000 221,794 

Percentage of parks assets in average to excellent condition* 83% 88% 88% 88.5% 

A tactical upgrade to the existing asset system was implemented during 2016–17. A new measure in the asset space will be developed for 2018–19.

Percentage of bay assets in average to excellent condition* 70% 82% 75% 78% 

Asset data was updated at the end of 2016–17 to remove assets which are leased and all aids to navigation data. The condition of assets within the bays estate are in decline with the lack of investment in capital works and ongoing maintenance. Changes in condition following technical inspections or storm events resulted in as service reduction at Cowes Jetty, Dromana Pier, St Leonards Pier, Black Rock Jetty, Kerferd Road Pier and Seaford Pier where all these assets have been closed to vehicular and crowd loading.

18 Connecting people and parks Conserving Victoria’s special places

Increase the resilience of natural and cultural assets in parks and maintain ecosystem services in the face of climate change and other stressors.

Improve the resilience Through conservation action plans, Parks Victoria is developing clearly defined conservation outcomes of ecosystems, ecological and priorities for specific on-ground strategies and communities and species activities that can be implemented, monitored and adapted. The conservation action plan for the Wilsons Conservation planning Promontory Landscape has been completed and Parks Victoria is developing conservation action plans published. Plans for the Greater Otways, River Red for each of Victoria’s 16 landscapes (see map below) Gum and Wimmera landscapes are at a draft-for- to guide investment in environmental protection, stakeholder consultation phase, and planning is improvement and restoration of the public land in progress for the Western Plains and Wetlands, conservation estate. , and Gippsland Plains and Strzelecki landscapes.

Parks Victoria Annual Report 2016–17 19 Protection of threatened species • feral horse management in the Parks Victoria aims to improve, restore or minimise • Deer Control Programs in the Dandenong and threats from invasive weeds and pests to habitats Yarra Ranges or ecosystems. • implementing VEAC recommendations in the In 2016–17, Parks Victoria continued to work with Yellingbo Conservation Area the community and key partner agencies to actively • Nooramunga sea urchin control project manage threatened species. In addition to these programs, Parks Victoria reinstated regulations along • French Island koala relocation the Mornington Peninsula National Park prohibiting • monitoring the effects of planned burning on the dogs, to further protect all wildlife, including Smokey Mouse in the Yarra Ranges National Park. threatened species like Hooded Plovers and White- footed Dunnarts, and constructed a fish passage and park access project in the Warby-Ovens National Park Fire ecology which has seen improvement in native fish migration. Victoria takes a landscape approach to strategic bushfire management, which informs fire operations undertaken by DELWP and Parks Victoria. Strategic Conserve and restore bushfire management plans are developed to ecological processes manage bushfire risk on public land by using world- leading technology to simulate bushfires and to of priority habitats understand the level of risk for each community. Staff work closely with communities and stakeholders to prioritise assets and values for protection. Habitat protection The maintenance of ecosystem resilience is Invasive weeds, pests and animals threaten the long- incorporated into strategic bushfire management term health and condition of habitats. Effects include planning, including placement of burns to reduce destroying habitat, degrading fragile vegetation, the amount burnt below minimum tolerable fire disturbing soil and causing erosion. Program intervals for different ecosystems. Further tools, conducted in 2016–17 to manage and control these including vegetation growth stages and species threats to minimise impact on natural and cultural relative abundance measures, are also being values included: developed and implemented.

French Island National Park Koala Program

Parks Victoria continued the maintenance of its Koala welfare and woodland habitats on French Island. A French Island Koala Management Plan as well as French Island Koala Management Actions were developed by Parks Victoria and DELWP and will be implemented over the next 5–10 years. Tree canopy assessments and animal health checks in July 2016 led to the implementation of a Koala fertility control program on French Island in September 2016. 421 female Koalas were treated with contraceptive implants, returned to capture sites and released. During April and May, a large-scale Koala translocation program was then undertaken by Parks Victoria and DELWP. From French Island, 723 Koalas were translocated: 288 to Tallarook State Forest and 435 to . All females translocated were treated with contraceptive implants to minimise browsing impacts at the receiving sites. It is envisaged that Koala population management via fertility control and translocation will continue to be delivered by Parks Victoria and DELWP in 2017–18.

20 Conserving Victoria’s special places Seven strategic bushfire management plans (Alpine • examining how different remote sensing and Greater Gippsland, Alpine and North East, approaches can be used to assess the status Barwon-Otway, East Central, Mallee and Murray of natural values and threats, as well as the Goulburn, South Western and West Central) covering effectiveness of management in parks and the entire state are now being implemented, with the reserves across the state majority also having finalised monitoring, evaluation • continuation of a multi-partner project to and reporting (MER) plans. develop the world-first decision tools to predict Local monitoring implementation plans have also how different management plans will affect been developed to guide Parks Victoria and DELWP the persistence of coastal ecosystems and their staff to implement monitoring priorities from the capacity to sequester carbon. MER plans. Environmental monitoring Base our actions on Monitoring is a fundamental part of good park management. It is essential for understanding the Aboriginal knowledge, state of our natural values, and the things that contemporary science threaten them, as well as enabling us to evaluate how well we are addressing these threats and and risk conserving and protecting Victoria’s special places. This leads to on-going improvement in effectiveness by highlighting where we are doing well and where Research programs we can improve. In this rapidly-changing world, high-quality science In 2016–17, our environmental threat monitoring is essential to help us address important knowledge included: gaps and make good decisions. • weeds in the Alpine, Brisbane Ranges, Through our Research Partners Program, Parks Grampians, Great Otway and Yarra Ranges Victoria works collaboratively with its partners from national parks, Mt Arapiles Tooan State Park and leading research institutions across the State to tackle Jilpanger Nature Conservation Reserve important issues and help to improve the way our parks and reserves are managed. • foxes in the Grampians and Great Otway national parks as part of the Grampians and Otway Ark In addition to working with our research partners, programs, Little Desert National Park and various more than 300 permits were issued in 2016–17 parks in East Gippsland and south-west Victoria to other researchers from a diverse range of and as part of cross-tenure Ark programs institutions across Australia and around the world to undertake research in areas managed by Parks • feral cats in the Grampians and Great Otway Victoria. There are currently more than 2,500 active national parks researchers working in parks and reserves, all making • overabundant native wildlife, including a substantial contribution that can help inform and kangaroos, in Mallee national parks and at improve park management. Serendip Sanctuary and koalas in French Island In 2016–17, projects supported through the Research and Mt Eccles national parks. Partners Program addressed a broad range of topics Monitoring of natural values included: including: • rapid assessment of environmental condition • improving how the impacts of fire on biodiversity using Parks Victoria’s new Park Health Check are measured and considered in managing tool at Delatite Bushland Reserve, Mt Piper fragmented landscapes Nature Conservation Reserve, Traralgon South Flora and Fauna Reserve

Parks Victoria Annual Report 2016–17 21 • small native mammal monitoring in • citizen science surveys as part of the Sea Search Cobboboonee, Grampians, Great Otway, Little program and the Reef Life Survey program for Desert, Lower Glenelg, Mornington Peninsula and seagrass, and intertidal and subtidal reef habitats, Wilsons Promontory national parksthreatened in Port Phillip Heads, Wilsons Promontory and bird species such as the Plains Wanderer in the Corner Inlet marine national parks, Corner Inlet northern plains (including Terrick Terrick National and Nooramunga marine and coastal parks, Park), Regent Honeyeater in Chiltern-Mt Pilot and Merri, Eagle Rock, Point Cooke, Jawbone, National Park, Malleefowl in parks and reserves Mushroom Reef and Beware Reef marine across northern and western Victoria, and sanctuaries. Hooded Plovers on beaches across the state. Marine Protected Area monitoring included: Compliance programs In 2016–17, Parks Victoria invested in enhancing its • supporting the Great Victorian Fish Count to enforcement capability with 40 Authorised Officers record fish diversity and species in Victoria’s receiving advanced training to safely deal with marine protected areas, and marine pest, shorebird, aggressive and uncooperative offenders. The training and seagrass monitoring in Port Philip and Western included improved tactical communications and the Port, as part of the annual Two Bays program use of defensive safety equipment. • invasive marine pest control activities in Port These officers now share common training standards Philip Heads Marine National Park with delivery partners in the DELWP, the Game • use of a range of new monitoring approaches Management Authority and Victorian Fisheries and technology (e.g. towed video, baited remote Authority and can provide a cooperative response underwater video stations and drones) alongside with these agencies to environmental crime on land more traditional approaches (e.g. diver-based and water managed by Parks Victoria. visual census) In 2016–17, several major offences detected by Parks Victoria’s Officers were concluded in court. The most notable of these was Operation Red Dust, an operation which investigated and convicted four men who shot and killed or injured 23 Eastern Grey and Red Kangaroos in .

Bush Blitz Eastern Region

Bush Blitz is Australia’s largest species discovery program and is a partnership between the Australian Government, BHP Billiton, Sustainable Communities and Earthwatch. Based in and around Mallacoota, more than 45 participants focused their efforts within Croajingolong National Park and on Gabo Island, as well as adjoining seas. The Bush Blitz took place over two weeks in November and early December 2016. More than 60 species of fish, 23 reptile and frog species and over 300 moth species were recorded, while around 300 marine algae samples were also collected. The ‘blitz’ included a community day held at Mallacoota with over 300 attendees, most of them locals, to learn about the discoveries. Parks Victoria is particularly proud to have been involved in this important program of environmental research and community learning.

22 Conserving Victoria’s special places Promote the enjoyment The Heritage Asset Management Application (HAMA) is a tool developed to document the condition of the and understanding of heritage fabric of key heritage assets and the cost our natural and cultural of repairs and catch-up maintenance. The two-year program will survey the 75 major heritage sites across heritage, and conserve Victoria. In 2016–17, 190 assets across 42 significant and manage important heritage places were surveyed, meeting the KPI for surveying 50 per cent of significant heritage sites. sites with the community

Parks Victoria continued to protect the 12,000 formally Partner with Traditional registered Aboriginal cultural heritage places and 3,000 historic sites it is responsible for. The integrity Owners in caring for of our cultural landscapes and built heritage are Country and protection protected through timely conservation and protection works. We work in partnership with key heritage bodies of cultural places and and local communities, to preserve, and promote the landscapes use, access and enjoyment of these special places, while respecting cultural heritage values for all users Parks Victoria continues to work with Registered now and into the future. Aboriginal Parties and Traditional Owners in identifying landscapes, places and sites of significance Initiatives undertaken in 2016–17 to manage and to develop sustainable protection and Aboriginal heritage in our parks included: management plans. • restoring the Gunditjmara traditional name, A key initiative undertaken in 2016–17 to progress Budj Bim, at Mt Eccles National Park these partnerships was the development of the • completion of protection works in five of the Managing Country Together Framework. Parks 140 rock art shelters on the parks estate Victoria has committed to a new organisational approach that will prepare us for a future of jointly • commencing a long-term partnership with managing cultural landscapes with Traditional Owners. Barengi Gadjin Land Council to conserve internationally significant Aboriginal rock art Achievements to date include: in Western Victoria. Parks Victoria is responsible • foundations to establish enduring partnership for managing over 140 recorded rock art sites agreements with five Registered Aboriginal Parties on the parks estate. • co-hosting a forum with Traditional Owner Managing cultural heritage sites in our parks Land Management Boards to explore the current included highlights such as: strengths and challenges in implementing • continued development of the Heritage Asset joint management Management Application • operational support provided to ranger teams • confirmation of $1 million in heritage funding and in the delivery of joint management plans for seven historic places, including $500,000 for and projects Days Mill near Murchison • support for Dja Dja Wurrung Clans Aboriginal • announcement of the Living Heritage Grants Corporation to refresh their Country Plan. Program in December 2016 • completion of a Heritage Landscape Management Framework for Castlemaine Diggings National Heritage Park.

Parks Victoria Annual Report 2016–17 23 Key performance indicators

Definition of year end result:

Target met  Target has been met or exceeded within agreed timeframes Target not met  Target has not been met – exceeds 5% variance Target has not been met – within 5% variance No result Recorded as NM = No measure

Conserving Victoria’s special places

2015–16 2015–16 2016–17 2016–17 Year end Performance indicator target actual target actual status

Total area of estate managed (hectares) 4,104,000 4,104,200 4,104,000 4,111,300 

The increase in the actual result includes additional land at Anglesea Heath acquired (part of the land previously managed under an agreement between the Secretary, DELWP and Alcoa becoming a Crown land reserve and assigned to PV’s management).

Number of hectares treated to minimise the impact of pest plants, pest animals and overabundant animals and plants in parks managed by Parks Victoria 1,100,000 1,100,000 1,100,000 1,100,000 

Historic Heritage: a. Percentage of high priority historic heritage places within the park estate with a current New condition assessment No target measure 50% 60%  b. Percentage of high priority historic heritage places within the park estate with a current condition assessment New and with a management plan No target measure 20% 64% 

42 of 70 high priority historic heritage places have a current condition assessment. Of those, 27 places also have a management plan, ensuring these heritage sites are effectively monitored and maintained.

Percentage of Registered Aboriginal Parties with New partnership agreements with Parks Victoria No target measure 50% 0%

Discussions about developing partnership agreements have commenced with five of the ten current Registered Aboriginal Parties. We have obtained in principle agreement to begin drafting these agreements for negotiation. While a template approach has been developed that will operationalise the Managing Country Together approach, each agreement will focus on issues and opportunities relevant to landscape and Traditional Owner group context. There have been delays to the original target date due the need to resolve Parks Victoria policy positions first, and the importance of working at the pace set by partners. A target to have seven partnership agreements successfully negotiated in 2017–18 has been set.

24 Conserving Victoria’s special places Providing benefits beyond park boundaries

Contribute to the safety, living standards and well-being of Victorians.

Our role in emergency management and response • Sturt Highway-Morkalla, Mallee (1,155 ha) is ever-increasing within the context of a changing • Ultima-Lake Boga-Ultima Road, Loddon Mallee climate. (1,129 ha).

Assist in keeping Preventing bushfires Victorians safe Parks Victoria continued to support DELWP in the delivery of its fuel management program, through planned burning and mechanical fuel treatment In 2016–17, Parks Victoria contributed approximately to reduce the risk and severity of bushfires across 24 per cent of its workforce capacity to assist in keeping Victoria. In 2016–17, a total of 113,498 hectares Victorians safe from bushfire and other natural events. of planned burning was completed on public land This included provision of support for emergency in Victoria, with 31,929 hectares being treated by preparedness, preparation and response efforts, and planned burning on land managed by Parks Victoria. minimising the impacts of incidents on communities, industries and economies. The Melbourne Fire and Emergency Program (previously known as the Melbourne Bushfire Protection Program) As at 30 June 2017, Parks Victoria has supported is a Government initiative following the bushfires DELWP respond to 1,015 fires (13,530 hectares) of 2009. The objective of the initiative is to improve since 1 July 2016. A large proportion of reported bushfire preparedness in Melbourne’s urban areas fires on public land can be attributed to unattended and is now an ongoing program, led by Parks Victoria. campfires. Parks Victoria works with DELWP, the CFA and Victoria Police to manage compliance regarding Activity undertaken in 2016–17 included: campfire use. • constructing 0.5km of new fuel breaks The largest of the 2016–17 season’s fires included: • upgrading 47km of fuel breaks in urban interface • Crooked River – Wonnangatta Track, Gippsland parks across Melbourne (3,066 ha) • maintenance by fuel break slashing of 700km • Woomelang-Kellys Road, Mallee (1,816 ha)

Walpa Dyurrita traditional burn

The Walpa Dyurrita traditional burn in the Mount Arapiles-Tooan State Park took place as part of a co-management partnership between Barengi Gadjin Land Council and Forest Fire Management Victoria. It is one of several traditional burns and related activities that Parks Victoria have been involved in this year across the State. Incorporating traditional burning into standard procedures is a driver of real change. Traditional burning is not a separate, but an intrinsic, part of land management. Mount Arapiles-Tooan State Park is one of many parks and reserves co-managed by Parks Victoria and Barengi Gadjin Land Council under the 2005 native title settlement determination for the Wotjobaluk, Jaadwa, Jadawadjali, Wergaia and Jupagulk Peoples. Natimuk Bush Kinder kids also participated in the day with a firestick briefing with Traditional Owners before the burn.

Parks Victoria Annual Report 2016–17 25 • upgrading 84km of roads and tracks to improve Grow world-class nature- access for fire vehicles based visitor economy • undertaking 7.4km of Planned Burn edge preparation opportunities in parks • Delivering pest plant control on 1,022ha Welcoming nearly 20 million international and of land across 22 parks following the planned domestic nature-based visitors in 2016–17, we are burning program. one of the largest providers of nature-based tourism in Australia. We continually aim to consolidate, All Communities, All Emergencies improve and market our visitor offer in conjunction Parks Victoria is a committed agency in Victoria’s with local, state and national partners. All Communities, All Emergencies approach to In 2016–17, we achieved our aim through: emergency management. We are a core delivery element of the Government’s Safer Together Policy, • collaborating with DEDJTR to implement the through strengthening of partnerships between Victorian Visitor Economy Strategy and Regional property holders and land and fire agencies to better Tourism Infrastructure Fund reduce bushfire risk across public land, private land • progressing implementation of the Shipwreck and roadsides. This assists in making communities safer Coast Master Plan and finalising the draft Point and more resilient before, during and after bushfires. Nepean Master Plan

Flood and storm recovery • implementing the Grampians Peaks Trail Master Plan and finalising of the Falls to Hotham Alpine During 2016–17, there was a total of 11 separate Crossing Master Plan. and significant storm and/or flood events of a small to medium scale. They impacted on 25 district locations and their corresponding parks or reserves Tourism during the year. An expanded recovery program was Victoria’s parks contribute over $2.1 billion to local developed and was initiated during 2016–17 and will economies and support 20,400 jobs. be delivered by end of 2017–18. The total combined Nature-based visitors spent an estimated $11.5 billion impacts to assets was assessed at approximately (including package expenditure by overseas visitors) $7 million. in Victoria – up by 15.4 per cent on year-end As part of a regionally delivered recovery program, June 2015. Parks Victoria received additional state funding of Victoria’s regions welcomed more overnight visitors $3.4 million following the Wye River/Jamieson Track than in 2015–16, with significant growth recorded fire, for the continuation of a recovery program and in the Great Ocean Road, Grampians, Mornington further consultation and engagement with affected Peninsula, and Gippsland regions. communities. It is anticipated that this recovery program will be delivered over the next three The Wander Victoria campaign continues to promote to five years. our regions to Melburnians and intrastate travellers, particularly highlighting many of the attractions of our national and state parks, including the Port Campbell, Otways and Alpine national parks. We continued our strong partnership with the industry by attending the Australian Tourism Exchange in Sydney and meeting with over 65 wholesalers and 20 travel media showcasing the states nature-based experiences and products.

26 Providing benefits beyond park boundaries Parks Victoria celebrated World Tourism Day 2016 Tourism ‘Access For All’ and demonstrated our leadership in that sector with a strong social media campaign Parks Victoria directly feeds into that was leveraged by our partners Visit Victoria, Victoria’s economic activities, generating Ecotourism Australia and Tourism Australia to achieve considerable reach domestically and internationally. We have been a key leader in the current national nature-based tourism strategic discussion facilitated $2.1 billion by Ecotourism Australia, the Tourism and Protected through park tourism Area Forum (TAPAF) and the Tourism and Transport supporting 20,400 jobs Forum (TTF) regarding the challenges facing the industry. We are an active member of TAPAF and the policy committees of the Victoria Tourism Parks Victoria works with Industry Council (VTIC).

Camping and accommodation 449 In 2016–17, Parks Victoria processed more than licensed tour operators 102,250 bookings for camping and accommodation in parks, representing more than 173,600 overnight providing activities for over stays for 230,460 visitors.

Working with Licensed Tour Operators Parks Victoria continued to work with 449 licensed 438,610 tour operators and activity providers across the state, people per year (at 30 June 2017) providing activities for over 438,600 visitors. With a focus on streamlining processes and enhancing Parks Victoria provides camping operator relationships, Parks Victoria received a six and accommodation for more than per cent increase in customer service satisfaction levels from the annual Licensed Tour Operator survey. Parks Victoria engages with tour operators to identify appropriate locations and activities to service park 230,460 users. In addition to improving opportunities to visitors provide visitor economy outcomes on public land, servicing over 102,250 bookings Parks Victoria enhances quality operator experiences via forums, the provision of park information, access to education resources, tourism representation, capacity management at high traffic sites in peak periods and compliance exercises to target unlicensed operators.

Parks Victoria Annual Report 2016–17 27 Events Actively promote and In 2016–17, Parks Victoria issued more than 1,300 permits to facilitate more than 2,200 community market the value of park and commercial events, filming and photography on ecosystem services in Parks Victoria’s estate. Community events continue to represent the largest proportion of events held on contributing to productive, Parks Victoria managed areas, with the most event healthy and prosperous permits issued for the Melbourne Region. Victorian communities Major events held in regional Victoria include: Parks play an increasingly important role in providing • Lorne Mountain to Surf ecosystem services and benefits that contribute to • Peaks Challenge Falls Creek Victoria’s health, wellbeing, liveability and economy. • Anderson Mill Festival in Smeaton Good Neighbour Program • Opera By The Lakes at Nyerimilang Heritage Park. The Good Neighbour Program seeks to control Each of these events help to drive significant invasive species on the public-private land interface. economic activity in regional communities. Parks Through effective community engagement and Victoria also hosted the major filming productions control measures, the Good Neighbour Program Winchester and Picnic at Hanging Rock, amongst ensures that Victoria’s parks and surrounding areas many others supporting the screen industry’s broader are maintained for the benefit of parks users economic contribution to the state of Victoria. and neighbours. All 114 projects of the Good Neighbour Program Walk Victoria’s Icons were completed in 2016–17, controlling blackberry, The Walk Victoria’s Icons portfolio of long-distance gorse, serrated tussock, Paterson’s curse, broom, foxes, walks creates a focus on the development of immersive feral pigs and rabbits across the Parks Victoria estate. nature-based experiences, via day – and multi-day – long distance walks aiming to deliver benefits to Health and wellbeing regional economies and the tourism industry. In 2016–17, our Healthy Parks Healthy People In 2016–17, we progressed: approach became IUCN policy, with our motion • the Great Ocean Walk Implementation Plan on nature for health and wellbeing benefits almost unanimously endorsed at the International Union • delivery of Stage 2 of the Grampians Peaks Trail for the Conservation of Nature World Conservation • development and consultation regarding the Congress in Hawaii. This sets new directions draft Falls to Hotham Alpine Crossing Master Plan for ensuring that natures benefits are available to everyone. • marketing partnerships with Great Ocean Road Tourism and Grampians Tourism to promote the Great Ocean Walk and Grampians Peaks Trail • product and industry development initiatives and opportunities with operators and investors.

28 Providing benefits beyond park boundaries World Conservation Congress Partnerships Parks Victoria, working in partnership with many Parks Victoria cultivates local, national and international organisations, delivered a series of sessions exploring partnerships that advocate for nature and health and the social and economic case for transforming that deliver benefits for Victoria. Over the last 12 conservation and health policy and practice at the months, this aspect of our national and international International Union for the Conservation of Nature engagement program has resulted in successful (IUCN) World Conservation Congress 2016 in Hawaii. initiatives delivered in collaboration with partners to better recognise the values of nature for health A motion led by Parks Victoria, Resolution #64, and wellbeing, including: “Strengthening cross sector partnerships to recognise the contribution of nature to health, wellbeing and • leading the development of new collaborative quality of life”, was supported by many partner partnerships between the environment and agencies and put forward at the International IUCN health sectors focusing on parks as a nature- Members Assembly for a member vote at the IUCN based solution for chronic health issues World Conservation Congress 2016. The motion was • establishment of a Health and Wellbeing unanimously supported and adopted as IUCN policy Specialist Group led by Parks Victoria, as part in their four- year program of work. of the IUCN World Commission on Protected Areas convening of a group of expert health and environment specialists and practitioners to continue to advance and promote the health and wellbeing benefits of nature, build the evidence, create new partnerships and influence policy • creating the Victorian Memorandum for Health and Nature 2017 • a commitment from the Victorian Health and Environment Ministers to work together to improve the health of both people and nature, announced at the 15th World Congress on Public Health in Melbourne in April 2017.

2017 Regent Honeyeater Captive Release Project at Chiltern-Mt Pilot National Park

Fifty captive-bred critically endangered Regent Honeyeaters were successfully released into Chiltern-Mt Pilot National Park on 12 April, and another 50 birds on 28 April with over 100 people in attendance assisting with the release. This release was a continuation of a strong partnership with DELWP, BirdLife Australia, Taronga Zoo, North East Catchment Management Authority and Friends of Chiltern-Mt Pilot National Park.

Parks Victoria Annual Report 2016–17 29 Key performance indicators

Definition of year end result:

Target met  Target has been met or exceeded within agreed timeframes Target not met  Target has not been met – exceeds 5% variance Target has not been met – within 5% variance No result Recorded as NM = No measure

Providing benefits beyond park boundaries

2015–16 2015–16 2016–17 2016–17 Year end Performance indicator target actual target actual status

Number of staff with accreditation in a fire role 650 721 650 723 

Contribution to bushfire preparedness, readiness, response, fuel management and emergency recovery 25% 23.5% 25% 23.8%

A below average fire season resulted in fewer staff being required.

Number of bookings at Parks Victoria estate New camping and accommodation sites No target measure 98,890 102,252 

Number of Licensed Tour Operators in parks 320 430 320 449 

30 Providing benefits beyond park boundaries Enhancing organisational excellence

The actions and priorities below underpin how we will deliver on our strategic outcomes and directions, ensuring continuous business improvement and effective and efficient delivery of park services. We aim to achieve this by focusing on five key strategic areas:

Improve stakeholder and • hosted a number of activities to celebrate NAIDOC week community engagement • commenced development of a Statement of Commitment. Parks Victoria aims to ensure that our parks estate is promoted and managed as a destination of choice, that our customer focus and accessibility is central to our service offer, and we continue to provide Partner better with opportunities for our visitors to increase active government to achieve engagement. To this end, the following initiatives were undertaken in 2016–17: valuable outcomes • Strengthening Parks Victoria Community for Victorians Consultation process Parks Victoria must continue to articulate the • Implementation of a new Stakeholder needs of the environment and advocate on behalf Engagement Framework of nature, and implement the highest standards of environmental management. • New Ranger Uniform designed and introduced. To this end, we must work with all levels of government to deliver better value, including Engage meaningfully economic and health outcomes for all Victorians, and respectfully with as well as partner with emergency service organisations to provide safer communities. Traditional Owners In 2016–17, we: A key priority for Parks Victoria is to expand the role • improved our accountability in threatened species of Traditional Owners in park management and support management through the delivery of assigned their aspirations. We aim to create an environment Actions for Biodiversity Conservation where Traditional Owners can explore appropriate • progressed the Government’s key planning traditional uses of resources on Country to enhance priorities and commitments, including the Plan cultural outcomes. In 2016–17, Parks Victoria: Melbourne Refresh • developed district and region-based TO • renegotiated the Fire Management Arrangement partnership and heritage planning agreements and Co-operative Operating Plan with DELWP. • supported Aboriginal inclusion initiatives led by Agriculture Victoria

Parks Victoria Annual Report 2016–17 31 Model leadership • continuation of safety walk-and-talks by the executive team as a means to demonstrate visible and accountability safety leadership and provide opportunities as a primary focus to engage and build trust with the workforce • establishment of a HSE steering committee We aim to build an outcomes-focused workforce to provide strategic guidance during Roadmap that is safe, diverse, skilled, flexible and reflects the development and implementation communities it serves. • approval of the Health, Safety and Environment Roadmap. Safety First – Zero Injuries program Parks Victoria’s highest priority is the health, safety Safety performance and wellbeing of its staff. The second year of the Safety First Zero Injuries program concluded In 2016–17, we continued to measure our in December 2016. This program has been a performance through the Total Reportable Injury transformational initiative focusing on developing Frequency Rate (TRIFR) and Lost Time Injury workplace culture and personal safety capabilities at Frequency Rate (LTIFR). Parks Victoria. Despite a program of staff alerts and Chief Executive The focus of the Safety First Zero Injuries program Bulletins focusing on safety, the TRIFR increased in in 2017 and beyond is to develop and implement a 2016–17 to 32.4 (compared to a reduction of 38 robust health, safety and environment management per cent in 2015–16) and the LTIFR increased to 18.5 system spanning all of Park’s Victoria’s activities (compared to a 25 per cent reduction in 2015–16). The majority of the increase was due to an increase Key deliverables realised during 2016–17 include: in incidents resulting in muscular-skeletal injury • continuation of an audit program to review performance, focusing on due diligence and People Strategy legislative compliance Parks Victoria has embarked on developing a People • a safety summer campaign that covered four key Strategy 2017–2022. The strategy’s purpose is to topics in 12 weeks to keep safety front-of-mind ensure a modern, high performing and sustainable workforce for Parks Victoria.

Number of reported incidents

Year 2013–14 2014–15 2015–16 2016–17

Number of incidents 87 217 508 531

Rate per 100 FTEs 9.63 22.65 51.1 52.6

Number of ‘lost time’ standard claims

Year 2013–14 2014–15 2015–16 2016–17

No. of claims 28 27 23 13

Lost Time Injury Frequency Rate 26.58 24.9 18.9 18.5

Average cost per claim

Year 2013–14 2014–15 2015–16 2016–17

Average cost $22,460 $35,126 $40,607 $46,570

32 Enhancing organisational excellence Parks Victoria has a highly committed and experienced Encouraging females workforce striving to deliver best practice park in Parks Victoria roles management to the Victorian community. The female workforce in Parks Victoria has increased To manage expectations for the community, Parks from 33 per cent in 2015–16 to 35 per cent in 2016–17, Victoria need to understand, appreciate and represent signifying that Parks Victoria is continuing to increase the community. Parks Victoria needs to increase the the employment of females. diversity in its workforce to access a broader range Parks Victoria’s first Diversity and Inclusion Plan will of perspectives and enhance its ability to innovate pick up gender diversity in Parks Victoria broadly and to better meet the Victorian community’s needs. and the Women in Fire and Emergency Leadership The People Strategy 2017–2022 describes the goals Roles Action Plan, being led by DELWP/FFMV. There and objectives Parks Victoria will achieve to build are several Women in Fire Actions that Parks Victoria a modern and diverse workforce for the future, and fire staff will be involved in under the FFMV banner, aims to address the key workforce challenges of: and Parks Victoria are committed to implementing additional actions and contributions to implement • balancing the workforce profile in terms of age, Women in Fire. gender, cultural diversity and length of service • shifting the focus of the workforce from completing Our organisational structure tasks to a focus on people and performance The Parks Victoria’s Chief Executive Officer • building a safe and inclusive high performance is appointed by the Parks Victoria Board, and is workplace culture approved by the Minister for Energy, Environment and Climate Change. The Board reviews the • ensuring the workforce is sufficiently comfortable performance of the Chief Executive Officer on with change and has the knowledge and skills an annual basis. During 2016–17, Bradley Fauteux required in emerging areas of work was the Chief Executive Officer until his employment • attracting talented staff, transitioning them into with Parks Victoria was terminated on 12 October Parks Victoria and retaining high performing people 2016. Margaret Gillespie was Acting Chief Executive • capturing and retaining the knowledge of staff. Officer from 12 October 2016 until Matthew Jackson commenced as Chief Executive Officer on 13 February 2017. Merit, equity and diversity During 2016–17, Parks Victoria made changes to the Parks Victoria is committed to maintaining executive management structure and accompanying a workplace that is free from harassment, divisional structure by introducing new positions and discrimination and bullying. realigning others. The purpose of this work was These principles are documented in the Victorian to ensure Parks Victoria is structured in a way which Government’s merit and equity standards and demonstrates accountability, is modern, and allows embodied in the Public Administration Act 2004. the organisation to be successful now and into Parks Victoria communicates and adheres to the the future. principles set out in the Act. Through this new structure, we will have an integrated As an employer, Parks Victoria ensures that: approach to marketing, communications, stakeholder • decisions are based on merit and government relations, better align our key delivery services and operations and enhance relationships • staff are treated fairly and reasonably across the organisation, with the government of the • equal employment opportunity is provided day and our stakeholders. • there are reasonable avenues of redress against unfair or unreasonable treatment.

Parks Victoria Annual Report 2016–17 33 As at 30 June 2017, our executive management team consisted of:

Matthew Jackson Margaret Gillespie Chief Executive Officer Executive Director Corporate Governance and Chief Legal Counsel

Matthew joined Parks Victoria as Chief Executive Officer Margaret joined Parks Victoria in 2006 as the Chief in February 2017. Legal Counsel. She is responsible for managing Matthew is an experienced conservation and Parks Victoria’s legal risk as well as organisational environmental professional and has also worked governance, risk and insurance. in the private sector in marketing and distribution. She is an experienced commercial lawyer whose career He has extensive experience in environmental research, has spanned practice and in-house private sector conservation, education, wildlife management, positions in New York, London and Melbourne. nature-based tourism, operational management and stakeholder relations. Prior to working at Parks Victoria, Matthew was the Chief Executive Officer at Phillip Island Nature Parks for six years. He oversaw significant change that involved a high level of community consultation and the delivery of major environmental outcomes and significant new tourist attractions.

Kylie Trott Chris Hardman Executive Director Executive Director Regional Victoria Melbourne Division

Kylie has worked for Parks Victoria since 2005 and has Chris migrated from the UK to Australia in 1984, leaving worked in numerous operational and strategic delivery a career in the Merchant Navy. roles; her most recent position was as the Director In Parks Victoria and its predecessor organisations, Chris of Statewide Services. progressed from operational roles (Field Service Officer Kylie started her career in local government as a gardener and ranger) into management roles, including Ranger and park manager in regional parks. She has extensive in Charge, District Manager and Regional Director. leadership, planning, policy development, project Since 2012, Chris has led Parks Victoria’s highly complex management, strategic and business reform experience. Melbourne Region. He has extensive experience in She is passionate about park management and believes emergency management and was awarded the National everyone should have the opportunity to spend time Emergency Medal for his leadership in the 2009 Black in parks immersed in nature. Saturday fires.

34 Enhancing organisational excellence David Major Jennifer Rebeiro Executive Director Visitor Executive Director Business Engagement and Conservation and Infrastructure Services

Jennifer joined Parks Victoria in 2014 as Chief Information David is a Yuin/Maneroo man from south-eastern New Officer. Prior to this she held various senior roles South Wales. David has extensive experience in public across a wide set of industries, from banking and land management, particularly in cultural heritage and finance, transport, manufacturing, property services, community engagement. He has previously worked with telecommunications and government. She also has NSW National Parks and Wildlife Service and also owned extensive experience in business strategy, human his own consultancy business, before joining Parks Victoria resources and software development. in 2013 as the Manager of Culture and Heritage. Jennifer is particularly interested in how technology He has a strong background in policy, strategic planning can improve service-delivery internally and on the and operational work. ground at Parks Victoria.

Ian Sargent Dr Mark Norman Executive Director Finance Chief Conservation Scientist & Commercial and Chief Financial Officer

Ian joined Parks Victoria in July 2016 as Executive Dr Mark Norman was appointed as Parks Victoria’s Chief Director Finance & Commercial and Chief Financial Conservation Scientist in March 2016, to undertake Officer. In this role, Ian leads the Finance and Commercial a review of Parks Victoria’s environmental and science Division, which provides core support and strategic services needs. In October 2016, Mark became director of the in finance, strategic business planning and reporting. Environment and Science Directorate, within the Visitor Engagement and Conservation Division. Providing advice Ian brings a wealth of experience to Parks Victoria, on how the organisation should be shaped to meet our having worked in multiple industries, including utilities, conservation objectives. resources, property development, regulation and insurance across the public and private sectors. Prior to joining Mark is well known to many Parks Victoria staff with Parks Victoria, Ian was the Chief Finance Officer at extensive experience in wildlife research, biodiversity Barwon Health and Worksafe. surveys and science communication. He is also well known as a strong science communicator.

Parks Victoria Annual Report 2016–17 35 Workforce profile as at 30 June 2017

Fixed term Ongoing employees and casual Full time & Number WorkCover Part time (headcount) (headcount) (headcount) FTE FTE June 2017 968 855 113 909.8 128.1 June 2016 965 854 111 908.1 102.3

June 2017 June 2016 Fixed term Fixed term Ongoing & Workcover and casual Ongoing & Workcover and casual Number Number (headcount) FTE FTE (headcount) FTE FTE Gender 968 909.7 128.1 965 908.1 102.3 Male 630 620.8 62.1 637 627.1 53.1 Female 338 288.9 66 328 281.0 49.2 Age 968 909.7 128.1 965 908.1 102.3 Under 25 6 6 5 6 6 11.4 25–34 126 121.4 47.8 138 131 41.3 35–44 288 262.5 40.1 270 246.9 23.2 45–54 262 250.3 18.2 268 255.6 12.6 55–64 249 236.7 14 250 239.3 12.8 Over 64 37 32.8 3 33 29.3 1 Classification 968 909.7 151 965 908.1 102.3 Grade 01 2 0.8 7.6 2 0.8 6.4 Grade 2.1 76 71 58.4 61 56.8 49.9 Grade 2.2 104 95.1 4.3 110 101.6 1 Grade 2.3 135 125.6 1 130 119.3 2 Grade 03 124 117.5 8.2 123 116.5 5 Grade 04 158 149.6 14.8 161 152.7 12.4 Grade 05 105 96.4 11.6 110 102.2 7.8 Grade 06 114 107 11 109 101.9 6.8 Grade 07 94 91.1 8 84 81.5 8 Grade 08 56 55.6 3.2 57 56.8 2 Executives 0 0 22.9 18 18 1

36 Enhancing organisational excellence Executive officers There were a total of 23 Parks Victoria executive officers at 30 June 2017. All were classified as ‘Fixed Term’. All executive officers are employed with remuneration over $100,000.

30 June 2017 30 June 2016 Fixed Term Ongoing 2017 Total Ongoing 2016 Total Executive E01 1 1 1 1 Executive E02 6 6 4 4 Executive E03 16 16 13 14 Grand Total 23 23 18 19

Measure and benchmark our success Modernise Parks Victoria in delivering benefits to the economy, productivity, sustainability and liveability Secure stable, flexible and sustainable revenue streams Driving accountability and performance Our annual budget is based on delivery of the Work continued in 2016–17 to provide for better Business Plan and includes funding for government alignment between our planning, budgeting and commitments and an allocation from the Parks and reporting frameworks, to better demonstrate Reserves Trust Account. service delivery and value provision, and to improve accountability across the organisation. Key projects Overall financial position undertaken included: Parks Victoria achieved a net result from transactions • Performance Reporting Review Project surplus of $7.2 million for the 2016–17 financial year. This surplus exceeded budget expectations and was • Strategic Framework development. primarily due to additional funding being received We also addressed a number of outstanding towards the end of 2016–17, mostly tied to specific management actions and financial management purpose projects which will be delivered in 2017–18 compliance requirements. and beyond. Our commercial income performance also exceeded budget expectations, and was driven by strong demand for camping and accommodation and higher licensed tour operator income and leases and licences income. A continued focus from the previous year was the strengthening of Parks Victoria towards a financially sustainable future. In this regard, significant work was undertaken in conjunction with DELWP leading to a successful bid into the Expenditure Review Sub-Committee. We also continued to focus on the development of our financial management capabilities, across programming, budgeting and procurement, which is assisting improved decision making over our resource allocations.

Parks Victoria Annual Report 2016–17 37 Financial position – income statement Financial position – balance sheet For the 2016–17 financial year, Parks Victoria Total assets at the end of the 2016–17 financial received $238.2 million in income, which was year were $2.5 billion, an increase of $245 million $6.9 million higher than budgeted. This additional from the previous year. This increase primarily income primarily relates to the delivery of future reflects the impact from a re-valuation of crown large scale programs including flood recovery efforts land and land improvements, following an annual across the state to assist communities to recover fair value assessment using land indices provided from significant storm impacts in 2016–17, and a by the Valuer-General Victoria, that indicated a wastewater (toilet) compliance program. Expenditure significant movement in that asset class. Full physical in the 2016–17 financial year was below budget re-valuations of Parks Victoria’s asset base are partly due to savings achieved in labour, plant and undertaken every five years, with the next scheduled equipment, occupancy costs and some delays to be performed in June 2021. Financial assets also in operational delivery. Overall expenditure levels increased during the year to $146.7 million, reflective were similar to the previous year and represent of the increased operating cash flows primarily due a continued focus on achieving cost efficiencies to the higher than anticipated operating surplus. and fiscal responsibility. Cash flows Total cash and investments at the end of the year was $134.6 million, made up of cash and cash equivalents of $34.6 million and investments of $100 million, of which $87.1 million related to the unspent component of specific purpose grants Parks Victoria has received to undertake various projects in 2017–18 and beyond. The remaining balance of $47.5 million represents cash and cash equivalents required to meet other short term current liabilities as they fall due.

Five year financial summary

($’000) 2017 2016 2015 2014 (i) 2013 (i)

Revenue from Government 103,447 97,672 76,773 96,834 102,567

Total income from transactions 238,238 239,515 203,284 225,710 235,839

Total expenses from transactions 231,054 223,352 209,510 220,250 252,446

Net Result from transactions 7,184 16,163 (6,226) 5,460 (16,607)

Net Result 6,163 13,848 (7,797) 5,271 (17,109)

Comprehensive result 232,958 336,980 (5,651) 6,169 (15,700)

Net cash flow from operating activities 21,282 32,002 9,833 4,369 (16,952)

Total assets 2,523,650 2,278,746 1,919,219 1,926,991 1,916,797

Total liabilities 60,719 64,348 53,251 56,420 70,389

(i) During the financial year ended 30 June 2015, Parks Victoria revised its accounting treatment for a number of items and as a result amendments were required to be made to the 2014 and 2013 prior period comparatives.

38 Enhancing organisational excellence Drive digital interactions and During 2016–17, ParkConnect has delivered business information solutions to improve systems improvements to several areas of the productivity, enhance visitor organisation: experiences and make it easier • stakeholder relations for people to connect with parks • Visitor Information Centres ParkConnect – managing our customer • scientific research permits relationships Modernising our workplace and ways of working • volunteer management is critical to Parks Victoria’s success in the future. • commercial agreements. As the volume and variety of activities across Parks Victoria’s estate increases, our processes need to be The project won an OpenGov award for Recognition consistent, well-defined and efficient. This is best of Excellence in June 2017. achieved through systems that modernise the way Improve our governance systems we work, and help us to reduce the risks and costs Identifying strategic risks and ensuring they are of managing Parks Victoria’s business. addressed is a core part of the annual planning ParkConnect is a cloud-based customer relationship process. Two key risk management programs, management (CRM) system which provides a Risk Profiling and Internal Audit, enable us to convenient, accessible and secure digital service assess our risks and assure stakeholders that our platform that enables online access to key services strategic objectives are being met. These practices and information through an easy to use website. are consistent with the International Standard Our volunteer and research partners of Parks Victoria Organisation’s standard on risk management no longer need to complete paper forms, send emails (ISO 31000). or wait for business hours to contact staff about permits and activities. Advocate for an amendment to Parks Victoria’s legislation to enable us to deliver for the ParkConnect enables them to submit requests online Victorian community and receive updates in real time as their request The legal framework for parks and their protection is processed. As ParkConnect grows, the range of is complex and confusing, making it hard to understand Parks’ services and information available to citizens what is permitted and who can enforce the rules. online will also increase. The Parks Victoria Act is being reviewed to clarify Through ParkConnect, staff in the field now have the role of Parks Victoria and to allow it to be more mobile access to consistent, reliable, up-to-date community-focused. information to guide day-to-day decisions impacting safety, park management and the visitor experience. Maintain a commercial focus Data provided from ParkConnect will also be used In 2016–17, Parks Victoria finalised 37 commercial to inform the design of services and development agreements including leases, licenses, consents and of policy and strategy across the organisation. permits, and provided ongoing management support for more than 600 commercial agreements across the state.

Parks Victoria Annual Report 2016–17 39 Key performance indicators

Definition of year end result:

Target met  Target has been met or exceeded within agreed timeframes Target not met  Target has not been met – exceeds 5% variance Target has not been met – within 5% variance No result Recorded as NM = No measure

Enhancing organisational excellence

2015–16 2015–16 2016–17 2016–17 Year end Performance indicator target actual target actual status

Reduction on previous year of Total Reportable Injury Frequency Rate (TRIFR) 29.3 23.6 18.6 32.4

There was an increase in TRIFR incidents reported (Lost Time Injury, Missed Time Injury and restricted duties), mostly musculoskeletal-related and not associated with a significant incident (potential to cause permanent disability or fatality). Implementation of the HS&E Roadmap has commenced and includes a safety risk identification, assessment and management process across all of Parks Victoria. Risk management, in combination with other Roadmap elements such as planning, training, and monitoring and measurement will embed robust and sustainable processes to support the reduction of injuries across Parks Victoria.

Employee Engagement Index 65 63 NM NM

Employee Satisfaction Index No target NM NM NM

Within 6.2% Total Output Cost (variation between actual New +/- 5% of behind expenditure and budget) No target measure budget budget

Operating expenditure ended the year 6.2% or $14.3m underspent compared to budget, across: Tied operations activities: $11.3m underspent across labour, $3.8m (mainly due to lower fire suppression $4.2m) and tied projects $7.5m Core operations activities: $3m underspent across labour, $5.6m (mainly due to favourable write backs from the provisions for defined superannuation benefit obligation, long service leave and annual leave), base costs $1.1m and core projects $0.5m; partially offset by the transfer of assets (Junction Oval) free of charge to Cricket Victoria of $3.5m and assets (State Bank pavilion at Albert Park $0.5m and wave baffles at Mordialloc $0.2m) written off at $0.7m.

40 Enhancing organisational excellence Compliance and disclosures

Disclosure index

Parks Victoria’s 2016–17 Annual Report is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of Parks Victoria’s compliance with statutory disclosure requirements.

Legislation Requirement Page(s)

Report of operations

Charter and purpose

FRD 22H Manner of establishment and the relevant Ministers 4 FRD 22H Purpose, functions, powers and duties 4, 43 FRD 22H Initiatives and key achievements 10–11 FRD 22H Nature and range of services provided 4–7

Management and structure

FRD 22H Organisational structure 33–37

Financial and other information

FRD 8D, SD 4.2(k) Performance against output performance measures 18, 24, 30, 40 FRD 10A Disclosure index 41 FRD 12B Disclosure of major contracts 51 FRD 15D Executive officer disclosures 35, 92 FRD 22H Employment and conduct principles 33 FRD 22H Occupational health and safety policy 32 FRD 22H Summary of the financial results for the year 37–38 FRD 22H Significant changes in financial position during the year 37–38 FRD 22H Major changes or factors affecting performance 33,43 FRD 22H Subsequent events 99 FRD 22H Application and operation of Freedom of Information Act 1982 46 FRD 22H Compliance with building and maintenance provisions of Building Act 1993 46 FRD 22H Statement on National Competition Policy 48 FRD 22H Application and operation of the Protected Disclosure Act 2012 47 FRD 22H Details of consultancies over $10,000 50 FRD 22H Details of consultancies under $10,000 49 FRD 22H Statement of availability of other information 47 FRD 24C Reporting of office based environmental impacts 51 FRD 22H Disclosure of ICT expenditure 52 FRD 25C Victorian Industry Participation Policy disclosures 48 FRD 29B Workforce Data disclosures 34 SD 3.7.1 Risk management compliance attestation 53

Parks Victoria Annual Report 2016–17 41 Legislation Requirement Page(s)

Financial report

Financial statements required under Part 7 of the FMA

SD5.2 Statement of changes in equity 57 SD5.2 Operating statement 55 SD5.2 Balance sheet 56 SD5.2 Cash flow statement 58

Other requirements under Standing Directions 4.2

SD5.2.1(a) Compliance with Australian accounting standards and other authoritative pronouncements 60 SD5.2.1(a) Compliance with Ministerial Directions 60 SD5.2.2 Accountable officer’s declaration 100

Other disclosures as required by FRDs in notes to the financial statements

FRD 11A Disclosure of Ex gratia Expenses 99 FRD 21C Disclosures of Responsible Persons, Executive Officers and other Personnel 92 (Contractors with Significant Management Responsibilities) in the Financial Report FRD 103F Non Financial Physical Assets 72 FRD 104 Foreign Currency 98 FRD 106 Impairment of Assets 73 FRD 109 Intangible Assets 81 FRD 110 Cash Flow Statements 86 FRD 112D Defined Benefit Superannuation Obligations 89 FRD 113A Investments in Subsidiaries, Jointly Controlled Entities and Associates 95 FRD 114A Financial Instruments – General Government Entities and Public Non Financial Corporations 96 FRD 119A Transfers through Contributed Capital 85

Legislation

Freedom of Information Act 1982 46 Building Act 1993 46 Protected Disclosure Act 2012 47 Victorian Industry Participation Policy Act 2003 48 Financial Management Act 1994 100

42 Compliance and disclosures Legislative framework statutory delegations. The arrangements set out the principles for the delivery of park management services, lists the land to be managed and sets out Under the Parks Victoria Act 1998, Parks Victoria is the key functions of Parks Victoria and DELWP. responsible for providing services to the State and its agencies for the management of parks, reserves, The current arrangement includes a commitment to other land under the control of the State, and engage strategically and work in partnership with all waterways land (within the meaning of the Water networked organisations. DELWP is the designated Industry Act 1994) for the purposes of conservation, lead for fire on public land. recreation, leisure, tourism or water transport. Parks Victoria’s responsibilities also extend to recreational Changes to areas managed boating in Port Phillip and Western Port as a local Under the Management Arrangement, the DELWP port manager under the Port Management Act 1995, Secretary notifies Parks Victoria of any changes to the and as waterways manager under the Marine Safety land managed by Parks Victoria. Act 2010. The total area of estate managed by Parks Victoria With the approval of the Minister for Energy, increased slightly in 2016–17 primarily through the Environment and Climate Change, Parks Victoria may incorporation of Anglesea Heath into the Great Otway provide services for the management of land to the National Park. owner of any other land used for public purposes. The Parks Victoria Act 1998 requires Parks Victoria to As a result, Parks Victoria currently manages act in an environmentally sound manner in carrying 4,111,300 hectares of assigned land, up from out its functions. Parks Victoria is appointed as 4,104,200 hectares in 2015–16. a committee of management of various reserves pursuant to the Crown Land (Reserves) Act 1978. Parks Victoria is the committee of management for Parks Victoria’s Board a range of reserves including Albert Park, Werribee The Parks Victoria Board has responsibility for the Park, Yarra Bend, several gardens in the Dandenong governance of Parks Victoria. On the recommendation Ranges, and piers and jetties in Port Phillip and of the Minister for Energy, Environment and Climate Western Port. We also manage: Change, Board members are appointed by the Governor • areas under the National Parks Act 1975 – in Council for a period not exceeding three years. approximately 3.45 million hectares Members are eligible for reappointment. The Board operates in accordance with the provisions of the • reserved and unreserved Crown land including Parks Victoria Act 1998. conservation and other reserves, metropolitan parks, regional parks and historic areas The Board is responsible for directing and monitoring the business of Parks Victoria and is accountable • recreational and other activities on waterways to the Minister for its overall performance. It land in the metropolitan area as defined in the delegates day-to-day responsibility for operations Water Industry Act 1994 and administration to the Chief Executive Officer. • a number of other areas under leases or other During 2016–17: arrangements (including reservoir parks). • Darrell Wade resigned from the Board effective Parks Victoria’s responsibilities for the provision 18 July 2016 of services to the State are set out in arrangements between Parks Victoria, the DELWP Secretary and • Rosemary Hehir resigned from the Board effective the Minister for Energy, Environment and Climate 8 August 2016 Change. Parks Victoria’s services are delivered • Ross Passalaqua’s term expired on 29 April 2017. within state policy and contractual agreements, and in accordance with statutory responsibilities and

Parks Victoria Annual Report 2016–17 43 As at 30 June 2017, the Board members included: Professor Robert Wallis Term of office expired on 30 June 2017 Andrew Fairley AM (Chairman) Professor Robert Wallis is Professor of Research Term of office expired on 30 June 2017 Development at Federation University Australia. Andrew has had a distinguished association with He has a background in ecology, natural resource ecotourism, conservation, parks, resorts and facilities management, sustainable development and management over many years. He is currently the environmental education. Robert has held senior Deputy Chairman of Tourism Australia. He was a academic positions including Pro Vice-Chancellor director of the world-renowned resort Turtle Island (Rural and Regional) and Head of School (Ecology in Fiji for over 20 years. He has been a Director of and Environment) at Deakin University. He has the International Ecotourism Society (Washington extensive board and committee experience and DC) and Ecotourism Australia, and is a past Chair currently chairs a number of Audit and Risk of Zoos Victoria. Andrew practises as a commercial Committees. He is a Fellow of the Australian lawyer at Hall and Wilcox Lawyers. He is Chairman Institute of Company Directors. of EquipSuper, an industry superannuation fund managing assets of $14.5 billion. He is also Chairman Kate Vinot of the Sir Andrew Fairley Foundation and the Luke Term of office end date: 30 June 2018 Batty Foundation. Kate Vinot is the Director of City Strategy and Place at the City of Melbourne, where she has Andrew Grant (Deputy Chair) portfolio responsibility for strategic planning, Term of office end date: 30 June 2018 business improvement, sustainability, community Andrew is the Managing Director of Tasman engagement and the Smart City office. Kate has Environmental Markets and has an extensive degrees in engineering, economics and business background in natural resource management and administration. She has held senior and executive business. He is the Chairman of the Carbon Market roles in water utilities, contracting, manufacturing Institute and has executive and board experience and management consulting, as well as a number with organisations including the Royal Botanic of Board and committee roles in the water sector, Gardens, Earthwatch, the Cooperative Research environmental sustainability and aged care. Kate Centre for Greenhouse Accounting and the Banksia is a Fellow of Engineers Australia. She brings Environmental Foundation. He has held several deep experience in strategy, sustainability, risk management positions in Parks Victoria and is a management, as well as systems and governance. former Chair of the Port Phillip and Western Port Catchment Management Authority. Christine Trotman Term of office end date: 30 June 2018 Natalie O’Brien Christine is the Chief Executive Officer of Cooinda Term of office expired on 30 June 2017 Hill, a disability support service based in the Latrobe Natalie has a background in senior management Valley. She has held management and executive in tourism, marketing and events and is currently roles in health and education, and has tertiary the CEO of the Melbourne Food and Wine Festival. qualifications in nursing, health education, business She has previously held roles in both state and local and accounting. Christine has extensive Board and government, as well as positions on advisory boards Committee experience and is currently a member of into government. As well as being a Director the East Gippsland Water Audit and Risk Committee of Parks Victoria, she is a Director of People and and Uniting Care Gippsland Audit and Risk Committee. Parks Foundation.

44 Compliance and disclosures Board attendance Aboriginal Engagement There were 10 scheduled Board meetings and one Committee Attendance extraordinary meeting. Total meeting attendance in 2016–17 Total meeting attendance in 2016–17 Natalie O’Brien 3/3 Andrew Fairley 10/11 Prof Robert Wallis 2/3 Ross Passalaqua 8/10 Christine Trotman 3/3 Andrew Grant 11/11 Andrew Fairley 0/1 Natalie O’Brien 10/11 Darrell Wade 0/1 Prof Robert Wallis 10/11 Denise Lovett 3/3 Darrell Wade 0/0 Mick Harding 3/3 Rosemary Hehir 0/1 The Audit, Risk and Compliance Committee Kate Vinot 8/11 oversees and advises on matters of accountability and Christine Trotman 7/11 internal controls affecting the operations of Parks Victoria as required by the Standing Directions of the Minister for Finance under the Financial Management Board Committees Act 1994. The role of the Committee is to assist the Board in the effective discharge of its responsibilities The Aboriginal Engagement Committee assists in overseeing the areas of statutory reporting, with the recognition and promotion of the significance internal controls, risk management (including of Aboriginal engagement and cultural heritage, insurance and legal proceedings), compliance and and the importance of knowledge sharing with the the internal and external audit functions. community. The Committee reviews, monitors and makes recommendations to the Board on a suite The Committee, supported by Parks Victoria’s of organisational strategies from an Aboriginal senior managers, comprises Professor Rob Wallis engagement perspective and monitors how well (Committee Chair), Andrew Fairley, Christine these strategies are implemented. Trotman, Kate Vinot and Carol Pagnon (external, independent committee member). The Committee During 2016–17, the Committee consisted of Natalie met four times in 2016–17. O’Brien (Chair), Professor Robert Wallis, Christine Trotman, Andrew Fairley (from May 2017), and Audit Risk and Compliance Darrell Wade (in July 2017). The Committee met Committee Attendance three times in 2016–2017. There were two external independent Committee members: Denise Lovett Total meeting attendance in 2016–17 and Mick Harding. Prof Robert Wallis 4/4 Andrew Fairley 2/4 Christine Trotman 3/4 Kate Vinot 4/4 Carol Pagnon 4/4

Parks Victoria Annual Report 2016–17 45 The Visitor Experience and Commercial now external independent member). The Committee Committee aims to improve the visitor experience met three times in 2016–17. and drive visitation, while being mindful of accessibility and inclusion. The Committee is also People and Safety responsible for supporting and enhancing the Committee Attendance commercial competence of Parks Victoria, and making recommendations on current and future Total meeting attendance in 2016–17 commercial activities in line with the strategic Kate Vinot 3/3 direction of the organisation. Natalie O’Brien 2/3 During 2016–17, the Committee consisted of Andrew Grant (Chair until April 2017), Ross Christine Trotman 0/1 Passalaqua (until April 2017), Rosemary Hehir Ross Passalaqua 3/3 (previous Board member, until August 2016), and Andrew Fairley (member and Chair from June 2017). The Committee met four times in 2016–17. Freedom of information Visitor Experience and Commercial Committee Attendance The Freedom of Information Act 1982 allows the public the right of access to information contained Total meeting attendance in 2016–17 in documents held by Parks Victoria. Andrew Grant 4/4 In the reporting period, Parks Victoria received 26 Ross Passalaqua 3/3 requests for documents and information under the Act. Of the 26 requests: Andrew Fairley 1/1 • twelve were decided by Parks Victoria Rosemary Hehir 3/3 • five were courtesy consultations from other agencies The People and Safety Committee (renamed in 2016–2017 from the Workplace Safety and Human • four were withdrawn or lapsed. Resources Committee) is the appointed remuneration • five are yet to be finalised. committee. It has responsibility for determining the organisation’s policy and practice for executive Freedom of Information requests are made in remuneration and packages under the Victorian writing describing the documents requested and Public Sector Commission Policy. The Committee including the payment of the $27.90 application reviews, monitors and makes recommendations to fee. Application forms and information about how the Board on the following issues: to make a request can be found on Parks Victoria’s website at www.parks.vic.gov.au. Requests should • workplace health and safety be sent to the Freedom of Information Officer, Parks • setting of performance measures and review of Victoria, Level 10, 535 Bourke Street, Melbourne the performance of the Chief Executive 3000. • compliance with executive remuneration requirements Building Act 1993 • human resources policies. Parks Victoria does not currently comply with the The Committee, which is supported by Parks Victoria building and maintenance provisions of the Building senior managers, comprises Kate Vinot (Committee Act 1993. Actions to address the issues preventing Chair, Natalie O’Brien, Christine Trotman (from May compliance will continue to be undertaken 2017) and Ross Passalaqua (previous Board member, throughout 2017–18.

46 Compliance and disclosures Protected disclosures Statement of availability

The Protected Disclosure Act 2012 (PD Act) enables of other information people to make disclosures about improper conduct The following information is available on request, by public officers and public bodies. The PD Act subject to the Freedom of Information Act 1982: aims to ensure openness and accountability by encouraging people to make disclosures and • a statement that declarations of pecuniary protecting them when they do. interests have been duly completed by all relevant officers A protected disclosure is a complaint of corrupt or improper conduct by a public officer or a public body. • details of shares held by a senior officer as nominee, or held beneficially in a statutory Parks Victoria is a “public body” for the purposes of authority or subsidiary (note: Parks Victoria does the PD Act. not issue shares nor does it hold shares in any Improper or corrupt conduct involves substantial: joint venture or subsidiary) • mismanagement of public resources; or • details of publications produced by the agency about itself, and how these can be obtained • risk to public health or safety or the environment; or • details of changes in prices, fees, charges, rates and levies charged by the agency • corruption. • details of any major external reviews carried out The conduct must be criminal in nature or a matter on the agency for which an officer could be dismissed. • details of major research and development One can make a protected disclosure about Parks activities undertaken by the agency Victoria or its Board members, officers or employees by contacting the Independent Broad-Based Anti- • details of overseas visits undertaken, including Corruption Commission (IBAC) on the contact details a summary of the objectives and outcomes provided below. of each visit Please note that Parks Victoria is not able to receive • details of major promotional, public relations and protected disclosures. marketing activities undertaken by the agency to develop community awareness of the entity and Parks Victoria has established procedures for the its services protection of persons from detrimental action in reprisal for making a protected disclosure about • details of assessments and measures undertaken Parks Victoria or its employees. One can access Parks to improve the occupational health and safety Victoria’s procedures on its website at www.parks. of employees a general statement on industrial vic.gov.au. For further information, contact the relations within the agency, and details of time Chief Legal Counsel, Parks Victoria, Level 10, 535 lost through industrial accidents and disputes Bourke Street, Melbourne 3000. Alternatively contact • a list of the agency’s major committees; the the Independent Broad-Based Anti-Corruption purposes of each committee; and the extent Commission (IBAC) Victoria, Level 1, North Tower, to which the purposes have been achieved 459 Collins Street, Melbourne Victoria 3000 or via www.ibac.vic.gov.au • details of all consultancies and contractors including: consultants or contractors engaged; services provided; and expenditure committed to for each engagement.

Parks Victoria Annual Report 2016–17 47 Victorian industry National competition participation policy (VIPP) policy

Departments and public bodies are required to Parks Victoria continues to implement and apply comply with the Victorian Industry Participation Policy competitive neutrality in its business undertakings. Act 2003, which applies to all tenders over $3 million It ensures fair competition between government in metropolitan Melbourne and $1 million in regional and private sector businesses and removes any Victoria. advantages or disadvantages that government businesses may experience as a result In 2016–17, Parks Victoria was fully compliant with of government ownership. this policy. During the financial year ending 30 June 2017, Parks Victoria undertook one project with VIPP application, valued at $5.6 million in regional Victoria. The project was completed in the 2016–17 financial year, with highlights of VIPP commitments comprising: • retention of six existing full-time employee roles (jobs) • creation of three full-time annualised employee equivalent opportunities (jobs) • local value-added activity commitment of 71 per cent • additional works carried out which increased supply from current and local suppliers. New projects commencing in 2016–17 to which VIPP applied, included one metropolitan Melbourne project, due for completion in the 2017–18 financial year, valued at $4.6 million.

48 Compliance and disclosures Consultancy expenditure

Details of consultancies under $10,000 In 2016–17, Parks Victoria engaged 15 consultancies where the fees payable were less than $10,000. The total cost of these consultancies was $57,607.03. Details of individual consultancies can be viewed below.

Expenditure Consultancy Purpose of consultancy 2016–17 Channel T Pty Ltd Parks additional strategy – Channel T $900.00 Christine Mary Trotman Lower Yarra River Management Advisory Committee $2,482.08 Context Pty Ltd Analysis and reporting on feedback of online survey on draft $1,520.00 RRG plan Dja Dja Wurrung Clans Review and update of the Dja Dja Wurrung Country Plan $9,090.91 Aboriginal Corporation Doing Business Better Pty Ltd Emergency Recovery Lean Process Improvement Project $4,400.00 Four at the Front Productions Pty Ltd Initial amendment of park management procedures $1,454.54 and guidelines Henry J Crawford Consultation with Parks Victoria on the Chair’s request $5,500.00 Heritage Insight Pty Ltd Brimbank Park project $5,130.00 ISOQuest HSE Legislative Obligation Matrix Revision Proposal Plant $2,800.00 & Asbestos ISOQuest ISO Quest to identify and document for Parks Victoria's entire $5,600.00 scope of activities LRGM Services LRGM Services – Cultural Heritage Services $1,500.00

SJE Consulting Management Plan – Woolshed Falls Car park $2,700.00 Taungurung Clans Taungurung inspection of Bluff Track $1,029.50 Aboriginal Corporation The Trustee for Deloitte SOW for API Integration $7,500.00 Consulting Trust Wendy Jacobs Architect Heritage Advice Zumsteins $6,000.00 & Heritage Consultant TOTAL 15 consultancies $ 57,607.03

Parks Victoria Annual Report 2016–17 49 Details of consultancies over $10,000 In 2016–17, Parks Victoria engaged 19 consultancies where the fees payable were $10,000 or greater. The total cost of these consultancies was $587,286.93.

Expenditure Consultancy Purpose of consultancy 2016–17 Bruce K Nadenbousch Consulting Employee Relations Consultant $33,160.00 Currie Communications Pty Ltd Communications Review and Framework development $15,200.00 Department Environment Land Water Large Herbivore Strategic Framework $42,727.27 & Planning Earthcheck Pty Ltd GPT Product Development Plan – $23,440.00 EarthCheck Consulting Services Ernst & Young Report – Understanding Sustainable Service Delivery $85,100.00

Ernst & Young Contractor Review $27,300.00 Ernst & Young Development of Full Business Case to support Strengthening $84,625.00 Parks Victoria initiative Foreman Family Trust T/as Blue Devil Northern Plains Grasslands Management Review $10,200.00 Consulting GC Risk Support Services 2016–17 Parks Victoria Risk Workshops $19,110.00

Helman Environmental Consulting Consulting Services $47,600.00 Heritage Insight Pty Ltd WGR South Block Cultural Heritage Management Plan 2016 – $33,372.36 consultancy services ISOQuest ISO Quest to identify and document for Parks Victoria's entire $22,400.00 scope of activities Jo Bell Heritage Services Pty Ltd RRG Firewood Cultural Heritage Preliminary Assessment of $35,328.13 Firewood Collection Area Kellogg Brown & Root Pty Ltd Pt Nepean Jetty Feasibility Study $19,300.00 Pario Solutions Group Pty Ltd Completion of Built-infrastructure Strategy Activation Plan $22,440.43 Peter James Parkinson Strategic Labour Relations and Human Resources Consultant $12,000.00 Right Lane Consulting Pty Ltd Consulting services for Parks Victoria Strategy Refresh Project $13,238.74 Taylor Cullity Lethlean Haining Park Precinct Plan $30,745.00 The Trustee for Deloitte Corporate Services Benchmarking Project $10,000.00 Consulting Trust TOTAL 19 consultancies $587,286.93

50 Compliance and disclosures Major contracts Environmental

No contracts greater than $10 million were entered performance into by Parks Victoria in 2016–17. Parks Victoria’s intention is to progressively improve the scope and accuracy of our environmental reporting Government advertising as part our ongoing commitment to environmental sustainability improvements. expenditure Energy, water and sustainability data is only produced and reported on a calendar year basis, therefore Parks Victoria did not undertake any advertising the data below is as at the end of December 2016. campaigns with a total media buy of $100,000 The data below is reported on a calendar year basis or greater (exclusive of GST) during 2016–17. to help avoid the impact of “data lag” which is the difference between the time of consumption and the time of bill issue and payment.

Environmental performance

Item 2014 2015 2016

Purchased Electricity (MW) 3,982* 3,661* 3,297** Purchased (town) Water (ML) 198 254*** 177*** Greenhouse Gas Emissions (Tonnes CO2-e) 9,617 9,323 8,330****

* Adjusted (more precise data obtained in 2017) ** In Victoria, the months January to September 2016 were warmer than average overall and autumn 2016 was Victoria’s warmest on record1. This would be expected to reduce heating-related electricity demand. October and November were relatively cool, meaning demand for electrical cooling could be lower than normal. *** 2016 was Victoria’s wettest year since 2011, with rainfall 19% above average2. This would reduce water demand at sites where irrigation occurs such as Albert Park and Yarra Bend. By comparison, in 2015 Victoria had below average rainfall, above average temperatures and periods of strong (desiccating) winds. **** Due to a recent change in Parks Victoria’s fleet provider, 2016–17 financial year greenhouse-gas-emission data has been used to calculate fleet-related greenhouse-gas emissions rather than the usual (2016) calendar year data. Other than fleet, all data is based on the relevant calendar year.

1 http://www.bom.gov.au/climate/current/annual/vic/summary 2 http://www.bom.gov.au/climate/current/annual/vic/summary

Parks Victoria Annual Report 2016–17 51 DataVic Access Policy Sponsorships

The DataVic Access Policy 2012 enables the sharing In line with the Victorian Government Sponsorship of government data at no, or minimal, cost to users. Policy and Parks Victoria’s Sponsorship Procedure, Parks Victoria continues to review its datasets to seven sponsorship requests (out-going) were determine suitability for submission to DataVic. In the approved and recorded totalling $29,484 ($26,869 interim, various data sets have been made available was cash sponsorship and $2,615 was in-kind directly to special interest groups on an ad-hoc basis sponsorship). The sponsorships were for: and digital maps, available to the public, are geo- • Department of Premier and Cabinet’s referenced and able to be interacted and referenced GovHack challenges accordingly. Other information has been supplied to various departments, such as DELWP, as the data • The University of Melbourne and the EcoHealth owner or agency responsible for further distribution. Oceania Chapter to deliver a pre-congress workshop and field trips through conference organisers Arinex P/L Information and • Parks Victoria Environmental Sustainability Award communication technology and People’s Choice Award at the Victorian Regional Achievement and Community Awards (ICT) expenditure through Awards Australia Parks Victoria had a total ICT expenditure of $15.64 • NatureRX promotional video with #NatureforAll million in 2016–17, consisting of the following: and #HPHP messages through PCI media in partnership with NSW National parks and Business As Usual (BAU) ICT Expenditure Wildlife Service, Parks Canada, US National $12.36 million Parks Service and East Bay Regional Parks

Non-Business As Usual (non-BAU) ICT • Parks Victoria Award for the best Deakin Expenditure (Total = Operational expenditure University Health Sciences student & Capital Expenditure) • supply of Parks Victoria merchandise for children $3.43 million to swap at the 29th Asian Pacific Children’s Convention in Fukuoka, Japan with the Australia Operational Expenditure – Japan Society of Victoria. $0.17 million

Capital Expenditure $3.26 million

Notes: • “ICT Expenditure” refers to Parks Victoria’s costs in providing business-enabling ICT services. It comprises Business As Usual (BAU) ICT expenditure and Non-Business As Usual (Non-BAU) ICT expenditure. • “Non-BAU ICT expenditure” relates to extending or enhancing Parks Victoria’s current ICT capabilities. • “BAU ICT expenditure” is all remaining ICT expenditure which primarily relates to ongoing activities to operate and maintain the current ICT capability.

52 Compliance and disclosures Compliance with the Australian/New Zealand Risk Management Standard

Parks Victoria Annual Report 2016–17 53 Financial Report for the year ended 30 June 2017

Comprehensive Operating Statement 55 Balance Sheet 56 Statement of Changes in Equity 57 Cash Flow Statement 58 Notes to the Financial Statements 59

54 Financial report Comprehensive Operating Statement For the year ended 30 June 2017

2017 2016 Notes $’000 $’000 Continuing operations Income from transactions Parks and reserves trust funding 3 97,512 97,537 Government funding 4 103,447 97,672 Interest 5 2,928 2,720 Fair value of assets received free of charge 292 1,730 Insurance claims 148 2,057 Other income 6 33,911 37,799 Total income from transactions 238,238 239,515

Expenses from transactions Employee benefits expenses 7 117,705 116,674 Depreciation and amortisation 8 13,156 12,685 Contracts and external services 9 72,015 71,406 Other operating expenses 10 28,178 22,587 Total expenses from transactions 231,054 223,352 Net result from transactions (net operating balance) 7,184 16,163

Net gain/(loss) on non-financial assets 11(a) (715) (460) Net gain/(loss) on financial instruments 11(b) 33 (216) Other gains/(losses) from other economic flows 11(c) (339) (1,639) Total other economic flows included in net result (1,021) (2,315) Net result 6,163 13,848

Other economic flows – other comprehensive income Items that will not be reclassified to net result Actuarial gain/(loss) recognised in a year 11(d) 2,650 (1,506) Changes in physical asset revaluation surplus 20 224,145 324,638 Total other economic flows – other comprehensive income 226,795 323,132 Comprehensive result 232,958 336,980

The above Comprehensive Operating Statement should be read in conjunction with the accompanying notes.

Parks Victoria Annual Report 2016–17 55 Balance Sheet As at 30 June 2017

2017 2016 Notes $’000 $’000 Assets Financial assets Cash and deposits 12 34,586 16,230 Receivables 13 12,135 17,635 Investments and other financial assets 14 100,000 95,000 Total financial assets 146,721 128,865

Non-financial assets Inventories 124 168 Property, plant and equipment 16 2,372,218 2,145,158 Intangible assets 17 2,585 3,435 Superannuation defined benefits asset 26(c) 179 – Other non-financial assets 1,823 1,120 Total non-financial assets 2,376,929 2,149,881

Total assets 2,523,650 2,278,746

Liabilities Trade and other payables 18 23,479 25,169 Provisions 19 37,240 37,371 Superannuation defined benefits liability 26(c) – 1,808 Total liabilities 60,719 64,348

Net assets 2,462,931 2,214,398

Equity Accumulated surplus/(deficit) 113,453 104,640 Physical asset revaluation surplus 20 1,684,462 1,460,317 Contributed capital 21 665,016 649,441 Total equity 2,462,931 2,214,398

The above Balance Sheet should be read in conjunction with the accompanying notes.

56 Financial report Statement of Changes in Equity For the year ended 30 June 2017

Physical Asset Accumulated Revaluation Surplus / Contributed Surplus (Deficit) Capital Total Notes $’000 $’000 $’000 $’000 Balance at 1 July 2015 1,135,679 92,300 637,989 1,865,968 Other comprehensive income 324,638 (1,506) – 323,132 Net result – 13,848 – 13,848 Contribution by owner 21 – – 11,452 11,452 Balance at 30 June 2016 1,460,317 104,640 649,441 2,214,398

Balance at 1 July 2016 1,460,317 104,640 649,441 2,214,398 Other comprehensive income 224,145 2,650 – 226,795 Net result – 6,163 – 6,163 Contribution by owner 21 – – 15,575 15,575 Balance at 30 June 2017 1,684,462 113,453 665,016 2,462,931

The Statement of Changes in Equity should be read in conjunction with the accompanying notes.

Parks Victoria Annual Report 2016–17 57 Cash Flow Statement For the year ended 30 June 2017

2017 2016 Notes $’000 $’000 Cash Flows from operating activities Receipts Receipts from parks charges 97,512 97,537 Receipts from government for operations 108,358 107,900 Receipts from government for Base Funding Review 6,419 6,419 Receipts from customers/other sources 36,092 34,992 Receipts from ATO relating to Goods and Services Tax 10,973 6,944 Interest received 2,602 2,599 Total receipts 261,956 256,391

Payments Payments to government for revenue collected from national parks (11,207) (10,876) Payments to suppliers and employees (229,467) (213,513) Total payments (240,674) (224,389) Net cash inflow from operating activities 22(b) 21,282 32,002

Cash Flows from investing activities Payments for property, plant and equipment (26,324) (12,840) Payments for other assets (investment with TCV) (5,000) (40,000) Proceeds from sale of property, plant and equipment 76 1 Net cash (outflow) from investing activities (31,248) (52,839)

Cash flows from financing activities Receipts from government – contributed capital 28,682 11,471 Repayment to government – Greener government buildings program (360) (360) Net cash inflow from financing activities 28,322 11,111 Net increase (decrease) in cash and cash equivalents 18,356 (9,726)

Cash and cash equivalents at the beginning of the financial year 16,230 25,956 Cash and cash equivalents at end of year 12 34,586 16,230

Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the ATO, is classified as operating cash flows and disclosed therein. The above Cash Flow Statement should be read in conjunction with the accompanying notes.

58 Financial report Contents of the notes to the financial statements

1 Background 60 2 Summary of significant accounting policies 60 3 Parks and reserves trust funding 65 4 Government funding 65 5 Interest 65 6 Other income 66 7 Employee benefits expenses 66 8 Depreciation and amortisation 67 9 Contracts and external services 68 10 Other operating expenses 68 11 Other economic flows included in net result 69 12 Cash and deposits 69 13 Receivables 70 14 Other financial assets 71 15 Committed funds 71 16 Property, plant and equipment 72 17 Intangible assets 81 18 Payables 82 19 Provisions 83 20 Physical asset revaluation surplus 85 21 Contributed capital 85 22 Cash flow information 86 23 Contingent liabilities and contingent assets 86 24 Commitments 87 25 Superannuation 88 26 Defined superannuation benefit 89 27 Volunteer resources provided free of charge 92 28 Auditor’s remuneration 92 29 Responsible persons and executive officer disclosures 92 30 Interest in other entities 95 31 Financial instruments 96 32 Ex-gratia payments 99 33 Post balance date events 99

Parks Victoria Annual Report 2016–17 59 Notes to the financial statements For the year ended 30 June 2017

1 Background a) Reporting entity

Parks Victoria is a not-for-profit individual reporting entity. Parks Victoria was formed as a public authority on 3 July 1998 under the Parks Victoria Act 1998. The Parks Victoria Act 1998 was given Royal Assent on 26 May 1998 and was proclaimed on 3 July 1998. The principal address is: Level 10/535 Bourke Street, Melbourne, VIC 3000 b) Objective and funding

The objective of Parks Victoria is to provide an outstanding parks and waterway system, protected and enhanced, for people, forever. Parks Victoria receives the majority of its funding from the Victorian Government for the management of Victoria’s National/State Parks and Reserves and from the Parks and Reserves Trust (Trust) for the management of metropolitan parks and waterways. The Trust is funded by a parks charge levied on properties within the Melbourne metropolitan area. These general purpose financial statements have been prepared in accordance with the Financial Management Act 1994 and applicable Australian Accounting Standards, including Interpretations (AASs). AASs include Australian equivalents to International Financial Reporting Standards.

2 Summary of significant accounting policies a) General

Statement of compliance

The financial statements as at 30 June 2017 comply with the relevant Financial Reporting Directions (FRDs) issued by the Department of Treasury and Finance and relevant Standing Directions (SD) authorised by the Minister for Finance. The financial statements are prepared in accordance with the Financial Management Act (FMA) and applicable Australian Accounting Standards (AASs) which include Interpretations, issued by the Australian Accounting Standards Board (AASB). Under Australian Accounting Standards, there are requirements that apply specifically to not-for-profit entities. Parks Victoria has analysed its purpose, objectives, and operating philosophy and determined that it does not have profit generation as a prime objective. Where applicable, the AASs that relate to not-for-profit entities have been applied. The financial statements were authorised for issue by the Board of Parks Victoria on 18 August 2017.

60 Financial report Notes to the financial statements For the year ended 30 June 2017 b) Basis of accounting preparation and measurement

These financial statements are in Australian dollars and the historical cost convention is used unless a different measurement basis is specifically disclosed in the note associated with the item measured on a different basis. The accrual basis of accounting has been applied in the preparation of these financial statements whereby assets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid. Amounts disclosed as income, expenses, assets and liabilities are, where applicable, net of returns, allowances and duties and taxes. Revenues, expenses, assets and liabilities are recognised net of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of expense. Receivables and payables are stated inclusive of GST. The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables. Amounts in the financial statements have been rounded to the nearest thousand dollars, unless otherwise stated. Figures in the financial statements may not equate due to rounding. In the application of AASs, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on professional judgements derived from historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Judgements, estimates and assumptions are required to be made about financial information being presented. The significant judgements made in the preparation of these financial statements are disclosed in the relevant notes. Historical cost is based on the fair values of the consideration given at the time in exchange for assets. Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported. The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2017 and the comparative information presented for the year ended 30 June 2016.

Parks Victoria Annual Report 2016–17 61 Notes to the financial statements For the year ended 30 June 2017 c) Scope and presentation of financial statements

(i) Comprehensive operating statement

The comprehensive operating statement comprises three components, being ‘net result from transactions’, ‘other economic flows included in net result’, as well as ‘other economic flows – other comprehensive income’. The sum of the former two, represents the net result. The net result is equivalent to profit or loss derived in accordance with AASs. This classification is consistent with the whole of government reporting format and is allowed under AASB 101 Presentation of Financial Statements.

(ii) Balance sheet

Assets and liabilities are presented in liquidity order with assets aggregated into financial assets and non-financial assets. Current and non current assets and liabilities are disclosed in the notes, where relevant. In general, non current assets or liabilities are expected to be recovered or settled more than 12 months after the reporting period, except for the provisions of employee benefits, which are classified as current liabilities if the entity does not have the unconditional right to defer the settlement of the liabilities within 12 months after the end of the reporting period.

(iii) Statement of changes in equity

The statement of changes in equity presents reconciliations of non owner and owner changes in equity from opening balances at the beginning of the reporting period to the closing balances at the end of the reporting period. It also shows separately changes due to amounts recognised in the ‘Comprehensive result’ and amounts related to ‘Transactions with owner in its capacity as owner’.

(iv) Cash flow statement

Cash flows are classified according to whether or not they arise from operating activities, investing activities or financing activities. This classification is consistent with requirements under AASB 107 Statement of cash flows.

62 Financial report Notes to the financial statements For the year ended 30 June 2017

d) New accounting standards and interpretations

Certain new AASs have been published that are not mandatory for the 30 June 2017 reporting period. Parks Victoria assesses the impact of these new standards, their applicability and early adoption, where applicable. As at 30 June 2017, the applicable standards and interpretations (applicable to Parks Victoria) had been issued but were not mandatory for the financial year ending 30 June 2017. Parks Victoria has not early adopted these standards.

Applicable for annual reporting periods Impact on Parks Victoria's Standard/Interpretation Summary beginning on financial statements

AASB 9 Financial Instruments The key changes include the simplified 1 Jan 2018 The assessment has identified that the requirements for the classification and amendments are likely to result in earlier measurement of financial assets, a new recognition of impairment losses and at hedging accounting model and a revised more regular intervals. While there will impairment loss model to recognise be no significant impact arising from impairment losses earlier, as opposed AASB 9 on Parks Victoria, there will be to the current approach that recognises a change to the way financial instruments impairment only when incurred. are disclosed.

AASB 15 Revenue from Contracts The core principle of AASB 15 requires 1 Jan 2019 The changes in revenue recognition with Customers an entity to recognise revenue when the requirements in AASB 15 may result entity satisfies a performance obligation in changes to the timing and amount by transferring a promised good or service of revenue recorded in the financial to a customer. statements. The Standard will also require additional disclosures on service revenue and contract modifications.

AASB 2014–1 Amendments to Amends various AASs to reflect the 1 Jan 2018 This amending standard will defer the Australian Accounting Standards AASB’s decision to defer the mandatory application period of AASB 9 to the [Part E Financial Instruments] (AASB application date of AASB 9 to annual 2018–19 reporting period in accordance 116 & AASB 138) reporting periods beginning on or after with the transition requirements. 1 January 2018 as a consequence of Chapter 6 Hedge Accounting, and to amend reduced disclosure requirements.

AASB 16 Leases The key changes introduced by AASB 16 1 Jan 2019 The assessment has indicated that include the recognition of most operating most operating leases will come on leases (which are currently not recognised) balance sheet. Depreciation of lease on balance sheet. assets and interest on lease liabilities will be recognised in the Comprehensive Operating Statement with marginal impact on the net result. Lease liabilities will cause net debt to increase.

AASB 1058 Income This standard replaces AASB 1004 1 Jan 2019 The assessment has indicated that revenue of Not-for-Profit Entities Contributions and establishes revenue from capital grants that are provided recognition principles for transactions under an enforceable agreement that where the consideration to acquire an have sufficiently specific obligations, asset is significantly less than fair value will now be deferred and recognised as to enable to not-for-profit entity to further performance obligations are satisfied. As its objectives. a result, the timing recognition of revenue will change.

Parks Victoria Annual Report 2016–17 63 Notes to the financial statements For the year ended 30 June 2017 d) New accounting standards and interpretations (continued)

In addition to the new standards and amendments above, the AASB has issued a list of other amending standards that are not effective for the current reporting period (as listed below). In general, these applicable standards include editorial and references changes that are expected to have insignificant impacts on public sector reporting. AASB 2010–7 Amendments to Australian Accounting Standards arising from AASB 9 AASB 2014–5 Amendments to Australian Accounting Standards arising from AASB 15 AASB 2014–7 Amendments to Australian Accounting Standards arising from AASB 9 AASB 2016–2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 107 AASB 2016–3 Amendments to Australian Accounting standards – Clarification to AASB 15 AASB 2016–6 Amendments to Australian Accounting Standards – Applying AASB 9 Financial Instruments with AASB 4 Insurance Contracts AASB 2016–8 Amendments to Australian Accounting Standards – Australian Implementation Guidance for Not-for-Profit Entities to AASB 9 and AASB 15 AASB 2017–2 Amendments to Australian Accounting Standards – Further Annual Improvements 2014–16 Cycle

64 Financial report Notes to the financial statements For the year ended 30 June 2017

2017 2016 $’000 $’000 3 Parks and reserves trust funding

Parks charges 87,512 87,537 Additional funding from parks and reserves trust 10,000 10,000 Total parks and reserves trust funding 97,512 97,537

The funding to Parks Victoria is provided by the Department of Environment, Land, Water and Planning (DELWP). Parks charges income is recognised when invoiced by Parks Victoria. This charge is levied on commercial and domestic properties throughout the Melbourne and metropolitan area. The funding received is then invested into the management and control of parks and waterways within the metropolitan area for the purposes of conservation, recreation, leisure, tourism and navigation. .

4 Government funding

National / state parks and reserves funding 58,666 52,780 Parks Victoria Base Review Funding 6,419 6,419 Government grants for special projects 13,761 13,945 Program Initiatives (including tracks and trails and Good Neighbour programs) 652 684 Project fire fighter funding 7,476 8,512 Major works funding provided by the Department of Environment, Land, Water and Planning 7,295 6,580 (DELWP) Major works funding provided by the Department of Economic Development, Jobs, Transport 9,178 8,752 and Resources (DEDJTR) Total government funding 103,447 97,672

Government funding comes in the form of grants. Grant income arises from transactions in which a party provides goods or assets (or extinguishes a liability) to another party without receiving approximately equal value in return. While grants may result in the provision of some goods or services to the other party, they do not provide a claim to receive benefits directly of approximately equal value and are termed ‘non-reciprocal’ transfers. Receipt and sacrifice of approximately equal value may occur, but only by coincidence. Non-reciprocal grants are recognised as income when control over the grant is obtained. Grants can be received as general purpose grants, which refers to grants which are not subject to conditions regarding their use. Alternatively, they may be received as specific purpose grants, which are paid for a particular purpose and/or have conditions attached regarding their use.

5 Interest

Interest from financial assets categorised as cash and deposits and other financial assets:

Interest on bank deposits and other financial assets 2,928 2,720 Total interest 2,928 2,720

Interest income includes interest received or receivable on bank term deposits and other investments. Interest income is recognised on a time proportionate basis that takes into account the effective yield on the financial asset.

Parks Victoria Annual Report 2016–17 65 Notes to the financial statements For the year ended 30 June 2017

2017 2016 $’000 $’000 6 Other income

Accommodation / camping fees 9,240 8,910 Funding sponsored by external parties 420 916 Rent, leases and licences 7,690 7,698 External sales 3,650 3,602 Berthing / mooring fees 463 481 Cave tour fees 1,221 1,180 Fire suppression costs, recovered from DELWP (note 7) 6,311 10,516 Other 4,916 4,496 Total other income 33,911 37,799

Accommodation / camping fees revenue is received from various parks across the state for both roofed accommodation and camping, the major one being Tidal River and Wilson Promontory, and are recognised as revenue when the accommodation is provided. Rent, leases and licence revenue represents income that arise from leasing of properties and licences issued to conduct various activities within the areas managed by Parks Victoria. The revenue is recognised when it is earned. External sales are mainly income received from the commercial operations of stores located at various parks, and recognised as revenue at the point of sale. Fire suppression costs recovered from DELWP is the income received for labour costs incurred relating to fire fighting activities, and recognised as revenue when invoiced or earned whichever occurs earlier. Other income is various revenue received throughout the year and is recognised when earned.

7 Employee benefits expenses

Salaries, wages, annual leave and long service leave 94,343 89,997 Termination benefits 675 567 Fire suppression costs (note 6)* 6,311 10,516 Superannuation – defined and accumulation plans** 9,224 8,577 Payroll Tax 5,039 4,766 Fringe Benefits Tax 435 500 Other on-costs 1,678 1,751 Total employee benefits 117,705 116,674

* Parks Victoria’s salaries & wages expenses relating to fire suppression program. ** Parks Victoria’s contributions, in respect of its employees (including salary sacrifice) refer note 25.

Employee Benefits: Employee benefits expenses include all costs related to employment including wages and salaries, fringe benefits tax, leave entitlements, termination payments and WorkCover premiums. The amount recognised in the comprehensive operating statement in relation to Superannuation is employer contributions for members of both defined benefit and accumulation plans that are paid or payable during the reporting period. Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. Parks Victoria recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after the end of the reporting period are discounted to present value.

66 Financial report Notes to the financial statements For the year ended 30 June 2017

2017 2016 $’000 $’000 8 Depreciation and amortisation

Depreciation Land improvements 2,520 2,291 Buildings and building improvements 4,551 3,951 Piers, jetties and river improvements 5,071 5,430 Plant and equipment, machinery & vehicles 118 153 Antiques 46 26 Total depreciation 12,306 11,851

Amortisation Intangibles 850 834 Total amortisation 850 834 Total depreciation and amortisation 13,156 12,685

Depreciation is applied to completed fixed assets including buildings and building improvements, piers, jetties and river improvements, land improvements and plant, equipment, machinery, and vehicles. Land is not depreciated. Works in Progress is valued at cost and depreciation commences on completion of the works. Depreciation is calculated on a straight-line basis to systematically write off the cost or revalued amount (net of residual value) of each non-current asset over its expected useful life. Depreciation rates are reviewed annually and, if necessary, adjusted to reflect the most recent assessments of the useful lives and residual values of the respective assets. Where assets have separate identifiable components that have distinct useful lives and/or residual values, a separate depreciation rate is determined for each component. The expected useful life of each asset category is as follows:

2017 2016 Expected Life Expected Life Asset category (Years) (Years)

Buildings and building improvements 5 to 100 5 to 100 Piers, jetties and river improvements 6 to 100 6 to 100 Land improvements 1 to 100 1 to 100 Plant and equipment, machinery & vehicles 1 to 10 1 to 10 Antiques 100 100

Amortisation is calculated on a straight-line basis to systematically write off the cost or revalued amount of each intangible asset over its expected useful life to the entity. Amortisation rates are reviewed annually and, if necessary, adjusted to reflect the most recent assessments of the useful lives and residual values of the respective assets. The expected useful life of each Intangible assets category (computer software) is 10 years (2016: 10 years).

Parks Victoria Annual Report 2016–17 67 Notes to the financial statements For the year ended 30 June 2017

2017 2016 $’000 $’000 9 Contracts and external services

Operational services and major works 41,066 42,841 Other external services 30,949 28,565 Total contracts and external services 72,015 71,406

Operational services and major works are expenses incurred on major work projects and activities across the state undertaken by Parks Victoria . Other external services are mainly expenses associated with property, computer and office equipment costs. All expenses are recognised in the reporting period in which they are incurred.

10 Other operating expenses

Materials 5,618 5,342 Transport 7,856 5,620 Insurance premiums 9,946 10,588 Payments for works sponsored by external parties 369 412 Fair value of assets provided free of charge 3,471 – Other 918 625 Total other operating expenses 28,178 22,587

Other operating expenses generally represent the day-to-day running costs incurred in normal operations and are recognised in the reporting period in which they are incurred. It also includes other payments made and assets provided free of charge to third parties in line with Parks Victoria’s operational requirements.

68 Financial report Notes to the financial statements For the year ended 30 June 2017

2017 2016 $’000 $’000 11 Other economic flows included in net result a) Net gain/(loss) on non-financial assets Disposal of property, plant and equipment (715) (460) Total net gain/(loss) on non-financial assets (715) (460) b) Net gain/(loss) on financial instruments Provision for doubtful debts (40) (107) Reversal of unused provision 170 – Interest income (loss) arising from advances from government – (97) (109) Greener government building program Total net gain/(loss) on financial instruments 33 (216)

Refer to Note 13 for the policy on doubtful debts. c) Other gains/(losses) from other economic flows Net gain/(loss) arising from revaluation of long service liability due to changes in the bond interest rates (339) (1,639) Total other gains/(losses) from other economic flows (339) (1,639) Total other economic flows included in net result (1,021) (2,315) Other economic flows – other comprehensive income d) Items that will not be reclassified to net result Net gain/(loss) arising from revaluation of superannuation defined benefit plans 2,650 (1,506) Total other economic flows – other comprehensive income 2,650 (1,506)

Refer to note 26 for details on Defined superannuation benefit.

12 Cash and deposits

Cash and deposits 34,586 16,230 Total cash and deposits – current 34,586 16,230

Cash and deposits recognised on the balance sheet comprise cash on hand and cash at bank, deposits at call and those highly liquid investments (with an original maturity of three months or less), which are held for the purpose of meeting short term cash commitments rather than for investment purposes, and readily convertible to known amounts of cash with an insignificant risk of changes in value. For the purpose of the Cash Flow Statement, cash assets include cash on hand and highly liquid investments with short periods to maturity that are readily convertible to cash on hand at Parks Victoria’s option and are subject to insignificant risk of changes values. Park Victoria’s exposure to interest rate risk is discussed in note 31(f). The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of cash and deposits and other financial assets mentioned in note 31(d).

Parks Victoria Annual Report 2016–17 69 Notes to the financial statements For the year ended 30 June 2017

2017 2016 Non- Non- Current Current Total Current Current Total $’000 $’000 $’000 $’000 $’000 $’000 13 Receivables

Statutory Amount owing from Victorian Government* 7,100 – 7,100 11,679 – 11,679 GST input tax credit recoverable 1,091 – 1,091 2,398 – 2,398 Total receivables – statutory 8,191 – 8,191 14,077 – 14,077

Contractual Debtors 3,457 – 3,457 2,671 – 2,671 Provision for doubtful debts (397) – (397) (530) – (530) Other receivables 850 34 884 1,373 44 1,417 Total receivables – contractual 3,910 34 3,944 3,514 44 3,558 Total receivables 12,101 34 12,135 17,591 44 17,635

Receivables consist of: • statutory receivables, which include predominately amounts owing from the Victoria Government and GST input tax credit recoverable; and • contractual receivables, which include mainly debtors in relation to goods and services, and accrued investment income. Receivables that are contractual are classified as financial instruments and categorised as loans and receivables. Statutory receivables are not classified as financial instruments. * Statutory receivables do not arise from contracts and are recognised and measured similarly to contractual receivables (except for impairment), but are not classified as financial instruments. Amounts recognised from the Victorian Government represent funding from DELWP for all commitments and are drawn from the Consolidated Fund as the commitments fall due. Compensation from third parties for items of property, plant and equipment that were impaired, lost or given up are recognised as a receivable when the receipt of the reimbursement becomes “virtually certain.” Collectability of debtors is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A provision for doubtful debts is established when there is objective evidence that Parks Victoria will not be able to collect all amounts due according to the original terms of receivables. Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial. The amount of the provision is recognised in the Comprehensive Operating Statement. Bad debts are written off in the period in which they are incurred. The average credit period on sales of goods or provision of services is 30 days (2016: 30 days).

2017 2016 $’000 $’000 a) Movement in the provision for doubtful debts Balance at the beginning of the year (530) (432) Reversal of unused provision recognised in the net result 170 – Increase in provision recognised in the net result (40) (107) Reversal of provision written off during the year as uncollectible 3 9 Balance at the end of the year (397) (530) b) Aging analysis of contractual receivables Refer to table under note 31(d) for the ageing analysis of receivables (except statutory receivables). c) Nature and extent of risk arising from contractual receivables Refer to note 31(d) for the nature and extent of risks arising from contractual receivables.

70 Financial report Notes to the financial statements For the year ended 30 June 2017

2017 2016 $’000 $’000 14 Other financial assets

Investments Australian dollars term deposit > 3 months 100,000 95,000 Total other financial assets – current 100,000 95,000

Other financial assets consists of term deposit with maturity greater than 90 days. Parks Victoria’s exposure to interest rate risk is discussed in note 31(f). The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of cash and deposits and other financial assets mentioned in note 31(d).

15 Committed funds

Total funds (refer note 12 & 14 ) 134,586 111,230

Committed cash and Investments Government asset and initiative funding 55,524 38,569 Point Nepean park establishment 4,118 4,853 Fire and flood programs (incl. insurance) 8,787 6,918 Sponsored works 15,904 10,236 Prepaid revenue – roofed accommodation and camping 1,906 1,787 Other liabilities 811 984 Total committed cash 87,050 63,347

These commitments form part of contributed capital and accumulated surplus/(deficit) and are for complex projects that span greater than one financial year. Parks Victoria receives significant funding in advance from many sources and manages both committed and uncommitted cash to ensure it has sufficient capacity to meet financial commitments as they arise.

Parks Victoria Annual Report 2016–17 71 Notes to the financial statements For the year ended 30 June 2017

2017 2016 $’000 $’000 16 Property, plant and equipment a) Classification by public safety and environment-carrying amounts Crown land, land and land improvements* At fair value 2,120,323 1,900,796 Accumulated depreciation (2,518) (9) Net book value – Crown land, land, and land improvements 2,117,805 1,900,787

Buildings and building improvements At fair value 90,120 96,837 Accumulated depreciation (4,172) (5) Net book value – Buildings and building improvements 85,948 96,832

Plant, equipment, machinery & vehicles At fair value 8,020 7,977 Accumulated depreciation (7,628) (7,510) Net book value – Plant, equipment, machinery & vehicles 392 467

Piers and jetties and river improvements At fair value 133,373 130,329 Accumulated depreciation (5,303) (236) Net book value – Piers, jetties and river improvements 128,070 130,093

Antiques and artworks At fair value 4,643 4,643 Accumulated depreciation (46) – Net book value – Antiques and artworks 4,597 4,643

Works in progress At cost 35,406 12,336 Closing balance – Works in progress 35,406 12,336

Net carrying amount of property, plant and equipment 2,372,218 2,145,158

* Depreciation relates to land improvements only.

72 Financial report Notes to the financial statements For the year ended 30 June 2017

16 Property, plant and equipment (continued) a) Classification by public safety and environment-carrying amounts (continued)

Initial recognition Items of property, plant and equipment are measured initially at cost and subsequently valued at fair value, except Work in Progress (WIP), less accumulated depreciation and impairment. Where an asset is acquired for no or nominal cost, the cost is its fair value at the date of acquisition. The cost of constructed property, plant and equipment includes the cost of all materials used in construction, direct labour on the project, and an appropriate proportion of variable and fixed overheads. Items with a cost or value of $5,000 (2016: $5,000) or more, and a useful life of more than one year are recognised as an asset, all other items are expensed.

Impairment of property, plant and equipment All non-financial assets are assessed annually for indications of impairment, except for Inventories, whenever there is an indication that the asset may be impaired. The assets concerned are tested as to whether their carrying value exceeds their recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written off as an ‘other economic flow’, except to the extent that it can be charged to an physical asset revaluation surplus amount applicable to that class of asset. If there is an indication that there has been a reversal in impairment, the carrying amount shall be increased to its recoverable amount. However this reversal should not increase the asset’s carrying amount above what would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised in prior years. The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell.

Revaluations of property, plant and equipment Property, plant and equipment are measured at fair value in accordance with FRD 103F Non-Financial Physical Assets issued by the Minister for Finance. A full revaluation occurs every five years, based upon the asset’s Government Purpose Classification, but may occur more frequently if fair value assessments indicate material changes in value. Revaluation increases or decreases arise from differences between an asset’s carrying value and fair value. The fair value of the crown land is determined with regards to the property’s highest and best use after due consideration is made for any legal or constructive restrictions imposed on the asset, public announcements or commitments made in relation to the intended use of the asset. Unrestricted fair value was determined by using the market approach, whereby assets are compared to recent comparable sales or sales of comparable assets adjusted for the community service obligation (CSO) to reflect the specialised nature of the land being valued. The CSO adjustment is a reflection of the valuer’s assessment of the impact of restrictions associated with an asset to the extent that is also equally applicable to market participants. The fair value of buildings that Parks Victoria intends to preserve because of their unique historical, cultural or environmental attributes, is determined (except antiques) at depreciation replacement cost of the asset to reflect the already consumed or expired future economic benefits of the asset and any accumulated impairment. The fair value of infrastructure systems and plant, equipment and vehicles, is normally determined by reference to the asset’s depreciated replacement cost. The fair value of piers, jetties and river improvements are valued using the depreciated replacement cost method. This cost represents the replacement cost of the component after applying depreciation rates on a useful life basis. Replacement costs relate to costs to replace the current service capacity of the asset. Economic obsolescence has also been factored into the depreciated replacement cost calculation. The fair value of the antiques and artworks was determined using the market approach, whereby the value of the antiques and artwork was determined by comparing similar examples of the items in existence or sold. A full revaluation of non-financial physical assets was conducted in June 2016. The useful lives and residual values of the respective assets were adjusted to reflect the most recent assessment performed by the Valuer-General Victoria (VGV). The next scheduled full revaluation will be conducted in June 2021. The Valuer-General provides guidance to asset valuers on the valuation rationale and appropriate level of “Community Service Obligation” discount of 70% and 90% were applied to the assets.

Accounting treatment of revaluation Net revaluation increases are credited directly to equity in the physical asset revaluation surplus, except to the extent that an increase reverses a net revaluation decrease in respect of that class of property, plant and equipment previously recognised as an expense (other economic flows) in the net result, the increase is recognised as income (other economic flows) in determining the net result. Net revaluation decreases are recognised immediately as expenses (other economic flows) in the net results, except to the extent that a credit balance exists in the physical asset revaluation surplus in respect of the same class of property, plant and equipment in which case they are debited to the physical asset revaluation surplus. Revaluation increases and decreases relating to individual assets within a class of property, plant and equipment are offset against one another within that class but are not offset in respect of assets in different classes.

Parks Victoria Annual Report 2016–17 73 Notes to the financial statements For the year ended 30 June 2017

16 Property, plant and equipment (continued) b) Classification by public safety and environment – carrying amounts

Crown land Buildings Plant, equipment, and land and building machinery and Piers, jetties and improvements improvements vehicles river improvements Antiques Works in progress Total 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Opening balance 1,900,787 1,641,466 96,832 69,490 467 543 130,093 82,926 4,643 3,704 12,336 27,092 2,145,158 1,825,221 Additions 118 493 164 1,645 43 77 3,222 – – – 26,291 12,016 29,840 14,232 Disposals (205) (7) (3,807) (155) – – (174) (245) – (52) – – (4,186) (460) Net revaluation increments/ decrements 224,145 261,909 – 28,616 – – – 33,095 – 1,017 – – 224,145 324,638 Depreciation expense (2,520) (2,291) (4,551) (3,951) (118) (153) (5,071) (5,430) (46) (26) – – (12,306) (11,851) Asset transfer in / out of assets under construction – 314 – 288 – – – 19,549 – – (3,222) (20,442) (3,222) (291) Other adjustments – (1,097) – 899 – – – 198 – – 1 – – (1) Machinery of government asset transfer out (4,520) – (2,690) – – – – – – – – (6,330) (7,211) (6,330) Closing balance 2,117,805 1,900,787 85,948 96,832 392 467 128,070 130,093 4,597 4,643 35,406 12,336 2,372,218 2,145,158

Crown land and land improvements To determine the fair value, an independent full revaluation of Parks Victoria’s land and land improvements was performed by the Valuer-General Victoria. The effective date of the valuation was 30 June 2016. The next scheduled full revaluation for this purpose group will be conducted in June 2021. An annual fair value assessment using the land indices provided by the Valuer-General Victoria, indicated a compound movement in the fair value to be material. In accordance with the requirements of FRD 103F Parks Victoria has performed a managerial revaluation of the land. The effective date of the managerial revaluation is 30 June 2017. The financial statements list the location and values of Crown land over which Parks Victoria is the committee of management in note 16(c). This Crown Land remains the property of the State of Victoria.

Buildings and improvements, piers, jetties and river improvements An independent valuation of Parks Victoria’s buildings and improvements, piers, jetties and river improvements was performed by the Valuer-General Victoria to determine the fair value. The valuation was determined based on the depreciated replacement cost of the assets. The effective date of the valuation was 30 June 2016. An annual fair value assessment using the building indices provided by the Valuer-General Victoria, indicated an immaterial movement in that assets class, so managerial revaluation was not required to be performed. The next scheduled full revaluation for this purpose group will be conducted in June 2021.

Plant, equipments, machinery & vehicles Plant and equipment are valued using the depreciated replacement cost method. Depreciation is calculated on a straight-line basis to systematically write-off the cost of each asset over its expected useful life to the entity.

Antiques An independent valuation of Parks Victoria’s antiques were performed by the Valuer-General Victoria to determine the fair value. The valuation was determined based on the market approach. The effective date of the valuation was 30 June 2016. Parks Victoria conducted a fair value assessment at 30 June 2017 with no material movement identified since the 2016 valuation. The next scheduled full revaluation for this purpose group will be conducted in June 2021.

74 Financial report 16 Property, plant and equipment (continued) b) Classification by public safety and environment – carrying amounts

Crown land Buildings Plant, equipment, and land and building machinery and Piers, jetties and improvements improvements vehicles river improvements Antiques Works in progress Total 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Opening balance 1,900,787 1,641,466 96,832 69,490 467 543 130,093 82,926 4,643 3,704 12,336 27,092 2,145,158 1,825,221 Additions 118 493 164 1,645 43 77 3,222 – – – 26,291 12,016 29,840 14,232 Disposals (205) (7) (3,807) (155) – – (174) (245) – (52) – – (4,186) (460) Net revaluation increments/ decrements 224,145 261,909 – 28,616 – – – 33,095 – 1,017 – – 224,145 324,638 Depreciation expense (2,520) (2,291) (4,551) (3,951) (118) (153) (5,071) (5,430) (46) (26) – – (12,306) (11,851) Asset transfer in / out of assets under construction – 314 – 288 – – – 19,549 – – (3,222) (20,442) (3,222) (291) Other adjustments – (1,097) – 899 – – – 198 – – 1 – – (1) Machinery of government asset transfer out (4,520) – (2,690) – – – – – – – – (6,330) (7,211) (6,330) Closing balance 2,117,805 1,900,787 85,948 96,832 392 467 128,070 130,093 4,597 4,643 35,406 12,336 2,372,218 2,145,158

Crown land and land improvements To determine the fair value, an independent full revaluation of Parks Victoria’s land and land improvements was performed by the Valuer-General Victoria. The effective date of the valuation was 30 June 2016. The next scheduled full revaluation for this purpose group will be conducted in June 2021. An annual fair value assessment using the land indices provided by the Valuer-General Victoria, indicated a compound movement in the fair value to be material. In accordance with the requirements of FRD 103F Parks Victoria has performed a managerial revaluation of the land. The effective date of the managerial revaluation is 30 June 2017. The financial statements list the location and values of Crown land over which Parks Victoria is the committee of management in note 16(c). This Crown Land remains the property of the State of Victoria.

Buildings and improvements, piers, jetties and river improvements An independent valuation of Parks Victoria’s buildings and improvements, piers, jetties and river improvements was performed by the Valuer-General Victoria to determine the fair value. The valuation was determined based on the depreciated replacement cost of the assets. The effective date of the valuation was 30 June 2016. An annual fair value assessment using the building indices provided by the Valuer-General Victoria, indicated an immaterial movement in that assets class, so managerial revaluation was not required to be performed. The next scheduled full revaluation for this purpose group will be conducted in June 2021.

Plant, equipments, machinery & vehicles Plant and equipment are valued using the depreciated replacement cost method. Depreciation is calculated on a straight-line basis to systematically write-off the cost of each asset over its expected useful life to the entity.

Antiques An independent valuation of Parks Victoria’s antiques were performed by the Valuer-General Victoria to determine the fair value. The valuation was determined based on the market approach. The effective date of the valuation was 30 June 2016. Parks Victoria conducted a fair value assessment at 30 June 2017 with no material movement identified since the 2016 valuation. The next scheduled full revaluation for this purpose group will be conducted in June 2021.

Parks Victoria Annual Report 2016–17 75 Notes to the financial statements For the year ended 30 June 2017

16 Property, plant and equipment (continued) c) Crown land, land and land improvements at fair value, where Parks Victoria is a Committee of Management*

2017 2016 2017 2016 2017 Area $’000 2016 Area $’000 Crown land (Hectares) (Net book value) (Hectares) (Net book value) Location Albert Park 210 1,032,167 210 909,375 Bays assets (land under piers and jetties) 2,638 101,947 2,638 91,039 Buchan Caves Reserve 2 53 2 50 Coolart 88 2,756 88 2,625 Dandenong Police Paddocks 495 211,436 495 185,470 Gardens 61 1,767 61 1,669 Dandenong Valley 7 4,218 7 3,700 Daylesford 1 1,008 1 1,007 Devilbend Reservoir 997 18,963 997 18,060 Eildon Water Reserve 533 1,600 533 1,600 Happy Valley 16 59 16 54 Herring Island 3 11,340 3 10,500 Hopkins River 51 143 51 140 Lighthouse Reserves 428 2,512 428 2,421 Lower Homebush Reserve 40 34 40 34 Maribyrnong Valley 22 8,202 22 7,380 Mt Dandenong Observatory Reserve 5 1,495 5 1,466 Olinda Golf Course 34 1,102 34 1,030 Peach Tree Creek 34 107 34 102 Plenty Gorge 212 15,971 212 14,810 Point Cook / Cheetham 4 1,132 4 1,110 Point Gellibrand Heritage Park 17 18,211 17 17,020 Port Campbell 1 115 1 115 Princes Wharf 1 501 1 460 Queenscliff Harbour 148 4,180 148 4,180 Rosebud depot 1 937 1 892 Sailors Falls 1 2 1 2 San Remo 1 630 1 600 Sandringham Boat Harbour 10 7,526 10 6,720 Serendip Sanctuary 227 1,392 227 1,365 Vaughan Springs 95 502 95 465 Werribee Park 164 7,528 164 7,380 Westgate 34 37,074 34 33,400 Williamstown 146 36,145 146 33,780 Yarra Bend Park 268 394,199 268 361,650 Yarra Valley 125 126,525 125 112,400 1,967 6,354 1,967 6,111 Total crown land at fair value 9,087 2,059,833 9,087 1,840,182

76 Financial report Notes to the financial statements For the year ended 30 June 2017

16 Property, plant and equipment (continued) c) Crown land, land and land improvements at fair value, where Parks Victoria is a Committee of Management (continued)

2017 2016 $’000 $’000 Land improvements (Net book value) (Net book value) Total land improvements at fair value 57,972 60,606 Total Crown land and land improvements 2,117,805 1,900,787

Parks Victoria only recognises assets on land it controls as the committee of management. Parks Victoria also manages other assets on behalf of the Crown. Those assets and any new assets constructed by Parks Victoria on behalf of the Crown are recognised in the asset register of the Department of Environment, Land, Water and Planning (DELWP). * Where any land has been permanently reserved under Crown Land (Reserves) Act 1978 for the purposes of a public park or garden or for the recreation convenience or amusement of the people, the government may appoint a committee of management to manage the land. d) Fair value measurement hierarchy for assets as at 30 June 2017

Fair value measurement Carrying at end of reporting period using: amounts as at 30 Jun 2017 Level 1 Level 2 Level 3 $’000 $’000 $’000 $’000 Specialised land at fair value Crown land, land and land improvements 2,117,805 – – 2,117,805 Total of land at fair value 2,117,805 – – 2,117,805

Specialised building at fair value Buildings and building improvements 85,948 – – 85,948 Total of building at fair value 85,948 – – 85,948

Plant, equipment, machinery and vehicles at fair value Plant, equipment, machinery and vehicles 392 – – 392 Total of plant, equipment, machinery and vehicles at fair value 392 – – 392

Infrastructure at fair value Piers, jetties 117,739 – – 117,739 Total of infrastructure at fair value 117,739 – – 117,739

Infrastructure at fair value River improvements 10,331 – – 10,331 Total of infrastructure at fair value 10,331 – – 10,331

Antique assets at fair value Antiques and artworks 4,597 – 4,597 – Total of cultural assets at fair value 4,597 – 4,597 – Grand total 2,336,812 – 4,597 2,332,215

Parks Victoria Annual Report 2016–17 77 Notes to the financial statements For the year ended 30 June 2017

16 Property, plant and equipment (continued) d) Fair value measurement hierarchy for assets as at 30 June 2017 (continued)

Fair value measurement Carrying at end of reporting period using: amounts as at 30 Jun 2016 Level 1 Level 2 Level 3 $’000 $’000 $’000 $’000 Specialised land at fair value Crown land, land and land improvements 1,900,787 – – 1,900,787 Total of land at fair value 1,900,787 – – 1,900,787

Specialised building at fair value Buildings and building improvements 96,832 – – 96,832 Total of building at fair value 96,832 – – 96,832

Plant, equipment, machinery and vehicles at fair value Plant, equipment, machinery and vehicles 467 – – 467 Total of plant, equipment, machinery and vehicles at fair value 467 – – 467

Infrastructure at fair value Piers, jetties 121,682 – – 121,682 Total of infrastructure at fair value 121,682 – – 121,682

Infrastructure at fair value River improvements 8,411 – – 8,411 Total of infrastructure at fair value 8,411 – – 8,411

Antique assets at fair value Antiques and artworks 4,643 – 4,643 – Total of cultural assets at fair value 4,643 – 4,643 – Grand total 2,132,822 – 4,643 2,128,179

Consistent with AASB 13 Fair Value Measurement, Parks Victoria determines the policies and procedures for fair value measurements of property, plant and equipment. For the purpose of fair value disclosures, Parks Victoria has determined classes of assets on the basis of the nature, characteristics and risks of the asset and the level of the fair value hierarchy as explained above. All assets for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: • Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities, • Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; and • Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. Parks Victoria, according to the accounting policy, determines whether transfers have occurred between the levels in the hierarchy based on the lowest level of input that is significant to the fair value measurement at the end of the reporting period. There have been no transfers between levels during the period.

78 Financial report Notes to the financial statements For the year ended 30 June 2017

16 Property, plant and equipment (continued) d) Fair value measurement hierarchy for assets as at 30 June 2017 (continued)

Total of specialised land and total of specialised buildings Specialised land is valued using the market approach adjusted for Community Service Obligation (CSO) which accounts for any legal or constrictive restrictions imposed on the assets such as current zoning, covenants, use, public announcements or commitments made in relation to the intended use of the land. As adjustments of CSO are considered as significant unobservable inputs, specialised land would be classified as Level 3 assets. The value of specialised buildings was determined by the VGV after deducting allowances for any physical deterioration and functional and economic obsolescence already occurred or expired (depreciated replacement cost). As depreciation adjustments are considered as significant, unobservable inputs in nature, specialised buildings are classified at Level 3 fair value measurements.

Plant, equipment, machinery and vehicles Plant, equipment, machinery and vehicles are valued using the depreciated replacement cost method. This cost represents the replacement cost of the plant, equipment, machinery and vehicles after applying depreciation rates on a useful life basis. Replacement costs relate to costs to replace the current service capacity of the asset. As depreciation adjustments are considered as significant, unobservable inputs in nature, these assets are classified at Level 3 fair value measurements.

Infrastructure Infrastructure comprises of piers, jetties and river improvements. Infrastructure assets are valued using the depreciated replacement cost method. This cost represents the replacement cost of the component after applying depreciation rates on a useful life basis. Replacement costs relate to costs to replace the current service capacity of the asset. Economic obsolescence has also been factored into the depreciated replacement cost calculation. Where it has not been possible to examine hidden works such as structural frames and floors, the use of reasonable materials and methods of construction have been assumed bearing in mind the age and nature of the building. The estimated cost of reconstruction including structure services and finishes as applicable. An independent valuation of Parks Victoria’s infrastructure was performed by Napier & Blakeley Pty Ltd on behalf of the Valuer General Victoria. The valuation was performed based on the depreciated replacement cost of the assets. The effective date of the valuation is 30 June 2016. As depreciation adjustments are considered as significant, unobservable inputs in nature, these assets are classified at Level 3 fair value measurements.

Antique assets Antiques comprising sculptures,artworks and furniture. The value of antiques was determined by the VGV by comparing similar examples of the items and artists work in existence throughout Australia and research on prices paid for similar examples offered at auction or through art galleries in recent years. Antique assets are classified at Level 2 fair value measurements as their values are based on significant inputs and market values that are directly or indirectly observable.

Parks Victoria Annual Report 2016–17 79 Notes to the financial statements For the year ended 30 June 2017

16 Property, plant and equipment (continued) e) Reconciliation of level 3 fair value

Plant, Equipment, Piers, Jetties Specialised Specialised Machinery and River Total Level 3 Land Buildings and Vehicles Improvements Assets 2017 Opening balance 1,900,787 96,832 467 130,093 2,128,179 Purchases (sales) (4,606) (6,333) 43 (174) (11,071) Transfers in (out) of Level 3 – – – – –

Gains or losses recognised in net results Depreciation expense (2,520) (4,551) (118) (5,071) (12,261) Impairment loss – – – – – Subtotal 1,893,661 85,948 392 124,848 2,104,847

Gains or losses recognised in other – – – – – economic flows – other comprehensive income Revaluation 224,145 – – – 224,145 Subtotal 224,145 – – – 224,145 Closing balance 2,117,805 85,948 392 128,070 2,332,215

2016 Opening balance 1,641,466 69,490 543 82,926 1,794,425 Purchases (sales) 800 1,778 77 19,304 21,959 Transfers in (out) of Level 3 (1,097) 899 – 198 –

Gains or losses recognised in net results Depreciation expense (2,291) (3,951) (153) (5,430) (11,825) Impairment loss – – – – – Subtotal 1,638,878 68,216 467 96,998 1,804,559

Gains or losses recognised in other – – – – – economic flows – other comprehensive income Revaluation 261,909 28,616 – 33,095 323,621 Subtotal 261,909 28,616 – 33,095 323,621 Closing balance 1,900,787 96,832 467 130,093 2,128,179

80 Financial report Notes to the financial statements For the year ended 30 June 2017

16 Property, plant and equipment (continued) f) Description of significant unobservable inputs to Level 3 valuations as at 30 June 2017

Valuation technique Significant unobservable inputs

Specialised Land Market approach Community service Obligation (CSO) adjustment

Specialised Buildings Depreciated replacement cost (1) Cost per building and (2) Useful life of specialised buildings

Plant, Equipment, Machinery and Vehicles Depreciated replacement cost (1) Cost per unit and (2) Useful life of plant and equipment, machinery and vehicles

Piers/Jetties Depreciated replacement cost (1) Cost per pier/jetty and (2) Useful life of piers, jetties

River Improvements Depreciated replacement cost (1) Cost per river improvement and (2) Useful life of river improvements

Significant unobservable inputs have remain unchanged since June 2016.

2017 2016 $’000 $’000 17 Intangible assets

Computer software Gross carrying amount Gross carrying amount opening balance 8,497 8,206 Additions – internal development – 291 Closing balance 8,497 8,497

Accumulated amortisation and impairment Opening balance (5,062) (4,228) Amortisation expense (850) (834) Closing balance (5,912) (5,062) Net book value at the end of financial year 2,585 3,435

Intangible assets include business systems and IT software. Intangible assets are initially recognised at cost. Subsequently, intangible assets with finite useful lives are carried at cost less accumulated amortisation and accumulated impairment losses. Costs incurred subsequent to initial acquisition are capitalised when it is expected that additional future economic benefits will flow to Parks Victoria.

Parks Victoria Annual Report 2016–17 81 Notes to the financial statements For the year ended 30 June 2017

2017 2016 Non- Non- Current Current Total Current Current Total $’000 $’000 $’000 $’000 $’000 $’000 18 Payables

Statutory FBT payable 107 – 107 126 – 126 Other taxes payables 465 – 465 350 – 350 Total payables – statutory 572 – 572 476 – 476

Contractual Unsecured creditors and accruals 19,326 – 19,326 20,923 – 20,923 Employee benefits 1,576 – 1,576 1,552 – 1,552 Advances from (DEWLP – Greener Government Building Program) 360 1,490 1,850 360 1,752 2,112 Other payables 155 – 155 106 – 106 Total payables – contractual 21,417 1,490 22,907 22,941 1,752 24,693 Total payables 21,989 1,490 23,479 23,417 1,752 25,169

Payables consist of: • contractual payables, such as accounts payable and employee benefits. Accounts payable represents liabilities for goods and services provided to Parks Victoria for the financial year that are unpaid, and arise when Parks Victoria becomes obliged to make future payments in respect of the purchase of those goods and services; and • statutory payables, such as fringe benefits tax payable and payroll tax. Contractual payables are classified as financial instruments and categorised as financial liabilities at amortised cost. Statutory payables are recognised and measured similarly to contractual payables, but are not classified as financial instruments and not included in the category of financial liabilities at amortised cost, as they do not arise from a contract. Payables are non-interest bearing and have an average credit period of 30 days (2016: 30 days).

(a) Nature and extent of risk arising from contractual payables

Refer to note 31(e) for the nature and extent of risks arising from contractual payables.

Employee Benefits:

Wages and salaries and sick leave Liabilities for wages and salaries that are expected to be settled wholly within 12 months of the reporting date are measured at their nominal amounts in respect of employees’ services up to the reporting date. The nominal basis of measurement uses employee remuneration rates that the entity expects to pay as at each reporting date and does not discount cash flows to their present value. Non-vesting sick leave is not expected to exceed current and future sick leave entitlements, and accordingly, no liability has been recognised.

82 Financial report Notes to the financial statements For the year ended 30 June 2017

2017 2016 Non- Non- Current Current Total Current Current Total $’000 $’000 $’000 $’000 $’000 $’000 19 Provisions

Employee benefits Annual Leave expected to be taken within the next 12 months 5,295 – 5,295 5,135 – 5,135 Annual Leave expected to be taken after the next 12 months 1,551 – 1,551 1,482 – 1,482 Long service leave – unconditional and expected to be taken 2,288 – 2,288 2,152 – 2,152 within 12 months Long service leave – unconditional and expected to be taken after 20,497 – 20,497 20,338 – 20,338 12 months Long service leave – conditional – 1,919 1,919 – 2,500 2,500 Total employee benefits 29,631 1,919 31,550 29,107 2,500 31,607

Employee benefit On-costs Annual Leave entitlements 1,147 – 1,147 1,168 – 1,168 Long service leave – unconditional and expected to be taken 421 – 421 396 – 396 within 12 months Long service leave – unconditional and expected to be taken 3,769 – 3,769 3,740 – 3,740 after 12 months Long service leave – conditional – 353 353 – 460 460 Total employee related On – costs 5,337 353 5,690 5,304 460 5,764 Total employee benefits and related on-costs 34,968 2,272 37,240 34,411 2,960 37,371

Parks Victoria Annual Report 2016–17 83 Notes to the financial statements For the year ended 30 June 2017

2017 $’000 19 Provisions (continued)

Reconciliation of movements in on-cost provision Opening balance 5,764 Additional provisions recognised 2,359 Reductions arising from payments/other sacrifices of future economic benefits (2,302) Unwind of discount and effect of changes in the discount rate (131) Closing balance 5,690

Current 5,337 Non-current 353 Closing balance 5,690

Annual leave and long service leave entitlements expected to be settled wholly within 12 months of the reporting date are recognised as a provision for employee benefit in the balance sheet at their nominal values. Annual leave and long service leave entitlements not expected to be settled within 12 months of the reporting date are recognised at the present value of the estimated future cash outflows to be made by Parks Victoria in respect of services provided by employees up to reporting date. Consideration is given to expected future employee remuneration rates, employment related on-costs and other factors including experience of employee departures and periods of service. In the determination of the long service leave entitlement liabilities, Parks Victoria use the wage inflation and discount rates released by the Department of Treasury and Finance. Employee benefit provisions are reported as current liabilities where Parks Victoria does not have an unconditional right to defer settlement for at least 12 months. Consequently, the current portion of the employee benefit provision can include both short-term benefits (those benefits expected to be settled within 12 months of the reporting date), which are measured at nominal values, and long-term benefits (those benefits not expected to be settled within 12 months of the reporting date), which are measured at present values. Employee benefit provisions that are reported as non-current liabilities also include long-term benefits such as non-vested long service leave (i.e. where the employee does not have a present entitlement to the benefit) that do not qualify for recognition as a current liability, and are measured at present vales. The non-current liability for long service leave represents entitlements accrued for employees with less than 7 years of continuous service, where Parks Victoria has the right to defer the liability. On costs such as payroll tax, superannuation and workers compensation are recognised separately from the provision for employee benefits.

84 Financial report Notes to the financial statements For the year ended 30 June 2017

2017 2016 Notes $’000 $’000 20 Physical asset revaluation surplus

Movements: Opening balance 1,460,317 1,135,679 Revaluation & disposal of Parks Victoria assets: Revaluation of crown land, land and land improvements 224,145 261,910 Revaluation of buildings and building improvements – 28,616 Revaluation of piers, jetties, and river improvements – 33,095 Revaluation of antiques and artworks – 1,017 Net revaluation increment/(decrement) on Parks Victoria assets 16(b) 224,145 324,638 Total physical asset revaluation surplus 1,684,462 1,460,317

21 Contributed capital

Opening balance 649,441 637,989 Addition to net asset base from DELWP 22,782 17,782 Assets transferred to DELWP (7,207) (6,330) Net movement in contributed capital 15,575 11,452 Total contributed capital 665,016 649,441

Contributions are made to improve tourism in Victoria, construct harbour and enhance parks. Consistent with the requirements of AASB 1004 Contributions, contributions by owner (that is, contributed capital and its repayment) are treated as equity transactions and, therefore do not form part of the income and expenses of Parks Victoria. Other transfers that are in the nature of contributions by owners have also been designated as contributed capital.

Parks Victoria Annual Report 2016–17 85 Notes to the financial statements For the year ended 30 June 2017

2017 2016 $’000 $’000 22 Cash flow information a) Reconciliation of cash and investments Cash and deposits 34,586 16,230 Balance cash deposit and investments 34,586 16,230 b) Reconciliation of net results for the period to net cash flows Net result for the period 6,163 13,848 Non-cash movements: Actuarial gain/(loss) recognised in a year 2,650 (1,506) Depreciation and amortisation 13,156 12,685 Provision for doubtful debts (130) 107 Net assets (received) provided free of charge (292) (1,730) Net (gain) / loss on sale of non-current assets 715 460 Others 27 857 Fair value of assets provided free of charge 3,471 –

Change in operating assets and liabilities: Decrease / (increase) in trade debtors (271) (3,873) Decrease / (increase) in inventories 44 13 Decrease / (increase) in superannuation defined benefit & other assets (2,688) 1,602 (Decrease) / increase in other provisions (131) 1,718 (Decrease) / increase in trade creditors (1,432) 7,821 Net cash inflow (outflow) from operating activities 21,282 32,002 c) Credit card and merchant facilities Total credit card facility 2,000 2,000 Total credit card facility used/(Liability) (155) (273) Total merchant facility (daily limit) 330 330

23 Contingent liabilities and contingent assets

Contingent assets and contingent liabilities are not recognised in the Balance Sheet, but are disclosed by way of a note and, if quantifiable, are measured at nominal value. Contingent assets and liabilities are presented inclusive of GST receivable or payable respectively. a) Contingent assets Parks Victoria has lodged insurance claims for compensation for the reinstatement and replacement of assets which sustained damages due to fire, floods and storm activities with its insurer – Victorian Managed Insurance Authority (VMIA). At 30 June 2017, Parks Victoria has $4.4M (2016: $65k) in claims outstanding with VMIA that are currently being assessed. b) Contingent liabilities Ninety-five (95) claims, under public liability and professional indemnity have been lodged with Parks Victoria. Parks Victoria has forwarded those claims to its insurer Victorian Managed Insurance Authority (VMIA) to be assessed. Parks Victoria’s liability exposure towards these claims is limited to its normal insurance excess – ranging from $25 per claim to $25,000 per claim, or $545,050 (2016: $30,000) if all 95 claims are accepted by the insurer.

86 Financial report Notes to the financial statements For the year ended 30 June 2017

2017 2016 $’000 $’000 24 Commitments

Commitments for future expenditure include operating and capital commitments arising from contracts. These commitments are disclosed below at their nominal value and inclusive of the Goods and Services Tax (GST) payable. These future expenditures cease to be disclosed as commitments once the related liabilities are recognised in the Balance Sheet. a) Capital commitments Value of commitments for capital expenditure at 30 June 2017 for the supply of works, services and materials not provided for in the financial statements:

Not later than one year 2,871 1,653 Total capital commitments (inclusive of GST) 2,871 1,653

Less GST recoverable from Australian Taxation Office (261) (150) Total capital commitments (exclusive of GST) 2,610 1,503 b) Lease commitments A lease is a right to use an asset for an agreed period of time in exchange for payment. Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement to reflect the risks and rewards incidental to ownership. Leases of property, plant and equipment are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership from the lessor to the lessee. All other leases are classified as operating leases. All of Parks Victoria’s leases are currently classified as operating leases. Operating leases relate to buildings, motor vehicles, computers and property and plant equipment with lease terms of between three to ten years, with an option to extend for a further three years. Total expenditure contracted for at balance date but not provided for in the financial statements in relation to non-cancellable operating leases is as follows:

Not later than one year 8,366 10,409 Later than one year but not later than five years 13,561 15,441 Later than five years 692 96 Total non-cancellable operating leases (inclusive of GST) 22,619 25,946

Less GST recoverable from Australian Taxation Office (2,056) (2,359) Total non-cancellable operating leases (exclusive of GST) 20,563 23,587

Operating lease payments, including any contingent rentals, are recognised as an expense in the Comprehensive Operating Statement on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern of the benefits derived from the use of the leased asset. The leased asset is not recognised in the Balance Sheet.

Parks Victoria Annual Report 2016–17 87 Notes to the financial statements For the year ended 30 June 2017

2017 2016 $’000 $’000 25 Superannuation

Parks Victoria contributes, in respect of its employees (including salary sacrifice), to the superannuation schemes as follows:

Scheme Defined benefit plans: Vision Super 1,323 877 Other 1,992 1,434

Accumulation plans: Vision Super 3,549 2,882 Vic Super 2,245 1,648 Other 3,318 1,786 Total contributions to all funds 12,427 8,627

(a) Defined accumulation plans Contributions are made by Parks Victoria to employee superannuation funds and are charged as expenses when incurred. Employees engaged from 1 January 1994 are entitled to benefits under accumulation funds. Employees have the opportunity to make personal contributions to the funds at a self- nominated rate or amount. The minimum employer contribution to the fund, pursuant to the Superannuation Guarantee Charge was 9.5 per cent in 2017 (2016: 9.5 per cent). As at the reporting date, there were no outstanding contributions payable to the above funds. However there is a separate provision made in regards to defined benefits plan (refer note 26(c)).

(b) Defined benefit plans A liability or asset in respect of defined superannuation benefit plans is recognised in the Balance Sheet and is measured as the difference between the present value of employees accrued benefits at the end of the reporting period and the net market value of the superannuation plan’s assets at that date. The present value of benefits as accrued benefits is based on expected future payments which arise from membership of the plans at the end of the reporting period. Consideration is given to expected future salary levels, resignation and retirement rates. Expected future payments are discounted using rates of Commonwealth Government bonds with terms to maturity that match, as closely as possible the estimated future cash outflows. The amount brought to account in the Comprehensive Operating Statement in respect of superannuation represents the contributions made to the superannuation plan, adjusted by the movement in the defined benefit plan liability or asset. All actuarial gains and losses are recognised in the Other Comprehensive Income (OCI) in the reporting period in which they occur. Parks Victoria only recognises the liability for Vision Super defined benefit plans. Parks Victoria does not recognise the defined benefit liability in respect of any other plans because the entity has no legal or constructive obligation to pay future benefits relating to its employees.

88 Financial report Notes to the financial statements For the year ended 30 June 2017

26 Defined superannuation benefit

Parks Victoria makes employer superannuation contributions in respect of employees engaged up until the 31st December 1993 to the Vision Super superannuation fund (the Fund). This Fund has two categories of membership, accumulation and defined benefit, which are funded differently. The defined benefit section provides lump sum benefits based on years of service and final average salary. Obligations for contributions to the Fund are recognised in the Comprehensive Operating Statement when they are made or due. Employees contribute at rates between 0 to 7.5 per cent of their superannuation salary. Parks Victoria contributes to the fund based on its commitments under the Employee Participation Agreement and Contribution Policy with the trustee of the fund.

2017 2016 $’000 $’000 a) Reconciliation of the present value of the defined benefit obligation Balance at the beginning of the year 34,796 34,183 Current service cost 959 959 Plan expenses 322 322 Interest cost 619 896 Contributions by plan participants 301 322 Actuarial (Gain)/Loss (974) 1,869 Benefits paid (2,163) (3,755) Present value of the defined benefit obligation at the end of the year 33,860 34,796 b) Reconciliation of the fair value of plan assets Balance at the beginning of the year 32,988 34,318 Return on plan assets 2,255 1,243 Employer contributions 659 860 Contributions by plan participants 301 322 Benefits paid (2,163) (3,755) Fair value of plan assets at the end of the year 34,040 32,988 c) Reconciliation of the assets and liabilities recognised in the balance sheet Present value of the defined benefit obligation 33,861 34,796 Less: fair value of plan assets (34,040) (32,988) Net superannuation liability/(asset) (179) 1,808

Parks Victoria Annual Report 2016–17 89 Notes to the financial statements For the year ended 30 June 2017

26 Defined superannuation benefit (continued) Accumulation

Parks Victoria also made employer contributions to the Fund’s accumulated contributions category at the Superannuation Guarantee Contribution rate of 9.5 per cent (2016: 9.5 per cent) of members salaries. Parks Victoria’s commitment to defined contribution plans is limited to making contributions in accordance with Parks Victoria’s minimum statutory requirements.

Funding arrangements

Parks Victoria makes employer contributions to the defined benefit category of the Fund at rates determined by the Trustee on the advice of the Fund’s Actuary. Parks Victoria’s funding arrangements comprise of three components which are detailed as follows: 1. Regular contributions – which are ongoing contributions needed to fund the balance of benefits for current members and pensioners, 2. Funding calls – which are contributions in respect of Parks Victoria’s obligations for any funding shortfalls that arise; and 3. Retrenchment increments – which are additional contributions to cover the increase in liability arising from retrenchments. Parks Victoria is also required to make additional contributions to cover the contribution tax payable on the contributions referred to above. Employees are also required to make member contributions to the Fund. As such assets accumulate in the Fund to meet member benefits as defined in the Trust Deed, as they accrue.

Employer contributions

Regular contributions On the basis of the results of the most recent actuarial investigation conducted by the Fund’s Actuary on 30 June 2017 , Parks Victoria makes employer contributions to the Fund’s Defined Benefit category at rates determined by the Fund’s Trustee. For the year ended 30 June 2017, this rate was 12.0 per cent of member’s salaries. In addition, Parks Victoria reimburses the Fund to cover the excess of the benefits paid as a consequence of retrenchment above the funded resignation or retirement benefit (The funded resignation benefit is calculated as the Vested Benefit Index (VBI) multiplied by the benefit).

Funding calls The Fund is required to comply with the superannuation prudential standards. Under the superannuation prudential standard SPS 160, the Fund is required to target full funding of its vested benefits. There may be circumstances where: • a fund is in an unsatisfactory financial position at an actuarial investigation (i.e. its (VBI) is less than 100 per cent at the date of the actuarial investigation); or • a fund’s VBI is below its shortfall limit at any time other than at the date of the actuarial investigations. If either of the above occur, the fund has a shortfall for the purposes of SPS 160 and the fund is required to put a plan in place so that the shortfall is fully funded within three years of the shortfall occurring. There may be circumstances where the Australian Prudential Regulation Authority (APRA) may approve a period longer than three years. The Fund monitors its VBI on a quarterly basis and the Fund has set its shortfall limit at 97 per cent. In the event that the Fund Actuary determines that there is a shortfall based on the above requirement, Parks Victoria is required to make an employer contribution to cover the shortfall.

Shortfall amounts Parks Victoria has recognised an asset in the Balance Sheet in respect of its defined superannuation benefit arrangements at 30 June 2017. Where a surplus exists in the plan, Parks Victoria may be able to take advantage of it in the form of a reduction in the required contribution rate, depending on the advice of the plan’s actuary. If a deficit exists in the plan, Parks Victoria may be required to increase the required contribution rate, depending on the advice of the plan’s actuary consistent with the plan’s deed.

90 Financial report Notes to the financial statements For the year ended 30 June 2017

2017 2016 $’000 $’000 26 Defined superannuation benefit (continued) d) Expense recognised in the comprehensive operating statement Service cost 1,261 1,280 Member contribution (301) (322) Net interest cost 41 17 Plan expense 322 322 Total superannuation expense/(income) 1,323 1,297 e) Expense recognised in the other comprehensive income Actuarial (gain)/loss recognised in year (2,650) 1,506 Total superannuation expense/(income) (Note 11d) (2,650) 1,506 f) Fair value of plan assets The fair value of plan assets includes no amounts relating to: a) any of Parks Victoria’s own financial instruments; b) any property occupied by, or other assets used by, Parks Victoria. g) Expected rate of return on plan assets The expected return on plan assets assumption is determined by weighting the expected long-term return for each asset class by the target allocation of assets to each asset class and allowing for the correlations of the investment returns between asset classes. The returns used for each asset class are net of investment tax and investment fees. An allowance for administration expenses has also been deducted from the expected return.

2017 2016 % p.a. % p.a. h) Principal actuarial assumptions at the balance sheet date Discount rate (gross of tax) 2.39 1.82 Expected return on assets 6.50 6.50 Average salary increase rate 3.25 3.00 i) Sensitivity – Impact on Defined Benefit Obligation as at balance sheet date The following table shows the sensitivity of each significant actuarial assumption on the Defined Benefit Obligation as at 30 June 2017. It illustrates how the Defined Benefit Obligation would have been affected by changes in the assumptions that were reasonably possible at that date, by holding all other assumptions and data constant, but do not represent the best cases that could occur. 2017 2016 $’000 $’000 Impact on Defined Benefit Obligation as at 30 June 2017 of: a) Increase in the Discount Rate of 1% p.a. (2,116) (2,328) b) Decrease in the Discount Rate of 1% p.a. 2,399 2,649 c) Increase in the Salary Increase Rate of 1% p.a. 2,344 2,246 d) Decrease in the Salary increase Rate of 1% p.a. (2,110) (2,079)

Parks Victoria Annual Report 2016–17 91 Notes to the financial statements For the year ended 30 June 2017

27 Volunteer resources provided free of charge

In 2017 volunteers across Parks Victoria’s managed estate contributed 221,791 hours of voluntary labour, which equates to just over 29,183 days with an estimated value of $7.7m* (2016: 29,071 days, $7.7m)*. Volunteers include Friends Groups, Campground Hosts, individuals, school groups, corporate, other external organisations and special interest groups including Four Wheel Drive Victoria, Conservation Volunteers Australia & Bushwalking Victoria. Each year these groups and individuals provide invaluable support to Parks Victoria by dedicating their time to improve park conservation values and deliver visitor services across parks and reserves. The volunteers also play a role in increasing the interest and advocacy of parks in the community.* Value is based on the hourly rate provided by the peak body for volunteering – Volunteering Australia. * Value is based on the hourly rate provided by the peak body for volunteering – Volunteering Australia.

2017 2016 $’000 $’000 28 Auditor's remuneration

Amounts paid/payable to: Victorian Auditor-General's Office for the audit of the financial statements 75 75

29 Responsible persons and executive officer disclosures a) Responsible persons The names of persons who were board members at any time during the financial year ended 30 June 2017 are as follows: Andrew Fairley 1 July 2016 to 30 June 2017 Ross Passalaqua 1 July 2016 to 29 April 2017 Andrew Grant 1 July 2016 to 30 June 2017 Robert Wallis 1 July 2016 to 30 June 2017 Natalie O'Brien 1 July 2016 to 30 June 2017 Darrell Wade 1 July 2016 to 18 July 2016 Kate Vinot 1 July 2016 to 30 June 2017 Rosemary Hehir 1 July 2016 to 8 August 2016 Christine Trotman 1 July 2016 to 30 June 2017

The name of the responsible Minister from 1 July 2016 to 30 June 2017 was Lily D’ Ambrosio Minister for Energy, Environment and Climate Change. Amounts relating to ministers are reported in the financial statements of the Department of Premier and Cabinet. For information regarding related party transactions of ministers, the register of members’ interests is publicly available from: www.parliament.vic.gov.au/publications/register of interests. The name of the accountable officer from 1 July 2016 to 12 October 2016 was B. Fauteux. The name of the acting accountable officer from 13 October 2016 to 12 February 2017 was M. Gillespie. The name of the accountable officer from 13 February 2017 to 30 June 2017 was M. Jackson. b) Accountable Officer remuneration Remuneration received or receivable by the Accountable Officer in connection with the management of Parks Victoria during the reporting period was in the range: $330,000 to $359,999 (2016–17) $280,000 to $289,999 (2015–16)

2017 2016 $’000 $’000 c) Board members remuneration Total remuneration received or due and receivable by Board Members from the reporting entity was 165 189 2017 2016 Number Number The number of Board Members of the reporting entity included in this figure is as below: Income of: $0 to $9,999 2 3 $10,000 to $19,999 1 4 $20,000 to $29,999 5 4 $30,000 to $39,999 1 1 Total number of board members 9 12

92 Financial report Notes to the financial statements For the year ended 30 June 2017

29 Responsible persons and executive officer disclosures (continued) d) Executive officers remuneration Remuneration of executives The number of executive officers, other than minister and accountable officer, and their total remuneration during the reporting period are shown in the table below. Total annualised employee equivalents provides a measure of full time equivalent executive officers over the reporting period. Remuneration comprises employee benefits in all forms of consideration paid, payable or provided by the entity, or on behalf of the entity, in exchange for services rendered, and is disclosed in the following categories. Short-term employee benefits include amounts such as wages, salaries, annual leave or sick leave that are usually paid or payable on a regular basis, as well as non-monetary benefits such as allowances and free or subsidised goods or services. Post-employment benefits include pensions and other retirement benefits paid or payable on a discrete basis when employment has ceased. Other long-term benefits include long service leave, other long service benefits or deferred compensation. Termination benefits include termination of employment payments, such as severance packages.

Total Remuneration

2017 2016 (i) $’000 $’000 Remuneration of executive officers Short term employee benefits 3,518 – Post-employee benefits 332 – Other long-term benefits 79 – Termination benefits 238 – Total remuneration (ii) 4,167 – Total number of executives 27 – Total annualised employee equivalents (iii) 27 –

(i) No comparatives have been reported because remuneration in the prior year was determined in line with the basis and definition under FRD 21B. Remuneration previously excluded non-monetary benefits and comprised any money, consideration or benefit received or receivable, excluding reimbursement of out-of-pocket expenses, including any amount received or receivable from a related party transaction. Refer to the prior year’s financial statements for executive remuneration for the 2015–16 reporting period. (ii) The total number of executive officers includes persons who meet the definition of Key Management Personnel (KMP) of the entity under AASB 124 Related Party Disclosures and are also reported in note 29(e). (iii) Annualised employee equivalent is based on paid working hours of 38 ordinary hours per week over the 52 weeks for a reporting period.

Parks Victoria Annual Report 2016–17 93 Notes to the financial statements For the year ended 30 June 2017

29 Responsible persons and executive officer disclosures (continued) e) Related parties Key management personnel of Parks Victoria include the Minister, Board members, Chief Executive, and members of the executive team. A board member of Parks Victoria, holds a senior position in Wannon Water – a statutory authority. Parks Victoria has entered into two separate funding agreements with Wannon Water to provide the grant of $4.4m (excl-GST) and $2.4m (excl-GST) for the construction of sewerage line and water line to the Twelve Apostles Visitor Centre, respectively. The funding agreement is subject to normal commercial terms and conditions. Two board members of Parks Victoria, hold senior position in People and Parks Foundation. Parks Victoria as per funding agreement has provided the grant of $200k (excl-GST) to support the activities of People and Parks Foundations. A board member of Parks Victoria holds a senior position in West Gippsland Catchment Management Authority. Parks Victoria received approximately $163k (excl-GST) towards National Landcare Program from the West Gippsland Management Authority. All other transactions that have occurred with Key Management Personnel and their related entities have not been considered material for disclosure The names of persons who were key management personnel at any time during the financial year ended 30 June 2017 are as follows:

Honorable. Lily D' Ambrosio Minister for Energy, environment and Climate Andrew Fairley Board member Andrew Grant Board member Natalie O'Brien Board member Kate Vinot Board member Christine Trotman Board member Ross Passalaqua Board member Robert Wallis Board member Darrell Wade Board member Rosemary Hehir Board member Bradley Fauteux Chief Executive Officer (from 1 July 2016 to 12 October 2016) Margaret Gillespie Acting Chief Executive Officer (from 13 October 2016 to 12 February 2017) Matthew Jackson Chief Executive Officer (from 13 February 2017 to 30 June 2017) Christopher Hardman Executive Director Melbourne David Major Executive Director Planning and Partnerships Frances Horsley Executive Director Strategic Accountability and Business Development Ian Sargent Executive Director, Finance and Commercial and Chief Financial Officer Jennifer Rebeiro Executive Director Business and Infrastructure Services Kylie Trott Executive Director Regional Victoria Executive Director Corporate Governance and Chief Legal Counsel (during the Margaret Gillespie period when not acting CEO) Simon Talbot Executive Director Marketing and Communications

The compensation detailed below excludes the salaries and benefits the Portfolio Minister receives. The Minister's remuneration and allowance is set by the Parliamentary Salaries and Superannuation Act 1968 and is reported within the Department of Parliamentary Services' Financial Report.

94 Financial report Notes to the financial statements For the year ended 30 June 2017

2017 $’000 29 Responsible persons and executive officer disclosures (continued) e) Related parties (continued) Compensation of KMPs Short-term employee benefits 1,808 Post-employment benefits 139 Other long-term benefits 36 Termination benefits 64 Total* 2,047

Note: * Note that KMPs are also reported in the disclosure of remuneration of executive officers in note 29(d).

Significant transactions with government-related entities Parks Victoria received funding of $230.0M (2016: $223.5M) and made a payment of $1.0M (2016: $0.9M) from/to the Consolidated Fund respectively. Parks Victoria transferred Crown Land and built assets $7.2M (2016: $6.3M) to the Department of Environment, Land, Water and Planning (DELWP). During the year Parks Victoria conducted the following transactions with Government-related entities: • received $215.1M from the Department of Environment, Land, Water and Planning (DELWP) for the management of parks and waterways within Victoria for the purposes of conservation, recreation, leisure, tourism, navigation, fire suppression activities and for the construction of new assets; • received $9.2M from the Department of Economic Development, Jobs, Transport and Resources (DEDJTR) for the repair and maintenance and construction of piers and jetties; • received $4.0M from the Department of Education and Training (DET) for the construction of the Parks Victoria office at Albert Park; • received $1.7M from various Catchment Management Authorities (CMA) towards the Land Care Management Program, Invasive Plant and Animal Strategy program and Weed Management; and • transferred Crown land and built assets $7.2M to the Department of Environment, Land, Water and Planning (DELWP) to facilitate the construction of new assets.

30 Interest in other entities

The People and Parks Foundation Limited was established in 2004 as a company limited by guarantee under the Corporations Act 2001. The People and Parks Foundation Limited is a registered charity with the Australian Charities and Not for Profits Commission and lists its purpose as advancing health, advancing natural environment and purposes beneficial to the general public and other analogous to the other charitable purposes. Parks Victoria provides in kind support and is the main fund provider to People and Parks Foundation Limited. There are six board members of People and Parks Foundation Limited, two of whom are also board members of Parks Victoria. Therefore Parks Victoria is deemed to have a significant influence. Parks Victoria’s share of the profits and losses in People and Parks Foundation Limited is Nil and its commitments are as below. Parks Victoria are not aware of any contingent assets or liabilities relating to the People and Parks Foundation Limited.

2017 2016 $’000 $’000 Not later than one year – 220 Less GST recoverable from Australian Taxation Office – (20) Total commitments (exclusive of GST) – 200

Parks Victoria Annual Report 2016–17 95 Notes to the financial statements For the year ended 30 June 2017

31 Financial instruments a) Financial risk management objectives Parks Victoria’s activities expose it primarily to the financial risks of changes in interest rates. Parks Victoria does not enter into derivative financial instruments to manage its exposure to interest rate risk. Parks Victoria does not enter into or trade financial instruments, including derivative financial instruments for speculative purposes as per the Victorian Governments Borrowing and Investment Powers Act 1987 and subsequent amendments. The policies for managing this risk is discussed in more detail below. b) Significant accounting policies 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, in respect of each class of financial asset and financial liability are disclosed in relevant notes of the financial statements. The carrying amounts of Park Victoria’s financial assets and financial liabilities by category are in the table below.

Table 31.1: Categorisation of financial instruments 2017 2016 Note Category $’000 $’000 Financial assets Cash and cash deposits 12 Loans and receivables (at amortised cost) 34,586 16,230 Receivables 13 Loans and receivables (at amortised cost 3,944 3,558 Other financial assets 14 Investment (at fair value) 100,000 95,000

Financial liabilities Payables 18 At amortised cost 22,907 24,693

Note: The amount of receivables disclosed here exclude statutory receivables (i.e. amounts owing from Victorian Government and GST input tax credit recoverable). For 2017 this was $8.2 m ( 2016: $14.1m). c) Significant terms and conditions There are no other significant terms and conditions applicable to Parks Victoria, in respect of each class of financial asset, financial liability and equity instrument, except those required by FRD 114B Financial Instruments. d) Credit risk Credit risk arises from the financial assets of Parks Victoria, which comprise cash and cash equivalents, trade and other receivables. Parks Victoria’s exposure to credit risk arises from the potential default of counter party on their contractual obligations resulting in financial loss to the agency. Credit risk is measured at fair value and is monitored on a regular basis. Credit risk associated with the agency’s financial assets is minimal because the main debtor is the Victorian Government. For debtors other than government, it is Parks Victoria’s policy to only deal with entities with high credit ratings and to obtain sufficient collateral or credit enhancements where appropriate. In addition, the agency does not engage in hedging for its financial assets and mainly obtains financial assets that are on fixed interest. The agency’s policy is to only deal with banks with high credit ratings. Provision for doubtful debts is recognised when there is objective evidence that Parks Victoria will not be able to collect a receivable. Objective evidence includes financial difficulties of the debtors default payments, debts which are more than 90 days overdue and changes in debtor’s credit ratings. Except as otherwise detailed in the following table, the carrying amount of contractual financial assets recorded in the financial statements, net of any allowances for losses, represents Parks Victoria’s maximum exposure to credit risk without taking account of the value of any collateral obtained.

96 Financial report Notes to the financial statements For the year ended 30 June 2017

31 Financial instruments (continued) d) Credit risk (continued) Table 31.2: Credit quality of contractual financial assets that are neither past or due nor impaired

Financial Government Government institutions agencies agencies Double-A Triple-A Triple-B credit rating credit rating credit rating Other Total $’000 $’000 $’000 $’000 $’000 2017 Cash and deposits 34,586 – – – 34,586 Receivables (i) – – – 1,943 1,943 Investments and other financial assets – 100,000 – – 100,000 Total contractual financial assets 34,586 100,000 – 1,943 136,529

2016 Cash and deposits 16,230 – – – 16,230 Receivables (i) – – – 1,020 1,020 Investments and other financial assets – 95,000 – – 95,000 Total contractual financial assets 16,230 95,000 – 1,020 112,250

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

Financial assets that are neither past due nor impaired Currently Parks Victoria does not hold any collateral as security nor credit enhancements relating to any of its financial assets. As at the reporting date, there is $397k of receivables (2016: $530k) that have been assessed as impaired. There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and they are stated at the carrying amounts as indicated. The following table discloses the ageing only of financial assets that are past due but not impaired.

Table 31.3: Ageing analysis of financial assets(a)

Past due but not impaired

Not past Carrying due and not Less than 3 months– amount impaired 1 Month 1–3 months 1 year 1–5 years $’000 $’000 $’000 $’000 $’000 $’000 2017 Receivables (note a) 3,944 1,943 1,919 42 6 34 Total 3,944 1,943 1,919 42 6 34

2016 Receivables (note a) 3,558 1,020 2,407 20 8 103 Total 3,558 1,020 2,407 20 8 103

Note: (a) Ageing analysis of financial assets excludes statutory receivables (e.g. amounts owing from Victorian Government and GST input tax credit recoverable).

Parks Victoria Annual Report 2016–17 97 Notes to the financial statements For the year ended 30 June 2017

31 Financial instruments (continued) e) Liquidity risk Liquidity risk arises when Parks Victoria is unable to meet its financial obligations as they fall due. Parks Victoria operates under the Government fair payments policy of settling financial obligations within 30 days and in the event of a dispute, making payments within 30 days from the date of resolution. It also continuously manages risks through monitoring future cash flows and maturities planning to ensure adequate holding of high quality liquid assets and dealing in highly liquid markets. Parks Victoria’s exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of risk. Cash for unexpected events is generally sourced from liquidation of financial investments. f) Market risk Parks Victoria’s exposures to market risk are primarily through interest rate risk with only insignificant exposure to foreign currency risk. A sensitivity analysis has been prepared for interest rate risk, as it is deemed as a significant market risk on the return to Parks Victoria. Objectives, policies and processes used to manage each of these risks are disclosed in the paragraphs below. Interest rate risk The fair value interest rate risk is the risk that the fair value of a financial instrument will fluctuate because of changes in market interest rates. The carrying amount of financial assets that are exposed and its sensitivity to interest rates is set out in the table below.

Table 31.4: Interest rate market risk exposure

Interest rate risk

Net Result Net Result $’000 $’000 Financial assets: 2017 -50 basis points +50 basis points Other financial assets – based on actual 2016–17 closing balance Carrying amount $134.6m @ 30 June 2017 (673) 673

Financial assets: 2016 -50 basis points +50 basis points Other financial assets – based on actual 2015–16 closing balance Carrying amount $111.2m @ 30 June 2016 (556) 556

The interest rate risk analysis has been applied on the total of $134.6m, on the estimate that the minimum interest rate decrease will be 0.50 % and the maximum increase will be 0.50 % . Exposure to interest rate risk is reduced as funds are held in fixed interest term deposits. The weighted average cash interest rate earned for 2017 was 1.45% (2016: 1.85%). Foreign currency risk Parks Victoria is exposed to insignificant foreign currency risk through its payables relating to purchases of supplies and consumables from overseas. This is because of a limited amount of purchases denominated in foreign currencies and a short time frame between commitment and settlement. g) Fair value The fair values and net fair values of financial assets and financial liabilities are determined as follows: • Level 1 – 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 • Level 2 – the fair value is determined using inputs other than quoted prices that are observable for the financial asset or liability, either directly or indirectly; and • Level 3 – the fair value is determined in accordance with generally accepted pricing models based on discounted cash flow analysis using unobservable market inputs. Parks Victoria considers that the carrying amount of financial instruments assets and liabilities recorded in the financial statements 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 or received in full. These assets and liabilities are valued at level 1.

98 Financial report Notes to the financial statements For the year ended 30 June 2017

2017 2016 $’000 $’000 32 Ex-gratia payments

Forgiveness or waiver of debt (i) 3 9 Payment made to employees upon termination – 200 Total Ex-gratia expenses 3 209 i) Refer to note 13(a). It represents the doubtful debts written off during the year as uncollectible.

33 Post balance date events

Parks Victoria is unaware of any events subsequent to the reporting date that will have a material impact on its financial position or future financial performance.

Parks Victoria Annual Report 2016–17 99 Statutory Certificate

100 Financial report Auditor’s Report

Independent Auditor’s Report

To the Board of Parks Victoria

Opinion I have audited the financial report of Parks Victoria which comprises the:

 balance sheet as at 30 June 2017  comprehensive operating statement for the year then ended  statement of changes in equity for the year then ended  cash flow statement for the year then ended  notes to the financial statements  statutory certificate. In my opinion the financial report presents fairly, in all material respects, the financial position of Parks Victoria as at 30 June 2017 and their financial performance and cash flows for the year then ended in accordance with the financial reporting requirements of Part 7 of the Financial Management Act 1994 and applicable Australian Accounting Standards.

Basis for I have conducted my audit in accordance with the Audit Act 1994 which incorporates the Opinion Australian Auditing Standards. My responsibilities under the Act are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of my report. My independence is established by the Constitution Act 1975. My staff and I are independent of Parks Victoria accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to my audit of the financial report in Australia. My staff and I have also fulfilled our other ethical responsibilities in accordance with the Code. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Board’s The Board of Parks Victoria is responsible for the preparation and fair presentation of the responsibilities financial report in accordance with Australian Accounting Standards and the Financial for the Management Act 1994, and for such internal control as the Board determines is necessary financial to enable the preparation and fair presentation of a financial report that is free from report material misstatement, whether due to fraud or error. In preparing the financial report, the Board is responsible for assessing Parks Victoria's ability to continue as a going concern, and using the going concern basis of accounting unless it is inappropriate to do so.

Parks Victoria Annual Report 2016–17 101

Auditor’s Report

Auditor’s As required by the Audit Act 1994, my responsibility is to express an opinion on the financial responsibilities report based on the audit. My objectives for the audit are to obtain reasonable assurance for the audit about whether the financial report as a whole is free from material misstatement, whether of the financial due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable report assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with the Australian Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:

 identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control  obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Parks Victoria's internal control  evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board  conclude on the appropriateness of the Board’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on Parks Victoria's ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause Parks Victoria to cease to continue as a going concern  evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. I communicate with the Board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

MELBOURNE Roberta Skliros 22 August 2017 as delegate for the Auditor-General of Victoria

102 Financial report

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Parks Victoria is a world-class park service ensuring healthy parks for healthy people.

Parks Victoria Level 10, 535 Bourke Street, Melbourne, Victoria, Australia www.parks.vic.gov.au or call 13 1963